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ors, naval architects, mechanical engineers, or all three. With quality at the heart of its many missions, Class NK?s entire R&D budget ? nearly $60 million in 2012 ? goes entirely to maritime related research and is largely used to fund joint research with companies throughout industry. As such, for those still looking to solve the mysteries of subchapter M, the search for a viable source of expertise may have just ended. AN IMPRESSIVE YEAR: AND POISED FOR ANOTHER Nearly 1,000 vessels and more than 25 million gross tons joined the ClassNK register in 2012. And, as impressive as that benchmark might seem, ClassNK?s expanded U.S. Coast Guard authorization(s), received earlier, this year are arguably more important. A rapidly opening door to the American markets, coupled with the new inland subM rules could set the stage for even bigger things to come. LOCAL PARTNERSHIPS , STRATEGIES ClassNK began planning for the new regulations with inland operators in 2009. The acquisition of Maine-based SMSLLC in March is a continuation of that effort. Since 1996, Safety Management Systems, LLC (SMSLLC) has provided consulting services to maritime, transportation and related industries. Now, as part of ClassNK?s expand- ing global operations, SMS LLC eases ClassNK?s entry into the world of subchapter M and inland shipping.ClassNK next turned its attention to further developing the relationships that it has been fostering since opening its New York of ce in 1962. As well as being the world?s largest class society, ClassNK classi es some 35% of the world?s bulk carriers and also has an impressive roster of inland and brown water vessels. The global giant remains bullish on the future of America?s brown water shipping, especially with the ex- pansion of the Panama Canal looming large in the porthole. According to ClassNK, one key area of subchapter M implementation is going to be price. And, while safety management ultimately helps reduce costs for operators, implementation presents a cost to owners. To that end, ClassNK runs a lean operation that is focused on providing high quality service. For example, all surveyors are not only trained to conduct ship surveys but also ISM, ISPS, and MLC audits. The addition of subchapter M audits and im- plementations to that suite of services would therefore be a natural follow-on. Beyond that, ClassNK understands that their mere presence in the market provides owners a greater range of choices and via competition, keeps prices down. International Load Line CertiÞ cateInternational Tonnage CertiÞ cateSOLAS Cargo Ship Safety Construction CertiÞ cateSOLAS Cargo Ship Safety Equipment CertiÞ cateInternational Oil Pollution Prevention (MARPOL Annex I) CertiÞ cateInternational Air Pollution Prevention (MARPOL Annex VI) CertiÞ cateISM Code (Safety Management CertiÞ cate and Docu- ment of Compliance)Document of Compliance for Ships Carrying Dangerous Goods (SOLAS regulation II-2/19) International Anti-Fouling System CertiÞ cateClassNK?s U.S. Coast Guard Authorizations: NK Fleet (Total) Brown Water Share (%) Number of Vessels 82871,21515% Gross Tons 212,893,1551,279,2050.01% Newbuild-ings (Total) Brown Wa- ter (New)Share (%) Number of Vessels 69215923% Gross Tons 20,328,329123,4240.1% Brown Water Vessels as a share of total NK Fleet (as of March 31, 2013) Brown Water Vessels as a Share of Newbuildings (2012)ClassNK is led by Chairman and President Noboru Ueda. 24 MNMay 2013MN May2013 Layout 18-31.indd 24MN May2013 Layout 18-31.indd 245/3/2013 12:52:40 PM5/3/2013 12:52:40 PM