dolphin jul-aug05.pdf - Jurong Shipyard Pte Ltd

Business Reg. No.: 199908265GMICA (P) 028/06/2005 July - August 2005Together We CelebrateTo mark Singapore’s 40 years of nationhood, the management, employees,union and stakeholders came together in celebration during a NationalDay Observance Ceremony on August 18, 2005 in Jurong Shipyard.Minister and representatives participating in the flagraisingceremonysuccessfully expanded its business and competenciesby “investing in relationships, technology, researchand resilient people”.Guest-of-Honour Mr Raymond Lim, Minister, Prime Minister’s Office, Second Minister for Finance and Foreign Affairs,celebrating the nation’s birthday together with senior management and union personnelJointly organised by SembCorp Marine, Jurong Shipyardand its union SMEEU Jurong Shipyard Branch, theceremony saw a turnout of more than 5,000 employeesand resident sub-contractors. Presiding over the ceremonywas Guest-of-Honour Mr Raymond Lim, Minister in thePrime Minister’s Office and Second Minister for Financeand Foreign Affairs, along with key union personneland top management from the Group and yard.In his opening address, Mr Lim congratulated JurongShipyard for clinching several significant globalcontracts in recent months, and its achievements inthe technically exacting and challenging global offshoreand marine industry. He added that the yard hasAward PresentationTeams of employees from Jurong Shipyard and its subsidiary and subcontractor companies were accordedInnovation Awards and SIT (Safety Innovation Team) Awards for contributing innovative ideas for productivityand safety enhancements.This year, the Innovation Award under the Jurong Shipyard category went to the Piping and OutfittingSection for developing a “Laser-based Method for Container Fitting”. This new method has resulted ingreater productivity and safety, along with estimated cost savings of $85,000 per new containership.Jurong Machinery and Automation (JMA) won the Innovation Award in the “Subsidiaries and Subcontractors”category for developing the “Automated Duct Bender”.The device fabricates ventilation and air-conditioningducts with greater ease, efficiency and safety, resulting in estimated cost savings of $200,000 per year.“The challenge ahead is improving further upon yourrecord while meeting numerous delivery and budgetobligations,” said Mr Lim. Towards this end, both themanagement and union must work together toinculcate a “safety-first” mindset and an innovationculture among employees, he added.On a similar vein, Mr Wong Weng Sun, SembCorpMarine’s Deputy President and Jurong Shipyard’sManaging Director, also underscored the importanceof continuous innovation as well as high quality andsafety standards to keep pace with the competition.“While we take heart in our present successes, we mustnot become complacent,” stressed Mr Wong. “To stayahead of the competition, where fast turnaround andreliable service are critical, we have to keep our costsdown and our standards high. We have to continueimproving and innovating to further bring up ouroperational efficiency and productivity,” he added.To meet future challenges, it is also vital to have acohesive and committed team, where management,employees and stakeholders work in synergy to steerthe company ahead, said Mr Wong. “In our journeyahead, there are bound to be challenges in the horizon.But whatever the tide brings, I am confident that, withthe right attitude and spirit, we will stay the courseand harness the elements to our advantage.”Innovation Award (Jurong Shipyard category) winner fromPF SectionRecipient from JMA receiving the Innovation Award(Subsidiaries & Subcontractors category)Our employees in attendance

Yard NewsAnother US$400 MillionSemi-sub Building OrderJurong Shipyard, a subsidiary of SembCorp Marine,is set to construct its third sixth-generation ultradeepwatersemi-submersible rig unit after signing aletter of intent with PetroMena AS, a wholly-ownedsubsidiary of Norway‘s Larsen Oil & Gas (LOG), inearly August.The 6 th generation semi-submersible drilling rig, valuedat around US$400 million, is designed to operate inthe challenging deepwater arena, in particular theGulf of Mexico, offshore Brazil and West Africa. Theconstruction contract will take effect in November2005, with delivery scheduled between year end 2009and early 2010.Mr Don Lee, Senior General Manager of OffshoreDivision, said, “We are pleased with the confidenceand trust that Larsen Oil & Gas has bestowed onJurong Shipyard based on its track records for qualityand on-time delivery. We are delighted to be part ofLOG’s success and we look forward to a lastingrelationship between the two groups of companies.”Mr Berge Gerdt Larsen, Chairman and largestshareholder of Oslo-listed DNO ASA (the NorwegianOil Company AS), said, “We are pleased with therelationship that we have built up with the SembCorpMarine group in general and in particular JurongShipyard over the last two years as managers ofPetrojack’s building programme.” The new contract isa “manifestation of the cooperation and trust”experienced with the company, he added.Fully owned by Mr Larsen, LOG acts as the businessmanager to Oslo-listed drilling companies PetroliaDrilling ASA and Petrojack AS, which ordered threejack-up rigs from Jurong Shipyard. In addition toPetromena’s order, Jurong Shipyard was recentlycontracted to build two sixth-generation F&G rigs forBermuda-based offshore drilling contractor SeaDrillLimited, which awarded the yard an additional optionto construct a third unit based on the same design.6 th GenerationSemi-submersible Design• Capable of dynamic positioning in water depths upto 10,000 feet• Operational displacement of 43,400 metric tons at17 metres draft; 46,750 metric tons at 20 metres draft• 18,000 square feet of usable deck space• More than 7,000 metric tons of variable deck loadGaz Meridiansurges aheadGaz Meridian, an LPG tanker owned by Europe’sNaftomar Shipping and Trading Co Ltd, departedJurong Shipyard on August 3, 2005 with renewedpower after completing its fourth special surveyat the yard.The ship, measuring 224.52m x 32.21m x 22.03m,arrived at the yard on June 20, 2005. As part ofits special survey, machinery and electrical workswere carried out, including inspection of turbogenerator, the overhaul of main engine,turbochargers, ballast,T.G, LPG, booster pumps, aswell as valves at various locations. Repairs andrefitting works were also conducted on deck, alongwith the renewal of pipes, valves and brackets.Substantial steel works in the water ballast tanksamounting to about 50 tons completed the workscope during her stay in the yard.New vitality forCaribbean BlueCaribbean Blue, a 384,197 dwt Floating Storageand Offloading (FSO) vessel, was given a fresh leaseof vitality, after repair and upgrading works inJurong Shipyard.Owned by Tanker Pacific Management (Singapore)Pte Ltd, the 373.52m x 64m x 29m Caribbean Blueset sail on July 19, 2005, after 38 days in the yard,inclusive of 10 days in dock. Major scope of worksincluded new installation of manifold, marpol, cargoloading pipe lines, hydraulic lines and deck seals.Significant jobs also included overhaul of pumps,valves and electric motors, renewal of funnel uptake,as well as modification of pipelines in pump room,engine room, and all center tanks. The yard alsoperformed hull blasting and painting, as well as seavalves and bottom plates renewal, along with otherroutine drydocking works.High safety standards were maintained throughoutthe entire project, which achieved an impressivezero-incident safety record. Commending the teamfor a job well done,Tanker Pacific’s Technical DirectorMr Tadic Tonci, said, “An estimated 50,400 manhourswere worked by ship staff without incidentor lost-time injury – this performance was onlypossible by the good teamwork displayed by allthe parties involved.”The successful survey and overhaul follows afterthe repair of fellow fleet member Gaz Energy, a230m x 36.6m x 20.40m LPG tanker, in May.02

Yard NewsTwin overhauls a milestone firstTwin tankers Maria A. and Antonis I.Angelicoussis, which docked in JurongShipyard during July and August 2005,marked a special milestone by being thefirst pair of sister vessels from alliancepartner Chevron Shipping’s fleet toundergo periodic overhauls concurrentlyin the yard.The team behind Antonis’ repairsChevron sisters Maria and AntonisAntonis I. Angelicoussis joined her sister Maria inJurong Shipyard when she called for drydocking repairson August 10, 2005. Her scope of works covered theoverhaul of cargo and ballast pumps, valves and pipes,IGS fans, hull cleaning and painting, sea chests cleaningand coating, anchors and chain cables, overhaul andload test of accommodation ladders, lifeboats anddavits, hose handling cranes, provision cranes andinstallation of pipes.The dedicated efforts, coupled with the strongteamwork and commitment, put in by the Chevronand Jurong teams, enabled sisters Maria and Antonisto complete their repair phases safely and efficiently.Measuring 332m x 58m x 31m, Maria A.Angelicoussis,a 306,085 dwt Very Large Crude Carrier (VLCC),underwent her first special survey from July 23 toAugust 23. Beyond the standard drydocking works,which included the overhaul of valves, pumps,turbochargers and electric motors, the stern tubebearing was removed for re-metalling and refittedwhen vessel was drydocked for a second time. Somealteration works to the vessel were also carried outcomprising of the installation of vacuum condenserand new ejector pump, as well as modification ofscavenge manifold drain pipe and cooling valve.Fond FarewellsAs a tribute to team members for their dedication and effort, several celebrations were held onboard Maria A. andAntonis I.Angelicoussis prior to their sail-off. Besides reaffirming the alliance partnership, these vessel parties providedexcellent opportunities to further build the team spirit and camaraderie between Chevron and Jurong personnel.Maria poised to sailTo bring the Chevron-Jurong Shipyard allianceinto the next phase of progress, key personnelfrom Chevron Shipping and Jurong Shipyard cametogether to map out plans for future growth.During the two day alliance meeting from July 26to 27, 2005, key team members from bothcompanies touched base as well as shared insightson strategies for continuous improvement andcapacity expansion, as the yard progressesinto the niche area of LNG and LPG repairs.Alliance Meeting 2005Charting Future Directions03

FeatureAchieving a Milestone in ShipbuildingChristening Ceremony of Wan Hai 311Jurong Shipyard and Wan Hai Lines celebrated another shipbuilding milestone with the officialnaming of “Wan Hai 311” ( ), the largest and most advanced container vessel designedand built in Singapore.FeatureCelebrating a shipbuilding milestone: (From right) Mr Wong Weng Sun, JSPL’s MD, Mr Chen Chao-Hon, Wan Hai Line’sChairman, Mrs Chen, Mdm Cai Jingying, Lady Sponsor, Mr Hu Hanxiang, President of the Association for Shipping Acrossthe Straits, and Mr Lee Yeok Hoon, JSPL’s EDA toast to Wan Hai 311’s success and prosperity!Enjoying the vivacious lion dance performance“Wan Hai 311”, the first of six 2,646 TEU containervessels built for Wan Hai Lines, was christened inJurong Shipyard on 14 July 2005 by Lady SponsorMdm Cai Jingying, wife of Mr Hu Hanxiang,President of the Association for Shipping acrossthe Straits. Joining in the festivities were Wan HaiLines’ Chairman Mr Chen Chao-Hon, JurongShipyard’s Managing Director Mr Wong Weng Sunand Executive Director Mr Lee Yeok Hoon, as wellas management and staff from Wan Hai and Jurong.In his welcome address, Mr Wong extended hisheartfelt appreciation to Wan Hai Lines, the largestIntra-Asia carrier, for the “prestigious opportunity”to build six high-specification containerships forthe Taiwanese operator and to contribute towardstheir continual expansion in the burgeoningcontainership market.“These vessels when delivered, will undoubtedlyhelp to expandWan Hai Lines’ current service networkand provide better services to their ever-growingcustomer base; from Intra-Asia, to Middle East andthe United States of America,” said Mr Wong.Explaining the rationale for partnering JurongShipyard,Wan Hai Lines’ Chairman Mr Chen Chao-Hon said in Mandarin, “We ordered six 2,646 TEUcontainer vessels from Jurong Shipyard … as thedesign and specifications meet our stringentrequirements for quality and performance.”Mr Chen also commended the shipyard for its “cooperationand flexibility” in accommodating torequests for additional features to be incorporatedinto the design, which would further enhance WanHai’s competitiveness. He also expressed confidenceDisplaying the scroll of good luckthat Wan Hai’s relationship with Jurong Shipyardwould grow even closer in the future.The christening was a rousing affair as lion dancerspranced energetically to the rhythm of cymbals anddrums. In keeping with tradition, a lion dancerperformed the traditional “cai qing” (eating ofgreens) to bring good luck and prosperity to thevessel owner and crew.When it was time for the official naming, LadySponsor Mdm Cai christened the vessel andperformed the ribbon-cutting, which triggered thechampagne christening sequence. As thechampagne bottle smashed against the ship’s hull,fog horns sounded and a shower of confetti andstreamers rained downed on our VIPs, bringing thefestive mood to its highest point.Following, the VIPs were invited to a tour onboardWan Hai 311, and thereafter to a luncheonreception, where Jurong’s MD Mr Wong, and VIPsMr Hu and Mr Chen led guests and staff in achampagne toast to Wan Hai 311’s success andprosperity in her voyages ahead.An Engineering FeatThe construction success of Wan Hai 311 signifies a milestone in Singapore’s shipbuildinghistory and a significant achievement for the yard, being the largest and most advanced containervessel designed and built in Singapore. Measuring 213m x 32.2m x 16.5m, “Wan Hai 311” wasconstructed based on Jurong Shipyard’s proprietary Jubilee Class containership design developedin-house by the yard’s engineering team.Lady sponsor being briefed on Wan Hai 311’s capabilitiesSpecially designed to minimise the risks of propeller-induced vibration, this high-performancevessel has the ability to hit a top service speed of 23 knots and accommodate a high containerintake of 2,646 TEU (1,688 TEU on deck and 958 TEU in hold). An improvement over the yard’sprevious 2,586 TEU series, the 2,646 TEU design has additional features, including a lashingbridge and an increase in container-carrying capacity, with the ability to load two tiers of highcubecontainers in the cargo holds.Lady Sponsor Mdm Cai Jingying blessing Wan Hai 311 during the official christening, witnessed by key representatives from Wan Hai Lines and Jurong ShipyardGuests interacting onboard the vesselJurong Shipyard’s venture into containership building began in 1997, where the yard progressedfrom building 830 TEU, to 1,100 TEU, and subsequently 2,500 TEU series containerships. The successand strong demand for the 2,500 TEU series led to the launch of the 2,600 TEU series in 2004. Inaddition to the six 2,646 TEU containerships for Wan Hai Lines, Jurong Shipyard is also building twosimilar units for German shipowner Reederei F. Laeisz.04 05

SpotlightFirst Half 2005 ResultsSembCorp Marine, Jurong Shipyard’s parent company,reported a net profit of $58.4 million in the first-halfof 2005, up 21.6% over the same period last year.Net profit excluding the effect of tax write-back in2004, registered a 33.6% growth as compared with$43.7 million in the previous year.Turnover for the group increased by 59.4% from$575.8 million to $918.1 million, on the back ofstrong growth in conversion, rig building andshipbuilding activities. Operating profit stood at $56.1million, a 28.8% rise from $43.6 million in 1H 2004.Pre-tax profit increased by 37.7% from $54.5 millionin 1H 2004 to $75.1 million.The Board of Directors recommended an interim grossdividend of 2.5 cents per share, a 67% increase overthe 2004 interim dividend payout.1000800600400200Turnover by SectorsBriefing session in progressFinancial HighlightsItems 1H05 1H04 % changeRevenue 918.1 575.8 59.4Pre-tax Profit 75.1 54.5 37.7PATMI 58.4 48.0 21.6Earnings per 4.08 3.38 20.7share (cents)01H051H041H05 1H04 % changeShip Repair 231.2 220.4 4.9Shipbuilding 99.0 44.2 124.0Ship Conversion 402.5 229.4 75.5& OffshoreRig Building 145.1 41.6 248.8Others 40.3 40.2 0.2Total 918.1 575.8 59.4Visitation byMinistry OfficialsA group of officials and visitors from Maritimeand Port Authority of Singapore (MPA), Ministry ofTransport (MOT), Singapore Maritime Foundation,and Association of Singapore Marine Industries(ASMI) visited the yard on July 22, 2005.Led by BG Tay Lim Heng, MPA’s Chief Executiveand Mr Chan Beng Seng, MOT’s Director (Designate)of Sea Transport, the delegation was warmlywelcomed by SembCorp Marine’s managementteam at the Corporate Office. Officials and visitorswere given an overview of the Group’s progressand achievements over the years, its core capabilities,and yard management systems.Managing Director Mr Wong Weng Sun then hosteda tour of Jurong Shipyard’s workshops, facilities,and drydocks. Guests also went onboard Petrobras54, a tanker undergoing conversion to an FloatingVisitors onboard P-54Production Storage Offloading (FPSO) vessel, andwere briefed on the offshore conversion processby General Manager (Conversion), Mr Wang Zijian.By the end of the visit, the visitors had gaineddeeper insights into the Group’s marine engineeringcapabilities and business operations.NationalAwardforShipyardWatch GroupAfter its Silver win at thedistrict level, the ShipyardSecurity Watch Groupinitiative received nationwiderecognition duringthe National CSSP AwardsCeremony,co-organised bythe Ministry of HomeAffairs and the People’sAssociation, on July 21,2005 at DBS Auditorium.The Shipyard Security Watch Group is a projectjointly initiated by Jurong Shipyard, Jurong WestNPC, and two other shipyards. Under this initiative,Jurong Shipyard’s Security Watch Group conductsjoint patrols and evacuation exercises with policepersonnel, as part of proactive measures tosafeguard the yard’s security and safety.In-depth discussion in the corporate officeTouring the workshop facilitiesJurong Shipyard’srepresentative receivingthe National CSSP Awardfrom Associate ProfessorHo Peng Kee, SeniorMinister of State for Lawand Home Affairs.06

SafetyAnnual SafetyPerformance AwardsJurong Shipyard’s good safety performance inseveral key projects won for it recognition duringthe Ministry of Manpower’s Annual Safety andPerformance Awards this year. These projects hadattained at least 100,000 incident-free manhours,without any fatal permanent disablement case oraccident to any employee with one or more daysMC, and no confirmed notifiable industrial diseases.SILVERBaobab Ivoirien MV 10Project: FPSO conversionAccident-free Record: 2,541,874 manhoursDuration: 31 Jul 03 to 13 Dec 04MODEC Venture 11 (Hull Conversion)Project: FPSO conversionAccident-free Record: 1,417,676 manhoursDuration: 9 Feb to 29 Dec 04Group SafetyWorkshop:FallingHazards &ElectrocutionOur Executive Director Mr Lee Yeok Hoon receiving theawards from Mr Hawazi Daipi, Senior Parliamentary Secretaryfor Manpower and EducationJurong Shipyard recently launched two new initiatives – the Safety Merit Point Programme and theStar Safety Programme – in June 2005 to encourage greater involvement by subcontractor partners inmaintaining high safety standards during operations.A Safety Merit Point Programme was introduced to reward sub-contractorpartners for achieving good safety performance. Depending on the risk level oftheir work and the number of employees, sub-contractor companies who havesuccessfully maintained zero lost time injury will be awarded merit points. At theend of every quarter, accumulated merit points can be converted to cash awards,at $50 per merit point.In addition, sub-contractors that remain incident-free over a continuous periodof 3, 6, 9 and 12 onths will be presented Merit, Bronze, Silver and Goldcommendation certificates respectively. As a special commendation, thosewho achieve 1,000,000 man-hours without lost-time injury will be conferredthe “Million Man-hour Gold Award”.MERITNan Hai Fa XianProject: FPSO upgradingAccident-free Record: 764,777 manhoursDuration: 23 Mar to 2 Jun 04FMC SOFEC internal disconnectable turretProject: Turret fabrication and installationAccident-free Record: 386,338 manhoursDuration: 10 Oct 03 to 29 Dec 04Safety Merit Point ProgrammeStar Safety ProgrammePersonnel from SembCorp Marine’s subsidiaryshipyards engaged in a fruitful time of exchangeduring the “Falling Hazards & Electrocution”safety workshop on July 13, 2005. During thesession, participants discussed real-life casestudies and shared effective approaches inpreventing the occurrence of falling andelectrocution incidents.Subcontractor Safety SchemesAs a counteractive measure, sub-contractor groups that have incurred lost-time injuries are required to participate in the “STAR” Safety Programme. Using a fiveprongapproach, this scheme seeks to discourage further incidents from occurring as well as to support and encourage subcontractors in the drive towards zero incident.Safety Briefing by Sub-contractor BossTo reflect joint commitment towards safety, subcontractor bosses are to conducta safety induction and briefing for workers in the presence of the yard’s management.Work Risk LevelLow Med HighWork NatureMonthly Merit Points for Zero LTI• Steel work• High pressure water blasting• Blasting & spray painting (confined locations) 1pt 2pts 3pts 4pts 5pts• Electrical installation• Erecting & dismantling scaffolding• Outfittings• Blasting & painting in open space 1pt 1pt 2pts 3pts 4pts• Lifting• General cleaning 1pt 1pt 1pt 2pts 3pts• Power brushing & painting by brush / roller50 100 150 200 >200No. of employeesSafety Performance BondTo discourage further LTI cases, subcontractor companies are to providea safety performance bond of between $5000 – $11,000 or more,depending on their incident record.The bond will expire without paymentif the company remains incident-free during the next 3 months. Otherwise,the bond must be paid up in one lump sum.Close Monitoring by Yard Safety EngineersFor the next three months, safety checks will be stepped up on thesecompanies to raise safety awareness and avoid further LTIIndividual Rehabilitation ProgrammeOn recovery, the injured worker has to undergo a rehabilitationprogramme, in which he has to report to the safety department for 1hour every working day, for at least a month. Supervisors are notallowed to assign work beyond normal working hours before theprogramme is completed.Temporary Suspension from Safety Merit Points & AwardsThe company will be temporarily suspended from participating in theSafety Merit Point and Safety Certification Award programmes07

HappeningsInnovating forContinuous ProgressCreativity and innovation took centrestage during the 9 th SIT (Safety InnovationTeams) Conventionon July 28, 2005 as teams of employees and subcontractors presented innovative ideas forworkplace and safety improvement.The annual competition is aimed at encouraging employees’active involvement in bringing up productivity, quality and safety standards in the yard.TOP INNOVATIONS1 st prize: Emergency Signalling System – STEP team (SF)Traditionally, personnel working in tanks or confined spaces may have limited abilityto hear and respond to emergency sirens, which are mostly located above deck.Conversely, these workers may have difficulty alerting safety personnel should anincident occur in these remote locations.The “Emergency Signalling System” addresses these limitations by placing alert switches and sirens in suchisolated places.These are wirelessly connected to a portable receiver, which allows safety personnel to accuratelypinpoint the incident location. This new system accelerates emergency and evacuation procedures, and speedsup response time by up to 50%, resulting in better safety within the yard.2 nd prize: Quick Release Safety Catch for Hydroguns – VIPER team (SF)During the hydroblasting process, high-pressure hydroguns are used for cleaning hulls. Dueto physical exhaustion from prolonged usage, some workers resort to tying down the triggersfor easier blasting. In such cases, high-pressure jets of water pose a safety hazard if workersshould accidentally lose control of the device.The “Quick Release Safety Catch for Hydroguns” is a cost-efficient yet highly effective solution to the problem.A Velcro armband is secured by a 20cm nylon strip to a metal catch, which allows the hydrogun trigger tobe depressed with minimal effort, while allowing the default spring-release action of the gun to take effectin the event of accidents such as a fall.3 rd prize: Eccentric Revolving Pin – Marine Mechanics (JMCL)The Eccentric Revolving Pin is an innovative device for aligning flange bolt-holes andcouplings during the pipefitting process. This light-weight and user-friendly devicefeatures an alignment plug with an off-set taper, as well as a nut and washer.The device uses linear forces generated by the offset taper oscillating around the tightening bolt for the effectiveand efficient alignment of flanges.A safer and more efficient alternative to the traditional hammering technique,this innovative method reduces the risk of hand and finger injuries and the danger of flying projectiles.08Fit to Lead PledgingCeremonyDemonstrating their commitment towardsworkplace health promotion, JurongShipyard’s top management pledged tobe positive role models during a “Fit toLead” ceremony on July 8, 2005 atSentosa. The pledge reflects themanagement’s commitment to leademployees by example in the drive towardsachieving healthy and active lifestyles.Tree-top WalkEmployees trekked their way towards better fitness and health whenthey participated in a “tree-top” walk organised by the Jurong ShipyardRecreation Club on August 6, 2005 at MacRitchie Reservoir. The hiking tripnot only provided employees a good work-out opportunity but also a chanceto strengthen inter-department friendships. On reaching their destination,our happy hikers rested their weary feet and enjoyed a healthy feast ofdurians, rambutans and mangosteens to celebrate their trekking success.