No.

14233M/HCM
Page 1

SURVEY REPORT No. : 14233M/HCM

Date : 17/04/2008

This is to certify that we, the undersigned surveyor(s) of the Pacific Inspection Joint
Stock Company (PICO) did, at the request of

SPICA SERVICES
Ref. No. SOP/002/07/VN/LHB

for and on behalf of

THE SHIPOWNER MUTUAL PROTECTION AND INDENITY

ASSOCIATION.
on 07/03/2007 and subsequent days, attended on board the anchor handling tug supply:

ARAFURA 2000
1,476 GROSS REGISTERED TONS OF SINGAPORE

and also boarded the vessel:

M/V HAILONG 02
1,162 GROSS REGISTERED TONS OF VIETNAM

to interview the Masters in respect of the incident reportedly sustained on the fair way of
PTSC port; carry out an investigation to ascertain nature, cause and extent of the damages to
the above said vessels. Hereunder are our findings:

1. PARTICIPANTS:

Participants On behalf of Date

The Shipowner Mutual Protection

Mr. Bui Thai Chinh
And Indemnity Association / Owners
Mr. Tran Nam Tien of the tug Arafura 2000
07/03/2007 and
Mr. Nguyen Anh Tuan subsequent days
Owners of M/v Hailong 02
Capt. Pham Van Tham

Capt. Jeheskiet Pangloan Owner of Ahts Arafura 2000

2. OUTLINE OF INCIDENT:

According to the Masters Statement of Fact, log book, bell book & referring to the
information / declaration from concerned parties, we have learnt that:

- The tug boat Arafura 2000 is an anchor handling tug supply of Havey H.Ward oil
drilling off Vungtau sea. On 03/03/2207 she was scheduled to berth at PTSC berth.

- Hailong 02 is a general cargo carrier, just left dry dock Vung tau ship yard under self
pilotage for destination of Thailand port after 3 months staying at dock for repair and
maintenance.

- On the way inbound, 1555hrs on 03/03/2007 the T/b Arafura 2000 was collided in
way of her starboard side by an out-bound vessel Hailong 02 at position of 10 o23.8N
& 107o04.3E under the fair way of Vietsopetro.

- After collision, T/b Arafura 2000 maneuvered to berth PTSC port, the Hailong 02 turn
back and berthed at Vung tau ship yard.

- No oil pollution and casualty was reported.

3. VESSEL STATUS AND DAMAGE CONDITION:

3.1 AHTS Arafura 2000:

3.1.1 Particulars:

Registered owner : PACIFIC RICHFIELD MARINE PTE.LTD.

Port of registry : SINGAPORE

Official number : 388743

Type : TUG BOAT

Construction : STEEL

Length overall : 61.80 M

Gross / Net tonnage : 1,476 /443

Engine power and type : 1,800HP x 2 / DIESEL

3.1.2 Tug statutory certificate:
All relevant Certificates and documents were sighted and the following
noted:

Item (Certificate/ Document) Date/ Place of Issue Valid until

Certificate of Registry 15/11/2001- SINGAPORE -

Safety Construction Certificate 14/09/2006-INDONESIA 31/07/2011

Safety Radio Certificate 21/08/2006- SINGAPORE 31/07/2011

International Tonnage Certificate 22/02/2001-SINGAPORE -

International Oil Pollution Prevention Certificate 14/09/2006-INDONESIA 31/07/2011

Minimum Safe Manning Document 18/05/2004-SINGAPORE -

Classification Certificate 14/12/2006 31/07/2011

3.1.3 Manning:
The tug Arafura 2000 had a minimum safe manning certificate, issued by Mercantile
Marine Department (MPA Singapore) which indicated that a crew of ten was required.
According to crew list, and number of crew presenting on board at the time of survey,
we considered that the tug was safely manned in accordance with regulation 14 of
Solas 2004.

3.1.4 Navigation equipments of tug Arafura 200:

The navigation equipments of the tug Arafura 2000 consists of two radars, a Global
Positioning System (GPS), AIS, NAVTEX, IMARSAT, Gyro Compass, Standard
Compass, echo sounder etc, which was inspected and found in well operation
condition and in accordance with regulation 19 item 2 (navigational equipment and
systems) of Solas 2004.

3.1.5 Damage to tug Arafura 2000:

- The starboard bulwark, associated stays and part of rescue door ripped off with length of
approx. 16M (from frame No.1 15 to 40).
- Air pipe and sounding pipe of fuel oil, barite, FW, DW on starboard side broken.
- Piping system of cargo, oil, water and manifolds at starboard side were indent, bent.
- Side shell plating in way of phlimsol mark was indent with dimension of 1.5M x 1.5M.
- Rubber tires installed at starboard as fenders was missed.
- Starboard handrail crushed and broken.
* Note:
- The above mentioned damage to vessels structures appeared to be fresh traces and as
consequence of colliding by a hard and heavy object.
- Shell plating under water checked by ABS confirming that no damage to starboard shell
plating was found.

3.2 M/v Hailong 02:

3.2.1 Particulars
Registered owner : HAILONG SHIPPING&TRADING COMPANY LTD.

Port of registry : SAIGON

Type: OTHER CARGO SHIP

Construction: STEEL

Length overall: 72.50M

Breath : 11.20M

Gross / Net tonnage : 1,162 / 737

Engine power and type : 1,600HP / DIESEL

3.2.2 Vessel statutory certificates:

All relevant Certificates and documents were sighted and the following
noted:

Item (Certificate/ Document) Date/ Place of Issue Valid until

Certificate of Registry 12/09/2005-VIETNAM -

Safety Construction Certificate 15/02/2007-VIETNAM 20/05/2007

Safety Equipment Certificate 15/02/2007-VIETNAM 20/05/2007

Safety Radio Certificate 15/02/2007-VIETNAM 20/05/2007

International Tonnage Certificate 19/01/2006-VIETNAM -

International Oil Pollution Prevention Certificate 15/02/2007-VIETNAM 20/05/2007

International Safety Management Certificate 12/09/2005-VIETNAM -

 Item (Certificate/ Document) Date/ Place of Issue Valid until

Classification Certificate 14/07/2005 30/12/2008

3.2.3 Manning:
M/v Hailong 02 had a minimum safe manning certificate, issued by Vietnam
maritime administration which indicated that a crew of twelve was required.
According to crew list and number of crew presenting on board at the time of survey,
we considered that Hailong 02 was safely manned. in accordance with regulation 14
of Solas 2004.

3.2.4 Navigation equipments of M/v Hailong 02:

Master of the Hailong 02 did not allow us to inspect the navigation equipments.
*Note: In case the VHFs of Hailong 02 did not work, it might cause a
misunderstanding in the maneuvering between both vessels

3.2.5 Damage to tug Arafura 2000:

Whole stem plate of the vessel rushed, seriously deformed, torn open from keel plate to
draft mark 5M in way of fore peak tank, affecting to approx. 10 frames from No. 100-
110 of approx 6 M in length. A broken part of bulwark plate of t/b Arafura 2000 still
stuck at contacting point.
* Note: The above mentioned damage to vessels structures appeared to be fresh traces
and appeared as a consequence of colliding with a hard and heavy object.

4. NARRATIVE OF EVENT:
4.1 Events leading to the collision declared by Master of the tug Arafura 2000:
All times is local time on 03/03/2007
- At 1515hrs, pilots embarked and had the con in consultation with the Master of Tug
Arafura 200 to progress upstream to PTSC port. On the bridge there were Master,
duty AB, pilots Nguyen Van Gia on the helm of steering- and pilot Hoang Hong Ky.

- The tug entered the fairway at course of 095 o at a speed of 7 knots on the position of
N10o23.8. L104o03.3.while entering the channel inbound, tugs radar detected a target
of another vessel (Hailong 02) on an outbound route heading of 275 o with speed of
approx. 9.0knots. At the material time, the tug was overtaking a tug towing from her
 starboard side, after passing the pilot altered the course of the tug 20 o to her starboard
side to make it apparent to the vessel Hailong 02.

- With the time of closest point of approach (TCPA) reducing and existing of collision
risk, the pilot made a VHF call to Hailong 02 on channel 16 on three occasions and the
tug Master sound the tug whistle simultaneously but no respond and action from the
Hailong 02.
- With fearing that the tug probably aground and the towing might collide the tug stern
quarter starboard side in case of the tug making further course to starboard side, the
Master ordered to alter course hard to port side.
- Eventually, starboard side of the tug Arafura 2000 was collided by bow of the Hailong
02 at position of N10o23.00 and E107o.04.3 at 1555hrs. Following the collision,
starboard bulwark of the Arafura 2000 was caught to bow of Hailong and latterly the
bulwark was cut off to release both vessels at 1915hrs.
- After that, the tug kept on progressing upstream and berthed at PTSC wharf
at 2025hrs.
- Environmental condition was reported at the time of collision that it was day time. The
visibility was good. The tide was ebbing with a speed of approximately 1knot.
4.2 Events leading to the collision declared by Master of the tug Hailong 02:
All times is local time on 03/03/2007

- At 1520hrs, the Hailong 02 left Vungtau shipyard for out bound after 3 months staying at
dock for repair and maintenance routine.

- At 1535hrs, Master of Hailong 02 observed a tug boat (Arafura 2000) who was on
inbound the fairway of PTSC port with distance of approx. 2-3miles. According to
GPS, speed of the Hailong 02 was estimated approx. 4 knots and tug Arafura 2000
approx. 7 knots. The Master of Hailong 02 made a VHF call to the tug Arafura 2000 on
channel 16 but no respond, then he gave a short sound confirming that the Hailong 02
maintained her course to starboard side but no response.

- At 1550hrs, suddenly the tug Arafura 2000 altered her course to her port side and
crossed to the left side channel where M/v Hailong 02 was maneuvering out bound.
The Master immediately ordered engine stop and then full astern. But finally, the bow
of Hailong 02 collided to starboard side of tug Arafura 2000 at position nearby channel
 buoy No.6 with colliding angle of approx. 70-80 o. Following the collision, bow of
Hailong was caught to starboard bulwark of the Arafura 2000 and latterly the bulwark
was cut off to release both vessels.

- After that, the Hailong 02 turned back and berthed at Vungtau shipyard.

- Environmental condition was reported at the time of collision that it was day time. The
visibility was good..
4.3 Movement leading to the collision:
Sketches of movement leading to the collision were illustrated by of the
tug Arafura 2000, pilots and Master of Hailong 02.

Movement leading to the collision re-sketched by Master

Movement leading to the collision re-sketched by Pilot
of tug Arafura 2000

- Sketches of movement leading to the collision were illustrated by Master of Hailong 02

comparing with movement sketch of tug Arafura 2000:

Movement leading to the collision re-sketched by Master Movement leading to the collision re-sketched by
of Hailong 02 Master of tug Arafura 2000
4.4 Sound signals between tug Arafura 2000 and M/v Hailong 02:
Both vessels declared that the sound signals were given at the stage of observation and
VHF calls were also taken occasionally but they both reported not heard each other in
the period of close approaching.
4.5 Comment:
- According to the above sketches, we found that the there is a conflict between events
and movement leading to the collision sketched by tug Arafura 2000 and M/v Hailong
02. The Master of M/v Hailong 02 insisted the tug Arafura 2000 maneuvering in her
channel due to obstruction of other means in the channel. Whereas, the Master of tug
Arafura 2000 supposed that M/v Hailong 02 was progressing on her fairway,
maneuvering lose to right side channel. In other words Hailong 02 crossed a separation
line of fairway and impeded the passage of tug Arafura 2000.
- Both vessels declared that the sound signals and VHF calls were given at prevail
circumstance but neither of vessels heard or received. Therefore, failure of sound
signals given by both vessels can not adequately explained, despite of intensive
investigation.

5. COLLISION POSITION:
5.1 Collision area:
- The collision area is located on river mouth where is a very large water area, through it
is a fair way for vessel maneuvering with width of approx 170M which is limited by
left and right buoy separation lines.

- According to report of the tug Arafura 2000, the collision point plotted at the time of
collision to be N10o23.08 and E107o04.3.

- The Master of Hailong 02 did not declare and report the collision point

- According to Port authority report, collision point noted at position of N10 o23.00 and
E107o04.3.
 Collision position of N10o23.00 and E107o.04.3 as Collision point plotted N10o23.08 and E107o.04.3
port authority statement. by Master of Arafura 2000

5.2 Comment:
- According collision point of tug Arafura, we noted that the collision point was away
approx. 194M from channel center line on the left side (green light buoy) of the tug
Arafuras course. It meant that at the moment of collision M/v Hailong 02 was not
moving inside the fair way, but along side green light buoy line aprox 194 m
(170m/2) = 111 m and T/b Arafura 2000 altered across in a length about 111 m to
collide while M/v Hailong 02 was not on her heading. It is unreasonable and
impossible to apply the collision point of Arafura 2000.
- According to collision point of port authority, we noted that it had to locate at fishing
stakes on narrow river area of approx 0.4M depth which was quite far, distance of
approx 1,200M fair way from channel center line on the right side channel (red light
buoy) of the tug Arafuras course. It meant that both vessels left the fair way on the
right side /red light buoy line and moved in a length about 1,200 m where they were
unable to reach because of grounding. It is too unreasonable and impossible to apply
the collision point established by port authority. Thus, the conclusion of port authority
is unreasonable for reference and consideration of liabilities.
- As legal formality, events stated in the port authority statement is utilized as concrete
evidence to analyze events leading to the incident as well as to investigate the cause
and failure of involved vessels. In this case, as above comment, the collision point was
incorrectly noted by the port authority, therefore it can not used as events for
supporting investigation. It is the fact that the colliding position is considered as the
most important evidence in the collision accident from which the failure in
tracking/maneuvering of each vessel can be reasoned in the situation that two vessel
was head-on maneuvering in a narrow fairway.
- Consequently, following the conflict between events and movement leading to the
collision sketched by tug Arafura 2000 and M/v Hailong 02 and the incorrect noting
collision point of port authority, the failure of each vessel is unable to verify
adequately and to point out which vessel had crossed channel line separation impeding
to passage of another. But it is the fact that the collision between tug Arafura 2000 and
Hailong 02 occurred on the fairway, therefore root cause of the collision is only
supposed as consequence of improper look out action of both vessels.

6. REPAIR COST ESTIMATION:

6.1 Repair cost of tug Arafura 2000:

Basing on our finding, we estimate cost of repair of T/b Arafura: approximately
USD75,000 with time for repair around 7days, detail:
Dimension (m)
No Steel (kg)/ Estimated
Repair items Quant. Wide(m
. materials cost (USD)
Long (m) ) Thick (m)
1 Bulwark plate 1 16.20 1.85 0.014 3,293.70 19,762.20
2 Stay 12 1.63 0.35 0.012 644.89 3,869.34
3 Side plate 1 10.80 1.00 0.012 1,017.36 6,104.16
4 Stays 6 2.30 0.90 0.014 1,364.96 8,189.76
5 Top pipe 1 17.50 1.10 0.012 1,813.35 10,880.10
Air pipe +
1,271.70
6 sounding pipe 9 1.00 0.25 0.012 211.95
7 cargo pipe 5 14.50 0.50 0.012 3,414.75 20,488.50
8 Shell plating Fair up 2,000.00
TOTAL ESTIMATED COST OF REPAIR 72,565.76
VAT (5%) 3,628.29
Deduct cost of salvage of scrap steels (Lumsum) 1,470.12
FINAL BALANCE 74,723.93

6.2 Repair cost and claim of m/v Hailong 02:

6.2.1 Claim and adjustment for cost of repair:
The claim amount for cost of repair mounted at rate of 124,503USD. Basing on our
supervision, we noted that claimed repair cost included items not involved to the
collision, therefore they were rejected in our estimation and adjustment. Total repair
cost is estimated and adjusted at region of 83,755USD, for detail please refer appendix
attached.
6.2.2 Claim and adjustment for loss of earning:
- Claim amount for loss of earning : 115days x 2,810USD/day = 323,150USD
- Claim documents: M/V Hailong 02 did not provide documents/ invoice/ break-down
expenses.
- Comments: Time spending for repair was 85 days including of repair items which are
not involved to consequence of the collision nor delay/low rate process caused by the
repairer themselves. But the actual time for repairing items involved the collision is
unable to separate due to combining work performance during repair process.
Therefore, the necessary time for the actual repair should be calculated by actual value
repair comparing with claimed amount (83,755/124,503=0.67%). Accordingly,
necessary time for repair estimates to be 57 days (0.67% x 85days).
The break down loss of earning is not provided. However, we noted that chatter fee
(time chatter) with local vessels having same size and capacity is in range of 800USD-
1,200USD/day, average value obtains to be 1,000USD/day. Accordingly, the
acceptable loss causing by business interruption of M/v Hailong as following:
- Time for waiting settlement and dry dock: 30days x 1,000USD/day = 30,000USD
- Actual time for repair: 57days x 1,000USD/day = 57,000USD
- Total: 87,000USD
6.2.3 Claim for arising expense:
Claim for arising expenses within 115days mounted at rate of 5,754USD (45USD x
115 days). Similarly, this expense should be based on necessary time for repairing the
involved items. A reasonable arising expense should be at region of 3,915USD
(45USD x 87 days).
6.2.4 Adjustment summary:

No. Claim item Claimed amount Adjusted amount

(USD) (USD)
1 Repair cost 124,503 83,755
2 Loss of earning 323,150 87,000
3 Arising expense 5,754 3,915
Total 453,407 174,670

7. CAUSE OF COLLISION:
 Basing on our investigation and findings, we are of the opinion that it is reasonable to
consider the poor look-out of both vessels to be the root cause leading to the collision
between the tug Arafura 2000 and the vessel Hailong 02 on the fairway of PSTC port
on 03/03/2007.
This report is a confidential report for the information only of companys solicitors prepared for
purpose of obtaining professional advice in proceedings pending, threatened or anticipated
*Enclosure: Director
- Attachment 1: One set of photo
- Attachment.2: Appendix
- Attachment 3: Documents of Tug Arafura 2000
- Attachment 4: Documents of M/V Hailong 02

Le Van Giang