Introduction

DORMAC New Build is a Strategic Business Unit created to exploit the demand from international ship owners for small tonnage vessels, specifically double skinned bunker barges. This opportunity is the result of an increase in ship building activity internationally which is exceeding available capacity. Subsequently the majority of ship building yards are turning away orders for building smaller vessels.

DORMAC (New) Build can construct complete vessels or modify/convert existing vessels to a client’s specification and design or from specification only, utilizing external design capability.

Construction projects are currently managed by a dedicated team comprising engineers, planners, estimators and quality controllers, utilizing external fabricating skills and an extensive network of suppliers and manufacturers to the shipbuilding industry.

New Building

History. Although DORMAC has established itself as the leading supplier of ship repair services to the international shipping industry, in Southern Africa, the Company has a long and distinguished track record of ship building. Since the formation of the company in 1903, 107 vessels/hulls have been constructed. The latest new build project undertaken for SMIT Amandla Marine, the construction of a steel hulled, self-propelled inland bunker fuel oil tanker of 4800 (cargo) DWT, is designated Hull 108.

Current Projects. The construction of the steel hulled, self-propelled inland bunker fuel oil tanker for SMIT Amandla Marine is nearing completion. The build start date was November 2006 with completion scheduled for November 2007. DORMAC is responsible for all steel fabrication and erection, which amounts to approximately 800 tonnes, as well as the project management role of the fit-out of the vessel. Comparison with similar build projects elsewhere in the world has shown that DORMAC is extremely competitive in terms of build duration, cost and quality.

With this project DORMAC Build has re-established itself as a serious contender in the international ship building market and has received a number of enquiries for similar vessels as a result.

The future. DORMAC has managed to establish itself as a very competent and reliable supplier of new build vessels, based on a solid track record and through a strong commitment, throughout all levels in the Company, to quality and performance. The Company believes this approach differentiates it from competitors and will make it a preferred supplier of small tonnage marine platforms, internationally. Negotiations are currently at an advanced stage for the construction of additional bunker barges and DORMAC is extremely optimistic about the future of this market.

Conversions

Planning is currently in progress for the double skinning of the SMIT Amandla Marine bunker barge Pentow Energy which will be converted by DORMAC early in 2008. The conversion of the Pentow Energy will be followed by the conversion of the SMIT Amandla Marine bunker barge MV Bongani to a double hull configuration as well. DORMAC is well positioned to assist bunker barge owners and operators to meet the new requirements set for this class of vessel by the oil majors and regulatory authorities and significant interest has been shown by owners and operators in converting existing vessels as an alternative to the option of new build.

Quality

DORMAC is a South African Bureau of Standards accredited ISO 9001 Company. The ISO 9001 Quality System is entrenched in fabrication and erection practices which is maintained and documented by a highly skilled and experienced team of Quality Control technicians. Non Destructive Testing (NDT) methods employed to evaluate the quality of welding include Dye Penetrant, Magnetic Particle, Ultra-Sound and X-ray. NDT of welding is carried out by Dormac QC and external third party technicians. Close co-operation with Classification Society Surveyors ensures that fabrication and erection is carried out in accordance with and meets international standards for New Building and Conversions (such as IACS Standard).

In the interest of productivity and quality, only the latest welding technology and practices are applied. All welders employed on the project are coded for specific fabrication applications and performance are monitored and corrected continuously.

SHE – Safety, Health & Environment

Ship building is by its nature a hazardous activity. In order to create and maintain a safe working environment, DORMAC Build employs a committed team of Safety Professionals, familiar with relevant occupational health and safety legislation. All employees, whether permanent or contract are familiarized with the hazards of their working environment and applicable safety requirements by means of a Safety Induction Course, before being allowed on site. Personal Protective Equipment is issued to each employee and the proper use of this equipment is monitored continuously.

SHE issues are raised and recorded at all levels in the company, from the shop floor to the Boardroom and DORMAC is justifiably proud of its record in this regard.

Facilities, infrastructure

DORMAC Build has access to the following infrastructure and facilities:

• Two slipways of 125m x 36m and 75m x 21m, respectively
• Extensive grillage assembly area
• Slipways are serviced by overhead gantry cranes with Safe Working Load (SWL) of 15 to 120 tonnes
• An outfitting/repair quay which accommodates a 160m long crane with reach of 50m.
• Modern machining and specialist fabrication workshops