CONDITION SURVEY REPORT

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1 CONDITION SURVEY REPORT / NAME OF VESSEL: SCOPE OF INSPECTION: PLACE OF INSPECTION: THJELVAR PRE-PURCHASE CONDITION SURVEY NORRKÖPING, SWEDEN

2 THIS IS TO CERTIFY that in accordance with the instructions received from Mr. Ralko Dimitrov, Manager of INTERSHIPPING Ltd, Maritime Service- Burgas, the undersigned surveyors carried out a pre-purchase survey of the ROPAX THJELVAR that took place from June 4 nd to 6 th, I. GENERAL INFORMATION 1 Date and Place of survey June 2011, on board of M/V "THJELVAR" while she was moored in the port of Norrköping, Öhmansterminalen Godskontor 2 Surveyor's Name Dipl. Engineer Ivan Dosev 3 Reference Number Dipl. Engineer Georgi Marinov 4 Condition of the Survey The inspection took place while M/V THJELVAR was berthed in the port of Norrköping. The vessel has been laid up from September The Auxiliary Diesel-Generators were used as a source of power supply. During the inspection Diesel-Generator No1 was running. The electrical load was 210 kw. The Main Engines have been kept worm by the Auxiliary Boilers. Steam was supplied to the heaters in the Bow Thrusters Room and Pump Room 1 in the fore part. The crew consists of Master and Chief Engineer. Some Fitters was working on superstructure grinding and coating, anchoring and mooring equipment grinding and coating, handrails renewal, accommodation plumbing repairs. Page 2 of 13

3 II. CONDITION SURVEY REPORT A. GENERAL DATA 1 Name of Vessel THJELVAR 2 Previous Names SALLY STAR ; TRAVEMUNDE LINK ; TRAVEMUNDE ; THJELVAR ; COLLOR TRAVELLER ; ROSTOCK 3 Port of registry / Flag Vysby / Sweden 4 IMO No Call sign SJKA 6 Owners Rederi AB Gotland 7 Manager Destinationi Gotland AB 8 Year and place of build 1981 / OY WÄRTSILLÄ AB, HELSINGFORS, FINLAND, Yard No Type of Ship RO/RO Passenger Ship 10 Classification Society DNV (Det Norske Veritas) 11 Length (overall) m 12 Length (between perpendicular) 13 Breadth moulded Breadth extreme m m m 14 Draught 4.95 m as two-compartment ship 5.25 m as one-compartment ship 15 Depth to main deck Depth to upper deck 6.70 m m 16 GT / NT / Deadweight tons as two-compartment ship tons as one-compartment ship 18 Service speed 18 knots 19 Lane meters m 20 Wide lanes 2.85 m Page 3 of 13

4 B. CAPACITIES 1. Trailers, Trucks and Lorries INTERSHIPPING Ltd. MARITIME SERVICE - BURGAS Upper Deck Main Deck Total Lane meters 610 m 540 m m Free height 4.48 m 4.50 m Wide Lanes 2.85 m 2.85 m Reefer Plugs 15 pcs 16 pcs 31 pcs 2. Cars and buses Upper Deck Main Deck Platform 6 Platform 4 Lane meters 815 m 720 m 504 m 252 m Free height 2.60 m 2.60 m 1.80 m 1.80 m Wide Lanes 2.15 m 2.15 m 2.15 m 2.15 m The Main Deck (Deck 3) and Upper Deck (Deck 5) consist of six (6) lanes, each 2.85 m wide for loading of trailers, three on each side of a center casing, or in case of cars loading eight (8) lanes, each 2,15 m wide. Over the Main Deck (Deck 3) on Starboard Side there are three(3) movable car platforms. Over the Upper Deck (Deck 5) there are six(6) movable car platforms, three on each side of the center casing. Aft and fore platforms are tiltable and their end can lay on the deck for cars loading. When the platforms are in upper position the free height is 4.50 m over the Main Deck and 4.48m over the Upper Deck. When platforms are in lower position the free height over them is 1.80 m, and the free height over the decks is 2.60 m. Access to the Main Deck (Deck 3) is provided via a 5.54 m wide stern ramp with a free height of opening 4.75 m and a 4.50 m wide bow ramp covered by a bow visor with a free height of opening 4.75 mm. Access to the Upper Deck (Deck 5) is provided via a 3.50 m wide stern ramp with a free height of opening 6.80 m and a side ramp on Port Side in the fore part of the ship 6.00 m wide with free height of opening 4.71 m. Page 4 of 13

5 C. CARGO DECK ACCESSES Max. Length Max. Breadth Height Stern Ramp to Main Deck m 5.54 m 4.75 m Bow ramp to Main Deck m 4.50 m 4.75 m Stern Ramp to Upper Deck m 3.50 m 6.80 m Side Ramp to Upper Deck 4.00 m 6.00 m 4.71 m D. MACHINERY Main Engine/type Count Total kw Fuel type Consumption per 24 h Wärtsilä 12V rpm IFO knots 48 t Aux Diesel Generators, type Wärtsilä 4R32/ AEG DKBLr 632/08 Count Total kw Fuel type Consumption per 24 h 2 2 x 1180 MGO 4.0 t Emergency Diesel Generator/type Detroit Diesel 8VA / Newer Stamford MC 534 B Count Total kw Fuel type MGO Shaft Generators/type AEG DKBH 4506/04 Count Total kw 2 2 x Propellers/type KaMeWa, 4 bladed, variable pitch Count Number of Blades Propeller Diameter mm Page 5 of 13

6 Reduction Gears/type Lohmann & Stolterfoht GVA 1500 SO Count Input Via 2 2 ME Pneumaticaly operated dry friction couplings Lohman & Stolterfoht Pneumaflex KAA 300 Bow Thruster/type Count Total kw Propeller Diameter Blades KaMeWa 2000/AS-CP 2 2 x 750 kw mm 4 Oil-fired Auxiliary Boilers Aalborg Vaerft A/S Vertical Shell Type Count Pressure, bar 2 10 Exhaust gas Auxiliary Boiler Count Pressure bar Water Tube Type 1 10 SYSTEMS 1 Cooling System Main Engines Oil and Fresh Water Central Cooling 2 Starting Air System 2 x Main Compressors + 1 x Emergency Compressor 3 Working Air 1 x Compressor, 7 bar 4 Fuel System 2 x HFO separators, 1 x MDO separator 5 Oil System 5 x Oil Separators 6 Ballast System 3 x Ballast Pumps 7 Bilge System 2 x Main Bilge Pump Units, Piston Type 1 x Bilge Water Pumping Unit, General Service 1 x Bilge Water Pumping Unit / Ballast Water Pumping Unit 2 x Bilge Water Ejector 1 x Oily Bilge Water Separator 8 Sludge System 1 x Sludge Pumping Unit 9 Sewage System Bio Treatment Vacuum System Page 6 of 13

7 10 Garbage Plant 2 x Garbage Containers incl. 1 x Garbage Mills 1 x Compactor for Used Packing 11 Fire System 1 x Fire Pumping Unit, Main 1 x Fire Pumping Unit, Emergency 3 x Halotron 2B fire fighting systems in Machinery Area Water Sprinkler System in Car Decks Water Fog Pressurized System in all Accommodation (SOLAS Ch.II-2 Reg ) Water Fog System in areas with high fire risk (SOLAS Conf 3/46) 12 Air Conditioning 1 x Air Conditioning Plant for the Accommodation Summer: Outdoors +32 o C, 75% H; Indoors +28 o C, 50-60% H Winter: Outdoors -20 o C, 13 Cargo Spaces Ventilation Main Deck: 10 x axial fans Indoors +20 o C Upper Deck: 14 x axial fans 14 Accomodation Ventilation 3 x Separate Fan Rooms 15 Automation System Remote Control and Monitoring Systems according to DNV, Class EO 24 hours operation with Unattended Machinery Spaces TANK CAPACITY 1 Water Ballast m 3 2 Heeling Tanks 2 x 96 m 3 3 Heavy Fuel Oil m 3 4 Diesel Oil m 3 5 Fresh Water m 3 6 Sewage m 3 EQUIPMENT 1 Steering Gear 2 x Semi-Balanced Rudders Driven by double section hydraulic cylinder 4 Anchors 2 x Stockless Anchors Page 7 of 13

8 5 Anchor Chain Cables 6 Windlass 2 x Windlasses combined with 12 ton mooring drums for self-tensioning duties 7 Mooring Winches 2 x Mooring Winches with 2 mooring drums each 2 x Mooring Winches, located on SBS for mooring during loading on Upper Deck via the Stern Ramp SBS SAFETY EQUIPMENT 1 Lifeboats 4 x Motor Partially Enclosed Lifeboats, x 140 persons each 2 Liferafts 24 x Liferafts, x 25 persons each 24 x Liferafts, x 37 persons each 3 Liferafts 8 x VIKING type DKFS 25 persons each 4 Rescue Boat 1 x Rescue Boat FRB 500, Tohatsu 30 HP 5 Fast Rescue Boat 1 x FRB Water Jet, Type 700, 130 HP 6 Life Jackets 2100 x Adults, 210 x Children 1. Cabins E. Accomodation 1 Passenger Cabins 62 x 4 berths 14 x 2 berths 4 x 2 berths, for disabled Total passengers 272 berths 2 Crew Cabins 25 x 1 berth 15 x 2 berths Total crew 55 berths All with private facilities. 2. Seating Capacity 1 Saloon, reclining seats Video Saloon Restaurant, FWD Deck Bar & Cafe Information Hall 63 6 Cafeteria, AFT Deck Conference Room 44 Total seats Page 8 of 13

9 F. CERTIFICATES INTERSHIPPING Ltd. MARITIME SERVICE - BURGAS M/V THJELVAR is classified by DNV with notations 1A1 ICE-1A Car Ferry A MCDK E0. The vessel has all certificates that are required for her operation as a RO/RO passenger ship. The documents expire on 31 st of January 2015, when her five-year class ends too. On her regular lines, the ship has sailed with papers for Short International voyage. This way the full passenger capacity (all cabins, and berths and seats) can be employed. M/V THJELVAR complies with the requirements of the Stockholm Agreement regarding the damage stability for a significant wave height of 3,1 m with 0,5 m water on bulkhead deck as a two-compartment vessel. Radio Equipment covers GMDSS areas A1 + A2. The ship is certified to carry on board 1500 passengers. HULL III. SURVEY REPORT Steel mono-hull with two cargo decks and two car movable platforms, two decks with passenger cabins and public spaces, one deck with the crew s cabins and one wheelhouse deck. Access to the decks is provided not only by traps but also by a lift (elevator). The last measures of the plating s thickness and members are taken in the period from 19/12/2009 to 08/01/2010, in connection with the class repair of the vessel, and they are: 1. Measurement of the thickness of decks plating and shell plating shows an maximum wear of 4.0% for decks plating and 4.6% for shell plates. 2. Report on thickness measurement for bulkheads shows wear of 7.5%. 3. According to the thickness measurement report there are wear out in local areas which are over the limits. Because the measurements had been taken before the Class renewal, it s expected that worn out areas were repaired. There is no information on board about the steel work during the Class Repair. During the inspection we determined the good state of the plating and decks, there are no visible wear and tear, nor rust, excluding locations around sealing surfaces on stern and bow ramps and ventilation ducts, where places with rust and coloring are noticeable. There are noticeable indents in the shell, due to the contact with the tugs and the port facilities. During the inspection the crew was preparing and coating the decks in the superstructure. ISPS Code All passengers and drivers have access only to the passenger decks. This is secured through electronic locks and security codes for the crew accommodation and the Engine Room. Page 9 of 13

10 PASSENGER SECTION INTERSHIPPING Ltd. MARITIME SERVICE - BURGAS All available cabins are constructed with high quality materials. Their condition is excellent. The vessel has a self-service Restaurant, Bar and Café, Information Hall and Cafeteria. The vessel also has a shop. The conditions for accommodating and servicing drivers and passengers are plain and lack excessive luxury, yet they provide good possibilities for life, are easy to service, and maintain. CARGO CAPACITY The described cargo decks, stern ramps to the main deck and to the upper deck, bow ramp, movable car platforms provide the opportunity to load the ship in flexible way. The vessel has certificates for the transport of dangerous goods in the following classes: , 1.4S, 2.1 to 2.3, 3, 4.1 to 4.3, 5.1 and 5.2, 6.1, 8 and 9. MACHINERY AND MECHANICAL SYSTEMS Machinery installation was surveyed in a laid-up condition. Diesel Generator No1 and the Steam Boiler No1 worked. Main Engines were kept warm. 1. Main Engines Main Engines were found clean and in good condition. Leakages were not registered. The maintenance is provided on a basis of planned manner and continuous survey. Main Engine Running Hours Hours After Last Overhaul 1 STB outer STB inner PSB inner PSB outer There are undersized main journals and crankpins, listed in the DNV Status Report. 2. Auxiliary Diesel Generators Auxiliary Diesel Engines and Generators were found in good condition. During the inspection Diesel Generator No1 was running with load of 210 kw. Working parameters were found in normal levels. Diesel Generator Engine Running Hours Hours After Last Overhaul 1 STB PS Page 10 of 13

11 3. Shaft Generators Shaft Generators were found in good condition. One Shaft Generator takes nominal power for the ship s sailing. 4. Emergency Diesel Generator The Emergency Diesel Generator was found in good condition. The latest test for automatic start was successfully carried out during the annual survey on 29/01/ Tail Shafts, Propellers, Stern Tubes Stern Gear is Oil Lubricated, sealed by Waukesha-Lips Type 420-MK IIB Bearings are made of white metal. Tail Shafts Nominal Dimensions d aft = 400 mm d fore = 398 mm 5.1. Tail Shaft SBS Last inspection withdrawn in dock 20/09/ Tail Shaft PS Last Inspection withdrawn in dock 20/09/2007 Information about measurements is expected from the owners. 6. Reduction Gears Reduction Gears were found in satisfactory condition. 7. Steering Gear The visible parts of the Steering Gear were found in good condition. Information about measurements is expected from the owners. 8. Anchoring and Mooring Equipment The Windlasses and Mooring Winches were used during the ship s mooring. They all were fond in good condition. The windlasses were prepared for coating. Information about anchor chains calibration is expected from the owners. 9. Steam Generators 9.1. Oil Fired Boiler Oil Fired Boilers were found in good condition. One of them was used during the inspection Exhaust Gas Boilers One of the Exhaust Gas Boilers was disconnected permanently in Page 11 of 13

12 10. Air System and Compressors Starting Air Compressors and Working Air Compressor were found in good condition. 11. Systems The systems are constructed and installed in a simple way. Leakages, damages, and heavy corrosion were not found. Pumps were in satisfactory condition without leakages and vibrations, with normal temperature of their electrical motors during run. Fire System is constructed in conformity with the conventions regulations: - Cargo spaces are protected by drencher system; - Accommodation is protected by sprinkler system; - Machinery spaces are protected by independent fire-fighting system. The Ballast Operations and Bilge Transfer Operations are remotely controlled. IV. Electrical Engine Control Room The Engine Control Room is ergonomically arranged, well insulated and conditioned. The Control Desk and the Main Switchboard are situated there. All control, monitoring and signalizing devices were found in good condition. The ship is equipped for unattended machinery spaces exploitation. Electrical Installation Electrical installation is 3 x 380 V, 50 Hz. The Main Source of electrical power consists of two Diesel Generators and two Shaft Generators. Emergency source of power consists of one diesel-driven Emergency Generator. Electrical equipment, monitoring apparatus and lights were found well maintained and in good working order. Bridge The Ship s Bridge is fully covered, spacious and provides excellent visibility during maneuvers. The remote control devices and monitoring equipment are ergonomically designed and well situated. All equipment on the bridge was found in working condition. The bridge is fully equipped with navigational systems in compliance with the acting SOLAS regulations. The radio equipment covers requirements for A1 + A2 sea areas according to SOLAS Reg. IV/2 Voyage Data Recorder is installed on the bridge. Page 12 of 13

13 V. Conclusion The vessel is of a very strong build, only high quality materials are used. The installed machinery and mechanical systems are easy to maintain, safe and constructed by well-known manufacturers. All the machinery and equipment were found in good condition. They seem to be well maintained and ready to use. During her 30 years of operation the vessel is well kept and in excellent condition. The main particulars, cargo capacity, and possibilities to transport drivers and passengers all make the ship very suitable for the SILKLINK Black sea line. If she is purchased, she can start operating in Black sea immediately after the required paper formalities are finalized. Based on the information acquired during the inspection the prospects are that for the next class repairs not much steel work, docking and mechanical work will be required. In conclusion, the opinion of the inspectors is that this vessel is suitable for the needs of Black Sea Ro-Pax Line between Burgas, Poti and Novorossiysk and recommend starting negotiations for the purchase of ROPAX THJELVAR. Inspectors: / I v a n D o s e v/ / G e o r g i M a r i n o v / Appendices: 1. Pictures 2. Summarized Business Plan Page 13 of 13

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