Lloyds Register Canada Ltd DELEGATION is it working

Lloyd’s Register Canada Ltd. DELEGATION – is it working? Bud Streeter President Lloyd’s Register Canada Ltd. Presented by: Marcel La. Roche Marine Manager Western Canada Lloyd’s Register Canada Ltd. May 25 th, 2013

Lloyd’s Register Canada Ltd. What I’ll cover Delegated Statutory Inspection Program (DSIP) • Where have we been? • Where are we? • Is it Working? • Where to? • Conclusions

Lloyd’s Register Canada Ltd. What is the Delegated Statutory Inspection Program (DSIP)? • Tool for Flag State Inspections • Delegation of statutory inspection function to recognized organizations (RO) • Five Classification Societies (at this time) • Can be to any organization or individual

Lloyd’s Register Canada Ltd. Regulatory Relationships IMO Conventions Classification Implementation of standards for: Strength Propelling machinery Electrical systems Control systems Anchoring equipment Safety Floatability Pollution (SOLAS) (Loadline) (MARPOL) Strength Fire & lifesaving Freeboard Intact stability Damage stability Propelling machinery, electrical & control systems Communications Accidental Operational Damage stability Statutory certification

Lloyd’s Register Canada Ltd. Where have we been? • • • Load Lines were delegated in the late 1960 s Policy to delegate in early 1980 s Partial for classed tugs and lakers Renewed policy in 1994 and 1996 First agreement – Dec. 4, 2000 ISM in 2000 as well

Lloyd’s Register Canada Ltd. Where have we been? • First enrolment – March 14, 2001 –laker Canadian Enterprise • First tug enrolled – Dec. 11, 2001 – Placentia Pride • First new construction tug project in early 2005 • Now a major push to complete delegating all ships in class. • Alternative Service Delivery being discussed for all existing ships over 24 m • Mandatory class and delegation for new ships over 24 m

Lloyd’s Register Canada Ltd. Where are we? • When Bud spoke at Towboat 2007, there were 91 classed vessels in the program • Today, of 365 listed classed vessels, 326 are delegated or waiting for handover surveys. • 1/3 of those are in the Atlantic Canada Region of TC with the remainder evenly spread over the other 4 regions.

Lloyd’s Register Canada Ltd. Where are we? (Cont. ) Table 1: Number of DSIP Inspections by Year Inspection Type 2012 2011 Enrolment – Canadian 42 90 Enrolment - Foreign 4 12 Enrolment - Newbuild 3 9 Monitoring - Drydock 4 2 Monitoring - Followup 12 14 Monitoring - Inquiry / Incidents 13 9 Monitoring - Operations 50 22 Monitoring - Priority 4 9 Monitoring - Project / Plans Monitoring - Seasonal Reflag Non-delegated Statutory 5 16 0 3 58 79 195 265 Grand Total

Lloyd’s Register Canada Ltd. Is it working? Table 2: Number of Deficiencies by Year Inspection Type Enrolment - Canadian 2012 369 2011 335 Enrolment - Foreign 22 31 Enrolment - Newbuild 1 75 Monitoring - Drydock 0 0 Monitoring - Followup 6 4 Monitoring - Inquiry / Incidents 16 45 Monitoring - Operations 90 93 Monitoring - Priority 60 90 Monitoring - Project / Plans 30 44 Monitoring - Seasonal Reflag 0 4 Non-delegated Statutory 23 30 Grand Total 617 751

Lloyd’s Register Canada Ltd. Is it working? • Well, sorta yes! • If you don’t look too hard!

Lloyd’s Register Canada Ltd. Is it working? Top Deficiency Groupings 2012 - # of deficiencies 2011 - # of deficiencies SAFETY 232 255 HULL 98 91 DOCUMENTS 93 140 MACHINERY 83 137 ACCOMMODATION 46 34 NAVIGATION 44 44 POLLUTION 16 34 CARGO 5 16 Table 3: Most Common Deficiency Groupings

Lloyd’s Register Canada Ltd. So where to? At the last CMAC, TC presented Alternative Service Delivery (ASD) for the Certification of Vessels of 24 m and Above. • Such vessels will obtain certificates from RO’s • Presently 5 RO’s in Canada (ABS, BV, DNV, GL and LR) • There are 4 outstanding formal applications for recognition. • New vessels will be built to class and entered in DSIP • Imported vessels will be classed and entered in DSIP • BUT……. What about existing vessels? ?

Lloyd’s Register Canada Ltd. So Where to? • There are estimated to be 470 vessels of this category which are not “classed” with any of the ROs. • 177 of those are in the Pacific and Prairie and Northern Regions of Transport Canada. • 148 are categorised as Tugs/Workboats and Barges. • Volume and workload could be a challenge.

Lloyd’s Register Canada Ltd. So where to? • But the biggest “challenge” is…. 333 are older than 30 years!!

Lloyd’s Register Canada Ltd. The Lifecycle Process Owner contracts shipyard to build ship to meet regulations: - Classification Rules; - IMO International Conventions - Administrations Special Requirements Ship delivered to owner with classification and statutory certification in place. Ship is subjected to periodic surveys during ships life to maintain classification and statutory certification. Shipyard or owner provides design to Class for approval Class surveyors inspect, test and approve materials, components, hull, machinery and statutory items Ship reaches end of life and is recycled.

Lloyd’s Register Canada Ltd. The Role of Classification Societies Assurance At delivery certification assures that: • The ship has been designed to a prescribed standard that reflects the operational requirement • The ship has been constructed to those standards, using traceable materials and components • Establishes records for in service phase

Lloyd’s Register Canada Ltd. So where to? • TC recognize that some ships may not be able to enter into class at all. • TC have indicated that existing ships “will not be expected to enter into class if would cause undue hardship to the vessel owner”.

Lloyd’s Register Canada Ltd. So Where to? • Certification options to explore…. • TC continue to issue certificates following their inspections • TC issue certificates based on Statements of Compliance issued by their ROs. • “latent defect “provisions agreed between TC and ROs.

Lloyd’s Register Canada Ltd. Conclusions • Delegation is working as a strengthening partnership between owner, seafarers, RO and TCMS. • Delegation can improve through more ownerfriendly, yet robust, Acceptance into Class (AIC) processes. • Owners and operators must continue to monitor and improve their compliance performance. • ROs must continue to refine and improve their survey performance • TCMS must continue to improve and refine their monitoring processes.

Lloyd’s Register Canada Ltd. Thank You! And apologies from Bud for missing an important event.

Lloyd’s Register Canada Ltd. For more information, please contact: Marcel La. Roche Bud Streeter Marine Manager West Coast Area President Lloyd’s Register Canada Ltd. 221 West Esplanade Suite 512 North Vancouver BC 45 Alderney Drive Suite 812 Dartmouth, NS +1 (604) 982 -2120 marcel. laroche@lr. org +1 (902) 425 -5101 ext 231 bud. streeter@lr. org