CCN Panam c4002

Progress Report - 31 mar. 2021

CONTENT

1. GENERAL UPDATE

The yacht “Panam” is afloat and securely marred in the Baglietto facility in La Spezia, Italy. Access to the yacht is from the stern. The yacht is secured using forward ground lines and sufficient dockside mooring lines. Fenders are deployed on the port side of the yacht. The yacht has continued to move towards completion with the ongoing outfitting of the various systems and general construction components coming closer to the final product on a daily basis. The deadline of the 19th April 21 for a delivery date, still appears to remain elusive from what we see in terms of progression. We should really now be at the final stages, where equipment is undergoing final defeat rectification or indeed repairs or modifications in order to deliver the yacht to the crew and technical coordinator.

The reality is that many of the systems are simply not ready for delivery to the owners team. It will be very tight for the yard to finish in time, we think.

We may end up with a fairly long list of works still remaining on the 19th. That said, we think (certification and documentation) notwithstanding, there will be nothing significant enough to prevent a short cruise or shake-down trip. Although items will be pending, they will hopefully fall into a minor non-conformity category.

This is all pending the final sea trial results and the data/information that directly relates to the outlined technical specification and construction contract.

In order to explain in detail would take considerable time, so here is a very condensed versions of the situation:

The yacht, for various reasons (that have not been shared) in their entirety, only verbally mentioned, has ended up being heavier than originally intended. This has resulted in the yachts top speed being recorded as lower than expected. This has been shared with all parties and confirmed on the official sea trial and reported as such by the Cerri technical department as 29.2 knots SOG. Please see below the “Speed Calculation” report.

CCN C4002 - SPEED CALCULATION

The second potential problem we face, as a direct result of this weight gain, or in more marine technical terms larger displacement, is a reduction in the endurance or range of the yacht. Several rounds of conversations have taken place, and different figures have been produced and delivered to us. Again, please find below “Range Assessment”, issued by Cerri.

CCN C4002 - RANGE ASSESSMENT

What we are seeing transmitted to us is actually theoretical values based on a displacement figure that is not and will not ever be an achievable one of 235 tons. From direct measurement, the builder calculates the half load displacement at 261.2 tons. This is an increase of 26.2 tons or approximately 11.5%.

The second attached document titled Range Assessment is actually very accurate. The Kongsberg Performance Predication Table (22/10/20) can be seen show the correlation between displacement and speed accurately.

When the design displacement figure obtained on the day (17/03/21) is used, 258.8 tons, When the real-time figures are used, we calculate approximately a maximum range of 1583nm. This is using the figures supplied by Cerri and at actual real-time and real loading conditions at the time.

These figures are assuming that the full quantity of fuel is being used, with 98% pressed tanks. We still have to see how the yacht sits when she is full of fuel and all other accountable loads, tenders, tools, owners supplies, furniture, galley equipment etc.

We must check to see if the yacht remains within her load line assignment and draught marks. If the situation arises where the yacht sits below the load line, then essentially, consumables, will need to be removed. This may well result in a further reduction in range as fuel oil is removed to the extent where the yacht floats “on her lines” or maximum loading conditions in which she fully complies with the approved stability booklet (which we still have not yet received), only a subcontractors submission. Please find below the “Stability Booklet”.

CCN C4002 - STABILITY BOOK

Note: All three of the above attachments have been generated and submitted to us by the Builder.

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2. EXTERIOR

Painting:

The painting works continue onboard. The applicator is now down to the final stages, but we are yet to receive the schedule for the paint rectification works to finish, and then for the series of inspections to commence.

Note: this is for the entire yacht’s external paint inspections.

Teak Decking:

Mostly now fully installed. A few minor repairs are being done, secondary sanding where needed and small caulking repairs. The deck looks good.

Overheads and Lighting:

Only minor adjustments remain. We have written a point on the construction log regarding the fixing of arrest wires/cables to be added. We are going to assume at this point it is too late and too costly for the yard to do this, it is actually outside of the technical specification, but something you might want to consider adding at a later stage, to provide added safety should one of the overhead panels become loose.

Rail:

For the side decks they are completed, we are yet to see the rails and stanchions that fit in and around the shell and transom doors.

Shell Doors:

All are completed but all have finishing works remaining in progress, mainly teak and caulking works. We anticipate these to be completed in the coming days.

Gangway(s):

The aft gangway is tested and works well. They yard still have to position the inner shrouds that form the closure between the gap created by the yachts structure and the gangway itself.

The second gangway, on the starboard side forward that closes off the steps, honestly, We are not particularly happy with it. The unit is functional and all operations have been checked and work fine, it’s just not quite how we though t it would look. When the unit is closed, it is raised at the joining end, meaning the unit does not close flush to the receiving section. Also, there are gaps in the sides between the outer and inner bulwarks. We know this is a design feature, but we think this is something that you might want to look at and walk on to see you are happy with it. Personally, we think it needs some sort of inserts at the sides, to cover the gap, and we would like to see something better done with the forward join, when closed.

Swimming Pool:

The pool is essentially completed and partially tested. Some modifications have been requested, not yet actioned. On agreement of those actions, implementation of modifications, the pool needs to be re-tested.

Sliding Doors:

The yard is still working of full operational working of these. Some additional acoustic alterations to noise/sound insulation are being made to the main doors aft. Re-testing will be conducted once they have finished.

Rescue Tender and Jet Ski:

The forward mooring deck has had the addition of the tender and jet ski chocking system. These have been positioned and located under the Captains direction. They are now orientated athwart ships.

Crane:

The forward rescue tender crane has been tested and confirmed fully compliant with LRoS, dynamic and static load tests performed. There remain some modification pending from my side, with emergency system use and access. All points on the construction log. The crane works well.

Main tender and Lunching System:

We have asked many times, but yet to have seen this system and it’s ballasting operations operational. The yard indicate that they want to do this sea trial, we would like to do this many times to ensure that it all works properly. We are awaiting a direction from the yard. It will be done and properly tested prior to any acceptance.

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3. INTERIOR

Cabin Inspections:

Pre-acceptance checks have been made. The company that has been tasked with the various works are in the process of going cabin-by-cabin and conducting repairs/alignments with various installations. To date, we have not yet received a request from the yard to inspect a finished area or cabin. This comes back to the previously touch upon point, that the yard is still trying to finish the yacht. Our real concern is that we are being left with little time to inspect these areas (and give them time to rectify problems) in enough time to be ready for delivery, that is without having to return or action a long list, an “agreed list” of what needs to be done under a form of post-construction works list.

Note: this list should be different from any warranty items as the contractual definition is very different in terms of cost and time as well as financial obligation to you.

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