Vessel Acceptance Policy

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Vessel Acceptance Policy I General SARAS provides for its own needs in maritime transport in a responsible manner, respecting the protection of peoples, environment, resources and its own business reputation. SARAS propose to achieve these goals using vessels of good quality, in compliance with the safety criteria adopted by itself and set forth at the section VIII, in order to minimize the risks related to such carriage. In addition, all vessels which are tendered to SARAS for chartering or tendered to third parties for chartering to transport oil cargoes, its derivates or other products purchased or sold by SARAS, must be in compliance with its Vessel Acceptance Policy and from here on referred as Policy. Even if a vessel is found to be in compliance with SARAS Policy, this does not give the Owner and/or Operator of the vessel, dedicated to hiring the ship under agreements with the Owner, the right to have the vessel chartered or employed by SARAS, nor does it impose on SARAS any duty or obligation to charter or employ such vessel. No obligations of acceptance, nor any other liabilities whatsoever, can be imposed on SARAS, should SARAS decide to perform an inspection of a vessel, by means of their employees or consultants, in order to verify the compliance with its Policy. The acceptance of a ship by SARAS and the subsequent charter-party with the same or with other third parties, does not exclude the responsibility of the Owner and/or Operator for the vessel s compliance to SARAS Policy and for the obligations arising from the stipulation of such charter-party. In case where a vessel is not accepted by SARAS, the Owner and/or Operator of such vessel are not entitled to make any claims against SARAS (nor any of their employees or agents) and SARAS shall be under no liability whatsoever as a result of any non-acceptance. If a vessel already accepted by SARAS, run into problems and/or abnormalities that lead to changes in the information previously provided, the Owner and/or Operator of the vessel must give immediate written notice to SARAS, so that the vessel can be reevaluated for her compliance. vetting.msc.rev.2 pag.1 17/12/2014

II Vessels subject to the acceptance criteria of SARAS Are subject to the acceptance criteria of SARAS: All vessels operating in the marine terminals owned by SARAS or companies of SARAS group (hereinafter Affiliates ). All vessels carrying goods of SARAS property, including the SARAS partial cargoes, where for goods are intended, mainly, the oil petroleum products in liquid or gas, chemicals or vegetable oils. All vessels chartered by or on behalf of SARAS. III - Acceptance Acceptance of a vessel by SARAS shall be based mainly, but not exclusively, on the results of exam of the following sources of information: Previous performance history at terminals owned by or affiliated to SARAS. Results of inspections conducted by SARAS or by other companies acting on its behalf. Information obtained from the Q88 questionnaire of Intertanko, latest version. Information obtained from the last Class status survey report. Information obtained from the Officer matrix. Inspection reports taken by the OCIMF-SIRE database. Market information. Any other information deemed relevant in SARAS exclusively judgment. IV Acceptance Conditions Every time a vessels is offered for chartering either to SARAS or third parties to transport oil cargoes and its derivates, or other products purchased or sold by SARAS, such vessel will be reviewed and evaluated by SARAS (vessel acceptance). Each request for acceptance shall be forwarded to the SARAS Head Office Supply & Trading, coupled with the Q88 questionnaire of Intertanko, the last survey status report which includes Class Conditions, Recommendations and Memoranda if any, and the Officer matrix. Such documents must be updated on the date of the request and the questionnaire must be filled and signed by the Owner or by the Technical Operator responsible for the ship. vetting.msc.rev.2 pag.2 17/12/2014

Could be requested a vessel inspection, carried out exclusively by SARAS or other company acting on its behalf, at the sole Owner s expenses. SARAS reserves the right to reject any vessel doesn t comply to its Policy. SARAS is not obliged to provide vessel s Owner and/or Operator on reasons for which an acceptance has not been granted. SARAS undertakes to treat as confidential all information and data collected during the vessel acceptance process. SARAS reserve the right to revoke, at any time, in its sole discretion, the acceptance of a ship. Every change of Owner, Operator, Classification Society or ship s flag, as well as any casualty in which was involved the ship or any measures of detention imposed by the Maritime Authority, will have the effect to nullify the result of last visit assessment, with the exception of: Change of Owner and/or Operator within the same corporate group. Change of the vessel s flag to others having lower risk (according to the list issued by Paris MOU). V Technical Inspection VETTING SARAS reserves the right to conduct an inspection in order to evaluate a vessel. Such inspection will be carried out by SARAS or by other company acting on its behalf, in accordance with the OCIMF Ship Inspection Report (SIRE) Programme. The Owner and/or Operator must guarantee that no other vetting inspection will be carried out at the same time during the planned inspection and availability on board of all ships certificates, as well as an updated OCIMF Vessel Particular Questionnaire VPQ. It may be possible that during the inspection, the inspector will ask the Master of the vessel to demonstrate the compliance with SARAS Safety Criteria, as described in Section VIII; the Owner and/or Operator shall not unreasonably withhold their permission in this particular situation and must ensure a proper cooperation and the required documentation. vetting.msc.rev.2 pag.3 17/12/2014

On completion of the inspection, any issues of non-compliance with SARAS Safety Criteria and/or other observations has to be discussed with the Master of the vessel. At the same time, a preliminary list of observations will be drafted and such list must be countersigned by the vessel Master. A report of the inspection will be forwarded by SARAS to the Owner or to the Operator. Owner or Operator of the inspected vessel, may upload their comments to the inspection report as prescribed by the OCIMF SIRE Programme. These comments should indicate the corrective action that the Owner or the Operator has taken to rectify observations found and the time limit to complete the corrective actions. SARAS reserves the right to consider the content of the produced comments, in way to evaluate the vessel and/or take any other decisions. The Owner and/or the Operator has to agree that the inspection report (VIQ) will be sent to SIRE for inclusion in its database. VI Technical Inspection. SARAS reserves the right to conduct additional technical inspection in order to verify the corrective actions taken by the Owner and/or Operator, or in order to ascertain the suitability of the ship. VII Safety Inspection. Ships calling at terminals owned by SARAS or its Affiliates, may be subject to a safety inspection, carried out by SARAS entrusted inspectors. The purpose of such inspection, which oversees the entire duration of the commercial operations, is to mitigate the emergency risk, the protection and control of safe operations, the protection of human health and the environment. vetting.msc.rev.2 pag.4 17/12/2014

VIII Introduction to the Ship s Safety Criteria. All vessels which are offered for chartering either to SARAS or third parties to transport oil cargoes and its derivates, or other products purchased or sold by SARAS must be in compliance with the SARAS Safety Criteria hereby indicated. SARAS has established its Safety Criteria in accordance with the parameters specified in the VIQ as established by the OCIMF. Requirements and Criteria stated in this document do not constitute suggestions or recommendations, and are only the standards of vessels which are considered adequate by SARAS for the vessel s employments listed in section II of this document. Depending on the various proposals for use, different criteria has been established for the selection of vessels, which are required to operate for and/or at terminals owned by or affiliated to SARAS, based on: 1. Minimum Safety Criteria (MSC) All ships must comply with the requirements indicated in the Minimum Safety Criteria adopted by SARAS. The non-conformity, even temporary, to one or more of these requirements will have the effect to make the ship not acceptable for SARAS. 2. Selective Safety Criteria (SSC). All ships must comply with the requirements specified in the Selective Safety Criteria adopted by SARAS. The nonconformity even temporary to one or more of these requirements can have the effect to make the ship not acceptable for SARAS. 3. Additional Safety Criteria (ASC) All vessels proposed for chartering and/or time chartered and/or with a CoA (Contract of Affreightment), will have to respond and operate in accordance with the Additional Safety Criteria adopted by SARAS. The non-conformity, even temporary, to one or more of these requirements can have the effect to make the ship not acceptable for SARAS or, if already chartered, automatically placing the same out from the charterparty. Any deviation from the Safety Criteria adopted by SARAS will be evaluated on a case by case basis reserving the right to take decisions that deems most appropriate. vetting.msc.rev.2 pag.5 17/12/2014

1 Minimum Safety Criteria 1.1 The ship must be built, manned, managed and certified in accordance with: i. The International Conventions, Regulations and Directives of the European Union, the Rules and Regulations of the vessel s Flag state and the Rules and Regulations of the ports and other places and waters where the ship will sail, approach or berthing; ii. iii. iv. The Rules and Regulations concerning the vessel s Class and must maintain the highest Class of such Register; The standards and recommendations issued by the International Maritime Organization (IMO) and the verifiability of such compliance through the implementation of a reliable Safety Management System (SMS); The Recommendations contained in the latest edition of the publications published by ICS / OCIMF / SIGTTO such as International Safety Guide for Oil Tankers and Terminals (ISGOTT), Tanker Safety Guide (Chemicals), Tanker Safety Guide (Liquefied Gases), Liquefied Gas Handling Principles on Ships and in Terminals in accordance with the type of the ship and further guidelines contained in other publications representative of the good industry practice ( Industry Standards Best Practice ). 1.2 Regardless of tonnage and year of construction, the ship must be double hulled. 1.3 OBO and ORE-OIL vessels are not acceptable. 1.4 The ship who approach at a marine terminal owned by SARAS or its affiliates, must arrive at the berth, ready to carry out the intended commercial operations, with the tanks in inerted conditions, if/when called to manage products with a flash point lower than 60 C, including the gasoil. 1.5 All commercial operations shall be performed in a closed cargo conditions. 1.6 The use of flexible interconnections between cargo lines and/or manifolds is not allowed. vetting.msc.rev.2 pag.6 17/12/2014

2 Selected Safety Criteria 2.1 An inspection report of the ship (VIQ) not older than six (6) months, must be available on the OCIMF SIRE database. 2.2 The new build vessel at her maiden voyage and/or ship coming from Dry-dock / Shipyard, are not acceptable. 2.3 The vessel must be not older than twenty (20) years. 2.4 The vessel over fifteen (15) years of age, must be hold a valid Condition Assessment Programme (CAP) certificate for Hull, with rating one (1) and for Machinery and Cargo Systems, with a rating not less than two (2). These certificates must be issued by a Classification Society member of the IACS (International Association of Classification Societies) different from the vessel s Classification Society. Such certificates will be considered valid for a period not exceeding three (3) years from their date of issue. 2.5 The vessel must be member of the ITOPF (International Tanker Owners Pollution Federation). 2.6 The vessel must be free of Conditions of Class or significant Recommendations, Memoranda or Notations. 2.7 The minimum manning of the ship must include a Master, three (3) Deck Officers, a Chief Engineer and two (2) Engine Officers. 2.8 Senior Deck Officers, must have the following aggregate experience: Master / Chief Officer - aggregate experience. Years with Ship s Operator At least two (2) calendar years Years in rank At least four (4) years of effective sea service Years on tanker experience At least six (6) years of effective sea service 2.9 Senior Engine Officers, must have the following aggregate experience: Chief Engineer / 1 st Engineer - aggregate experience. Years with Ship s Operator At least two (2) calendar years Years in rank At least four (4) years of effective sea service Years on tanker experience At least six (6) years of effective sea service vetting.msc.rev.2 pag.7 17/12/2014

2.10 Exclusively for gas tankers, the vessel s Master or the Chief Officer as well as the Chief Engineer or the 1 st Engineer, must have at least one (1) year of experience on board this type of tanker as Senior Officer. 2.11 All Officers must have a good knowledge of English language and a common language must be established and used by the whole vessel s crew. 2.12 The vessel must be equipped with portable instruments capable to measure toxic gases, certified for use in air and/or in an inerted atmosphere. 2.13 The ship provided with a cargo pump-room must have this room served by a fixed system and relative alarms for the monitoring of dangerous gases. 2.14 The vessel must be fitted with a fixed fire detection and alarm system to protect the engine room and accommodation. 2.15 The ship must be fitted with a Class approved loading computer which includes provisions for damage stability calculations. 2.16 The ship provided with a cargo pump-room, must have this room served by a bilge pumping system operated outside the pump-room. 2.17 The ship must be fitted with a fixed spill containment around all the hydraulic machineries on the weather deck. 2.18 The Operator s procedures must include instructions for the sampling and control of the segregated ballast on each occasion before being discharged. The results of such control must be duly recorded. 2.19 All Cargo Overboard lines must be provided with a blind flange or, if not feasible, with a double segregation valve. 2.20 Any vessel built with lines having the segregation ballast valves and/or blinded off before crossing the tanks containing bunkers, must be left with these tanks at a bunker s level lower than the crossing ballast lines. 2.21 The vessel chartered by and/or on behalf of SARAS and/or transporting a SARAS cargo having a flash point lower than 60 C, including the gasoil, must have an efficient plant of inert gas and must carry out the whole voyage with her cargo tanks inerted. vetting.msc.rev.2 pag.8 17/12/2014

2.22 In the event that a vessel will carry more than a single product, an adequate segregation through the use of double segregation valves or equivalent means, must be guaranteed on board. 2.23 The ship must have a remote gauging system able to control levels and temperature of the cargo tanks. 2.24 The ship must be provided with vapour locks, calibrated and certified by a recognized cargo inspection organization, enabling the measurement and sampling of the cargo on board. 2.25 The vessel must be provided with sufficient portable tapes to gauge cargo tanks, used as secondary means. Vessel, at least, must be provided with a portable tape for each product handled simultaneously, plus one (1) as spare. These portable tapes must be in a good working status and calibrated/certified annually by an accredited company. 2.26 The vessel must be fitted with a suitable sampling point placed outboard to the valve of each manifold. 2.27 The ship must be equipped with two (2) level alarms for each cargo tank and slops. The high-level alarm adjusted to 95% of the capacity of the tank and the overfill level alarm adjusted to 98% of the capacity of the tank. The overfill alarm system must be independent of the main gauge system and of the high level alarm. On board of chemical and gas tankers, even the high level alarm must be independent of the main gauging system. 2.28 The ship provided with a cargo pump-room equipped with centrifugal pumps, must have such equipments provided with a pump casing and bearings high temperature alarms, with an automatic emergency stopping device preferably controlled by such alarms. 2.29 The vessel with stainless steel cargo tanks shall keep a passivation treatment record book. 2.30 The deck seal, where fitted, must be wet or semidry type. 2.31 All mooring wires must be fitted on self-stowing winches with split drums. 2.32 The vessel must be equipped with a flying gangway of adequate length, that can be positioned in the proximity of the cargo manifolds. vetting.msc.rev.2 pag.9 17/12/2014

2.33 The vessel certified for Unattended Machinery Space (UMS) operation and operating in that way, must be equipped with an operating Dead Man alarm system. 2.34 The vessel must be equipped with a sufficient numbers of portable radios VHF/UHF intrinsically safe. At least two (2) of them must be given in permanent custody of the Engine s crew. 3 Additional Safety Criteria 3.1 SARAS provides to inspect twice a year any vessel with a time charter contract and once a year every vessel with a Contract of Affreightment (CoA). 3.2 Operators of time chartered vessels or with a CoA agreement, are requested to ensure the availability in the OCIMF database of a Tanker Management and Self Assessment (TMSA) report, updated within the last twelve (12) months. 3.3 SARAS reserves the right to control the Operator s TMSA of chartered vessels, directly at their offices. 3.4 The consumption of beverages with an high alcoholic content is not allowed on board. 3.5 On board Officers composed by maximum three (3) different nationalities. 3.6 The in-rank experience of the Master must be at least twelve (12) months actual sea-time on tanker-type. The Owner/Operator must have provided for him an appropriate training, with particular reference to ship handling on an approved simulator course. 3.7 Senior Deck Officers, must have the following aggregate experience: Master / Chief Officer - aggregate experience. Years with Ship s Operator At least two (2) calendar years Years in rank At least four (4) years of effective sea service Years on tanker-type experience At least six (6) years of effective sea service 3.8 Senior Engine Officers, must have the following aggregate experience: Chief Engineer / 1 st Engineer - aggregate experience. Years with Ship s Operator At least two (2) calendar years Years in rank At least four (4) years of effective sea service Years on tanker-type experience At least six (6) years of effective sea service vetting.msc.rev.2 pag.10 17/12/2014

3.9 The following applies to vessels under time-charter: If the Chief Officer or one of the Engine Senior Officers, has a seniority in rank and/or in tanker-type which is less than one (1) year, such minimum experience shall be required for one of the Junior Officers. 3.10 The Security Officer must have received adequate training and must be certified by the Administration. His position in rank must not be less than that of Second Officer. 3.11 All the statutory training courses required by the STCW, must have been made no later than five (5) years, or be validated by refresher courses. 3.12 At all times, during navigation or at anchor, a proper lookout must be kept on the bridge. Lookout means a qualified seaman in addition to the Officer on watch. 3.13 The vessel Owner/Operator must establish a procedures in way to provide an adequate overlapping period for Deck and Engine Officers. Record of related documentation must be available on board, consisting of handover forms containing verification of all the equipment used by the Officers signing-on. 3.14 The ship must be equipped with the following equipments, working properly: Course Recorder GPS Receivers Two (2) Radars ARPA of which at least one (1) working in X band. Wind speed and direction indicator, with a repeater in cargo control room. Weather Facsimile Receiver. vetting.msc.rev.2 pag.11 17/12/2014