Condition Survey Report

09TH FEBRUARY 2011

Attendance:

This is to certify that a Superficial Condition Survey of ----------- was carried out 09th
February 2010 of all accessible parts of vessel as she lay afloat at anchorage. Below is
the report of inspection.

Brief Description:

The ------------ is a single screw motor vessel of BULK CARRIER design, single Decker
with a soft nose stem with a bulbous bow and a transom stern, of all welded
construction with longitudinal and transom framings. The machinery and the
accommodation are located aft with all the cargo holds at forward of the
accommodation superstructure. The vessel was built in 1979 at Helistone In
Commrciao Helice Shipyard with class notation A 2 C.There are seven (7) cargo holds
fitted, each served by hatchway. All hatch covers are of steel construction Macgregor
wire pull operated type.

Principal Particulars:

Name of Vessel ---------------------

Port of Registry ----------------------

Date of Build 19 7 9

Length Overall 193.84 m

Breadth - Moulded 27.6 m

Depth 14.8 m

Gross Tonnage 22174

Net Tonnage 13442

Deadweight (Summer) 37938.700 M/T

Draught - Summer 10.935 m

Light Displacement Weight 9386 T

General Condition Assessment

External hull condition on port and starboard side noted having moderate to
heavily rust however no serious damage or indentation noted above water line.

The superstructure noted structurally sound and in fair condition.

The main deck plating found heavily rusted.

The hatch covers noted heavily rusted, frozen as well as distorted and not
sitting properly with large gaps visible. The hatch covers in current condition
not suitable for ocean voyage and require repairs to make them water tight
alternately hatches needed to be sealed as per recommendation of warranty
surveyor and class.

The forecastle deck also heavily rusted and both port and starboard windlasses
in poor condition with brake bands wasted.

All vents on deck found substantially wasted and would require repairs for
voyage even under towage to prevent flooding of vessel tanks/holds

The deck cranes 1-4 also noted in poor condition. Crane no 3 & 4 reported
damaged and not working.

The aft mooring winches also noted in very poor state and port side winch
found jammed and not working.

The general condition of engine room noted very poor and several items on
main and auxiliary machinery found missing as removed by present owners for
other fleet vessel. The main missing items noted:

- All fuel injectors of main engine missing/being removed

- Piston cooling telescopic gland parts missing.
- Main engine scavenge blower missing.
- Main air compressor (fwd) missing and crew working to remove other
compressor as well on owner’s instructions.
- Auxiliary engine no 3 not existing as well as crew removing auxiliary
engine no 2 as per owners instruction.
- Almost all spares being taken off the ship as per owners instructions.
- Main boiler completes burner equipment missing.
- General service pump missing

On bridge almost all navigational and communication equipment out of order

or missing includes both radars whose scanners were lying in wheel house.
GMDSS equipment out of order.
SARTS missing
AIS missing
Echo sounder missing
Both life rafts due for repairs and servicing as expired.
Life boats condition very poor and most inner equipment missing.
Immersion suits and most TPAS missing

Conclusion and Remarks:

The vessel in her present condition can not sail under own power until all
missing items supplied/installed and tested. This shall be very costly and long
work involving procurement of missing machinery from suppliers and finding
long lead time for availability. It is estimated that reactivation repairs may
easily cost in excess of us$ 500K. The vessel may have to be brought in for
workshop repairs which shall be additional cost at about $ 5000 per day cost
for berthing the vessel. The repairs may easily consume in excess of three
months time frame.

It is therefore suggested to work vessel for voyage to demolition port under

tow only. This shall also require some preparatory work on load line items on
main deck to prevent water ingress into compartments and holds at sea and all
these openings. Vents, hatch covers etc required to be sealed properly as per
warranty surveyor’s recommendation. Additionally vessel has to be provided
with submersible pumps and electrical power to run them as well as
navigational lights etc.

* Following is checklist of survey.

SURVEY CHECKLIST
1: Vessel Details
Name ----------------------
___________________________________________________________________________
Build details RIO DE JANEIRO SHIPYARD
___________________________________________________________________________
Special Construction Notes BULK CARRIER / ORE CARIER A-2-C
___________________________________________________________________________
LOA 193.84 M
___________________________________________________________________________
Extreme Breadth 27.60 M
___________________________________________________________________________
Depth 14.80 M
___________________________________________________________________________
Summer Draft 10.935 M
___________________________________________________________________________
Summer Displacement 47055
___________________________________________________________________________
Deadweight 37938.7
___________________________________________________________________________
Gross Tonnage / Net Tonnage 22174/13442
___________________________________________________________________________
Class Society OUT OF CLASS
___________________________________________________________________________
Class Notation A-2-C
___________________________________________________________________________
Propulsion Details SULZER 6 RND 76
___________________________________________________________________________
Bunker capacity IFO 2200 CBM MDO 428 CBM

Fuel Consumption ESTIMATED 20 MTPD AT 10 KNOTS MDO 2.5 MTPD

___________________________________________________________________________
Pot Water Capacity 375 CBM
___________________________________________________________________________
Speed 10 KNOTS
___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Special Equipment:

None
2: Structural Integrity
Thickness Gauging Report NOT AVAILABLE ONBOARD
___________________________________________________________________________
Surveying Company NOT VERIFIABLE
___________________________________________________________________________
Class Comments/Actions CLASS SURVEY STATUS NOT ONBOARD
___________________________________________________________________________

___________________________________________________________________________

Surveyor’s Notes:
None
3: Hull Exterior
Draft Forward 5.1 M
Draft Aft 7.3 M

___________________________________________________________________________
Anti Fouling Condition NO ANTI FOULING PAINT REMAIN
___________________________________________________________________________
Boot Topping Condition RUSTY
___________________________________________________________________________
Main Hull Coating Condition RUSTY
___________________________________________________________________________
Plating Condition POOR
___________________________________________________________________________

Surveyor’s Notes:
NO SERIOUS DAMAGE FOUND ON VISIBLE HULL ABOVE WATER AND CONDITION SUITABLE
FOR TOWAGE AFTER ASCERTAINING UNDER WATER HULL CONDITION BY DOING AN UNDER
WATER EXAMINATION.
4: Cargo Hold Condition
Coating Type N/A
Coating Extent N/A
___________________________________________________________________________
Coating Condition NO COATING VISIBLE
___________________________________________________________________________
Access Ways POOR
___________________________________________________________________________
Internal Members POOR
___________________________________________________________________________
Plating POOR
___________________________________________________________________________
Pipelines POOR
___________________________________________________________________________
___________________________________________________________________________

Surveyor’s Notes:
1. CAGO HOLD NO 7 SEEN INTERNALLY UNDER CARGO LIGHT AS ALL HATCH COVERS
WERE IN SEIZED CONDITION.
5: Ship Husbandry

A B C D E See Note Reference

Planned Maintenance System X
___________________________________________________________________________
A B C D E
Planned Maintenance
Implementation
___________________________________________________________________________
A B C D E
Maintenance Schedules
___________________________________________________________________________
A B C D E
Data Management
___________________________________________________________________________
A B C D E
Management Support
___________________________________________________________________________

Surveyor’s Notes: NO PMS DOCUMENTATION ONBOARD

A: VERY GOOD SUPERIOR CONDITION

B: GOOD CONDITION ABOVE AVERAGE
C: SATISFACTORY CONDITION AVERAGE
D: UNSATISFACTORY CONDITION BELOW AVERAGE
E: UN EXAMINED , COULD NOT BE DETERMINED
6: Maintenance
Date / Comment
Last Dry Dock N/A
___________________________________________________________________________
Next Special Due N/A
___________________________________________________________________________
Outstanding Class Conditions CLASS STATUS NOT AVILABLE
___________________________________________________________________________
Outstanding Class Memoranda N/A
___________________________________________________________________________
Megger Tests NO RECORD SIGHTED ONBOARD
___________________________________________________________________________
Lube Oil Analysis Records NOT AVAILABLE ONBOARD
___________________________________________________________________________
Winch / Windlass Brake Test NO RECORD ONBOARD
___________________________________________________________________________
Lifting Equipment Annual N/A
___________________________________________________________________________
Lifting Equipment Load Test N/A
___________________________________________________________________________
Fire Fighting Equipment PARTLY ONBOARD
___________________________________________________________________________
Life Saving Equipment PARTLY ONBOARD
___________________________________________________________________________
Fire Detection Equipment POOR
___________________________________________________________________________
7: Main Deck & Exterior
A B C D E See Note Reference
Protective Coating
Non existing
_________________________________________________________________________
A B C D E
Deck Plating
Poor condition
___________________________________________________________________________
A B C D E
Handrails / Bulwarks
Poor
___________________________________________________________________________
A B C D E
Ventilators
Poor
___________________________________________________________________________
A B C D E
Windlass
Poor
___________________________________________________________________________
A B C D E
Anchor chains
Poor
___________________________________________________________________________
A B C D E
Anchors
Poor
___________________________________________________________________________
A B C D E
Capstans / Mooring Winches
Poor
___________________________________________________________________________
A B C D E
Cranes
Poor
_________________________________________________________________________
A B C D E
Water / Weather Tight Doors
Poor

A B C D E
Masts / Rigging
Poor

A B C D E
Access Ladders etc
Poor
_______________________________________________________________________

Surveyor’s Notes:
ALL ABOVE IN POOR CONDITION

A: VERY GOOD – SUPERIOR CONDITION

B: GOOD – CONDITION ABOVE AVERAGE
C: SATISFACTORY – CONDITION
D: UNSATISFACTORY – CONDITION POOR
E: UN EXAMINED – COULD NOT BE DETERMONED
8: Accommodation
___________________________________________________________________________
Floor Coverings FAIR TO SATISFACTORY
___________________________________________________________________________
Bulkheads SATISFACTORY
___________________________________________________________________________
Equipment Lockers POOR
___________________________________________________________________________
Light / Electrical Fittings CONDITION AVERAGE
___________________________________________________________________________
Cabin Fixtures and Fittings AVERAGE
___________________________________________________________________________
Galley Equipment AVERAGE
___________________________________________________________________________
Public Areas AVERAGE
___________________________________________________________________________

Surveyor’s Notes:
1. Lack of maintenance and cleanliness.
9: Engine Room and Machinery Spaces
Engine Room & Machinery Spaces
Main Engine Type SULZER 6 RND 76
Boiler Type OIL FIRED BOILER
___________________________________________________________________________
A B C D E See Note Reference
Main Engine X
Not complete
___________________________________________________________________________
A B C D E
Turbocharger
Poor
___________________________________________________________________________
A B C D E
Boiler
Burner missing
___________________________________________________________________________
A B C D E
Shaft Generator
Not fitted
___________________________________________________________________________
A B C D E
Auxiliary Engine 1 X
Poor
___________________________________________________________________________
A B C D E
Auxiliary Engine 2
Under removal
___________________________________________________________________________
A B C D E
Harbor Generator
Not fitted
___________________________________________________________________________
A B C D E
Deck Generator

___________________________________________________________________________
A B C D E
Ballast Pump x

poor
A B C D E
Bilge Pump
poor A B C D E
Oil Purifier
Poor
___________________________________________________________________________
A B C D E
Oily Water Separator
Poor
___________________________________________________________________________
A B C D E
Air Compressor
One missing other under removal
___________________________________________________________________________
A B C D E
Fridge Compressor
Poor
___________________________________________________________________________
A B C D E
A/C Units

Poor
___________________________________________________________________________
A B C D E
x
___________________________________________________________________________
A B C D E
Alternators
Poor
___________________________________________________________________________
A B C D E
Switch Boards
Poor
___________________________________________________________________________
A B C D E
Electrical Cabling
Poor
___________________________________________________________________________
A B C D E
Water Pipes / Valves
Poor

A B C D E
Steering Gear
Ok
___________________________________________________________________________
A B C D E
Tail Shaft
ok

A B C D E
Control Room
No control room
___________________________________________________________________________
A B C D E
Engine Room
poor
A B C D E
Workshop
x
Poor
___________________________________________________________________________
A B C D E
Sea Valves
Poor
___________________________________________________________________________
Surveyor’s Notes: ALL MACHINERY CONDITION POOR WITH MISSING MACHINERY AS PER
REPORT

1. General condition of engine room poor.

A: VERY GOOD – SUPERIOR CONDITION

B: GOOD – CONDITION ABOVE AVERAGE
C: SATISFACTORY – CONDITION AVERAGE
D: UNSATISFACTORY – CONDITION BELOW AVERAGE
E: UN EXAMINED – COULD NOT BE DETERMONED

10: Safety Equipment

A B C D E See Note Reference
Portable Fire Extinguishers
___________________________________________________________________________
A B C D E
Fire Line system
___________________________________________________________________________
A B C D E
Fire fighting appliances
___________________________________________________________________________
A B C D E
Fire Detection System
___________________________________________________________________________
A B C D E
Hoses / Hydrants
___________________________________________________________________________
A B C D E
Lifeboats

A B C D E
Life rafts
___________________________________________________________________________
A B C D E
EPIRB / SART
___________________________________________________________________________
A B C D E
Pyrotechnics
___________________________________________________________________________
A B C D E
Lifejackets
___________________________________________________________________________
A B C D E
Emersion Suits

A B C D E
CBA Sets
___________________________________________________________________________

Surveyor's Note: ALL ABOVE EQUIPMENT UNSATISFACTORY CONDITION

A: VERY GOOD – SUPERIOR CONDITION

B: GOOD – CONDITION ABOVE AVERAGE
C: SATISFACTORY – CONDITION AVERAGE
D: UNSATISFACTORY – CONDITION BELOW AVERAGE
E: UN EXAMINED – COULD NOT BE DETERMONED
11: Bridge Navigation, Cargo & Office Equipment
A B C D E See Note Reference
Radar 1
OUT OF ORDER SCANNER REMOVED
___________________________________________________________________________
A B C D E
Radar 2
OUT OF ORDER SCANNER REMOVED
___________________________________________________________________________
A B C D E
GPS 1
MISSING
___________________________________________________________________________
A B C D E
GPS 2
MISSING
___________________________________________________________________________
A B C D E
Gyro
POOR
___________________________________________________________________________
A B C D E
Magnetic Compass
POOR
___________________________________________________________________________

A B C D E

x
Repeaters
POOR
___________________________________________________________________________
A B C D E
AIS
NOT FITTED
___________________________________________________________________________
A B C D E
Steering Equipment X

OK

A B C D E
Control Panels
POOR
___________________________________________________________________________
A B C D E
Communication Equipment
OUT OF ORDER
A B C D E
Stability Computer

NOT FITTED

A B C D E
Cargo Monitoring Equipment
NOT AVAILABLE

A B C D E
Navigation Computer
NOT FITTED
___________________________________________________________________________
A B C D E
Office Computer
POOR
___________________________________________________________________________
A B C D E
Lights, Shapes, Sound
Signaling Equipment
MISSING
____________________________________________________________________
A B C D E
Echosounder
MISSING
___________________________________________________________________________

Surveyor’s Note: ALL EQUIMENT CONDITION POOR AND UNSATISFACTORY

A: VERY GOOD – SUPERIOR CONDITION

B: GOOD – CONDITION ABOVE AVERAGE
C: SATISFACTORY – CONDITION AVERAGE
D: UNSATISFACTORY – CONDITION BELOW AVERAGE
E: UN EXAMINED – COULD NOT BE DETERMONED

12: Certificates: Issued Validity

1. Class EXPIRED
2. Safety Construction EXPIRED
3. Safety Equipment EXPIRED
4. Load Line EXPIRED
5. safety radio EXPIRED
6. IOPP EXPIRED
13: REMARKS AND CONCLUSION

___________________________________________________________________________

The vessel in general is in very poor state as has been laid up for years with no maintenance
and substantial removals apparently by owners .
The vessel can not be reactivated without connecting missing/removed machinery and
preparing her to safe standard required as surely on change on ownership vessel shall be
subject of expanded inspection by port state control and vessel shall not be allowed to sail
without proper repairs and reactivation and only viable option shall be to tow vessel to
demolition port.