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Taken from Lloyd's List article, published Monday May 1998

Kasel a kingpin in the salvage world

Despite its feast or famine nature and the harsh economic realities faced by operators, salvage still has a swashbuckling image. Asia Editor EDWARD ION spoke to one Singapore practitioner carrying on the tradion.

RAINER Kasel's story could come straight from the pages of a Joseph Conrad novel.

The German salvage man, who has made Asia his home for more than 20 years, has an intimate knowledge of the seas and coastlines of southeast Asia the like of which Lord Jim himself would have been proud.

From his Singapore base, Mr Kasel has worked on some of the most notorious and difficult salvage operations the region has produced in the past two decades.

The interminable logic of market force, the need for efficiency and strict contract compliance means today's salvors tend to be a corporate-faced lot with shareholders to please and bank balances to dig into when ships fail to get into difficulty.

But with his immense knowledge of southeast Asia, his contacts, the respect his expertise commands and, above all, his passion for the salvage business, Mr Kasel manages to compete with the biggest and best.

And on the evidence of the past couple of months, he is now at the top of his form. Last month his company, Kasel Salvage, completed one of the most difficult salvage operations seen in the region for a long while.

It took him and his team of 100 men just 63 days to salvage the 6,041 gt Indonesian passengership LEUSER after she sank off Samarinda, north of Balik Papan, Borneo, in November.

The four-year-old vessel was struck by a log-carrier just after leaving Samarindo and sank in 16 m of dark, muddy water with strong currents after 30 hours. The 1,000 passengers on board escaped without injury.

The owners and their lawyers set some onerous clauses in the salvage contract. They included a no-cure, no pay basis with the stipulation that the salvage should be completed within 100 days if the salvor was to receive his payment.

Other salvors looked at the offer, including Smit and Semco, but it was Kasel Salvage which clinched the contract despite the competition. Mr Kasel told Lloyd's List: 'Everyone said we were mad to try to do it. It was a long and technically difficult salvage, one of the most difficult I have ever worked on.'

The work included carrying out collision repairs, construction and erection of cantilever arms, the laying of anchors, uprighting and patching of the LEUSER hull as well as pumping, dewatering and towage preparations.

Mr Kasel says the 'no cure, no pay' clause concentrates the minds of salvors wonderfully.

'There are always times when you wake up in the middle of the night and wonder 'what if we cannot do it within the contract time?' But I had every confidence that we could do it and, in fact, it all went remarkably smoothly,' he said.

For a company like Kasel Salvage, the stakes are incredibly high on a contract like the LEUSER. Unlike the big salvage players, Mr Kasel and his team rely on their ability to weigh up a salvage modus operandi as fast as possible. Flexibility, cost control and team work are of the essence.

He said: 'Our outlay for such a job is enormous. For a start, we needed to charter a 300-ton floating crane for two months and there were two pulling barges and four tugs on charter for the whole period.

'We had 12 divers and numerous other technical people involved. In all we had 100 people on the job including Indonesians, Americans, a Canadian and myself.' Mr Kasel, who graduated from the Smit company before going out on his own in Asia, says that relationships are all-important in salvage work in and around southeast Asia.

 

 

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He said: 'I rely on my contacts around the region, especially in Indonesia, for this work, because so much is taken on trust and connections here. A stranger just cannot come in and expect to make an impact in this region overnight.' The LEUSER salvage was done in conjunction with Mr Kasel's Indonesian partners, PT Armandi Pranaupaya, Jakarta-based salvors.

The entire running cost of the salvage was taken on by Kasel Salvage on the proviso that the LEUSER would be refloated and on her way to a repair yard within the 100-day period.

'If we had failed, I would be somewhere down in Argentina now, very far from Asia and the salvage business,' he joked.

The LEUSER, which was built at the Meyer Werft yard in Germany in 1994, was struck on her starboard side and sustained a serious gash. She was left laying on her side with a 75 degs. port list in about 16 m of dangerous water.

The size of the casualty becomes clear when considering the size of the insurance claim now being processed by Indonesian and London marine underwriters.

Mr Kasel said he had no idea about the size of the LEUSER CLAIM. But Lloyd's List understands from insurance sources it could be in the region of USDollars 25m. The LEUSER hull and machinery cover is for USDollars 42m.

The salvage expert runs Kasel Salvage from his home in the middle of Singapore's bustling central business district, high above in International Plaza in the hub of the local shipping community.
He retains a small dedicated staff in Singapore on a permanent basis, most of whom have been with him many years. A modest but determined professional, Mr Kasel said the LEUSER salvage gave him personal satisfaction.

'It showed that Kasel Salvage can compete with the big boys in terms of major salvage contracts. It also demonstrated we can react quickly, we are flexible and that we have a level of expertise which is second to none in the region.

'We are tight on our costs and we are highly cost effective,' he added. The feast to famine aspect of salvage is something Mr Kasel has learned to live with during his time as a salvor.

He said: 'Even when there is no major work on, we are always busy either ticking over or looking for other things to do. We do not sit around with our feet up!'

What of the future after this latest success?

'I am 54 now and salvage does not get easier. I still enjoy the business a great deal and there is a huge sense of satisfaction to see a job well done.'

But, he adds with a twinkle, he may just get a hankering for that ranch in Argentina one day ..


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