1. Tripartite Meeting Beijing, China, 8-9 November 2008 Safety & SOLAS Agenda item 3.1 IMO Goal-based Standards Toshiro Arima ClassNK Chairman of IACS EG/GBS

2. Content Roadmap of GBS from MSC83 to MSC86 Outcome of GBS at MSC83 Outcome of GBS at MSC84 2 nd Pilot Project – IACS contribution Topics – Net Scantling – Application of GBS for Bulk Carriers and Tankers – Possible schedule to introduce GBS List of Submittals to MSC 85 – MSC85/5, MSC85/5/1 - MSC85/5/8

3. Goal-Based Regulatory Framework Tier I Tier III Tier V Tier IV Tier II Applicable Industry Standards & Codes of Practice Prescriptive Regulations & Class Rules Verification Process Functional Requirements Goals IMO GBS (ref. MSC78/6/2 )

4. Roadmap of GBS from MSC83 to 86 Session Focused AreasDate MSC83 SOLAS Amendments and Tier III of GBS for BC & OT SLA Short-term Plan to MSC86 incl. WG, 2 nd PP and CG Oct ’07 - CG developed Unified GBS Framework 2 nd PP refined Tier III of GBS for BC & OT MSC84 Unified GBS Framework May ’08 - 2 nd PP continued to refine Tier III of GBS for BC & OT CG to finalize Generic Guidelines for developing GBS MSC85 Approval of Tier I, II and III of GBS for BC & OT (Approval of amendment to SOLAS II-1 regarding GBS BC & OT ， related Guidelines etc. ） Dec ’08 - CG finalize Generic Guidelines for developing GBS MSC86 Adoption of SOLAS Amendments and related Guidelines for GBS for BC & OT Finalization of the Generic Guidelines June ’09

5. Outcome of GBS at MSC83 Tier I, Goal SOALS Amendment, Ch. II-1, Reg. 3-[10] Not finalized (To be approved at MSC85) Tier II, Functional Requirements GBS for BC&T *1 [Resolution MSC…]: Revised (To be refined at MSC85) Tier III, Verification Guidelines *2 Reviewed and Agreed to task 2 nd PP to update the draft Guidelines *1: International goal-based new ship construction standard for bulk carriers and oil tankers (GBS) *2: Guidelines for Verification of Compliance with GBS for bulk carriers and oil tankers (Part A: Verification Process, Part B: Inf. And Doc. Req. and Evaluation Criteria(, where III.10.2.1 refers to SCF )) GBS for Bulk Carriers and Oil Tankers

6. Outcome of GBS at MSC83 MSC83/5/3 (CG Report): – Reviewed Categorization of ship type (Refer to MSC83/5/16: Korea): – WG agreed generally Linkage bet. GBS and FSA: – Needed Further Discussion Importance of Statistical Data (Refer to MSC83/5/10): – Premature to make a recommendation Safety Level Approach （ SLA) Work Plan for GBS Prescriptive and Safety Level Approach should move forward as integral elements of GBS – Clarification of work to be done to develop a generic GBS framework – Identification and compilation of the elements of the framework – Development of a prioritized plan to close the gaps and provide a unified framework for both prescriptive and safety approach Short term plan to MSC86

7. Outcome of GBS at MSC84 Generic GBS Framework Draft Generic Guidelines for Developing Goal- Based Standards (GBS) Prescriptive Approach vs. SLA Prescriptive Approach GBS and SLA GBS to be developed in parallel. Comparison both GBS in the same field/topics. Work Plan *1 for further Development of Goal-Based Standards Intercessional (MSC84 – MSC85) MSC85 Intercessional (MSC85 – MSC 86) MSC86: – Finalize Generic Guidelines – Consider long-term implementation of GBS Longer Term Consideration (7 sub-items) *1: Refer to pp.31-32 of MSC 84/24 (Report of MSC84) Generic GBS Framework

8. 2 ND Pilot Project IACS Contribution Prior to MSC83 Contributed by preparing CSR as an example for review by the Pilot Panel (see MSC83/INF.5) After MSC83 (Refer to Annex 2 of MSC85/5/1) Submitted a documentation package to PP (by 31 Mar 2008) Participated in PP meeting by answering questions and making a detailed presentation (at 5-6 May 2008) Provided Additional information to PP upon PP’s inquiries (by 30 May 2008)

9. 2 ND Pilot Project Report from PP Co-ordinator (MSC85/5/1) Guidelines for Verification of Compliance with GBS – PART A: Verification Process incl. Template of Self-Assessment Summary – PART B: Information/Documentation Requirements and Evaluation Criteria Recommendation regarding Ship Recycling Modifications to Tier II Functional Requirements – II.3.3 Ultimate Strength, – Revised Definition of Net Scantlings (in the footnote of II.3.4 Safety Margins)

10. Net Scantlings (Footnote of Tier II 3.4 Safety Margins) IACS support the majority view of the PP: – Strength assessment should be based on the foreseeable development of the ship structure throughout the life of the vessel. – Assessment based on the “pure” net scantling definition is too simplistic Have provided an alternative text: – The net scantlings should provide the structural strength required to sustain the design loads, – assuming the structure is in intact condition and – accounting for the steel diminution that could be reasonably expected to occur during the life of the vessel due to corrosion and wastage. Long experience with implementation of the proposed definition Implementation of the strict net scantlings approach should therefore be justified. IACS ask for industry support on our views and proposal Agreed at MSC83 The net scantlings should provide the structural strength required to sustain the design loads, assuming the structure is in intact condition and accounting for the steel diminution that could be reasonably expected to occur during the life of the vessel due to corrosion and wastage. PP’s new Proposal The net scantlings should …, assuming the structure is in intact condition. However, when assessing fatigue and hull girder global strength, a portion of the corrosion margin may be added to the net scantlings to reflect the material thickness that can reasonably be expected to exist over the design life.

11. MSC 85/5/6 (Japan) Comments on Net Scantling Concept MSC 85/5/8 (Korea) Comments on the PP Report Net Scantlings MSC 85/5/1 PP Report 13 The PP noted the revised definition of net scantlings as approved at MSC 83… … … … … … … …The PP believes this definition needs further clarity as it still contains ambiguity over the possible use of corrosion margins in the nominal thickness used for the strength evaluations. … … … … 14 Although the need for the revision of the footnote was agreed by all PP members, a few members pointed out that some wording in the last sentence of the new definition should be further refined to include, for example, the consideration of primary supporting members.

12. Application GBSGBS In MSC 83/WP.5, Draft New Reg. 3-[10] in SOLAS Ch.II-1 consequentially refers to the def. of bulk carriers in SOLAS Ch. XII i.e. GBS Bulk Carriers are independent of their cross section and include ore carriers and combination carriers CSRCSR Bulk Carriers (Single Deck, TST and BHT) exclude Ore and Combination Carriers n/a Note: For other types of BC, refer to MSC 85/7/1

13. Possible schedule to introduce GBS for BC & OT (MSC 85/5/4, Japan)

14. Thank you for your Attention!!

15. ANNEX Informational slides Not part of presentation

16. Submissions to MSC85 ReferenceTitleSubmitted byType MSC 85/5Draft SOLAS amendments to make the GBS for bulk carriers and oil tankers mandatory and related matters SecretariatCommon MSC 85/5/1Report of the Pilot Panel on the trial application of the Tier III verification process using IACS Common Structural Rules (CSR) PPTank/Bulk MSC 85/5/2Verification of compliance – Confidentiality statementSecretariatCommon MSC 85/5/3Definition of SLA and concept of its introduction into GBSJapanSLA MSC 85/5/4Comments on the draft SOLAS amendments for GBSJapanTank/Bulk MSC 85/5/5Ship Construction File – Protection of Intellectual Property RightsCESATank/Bulk MSC 85/5/6Comments on net scantling concept in the report of the Pilot PanelJapanTank/Bulk MSC 85/5/7Consideration of the protection of intellectual property rights (IPR)Japan, CESATank/Bulk MSC 85/5/8Comments on the report of the Pilot Panel on the trial application of the Tier III verification process using IACS Common Structural Rules (CSR) Republic of Korea Tank/Bulk

17. 3. Ships shall be designed and constructed for a specified design life to be safe and environmentally friendly, when properly operated and maintained under the specified operating and environmental conditions, in intact and specified damage conditions, throughout their life..1 Safe and environmentally friendly means the ship shall have adequate strength, integrity and stability to minimize the risk of loss of the ship or pollution to the marine environment due to structural failure, including collapse, resulting in flooding or loss of watertight integrity..2 Environmentally friendly also includes the ship being constructed of materials for environmentally acceptable recycling..3 Safety also includes the ship’s structure, fittings and arrangements providing for safe access, escape, inspection and proper maintenance and facilitating safe operation. … Tier I, Goals (Para 3 of draft Regulation 3-[10], see MSC85/5 ANNEX 1)

18. 3. Ships shall be designed and constructed for a specified design life to be safe and environmentally friendly, when properly operated and maintained under the specified operating and environmental conditions, in intact and specified damage conditions, throughout their life. ….4 Specified operating and environmental conditions are defined by the intended operating area for the ship throughout its life and cover the conditions, including intermediate conditions, arising from cargo and ballast operations in port, waterways and at sea..5 Specified design life is the nominal period that the ship is assumed to be exposed to operating and/or environmental conditions and/or the corrosive environment and is used for selecting appropriate ship design parameters. However, the ship’s actual service life may be longer or shorter depending on the actual operating conditions and maintenance of the ship throughout its life cycle. Tier I, Goals (Para 3 of draft Regulation 3-[10] (MSC85/5 ANNEX 1)

19. 4 A Ship Construction File with explicit information on how the functional requirements of the Goal-Based New Ship Construction Standards for Bulk Carriers and Oil Tankers have been applied in the ship design and construction shall be provided upon delivery of a new ship and kept on board the ship throughout its service. An additional copy of the Ship Construction File shall be kept ashore by the Company, as defined in regulation IX/1.2. The contents of the Ship Construction File shall be at least equivalent to the framework developed by the Organization.* * Refer to MSC.1/Circ.[…] (see MSC 85/5 ANNEX 3 ) on Information to be included in a Ship Construction File.” Regulation 3-[10] (MSC 85/5 ANNEX1) Goal-based new ship construction standards for bulk carriers and oil tankers

20. GUIDELINES FOR THE INFORMATION TO BE INCLUDED IN A SHIP CONSTRUCTION FILE

22. Tier II Functional Require- ments Tier II will be descried as a part of International goal- based new ship construction standard for bulk carriers and oil tankers (GBS) DESIGN II.1Design life II.2Environmental conditions II.3Structural Strength II.4Fatigue life II.5Residual strength II.6Protection against corrosion II.6.1Coating life II.6.2Corrosion addition II.7Structural redundancy II.8Watertight and weathertight integrity II.9Human element considerations II.10Design transparency CONSTRUCTION II.11Construction quality procedures II.12Survey IN-SERVICE CONSIDERATIONS II.13Survey and Maintenance II.14Structural accessibility RECYCLING CONSIDERATIONS II.15Recycling

23. II.3.4 Ultimate strength MSC83/ WP.5 Ultimate strength calculations should include ultimate hull girder capacity and ultimate strength of plates and stiffeners. PP’s new Proposal MSC 85/5/1 Ships should be designed to have adequate ultimate strength. Ultimate strength calculations should include ultimate hull girder capacity and ultimate strength of plates and stiffeners, and be verified for a longitudinal bending moment based on the environmental conditions in II.2.

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