Newbuilding Performance: Sailing the Extra Mile

The Kuwait Oil Tanker Company has adopted a unique philosophy for building and operating one of the most advanced, fuel-efficient fleets in the world.

As a subsidiary of the Kuwait Petroleum Corporation (KPC), the Kuwait Oil Tanker Company (KOTC) is committed to providing safe and efficient transport for Kuwait’s leading export product, petroleum, in line with KPC’s strategic vision. 

Recently KOTC completed a nine-vessel newbuilding program. Working with various suppliers, the company installed innovative technology enabling cleaner, safer, and more fuel-efficient fleet operation.  

Ali A. Shehab, Deputy CEO (Fleet Operations) at KOTC, says that unlike most shipowners, whose approach to ship operation has been driven by new regulations and bunkering costs, KOTC pursues a different, more forward-looking strategy that does not shy away from travelling the extra mile. 

“Rather than waiting for new regulations or reacting to changes in bunker prices, we actively seek new ways to improve our overall performance,” he says. “As a state-owned entity, KOTC not only has an obligation to provide KPC with excellent and cost-effective transport services. We also represent the State of Kuwait, which has very specific policies on how we behave as a company.”

Revamping the fleet

In 2014, KOTC completed Phase III of its ambitious newbuilding program, which included four VLCCs, four medium-range (MR) product tankers and one long-range Aframax petroleum product and crude oil tanker. The nine vessels were built at two separate yards and involved multiple suppliers. 

“From engine manufacturers to bridge control, and from classification societies to suppliers of marine coatings, we worked with a wide range of industry leaders,” says Jamil Al-Ali, Manager Fleet New Building Projects Group at KOTC. “Most owners tend to stick to the same suppliers, but we believe a more diversified approach helps us achieve better results.”

Jamil Al-Ali says that this strategy not only allows KOTC to test various systems but also helps deepen the technical knowledge across the organization. “KOTC is part of a larger, state-sponsored effort to recruit and train the next generation of Kuwaiti seafarers, and we gain more expertise by working with a range of suppliers,” he explains. “This strategy has also helped us build a strong international network – we have friends everywhere.” 

KOTC takes the same approach to classification societies. “Different classification societies have different strengths and we have worked with many of the leading classes across our fleet. However, we have enjoyed a strong, long-term relationship with DNV GL for many years,” says Shehab. “Their unrivalled technical expertise, especially in fuel efficiency, noise and vibration, crew comfort and ship safety has been very useful. Their quick response to our requests is also commendable.” 

Early adopter

Ralph Becker, DNV GL‘s Regional Business Development Manager for Middle East & India, notes that KOTC’s approach to shipping has much in common with DNV GL’s mission to help the industry become safer, smarter and greener. “All shipowners are looking for affordable ways to lower bunkering costs, comply with regulations and gain competitive advantage,” he says. “KOTC goes beyond that by being an early adopter, and its approach is not only effective but also serves as a model for other shipping companies.” 

KOTC’s newbuilds incorporate innovative technology such as latest-generation energy-saving engines which reduce SOX, NOX and CO2 emissions, as well as hull forms designed to optimize water flow to the propeller and reduce hydrodynamic resistance during vessel transit. 

Furthermore, the four VLCCs and the Aframax are also equipped with volatile organic compounds (VOC) reduction systems (DE-VOC) which work by controlling and maintaining the pressure in the cargo loading drop lines above ambient pressure, minimizing the generation of VOCs, especially at the initial stages of cargo loading. 

Proven results

Shehab acknowledges that being an early adopter can be a risk. But the results speak for themselves, he adds. “Measured against the voluntary targets set by the IMO’s Energy Efficiency Design Index (EEDI), our initial analysis indicates our VLCCs perform around 12 percent better than the benchmark value, and our MR tankers as much as 20 percent better,” he says. “What we learn from this newbuilding program will benefit the next phase of our fleet renewal.” 

Earlier this year, KOTC announced plans to expand its fleet by eight more vessels, a mix of very large gas carriers (VLGCs), liquefied petroleum gas (LPG) and MR tankers. The newbuilds are scheduled for delivery in 2016 and 2017. 

“As always, we welcome new ideas to help us achieve a cleaner, more fuel-efficient fleet,” Shehab says. “In fact, we are already in discussions with a number of suppliers who we believe will help us achieve our goals.”  

Source: DNV GL Maritime Impact Magazine