January 2017 Marine Log

arine oG M L www.marinelog.com

R e p o r t i n g o n M a r i n e B u s i n e s s & T e c h n o l o g y s i n c e 18 78

January 2017

POWER

Play New options to help operators comply

CEO Spotlight on KNOP’s John Costain What’s the Magic Number for the Navy?

Finally: USCG Type Approved BWT Systems

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CONTENTS

26

30

Departments

Features

2E ditorial A new year with new aspirations

18

4 Industry Insights

Propulsion Report Making Clear Choices Diesel engine manufacturers unveil their solutions to comply with IMO III and EPA Tier 4

6 Marine Innovations

Plus: Gaining Momentum

8 Wellness Column Minding Trauma

24

CEO Spotlight Q&A with John Costain, CEO & CFO, KNOT Offshore Partners UK LLC Marine Log chatted with John Costain to find out KNOT Offshore Partners’ business model and secret to success in the rough shipping and oil and gas market

26

Navy Shipbuilding & Repair Looking for the “Magic 350” How will the new Trump Administration shape its vision of the Navy?

30

Environment Finding the Right Fit The U.S. Coast Guard has awarded type approvals to three Ballast Water Technology Systems— but the road hasn’t been easy

32

Regulations Subchapter M: An Eye on Safety Safety is paramount to any vessel operation, and ultimately, that is the goal of Subchapter M

10 Update igor delivers research catamaran V NTSB releases El Faro audio transcript • Derecktor Shipyards reels in another hybrid vessel order • Noonan named CMA Commodore for 2017 • Metal Shark delivers patrol boats for Latin America, Caribbean • •

16 Inside Washington ow to ring in the new year?

H Corporate tax relief 34 Newsmakers Lynne Griffith announces retirement from WSF 35 Tech News Kongsberg develops new K-Fleet app, launches new training portal

40 Marine Salvage Final thoughts on 2016: A productive year for partnerships

January 2017 // Marine Log 1

EDITOR’S COLUMN

MarineLoG January 2017 Vol. 122, NO. 1 ISSN 08970491 USPS 576-910 PRESIDENT Arthur J. McGinnis, Jr. amcginnis@sbpub.com PUBLISHER & EDITOR-IN-CHIEF John R. Snyder jsnyder@sbpub.com Associate Publisher Jeff Sutley jsutley@sbpub.com

A New Year with New Aspirations

W

ith the New Year, come new resolutions and new aspirations. For many in the U.S. shipbuilding industry, there is also hope that there will be the fulfillment of campaign promises by President-elect Trump.

One of the Trump Administration’s promises is a commitment to a 350-ship U.S. Navy. That could be a difficult promise for President Trump under the current fiscal restraints and laws. As we detail in this issue in “Looking for the Magic 350,” the non-partisan Congressional Budget Office (CBO) points out in its analysis of the U.S. Navy’s 2017 shipbuilding plan, just keeping the Navy’s current 308-ship goal might be difficult under the Budget Control Act, which keeps a cap of both defense and nondefense discretionary spending until 2021.

Needless to say, we’ll provide full coverage of the changing Navy shipbuilding and repair picture as it unfolds after the new Administration takes office.

The new Administration is also expected to create a more favorable climate for fossil fuel energy, but for right now oil is still below $60 per barrel. While fortunes of many in the shipping and oil and gas sector have dipped with oil, it has not been so for shuttle tanker operator KNOT Offshore Partners LLC. Listed as KNOP on the NYSE, KNOT Offshore Partners operates a fleet of relatively

young shuttle tankers under long-term charters in the North Sea and Brazil. This month, we had the privilege to chat with John Costain, CEO & CFO of KNOT Offshore Partners UK LLC about the company’s business model and their secret to thriving in the current business climate. Our CEO Spotlight interview with Mr. Costain starts on page 24.

And, finally, vessel operators on the fence about what to do to comply with U.S. regulations regarding ballast water treatment will finally have a choice of U.S. Coast Guard Type Approved ballast water treatment systems. The first three systems—manufactured by Optimarin A/S, Alfa Laval and OceanSaver, respectively—got the nod from the U.S. Coast Guard last month.

The process of compliance for vessel operators and the process of development and type approval for BWTS manufacturers was not for those of weak constitution nor shortage of cash. You can read more about it in Shirley Del Valle’s article, “Finding the Right Fit.”

WEB EDITOR Nicholas Blenkey nblenkey@sbpub.com CREATIVE DIRECTOR Wendy Williams wwilliams@sbpub.com Art Director Nicole Cassano ncassano@sbpub.com Graphic Designer Aleza Leinwand aleinwand@sbpub.com MARKETING DIRECTOR Erica Hayes ehayes@sbpub.com PRODUCTION DIRECTOR Mary Conyers mconyers@sbpub.com INTERNATIONAL SALES DIRECTOR David Cocoracchio davidc@carluca.com REGIONAL SALES MANAGER Heather Bonato hbonato@sbpub.com SALES REPRESENTATIVE KOREA & CHINA Young-Seoh Chinn corres1@jesmedia.com

CONFERENCE DIRECTOR Michelle M. Zolkos mzolkos@sbpub.com

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

PRICING: Qualified individuals in the marine industry may request a free subscription. For non-qualified subscriptions: Print version, Digital version, Both Print & Digital versions: 1 year, US $98.00; foreign $213.00; foreign, air mail $313.00. 2 years, US $156.00; foreign $270.00; foreign, air mail $470.00. Single Copies are $29.00 each. Subscriptions must be paid in U.S. dollars only.

COPYRIGHT © Simmons-Boardman Publishing Corporation 2017. All rights reserved. Contents may not be reproduced without permission. For reprint information contact: PARS International Corp., 102 W 38th St., 6th Floor, New York, N.Y. 10018 Phone (212) 221-9595 Fax (212) 221-9195.

For Subscriptions, & address changes, Please call (800) 895-4389, (402) 346-4740, Fax (402) 346-3670, e-mail marinelog@omeda.com or write to: Marine Log Magazine, Simmons-Boardman Publ. Corp, PO Box 3135, Northbrook, IL 60062-3135.

2 Marine Log // January 2017

CONTRIBUTING EDITOR Paul Bartlett paul.bartlett@live.co.uk

CLASSIFIED SALES Jeanine Acquart jacquart@sbpub.com

Marine Log Magazine (Print ISSN 0897-0491, Digital ISSN 2166-210X), (USPS#576-910), (Canada Post Cust. #7204564; Agreement #40612608; IMEX Po Box 25542, London, ON N6C 6B2, Canada) is published monthly by Simmons-Boardman Publ. Corp, 55 Broad St. 26th Floor, New York, NY 10004. Printed in the U.S.A. Periodicals postage paid at New York, NY and Additional mailing offices.

POSTMASTER: Send address changes to Marine Log Magazine, PO Box 3135, Northbrook, IL 60062-3135.

MANAGING EDITOR Shirley Del Valle sdelvalle@sbpub.com

CONFERENCE ASSISTANT Stephanie Rodriguez srodriguez@sbpub.com Simmons-Boardman Publishing CORP. 55 Broad Street, 26th Floor, New York, N.Y. 10004 Tel: (212) 620-7200 Fax: (212) 633-1165 Website: www.marinelog.com E-mail: marinelog@sbpub.com

INDUSTRY INSIGHTS WELCOME TO Industry Insights, Marine Log’s quick graphical overview of the current trends in the global marine marketplace. One trend we highlight this month is the impact of the widened Panama Canal on the composition of the world container fleet. VesselsValue Senior Analyst William Bennett points to the precipitous drop in value of 2009-built Panamax containerships, which has fallen by two-thirds over the last two years prior to the first transit of the new locks. To hammer home the point, Rickmers Marine Trust recently scrapped “the youngest ever” containership—a seven-year-old, 4,250-TEU Panamax vessel built in China.

The Containership Fleet, By Type There are 5,346 vessels in the fleet of 23.83 million TEU FEEDERMAX

Offshore Rigs Operating in US (on or about December 1 of respective year)

23%

ULCV

6%

NEW PANAMAX

4%

42

2011

50

2012

59

2013

58

2014 POST PANAMAX

22%

PANAMAX

16%

SUB PANAMAX

13%

HANDY

16%

Source: VesselsValue

25

2015 22

2016

0

10

20

30

40

50

60

Source: Baker Hughes

Profile of the U.S. Navy Fleet, as of Jan. 1, 2017 NUMBER

ACTIVE DUTY

GREEN ENERGY

274

323,792

12 %

Deployable Battle Force Ships

Officers, Enlisted & Midshipmen

Of Total Energy Produced from Renewables

Source: U.S. Navy

Recent Shipyard Launches, Contracts & Deliveries, North America Qty

Type

Owner

Est. $

Est. Del.

Austal USA, Mobile, AL

1

LCS-10 Gabrielle Giffords

U.S. Navy

342.0

2016-4Q

Bollinger Shipyards, Lockport, LA

1

FRC, 154 ft

U.S. Coast Guard

43.0

2016-4Q

Eastern Shipbuilding, Panama City, FL

1

Towboat, 134 ft x 42 ft

Impala Terminals

2017

Derecktor Shipyards, Mamaroneck, NY

1

Hybrid cargo vessel, 19m

Harbor Harvest

2018

Master Marine, Bayou La Batre, AL

1

Towboat, 78 ft x 38 ft

Marquette Transportation

2016-4Q

Vigor, Seattle, WA

1

Catamaran research vessel, 60 ft

California Dept. of Water Resources

2016-4Q

Shipyard

Source: Marine Log Shipbuilding Contracts

4 Marine Log // January 2017

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G L O B A L

L E A D E R

I N

P L U M B I N G ,

H E A T I N G

A N D

P I P E

J O I N I N G

S Y S T E M S

Marine Innovations Alps Wire Rope Debuts New Swaging and Testing Machine Alps Wire Rope Corporation has introduced Petersen’s P400, a mobile solution for swaging and testing for wire-rope terminations and crane cable repairs on-site. The machine enables the correct pressing of swage sockets onto wire-rope. After fitting the socket, the wire-rope can be gripped and proof-load applied—all on the same machine. Its design means proof load tests can be carried out on lifting assemblies without the need for external equipment and because it is designed to be compact and low weight, assembly can be done on-site. Alpswirerope.com

Future Care, Inc. Launches New Website to Showcase Caring for the Crew Program Provider of global maritime medical management and cost containment services, Future Care, Inc. has launched a new website that more clearly showcases Future Care’s Caring for the Crew program. The program is Future Care’s premier suite of services for shipowners, their crewmembers and P&I Clubs. Available around the globe, at any time, at sea or in port, Future Care’s Caring for the Crew Program provides an immediate and hands-on response to the seafarer’s medical needs, and complete medical and financial services. www.futurecareinc.com

Seakeeper Inc. Launches New HD Line for Commercial and Military Vessels Seakeeper Inc. has launched the Seakeeper HD line, developed specifically for commercial and military vessels. The Seakeeper HD models create a land-like experience on the water, reducing crew fatigue and risk of injury on vessels: including workboats, crew transfer vessels, pilot boats, patrol boats, survey boats and interceptors. Seakeeper gyros are completely internal, reducing the risk of snags and avoiding increased drag. The new line consists of the Seakeeper 7HD, Seakeeper 12HD, Seakeeper 20HD and Seakeeper 30HD. Seakeeper.com

STI Marine Helps Shipyards Save on Costs and Time STI Marine, a division of Specified Technologies Inc. (STI), offers a variety of Classification Agency-approved lines of marine products focused on providing shipyards and installers with savings on installation time and expense. All products and systems comply with IMO FTP and have associated Type Approvals from ABS, BV, DNV GL, Lloyd’s Register, and the U.S. Coast Guard. Check out STI’s new website to see its lineup of products that enhance fire and safety on vessels through fire-stopping infiltrations at bulkheads and decks. www.stimarine.com

Viega Viega ProPress Offers Alternative Piping Solutions Shipbuilders looking for alternatives to traditional welded or brazed piping systems should consider “cold work” piping solutions such as Viega ProPress. Available in copper, stainless and copper nickel, Viega ProPress systems are designed for harsh marine environments. Viega ProPress systems are best suited for fresh water systems, while copper-nickel Viega SeaPress is specially designed for seawater applications. The Viega family of solutions includes Viega ProPress, Viega MegaPress, and Viega SeaPress. www.viega.us 6 Marine Log // January 2017

SO MANY SHIPS SO LITTLE TIME

DEMAND HYDE MARINE Trust the proven experience of Hyde Marine and the Hyde GUARDIAN Gold® – the industry’s most widely used ballast water treatment solution. +1.724.218.7001 I www.hydemarine.com

WELLNESS COLUMN

Minding Trauma cause or compound feelings of isolation, guilt, etc. It also leaves time for rumination.

The Bandage

8 Marine Log // January 2017

of the loss, and an MRI scan identified their brain’s reaction. The scan showed the areas of the brain activated upon the emotional upset were the same as those of physical trauma.

The pathway was compared via MRI to someone who was being poked with a hot probe in the arm. Eventually when rumination, guilt, isolation, etc. take over, the pain pathway keeps firing off, causing prolonged physical pain from mental trauma.

When physical and/or mental trauma strike, triaging is critical for long-term health

Today, professional help is widely available to work through deteriorating mental states before they become life-long patterns (sometimes to the point in which we stop recognizing it as painful at all).

Mariners have compounded problems that need to be considered. Fighting isolation dayin and day-out, sometimes worse when they go to sea, but when they come home as well.

Although there are no statistics on our population, cardiovascular disease, known rates of divorce, etc, our shift from a “land network” i.e wives, children, to our “at sea” group (sometimes an entirely new network each time) can

Emily Reiblein

Crowley Maritime Corporation, Labor Relations-Union Wellness Programs/ Operations Integrity

Shutterstock/Kamira

L

iving well is not just about what we put in our bodies, it is also about how we treat our minds. Trauma and resulting pain is one example of how we experience this relationship, and how poorly we consider and attend to it.

While we are great at mending bone, tissue and skin, we usually end-up doing nothing to help our related mental state. This type of trauma may not come from a physical assault, it’s scarless. It is a divorce, break-up, lay-off, or job failure. The mental pain can lead to dark days of the soul. It can lurk for decades, causing an unseen calamity of effects that shorten a lifespan. Mariners, because of the nature of what they do, may be particularly susceptible to some of these lurking patterns.

Research published in March 2015 from Perspectives on Psychological Science analyzed data from 70 studies, involving over 3 million people (averaged 66 years old). During the average seven-year study, about 25% of the participants died. Those reporting loneliness were 26% more likely to have died than those who did not, and the mortality risk was 20% higher for those who were socially isolated. The long and short of it is, loneliness poses the same long-term health risk as smoking.

According to a Psychology Today article by Guy Winch, PhD, loneliness, and the isolating feelings that come from it lead to higher blood pressure, a suppressed immune system, and higher rates of cardiovascular disease.

Columbia University identified how trauma associated with loss physically operated within the brain and extended beyond our head. Individuals were asked to view a picture of a lost partner within six months

Mariners, be not lost. Studies show that even a small amount of mental first aid can help triage the brain until it heals up.

1. Meditation: Place focus on your breath and breathe in and out for a few minutes. When the mind begins to dwell/ wonder/ruminate, gently refocus it on the breath going in and out.

2. The List: Guy Winch identifies that when you have a failure, spending 10-15 minutes writing down the things that you are good at can help break-up the damaging mental patterns. This practice can reestablish the things you bring to the table in a relationship at home, or after a failure at work. Science tells us this helps the brain move through the failure and onto something more beneficial. This method is not dissimilar to the Lincoln “Hot Letters.” Letters written by Abraham Lincoln in which he poured out his pain, anger, disappointment, and despair, to the individual causing it.

These letters went unsent. This articulation of words on a page to relieve mental strain is tried and true.

3. Bigger Problems for Support Service: While not always possible to access at sea, many companies have an Employee Assistance Program (EAP). Program dependent services include area specific mental health services. Where unavailable, Good Samaritan hotlines can be called in most domestic port cities. Outside the U.S., find the Chaplin from the local Seafarer’s Mission. My experience is that they can usually help get you assistance, and provide a very caring ear.

When physical and/or mental trauma strike, triaging is critical for long-term health. For more information on triaging and bandaging the mind, see Guy Winch’s book Emotional First Aid. NOTE: Nothing in this column constitutes medical advice. It is for educational purposes only and all medical advice should be sought from a medical provider.

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Update

BIZ NOTES The Sentinel was built by Vigor’s specialized aluminum fabrication facility in Seattle

BAE SYSTEMS sells San Francisco yard

Vigor Delivers 60 ft Research Catamaran The California Department of Water Resources (DWR) has com-

missioned the Sentinel, a 60 ft catamaran research vessel built by Vigor’s specialized aluminum fabrication facility in Seattle, WA. The floating laboratory will be the flagship of DWR’s Environmental Monitoring Program (EMP).

The state-of-the-art Sentinel will be used to monitor the water quality, as well as phytoplankton, zooplankton and benthic macro-invertebrates within the San Francisco bay area and coastline. “We are experiencing a period of great change — climate change, political change and changes

in water management,” said DWR Director Mark W. Cowin. “I think we can agree that the Sentinel is a welcome change.”

The vessel replaces the San Carlos which has been monitoring water quality in the Sacramento-San Joaquin Delta and upper San Francisco Estuary since 1976.

Designed by Incat Crowther, the USCG Subcapter T vessel has capacity for 20 passengers and five crew members. The vessel’s power is provided by a pair of Cummins QSB6.7 engines — each generating 260 kW at 2,800 rev/min. The vessel has a service speed of 18 knots and can reach of maximum speed of 21 knots.

BAE Systems has completed the sale of it s San Francisco Ship Repair business. The buyer, Puglia Engineering, Inc., is a Tacoma, WA-based ship repair company that currently operates two shipyards in Washington state.

Under the sale, Puglia will take over a 54,600 ton lift floating dry dock, a 14,500 ton lif t floating dry dock, pier space containing three berths up to 700 ft, and a crane with a capacity to lift up to 60 tons.

R e g a r d i n g t h e s a l e, Er w i n Bieber, President of BAE Systems, Inc.’s Platforms & Services sector said, “We believe this divestiture is in the best interests of the San Francisco shipyard employees and both companies, as it will better position the San Francisco Ship Repair business with a parent company that has access to broader markets.” He added, “We greatly appreciate the hard work and dedication of our San Francisco shipyard team.”

BAE Systems still has six shipyards throughout the U.S. — Nor folk, VA ; San Diego, C A ; Pearl Har bor, HI ; Mobile, AL; Jacksonville, FL; and Mayport, FL. The facilities offer repair, modernization, maintenance, fabrication, conversion and life extension services.

Shone Laser at Ferry, Gets Jail Term and $9,500 Penalty Mark Raden of Freeland, WA, must pay a $9,500 civil penalty for interfering with the safe operation of the Tokitae, a Washington State Ferry (WSF).

Raden is guilty of shining a high-powered blue laser at the vessel on October 22, 2015.

A Coast Guard Hearing Officer assessed the penalty, December 27, 2016.

Raden was aboard the WSF Kitsap transiting between Mukilteo and Clinton when he pointed the laser at the Tokitae, striking the vessel’s master and chief mate in the eyes and endangering the 106 passengers on board.

Raden, who has a history of laser incidents, 10 Marine Log // January 2017

also pleaded guilty to reckless endangerment in Island County Superior Court for his conduct and was ordered to serve 15 days in jail, perform 240 hours of community service, and pay $3,740.89 in restitution to the master and chief mate. He will also serve 24 months of probation.

“Interfering with the safe operation of a vessel, particularly a large passenger vessel, endangers all of those on board and can also result in significant environmental impacts, said Cmdr. Darwin Jensen, Coast Guard Sector Puget Sound Chief of Prevention.

“This one person’s irresponsible actions

could have had a much more tragic outcome for the passengers of the Tokitae as the vessel was preparing to arrive in Clinton. The Coast Guard will pursue appropriate criminal or civil enforcement actions against anyone who interferes with the safe operation of vessels.”

Update

VT Halter Lands VDOT Ferry Contract, Names New President & CEO

T h e V i r g i n i a D e pa r t m e n t o f Transportation (VDOT) has awarded

VT Halter Marine with a contract to design and construct a 499-passenger/70-vehicle ferry. The ferry will be operated by Jamestown-Scotland Ferry Operations Service and will replace the current ferry, The Virginian.

The Jamestown-Scotland Ferry Operations Services, which provides a critical transportation link between Virginia and North Carolina, currently operates four ferry boats, including the Pocahontas—built

by VT Halter Marine in 1995.

VT Halter Marine’s shipyards have designed and constructed more car and passenger ferries for the states of Virginia, New York, Texas, Louisiana, North Carolina, Alaska, California, Washington, and the territory of Puerto Rico, than almost any other U.S. shipyard.

“VT Halter Marine is honored to be selected by the Virginia Department of Transportation to design, construct and deliver” the new ferry, says Paul Albert, the newly named President and Chief Executive Officer, VT Halter Marine. “We value the trust that the VDOT has invested in our shipbuilding capabilities, and this new contract is an indication of our continuing strong relationship.”

Albert, who joined VT Halter Marine as the Senior Vice President of Production in 2002, was named Chief Operating Officer in 2009. He had served as the Interim President and CEO since July 2016.

Al b er t s u cce e d s Ja ck Pren der g a s t , the previous President and CEO of VT Halter Marine.

“Paul’s proven leadership and operational skills in managing complex shipbuilding projects makes him the right choice to lead VT Halter Marine,” says Adm. Bill Landry, Chairman of the Board at VT Halter Marine.

“We are excited to appoint Albert to this role and look forward to what his leadership will bring to the company,” says General (Ret.) John Coburn, Chairman and CEO of VT Systems.

Albert says, “VTHM would not be the successful company it is today without the integrity and dedication of our employees.

It is indeed an honor and privilege to serve them in my new role.”

National Transportation Safety Board Releases El Faro Audio Transcript The Tragic transcript from the El

Faro’s voyage data recorder bridge audio has been released by the National Transportation Safety Board (NTSB). The TOTE ship sank during Hurricane Joaquin in October 1, 2015. All 33 crew members on board died.

The transcript was one of five factual reports entered into the docket for the NTSB’s ongoing investigation. Members of the VDR audio transcript group included the NTSB, the U.S. Coast Guard and TOTE Services.

The bridge audio recording began about 5:37 a.m., Sept. 30, 2015, roughly eight hours after the El Faro departed Jacksonville, FL. The first recorded conversation about the

forecasted weather was captured the morning of Sept. 30, between the captain and chief mate, who agreed on a course diversion.

At about 4:37 a.m. on Oct. 1 the chief mate received a phone call from the chief engineer regarding the vessel’s list and engine oil levels. At about 5:43 a.m. the captain indicates there is a problem in the number three hold of the ship. At 6:13 am the captain indicates that the ship has lost propulsion. The second mate began formatting a GMDSS distress message at about 6:32 a.m. At 7:07 a.m. the captain notified TOTE Service’s designated shoreside representative of the critical situation and

that he was preparing to send an electronic distress signal. The captain instructed the second mate to send the distress message at about 7:13 a.m. The captain gave the command to sound the ship’s general alarm at about 7:27 a.m. and about two minutes later the second mate exclaimed there were containers in the water and the captain gave the command to sound the abandon ship alarm. About four minutes later the captain relayed over the UHF radio to put the life rafts in the water. The bridge audio recording ended at about 7:40 a.m. Oct. 1, 2015, with the captain and one of the helmsmen still present on the bridge.

January 2017 // Marine Log 11

Update

Derecktor Shipyards Reels in “Tasty” Hybrid Vessel Order Derecktor Shipyards will build its third hybrid vessel: a catamaran organic food transportation platform.

It has teamed with Harbor Harvest, East Norwalk, CT, a food market that is seeking “to provide convenient access to healthy, nutritious food sourced from local and regional farms and artisans at a price that supports the local community.”

Derecktor Shipyards delivered its first hybrid vessel, the Spirit of the Sound, to the Maritime Aquarium in Norwalk and is now building a hybrid research vessel for The City University of New York (CUNY).

The new eco-friendly cat will help integrate a retail space and the organic farm market in the Connecticut/Long Island Gold Coast and Long Island Sound area.

As with the previous hybrid vessels built

by Derecktor, the Harbor Harvest boat will use a BAE HybriDrive electric propulsion system. The new boat will have Cummins QSB6.7 engines.

The vessel is based on a 19 m aluminum catamaran platform designed for efficient operation in coastal waters. Reconfigured to carry 9,000 pounds of protected refrigerated cargo and 3,000 pounds of deck cargo, the

vessel can travel about three voyage hours without recharging emission free using its lithium battery component.

The trade routes have already been tested to confirm the fuel efficiency and battery life, and the vessel will be able to be charged at shore side facilities along its route. Trade routes have been determined based on farm locations and will support a wide range of coastal area.

Derecktor says the forward-thinking, farm-to-market project will work to move freight back onto the water, mitigating road traffic.

MARITIME Trivia­– Question #45: What was the reply given by John Paul Jones in the Bonhomme Richard when he was asked by the British captain if he had surrendered?

The first sailor or lubber that correctly answers the Maritime Trivia question will receive a color J. Clary collector print.

Email your guess to marineart@jclary.com.

December’s trivia question: What was discovered in the stomach of the sperm whale taken by the whaler The Star of the East in 1891? The body of young seaman James Bartley (he was still alive) of The Star of the East. After three weeks of care from his crew mates, Bartley was strong enough to return to duty. An account of this incident was published in the 1914, Journal des De bats.

P51500MLOG

7 TECHNICAL TRACK

INDUSTRY TRACK

Bob Kunkel, Harbor Harvest

2ND SINGAPORE MARITIME TECHNOLOGY CONFERENCE (SMTC) 2017

12 Marine Log // January 2017

Update

NY Offshore Wind Lease Sale Goes to Statoil S tatoil Wind US LLC was the pro-

v isional w inner of the December 16 competitive lease sale for renewable energy in federal waters off the coast of New York.

The company’s winning bid of $42,469,725 will see it lease area OCS-A 0512—an area of 79,350 acres.

Statoil says the lease comprises an area that could potentially accommodate more than 1 GW of offshore wind, with a phased development expected to start with 400600 MW. The New York Wind Energy Area is located 14-30 miles offshore and covers water depths between 65 and 131 ft.

The State of New York expects that offshore wind will be a significant part of the renewable energy generation needed to meet its Clean Energy Standard in 2030.

“The U.S. is a key emerging market for offshore wind—both bottom-fixed and floating—with significant potential along both the east and west coasts,” says Irene Rummelhoff, Statoil’s Executive Vice President for New Energy Solutions. “Statoil is well positioned to take part in what could be a significant build out of offshore wind in New York and other states

over the next decade. This effort is in line with the company’s strategy to gradually complement our oil and gas portfolio with viable renewable energy and other lowcarbon solutions.”

Statoil is no stranger to the offshore wind market. Over in Europe the company is providing over one million homes with renewable energy; and currently holds a 40% share in the Sheringham Shoal wind farm in the UK. Earlier this year, Statoil acquired 50% of the Arkona offshore wind farm in Germany, which will begin production in 2019.

BIZ NOTES Fincantieri ONLY bid for STX Offshore The South Korean bankruptcy court dealing with the restructuring of STX Offshore and Shipbuilding has named Italian-based Fincantieri the preferred bidder for the STX France Shipyard in Saint-Nazaire.

Granted, it was said to be the only bidder, according to reports.

STX Offshore and Shipbuilding holds 66% of the shares in STX France. The company filed for bankruptcy protection last year.

Fincantieri must now conduct a field study and agree on a purchase price with the South Korean group before signing an agreement to acquire the 66%. The remaining stake is to be held by the French Government. Indications point to French military contractor DCNS taking a minority stake in the yard, should Fincantieri take control.

www.hattonmarine.com

January 2017 // Marine Log 13

Update

Metal Shark Delivers Patrol Boats for Latin America, Caribbean

Metal Shark continues to make new

inroads in the Latin American and Caribbean markets.

In a recent ceremony in San Juan, PR, the Puerto Rico Police Department (PRPD) commissioned its first three Metal Shark 36-foot Fearless-class center console patrol boats. The welded-aluminum center console

vessels have been designed to operate at speed in the large ocean swells prevalent off the Puerto Rican coastline.

Featuring high performance ventilated stepped-bottom running surfaces and powered by triple 300-horsepower Mercury Verado engines, the PRPD’s new patrol boats achieve speeds up to 55 knots.

P51502MLOG

14 Marine Log // January 2017

U.S. Navy/MonicaMcCoy

The PRPD’s new 36 ft Fearless-class patrol boats can achieve speeds up to 55 knots

Additional vessels for the PRPD are currently in production at Metal Shark’s Jeanerette, LA, facility.

New Metal Shark customer, the Colombian National Police, recently took delivery of a 33-foot Relentless-class patrol boat.

Special features include a urethane-sheathed closed-cell foam Wing collar, Shockwave S2-Corbin high-backed shock-mitigating seating for five, and additional fold-away crew seating in the bow.

The highly maneuverable patrol craft is powered by twin 300-horsepower Evinrude E-TEC G2 engines, which propel it to speeds in excess of 50 knots.

In addition, Metal Shark has been awarded a contract to produce twelve 38-foot Defiant-class pilothouse patrol boats for the Dutch Caribbean Coast Guard. The production of these vessels will begin in early 2017.

“We’ve worked hand-in-hand with these customers to gain an understanding of their specific needs and deliver custom-tailored boats that easily integrate into each agency’s existing service infrastructure,” says Henry Irizarry, Metal Shark’s Vice President of International Business Development.

Update

Noonan Named CMA Commodore for 2017

Chembulk Tankers CEO John D. “Jack” Noonan has been named the Connecticut Maritime Association (CMA) Commodore for 2017. The award is bestowed upon a person in the international maritime community that has contributed to the growth and development of the industry.

A graduate of the U.S. Merchant Marine

POWER

Ac a demy ( U S M M A ) a t Ki n g s Poi n t , Noonan joined Chembulk Tankers in April 2007, originally serving as COO. He was promoted to President after the acquisition of Chembulk by Berlian Laju Tanker (BLT) in December 2007 and subsequently to CEO of the BLT Chembulk Group in November 2010. He was actively involved in the restructuring of Chembulk Tanker parent BLT, spearheading the business-related initiatives of the process from January 2012 until its conclusion in November 2015.

After graduating from USMMA he sailed for six years as a Deck Officer with the U.S. –Flag tanker fleet of Texaco, ultimately advancing his USCG license to Chief Mate.

He has 30 plus years in the chemical tanker business, and serves as a member of ABS and on the North American Committees of DNV GL and ClassNK. With the exception of his years at sea, his entire maritime career has been spent in Connecticut—where he has been a member of CMA. The 2017 Commodore Award will be presented on March 22, 2017 at the Gala Dinner marking the conclusion of the annual CMA conference and trade exposition.

BIZ NOTES USCG issues RFQ for polar icebreaker studies The U.S. Coast Guard has issued a request for quotations (RFQ) for industry studies in support of the USCG Polar Icebreaker. According to the Coast Guard, the industry studies and analysis will be performed to identify solutions for the Heavy Polar Icebreaker that will minimize cost, schedule, production and technology risk.

T he over all o bjec tive is to enable the government to analyze input from industry and further refine the Heavy Icebreaker System Specification.

The deadline to submit responses to the industry studies RFQ is January 20, 2017. The Coast Guard expects to put out a request for proposal for detail design and construction of heavy polar icebreakers in 2018.

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January 2017 // Marine Log 15

inside washington

How to Ring in the New Year? Corporate Tax Relief

W

ill the New Year bring tax relief for Americans? That’s a question that could well be answered when the new 115th U.S. Congress goes to work on Jan. 3. While he was on the campaign trail, President-elect Trump promised to work towards tax relief for middle class Americans, simplification of the tax code, and corporate tax relief.

Tax relief should draw support from both sides of the aisle, as it is something both parties have kicked around.

President-elect Trump

has proposed lowering the corporate tax rate on future earnings to 15 percent to make the U.S. more competitive globally and draw investment back into the country.

American-owned companies may have as much as $2.6 trillion in foreign profits overseas, according to the Congressional Joint Committee on Taxation. The companies have parked their profits overseas to avoid the hefty 35 percent tax on corporate profits. In order to provide an incentive to repatriate the corporate earnings, President-elect Trump has proposed a one-time tax holiday of 10 percent. Additionally, he has called for the end of the deferral of taxes on corporate income earned abroad. The 10 percent tax on repatriated corporate profits would generate an enormous amount of tax revenue. That tax revenue in part could go a long way towards paying for badly needed

infrastructure improvements, transportation, telecommunications and energy. Something that Presidentelect Trump discussed as part of his $1 trillion plan to pursue an “America Infrastructure First” policy. The investment in infrastructure would create jobs and require construction materials to be transported by barge along the nation’s waterways.

On Dec. 16, President Obama signed the Water Infrastructure Improvements for the Nation (WIIN) Act into law. WIIN supports the deepening of channels for ports and U.S. Army Corps of Engineers projects; and authorizes the restoration of watersheds, and the improvement of waterways, flood control, and drinking water infrastructure. The law also authorizes $170 million for communities facing drinking water emergencies, including funding for Flint, MI, to recover from the lead contamination in its drinking water.

Date: February 14-16, 2017 Location: Hyatt Regency Crystal City

Register Now

Exhibit & Sponsorship opportunities available contact exhibits@navalengineers.org for more information 16 Marine Log // January 2017

Shutterstock/Dooder

www.navalengineers.org

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PROPULSION & POWER MTU exhibit at the Workboat Show showed the phases of development of the Series 4000 engine to meet ever stricter emissions regulations

MAKING

CLEAR CHOICES Compiled By Marine Log Staff

F

Diesel engine manufacturers unveil their solutions to comply with IMO III and EPA Tier 4

or years, diesel engine manufacturers have been engineering solutions for vessel operators that produce ever fewer NOx emissions and operate at ever higher efficiencies. To meet the new stricter IMO and EPA emission standards, engine manufacturers have had to resort to after-treatment solutions such as Selective Catalytic Reduction (SCR) or Exhaust Gas Recirculation (EGR), as well as burning alternative marine fuels such as Liquefied Natural Gas (LNG).

This past December at the International Workboat Show in New Orleans, LA, diesel engine manufacturers displayed some of the latest fruits of their labor to meet IMO Tier III and U.S. EPA Tier 4 requirements. Some 18 Marine Log // January 2017

of the diesel engines on display were fitted with specially designed SCR after-treatment systems, while others took an in-engine approach by building in an EGR solution into the diesel footprint.

At its stand, Progress Rail, a Caterpillar company, Albertville, AL, displayed its newly EPA-certified EMD 710 Series Model E 23B Tier 4 marine engine with an SCR solution.

Well proven in power plants, locomotives, freight trucks and buses, SCR has become more popular as a means of removing NOx from engine exhaust emissions in marine applications. According to Caterpillar, more than 1,250 SCR systems have been installed in marine vessels over the last decade.

With SCR, an aqueous urea solution is injected into the exhaust air stream containing NOx, where it evaporates into ammonia (NH3) due to a physical reaction triggered by the energy contained in the hot exhaust gas.

Once the exhaust gas and ammonia mixture contacts the SCR catalyst surface, a reduction reaction occurs, breaking down the NOx (NO and NO2) and NH3 into nitrogen gas (N2) and water vapor (H2O).

One of the concerns of vessel operators is the increased space and weight demands required for after-treatment systems. Brian Grinter, Power Products Director, points out that the EMD 710 Series 12-cylinder marine engine has the same footprint as the previous product.

PROPULSION & POWER “Our teams have been working on lowering engine emissions for years, long before government standards were set,” says Chief Engineer Marti Lenz. “As a result, we have taken an integrated approach to creating products that ensure fewer emissions, while also improving fuel economy and engine performance.”

At the Scania stand, the company’s Torben Dabrowski, Global Product Manager Marine, Sales and Marketing, and Alberto Alcala, Sales Manager, Marine Products, discussed how the company’s “think modular” engine design saves costs across the board.

Scania engines are based on a robust design with a strength optimized cylinder block containing wet cylinder liners that can easily be exchanged. The engines use the company’s Engine Management System (EMS) to optimize engine performance. The injection system is based on electronically controlled unit injectors that provide low exhaust emissions with good fuel economy and high torque at low revs/min. One long-time innovation in Scania engines is the saver ring at the top of the cylinder liner, which prevents carbon buildup on the cylinder.

To meet EPA Tier 3, Scania offers diesel engines ranging from the DI13 080 in the power range of 250-400 hp at 1,800 rev/ min (for continuous service) up to the DI16 083M in a power range of 850-900 hp (for patrol craft short) at 2,300 rev/min. The engine line is well suited for ferries, fishing vessels, tugs, pilot boats, rescue boats, and patrol boats.

This past September, Scania launched its own in-house-developed marine SCR system to meet IMO III. The unit is incredibly compact—only 250 lbs—and well proven, having its roots in trucking and industrial use. The new IMO Tier III marine engine range includes 13- and 16-liter engines

designed for both propulsion and auxiliary applications. Right now, these include the DI13 092M, with a power range of 350 to 550 hp at 1,800 rev/min. The company is working with boat builders, operators, and distributors on expanding its offerings.

The IMO Tier III engine range cuts NOx emissions by more than 70% and when running entirely on HVO fuel, CO2 emissions by up to 90%.

At its stand, Rolls-Royce Power Systems displayed its MTU brand engines that meet IMO III and EPA Tier 4. One of those—the new MTU Series 4000 M05 diesel—is the next step in the evolution of MTU’s Ironmen engines. It will be supplied starting 2018 as main propulsion power for tugs, ferries and OSVs, and also as gensets for auxiliary power for ships. As the result of improvements to the engines’ turbocharging, combustion process and injection systems in combination with the new MTU SCR unit, NOx emissions are cut by 75% as compared to IMO II, and particulate matter by 65% as compared to EPA 3.

Rolls-Royce says a separate diesel particulate filter is not required.

If you’re interested in burning natural gas, Rolls-Royce’s new MTU 16-cylinder gas engine is based on its proven MTU 16V 4000 M63 workboat diesel and will be marketed with a power range of 1,500 to 2,000 kW starting in 2018. Rolls-Royce says the new gas engine is especially well-suited for tugboats, ferries, push boats and special purpose vessels such as research craft. MTU gas engines come with multi-point gas injection, variable combustion pressure control and improved turbocharging. The combustion design concept ensures efficient use of fuel and enables IMO III emission standards to be met without additional exhaust aftertreatment. A compact, built-on oxidizing

The new 3500E, the newest member of Caterpillar’s 3500 Series, which was launched 35 years ago

You’ve Got The Power How would you like up to 200 kW of electric power on demand to meet your onboard auxiliary power needs without the use of your diesel-burning auxiliary gensets? If that seems too good to be true, well it isn’t.

That’s the idea behind BAE Systems HybriGen Zero, which is a generator that captures and stores power from the vessel’s shaft by taking minimal power off the main engine when it is running at its most efficient.

The HybriGen Zero eliminates the need for an auxiliary genset and can provide up to 120 kW of power at engine idle (350 rev/min) and up to 230 kW at full engine speed (900 rev/min). If you are able to eliminate the need for a diesel-burning generator that translates into significant capex and opex savings.

Karl Senner, LLC, Kenner, LA, the exclusive sales and service representative for Reintjes marine transmissions in North America, is working with BAE Systems to bring the solution to the inland waterway, towboat, pushboat, and fishing vessel markets.

For the system, Karl Senner, LLC supplies Reintjes Hybrid Step-Up Gearbox, RSGL 270, for front-end installation. Karl Senner, President, Karl Senner, LLC, says the system “utilizing the front end PTO drive really only makes sense for existing vessel retrofits. However, on new construction vessels, we can use the same system, but drive the generator off a PTO of the Reintjes main reduction gearbox. This is even more economical than the retrofit system.”

T he Reintjes Hy br id Step - Up Gearbox has an integrated multi-disc hydraulic clutch, flexible coupling on the input side and bell housing for direct generator mount. The main engine power can range from 7002,500 kW, while the PTO/PTI can range from 150 to 700 kW. These hybrid sys tems enable a much more efficient operation, because they allow for riding at a slow speed below the main engine idle speed. The electric drive is aimed at achieving smooth running, less noise and low energy consumption.

January 2017 // Marine Log 19

PROPULSION & POWER catalytic converter (oxi-cat) is used to achieve EPA Tier 4 standards. A smaller 8-cylinder version will be introduced later with a power range of 750 to 1,000 kW. To meet Tier 4, GE Marine took a different approach by building in its EGR system into the engine, thus avoiding external ureabased after-treatment. Additionally, GE Marine says its Tier 4 engine has excellent fuel consumption while up to 15 percent more power while maintaining virtually the same footprint.

GE Marine’s Tier 4 compliant 250 Series includes 12- and 16-cylinder V250 models and 6- and 8-cylinder L250 models that range from 1.3 MW to 4.7 MW. With a built-in EGR system, both the L250 and V250 Series meet EPA Tier 4 and IMO Tier III. Meanwhile, Wärtsilä, which has been leading the charge in dual fuel applications, introduced one of the most efficient fourstroke engines last year—the Wärtsilä 31. The Wärtsilä 31 was recognized by the Guinness World Records as being the world’s most efficient four-stroke diesel engine.

Compliant with IMO Tier III when using

an SCR, the Wärtsilä 31 is available in 8- to 16-cylinder configurations and has a power output ranging from 4.2 to 9.8 MW, at 720 and 750 rev/min. The Wärtsilä 31 retains its high efficiency and environmental values throughout the entire lifecycle of the vessel. Some of its advantages include: One of the lowest fuel consumption over a wide operating range; a significant reduction in maintenance requirements and cost; one of the highest cylinder power in its segment, 610 kW/cylinder; and fuel flexibility, with availability in Diesel, Dual Fuel (DF) and Pure Gas (SG) versions.

Back in 1981, Caterpillar introduced its 3500 Engine Series. Now, some 35 years later, 190,000 Cat 3500 Series engines are in operation in everything from hospitals to trucks to trains to tugs. That’s a pretty impressive record. Now, Cat has rolled out the 3500E Series, which has more power, better fuel economy, an improved emissions profile, and a better cost of total ownership.

Now the first production EPA Tier 4-certified Cat 3516Es are being installed in a pair of escort tugs being built for McAllister Towing & Transportation Co., Inc., at Horizon

Shipbuilding in Bayou La Batre, AL. Each tug will have two Cat Marine 3516E EPA Tier 4 engines rated at 3,386 bhp, supported by three Cat C7.1 EPA Tier 3 gensets rated at 118ekW and two CAT C18 EPA Tier 3,803 bhp fire pump engines (Fi-Fi).

To meet EPA’s more stringent Tier 4 Final emissions standards which came into effect this year, each 3516E engine is paired with an SCR after-treatment system.

Caterpillar’s SCR technology was designed to comply with EPA Tier 4 as well as satisfy IMO Tier III emissions level requirements while minimizing integration impact and maximizing operating efficiencies.

Deere Has Eye on Chinese Market In the smaller power range, John Deere Power Systems is looking to expand its presence in the Chinese market. It announced that 15 of its PowerTech generator drive and propulsion engines had received China Classification Society type approval certification. The lineup of generator-drive and propulsion engines offers customers a range of reliable and powerful choices for the Chinese market.

Clean Choice: Thoma-Sea Builds Pioneering Tidewater PSVs

20 Marine Log // January 2017

clients got us involved and we proposed the Enviromax design with TAI.” Once the projec t star ted rolling, Thomas sie realized how much Tidewater and Thoma-Sea thought alike.

“Tidewater was a great operator to work with. My family operated vessels and we brought that experience to the process.

It’s great when you click with a client.”

N e w O r l ea n s - b a s e d Te c h n o l o g y Associates, Inc. (TAI) licensed the successful EnviroMax design to Thoma-Sea. According to Siemens Marine Solutions’ Luke Briant, the propulsion system provides between 28 to 35% fuel savings compared to similar DEP vessels.

Briant says that as part of a sole-source vendor solution for design, engineering, commissioning and project management of the diesel-electric and automation system, Siemens provided the main generators, propulsion drives, main propulsion and thruster motors, LV switchboards, energy management system, fully integrated electrical FiFi 2 system and IAS 400 automation system for alarm, monitoring and control functions.

“With the vessel’s electric propulsion system,” says Briant, “individual speed control of each engine over the whole

engine speed region is possible, independent of synchronous speed. The control system sets the speed according to the optimal operational point of the engine, thus providing the lowest possible specific fuel consumption (g/kWh).”

During Dynamic Positioning ( DP), production and even spinning reserve can be realized with limited consumption, emission and maintenance cost. To lower the fuel consumption even more, the system makes load shifting between the port and starboard part of the system possible.

The main drives unit, which can reduce footprint, volume and weight by at least 30 percent, is a stand-alone integrated unit for all thrusters and auxiliary drives.

Photos by John R. Snyder

Diesel- elec tric propul sion is gaining increasing traction because of its benefits to lower maintenance costs, increase efficiency, reduce greenhouse emissions ( NOx and SOx) and meet stricter emission regulations.

In the U.S., Louisiana shipbuilder Thoma-Sea Marine Constructors LLC installed a Siemens Blue Drive PLUS C diesel-electric propulsion system on the Southern Tide and the States Tide, two 308 ft deepwater platform supply vessels built for Tidewater Marine LLC, a Tidewater, Inc. subsidiary.

While Siemens has delivered a dozen of its Blue Drive PLUS C systems globally, the Southern Tide and its sister vessel States Tide were the first in the U.S. “When you are building a complex vessel,” says Walter Thomassie, ThomaSea’s Managing Director (at right), “there are always challenges. “However, the information exchange with the (Siemens) technicians was outstanding. They did a great job of executing the project.”

Thomassie also points out that the newbuild project was its first with Tidewater. “It was a perfect storm.”

“Tidewater didn’t know us as a shipyard, but one of our

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2017 // Marine 21 © 2017 Caterpillar. All Rights Reserved. CAT, CATERPILLAR, BUILT FOR IT, theirJanuary respective logos, “Caterpillar Yellow,” the Log “Power Edge” trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

Propulsion & POWER

Gaining

Momentum

uoyed by the recent announcement of a new Gladding-Hearn pilot boat ordered with IPS drives for the Virginia Pilots Association, Volvo Penta reports that its innovative pod propulsion package is rapidly gaining traction in the North American commercial marine market.

The Volvo Penta IPS consists of a steerable underwater drive unit with two forward-facing counter-rotating propellers. The drive units pull the boat rather than pushing it through the water. The propellers work in undisturbed water, reducing cavitation and increasing efficiency. Exhaust is expelled 22 Marine Log // January 2017

beneath the boat, making for a quieter ride and eliminating diesel fumes on deck.

Since its introduction to the marine market more than 10 years ago, Volvo Penta has delivered more than 20,000 IPS drives globally, a large percentage of them to builders of pleasure yachts. While commercial marine IPS sales have been strong in Europe, until recently IPS has not caught on in the North American commercial marine sector. That’s changing, Marcia Kull, Vice President of marine sales for Volvo Penta of the Americas, told Marine Log. The first commercial IPS application in the U.S. was Thomas Paine, a 50-ft. aluminum

patrol boat built by Metal Craft Marine for the Massachusetts Environmental Police in 2014. It was followed a few months later

by Gladding Hearn’s first IPS powered vessel, Fort Ripley, an offshore emergency response craft in Charleston, S.C. Fort Ripley’s unusual triple-IPS configuration with joystick controls and dynamic positioning turned a lot of heads in the U.S. marine industry. The next year, Gladding Hearn delivered Manatee, a redesigned Chesapeake-class pilot boat with twin IPS drives to the Tampa Bay Pilots. The Manatee was also designed with Humphree interceptors for automatic trim optimization.

Photo provided by Volvo Penta

B

Volvo Penta IPS picks up speed in North America

Propulsion & POWER The new 55-ft vessel being built by Gladding Hearn for the Virginia Pilots is scheduled for delivery in mid-2017. It will run on twin D13 900 hp U.S. EPA Tier 3 engines with IPS3 drives.

T h e b en e f i t s of I P S we re o bv i o u s , according to Frank Rabena, a 17-year pilot and chairman of the Association’s pilot boat committee.

“Stability, reliability, support, speed and efficiency – these are the five criteria we used to select the engine for the new pilot boat,” says Rabena. “We found the Volvo Penta D13, combined with the IPS3, easily met those criteria and became the power solution.”

Kull explained that IPS provides a unique value proposition when it comes to planinghull high-speed vessels. “We have excellent data from installations comparing IPS to standard inboard drives,” she says.

“The metrics speak for themselves. IPS consistently produces 30-40 percent longer cruising range, 15-20 percent higher top speed, 20-35 percent reduction in fuel consumption, 20-35 percent less CO2 emissions and 50 percent lower perceived noise levels. In addition, IPS provides safe and predictable boat handling, especially with its standard joystick controls.”

“Importantly, the Volvo Penta IPS is a complete integrated package,” Kull adds.

“The engines, control system, pods and propellers are perfectly matched at the factory, and the complete system is supplied and supported by a single manufacturer. The boat operator has one point of contact for all service and warranty issues,” adds Kull.

“IPS provides what pilots have been asking for: higher speeds, lower fuel consumption and more comfort,” says Gladding Hearn’s President Peter Duclos.

He noted that IPS also enabled key design changes to the Chesapeake-class vessels.

With the pods close-coupled to the engines, the engine room could be moved well aft of the wheelhouse with easy access to the machinery space through a deck hatch. It also allowed the wheelhouse to be repositioned aft of amidships, improving comfort and providing a larger foredeck.

Jens Bering, Manager of Product Management for Volvo Penta of the Americas, cited other benefits of IPS in a presentation given at the 2016 International Work Boat Show.

Bering explained that IPS is easier to install—taking about 50 percent less time than inboard shafts, and also easier to service.

The pods also provide higher torque and faster acceleration, as well as higher bollard pull of about four tons per pod unit, so it will not lose grip in high seas.

Bering cites a study conducted by BMT Nigel Gee in June 2015, comparing propulsion options for a 26m vessel. IPS scored higher than fixed pitch, controllable pitch, waterjet and linear jet systems, in terms of bollard pull, efficiency, maneuverability and redundancy. The slightly higher initial cost of IPS is more than offset by the dramatic improvement in life-cycle costs. For instance, comparative fuel consumption analysis for two identical boat hulls with the

same operating profile powered by IPS and inboards reveals that the annual savings can add up to over $33,000.

Kull says that wind farm support vessels also represent an important growth market for the IPS technology. She pointed out that 22% percent of wind farm vessels worldwide are powered by Volvo Penta IPS, and she predicts that IPS will capture an important share in the emerging wind farm segment in the U.S.

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January 2017 // Marine Log 23

CEO Spotlight

Q & A With

John Costain CEO & CFO, KNOT Offshore Partners UK LLC

By John R. Snyder, Publisher & Editor-in-Chief

W

hile shipping and oil and gas companies have hit rough seas in the recent market downturn, KNOT Offshore Partners LP has been sailing steady as she goes, posting solid returns.

Listed on the NYSE as KNOP, KNOT Offshore Partners operates shuttle tankers under long-term charters in the offshore oil production regions of the North Sea and Brazil. Its fleet of 11 shuttle tankers is young—about an average of 4.8 years old— and the partnership had its highest quarterly revenues and operating income in the third quarter ending September 30, 2016. So what’s KNOT Offshore Partners’ business model and secret to success? Marine Log chatted with KNOP UK LLC’s John Costain to find out.

Marine Log: How did you get started in the maritime business?

John Costain: After completing a degree in Civil Engineering at Manchester University and a short period of employment in the construction industry, I moved back to the Isle of Man in 1987 to join Pannell Kerr Forster, the largest local employer of accountants at that time.

At Pannell Kerr Forster, I had my first

24 Marine Log // January 2017

exposure to the shipping industry and a significant shipowning company, European Navigation Company Ltd (Euronav), which was among the audits. Euronav was incorporated by Compagnie Nationale de Navigation (CNN).

In 1991, I joined Euronav full time as an accountant. Euronav was structured as a joint venture by CNN, and various partners came and went. One was Awilhelmsen group, which eventually declined long term involvement in the company. Compagnie Maritime Belge (CMB) stepped in to take a 50% stake in 1995. I accepted a role in the new organization and moved to London. CMB took a full stake in the business in 1997 and although my work flow did not change I had new lines of reporting.

In 2004, Euronav concentrated all of its finance and accounting function in Antwerp to take advantage of the new Belgium tonnage tax, and I was offered a position in Tankers (UK) Agencies, which I accepted.

ML: When did you join KNOT Offshore Partners?

JC: KNOP approached me in 2013 to join them as an independent director. I was elected and chaired the audit committee as

the independent financial expert.

ML: Can you tell us about the KNOT Offshore Partners’ shuttle tanker fleet?

JC: All 11 of our shuttle tankers operate in Brazil and Northern Europe.

Our customers charter shuttle tankers with state-of-the-art dynamic positioning systems to transport the oil produced in their concession areas. The dynamic positioning system allows a vessel to remain on station despite harsh conditions.

Four of our vessels are on long-term bareboat charters with Petrobras Transporte; there are no off-hire provisions in these contracts. These vessels are among the youngest in the Petrobras fleet (delivered 2011 to early 2012) and all have dynamic positioning with redundancy. Dan Sabia and Dan Cisna are a unique size, and Fortaleza Knutsen and Recife Knutsen have shallow drafts with lots of thruster capacity. The Petrobras vessels are heavily utilized by the charter.

These vessels provide the partnership with a high degree of predictable passive income, and are effectively long term financial type leases all running to 2023/2024 and governed by U.K. law.

Our largest vessel, Windsor Knutsen, is on charter to Shell and this relationship is broadening as BG has agreed charters for three further vessels—all newbuilds that our sponsor has since contracted with Hyundai.

Delivered in 2013, the Carmen Knutsen is a popular vessel with Repsol Sinopec and, in September 2015, the partnership agreed to extend the existing time charter duration for a further five years until 2023.

Our flagship, the Bodil Knutsen, is the largest shuttle tanker operating in the North Sea. It is ice class and on charter to Statoil.

The 1.1 million barrel ship is popular with traders because of its cargo parcel size.

This year, ENI started production at its Goliat platform in a field in the Barents Sea nearly 300 miles north of the Arctic Circle.

Production flow is expected to reach around 100,000 barrels a day, placing ENI among a select group of oil producers in the region.

Never before have shuttle tankers had to meet such strict environmental requirements as the vessels on this contract. The shuttle tankers are heavily winterized. The most visible difference on our shuttle tankers as compared with others is that ours have enclosed deck spaces running fore to aft, allowing them to operate in temperatures down to -30C. Our two vessels, Hilda Knutsen and Torill

John Costain

Knutsen, have been built and chartered to ENI specifically for this project.

Our latest acquisition, the Raquel Knutsen, is a Suezmax class shuttle tanker built by Cosco Zhousan and delivered to RSB in June 2015. The vessel operates in Brazil under a 10-year time charter with Repsol Sinopec.

Knutsen is justifiably proud of its pioneering record of accomplishment, the sponsor’s first two Suezmax shuttle tankers contracts with dynamic positioning were awarded in 1984 and delivered in 1987.

ML: What is KNOP’s business model?

JC: KNOT Offshore Partners LP is, in essence, a midstream mobile pipeline business with fully contracted none volume based revenue streams and the market is expanding, so supply should tighten irrespective of the oil price.

Trygve Seglem is KNOP’s Chairman of the Board and he has been working with shuttle tanker development since his time at Statoil in the late 1970’s. He joined Knutsen in the early 1980’s and the company won a contract for two shuttle tankers with Statoil in December 1984. Since then Knutsen has grown organically for over 30 years as the business has been built into a sizeable fleet of these tankers (currently 30 units including orders).

In addition, we have a board that is knowledgeable and has proven leadership from the pioneering days of offshore loading.

We base our business model on properly pricing long-term contracts and knowledge gained through many years of practical experience. These contracts have stable and logical long-term price structures; therefore, we have minimal downside risk at renewal.

ML: The oil and gas sector has been hit hard by the downturn, yet KNOT Offshore Partners had its best-ever financial results in the third quarter of 2016. What makes KNOT Offshore Partners different?

JC: I think it is important to say that shipping is not a homogenous niche, and at the time of the IPO while earnings on large bulk tankers were below operating costs (i.e. $10,000 per day), time charter equivalent earnings on our vessels were averaging around $55,000, where they remain today.

Shuttle tankers are a wholly different ball game to commodity shipping like bulk, crude and products which are traditionally cyclical, and dependent on trading demand.

ML: Will KNOP add more vessels?

JC: There are currently four more shuttle tankers that we can acquire from our

sponsor Knutsen NYK. Three are Suezmax class enhanced DP2 shuttle tankers from Hyundai Heavy Industries: Tordis (Nov. 2016), Vigdis (Feb. 2017) and Lena Knutsen (June 2017), which will be chartered to Shell, and one Suezmax class DP2 shuttle tanker from Cosco Zhousan (Jan. 2017) that will be chartered to Petrogal.

We base our business model on properly pricing long-term contracts and knowledge gained through many years of practical experience.

— John Costain, CEO & CFO However, we are not in a hurry to put the balance of this accretive dropdown inventory into KNOP in the near future by issuing common units. The sponsor has already fully financed all these vessels, and is in a healthy financial position.

Accretive acquisitions will only occur

when KNOP is able to raise adequate financing at reasonable terms (no double digit yields) as we have always told the market.

One of the reasons we expanded our capital base (by issuing preference units) was to allow us to have a more flexible approach to raising capital which is necessary in the current environment.

ML: What’s your near term outlook?

JC: While crude oil price volatility persisted through the last few months, it has recovered to a level that can sustain some production growth now that we are over the low $40/bbl break-evens for many areas.

OPEC’s production cuts should lead to a gradual commodity price recovery, but it’s doubtful that it will be quick.

Our main sphere of expansion will be Brazil, where our four drop-down candidates will all operate.

Petrobras (PBR) reports that operations reached a new daily production record in the pre-salt by producing a volume of 1.23 million bpd on October 11. All this oil has to be transported by shuttle tankers 130 km offshore and, at 2,000 to 3,000m below sea level—a fixed pipeline is not an option.

PBR has drilled wells in the pre-salt in increasingly less time. In the first five months of this year it took 89 days to drill a well—a reduction of 71% between 2010 and 2016.

According to Petrobras the average cost of extraction of oil from pre-salt wells totaled less than $8 per barrel of oil equivalent and has been gradually decreasing.

January 2017 // Marine Log 25

Navy

How will the new Trump Administration shape its vision of the Navy?

Looking for the

‘MAGIC 350’

hipbuilders, and industry alike, are hopeful that the incoming Trump administration will make good on its campaign commitment to achieving a 350-ship Navy. The Navy, on the other hand, is hoping that total can be stretched to 355 ships.

The Trump-Pence campaign’s platform promise of a 350-ship Navy didn’t come out of nowhere. Reportedly, it appeared as a result of input from Randy Forbes, the former chairman of the House Seapower subcommittee who lost his seat as a result of a Congressional redistricting spat and who has been widely tipped to succeed Ray Mabus as Secretary of the Navy.

In any event, the number is scarcely new.

In a November 2016 Congressional Research Service report, veteran analyst Ronald O’ Rourke says the magic 350 is “a roundedoff version of a recommendation for a fleet of up to (and possibly more than) 346 ships

26 Marine Log // January 2017

that was included in the 2014 report of the National Defense Panel (NDP), a panel that provided an independent review of DOD’s report on its 2014 Quadrennial Defense Review” and “four years before that, a fleet of 346 ships was recommended in the 2010 report of the independent panel that reviewed DOD’s report on its 2010 QDR.” And, “seventeen years earlier, a fleet of 346 ships was recommended in DOD’s 1993 report on its Bottom-Up Review (BUR), a major review of U.S. defense strategy, plans, and programs that was prompted by the end of the Cold War.” According to O’Rourke, the Navy’s actual size in recent years has generally been in the range of 270 to 290 ships.

While the Obama Administration had been aiming for a 308-ship Navy, O’Rourke notes that “those who advocate increasing the planned size of the Navy to something more than 308 ships generally point to

China’s naval modernization effort, resurgent Russian naval activity, and challenges that the Navy has sometimes faced in meeting requests from the various regional U.S. military commanders for day-to-day, in-region presence of forward-deployed Navy ships.”

New Navy Force Structure Assessment The most recent Navy Force Structure Assessment (FSA), published just last month, calls for an objective force of 355 ships.

In presenting the 2016 FDA last month, then Secretary of the Navy Ray Mabus underlined that Navy leaders are confident that, if funded, the 355-ship plan is executable, as each ship class called for in the FSA has an active shipbuilding line already up and running. That is a sentiment that has been echoed by shipbuilders.

So, what is the make up of the 355-ship Navy? Well, it’s a scaling down of the 653 ship

Photo by U.S. NAVY

S

By Nick Blenkey

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Navy

Arleigh Burke Class destroyer USS Nitze (DDG 94) at Naval Station Norfolk

force would be the “unconstrained desire” of Combatant Commanders (CCDRs) for Navy forces in their respective theaters. Explaining how those unconstrained desires were reined back in to within more realistic expectations, the executive summary to the 2016 FSA says that “in order to assess war-fighting risk and identify where margins existed that could be reduced, we did an in-depth review and analysis of ‘what it takes to win,’ on what timeline, and in which theater, for each major ship class.”

The goal of this phase of the analysis was to determine the minimum force structure that: • complies with defense planning guidance directed combinations of challenges for force sizing and shaping; • meets approved Day 0 and war-fighting response timelines; • delivers future steady state and war-fighting requirements, determined by the Navy’s analytic process, with an acceptable degree of risk (e.g. – does not jeopardize joint force campaign success).

U.S. Coast Guard Response Boat - Small

The result was an objective force of 355 ships –shown in the accompanying table along with changes from the 2014 FSA update.

“In executing this assessment,” says the executive summary, “we were careful to ensure each of what amounted to 11 separate ‘ship class level’ FSAs did not cause the accumulated risk to the force to pass into a realm where we were uncertain we could still ‘win’. In each ‘ship class level’ effort, the most stressing requirements from each set of integrated scenarios were used to identify the minimum force structure required to comply with strategic guidance.

• A minimum of 12 Aircraft Carriers are required to meet the increased warfighting response requirements of the Defense Planning Guidance Defeat/Deny force sizing direction.

• 104 Large Surface Combatants deliver increased air defense and expeditionary BMD capacity and provide escorts for the twelfth Aircraft Carrier.

• 52 Small Surface Combatants are required to meet Defeat/Deny challenges and support ongoing Counter Terrorism, Counter Illicit Trafficking, and Theater Security Cooperation/Building Partnerships efforts.

• 66 Attack Submarines provide the global presence required to support national tasking and prompt war-fighting response.

• The additional logistic ships support the additional Aircraft Carrier and Large Surface Combatants.

• Six Expeditionary Support Bases provide persistent and flexible capabilities for Counter Terrorism and Counter Illicit Trafficking efforts.

• The Command and Support inventory is mostly driven by platform specific studies of presence and war-fighting requirements for the unique missions of these ships. The rise to 23 represents two additional surveillance ships.

What’s Next?

U.S. Navy Force Protection Boat - Medium

Built for the World’s Most Demanding Operators. email: sales@metalsharkboats.com • Telephone: 337.364.0777

28 Marine Log // January 2017

The Navy acquisition process is like a centipede in that there are still a whole lot of shoes to drop before any of this translates into actual shipbuilding orders.

Somewhere in the works is Secretary Mabus’s last budget submission. If it has survived, it will likely provide a path to the 355-ship Navy.

Reportedly, it was billions more than the marks set by Secretary of Defense Ash Carter, and, according to Defense News, it was accompanied by a memo that said: “You and I both know that this budget is almost totally a symbolic one, given the time this Administration has left in office.

“My budget submission will be the bridge

Navy to future budgets that reflect a new Force Structure Assessment.

“I have no intention of changing course now. If you ultimately decide to submit a budget that takes away the ability of the Navy and Marine Corps to do their job, it will not have my support, and I will make my objections widely known.”

Not that the incoming Administration is going to pick up anything left on the table by the outgoing one.

“The reality is that no matter what we put forward today we’re going to redo it in February, March and April,” Adm. Bill Moran, the Vice Chief of Naval Operations, told a group of reporters on December 6.

Paying For It All What’s it all going to cost the taxpayer? In a summary of its “Analysis of the Navy’s Fiscal Year 2017 Shipbuilding Plan,” released last month in advance of publication of the full report, the Congressional Budget Office (CBO) put the average annual cost over the next 30 years of carrying out the Navy’s 2017 shipbuilding plan—covering FY 2017 to FY 2046 and submitted to the Congress in July 2016—at about $21 billion in 2016 dollars—one-third more than the average amount of funding that the Navy has received for shipbuilding in recent decades.

Noting that the new Navy FSA looks for a fleet of 355 ships, CBO says that even the slightly smaller notional fleet of 350 ships that policymakers have called for could cost $25 billion per year, or 60 percent above the historical average.

The CBO says that implementing the Navy’s plan could be difficult under current law. The Budget Control Act of 2011 (BCA) placed caps on both defense and nondefense discretionary spending that remain in effect through 2021. (The BCA does not address specific budget accounts such as the one for shipbuilding.)

If, under the BCA’s caps, the Navy received the same portion of

Table 1 Shipyard

2014

2016

Aircraft Carriers

11

12

Large Surface Combatants

88

104

Small Surface Combatants

52

52

Amphibious Warfare Ships

34

38

Attack Submarines

48

66

Guided Missile Submarines

0

0

Ballistic Missile Submarines

12

12

Combat Logistics Force

29

32

Expeditionary Fast Transport/High Speed Transport

10

10

3

6

21

23

308

355

Expeditionary Support Base Command and Support Total

DoD’s budget and devoted the same percentage of its budget to ship construction over the 2017–2021 period that it has over the past 15 years, the annual shipbuilding budget would fall 20 percent short of CBO’s estimate of the amount required to execute the Navy’s 2017 plan over that period.

ACTUAL MODEL

SIMULATED WATER AND SMOKE

S. S. LANE VICTORY, COMMISSIONED WINTER 2014/15

Towing Pins OCIMF Roller Fairleads Guide Sheaves

Shark Jaws

Balanced Head Fairleads

Smith Berger Marine, Inc.

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January 2017 // Marine Log 29

ENVIRONMENT

Finding the Right

Fit

U

p until now, shipowners operating in U.S. waters only had limited options to comply with U.S. Coast Guard regulations for ballast water management.

They could: install a ballast water treatment system (BWTS) accepted under the Coast Guard’s Alternative Management Systems (AMS) program; seek an extension to the vessel’s compliance date; use ballast water obtained exclusively from a U.S. public water system; discharge ballast water to a reception facility; or no discharge of unmanaged ballast water inside 12 nautical miles.

But the road to compliance took a dramatic turn this past December. The news broke during the 2016 International Workboat Show—Norway’s Optimarin AS had been issued the first USCG type-approval certificate for its ballast water system by the U.S. Coast Guard.

The Optimarin Ballast System (OBS), which can operate in all salinities, uses a combination of filtration and 35kW UV lamps to treat ballast water.

30 Marine Log // January 2017

Optimarin is no stranger to “firsts” having installed the world’s first commercial ballast water treatment system on the Princess Regal back in 2000. Since then, it has installed 300 of its OBS systems worldwide—with almost 500 orders received.

The news, says Tore Andersen, CEO of Optimarin, is good for the company, the market and the U.S. Coast Guard. “It demonstrates that reliable, easily installed and effective systems are now available and 100% compliant, no matter where vessels operate.”

“This is a segment that’s been defined by uncertainty and regulatory confusion for too long, but now we have clarity,” he adds.

“In a way, the USCG’s stringent standards and approval decisions have fired a starting gun in the race for global compliance.”

And what a race it has kicked off.

At the time of the announcement, Rear Admiral Paul Thomas, Assistant Commandant for Prevention Policy, U.S. Coast Guard, said the system was just the “first of multiple system approvals…” adding that “One size does not fit all, so we will continue to

evaluate other systems submitted by multiple manufacturers with the intent to provide options that meet shipping’s varying needs.”

Just prior to the holidays, the U.S. Coast Guard issued type approval to two additional systems — Alfa Laval’s PureBallast system and OceanSaver’s MKII BWTS. According to Alfa Laval, the U.S. Coast Guard based its type approval of PureBallast on CMFDA/FDA testing conducted at DHI in Denmark.

PureBallast has a flexible construction based on four different UV reactor sizes—allowing for optimized sizing and competitive solutions over a wide flow range. The current type approval covers flows of 150 to 3,000 m 3 /h based on the 300 and 1,000 m3/h reactor sizes. Alfa Laval expects type approvals for its systems based on 170 and 600 m3/h reactors soon.

Meanwhile, the Coast Guard’s announcement of its type approval for the OceanSaver MKII BWT system is a game changer. The system is the first based on electrochlorination technology to receive type approval.

Shutterstock/Nightman1965

USCG finally awards type approval to three ballast water treatment systems By Shirley Del Valle, Managing Editor

ENVIRONMENT The technology requires ballast water to undergo a two-step process: (1) Filtration- where ballast water is filtered by a fully automatic back-flushing filter; and (2) Disinfection- where the ballast water is treated with a disinfectant oxidant when C2E is introduced during an electrodialytic process.

“This is a milestone in the implementation of safe ballast water discharge standards worldwide,” says Alan Linderoth, Vice President, Sales & Marketing, OceanSaver.

Linderoth notes that the system has a capacity of 1,500 to 7,200 m3/h—making it ideal for medium and large vessels, such as LR1s, VLCCs and large gas carriers.

Challenges & Delays From the start, the process towards type approval has been slow and ever-changing.

“Recalling that the initial exploratory meetings with IL’s were held over three years ago (September 2013), the duration that the whole approval process takes (from IL selection all the way to test completion/final report preparation) is long. All involved (U.S. Coast Guard, IL’s, test facilities, manufacturers) are continually gaining new experience, which makes the approval process quite fluid,” says Marcie Merksamer, EnviroManagement, Inc. “As an example,” adds Merksamer, “a Test Plan developed and accepted by the IL at the beginning of testing may not end up encompassing what the U.S. Coast Guard really wants 18 months later when the testing is completed, as all have gained new information during that time period. This can result in limitations/conditions placed on the equipment, not because the system can’t meet the requirement, but because it wasn’t tested in a certain way. Further, as data comes in, new questions may be raised and additional data may be requested. However, the time that a system can stay installed at a Test Facility is finite, as there is a queue of other manufacturers and contracts in place for a specific amount of testing. Changing what needs to be tested mid-way or at the end of testing is a significant challenge.”

Some providers of BWTS are also having to approach the USCG type approval testing from a new angle after the U.S. Coast Guard rejected the Most Probable Number (MPN) Method.

According to the U.S. Coast Guard, the MPN method “does not measure the efficacy of the BWMS to the performance standard required by the regulations” —that standard requires that ballast water treatment systems kill the organism(s). The MPN method only evaluates the likelihood of said organisms being able to reproduce.

The Coast Guard’s preferred method, the stain method, essentially categorizes organisms into “living” or “dead.” Using two stains, FDA and CMFDA, the test helps determine the organism’s status. Ironically, the method can’t really determine if an organism is truly living or dead—only if there are esterases present within it.

This coming February, Hyde Marine, a proponent of the MPN method, will begin testing its Hyde Guardian Gold BWTS using the stain method. Hyde Guardian Gold uses a medium-pressure UV chamber paired with a fine mesh filter—this combination allows for ships to operate independent of salinity and water temperature The U.S. Coast Guard’s decision to not accept the MPN method, assures Hyde Marine’s Mark Riggio, hasn’t deterred the company’s determination to achieve type approval. Riggio says the company has “always maintained a very flexible product line with model sizes that adapted closely” to each ship’s needs, but adds that, “this granularity creates friction with the regulators that want more standardized systems to approve.

We will continue to find a balance between offering enough discrete models to match vessel needs while recognizing the costs of certifying multiple units.”

Hyde Marine has sold over 470 of its units.

Ballast Water Treatment system provider Trojan MarineX has also been an avid supporter of the MPN method.

Trojan MarineX’s Mark Kustermans explains that the greatest challenge to obtaining USCG Type Approval has been “educating regulating bodies in the U.S. that our application of the MPN method presents solid scientific facts that prove the method is consistent with U.S. law, accurate, and just as protective of the environment, if not even more so, than the vital stain method.”

“As the IMO has recently reaffirmed its definition of ‘viable’ allowing for the continued use of reproductive methods, the objective scientific evidence and international support for the MPN method has become increasingly apparent and as such we anticipate that the Coast Guard will, with appropriate guidance from the U.S. Congress, also soon apply standards and test protocols that facilitate Type Approval of eco-friendly UV-based ballast water treatment systems,” adds Kustermans.

I n t h e m e a n t i m e , Tr o j a n r e m a i n s “focused on our pursuit of USCG Type Approval and providing customers with robust ballast water treatment systems.”

Trojan MarineX BWTS combines two treatment methods, filtration and UV, in a single compact unit.

Hyde Marine’s Hyde Guardian Gold BWTS

Ecochlor Gets Ready Having completed USCG Type Approval Testing, Connecticut-based Ecochlor is currently in the process of compiling test results with DNV GL before filing an application with the U.S. Coast Guard.

Founded in 2001, Ecochlor is the only company in the industry that uses chlorine dioxide (ClO2) treatment technology.

The system works by first filtering the ballast water and then disinfecting it with the ClO2.

Ideal for installation on the world’s largest ships, the Ecochlor BWTS is a rugged, scalable, and modular system. Its effectiveness, says Tom Perlich, President, Ecochlor, is not impaired by variations in salinity, temperature, turbidity, organics or vibrations.

“The automated system is crew-friendly, easy to operate and is highly energy efficient and engineered for long life,” adds Perlich.

Industry Affect Questions that immediately arose once type approval was granted included: How will it affect those operators with existing extension letters?; Will the U.S. Coast Guard continue to grant extensions now that there are systems with type approval available?

According to the U.S. Coast Guard, extension letters will remain valid until the extended compliance date specified in the letter. Upon the extension’s expiration, the vessel must implement an approved ballast water management method specified in 33 C.F.R . § 151.1510 or § 151.2025.

Additionally, supplemental extensions may be requested, but owners/operators must provide evidence showing why compliance is not possible using any of the type approved BWMS available.

To keep up to date on the latest systems being awarded Type Approval, visit www.marinelog.com January 2017 // Marine Log 31

Regulatory

Subchapter M:

An Eye on

Safety

afety is paramount to any vessel operation and that’s the goal of Subchapter M—which entered into effect on July 20, 2016. Under the new regulation, the U.S. Coast Guard is the principal federal agency overseeing towing vessels.

According to the U.S. Coast Guard, the rule affects about 5,920 U.S.-flag towing vessels engaged in pushing, pulling, or hauling alongside, and the 1,096 companies that own or operate them.

With some exceptions, Subchapter M applies to all U.S.-flag towing vessels 26 feet or more in length, and those less than 26 feet moving barges carrying oil or hazardous material in bulk.

Companies operating towing vessels subject to inspection under Subchapter M will be required to elect inspection under one of two options: (1) The annual Coast Guard inspection schedule, similar to most inspected vessels; or (2) The development of Towing Safety Management System (TSMS). The TSMS would probably be the preferred option. TSMS would describe the organization’s procedures for ensuring compliance with the applicable vessel and personnel requirements.

TSMS compliance would be verified through third-party organizations and documented by issuance of TSMS Certificates. Towing vessels operating under the TSMS option would receive audits and surveys by U.S. Coast Guard-approved third party organizations.

The Coast Guard will conduct compliance examinations at least once every five years, along with additional unannounced compliance checks based on risk. The Coast Guard will provide oversight of the third-party organizations that conduct TSMS audits and surveys.

Under the TSMS option, the new regulations mandate owner/ operators to document, record, or preserve “objective evidence” of compliance. Objective evidence is defined as quantitative or 32 Marine Log // January 2017

qualitative information, records, or statements of fact pertaining to safety or to the existence and implementation of an SMS element, which is based on observation, measurement, or testing that can be verified.

Every boat having a TSMS will be required to have onboard the following electronic files or documentation: Certificates of Inspection (COIs), TSMS Certificate showing compliance with TSMS mandates, TSMS policies and procedures, internal TSMS audits, external management audits, external vessel audits, health and safety plan, third party survey reports, safety orientations within five days of employment, annual refresher drills and training, etc. The purpose of the far reaching documentation requirement is to assure the TSMS is implemented, followed and enforced at all times. COIs will be issued by the Coast Guard to vessels based on successful compliance with the inspection requirements. The Coast Guard will impose an annual user fee of $1,030 after the initial COI inspection.

Companies with more than one existing towing vessel are provided with a calendar for COI compliance. By July 22, 2019, at least 25 percent of the towing vessels must have a valid COI on board; rising to 50 percent by July 20, 2020; then to 75 percent by July 19, 2021; and finally to 100 percent by July 19, 2022. Companies with only one existing towing vessel have a deadline of July 20, 2020. A new towing vessel must obtain a COI before it enters service.

The effective date of the remaining portions of Subchapter M, consisting of operations; lifesaving; fire protection; machinery and electrical systems and equipment; and construction and arrangement, has been delayed for two years, until July 20, 2018 to give the newly regulated community an opportunity to implement the new requirements.

Shutterstock/Ken Wolter

S

By Boriana Farrar, Vice President-Counsel, Business Development Director-North America, American Steamship Owners Mutual Protection and Indemnity Association, Inc.

Main sponsor:

Leading sponsors:

Organizer:

Partner:

Newsmakers

Lynne Griffith Announces Retirement from WSF Lynne Griffith will retire as Washington State Department of Transportation Assistant Secretary for the Washington State Ferries Division at the end of this month.

Later this month, SUNY Maritime College will honor Captain Brian McAllister, Chairman of McAllister Towing, with an honorary doctorate degree. He received his bachelor’s degree from SUNY Maritime in 1956.

The former Chair of the IMO Legal Committee, Dr. Frank Lawrence Wiswall Junior, has been awarded the prestigious International Maritime Prize for 2015 for his contribution to IMO’s work over the years.

The Royal Institution of Naval Architects (RINA) has elected John Hatley PE, Vice President, Americas, and Director of Market Shaping, Wärtsilä Marine Solutions, as a Fellow of the institution.

James Murray has joined the sales management team at Gulfstream Shipbuilding. Murray’s father was the original founder of the shipyard 35 years ago—at the time called Freeport Shipbuilding.

Captain Radhika Menon, Master of the Sumpurna Swarajya, has become the first woman to receive IMO’s highest bravery award after saving the lives of seven fishermen during a tumultuous storm in the Bay of Bengal in June 2015.

The start of 2017 saw the retirement of Frederick J. Harris as President of both GD Bath Iron Works and NASSCO Shipyards. Taking over the presidency at Bath Iron Works is Dirk A. Lesko. Meanwhile, Kevin M. Graney has been appointed president of NASSCO. Astrid de Bréon has been named Chief Financial Officer of BOURBON. She will assume the role, February 1.

Viega LLC has named Sean Debnath Vice President of Sales and Marketing. Prior to joining Viega, he held VP and Director level positions in sales and marketing at Kaydon Corporation, Rexnord and Thermo Fisher Scientific.

“There is Posidonia, Nor-Shipping and CMA Shipping”

SAVE THE DATE!!

March 20, 21 & 22, 2017 The Hilton Hotel, Stamford, CT, USA For more information contact: Lorraine Parsons, CMA Event Director at Tel. +1.203.406.0109 ext. 3717 • Fax. +1.203.406.0110 Email. conferences@cmaconnect.com OR visit us at www.cmashipping2017.com

34 Marine Log // January 2017

TECH NEWS

Kongsberg Develops New K-Fleet App, Launches New Training Portal

The end of 2016 saw a number of developments coming from Kongsberg Maritime. The company developed K-Fleet MRV, a new Carbon Dioxide (CO 2) Monitoring, Reporting and Verification (MRV) application for its K-Fleet suite of marine fleet management software that meets the requirements of the new EU regulation 2015/757.

That regulation will require large ships using EU ports to report their verified annual emissions of CO2 and other relevant information.

K-Fleet MRV enables monitoring and reporting of emissions on a

Becker Marine Systems: Designed for Efficiency A ship´s rudder is always a compromise between efficiency and maneuverability. In order to provide the best maneuvering systems, Becker Marine Systems designs its products in accordance with the specific operational profile of each ship, taking into account the vessel´s: • Maneuverability requirements • Operational speed • Length and draft • Propeller diameter • Ice class • Classification societies This means that it is essential for Becker´s design team to be involved early in the design of the vessel in order to deliver the best and most efficient maneuvering solution.

Becker Marine Systems focuses on energy efficiency and reducing the carbon footprint of a vessel. There are now over 8,000 Becker Rudders in use and more than 1,100 energy-saving devices have been sold— with 850 of them in operation. That translates into eliminating more than 3,000,000 tons of CO2 from being emitted. In addition, the ship operator benefits from improved efficiency. For example, the Becker Full Spade Rudder can improve the ship’s efficiency by about 2% as compared to a normal semi-spade rudder, while the Becker Mewis Duct averages about 6.4 % depending on operational conditions.

The energy-saving results are based on the flow improvement to the propeller, the loss reduction like tip vortex or rotational losses and the propeller efficiency increase by a pre-swirl like a contra-rotating propeller. www.becker-marine-systems.com

per voyage basis to, from, and between EU ports, and is available for deployment in new and existing K-Fleet installations. The system combines data collection from on board sensors and manual entries, making it easier for events to be verified by the Master before reports are sent to the shore-office.

The system can be interfaced with other K-Fleet applications, including K-Fleet Logbook and K-Fleet Maintenance.

Additionally, Kongsberg Maritime also launched a new training portal. Kongsberg offers a variety of type specific and generic training courses that are recognized by DNV GL, IMCA and the Nautical Institute.

Kongsberg offers courses in automation, dynamic positioning, navigation, reference systems, subsea survey and crane operations.

The new portal provides information on course content, pre-requisites and assessment information, as well as the duration and cost of each course.

Accessible to all visitors, courses can be searched by location or category, and can be booked in a matter of minutes. The new portal, says Kongsberg Maritime, streamlines booking for more than 130 distinct training courses available worldwide—in addition to vessel specific and customized courses.

“With such diverse course offering, its important that we provide clear, user-friendly access to help our customers find the courses they need at the right time and location,” says Eirik Hagensen, General Manager, Global Customer Training, Kongsberg Maritime, “and we believe our new online training portal achieves this.”

Learn more at www.training.km.kongsberg.com

Vroon Extends Contract with KVHl Netherlands-based international shipping company, Vroon, has extended its contract with KVH for use of its miniVSAT Broadband network. The service, onboard more than 140 vessels in Vroon’s fleet, has, since 2011, provided the company with reliable communications that are “essential to the smooth operations of our vessels and welfare of our crews,” says Rob Frenks, Vroon’s group ICT manager.

Under the contract extension, KVH will provide support for all TracPhone system for eight years. The contract also includes KVH’s IP-MobileCast service for news, sports, movie, and TV delivery, and preventive maintenance checks to ensure peak performance on all fielded systems as part of the KVH OneCare program.

“KVH offers us a total and affordable managed service that brings together proven hardware and a fully integrated global network management system,” says Frenks.

The vessels will also be equipped with the KVH CommBox Ship/Shore Network Manager. The CommBox provides a suite of network management tools including web compression and acceleration, least-cost routing among multiple communications services, prepaid internet access, and remote access for Vroon’s shore-based IT personnel. www.kvh.com

January 2017 // Marine Log 35

Ad Index Company

Page #

Company

Page #

ASNE

16

Marine Art of J Clary

29

CMA Shipping 2017

34

Metal Shark

28

DNV-GL Hatton Marine Hyde Marine

9 13 7

3

Marine Systems Inc. Nautican

C2

Norshipping

33

IBC Asia International Chemical

14

Omnithruster

23

IBC Asia Singapore Maritime

12

Scania

15

Karl Senner

C4

Smith Berger Marine Inc.

29

Kleeco

11

Thoma-Sea

C3

Louisiana Machinery

21

Viega LLC

5

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36 Marine Log // January 2017

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49th

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Marine Salvage

Final Thoughts on 2016: A Productive Year for Partnerships

MarineLoG SSN 08970491 USPS 576-910 A Simmons-Boardman Publication CORPORATE OFFICES 55 Broad Street, 26th Floor, New York, N.Y. 10004 Tel: (212) 620-7200 Fax: (212) 633-1165 Website: www.marinelog.com E-mail: marinelog@sbpub.com ADVERTISING SALES AMERICAS U.S. Gulf Coast, California, Canada & Mexico Jeff Sutley Associate Publisher T: (212) 620-7233 | F: (212) 633-1165 Email: jsutley@sbpub.com

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successful 2016 has drawn to a close for the American Salvage Association (ASA). The ASA implemented many partnerships during the previous year, such as the one with the Inter-American Committee on Ports of the Organization of American States. The highlight of our partnership in promoting best practices in salvage to Central and South America

extend the deal. There are multiple objectives that the agreement will fulfill, centered on the goal of providing the Panama Canal with emergency response to vessel incidents.

This year will find no shortage of partnerships and initiatives to keep the ASA on the front lines of advocacy for marine salvage and firefighting. The ASA is currently working with its partners at OAS Inter-American

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This year will find no shortage of partnerships and initiatives to keep ASA on the front lines of advocacy for marine salvage and firefighting was our joint training seminar in Miami this past June 2016. At the seminar, the ASA and the Panama Canal Authority (ACP) signed a Cooperation and Technical Assistance Agreement.

Through its emergency response division, the ACP has implemented the Panama Canal Contingency Plan to respond to potential natural and anthropogenic events.

The signed agreement with the ASA serves as a mutually beneficial opportunity to enhance emergency planning, preparedness and response operations in Panama Canal waters and to provide a timely and quality salvage response to vessel incidents.

It will be in force for an initial term of three years, with either party having the option to 40 Marine Log // January 2017

Committee on Ports (CIP) to refine a plan of action for a wreck risk assessment for the Caribbean. The CRISK initiative would provide a means to qualitatively identify the highest risk wrecks and to quantify that risk to allow for the purposes of risk management. CRISK and The National Preparedness for Response Exercise Program Guidelines promise to keep the ASA busy.

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