REPORTS AND CORRESPONDENCE Page(s) Master's report dated 11° January 2013. Underwriters’ Surveyors’ report No. 018/DS/ABN/I/2013 dated 27" November 2013 in respect of surveys at China, Jakarta and Barlto Rivers (East Kalimantan) in January) ‘August 2013 - 226, Gurbani & Co.'s emrall dated 15° March 2013.neoennenennmnenne — 229 Correspondence exchanged between the Average Adjuster and the Underwriters’ Surveyors: |. Adjuster’ letter dated 7° January 2014 ee 3081 1. Surveyors’ reply dated 21° January 2014 3233Master's Statement of Fact 80.1, 2018 ‘To WHOM IT MAY CONCERN Re: Separation of Barges from Ship lone te udvsed tht us you know, several gines of separtion ofthe ba stich we dove srnen ding the cotrse of this vavane we awe nrived at Sen, China a9, Hl, 2078, mur carla ly. 3000 investgnin Iota towing gute bas reveled thal de in altuched Yo yerbate on the A, ft barge “MASADA 13 ws allowed la cu “MUL 320" 8 part fom Parg® “MASADA 18 1 viow uf the sbore fae, we shell Hols the san se. tiely respanible far the dustge which CCustoser! Shipper! tae saiprbileing Co, any rat es rested erefroa. urermore, a i were. complied lo ke every step eossible and mae 1 effort for he purpose o€rascnng te Berge rom paris ans sks 2 sc Suc se for th sare fly rego voting ané lc, and the parce © callin. rrtier ana wnt may be/ ae Beem eoszoeutvelycoused by ther sill ne tke fr ceimbacscmnont of all gost Icidennt to tis maar in eon core, or inutane, the tcp of eon ebing bose, te lowing charge (Tas -bual "BAL SHAN? aad others. 1 would apprecinte your kind atlention to the aha. ery ty yoursPT. ASUKA BAHARI NUSANTARA (ABN ) Independent Marine Surveyors & Consultants NoO18/OS/ABNIU2013 Date: 27 November 2013 DAMAGE SURVEY REPORT (GT 3.387 of Banjarmasin: towed by Agnes Wedd no.1") 19 December 2012: ‘The barge in double tow arrangement with BG." Masada 18° tontine broken and barge cited away at South China Sea ‘0n voyage from Shanghai, Chinato Barjarmasin, Indonesia Instruction Ref, No.O44/126-212073 dated 17 January 2013 This is to certify that atthe request of PT ASURANSI JASA INDONESIA, Jakerta, on benalt the Underwmters concerned, he Surveyor(s) to PT ASUKA BAHARI NUSANTARA, Jakarta, cid camry out damage survey to the steel bult barge “MJL 301" owned by PT. Masada Jaya Lines, Banjstmasin, for the purpose of ascertaining the cause, nature and extent of damage in consequence of self released and broken towiines at South China Sea on 19 December 2012, We report as, falions.No :01aDsinsn20ss ste: 27 November 2013 Per 1:86. MUL 30, tating sound Suna Pug, ato Res, uh Kalranan Name of vessel ML sot Type of Vesse Deck Cargo Barge Pot of Registy Banjarmasin Nationality Republic of Indonesia Owners PT. Masade Jays Lines Classification ABS. Loa 91.50m Lap 27.84m Breadth 24.40 Depth 610m Builder Place / Year: Nanjing Yonghua Shipbulding / China / 2012 TANT 3.357 / 1,008No: or@/oSIABNWa013 Dale: 27 November 2013 etwe Name of vessel Call Sign Type of Vesse Port of Registry Nationality Owners Chassiication Lengti Breadth Dept Builder / Place / Year TAT Main Engine Auxliory Engines 2-7. Agnes Wot. ,bething at Seo, Crsnr Terminal Sheehan, chine AGNES WORLD no. 1 HP3475 Tugboat Penams Republic of Panama Donghae Shipbuilding Co.Ltd INA 2681 m 10.00m 450m Qiang Baisui Sb Co. Ltd / China 2008 495/190 ‘Two (2) units WUXI Diese! 2x 1,600 HP.Dir epee Ul, STATEMENT OF ACCIDENT. The chronology below is narrated based on verbal statement made by the Mester of TB. “Agnes Worl! no.1", copy of Master's Statoment of Fact, entries in the t's logbooks and other related documents. Ctcumstances leading to ‘accident are reported as follows. 25 November 2012 Tugboat “Agnes Wer no.‘” in double towing gears arrangement ofthe barge "Masada 18° and “MUL 301" prepared to depart from Shanghai, China for Banjarmasin, Indonesia. However, the Harbourmaster did not grant approval for galing due to heavy weather condition. | BG.MASADA 18 & MIL 301 | Towing gears arrangement Pc : ration toning arangement pra deparure fam Shang Chine based on Coniete of Fess Towag sod by Chin Cision Sei (00S) 0, SHYZOSO1ES ded 72 November 2012 ren oo sou eene,No :o1@oSiABnva019 Date : 27 November 2013 2LNovember 2012 114.00 LT, te Harboumaster granted saling clearance and the tugboat towed both barges (double tow) departing from Shanghai bound for Barjarmasin, 28.November 2012 18.00 LT, at cocrdinate approx North latiude 30°18. 13/East Longitude 123'08.16,, barge ML 301 came inlo colision with a fishing boat “ZHEXIANGYU 23022", Mutual agreement with the fishing boat was reached ‘and the cruise was resumed to Banjrmasi. 20 November 2012 415.20 LT, the Master received information’ about the sirke of Typhoon *BOPHA" (PABLO) on the trajectory so he altered course from 183° to 003" to steer clear of the typhoon. However, all vessels ran adrift due to typhoon's effect ‘LDecember 2012 “15,30 LT, at coordinate approx. 22°33NI115°55E and stil ran salt due to ‘yphoon's effect, altered course to 262" for Huizhou, China. ‘2December 2012 07.55_LT. the toning units anchored around Huizhou water at coordinate |pprox 22°28.81'N/114°46.62E. Prevaling weather was reported at moderate breeze (scale 4 in Beautort scale). 14,00 LT, five (5) repairmen came aboard to effect repair as the tug reported to experience trouble in her engine roam,Oh se :owmsnwots Dat 27 Nebr 2082 {December 2012 18.30_LT, the tug Master reported an activity of clearing and renewing of toulines by aesletance of tugboat ‘JINTONG* 18.30. the Master reported that towiines to barge MuL. 301 was cut due to ‘carelessness of tugboat JINTONG and the barge drited away. 18. December 2012 {1.30.LT, reconnected the towlines to barge MJL 301 18.30 LT, toning ropes of Polypropylene dia. 98 mm x 220 m was renewed with Polypropylene dia. 110 mm x 200 m, 20.30.LT. the towsing left Huizhou, China baund for Banjarmasin, indonesia, 12.Desamber 2012 ZA.50LLT. encountering jst about gale weather condtion at coordinate approx 24°3620N / 1181908, the second towing link (SIB) between barge "MASADA 16" and barge “MIL 301” sef released end lead to broke off the second toning lnk (PIS), $0 that barge "Mul 301” got iting. The the tugboat stil towed barge "MASADA 16" altering course to locate the barge "MUL 301". MJL 301 Agnes Woridno.1 MASADA 18 ‘tue Brain ong anger basal on el sto Rese ah 1: Agyes Worn. 7 teint on 19 December 2012No :ot@DsiABNVa012 Date : 27 November 2013 ‘ZDesomber 2012 10,40 LT, during the same weather condition, barge “MUL 901" was found at ‘coordinate approx 21°S8N/ 119°38'E and fowlines was reconnected with ‘assistance rendered by wo (2) tugboal. 22.00 LT, barge MJL 201 completely re-connected directly to "Agnes World no.t” on moderate breaze weather condition and reeumed sailing 30. Desember 2012 100.40 LT, encountering strong gale weather condition, at caodinate approx 21°52.00N | 113°44.00, towiines to barge MJL 301 reported broken again and the barge defteg, The tugboat, sill towing barge MASADA 18, altereé her course to chase barge "MIL 301" ‘Agnes World TaABADAE} ‘Mut 301 Pu lsat ttovng aang batts on wel semen Mase KV. Ages Wed to. aint on 30 Dacor 2012 2anuari 2013 98.30 LT, barge "MJL 301" was found at coordinate approx 18°56.40NI112°21.10 and towine was re-connected directly to tug unit Considering that they were lack of supply and spare of towing ropes due to exmeriencing sequence incidents, so the Master requested for asisstance. rg 7 eugene,No :018SiABH2013 Date £27 Nowembar 2013 Januari 2013 (09.30.LT. ai coordinate approx 19°30.00N / 111°46.00€, the "MUL 301" was hhanded over to tug “HAI SHAN” and bound for Shekou, Chin. 13,40 LT, at coordinate approx 19°48.40'N / 111°52.60, encountering about near gale weather, towing wire to deka plate which connected to barge “MASADA 18” was broken and the barge dited awey. Tug “Agnes World rno.1” altered her course to chase the driting "MASADA 18" Pie 6 uae lzcatons ‘sate imagery rove by Googe Each Sulanuari 2013 1230 LT, barge “MASADA 18° was found at coordinate approx 19704.53N/110°S4.05, Soon after reconnecting using available towrnes, they were bound for Shekou, ChinaEee Luanuari 2013 40.00 LT, at coordinate approx. 18°05.50N / 110°56.90%, fowtines to barge MASADA 18 was broken again and the barge dried. The tugboat locate the berge. {18.50 LT. the barge was found and towed again. Continued salling to Shekou, China, 416,00 LT. barge “ML 910° wae reported berthing at Shekou Container ‘Terminal, Shenzhen, China, 2 Jenuari 2013 11.55 LT, at coordinate approx. 19°37.80'N / 110°S0.40, the “*MASADA 18° connected to TB HAI SHAN for Shenzhen. Reported that propeller (PS) of tug “Agnes Wotld no.1" was twisted to @ danging fownes, but loca divers had recover, She then sailec to Shekou, China, 19.Januarl 2043 ‘The “MASADA 18° berthed at Shekou Container Terminal, Shenzhen, China. 1430 LT, tug "Agnes Werld no.t” berthed at Shekou Container Terminal, ‘Shenzhen, China, ‘Sunvevar's notes: 1. Accaraing to allegation mads by the Master of "Agner World no. 1" that no damage sustained to barge "MIL 301" in consequence of collision witha fishing host “ZHEXIANGYU 23022" on 28 November 2012. 2, No detail information of damage relating to fve (6) repairmen came ‘onboard on 9 December 2012 a¢ Chief Engineer was unavailable for interviow. 10No :o1aimsiaenuao1s Date: 27 Novener2013 3. Certiicate of Fines for Towage Issued by China Classification Society (00) no. SH120800163 dated 22 November 2012 noted that". This tiicate shall become inv the sanction of the Socity.". In relation (0 clearing and renewing of fowtines on 17 December 2012, itis considered that tis activiy made the certiicate become inva for further sang 4. We refer to picture 4 and picture & above, strong possiblity that both barges may bump each ether and create damages to respective hull, aNo ora/osiaBnuva01s Date =27 November 2019, I. SURVEY, 4. Attending the Surveys ‘1 attendance 23 January 2013: at Shenzhen, China Mr. Kim Jeong Woo Master of TB Agnes World na. 1 = Mr. Xue Bing Xiang Chairman of Shenzhen Far-Sight Ship Senice + Mr. Sistary Undenwrite’s Surveyor Interview to inquire about chronological information regarding the accident was held at Shekou Container Terminal ~ Shenzhen, China, Surveyor found dificult in communication due to language obstacle with the tug Mester. Meanwfile, 8 the barges were besthing alongside the pier, was ificut to identify damage to both barges. Interview was resumed with IM Xue Bing Xiang of Shenzhen Far-Sight Ship Service LTD., to inquire ‘about claim and invoices fled by their company. 2 Attendance {8 March 2013: PT. Asuransi Jasa indonesia (JASINDO), Jakarta + Mrs, Titut Marini Underwriter + Mr, Syahfry Nasution Underwriter = Me. Richard Kuek Gurbani & Co. Mr. Sahat Panggabean MCO Prima Indonesia < Mr Stary Undenariter's Surveyor Meeting wes held to discuss the progress of claim and Mr. Richard Kuek of Gurbani & Co. explaining his strategy forthe upcoming meeting with thi party's lawyers roe ta aint,Dip oo 3° Attendance 419March 2013: PT, Asuransi Jasa Indonesia (JASINDO), Jakarta = Mr. Syahfry Nasution Underwriter Mr. Okidarsyan Underwriter ~ Mr Surya Rep, of Masada Lines: = Mr, Bob Har Purwanto Rep, of Masads Lines = Mr. Richard Kuek Gurbani & Co. Mr. Sahat Panggabean 1MCO Prima Indonesia + Mr, Sistairy Underwriters Surveyor [Again a meeting was hel to ciscuss the progress of claim and Mr. Richard Kuck of Gurbani & Co. explaining resuit of previous meeting with third patty lawyers and the upcoming strategies. 4% attendance 28 August 2013: Barto Rivers (Sungei Puting), East Kalimantan = Mr. Maya: Rep. of Masada Lines = Mr. Sistairy Underarite’s Surveyor The barge was floating and berthed alongside In the eres of Sungai Pung, the river of Barto. Survey was carted out to entity damages to the barge. Its found that temporary repair was conducted tothe barge.Op» so sotapsnannaots Dale 27 Nob 2012 2.Certificates: Validity of both vessels! {allows statutory and other certificates had been examined 35 Barge MJL 301 Wo Carcatos [Walton] Vaiarecogh 7 | Cartes of Nationality 2orz202 | Permanent 7 | interational Tonnage Cariteate (1008) ‘OnT02072 | Pemanent 3 | lernatonal Load Line Cece (1388) oaTODOIA | AOA | Canga Ship Safely Cendiaction Cereals | 0510-2012 | 14.08.2013 5 [Into Cass Coritaate TDADZVZ | THOS Story and oe ceric of te barge AA provided statutory and class certificates of the barge are considered valid at the time of accident (see attachmen). However, valid Certfeate of Nationality at time of departure is not made avaliable. MV. “AGNES WORLD no.1” Wea eres ‘Vale fem Vanoincogh 1 | Canicate of Rogistation EADIE | TEMES Z| Taran Tonnage Conese (T06G) Dro 2aT2 | Permanent [Intemational oad Line Catone (956) OFO5DOTE | 8.08207 -F | Cargo Ship Safty Rado Coniots OF ODOT |W. ‘S| ematanal Gl Pokiton Preventon Catala | G7. 05202 | 30.03.2017 | | Clasitcaion Carte ‘OFG52012 | SOUSA Stara oe crits of te tugunitSeemed ‘All provided statutory and class certfcates of tug are considered applicable at ‘he time of accident (see attachment), However, the Certicate of Registration that valid at time of departure is not made available. tlullot Barce [As noted in Cargo Ship Safety Construction Centfcste and Interim Class Cerificate (attached), the barge wes launched on 15 September 2012 from Nanjing Yonghua Shipbuilsing Co, China, Classification society (American Bureau of Shipping / ABS) has supervised during construction and issued Interim Class Cerificate on 19 October 2012. Mesnuile, Nautical and Technical Inspection Is conducted by Marine Inspector in China as the Principle of issuance of barge’s Cargo Stip Safety Construction Cerificate on 5 October 2012 Referring to sbove documents, at the time of accident, the structure's condition of the barge wes considered sill fulll the class and flag requirements (see attachment. 4. Hull and Machinery of Tuaboat ‘The RINA's Cerificate of Class n0.90325 noted that the vessel was built at ‘iyang Balsui Co. Lid., China and commisioned on 31 December 2008. Last ‘survey in term of Class Renewal was conducted on 30 March 2012 96, principle of issuance of above certificate. Refering to documents, at the time of accident, the stucture's condition and machinery’s installation of the vessel is considered sill full the class requirements (see attachmen). ra not 8 oun meneNo: 018 OSABNIZO:3 Date £27 November 2013 5. Navigation Equipment, [Al requiced navigation and communication equipments fited onboard reported in order. ‘6. Manning of Tusboat Noted from Crew List of and lisences of several oficers, the crew of “AGNES. WORLD no.1" on departure of Shanghai, China, viz. a Name Postion | Camperanay? 7 Ri Jeongwoo waster 12 | Chae Pung ‘Chat OFfear Wz 3 | Park Sana Ky 2° Oficer i © [Tee wndae Chief Engineer ws 3 Cha Jung RoR Engineer 5 6 | Selamat cg 7 [ Ras Way Omer 3 [ Resur Resale Cos : “Competenay rotate STOW TOTE Crew hg Meanwhile, refering to the International Convention on Standards of Training, Certificate And Watchkeeping For Seafarers (STCW), 1978, the requirement of officers in a vessel are 2 folous, 6No :018siaBNazots Date = 27 November 2013 Regulation Requirements andalory mininam requirement Tor conioaion of fice i ut | charge ofa naigation watch on ships of $0 grass tennage oF Mandate minimum requremont for earificalin af master and chief mate on ships of 500 gross tonnage ar mare Mendy minimum requirement for ceifcalon of oicers ir 3 | charge of a navigation watch and of master on ships of less ‘than 500 gross tonnage we Tobie: Minimum competency of deck department offcers ina vessel Based on STCW 1978 Chapter Il Master and Deck Department Regulation Requirement Mandatory minimum requrement Br Soriicaton oF Oars Wr charge of an engineer watch in a manned engineroom or designated duty engineers in percdically unmanned engine- Mandatory minimum requrvent for coricaon of chat engineer offcer and second engineer offcer on stips powered we [2 aymain propulsion machinery e 3.000 KW propulsion power or Mandatory _tinman requirement Tor_cetieaon of chit tye | seiner ofcer and second engineer offer on ships powered by main propulsion mactinery of between 750 KW and 3,000 KW propuson power Table: Minimum competency of engine departement ofcers ina vessel ‘Based on STCW 1978 Chapter. Engine Department Its considered that the vessel was manned with Master, Chief Officer and Chief Engineer which has competency that comply wth STW 1978, However, the competency of 2% Officer and 2" Engineer coud not be reviewed as ther cerficates were not made avaliable. Poe ts un sie,Wh ne :o1emsaancots Da :27Noenb 2013 ‘LGargo Al the time of accident, the barge was not loaded with any cargo. ‘8. Weather Conditions 2 Noted from Deck Logbook, from 27 November 2012 (departure dte) unt 40 January 2013 (arrived al Shekou, China), Master reported that mast of the te they encountered near gale weather condition and only several days that they experience moderate breeze weather condition. Seale | Description | Wind Speed | Wave Height 3 [cenietreae | 7101008 | 08-10mea [Modertebreeze | 10-20meters a P 20-30 8 | Gale 3440 rats Tel: Bevo cle wich commonly used desert caeion on Itcan be abserved on above table that most ofthe time, they encountered snprox 27 ~ 33 knots of wind speed and 4.0 ~ 5.5 meters of waves. '. "Bopha" isthe strongest tropical cycione thet hit Southern of Philippines and included as category fve (5) of super typhoon with wind speed reach 4175 my (280 kr), ryaera Plu 7: sation made by Jot Typhoon Waning Car (TWO) of USNavy and US At Free ect he pat Typhoon Bopha tefl es ‘The typhoon formed on 25 November 2012 at Pasiic Ocean (Eastem of Philippines) and moved toward the Philppines Islands then continued to ‘South China Sea. it crested major devastation in Philipines and some pat of China. The typhoon dissipated on 9 December 2012. however it stil alfectng the sea condition of South China Sea for several days.Wh vo. :o1@osaawmors Dale 27 Nove 2013 Pc sea ln ot Sth China Sa ‘The South China Sea ‘8 marginal sea thal is part of the Paciic Ocean, ‘encompassing an ares from the Singspore and Malacca Stats to the ‘Strat of Teiwan of around 3,500,000 square kilometers (1,400,000 sq miles), The area's importance largely results from onerthid of the ‘worlds shipping transiting through ils waters. The coastline is deep and known with strong current and high billows.Ne -DrB/OSiABNa03 Dale =27 November 2019, 10. Trading Operation ‘As mentioned in barge's Cargo Ship Safety Construction Cerificate, the vessel is allowed for the area of trade as stipulated in the Government ‘Regulation (PP) No.St year 2002 to grant saling within Near Coastal Voyage (Kawasan Indonesia), Meanwile, the tug s granted for Ocean Going, It is considered thatthe accident location is beyond the coverage of barge's ‘vading operation. ree ot sun ycotae, aOh No :o1aDSiABNI=D13 Dele: 27 November 2072 IV. DAMAGE FOUND Damage found as the followings: Ne) Finoines 7. Tow line Gur and vopey baween barges MIL 301 and Masada 18 was broken on several occasions ‘and barges reported bumps each ‘thor. As hell tug became lack ‘of tow tne, they called Infor fer assistance, 2 STARBOARD Paint erates and dentations with various size between 2003600 mm 1 2,000x1,500 mm wore found on sie shell of starboard side 3 PORT Hole and eracke wth size approx. shal of pox si, 4 “Boat Paint erates and dentations wit ‘various size between 3004800 mm || © 1,000,500 mm (including ender Plat) were found on sie shel of pat side I RECOMMENDATIONS: | Nessa tow to nearest part | Necessary renew bridle wires and tow ropes "Crop damage: renew pate ncluce | nocessary frames and brackets; sandblasting and painting, pp10X. 826 2,000 x 1,500 12mm "Crop damages renew plate inluds ‘eceesary frames and bracket; | sanaoiastng: and parang | approx size 500 x 1,000 x 12mm Cop damage: renew pat nas necessary rames and brackets; | sandbasting; and painting approx. size 4,000 x 85,000 x 12mmOh Rear ‘Surveyor’ note(s): |. When surveyed, the barge was afloat berthing slongside other barge which made olfeut to identity the damage. Detail extent of damage con be observed # only the barge on dockyard Temporary repair was effected to the barge. \V. GAUSE OF DAMAGE Referring tothe sbove explanation, the damage was reasonably ativutsbie te: The Barge "MIL 301" ané Barge "MASADA 18° bumped each other due to ‘sober towing arrangement ster experiencing self relessed and breaking of ‘owlines repeatedly ‘See chapter I. Statement of Accident 23No :o1ssiaBnva079 Date = 27 November 2013 Vi. ESTIMATED COSTS OF REPAIR Estimation of cost of repsiris enumerated 2s follows 4. Towage to safer and nearest port = Hire tug approx. 6,000 HP (approx. 3 days) incl fuel + Pilot service at port ares + Harbour tugs essist at port area TOTAL Tinregionof ~——S~S~S~*~S~S~S*«SB TSDC (One hundred and fity three thousand United State Dollars) ‘2Temporary Repair = Temporary replat to holes and cracks = Re-new wire bridles TOTAL 2in region of (Four thousand five hundred United State Dollars) 3. Permanent Repait A. General Service = Tugs assist and plat service + Mocringlunmecring = Floating charges approx. 13 days Openiclose manhole and free gas Fie ine and fre guards + Garbage disposal ~ Staging ~ Ewness ofwork ‘Subtotal A approx Rp. 63,000,000 aDO, No sorspsnennanrs One 2 Nove 2018 B. Re-plating Relating and re-raming approx. 15.000 kg Lest ing annex. 270 wy ‘Subtotal B approx Rp 36,000,000 ©. Class Survey + Qucasional Glass sunveyfee ___ Subtotal C approx Rp 30,000,000 TOTALSinregionof ~—~—~—~—~—~—~S*S*«&@ «800,000. (Sb hundred and twenty eight milion Rupiahs) Surveyors note: The above estimation is excluding port dues at Shekou, China, Vil. CONCLUSION Having reviewed the whole explanation, we came to the conclusion that the ‘accident was due to: The Master of “Agnes World no.1" was not aware to the nature and consequence of surrounding ares and prevaling weather condition, which leaing to the barge to experience breaking of towlines on mutiple events, Poe oh ah somata, Fyve sewoannwrs @ bee atm 8 ‘This report is submitted without prejudice to the terms and constions of Up Attending Surveyor, Principal Surveyor, oe ABsahat panggabean From: Richard Kuok Sent: Friday, March 15, 013 436 PM Ter fayasution@jasindonetcom ce tia@jsindonetcom: sah panggabeanwliem@marineclins-offes com buciearyonoasransasindo.ca st subject: RE: SALVAGE CLAIM OF BARGES ‘ASADA 18° AND “ML 201° ‘Our Ref: RKI20130040ny Dest Pak Firy {refer to my email of 14 March 2013 and set out bereunder my comments on the quantum of settlement ‘offer which you may wish fo consider. The breakdown ofthe claim for which Shenzhen Farsight is presently prepared to accep in setlement of “hei claim agains the barges are as follows SiNo. 1 =Port 563,572.00 ‘The breakdown ofthis item i as follows:- LL Ageney = ¥5333200 12. Pilorge = ¥80,000.00 1.3 Towage ofthe 2 barges within the harbourport +¥450,240.00 by harbour tgs 563,572.00 ‘Whilst items 1.1 and 1.2 have been apportioned between the 2 barges and the tg “AGNES WORLD NO, [Pthere is however no documents in support ofthese items. Similarly thee is no document in support of ne towage claim. Inthe circumstances I willbe asking Shenzhen Fa-sight to provide he vlevant. supporting documents. ‘No.2 MIL 301 — mg charges = #1 458,200.00 ‘This item comprises ofthe following: 2.1 Tug charges fom Shekou to Hainan and back = ———_-¥550,000.00, to Shoko 2.2. Standby st Hainan = ¥113,400.00 Tug charges trom Hainan to Qing Lan Port for ——_-¥712,800.00 supply and installation of new towing ropes, and return to Hainan waters 2.4, Travelling expenses of foreman : +¥60,000.00 ‘Shekow Hainan, hire of service boats and 6 ‘workers to install sew towing ropes25. Supply of wowing ropes . Asitems 2.3,2.4 and 25 relate to the tug, They should befor the account ofthe tug, ‘These items amount to 794,800.00. ‘As the amount claimed under items 2.1 and 2. isin accordance withthe Towage Agreement, there isn0 basis to object to the quantum thereof In the circumstances we take the view that this item should be fr ¥663,400.00 |§INo. 3 = MASADA 18 — tug charges -¥1,322.000,00 “The breakdown ofthis item is as follows:- 3.1. Tugeharges of“HAISHAN" at¥2.7 perhour - ¥1,215,000.00 per horsepower x 75 hours stating fom 0230 hours on 7 January 2013 3.2. Traveling expenses of foreman fram Shekou ¥60,000.00 to Hainan and hte of 2 service boats with 6 workers to supply and install new towing ropes 33. (deleted) 3.4 Supply of lashing ropes for barges (the : +¥22,000.00 reference to tavwing ropes is income) ¥41,297,000.00 Inout view tem 32 should be forthe account of Donghee, "ys repars tem 54, no supporting documents have yet 0 be provided, We wil ASk Shenzhen Far-signt 0 srovide the relevant supporting documents ‘As for item 3.1; the eae stated is fr replacement of cable and not for the salvage or recovery ofthe barge “MASADA 18". There is also no evidence thatthe tug “HAI SHAN” was thoughout from 0230 LT on 7 January 2013) involved solely inthe rescue of the barge “MASADA 18". We will ask Shenzhen Far-sight to provide copes ofthe bridge log book ofthe “HAL SHAN". We will algo atk Ciesco to et us have copies ‘of the bridge log book ofthe tug “AGNES WORLD NO. 1” SiNo, 6 Rept charges - ¥10.300,00 ‘This isin respect ofthe costs ofrepais tothe barge. There are no supporting documents. However in view ‘of the negligible amount, we would suggest that this item be accepted. Nonetheless er tactical purpose, we ‘wll ask Shenzhen Far-sight to provide documentary evidence in support thereof. SiNo. 7 — Barge repair charges - ¥12.200.00 (Our comments under SINo. 6 are equally applicable for S/No. 7.‘No.9 = Resting charges un sh 2013 1 820.000 0 pr vessel per lay = ¥7.940,000.00, We would suggest that you maintain that no berthing charges are payable but are prepared to consider sattement proved thatthe amount to be psd is reasonable Mr Gordon Li, Shenzhen Far-sight’s lawyer, telephoned me yesterday advising that Donghae is agreeable to ‘pay the amount apportioned to them (see Annex C-1 of our email of 14 March 2013) i.e. USD463,408.33 {lus addtional berth charges of #20,000.00 per day ftom {4 March 2013), proved that we pay the ammount which Shenzhen Far-sight has spportioned tothe 2 barges (i.e. USD526,207.53 and [USD486,901.07) plus berthing charges of $40,000.00 per day from 14 March 2013. 1 responded that he ‘suid apportionment is incorrect, that we ae challenging various items of claims and that I would have take instructions before reverting. [Notwithstanding Mr L's above advice we tke the view that you should proceed to make your own oe. Pending Mr Li's reply to our request for documents, we would suggest that you consider an nti fump sum offer not exceeding ¥2,704,872.00 or USD450,786.00, a breakdown whereof isa fllows:- SIN. 1 Port charges : 563,572.00 S/No. 2 Tug charges (MUL 301) : '¥663.400.00 5. SINo. 3 Tugcharges (MASADA 18) - +¥685,400.00 4 SiNos. 6 &7 Repair charges : 322,500.00, 5. Berth charges upto 13 March 2013, ¥592,000,00, $2,816 872.00, about _USD4S4,335.00 ‘As to berthing charges after 13 March 2013, we would suggest thatthe offer be not more than ¥12,000.00 perday. Whilst we do not anticipate that Shenahen Farsight will aeept our itil offer, we see no harm in making such an offer as that would give Shenzhen Far-sigh an indication that they should adjust their claim in order ‘hat an amicable settlement ean be reached. “urther if necessary, the offer can subsequently he increase. ‘We would also add tat itis necessary for dhe assured to ensure thatthe barges ar propety repaired, surveyed and cetfiod as fit and seaworthy to be towed to Banjarmasin, The assured would also have to range a suitable tug forth towage ofthe 2 ages after they are released by Shonzhen Far-sight Since delay is not covered under your policies, we take the view hat the assured have to bear the beth and Incidental charges after the 2 barges are released ‘tis unlikely that there would be aquick settlement. As such, we would suggest that you make arrangement forthe issue of LOU by a PRC underwriter on your behalf. ‘We await your instructions. Ifyou fel that a meeting is necessary, please let me know, ‘Kind regards Richatd Kuek GURBANL& CO ‘Advocates & Solicitors» Notaries Public“ Commissioners for Oaths Fe]MARINE CLAIMS OFFICE OF INDONESIA “Marine Claims Advisory & Average Adjusting 7 Jerry 2014 (ur ret: 000SRevLasukalepis PT, ASUKA BAHAR! NUSANTARA Wma Gating Pema, Tows 8, 2 Fear Bouvard Raa a 15 olga Gating ian 12240 ‘tn eM Hy Suroco ie, Siefary Dear Sis, ML 301" Wie refer fo your survey repot No, O1SABNDU2O1S dated 27" Novenber 2013 in respect of he above casuly and hal be mst raf you woul ia shave your adioes as flows: SALVAGE OPERATION 4, Please cul you confi ta the barge was in a positon of pel ater sho dite aay on 19" December 2012 and the senices rendered by ig HA SHAN” to tow he bage to Stanzhen China was necessary forthe common sey. 2 Te barge Ovness succesful nego wih SHENZHEN FAR SIGHT SHIP SERVICE LTD, and ogeed on a ghbal stiement of USS {,200.000.00 fo both barges MIL 301 and "WAERDN 30" (ox ol Sin of USE 4.559.682 70 20 por stoned cost whih nas ‘svage charges and port dues inaued duragdetenten al Shenzhen, Chia. nhs respec ‘we shal be ost rtf you woul endorse the above negotaed semen sb aad reasonable ad also aise wheter tis wholy strbutable tothe subject casual, respect of age" ML 30 (ne have win separa elie youin respect of barge "MASADA 307) 3. Please ecu you aise he Sound market va ofthe barge in January 2013 a Chia, DAMAGE REPAIR 4 Please endorse. PT. DUTABAHARI MENARA LINE's quotation dated 7 November 2013 for ‘ROZ71. 256460 in respect ested costs of gereral sence charges, reply, paing ard ‘damage eps a beng fr ad reesonble and aise voter hoy t's whol abate the subj casualty, PF.MCO PRIMA INDONESIA nagDAMAGE REPAIR (ont) 5. Please esate he ous of suphng snd appjng oe (1) cos of primerenscorosv pit to ‘he new ndenate shl ple sald in way of damaged aes. 6. Plas caniem tal the damaged plating had no residual vale ao tling no aecount he cost of spas 7. Please could you aise 1 Sound matteo barge"MUL 302s at Indonesia nu 2013, | mart val of barge "ML 30 n damaged contin, a nanesa in July 2013. ‘Wie ok forward to ecsirg your usual poetry aWi, PT. ASUKA BAHARI NUSANTARA (ABN) FACSMILE MESSAGE No. 8 jeMABNV2014 Date 21 January 2014 page(s): 2+8 Company: PT. MCO Prima Indonesia atin ‘Mr Sahat Panggabean, S.H., ICAP. From H, Harry Sur0so / Sistairy er TORTS rata ara Per at te ‘Subject “MUL 301% 12.2012 Towing rope. nied awe th China Sea Dear Sir, reference to your letter no,0005/RevLasuka/sphhs dated 7 January 2014, regarding above captioned matters, we advise as follows. 1, We confirm that the barge was in posiion of peril after she drifted away on 419 December 2012 and services rendered by tug "HAI SHAN" to tow the ‘paige to Shenzhen, China was necessary for the common safety. 2. We approve SHENZHEN FAR SIGHT SHIP SERVICE LTD.’ invoices for only NY 1,159,100.00 in respect of costs of enlvaga charges ancl for anly CCNY 12,200.00 in spect of costs of temporary repair We could not advise the sum of port dues as the barge was in state of detention, However, based on survey and above invoices, we could advise that the barge was berthed at Shenzhen for 137 days, starting from 7 ‘January 2013 until23 May 2013 (see invoices) 3. We advise the sound market value of the barge in January 2019 at China was approx. in range Rp. 14,700,000,000:00 until 1,200,000,000.00. 4. We advise PT DUTA MENARA LINE’s quotation for only Rp, £514,030,000.00 in respect of estimated costs of general service charges. replating, painting and damage repairs which attributable to the subject ‘casualty, as being fair and reasonable, ssa Gabo rama Tower #2 ftoor No. 15 Boulseand Rey, Kelp Gang — Sahara 14240 INDONESIA ‘phone 001 aaioas pain) Pos ieteatarctWe estimate no cost of supplying and aoplying one (1) coat of primerfanticorrosive paint to underwater shel pate. Regarding scrap of materials, it can not be repossessed by the assured and sold outside for scrap since these scraps become the property of shipyatdlcontractor. Generally this ststement is witten in the agreement of ocking We advise: ‘Sound market value of barge "MJL 301" as at Indonesia in July 2013 was approx. in range Rp. 14,700,000,000.00 until 15,200 000,000.00 ‘Sound market value of barge *MJL 301", in damaged condition, as at Indonesia in July 2013 was approx. in range Rp. *4,200,000,000.00, until 14,700,000 000.00. ‘We trust the foregoing willbe of assistance. Best regards, fas ‘Suroso, Principal Surveyor 2