DMS YIR

www.dmsmaritime.com

Year in ReviewHighlights 2010/2011

DMS Maritime Year in Review – Highlights 2010/2011 11

Chairman’s Message - New Horizons 2

CEO’s Message - Expanding Capabilities 2

DMS Maritime 3

Key Projects 4

Nationwide Maritime Services 6

Total asset management 6

Vessel build and modification 8

Vessel services and charters 10

Engineering services 12

Port services 16

Specialist services 18

Maritime training 18

DMS Maritime and the Community 22

Our Vision 24

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Year in ReviewHighlights 2010/2011

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CEO’s Message

Expanding capabilities

As we transition into our next decade of partnership with the Navy, DMS welcomes new service challenges under the Fleet Marine Services Contract. To meet them, and in anticipation of emerging customer needs, we continue to build our expertise. DMS’ service capabilities are expanding as we serve a growing project portfolio.

In 2010, DMS won a contract for managing apprehended vessels on behalf of the Australian Fisheries Management Authority and, in 2011, we became authorised agents for supplying and servicing United States Marine Incorporated RHIBs and Zodiac life rafts. DMS also signed the Pacific Patrol Boats Contract, becoming the maintenance provider for 19 patrol boats supplied by Australia to Pacific island nations. Additionally, DMS was selected as the preferred tenderer for the in-service support of the Australian Customs and Border Protection Service’s new fleet of Cape Class patrol vessels.

Our ongoing projects include comprehensive in-service support for the Navy’s Armidale Class Patrol Boats which safeguard Australia’s borders. We’re also the exclusive Australian repair agent for naval gun mounts and optical systems supplied by Rafael Advanced Defense Systems.

While pursuing our growth strategy, DMS aims to live up to our reputation for service excellence and reliability by putting our values – entrepreneurship, service excellence, delivering on promises, building trust and respect – into action every day.

Greg Hodge Chief Executive Officer, DMS Maritime Pty Limited

Chairman’s Message

New horizons

Among DMS Maritime’s many achievements during 2010/2011 was the signing the 10-year Fleet Marine Services Contract and being selected as the maintenance provider for Australia’s Pacific Patrol Boats Program.

DMS has delivered 13 years of Defence support under the Port Services and Support Craft Contract. By the end of the Fleet Marine Services Contract’s term, the company will have provided Navy with maritime services for a generation. Winning the contract not only reinforces DMS’ reputation as Australia’s leading maritime services provider, but opens new horizons for the company’s competitiveness. Fleet Marine Services calls upon increased project management and asset acquisition capabilities in addition to the operational support we have been providing uninterruptedly since 1997.

The Commonwealth Pacific Patrol Boats Program provides patrol boats to Pacific island nations. DMS will provide maintenance and refits for the vessels, helping to build local engineering skills and self-reliance. This will increase the company’s operations in Cairns where we already support the Armidale Class Patrol Boats and the Customs patrol craft.

Already a strategic partner to the Australian Defence Force, DMS has also cemented its place in the commercial maritime sector. With the people, assets and reach to guarantee service delivery, DMS is earning the confidence of an expanding customer base and bringing the combined benefits of marine engineering expertise, Defence experience, and overall fleet management skills to an expanded customer base.

John Lord AM Chairman of the Board, DMS Maritime Pty Limited

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DMS Maritime

DMS Maritime Pty Limited (DMS) is the largest naval and commercial maritime services provider in Australia. We employ people across the country, have facilities in every major Australian port, and maintain a nationwide technical support network. We operate and maintain our own fleet and support hundreds of Navy-assigned and commercial craft. Our support extends throughout the south-west Pacific, the Arabian Gulf, North East Asia, Hawaii and North America, to wherever customer vessels operate.

Serco Australia Pty Ltd and P&O Maritime Services Pty Ltd formed Defence Maritime Services Pty Limited in 1997 to service the Royal Australian Navy’s Port Services and Support Craft Contract. Since then, the joint venture company, now known as DMS Maritime, has been growing its reputation, capabilities, infrastructure and project responsibilities.

DMS continues to build lasting relationships with an increasing range of commercial, government and Australian Defence Force customers. While serving several major, long-term contracts, we are forging inroads into the offshore sector and progressing operational, organisational and financial goals. We continue to strengthen existing partnerships with the Royal Australian Navy, the Australian Customs and Border Protection Service and the Australian Fisheries Management Authority. We aim always to reinforce our reputation for service excellence in performance-based contracts. Our ability to assess, accept and manage risk is key to our success.

With corporate headquarters in Sydney and operational bases in Cairns, Darwin, Sydney, Dampier, Perth, Western Port and Jervis Bay, DMS exploits shared services and nationwide resources for greatest value and efficiency.

DMS’ operational and technical expertise consistently

meets demanding specifications. We are adept at exceeding

performance indicators, our standards being driven by proven

management systems.

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Key Projects

Comprehensive Navy servicesDMS was formed in 1997 to fulfil the Port Services and Support Craft Contract. Under the 12-year agreement, DMS provided support activities for the Navy, ranging from basic recruit sea training to complex fleet exercises and submarine rescue.

In reflection of our ability to complement Navy operations, the Port Services and Support Craft Contract’s scope increased and its term was extended. Within 12 months of the contract’s start, our services provided workforce skills development and a major capability upgrade. Throughout the term, our flexible support enabled the release of Navy personnel and Defence civilian staff for employment in other duties. Within two years, the Defence Commercial Support Program audit recorded that DMS achieved 125% of required contract services for 75% of the pre-contract cost.

The Navy’s satisfaction with our services was expressed unequivocally when, in September 2010, the Commonwealth Government contracted DMS as the prime contractor for delivering Fleet Marine Services under a 10-year agreement which succeeded the Port Services and Support Craft Contract. Under the Fleet Marine Services Contract, we continue to support Navy exercises, fleet concentration periods, clearance diving operations, submarine rescue, and torpedo practice; to provide port services, navigation and recruit training; and to maintain vessels and harbour craft.

The Fleet Marine Services project demands extensive in-service support and marine project management. As a result, we are expanding our shipbuilding, engineering and technical expertise to meet the demands of additional maritime services, a significant

example of which is a vessel build and acquisition program. Under the Contractor Asset Acquisition Program, DMS will introduce new and replacement vessels to the Navy’s fleet and, with them, total asset management methodologies. This will integrate the vessels’ purpose and operation with design, procurement, maintenance and disposal, achieving best value and optimal performance.

Naval patrol boats: total asset managementIn 2003, the Australian Government selected DMS as prime contractor for the delivery and through-life support of 14 Armidale Class Patrol Boats (ACPB). In November 2007, we handed over the 14th and final ACPB to the Defence Materiel Organisation, concluding one of the most successful vessel construction programs ever conducted in Australia for Defence. The patrol boats work the entire Australian Economic Zone, up to 200 kilometres off the Australian mainland. Ten patrol boats are based in Darwin and four are stationed in Cairns. Two boats are forward deployed to Dampier from Darwin. Under the 15-year contract, DMS continues to provide comprehensive in-service support for the ACPBs. Our total asset management is delivering enhanced operational capabilities, supporting efficient naval personnel management, reducing procurement costs, and decreasing total expenditure throughout the vessels’ life cycles.


Customs patrol boats: exceptional performanceUnder the Bay Class Australian Customs Vessels Maintenance Service Contract, DMS Maritime has been managing the maintenance and support of the Australian Customs and Border Protection Service’s eight 38-metre vessels which patrol Australia’s coastline and territories. The six-year contract will be followed by the Cape Class Patrol Boat Contract. DMS has been selected as preferred tenderer to provide through-life support for this new patrol boat fleet. As we have done for the Bay Class Vessels, when contracted DMS will keep the Cape Class patrol boats at maximum operating capability throughout their yearly patrol cycles. The in-service support will continue to be based in Cairns where DMS conducts the fleet’s major refits, dockings and refurbishments. DMS’ systems approach will continue to reduce operating costs and ensure the vessels maintain exceptional performance.

Exclusive Australian agent DMS is Rafael Advanced Defense Systems’ in-country repair agent for the Rafael Typhoon and Mini-Typhoon close-in weapon systems and the associated Toplite electro-optic surveillance and targeting system. Rafael gun mounts and optical systems are being fitted throughout the Royal Australian Navy in surface combatant, amphibious and afloat support ships, and in the Armidale Class Patrol Boats. We have a purpose-built maintenance facility in Darwin which incorporates a clean room and test rig for electro-optic surveillance repairs and testing. DMS maintains full repair agent status for the Rafael systems and a growing technical team, the only one in Australia certified to repair Toplites.

Vessel caretaking In July 2010, DMS was selected by the Australian Fisheries Management Authority to provide vessel caretaking services in Darwin. The contract, which will run for up to 10 years, manages apprehended foreign fishing vessels and their catches at AFMA moorings. Our job is to safeguard the illegal vessels apprehended by AFMA, the Australian Customs and Border Protection Service, and the Navy. We provide 24-hour monitoring, maintain vessel machinery and refrigeration, conduct regular onboard inspections, and ferry officials, such as AQIS representatives, to the vessels.

Pacific Patrol Boats support In May 2011, the Commonwealth selected DMS as the maintenance provider for Australia’s Pacific Patrol Boats Program. The program provides 13 Pacific island nations with patrol boats to police their marine territories. DMS will provide technical, engineering and logistics services for 19 patrol boats and refits for nine of those vessels. The services will extend the vessels’ operational lives while enhancing participating nations’ project management and engineering skills. By providing high levels of vessel operability and building the island nations’ ability to enforce their 200-nautical-mile exclusive economic zones, DMS is bringing lasting benefits to these Pacific neighbours.

“Successful delivery of services is only one part of DMS’

performance. Partnership with customers means going the extra

mile. We have the skills, the people and the will to fulfil out-

of-contract needs, respond to urgent requirements, and provide

innovative services that improve day-to-day operations.”

Ian Poulter, Chief Finance Officer and Company Secretary

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We specialise in acting as prime contractor for vessel build, acquisition and through-life maintenance projects. Cradle-to-grave vessel services deliver whole-of-life benefits, such as integrated design and maintenance and vessel operations. This reduces vessel down time, streamlines inventory procurement, and decreases operating costs. Our in-house naval architects and marine engineers work with ship designers and contractors, and ensure our engineering practices comply with customer standards, such as those of ABR 6492 Navy Technical Regulations Manual.

Nationwide Maritime ServicesTotal asset management

DMS invests in qualified people and fit-for-purpose infrastructure. Our role-adaptable vessels and support craft anticipate a range of service needs. We build expert teams to support evolving customer needs. In combination, these assets deliver optimal maritime services. We aim to maintain high service standards, reduce costs, and continuously improve services for our customers.

Our integrated logistics management achieves minimal disruption to customer operations. We maintain our own warehousing, inventory and supply chain management. These integrated systems are supplemented by a network of proven suppliers, all managed through DMS’ supplier qualification program.

Our comprehensive project management competencies support vessel design and build, refit, modification and through-life support. Building safety cases from day one, we ensure vessels achieve specified performance at design, build, and test and trial phases. We meet all international standards, comply with SOLAS, MARPOL and Classification Society requirements, and operate to ISO 9001 and ISO 14001 for quality and environmental management. Our cost-effective solutions take build and maintenance projects from specification and development through to disposal. By integrating vessels’ maintenance planning with their design, and providing through-life support and configuration management for the vessels we build, we ensure their ongoing operational efficiency and as-specified performance.

Our total asset management expertise incorporates the following services, available separately and in combination as elements of integrated acquisition and in-service support programs.

• Vesselbuildandmodification

• Vesselservicesandcharters

• Engineeringservices

• Portservices

• Specialistservices

• Maritimetraining

“Much of our business centres around long-term, fixed price,

performance-based contracts. So that we can deliver the best

possible business and contract delivery outcomes, we are focusing

on elevating our project management skills, processes and practices,

and also improving our related systems and support infrastructure.”

Harley Tacey, Chief Operating Officer


Nationwide Maritime Services

The real Sea Patrol HMAS Hammersley, which features on the television drama, ‘Sea Patrol’, is a fictional member of a real-life fleet – a fleet delivered by DMS. As prime contractor for the design, construction and in-service support of the Navy’s 14 Armidale Class Patrol Boats, DMS is delivering total asset management for a fleet that is protecting Australia’s Exclusive Economic Zone. DMS’ comprehensive 15-year through-life support is an example of the coherent approach of total asset management. It maximises vessel operational availability and integrates the vessels’ design, build and in-service support to enable cost-effective operations. By aligning the ACPBs’ planning with their mission, total asset management is enhancing the vessels’ operational capabilities and decreasing total expenditure over the vessels’ lives.

In conjunction with Austal, DMS has developed a product baseline update program for the Armidale Class Patrol Boats. The Post Acceptance Modification program, or PAM, delivered operational enhancements and technical improvements, ensuring the ACPBs achieved operational release (see also page 13) and continue to operate at optimal capability.

Integrated asset delivery and maintenance On 17 September 2010, DMS signed the Fleet Marine Services Contract with the Commonwealth of Australia, concluding three years of tender preparation and contract negotiations. Service delivery under the new contract began on 1 October 2010, transitioning the Navy’s maritime services from the Port Services and Support Craft Contract to new management arrangements under the Fleet Marine Services Contract. These new management arrangements deliver expertise to execute a program of shipbuilding and vessel acquisition.

Over the next two to three years, DMS’ Contractor Asset Acquisition Program team will acquire new vessels on behalf of the Navy and deliver services through long-term vessel charters. The new vessels will include a submarine escape gear ship and a submarine rescue gear ship, a large and a medium ASD harbour tug, a small harbour tug, four self-propelled water/fuel lighters, five harbour support craft, a recruit sea familiarisation training ship, and one consort vessel for Navy training in Darwin. Over the next 10 years, the team will acquire 110 replacement vessels, including RHIBs and small inflatable boats.

DMS’ specialist acquisition team will drive the Contractor Asset Acquisition Program, from development of specifications for each vessel through to their introduction into service. The vessels will serve the Navy for another generation, their longevity and performance being assured by DMS’ ongoing in-service support.

A 21-metre azimuth stern drive (ASD) harbour tug medium (middle, above) will join the Fleet Marine Services fleet in Darwin and a 23-metre ASD harbour tug large (bottom) is destined for service in Western Australia.

The submarine rescue gear ship which DMS will acquire for the Fleet Marine Services Contract.

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Nationwide Maritime ServicesVessel build and modification

Load-bearing tests verified that Standard’s new davit could hold 1.5 times the maximum working load of the FRC equipment for a specified period.DMS installed the Noreq davit during

Standard’s major docking.

“DMS’ matrix management enables our specialists to share

information across projects. This achieves consistency of

performance, enhances operating efficiencies, provides surge

capability, and is cost-effective. Our mature processes and proven

expertise provide value-for-money, optimal solutions for customers.”

Jon Clemesha, General Manager Business Solutions

DMS’ experience in vessel acquisition and maritime systems procurement spans the vessel’s life cycle, from requirements analysis, specification, design, construction and trials, to acceptance, delivery and through-life support. We design and build vessels to provide specific capabilities, such as tugs, work boats, lightweight utility boats, torpedo targets, fuel barges, and offshore support vessels. We modify vessels to fulfil specialised roles in submarine rescue, offshore exploration, geoscientific and marine research, deep ocean recovery, cable laying, seamanship and navigational training, and offshore platform supply. DMS’ engineers and naval architects provide responsive solutions to meet industry needs.



Special purpose modifications

To fulfil her primary function as a Special Purpose Ship (SPS), and to meet International Convention for the Safety of Life at Sea requirements, Seahorse Standard must carry a fast rescue craft, referred to as an FRC. Following Seahorse Standard’s docking in September/October 2010, DMS modified her deck to accommodate our newly acquired Noreq 650 FRC. Bureau Veritas witnessed the functionality trials and certified the davit. SPS modifications, carried out in December 2010, have equipped the vessel with greater levels of safety and new capabilities.

Expertise and valueIn addition to our own Australia-wide specialists and engineers, we maintain a technical support network of proven Australian suppliers. The efficiency of our flexible organisation is paralleled by low overheads. Being free of the high costs of dockyards, we are able to offer value-for-money repair services. Our experience in long-term, fixed-price, performance-based contracting records consistent success in reducing costs while maintaining exceptional service delivery.

Partners in building maritime capability Continuous improvement is part of our process. Joint planning and performance review enables us to identify opportunities to increase efficiency, reduce costs and exceed service expectations. Web-based applications give our customers online access to scheduling, asset and risk management information, and our performance against defined KPIs, invoicing and payment processing.

Seahorse Spirit’s reinstatement

In February of 2010, DMS modified Seahorse Spirit’s deck, restoring the multi-purpose vessel to its original configuration as a rig tender. We sheathed the back deck in timber balks, pulled tugger winches out of storage ashore, and loaded the deck store with chain binders. Within a week we had completed work that enables us to provide offshore support to oil rigs and floating production, storage and offloading vessels.

Alongside the wharf at Stony Point in Western Port Bay, DMS’ engineers, ship’s crew and contractors modified Seahorse Spirit for offshore supply work.

“DMS aims to be recognised

as the ‘centre of excellence’ for

comprehensive maritime fleet

management, operations and support,

nationwide and in the region. We take

pride in good corporate citizenship,

which involves acting ethically as well

as in compliance with regulations. We

aim to minimise environmental impact

and maximise workplace safety.”

Christian Ford, Commercial Manager

and Legal Counsel

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Nationwide Maritime ServicesVessel services and charters

Our seagoing team includes qualified personnel up to Master Class 1 and Engineer Class 1. Our crews are available to operate customers vessels, and our fully-crewed fleet is available for charter. DMS’ vessels, up to 3,900 tonnes displacement, include offshore support vessels, barges, work boats, tugs, dive support vessels, security patrol boats, general purpose harbour vessels, and fuel, crane and stores lighters. They support a range of inshore and offshore tasks, including submarine support and rescue, cable laying, marine research, oil and gas platform supply, dredging, subsea and marine engineering, ammunition support, torpedo recovery and target towing. Our vessels act as training platforms and deploy remotely-operated vehicles and side scan sonars.

Offshore and on track2010 saw DMS enter the offshore oil and gas market. For Origin Energy, Seahorse Spirit supported the upgrade of the Yolla A gas platform, about 100 nautical miles south of Western Port, Victoria. Spirit also served Roc Oil’s floating production, storage and offloading (FPSO) vessel, Crystal Ocean, in Bass Strait’s Basker-Manta oil and gas field. We conducted a ship-to-ship fuel transfer from a rig support vessel to Seahorse Spirit and deployed a remotely operated vehicle (ROV). With six ROV operator-maintainers on board, and a Cougar ROV suite fastened to her deck, Spirit mobilised the ROV to inspect the docking device at the head of the subsea-to-ship transfer hose. While Seahorse Spirit is well-practised in ROV work, the fuel transfer was a successful first for the platform support vessel.

In May 2010, Seahorse Quenda relocated from Sydney to Darwin. The 2,910-nautical-mile journey via Cape York imported a valuable additional asset to DMS’ Darwin operations. Seahorse Quenda has been tasked with escorting suspected illegal entry vessels, known as SIEVs, and has also served the $500 million Blacktip Project, conveying power generation equipment and fuel to the wellhead platform in Joseph Bonaparte Gulf.

Exploration and drilling in the Timor Sea and North West Shelf continue to expand business opportunities for DMS in Darwin.

Spirit commences field entry trials before deploying an ROV at Roc Oil’s FPSO, Crystal Ocean.

Spirit manoeuvres into loading position at Yolla A gas platform in Bass Strait.


Nationwide Maritime Services The experience and qualifications of our seagoing staff

enable us to rotate crew in key positions, enhancing the

flexibility and availability of our services.

Naval exercises As the Royal Australian Navy’s maritime services provider, DMS delivers essential support to naval exercises.

Exercise Black Carillon achieved its objective on 20 March 2010 when Captain Brett Sampson climbed out of a portable recompression chamber and on to the deck of Seahorse Standard. Black Carillon is an annual exercise which the Navy uses to demonstrate and train submarine escape and rescue procedures. Captain Sampson’s journey had started 20 hours earlier when Seahorse Standard’s crew transferred him to HMAS Waller. The submarine submerged and sailed 25 nautical miles off the coast from Fremantle. Seahorse Standard followed as surface guard ship and, as Waller sat on the seabed, launched the submersible submarine rescue vessel, LR-5. The LR-5 carried rescue divers to the submarine and brought the crew to safety.

In August, 12 vessels from the navies of Singapore, Thailand and Japan sailed into Darwin to play their parts in Exercise Kakadu, a major biennial international military exercise hosted by the Royal Australian Navy. The Royal Australian Air Force, the Royal New Zealand Air Force and a Japan Maritime Self-Defense Force air detachment also participated. Kakadu was followed immediately by Exercise Singaroo, an annual exercise to cultivate ties between the Australian and Singaporean navies.

During both exercises, DMS supplied tug services, potable water and fuel to vessels at anchor, removed grey water, and provided flat-top lighters, ammunitioning and liberty boats. We used our Stebercraft and Seahorse Platypus for target tows.

Photos top to bottom:

From Left to right, Seahorse Quenda, Seahorse Quokka and Seahorse Kowari await their next Exercise Kakadu tasking. (Photo courtesy of Chris Sattler.)

Our modifications to Seahorse Standard enable the multi-purpose vessel to launch and recover the submarine rescue system and its LR-5 submersible.

Forward of HMA Ships Toowoomba and Arunta, SPWFL Warrigal fuels submarines HMAS Collins and HMAS Dechaineux during Kakadu 2010. (Photo courtesy of Chris Sattler.)

Ammunitioning was one of the services Wattle provided to HMAS Melbourne during Exercise Kakadu. (Photo courtesy of Chris Sattler.)

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Nationwide Maritime ServicesEngineering services – Vessel maintanence

Vessel maintenance

Under fixed price, performance-based contracts, DMS offers a full range of maintenance and repair services, in-service and through-life support for a wide range of vessels, from large offshore ships and high-performance patrol boats to harbour craft and small work boats.

We develop maintenance programs, provide planned maintenance and ad hoc servicing, and conduct refits, repairs, configuration management, condition monitoring, obsolescence management, upgrades and trials. We design and deliver operating cost reduction programs that achieve optimal vessel serviceability and reduced through-life costs. We manage vessel repairs and maintenance with computerised maintenance management tools and tailor reporting processes to meet each project’s traceability requirements. Our in-house naval architects and marine engineers work with ship designers and contractors and ensure our engineering practices comply with customer standards, such as those of ABR 6492 Navy Technical Regulations Manual. Our Chief Engineer delegates engineering authority levels to ensure all work is conducted by appropriately qualified personnel to approved standards. We meet all international standards, comply with SOLAS, MARPOL, Classification Society and local maritime authority requirements, and are certified to operate to ISO 14001 and ISO 9001 for environmental and quality management respectively.

Partnership: The Navy, Defence Materiel Organisation and DMS celebrated HMAS Glenelg’s operational release in Darwin.

Scientific collaboration The Defence Science and Technology Organisation is researching the effects of biofouling on the Armidale Class Patrol Boats’ speed, fuel efficiency, and operating costs. In one program we are working with the DSTO, the Patrol Boat System Program Office (PBSPO), and the Force Element Group (FEG) on trials of fouling release coatings applied to the hulls, propellers and sea chests of HMA Ships Larrakia, Bathurst and Albany. If, under operating conditions, the results duplicate those of static trials, the new paints could achieve fuel savings of over 30%, or around $4.7 million a year.

Another DSTO research program installed torsion meters in HMAS Glenelg’s shaft to measure the torque. Augmenting the ship’s structural and corrosion logging system, the torsion meters enable researchers to compare vessel speed with expected performance and find ways to improve speed and fuel-efficiency.


Nationwide Maritime ServicesWe innovate, embrace change and

always deliver on our promises.

Operational releaseThe final phase in the Navy’s vessel acquisition process, operational release, referred to as OR, is achieved when the RAN’s Capability Manager is satisfied that the vessel is fit for service and that the owners, operators and maintainers hold sufficient information about it to enable safe, effective employment of the capability. The Post Acceptance Modification program (see also page 7) delivered the work required to establish the baseline for HMAS Glenelg’s OR. In May 2010, the Chief of Navy approved the ACPBs for full operations. This joint Navy-DMO-DMS achievement was followed by OR of the ACPB capability at the HMAS Glenelg baseline for HMA Ships Armidale, Launceston, Larrakia, Albany and Bathurst. The Chief of Navy congratulated DMS personnel involved in the achievement of this significant milestone.

Expert dockingsOver the final four months of 2010, DMS was conducting dockings for vessels around Australia. On the east coast, Seahorse Horizon was docked for scheduled maintenance. In the west, Seahorse Tailor underwent scheduled docking and survey, while Seahorse Standard sailed from Fremantle to Singapore for a major docking.

Standard’s renewal survey provided an integrity assessment of the ship’s hull preservation, decks, superstructure, electrical and mechanical systems. Seahorse Standard meets flag state and SOLAS requirements and is fully certified as a Special Purpose Ship. The work to achieve this certification equipped Standard with new levels of safety and capability.

Seahorse Standard underwent system vessel upgrades, had modifications made to the damage control plan, and a fast rescue craft installed on the starboard side.

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Nationwide Maritime ServicesEngineering services – Vessel maintanence

Spirit turns 30Seahorse Spirit underwent a major docking during December 2010 and January 2011. During the starboard main engine operational trials, the Brisbane Ports Harbour Master and Maritime Safety Queensland ordered all shipping to evacuate the Brisbane River. Flooding was imminent so Spirit and her crew anchored in Moreton Bay until the river was reopened.

Spirit’s docking work was completed in time for the ship to resume scheduled Navy recruit training. Seahorse Spirit passed Bureau Veritas’ survey renewal and is operating under Marine Safety Victoria and voluntary SOLAS certification.

“DMS has taken on the mantle of engineering excellence by delivering and implementing engineering procedures and closely controlled approval systems. These comply

with international standards and class and customer regulatory requirements. We apply proven procedures for

configuration management and logistics support, failure mode and effects reliability centred maintenance and

reliability and maintainability.”

David Sippel, General Manager Engineering

A tug assisted Spirit out of the dry dock.A starboard side davit load test using a 10-tonne water bag was conducted for Seahorse Spirit at the fit-out wharf in Newcastle.



ACPB five-yearly dockings Five years after being commissioned into service, every ACPB undergoes mandatory docking and class survey. The survey is a class requirement which proves seaworthiness within design requirements and maintenance parameters. The objective of certification is to maintain performance and safety. Det Norske Veritas is the third-party body approving the ACPBs’ class conformance.

Prior to the Armidale Class Patrol Boat dockings, the Navy maintained its own survey regime. The aim of the ACPB project is to operate the vessels according to commercial principles. DMS manages the dockings for the Navy on a commercial basis.

As the first of class to undergo the survey, HMAS Armidale provided a test case for subsequent ACPB surveys, all 14 of which will be completed over two years.

DMS planned HMAS Armidale’s docking in collaboration with the PBFEG and PBSPO. The Navy operated the synchro lift to move the vessel onto the hardstand. DMS took over once the patrol boat was high and dry.

Engine change-out In late 2010, DMS fitted HMAS Larrakia with new engines, having removed her two main engines for overhauling, rebuilding and testing by the manufacturer, MTU Detroit Diesel. By rotating major parts, we minimise docking time and enable the ship to return to operations as speedily as possible. The engine changeout allowed the project team to inspect wear and tolerances and establish a baseline for ACPB main engine maintenance requirements. The overhauled engines re-enter service as part of an engine maintenance program that maintains class reliability. Hundreds of core and emergent tasks were carried out on HMAS Larrakia before post-maintenance testing and noise trials. Det Norske Veritas delivered a clean bill of health to the ship, signing HMAS Larrakia off as being fully class-compliant, while Navy sea trials assessed her for operational release, compatible with the HMAS Glenelg baseline.

The engines, changed out from HMAS Larrakia, returned to Darwin from MTU Detroit Diesel in Townsville in transport frames which DMS purpose-built for the journey.

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Nationwide Maritime ServicesPort services

Marine systems support

DMS delivers marine, mechanical, electrical and electronic systems support through fully equipped workshops around Australia. Our multiple locations provide corrective and deep-level maintenance services. Our skilled technicians control and monitor marine systems. Of special interest to Defence customers are our submarine rescue, and force protection systems and weapons systems maintenance services.

In-Country Support for Rafael Defense SystemsAs Rafael Advanced Defense Systems’ exclusive Australian repair agent, we ensure the Royal Australian Navy’s Toplite electro-optical surveillance and targeting system and Typhoon and Mini-Typhoon weapons systems remain fully mission capable. DMS also provides technical services and support for the Royal New Zealand Navy’s Mini-Typhoon and Toplite systems.

The DMS team installs, tests and maintains the Toplite targeting system and Typhoon gun mounts on the Armidale Class Patrol Boats and ANZAC Class frigates. In 2010, our Northern Australia Business Unit in Darwin opened a workshop dedicated to the refurbishing and through-life support of the ACPBs’ 25-millimetre Typhoon weapons system.

DMS has technicians who are fully certified to provide intermediate level maintenance for Rafael’s Toplite and Mini-Typhoon systems. They lead equipment rotations and set-to-works, conduct the sea acceptance trials to ensure the systems are fully operational, and assist Rafael in delivering maintenance training for ships’ crews.

Ongoing process improvements yield increasing service

efficiencies for customers by reducing their vessels’

operational down time and optimising their performance.

“At DMS we build partnerships,

continuing a tradition of cooperation

with customers and suppliers that

achieves best value and outcomes.”

Tony Parkin, General Manager

Business Development



Engineering expertise Our company-wide technical regulatory framework aligns service delivery to customer requirements for the technical integrity of assets. Accredited by Lloyd’s Register Quality Assurance, the framework’s application across all business units and projects increases customer confidence in service outcomes. By embedding engineering authority levels in our procedures, we provide full engineering accountability and surety to our customers that all works, including configuration changes, are carried out to specification and by authorised people. Full accountability for engineering decisions assures all customers that their vessel and equipment maintenance is being undertaken by competent specialists to approved standards.

Port services

Under long-term and ad hoc arrangements, DMS delivers comprehensive port services. We support maritime events, provide security patrols, and conduct marine security barrier maintenance. We provide crews for customer vessels, vessel delivery, passanger transfers, towing, oil spill responses, crane barge operations, maritime recovery, and water, fuel and stores lighting. We perform mooring repair and maintenance, tug and ferry services, refuelling and provisioning.

Skilling Australia’s Defence IndustryIn 2010, DMS again secured SADI funding. The Skilling Australia’s Defence Industry Program aims to build skills and increase skilled employment in Australia’s defence industry by supporting trade, technical and professional training linked to an Australian Defence Force capability. Our 2010 SADI-supported program started with oil spill response training. Conducted Australia-wide during February and March 2011, DMS teams received on-site training in Sydney, Cairns, Darwin, Western Australia and Jervis Bay. DMS and Navy representatives undertook the course which equipped participants with the skills to execute a first strike response and to work as team members on larger operations. All participants learnt about oil spill causes and prevention, impacts, control systems and dispersants, OH&S, shoreline assessment and clean up, waste management, and response planning. Site-specific hypothetical scenarios put new skills into practice. The oil spill response course was a prerequisite for a two-day oil spill team leader workshop, held at Garden Island in Sydney in February.

In March 2010, Seahorse Horizon conducted an oil spill emergency drill in Jervis Bay. The containment drill completed the Jervis Bay Business Unit’s AS/NZS ISO 14001 accreditation tasks.

DMS invited Navy personnel to join our SADI-funded oil spill response training.

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Nationwide Maritime ServicesSpecialist services

Side scan sonar: exploration and recoveryDMS’ fully transportable DeepVision side scan sonar system enables us to conduct underwater surveys to 200 metres. We are able to identify targets to within +/- 4 metres and produce photo-like images of the seabed. The side scan sonar system performs inshore and offshore tasks for recovery missions, mooring retrievals, site surveys, historical and navigational research, shipwreck searches, marine accident and insurance investigations, and commercial cargo salvage.

Life saving appliances The North Eastern Australia Business Unit in Cairns now has the in-house skills to conduct Open Circuit Compressed Air Breathing Apparatus (OCCABA) and Emergency Life Support Respiratory Device (ELSRD) maintenance for DMS customers. In 2010, the team in Cairns underwent maintenance training with Mine Safety Appliances (MSA), the manufacturers of breathing apparatus used on Navy vessels. By offering the specialised service, we are able to control maintenance standards for respiratory devices, reduce equipment downtime and pass cost savings on to customers.

DMS is also coordinating the Navy’s replacement of obsolete ELSRD Mk II equipment with ELSRD Mk III. By building OCCABA and ELSRD maintenance capabilities, we are reinforcing regionally competitive Australian skills.

In May 2011, DMS was appointed by United States Marine Incorporated as the boat manufacturer’s authorised Australian agent for supplying and servicing specialty water craft – USMI’s Special Forces 11-metre airdrop RHIB and 27-metre Mk 5 RHIB, a high-speed insertion craft. In 2011, DMS also became the authorised in-country agent for the supply and servicing of Zodiac life rafts for government customers.

A sonar image recorded DMS’ side scan sonar systems records a barge on the seabed in Sydney’s Middle Harbour.

Maritime training

Training products

A Registered Training Organisation under the Australian Quality Training Framework (AQTF 2007), DMS develops and delivers maritime training, conducts assessments and training needs analyses, and issues statements of attainment which enable candidates to gain recognised qualifications. Through comprehensive in-house training, we maintain appropriate skills to ensure our services are delivered on time, safely and to customer specifications.

For our customers, we develop training programs and tailor existing courses to fulfil specific requirements. Our training products cover a broad range of competencies, vessels and conditions. They include small boat operations and maintenance, tug operations, safety and survival at sea, navigation, Navy recruit training and sail training, Certificate I to IV in Transport and Distribution (Maritime Operations and Coastal Maritime Operations) for General Purpose Hand to Master IV, Certificate II to IV in Transport and Distribution (Marine Engine Driving) for MED3 to MED1, national power boating (in accordance with NSW Maritime standards for the issue of general boat licence), powerboat coxswain training, fast rescue craft operations and on-water team building (‘Teamsail’).



Reward for outstanding performance and

acknowledgement of a job well done are expressions of

DMS’ commitment to staff development and workplace

harmony – factors contributing to customer satisfaction.

Quarterly and annual awards for excellence are examples

of the incentives that inspire and unify team members in

pursuing our common vision.

Navy training

Hundreds of RAN personnel presented for DMS training during 2010/2011. A total of 210 New Entry Officer Course candidates were introduced to DMS early in their naval careers, completing their boat work and sailing training. In Darwin and Sydney, 13 Navy personnel from Armidale Class Patrol Boat crews completed the ACPB Fast Rescue Craft Coxswain Course. Finally, 48 RAN Clearance Divers completed the General Powerboat and Steber Familarisation Course on board a Steber 43-foot general purpose workboat.

Casualty recovery forms part of Navy’s Clearance Diving Boat Coxswain Course and Fast Rescue Craft Training. DMS’ new rescue dummies, constructed and weighted to simulate real life casualties, are practical additions to our man overboard training. The dummies have proven to be invaluable for training which includes search and rescue, and casualty recovery and management scenarios in varying sea states.

Our peopleDMS recruits, trains and promotes people on the basis of merit – merit demonstrated in attitude, aptitude for development, and skills attainment. By supporting individual professional development, we retain expertise and build the organisation’s capabilities.

Our trainee program enables deck crews and engineers to earn their coxswain, marine engine driving and masters certificates. In 2010/2011, nine trainees continued their two-year Maritime Traineeships, which encompass deck and engineering training. The trainees gained practical on-water skills in a wide range of vessels and operating conditions. Around the country, 22 DMS personnel enhanced their skills, gaining deck and engineering qualifications at various levels.

In addition to the oil spill management courses described on page 17, DMS also won funding under the Skilling Australia’s Defence Industry Program for dynamic positioning training, hull inspection and a range of engineering courses. SADI also aids our continuing work with the Australian Institute of Project Management. This training leads to nationally recognised project management accreditation for key DMS personnel.

“At DMS we recognise and reward

achievement. We encourage initiative

and innovation, demand service

excellence, and make safety a priority.”

Linda Butler, Manager Human Resources

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Quality and risk managementDMS’ mature quality management system is certified to AS/NZS ISO 9001:2008 by Lloyd’s Register Quality Assurance. An extensive program of internal and third-party audits capture and compel continuous improvements. Company-wide procedures adhere to international standards and ensure personnel and materiel safety, compliance with relevant regulations, and maintenance of performance measures.

Our robust risk assessment and management regime, based on the AS/NZS ISO 31000:2009 standard, is integrated with all facets of DMS’ operations and tailored to meet each project’s needs. We refer to customers’ technical frameworks, such as the Navy Technical Regulations Manual, when developing performance review tools and risk management plans.

Health, safety and the environmentDMS maintains safety and environmental standards by integrating their management with all procedures. Our safety record is the best in Australia’s maritime industry, following our measured pursuit of reducing Lost Time Injuries, Medical Treated Injuries and environmental incidents.

We understand the environmental risks associated with repairing, maintaining and operating vessels. Our procedures are informed by the International Safety Management Code for Safe Operation of Ships and Pollution Prevention, and the International Convention for the Prevention of Pollution from Ships, and they comply with AS/NZS ISO 14001. DMS is working towards company-wide accreditation and, by 2010/2011, had achieved accreditation for the corporate office and Jervis Bay and Cairns sites. All other business units are working towards accreditation within the next 12 months.

Our subcontractor policies ensure supplier services and products satisfy performance standards and come with quality assurances that safeguard the environment. Our supplier agreements include undertakings for environmental management.

Our quality management system is linked with DMS’

occupational health, safety and environment regime,

managing environmental and safety risks under an

overarching hazard and risk assessment process.

“ISO 9001 accreditation demonstrates our ability to consistently

meet customer and regulatory requirements. It testifies that we’re

accountable to customers and the community for doing what we say

we will do. ISO 9001 certification attests to our reliability.”

Caven Tootell, Manager Risk and Compliance



Our AS/NZS ISO 14001 certification provides assurance

to our customers that we have the systems for managing

environmental risk – for monitoring, measuring and reporting

on environmental performance, and for demonstrating

continuous improvements.

Well-established proceduresYasi, a category 5 cyclone, crossed the Queensland coast at Mission Beach, at about midnight on 2 February 2011. The North Eastern Australia Business Unit in Cairns had commenced well-established and frequently-practised cyclone preparations on 31 January. Throughout, DMS maintained contact with the Navy to ensure cyclone plans for the Armidale Class Patrol Boats and other vessels in the region were carried out quickly and safely.

Meanwhile, our Fleet Marine Services staff assisted naval craft into their cyclone berths in Wahday Creek. An Australian Customs vessel (ACV) had just completed a docking and was back in the water, ready for sea trials. The ACV team had to slip the patrol boat again. Because no vessel was available to assist the manoeuvre, the team moved it into position for lifting by hand. On the hard stand, the team used webbing straps to secure the ACV. They moved vehicles into the warehouse, double-checked the cyclone kits, and carried out a controlled shutdown of the IT and phone systems. When all preparations were complete, everyone headed home to ready their own places for the cyclone.

Yasi had been on course for Cairns, but the town escaped the full force of the cyclone when it veered south. The 180-kilometre-per-hour winds that did strike Cairns caused power outages and building damage, but DMS’ Cairns facilities and customer vessels remained unscathed.

About two weeks after Yasi struck Queensland, our project teams in Darwin were securing vessels and storing equipment in preparation for the inundation that Cyclone Carlos promised. On 15 February 2011, as 90-kilometre-per-hour winds swept in from the Arafura Sea, the teams were securing RHIBs under cover, lashing small vessels and equipment to the hard stand, and sailing Fleet Marine Services vessels to safe anchorages in Darwin Harbour and Blessers Creek.

“The support provided in securing ACV Corio Bay in Cairns

and HMAS Glenelg in Darwin, both at extremely short notice,

ensured the safety and security of the assets and was greatly

appreciated by the Australian Customs and Border Protection

Service and the Navy’s Patrol Boat Systems Program Office.”

Greg Hodge, Chief Executive Officer

100% effort in preparations and clean-up: members of the Darwin team.

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DMS Maritime and the Community

DMS is an active community participant. We welcome the opportunity to support the endeavours of team members in working for their chosen causes. We participate in community projects and provide practical assistance to marine research and the conservation of our maritime heritage.

Reservist supportIn 2010, DMS received an Employer Support Award in recognition of the company’s supportive Reserve leave policy. Reservists account for about 45% of Australia’s combined defence forces. These part-time ADF members bring professional skills to the Navy, Army and Air Force at the same time as importing skills gained in their Reserve training to their day jobs. The Defence Reserves Support Council acknowledges employer support for Reservists with annual Employer Support Awards.

Scientific supportThe Sydney Institute of Marine Science (SIMS) is a collaborative research institute founded by Macquarie University, the University of Technology Sydney, and the Universities of Sydney and New South Wales. DMS assists SIMS by providing vessels, crew and fuel to pursue research goals. In 2010, the crew of Dugong assisted in retrieving a sea glider, a valuable instrument which records indicators of plankton levels, such as sea temperature and salinity.

Maritime careers Enabling people to excel is one of DMS’ motivating values. We encourage career development and help people realise their potential. Our trainee program is one demonstration of this support. In May 2010, following a conversation between a high school careers advisor and our National Training Manager at Pacific 2010, DMS invited a group of Nambucca Heads High students to visit DMS’ Eastern Australia Business Unit at Garden Island to learn about maritime vocations. The visit revealed inspiring maritime careers and training opportunities to the year 10 students.

Museum partnershipOur partnership with the Australian National Maritime Museum speaks for DMS’ commitment the protection our maritime heritage. Through our agreement with the museum, we are able to assist in managing Australia’s valuable maritime artifacts. In July, the Eastern Australia Support Group’s tug team conducted a cold move, towing HMAS Vampire from the Captain Cook Dry Dock at Sydney’s Garden Island back to her berth at the museum. Known as ‘the Bat’, HMAS Vampire, a Daring Class destroyer, is the museum’s and, possibly, Australia’s, largest museum piece.

National appealThe Australia-wide DMS team responded quickly and generously to the CEO’s dollar-for-dollar campaign to support the Queensland Premier’s Flood Relief Appeal. By combining individual donations with matched funding from DMS, we raised thousands of dollars to help people afflicted by the flooding.

As interested as visiting students were in training and employment opportunities at DMS, their memories of the day will be headlined by the Juliet 3 RHIB ride.


DMS Maritime and the Community

Local actionIn 2010/2011 DMS was pleased to support a range of ventures, from fundraising challenges taken on by individuals to nationwide disaster relief appeals. Just two examples of local fundraising in 2010/2011 come from the Top End and the tropical north.

In Darwin’s 35-degree heat and tropical humidity, 250 Santas donned beards and boots for a run at Mindil Beach. Two members of the Northern Australia Business Unit joined the Variety event which raised money for sick and disadvantaged children.

DMS’ North Eastern Australia Business Unit joined a charity golf tournament at Cairns Golf Club to raise money for the Special Care Baby Unit at the Cairns Base Hospital. DMS sponsored a par 3 hole and a team of four DMS players. The event raised money for a General Electric Healthcare Giraffe® Omnibed® which combines an incubator, radiant warmer and in-bed scale for premature babies.

The Firewater Music Marathon brought the Cairns community together and raised $18,000 for victims of the Queensland floods and Victorian bushfires in 2009.

“… the wind proved to be no match for the skilled DMS tug operators who towed Vampire back to Darling Harbour and helped her berth safely and securely alongside at the South Wharf.” Australian National Maritime Museum (Photo courtesy of Chris Sattler.)

International award These annual Serco Pulse Awards celebrate innovation, commitment, leadership, courage and bravery. Judged regionally and globally, they recognise the outstanding achievements of individuals and groups throughout the worldwide Serco organisation and its joint venture teams. In 2010, DMS was again represented on the podium. Sherrin McKenzie from our North Eastern Australia Business Unit, received a Serco Pulse Award for her ‘Firewater’ fundraising event.

Dugong’s crew located the sea glider – the first of its type to gather data in the East Australian Current – by plotting its GPS updates.

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Our vision

Our vision is to be the pre-eminent Australian maritime service provider.

Our values guide this vision and define DMS Maritime’s purpose.

Our valuesDMS’ values are integral to operations and performance management. We uphold these ideals as a team and abide by them individually. We put our values into action by enabling professional development for all, encouraging trust, prioritising safety, committing to innovation and exceeding service expectations. We aim to retain staff, assist in their career development, and motivate excellence in service delivery.

Foster an entrepreneurial culture We are passionate about building an innovative and successful business. We succeed by encouraging and generating new ideas.

Enable people to excel We are committed to going the extra mile. We acknowledge and nurture individual talent. We value our team’s knowledge, ideas and contributions.

Deliver our promises We do what we say we will do and promise what we can deliver.

Build trust and respect We maintain a safe, socially responsible workplace and operate to consistently high standards. We never compromise on safety, always work in an ethical manner and cooperate with the communities of which we are a part.

Board of DirectorsDMS is a Serco Australia and P&O Maritime Services joint venture. The expertise of our shareholders is reflected in the DMS Board.

Chairman – John Lord

Andrew King (P&O Maritime Services)

Ray Penson (P&O Maritime Services)

Stewart Price (P&O Maritime Services)

David Campbell (Serco Australia)

Daniel Fabri (Serco Australia)

David Such (Serco Australia)

DMS Maritime Pty LimitedLevel 6, 210 Clarence StreetSydney NSW 2000 Australia

Tel: +61 2 8001 1600 Fax: +61 2 8231 0172

ABN 57 078 359 065

Documents

DMS YIR