February 2016 Marine Log

Scandinavia: A hotbed of maritime innovation

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february 2016

CRUISing with a Purpose Interview with Fathom’s Tara Russell A New Approach to Communications LNG: First Bunkering at Jacksonville

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contents

February 2016 Vol. 121, NO. 2

31

departments 2 Editorial Time to stand up for the Master of the Prestige

6 Inland Waterways Omnibus, a win for waterways 8 Update

16

Carnival Corp. brand, Fathom, has its heart set on changing the world—offering travelers a chance at social impact cruising

features 16 Cruise Shipping

Travel with a Purpose

Carnival Corporation & plc, and Tara Russell are hoping to change the industry, and the world, with the launch of its new cruise brand Fathom and the introduction of social impact travel Plus: Up, up and away: China market drives up demand for new cruise ships and Lindblad pursues growth

21 Scandinavia Maritime

The Nordic Influence

Denmark, Finland, Norway and Sweden continue to exert their influence in the global maritime sector —maintaining an edge over competitors by investing in new tonnage and green technology

26 Communications

Getting a Handle on Data Usage

• Damen starts construction on SOV • World Marine buys Signal • F amilies reach settlement with TOTE for El Faro accident • L NG-fueled smart ferry for Spain’s Baleària • Tall ship used to smuggle drugs •A MP slams Jones Act report

15 Washington Coast Guard bill would kick-start icebreaker acquisition

Reliable connectivity on board a ship can help attract and retain a qualified crew, enhance crew safety, reduce operational expenses, save fuel, and ensure compliance with ever-changing regulations

Carnival Corp. names Roger Chen Chairman for emerging market

28 LNG

31 Tech News

Bunkering Up

The use of LNG as the go-to marine fuel is no longer a thing of the future—it is happening now. We take a look at TOTE Maritime’s recent successful bunkering of its Jones Act containership, Isla Bella Plus: ESL shipping order the first LNG-fueled bunkers to be built to the new DNV-GL rule set

30 Newsmakers

Becker introduces optimized rudder to its line up

33 Contracts Derecktor wins contract for CUNY hybrid research vessel

36 Environmental Forum Globalization and the Marine Environment February 2016 MARINE LOG 1

editorial

Time to stand up for The Master of the Prestige The shipping industry should stand united behind Captain Apostolos Matagouras following the outrageous decision by the Spanish Supreme Court to sentence the Master of the tanker Prestige to two years in prison for his role in the 2002 oil spill.

InterManager, the international association of ship managers, called the decision by the court to sentence Captain Apostolos Matagouras, 81, to prison as “abhorrent.” Captain Mangouras was convicted of recklessness resulting in catastrophic environmental damage in the 2002 oil spill, according to a statement by the court, overturning a previous sentence by a Galician Regional Court that cleared him of criminal responsibility.

As we note in this month’s Update section, it looks like a clear revision of the lower court’s findings in the case.

Notably, the Spanish Supreme Court cleared the Spanish maritime authorities of any responsibility in the case. Intertanko said in a statement, “The Supreme Court

notably reinforced the lower court’s acquittal of José Luis López Sors, the former head of Spain’s merchant marine department, who ordered the Prestige to be towed out to sea instead of to a place of refuge where an oil spill could have been contained. In refusing appeals against his acquittal the Spanish state absolves itself from any responsibility for the disaster.”

Just last month, Europe launched new guidelines on Places of Refuge, developed jointly with the shipping industry and with the specific aim of resolving the issues surrounding the granting of a Place of Refuge.

This month’s cover story focuses on one of the hotter marine markets, cruise shipping and in particular social impact travel.

What’s “social impact travel?” I was skeptical when I first heard about it until I discussed it with Managing Editor Shirley Del Valle. Now I’m convinced that it could develop into a popular niche in the already booming cruise shipping market. While China may well be all

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

the rage with exponential growth predicted for the near future, social impact travel just might be the new black for a whole generation of socially conscious travellers.

Shirley had the opportunity to pick the brain of Tara Russell, the President of Fathom, a new brand launched by Carnival to tap into the social impact travel market.

If you flip to page 16, you can read more about Tara’s vision for the new venture.

In the first part of our two-part profile on the enduring influence of the Nordic countries on the maritime market, web editor Nick Blenkey examines how shipping plays a crucial role in the economies of Denmark, Finland, Norway, and Sweden, including how they maintain a competitive edge over their international rivals by investing in new tonnage and green technology. And, while most of the region’s shipyards have shuttered their doors due to competition from facilities in the Far East, there are still some stalwarts that build, outfit and repair hulls. ■

Maritime Trivia Trivia Question #34: W hat vessel was the first to carry a radar system?

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By positioning the cordierite crystal until it turned dark, a mariner could determine the exact position of the sun. The winning answer came from Vinny Bolen of Cape Coral, FL.

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inland waterways

Omnibus, A Win for Waterways Just before Christmas, both the House of Representatives and Senate passed the FY 2016 Omnibus Appropriations bill that funds the Federal government, including the Corps of Engineers’ Civil Works program.

Outcomes within the FY16 Omnibus Appropriations bill were outstanding for the Army Corps and, particularly, navigation programs. The overall funding level for the Corps’ Civil Works mission was $5.989 billion, almost $1.3 billion (or 27%) above the President’s budget request of $4.732 billion.

There was near record-setting funding for Inland Waterways Trust Fund (IWTF)-supported priority navigation projects at $405.2 million in FY16, a whopping 75% increase over the Administration’s budget request of $232 million. WCI has long advocated for full-use appropriations at or above $370 million for capital projects in FY 2016. With this level of funding, the top four priority projects can now be fully and efficiently funded in FY16.

Olmsted should receive $268 million, with 15% coming from the IWTF as required in WRRDA 2014. The Lower Mon 2, 3, and 4 project should be funded at $60 million.

Kentucky Lock should receive $48 million and Chickamauga, $29 million. The Corps will decide exactly how the funding is spent in its FY ’16 work plan to be released after the President’s FY ’17 budget on February 9.

FY ’16 funding for the Corps’ IWTFprojects is a record under the Obama Administration. There were at least two years at the end of the Bush Administration that had slightly higher amounts: $414.2 million in 2007 and $417.3 million in 2008.

For the Corps’ General Investigations account, $121 million was allocated in fiscal year 2016, up 25% from the President’s request of $97 million. The Omnibus bill was also kind to the Harbor Maintenance Trust Fund (HMTF), providing funding for dredging and channel maintenance work at $1.21 billion, rising 31% above the President’s request of just $915 million.

On Januar y 4, WCI, along with the navigation stakeholders the American Association of Port Authorities, Realize America’s Maritime Promise, American 6 MARINE LOG February 2016

Great Lakes Ports Association, Big River Coalition, California Marine Affairs and Navigation Conference, Great Lakes Maritime Task Force, Gulf Intracoastal Canal Association, Gulf Ports Association of the Americas, Lake Carriers Association, North Atlantic Ports Association and the Pacific Northwest Waterways Association sent a letter to Senate Appropriations Committee Chairman and Vice Chairman of the Senate Appropriations Committee Thad Cochran and Barbara Mikulski, respectively; and Subcommittee on Energy & Water Development Appropriations Committee Chairman Lamar Alexander and Ranking Member Dianne Feinstein. The letter expressed gratitude for leadership in appropriate funding for the U. S. Army Corps of Engineers’ navigation program.

Specifically, the letter said, “the Full Committee and Subcommittee under your combined bipartisan efforts ...Hit the HMT target in WRRDA for fiscal year 2016 of $1.21 billion dollars, fully using increased IWTF revenues on lock construction and major rehabilitations, significantly increased WRRDA-authorized navigation channel improvements projects funding, increased inland navigation operations and maintenance funding ... enabled existing USACE navigation planning studies to achieve WRRDA’s three-year completion schedule and begin new navigation studies, funded HMT donor and energy transfer port work authorized in WRRDA Section 2106, and placed four inland navigation modernization projects under construction, creating family wage jobs in four states.”

In the FY ’16 Omnibus bill, the Navigation Ecosystem Sustainability Program (NESP) is expected to receive $5 million in funding within General Investigations for inland navigation. NESP is an unprecedented, multi-purpose authority allowing the Corps to integrate management of the Upper Mississippi River System’s infrastructure with ecosystem improvements.

Some things are worth the wait, and this was certainly true for FY ’16 appropriations funding for the Corps’ Civil Works mission.

The strong funding increases will help to

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

modernize waterway infrastructure, facilitate increased exports, create jobs, make more efficient the transportation supply chain, and increase American competitiveness in world markets.

So what lies ahead? The process to move a Water Resources and Development Act (WRDA) of 2016 is underway, with House Transportation & Infrastructure (T&I) Committee members holding the first listening session last November (2015) in New Orleans. WCI’s Immediate Past Chairman Matt Woodruff (Kirby Corporation) represented WCI at the hearing. The Senate Environment & Public Works (EPW) Committee has also started the process, with its first hearing rumored for February 10.

Within WRDA, WCI is advocating for the authorization of the Upper Ohio River Navigation feasibility study in this year’s WRDA. The draft feasibility study was unanimously approved by the Civil Works Review Board to enter into State and Agency review, the last step before completing a final feasibility study. Post-Civil Works Review Board, higher authority ordered that the State and Agency review be delayed to address concerns regarding dam failure closures. This has impacted the signing of the final feasibility study potentially halting the effort by two-and-half years, which will result in the Upper Ohio River Navigation final feasibility study missing the authorization period for the 2016 WRDA bill. WCI is also supporting authorization of a Chief ’s Report for Calcasieu Lock in Louisiana in WRDA 2016.

And WCI is urging the increase of the threshold for major rehabilitation from the current $20 million to $50 million as a way to more clearly differentiate between capital and O&M project work on the waterways with the 2016 water resources bill.

FY 2017’s budget is expected to be released on February 9. WCI will continue to press for the highest levels of funding for the Corps’ Civil Work mission to continue the strong momentum achieved by the high funding levels of the last several appropriations bills. As a nation, we must continue to row forward together for efficient waterways. www.waterwayscouncil.org

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UPDATE biz notes World Marine buys Signal International

Damens starts construction on SOV Damen Shipyards Galati has begun construction on the first ever Damen Service Operations Vessel (SOV). The SOV, named Bibby WaveMaster 1, is being built for UKbased Bibby Marine Services.

Upon delivery next year, the ship will operate in the North Sea supporting offshore wind construction and O&M projects.

The Bibby Wavemaster 1 is the first in Bibby Marine Services’ fleet to undertake offshore wind work in the North Sea. It will be able to remain at sea for up to 30 days at a time.

The SOV is the first vessel specifically built for the deployment and retention of offshore support and maintenance engineers.

According to Damen, the SOV is designed to provide “fast and comfortable access to turbines, at lower cost.” The Bibby WaveMaster 1 will have on-site work and storage

Bibby WaveMaster1

facilities, accommodation for 45 maintenance personnel, and a crew of 15. It features a monohull form to minimize accelerations caused by roll motions; its bow section has been lowered, creating a V-shape which helps reduce slamming occurrence.

Damen’s Peter Robert says, “This is much more than just a vessel—it is a total access and accommodation solution.” He adds, “This is the first time that a wind farm operations and maintenance vessel has been designed exclusively for this purpose… As a result, the vessel will ensure safety and comfort of all on board for increased workability.”

The 90 m x 20m x 8m ship will be equipped with a motion-compensated transfer gangway to allow maintenance personnel to walk between the vessel and the offshore structure.

It will also include a number of alternative

The U.S. Bankruptcy Court of the District of Delaware has given World Marine LLC the go-ahead to purchase Signal International’s assets.

Signal International filed for Chapter 11 protection last July after it reached a $20 million settlement agreement to solve lawsuits brought by Indian guest workers. The Teacher’s Retirement System of Alabama and the Employees’ Retirement System of Alabama—the owners of World Marine—were the winners in the auction.

While ownership changed hands, World Marine will retain some of Signal’s notable fixtures: including its multi-flag logo and Signal President & CEO Dick Marler, who will lead World Marine.

transfer methods including a daughter craft and helicopter access. Additionally, the SOV features a large open workdeck area, sheltered workshops and fully covered storage spaces.

Accommodations are found amidships helping to minimize vertical accelerations and reduce seasickness.

“This is significant moment for this vessel and for both Damen and Bibby Marine Services,” says Damen’s Senior Project Manager Rene Hooijman. “The SOV is the result of extensive consultation within the offshore wind industry that has led to the design of a completely new concept from the hull up.

It is therefore great to see the project come to life today with cutting of the first steel exactly according to planning. Assembly of the hull will start in April and the launch of the vessel is planned for early next year.”

Families reach settlement with TOTE Maritime for El Faro accident Reports indicate that TOTE Maritime has reached settlements with families of up to 10 crewmembers that died during the El Faro accident. The 735 ft U.S.-flag cargo ship sank with 33 souls on board during Hurricane Joaquin last October.

Those accepting the settlements included the families of the ship’s captain, Michael Davidson, four of the ship’s American crew and five Polish contractors who were on board the vessel. As part of the settlement, the families agreed to drop the lawsuits against Davidson and TOTE. Media reports cited a January 22 court filing that said each of the families would receive $500,000 for pre-death pain and suffering. The settlements also “included an 8 MARINE LOG February 2016

amount for economic damages well above that” according to Miami-based attorney Jason Marguiles of Lipcon, Margulies, Alsina & Winkleman. The firm represented some of the families.

In a statement released through spokesperson Michael Hanson, TOTE said, “Since the loss of the El Faro we have focused every effort on supporting the families of those on board. An important part of this support has entailed reaching fair and swift legal settlements for those who may choose them. We can confirm that we have settled financially with 10 families through a respectful and equitable mediation process.”

As the news broke that settlements had been reached, the U.S. Coast Guard

announced that it would conduct a public Marine Board of Investigation hearing into the loss of El Faro and its crew. The hearing will be held later this month in Jacksonville, FL, from February 16 to 26.

Meanwhile, the National Transportation Safety Board (NTSB) is currently conducting its own investigation.

Inland • Coastal • Offshore • Deepsea

Industry mourns the loss of Salvage legend

LNG-fueled smart ferry for Spain’s Baleària Spain’s LaNaval Shipyard has won a contract to build a 232.2 m x 30.4 m LNGfueled “smart ferry” for Baleària. The ferry will be the first LNG-fueled ferry to operate on the Mediterranean and among the largest ferries operating in the world.

The EUR 175 million contract with LaNaval also includes an option for a second ship.

The ferry will be equipped with three dual-fuel engines, leading to CO2 and NOx emissions being reduced by more than 40 percent, and the reduction of sulfur and particulate emissions. The ship will be able to reach speeds of 23 knots while in operation.

So what makes this ferry a “smart ship”?

According to Baleària, the ferry will be equipped with technology that will enable

passengers to access vessel navigation information, entertainment and food options, the weather, access to maps and tracking, and a system that will let the passengers interact with one another.

Beyond running on LNG, the ferry will also be fitted with other green technologies, further driving home Baleària’s desire to operate a more efficient fleet. The ferry will include the use of LED lighting, solar panels, the latest paintings and coatings technology, and monitoring systems that will help the operator make adjustments and minimize fuel consumption.

The smart ship ferry, which will have a capacity for 1,600 passengers and 340 vehicles, is expected to begin operations in 2019.

The salvage industry lost a legend, and the world lost a good man, last month with the passing of Rich Habib.

Habib, the former Salvage Master and Managing Director of TITAN Salvage, passed away on Januar y 12. He was snowboarding and found unconscious on the ski slopes of a Park City, Utah mountain resort, but emergency medical workers were unable to revive him.

Habib first joined TITAN in 2001 as a jack-up barge superintendent and worked his way up to Salvage Master and Director of Salvage. After briefly leaving the company in 2008 he returned in 2011 as Managing Director and served in that capacity until 2014—when Titan and Svitzer Salvage merged. Among Habib’s most notable efforts during his career at Titan was leading the Costa Concordia salvage and wreck removal effort.

Surviving Rich are his wife Lindsay Malen, former Director of Business Development for Titan and the Marine Response Alliance, and their newborn daughter Isabella.

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UPDATE Vane Brothers takes delivery of a new series of tugs

Maryland-based The Vane Brothers Company has taken delivery of the “ultimate workhorse,” the Elizabeth Anne. The tug is the first in a series of eight 4,200 horsepower

tugs being built for the operator at St. Johns Ship Building. The second vessel in the series, the Hudson, will be delivered later this Spring.

The Elizabeth Anne Class of vessels is designed by Frank Basile, P.E. of Entech Designs, LLC. The class is similar to the Patapsco Class tugboats, also designed by Basile for Vane. In total, 15 Patapsco class vessels were produced between 2004 and 2009.

The 100 ft Elizabeth Anne is equipped with two Caterpillar 3516 Tier 3 engines, each generating 2,100 horsepower at 1,600

rev/min. Its Reintjes marine gears are supplied by Karl Senner, LLC, Kenner, LA. Power is provided by two John Deere PowerTech 4045, 99 kW generators. A third John Deere 4045 is paired with an Allison transmission driving the chain-driven Intercon DD200 towing winch.

After being outfitted at Vane Brothers’ Jacksonville, FL location, the Elizabeth Anne headed for Conrad Industries’ Orange, TX, shipyard where Vane’s newest 35,000-barrel tank barge, the Double Skin 315, awaited towing to New York City.

Prison sentence for U.S. Navy Petty Officer in GDMA “Fat Leonard” case U.S. Navy Petty Officer First Class Dan Layug, 27, has been sentenced to 27 months in prison in connection with the Glenn Defense Marine Asia (GDMA) bribery and corruption scandal, known in Navy circles as the “Fat Leonard” affair.

According to court documents, GDMA owner and CEO Leonard Glenn Francis and other GDMA employees enlisted U.S. Navy personnel, including Layug, to provide classified ship schedules and other sensitive

Navy information. Allegedly, GDMA overcharged the Navy under its contracts and submitted bogus invoices for tens of millions of dollars in port services.

Layug pleaded guilty to one count of conspiracy to commit bribery May of last year. In his plea agreement he admitted that he accepted a $1,000 per month allowance from GDMA, plus luxury hotel stays for himself and others in Malaysia, Singapore, Indonesia, Hong Kong and Thailand.

According to the agreement, Layug used his position as a logistics specialist at a U.S. Navy facility in Yokosuka, Japan to gain access to classified U.S. Navy ship schedules. He then provided the information to GDMA. Layug also provided GDMA with its competitor’s pricing information.

To date, nine individuals have been charged in connection with the scheme—of which seven have pleaded guilty. Layug is the first to be sentenced.

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Tall ship used to smuggle cocaine and heroin The famed tall ship, the 371 ft Juan Sebastian de Elcano, a Royal Spanish Navy training vessel, is at the center of a drug trafficking scandal. The ship was allegedly used to smuggle multi-kilogram quantities of heroin and cocaine into New York City between April and May of 2014—and now two alleged drug traffickers, Jorge Luis Hoayeck and Jorge Alberto Siado-Alvarez, have been arrested in Colombia pursuant to a U.S. extradition warrant.

The two men are also being charged with Conspiracy in the Second Degree, two counts of Criminal Sale of a Controlled Substance in the First Degree, two counts of Criminal Possession of a Controlled Substance in the First Degree and two counts of Criminal Possession of a Controlled Substance in the Third Degree.

A long-term wiretap investigation—pursued by Colombian authorities—revealed that Hoayeck and Siado-Alvarez agreed to pay two midshipmen a total of $32,000 to hide the narcotics aboard the ship and deliver it to New York City-based traffickers.

Hoayeck and Siado-Alvarez oversaw the drug operation from Cartagena, Colombia.

biz notes ABS realigns Division

The two communicated with one another, as well as the New York City-based narcotics by mobile phones using coded, cryptic language.

It is believed that the midshipmen received the narcotics while the ship was docked in Cartagena on or about April 16, 2014. The midshipmen allegedly met the NYC traffickers on May 14 and accompanied them to a residence in the Bronx to complete the delivery.

Seven individuals associated with the NYC-based g roup were ar rested and indicted following the delivery.

After the ship left New York, it traveled to Ireland, Norway, Germany and back to its homeport Cadiz, Spain. It was in Cadiz that the Spanish Civil Guard searched the ship and recovered 127 kilograms of cocaine in a storeroom for reserve sails.

In order to strengthen its localized leadership to help pursue expanding opportunities, classification society ABS has realigned its Americas Division operation to create two additional new regions—Canada and Mexico; and Central America and the Caribbean.

“ABS recognizes that the expansion of the Panama Canal, increased Arctic operations and growth in LNG markets present pivotal opportunities for our members and clients, and we are proactively realigning operations to strengthen our world-class service delivery to support them,” says ABS Americas President and COO James Watson. “In realigning our resources, ABS is better leveraging our global network and leading technology programs to assist owners and operators in these regions.”

Joseph Rousseau has been named Regional Vice President for Canada.

Meanwhile, Homero Guerra is now Regional Vice President for Mexico, Central America and the Caribbean.

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UPDATE Industry OUTRAGE: Prestige Master sentenced to two years in prison In 2013, a Spanish court acquitted the Apostolos MangouraS, the 81-year Captain, the Chief Engineer, and the Spanold Master of the doomed single-hulled tanker Prestige, was sentenced by Spain’s ish Maritime Chief who told the captain to Supreme Court to two years in prison for take the ship out to sea.

At the time, Judge Juan Luis Pia of the recklessness resulting in catastrophic enviGalacia (La Coruña) High Court said, “No ronmental damage. The shocking sentence one knows with certainty what could be the overturns a previous ruiling by a Galacian Regional Court that had cleared him, and cause of what happened, nor what should havePage been1the appropriate response to the two others criminal responsibility.

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emergency created by the serious problem of the Prestige.”

While traveling near Galacia, the most northwest region of Spain, one of the Prestige’s tanks burst during a storm. The Prestige case is unique in that the vessel was refused a safe harbor/permission to dock by Spain, Portugal and France.

At the time of the accident, the ship was carrying 77,000 metric tons of heavy grade fuel oil. With the refusal of the three nearest countries, the captain was told by the Spanish Maritime Chief to steer the vessel away from the coast and go out into open sea— the ship eventually split in two and sank 250 miles off the coast.

The spill and subsequent leakage from the wreck damaged the coastline, contaminated the seabed, and forced the suspension of the offshore fishing industry in the region. Black slick could be found on over 1,800 miles of beaches in all three countries.

Following the announcement of Mangouras’ sentencing, the international association for ship managers, InterManager, condemned the sentence, calling the ruling “abhorrent.”

InterManager’s Executive Committee agreed to throw its full weight towards getting the shipping industry to act together in protesting what it described as a “totally unfair” court decision.

Meanwhile, the International Association of Independent Tanker Owners, Intertanko, adds that “The Supreme Court’s deviation from the findings of the La Coruña court is not only radical but also flies in the face of the courageous example Capt. Mangouras set in responding the emergency.” Intertanko also noted that the court upheld the acquittal of the Spanish Maritime Chief José Luis López Sors, essentially absolving Spain of any responsibility in the disaster.

The International Transport Workers Federation (ITF) also condemned the new sentence. ITF’s Dave Heindal said the “decision represents the dying gasps of a 14-year old attempt to deflect blame onto the shoulders of an octogenarian man, who has been cleared in the court of world opinion and by his peers.

“Thankfully it is likely to be as unenforceable as it is illogical. This innocent man cannot again be made to sit needlessly in jail.”

He added, that the case is “one of the worse examples of the knee jerk criminalization of seafarers. ...This latest piece of victimization reminds us that we must all remain vigilant to protect seafarers from these injustices.”

Inland • Coastal • Offshore • Deepsea

Eastern Shipbuilding remains busy with launches and deliveries P a n a m a C i t y, F L- b a s e d E a s t e r n Shipbuilding Group started this year off with a bang—lauching and delivering a series of newbuilds.

Most recently, the shipbuilder launched the 80 ft Neptune, the second of four Z-Tech 2400 class escort tugs it is building for Suderman & Young Towing Company. The 5,150 hp tug will be delivered in the second quarter of this year.

The Triton, the lead vessel in the series, was delivered in December 2015 and is currently in service in Texas.

The Z-Tech 2400 class was designed by Robert Allan Ltd., Vancouver, BC, Canada, and will be powered by two Caterpillar 3516C Tier 3-compliant diesel engines, each rated at 2,575 hp at 1,600 rev/min. Its main propulsion is comprised of two Schottel Model SRP 1215FP nozzle z-drives. The tug has a bollard pull of 60 tonnes.

The Z-Tech class is built and classed to ABS notation +A1, Towing Service, +AMS, Escort Service.

Robert Allan Ltd. says the Z-Tech design offers omnidirectional performance; additionally, its speed and bollard pull astern are almost equal to that going ahead. The Z-tech also features a flat forward sheer and a wide, heavily fendered bow—enabling the vessel to push or pull large container ships and car carriers.

Eastern is also building four similar tugs for Bay Houston Towing. The first vessel in the series for Bay-Houston, the H. Douglas M, will be delivered later this year.

G&H Towing company, which operates vessels for both Suderman & Young and Bay Houston Towing, will operate all eight Z-Tech 2400 tugs upon their delivery.

Tractor tug delivered Last month, Bisso Offshore, LLC took delivery of a reverse tractor tug from Eastern Shipbuilding.

The Archie T. Higgins is the fourth 96 ft reverse tractor tug delivered by Eastern to Bisso Offshore since 2007. The tugs are based on Seattle-based Jensen Maritime Consultants’ Z-drive tug design. The vessel is named after the late Archibald (Archie) Thomas Higgins, Jr. who helped lead the Bisso Offshore operations from 1973 to 1995.

The tug is fitted with two Caterpillar 3516C (A rating) Tier 3 EPA certified marine propulsion diesel engines. Firefighting equipment includes one Caterpillar C18 Tier 3 EPA certified engine with one FFS Nijhuis 5,284 GPM Pump and one InMar/FFS 1,200 lb duel flow monitor with a 400 ft throw.

MPFSV for Harvey Gulf January also saw Eastern launch Harvey Gulf International Marine’s MPFSV, the Harvey Stone. The vessel is a Rampage 6400 multipurpose field support vessel (MPFSV) also designed by Robert Allan, Ltd. The 212 ft Harvey Stone’s power is derived from two GE Marine 12V259MCD IMO II, EPA Tier 4i marine propulsion diesel

engines. The vessel’s main propulsion and thrusters were provided by Schottel, and its generator sets were supplied by Cummins.

The ABS classed vessel meets all USCG, IMO, SOLAS and MARPOL requirements.

Eastern is also currently building two Vard-design MPSVs for Harvey Gulf, the Harvey Sub-Sea and Harvey Blue-Sea. The Harvey Sub-Sea will be delivered in 2016.

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February 2016 MARINE LOG 13

UPDATE

Report of lies: AMP slams Jones Act report A 4,000-word report about the Jones Act is riddled with erroneous claims, according to the American Maritime Partnership (AMP). Considered the voice of the domestic maritime industry, AMP has released a statement pointing out the “factual errors” in the report produced by the Alliance for Innovation and Infrastructure (Aii), “The Jones Act: Protectionism v. Global Trade.”

“The publication is littered with fabrications intended to mislead policymakers

14 MARINE LOG February 2016

and we demand a retraction of the report,” said Tom Allegretti, Chairman of AMP. “It is shocking that a nonprofit organization led by former senior members of the U.S. military would produce such a factually inaccurate report and take such a myopic view of an important national security issue. They have failed to even acknowledge the fact that the U.S. Coast Guard Commandant, ... national security experts in the Congress, and many others have all stressed how critical the Jones Act is to national security.”

Allegretti also suggested Aii do a better job at fact checking before issuing its publications. AMP attempted to set the record straight by correcting a number of the errors presented in the report. You can read the full list on marinelog.com but below are two examples. The report states that: (1) There are only about six dozen JonesAct qualified vessels in operation; AMP says there are approximately 40,000 vessels in the fleet; (2) The GAO has found that the “price per gallon of gasoline [in Puerto Rico] is 15 cents per gallon higher” than it would be if the Jones Act requirements weren’t in place; AMP says the GAO has found there was no way to estimate a “cost” of the Jones Act. The 15 cent figured cited by Aii exists nowhere in the GAO report.

biz notes Fincantieri inks Iran cooperation agreement Fincantieri recently announced that it had signed a number of framework agreements with Iranian companies. The preliminary understandings, says Fincantieri, “are prior to the accomplishment of several contracts worth some hundred million Euros and to the potential development of joint activities.”

Among the understandings is a cooperation and development agreement with A zim Gostaresh Hormoz Shipbuilding I ndu s t r y C o ( AG H ).

Fincantieri says AGH is a “modern and new shipyard strategically located in the Persian Gulf within the special economic zone.” Under the agreement, the two companies will construct new merchant vessels and offshore units, as well as provide ship repair, conversion and refitting services. Two additional agreements were signed off on by Fincantieri through its subsidiary Isotta Fraschini Motoro— one in the marine propulsion sector and the other in rail transportation.

inside washington

Coast Guard bill would kick-start icebreaker acquisition Badly needed icebreaking capability for the Great Lakes and the Polar regions got a kick-start when the House of Representatives unanimously approved the Coast Guard Authorization Act of 2015 on February 1. The bill, H.R. 4188, which passed the Senate in December, now goes to the President for his signature.

Right now, the Coast Guard only has the 399 ft heavy icebreaker Polar Sea and the 420 ft medium icebreaker Healey in its fleet. By contrast, Russia has 40 icebreakers, including six heavy icebreakers at its disposal and more under construction.

The bill authorizes the Commandant of the Coast Guard to use funds for the selection of a design and for the construction of an icebreaker for the Great Lakes.

Additionally, the legislation authorizes $4 million in FY 2016 and $10 million in FY 2017 for pre-acquisition activities for a new polar icebreaker, including specification development and feasibility studies.

In a January 13 letter to Transportation and Infrastructure Chairman Bill Shuster (R-PA) and T&I Committee

Ranking Member Peter DeFazio (D-OR), Coast Guard and Maritime Transportation Subcommittee Ranking Member John Garamendi (D-CA) implored for the inclusion of the National Icebreaker Fund Act of 2015 during the markup of the bill.

“The United States is an Arctic nation and currently sits as Chair of the Arctic Council, an important international forum to build policy consensus and cooperation among the eight Arctic nations,” wrote Garamendi. “As the administration finalizes a 2017 budget request that should provide funding to advance its Arctic agenda, we in Congress must take every effort to ensure the Coast Guard is able to maximize all opportunities to enhance its icebreaking fleet.”

H.R. 4188 authorizes Coast Guard and Federal Maritime Commission through fiscal year 2017, and includes provisions to improve Coast Guard mission effectiveness, help modernize the Service’s aging vessels and other assets, and reform U.S. maritime transportation laws. The bill authorizes funds appropriated for Fiscal

Years 2016 and 2017, with $6.98 billion in each year for operation and maintenance, $1.945 billion in each year for acquisition, construction, and renovation, $140 million each year for the Coast Guard reserve program, $16.7 million each year for environmental compliance and restoration programs, and $19.89 million each year for RDT&E. The bill includes many provisions from a similar Coast Guard bill that unanimously passed the House in May. Coast Guard and Maritime Transportation Subcommittee Chairman Duncan Hunter (R-CA) introduced the bill along with Rep. Garamendi (D-CA), Rep. Shuster (R-PA), and Rep. DeFazio (D-OR).

Chairman Hunter says the bill “strengthens its ability to recapitalize an aging fleet of cutters” that are “past their prime.”

Ranking Member Garamendi, says the heavy ice breaker and a new fleet of offshore cutters “are essential elements necessary for the U.S. Coast Guard to secure our maritime borders, stop drug runners, and provide life-saving response on America’s lakes, rivers, and oceans.” ■

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February 2016 MARINE LOG 15

Cruise Shipping

The 592ft Adonia will be the first vessel in Fathom’s social impact fleet

Travel with a Purpose

Tara Russell leads cruise industry to new depths of social impact with Fathom

By Shirley Del Valle, Managing Editor

V

isionary, consistent, purposeful, and determined—these adjectives are just some of the many that can be used to describe Tara Russell, Founder and President of Fathom, a new cruise brand launched under the Carnival Corporation & plc umbrella. What makes Fathom unique is its mission of providing a new kind of cruising experience to those on board—what it calls “social impact travel.”

From its logo to its leader, Fathom is a brand with its heart set on cruising with a well-intended purpose: Making the world a better place.

Russell, for her part, has years of practice in leading the way for social change. Throughout her 20 years of working in both the global and private sector—she’s worked for Nike, Intel and General Motors—Russell has founded (or co-founded) a number of organizations meant to make the world (and its people) better.

Before joining Carnival Corporation, she founded and served as CEO of Create Common Good, a non-profit that puts “love in action,” by providing foodservice job training and job placement assistance to those with difficulties in finding employment—this enables the individual to become self-sufficient and financially independent.

Prior to that, she co-founded Jitasa, a global social venture that provides financial services, predominately accounting and

16 MARINE LOG February 2016

bookkeeping services, to the non-profit industry.

She also worked in Thailand for four years offering pro bono small business development training to non-governmental organizations (NGOs). During her stay in the country, she co-founded NightLight, an international organization that addresses the complex issues surrounding human trafficking and prostitution—this included helping women seek freedom from sexual exploitation in Thailand where a large number of the world’s sex trade takes place.

According to the U.S. Department of State’s 2015 Trafficking in Persons Report, there are “an estimated three to four million migrant workers in Thailand, most from Thailand’s neighboring countries.” Meanwhile, “Sex trafficking remains a significant problem in Thailand’s extensive sex trade—often in business establishments that cater to demand for commercial sex.” NightLight offers an outreach program of sorts, where it helps build support networks, provides intervention and assistance to those in need; and offers alternative job opportunities, training, and physical, spiritual and emotional development.

As for her approach and transition to Fathom, Russell explains, “Having worked in both the private sector at Fortune 50 companies and in the non-profit social impact space, I saw a real opportunity to bring the two together to create [an] authentic and enduring social impact.”

Cruise Shipping She adds, “The business leaders at Carnival Corporation shared my vision. So we worked together to find ways to harness the resources of the world’s largest cruise line and combine [it] with the talents and hearts of those working with social entities.”

The wheels started turning for Fathom during the summer of 2013 when CEO of Carnival Corporation Arnold Donald and Russell met. “The executive leadership of Carnival Corporation had been eager to find ways (where possible) to harness the scope and scale of the company’s global resources for social impact,” explains Russell.

“As such, Carnival Corporation had been exploring unique opportunities—both tailored to individual brands and beyond—to integrate social impact into its operations.”

After their meeting in 2013, Russell and Donald spent the better part of 2014 “building the vision, designing the product, developing the impact travel concept, and testing and sizing the market.”

Explains Russell, “Fathom’s vision is to harness and leverage Carnival Corporation’s assets for the greatest possible transformative impact, globally. We will send 704 travelers on every trip—thousands of travelers a year—to communities in need, providing tremendous scale that will sustain several ongoing programs.

“This continuity of support—different travelers going to the same community on a regular basis—is what will make a major difference in the lives of people and communities,” adds Russell.

Going in deep When Fathom was launched in June 2015, Carnival specifically chose the United Palace Theater in the Washington Heights area of Manhattan, NY, to announce the new brand to the world.

The setting for the launch was apropos as it was announced then that the Dominican Republic would be the first destination for Fathom’s impact travel. Washington Heights is a predominately Dominican neighborhood, with most of its residents moving to the area directly from the Dominican Republic.

The brand’s ship, the 704-passenger Adonia, will make its first trip to the Dominican Republic this coming April. Prior to joining Fathom, the 592 ft Adonia was the smallest ship in the P&O fleet.

P&O is also a part of the Carnival Corporation brand.

Why the Dominican Republic? Fathom says that while the country is stunningly beautiful, it’s also a country very much in need.

According to the U.S. Central Intelligence Agency’s (CIA) “The World Factbook,” 41.1% of the population in the Dominican Republic is living under the poverty line.

Fathom notes that the average household income is about $6,000 a year, more than three million Dominicans have no access to piped water, and education is incredibly underfunded—thus perpetuating the cycle of poverty with each new generation.

To see how Fathom could help, Russell explains that she and Donald met with “key Dominican Republic community leaders to understand the need and how best to leverage the existing infrastructure of local organizations to become involved in creating enduring impact in our first destination market.”

Among these key community leaders are Fathom’s “lead impact partners,” Entrena and the Instituto Dominicano de Desarrollo Integral, Inc. (IDDI). Entrena and IDDI helped Fathom “understand the specific needs in the northern region of the country and identified the areas of most need where Fathom travelers could provide meaningful, long-term and sustainable impact,” says Russell.

“We then collaborated with them to develop detailed projections regarding the scale of impact we intend to create together with our partners, our travelers and our communities.”

Entrena and IDDI are both already established organizations in the Dominican Republic. Entrena specializes in training, education

Tara Russell, Founder and President of Fathom

“We will send 704 travelers on every trip—thousands of travelers a year—to communities in need... ” and social entrepreneurship. Meanwhile IDDI’s primary objective is to contribute to the transformation of the human being, families and communities, so that they can live a productive and healthy life.

By partnering with entities such as these—that already have a system and structure in place—Fathom ensures that its travelers (the term it uses for its passengers) will be working within programs that are already making a difference in the region—and that the work will be continuous throughout the year—even as the travelers are different every week.

Fathom’s impact travel to the Dominican Republic is a seven-day experience, with three days working on the island.

Upon reaching the Dominican Republic, Fathom travelers will be immersed in a variety of projects—operated by Fathom’s local impact partners—focused on economic development, education and the environment.

Travelers will participate in activities such as supporting the reforestation efforts in the region, cultivating cacao plants, supporting local youths learn/practice English, and assisting local women’s cooperative in producing artisan chocolates—just to name a few.

Fathom projects that its impact travel work with its partners, travelers and communities could lead to higher English proficiency through Student English Learning—this will help with employment opportunities; greater access to high-quality recreational enrichment activities for students during the school day; an increase in local entrepreneurship; the planting of 20,000+ trees which will lead to more nutrient rich soil and higher agricultural yields; and access to cleaner water, with the production of ceramic water filters—5,000+ filters are expected to be generated each year.

February 2016 MARINE LOG 17

Cruise Shipping The route to Cuba Shor tly after Fathom’s launch, it was announced that the brand named its second destination: Cuba.

The U.S. Department of the Treasury granted approval to Carnival Corporation back in July. Since then, Carnival has been in active discussions with the Cuban government, according to Russell.

Cuba has been closed off to U.S. travelers by sea for more than half a century. And while a number of operators are jumping on the Cuba (mostly ferry) bandwagon— Fathom promises an entirely soul-enriching experience for both its travelers and the Cuban people.

“The overarching objective of our visiting Cuba will be to connect to the heritage of that country through an immersive program that encourages cultural, artistic, and faith-based exchanges between American Impact activities will include working with local women in producing artisan chocolates and Cuban citizens,” says Russell.

“In Cuba, the focus of our travel is defined Pending approval from the Cuban government, Fathom could set by the Cuban Assets Control Regulations and authorized American out to Cuba as early as this May. travelers must engage in Cultural, artistic, religious and humanitarian exchanges with the Cuban people. There, we will collaborate with What comes next? approved licensees or General licensees on initial itinerary development to ensure proper compliance is programmed and maintained When asked what countries Fathom has next on its agenda, Rusthroughout each voyage,” explains Russell. sell says the goal for now is to focus on its work in the Dominican Republic and Cuba, ensure success in the regions and establish longterm partners in each country.

Wherever Fathom goes, however, the goal will be the same: to leave that place and its people, better off.

“Ten years from now,” says Russell, “I’d love to believe that we Fathom says the itinerary in Cuba will include “diverse on- have helped eradicate unemployment in the Dominican Repubthe-ground immersion experiences,” including “engaging artists, lic and in many of the places that we visit. I want to believe we experiencing local food and music culture, meeting local Cuban have helped to give children and youth the tools to fall in love with business professionals, understanding micro-enterprise and the agrieducation, have helped to improve the environment and health outcultural sector, connecting to the education system and youth.” comes that have been a part of making people generally healthier.

My hope and intent is that the locations we [Fathom] travel to, flourish.”

Fathom is a cruise line intent on changing the world—it’s led by a woman who wears her heart on her sleeve, and is supported by a parent company that wants to have a positive impact on the global community. Fathom proves its purpose through its promises, through its partnerships and its actions. Even its logo is a reminder of its intention, take a glance at it and you’ll see what Fathom is all about—it “signifies open arms that embrace the world and serves as a reminder that the Fathom brand stands for love in action and transformative travel,” asserts Russell.

To join the movement and help create positive impact, visit www.fathom.org. ■

“My hope and intent is that the locations we travel to, flourish.”

Travelers will be immersed in a varitey of activities to help local communities thrive

18 MARINE LOG February 2016

Cruise Shipping

Lindblad’s new vessels will be built

by Nichols Brothers Boat Builders

Up, up and away China market drives up demand, new brands launched, and Lindblad pursues growth Compiled by Marine Log Staff

W

hile the Chinese economy may be sputtering, it hasn’t deterred the world’s largest cruise line from betting heavily on its future. Carnival Corporation & plc is increasing its stake in the Asian market, announcing that four of its brands will operate out of the region. Carnival sees China developing into “the world’s largest cruise market based on surging demand for cruise vacations.” Under its current plan, Carnival Corp. will serve the Chinese market with Carnival Cruise Line, AIDA Cruises, Costa Cruises (Costa Asia) and Princess Cruises.

The cruise giant recently inked a deal with Fincantieri S.p.A. to build four new ships, including two for Costa Asia. Overall, Carnival Corporation has a total of 17 new ships on order (see Table on page 20) with deliveries between 2016 and 2020.

Carnival Corp. isn’t alone in its appetite for the Chinese market.

Norwegian Cruise Line Holdings (NCLH) has also announced its entry into the China cruise market—with its first purpose-built cruise ship for its Norwegian Cruise Line brand. The ship, a Breakaway Plus-class vessel, is slated for entrance into the region in 2017.

Virgin enters the cruise market Billionaire businessman Sir Richard Branson, founder of the Virgin Group, annouced last year that he was diving into the cruise market with the launch of Virgin Cruises—a joint venture with Bain Capital. Leading Virgin Cruises is CEO Tom McAlpin, who previously served as President of Disney Cruise Line.

Since its launch, Virgin Cruises has signed a contract with Fincantieri to build three mid-size 110,000- gross ton cruise ships, with delivery set for 2020 through 2022. The ships will each feature accommodations for 2,800 guests and 1,150 crew. Virgin Cruises also announced that it has partnered with PortMiami,

where the ships will be homeported, offering seven-day itineraries to the Caribbean.

Lindblad orders two from Nichols Brothers A merger deal completed last year between Lindblad Expeditions and Capitol Acquisition Corp. III has breathed new life into the Lindblad fleet. Linblad Expeditions, a long-time expedition partner of National Geographic, recently signed a deal with Nichols Brothers Boat Builders for the construction of two U.S.-f lagged coastal vessels. The vessels are to be built at a purchase price of $48 million and $46.8 million, respectively, and will be designed by Seattle-based Jensen Maritime, Crowley Maritime’s naval architecture and marine engineering arm.

“These new ships mark an exciting step in the long-term growth of the company and enable us to capitalize on the substantial demand for our expeditions,” said Sven Lindblad, Lindblad President and CEO. The new ships also mark an important milestone for Lindbland as it is “the 50th anniversary of the birth of expedition travel begun by my father, Lars-Eric Lindblad,” added Lindblad.

The two new ships will conduct tours between Baja, Costa Rica and Panama during the winter months and southeast Alaska, Oregon, Washington and Canada during the summer months.

Shipbuilder Nichols Brothers Boat Builders is no stranger to working with the Lindblad brand. The shipyard built the operator’s current U.S.-flagged ships, the National Geographic Sea Lion and National Geographic Sea Bird, back in 1982.

The new 238 ft vessels, will be built with the same explorer spirit in mind, but will be “larger, [providing] more comfortable accommodations for 100 passengers,” says Gavin Higgins, CEO, Nichols Brothers Boat Builders.

February 2016 MARINE LOG 19

Cruise Shipping The twin-screw diesel ship’s public spaces will be designed to provide maximum viewing of the vessel’s surroundings.

The shipyard is hiring 40 additional workers for the project, and making additional modifications to its launch system to accommodate the vessels’ length and capacity, says Higgins.

The new cruise vessels will have an ROV, video microscope, and a hydrophone and bow-cam designed for immediate bow deployment to hear and film marine life, such as whales and dolphins.

Before the new ships are built, however, Jensen will provide a 3D model detailing all of the structural, electrical, mechanical and HVAC systems of vessels. The full-size 3D computer model will enable Lindblad to assess and confirm the vessels layout and will also help ensure the vessels’ safety, maintainability and constructability.

The first ship will be delivered in the second quarter of 2017, followed by the second vessel in 2018. ■

CRUISES SHIPS CURRENTLY ON ORDER WORLDWIDE Cruise Line

Ship Name

Shipyard

AIDA Cruises AIDA Cruises AIDA Cruises AIDA Cruises Carnival Cruise Line Carnival Cruise Line Celebrity Cruises Celebrity Cruises Costa Asia Costa Asia Costa Cruises Costa Cruises Dream Cruises Dream Cruises Holland America Line Holland America Line Lindblad Expeditions Lindblad Expeditiions MSC Cruises MSC Cruises MSC Cruises MSC Cruises Norwegian Cruise Line Norwegian Cruise Line Norwegian Cruise Line P&O Cruises Australia Princess Cruises Princess Cruises Regent Seven Seas Cruises Royal Caribbean Int’l Royal Caribbean Int’l Royal Caribbean Int’l Royal Caribbean Int’l Royal Caribbean Int’l Saga Cruises Seabourn Seabourn Silversea Cruises Star Clippers TUI Cruises TUI Cruises TUI Cruises TUI Cruises Viking Cruises Viking Cruises Virgin Cruises Virgin Cruises Virgin Cruises

AIDAprima unnamed unnamed unnamed Carnival Vista unnamed unnamed unnamed unnamed unnamed unnamed unnamed Genting Dream World Dream Koningsdam unnamed unnamed unnamed MSC Meraviglia MSC Seaside Seaside 2 Meraviglia 2 unnamed Breakaway-Plus Breakaway-Plus unnamed Majestic Princess unnamed Seven Seas Explorer Ovation of the Seas Harmony of the Seas Oasis 4 Quantum 4 Quantum 5 unnamed Seabourn Encore Seabourn Ovation Silver Muse unnamed Mein Schiff 5 Mein Schiff 6 Mein Schiff 7 Mein Schiff 8 Viking Sea Viking Sky unnamed unnamed unnamed

Mitsubishi HI 125,000 Mitsubishi HI 125,000 Meyer Werft 180,000 Meyer Werft 180,000 Fincantieri 133,500 Fincantieri 133,500 STX France 117,000 STX France 117,000 Fincantieri 135,500 Fincantieri 135,500 Meyer Turku Yard 180,000 Meyer Turku Yard 180,000 Meyer Werft 150,000 Meyer Werft 150,000 Fincantieri 99,500 Fincantieri 99,500 Nichols Bros. Boat Bldrs.

Nichols Bros. Boat Bldrs.

STX France 167,600 Fincantieri 154,000 Fincantieri 154,000 STX France 167,600 Meyer Werft 164,600 Meyer Werft 164,600 Meyer Werft 164,600 Fincantieri 135,500 Fincantieri 143,000 Fincantieri 143,700 Fincantieri 54,000 Meyer Werft 168,600 STX France 227,000 STX France 227,000 Meyer Werft 168,800 Meyer Werft 168,800 Meyer Werft 55,900 Fincantieri 40,350 Fincantieri 40,350 Fincantieri 40,700 Brodosplit 8,770 Meyer Turku Yard 99,500 Meyer Turku Yard 99,500 Meyer Turku Yard 99,500 Meyer Turku Yard 99,500 Fincantieri 47,800 Fincantieri 47,800 Fincantieri 110,000 Fincantieri 110,000 Fincantieri 110,000

TOTALS : 48 ships 20 MARINE LOG February 2016

GT

5,824,070

Lower B erths Est. Cost ($ MM) Est. Del. 3,250 $650 3,250 $650 5,000 $1,000 5,000 $1,000 3,954 3,954 2,900 $875 2,900 $875 4,200 4,200 5,000 $1,000 5,000 $1,000 3,300 $960 3,300 $960 2,650 $518 2,650 $518 100 $48 100 $46 4,500 4,140 $953 4,140 $953 4,500 4,200 $845 4,200 $1,087 4,200 $1,087 4,200 3,560 $804 3,560 738 $450 4,180 $1,032 5,497 $1,300 5,497 $1,400 4,180 $1,010 4,180 $970 1,080 $330 604 604 596 $280 300 $110 2,534 2,534 2,534 2,534 930 930 2,800 2,800 2,800 149,760

2016-4Q 2017-2Q 2019-4Q 2020-4Q 2016-2Q 2018-2Q 2018-3Q 2020-4Q 2019-4Q 2020-4Q 2019-4Q 2020-4Q 2016-3Q 2017-3Q 2016-2Q 2018-3Q 2017-2Q 2018-2Q 2017-2Q 2017-4Q 2018-2Q 2019-4Q 2017-2Q 2018-2Q 2019-3Q 2019-4Q 2017-2Q 2019-4Q 2016-2Q 2016-2Q 2016-2Q 2018-4Q 2019-2Q 2020-3Q 2019-2Q 2016-3Q 2018-4Q 2017-2Q 2017-4Q 2016-2Q 2017-4Q 2018-4Q 2019-4Q 2016-4Q 2017-1Q 2020 2021 2022

Scandinavia Maritime

Maersk is the largest ship operator in terms of the number of ships it controls

The Nordic Influence Denmark, Finland, Norway, and Sweden continue to exert their influence in the global maritime sector In Part One of our two-part profile of the Nordic maritime sector, we look at the merchant fleet controlled by shipowners in Denmark, Finland, Norway, and Sweden, as well as the vessel construction and repair activities at regional shipyards.

S

hipping is a crucial contributor to the economies of the Nordic countries—Denmark, Finland, Norway, and Sweden—and the industry continues to be a magnet to attract bright young talent. The region’s ship operators maintain an edge over competitors from lower cost areas by investing in newer tonnage that can be operated efficiently and they are ready to take advantage of every benefit that can be reaped from advances in technology. And, in today’s regulatory climate, it doesn’t hurt that the ecologically conscious Nordic countries are an incubator for green technology.

If we take a look at the numbers of ships controlled by Scandinavia countries published by UNCTAD, the statistics can be misleading.

While Finland doesn’t make UNCTAD’s cut of the Top 35 Shipping Nations, the Finnish Shipowners Association says its membership consists of 21 companies operating 101 ships.

What these numbers don’t show is the number of ships chartered in by the region’s ship operators or their strengths in some key sectors. The obvious example of this is Maersk Group. It is the world’s second largest shipowner in terms of its owned f leet (720 vessels totaling 25.5 million gt) but the largest ship operator in terms of number of ships controlled (767 vessels totaling 31.7 million gt).

As of the third quarter of last year, the average age of ships in the Norwegian f leet of foreign-going vessels (under Norwegian and other f lags) was 10.9 years. Indicating how Norwegians keep the

By Nick Blenkey, Web Editor

f leet fresh: In the first nine months of last year, 57 newbuildings totaling 2.09 million dwt were added along with 38 pre-owned vessels totaling 818,000 dwt. Equally significant, disposals and losses totaled 126 ships and 2.29 million dwt.

The Danish fleet is also young, in gross tonnage terms, 31.9% is under five years old, 28.7% is 5-9 years old, 23% is 10-14 years old, 12.2% is 15-19 years old and just 4.1% is 20 years old or more.

Keeping fleets young means ordering new ships. Breaking down 2015 world newbuilding orders by owner’s country of domicile, we find Norway coming in at number 8, ordering 188 vessels totaling 8.7 million dwt and Denmark in the 11th place with orders for 131 ships totaling 7.2 million tons.

Partnering With Suppliers Wherever ships are built—and whoever is buying them—a large percentage of their value is likely to be equipment produced by companies based in the Nordic region, who benefit from a willingness by the region’s shipowners to partner in trialing equipment aboard ship in real life, working conditions.

Historically, this loop used to also include shipyards, but with the shift of shipbuilding to Asia, this is less the case today. Last year’s Danish Maritime Days included a workshop on “Lack of yard presence in innovation supply chain — How can we as an industry enable improved technology uptake through earlier involvement with the yards?”

Nobody in the room had an instant answer. But there were anecdotal references to the dangers of sharing information too readily with Asian shipyards that see nothing wrong with putting one shipowner’s bright ideas into competitors’ ships.

February 2016 MARINE LOG 21

Scandinavia Maritime What remains of the region’s shipbuilding industry is mostly focused on smaller, specialized tonnage, but it retains much of the infrastructure of earlier days including the intellectual property found in classification societies, design houses, research institutions, model basins and similar facilities—creating ships on the drawing board, the computer and in models that will eventually come to life in full-scale steel in Asia.

Meantime, of course, some yards remain very much in business and winning orders.

Denmark: Moving Beyond With shipbuilding migrating to lower cost countries, the shipyard capacity in the region has shrunk considerably. For example, there are only a handful of yards in Denmark.

One of those is Fayard A/S in Munkebo. Located on the Odense fjord, it is a large, primarily ship repair, facility whose slogan is “Speed is all—Quality is everything.” It has four large graving docks, all served by high capacity cranes, and a 700 m working berth.

Dry Dock 3, measuring 315/415 m in length and 90 m in width, is the largest dock and is capable of undertaking simultaneous construction work on a variety of ships. Dry docks 1 and 2 are smaller in size, but still have 280/303 m lengths and 44/45 m widths and are used for repair and maintenance work on ships. Dry dock 4, measuring 145 m x 30 m x 8 m, is primarily used for smaller vessels.

Docks 1, 2 and 4 have modern dock gates and pumping systems that allow the yard to start working on a vessel within 3-4 hours of arrival. The dock gates open or close in just four minutes.

systems with an automated high power charging system.

The initial aim is to demonstrate an energy efficient and emission free ferry for passengers and vehicles in an operational viable setup on the Soeby-Fynshav and Soeby-Faaborg connections in the Danish part of the Baltic Sea. The longer term aim is to see 10 more E-ferries in operation in Europe and worldwide every year, reaching a total of 100 or more by 2030— saving 100,000-300,000 tonnes of CO2 annually.

Sweden: Where Did The Yards Go? The Nordic country with the fewest surviving shipyards is Sweden, where the once gigantic industry has shrunk to the point that it apparently no longer supports a national shipbuilding association—so statistics on it are hard to come by.

Newbuilding is pretty much confined to Saab Kockums naval shipbuilding activities and a handful of small yards involved in smaller tonnage.

Two large repair facilities are still operational. Oresund Dry Docks, in Landskrona on the Øresund Strait beween Denmark and Sweden has facilities that include a 195 m x 35 m graving dock and a 165 m x 28 m floating dock. Damen Oskarshamnsvarvet, on the west coast, has facilities that include an 80 m x 15 m floating dock.

Activities at Damen Shiprepair Götaverken in Gothenburg ended in 2014, due to “the depressed situation of the Scandinavian shipping market, the increased number of Baltic repair docks and the appreciation of the Swedish Krona (SEK).

Though Gothenburg no longer has a shipyard, it still has one of Europe’s best known towing tanks, operated by SSPA Sweden AB. SSPA has the capability to perform most kinds of model testing in its facilities: the towing tank, the large cavitation tunnel and the seakeeping and maneuvering basin - Maritime Dynamics Laboratory, (MDL). Wind tunnel tests can be performed at external test facilities. All test facilities at SSPA are designed for performing tests with large models, which have many advantages as scale effects are reduced and more reliable measurements can be performed.

Norway, Hanging In There

Karstensens Skibsvaerft builds mostly fishing vessels

Karstensens Skibsvaerft A/S in Skagen currently has a labor force of around 250, and can build vessels up to 135 m in length. While most are fishing vessels, the yard has been building three Knud Rasmussen-class of offshore patrol vessels, the third of which is near completion using a hull built at Poland’s CRIST shipyard last April.

Orskov Yard A/S in Frederikshavn converts and repairs all types of vessels in facilities that include two graving docks two floating dry docks with a capacity of up to 215 m x 34 m. The yard employs 230 people and cooperates closely with a wide range of subcontractors to provide all-round, one-stop solutions.

Søby Værft AS in Søby Ærø offers ship repair services using three graving docks with capacities up to 115 m x 24 m x 6 m.

It also can build new vessels, such as the EU-supported E-ferry project. The project is aimed at bringing into service a 4.2 mWh battery capacity electrically powered, ICE class B, single ended, drive-through RO/RO passenger ferry with one continuous main deck for trailers and cars. It will use state-of-the-art electric only 22 MARINE LOG February 2016

For those interested in the preservation of Norwegian shipbuilding capability, a big question in the months ahead will be whether the Vard Group, a Fincantieri company, can continue to keep five Norwegian shipyards alive based on its previously successful strategy of supplying primarily the offshore oil and gas sector with specialized vessels designed and fitted in Norway using hulls built in Romania.

In addition to its Norwegian yards, Vard has two yards in Romania, two in Brazil and one in Vietnam. Vard’s biggest recent headaches have included well-documented problems with its Brazilian activities and it has said that these are under review.

Outside of Brazil, Vard’s problems are those shared by all shipbuilders historically dependent on the oil and gas sector—getting enough orders to keep capacity occupied and diversifying into other sectors.

Its most recent order came in November and was for the design and construction of what was described only as “one offshore vessel for an undisclosed international customer.” It is being designed

by Vard Design in Ålesund, Norway. The hull will be constructed at Vard Braila in Romania and outfitting and delivery is scheduled from Vard Langsten in Norway in 2017.

That order followed contracts worth a total $100 million for the design and construction of two offshore subsea construction vessels for Dubai-based Topaz Energy and Marine. The hulls will be constructed at Vard Tulcea in Romania, with delivery scheduled from Vard Brattvaag in Norway.

Scandinavia Maritime as of January 1, 2015 (Dwt)

Scandinavian commercial fleet Rank

# of vessels

Country

National Flag

Foreign Flag

Total

National Flag

Foreign Flag

10

Norway

848

1,009

1,857

17,066,669

29,303,873

46,370,542

63.2%

2.67%

13

Denmark

392

538

930

15,286,153

20,893,511

36,179, 664

57.75%

2.09%

34

Sweden

101

234

335

1,248, 460

5,194,995

6,443,415

80.62%

0.3%

Dwt Tonnage

In the fisheries sector, Vard last year secured an order from Brevik AS of Norway for a coastal fishing vessel, but, for this vessel, Vard Braila in Romania will undertake all stages of production.

Another fisheries order came from a Canadian client and was for a 79 m stern trawler of Rolls-Royce NVC 374 design. Vard Braila will build the hull and the vessel will be fitted out at Vard Aukra in Norway in the fourth quarter of 2016.

Thus far, Vard has either not been looking at the offshore wind sector or has been keeping very quiet about it. That’s not the case with other Norwegian shipbuilders.

A significant project currently under way at the Ulstein shipyard is the fitting out of the first of two innovative offshore wind industry Service Operation Vessels (SOV) being built for Germany’s Bernhard Schulte Offshore GmbH that will be Ulstein’s first for the offshore wind industry—and the first to feature its innovative X-Stern which allows a vessel to be positioned with the stern faced towards the weather instead of the bow.

The hull of the first X-Stern SOV hull arrived at Ulstein’s Ulsteinvik shipyard in January and is scheduled for sea trials starting late spring. Starting this summer, the vessel will work at the Gemini wind farm in the Netherlands for Siemens Wind Power Service.

A project underway at Fjellstrand AS is another pointer to the growing attraction of offshore wind service opportunities in a depressed oil and gas market. It is converting a platform supply vessel it delivered only in April of last year into a wind farm support vessel.

Havyard Group established its credentials in the offshore wind sector with the delivery last February of the first of three Havyard 803 SOVs to Denmark’s Esvagt. In addition, Havyard has an order from Esvagt for a design and equipment package for a Havyard 931 CCV crew change vessel that will be built at Spanish shipyard Astilleros Zamakona.

Late last year, Esvagt ordered a Havyard SOV, aimed at a new niche for vessels of this kind, smaller wind farms. This Havyard 831 design is described as compact and efficient, but with ample capacity to transport service personnel and equipment. The first Havyard 831 is also being built outside Norway, at the Cemre shipyard in Turkey.

Another sector where Havyard has been successful is the design and construction of large fish carriers. Last November Havyard was able to fill a gap in production of these vessels by using the covered building dock at its Leirvik shipyard for refit and refurbishment of two Faroese fishing trawlers.

Kleven, operates two shipyards—Myklebust Verft and Kleven Verft—and its orderbook includes a deep sea minerals exploration vessel and several fisheries vessel among the AHTs and OCVs. A recent contract from Sølvtrans is for the delivery of a live fish carrier vessel for Myklebust Verft. This is Kleven’s second order from Sølvtrans for this type of vessel, both of which are being built to the Rolls-Royce NVC 387 design.

While ship designs are part of the stock in trade at Ulstein, Vard and Havyard, Kleven’s orderbook is pretty much a portfolio for

Total

Foreign Flag as % of Total

Total as % of World

Norwegian specialist ship design firms. The deep sea minerals vessel, which is on order for De Beers Marine Namibia, is being built to MT 6022 design from Marin Teknikk. This design is well proven in the offshore construction segment, but the De Beers ship will include a wide range of tailor-made equipment and features.

A large pelagic midwater trawler/purse seiner that Kleven is building for Gitte Henning AS in Skagen, Denmark, is based on a design from another well known independent design house, Salt Ship Design, which in October had 16 vessels of its design under construction at Norwegian and foreign shipyards.

“Unlike the current offshore market, fisheries and fish farming are doing very well and these segments represents an increasingly important market for Salt,” it said.

In addition to the independent design houses and shipyard design divisions, Norway is also the home of Rolls-Royce’s and Wärtsilä’s Ship Design divisions, which have absorbed various independents over the years. Having a ship design department makes all sorts of sense for both of them, as a ship design is the envelope for, quite literally, a boatload of equipment and systems.

Finland, Back From The Brink?

In Finland, thanks largely to government support —including diplomatic efforts— a large part of the shipbuilding industry has emerged from the ashes of what was STX Finland.

Most importantly, with a lot of Finnish Government coaxing, Germany’s Meyer Werft has acquired the Turku shipyard, enabling it to continue as one of the world’s premier cruise ship yards.

Shipbuilding has also returned to the Rauma shipyard after STX announced its closure in 2013, with the site being sold to the local municipality. The shipyard reopened as Rauma Marine Constructions Oy (RMC) the following year and in December 2015 reported that it was to “receive a major infusion of capital for further growth from the government backed Finnish Industry Investment Ltd, and two investment companies, Finda and a fund managed by Taaleritehdas. That news came the day after the Finnish Ministry of Defense issued a Request For Information to kick off a long planned plan to build four new corvette size vessels.

The Rauma shipyard also has considerable expertise in the area of icebreaking vessels — which keeps what is now Arctech Helsinki Shipyard from having a monopoly in that area. When STX Finland ’s troubles threatened the survival of the Helsinki yard, Russia’s United Shipbuilding Company took a 50% stake in and subsequently took total ownership control and the yard’s orderbook primarily includes advanced icebreaking tonnage for Russian projects, though an icebreaker for the Finnish Transportation Authority is currently fitting out.

The other repository of Finnish icebreaking knowhow is icegoing vessel design and engineering specialist Aker Arctic, whose capabilities include ice model testing. Its largest shareholder is Finnish Industry Investment, which is also major stakeholder in the reborn Rauma yard. ■ February 2016 MARINE LOG 23

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COMMUNICATIONS

The myKVH web portal helps operators effectively manage onboard data usage

Getting a Handle on Data Usage New Web Portal from KVH Helps Commercial Fleets Manage Data Usage Compiled by Marine Log Staff

A

s ships rely increasingly on broadband connectivity to improve operational efficiency and provide crew welfare, bandwidth management has become a critical need. On vessels today, broadband connectivity is needed for access to critical weather and navigational information as well as secure communications with fleet operations management. Real-time access to sea condition information, fleet and port data, and remote systems support capabilities can enhance crew safety, save fuel, reduce operational expenses, and ensure compliance with an ever-expanding array of regulations. Broadband connectivity is also the lifeline for seafarers — who consider communications with family and access to the Internet as must-haves for life onboard. If vessels want to attract and retain qualified crew, they need to provide connectivity. It all adds up to an emphasis on managing broadband data usage.

KVH has introduced the myKVH web portal to enable ship operators, fleet managers, and vessel officers to effectively manage onboard data usage. The tool is designed to provide the transparency and accountability that is essential for a ship to get the most value from its broadband data plan, which is typically based on a monthly allotment of airtime.

KVH introduced the myKVH web portal in October 2015 at the same time it introduced new airtime plans for its mini-VSAT Broadband service, which provides connectivity to thousands of vessels worldwide. The new airtime plans deliver data at maximum speeds 26 MARINE LOG February 2016

on the mini-VSAT Broadband network at every price point. The new airtime plans feature monthly allotments of data in a wide range, giving fleet managers the ability to choose a data allotment that fits the vessels’ budget and needs.

With a vessel utilizing a monthly allotment of data, it becomes extremely important to have visibility into the amount of data being consumed. The myKVH web portal provides a single secure site with the tools to enable a ship operator to manage network usage by vessel or by individual crew members, allocate operational and crew data, and receive customized usage alerts by email and SMS text message.

It is available for no additional cost to every customer using KVH’s mini-VSAT Broadband service. With the myKVH web portal, operators have a tool to proactively monitor bandwidth usage so that a single user can no longer compromise an entire vessel’s connectivity.

Secure, fleet-wide monitoring with map and grid displays is another benefit of the myKVH tool for onshore staff. The fleet-wide view shows IT managers and ship superintendents at a glance where their vessels are and the status of their mini-VSAT Broadband systems. It also enables them to view support cases across the fleet.

As the sophistication of maritime broadband communications grows, managing onboard data usage will become ever more important for every vessel. The myKVH web portal is designed for the visibility and accountability that fleet managers need to make the smartest use of connectivity.

COMMUNICATIONS Delivering Reliable High-Speed Broadband This past December, Inmarsat achieved global commercial service for its high-speed broadband service Global Xpress. The service was formed by three Ka-band high-speed mobile broadband communications satellites launched from Kazakhstan over the last three years.

A fourth satellite being built by Boeing in California will provide extra capacity when it launches later this year.

GX operates in the resilient Ka-band, while integrating seamlessly with Inmarsat’s L-band network to allow customers to have reliable and assured access to high-throughput communications.

During the course of 2016, Inmarsat will introduce a series of market-specific, high-speed connectivity services powered by Global Xpress. Inmarsat has signed up several manufacturers and valueadded resellers to distribute its Global Xpress services. Among the manufacturers on the maritime and offshore sector are Cobham, Intellian, JRC, and RigNet. At last year’s International Workboat Show in New Orleans, Intellian displayed its GX60, a compact maritime stabilized terminal designed to use Inmarsat’s GX broadband service. Built and supplied with an Integrated GX modem, the GX60 installs easily and quickly delivers high-speed connectivity. A real benefit of the GX60, explains Paul Comyns, Intellian’s Vice President Global Marketing, is its small size, integrated design, and intuitive user interface. It means operators can install and commission the terminal in relatively the same amount of time as a FleetBroadband system.

Also on display at the Workboat Show was Cobham SATCOM’s SAILOR 60 GX, a new super-light and compact Ka-band VSAT antenna. The new 60cm antenna system is designed for Inmarsat’s new Fleet Xpress service. Weighing just 82 lbs/37 kg, the SAILOR 60 GX user terminal features one of the lightest Ka-band antennas and

boasts leading radio performance to ensure a reliable link to the satellite and more availability of communication services.

When the 1,297 ft MSC Zoe, among the largest containerships in the world, set sail last summer on her inaugural voyage, she was equipped with high-speed Marlink Maritime VSAT (Very Small Aperture Terminal) on board. Marlink VSAT services provide reliable connectivity for operational and crew communications on MSC Zoe and 130 other MSC ships.

MSC uses a suite of integrated IT solutions designed to reduce network administration on board and provide easy access to communication services for crew, all enabled by the XChange communications management platform from Marlink.

Recently added to MSC Zoe’s communications solutions and being rolled-out across the MSC fleet is XChange Universal Remote Access (URA), a unique system that provides secure remote access to computers on board from the shore office. MSC is already experiencing higher uptime for IT systems across the fleet due to the improved remote maintenance and troubleshooting capabilities provided by URA. The system differs from standard remote access solutions, which are designed for specific terminals or protocols and require their own IP address. Since it is a universal access solution, MSC can use the same tool to access IT systems on any ship in its fleet.

XChange as standard also provides communication lines for MSC crews to easily stay in contact with their families and friends via email, internet and social media, while giving full control of access and costs to administrators on shore. For MSC, this functionality has been extended by XChange BYOD (Bring Your Own Device), a ready-to-use Wi-Fi solution and accompanying apps that provide voice and data access for crew using their own smartphones, tablets or laptops. ■

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LNG

This past January, TOTE Maritime successfully loaded LNG bunkers aboard the Isla Bella

Bunkering Up More milestones for LNG as a marine fuel

L

ast year, General Dynamics NASSCO earned the bragging rights for building and delivering the world’s first LNG-fueled containership, the Isla Bella, to Jones Act operator TOTE Maritime.

The San Diego shipbuilder capped off that technological achievement last month by delivering the 764 ft Perla del Caribe, sister ship to the Isla Bella, two months early. The two ships were built under a contract signed by TOTE in December 2012. The investment by TOTE in the two ships was $375 million.

GD NASSCO designed the ships in partnership with DSEC, a subsidiary of Daewoo Shipbuilding & Marine Engineering (DSME), located in Busan, South Korea. The design is based on proven containership-design standards and includes DSME’s patented LNG fuel-gas system and a MAN ME-GI dual fuel, slow-speed engine.

The 8L70ME-GI engine was built by Korea’s Doosan Engine under license from MAN Diesel & Turbo.

Burning LNG will allow the Marlin Class ships to be fully compliant with strict emissions regulations while operating in both the North American Emissions Control Area and the U.S. Caribbean ECA. The Isla Bella made its first trip from Jacksonville, FL, to San Juan, Puerto Rico, November 24. On January 9, TOTE Maritime Puerto Rico successfully loaded LNG bunkers aboard the Isla Bella. Approximately 100,000 LNG gallons transported by 12 TOTE-owned LNG ISO containers were loaded on schedule. The bunkering was conducted under strict U.S. Coast Guard oversight while Isla Bella was also undergoing cargo operations.

28 MARINE LOG February 2016

Compiled by Marine Log Staff

The LNG was transferred from the ISO tank containers using a specially developed transfer skid developed by TOTE’s partner Applied Cryogenics Technologies (ACT) of Houston, TX. The transfer skid is designed to allow four ISO tanks to be transferred to Isla Bella at once, dramatically reducing transfer time.

The LNG was sourced by TOTE’s partner, JAX LNG, LLC, from AGL Resources’ LNG production facility in Macon, GA. Genox Transportation, a specialized LNG trucking partner of TOTE, transported the fuel to Jacksonville. Pivotal LNG, a subsidiary of AGL Resources, also provided transfer expertise to TOTE Maritime with its highly trained LNG experts, ensured the operation was conducted safely and in accordance with best industry practices.

Oversight of the operation both at shipside and on shore was provided by TOTE Services, Inc. (TSI), TOTE Maritime’s sister company that manages the vessels.

“We are very pleased with the results of this initial LNG bunker event and know that the use of LNG in our Marlin Class vessels will provide unprecedented environmental benefits both here in Jacksonville and in Puerto Rico,” says Tim Nolan, President of TOTE Maritime Puerto Rico.

Meanwhile, Crowley Puerto Rico Services, Inc., Jacksonville, FL, has selected Eagle LNG Partners as LNG supplier for the company’s new LNG-powered, Commitment Class ships, which will be delivered in 2017 for use in the U.S. mainland to Puerto Rico trade. To support Crowley’s LNG needs, Eagle LNG will build an

LNG LNG plant offering a capacity of 200,000 gallons per day (87,000 gallons per day initially) in Jacksonville. The state-of-the-art facility is slated to be operational by early 2017. The decision to partner with Eagle LNG was made by Crowley in part because of the companies’ shared commitment to the environment.

“The partnership,” says Crowley’s John Hourihan, Senior Vice President and General Manager, Puerto Rico services “is an important first step in developing sustainable supply infrastructure to ensure these highly technical, environmentally friendly vessels operate to their full capability.”

The supply agreement between Eagle LNG and Crowley will provide LNG fuel for the El Coquí and Taíno, which are expected to be in service in the second quarter and fourth quarter of 2017 respectively.

The LNG plant is separate from the previously announced Eagle LNG Federal Energy Regulatory Commission (FERC) export terminal located along the St. Johns River, in Jacksonville, which will continue to focus on export markets in the Caribbean and Atlantic Basin.

Dual Fuel Bulkers Built To New DNV Gl Class ESL Shipping’s new dual-fueled bulk carriers will not only be the first large LNGfueled bulkers, but the first constructed to the new DNV GL rule set. Due for delivery in 2018, the highly efficient 25,600 dwt vessels are optimized for trading in the Baltic Sea region. Featuring the Deltamarin B.Delta26LNG design, the two highly efficient ships will feature dual-fuel main and auxiliary machinery, resulting in CO2 emissions per ton of cargo transported half that of present vessels.

The bulk carriers will be built to the new DNV GL rules for general dry cargo ships with DNV GL ice class 1A and will have type C LNG tanks of approximately 400 m3 capacity enabling bunkering at several terminals within the Baltic region. The B.Delta26LNG has a shallow draft of maximum 10 m, an overall length of 160 m, and a breadth of 26 m.

The vessel is now propelled by two electrically powered Schottel STP Twin thrusters and is fitted with two 6-cylinder Wärtsilä 20DF dual-fuel generating sets, for navigating within harbors, and two Mitsubishi auxiliary generators.

Switching to LNG fuel means providing against unlikely malfunctions, such as an ignition failure resulting in an unburned mixture of gas and air in the exhaust. This could cause uncontrolled combustion and an increase in pressure the next time

ignition takes place, putting a substantial strain on the pipe components. To protect against this, the Mitsubishi auxiliary generators are protected by a Q-Rohr flameless venting system by German manufacturer Rembe GmbH that ensures that the reaction is vented directly at the exhaust.

Both the f lame and the pressure are absorbed by the stainless steel mesh filter of the Q-Rohr, providing optimum protection for the pipe components and the environment. ■

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First Pure LNG Ferry For Germany Germany’s first LNG-fueled ferry, the MS Ostfriesland, has been operating on the ecologically sensitive Wadden Sea since June 2015. Originally built in 1985, the vessel was converted to dual fuel propulsion in 2015 when it was fitted with a new 15 m aft end which extended the vessel’s length from 78.7 m to 93 m. The new aft end houses the new machinery space and LNG fuel system/tank.

pivotallng.com | 713.300.5116 | info@pivotallng.com Follow us on © 2015 AGL Resources Inc. All rights reserved. PLNG-12886

February 2016 MARINE LOG 29

newsmakers

Carnival Corp names Roger Chen Chairman for emerging market Carnival Corporation & plc ha s appointed Roger Chen as its Chairman in China. This year, the cruise giant will expand its capacity in China by 58% with the addition of several new ships to a number of its brands fleets. Chen will be based in Shanghai.

Chuck Kissee has been promoted to Vice President of Sales and Marketing of Trans Marine Propulsion Systems, Inc. Kissee will be responsible for all sales and marketing for the TMPS power solutions in multiple market areas including marine, power generation, and rail.

Jean Gould has been appointed Gulf Coast Regional Director for the North American Marine Environment Protection Association (NAMEPA).

Gould brings with her more than 25 years of experience in the energy and maritime industries in communications, marketing and corporate affairs.

The American Water ways Operators has promoted its Executive Vice President Jennifer Carpenter to Chief Operating Officer. AWO President & CEO Tom Allegretti said, “Jennifer’s promotion to Chief Operating Officer is richly deserved and fully earned during a quarter century of exemplary service.”

Hendry Marine Industries, Inc. (HMI) and Gulf Marine Repair Corporation have named Jim Long its new Chief Executive Officer. The two companies recently consolidated to improve operations and better position the companies for growth.

Kerri McClellan has been named the Vice President and Deputy General Counsel for Crowley Maritime Corporation. McClellan will be responsible for a wide array of legal matters, and has extensive experience in corporate finance, mergers and acquisitions, corporate governance and compliance.

The Port of London Authority (PLA) has appointed Bob Baker as Chief Harbor Master. Baker will succeed David Phillips who retires from PLA after nine years. Baker joins PLA from Forth Ports where he served as Chief Harbor Master since 2001.

Austal Limited has announced that Andrew Bellamy has stepped down from his position as Managing Director and CEO. According to Chairman John Rothwell, Bellamy “elected to take a career sabbatical.” Taking over the CEO role is David Singleton who will act as CEO-designate until he formally assumes the role in April.

Fathom, the newest brand under Carnival Corporation & plc, has named Ronald Fenska the company’s Vice President of Sales.

Fenska will be responsible for leading Fathom’s overall sales strategies and initiatives, including managing and oversight of group travel and emerging segments.

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techNews

Furuno launches

The Schilling Twisted Trailing Edge Rudder helps reduce drag

new radar series

Becker introduces optimized rudder to its line up Becker Marine Systems has introduced an optimized version of its rudder profile with the introduction of it Schilling Twisted Trailing Edge (Schilling TT) Rudder.

The rudder is suitable for tankers, general cargo carriers and some research vessels—ships that t y pically have to travel long distances and require much maneuverability.

Development on the rudder type began a few years ago; and its production was accelerated due to an increase in demand for a product that would help vessels operate more efficiently and meet the ever-changing environmental regulations.

Becker Marine Systems’ Walther Bauer says the company is “getting consistently positive feedback about the improved

performance of the rudder thanks to its asymmetric trailing edge.”

According to Becker Marine, the new optimized design dramatically reduces drag since the fishtail trailing edge is only located on the side where the slipstream of the propeller hits the rudder, meanwhile the other side is plane to reduce drag.

“We combine the rudder with our specialized optimized rudder bulbs in order to further lower energy consumption,” says Bauer.

The rudder’s energy efficiency has made it an attractive addition to the Becker Marine line up. One month into 2016 and the company has received orders for ten Schilling TTs for general cargo carriers with a carrying capacity of 3,300 and 8,500 dwt. www.becker-marine-systems.com

DOF Subsea orders LARS system from Rolls-Royce

Provider of subsea services in the worldwide oil and gas production markets, DOF Subsea has placed an order for two Launch and Recovery Systems (LARS) from Rolls-Royce. The LARS system enables the deployment and recovery of remotely operated vehicles (ROVs) to a depth of 3,000 m.

The system can automatically launch and recover an ROV to a given target depth and at a given target speed.

The systems, which have highly accurate active heave compensation to cope with severe weather, will be installed on board DOF Subsea’s 104.2 m ROV construction support vessel Skandi Neptune. The vessel is equipped with a heavy duty heave compensated 250 ton crane, and two 3,000 m rated WROVs. Beyond DOF Subsea, the systems are also used by Farstad, Olympic, REM, Havila, k-Line, Ocean Installer, Eidesvik, GC Rieber, Allseas, COOEC and TechDOF. This contract also marks a milestone of the LARS system, as it is the 100th and 101st systems ordered. www.rolls-royce.com

Furuno pl ans to l aunch t wo new radar models of its FAR-15x3 and FAR-15x8 series. Both models have been developed to simultaneously deliver high performance and excellent operability.

The FAR-15x3 series is a non-IMO Radar suitable for workboats and fishing vessels. It features a new innovative function called “Target Analyzer” which helps improve situational awareness by displaying moving targets, stationary targets, rain, sea surface and targets nears the vessel in different colors.

Users of the FAR-15x3 series can also select from a variety of display modes, including full screen Radar echo presentation.

Meanwhile, the FAR-15x8 series meets the latest IMO standards for all Cat.2 Radar (19-inch display is required for Radar effective diameter of 250 mm) and Cat.3 Radar (15-inch display is required for Radar effective diameter of 180 mm). It utilizes a 100 Base-TX Ethernet connection to link two radar systems together—providing high-speed and stable navigational data sharing.

Both series Radars will feature an Automatic Clutter Elimination (ACE) function, Fast Target Tracking, and Enhanced usability of the control unit.

With the push of a single button, the ACE function delivers the user with a decluttered echo presentation—releasing the operator from having to make any adjustments to the radar, and distracting from the work at hand.

Fast Target Tracking displays speed and course in a matter of seconds after selecting any target.

And finally, usability is enhanced with the addition of a touchpad on the control unit, offering durability and a more intuitive operation.

Learn more at www.furuno.com

February 2016 MARINE LOG 31

techNews

Wärtsilä, Cavotec team up for industry first Wärtsilä and Cavotec have joined forces to develop the world’s first combined induction charging and automatic mooring concept. The two will combine their strengths and expertise to develop the concept, which will be implemented in Wärtsilä’s ship designs.

Wärtsilä has developed a wireless charging system based on inductive power transfer.

Charging wirelessly eliminates the cable connection between the vessel and shore; reduces maintenance since wear and tear to physical connection lines is eliminated; and allows for charging to begin immediately once the vessel arrives at the dock.

Wärtsilä says that by making wireless charging ship batteries possible, the

electr ification of coastal shipping is enhanced, and results in the reduction of harmful exhaust emissions.

“During recent years, wireless charging has been introduced for cars, busses and trains. Wärtsilä has now made this possible also for marine vessels,” says Peter Rogers, Director Power Products, Wärtsilä Marine Solutions. “This agreement with Cavotec will enable this technology to be delivered as an integrated charging and mooring system.”

Meanwhile, Cavotec’s vacuum-based automated mooring system eliminates the need for conventional mooring lines; the systems also improves safety and operational efficiency. Remote controlled vacuum pads enable the mooring system to secure and release vessels in just seconds.

“This is an exciting project and we are delighted to be partnering with Wärtsilä to make shipping cleaner, safer and easier.

The envisioned integrated wireless charging and mooring system will further the marine industry’s environmental profile,” says Ottonel Popesco, CEO, Cavotec Group.

The joint project’s integrated system is expected to transfer more than 1 MW of electrical energy—nearly 300 times more than that of current chargers used by electric cars. www.wartsila.com

APRIL 12-14, 2016 MORIAL CONVENTION CENTER, HALL B NEW ORLEANS, LA

Hybrid Turbocharger wins prestigious award The Japan Machinery Federation (JMF) awarded Mitsubishi Heavy Industries Marine Machinery & Engine Co., Ltd (MHI-MME) with the prestigious JMF’s President’s Award for 2015 during the 36th Energy Conserving Machinery Awards.

MHI-MME received the award for its Hybrid Turbocharger. The unit incorporates a high-speed generator motor in the Mitsubishi MET Turbocharger and enables excess exhaust gas energ y of large marine diesel engines to be converted into electric power efficiently and flexibly.

The unit can also operate in “motoring mode” enabling the rotor to be accelerated by external electric power.

T he late s t H y br id Tur bo char ger series, the MET66MAG-VTI was developed in cooperation with Mitsui Zosen Cor por ation and Kobe Die sel Co., Ltd. The unit is installed on six large car carriers built for NYK Line by Shin Kur u shima Dock y ard Co., Ltd and Imabari Shipbuilding Co., Ltd.

www.mhi-mme.com

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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 January 1, 2016. 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 Derecktor Shipyard

Mamaroneck, NY

1

Research vessel

65 ft, hybrid propulsion

CUNY

2017

Horizon Shipbuilding

Bayou LaBatre, AL

2

Escort Tugs

100 ft x 40 ft

McAllister Towing

2017-2Q

Nichols Bros. Boat Bldrs

Whidbey Isl., WA

2

Coastal cruise ships

238 ft, 100-PAX

Lindblad Expeditions

2018-2Q

Willard Marine

Anaheim, CA

1

Patrol boat

33 ft

Oceanside Police

2016

GD-NASSCO

San Diego, CA

1

Product Tanker

50,000 dwt

American Petroleum Tanker

2016-1Q

Eastern Shipbuilding

Panama City, FL

1

Towboat

96 ft x 34 ft

Bisso Marine

2016-1Q

SAFE Boats

Bremerton, WA

2

Patrol boats

41 ft

Royal Bahamas Police

2016-1Q

St. Johns Ship Building

Palatka, FL

1

ATB Tug

4,200 hp , 100 ft

Vane Brothers

2016-1Q

$94.8

DELIVERIES

NOTES

PENDING CONTRACTS BAE Systems Southeast

Mobile, AL

2

Dump Scows

7,700 cu. ft

Great Lakes Dredge

Options

BAE Systems Southeast Bay Shipbuilding

Jacksonville, FL

1

Tug

141 ft x 46 ft, 12,000 bhp

Seabulk Tankers Inc.

Option

Sturgeon Bay, WI

1

ATB

8,000 hp/ /155,000 bbl

Plains All American Pipeline

Kvichak Marine

Option

Seattle, WA

30

Skimmers

30 ft 3 in x 9 ft 8 in

U.S. Navy

Opt. to 2019

TBD

1

Double-end ferry

70-car similar to Pocohontas

VDOT

2018-2020

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

EDBG Design

TBD

3

Pass./Vehicle ferries

1,000 PAX/100 vehicles

DRBA

$101

2018- 2021

$25

Index of Advertisers Company Page #

Company Page #

ABS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Marine Art of J. Clary. . . . . . . . . . . . . . . . . . . . 4

ASNE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Paratech, Inc. . . . . . . . . . . . . . . . . . . . . . . . . 11

Becker Marine Systems . . . . . . . . . . . . . . . . 13

Pivotal LNG. . . . . . . . . . . . . . . . . . . . . . . . . . 29

BOK Financial. . . . . . . . . . . . . . . . . . . . . . . . . 3

Renishaw . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Center Lift. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Seaspan-Victoria Shipyards. . . . . . . . . . . . . 12

DNV-GL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C2

Smith Berger Marine Inc.. . . . . . . . . . . . . . . . 4

Furuno. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Star Information Systems . . . . . . . . . . . . . . . 9

Great American Insurance Group . . . . . . . . 15

Subsea Global Solutions. . . . . . . . . . . . . . . C4

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

Workboat Maintenance & Repair. . . . . . . . . 32 February 2016 MARINE LOG 33

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February 2016 MARINE LOG 35

Environmental Forum

Globalization and the Marine Environment This year’s collapse in oil prices reminds me of King George’s line from the hit musical Hamilton: “Oceans rise / Empires fall.” As the long-accepted wisdom about oil and other commodities crumbles in the face of new facts, it is helpful to take the time to see how things are changing. Shipping is now gasping for breath. One symptom is the growing number of detentions recorded by the U.S. Coast Guard in the Port of New Orleans. Too many ships and weak demand for key bulk commodities—coal and iron ore being two—has pummeled basic freight rates.

With oil now costing as little as $25 a barrel, more than 15% down since the start of the year, energy markets are signaling trouble ahead—particularly given economic uncertainty in China.

This week, the Baltic Dry Index, which measures the cost of shipping raw materials such as coal, metal, and fertilizers around the world, fell below 400 for the first time since records began in 1985. Last year, the index was well above 1,000; in 2010, it was nearly 4,000. Therefore, a cargo of coal, cement or oil currently costs less than it has at anytime in the last thirty years.

Over the past ten years, shipping companies all over the world expanded their dry bulk capacity, because it was cheap for them to borrow money, and because new investors, mostly private equity funds, joined the

presumed feast, seeking a new and interesting way to put their money to work.

All of these investors have now been badly burned. As the World Bank reported last week, global trade growth has dropped sharply in recent years, to around 3 percent, and it is continuing to fall. In the decade before 2008, global trade rose by an average of 7 percent every year because countries like China were booming, and western businesses were creating a network of global supply chains.

The shipping industry has therefore entered an almost “perfect storm” of costs, largely to do with the maintenance of unemployed ships, that it cannot hope to sustain.

This explains the rising number of port state control (in the case of the United States, the U.S. Coast Guard) detentions and fines.

Owners of so-called capsize vessels (the largest type) face an average expense of $8,000 per day to maintain such ships at sea. However, the rate paid by shippers (correctly, those companies that ship cargo) is now about $5,000. Do the math.

Late in December, Deutsche Bank, a major lender, made everyone take notice when it seized a large bulk carrier owned by an investment group in which Oaktree Capital and Lion Cao Asset Management are participants, over unpaid mortgage debts. Companies such as Taiwan’s Sincere

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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

36 MARINE LOG February 2016

AMERICAS U.S. Gulf Coast & Mexico 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 Ian Littauer Regional Sales Manager T: (212) 620-7225 | F: (212) 633-1165 Email: ilittauer@sbpub.com

By Clay Maitland, NAMEPA Founding Chairman

Navigation, Greece’s Diana Shipping, and Hong Kong’s Jinhui Shipping have seen their profits decline, and their stock prices drop.

All of this means cost-cutting, ships going into layup, and the fact that as one observer puts it, there is no “next customer in line” able to replace China as a consumer of raw materials. It means, also, that there will be more substandard and marginally maintained bulkers out there, desperately seeking economic survival for their owners. While China’s appetite for iron ore, oil and coal has not suddenly disappeared, it is not growing anymore. And the United States, now, exports oil instead of importing.

On a more positive note, shipping’s disaster is forcing the retirement of many bulkers.

The number of larger ships scrapped in 2015, was twice that of 2014. Owners are junking their bulkers (and containerships, too) at a younger age, 15 and less, compared to [the age of] 20 in the past. That has to be good news for some aspects of environmental protection. It doesn’t solve the problem of MARPOL Annex I violations, namely sludge dumping.

As they say in Wall Street, “Mr. Market is a strict teacher.” Eventually, too many ships and weak demand will correct the overtonnaging problem that has haunted the industry for the last fifteen years. It will not, however, give us cleaner air or seas.

EUROPE Neil Levett Managing Director Alad Ltd. T: +44 (0)1732 459683 Email: neil@aladltd.co.uk SCANDINAVIA Brenda Homewood Alad Ltd. T: +44 (0)1732 459683 Email: Brenda@aladltd.co.uk

KOREA & CHINA Young-Seoh Chinn JES Media International T: +822-481-3411 | F: +822-481-3414 Email: corres1@jesmedia.com CLASSIFIED SALES Jeanine Acquart Classified Advertising Sales T: (212) 620-7211 | F: (212) 633-1165 Email: jacquart@sbpub.com

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