Summary of Working Paper No. 95-1998

III.07.5: Using the INSROP Phase 1 Data in a Transport Evaluation Process

By Anders Backlund, Jari Kivelä of Kvaerner Masa Yards Technology of Helsinki with Edgar Gold of the Oceans Institute of Canada, Halifax NS

During Phase 1 of INSROP, a great number of reports has been produced covering a wide range of topics in the fields of natural conditions, environmental questions, international trade and law and politics.

In order to evaluate how well the INSROP Phase 1 data fulfill the project goals, the results of different INSROP Phase 1 reports have been evaluated in this Study. A role of one user, a Western ship owner and also the interests of an insurer supposed to insure the Western shipping company's vessel, have been considered.

Through a case-study, using the NSR in a hypothetical commercial project, the Study evaluates the information provided by the INSROP reports. The Case Study was identified as a specific cargo, nickel concentrate from the mines in the Norilsk area, to be exported over the port of Dudinka on the Jenisei River and carried by ice-fitted vessels to Rotterdam. This hypothetical project was broken down into six basic topics:

1) Investments:

operating philosophy

requirements for vessels

vessel size

number of vessels required

price of new building

available vessels fulfilling the requirements

charter rate of an existing vessel

2) Operating costs:

fuel costs

manning costs + regulations

port fees

other infrastructural fees

insurance costs

3) Income / competition

4) Operating risks:

accidents

ice damage

icebreaker availability

down time

5) Legal requirements and restrictions

6) Marine insurance coverage factors

hull and machinery insurance (H&M)

cargo insurance

protection and indemnity insurance (P&I)

oil pollution coverage (for loaded tankers)

In the report, references to INSROP Phase 1 reports are made, where a particular subject has been dealt with.

A brief conclusion of the usefulness of the INSROP Phase 1 reports is presented in the end of the report. The conclusion also includes recommendations for future areas of research.

NOTE! Only INSROP Working Papers (IWP) published before 15.9.96 and discussion papers available before the same date have been considered in the study.