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DAILY COLLECTION OF MARITIME PRESS CLIPPINGS 2016 – 321HAL’s KONINGSDAM – Photo : Willem Ruys www.ruysch.nl (c)POSH Announces Senior Management ChangesOffshore marine services provider, PACC Offshore Services Holdings Ltd., announced changes to its seniormanagement team, as part of its continual leadership renewal programme. Current Chief Operating Officer, Lee KengLin, will be promoted to the newly created role of Deputy Chief Executive Officer with effect from 1 January 2017. MrLee will assume full responsibility for day-to-day commercial & operational activities whilst he continues to work withChief Executive Officer, Captain Gerald Seow, to develop and execute strategic growth plans for the Group. Mr Lee hasmore than 10 years’ experience in the offshore marine industry, and has played a pivotal role in growing the businessfor POSH since joining from PSA International in 2007. POSH also announces that Deputy Chief Financial Officer,Michael Lim Han Boon, will assume the position of Chief Financial Officer of the Group from 1 January 2017. In his newrole, Mr Lim will oversee the Group’s finance functions, including corporate finance, treasury, risk management, capitalmanagement and investor relations Mr Lim has more than 20 years’ of experience in finance and controllershipfunctions in the corporate and the government sectors, including at Aurecon Asia Pacific Group, IM Flash and theCentral Provident Fund Board, and had previously served as POSH’s Financial Controller He will succeed current ChiefFinancial Officer Thai Kum Foon, who will join POSH’s parent Group, Kuok (Singapore) Limited (“KSL”) as Group ChiefFinancial Officer effective 1 January 2017. Ms Thai will work closely with Mr Lim and the management team at POSHduring this handover period to ensure a seamless transition. Captain Gerald Seow, CEO of POSH, said, “We thank KumFoon for her exemplary service with POSH where she was instrumental in maintaining our financial resilience amiddifficult times. Keng Lin and Michael are already invaluable members of the POSH senior leadership team and theirexpanded roles will enable us to further utilise their skills, dynamism and deep experience. Together, we will takePOSH forward and position ourselves for the eventual longer term recovery of our sector.” Source: POSHDistribution : daily to 35.500 active addresses16 -11-2016Page 6

DAILY COLLECTION OF MARITIME PRESS CLIPPINGS 2016 – 321Bakker Sliedrecht extends the lifetime ofTESO’s ferry the Dokter WagemakerPhoto : Flying Focus Aerial Photography www.flyingfocus.nl Bakker Sliedrecht is going to extend the lifetime of the ferry DOKTER WAGEMAKER with 14 years by retrofittingthe frequency drives. The Dokter Wagemaker has been transporting passengers safely between the Dutch mainlandand the Isle of Texel since 2006.Lifetime extended until 2030Bakker Sliedrecht has been responsible for maintaining the electrical systems of the DOKTER WAGEMAKER afterhaving installed the systems during the build of the vessel. When TESO declared that they intended to keep the vesseloperational until 2030, Bakker Sliedrecht foresaw issues with providing service during this period. For instance,obtaining the right spare parts could have become extremely difficult or even impossible. Therefore, Bakker Sliedrechtadvised TESO to replace the frequency drives in order to guarantee the reliability and availability of the vessel duringits entire lifetime. This proposal also enabled TESO to save on maintenance costs.Marc Bakker, Manager of the Technical department of TESO: “ We really appreciate the fact that BakkerSliedrecht actively advised us about how to maintain the propulsion system in order to guarantee the availability andreliability of the vessel during its entire lifetime. First use of ABB ACS 880 liquid cooled drive converter worldwide Toextend the lifetime of the propulsion system, four existing ABB ACS 600 drive converters are going to be replaced bythe new ABB ACS 880 liquid cooled type. This solution will be certified by various maritime classification bureaus. TheDOKTER WAGEMAKER will be the first vessel in the world with the ABB ACS 880 liquid cooled drive converters.TESO will benefitfrom the drive converter upgrade because of: Higher efficiency Reduced maintenance costs Control platform can be used for a wider range of applications Greater availability of spareparts and serviceThe lifetime extension of the propulsion system is scheduled for delivery in 2017.Tanker ships’ values have dropped sharplysince the start of 2016Tanker ships’ prices have been on the decline in the S&P market this year, following strong performance during 2014and 2015. Current valuations are testing lows last seen late during 2013. In its latest weekly report, shipbroker CharlesR. Weber noted that “the decline comes following softer y/y earnings since Q2 amid a geographical redistribution oftrade routes, mounting global crude inventories, declining refining capacity growth and significant forces majeure inNigeria for much of the year. It also accompanies surging newbuilding deliveries and an absence of meaningfulphase‐outs. The average net growth of crude tanker fleets for 2016 is projected at 5.8%, versus 2.5% during 2015and ‐0.1% during 2014; during 2017, the number is expected to rise further still, to 7.8%. While forward fleet growthwoes are most pronounced in the Suezmax class, due to their ability to compete in both VLCC and Suezmax marketstheir impact is not likely to be disproportionately isolated. Adding to negative pressure on asset values are loomingDistribution : daily to 35.500 active addresses16 -11-2016Page 7

DAILY COLLECTION OF MARITIME PRESS CLIPPINGS 2016 – 321regulatory compliance costs”. According to CR Weber, “the greatest hit has been to existing units between 5 and 15years of age, as these face the combination of exposure to forward earnings headwinds and eventual regulatorycompliance costs. Newer units have either been built to higher specifications, which partly cushions the regulatorycompliance cost hit – and their longer remaining useful life allows their owners better prospects of capturing futurecyclical highs. Meanwhile, for the oldest constituents of the tanker fleets, value erosion has been least hit as thelikelihood of phase‐outs ahead of forward regulatory compliance had be largely priced in”. The shipbroker added that“though geographical trade distribution should improve during 2017 (to the detriment of fleet efficiency and benefit ofearnings) the directional decline of earnings is likely to prevail due to the supply‐side headwinds. While we expect thiswill continue to weigh on asset values, we see some signs that the pace of decline should ease. Firstly, asset valuesare now near their 2013 lows, implying that the expected forward earnings headwinds have already been priced in, atleast in large part. Secondly, newbuilding costs have likely bottomed and could well rise going forward. We base thisview on the fact that competitive yards have been aggressively marketing their services following the collapse ofnewbuilding orders across all maritime segments, with little positive impact on their overall order books and withoutbenefit to their financial health.TK’s CONSTITUTION SPIRIT anchored off Singapore – Photo : Bryan Shankland (c)On this basis, these yards are likely to move towards a restructuring of their business models to those which prevailedbefore newbuilding orders surged from the early/mid‐2000s by returning to a focus on margins, rather than volume.Any rise in replacement (newbuilding) costs should provide support to newer units in the longer‐term, while helping tostem the pace of value erosion thereof in the nearer‐term, once it prevails”, said CR Weber. Meanwhile, in the crudetanker market this past week, in the VLCC segment, CR Weber said that “VLCC rates came under negative pressurethis week as charterers had fewer cargoes to work in both the Middle East and West Africa regions. In the former, asurge in demand last week left a limited number of remaining November cargoes. A total of 19 fixtures were reportedin the Middle East, representing a 61% w/w decline while four were reported in the West Africa market, off by onefrom last week. The Middle East letup, coming amid the fresh appearance of previously hidden units weakenedowners’ resolve to maintain rates at last week’s highs and saw fresh erosion prevail”.According to the shipbroker, “theMiddle East market has yielded 133 November fixtures to‐date, leaving an estimated seven cargoes uncovered. Againstthis, there are 18 units available while West Africa draws will only likely draw away three of these, implying anend‐month surplus of eight units. This compares with an earlier estimate of 0‐5 units but remains low relative to theaverage of 20 observed during Q3. Ultimately, however, rate sentiment remains heavily dictated by the immediatedemand profile as owners compete for cargoes when the market is slow, as illustrated by the upwards of seven offersS‐Oil received for an AG‐ROK requirement. Given the supply/demand balance, we believe rates will trend higher withour model suggesting an AG‐FEAST TCE around 54,000/day, as compared with 46,412/day at present. However,as recent monthly cargo programs have been considerably back‐heavy between the three decade ranges, rate upsideaccompanying a progression into the December Middle East program could be moderate, but thereafter withavailability unlikely to expand significantly – and potentially subject to decline, given recent West Africa demandstrength and the corresponding lengthening of voyage turnaround time – rates could be poised for more aggressiveDistribution : daily to 35.500 active addresses16 -11-2016Page 8

DAILY COLLECTION OF MARITIME PRESS CLIPPINGS 2016 – 321upside once charterers move into second‐decade December dates. Furthering the upside potential are the hiking ofSaudi and other Middle East OSPs for Asian buyers, which should maintain strong VLCC demand in the West Africamarket and thus contribute to rate sentiment on competition for units among and between the two markets.Tempering this, however, we note that attacks on Nigeria’s Forcados pipeline have ramped up over the past weekwhile an Escravos Pipeline station was shut this week due to protests; if the situation in Nigeria translated to a returnto high forces majeure, then the extent of Asian interest in West African crude grades could wane”, CR Weberconcluded. Source: Nikos Roussanoglou, Hellenic Shipping News Worldwide.ClarkSea Index Competition: Beware The Traps!Every year, readers of the Shipping Intelligence Weekly are invited to submit their predictions of the value of theClarkSea Index at the start of November the following year. The predictions are always illuminating, indicating howmarket watchers feel the shipping markets may pan out in the coming year, as well as shedding light on how well theyhave fared in avoiding potential forecasting ‘traps’ So far in 2016, the ClarkSea Index has averaged 9,131/day, 37%lower than the full year 2015 average, with earnings in each of the sectors that comprise the ClarkSea Index down in2016. Although there was a general consensus that tanker and LPG carrier earnings would come off this year, withaccelerating fleet growth expected, some were hopeful that earnings in the bulkcarrier and containership sectors hadbottomed out and would see some upside. Whilst these views on the tanker and gas carrier sectors appear to haveplayed out broadly as expected, year to date average bulker and containership earnings currently stand 20% and 33%down on full year 2015 average levels respectively, and on November 4th the ClarkSea Index stood at 9,207/day.Avoiding The Traps?In the past, the ClarkSea Index competition has often indicated that participants expect the market to improve in thecoming year. However, this year, many participants have avoided this potential ‘trap’, with just one third of entrantsexpecting (or perhaps hoping) that the ClarkSea Index would stand above the full year 2015 average on 4th November2016. In fact, only 20% of entrants expected the ClarkSea Index to improve to 15,000/day or above at that point intime.nHowever, the majority of participants’ entries failed to avoid another ‘pitfall’ of forecasting, not expecting (orperhaps not wishing) that overall market conditions would deteriorate further. Rather expectations appeared to be thatthe ClarkSea Index would remain broadly steady. Overall, the average of the entries was 13,442/day, broadly in linewith the 2015 average of 14,410/day, with around 70% of competition entrants predicting that the ClarkSea Indexwould stand between 11,000/day and 15,000/day on the first week of November.Circumventing The PitfallsAs those in shipping are all too aware, predicting how the markets as a whole will fare in the year ahead is a trickytask, especially when considering the often contrasting fortunes of the sectors that make up the ClarkSea Index.Throw the issue of timing that prediction to a single week into the mix, and side-stepping the various traps becomeseven harder. The average of the predictions was more than 4,000/day away from the actual result.So, the ClarkSea Index highlights the still very challenging market conditions, and although some of the optimism ofprevious competition entries was not so evident this year, it was still the case that the majority of predictions were toohigh. Nevertheless, the competition as always provided one winner. This year’s closest prediction was a forecast of 9,042/day, just 165 away from the actual value. Congratulations to the winning entrant; the champagne is on itsway. Source: ClarksonsDistribution : daily to 35.500 active addresses16 -11-2016Page 9

DAILY COLLECTION OF MARITIME PRESS CLIPPINGS 2016 – 321Cruise ship business is booming in BayBy Roger MoroneyThe CELEBRITY SOLSTICE seen moored last Monday at the cruise terminal at Circular Quay in SydneyPhoto : Piet Sinke (c) CLICK at the photo and Hyperlink in text !For Hawke's Bay in New Zealand and the cruise ship tourism industry, it is very much a case of business is booming."It is very much growing," Hawke's Bay Tourism Industry general manager Annie Dundas said, adding the buoyancy itbrought the regional economy was set to expand given the rise in interest from cruise ship operators who hadbecome aware of Napier, and Hawke's Bay's, appeal to tourists. During the 2015/16 season there were 45 arrivals."This season we will do 55 cruise ships but next season it will be well over 70," Ms Dundas said. The cruise linercompanies effectively booked their schedules two to three years ahead. "Napier comes up as the first or second bestdestination in the surveys they carry out with passengers - it is the welcome people get and of course the whole ArtDeco thing is so strong - Napier does a great job with this." It has been estimated that the arrival of 55 cruise ships tothe region through until May next year will bring in around 20 million - with more than 70 set to call in the 2017/18season that figure will accordingly rise."It is so good for Hawke's Bay and we know cruise ship passengers have a high rate of return so their first timeexperience is very important." In terms of numbers, recent seasons have on average brought 80-100,000 visitors intoNapier and the region and they spend between four and 10 hours experiencing what was on offer. Ms Dundas saidthere was plenty of variety on that front. "There are about 50 tourism operators involved with the cruise shiparrivals." In a survey carried out toward the end of last year Napier received a five out of five rating in terms of beinga desired destination, with 84 percent of passengers surveyed saying they had felt "very welcomed" on arrival, andwhile looking about. It was the highest ranked figure of any New Zealand cruise port destination. About 60 per cent ofthose surveyed said they would likely return again. Ms Dundas said over the past decade as the cruise industryexpanded Hawke's Bay had kept pace in terms of accommodating it. "I think we've got it pretty good but there isalways room for new products, and we have to make sure we can deliver it all well." Maori culture, and telling "ourstory" in the Bay was one of the directions now opening up. The cruise industry was "definitely a bonus" to the regionand was on the up, Ms Dundas said. News that more ships would be heading this way, with passengers oftenspending up to 200 a day, led Napier Port chief executive Garth Cowie to remark it was something now vital to theregional economy. "On average every cruise ship brings an extra 2000 people into the region and that represents asignificant boom for our local businesses." Source: New Zealand HeraldACO PARTNERS WITH CERNÝ TO CREATE ANEW DIMENSIONThe successful installation aboard Royal Caribbean Cruise Lines’ Harmony of the Seas has resulted in an expression ofinterest for a further order on the fourth Oasis-class vessel, due for delivery in 2018. Only it’s not for a state-of the artwastewater management solution for which the company is typically known: it is state-of-the-art on a much granderscale – another jaw-dropping, thought-provoking installation designed by controversial sculptor David Cerný. It wasten years ago that the awarding-winning artist first approached his friend – an employee at ACO Marine’s PragueDistribution : daily to 35.500 active addresses16 -11-2016Page 10

DAILY COLLECTION OF MARITIME PRESS CLIPPINGS 2016 – 321facility – enquiring if the company could help engineer and build ‘Metalmorphosis’, the mirrored sculpture that nowtakes pride of place in the Whitehall Technology Park in Charlotte, North Carolina, U.S. It was a success and ACO Artwas born. “We’ve completed about seven installations together, including ‘Metalmorphosis’, and ‘Head’ for RCCL,” saidCerný, who recently won the prestigious NordArt 2016 prize “We’ve also just completed the commissioning of the‘Trifot

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