Quarterly March 2004 - Odfjell

odfjell quarterly 1C O M P A N Y M A G A Z I N E F O R T H E O D F J E L L G R O U P - M A R C H 2 0 0 4

Dear Colleagues...Early this year we were remindedof the inherent danger of life atsea. Just a few kilometres from ourmain office, practically inside theport of Bergen, the bulk carrier MS“Rockness” capsized, causing thedecease of 18 sailors.On February 28, we received thetragic message that our own MT“Bow Mariner” had sunk afterexperiencing several explosions andfire. Six crewmembers survivedthe accident, while 21 personsare reported deceased or missing.The news came as a shock to allof us. Neither Odfjell nor CeresHellenic, the ship’s manager, havehad accidents like this in their longhistory of operation.I wish to express my deepestsympathies with the families of thedeceased and missing crewmembers.The accident is still under investigation,and the cause of it has tobe determined. Some media havesuggested that the owner andthe manager are hampering theinvestigation. This is absolutely nottrue; we are fully cooperating withUS Coast Guard as investigator andSingaporean Maritime Authorities,representing the flag state. It is ineverybody’s interest to find out whathappened as quickly as possible.The parcel tanker industry is acomplex operation. The “BowMariner” casualty reminds us thatthe business we are in implieshandling of dangerous products.As a leading global provider of bulkliquid transportation and storageservices, Odfjell is committed tomeet high standards in all areasof safety and quality. We haveinvested heavily in state-of-the-artequipment. Our ship maintenanceprogramme shall ensure safe andefficient operation. All ships areinspected and audited several timesa year; by ourselves, the classificationsocieties, port authorities and by ourcustomers, primarily through OilCompanies International MaritimeForum (OCIMF). Our crews havemany years of experience fromparcel tankers, and we are payingconsiderable attention to recruitingqualified officers and crew.Annually we are transporting closeto 18 mill. mts of cargo in 7,200different parcels, consisting of 600various products. The business isboth capital and labour intensive.It is easy to forget that each ofour most sophisticated ships (the16 Kværner/Kleven ships and the8 newbuildings in Poland) has aconstruction cost comparable to aVLCC. Our worldwide organizationcomprises more than 3,200 persons,trained and dedicated to satisfycustomers, regulatory, legal andinternal requirements.In our daily striving for cost andtime efficient solutions to satisfyour customers’ needs, we shallnever compromise with our safetystandards.Terje Storeng, President/CEOodfjell quarterly 3

Naming of M/T Bow Star by Ewa KapuscikThe Lady Sponsor’s storyThe honourable task of being Lady Sponsor to our latest delivery from Poland, M/T Bow Star, was awarded to Ewa Kapuscik, the wife of theshipyard’s Chief Designer Krzysztof Kapuscik. Mrs. Kapuscik has submitted this entertaining introduction to the chores of a Lady Sponsor.The Lady SponsorEwa KapuscikWhen my husband Krzysztof (Chris)suddenly called me and told thatOdfjell had offered me to be LadySponsor to Bow Star, I nearly had tosit down in the middle of the street– surprised and struck by the greatresponsibility involved. Initially, Iwanted some time to think beforedeciding, but Chris was to give ouranswer within one hour. However, onedoesn’t turn down such an honourableproposal, so of course my anwer was“Yes”!My first concern was that I didn’tknow anything about the role of aLady Sponsor. Would I manage? Myhusband reassured me that everythingwould be all right, and that I definitelywould be up to the task. And graduallyI realised what a great honour it is for me, but first of all to myhusband. I am very proud that the Owner in such an exceptional wayrewarded my Chris for his job, and grateful that it was decided toturn this honourable function over to me.Bit by bit I found out more about the duties connected with theceremony. Should I wear a hat? Then I needed a new dress, both forthe naming ceremony and for the evening party, clearly the mostpleasant part of my preparations. To my surprise, my portrait was tobe presented to the ship, and this triggered a lot of fuzz going to aphotographer. I could tick off another item on my list of things-tobe-done.As the ceremony was getting closer, more doubts started to appear.I reassured myself that the future of this ship wouldn’t dependon my speech and the bottle breaking. However, I really wishedthis ceremony to go remarkably well, and I wanted all the peopleattending to be left with nice memories. I got a lot of support andvaluable advice, from my brother, who works in the yard’s marketingdepartment, my friends, most of them employees of the shipyard,and, most importantly, from my husband. We even rehearsed thechampagne part, just to make sure. Luckily, such a big ship is hardto miss.Still, I didn’t sleep well the night before the ceremony. Dressed up tothe nines, with a speech note in my coat pocket just in case, I went tothe shipyard. My legs felt like jelly when I, after having gone thoughmany introductions and greetings, at last entered the rostrum nextto the ship. In front of me I could see all the spectators, guests andemployees of the shipyard, all smiling. I could feel their sympathyand friendliness, but I only had one thought in mind: The bottle ofchampagne is attached so that it may catch on the rostrum itself!odfjell quarterly 4

Yet another successfullaunching in PolandBy Karsten SævikThe Lady sponsor with the Captain Leif Årvik.After speeches by the Yard President Andrzej Stachura and Odfjell’sTerje Storeng, it was my turn. I gripped the bottle and said: “I amgiving you the name of Bow Star”. As the bottle smashed, I felt thatin a second I would be high up in the air. Only afterwards, on TV,I saw what a powerful swing it was. After having completed themost important moment, only pleasant things followed. There werecongratulations and smiles, Mr. Storeng shook my hand and we saidto each other “Well done!” TV, radio, microphones and photographstaken, but all this was now less important. Now I wanted to goaboard what is now also my ship!After the successful delivery of M/T Bow Star on February 20th,Stocznia Szczecinska Nowa launched vessel no. 3 in the serieson March 3rd. This vessel is now scheduled for delivery August15th this year. Our Site Manager, Captain Thorbjørn Haugsand,performed the launching this time. For him this was at sametime a special and symbolic event since he in 1976 sailed outas chief officer with the vessel from the same shipyard havingthe same name, M/T Bow Spring.Captain Torbjørn Haugsand cutting the final ribbonFollowing the launching of vessel no. 3, the yard alsoperformed the keel-laying for vessel no. 4 on March 8th. Withthe three events, delivery of no. 2, launching of no. 3 and keellayingof no. 4, the shipyard has demonstrated its ability tocontinue the construction of the vessels in this series. We lookforward to the next ship coming!As usual local schoolchildren had decorated the vessel with wonderfulpaintings and drawings. The Captain with one of the young artists.We climbed the gangway, moved a few decks up, and entered thebridge to a breath-taking sight. A huge console, with plenty ofdevices, screens, indicators, and out of the windows a view over thedeck with its kilometres of pipes and numerous pumps, everythingnew and shining. I am very proud that it was my husband whodesigned such a magnificent ship, and I feel a great admiration forthe Captain who is to command this vessel. In the evening we hada naming ceremony party, which proved to be very enjoyable andmuch easier than expected. Very nice words addressed to me byMr. Storeng, and in particular I will remember his “Dzi kuj bardzo”(Thank you very much) said in Polish.The ceremony is concluded and the emotions gone, but it’s not theend but only the beginning of my role as Bow Star’s Lady Sponsor.An invisible thread has been created between the ship and me, to lastwherever she will be sailing. I will always follow the vessel, and everyday I will be looking for any e-mails from the ship and mark the routeof the Bow Star on the map. Bow Star, be a lucky ship!Soon-to-be Bow Springodfjell quarterly 5

Odfjell Ahrenkiel going liveBack row from left: Arnt Stensen, Olav Naess, Sonja Heilmann, Christian Albanus, Andre Weidlich. Front row from left: Suzanne Winkels, NinaElseon, Anke Jung, Erika Grambow, Tanja ZierothBy Olav NaessAs you all probably know by now, theactivities of Odfjell Ahrenkiel Europe GmbH,Hamburg started officially on January 1st,2004. We got all eight ships delivered overa two week period in early January, and,although it was a little bit hectic in thebeginning, we managed a pretty smoothtakeover with the vessels going straight intonew loading programs.The Multitank ships are very well known andaccepted within the European market. Ourfleet, and the way we managed to presentthe new set-up to the market during thelast quarter of 2003, have made it possiblefor us already to conclude four contracts ofaffreightment with major charterers. Thenominations under these CoAs are runningwithout any problems. Our aim is to provideexcellent performance to our customers, inorder to obtain larger cargo volumes in thefuture.Most of the major contracts for 2004 arealready concluded. Thus, for the time beingwe must to a large extent rely onthe spot market. Our competitorsseem to have a rather high CoAcoverage, so we hope to beable to make the most of thissituation. To start with we willfocus on serving the Continent,the Mediterranean and theBaltic as our main trading areas.However, we have already hadone vessel to West Africa. Thus,we are able to trade outsideour main region given the rightopportunity. In the future we alsohope to be able to serve Odfjell Seachem fortheir transshipment requirements in Europe.With eight sophisticated chemicals tankers inour fleet we have a very good basis for ouractivities, and we will add more vessels to theOdfjell Ahrenkiel fleet in the future.We would like to introduce our team:CHARTERING:Erika Grambow, Managing DirectorOlav Naess, Charting Manager/DirectorAndre Weidlich, Charting ManagerOPERATIONS:Arnt Stensen, Operations ManagerSuzanne WinkelsNina ElsonACCOUNTING:Sandra HinrichsenAnke JungChristian AlbanusADMINISTRATION:Tanja Zierothodfjell quarterly 6

A New Era for Hoyer-OdfjellBy Michael Loscalzo,Managing Director Europe / ME / AfricaThis year represents something of amilestone for Hoyer-Odfjell BV. Ourcompany recently celebrated its fifthanniversary. Since established in 1999, wehave doubled the size of our staff, our tankcontainer fleet and the number of unitstransported. Our success over recent yearshas come not only from strong leadership byour management group, but also through adedicated hardworking staff that allowed usto exceed our goals. People are our strongestand most important asset, and we would liketo take this opportunity to thank all of themaround the globe for their hard work anddedication.In January we moved into brand-newoffices located on the site of the OdfjellTerminals facility on the Oude Maaswegin the Botlek area of Rotterdam The newpremises are shared between Hoyer-Odfjelland Odfjell Terminals, with the result thatthe relationship between the two companieswill be strengthened.Hoyer-Odfjell nowhas a turnover ofalmost US$100million, with some150 employeesworldwide. WhenH o y e r - O d f j e l lwas first set up,initially we startedwith 3,500 tankcontainers that wetook over from fromHoyer. By January2004, the fleet totalhas reached some6700 units, of which56% are ownedand 44 % leased in.Business expansionis central to our overall strategy, and lastyear we made the headlines when we placedthe largest-ever single tank container order- for 2000 units - with Burg Intermodal BV.In order to manage our increasing tankcontainer fleet, we are looking to install anew IT system, which will provide greater“customer connectivity”. At present, ourfleet management system tracks and tracesequipment globally, with local offices alsofeeding information. The product databaseincludes some 66,000 types of chemicals,enabling us to select the right tank for theright product. This will be further improvedin our new system.Looking at the year ahead, our strategy isto continue the generic growth, especiallyin the Middle East, South America and Asia.With pressure on westbound rates fromEurope to North America expected to carryon during 2004 - and 30% of our overheadsin Euros – cost-control will be the key tocontinue the profitability that we enjoyedin 2003. We welcome all those who readthis article to please stop by, have a coffeeand look at our new headquarters whichrepresents the second phase of our businesslife-time cycle.The new Odfjell office building in Rotterdamodfjell quarterly 7

Using Chartco on boardBy Helge Olsen andChief Officer Trevor Northage,Bow ChainAs presented in the September 2003 issueof Odfjell Quarterly, Odfjell has decidedto implement Electronic chart corrections& Weather forecast service for our entiremanaged fleet. The implementation isnow well under way, and the system hasso far been implemented on board 19of our vessels. As the number of usersincreases, it is always interesting to getsome feedback. We have asked TrevorNorthage, Chief Officer on Bow Chain,to share his experience with us.The new Chartco computer was installedin Rotterdam, with very little trouble.The communication side of things (it isonline 24 hours a day) works seamlessly,and provides up to the minuteinformation, navigational warnings,chart corrections, weather maps andpublication corrections, displayed in highquality graphics.Using the equipment requires a shortlearning curve. It is quite intuitive, butstill requires a new way of thinking onthe part of the Navigation department.We can now take a voyage chart fromthe drawer, and, as part of our normalroutine, check to see if there are anyupdates waiting to be applied that havejust come in, or notices they may bepertinent. We have information that isabsolutely up to the minute, so gone arethe days of working charts that are twoor three months out of date.We had a few “fun filled hours” settingup the weather routing, but once allthe information has been entered, yetagain, it is simple and intuitive. It givesChief Officer Trevor Northage using the Chartco systemus optimal tracks based on the next threedays forecasts, and is another valuabletool at our disposal.The equipment is a standard Pentiumclass computer with a smart LCD monitor.The system unit itself is stowed away ina locker out of sight, so the setup isvery tidy. It is 200% better than theold weather-fax, which now has beenmade redundant. We use a standard HPInkJet printer, which needed to be setup correctly to ensure accurate scalingand minimum ink usage (to avoid “wet”tracings). Unfortunately, printer setup issubject to the usual vibration problemson the bridge, so we need to keep aneye on print quality. When colour laserprinters get cheaper perhaps we’ll getone, but for the meantime the outputof both tracings and colour chart blocksis quite acceptable. The computer isnetworked and communicates directlyand transparently with the ship’s server.The only human intervention requiredis to log on and off. Hardly technicallydemanding!All in all, it’s a very handy piece ofequipment, easily fixed, easily used, withspares available over the counter almostanywhere. It is just what we needed!odfjell quarterly 8

Odfjell Terminals (Rotterdam):Rebuilding Tankpit 10A- From the contractor’s perspectiveBy Paul van Kooten Niekerk, Tebodin Consultants and Engineersclients and decreased nitrogen consumption.The dedicated product transfer pumps are equipped with a magneticcoupling, through which emissions of organic compounds to the atmosphereare negligible. The design does not only reduce the environmental effect, butalso makes it possible to store very toxic and carcinogenic products.Adding wall insulation.In 2001, Odfjell Terminals (Rotterdam) BV decided to demolish Tankpit 10A,one of the oldest pits on the terminal. The “old” Tankpit 10A was built in theearly 1960s and thus at the end of its technical lifetime. Tebodin Consultants& Engineers were employed as Engineering, Procurement and ConstructionManagement (EPCM) contractors.Designing the new tankpitLocal authorities set the minimum design requirements. However, as futureenvironmental protection requirements will become more stringent, thenew tankpit has been designed according to the latest technical standardsand to meet expected future regulations. The pit is made of liquid-tight,piled concrete. Tanks, lines and pumps are all made of stainless steel anddesigned for minimal environmental pollution. The design pressure of thetanks reduces emissions and makes it possible to store products under a netpositive nitrogen blanket of 5 mbarg, preventing any oxygen to enter thetank. Around the tankpit we installed a foam fire-extinguishing system.Our experiences with OTRManaging a project as representative for Odfjell is different from projectmanagement as an engineering contractor. The OTR organisation asks for ateam player, who is able to communicate clearly at all levels; not a dictatingleader. During the project, I worked with nearly all departments of OTR. Theinteraction with the Sales Department and the technical assistance duringthe negotiations with potential clients was particularly interesting. I havealso been frequently communicating with OTR’s Procurement Departmentfor ordering equipment, the Finance Department because of budgetcontrol, QHSE for environmental and licence matters, and last but not leastOperations. Regular contact with the various departments made working onthis project an enjoyable experience.Early February, Odfjell Terminals (Rotterdam) B.V. has concluded its firstcontract for tankpit 10A. Three tanks have been rented to IneosPhenol,through a long-term contract for storage of phenol. The first parcel arrivedearly March. We are also working on other projects, involving three tankson a long-term basis. The latter project will be an Odfjell Logistics project,involving storage and shipping.OTR Tankpit 10A - Technical DataThe new Tankpit 10A has a high degree of automation. More than a thousandvariables are fed to the site control system. Product transfer to and from thejetty can be achieved from the Central Control Room (CCR). The degree ofautomation makes it possible to operate the tankpit without requiring morepersonnel.Tankpit constructionOn April 1, 2003 we started piling for the new tankpit. The tanks were builtnear Den Helder, 150 km north of the Odfjell site. In October 2003, the tankswere transported on pontoons to Rotterdam via the North Sea and placedon their pedestals by huge cranes. After the tanks were placed it took thecontractors three months to complete the tankpit, a job involving impressivenumbers: 5 km of piping, 3 km of electrical tracing and 4 km of cabling. Onthe 13th of February 2004 (Friday the 13th!!!) the first tanks were ready foruse.Environmental issuesThe soil on which the new tankpit is built was polluted, and we installeddrains to clean the ground. To avoid future pollution, the new Tankpit 10A ismade of liquid-tight concrete.Emission loss calculations indicate that by using pressurised tanks wemay prevent thermal breathing, and thus reduce emission losses by 46%.This reduction gives a head start with respect to meeting environmentalrequirements and efforts, e.g. responsible care programs. Other benefitsof using pressurised tanks are a decrease in product loss on storage for theThe new tankpit near completion.Number of tanks: 8 (with a possibility for a 9th)Material: Stainless steel AISI 316L; 1,4404Design pressure: 300 mbargDesign temperature: 100 CTank sizes 2x 735m 3 , 2x 1,135m 3 , 4x 1,785 m 3Insulation:Bottom, walls and roofHeating:Warm-water coils, electrical roof tracingodfjell quarterly 10

Risk Management NewsBow Mariner - A Human TragedyOnly two days after having submitted these “it is going well but becautious and careful” articles to the editor, we received the shockingnews of the explosions, fire and sinking of the Bow Mariner. Onlysix out of 27 crewmembers were rescued. Ongoing investigationsby US and Singapore authorities precludes us from commenting onfacts or potential cause at this stage. The ship was managed by CeresHellenic and owned by Odfjell Asia and both are very concernedwith the welfare of the surviving crewmembers and the families ofthe diseased. Root cause analysis will be carried out and hopefullythese and the ongoing investigations will help us safeguardagainst such tragic losses in the future. Finally, we will express ourdeepest sympathy with the families of the missing and diseasedcrewmembers.Safety Bulletin – NavigationA very tragic incident close to our homebase here in Bergen has again highlightedthe importance of due care duringnavigation. A relatively new ocean goingand well managed ship grounded in calmcoastal waters in daylight. She capsized veryquickly and many lives were lost. Duringthe last years we have often highlighted the importance of strictadherence to bridge procedures, in particular when navigating incoastal waters and/or with pilot on board. Our four most costlyand serious incidents last years have all been related to navigation,three were collisions and one grounding. Only one of the incidentstook place in open sea. Root cause analysis was carried out in theaftermath of each incident. With basis in this, relevant procedureswere carefully reviewed and adjusted as needed. We will ask all deckofficers to always have in mind the serious consequence a small errorof judgement may have and remember that procedures are therefor a reason and must be followed. Never let commercial pressure orissues come before safety.Lost Time Injury Frequency (LTIF)LTIF for 2003 has now been completed and shows 2.29, which is aslight improvement from 2002. The last two quarters were indeedvery good. Two Lost Time Injuries (LTI) were reported in fourthquarter, which is the same as for third quarter. A fitter sufferedbroken ribs during operation of a firehydrant/hose and an electricianlost two fingers on his right hand during test run of emergencygenerator. Although such accidents are serious enough, we are stillpleased to note that our HSE performance indicators have improvedin the fourth quarter of 2003. The number of medical treatment casesdropped from 41 to 18 and Total Reportable Cases from 39 to 21.The challenge is now to stay focused on safety and make the positivetrend continue into 2004. This is good, congratulation to everyone!Renewal of P&I insurance 2004February 20th 2004 we renewed our P&I insurances. As most ofyou will know, RM in Bergen arranges owner’s or charterer’s P&Iinsurance on all the ships Odfjell operates, whether they are owned,time-chartered or used as feeder ships on short hauls. The insurancemarket and subsequently also P&I has hardened the last year, andthis year all the P&I clubs have announced general increases in the7.5-25 % range. The clubs we use, Gard in Arendal and Britannia inLondon, are performing well and are amongst the strongest fundedclubs. In combination with our own good loss ratio, this resulted ina satisfactory renewal. It is, however, important to remember thatlow insurance premiums are not only a cost saving element, but alsoa very important performance indicator towards our customers andthe environment in which we do business and operate. No ships weretransferred between clubs at this renewal.Security – Status and progressAll 35 Ship Security Plans (SSP) are completed and approved. Withexception of the Panama registered ships, Bow Antisana and BowGorgonilla, DNV has approved all our SSPs on behalf of Flag StateAuthorities. We did the first Implementation Audit (IA) in week 9 andour plan is to carry out IAs of about 50% of our fleet within mid April.We will invite DNV to do certification audit as soon as possible afterthe IA and aim to have the first International Ship Security Certificate(ISSC) issued late April. Implementation comes on top of vetting andISM audits programs and it will be a major job for both us and DNV tohave everything in place before the 1 July 2004 deadline.odfjell quarterly 11

M/T BOW QUEEN– On her way to abdIn February we celebrated 29 years of serviceof the “Bow Queen”, the oldest “lady” in theOdfjell owned fleet. At this time we were enroutefrom Brazil to Singapore, completingher last voyage before going to the breakers’yard in China.By Capt. Igors DiloDuring her 29 years “Bow Queen” has circumnavigated the world andvisited all continents. Pilots and agents alike in many countries andports around the world still have fond memories of both her early andmature days, and she will be remembered as a trademark of the Odfjellfleet. During her final full year of trading, predominately employed inthe Gulf region, she called 50 ports, carried 359,150 tons of chemicalscargoes and sailed 30,555 miles.When not occupied with loading and discharge operations, the crew’smain task is vessel maintenance on deck and in the engine room. Thisis absolutely necessary to keep the Bow Queen looking as good asshe does for her ripe old age of 30-years. Keeping the vessel in goodcondition is sound tradition of our crew, and when shore staff lastvisited the vessel they could not believe how well she looked for herage.Reviewing her history we see that the “Bow Queen” was deliveredon February 28th, 1975, from the Moss Rosenberg yard in Stavanger,Norway and she commenced trading for Ocean Oil Chemicals Inc.,Liberia under Liberian flag and her original name “Golar Petrotrade”.In November 1989 she was renamed “Bow Queen” and began tradingodfjell quarterly 12

icateThe deck crew at workfor Odfjell Westfal-Larsen Tankers A/S. In 1999she was brought under the management ofHanseatic Shipping Company, Cyprus and shehas remained under this umbrella up untiltoday along with her sister ships, the BowPrincess and the Bow Lady.The pumpmanWe are familiar with the long-term traditionof Odfjell to give the names of past vesselsto newbuildings entering the fleet. Officersand crew of the motor tanker “Bow Queen”Engine maintenanceupon this final voyage hope that one daysoon we will be able to ply the seven seas ona new modern “Bow Queen” with the OdfjellSeachem emblem.The ship’s crew for her final days consists of tenEast European (Latvian, Russian, Lithuanianand Ukrainian) officers and seventeen Filipinomariners under the command of CaptainIgors Dilo. As a result of good cooperationthe Filipino crewmembers have learnt manyRussian words and phrases, and many of theofficers can converse in Tagalog. The goodintegration on board has partly been achievedby Saturday evening karaoke and Christmasand New Years Eve parties during the oceanpassages.In the galleyodfjell quarterly 13

Jessie Nieto has worked for Odfjell Terminals in Houston for the last seven years. He has held several positionsat the terminal, and is an experienced and skilled professional in his job. He is married, has four children and twograndchildren. When not on duty he likes to go fishing or go bowling with his family.What they actually doA typical day fora Terminal OperatorBy Jessie Nieto, Loading Master at OTHMy working day normally starts with a “pass-on”meeting with the previous shift, to learn what hashappened over the past 12 hours. Generally, whenworking the day shift, we attend a 10 AM meetingwhere we get to know scheduled arrival dates andtimes for inbound vessels.I am on the “D” shift, together with my dockmencolleagues, Keith Gross and Kevin Jones. Our job is totake care of the loading and discharging of the vesselsat the terminal. The duties include preparing pipelinesand vapour control systems, calculation of transfervolumes, pre-transfer conferences on board ship andexecution of all Government mandated checks andverifications.When preparing the pipelines we normally use a “pig”,a short plastic cylinder or ‘plug’ used to remove liquidsfrom the pipelines. We insert an appropriate size piginto the pipeline, and apply high pressure gas such asnitrogen or air to drive the pig through to the otherend. If the pig comes out clean and dry, we know thepipeline has been cleaned and is liquid free and set upcorrectly.Ship tanks often require purging, which means toreduce the level of oxygen or moisture from a tank’satmosphere, normally through the use of nitrogen.Many products handled at Odfjell are sensitive tomoisture. Operators at OTH measure the “dew point”,i.e. the level where humid air condensates, as apractical method to verify adequate purging and toestablish that the moisture level in a tank is sufficientlylow, prior to loading a sensitive product.Odfjell Terminals (Houston) is a unique facility, whereall pipelines can be cross connected and lined up todirect product flow from any tank to any dock. OurOpening for cargo flow.responsibility is to ensure that all connections aremade correctly and that the assembled pipeline is leakfree before allowing product into the pipeline. Everyfoot of an assembled pipeline is inspected from end toend during a process we call ‘Walking the Line’. Thisjob must be done properly, and requires us to stay veryfocused.odfjell quarterly 14

Inserting the“pig”.to connect, that thevessel has labelledtheir manifoldprior to our hoseconnection andthat a surveyor hasapproved the tanks.Checking the lines and connections.The Odfjell Marine Planning coordinator prepares a ‘package’ ofdocuments for each vessel arriving at the terminal. The packagetells us which cargoes are being transferred, any special instructionssuch as sampling or purging, information on cargo volumes, whetherthe cargo is inbound or outbound and applicable safe handlingprocedures. We do calculations to make sure there is room in ourtanks for inbounds or in the ship’s tank for outbounds. We try to haveall this done before the vessel arrives, in order to reduce delays.Once the vessel arrives we go on board to have a pre-transferconference with the Chief Officer, to discuss the amount to beloaded and the sequence of operations. We confirm which manifoldDuring operationswe keep one teammember at the dockthe entire time.Other members Reading the documentation package.operate pumps andvalves in the tank farm. The shore tank level and flow rates aremonitored from the control room. The shore team and the controlroom are in constant communications with each other by radio.A hectic day is when we have vessels at all five docks. On such dayswe move back and forth, pigging lines, hooking up hoses, keepingup with surveyors, and following up on cargo rates. We take turnsstopping for lunch and try to schedule it before or after the vessels.On slower days, we help the shore side with tank washing andpumping railcars.Someone asked me, why in seven years you haven’t had an injury? Ithink it is because I go out and look at every job, get prepared and Iask the necessary questions.odfjell quarterly 15

The Way We Are OrganizedHuman ResourcesDepartment in BergenBy Brit A. BennettThe Human ResourcesDepartmentin Bergenis probably theone Odfjellunit that all theB e r g e n - b a s e dstaff and mostof the overseas marketing offices areacquainted with. We are physicallylocated in the southern satellite of theOdfjell building, where we share officeswith the Maritime Section.Our unit is responsible for developingand implementing policies within theHR area on a corporate level. Thisincludes leadership, competence andorganisational development, salary &benefits, and ICT systems and tools forHR activities. Within these areas the HRDepartment manages, coordinates andassists in ensuring that all units adhereto corporate policies. In our daily workwe cooperate with the HR departmentsin Rotterdam and Houston, and assistOdfjell units and offices world-wide.For the Head Office, we are alsoresponsible for recruitment, the annualsalary adjustments, salary payment,pension schemes and insurances, theadministration of corporate traveland of course to keep the Intranet HRhandbook updated.Our main guideline in this work isOdfjell’s HR policies, which governsafe working environment, interestingand challenging jobs, opportunitiesto develop individual skills, opencommunication and teamwork, andcompensation linked to individualdevelopment and performance.The HR Department: (From left): Marianne Slotten, Anita Veland, Elin Tvedt, Brit Bennett,Rønnaug Karlsen Kamlund, Astrid Mjell Strand, Anne Kari Reksten HolmeAt the moment we are working onseveral projects:• This spring we will carry out anEmployee Satisfaction Survey inBergen, with follow-up activitiesby each department. It is ourintention to carry out similarsurveys in Houston, Rotterdamand Singapore during thesecond half of 2004.• During 2004 we will implementthroughout the organisationthe Agresso HR System, to storeand administer personal details,absence and competencerecords. In February 2004 wereleased the Self Service Webin Bergen, and all Bergenemployees are now responsiblefor updating their own personalinformation. Later on we willimplement this application alsoin Houston, Rotterdam andSingapore.• Through the CompetenceDevelopment project (seealso the article on next page)we will enhance the generalcompetence in our organisation.During spring we will open theOdfjell Competence Centre,which over time will becomea PC-based learning librarycovering a variety of skills anddisciplines. We will start inBergen in May, and continuewith the rest of the shorebasedorganisation in September.odfjell quarterly 16

Competence Development ProgramIntroducing e-learningThe course will also be a readily availablereference source. We expect to release thecourse at the Bergen office in May thisyear, and then to roll it out to other officesduring second half of 2004. The course willalso be distributed by CD-Rom to all Odfjellships.By Brit A. BennettIn the December 2002 issue of OdfjellQuarterly we introduced the CompetenceDevelopment Project, to strengthen thegeneral competence level in Odfjell. Sinceour last project update in the September2003 issue, a lot of work has been carriedout both with the content of the programand the systems that will support it.Implementation of a Learning ManagementSystem (LMS)As a part of the Competence DevelopmentProgram we will implement a LearningManagement System (LMS). This systemwill enable us to launch relevant contentmodules and to track learning activitiesand performance. Our LMS is customized toOdfjell’s corporate profile, and integratesOdfjell specific content with off-the-shelfsoftware.E-learning courses in Outlook, Word andExcelTo improve the general proficiency in themost commonly used Microsoft Officetools, we will soon offer e-learning coursesin Outlook, Word and Excel. The Wordcourse will include an introduction toOdfjell document templates. Each courseis estimated to take some eight hoursto complete, depending on previousexperience and skills.English training and testingLater on we will introduce an e-learninglanguage course in English, to furtherimprove the staff’s command of ourbusiness language. We have pre-selectedGlobal English as supplier of such a course,based on the content and user interfaceRobert Kok of OTR proudly shows hisdiploma for having completed the OdfjellCommon Competence e-learning coursthey have to offer. During autumn a pilotgroup will further test the course.Mapping competence requirements fordifferent positionsThe mapping of core competence continues.We are in the process of concluding the workwith the ship operator and superintendentpositions. For all positions being mapped,existing training methods and material willbe evaluated. If necessary, we will produceour own learning material.Odfjell Common Competencee-learning courseSoon we will have a computer-based courseready, complete with pictures, voice andtext, through which all employees will learnabout the company, our business, corporateculture, policies, etc. It is estimated that itwill take about four hours to go through allcourse modules, including a final test. Webelieve that such a course may be of greathelp to our employees in accessing identicalinformation, of identical quality, wheneverrequired. It will be an important tool todistribute and strengthen the corporateculture throughout the Odfjell organisation.odfjell quarterly 17

Odfjell NIS ProjectCadet SelectionBy Kjell Johansen, Odfjell ManilaOn February 5th, 2004, Odfjell Manila conductedselection interviews for the NIS Project cadetprogram at John B. Lacson Colleges Foundation(JBLCF) in Molo, Iloilo. JBLCF is one of the mostprestigious maritime institutions in the Philippines,and has played a vital role in the education ofqualified and competent cadets through the NISClass Project. This project is headed by Capt. HelgeOliversen, Project Manager of the NorwegianTraining Center Manila.Staff with the responsibility for interviewing atotal of 46 cadets were Capt. Kjell Johansen,Odfjell Manila Manager and Capt. RemigioZamora, Assistant Manager of Odfjell Manila. 20of the cadets belong to the JBLCF Arevalo andBacolod campus, and will be attached to the DeckDepartment. The remaining 26 applicants comefrom the Molo campus, and will be assigned to theEngine Department. These cadets belong to the11th batch of the program and have been throughthe rigid screening process of the NIS project.This screening includes written, oral and practicalexaminations that measures their IQ, Englishlanguage proficiency, academic and technicalknowledge. As scholars of the project, their generalaverage score for the first semester is from 82 to 95out of a maximum 100.As in any selection programs, although all of theseapplicants are considered qualified, only the bestof them were chosen for the program. Amongthe 46 candidates, only 20 of them, 12 deck and 8engine cadets, will be admitted for further trainingunder Odfjell Manila. These cadets will relieve thefirst batch of Odfjell cadets from JBLCF, who aredue to go on board in mid 2004 and sign off in mid2005 for the last year of their formal schooling.With such a stringent cadet selection processthrough the NIS Project, the potential for creatinghigh caliber, competent and professional seafarersin the future should be the very best.Some of the JBLCF cadetsodfjell quarterly 18

The Age ofThe Odfjell Quarterly Brain TeaserCaptain B’s childrenWe have received the following nice teaserfrom Ronaldo Gimenes, Odfjell Brasil in SãoPaulo. In addition to being excited by finallygetting such feedback to this column, wefind this exercise very nice indeed. It may bean oldie, but at least your editor was fooledby the apparent simplicity of the problem.So thanks a lot, Ronaldo, and we welcomeall further suggestions.Two Odfjell captains meet one day, aftermany years without any contact. They startthe following conversation:Captain A: Are you married?Captain B: Yes, I have been married formany years now.Captain A: Any children?Captain B: Yes, we have three children.Captain A: How old are your kids?Captain B: If I multiply their ages, the resultis 36.Captain A (somewhat puzzled): Well, I’mafraid I need more information than that.Captain B (rather amused): The sum of theirages is equal to the number of the bluehouse over there.Captain A: Oh, but that is still notenough.Captain B: OK then, the oldest oneplays piano.Captain A: Ah, now I’ve figured itout.After this enlighteningconversation, it should be easy tofigure out the ages of Captain B’sthree children.We look forward to receivingyour solutions, before May 15that the very latest.Solution to the previous Odfjell Quarterly Brain Teaser:Last time we asked how to change the position oftwo rail cars on the sidetrack at the Fantasia TankTerminal. There are two equal solutions, dependingon whether you start at (A) or at (B). Below wepresent the solution, starting at (A):1) Move the engine (E) up to (A) and intothe side-spur to push car C1 under thebridge.2) Move E down to (B) to push C2 up to thebridge, and connect it with C1.3) Pull both cars out to the straight track,and push them up to A.4) Disconnect C1 from C2 and pull C2back to B and push it up where it wasbefore.5) Move E to C1, and pull it down past Band up the side-spur to connect C1 toC2.6) Push both cars so that C2 goes past thebridge. Disconnect C2 from C1.7) Pull C1 back to where C2 originally wasplaced, and disconnect.8) Move E up to A and into the side-spur toconnect with C2.9) Pull C2 to the position where C1originally was placed, and disconnect.10) Move E back to its original position.It is difficult to say whether the readers foundthis problem entertaining or easy, or if theywere motivated by my threat to discontinue thiscolumn if the feedback didn’t improve drastically.Nevertheless, we have received the record highresponse rate of not less than 16 suggestedsolutions, among them several representatives ofcustomers and other business partners. Not allsuggestions are correct; e.g. some end up with theengine trapped between the bridge and one ofthe railcars. Still, 12 of our readers have submittedcorrect solutions, and as we have only one prizethe prestigious winner had to be selected “out of ahat”. The lucky winner this time is 2/E Jose RichardPareja on NCC Jouf. Congratulations!The prize is on its way.odfjell quarterly 19

Greetings From Around the WorldAbove: Human chains.Left: A “star” formation.Emergency Training in the wetThe life as a seaman has its hazards, andmarine personnel needs to know howto handle emergency situations. Thus,as part of the process of renewing theircertificates they have to go through safetyand emergency courses. In mid March aparty of Norwegian officers attended athree-day course at NoSeFo in Bergen. Onthe curriculum were a number of essentialtopics, such as first aid and medicalassistance, fire emergency practices andlife raft training. Odfjell Quarterly hadthe pleasure of attending (but not takingpart in) the session in the pool, where theparticipants, all dressed in safety suits,were doing the life raft training. Therethey learnt how to launch and enter thelife raft, the correct way to jump into thewater, how to overturn the raft and howto rescue injured and unconscious people.They also practiced how to shape variousformations, in order to stay together andto be easier to spot from an air search.Such courses are of vital importancefor making our seafarers ready for alleventualities, but hopefully they will neverhave to use these skills.Basketball on board Bow FavourBy Leif Nedregotten, Master Bow FavourDuring one of our recent voyages fromPanama to Osaka we arranged a basketballtournament among the crew, on a ballground that we set up on the poop deck. Toprevent the ball going into the sea (sourcesof replacement basketballs are few and farbetween in the middle of the Pacific), we hadhung up one of the gangway nets. However,we needed one more, and eager handsmanaged to tie a 10 x 4 meter net using aworn hawser. The attached pictures are takenduring our first Sunday matches. The finalshad to be postponed due to bad weather untilwe were at anchor in Osaka on February 8th.The matches lasted to 8 PM, and were playedlit by our two rear ”pirat” floodlights, to theamazement of nearby ships at the anchorage.The Bow Favour basketball champions werethe engine team, ”Heavy Fuel Rockets”,after a very close victory over the deck team,“M.T.B.E. Jaguarsodfjell quarterly 20

Christmas preparation at the Norwegian Seamen’s ChurchBy Atle KnutsenThe Norwegian Seamen’s Church as we know it is now calledThe Norwegian Church Abroad. The name is different, but thecontent and the warm welcome are the same. Since Odfjell is ashipping company, we associate with The Norwegian Seamen’sChurch. The church is visiting our vessels calling on Singapore,though it is becoming increasingly difficult to enter the vesselsdue to very strict security measures. Similarly make securityrestrictions and the very hectic port calls it difficult for ourcrew to visit the church.For all the Norwegians living in Singapore, about 700 in total,the church means a lot. It is a place to congregate, meet peopleand attend service on Sundays. The location is on a hill, with afantastic view over the harbour. The church in Singapore hasmany activities for both children and adults. Before Christmastime the ladies group worked for months to prepare variousarticles to sell at the Christmas bazaar. It was amazing to seehow many things of high artistic value that was produced.For the Christmas bazaar, Ingrid Espelid – Norway’s famousnutrition expert, was present to recognize and support thisspecial function. The income from the bazaar is a considerablefinancial contribution to the support and running of thechurch. The families of Odfjell Singapore’s employees wereactive participants in creating and supporting the Christmasbazaar.Above: Ingrid Espelid with her “Guard ofhonour” – Atle Knutsen, Einar Samseth,Frode Jusnes and Svein-Gustav Steimler.Left: Smiling vendors at the bazaarRecognition byUnited StatesCoast GuardBy Helge OlsenThe United States Coast Guard hasimplemented a program to identifyhigh-quality ships and to encouragequality operations. This initiative is calledQUALSHIP 21, quality shipping for the 21stcentury. Odfjell continued commitmentto safe shipping and the US Coast Guard’sQUALSHIP 21 program has recently beenreconfirmed.The US Coast Guard has now issued orreissued enrollment certificates for 28 of ourvessels currently meeting the QUALSHIP 21program guidelines. The certificates haveHelge Olsen and his ”QUALSHIP 21 Wall of Honour”.been sent to all relevant vessels, and USCoast Guard’s website has been updatedaccordingly.In a letter that Odfjell recently hasreceived, the US Cost Guard states: ”Yourcommitment to safe shipping and theCoast Guard’s QUALSHIP 21 program ishighly commendable. This is evident whenpointing out that Odfjell has the largest fleetrecognized for any single owner/operator”Indeed a pleasant feedback from the UnitedStates Coast Guard.odfjell quarterly 21

Greetings From Around the WorldCelebrating Chinese New Year in SingaporeAbove: Selling Chinese symbols of good luckLeft: Food of all kinds.By Dennis ButlerI have lived in Singapore since 1981, and fate hasplayed a hand with my marriage to a ChineseSingaporean. Ever since our marriage, I havebeen party to the traditions and customs of theChinese culture. Although not myself taking partof Buddhist rituals, I have experienced the vibrancyand colour that this sacred holiday brings to theChinese community.Chinatown would be the most logical place to goto if one wishes to join the crowd of womenfolkwho flock there in droves to buy new clothes andfinery for themselves and for their family. NoLunar New Year would be complete in a Chinesehousehold if one does not have at least a set ofnew clothes to wear. What do the men do inChinatown while the women go shopping? Theyjust hang around, talk and enjoy watching theactivities. Little stalls are set up in every availableretail walkway with vendors selling clothes, shoes,pirated DVDs (somehow they seem to appeareverywhere for every occasion), New Year’sdecoration, flowers, waxed duck, melon seeds,cookies, candy, and so forth.A most distinct feature is the aroma of sweetmeats, grilled on the spot, permeating theatmosphere. Every Chinese home is adorned bygold and red colours, as symbols of wealth andgood luck.The highlight of the festive season would be theNew Year’s Eve reunion dinner where all familymembers sit down to close the year together.Traditionally all married daughters are supposedto spend their reunion dinners with their husband’sfamily, but with new family patterns, this traditionhas become somewhat diluted. On the first dayof the Lunar New Year, all children - married orotherwise - are obligated to return to their homesto pay their respects to their parents. Marriedpersons give a token red packet containing newcurrency notes of an even denomination to a singleperson. This is the part that my two children (nowteenagers, but still avaricious) - all children, in fact- eagerly anticipate and take particular delight in.E. & O.E. (errors are expected because I am an “angmoh” or “guai loh”)Bow Master – Drydocking in SingaporeBow Master was delivered in January 1999,as the first of four 6,000 dwt sisters that werebuilt at Stocznia Szczecinska in Poland. Sincedelivery, the four “Master class”ships haveall been trading in the South East Asia area.Odfjell’s operations in Singapore are growing,Left: Bow Master in dry-dock.The stern newly repainted.and currently we have 15 vessels operated byOdfjell Singapore. Personnel in the Singaporeoffice perform ship management for the fleetin Singapore, and an increasing number of shipsare flying the Singaporean flag. With an increasein Singapore registry, Odfjell will perform moreof its procurement of spare parts and servicesthrough its Singapore office.When planning the drydocking of Bow Master,thus, it was natural for Odfjell to have the jobdone in the vessel’s own homeport, and wesuccessfully concluded all arrangements withSingapore Technologies Marine. As this supplieris familiar with Odfjell dockings,a the companyhas several experts supervising the maintenanceprograms that are performed. The overallsupervision of the Bow Master is still restingwith Fleet C and Geir Trulssen, who is managingOdfjell’s ship management group in Singapore.odfjell quarterly 22

Bow Firda calling Kandla onher maiden voyageBy Manisha Desai & Hetal Vaishnav, Odfjell IndiaWith fresh memories from the impressive Bow Sun, staff atIFFCO & Kandla Port Trust was looking forward to board ournext newbuilding M/T Bow Firda. We thought this a goodopportunity for us to have a get-together on board with someof our IFFCO & KPT contacts.On January 12th, more than 20 people, including three of usfrom Odfjell India, attended the party on board. Bow Firda isindeed a unique vessel, fully stainless and with electronic mainengine management. Chief Officer Ian Shaw was our guidethroughout the tour of the vessel, and explained everythingright from the bridge till the propeller shuttle. He was showeredby questions from the guests as they found lot of new things toinvestigate.Ch.Officer Ian Shaw answering questions from the guests. Fromleft Mr. R. T. Revankar (Traffic Manager, KPT), Mr. A. K. Joti(Chairman, KPT), Ian Shaw, Mr. S. Srinivasn (Jt. GM Systems,IFFCO) and Mr. V. S. Vaish (Exec. Dir., IFFCO).After the tour we all gathered in the day room, where the galleycrew served delicious meals of all choices and tastes. Beforedining, there was a small ceremony where IFFCO’s ManagingDirector Mr. V. M. Vaish and our agents Intra-Trade presentedsome mementoes to the Ship Master.The get-together was a success, and we find such events goodopportunities for Odfjell to build relations with our customers,and especially with IFFCO as the major importer of phosphoricacid to India.We extend our gratitude to Master and all members of the crewfor such a good event!Mr. S. Srinivasn (Jt.GM Systems, IFFCO), Mr. A. K. Joti (Chairman,KPT), Captain Sigurd Fjaerestad, Mr. Sudesh Kamath (VP OdfjellIndia), Ch. Officer Ian Shaw, Mr. V. S. Vaish (Exec. Director, IFFCODelhi), Mr. Balendu Tiwari (Secr. to KPT Chairman), Mr. R. T.Revankar (Traffic Manager, KPT).Norway’s Ministerof Trade andIndustry visitingOOTSBy Atle KnutsenThe last week of January, Norway’sMinister of Trade and Industry, AnsgarGabrielsen, visited Singapore to meet withhis counterparts here and to visit some ofthe Norwegian companies in Singapore.The Minister and his delegation hadrequested the opportunity to learn moreabout Odfjell’s activities in the Far Eastarea wherefore we had prepared a briefpresentation combined with a tour of theOOTS facilities.At OOTS. The Minister Ansgar Gabrielsen as number five from left.A terminal in full operation and with allfour berths occupied, one by an Odfjellvessel, illustrated the role and importancethe Odfjell Group plays in the logisticssupply chain of chemicals.odfjell quarterly 23

The Lady Sponsor and Eddievoyaging on boardBow FortuneThe Lady Sponsor on her ship.and spent the following day shopping gifts.Then we were taken by limousine (!!) toKaoshiung, to catch up with the boat. Weeven got time to visit the Buddha Park andwatch impressive flower shows. The city lifewith all the traffic was however exhausting,and it felt good to go on board again.The days went incredibly fast and suddenlyarrival Singapore was a fact. We were sadto have to part with this splendid vesseland its super crew, but we take with us themost pleasant memories. Thank you Helge,Svein, Jone, Espen, Frode, Glen and rest ofthe crew.Our stay in Singapore was also trulymemorable. We visited the Odfjell officeand met old acquaintances, lunched at theSeamen’s Church and went shopping in theChristmas decorated streets – somewhatunusual for us in +30°C. We found Singaporeexciting, beautiful and clean. We werehappy to see Chinatown, Little India andSentosa and especially to round off with anevening at Hanne and Atle’s place.The Sjursæthers on boardWith spouse admiring Korean temples.As our journey is over, we must thank allof you involved in these successful events.We experienced a warming kindness andinvolvement, and find it difficult to putwords on what this adventure has meantto us. Let us express our sincere gratitude toeveryone involved.Reidun Sjursæther is the Lady Sponsorof Bow Fortune, and when her husbandEddie retired after impressing 50 years withOdfjell, the couple was awarded a voyageon board the vessel as a farewell gift fromthe company and the crew. Mrs. Sjursætherhas shared with us her memories from theirwonderful voyage.We arrived in Osaka on October 26th 2003,after a long flight from Bergen, and theday after we embarked Bow Fortune on theanchorage in Kobe. Capt. Aslaksen and hiscrew gave us a heartily welcome, and thesize and cleanliness of the vessel impressedus. We were lodged in a cosy cabin, and soonfound our way up to the birdge, and duringour time on board we spent a lot of timethere. It was indeed fascinating to watchpiloting in the densely trafficked waters.Our first port of call was Ulsan and three daysof transhipment operations. Port CaptainGarshol joined us for sightseeing, with Mr.Park as our local guide. Amongst the manysights we can mention a World Heritagetemple, a traditional theatre and severalbeautiful parks. The day after, we went ona city tour with Sylvia Kim from the Odfjelloffice. The last stop was the amethyst minesand we got back just in time for departure.After calling Busan and Yosu in sunshine, wearrived Keelung in rougher weather, takingthe narrow entrance with precise navigation.In Taichung we went ashore to stay a nightWith Sylvia Kim from Odfjell Koreaodfjell quarterly 24

Quality Renaissance Project-Moving into the second phaseBy Freddie FosseThe Quality Renaissance Project phases – where are we ?The Corporate Quality staff: Ellinor Hjortland and Freddie FosseIn the September 2003 issue of Odfjell Quarterly we introduced theQuality Renaissance project. Having successfully established the scopeof work, we are now moving into the second phase of the project,which will require the direct involvement of the users. Each businessunit in Odfjell is requested to review their status and standing withinfive important areas:• Customer focus• Business processes• Business process risk assessment• Measurement of quality• Supplier qualityWith the customer focus approach we will emphasize an external andinternal customer perspective. We consider how we interact as partsof the dynamic supply chain, sometimes as customers and sometimesas suppliers. Some crucial questions that need to be discussed andresponded to are how we learn to understand customer satisfaction,how we make sure our customers are satisfied with our service andperformance, and what do we do to improve customer satisfaction.To start the move towards the future business process model, thebusiness units will identify and describe their main processes in orderto assess the importance and risks involved. This is an important task,enabling support project teams to prioritise correctly when movingforwards.The purpose of quality measures is to identify what is important toour business performance, our current status what we should do toimprove.Finally, with the supplier quality approach we will strengthen theexternal and internal supplier focus, as we are all customers in varioussettings. We need to understand how we monitor and measurethe performance of our suppliers, and what to do to improve theirperformance or even make other commitments?The tasks mentioned above will lead to a set of prioritised critical andimportant processes as input for future project phases.Corporate Quality ManualCorporate Quality has over the last couple of months worked onpreparing a top level description of the system for improving qualitywithin the Odfjell Group.The Manual will be presented in two sections:• Section 1 describes main management principles and ourapproach to improving quality performance and customersatisfaction across the organisation.• Section 2 contains quality system requirements on the waywe operate. This section will be based on a process modelapproach.Section 1 of the Corporate Quality Manual will be available on theIntranet by March 2004. Section 2 will be subject to delivery as theQuality Renaissance Project progresses.Quality BoardThe Corporate Quality Board is a forum where members of SeniorManagement discuss quality issues at corporate level. The purposeof the Board is to define and develop the quality policy andcorresponding strategies, as well as to follow up on performance toachieve business quality targets. The Corporate Quality Board meetson a quarterly basis.Odfjell Quarterly as a Quality information channelWe intend to use Odfjell Quarterly as a regular information channel tokeep Odfjell employees updated on local quality efforts, achievementsand events. If there are any relevant activities that you would like toreport, or issues that you think would be of general interest to theorganisation, your input is highly appreciated.odfjell quarterly 25

Commercial Shipping ICT Applicationsand InfrastructureDuring the last yearswe have carried outseveral developmentprojects, and in themost recent issuesof Odfjell Quarterlywe have broughtupdates on thestatus of applicationsand infrastructure.Our overall goal isBy Tor Jürgensen to bring forwarda complete set ofICT tools supporting all main work processesof Odfjell Seachem and the regional fleetorganizations. We have come a long way, andmany applications to support the main workprocess are already in place:• Decision support (voyagecalculation).• Sales management (booking)• Stowage planning• Voyage management (control andexecution of transport services)• Voyage accounting• Customer information (customer webstorefront)We have also developed a set of supportingtools. All applications are integrated, anddata flows from one application to anotherin accordance with execution of the variouswork processes. We have obtained one timedata entry and re-use of information, whichcontribute to improved efficiency and enhancedquality of work.Figure 1 – The Deep Sea and Regional Fleet System PortfolioIn Figure 1 we illustrate how the variousapplications are linked and integrated witheach other.The application systems and the databases arerunning on the computer system in Bergen. Auser connects to the applications either from aPC’s connected to the Global Odfjell Network orthrough Internet Café solutions.Figure 2 – The Global Odfjell NetworkExcellent applications are important, but it isjust as important to have a proper and secureinfrastructure on which to run the applications.To make the applications easily available tothe users we have carried out several relatedprojects. We have kept a high focus onavailability, to allow access both from office andvia the Internet. Stability is important, so thatthe system is always up and running. We havecreated scalability, making the capacity easilyupgraded when needed. Security should be veryrigorous, to protect against all kinds of externalthreats. The result of these projects is that wenow have a main computer center in Bergenwith a secondary center as backup. Offices in 17countries are connected to these installations.Figure 2 gives an overview of the Global OdfjellNetwork.Introducing a complete suite of new informationsystems, as we have done over the last years,requires new routines and improved ways ofworking in order to benefit from the potentialefficiency and quality improvements the systemshave to offer. Improvements on routines andminor software adjustments will be our mainactivities in 2004 when it comes to commercialshipping applications.odfjell quarterly 26

Holidays well spentBy Sphelele MsimangSphelele Msimang is a student at the TisandHigh School, which we presented in ourSeptember 2003 issue. She has spent someweeks as a vacation trainee at Odfjell SouthAfrica, and afterwards she wrote this articleabout her experiences.During the South African summer of 2003/2004 I had the pleasure of spending fiveweeks at the Odfjell office in Durban, andI feel I really learnt a lot within this shortperiod. The wonderful staff taught mecargo related work and introduced me tothe documentation necessary for a shipto call at a South African port. I was alsoThe Captain and the “Cadet-to-be”.With Capt. Otto Vollan on the bridge of NCC Madinahfirst helicopter ride with the National PortAuthority craft that is used for Pilot services,providing a great over-view of the Port ofDurban.Most of my last week with Odfjell was spenton board NCC Madinah. I was on the vesselfor four days, including the (much too short)sea passage from Durban to Richards Bay.These were really some of the best daysof my life. Everyone on board the vesselwas always ready to explain and willing toteach me the various aspects of the vesseloperation, despite them always being verybusy with their work. Capt. Otto Vollanreally went out of his way and helped mea lot, and I must say he is one of the nicestpeople I have met. The officers taught meabout the running of the cargo deck, thebridgework and navigation. I saw the wholeof the vessel, including the interior of a tank,and I also worked with the crane and stoodat the helm.The time I spent with the NCC Madinah mademe realise how much I’d love being a sailor.One day hopefully I will have the opportunityto join an Odfjell vessel, become a cadet andfrom there work my way up.given a practical demonstration of stowageplanning, which I now realize is not as easyas it appears at school. In addition I alsogot an introduction to the whole chemicallogistics industry.I attended a few meetings with some of thecharterers, although I believe most of thematters they discussed could be dealt withover the telephone or by e-mail. However, Irealised the importance of personal contact,especially when concerning operationalmatters. The Odfjell office even arranged myNCC Madinah at berth in Durbanodfjell quarterly 27

Winter in the North AtlanticWe have received these nice, but oh so chilling, photographs from Captain Winge on NCCJubail. Looking at these images which we understand were taken while calling the USAtlantic Coast, we can easily understand the hardships of trading in the North Atlanticduring wintertime. However, looking at the smiling faces of the crew, it perhaps wasn’ttoo bad after all. Or maybe they were blissfully dreaming of future voyages along moreagreeable latitudes.odfjell quarterly 28

The Personnel CornerNEW HIRESHeadquarters Bergen:IN SERVICE FOR ODFJELLOdfjell Terminals Rotterdam:25 yearsPeter MarinusStock Controller01.01.79Nicholas W.Giaever-EngerBroker05.01.04Odd Jarle PollenOperator05.01.04Odfjell Terminals Rotterdam:Magnus WidellOperator05.01.04Odfjell JapanKen KuriharaMarketing Manager01.01.04Trond PedersenICT Consultant01.01.04Cor DistelveltCo-ordinator Stock Administration01.02.79Wout GriffioenC1-operator01.02.79Sjoerd SchaafsmaC1-operator01.02.79Piet StarkForwarding-agent05.02.79Toon RuizendaalManager QHSE12.02.04Maurice van denNouwlandD-operator01.02.04IN MEMORY OFGuttorm D. Eilertsen(17.01.1942 - 13.01.2004)We are sad to announce the deathof retired Chief Engineer Guttorm D.Eilertsen, 62 years old. He passed awayon Tuesday January 13th, after six monthsof illness.Eilertsen was employed by Odfjell fromJanuary 1969 as Chief Engineer on M/TAsp. Since then he sailed as Chief Engineeron several of our ships until he retired inJanuary 2002 from M/T Bow Viking.Chief Engineer Guttorm Eilertsen wasa skilled mariner who received the bestrecommendations from his officers andcrew. Eilertsen received the Gold Medalfrom Norwegian Shipowner’s Associationand the Gold Watch for 25 years withOdfjell.Our thoughts are with his family.Arne T. Svellingen(13.04.1946 - 17.01.2004)We are sad to announce the death ofPumpman Arne Svellingen, 57 years old.He passed away on Saturday January 17that hospital, after a very short period ofillness.Svellingen was employed by Odfjell August1961 on M/T Bow Santos. Since then hesailed on several of our ship continuouslyfor 42 years, with his vacation periods asthe only interruptions. He disembarkedM/T Bow Favour on December 19th, 2003.Pumpemann Svellingen was a skilledmariner who received the bestrecommendations from his officers andcrew. Svellingen received the Gold Medalfrom Norwegian Shipowner’s Associationand the Gold Watch for 25 years withOdfjell.Our thoughts are with his family.Odfjell AnnualReport 2003Odfjell ASA’s annual report for2003 is now available. In addition toproviding the latest financial figures,it also contains lots of information onour development and prospects forthe future. The report is available inhardcopy as well as in electronic formaton the Odfjell Intranet and on Internetat www.odfjell.com.odfjell quarterly 29

Fleet, terminal and container overviewGLOBAL TRADEOWNED:YEAR BUILTTDWCBMSTAINLESSSTEEL CBMNUMBEROF TANKSBow Star * 2004 39 832 52 126 52 126 40Bow Sun 2003 39 842 52 126 52 126 40Bow Firda * 2003 37 427 40 515 40 515 47Bow Chain * 2002 37 518 40 515 40 515 47Bow Favour 2001 37 438 40 515 40 515 47Bow Century 2000 37 438 40 515 40 515 47Bow Fortune 1999 37 395 40 515 40 515 47Bow Cecil * 1998 37 345 40 515 33 236 47Bow Flora 1998 37 369 40 515 33 236 47Bow Cardinal 1997 37 446 41 487 34 208 52Bow Faith 1997 37 479 41 487 34 208 52Bow Cedar 1996 37 455 41 608 34 329 52Bow Fagus 1995 37 375 41 608 34 329 52Bow Clipper 1995 37 166 41 492 34 213 52Bow Flower 1994 37 221 41 492 34 213 52Bow Sea 1978 27 950 34 656 21 035 43Bow Hunter 1983 23 002 25 026 21 031 28Bow Pioneer 1982 23 016 25 965 20 969 28Bow Eagle 1988 24 728 32 458 19 662 25Bow Viking 1981 33 590 40 956 21 745 36Bow Fighter 1982 34 982 41 184 6 299 34Bow Lancer 1980 35 100 42 468 6 252 34Bow Heron 1979 35 289 42 109 5 882 31Bow Cheetah 1988 40 258 47 604 - 29Bow Leopard 1988 40 249 47 604 - 29Bow Lion 1988 40 272 47 604 - 29Bow Panther 1986 40 263 47 604 - 29Bow Puma 1986 40 092 47 604 - 29Bow Petros 1984 39 722 47 963 - 28Bow Transporter 1983 39 738 47 963 - 28Bow Lady 1978 32 225 41 354 3 077 42Bow Princess 1976 32 362 42 480 1 400 42Bow Queen 1975 32 363 41 703 816 42Bow Peace 1987 45 655 52 173 2 167 23Bow Power 1987 45 655 52 173 2 167 23Bow Pride 1987 45 655 52 173 2 167 23Bow Prosper 1987 45 655 52 173 2 167 23Bow Prima 1987 45 655 52 173 2 167 23TIME-CHART.:NCC Jubail 1996 37 499 41 488 34 209 52NCC Mekka 1995 37 272 41 588 34 257 52NCC Riyad 1995 37 274 41 492 34 213 52NCC Tihamah 1977 28 088 34 656 21 035 43NCC Yamamah 1977 28 053 34 656 21 035 43NCC Jizan 1976 28 024 34 656 21 035 43NCC Jouf 1976 28 026 34 656 21 035 43NCC Madinah 1976 28 053 34 656 21 035 43NCC Najran 1976 28 000 34 656 21 035 43NCC Asir 1983 23 001 24 965 20 969 28NCC Arar 1982 23 002 24 965 20 969 28NCC Baha 1988 24 728 32 458 19 662 25Bow Sky 1977 28 083 34 656 21 035 43Bow Neptun 1976 28 060 34 656 21 035 43Bow Saturn 1976 28 030 34 656 21 035 43Bow Merkur 1975 27 952 34 656 21 035 43Fertility L 1987 45 507 52 173 2 167 23Fraternity L 1987 45 507 52 173 2 167 23Maasslot L 1982 38 039 48 866 - 22Maasstad L 1983 38 039 48 866 - 22Maasstroom L 1983 38 039 48 866 - 22Brage Atlantic 1995 17 460 19 587 19 587 22Brage Pacific 1997 17 460 18 620 18 620 24Number of ships: 61 2 112 418 2 484 868 1 134 972odfjell quarterly 30

YARD DELIVERY DWT OWNER STATUSON ORDER: NB Szczecin - B588/III/3 8/2004 39 500 OdfjellNB Szczecin - B588/III/4 1/2005 39 500 OdfjellNB Szczecin - B588/III/5 6/2005 39 500 OdfjellNB Szczecin - B588/III/6 12/2005 39 500 OdfjellNB Szczecin - B588/III/7 6/2006 39 500 Odfjell OptionNB Szczecin - B588/III/8 12/2006 39 500 Odfjell OptionNB Shin-Kurushima 8/2004 19 000 Time-charterNB Shin-Kurushima 10/2005 19 300 Time-charterNB Usuki 10/2004 19 990 Time-charterNB Usuki 12/2005 19 990 Time-charterNB Kitanihon 8/2005 30 000 Time-charterNB Kitanihon 5/2006 30 000 Time-charterNumber of newbuildings: 13 385 080* - Vessel beneficially owned through financial lease.YEAR STAINLESS NUMBERREGIONAL TRADE VESSEL BUILT DWT CBM STEEL, CBM OF TANKSOWNED: Bow Master 1999 6 046 7 036 7 036 14Bow Mate 1999 6 046 7 036 7 036 14Bow Pilot 1999 6 046 7 036 7 036 14Bow Sailor 1999 6 046 7 036 7 036 14Bow Marino 1988 11 289 11 445 6 386 17Bow Giovanni 1987 11 290 11 445 6 386 15Bow Antisana 1989 8 192 9 899 5 777 22Bow Gorgonilla 1989 8 192 9 899 5 777 22Bow Andes (50 %) 1977 28 060 34 756 21 136 43Bow Pacifico (50%) 1982 18 657 22 929 10 849 31Owl Trader 1982 12 450 14 482 8 070 22Angelim (50 %) 1985 10 259 10 136 6 500 18Araucaria (50 %) 1984 10 259 10 159 6 500 18Jatai (50 %, LPG) 1979 4 452 4 031 - 3TIME-CHART.: Bow de Jin 1999 11 752 12 296 12 296 20Bow de Silver 2000 11 747 12 296 12 296 20Bow de Feng 2002 12 514 13 289 13 289 22Bow West 2002 12 503 13 289 13 289 22Bow Wallaby 2003 11 951 13 486 13 486 22Bow de Rich 2003 12 500 13 560 13 560 22Bow Asia 2004 9 900 10 866 10 866 22Bow Singapore 2004 9 800 10 866 10 866 22Bow Wave 1999 8 594 9 225 9 225 20Bow Wind 1999 8 587 9 226 9 226 20Cristal 1996 10 314 11 332 11 332 21Bow Andino 2000 16 121 17 270 17 270 30Hibaya Park 1990 13 921 16 053 10 721 24Chembulk Fortitude 1989 13 681 15 847 10 545 24Jacaranda (50%) 1978 9 970 9 924 5 877 17Aragas (50 %, LPG) 1983 9 300 8 026 - 5POOL: Multitank Balearia 1998 5 870 1 941 5 941 20Multitank Batavia 1998 5 870 1 941 5 941 20Multitank Badenia 1997 5 870 1 941 5 941 20Multitank Bolognia 1997 5 870 1 941 5 941 20Multitank Bracaria 1997 5 870 1 941 5 941 20Multitank Brasilia 1997 5 870 1 941 5 941 20Multitank Bahia 1996 5 870 1 941 5 941 20Multitank Britannia 1996 5 870 1 941 5 941 20Number of ships: 37 367 599 368 838 316 331STAINLESS NUMBERTANK TERMINALS LOCATION SHARE CBM STEEL, CBM OF TANKSOdfjell Terminals (Rotterdam) BV Rotterdam, NL 100 % 1 537 000 20 450 300Odfjell Terminals (Houston) LP Houston, USA 100 % 271 950 82 400 92Odfjell Terminals (Dalian) Ltd Dalian, China 64 % 59 700 5 750 35Odfjell Terminals (Korea) Co Ltd Onsan, Korea 50 % 109 500 2285 39Oiltanking Odfjell Terminal Singapore Ltd Singapore 50 % 213 000 5 700 51VOTTN Ltd (Ningbo) Ningbo, China 12.5 % 63 500 7 900 362 254 650 122 200 553TANK CONTAINERS6 700 units operated as per March 20th 2003.odfjell quarterly 31

OFFICES AND ADDRESSESMAIN OFFICEOdfjell ASA - Odfjell Seachem ASConrad Mohrs veg 29, P.O.Box 6101 Postterminalen5892 Bergen, Bergen, NORWAYTel: +47 5527 0000Fax: +47 5528 4741Fax: +47 5527 9070 (Chartering/Operations)INTERNATIONAL OFFICESOdfjell USA LP12211 Port RoadSeabrook, TX 77586, USATel: +1 713 844 2200Fax: +1 713 844 2211Odfjell Singapore Pte Ltd6 Shenton Way, # 27-08/09 DBS Tower 2SINGAPORE 068809Tel: +65 6349 1300Fax: +65 6224 2285Odfjell Japan LtdOgawa Bldg. 8F2-2 Uchikanda 1-ChomeChiyoda-ku, Tokyo 101-0047, JAPANTel: +81 3 3259 8555Fax: +81 3 3259 8558Odfjell Netherlands BVOude Maasweg 6, P.O.Box 50103197 XC Rotterdam-BotlekThe NETHERLANDSTel: +31 102 953 666Fax: +31 102 953 668Odfjell Brasil LtdaAv. Paulista 460 - 18 andarCEP 01310-904 Sao Paulo SP, BRAZILTel: +55 11 3549 5800Fax: +55 11 3549 5808Odfjell ShanghaiUnit 2309 23/F CITIC Square1168 Nanjing Road WestShanghai, 200041 P.R. CHINATel: +86 215 298 4068Fax: +86 215 261 0288Odfjell Argentina SAAlicia Moreau de Justo 1960Office no. 202 - Puerto Madero1107 Buenos Aires, ARGENTINATel: +54114 313 7837Fax: +54114 313 4619Odfjell Australasia Pty LimitedSuite 4, Level 1443 Little Collins StreetMelbourne VIC 3001 AUSTRALIATel: +61 3 9642 2210Fax: +61 3 9642 2214Odfjell IndiaA-26, Nandbhuvan Industrial EstateMahakali Caves Road, Andheri (East)Mumbai 400093, INDIATel: +91 22 5695 4701Fax: +91 22 5695 4707Odfjell Seachem South Africa Pty LtdB & P House84 Armstrong AvenueLa Lucia RidgeDurban 4051, SOUTH AFRICATel: +27 31 5728180Fax: +27 31 5728188National Chemical Carriers Ltd CoRoom 301, 3rd Floor, Al-Akariyah Bldg No 1Sitteen Street, Malaz AreaP.O. Box 8931Riyadh 11492, SAUDI ARABIATel: +966 1 477 3934Fax: +966 1 476 4328Odfjell Korea Co. Ltd.Room 1301, Dongbu-Dadong Bldg.# 103, Da-Dong, Jung-GuSeoulKOREATel: +82 2 775 9760Fax: +82 2 775 9761Odfjell Manilac/o Magsaysay Maritime Corp.5th floor, 520 t.m. Kalaw Street,ErmitaManila, PHILIPPINESTel: + 63 2 526 9773Fax: + 63 2 525 7720Odfjell Dubaic/o Sharaf Shipping AgencySharaf Building, Al Mina RoadP.O. Box 576,Dubai, UNITED ARAB EMIRATESTel: +971 4 351 9785Fax: +971 4 351 9756Terquim SAMolo Sur s/n, Casilla 148San Antonio, CHILETel: +56 35 211 050Fax: +56 35 211 161Odfjell (UK) Ltd14 Headfort PlaceLondon SW1X 7DHUNITED KINGDOMTel: +44 207 823 0605Fax: +44 207 823 0606Odfjell Ahrenkiel Europe GmbHGurlittstrasse 11Postfach 100 22020001 HamburgGERMANYTel: +49 40 24838 307Fax: +49 40 24838 319REGIONAL OFFICESOdfjell Asia Pte Ltd6 Shenton Way, # 27-08/09 DBS Tower 2SINGAPORE 068809Tel: +65 6349 1300Fax: +65 6224 2285Odfjell Americas12211 Port RoadSeabrook, TX 77586, USATel: +1 713 844 2200Fax: +1 713 844 2233Flumar Transportes Fluviais e Maritimos LtdaAv. Paulista 460 - 18 andarCEP 01310-904 Sao Paulo SP, BRAZILTel: +55 11 3549 5800Fax: +55 11 3549 5807TANK TERMINALSOdfjell Terminals (Houston) LP12211 Port RoadSeabrook, TX 77586, USATel: +1 713 844 2300Fax: +1 713 844 2355Odfjell Terminals (Rotterdam) BVOude Maasweg 6, P.O.Box 50103197 KJ Botlek-rtThe NETHERLANDSTel: +31 102 953 400Fax: +31 104 160 840Odfjell Terminals (Dalian) LtdNo. 3 Binhai North RoadZhongshan DistrictDalian 116001, P.R. CHINATel: +86 411 8262 9701Fax: +86 411 8262 3707Odfjell Terminals (Korea) Co., Ltd.136, Cheongyong-RiOnsan-Eup, Ulju-GunUlsan, SOUTH KOREATel: +82 522 311 600Fax: +82 522 376 636Oiltanking Odfjell Terminal Singapore Pte Ltd1 Seraya AvenueSINGAPORE 628208Tel: +65 6473 1700Fax: +65 6479 4500VOTTN, Ningbo LtdJetty No. 16 Zhenhai Port AreaNo.1 Zhaobao Shan Rd., Zhenhai DistrictNingbo, P.R. CHINA 315200Tel: +86 574 627 5929Fax:+ 86 574 627 5931TANK CONTAINERSHoyer-Odfjell B.V.P.O. Box 50253197 XG Botlek RTThe NetherlandsTel: +31 102 631 600Fax: +31 102 631 699Hoyer-Odfjell BrasilAv. Paulista 460 - 18 andarCEP 01310-904 Sao Paulo SP, BRAZILTel: +55 11 3549 5800Fax: +55 11 3549 5839Hoyer-Odfjell China21C, Est Ocean Centre588 Yan An Road EastShanghai 200 001, CHINATel: +86 216 351 9641Fax: +86 216 351 9747Hoyer-Odfjell Dubaic/o Sharaf Shipping AgencyAl Mina RoadP.O. Box 576,Dubai, UNITED ARAB EMIRATESTel: +971 4 3511 690Fax: +971 4 3511 467Hoyer-Odfjell Singapore6 Shenton Way, # 27-10, DBS Tower 2SINGAPORE 068809Tel: +65 6223 4073Fax: +65 6225 6798Hoyer-Odfjell USA16055 Space Center Blvd.Suite 500Houston, Texas 77062 USATel:+1 281 853 1000Fax:+1 281 853 1199odfjell quarterly 32www.odfjell.com