APPENDIX C.3 Vessel Cayo Blanco Condition Survey

M/V Cayo BlancoON. D1222191, 600 PASSENGERS

CONDITION SURVEY

CS-01-March/15/2011

Inspection Date: February 28, 2011Condition Survey Date: Sept. 15, 2011.Inspected by: Eng. Carlos E. ClaudioLocation: Fajardo Terminal, Playa Puerto Real, Puerto RicoBuilt: 2009LOA: 150 FT, NET/GR Ton: 76/98Hull: AluminumPropulsion/Gear: 12VMTU 4000/Twin DiscActual Status: In service, COI expires Sept 30, 2011.

Next Annual expires September 30, 2012

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Index:Scope of Work

Analysis

Condition Survey Report

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Scope of Work:The purpose of this report is to present actual operating conditions of M/V Cayo Blanco as per owner’s instruction after a visual inspection of all equipment on board.

The purpose of this report is to present actual operating conditions of M/V Cayo Blanco as per owner’s instruction after a visual inspection of on board equipment.

Pictures and comments report presentation of outstanding items to be correct in way to maintain vessel in operating conditions.

Analysis and recommendations on immediate and long terms maintenance projections included.

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Analysis:Vessel in excellent condition with just minor maintenance work to be accomplished.

Dry Docking may be needed for underwater propulsion system repairs since vibration problems are present when running at low and high speeds.

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Condition Report SurveyVessel: Cayo BlancoReport Date: Sept 15, 2011.Inspection Date: February 28, 2011.Report: Condition Survey, CS-01-Seprt/15/2011By: Carlos E. Claudio

Location - Fore Deck:

Test windlass winch.Anchor pelican shackle rusted, clean and maintain.Windlass winch rusted, clean and maintain.Fore Peak bilge suction reach rod assembly maintain.

Fore Deck Fore Peak Valve

Location - Fore Peak Tank:Rain water accumulated, remove and dry.Manhole gasket, clean and maintain.Fore peak bilge suction cut off valve reach rod hard to close, modify existing support brackets.

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Location - Void Space No. 1, (Bow Thruster):Bow thruster oil leak, clean bilges and inspect for leaks.Garbage and waste material from insulation installation at forward section of void space, clean bilges.

Bow Thruster

Location - Void Space No. 2:Oil at bilges, clean bilges.

Space 2

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Location - Void Space No. 3:Oil at bilges, clean bilges.

Space 3

Location - Void Space No. 4:Oil at bilges, clean bilges.

Space 4

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Location - Void Space No. 5, (Steering Compartment):Muffler No. 2 (port-in) exhaust leak, open for inspection.Muffler No. 4 (stbd-in) exhaust leak, open for inspection.Raw cooling water pipe leak to lazarette mufflers at port and stbd sides.

Muffler Stbd Muffler Port

Piping Stbd Piping Stbd

Piping Port Piping Port

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Location - Void Space No. 6, (Lazarette) Oil at bilges from hydraulic valve leak at center line forward, clean for inspection and tightening as required.Raw cooling water pipe leak at port and stbd sides.

Hydraulic Valve Bilge Oily Waste

Raw Cooling Stbd Raw Cooling Port

Raw Cooling Stbd Raw Cooling Port

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Raw Water Piping

Location - Engine Room:

Packing Box No. No. 1 (port-out) add packing and adjust.

Packing 1, Before Packing 1, After

Packing Box No. No. 2 (port-in) adjust.

Packing 2 Intermediate Bearing 2

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Packing Box No. No. 3 (stbd-in) add packing and adjust.

Packing 3 Intermediate Bearing 3

Packing Box No. No. 4 (stbd-out) adjust.

Packing 4, Before Packing 4, After

Main Propulsion Engine No. 1 (port-out) and No. 3 (stbd-in) raw cooling water overboard discharge valve leak, clean and tightening.

Port – outboard Stbd - inboard

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Main Propulsion Engine No. 1 (port-out) muffler exhaust leak at inboard side, open for inspection.

Main Propulsion Engine No. 3 oil leak, correct and clean bilges in way of leak.

Main Reduction Gear No. 3 (stbd-in) raw cooling water pipe leak at stbd aft bulkhead cut and install union coupling.

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Bilge piping valve water leak by Fire Station no. 7 at port side aft.

Fire Station No. 7 Bilge Overboard

Fire main pipe hanger loose at center line aft bulkhead.

Main Reduction Gears oil/tar leak thru breathers, inspect and clean bilges in way of leaks.

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Location - Pilot House:

Search Lights Handles at Captain Chair overhead, change to electric handles to avoid interference with Captain operation, low overhead clearance hazard.

Search lights overhead

Add additional wiper at port, port-in, and stbd-in windows (3ea.).

Port inboard window Port outboard window

Stbd inboard window

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