SHIP MANAGEMENT

INTERNATIONAL MANAGEMENT CODE FOR THE SAFE OPERATION OF SHIPS AND FOR POLLUTION PREVENTION (ISM CODE)

1.1.1 International Safety Management (ISM) Code means the International Management Code for the Safe Operation of Ships and for Pollution Prevention as adopted by the Assembly, as may be amended by the Organization.1.1.2 Company means the owner of the ship or any other organization or person such as the manager, or the bareboat charterer, who has assumed the responsibility for operation of the ship from the shipowner and who, on assuming such responsibility, has agreed to take over all the duties and responsibility imposed by the Code.1.1.3 Administration means the Government of the State whose flag the ship is entitled to fly.1.1.4 Safety Management System means a structured and documented system enabling Company personnel to implement effectively the Company safety and environmental protection policy.1.1.5 Document of Compliance means a document issued to a Company which complies with the requirements of this Code.1.1.6 Safety Management Certificate means a document issued to a ship which signifies that the Company and its shipboard management operate in accordance with the approved safety management system.1.1.7 Objective evidence means quantitative or qualitative information, records or statements of fact pertaining of safety or to the existence and implementation of a safety management system element, which is based on observation, measurement or test and which can be verified.1.1.8 Observation means a statement of fact made during a safety management audit and substantiated by objective evidence.1.1.9 Non-conformity means an observed situation where objective evidence indicates the non-fulfillment of a specified requirement.1.1.10 Major non-conformity means an identifiable deviation that poses a serious threat to the safety of personnel or the ship or a serious risk to the environment that requires immediate corrective action or the lack of effective and systematic implementation of a requirement of this Code.1.1.11 Anniversary date means the day and month of each year that corresponds to the date of expiry of the relevant document or certificate.1.1.12 Convention means the International Convention for the Safety of Life at Sea, 1974 as amended.1.2 Objectives1.2.1 The objectives of the Code are to ensure safety at sea, prevention of human injury or loss of life, and avoidance of damage to the environment, in particular to the marine environment, and to property.1.2.2 Safety-management objectives of the Company should, inter alia:1 provide for safe practices in ship operation and a safe working environment;2 assess all identified risks to its ships, personnel and the environment and establish appropriate safeguards; and3 continuously improve safety-management skills of personnel ashore and aboard ships, including preparing for emergencies related both to safety and environmental protection.1.2.3 The safety-management system should ensure:1 compliance with mandatory rules and regulations; and2 that applicable codes, guidelines and standards recommended by the Organization, Administrations, classification societies and maritime industry organizations are taken into account.1.3 ApplicationThe requirements of this Code may be applied to all ships.1.4 Functional requirements for a safety-management systemEvery Company should develop, implement and maintain a safety management system (SMS) which includes the following functional requirements:a. A safety and environmental-protection policy;b. Instructions and procedures to ensure safe operation of ships and protection of the environment in compliance with relevant international and flag State legislation;c. Defined levels of authority and lines of communication between, and amongst, shore and shipboard personnel;d. Procedures for reporting accidents and non- conformities with the provisions of this Code;e. Procedures to prepare for and respond to emergency situations ;andf. Procedures for internal audits and management reviews.2. SAFETY AND ENVIRONMENTAL PROTECTION POLICY2.1 The Company should establish a safety and environmental-protection policy which describes how the objectives given in paragraph 1.2 will be achieved.2.2 The Company should ensure that the policy is implemented and maintained at all levels of the organization both, ship-based and shore-based.3. COMPANY RESPONSIBILITIES AND AUTHORITY3.1 If the entity who is responsible for the operation of the ship is other than the owner, the owner must report the full name and details of such entity to the Administration.3.2 The Company should define and document the responsibility, authority and interrelation of all personnel who manage, perform and verify work relating to and affecting safety and pollution prevention.3.3 The Company is responsible for ensuring that adequate resources and shore-based support are provided to enable the designated person or persons to carry out their functions.4. DESIGNATED PERSON(S)To ensure the safe operation of each ship and to provide a link between the Company and those on board, every Company, as appropriate, should designate a person or persons ashore having direct access to the highest level of management. The responsibility and authority of the designated person or persons should include monitoring the safety and pollution- prevention aspects of the operation of each ship and ensuring that adequate resources and shore-based support are applied, as required.5. MASTER’S RESPONSIBILITY AND AUTHORITY5.1 The Company should clearly define and document the master’s responsibility with regard to:a. Implementing the safety and environmental-protection policy of the Company;b. Motivating the crew in the observation of that policy;c. Issuing appropriate orders and instructions in a clear and simple manner;d. Verifying that specified requirements are observed; ande. Periodically reviewing the SMS and reporting its deficiencies to the shore-based management.5.2 The Company should ensure that the SMS operating on board the ship contains a clear statement emphasizing the master’s authority. The Company should establish in the SMS that the master has the overriding authority and the responsibility to make decisions with respect to safety and pollution prevention and to request the Company’s assistance as may be necessary.6. RESOURCES AND PERSONNEL6.1 The Company should ensure that the master is:a. Properly qualified for command;b. Fully conversant with the Company’s SMS; andc. Given the necessary support so that the master’s duties can be safely performed.6.2 The Company should ensure that each ship is manned with qualified, certificated and medically fit seafarers in accordance with national and international requirements.6.3 The Company should establish procedures to ensure that new personnel and personnel transferred to new assignments related to safety and protection of the environment are given proper familiarization with their duties. Instructions which are essential to be provided prior to sailing should be identified, documented and given.6.4 The Company should ensure that all personnel involved in the Company’s SMS have an adequate understanding of relevant rules, regulations, codes and guidelines.6.5 The Company should establish and maintain procedures for identifying any training which may be required in support of the SMS and ensure that such training is provided for all personnel concerned.6.6 The Company should establish procedures by which the ship’s personnel receive relevant information on the SMS in a working language or languages understood by them.6.7 The Company should ensure that the ship’s personnel are able to communicate effectively in the execution of their duties related to the SMS.7. SHIPBOARD OPERATIONSThe Company should establish procedures, plans and instructions, , including checklist as appropriate, for key shipboard operations concerning the safety of the personnel, ship and protection of the environment. The various tasks should be defined and assigned to qualified personnel.8. EMERGENCY PREPAREDNESS8.1 The Company should identify potential emergency shipboard situations, and establish procedures to respond to them.8.2 The Company should establish programmes for drills and exercises to prepare for emergency actions.8.3 The SMS should provide for measures ensuring that the Company’s organization can respond at any time to hazards, accidents and emergency situations involving its ships.9. REPORTS AND ANALYSIS OF NON-CONFORMITIES, ACCIDENTS AND HAZARDOUS OCCURRENCES9.1 The SMS should include procedures ensuring that non- conformities, accidents and hazardous situations are reported to the Company, investigated and analysed with the objective of improving safety and pollution prevention.9.2 The Company should establish procedures for the implementation of corrective action, including measures intended to prevent recurrence.10. MAINTENANCE OF THE SHIP AND EQUIPMENT10.1 The Company should establish procedures to ensure that the ship is maintained in conformity with the provisions of the relevant rules and regulations and with any additional requirements which may be established by the Company.10.2 In meeting these requirements the Company should ensure that:a. Inspections are held at appropriate intervals;b. Any non-conformity is reported, with its possible cause, if known;c. Appropriate corrective action is taken; andd. Records of these activities are maintained.10.3 The Company should identify equipment and technical systems the sudden operational failure of which may result in hazardous situations. The SMS should provide for specific measures aimed at promoting the reliability of such equipment or systems. These measures should include the regular testing of stand-by arrangements and equipment or technical systems that are not in continuous use.10.4 The inspections mentioned in 10.2 as well as the measures referred to in 10.3 should be integrated into the ship’s operational maintenance routine.11. DOCUMENTATION11.1 The Company should establish and maintain procedures to control all documents and data which are relevant to the SMS11.2 The Company should ensure that:a. Valid documents are available at all relevant locations;b. Changes to documents are reviewed and approved by authorized personnel; andc. Obsolete documents are promptly removed.11.3 The documents used to describe and implement the SMS may be referred to as the Safety Management Manual. Documentation should be kept in a form that the Company considers most effective. Each ship should carry on board all documentation relevant to that ship.12. COMPANY VERIFICATION, REVIEW AND EVALUATION12.1 The Company should carry out internal safety audits on board and ashore at intervals not exceeding twelve months to verify whether safety and pollution-prevention activities comply with the SMS. In exceptional circumstances, this interval may be exceeded by not more than three months.12.2 The Company should periodically evaluate the effectiveness of the SMS in accordance with procedures established by the Company12.3 The audits and possible corrective actions should be carried out in accordance with documented procedures.12.4 Personnel carrying out audits should be independent of the areas being audited unless this is impracticable due to the size and the nature of the Company.12.5 The results of the audits and reviews should be brought to the attention of all personnel having responsibility in the area involved.12.6 The management personnel responsible for the area involved should take timely corrective action on deficiencies found.

Introduction to DDM’ Safety Management System

In 2002, when the ISM Code was still fresh or even strange to a rather majority of Viet Nam located ship-owners, the company (DDM) actively made a voluntary advancement by prevailing the SMS to the fleet that was, at the meantime, thoroughly certified and audited by Viet Nam Register (VR) for Document of Compliance (DOC) prior to the enforceable date of ISM Code by 01 July 2002covering any sea-going vessels with 500 GRT or above, engaging into international voyages. It’s a highlight on DDM’s management for international sea-going vessels.In 2006, taking chance of the trendy participation into the worldwide and regional transportationintegration, the DDM’s Management Team launched the fleet on hire by varied overseas partners, particularly the Japanese Ones. For international voyages, vessels being flagged by Panama and being classed by NK deemed a trend catching up the interestsof Asian Charters and the company as well. Therefore, the company’s investmentinto some Panamanian flagged vessels to be classed by NK was a decisive step forwards the additional SMS’s NK approval and certification for DOC, SMC, SSP and ISSC.Thankful to the investments, perhaps rarely achieved by any others within Viet Nam Maritime Industry at the time, the SMSwas upgraded to a new level where the company gained a higher evaluation and a better look from the eyes of the Asian Ship-owners.Following the ratification for MLC, 2006, DDM actively brought the fleet of 08 vessels, approximately 102,269 DWT (?) toits practice on board a short time before its enforceable date by 20 Aug 2013. In details, the MLC certification by VR for the 04 Vietnamese flagged vessels completed on 29 Jun 2014 and MLC certification by NK for the 04 Panamanian flagged vessels completed on 14 Aug 2014.It is somehow respectful here and there within the industry that DDM was the very first to implement the MLC, 2006 in Viet Nam.As one said ‘Practice makes perfect’, the Safety Management System continues to prove its upward actual effectiveness as the time passes by. Thus, DDM finds itself a strong confidence while bringing the SMS to the service for overseas Charters and varied ship-owners in form of any deal of vessel operation.

Items regularly inspected on boardship by PSC (Code 30)

1/ DECK:• Water level sensor be fail.• BC code valves in forward store be fail.• CO2 valves to cargo hold is in closed position.• Record in Garbage management book is misstaked.• Weather tight doors on the main deck is not sealed.• No device of alcohol concentration measuring.• Do not close the manhole cover from the forward deck to tank.• Many holes on the lifeboat deck.• Weather watertight door aftside was heavy rust corrosion. 2/ BRIDGE:• Ships without warning maritime coastal maritime areas.• On board no shells smoke signal in lifeboat. • No updated information of ship position on AIS. • No report equipment test of AIS. • No report of test calling MF / HF. • Captain and deck officers do not know how to use the calling choose the device MF/HF. • MF/HF inactive by DC-24V. • No transfer power from AC to DC for MF / HF. • Failing test equipment function of MF/HF with shore stations and no records.• equipment contact between the Bridge and engine room damaged.• No manual gun of shoot line. • No emergency power for GPS. • VDR display a warning. • No emergency power for VDR. • Do not record the time work/rest for seafarers. • Not enought immission suits to in the bridge, engine room according to SOLAS. • No emergency power of GMDSS equipment3/ LIFEBOAT:• Drink water in the lifeboat expired • Lifeboats were lowered into the water and drilled within 3 months. • Lifeboat release mechanism is not installed properly defined. • Can not start the engine of the two lifeboats with batteries. 4/ FIRE FIGHTING:• Do not perform maintenance of breathing apparatus. The air in tank is low. • A EEBD not have enough gas, no store another tank. • Sensor of Smoke in bridge broken. • Equipment for measuring pressure at suction and discharge of the emer.firre pump damaged. • The pipe that emer.firre pump are not fully covered against fire.   • Alarm system in the engine room CO2 broken. • Remote control valve of the emer.firre pump suction line broken. • Crew members do not know how to use breathing apparatus. • Sprinkler in paint store was nutted with wooden buttons. • No alarm system high pressure oil leak of diesel engine. 5/DOCUMENT, CERTIFICATES: • CSR sheet 1 are not on board. • No sub-chapter of the manual IAMSAR part 3. • No Profile of internal audit ISM on board. • No internal audit Profile of ISPS on board. • No record NC onboard. • No technical file of main engine. • No a certificate of dangerous cargo. • On board does not have a certificate of non-use of asbestos. • Certificate of Captain, officers do not have the signature of the approved.6/ DRILL:• Crew members do not know how to drill of firre-fighting and abandon ship7/ ENGINE ROOM:a/Engine Room• Alarm 100v electrical insulation for the main swich board, emer.swich boardand interrupted. • Tank of pneumatic control of shutt off valves empty. • In the engine room there is no duty in an emergency. • Alarm levels of bilge water in engine room damaged. • No control damper of E/R. • The damper of E/R not be closed. • Bulk head of the engine room and cabine not be insulation materrial. • No stuffing insulation of engine room fan. • Vacuum engine room ventilation weak activity. (30) • Fire doors at the entrance to the engine room to keep open state b/Main engine:• Sensors of oil-miss in crankcase damaged.• Alarm low LO pressure, oil leaking pipe be fail.c/Auxiliary Boiler:• Safety valve of aux.boiler be fail• Cut off burning of aux.boiler be faild/Oily Water Separator:• Test 15ppm be fault.• Crew can not operate Oily water separator.• Alarm of high oil content of Oily water separator be fault, no international flange.e/LO Pump:• LO pump can not stop when alarm LO low pressure.f/Generator:• No isolated plate at emer.generator.g/Emergency Generator:• Emer.generator fuel tank no mark 18 hrs level to use.• Can not start Emer.generator.h/Remote Control System:• Shut off valve no run when test.    • Shut off valve be fault.   • Engineer can not operate shutt off valve system.i/Seawage Treatment Unit:• Fan of Sewage treatment unit not run.• No level sensor of Sewage treatment unit.8/Cabine:•  Connecting wires in the kitchen and cabine by himself.9/ Ship Securcity:• No reports of ship security alarm test (SSAS)

DDM’ Ship Management Capacity

Owned a slight number of small-sized vessels sailing around for only domestic coastal carriage of goods. In 2008, the company made a turn by owning a fleet of up to 08 vessels which were bigger in size per unit, reaching approximately 102,269 DWT (?) to be allocated over 05 general cargo vessels, 02 container carriers and 01 bulk carrier, half of which is Panamanian flagged, the other half is Vietnamese flagged.As aforesaid, what DDM gains from the successful application of the SMS depends thoroughly upon the personnel consisting of high qualified captains and chief engineers, most of whom had previously been well-trained and employed by varied international level overseas shipping companiesbeing based in Norway, Japan, Taiwan, Korea or even U.S.A, and most of all,owning to their many years of sea-going experiences. Nevertheless, the SMS still continues to be improved so as to make sure that it can be up to date.Beginning in May 2014, DDM jumped in to the ship management marketplace by jointly signing the first-ever agreement with HAI AN TRANSPORT & STEVEDORING JOINT-STOCK COMPAMY for managing a container carrier M/V HAI AN PARK; Built in 2000; Capacity:  787TUEs; 12649 DWT; Vietnamese flagged; Trade area on intensive scheduling basis: Southeastern Asia, placing the essential stage for DDM to tender its SMS to service for ship managing activities. Furthermore, the audit by VR for issuance of Maritime Labor Certificate (MLC), especially at site for Declaration of Maritime Labor Compliance (DMLC) endorsement, was successfullycompleted with the supportof SMS and its personnel on 13 Aug 2014, a short time prior tothe enforceable date on 20 Aug 2014 in regard to Vietnamese flagged vessels, in addition to other supportive activities to VR’ certification for Safety Equipment, Safety Structure and Safety Radio etc…From the view of tendering managerial services, M/V HAI AN PARK has been operated in a good status being admitted by the mentioned ship-owner. It’s also when the personnel and SMS can get a good preparation, as far asDDM’s market - heading policyis concerned, for further launch of servicesto future market demands.