Boskalis_Annual_Report_2016

REPORT OF THE BOARD OF MANAGEMENT ANNUAL REPORT 2016 – BOSKALIS 46 divisions. The two main subjects of the program are: personal leadership and project management. FLEET DEVELOPMENTS Boskalis makes targeted investments in the newbuild and renovation of vessels that are important to retaining or expanding its strong market position. At the same time obsolete vessels or those with limited prospects are taken out of service. As a result of the fleet rationalization program launched in mid-2016, that will be implemented over the course of two years, 24 vessels will be dismantled, sold or laid-up. The average age of the vessels earmarked for dismantling or sale is in excess of 30 years. In 2016 the following developments took place: Dredging ‚ In the first half of 2016 the world’s biggest backhoe dredger Magnor was taken into service. With a total capacity of 4,100 kW the Magnor’s bucket is capable of lifting up to 67,000 kilograms of dredged material. ‚ The newbuild water injection dredger Terra Plana joined the fleet in April 2016. The vessel is being deployed on projects such as port maintenance work. ‚ The new mega cutter Helios will be taken into service in 2017. With a total installed capacity of 23,700 kW and a pumping capacity of 15,600 kW, the Helios will be deployed on the Duqm port development project in Oman. ‚ 2016 saw the environmentally responsible dismantling of the 2,500 m 3 trailing suction hopper dredger Coronaut, 3,500 m 3 trailing suction hopper dredger Beachway and cutter suction dredger Jokra. The cutter suction dredger Orion was sold. Offshore ‚ In 2016 the decision was taken to convert the Dockwise heavy transport vessel Finesse into a new transport and installation crane vessel. The vessel will be equipped with a rotating mast crane with a capacity of 3,000 tons, dynamic positioning (DP2) and accommodation for up to 150 people. The commissioning of the vessel is expected in late 2017. For more information please refer to pages 28 and 29. ‚ The conversion of the 21,000 ton oceangoing barge Giant 7 into a 600 ton crane vessel with accommodation for around 80 people was concluded early 2016. The Giant 7 was deployed on the Wikinger Offshore Windfarm project. ‚ Like its sister vessel Ndurance the multifunctional Ndeavor was fitted out as a fully-fledged cable-laying vessel in 2016 and deployed on projects contracted by Boskalis subsidiary VBMS. ‚ In early 2017 the offshore support vessel Smit Orca, the floating sheerleg crane Taklift 6 and the heavy transport vessel Tern were taken out of service to be dismantled. The heavy transport vessel Super Servant 3 was sold. RESEARCH AND DEVELOPMENT INNOVATION Boskalis will continue to innovate and look for more efficient working methods. Innovation is an important way for us to continue to set ourselves apart. In the past year we worked on

many innovations in various areas and applied for patents for no fewer than twelve innovations. A number of the patents relate to the development of methods for smarter dredging and more efficient maintenance. Examples include combining vessel operating data with maintenance databases, and using the results to fine-tune our maintenance programs and optimize equipment availability. A pilot project conducted with IHC and Wärtsilä is showing promising results with regard to reducing the cost of maintaining our vessels and optimizing the performance, availability and safety of the fleet. Another innovation in the field of dredging concerns monitoring the wear and tear on our pipelines, which will make our planning schedules and operations more reliable. LNG DUAL-FUEL HARBOR TUGS With a large global fleet, Boskalis is constantly on the lookout for ways to reduce dependence on oil and reduce emissions. Boskalis contributes towards environmentally-friendly solutions for emissions with innovations in equipment, working methods, energy saving and fuels. Our extensive R&D program enables us to anticipate changes in national and international legislation and creates the right conditions for rapid implementation. In 2016 Boskalis joint ventures Keppel Smit Towage and Maju Maritime ordered two innovative LNG dual-fuel harbor tugs. This marks a breakthrough in realizing clean, environmentally-friendly harbor towage services in the port of Singapore as the tugs will run entirely on LNG. In light of this, the Maritime and Port Authority of Singapore awarded a grant under its LNG Bunkering Pilot Programme. The 65 ton bollard pull ASD tugs will be built by Keppel Singmarine in Singapore according to the shipyard’s proprietary design and are expected to be delivered in 2018. INNOVATION ACCELERATOR One initiative developed further in 2016 was Boskalis’ participation in the Port Innovation Accelerator (PortXL). Boskalis is taking part in this initiative together with the Port of Rotterdam Authority, various internationally operating companies and the Erasmus University Centre for Entrepreneurship. The basic principle is to be in contact with young, dynamic companies and to streamline the ideas of start-ups looking for effective ways of bringing breakthrough technologies to the market. One innovation to emerge from this initiative is the incorporation of Virtual Reality (VR) into our design processes. An example of this is the design of the layout of the bridge of the mega cutter Helios. Thanks to VR technology the bridge could be designed in complete accordance with the wishes of the crew. The result is a tailor-made solution that contributes to the vessel’s workability. Following on from this we are now also working with a start-up on examining the possibilities of using VR technology to develop training material. CONTRIBUTING TO THE CIRCULAR ECONOMY In 2015 we teamed up with HVC, the largest non-commercial waste collection company in the Netherlands, to build the first large-scale soil-washing plant in the world for washing incinerator bottom ash, the residue left after the incineration of domestic waste in Waste-to- Energy plants. Over the past few years, successful pilots have allowed us to demonstrate that clean bottom ash can be used as