December 2015 Marine Log

Charged up about electric & hybrid propulsion

arine oG M L Reporting on Marine Business & Technology since 1878

www.marinelog.com

december 2015

The

BEST SHIPS of 2015

Tug & barge operators add to their fleets What’s next for El Faro investigation?

CMA CGM set to land NOL

contents

December 2015 Vol. 120, NO. 12

12

TOTE Maritime’s Isla Bella, the world’s first LNG-fueled containership, tops our list of Best Ships of 2015. The ship has been called a “true engineering feat” and is one of the world’s most environmentally friendly ships

features

departments

12 Best Ships

2 Editorial

27 Tech News

What will the New Year bring?

ABB debuts new era in shipping with Integrated Operations Center

The Best Ships of 2015

You’ve spoken and we heard you.

We break down the best ships of the year, ranging from the world’s first LNG-fueled containership (Isla Bella), a new Jones Act ConRo ship (Marjorie C) to a new class of gas ready boxships being built for United Arab Shipping company

17 Electric & Hybrid power

Cover : Bay Aerial, © Woods Hole Oceanographic Institution

Call Me Ishmael, No Longer Marine hybrid and electric propulsion comes of age with the advent of lithium ion batteries

22 Atlantic coast

A Time of Renewal

The Atlantic Coast is bustling with marine activity thanks to an influx of new vessels joining a variety of fleets—from tug and barge operators, such as Vane Brothers, investing big money in the newest members in their lineup, the addition of a new series of passenger vessels being built for Circle Line, to the repowering of an entire ferry fleet

6 Inland waterways Going to the Gulf

7 Update • New take on life: Sea Slice headed for wind farm operations • CMA CGM to acquire NOL • SAFE Boats wins Colombian government vessel contract • Alaska Class Ferry under construction at Vigor • Alternative energy for New York: Natural gas port vetoed, offshore wind stays strong • Statoil pulls out of Alaska • Bordelon takes delivery of specialized ULIV

visit us at MarineLoG.com

29 Contracts Vane orders more ATB tugs

32 Environmental forum A closer look at very large operational risks

Special Supplement voices of the industry

11 Washington In search of funding for a new Great Lakes heavy ice breaker

26 Newsmakers Bollinger names Joe Mayhall to its sales and marketing team

thought leaders of 2015 Special advertiSing Supplement

December 2015 MARINE LOG 1

editorial

What will the New Year bring?

It looks like the price of oil will be trading at lower levels for at least 12 months.

The Energy Information Administration is estimating that the average price for a barrel of West Texas Intermediate oil will be $51 for 2016. What are some marine companies doing now to position themselves for the rebound?

Offshore support vessel operators are doing all they can to conserve cash and control costs. Some are even offering their vessels for conversion for other uses or trades.

Meanwhile, some shipyards such as Conrad Shipyards have expanded and upgraded their new construction and repair facilities in order to broaden their portfolios and diversify their offerings. Conrad’s Deepwater South facility in Amelia, LA, is already paying dividends with deliveries of large ocean tank barges and Articulated Tug Barges for customers Vane Brothers and Stone Marine. Conrad was also the first to be certified by GTT to construct MARK III Flex cargo containment system for the first LNG bunker barge. Conrad Orange will deliver the barge in the spring.

Others, such as Vigor Industrial, Portland, OR, have merged or acquired attractive partners to improve their productivity and expand their capabilities.

Next year, new construction in the ferry, tug and barge, patrol boat, pilot boat, and fishing markets should remain steady. Subchapter M regulations should also spur some towboat replacement as older equipment is removed and vessels come under class.

Infrastructure for LNG should also continue to be built out and there will be opportunities for conversions.

On the government side, the U.S. Coast Guard will select the Phase 2 contractor for the Offshore Patrol Cutter. Shipbuilders Bollinger Shipyards, Lockport, LA, Eastern Shipbuilding, Panama City, FL, and GD Bath Iron Works, Bath, ME, are all in the running.

The winner will build as many as 25 OPCs. The U.S. government is also (slowly) moving forward with the acquisition of a new polar icebreaker. A contract to build the polar icebreaker will probably be awarded in Fiscal Year 2020 and there could be some planning for additional icebreakers.

Corporations might also be more willing to invest in the U.S., if the corporate tax structure was more competitive.

As a recent article by David Bahnsen published in Forbes points out, “corporations are massively incentivized to shift economic activity overseas because of the present tax rate on corporate profits (at 35%, this is the highest rate in the world rich countries).”

An article published this past May by Bloomberg Business pointed out that U.S. companies had stockpiled $2.1 trillion in profits overseas to avoid U.S. corporate tax laws. Those companies include Apple, Microsoft, and Google. According to Bloomberg Business, General Electric Co. had the largest amount of profits stashed overseas—$119 billion. Among the companies appearing on Bloomberg’s list of 299 companies with stockpiled overseas profits are ExxonMobil, Chevron, Caterpillar, Occidental Petroleum, and Hess.

In the Forbes article, Bahnsen writes that a reduction of the corporate tax law rate

John R. Snyder, Publisher & Editor jsnyder@sbpub.com

accompanied with an elimination of special privilege would keep reform from adding to deficits and would provide significant incentive to invest in the U.S. He says “a holiday on repatriation would also provide a large up-front boom, a boom that the economy would benefit from immensely as it remains stuck in a slow-growth 2% world.”

The tax revenue generated by repatriated corporate profits could be used to fund badly needed infrastructure improvements, including projects along U.S. waterways and harbors such as bridges, tunnels, and ferries.

Asphalt, steel, stone, and cement for infrastructure projects would be carried by ships and barges.

As we close out another year, the staff and I wanted to thank you all for being loyal readers of Marine Log and wish you all a Happy Holiday and a Prosperous and Healthy New Year.

Maritime Trivia Trivia Question #32: What dinner entree was called “Schooner on the Rocks?”

The first sailor or lubber who correctly answers the Maritime Trivia question will receive a color J. Clary collector print. Email your guess to marineart@jclary.com

November’s trivia question: What sailors’ slang-term phrase described “being in an awkward situation?” Answer: In wooden ships, the “Devil was the longest seam to be caulked, and called for a bos’un’s chair in order to do the job; thus a man was actually suspended between the “devil” and the water. This slang-term was coined to describe being in awkward situation.

2 MARINE LOG December 2015

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inland waterways

Going to the Gulf Waterways Council, Inc. (WCI) held its 12th Annual Waterways Symposium and Annual meeting in New Orleans the week of November 11. This was the same week and location that the House Transportation & Infrastructure (T&I) Committee, under the leadership of Chairman Bill Shuster, kicked off its process to deliver a Water Resources Development Act (WRDA) in 2016. The last Water Resources Reform and Development Act was passed in 2014, and the WRDA before that, in 2007.

Coincidental that New Orleans was selected as the city for the T&I Committee to hold its first WRDA listening session, media briefing and project site visit? Not a chance, as New Orleans is critically important as the “Gateway to the Americas,” as Port of New Orleans President Gary LaGrange calls it. In fact, New Orleans tied with Charleston as the fastest growing U.S. export port in the first half of 2015, with export container volume growing eight percent year-over-year.

New Orleans also has one of the oldest lock projects, Inner Harbor Lock and Dam, built in 1921. Opened in 1923, Inner Harbor is a 5.5-mile long project that connects Lake Pontchartrain to the Mississippi River—its too small to accommodate today’s modern tow sizes, and needs replacement but that is many years away from completion.

Inner Harbor Lock moves a variety of critical commodities, with the highest volumes of chemicals (26%), petroleum (22%), iron and steel (14%) (2013).

These and other commodities are shipped to and from Louisiana’s waterways and ports: $104 billion of petroleum products and crude petroleum that is refined into gasoline and sold at neighborhood gas stations; $12.5 billion of basic chemicals used in hundreds of consumer products from appliances to toys, and soap to cosmetics; and $40 billion of manufactured goods including computers and electronic products, appliances, machinery, electrical equipment and clothing.

And Louisiana’s waterways and ports support 281,590 jobs in the state and directly contribute $47.7 billion to the state’s economy.

6 MARINE LOG December 2015

The importance of the Gulf region for shipping is underscored in the National Water ways Foundation (NWF)-commissioned 2014 study by the University of Tennessee and the University of Kentucky, “Inland Navigation in the United States: An Evaluation of Economic Impacts and the Potential Effects of Infrastructure Investment.” The study examined the waterways’ national economic return on investment and the need for and benefits of an accelerated program of waterways system improvements that sustain and create American jobs.

The study evaluated the inland navigation system as it is currently funded, and as it might be through renewed infrastructure investment.

If commercial shipping on our waterways were to cease entirely, the Gulf Coast and Lower Mississippi River regions would be hardest hit. High-value petrochemical products dominate industrial production in that region and alternative transportation in the region is limited.

Across the waterways system overall, if there were a shutdown there would be immediate, devastating economic consequences with a total 10-year loss of $1.063 trillion (when discounted to reflect that some of the loss is still several years away).

Shipping costs would increase by more than $12 billion, which would be passed onto American consumers in the form of higher costs for goods.

This study offers a warning to the United States, which stands at the edge of a watershed era where transportation planning is more important than ever before.

As a direct result of the large increases in available and affordable domestic energy resources and other areas of opportunity in the Gulf and elsewhere, the U.S. economy can capitalize big on increased productivity. But realizing these opportunities requires the nation’s transportation sector to adapt and invest accordingly.

Since WRRDA 2014 was huge for WCI, our request for WRDA 2016 is to increase the threshold for Major Rehabilitation from the current $20 million to $50 million. The

Michael J. Toohey, President/CEO, Waterways Council, Inc.

Inland Waterways Trust Fund (IWTF) costshares the construction of new priority navigation projects as well as major rehabilitation projects on the inland waterways system. WCI recommends that the major rehabilitation ceiling be changed to better and more wisely manage the funds being utilized from the IWTF. So Congress was right to initiate the process toward the next WRDA in New Orleans. No city has more keenly understood the impact and impor tance of infrastructure that works and protects, especially when it didn’t.

“When Katrina hit New Orleans in 2005, the city’s hurricane protection system became a symbol of America’s haphazard approach to critical infrastructure. The patchwork of walls and levees built over the course of 40 years was still far from complete when the storm came, and even the Army Corps of Engineers admitted that this was ‘a system in name only.’ Flood walls collapsed, and earthen levees built from sandy, dredged soils melted away,” said the New York Times (June 14, 2012).

New Orleans, however, is also the beneficiary of how well the process to construct infrastructure for mega storms can work when efficient funding ($14.5 billion) is provided up front. The system is composed of 133 miles of levees, gates, flood walls, and pumps to keep the city safe.

The WRDA bill is an authorization measure that addresses policy changes and improvements. Annual appropriations bills deliver the money to construct navigation projects. And unlike the full and efficient funding for the hurricane protection system, often annual appropriations provide funding in small increments, stretching project timelines out over decades.

As a Nation reliant on properly working infrastructure, we must do better to plan, to anticipate the unexpected, to properly invest, and to appreciate how much we get out when we put the right amount in. WRDA 2016, and FY 2016 and FY 2017 appropriations will provide the next opportunities to stand and deliver. www.waterwayscouncil.org

Update biz notes CMA CGM to acquire NOL in $2.4 billion deal France’s CMA CGM is set to become the second largest container ship operation in the world, following its $2.4 billion offer for Neptune Orient Line Limited (NOL). NOL is owned by Singapore headquartered APL. The deal is subject to approval by antitrust authorities.

“This transaction will represent a significant milestone in the development of CMA CGM,” says CMA CGM Vice Chairman Rodolphe Saadé. “Leveraging the complementary strengths of both companies, CMA CGM will further reinforce its position as a leader in global shipping with combined revenue of $22 billion and 563 vessels.”

CMA CGM is currently the third largest container shipping firm, with 469 vessels an a global market share of 8.8%.

In 2014, the company handled 12 million TEUs and generated $16.74 billion in revenues.

Meanwhile, NOL operates under the American President Line brand. In 2014, the company posted revenues of $7.04 billion.

New take on life

Sea Slice headed for wind farm operation Remember the Lockheed Martin-designed Sea Slice? Built in 1996 by Nichols Brothers and Pacific Marine & Supply, the high-speed vessel was a technology demonstrator for the U.S. Navy built at a cost of $15 million.

The 104 ft x 54 ft Sea Slice was designed as a Small Water Plane Area Twin Hull (SWATH), featuring four small low-drag hulls placed in two linear pairs. The design helps reduce hydrodynamic drag, enabling the vessel to travel at higher speeds for a given amount of engine power and reducing the effects of vessel motion on personnel.

During Navy demonstrations, Sea Slice showed excellent seakeeping characteristics, reaching high speeds of 35 knots in Sea State 5 conditions.

Earlier this year however, the vessel was up for sale and acquired by Advanced Offshore Solutions, who will use the vessel as an offshore wind farm vessel. The Denmark-based company recognized the growing need for increased vessel speed and maneuverability.

“We’ve been pioneering different technologies for the offshore wind industry for almost two decades, and the Sea Slice is the latest example of this type of investment,” says Kurt Thomsen, Managing Director, Advanced Offshore Solutions. “We look forward to deploying the vessel’s impressive capability to the offshore wind market soon.”

Once deployed, the Sea Slice will be used for a variety of tasks including dive operations, surveying, and crew transfers.

DSD Shipping and three of its employees found guilty in APPS case Norwegian shipowner Det Stavangerske Dampskibsselskab AS (DSD Shipping) and three of its senior engineering officers—Bo Gao, Xiaobing Chen and Xin Zhong—have been convicted by a federal jury in Mobile, AL, with obstructing justice, violating the Act to Prevent Pollution from Ships (APPS), witness tampering and conspiracy. A fourth employee, Daniel Paul Dancu pleaded guilty in October.

According to the Department of Justice, in January 2010 DSD Shipping knew that the oily water separator on board its 106,541 dwt crude oil tanker Stavanger Blossom was inoperable. In an internal memo, DSD Shipping noted that the device could not properly filter oil-contaminated waste water and stated that individuals “could get caught for polluting” if the problem was not addressed.

However, instead of repairing or replacing the oily-water separator, DSD Shipping opted to use various methods to bypass the device and discharge oily-wastes into the ocean.

According to the DOJ, during the last months of M/T Stavanger Blossom’s operations, the ship had discharged about 20,000 gallons of oil-contaminated water before reaching the Port of Mobile.

Evidence at trial showed that DSD Shipping employees cleaned the vessel’s fuel oil sludge tank, removed about 264 gallons of sludge and placed the waste oil into plastic garbage bags. The sludge bags, hidden aboard the ship from port authorities, were moved to the deck of the vessel where Xin Zhong threw them overboard into the ocean.

According to the court, after arriving at

the Port of Mobile, Chen and Zhong lied to the U.S. Coast Guard about the discharge of sludge and ordered lower ranking crewmembers to do the same.

Gao was convicted of one count of conspiracy and two counts of obstruction of justice. Chen was convicted of one count of violating APPS, three counts of obstruction of justice and one count of witness tampering. And finally, Zhong was convicted of two counts of violating APPS, two counts of obstruction of justice and one count of witness tampering.

DSD Shipping could be fined up to $500,000 per count in addition to other possible penalties.

Meanw hile, Gao, Chen and Zhong could each face up to 20 years in prison for their violations.

December 2015 MARINE LOG 7

UPDATE Alaska Class Ferry underway at Vigor

SAFE Boats wins Colombian government vessel contract SAFE Boats INTERNATIONAL has won a contract to build a series of Type-F Riverine Interceptor Vessels for the Colombian Navy and Coast Guard.

SAFE Boats, Bremerton, WA, has worked with the Colombian military to understand the complexities of both its Navy and Coast Guard missions. “The Colombian Coast Guard currently has over 20 SAFE Boats in their service,” explains John Hotz, Director of Sales for Latin America and the Caribbean. “We have worked very closely with the Colombian military to understand just how aggressive and remote their missions can be and to develop a boat that will significantly enhance their patrol and interdiction capabilities on the large rivers of Colombia.”

The Type-F Riverine Incerpetor is 30 ft long and travels at a maximum speed of more than 37 knots with a 200 nautical mile range. The high-speed vessel is designed with twin Yamaha outboard engines, a tropical

climate retractable canopy, forward and aft machine gun mount foundations and a 10-person seating capacity which includes shock mitigating seats by SHOXS for five crewmembers. Air deployable by fixed wing, rotary wing and commercial mover, the vessel will perform offensive patrolling, combat drug trafficking, piracy, arms and explosives smuggling missions.

Additionally, the shallow draft aluminum vessel’s design enables it to conduct vesselto-vessel boarding operations to guarantee the security of commercial shipping lines within Colombia.

The contract is the third major Colombian Navy/Coast Guard program awarded to SAFE Boats International.

Beyond the Type-F boats, programs at the builder include the construction of Type-B 41 ft high-speed Open Coast Interceptor vessels and Type-C 38 ft Coastal Cabin Patrol Boats.

The new Alask a Class FerrIES’ design and production will be the result of a group effort from shipbuilder Vigor Industrial, naval architecture and marine engineering firms Elliott Bay Design Group and Glosten Associates, and Finland-based Cadmatic.

The new ferries, being built for the Alaska Marine Highway System (AMHS)

by Vigor Industrial’s Vigor Alaska shipyard, will be 280 ft long and carry up to 450 on board, with seating for 300 and capacity for 53 standard size vehicles.

The vessels, the first AMHS ferries built in the state of Alaska, will also be the largest ever built in the state. The boats, which are being built in modules, are currently under construction at the yard.

Elliott Bay Design Group provided the design development of the vessels, working closely with AMHS and Vigor under the terms of the Construction Manager General Contractor contract.

Cadmatic’s 3D CAD/CAM engineering software system will be used for the design and production of the new ferries.

The Glosten Associates will deliver the design in the imperial unit versions of the Cadmatic Hull and Outfitting.

Cadmatic “has offered a unique opportunity to evaluate a world-class software platform,” says Alan Coffin, Senior Project Manager at Vigor. “By opening the doors to new technologies, we anticipate improved efficiencies and advancement of our shipbuilding capabilities.”

The new ferries are scheduled for delivery in 2018.

Alternative energy for NY: Natural gas port vetoed, offshore wind stays strong The Port Ambrose Liquefied Natural Gas Deepwater Port—a deepwater port consisting of a submerged buoy system for natural gas deliveries in federal waters approximately 19 miles from the New York shore—was vetoed by New York Governor Andrew M. Cuomo last month.

Cuomo cited security and economic concerns along with the potential to negatively impact offshore wind development as his reasons for vetoing the project.

“My administration carefully reviewed this project from all angles, and we have determined that the security and economic risks far outweigh any potential benefits,” said Governor Cuomo. “Superstorm Sandy taught us how quickly things can go from bad to 8 MARINE LOG December 2015

worse when major infrastructure fails—and the potential for disaster with this project during extreme weather or amid other security risks is simply unacceptable.”

The Port Ambrose Liquefied Natural Gas Deepwater Port was proposed by Liberty Natural Gas, LLC, and under the Deepwater Port Act required the approval from both the Governors of New York and New Jersey.

The project was expected to provide 400 million cubic feet of natural gas per day, enough to meet the energy needs of 1.5 million homes.

The offshore wind project Governor Cuomo cited as another reason for the veto, the Long Island-New York City Offshore Wind Project, is a public-private partnership

by the New York Power Authority, Long Island Power Authority and Con Edison, would be located in the Atlantic Ocean, approximately 13 nautical miles off the Rockaway Peninsula.

The project is proposed for 350 MW of generation of power with the ability to expand to 700 MW. A 350 MW wind facility operating at 40 percent of its capacity would generate about 1,226,000 megawatthours per year, enough energy for about 112,000 homes.

The use of wind energy, more specifically the 350 MW wind facility, would displace about 540,000 tons of CO 2 annually for the region—that’s equivalent to removing 120,000 cars from local roads.

Inland • Coastal • Offshore • Deepsea

Nauta Ship Repair gets trawler contract Poland’s Nauta Ship Repair Yard has been tapped to build an 87 m fishing trawler for an unnamed Scottish owner. The contract marks another important milestone for the company’s newbuilding activities.

“So far the yard has built mainly partly equipped fishing trawlers,” explains Nauta Ship Repair Yard CEO Krzysztof Juchniewicz. “Now we have started the next stage, which is the construction of turnkey vessels, where we will not only build the steel hull but integrate all sophisticated equipment.”

The ability to increase its newbuild activities is thanks-in-part to the acquisition of a new land and water area after its production facilities were moved to the former site of the Gdynia Shipyard.

Established in 1926, Nauta specializes in building vessels and hulls, repairs and classification inspections of civilian crafts as well as repairs and rebuilding of military

craft. The shipyard is also getting increasingly involved in newbuilds and production of steel offshore structures. Over 90 years of its activity, Nauta has performed extensive repairs on various types of ships. It has also designed and built nearly 500 fishing and special purpose vessels.

During the last two years, the yard has signed contracts for 12 partly outfitted purse seiner trawlers for Danish and Norwegian customers.

For this specific fishing trawler project, Nauta will equip the vessel with fish finding equipment and catching and storage system.

Wärtsilä will provide a complete propulsion plant which includes 7,000 kW main engine and two bow thrusters.

Another oil company pulls out of Alaska Offshore exploration prog rams in Alaska are proving to be tougher than expected with leases returning disappointing results and the federal regulatory environment seemingly unpredicatable. Alaska’s Chukchi Sea is turning into a revolving door of sorts with oil companies making an exit. Last month, Norwegian multinational oil and gas company Statoil decided to exit Alaska following recent exploration results in neighboring leases. The leases are no longer considered competitive within the company’s global portfolio.

The move out of Alaska means Statoil can maximize its exploration portfolio in other regions.

“Since 2008 we have worked to progress

WORKBOATS • COMMERCIAL VESSELS • OIL RIGS AND PLATFORMS • HOTELS AND LAND-BASED SYSTEMS

C

our options in Alaska. Solid work has been carried out, but given the current outlook we could not support continued efforts to mature these opportunities,” says Tim Dodson, Statoil’s Executive Vice President of Exploration.

Statoil will leave 16 operated leases, as well as its stake in 50 leases operated by ConocoPhillips—all leases are in the Chukchi Sea. The leases, awarded in 2008, will expire in 2020.

The Statoil announcement comes on the heels of Shell ceasing its exploration of the Burger J well in the Chukchi Sea. The well provided disappointing results for Shell, and the company opted to seal it up and abandon it, all in accordance of U.S. regulations.

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CSA environmental awards recognizes 1,601 ships Last month, the Chamber of Shipping of America (CSA) awarded Certificates of Environmental Achievement to 1,601 ships, owned by 71 companies, with a total of 13,409 years of environmental excellence.

“These awards celebrate the dedication to environmental excellence of our seafarers and the company personnel shore-side who operate our vessels to the highest standards,” says Kathy J. Metcalf, President of CSA. “In today’s world, it seems our industry only gets front-page news when spills or other environmental problems occur. It is encouraging to see how many vessels go for years achieving environmental excellence. It

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should be clear to the American public that we in the maritime industry take our stewardship of the marine environment very seriously.”

Among the companies who own multiple award winning vessels were Crowley Maritime Corporation and Foss Maritime.

In total, Crowley’s 101 vessels logged a combined 984 years of service without incident. Of those, 46 of the vessels have gone without incident for ten or more consecutive years.

For Foss Maritime, a total of 78 of its, and its subsidiaries’, vessels were recognized for their environment achievements.

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December 2015 MARINE LOG 9

UPDATE biz notes New contracts bolsters Conrad’s orderbook

NTSB ends El Faro search mission, VDR never found Following the sinking of the cargo ship El Faro, the National Transportation Safety Board with the help of the U.S. Navy and Coast Guard set out to find the missing ship along with its voyage data recorder (VDR) or “black box.” The sinking of the ship claimed the lives of all 33 on board.

As we reported last month, the 790 ft U.S.-flag ship operated by TOTE Maritime went missing during Hurricane Joaquin.

The ship was found on October 31, upright at a depth of 15,000 ft with its navigation bridge and VDR missing. Two weeks after the initial find, the NTSB announced that they had located the missing part of the ship, but the VDR remained lost.

On November 16 the NTSB announced that no fur ther search missions were planned, and the investigation into what caused the accident would be conducted without the assistance of the VDR. “Over the years we’ve completed many

investigations without the aid of recorders and other investigative tools,” said NTSB Chairman Christopher A. Hart. “While it is disappointing that the voyage data recorder was not located, we are hopeful that we’ll be able to determine the probable cause of this tragedy and the factors that may have contributed to it.”

Sonar equipment towed from the U.S. Navy tug the USNS Apache detected El Faro on October 31, and the finding was confirmed by CURV-21, a remotely operated vehicle capable of deep-sea search activity on November 1. Ten days later, on November 11, the navigation bridge was found but neither the mast nor the VDR were found near the structure.

After five additional days of searching with CURV-21, the NTSB determined the VDR would likely not be located—subsequently ending video documentation efforts for the mission.

Bordelon takes delivery of specialized ULIV Bordelon Marine, Lockport, LA, has taken delivery of the DP2 Ultra-Light Intervention Vessel (ULIV) Brandon Bordelon.

The vessel was built at Bordelon Shipbuilders, Houma, LA. The 257 ft x 52 ft vessel features a helideck, a 60 ton AHC crane with 3,000 m of wire, POB (60), a mezzanine deck with internal office and control rooms capable of supporting two full work class ROV systems.

The vessel also has 6,200 square feet of clear useable deck space.

The highly specialized ULIV is equipped with two Sonardyne Ranger 2 Pro thru-hull Ultra-Short BaseLine (USBL) full systems.

The high performance acoustic position reference system is designed for tracking 10 MARINE LOG December 2015

underwater targets and positioning dynamically positioned DP vessels. The USBL positioning method calculates the position of a subsea target by measuring the range and bearing from a vessel-mounted transceiver to an acoustic transponder fitted to the target.

“We are very excited to introduce the M/V Brandon Bordelon,” says CEO Wes Bordelon. “This vessel is the next generation design of the Stingray series and continues our commitment of the ULIV concept to the subsea market. With the addition of a helideck and other integrated systems the Brandon [Bordelon] provides an additional highly capable and low cost vessel option to our clients.”

Like many shipbuilders along the U.S. Gulf of Mexico, Conrad Industries, Inc., Morgan City, LA, is feeling the pinch of the downturn in the oil patch and the drop in the price of oil. In announcing Conrad Industries, Inc.’s third quarter earnings for 2015, company President and CEO Johnny Conrad says, “Our results for the first nine months of 2015 reflect a continued challenging operating environment, with decreased demand and pricing pressure in both new construction and repair. The repair market continues to be soft, which we believe is due primarily to the decline in crude oil prices.” But a spate of new construction contracts in the fourth quarter of 2015 have bolstered the shipyard’s orderbook.

Strength in diversification One of the strengths of Conrad Shipyards has always been its diversification.

It builds tugs, towboats, ferries, ocean tank barges, LPG barges, deck barges, lift boats, and specialty barges. It’s broadened its portfolio even further with the expansion of its Deepwater South shipyard, where it can build large Articulated Tug Barge (ATB) units.

While the company’s order backlog slipped to $91.1 million down from $135.0 million a year ago at the end of the Sept.

30—it landed $147.5 million in new contracts as of November 13 of this year.

“We believe our capital improvement program at our Deepwater South yard has strengthened our ability to compete for these types of projects,” says Johnny Conrad. He says that the company will “continue to be responsive to the changing market conditions and look for ways to continue to enhance shareholder value.”

Conrad’s backlog includes the 2,200 m 3 LNG bunker barge for WesPac Midstream, an 80,000 bbl ATB unit for John W. Stone, a cargo vehicle ferry for the Steamship Authority, and several 116 f t AT B tugs for Harley Marine Services.

For the quarter ended Sept. 30, 2015, Conrad had net income of $2.0 million and earnings per diluted share of $0.35 compared to net income of $4.5 million and earnings per diluted share of $0.74 during the third quarter of 2014.

inside washington

In search of funding for a new Great Lakes heavy icebreaker Great Lakes shipping operates on a 42-week season, 12 of which normally require icebreaking services. Cargo movements during the ice season, which runs from December 16 to April 15, usually reach about 20 million tons or 15 percent of the annual total, according to the Lake Carriers Association. Without adequate icebreaking services, winter shipping on the Great Lakes grinds to a halt.

The last two winters have been particularly brutal. During the 2013-2014 winter, U.S. flag cargo movements on the Great Lakes dropped by nearly 7 million tons, causing at least two steelmakers to reduce production, several power plants to nearly exhaust their supply of coal, and a total estimated cost of nearly 4,000 jobs and $700 million in lost business revenue.

This past winter resulted in an estimated decrease in cargo of 3.2 million tons, costing the economy $355 million in lost revenue and nearly 2,000 jobs.

A group of U.S. Senators from the Midwest want to do something about it. They have sent a letter to the Chairman and

Ranking Member of the Senate Appropriations Committee Subcommittee on Homeland Security calling for adequate funding in the Fiscal Year 2016 appropriations legislation for the U.S. Coast Guard to design and build a new heavy icebreaker for the Great Lakes.

The group was led by Senator Debbie Stabenow (D-MI) and Senator Gary Peters (D-WI), who sent a letter to the Honorable John Hoeven (R-ND), Chairman, and The Honorable Jeanne Shaheen (D-NH), Ranking Member of the Senate Appropriations Committee Subcommittee on Homeland Security.

The letter was also signed by Senators Tammy Baldwin (D-WI), Amy Klobuchar (D-MN), Al Franken (D-MN), Bob Casey (D-PA), Joe Donnelly (D-IN) and Sherrod Brown (D-OH).

“Heavy ice cover disrupts shipping and commerce on the Great Lakes, resulting in a severe loss of economic activity, revenue and jobs that depresses both the regional and national economy,” wrote the Senators. “It is essential that Congress provides

... the Coast Guard with the resources they need to keep open shipping lanes in the Great Lakes and to conduct search and rescue missions to keep ships and their crews safe during winter’s cruelest months.”

With a total of nine icebreaking-capable cutters—one of which is the heavy icebreaker USCGC Mackinaw (WLBB30)—the Coast Guard has struggled to combat near record-breaking ice cover on the Great Lakes in recent winters. Peters, a member of the Commerce Committee’s Subcommittee on Oceans, Atmosphere, Fisheries and Coast Guard, has called for the inclusion of a heavy icebreaker in the Coast Guard Authorization Act of 2015.

Senator Stabenow, Co-Chair of the Senate Great Lakes Task Force, asked for Congress to support a new Great Lakes icebreaker.

On May 18, 2015, the House unanimously passed by voice vote H.R. 1987, the Coast Guard Authorization Act of 2015, which sets funding in FY 2016 and FY 2017 for the design and construction of a new USCG icebreaker for the Great Lakes.

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December 2015 MARINE LOG 11

BEST ships of 2015 This year’s award winners range from the world’s First LNGFueled containership to an ethane-powered ship to a green towboat for the Snake-Columbia River System

The Isla Bella will reduce NOx emissions by 98 percent, SOx emissions by 97 percent and CO2 emissions by 76 percent

Isla Bella: World’s First LNG-Fueled Containership TOTE Maritime’s 3,100-TEU containership Isla Bella was due to set sail for San Juan, PR, on November 24, marking the first time a ship in a Jones Act liner service will burn Liquefied Natural Gas (LNG) as a marine fuel.

When the 764-foot-long Isla Bella transited the Panama Canal back on October 30 on her way to the Port of Jacksonville, Panama Canal Administrator/CEO Jorge L. Quijano called her “a true engineering feat.”

Among the principal maritime stakeholders involved in the successful launch of the Isla Bella and her sister Perla del Caribe are: owner and operator TOTE, shipbuilder General Dynamics NASSCO, designer DSEC (Daewoo Shipbuilding and Marine Engineering’s ship design arm), engine licensee MAN Diesel & Turbo, classification society ABS, and regulator U.S. Coast Guard.

The two Marlin Class containerships 12 MARINE LOG December 2015

were contracted by TOTE in December 2012 and are being built at a total cost of about $375 million.

The 764-ft Isla Bella is equipped with the world’s first dual-fuel slow-speed engine, an 8L70ME-GI built by Korea’s Doosan Engine, under license from MAN Diesel & Turbo. With a 3,100 TEU capacity, the LNG-powered Isla Bella reduces NOx emissions by 98 percent, SOx emissions by 97 percent and CO2 emissions by 76 percent.

The technology makes the ship one of the world’s most environmentally friendly containerships afloat.

Using LNG will allow the Marlin Class Isla Bella to be fully compliant with strict emissions regulations while operating in both the North American Emissions Control Area and the U.S. Caribbean ECA. At the time of her delivery, Kevin Graney, Vice President and General Manager of

General Dynamics NASSCO, said, “Successfully building and delivering the world’s first LNG-powered containership here in the United States for coastwise service demonstrates that commercial shipbuilders, and owners and operators, are leading the world in the introduction of cutting-edge, green technology in support of the Jones Act.” The moment is bittersweet for TOTE as it unfolds within the shadow of the tragic loss of the SS El Faro with all hands aboard during Hurricane Joaquin on October 1. The ship’s crew of 28 and five Polish nationals onboard were lost. The U.S. Navy, working with the National Transportation Safety Board (NTSB), has located the ship in waters 15,000 feet deep near the Crooked Island in the Bahamas.

The Isla Bella will be joined by the Perla del Caribe in Puerto Rico cargo service in the first quarter of 2016.

BEST ships of 2015

SAKIGAKE: Japan’s First LNG-Powered Tug

OHIO: Lng-Ready Product Tanker The 330,000 bbl Ohio became the first product tanker to be built with consideration for the future use of LNG as fuel when it was delivered earlier this year to Crowley Maritime Corp. by Aker Philadelphia Shipyard, Philadelphia, PA. The Ohio received ABS LNG-Ready Level 1 approval, meaning Crowley has the option to convert the tanker to Liquefied Natural Gas (LNG) propulsion in the future.

The Ohio, along with her three sister ships being built at Aker Philadelphia, is based on a proven Hyundai Mipo Dockyards (HMD) design which incorporates numerous fuel

efficiency features, flexible cargo capability, and a slow-speed diesel engine built under license from MAN Diesel & Turbo. The 600 feet long Ohio is capable of carrying crude oil or refined petroleum products.

Crowley’s Seattle-based, naval architecture and marine engineering subsidiary Jensen Maritime is providing construction management services for the product tankers. Jensen now has an on-site office and personnel at the Philadelphia shipyard to ensure strong working relationships with shipyard staff and a seamless construction and delivery program.

NEW MINI TANKER for New York Harbor Blount Boats, Inc., Warren, RI, delivered the Chandra B, a new mini-tanker for American Petroleum & Transport, Inc., Miller Place, NY. The 79 ft double-hull bunkering tanker operates in New York Harbor and New Jersey supplying fuel to ferries, dredges, and other vessels.

Propulsion power for the tanker is supplied by two EPA Tier 3-compliant Cummins Model QSL9, six-cylinder diesel engines rated at 330 hp at 1,800 rev/min with ZF Model W325 marine hydraulic gears that will have 4.91:1 reduction ratio. The

This past year, NYK took delivery of Sakigake, Japan’s first LNG fueled tug. Built at NYK’s wholly ow ne d subsid i a r y Kei h i n Doc k Co’s Oppama shipyard, the 37.2m x 10.2m Sakigake is operated by Wing Ma r it i me S er v ic e C or porat ion, mainly in the ports of Yokohama and Kawasaki. Wing Maritime also operates the hybrid tug Tsubasa.

The Sakigake is equipped with two Niigata 6L28AHXDF dual-fuel engines, each developing 1,618 kW. Propulsion is supplied by two Niigata Z-Pellers.

The DF engines can burn either LNG or diesel oil. The environmental advantages of operating on LNG as compared with conventionally powered tugs that use marine diesel oil are apparent—Sakigake emits about 30% less CO2, 80% less NOx, and no SOx. While the project posed several challenges—the relatively small size and limited amount of space on the tug, and the large variation in engine power—Keihin Dock was able to achieve the desired level of environmental performance while maintaining the same hull form and steering performance of existing tugs. Keihin Dock worked closely with both Niigata Power Systems and Air Water Plant & Engineering Inc. to develop equipment for supplying LNG. The project was supported by subsidies from Japan’s Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure and Transport. ClassNK also provided joint research support.

self-propelled Chandra B is equipped with a 50 hp Wesmar hydraulic bow thruster, providing it with enhanced maneuverability.

Designed by Farrell & Norton Naval Architects, Newcastle, ME, the Chandra B is built to USCG Subchapter “D” specifications and is less than 100 gross tons. The tanker has cargo fuel tankage capacity of 56,450 gallons.

The double-hull Chandra B will replace the 1979-built single hull Capt. Log in American Petroleum & Transport’s (APT) fleet. APT has had to retire all of its single-hull tankers because of OPA 90 regulations.

December 2015 MARINE LOG 13

BEST ships of 2015

NEIL ARMSTRONG: First of New Class of Research Vessels

MARJORIE C: New Jones Act Conro Capable of carrying up to 1,200 cars and 1,400 TEU of containers, the Combination Container and Roll-on/Roll-Off (ConRO) vessel Marjorie C entered Jones Act service this year between the U.S. West Coast and Hawaii.

Built by VT Halter Marine, Pascagoula, MS, the Marjorie C was engineered from a proven design by Grimaldi at Croatia’s Uljanik Shipyard. The 692 ft x 106 ft ConRO has a draft of 31 ft, deadweight of 21,132.5 metric tons, with nine decks. It has a stern

JS INEOS INSIGHT: First EthanePowered Ship Emblazoned on the JS Ineos Insight’s hull is the phrase, “Shale Gas for Manufacturing.” Built specifically to transport shale gas from the U.S. to Europe, the JS Ineos Insight is the first of eight 180m x 26.6m ethane gas carriers built by China’s Sinopacific for Denmark’s Evergas.

Named on July 14, the JS Ineos Insight can not only carry ethane, LPG or LNG, but can also burn ethane, LNG and conventional diesel in its two Wärtsilä 50DF dual fuel engines.

14 MARINE LOG December 2015

ramp capacity of 350 metric tons. The ship has a service speed of 21.5 knots.

The vessel’s design incorporates the highest level of operating efficiencies as well as reduced environmental impacts.

“After more than three and a half years of planning and construction, we are pleased to unveil a ship that has been designed to not only accommodate the varying needs of our customers, but a vessel that minimizes our carbon footprint...” said Pasha Hawaii’s President and CEO, George Pasha, IV.

The eight Ineos ships will transport over 800,000 tons of ethane gas at -90°C per annum across the Atlantic from the U.S. to Norway and Scotland.

Classed by Bureau Veritas, the Dragon vessels were originally designed as dualfuel LNG/diesel-powered vessels, with two 1,000 m3 LNG tanks on deck powering two Wärtsilä 6L20 DF main engines with a total output of 2,112 kW and two shaft generators with a total output of 3,600 kW power. The vessels will initially transport ethane from the U.S, to the U.K. Ineos refineries, the ability to also burn ethane was added to allow use of the cargo gas as fuel.

At the christening of the JS Ineos Insight, Ineos Chairman Jim Ratcliffe said, “We have seen how U.S. shale gas revolutionized U.S. manufacturing and we believe these huge ships will help do the same for Europe.”

According to Bureau Veritas Business Development Manager Martial Claudepierre, the ability to burn ethane and LNG as fuel in the Dragon Class ships “is a major step forward in the use of clean fuels.”

This past Halloween, t he f irst-ofclass oceanographic research vessel R/V Neil Armstrong (AGOR 27) set sail from Dakota Creek Industries, Anacortes, WA, to San Francisco, CA, on its inaugural voyage. As we went to press, the Neil Armstong was waiting its turn to pass through the Panama Canal on its way north to Woods Hole, MA. The ship will be operated by the Woods Hole Oceanographic Institution under a charter party agreement with the Office of Naval Research (ONR).

Designed by Guido Perla & Associates, Inc., Seattle, WA and owned by the U.S. Navy, the 238 ft x 50 ft Neil Armstrong has four main 1,400 kW diesel generators, two 876 kW propulsion motors, and two controllable pitch propellers. The ship has a sustained speed of 12 knots and maximum speed of 12.8 knots.

The ship was classed by ABS Under 90 meter rules A1, Circle E, AMS, ACCU, NIBS, Ice Class D0, UWILD, 46 CFR Subchapter U, SOLAS (Oceanographic Vessels), MARPOL. The Neil Armstrong’s sister vessel, the R/V Sally Ride (AGOR 28), is also under construction at Dakota Creek Industries.

Neil Armstrong Class AGORS incorporates the latest technologies, including high-efficiency diesel engines, emissions controls for stack gasses, and new information technology tools both for monitoring shipboard systems and for communicating with the world. These ships will provide scientists with the tools and capabilities to support ongoing research including in the Atlantic, western Pacific and Indian Ocean regions across a wide variety of missions.

The lab areas include the main lab of 1,023 ft2, a wet area of 398 ft2, computer area of 311 ft2, and staging area bay of 303 ft2.

Neil Armstrong will be capable of assisting with integrated, interdisciplinar y, general purpose oceanographic research in coastal and deep ocean areas. The vessel will operate with a crew of 20 with accommodations for 24 scientists.

BEST ships of 2015

CROWN POINT: New Generation Green Tug

MULTRATUG 28: A Hybrid Tug Tidewater Transportation and Terminals, Vancouver, WA, recently took delivery of the Crown Point, the first in a series of three 102 ft x 38 ft towboats being built at Vigor Industrial, Portland, OR. The three towboats are the first new vessels to be built for the Tidewater fleet in 30 years, and are critical for the company to meet the anticipated rising customer demand on the Columbia-Snake River system. Marc Schwartz, Maintenance & Engineering Manager at Tidewater, says, “The vessels will strengthen our fleet, as well

as reinforce Tidewater’s commitment to our customers, community, and environment.”

Designed by CT Marine, Naval Architects and Marine Engineers of Edgecomb, ME, the Crown Point is an environmentally friendly tug with EPA Tier 3 compliant diesel engines that reduce air emissions and improve fuel efficiency. The Crown Point is fitted with an enhanced steering system to help operate on the river, which often experiences high winds, extreme currents and swells. The towboat is fitted with the latest leading edge navigation and communications equipment.

BARZAN: New Class of Gas Ready Boxships

Recently named in a ceremony at Sout h Korea’s Hy undai Samho Heav y Industries’ shipyard, Barzan is the first in a series of six 18,800 TEU containerships ordered by Dubai headquartered United Arab Shipping Company (UASC). It’s the first vessel to receive classification society DNV GL’s new GAS READY notation. Her five sister ships and eleven 15,000 TEU vessels of UASC’s newest eco-ship generation, will also receive the notation.

The ships have been designed and constructed to enable a quick and cost efficient retrofit to LNG fueling at a later stage. The

GAS READY notation, with nominators (D, S, MEc, AEi) demonstrates that the vessel is in compliance with the gas fueled notation rules, that structural reinforcements to support the fuel containment system (LNG tank) have been verified (S), that the main engines installed can be converted to dual fuel (MEc ) and that the auxiliary engines installed can be operated on gas (AEi).

As well as being LNG ready, Barzan incorporates several innovative energy saving methods, including a Siemens’ Siship SGM environmentally friendly drive and power generation system.

This past year, Net herla nd sbased towage and salvage specialist Multraship took delivery of Multratug 28, a Damen ASD 2810 Hybrid tug built at Damen Shipyards Galai, in Romania, as part of a fleet expansion program.

Classed by Lloyd’s Register, the hybrid Multratug 28 is 28.67m x 10.43m, with a maximum draft of 4.9m. The propulsion system includes two MTU 16V4000M63R diesel engines with one MTU 12V 2000 M41B propulsion genset of 800 kvA, 440V-60Hz. The battery pack are two 120 kWh. Two Rolls Royce US205 azimuth thrusters provide propulsion.

The tug has a bollard pull of 62 tons, diesel direct speed of 13 knots, diesel electric speed of 8 knots, and battery pack speed of 4 knots.

The ASD 2810 HYBRID is developed to save fuel by 30% and to reduce emissions by 50%. To achieve this the vessel is provided with a propulsion system that can operate diesel-direct, diesel-electric or fullyelectric. Fully-electric sailing on the batteries, with zero emissions and extremely low noise levels, is possible for time periods of up to one hour at a speed of 4 knots.

In June 2014, the first Damen ASD 2810 Hybrid was delivered to Iskes Towage & Salvage. Being green does not mean sacrificing power, the Bernardus still has a bollard pull of 60 tonnes. The Bernardus operates in the Port of IJmuiden near Amsterdam, the Netherlands.

“This hybrid tug is a unique concept,” says Dinu Berariu, Project Manager at Damen Shipyards Galaţi.

It’s “hybrid configuration will enable Multraship to lower fuel costs by up to 30% and emissions by up to 60%.”

December 2015 MARINE LOG 15

BEST ships of 2015

ESVAGT FROUDE: Specialized Wind Farm Vessel ESVAGT has entered the offshore wind industry with the world’s first purpose-built SOV, Esvagt Froude

As of September this past year, Denmark ’s ESVAGT had new ow ners ; 3i I n f r a s t r u c t u r e a n d A M P C a pi t a l acquired the shares of A.P. Møller-Maersk Group and ESE-Holding. While ESVAGT’s primary market will continue to be oil and gas support and standby rescue in the North Sea, the company is broadening its portfolio with a push into the offshore wind energy market.

This past summer, ESVAGT entered the offshore wind industry with the christening

of the world’s first purpose-built Service Operation Vessels at Siemens AG in Rostock and Hamburg, Germany.

The Service Operation Vessels (SOV), Esvagt Froude and Esvagt Faraday are each 83.7m x 17.6m, with a draft of 6.5m. Both of the Danish-flag SOVs were built in Norway by Havyard Ship Technology and are based on a Havyard 832 SOV design. The SOVs both have diesel-electric propulsion and DC power systems, enabling optimized fuel and energy efficiency and crew comfort.

The service speed is 14 knots.

The SOVs are essentially “service stations at sea,” offering technicians a safe, efficient platform for wind turbine maintenance.

Using the ship’s DP system, the ship can connect to wind turbines via its Ampelmann A-type Walk-to-work hydraulic gangway system offering a stable, safe platform to connect to the wind turbine.

Each offers accommodations for 60 people. The vessels are designed to reduce the level of vibration and increase the level of comfort for everyone onboard.

“As a supplement to the “Walk-to-Work” gangway, we have equipped the Service Operation Vessels with the newly developed ESVAGT Safe Transfer Boats (STB 7 and STB 12),” says Søren Nørgaard Thomsen, Managing Director for ESVAGT. “They are designed in-house based on more than 20 years of experience in boat development and more than 100,000 boat transfers. These boats will also provide the industry with additional efficiencies and cost reductions.”

Each of the ships carry ESVAGT STB 7B Safe Transfer Boat, ESVAGT STB 12A Safe Transport Boat, ESVAGT FRB 15C Fast Rescue Boat.

A third ESVAGT SOV is on order and under construction at Havyard for delivery in 2016. The third ESVAGT SOV will service the 400 MW Dudgeon Wind Farm off the East Coast of England in the fall of 2016.

VASCO DE GAMA: First 18,000 TEU Box Ship from a Chinese Yard As we went to press, the world’s third largest containership company, CMA CGM Group, Marseilles, France, was closing in on the acquisition of Singapore-based NOL, the world’s fourth largest. If successful, privately held CMA CGM would leapfrog over MSC to become number two in the world.

A big part of CMA CGM’s success is its investments in larger, more energy efficient tonnage to improve pricing and economies of scale. An excellent example is the CMA CGM Vasco De Gama delivered this summer to CMA CGM by China State Shipbuilding Corporation (CSSC).

With a length of 399 m, the 18,000 TEU vessel is the largest containership in the CMA CGM Group and is the first 18,000 TEU containership to be built by a Chinese shipyard. Flying the U.K. flag, CMA CGM Vasco De Gama is equipped with the latest environmental technologies including a latest generation main engine, a twisted leading edge rudder with bulb from Becker 16 MARINE LOG December 2015

Marine Systems and an optimized hull design. These innovations decrease the vessel’s CO 2 emissions by 10% compared to the previous vessel generation. With an estimated emission of 37g of CO2/km for each

container carried, the giant containership provides one of the world’s greenest goods transportation options.

The ship’s environmental footprint meets the 2025 energy efficiency regulations.

CMA CGM’s Vasco De Gama is the largest containerhip in the group’s fleet

Shutterstock/ra2studio

voices of the industry

Thought leaders of 2015 Special Advertising supplement

voices of the industry

Transforming class to ensure safety in a more effective way, while improving the marine transportation system

W

“At ABS, we are creating a clear path for new technology to the future.”

Jim Watson President and COO ABS Americas Division

S2 MARINE LOG December 2015

hile we are seeing vessels that burn Liquefied Natural Gas (LNG) as a marine fuel operating for the first time in the U.S., more work needs to be done to grow shore-side bunkering infrastructure to support the strong interest for cleaner fuels in the marine transportation sector.

At ABS, we are creating a clear path for new technology to the future. ABS is working with the U.S. Coast Guard, industry, and with groups within our organization to make sure we get it right. We understand that this development cannot occur in a vacuum, but with full awareness of international standards and best practices.

In March 2014, ABS released its Bunkering of Liquefied Natural Gas-fueled Marine Vessels in North Amer ica repor t and prov ided updates in the second edition published earlier this year. The guidance provides an excellent project roadmap outlining the operational, technical and regulatory issues for those considering LNG as a fuel.

This past year saw the first three U.S.-flag LNG-fueled vessels enter service—two Platform Supply Vessels owned by Harvey Gulf International Marine and the 3,100-TEU containership Isla Bella, owned by TOTE—all of which are ABS classed.

The development of shore-side LNG fueling infrastructure is still

in its earliest stages. Harvey Gulf International Marine is refueling its PSVs at its terminal in Port Fourchon, LA. Next year, TOTE will use the first LNG bunker barge to refuel its containership at the Port of Jacksonville.

If LNG as a fuel catches on as we envision, there will be LNG-fueled oceangoing ships calling at U.S. ports that will need to bunker. That whole bunkering infrastructure needs to be built. That’s very exciting, and we are in a great position here in the U.S. to create some of the worldwide standards.

When it comes to LNG, there is clearly more interest in the pipeline.

ABS has inked several Agreement In Principles with owners, designers and builders for LNG-fueled, LNG transport and LNG bunker vessels.

We are in designers’ offices and engaged with them on a variety of concepts for newbuilds—from bunker barges, tugs, and Articulated Tug Barge units to ferries, tankers, and cargo ships. We are currently working with BC Ferries for the conversion of one of their ferries to burn LNG. We also issued the first LNGReady approval in accordance with our Guide for LNG Fuel Ready vessels for the product tanker Ohio. The product tanker, built at Aker Philadelphia, is the first in a series of four for Crowley Maritime Corporation. By achieving compliance with

cLASSIFICATION

ABS will support the inland towboat fleet when Subchapter M comes into effect

Shutterstock/Al Mueller

the ABS Guide for LNG Fuel Ready Vessels, Crowley has the option to convert the product tankers to LNG propulsion at a later date having already been granted a conceptual review. The LNG-Ready endorsements provide owners with the flexibility to limit their initial investment while planning for the future conversion to dual fuel or gas-only.

SUBCHAPTER M One of the new developments on the inland waterways is the pending requirements for compliance with the Coast Guard’s Subchapter M. The requirements won’t have to change operations significantly.

The inland waterways marine transportation system is already very efficient.

Rather, it will establish baseline regulations for inspected towing vessels, and it defines the Towing Safety Management System (TSMS). We are encouraging companies to class their inland towboats and adopt the International Safety Management (ISM) standard. We don’t have a final rule yet, but I think it is inevitable. By proactively

demonstrating compliance with Subchapter M requirements, owners and operators can show their commitment to a more comprehensive approach to safety and environmental protection.

ABS is ready to help owners and operators interested in differentiating their vessels by surpassing minimum safety standards. We have performed a thorough gap analysis of the pending regulations and the recognized ABS Rules for Building and Classing Steel Vessels for Service on Rivers and Intracoastal Waterways to help vessels comply with both USCG and ABS rules.

We’re trying to provide a fairly smooth transition.

We have 300 surveyors and auditors, 200 engineers and naval architects in 30 offices across the U.S. ready to help with the process.

We’ve also established an ABS Subchapter M Center-of-Excellence in Paducah, KY. Looking to the future, we see an increasing desire in the maritime industr y to become more efficient. This trend is being driven by the demands of modern society.

That means companies are more and more interested in the collection and analysis of big data. Class societies have to be a part of that.

We have a means to measure just about anything as it relates to a vessel’s performance—from fuel efficiency to vessel maintenance to turnaround times in port. More and more of our clients are interested in big data and how they can use it to make their operations more efficient. IT can be of great value when you are trying to provide that type of service in measuring efficiency.

Going hand in hand with data collection and IT is cyber security.

We are finding that our clients want their IT systems and software certified. We are not going to shy away from cyber security problems. Just like any other engineering problem, we can deal with that.

We are in a unique situation because about 25% of new ships being ordered will be classed by ABS. In the next few years, that is going to be data that is going to be of tremendous value to our clients.

ABS is going to have the advantage of comparing across a broad section of the world fleet, from different flags, markets and operating conditions. We will, of course, maintain proprietary information, but that data will be aggregated.

When you think about it, that’s how we have always done it. That’s how we make ABS rules—based on the performance and design of a broad range of vessels. Now we can aggregate that data and analyze it. We are creating a future state for class that ensures safety in a more effective way while improving the marine transportation system.

December 2015 MARINE LOG S3

voices of the industry

Finding new solutions to increase power and operator efficiency

N

“Nautican continues to invest in R&D, finding new solutions for vessel owners to increase power and maneuverability, and reduce fuel use.�

ELIZABETH BOYD President

The Nautican team engineers high-performance integrated propulsion units and hydralift skegs

S4 MARINE LOG December 2015

autican has been investing in groundbreaking research and development for more than 40 years, from our pioneering use of hydrofoils to increase barge efficiency, to the development of advanced nozzle profiles, and the integration of propulsion and maneuvering systems for increased hydrodynamic efficiency and responsiveness.

Nautican continues to invest in research and development, finding new solutions for vessel owners to increase power and maneuverability, and reduce fuel use.

A significant change has occurred over the years in the maritime industry, which has led to the ability for Nautican to manufacture higher precision products. It is now increasingly easy and economical to

collect operating data from vessels in service and relay that information to engineers on shore. This empirical data opens up valuable new opportunities to more deeply understand the real operating environment of a vessel and the demands on the vessel equipment.

Using this data in innovative ways has allowed Nautican to engineer systems that meet specific vessel demands with greater efficiency.

Vessel designers may now work with vessel operators to gather large sets of operational data, instead of relying on a limited set of sea trial data or those rare, published fullscale trials. These data sets allow for more sophisticated analysis of a vessel’s operating needs, and provide a solid basis from which to engineer improvements and quantify results.

PROPULSION

Nautican Triple Rudders greatly improve the maneuverability of vessels with nozzles Recognizing the need for vessel operating companies to be able to realistically assign financial values to proposed fleet improvement projects to determine the return on investment, Nautican has recently worked with industry leading software developer HydroComp to develop a tool within their popular NavCad software package to meet this need. This tool, originally presented at the International Tug & Salvage conference in Hamburg, Germany in 2014, is a practical way for operating data from a vessel to be used to calculate the changes in total fuel consumption resulting from changes in propeller or nozzle type. This software can evaluate other proposed modifications, such as a re-engining, and it provides fuel savings calculations that fully reflect the vessels actual operating profile.

In addition to the HydroComp software tool, Nautican is working on other higher-level performance pre dic t ion to ols. These to ols incorporate next-generation developments in CFD software and integrate these software applications in a loop of performance predictions and full-scale testing to further improve the speed and accuracy of predictions, as well as refine the integration of various components of the system: propellers, nozzles, rudders, stator and hull.

There is tremendous potential to deliver tailored design solutions

that help vessel owners maximize efficiency and performance, while improving operating performance and reducing fuel costs, in both the increased computational power of these new CFD tools, and in the ability to use detailed real-life data in the fast and reliable NavCad analysis framework. Nautican partners with designers, manufacturers and vessel owners to consistently refine and improve upon this data to bring high-efficiency quality products to the market that uniquely match the needs of each vessel.

Nautican is a marine propulsion

company that engineers and manufactures hydrodynamic solutions, including patented Integrated Propulsion Units, High Efficiency Nozzles and Propellers, high aspect ratio Triple Rudders, Pre-Swirl Stators, and also Hydralift Skegs for barges. Our independently tested systems have been shown to increase power and maneuverability, while significantly reducing fuel use and maintenance needs.

To find out more about Nautican, our research and products, please scan the accompanying QR code.

December 2015 MARINE LOG S5

voices of the industry

MSI: helping customers reach compliance and meet equipment needs

M

“From the outset our approach has been to use our collective experience for the purpose of shifting as much complexity from the owner so that all parties can remain focused on their core competencies.�

Kevin Oakley Product Support Manager, TFS Group

S6 MARINE LOG December 2015

arine Systems Inc. was established in 1966 and today operates 12 service centers in key maritime markets across the US. We have wide distribution. We have a highly skilled and competent technical workforce onboard vessels everywhere in our diesel engine business. Those facts made for a strong expansion opportunity into other shipboard machinery spaces. In 2011 MSI launched our Ther mal, Fluid and Separation business unit and entered into distribution and service center agreements with several leading manufacturers of ancillary equipment systems. My role as Product Support Manager of the TFS group is to find and maximize opportunities with these products across the country.

With few exceptions nationally Marine Systems Inc. and our TFS group is the factory authorized marine distributor for Alfa Laval, Denora Water Technologies, US Watermaker, and Ampco Pumps. In select markets we also handle Atlas Incinerators, Nijhuis Wastewater Systems, Rivertrace Engineering as well as Compactors Inc. Our locations in Houma, Seattle, Paducah, Chesapeake and Thorofare are TFS centers with stock and technical support for those product lines.

That diverse range allows our existing customer base to consolidate many of their technical equipment

needs with MSI. Additionally our product portfolio is improving our exposure to new industrial markets and into equipment categories that make literally every commercial vessel afloat a potential client.

Reflecting on the past year and looking ahead in the ballast water treatment space our principle approach of future proof solutions comes to mind. It has taken tremendous flexibility to move from concept to successful delivery of our modular PureBallast TM platform.

The most critical element of that success has been the composition of our manufacturing and design partnership with Alfa Laval and Glosten.

From the outset our approach has been to use our collective experience for the purpose of shifting as much complexity away from the owner/ operator and shipyard as possible so that all parties can remain focused on their core competencies. A few examples will underscore the point.

One of the complexities we saw that Alfa Laval took the lead on handling was the conversion of their explosion proof equipment from the European standard to the American electrical standard to the satisfaction of class and flag. I can assure you that this was no trivial undertaking and to be candid was something the team had to react to swiftly. To have a manufacturer supporting this challenge to resolution in a matter of days not weeks

Ballast Water Treatment Systems

As the industry adapts to ballast water treatment requirements, MSI will continue to be a supplier and service center

is something less seasoned vendors would not have risen to the occasion on. This effort became vital in achieving our USCG hazardous zone acceptance and ABS certification of the module.

Kevin Reynolds and the team at Glosten have been in a leadership position on understanding ballast treatment regulations and design development from the beginning.

Just one of the ongoing challenges Glosten offers key support for is retrofit applications. The real constraints of space, interferences, and in service operations are individually daunting and collectively difficult circumstances to design into. The application of state of the art 3D mapping combined with the deck template/module interface design concept Glosten developed

Customers and their crews benefit from a very uniform ballast treatment platform to train on and work with

allows for a consistent approach and result. Customers and their crews benefit from a very uniform ballast treatment platform to train on and work with. This serves to minimize the amount of customization required into a variety of retrofit applications and saves tremendously on time and effort involved.

What we do at Marine Systems Inc. is well summarized by saying that we do sales and very complex service work everywhere our customer’s need it performed. We have done so for a long history with the factory training and backing of the

very best vendors and partners in the marine business. As the industry adapts to ballast treatment requirements, MSI will continue to be a supplier and service center that our customers can count on every time.

Nothing is as future proof as quality people. It takes a very diverse team effort to complete a successful ballast treatment system installation project. You can take your chances on assembling that team or work with those of us that are committed to letting you do what you already do best.

December 2015 MARINE LOG S7

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ELECTRIC & HYBRID

The all-electric Ampere, operated by Norway’s Norled

Call Me Ishmael, No Longer Marine hybrid and electric propulsion comes of age

By Allan Grant, Vice President, Business Development, Corvus Energy

C

all me Ishmael. Melville’s famous opening line in his novel Moby Dick refers to an outcast and could once have been the motto of the hybrid and electric marine industry. There were a number of projects where hybrid and full electric drivetrains were prototyped and they worked well…for a while. The limitation was always the battery technology, where lead acid batteries were just not suited to this type of application. As a result, these projects and technologies were “interesting” with “lots of potential” but not a serious technology for the mainstream marine industry.

The advent of lithium ion batteries has fundamentally changed the value proposition for the hybrid and electric drivetrain. These batteries are smart, durable and have a lifetime that will ensure the customer is able to achieve their targeted Return on Investment (ROI). As a result, the hybrid and electric drivetrain has come of age.

To date, Corvus Energy has deployed over 30 MWh of its Lithium Polymer battery-based Energy Storage Systems (ESS) on over 45 projects. These vessels include large and small ferries, offshore supply vessels (OSVs), tugboats, research vessels, luxury superyachts and port cranes. Only two of these applications are for full electric ferries, the remainder are all hybrid vessels, but a common element is that both types of drivetrains make the vessel more efficient, as well as more environmentally sustainable.

Of course an ESS cannot create energy, but only stores it. The ESS therefore enables the vessel to use the cheapest energy available and shift it in time to the point where it is most cost effective. For a full electric this means the ESS is charged from shore using low cost energy and eliminates completely energy generated by costlier, on-board generators. For hybrids, it moves energy from the efficient portion of the generator’s load curve and replaces energy that would have been generated on the less efficient portion of the generator’s load curve.

Full Electric Drivetrains At one time the round trip efficiency of an ESS was at 70% or less and the energy density was also not very high. This meant an ESS required a LOT of space on a vessel and did not actually store that much energy. The round trip efficiency on the Corvus ESS is now over 95% and the energy density is high enough that a space the size of a 20-foot container can store 650 kWh. This means that an ESS can now deliver enough power and energy to make a full electric drivetrain cost effective. Even with these improvements, full electric drivetrains still work best for applications where the duty cycle is relatively short such as a ferry with a route that is less than an hour between charging points. The 120-car Ampere ferry in Norway, for example, has a route which crosses Sognefjord between Lavik and Oppedal in 20 minutes and then recharges for 8 minutes from a shore-based charging station which uses the grid and another, smaller Corvus ESS to deliver a large amount of power into the vessel’s ESS in a short period of time. The shore-based charging station then recharges from the grid for about 48 minutes until the ferry returns.

The ferry operator, Norled, has other, diesel-fueled vessels on this route and based on a comparison has estimated that the Ampere is saving over 1 million liters of expensive, ultra-low sulfur diesel fuel per year. It is also saving 90% of the maintenance cost of the diesel engines and 100% of the cost of the NOx emissions, which are taxed in Norway. Norled is now looking at expanding the operating hours of the Ampere each day and is examining other routes it operates to determine if they could benefit from a fully electric ferry.

Hybrid Drivetrains A hybrid drivetrain consists of a either a diesel or LNG engine as the prime generator for the vessel and supplements this engine with an ESS. The ESS is able to charge with energy produced when the December 2015 MARINE LOG 17

ELECTRIC & HYBRID engine generator is operating in its most efficient range and then, when the engine generator would be operating in its inefficient range, the engine is shut off and energy is extracted from the ESS to operate the vessel.

A harbor tug is a good application for a hybrid drivetrain. It will typically spend up to 25% of its time sitting and waiting for a call to push a ship. While in this mode, the vessel needs to maintain its position and run its hotel load. The engine is too large to idle and provide power just to the hotel load and so the engine drives its thrusters in opposite directions, thereby keeping the vessel in position but “boiling water” and wasting fuel. With a hybrid system, the engine is turned off and the ESS is used to periodically operate the thrusters to keep the vessel in position, and also serving the hotel load. When the ESS gets to the minimum state-of-charge, the engine is started to charge the batteries, serve the hotel load and run the thrusters. Depending on the hybrid drivetrain configuration, the ESS can also be used to supplement the engine when the tug is pushing or pulling a vessel to get it into position. When the batteries are charged the engine is turned off. An ESS on a tug can save up to 25% on fuel and emissions, as well as reducing maintenance on the engine(s).

An ESS is also very effective to replace the operation of a second engine that is running in spinning reserve to provide emergency power in the event the prime mover generator fails during a critical operation. Scandlines ferries in Denmark and Germany only operate one generator during crossings and use their ESS for spinning reserve. Scandlines have identified 13% reduction in fuel and emissions and a 45% reduction in generator maintenance.

Likewise, Offshore Supply Vessels in the North Sea can use an ESS for spinning reserve during Dynamic Positioning (DP) operations

Key Benefits SOME key benefits from an ESS include: • Reduced generator hours/generators running in efficient range • Reduced fuel consumption • Reduced emissions • Reduced maintenance • Improved capital management • Reduced number and size of generators • Passenger/crew comfort, reduced noise and vibration when servicing floating oil and gas platforms. DNV-GL has approved ESS for DP operations. Eliminating the operation of an additional generator used in spinning reserve has the potential to save fuel, emissions, maintenance and the cost of the additional generator.

No longer the elusive white whale, hybrid electric propulsion is here to stay, with early adopters now reaping the benefits. An ESS helps owners make their vessels more efficient by helping them manage the operating and capital costs of their vessels, while also making these vessels more reliable and environmentally sustainable. No longer outcasts like Ishmael, the electric and hybrid marine industry has proven the value proposition for electric drivetrains and energy storage. Corvus Energy’s ESS is a key piece of these innovative hybridization projects for commercial vessels, which are fundamentally changing these marine markets. Where once there was only a potential for these benefits, Corvus Energy has the ESS technology, people and experience to make them real. ■

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atlantic coast

Vane Brothers’ newest ATB tug, the Fort Schuyler, alongside the Norwegian threemasted barque Statsraad Lehmkuhl in Baltimore Harbor

A Time Of Renewal Tugs and barge operators invest in new vessels for their fleets

I

f you were at a seaport along the U.S. Eastern Seaboard, more than likely you would be able to spot the distinctive blue “V” logo of the Vane Brothers Company on at least one tug in the harbor. The privately held marine transportation company has been serving the U.S. East Coast for more than 100 years, now handling chemical and petroleum products on its double-skin tank barges in seven ports from New York to Jacksonville, FL. Under the steady guidance of C. Duff Hughes, the third generation of the Hughes family at the helm of the company, Vane Brothers, headquartered in Baltimore, MD, has been aggressively growing its fleet of 120 tugs and barges. Since 2008, Vane Brothers has been adding a series of 3,000-hp, Sassafras Class Articulated Tug Barge (ATB) tugs. Just last month, Vane Bros. ordered the 15th, 16th, and 17th of the class, all of which have been ordered from and built by Chesapeake Shipbuilding in Salisbury on the Eastern Shore of Maryland.

The latest in the series delivered by Chesapeake Shipbuilding is the Fort Schuyler, the eleventh in the class. Its sister tug, the Kings Point, was delivered in April this year.

The tugs have been very popular with the company’s crews. Vane Brothers Senior Port Captain Jim Demske, says, “The crews on these tugs particularly like the high quality of the tugs’ construction and layout. The ergonomic arrangement of the pilothouses and engine rooms contribute comfort and safety. The power from the Caterpillar 20 MARINE LOG December 2015

Compiled by Marine Log Staff

engines and the performance from the Twin Disc reduction gears all contribute to the great handling of these tugs, which is especially appealing to the operators. The new Simrad Solid State Halo radars and touch-screen electronics are some of the finest in the industry and also make life on these tugs better.”

Measuring 94 feet long and 32 feet wide with a hull depth of 13 feet, the Fort Schuyler is similar in most respects to the previous 10 tugs built for Vane by the shipyard.

The vessel is equipped with twin Caterpillar 3512 Tier 3 main engines producing a combined 3,000 horsepower, and operates with a single-drum hydraulic towing winch from JonRie Intertech, Manahawkin, NJ. “Soft-core” panels and heavy, fire-rated doors are used throughout the boats, offering the crew a safer and quieter living environment.

“Vane Brothers and Chesapeake Shipbuilding continue to have a very strong relationship,” says Demske. “The next tug to be launched in coming weeks will be the Fort McHenry, followed by the Fishing Creek.” Demske says the names of the other tugs have yet to be announced.

The Fort Schuyler, like the Kings Point, has joined Vane Brothers’ fleet based in New York. The two vessels are named for the campuses of SUNY Maritime College in Fort Schuyler, NY, and the U.S. Merchant Marine Academy in Kings Point, NY.

atlantic coast In addition to the 3,000-hp tugs coming from Chesapeake Shipbuilding, there are two 4,200-hp tugs under construction at St. Johns Ship Building in Palatka, FL, for delivery in 2016, with two more under contract.

is an indication of the commitment to the continued relationship with Bouchard Transportation,” says Jack Prendergast, CEO, VT Halter Marine.

Vane adds new barges, too

Moran Towing has newbuild programs underway at Washburn & Doughty shipyard in East Boothbay, ME, and Fincantieri’s Bay Shipbuilding in Stugeon Bay, WI. Its newest ATB tug, Leigh Ann Moran, recently completed her sea trials in Sturgeon Bay. The 121 ft x 36 ft tug was christened in late September by her namesake, Leigh Ann Engibous, wife of long-time Chevron employee Bill Engibous.

Also under contract at Bay Shipbuilding are the 121 ft x 36 ft ATB tug Barbara Carol Ann Moran and a 110,000 bbl double-skin tank barge, which are due for delivery in the second quarter of next year.

Meanwhile, Washburn & Doughty have contracts for six 6,000 hp Z-drive harbor tugs for the New Canaan, CT-based tug company.

According to Vane Brothers, three 35,000-barrel barges and four 55,000-barrel barges (including the 509A asphalt barge) have been delivered in the last 10 months, with another 55,000-barrel barge expected before the end of the year. These have come primarily from Conrad Shipyards in Orange, TX, and Amelia, LA, as well as Jeffboat in Jeffersonville, IN. New and current mariners at Vane have a variety of training opportunities available to them, both formal and informal. According to Vane Brothers spokesman Blaise Willig, the company has supported many vessel-based employees this year as they receive instruction to help them be more effective at their current jobs and contribute to their future advancement. Vane is a Partner Company in the Workboat Academy’s Workboat Program. And, as a result of Person in Charge (PIC) Barge training this year at the Maritime Institute of Technology and Graduate Studies (MITAGS) in Linthicum Heights, MD, former Vane Deckhands have become highly qualified Tankermen now assigned to Vane barges. Vane’s training efforts and commitment to promoting from within help to ensure that its vessels are manned with professionals who meet and surpass the highest standards in the industry.

New ATB tug launched for Bouchard Early last month, the Moss Point Marine shipyard of VT Halter Marine, Inc., launched the M/V Morton S. Bouchard a 6,000 hp, twin-screw Articulated Tug Barge (ATB) tug for Bouchard Transportation, Inc., Melville, NY. The ATB tug is one of two sister vessels being built under a twovessel contract signed in August 2014. Morton S. Bouchard and sister vessel Frederick E. Bouchard each measure 130 feet by 38 feet by 22 feet and is classed by ABS as +A1 Ocean Towing, Dual Mode ATB, USCG Subchapter C. On completion, both tugs will be equipped with an Intercon Coupler System. Deliveries are expected in January and May 2016, respectively. The vessels will enter into Bouchard Transportation’s fleet service in New York, NY. This most recent launch follows the September launch from the Moss Point shipyard of another ATB tug for Bouchard, the 10,000 hp M/V Donna J. Bouchard.

Also equipped with an Intercon Coupler, Donna J. Bouchard, is classed by ABS as +A1 Towing Vessel, Dual Mode ATB, USCG Subchapter M. She will be paired with barge B.No.272, which is currently under construction at VT Halter Marine’s Pascagoula, MS, shipyard to comprise the second ATB unit built for Bouchard Transportation as part of its major expansion program.

“Bouchard Transportation Co. Inc. is happy to announce yet another successful launching of a state of the art ATB tug built by VT Halter Marine. The launching of the M/V Morton S. Bouchard Jr. is a special event within the Bouchard Family, for the vessel is named after the father of President/CEO, Morton S. Bouchard III, who wanted his father’s name to always remain on the waterfront for which he dedicated his entire fife to. The original tug, Morton S. Bouchard Jr., which was also built by Halter, was earlier renamed as The Bouchard Boys and continues to operate with Bouchard Fleet,” says Morton S. Bouchard III President and CEO, Bouchard Transportation.

“The successful launching of both vessels, the M/V Morton S. Bouchard Jr. today and the M/V Donna J. Bouchard in September

New ATB tug for Moran

McAllister publishes 150th Anniversary Book Last year, McAllister Towing & Transportation Co., New York, NY, celebrated its 150th anniversary of providing marine transportation, towing and harbor services. The beautifully bound hard cover book recounts the history of the five generations of the McAllister family and the tugboat business. The company was founded by James McAllister, who arrived in New York City following a shipwreck and soon bought his first sail lighter in 1864. From those humble beginnings, the distinctive red and white striped funnels of McAllister tugs can be seen from Portland, ME, to San Juan, PR. McAllister currently has one ABS-classed 5,000-hp Z-drive reverse tractor tug on order at Eastern Shipbuilding Group, Panama City, FL. The word on the street is that the company is in serious discussions with another shipyard regarding the construction of at least two other harbor tugs.

Eastern Shipbuilding also recently launched the H. Douglas M, the first in a series of four 5,150 hp escort tugs for Bay-Houston Towing.

The 80 ft x 38 ft tug is based on a Z-Tech 2400 Class design by Robert Allan Ltd. Delivery of the escort tug is scheduled for early 2016.

The same design is being built by Eastern Shipbuilding for a series of four tugs for Suderman & Young. G&H Towing is the owners’ onsite representative and agent during the engineering, construction, and delivery for both Bay-Houston and Suderman & Young Towing.

Wind Farm vessel takes shape In Warren, RI, the first U.S.-flag wind farm vessel is taking shape at Blount Boats, Inc. Blount Boats President Marcia Blount says the

The mini tanker Chandra B was delivered by Blount Boats

December 2015 MARINE LOG 21

atlantic coast 21-meter aluminum catamaran will be ready for delivery in April 2016.

Rhode Island Fast Ferry will operate the boat for Block Island Wind Farm in Rhode Island. The five turbine wind farm, the first commercial wind farm in the U.S., is expected to be up and running by the fourth quarter of next year.

The catamaran is a Crew Transfer Vessel (CTV) based on a design licensed from South Boats (IOW), Isle of Wight, the U.K., one of the leading designers and manufacturers of wind farm vessels in Europe.

South Boats IOW has designed and built some 85 CTV’s for the European offshore wind sector.

Blount Boats is eyeing the progress of offshore wind energy closely, says Marcia Blount.

Earlier this year, Blount Boats delivered the 79 ft x 23 ft bunkering tanker Chandra B. to APT, one of Marine Log’s Best Ships of 2015.

The mini tanker is now in service in New York Harbor.

Blount Boats also is building a passenger vessel for Chicago’s Shoreline Sightseeing. Shoreline Sightseeing provides guided architecture tours on the Chicago River, as well as classic tours on Lake Michigan and “Brew Cruises” and wine-tasting cruises.

New boats for Circle Line About a 20-minute ride from Warren, RI, is the shipyard of Gladding-Hearn Shipbuilding, a Duclos Corporation in Somerset, MA. Known for their construction of aluminum, multi-hull vessels based on Incat Crowther designs, the Massachusetts shipbuilder is actually building three all-steel 600-passenger vessels for Circle Line Sightseeing Yachts, Inc., New York, NY. The 165 ft x 34 ft were designed by DeJong & Lebet, Jacksonville, FL. Those boats are due for delivery in the spring.

It’s also building a 493-passenger ferry for Hy-Line Cruises for delivery in 2016.

One of the latest deliveries from Gladding-Hearn is the Manatee, a 28-knot Chesapeake Class launch and the first in a new generation of the popular, mid-size pilot boats for the Tampa Bay Pilots Association.

The boat continues a successful partnership between GladdingHearn and C. Raymond Hunt Associates, Inc., New Bedford, MA. The Somerset, MA, shipyard introduced the Chesapeake Class pilot boat in 2003. Since then, 15 have been delivered to pilot associations throughout the U.S. The latest improvements incorporate the performance benefits of Volvo Penta’s IPS2 inboard propulsion system.

“The IPS2 system was created to improve the performance and

The ATB tug Leigh Ann Moran built by Fincantieri’s Bay Shipbuilding

the arrangement of planning hulls like our pilot boats,” says Peter Duclos, the shipyard’s president. “This new generation of Chesapeake launches, named Chesapeake Class MKII, is equipped with the IPS2 pods, which provide what pilots have been asking for: higher speeds, lower fuel consumption, and more comfort.”

With a deep-V hull designed by C. Raymond Hunt & Associates, the all-aluminum pilot boat measures 52.7 ft overall, with a 16.8-ft beam and a 4.5-ft draft.

It is powered by two Volvo Penta D11, six cylinder, EPA Tier 3 diesel engines, each producing 503 bhp at 2,250 rev/min. Each engine is connected to a Volvo Penta IPS propulsion pod, which is fitted with dual forward-facing, counter-rotating propellers and integrated exhaust system, and Volvo Penta’s integrated EPS electronic steering and control system.

The EPS control system and three-axis joystick increases the boat’s overall maneuverability alongside a ship and when docking, says Duclos.

The financial incentive for the Tampa Bay pilots to optimize fuel economy, vessel handling and comfort led the shipyard to install a Humphree Interceptor automatic trim-optimization system.

“The combination of the Volvo Penta IPS system and the Humphree interceptors gives the pilots higher speeds and improved comfort, while burning 25 percent less fuel than similar Chesapeake Class launches,” says Duclos.

Key design changes to the Chesapeake Class MKII include positioning the wheelhouse aft of amidships to improve comfort and provide for a larger foredeck.

This new generation of pilot boats is also designed to accept a gyro-stabilization system, designed to reduce vessel roll.

Marine Atlantic’s ferry Highlander at Detyens

22 MARINE LOG December 2015

This past year, there has been a good mix of commercial and government repair at Detyens Shipyards, Inc., Charleston, SC, according to the company’s Bradley Kerr. “We have recently completed work on two German owned-container vessels, a pair of casino vessels and have the usual tugs and barge units, dredge vessel and other similar harbor barges are rolling through. We also have recently won MSC contracts on the Button and Spearhead as well as the Atlantis from Woods Hole.”

The largest commercial ship repair yard on the U.S. East Coast, Detyens also recently finished repairs on the USCG Elm and will begin work on the NOAA vessel Gordon Gunter soon. The U.S.

top:Steve Reinke

Mix of repair at Detyens

atlantic coast Army Corps of Engineers’ trailing suction hopper dredge Wheeler is also in the shipyard.

This past spring and summer, Detyens dry docked the ferries 28,460 gt M/V Highlanders and 18,523 gt M/V Leif Ericson for Marine Atlantic, Inc., St John’s, Newfoundland, Canada.

Ferry repower at Caddell Over the next five years, the Delaware River and Bay Authority, owner and operator of the Cape May-Lewes Ferry, plans to repower its entire fleet with cleaner burning, more fuel efficient Tier 3-compliant diesel engines.

The first of those ferries, the Delaware, arrived at Caddell Dry Dock on Staten Island, NY, on November 2 to begin the four- to fivemonth repower project in conjunction with its regulatory required five-year drydocking.

According to James Gillespie, Chief Port Engineer for the Cape May Lewes ferry, the Delaware is expected to return to service in April of 2016. The dry-docking is expected to cost $3.5 million.

“We’re excited to begin our vessel repowering program,” says Heath Gehrke, Director of Operations for the Cape May-Lewes Ferry.

“These new engines not only burn less fuel and are more efficient, but emissions are reduced by nearly 40 percent. By undertaking this effort, we can significantly extend the useful life of our fleet and provide a cleaner environment in the communities we serve.”

Gehrke also notes that the ferry expects to save about $130,000 per year in maintenance costs associated with old engines and that the new clean diesel engines have the capability to be converted to operate on natural gas in the future.

The existing Fairbanks Morse engines are overhauled and rebuilt

every 10,000 hours of usage compared to every 30,000 hours for the new EMD (Electro-Motive Division) engines. The engines were purchased from Marine Systems Inc. at a cost of $1.8 million.

While at the shipyard, the vessel will have other modifications and improvements completed, including the installation of a new gray water recovery system, new stainless steel railings and new propeller shaft seal system; installation of a new keel cooler system for main engine and generator cooling; and the bow thruster system will be overhauled.

To further assist the University of Delaware’s water research efforts on the Delaware Bay, the SeaKeeper seawater monitoring system, which collects water quality data while a vessel transits the Delaware Bay, will be installed on the MV Delaware.

During a ceremony held at the Lewes Ferry terminal in December 2014, U.S. EPA Regional Administrator Shawn M. Garvin announced the award of a Diesel Emission Reduction Act (DERA) grant of $970,000 to help facilitate the project. The Delaware River and Bay Authority (DRBA) sought the grant funding through the National Clean Diesel Assistance Program, which focuses on reducing emissions at ports under the Diesel Emission Reduction Act (DERA).

The M/V Delaware is currently equipped with two Fairbanks Morse 38D8-1/8 propulsion engines with a power rating of 2,060 horsepower each. More than 40 years old, these workhorse engines are approaching 100,000 operating hours or the equivalent of 1.5 million miles. In addition, because the engines are no longer built, spare parts are both difficult to find and expensive.

Within the next five years, the Authority plans to repower the other vessels in the Cape May – Lewes Ferry fleet: the MV New Jersey and MV Cape Henlopen. ■

December 2015 MARINE LOG 23

atlantic coast advertisement

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24 MARINE LOG December 2015

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EIPI offering proven solutions across the entire industry EIPI has been a leading supplier of dehumidifiers and humidity control equipment in numerous industries for 42 years. Applications include the dehumidification of vessels (during storage, refurbishment and in service), shipyards and other offshore industries such as oil rigs and wind farms.

EIPI offers a wide range of both refrigerant and desiccant dehumidifiers, catering for most applications.

Capacities range from 36ppd to 3,173 ppd, with variants available as portable or static models.

The EIPI range of dehumidifiers are proven solutions for purposes such as dehumidifying cargo holds, warehouses, box bottoms or void spaces, preservation of equipment components, etc. The range of des-

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EIPI strives to provide the highest quality product, service and application engineering support, to each one of its diversified market segments. An active, ongoing research and development program insures that EIPI clients are supplied with the latest and most cost effective moisture removal solutions.

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The EIPI range of environmental control equipment includes bespoke Air conditioning and Nuclear & Biological Filtration systems, specifically designed to demanding specifications, for Military and commercial applications, including radar cooling systems fitted to military vessels deplored thought the world.

December 2015 MARINE LOG 25

newsmakers

Bollinger names Joe Mayhall to its sales and marketing team Bollinger Shipyards, Lockport, LA, has added another member to its corporate sales and marketing team. President and CEO of Bollinger, Ben Bordelon announced that Joe Mayhall is now Vice President, Commercial Bu sine s s D e velopment .

Mayhall will be responsible for commercial s a l e s a n d m a r ke t i n g f o r B o l l i n g e r Shipyards, as well as Tampa Ship.

Cr aig Tornga has been named Vice President of stakeholder relations for Alaska by Crowley Maritime Corporation.

Tornga will work closely with Crowley’s business units to provide a diverse suite of services across the state. In other Crowley news, Crowley’s Vice President of Customer Care, Kyra Roca, was presented with the 2014 Thomas Crowley Award. The award is the company’s highest honor. The award was also presented to Captain David Ridge, Director of Marine Operations, Valdez, Alaska.

Global engineering, technical and business services organization, Lloyd’s Register (LR) has appointed Mary Waldner as Group CFO. Waldner w ill replace Alastair Marsh as CFO following his appointment as CEO for the Lloyd’s Register Group.

Fairbanks Morse Engine has promoted Sheila Ga illore to to Vice President of Marketing.

Gailloreto joined the company back in 2013 as Director of Marketing and has been instrumental in establishing a new marketing direction for the company.

T he Liberian Inter national Ship & Corporate Registry (LISCR), the U.S.based manager of the Liberian Registry, has appointed Kostas Ladas as General Manager of its London Office. Ladas joins the registry from ship and insurance broker and agent Victoria Steamship Co. Ltd.

Elliott Bay Design Group has named Carolyn de Rubertis Human Resources Generalist for its Seattle office. De Rubertis bring more than 20 years of experience to her role.

Maritime Authorit y of Jamaica’s (MAJ) Director General Rear Admiral Peter Br ady has been elected as the Vice Chairman of the Board of Governors of the World Maritime University (WMU) in Malmo, Sweden. Beyond his role at MAJ, RADM Brady has also chaired the IMO’s subcommittee on STCW for almost 10 years.

ProSig ht Specialt y Insur ance ha s appointed Andreas Graham as Niche President for Marine and Energy. Graham joins ProSight from ACE Group.

Vice President of Business Development at American Equity Underwriters, Inc. (AEU), Rob Stuardi, has been appointed to the Industry Partner’s Committee of the Shipbuilder’s Council of America (SCA).

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26 MARINE LOG December 2015

techNews

Rolls-Royce to supply multiple

azimuth thrusters for new tugs

Rolls-Royce will supply 12 azimuthing thrusters to Turkey’s Sanmar Shipyard in 2016. The contract includes the option for 30 additional units. The units will initially be fitted on six tugboats— and if the option is exercised, up to 21 vessels will be equipped with the units.

The thrusters will be supplied by Rolls-Royce’s Rauma, Finland, facility and the delivery will include thruster control systems.

Rolls-Royce’s range of azimuth thrusters offers superior maneuverability thanks to the propeller’s ability to rotate 360 degrees around its vertical axes—this enables thrusts to occur in any direction.

“Sanmar Shipyard and Rolls-Royce have a long term relationship,” says Helge Gjerde, Rolls-Royce, President, Commerical-Marine.

“This year we delivered our 150 th thruster to Sanmar and the announcement of this contract further extends our long standing and continued operation.”

“We have accomplished world-class projects in the field of tugboat building and this year we will be breaking our construction record with a total of 25 craft,” added Cem Seven, a Board Member of Sanmar.

The thrusters will be delivered during 2016 and will be installed on tugs that are being built for tug operators in both Europe and the Middle East. Each tugboat has a bollard pull of 60 to 80 metric tons. www.rolls-royce.com/marine

ABB debuts new era in shipping with Integrated Operations Center Want to save big on maintenance costs? ABB may have the solution for you. It recently unveiled a new Integrated Operations Center that will give greater control to fleet operators on shore. The center, located in Billingstad, Norway, will connect ABB engineers to any vessel anywhere in the world fitted with ABB technology. Onboard sensors and software send equipment and performance data to the center via a satellite link, enabling shipowners, along with ABB, to perform remote troubleshooting and make informed decisions about the ship’s performance and maintenance plan.

The new center fits into ABB’s Integrated Operations concept, which utilizes the Internet of Things Services and People (IoTSP) to connect ships, their owner’s technical headquarters and ABB’s support departments. More than 500 vessels are currently connected to ABB’s Integrated Operations.Using the Integrated Operations, ABB says shipowners can implement a way of working that saves up to 50% on drydocking costs on its equipment. www.abb.com

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December 2015 MARINE LOG 27

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techNews

Hempel passes micro-fiber based antifouling milestone Hempel’s micro-fiber based antifouling system recently hit a milestone selling 100 million liters of the system, the equivalent of coating 45,000 vessels. The Denmark-based marine coating manufacturer is the only one that uses micro-fibers in its paints.

Hempel incorporates the micro-fibers into all its fouling prevention products. The way the technology works is that it introduces an internal skeleton of fibers into the paint to enhance its mechanical strength.

“Our micro-fiber coatings give the advantage of a stronger product that does not crack or peel,” says Group Product Manager Andreas Glud. “Antifouling products deliver outstanding protection but due to their chemical make-up, their mechanical strength is often weak. That is, the higher grade of antifouling products, the higher risk of cracking. To combat this, we developed our silicate-based micro-fiber technology, which helps reduce dry dock costs.” www.hempel.com

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BWTS retrofits for Royal Caribbean Cruises Ltd. Hyde Marine, a subsidiary of Calgon Carbon Corporation, has won a contract to provide seven ballast water treatment systems (BWTS) to a series of vessels undergoing retrofitting for Royal Caribbean Cruises Ltd. The ships will be fitted with Hyde Guardian’s gold ballast water treatment system. The system uses a two-step treatment method to effectively treat ballast water—step one involves the physical solid-liquid separation through surface filtration using automatic backwashing filters; while step two includes the physical disinfection via an ultraviolet (UV) technology. The first part of the process enables the removal of sediment and large organisms from the ballast water, then the UV light, during part two, inactivates and kills any remaining organisms.

“Hyde Marine has been a valuable partner in assisting us as we navigate the new regulatory requirements for ballast water treatment,” says Michael Jones, Vice President, Supply Chain Management, Royal Caribbean Cruises Ltd. “Our crews are pleased with how easily and reliably the system operates, and with how seamlessly they integrate with existing automation systems.”

Hyde Marine has sold more than 430 of its ballast water treatment systems to date. The newly ordered seven systems will bring the number of Guardian Gold sytems on RCL group vessels to 27. www.hydemarine.com

Classification Society ABS has signed a Design Development Agreement with Shanghai Merchant Ship Design & Research Institute to develop a new generation of feeder container carriers.

The goal is to develop the next-generation design with a focus on operational efficiency and flexibility—and produce a design that will meet future regulations, as well as future market and trade needs. “Changing environmental regulations, unpredictable energy prices and volatile freight rates have made it imperative for ship designers to continuously improve the operational and environmental performance of their next generation designs,” says ABS Senior Vice President and Chief Technology Officer Howard Fireman.

28 MARINE LOG December 2015

Top left: Shutterstock/Bogdan VASILESCU

ABS, SDARI to design next generation feeders

contracts Shipyard Contracts Marine Log welcomes your input. If you would like to report any new contracts, deliveries or changes to our listings, please e-mail: marinelog@sbpub.com. Some contract values and contract completion dates are estimated. Information is based on best available data on or about November 1, 2015. A more complete listing of Shipbuilding Contracts, Vessel Deliveries, and a Shipyard Directory are available on Marine Log’s Shipbuilding Intelligence website, www.shipbuilding.marinelog.com Shipyard

Location

Qty Type Particulars Owner/OPERATOR Est. $ Mil Est. DEL.

RECENT CONTRACTS Chesapeake Shipbldg

Salisbury, MD

3

ATB Tugs

94 ft x 32 ft

Vane Bros.

2017

Great Lakes Shipyards

Cleveland, OH

2

Ice Class Tugs

19.5m

Great Lakes Towing

2016-4Q

Huntington Ingalls

Pascagoula, MS,

1

LPD 28 adv. proc.

684 ft x 105 ft

U.S. Navy

2018

SAFE Boats

Bremerton, WA

1

Riverine Boat

30 ft

Colombian Navy

2016

Aker Philadelphia

Philadelphia, PA

1

Product Tanker

50,000 dwt

Crowley Maritime

2015-4Q

Bordelon Shipbuilders

Houma, LA

1

Intervention Vessel

257 ft x 52 ft

Bordelon Marine

2015-4Q

Chesapeake Shipbldg

Salisbury, MD

1

ATB Tug

94 ft x 32 ft

Vane Bros.

2015-4Q

Fincantieri Bay Shipbldg

Sturgeon Bay, WI

1

ATB

6,000 hp/160,000 bbl

Moran Towing

2015-4Q

Gulf Craft

Franklin, LA

1

Fast Supply Boat

206 ft, 38 knots

SEACOR Marine

2015-4Q

Metal Shark

Jeanerette, LA

1

Patrol boat

55 ft

Plaquemines Port

2015-4Q

Moose Boats

Petaluma, CA

1

Patrol Boat

35 ft, 30 knot

Placer County Sheriff

2015-4Q

Nichols Bros. Boat Bldrs

Freeland, WA

1

ATB Tug

10,000 hp

Kirby Offshore

2015-4Q

Verret Shipyard

Plaquemine, LA

1

Towboat

70 ft x 30 ft

Blessey Marine

2015-4Q

200.0

DELIVERIES

PENDING CONTRACTS

NOTES

Aker Philadelphia

Philadelphia, PA

4

Tankers

50,000 dwt

Crowley Maritime

BAE Systems Southeast

Mobile, AL

2

Dump Scows

7,700 cu. ft.

Great Lakes Dredge

$500

2017

BAE Systems Southeast

Jacksonville, FL

1

Tug

141 ft x 46 ft, 12,000 bhp

Seabulk Tankers Inc.

Option

Bay Shipbuilding

Sturgeon Bay, WI

1

ATB

8,000 hp/155,000 bbl

Plains All American Pipeline

Option

Kvichak Marine

Seattle, WA

Opt. to 2019

Options

30

Skimmers

30 ft 3 in x 9 ft 8 in

U.S. Navy

TBD

1

Double-end ferry

70-car similar to Pocohontas

VDOT

TBD

6

Car ferries

1,200 PAX (convert to LNG)

Washington State Ferries

RFP issued

TBD

3

Double-end ferries

4,500 PAX

NYCDOT

$309

EBDG design

TBD

3

Pass./vehicle ferries

1,000 PAX/100 vehicles

DRBA

$101

2018-2021

TBD

1

School ship

National Security Multi-Miss.

U.S. DOT

TBD

1

Research Vessel

93 ft x 28 ft

VA Institute of Marine Sci.

$25

$5

2018-2020

Design Bids 2015

Index of Advertisers Company Page #

Company Page #

ABS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S2, S3

Horizon Marine. . . . . . . . . . . . . . . . . . . . . . . . . . 24

ABS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C2

KVH Industries, Inc. . . . . . . . . . . . . . . . . . . . . . . C3

CMA Shipping 2016. . . . . . . . . . . . . . . . . . . . . . 26

Marine Art of J. Clary. . . . . . . . . . . . . . . . . . . . . . 28

Ebac Industrial Products Inc.. . . . . . . . . . . . . . . 25

Marine Systems Inc.. . . . . . . . . . . . . . . . . . . S6, S7

Electric & Hybrid Marine World Expo. . . . . . . . . . 3

Marine Systems Inc.. . . . . . . . . . . . . . . . . . . . . . C4

Everblast Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Nautican. . . . . . . . . . . . . . . . . . . . . . . . . . . . S4, S5

FCI Watermakers. . . . . . . . . . . . . . . . . . . . . . . . . . 9

Renishaw . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Future Care, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . 23

Renk AG. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Great American Insurance Group . . . . . . . . . . . 18

Smith Berger Marine Inc.. . . . . . . . . . . . . . . . . . . 4 December 2015 MARINE LOG 29

marketplace ENGINEERS & ARCHITECTS

GILBERT ASSOCIATES, INC. Naval Architects and Marine Engineers

350 Lincoln St. Suite 2501 Hingham, MA 02043

Website www.jwgainc.com

Telephone: 781 740-8193 Facsimile: 781 740-8197 E-mail address: inbox@jwgainc.com

Marine

Industry

M.A.C.E. Inc. FT. LAUDERDALE - USA - WORLDWIDE PHONE: (954) 563-7071 FAX (954) 493-9559

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naval architects & marine engineers Quality Technical Services 2021 Dauphine Street • New Orleans, LA 70116 (800) 823-1324 (504) 945-8917

Thickness - hardness crack determination Ultrasonic flaw detection Vibration - noise structural/modal analysis Field balancing Torque - torsional vibration analysis

ABS Approved Ambient Environmental Testing Climate, Lighting, Noise & Vibration 1 Galleria Blvd. Ste 907 Metairie, LA 70001 Phone (504) 818-0377 x 33 Fax (504) 818-0447 www.hab-cert.com

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Naval Architecture Marine Engineering Salvage Engineering Marine Surveys

www.JMSnet.com 860.536.0009 Contract Holder Veteran-Owned Small Business

Our latest design in the JMS Coastal Fisheries/Research Vessel Series is a 93 foot Research Vessel for Virginia Institute of Marine Science.

Look for the shipyard solicitation by the end of the year.

30 MARINE LOG December 2015

marketplace products & services

employment Bouchard Transportation Co., Inc Tug Mate

SOFTWARE

Minimum Qualifications: • Master/Mate 200 GRT Near Coastal • Master/Mate of Towing Near Coastal • STCW w/security endorsement • GMDSS, RADAR, TWIC, Passport

Engineer

Open Positions: Vice President/Senior Director of HSQ – Seattle, WA

Minimum Qualifications: • 3 years experience on tugs at least 2000HP • DDE 4000HP, STCW w/security endorsement • Passport, TWIC

Assistant Engineer

Minimum Qualifications: • Degree from Maritime Academy or DDE 4000HP • STCW w/security endorsement, TWIC, Passport

Barge Tankerman

MARINELOG.COM

HARLEY MARINE SERVICES

Minimum Qualifications: • AB rating, Tankerman PIC (BARGE) • STCW w/security endorsement, Passport, TWIC

General Manager – Alameda, CA Operations Manager – Alameda, CA Port Engineer – Seattle, WA; Brooklyn, NY Port Captain – Seattle, WA Training Manager – Seattle, WA Regional Marine Safety Advisor – San Pedro, CA Nighttime Dispatch Assistant – Seattle, WA Port Mechanic – San Pedro, CA For a list of all open crew positions or to apply online, please visit our Careers page at www.harleymarine.com

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December 2015 MARINE LOG 31

Environmental Forum

A Closer Look at Very Large Operational Risks

By Clay Maitland, NAMEPA Founding Chairman

When it comes to large amounts of cash, shipping is obviously not in the picture. We have gone through nearly eight years of phenomenal recession, and even the big players, such as Maersk, are feeling the cold winter winds. It is interesting to find out that some major government agencies—and not the usual minor maritime ones—are looking at plans to hedge against highly expensive disasters such as tanker spills or gas pipeline explosions.

The U.S. Federal Reserve has begun looking at how to ensure that banks (of all things) can be prevented from threatening their own survival in the event of a major catastrophe. Most scenarios posit an incident involving hazardous materials that could seriously affect, or sink, banks indulging in massive commodities trading—the likes of Goldman Sachs, Bank of America, Merrill Lynch and Citigroup.

It seems that the storing and shipping of energy, chemicals and other risky things, as part of derivatives trading in oil, gas and other commodities, have gotten Washington’s attention: the 2010 oil spill in the Gulf of Mexico, and the result liability for billions of dollars in fines and compensation, seems to have influenced thinking. It is now understood that operational risks can lead to legal liability and penalties that greatly exceed the value of assets involved.

So, with regard to financial institutions, the Fed is looking at options including additional insurance, capped on the size of

commodity ownership and limits or bans on holding specific products.

Of course, if people in Washington could get a look at what some of our ships are carrying, they might get a sense of proportion.

Moreover, a great deal of the most volatile stuff moves by other modes of transportation. From a business point of view, it is fair to question whether some of these risks are insurable in any practical sense. Over the years, regardless of the size of the risk, losses have, at the end of the day, been covered by insurance.

A good example of the disaster I have in mind took place in Texas City, near Galveston, shortly after the Second World War. Starting with the detonation of a cargo of ammonium nitrate fertilizer loaded aboard the GRANDCAMP, a massive series of consequent blasts obliterated the entire waterfront area, and caused great damage several miles away. Industry has gotten a lot better at handling hazardous cargoes since 1947, and, as one of my colleagues puts it, has also gotten a lot luckier.

Also, since the 1940s, governments have stepped in to fill gaps in compensation for personal injury and death, where directly responsible parties simply don’t have the money. It is comforting to think that if insurance coverage failed for some reason, there would be a safety net, somewhere, to handle claims for loss of life and personal injury, not to mention property damage.

The fact remains, however, that the only

MarineLoG

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A Simmons-Boardman Publication Corporate Offices 55 Broad Street, 26th Floor New York, NY 10004 T: (212) 620-7200 | F: (212) 633-1165 www.marinelog.com

Jeff Sutley, National Sales Director T: (212) 620-7233 | F: (212) 633-1165 Email: jsutley@sbpub.com U.S. East, Midwest and West Coasts & Canada

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CLASSIFIED SALES SCANDINAVIA

Ian Littauer Regional Sales Manager T: (212) 620-7225 | F: (212) 633-1165 Email: ilittauer@sbpub.com 32 MARINE LOG December 2015

maritime risks that have been truly huge have been oil spill related. Government and industry tend to respond to experience, rather than to anticipate and prepare for what might happen.

The notion of some kind of governmentsponsored risk cap, or other guarantee, has always fallen foul of charges that such a program is nothing more than corporate welfare. During the Second World War, when ships sailed at risk of loss resulting from enemy action, the British and American governments sponsored a backup war risk insurance program. But that was a wartime measure, and the ships were carrying government cargo. Today, we should look more closely at the true extent of insurance cover actually available to compensate victims of an extensive and very costly disaster.

This is not a far-fetch scenario. In fact, experience on the inland waters of the United States has shown that the largest claims for damages due to explosion can be those of the U.S. government, as a result of harm to the locks and dams on our larger rivers. Up to the present time, the Government sues for damages. Usually, the claims are against major chemical and oil companies, with mandatory certificates of financial responsibility. There are however doubts as to whether such a system will work in the case of a ship with relatively limited coverage. Let’s hope that we never see it put to the test.

Brenda Homewood Alad Ltd. T: +44 (0)1732 459683 Email: Brenda@aladltd.co.uk

Jeanine Acquart Classified Advertising Sales T: (212) 620-7211 | F: (212) 633-1165 Email: jacquart@sbpub.com

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