June 2016 Marine Log by Marine Log

125th ANNUAL YEARBOOK & Maritime Review

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

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June 2016

HEADED FOR BETTER TIMES? Shipowners navigate challenging market

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contents

June 2016 Vol. 121, NO. 6

8 departments 2 Editorial Cruise shipping healthy growth in challenging year

The Hudson is the second in a series of eight Elizabeth Anne Class tugs being built for Vane Brothers by St. Johns Ship Building

8 Update

features 19 Shipping

35 Ferries

VesselValue’s Craig Jallal gives us a breakdown on how VesselValues produces its tanker valuations and takes a look at this year’s top sellers

New York City gears up for the launch of its first citywide ferry service in 2017; meanwhile San Francisco Bay operators and WSF are replacing older vessels

How are tankers valued?

23 U.S. Shipbuilding

Orders for new ships slow, but U.S. owners active in sales and purchase

A return to its maritime roots

41 Port Security

Virtual Port

As of mid-March, 160 ship bulkers, tankers, and gas carriers are on order at shipyards or on the water Plus: Navy shipbuilding

With its eyes set on the future, the Port of Long Beach is involved in a massive 10-year capital investment program to enhance its position as a “big ship ready” port

28 World Shipbuilding

43 Propulsion

Shipyards worldwide have experienced the lowest newbuilding orders since the 1980’s

A look at how the use of azimuth thrusters changed the industry

Shipyards struggle amid market downturn

30 Tugs & Barges

Evolving with the market An influx of new technologies is reshaping the tug and barge industry

6 Inland Waterways Best budget boost benched?

Azimuth thrusters change the way operators move cargo 47 Lubricants

Seeking Clarity

Best practices for choosing and maintaining environmentally acceptable lubricants (EALs) for marine applications

• New Cat in town • F at Leonard’s “Little Bro” receives heavy sentence anpower report sees seafarer •M shortage ahead •E astern to perform LCU 1700 design study and analysis •D enmark and U.S. team up to develop offshore wind

16 Inside Washington Senate subcommittee appropriates $1 billion for polar icebreaker 50 Newsmakers American Waterways Operators names new leadership lineup

51 Tech News Stanford develops humanoid bot for deep-sea exploration

53 Contracts Conrad delivers car ferry to the Steamship Authority

56 OP-ED Crowley’s commitment to Puerto Rico and the Jones Act June 2016 Yearbook MARINE LOG 1

editorial

Cruise shipping healthy growth in challenging year Dr. Martin Stopford did not paint a rosy picture of the current global shipbuilding market during his SMM 2016 advance press conference on June 1. Stopford, a well-respected maritime economist that regularly keynotes many maritime trade industry events, is the non-executive President of Clarksons Research Services. U.K.-headquartered Clarkson Research supports shipping industry clients with broking, financial and research services. In his ke y note, Stopford s aid t hat shipyards have experienced the lowest newbuilding orders since the 1980s. He said that ordering levels are well below shipyard capacity despite a rationalization in the shipbuilding industry that has seen 581 yards close. He expects it to be a very challenging year for shipyards and equipment manufacturers. Korean shipbuilders can certainly attest to that. As we went to press, STX Offshore & Shipbuilding had filed for

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

million people to take cruise vacations this year, up from 23 million last year. Ferries, too, are a relatively healthy sector in North America, with fleet renewal programs underway across the U.S. and Canada. Managing editor Shirley Del Valle outlines New York City’s plans to reconnect Manhattan with the outer boroughs and suburbs with a new ferry network. The city also has plans to build three new 4,500-passenger ferries for the iconic Staten Island Ferry. States across the U.S. will also be the beneficiaries of $59 million in grants from the Federal Transportation Administration to support the construction of new ferries and terminals. You can read more about the ferry market in Shirley’s article, “A return to its maritime roots,” on page 35. World shipbuilding, cruise shipping, and ferries are just a few of the sectors you’ll find in this month’s Annual Yearbook & Maritime Review.

receivership. All the Korean yards have been hit hard by the downturn in the crude oil market. Who hasn’t? Well, the cruise ship market for one. On the contrary, the cruise shipping business is booming. If a recent order by Royal Caribbean with STX France is confirmed, the value of the order book would be well in excess of $40 billion. The main beneficiaries of the surge in cruise ship construction are Italy’s Fincantieri, Germany’s Meyer Werft, and France’s STX France. Meyer Werft Turku in Finland has six ships on order. And things look ver y bright for the foreseeable future. The Cruise Lines International Association (CLIA) is predicting another strong year for cruise travel and it’s that growth—particularly in Asia—that’s driving demand for new ships. In fact, industry insiders say that it’s the lack of shipyard capacity that is actually constraining growth in the marketplace. CLIA forecasts 24

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MarineLoG June 2016 Vol. 121, NO. 6

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MANAGING EDITOR Shirley Del Valle sdelvalle@sbpub.com

NATIONAL SALES DIRECTOR Jeff Sutley jsutley@sbpub.com

CONTRIBUTING EDITOR William B. Ebersold wbeber@comcast.net

REGIONAL SALES MANAGER Heather Bonato hbonato@sbpub.com

CONTRIBUTING EDITOR Paul Bartlett pbmc@gotadsl.co.uk

SALES ASSOCIATE Amy Lennox alennox@sbpub.com

WEB EDITOR Nicholas Blenkey nblenkey@sbpub.com

SALES REPRESENTATIVE KOREA & CHINA Young-Seoh Chinn corres1@jesmedia.com

PRODUCTION DIRECTOR Mary Conyers mconyers@sbpub.com EUROPE MANAGING SALES DIRECTOR Neil Levett neil@aladltd.co.uk

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inland waterways

Best Budget Boost Benched? Only in Washington could something once considered a slam-dunk be turned into a last-minute miss in overtime. On April 27, while Senators were debating what was viewed as the least of the controversial Fiscal Year 2017 funding bills – the Energy & Water Development (E&WD) Appropriations Act – there was a near-gameending glitch. An amendment by Senator Tom Cotton (R-AR) to restrict U.S. purchases from Iran of “heavy water” used in producing nuclear energy irked Democrats, and put the bill on hold. Arguing that it violated a deal to avoid “politically charged” amendments on spending measures, Democrats blocked multiple cloture votes to end debate on the bill. But on May 12, a compromise engineered by Senator Lamar Alexander (R-TN) was struck, the Cotton amendment was set aside, and the bill passed by a vote of 90-8. Senator Alexander called the bill’s passage, “an excellent result for the American people.” The Senate FY 2017 E&WD appropriations bill increases funding for the U.S. Army Corps of Engineers’ Civil Works Program at $6 billion—$11 million above the FY 2016 enacted level, and $1.378 million above the President’s budget request. The Senate appropriations bill more than restores the 23% cut to the Corps’ budget that was proposed by the Administration for FY ‘17. The Construction account received $1.81 billion or $723.65 million more than

6 MARINE LOG June 2016 Yearbook

the FY’17 President’s request. The Olmsted lock and dam project will be funded at $225 million as requested by the President, and a total of $375.65 million will be made available for capital projects investment to modernize the inland waterways transportation system. Additional full-use funding will be allocated by the Secretary of the Army, taking into account the priorities established by WRRDA 2014. The Operations and Maintenance (O&M) account received a record level of funding at $3.17 billion, $468.83 million more than the Administration’s request for FY ‘17. The FY 2016 O&M funding level was $3.14 billion, the then-highest ever appropriated for this account in an annual appropriation bill, or $36.83 million more in FY ‘17 than was appropriated in FY ‘16. The Investigations account received $126.5 million, or $41.5 million above the FY ‘17 request. The Secretary of the Army will also decide whether to allocate these funds, with Waterways Council, Inc. requesting that $10 million be dedicated to Pre-Construction Engineering and Design (PED) of the Navigation Ecosystem Sustainability Program (NESP). The NESP program marries new lock and dam construction with multiple, critically important ecosystem restoration programs for the Upper Mississippi River and Illinois Waterway. The Senate appropriations bill for FY ‘17 also surpasses the WRRDA 2014 target for

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

Harbor Maintenance Trust Fund appropriations at $1.3 billion. Funding for the construction of flood storm damage risk reduction, shore protection, aquatic ecosystem restoration, and related Corps mission projects as authorized by law received $700 million above the President’s request. And Mississippi River & Tributaries (MR&T) received $368 million for flood damage reduction. While the Senate bill had success, the House bill did not. On May 26, on the House floor, the FY ‘17 Energy & Water Development (E&WD) Appropriations bill failed (112-305) after Republicans blocked passage of the bill when Democrats attached an amendment related to Federal contractor discrimination against gay, lesbian, bi-sexual and transgender people. This provision would have the effect of enacting into law a 2014 Executive Order by the President. If a compromise cannot be reached, the FY ’17 E&WD appropriations bill could be held back until after the November election and then become part of an Omnibus appropriations bill in the Lame Duck session in November or December. Under that scenario a Continuing Resolution (CR) to fund the government, including the Corps of Engineers at current levels beyond the September 30th end of the Federal fiscal year could pass the Congress, possibly prior to the August recess.

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NEW CONSTRUCTION

•

REPAIRS

•

CONVERSIONS

UPDATE biz notes Russia to build its first cruise ship in decades

Superferry Conversion: New Cat in Town After years of being bounced around, the former Hawaii Superferry has a new home, and is back to its original mission—ferrying passengers. Now named The Cat, the 349 ft high-speed ferry recently underwent a refit, upgrade and repair at Detyens Shipyard, Charleston, SC, and will begin performing operations for its new operator later this month. Earlier this year, the Government of Nova Scotia announced that the province had reached a 10-year agreement with Bay Ferries Limited to manage and operate the high-speed ferry between Yarmouth, Nova Scotia and Portland, ME. Under the plan with Bay Ferries, the provincial government will provide annual funding for the ferry service, with $10.2 million for the first season and $9.4 million for the second. With the addition of The Cat, Bay Ferries is shifting its focus to speed and getting passengers from point A to point B quicker than the Cat’s predecessor, the Nova Star.

“The Yarmouth Ferry is a vital link in Nova Scotia’s transportation system. It is essential as the TransCanada Highway,” said Geoff MacLellan, the province’s Transportation and Infrastructure Renewal Minister at the time of the government’s announcement. “With this service in place, we will bring more visitors to our province—that means more jobs for the people of Nova Scotia.” The ferry was one of two originally built for the Hawaii Superferry operation in 2007. It operated on the Hawaiian interisland service route until March 2009. After Hawaii Superferry filed for Chapter 11, the Alakai (The Cat’s original name) and its sister ship, Huakai, were bought by MARAD during a bankruptcy auction. The ferry eventually ended up under Navy ownership in 2012 as the USNS Puerto Rico (HST-2) . However, the Navy couldn’t figure out what to do with the vessel, so she remained laid up until Bay Ferries came calling.

Russia may be on the verge of throwing its hat in the cruise shipping market. Repor ts indicate that Alek sey Rakhmanov, President of Russia’s United Shipbuilding Corporation (USC) has announced that the company will begin construction on a cruise ship this year— marking the first time in decades that a cruise ship will be built in Russia. The former Soviet Union had a fleet of ocean liners that operated on both the Black and Baltic Seas, but those ships were mostly built in East Germany, Finland and Yugoslavia. Cruise demand has increased within Russia itself, now that countries like Egypt and Turkey—two favored destinations among Russians— are off limits for Russian tourists. According to Russia’s RT, there has been an approximately 800 percent hike in river cruises within Russia—most popular among them are cruises from Moscow to St. Petersburg and Kazan. USC meanwhile, is currently the largest shipbuilding company in Russia. It operates more than 60 domestic shipyards, has design offices and ship repair yards, and employs over 80,000 people.

Beyond the regular drydock maintenance and modifications, Detyens also renewed the hull and underwater paint, renovated the vessel’s interior and overhauled the ferry’s engines. The vessel will begin operations for Bay Ferries Limited on June 15.

Fat Leonard’s “Little Bro” receives heaviest sentence yet in GDMA Scandal The Fat Leonard affair is the scandal that keeps on giving. Last month, 49-year old U.S. Navy Captain Select, Michael Vannak Khem Misiewcz, was sentenced to 78 months in prison (seven years plus). The sentence is the heaviest handed down thus far in relation to the scandal. Misiewicz was sentenced to one count of conspiracy and one count of bribery. Beyond the prison sentence, he’ll also have to pay a $100,000 fine as well as forfeit $95,000 in proceeds from the scheme. According to admissions in his plea agreement, Misiewicz stated that from January 2011 to September 2013, he provided classified U.S. Navy ship schedules and other 8 MARINE LOG June 2016 Yearbook

sensitive U.S. Navy information to the defense contractor Leonard Glenn Francis, CEO and owner of Singapore-based Glenn Defense Marine Asia (GDMA). At the time, GDMA provided port services to U.S. Navy vessels throughout the Pacific. Court documents indicate that Francis and Misiewicz exchanged multiple emails, often referring to each other as Big Brother (Francis) and Little Brother (Misiewicz). While stationed in Japan on the USS Mustin, and in Colorado Springs, CO, Misiewicz used his position and influence with the U.S. Navy to advance the interests of GDMA. In exchange, Francis gave “Little Bro” cash, paid for luxury travel, provided Misiewicz’s

wife with a designer handbag, and provided Misiewicz with the services of prostitutes on multiple occasions. In an attempt to evade detection from law enforcement officials, Misiewicz admitted that he and his conspirators set up various email accounts and then deleted them. To date, ten individuals have been charged in connection with the scheme. Nine have pleaded guilty. Meanwhile, Francis, the leader in the entire scheme, is currently awaiting sentencing. On January 15, 2015, he pleaded guilty to all charges brought against him. He faces a maximum of 25 years in prison and has already agreed to forfeit $35 million in personal assets.

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UPDATE

Manpower report sees seafarer shortage ahead The latest five-year Manpower Report from BIMCO and the International Chamber of Shipping (ICS) forecasts a serious future shortage in the supply of seafarers. The report identifies a current shortfall of about 16,500 officers (2.1%), but sees a need for an additional 147,500 officers by 2025 to service the world merchant fleet. The global supply of officers is forecast to increase steadily, but this is predicted to be outpaced by increasing demand.

Officer categories in especially short supply include engineer officers at management level and officers for specialized ships such as chemical, LNG and LPG carriers. The report suggests that in the past five years the industry has made good progress with increasing recruitment and training levels and reducing officer wastage—such as retaining qualified seafarers and increasing the number of years which they serve at sea. Unless training levels are increased

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significantly, however, the growth in demand for seafarers could generate a serious shortage in the total supply of officers. The report estimates there is a current surplus of about 119,000 ratings (15.8%), with demand only having increased by about 1% since 2010. Significantly, China is thought to have overtaken the Philippines as the largest single source of seafarers qualified for international trade (although the Philippines is still the largest source of ratings). Data from international shipping companies suggest that the extent to which Chinese seafarers are available for international service may be limited, with the Philippines and Russia seen as equally important sources of officers, followed closely by Ukraine and India. Follow ing the news, InterManager released a statement calling it a “wake-up call for the industry.” InterManager Secretary-General, Captain Kuba Szymanski said the industry should not sit on its laurels when it comes to the recruitment and retention of seafarers. “Our people are our assets and we need to develop a strategy whereby shipping is once again seen as a career of choice for tomorrow’s young talented people,” added Captain Szymanski.

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Eastern to perform LCU 1700 design study

Damen debuts new series of workboats

Eastern Shipbuilding Group, Inc., Panama City, FL, and Vard Marine Inc. are teaming up to complete a Design Study and Analysis for the U.S. Navy’s Landing Craft, Utility (LCU) 1700. Over a 100-day period the team will address technical solutions for the future LCU 1700 to support the program goal of providing all the capabilities required in the most cost-effective manner. Under the LCU 1700 program, the Navy will recapitalize the 32 vessels in the LCU 1610 class. The LCU 1700 is expected to share similarities with the LCS 1610 as they are to have the same footprints. They won’t, however, be completely the same as the payload on the 1700 will be greater at 170 short tons. According to the Federal Business Opportunities website a few other yards were also awarded the LCU 1700 Design Studies and Analysis contract, including Bollinger Shipyards, Marine Group Boat Works, VT Halter Marine, Inc., and Fincantieri Marine Group.

Damen has debuted a new class of workboat, the Damen Utility Vessel UV2410. The new multirole platform is the result of extensive consultation with aquaculture industry customers in the U.K. and Norway. For these specific customers, the rule length of the vessel needs to be no more than 24 meters and within the 200 gross tonnage limit. Within those limits, protected deck space and good seakeeping were top priorities, along with ample accommodation space. Damen says the Utility Vessel 2410 delivers all these requirements—and more. “The design is optimized for a wide range of roles including maintenance support, oil recovery, diving support, buoy handling, safety stand-by, ROV support, surveying and much more,” said Lodewijk van Os, Product Director, Workboats.

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June 2016 Yearbook MARINE LOG 11

UPDATE Kvichak delivers RB-M C to NYPD Harbor Unit

Kvichak Marine Industries, a Vigor company, has delivered a fourth 45ft Response Boat – Medium C (RB-M C) to the New York City Police Department Harbor Unit. The RB-M C is the commercial variant of the Response Boat- Medium (RB-M), built for the U.S. Coast Guard. Featuring the same exacting capabilities needed for maritime security, the commercial variant offers more crew comfort and amenities than the RB-M. “It has proven itself to be ideal for patrol, law enforcement and search and rescue operations,” said Art Parker, Vigor Business Development Manager.

Kvichak, which has built a total of six RB-M C’s for three different police departments, is currently in negotiations to build more both domestically and abroad. The RB-M C has an overall length of 44 ft 11 inches, beam of 14 ft 7 inches, and a draft of 3 ft. The patrol craft, which can reach a top speed over 40 knots, is powered by two Detroit Diesel 60 series engines, Twin Disc MG5114SC marine gears, and Rolls-Royce Kamewa FF375S waterjets. The RB-M C is also fitted with a Furuno Navnet system, SeaFLIR Voyager III system and Kohler 9kW genset for AC power.

Denmark, U.S. team up to develop offshore wind Denmark and the U.s. have signed a memorandum to strengthen cooperation on offshore wind energy projects. The agreement “is a testimony to the strong transatlantic ties between Denmark and the U.S.,” said Danish Ambassador Lars Gert Lose. The MOU’s objective is to promote a mutually benef icial relationship between the two countries, with a view to sharing knowledge, experiences, data, and best practices relevant to the development of offshore wind. “Denmark has been using offshore wind power as an energy resource for 25 years and I am delighted that we— by sharing our knowledge and experience—can help promote renewable energy in the world’s largest economy, “ added Lose. Bureau of Ocean Energy Management (BOEM) Director Abigail Ross Hopper says the MOU represents “an exciting milestone toward achieving a clean energy future.”

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UPDATE Vard wins 15 vessel order for Topaz Energy

Boksa designed research vessel to be built by Duckworth Steel Boats

Vard Holding Limited has won a $300 million contract to design and construct 15 module carrier vessels for Dubai headquartered Topaz Energy and Marine. Being built to the VARD 9 21 design, the vessels will measure 123 m x 15.6 m, and will be able to carry high deck loads up to 1,800 tons. The design by Vard was specifically developed to navigate shallow river systems as the vessels can be used to transport modules for oil fields. The vessels will be operated by Topaz through a consor tium led by Blue Water Shipping for the end-client Tengizchevroil—a joint venture between Chevron, Ex xonMobil, KazMunayGas and LukArco. Tengizchevroil operates the Tengiz oilfield. Nine of the vessels will be built in Vard’s Romanian shipyards, five at Vard Braila and four at Vard Tulcea. The remaining six will be built at Vard’s Vung Tau shipyard in Vietnam. Delivery is scheduled to take place 2017 through 2018.

Family-owned Duckworth Steel Boats, Tarpon Springs, FL, will build a new 78 ft research vessel for the Florida Institute of Oceanography (FIO), according to naval architecture firm Boksa Marine Design (BMD), Lithia, FL. Construction is expected to kick off this month. BMA won the contract to design the vessel last February. The new research vessel will replace FIO’s 48-year-old R/V Bellows. According to a report in the Tampa Bay Times, $6 million in funding to build the vessel is comprised of $3 million from the State of Florida, $1 million from FIO, $250,000 from the City of St. Petersburg, and a combination of 12 Florida schools that have used the R/V Bellows over the last five years. BMD designed the new research vessel to be both longer and wider than its predecessor. The new vessel will be 78 ft x 26 ft and will offer users a larger work space, separated wet and dry labs, a larger work deck, separate galley and more comfortable arrangements for berthings.

Once completed and delivered to FIO, the vessel will conduct research operations as well as water sampling, bioacoustics, sediment coring and fisheries research. “We’re excited to be a part of this new project,” says Nick Boksa, President of Boksa Marine Design. “The vessel (R/V Bellows) has a rich history of scientific education and discovery and we hope the new boat will continue the institute’s ongoing mission.” The vessel’s construction is expected to take between one to two years to complete. During construction, BMD will provide detailed engineering and construction oversight. Back in 2014, BMD provided systems and mechanical engineering services for FIO’s other research vessel, the 115 ft R/V Weatherbird II.

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Update Carnival appealS low sulfur fuel regulation fine Carnival Corporation & plc has been fined A$15,000 ($11.1 million) after one of its P&O Cruises ships, the Pacific Jewel, breached new low sulfur fuel regulations in Sydney Harbor, according to the New South Wales, Australia, Environment Protection Authority. The agency said that “a fuel sample taken by the ship’s crew and provided to the EPA officers while the ship was berthed at the White Bay Cruise Terminal on February 26, 2016 had a sulfur level of 0.293%, nearly three times the 0.1% sulfur limit.” The new regulations, which came into force on October 1, 2005, require cruise ships berthed in Sydney Harbor to use low sulfur fuel within one hour of berthing until one hour before departure. “Figures before the regulation came into force showed that cruise ships produce around 40% of total fine particle emissions from shipping in Sydney Harbor,” explained Greg Sheehy, EPA Acting Director, Metropolitan. “Therefore it’s vital that cruise ship operators adhere to the new regulation to protect Sydney’s air quality and the health of the community.” According to Sheehy, the Pacific Jewel’s ship master was cautioned by the EPA on the requirement. The ship’s crew complied and began the change over “but the sample showed that the fuel being used in the ship’s engine during the EPA’s inspection did not meet the low sulfur fuel requirements,” said Sheehy. Sheehy does note that since the February 26 sample, another three samples have been taken from the Pacific Jewel and all have complied with the requirements. In appealing against the Pacific Jewel finding, Carnival Australia has called on the EPA to review the penalty notice on the basis that it failed to take into account available technical information that would have confirmed the ship had completed the changeover to low sulfur fuel within the prescribed time period. Carnival Australia says the single fuel sample submitted to the EPA for testing did not properly reflect Pacific Jewel’s successful transition to low sulfur fuel on the day in question. According to Carnival Australia, the EPA had also not taken into account a number of other significant technical indicators that would have confirmed the ship was using low sulfur fuel. Carnival Australia is also questioning the results given the amount of time it took the EPA to analyze the fuel samples—about 20 days.

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Senate Subcommittee appropriates $1 billion for polar icebreaker Last month, the Senate Defense Appropriations Subcommittee approved the FY2017 Defense Appropriations Bill, including $1 billion in the shipbuilding program for the construction of a new, badly needed polar icebreaker. The bill now goes to the full Senate Appropriations Committee for approval. “Our FY2017 defense funding bill makes a critical investment in the longdelayed expansion of the U.S. icebreaker fleet,” said Senator Thad Cochran (R-MS). “We must take assertive action to provide the vessels needed to protect American national security and economic interests in the Arctic region.” Senator Cochran chairs both the Senate Appropriations Committee and the Senate Defense Appropriations Subcommittee. The funding for the Polar Icebreaker Recapitalization Project would accelerate plans announced by President Obama in August 2015 to move forward the planned icebreaker construction from 2022 to 2020. In addition to funding, language in the bill would encourage actions to facilitate an

earlier construction start and long-range cost savings. Congress last funded a new icebreaker in the FY1990 Defense Appropriations Act. The only U.S. heavy icebreaker currently in active service, USCGC Polar Star (WAGB10), was built by Lockheed Shipbuilding and Construction Company in Seattle and commissioned in 1976. Designed and built for a 30-year service life, the Polar Star was refit by Vigor Industrial starting in March 2010 and completed in December 2012. The $57 million refit was expected to provide the icebreaker with an 8 to 10-year service life extension. The Polar Star can break ice up to 21 feet thick by backing and ramming and can continuously steam through 6 feet of ice at 3 knots.The U.S. also operates the medium icebreaker USCGC Healy (WAGB-20). By sharp contrast, the Russian fleet consists of roughly 40 operational icebre a ker s a n d 1 1 i ce bre a ker s e i t h er planned or under construction. “This is a significant victory in my decade-long fight to turn our nation’s

focus to the Arctic and embrace our role as an Arctic nation,” said Senator Linda Murkowski (R-AK). “This is the first tangible demonstration that we are committed to fulfilling the responsibilities associated with our strategic geography. I have long fought to fully fund the acquisition of Arctic-capable icebreakers instead of the piece-meal approach that the Administration has been taking for the last eight years.” The bill, approved 30-0, provides $515.9 billion in base Department of Defense funding and $58.6 billion in Overseas Contingency Operations (OCO) funding. The bill recommends $20.5 billion for Navy shipbuilding, an increase of $2.1 billion and three ships over the budget request. Besides the icebreaker, the shipbuilding program includes two Virginia class submarines, three DDG-51 destroyers, three Littoral Combat Ships, and one LHA amphibious assault ship. The bill also fully funds advance procurement activities for the Ohio replacement submarine and aircraft carrier replacement programs.

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Shipping

Navig8 Chemical Tankers was one of the top sellers of tankers

How Are Tankers Valued? Who were the Top Sellers of Tankers This Year? By Craig Jallal, Senior Data Editor, VesselsValue

n this article we explain how VesselsValue produces tankers valuations, and look at some interesting recent sales. The birth of VesselsValue was driven by timing and need. In 2008, the crisis in the financial market extended into shipping. The dry bulk sector and the containership sector were hit the hardest, and while tankers remained relatively buoyant, banks needed to assess their capital commitments against the value of the assets being financed and being used as collateral. However, in the depth of the crisis (2010 / 2011), ship brokers were telling clients they could not value the ships as there had been no recent sale or “last done” in ship broker speak. Richard Rivlin, a sale and purchase broker with 30 years’ experience, had long felt that an automatic valuation system could be built, which would produce valuations in any market, at any time. Luckily, his brother is a Professor of Mathematics, and together they designed and built such a system. It quickly became apparent that the highly detailed multi-level regression model was far too complex for normal spreadsheets, and a specialist modelling company was employed to develop the model. The model is fed by two databases. One contains the features and specification of the ships arranged in a unique structure that allows the computational model high-speed access. This database is researched and compiled by VesselsValue’s own team of 30 researchers and analysts on the Isle of Wight in the UK. The second database consists of sale and purchase transactions and charters. Both feed the mathematical model which is operated by a team of quantitative analysts. The aim is to produce an instant, accurate and always available online ship valuations for the banks and finance houses, that form the main customers of VesselsValue.

Tankers Valuation According to VesselsValue, five factors make up a valuation: 1. Type (VLCC, Suexmax, etc.) 2. Features (shipyard, hull, etc.) 3. Age 4. Cargo Capacity 5. Freight Earnings Each factor is broken down into further elements that are scored. As an asset, tankers are relatively straightforward, being highly commoditized, and standardized in terms of size ranges and specification. In part this is due to the international safety and pollution control legislation that has been forced on the tanker sector. This level of standardization makes VesselsValue task somewhat easier when it comes to scoring the factors, than offshore vessels, which have just been added to the system. In the case of tankers, there are around 140 scores. One of the most important scores is the shipyard. A vessel built in China is less desirable than one built in Japan. Here’s an example. In November 2014, the New Century-built Supramax bulker ACS Diamond was sold for $10 million. The previous week, the slightly older Japanese-built pair of Supramaxes were sold for $15.5 million each. This was an implied discount of around 40% between Japan and China. However, the shipyard scoring goes into several levels of sophistication, including how many ships the shipyard has built and when the last vessel was constructed. This model is continually updated and recalibrated overnight to give the closest possible fit to the reported sales prices. It is the analysis of the sales that can produce the weightings required for different shipyards. These are applied to all shipyards, not just Chinese shipyards. June 2016 Yearbook MARINE LOG 19

Shipping So far VesselsValue have performed over 1,000,000 valuations to date, about 400,000 a year and the number is increasing.

VV Tanker Matrix (USD/DWT) 350.00 330.00

How Accurate is VesselsValue?

310.00 290.00 270.00 250.00 230.00 210.00 190.00 170.00 150.00 2012

2013

Source: VesselsValue, May 2016

Figure 1

Figure 2

2014

2015

2016

The split of VV customers are banks and finance houses, owners and other maritime industries such as lawyers, insurers and charterers—sophisticated market participants who insist on knowing the methodology behind our valuations. But ultimately they want to know how accurate our valuations are because this will affect their bottom line. Valuation accuracy is assessed as the difference between the price a vessel is sold at, and VV valuation on the day before the actual sales date. This is expressed as a % of valuations within a certain band of accuracy and shown in a chart form. The accuracy report is available on the website.

Tanker Valuations Development According to the VesselsValue transactions database, between the start of 2012 and May 2016, a total value of $143 billion of tankers have been traded on the sale and purchase market. During that period the value of second-hand tankers has steadily increased, as can be seen from figure 1 (“VV Tanker Matrix”) below of the VV Tanker Matrix, expressed as USD / DWT. During that period, the MR tanker has been the most frequently traded tanker type, both in terms of number of sales, and value (see figure 2 “Total Value by Type of Tankers Sold 2012 to Date”). So far in 2016 (to 15 May 2016) 83 tankers with a total value of $1.4 billion, have been traded on the second-hand market, and again the MR tanker is the most popular (see figure 3 “Value of Tankers Sales Jan 2016 to YTD). Interestingly, the average age of MR2 (Chemical / Product) tankers sold in the first five and half months of 2016 is only three years-old. Altogether 17 of these vessels were sold in this period, with eight tankers being sold by owners in the USA (these were not Jones Act vessels). The majority of tankers and the largest value of tankers sold so far this year (2016) were constructed in South Korea, followed by Japan and China. As far as owners are concerned, the lead seller across all types of tankers was Chembulk Tankers, Scorpio Tankers and companies associated with the Navig8 group (see figure 4 “Top Ten Sellers of Tankers Ranked by Number of Vessels Sold”).

Recent Sales of Interest

Figure 3

Figure 4 20 MARINE LOG June 2016 Yearbook

The top three sellers have sold tankers for completely different reasons and strategy. In January 2016, Chembulk Tankers was sold by parent company Berlian Laju Tanker (BLT) to private equity investor Kohlberg Kravis Roberts (KKR). Chembulk Tankers is said to have a number of Contracts of Affreightments (CoAs) and the older tankers were surplus to requirement. This is part of the KKR growth strategy to rebuild the Chembulk Tankers f leet. KKR has also invested in a fund to invest in two Greek bank shipping portfolios. The number two top seller, Scorpio Tankers, was a tactical, opportunistic sale. The purchaser, Bahri (formerly known as National Chemical Carriers of Saudi Arabia) is on something of a buying spree. Bahri has recently purchased two VLCCs from Tanker Investments in December 2015, for a reported $77.5 million. The five 2014-built MR2 tankers were sold en bloc for $167 million are trading in the UAE under Bahri CoAs. The third most active seller, Navig8 Chemical Tankers, Inc., sold the four resales (the MR2 tankers are due for delivery in 2017) under a ten-year bareboat charter (with purchase option) for a reported $35 million each. This was an internal sale within the group, and part of a longer term strategy. ■

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U.S. SHIPBUILDING

The Louisiana is the third in a series of LNG-Ready product tankers being built for Crowley

Orders for new ships slow, but owners active in sales and purchase By Craig Jallal, Senior Data Editor, VesselsValue

xclusive of passenger and offshore vessels, as of mid-March, there were 160 ships (bulkers, tankers and gas carrier vessels) on order at shipyards or on the water for U.S. owners, according to leading valuation provider VesselsValue. The total capacity of these vessels is just over 7 million deadweight tons (dwt), with a total current value of $4.5 billion (See Table 1: Value of U.S.-Built Shipping). Globally, the United States (as a shipbuilding nation) is ranked in 11th place (in terms of dwt) and a respectable sixth place behind South Korea, Japan, China, the Philippines, Germany, and Turkey in terms of the current value of the U.S. built fleet. Based on the volume of ships on the water, the most prolific U.S. shipbuilder has been NASSCO, San Diego, CA, a unit of General Dynamics. NASSCO also operates shipyards on the U.S. East Coast in Mayport, FL, and Norfolk, VA. As of mid-March, VesselsValue estimated the ships being built at NASSCO had values of around $900 million (this value excludes delivered ships). NASSCO recently launched the 53,700 dwt MR tanker Independence, which VesselsValue currently values at $133.45 million (this excludes a premium for the Jones Act). The Independence will be joined by two MR2 tankers on order at NASSCO for Seabulk Tankers. As of mid-March, NASSCO had four MR2 tankers on its order book for American Petroleum Tankers. The San Diego shipyard delivered two LNG-fuelled 3,100-TEU

containerships, including the lead of the Marlin class, the Isla Bella, in November 2015 to Tote Maritime. The Isla Bella, along with its sister, Perla del Caribe, are now operating between Jacksonville, FL, and San Juan, PR. The only other U.S. shipyard with bulker, tanker, and gas carrier vessels currently on its order book is Philly Shipyard (formerly known as Aker Philadelphia Shipyard Inc.), Philadelphia, PA. Philly Shipyard has built product tankers, crude carriers, and containerships. The Philly Shipyard built fleet is currently valued at just over $1 billion. Its order book consists of eight 50,000 dwt MR tankers and this design has been classed by ABS as LNG-Ready, which provides the owner with the flexibility to choose to convert the ship to dual fuel operation in the future. In early May, Crowley Maritime Corporation christened the Louisiana, the third of four LNG-Ready product tankers, at the Julia Street Cruise Terminal in New Orleans, LA. Like its sisters, the 600 ft Louisiana is based on a proven design from Koreaâ&#x20AC;&#x2122;s Hyundai Mipo Dockyards (HMD) design. It can carry crude oil or refined petroleum products, as well as other chemical products. Construction management services were provided by Crowleyâ&#x20AC;&#x2122;s marine solutions group, which provides oversight and management in shipyards across the country for Crowley and other third-party June 2016 Yearbook MARINE LOG 23

U.S. SHIPBUILDING companies. Philly Shipyard also built the tankers Texas and Ohio for Crowley, and the fourth ship in the program is under construction with delivery planned for third quarter 2016. “The christening underscores our continued commitment to building and operating innovative vessels that deliver the best possible service and efficiency for our customers who depend on us for safe and reliable transportation of petroleum products,” says Rob Grune, Senior Vice President and General Manager, Petroleum Services. “And, as is the case with its sister ships, we designed and built the Louisiana to have the capability to be converted to LNG propulsion in the future, increasing the likelihood of a long service life as new emissions regulations are developed in the years ahead.”

Jones Act Fleet Considerably Older Than World Fleet It’s no secret that the U.S. Jones Act fleet is considerably older than the average age of the global, non-U.S.-built fleet. The current U.S.built fleet has an average age of 33 years old versus 13 years old for the global fleet. The most recent ships produced by U.S. shipyards have been tankers and the average age of U.S.-built tankers is only five years older than the global fleet. However, there has been virtually no U.S. investment in bulkers (many of them are part of the Great Lakes fleet). The U.S.-built bulker fleet has an average age of 46 years old versus nine years old for the global fleet. Even a relatively modern ship type, such as containerships, the average age of the U.S.-built fleet is 32 years old, considerably older than the average of 11 years old for non-U.S.-built vessels.

Top Ten U.S. Shipowners According to VesselsValue, the Top Ten U.S. shipowners ranked by value control around half the capacity (48%) of the U.S. fleet (see Table 2. U.S. Shipowners Ranked by Fleet Value). The Top Ten Shipowners are tanker companies or the tanker arms of oil majors. The current most valuable U.S.-operated fleet is that of American Shipping Co., a Norwegian public company controlling a fleet of 10 MR2 tankers built by Philly Shipyard and leased out to OSG, which charters them out to Jones Act qualifying companies. VesselsValue estimates this fleet is worth $830 million. The second most valuable U.S. fleet belongs to new entrant American Petroleum Tankers, which is a subsidiary of Kinder Morgan Terminals, with its f leet operated by Crowley Maritime Corporation, Jacksonville, FL. This f leet will be supplemented by MR tankers currently on NASSCO's order book. However, in the last 12 months, the U.S. order book has been very quiet, with no bulker, tankers or gas carriers ordered.

Sale And Purchase Activity If there is one area where U.S. shipping has been active, it’s been in the sale and purchase market. The dire dry bulk market is one of the driving forces behind Scorpio Bulker selling 25 vessels in the last 12 months (March 2015 to March 2016) for a combined value (at the time of sale) of $878 million (where the sale price is undisclosed, the VV Value the day of the sale is used). Altogether 88 vessels have been sold by U.S. owners for a combined value (where the sale price is undisclosed, the VV Value the day of the sale is used) of $3.4 billion (see Table 3: Sales by U.S. Owners). Of course, under the Jones Act, U.S. companies cannot purchase foreign-built vessels to operate in Jones Act trade routes. This reduces the pool of potential purchases, which in the last 12 months (March 2015-March 2016) have been limited to eight vessels, including four MR tankers from Philly Shipyard purchased by Kinder Morgan for a reported $568 million (See Table 4: Purchases by U.S. Owners). ■ 24 MARINE LOG June 2016 Yearbook

Table 1: Value of U.S.-Built Shipping # of Total Value Total DWT Vessels ($ Mil.)

Vessel Type Tanker Container LNG Bulker Small Dry Grand Total

62 28 10 43 17

$3,953 $338 $172 $96 $19

3,823,300 850,100 728,600 1,800,000 172,000

160

$4,579

7,374,000

Table 2: U.S. Shipowners Ranked by Fleet Value Shipowner

# of Total Value Total DWT Vessels ($ Mil.)

% of Fleet

American Shipping Co. American Petroleum Tankers ConocoPhillips BP SeaRiver Maritime OSG Marathon Petroleum Kinder Morgan Matson Navigation U.S. Government

$829

467,600

18%

$574

296,700

13%

5 4 2 2 2 2 13 13

$530 $442 $354 $249 $248 $203 $164 $138

708,500 772,400 230,000 93,600 100,000 91,600 423,200 322,200

12% 10% 8% 5% 5% 4% 4% 3%

Grand Total of Fleet

160

$4,579

7,374,000

100%

Table 3: Sales by U.S. Owners (March 2015-March 2016) Shipowner

Vessels Sold

Total Value ($ Mil.)

25 6 6 13 3 3 3 2 4 2

$878.1 $355.6 $194.6 $157.3 $108.0 $104.2 $85.7 $77.8 $75.6 $75.0

160

$4,579.0

Scorpio Bulkers Oaktree Capital Management Scorpio Tankers Principal Maritime CarVal Investors International Shipholding Corp. Seachange Maritime Apollo Fund Philly Tankers York Capital Grand Total

Table 4: Purchases by U.S. Owners (March 2015-March 2016) Shipowner

Vessels Purchased

Total Purchased ($ Mil.)

Kinder Morgan Genco Shipping & Trading Scorpio Tankers Skaarup Shipping Corp.

4 2 1 1

$568.0 $68.5 $58.5 $2.4

Grand Total

$697.4

Source: VesselsValue (as of March 2016)

U.S. SHIPBUILDING

When it comes to Navy Shipbuilding and Congress, you don't always get what you ask for

Threats grow, but so do Navy ship costs Aggressive moves by Russia, China will change the Navy’s needs for its Force Structure Assessment By: Nick Blenkey, Web Editor

ven before it was formally submitted as the Annual LongRange Plan for Construction of Naval Vessels for Fiscal Year 2016, a draft of the Navy’s latest shipbuilding plan was floating around Washington and being seen by defense commentators as likely to have a short shelf life. The plan holds to the Navy’s goal of reaching a 308-ship battle force over the next five years. But an ongoing Force Structure Assessment (FSA) is under way that will likely see that number raised, the U.S. Naval Institute quotes naval analyst Bryan Clark of the Center for Strategic and Budgetary Assessments as saying. Clark, a former special assistant to past Chief of Naval Operations Adm. Jonathan Greenert, told USNI News that the plan is “very provisional until the Navy comes up with a new set of force structure requirements.” He added that Congress is “already weighing in with additional ships they want to build, and the new administration is going to obviously have things they want to do differently.” The draft is an updated version of the plan submitted last year and continues to be based on the 2012 Force Structure Assessment (FSA) “to meet strategy and presence requirements and maintain a healthy industrial base.” The problem with this is that the world has gotten a lot more dangerous since the 2012 FSA was compiled. Among other things, Vladimir Putin has invaded and annexed Crimea and subsequently pulled out various ploys from the Soviet era Cold War play book and China has been building whole new Spratley islands and sticking airstrips on them, essentially creating large (if stationary) aircraft carriers. Turn on the BBC World Service News any day and you’ll be able to add to the list. The upshot is that the next FSA is likely to produce a need for a larger submarine f leet and more cruiser/destroyer-type vessels (CRUDES) than envisaged in the 2012 FSA.

Meantime, the draft shipbuilding plan says that since the 2012 FSA was completed there have been some minor adjustments in the Navy’s forward deployed posture, warfighting prioritization, and structure that have seen the 2012 FSA objective for 306 ships increased to 308 as a result of these changes. Here’s what they consist of: • Fleet ballistic missile submarines 12 • Nuclear-powered aircraft carriers 11 • Nuclear-powered attack submarines 48 • Nuclear-powered cruise missile submarines* 0 • Large, multi-mission, surface combatants 88 • Small, multi-role, surface combatants 52 • Amphibious Warfare ships 34 • Combat logistics force ships 29 • Support vessels 34 While all this is aimed at producing pretty much the fleet seen as needed in the 2012 FSA, it seems evident that the next FSA will actually result in a requirement for a larger battle force.

Lawmakers Seek More Ships The FY 2017 Defense Authorization Act is now churning through the Congressional hopper and legislators are intent on getting ahead of the curve. But you don’t always get what you ask for—and when it comes to Navy shipbuilding and Congress sometimes it will be just a bit different, even when it’s more. The House last month authorized $20.6 billion for shipbuilding, $2.3 billion above the President’s budget. As we’ll discuss later, how it wants to find the money is controversial and sets things up for resolution by a House-Senate conference and possibly even a veto. June 2016 Yearbook MARINE LOG 25

U.S. SHIPBUILDING Seapower and Projection Forces Subcommittee Chairman Rep. Randy Forbes, (R-VA) says that between the shipbuilding account and the National Sea-Based Deterrence Fund (set up in the FY 2015 act as a holding fund dedicated to the Ohio replacement ballistic missile submarine program), that $20.6 billion is the highest level of shipbuilding funding, accounting for inflation, since President Reagan was in office. In add it ion to shif t i ng t he a mou nt requested by the President for the Ohio replacement into the NSBDF, the House measure expands the authorities in the NSBDF to include “continuous production” of Ohio class replacement submarines, allowing the Navy to procure components such as missile tubes at substantially lower cost. Additionally, the measure: • Preserves the 10th aircraft carrier air wing; • Authorizes the construction an amphibious assault ship, LHA (8); • Authorizes the refueling and complex overhaul (RCOH) of five aircraft carriers; • Retains 11 cruisers in the f leet that the Navy proposed to induct into long-term modernization; • Prohibits the retirement of mine countermeasures ships until replacement capability is fielded;

• Funds an additional amphibious ship to

address the shortfall against the Marine Corps’ requirements; Funds another destroyer to better sup• port Nav y operations in a contested environment; • F u n d s a d v a n c e d p r o c u r e m e n t f o r CVN-81 to support a move to four-year centered carrier construction and to create economies with CVN-80; • Authorizes the construction of a National Security Multi-Mission Vessel; and • Funds another LCS, taking the FY 2017 total to three. The House measure also includes an amendment by Rep. Bradley Byrne (R-AL) that would prevent any funds from being used to “select only a single contractor for the construction of the Littoral Combat Ship or any successor frigate class ship program” until the Secretary of the Navy certifies a number of requirements to Congress— effectively delaying progress on the Navy’s down select from two LCS variants to one until the next administration takes office.

Senate Version Still In Works Right now, the Senate Armed Ser vices Committee’s version of the Act was coming up for consideration by the full Senate. As

drafted, it contains a number of similarities to the House version, with one major difference being the future of the LCS. Among other items on the committee’s list: • $5 billion to procure two Virginia-class nuclear attack submarines and provide for advance procurement of future Virginia-class submarines; • $1.6 billion to procure the next amphibious assault ship, including incremental funding authority for FY 2017 and FY 2018; $1.5 billion to fully support the Ohio• class submarine replacement program. • $3.3 billion for the procurement of two Arleigh Burke-class destroyers, including a $50 million increase for incremental funding of a fiscal year 2016 destroyer; • $75 million for the development and procurement of the amphibious ship replacement, known as LX(R); and • $199 million in Chief of Naval Operations and Commandant of the Marine Corps unfunded priorities, including: a ballistic missile defense destroyer upgrade, surface electronic warfare improvement program block 3 installation, and a surveillance towed array, and F-35B spares. In provisions relating to the Ford-class Aircraft Carrier, the Senate Arms Service Committee version directs a review of the

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26 MARINE LOG June 2016 Yearbook

U.S. SHIPBUILDING ships’ Advanced Arresting Gear (AAG) program and meantime prohibits future AAG procurement funding, saying, the acquisition “unit cost of this troubled program has breached critical cost growth thresholds, warranting a reassessment of the program and a consideration of alternatives.” It limits funds until the Nav y establ i s h e s l owe r e nd c o s t t a r ge t s of $ 11 billion and $12 billion for the USS John F. Kennedy (CVN-79) and USS Enterprise (CVN-80), respectively. There’s no good news for LCS fans in the Senate. Its bill prohibits revisions to or deviations from the current LCS acquisition strategy, which includes procurement of both LCS designs in 2017, a down-select to a single variant no later than 2019, and a reduction in the inventory objective to 40 ships. It also reduces authorization for the LCS by $28 million “due to unjustified unit cost growth” and cuts $59 million for LCS mission packages. What’s more, it prohibits the use of funds to enter into or prepare to enter into a solesource contract for a Joint High Speed Vessel (JHSV) or Expeditionary Fast Transport (EPF). “In the last two years, funds were appropriated for two of these ships that Navy did not request and were not authorized by the NDAA,” says the committee. “This provision is a necessary safeguard to prevent wasteful earmarks.” The Senate measure directs the Secretary of the Navy to report to Congress on how the Navy will transition the Ohio-class replacement submarine program from cost-plus to fixed-price contracts as soon as possible. Picking up on a March 2016 GAO report that said the Navy should reconsider its approach to warranties for correcting construction defects, the Senate Armed Services Committee draft “directs the Secretary of the Navy to structure contract terms such that shipbuilders do not earn profit for correcting construction deficiencies following delivery that are determined to be their responsibility.” The Senate version authorizes an extension to a Jones Act waiver pertaining to the procurement of dry docks, which would be necessary to build Navy ships. The Senate Armed Services Committee measure also would slow the Nav y’s efforts to take existing ships out of service. The measure would: 1. Prohibit funds from being used to inactivate guided missile cruisers or dock landing ships or place ships in these classes into an extended modernization period, unless prescribed criteria are met; and 2. Prohibit funds from being

used to inactivate existing mine countermeasures systems until equivalent or better capabilities are fielded.

Paying For It All While the levels of both House and Senate Armed Ser vices Committees’ total defense budget proposals are in line with the Administration’s total, the House version only does so with a bit of smoke and mirrors: it funds the Pentagon’s Overseas Contingency Operations (OCO) only until April 20, saying “The Chairman’s expectation is that a new President will assess the national security landscape and submit a supplemental budget request—as is traditional in the f irst year of a new administration.” Calling that move “budget gimmickry,” Secretary of Defense Ash Carter said, in a speech delivered May 17, that “it raids war funds in a time of war, when we have men and women deployed in operations in Afghanistan, Iraq and Syria. It also threatens the budget stability that undergirds all of the reforms, investments and initiatives that the Pentagon has been working on. And it threatens the readiness of the force—an actual contrast to the narrative its proponents propound.” Secretary Carter noted that the passage

of last fall’s Bipartisan Budget Act “gave us some much needed stability to plan and build for the future...” “That budget deal set the size of our budget,” he continued, “and w ith this degree of certainty, we focused on its shape and building the FY 2017 budget we’ve submitted and I’ve described—changing that shape in fundamental but carefully considered ways to adjust to a new strategic year end to seize opportunities for the future. “But the budget stability that was supposed to last for two years is already under threat after only six months with a proposal to underfund DOD’s overseas warfighting accounts by $18 billion and spend that money on programmatic items we didn’t request. This approach is deeply troubling. “If a final version of the NDAA reaches the President this year and includes a raid on war funding that risks stability and gambles with war funding, jeopardizes readiness and rejects key judgments in the department,” said Secretary Carter, “ I’ll be compelled to recommend that he veto the bill. I’m hopeful, however, that we can work with Congress to achieve a better solution. Our warfighters deserve nothing less because our mission is a deadly serious one.” ■

FENDERS ON THE GO

June 2016 Yearbook MARINE LOG 27

WORLD SHIPBUILDING

Shipyards worldwide are taking a major hit

Shipyards struggle amid market downturn Newbuilding orders lowest since the 1980s

uring the pre-SMM 2016 Press Conference on June 2, maritime economist Martin Stopford, NonExecutive President of Clarksons Research Services, said this year shipyards worldwide have experienced the lowest newbuilding orders since the 1980s. Stopford said orders of 14.2 million deadweight tons (dwt) were placed as of the end of April 2016. On an annualized basis that equates to 42 million dwt—the lowest annual rate since 1998 when orders were placed for 37 million dwt of ships. In stark contrast, the average number of ship orders since 2009 has been 94 million dwt. Shipyards worldwide are expected to deliver about 103 million dwt of ships this year and 88.9 million dwt in 2017. Stopford provided a perspective on the current weak shipping markets showing the average earnings of tankers, bulkers, containerships, and gas carriers have fallen to levels not seen since 2003, according to the Clarksea Index. The average earnings per day in late May fell to $8,900 per day. In 2009, average earnings per day were at $22,000 per day. There is clearly an overcapacity of ships. He pointed to declining trend in sea trade growth, which is projected at 2 percent this year.

28 MARINE LOG June 2016 Yearbook

Smart Shipping’s The Answer

According to Stopford, one strategy to cope with these difficulties is Smart Shipping. The rapidly evolving information and communications technology (ICT) has enormous potential to improve fleet operations and transport productivity. It will play a crucial part in the survival strategy for shipping, said Stopford. Stopford outlined the Smart Shipping Toolbox, which includes:

Compiled by Marine Log Staff 1. New Inmarsat Ka band global systems broadband data to be collected, processed and beamed ashore; 2. Telematics: Sensors generate digital information about equipment and the ship, making it cheaper and better than ever; 3. Data storage: Cloud storage makes it easy to store data generated by sensors. That “Big Data” is analyzed to improve performance; 4. Smart phone-style apps and touch s cre ens: Provide ways to do sp e cif ic

WORLD SHIPBUILDING information jobs without the assistance of big computer systems; 5. Information systems: Provide management with the insight into what’s going on and performance levels; 6. Automation: Feedback loops allow automation of many tasks (navigation, maintenance, operations, etc.)

Shipyard Capacity Shrinks

Shipyard capacity has been reduced by 20 percent with the closure of 581 “uneconomic” shipyards, but ordering levels for new ships are well below world capacity, says Stopford, so shipyards and marine equipment manufacturers are going to face a challenging year. In 2009, there were 992 active shipyards. Now, there are 423 active yards. Based on the percentage of ship launches in the year by gross tonnage (GT), Chinese shipyards had 37 percent market share, Korea 35 percent, and Japan, 19 percent. Korean shipbuilders have been particularly hit by the ordering slump. As we went to press, STX Offshore & Shipbuilding Co., filed for receivership. The shipbuilder could be liquidated or see its debt restructured, depending on what the court decides. STX Offshore & Shipbuilding has been under the control of creditors since 2013. The shipbuilder had losses in excess of 300 billion won last year, and 1.5 trillon won in 2014. The top three shipbuilders in Korea, Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering, and Samsung Heavy Industries, have all been hurt by the drop in oil prices as oil majors have cut exploration and production expenditures. All three had repositioned themselves towards building higher valued vessels geared towards energy production after the fiscal crisis of 2008 amid competition from much lower cost Chinese shipyard rivals. Now, however, international drilling contractors have delayed or canceled orders for drill ships and offshore oil production facilities. The shipyards themselves have all been plagued by falling order books, increasing competition, and growing labor issues. The Big Three are under intense cost-cutting initiatives. There is expected to be consolidation among Korea’s smaller shipyards. China has also seen shipyard capacity reductions. As of mid-March, the Top Five Shipbuilder by Orderbook Value were: HHI, with $24.42 billion, Daewoo, $19.9 billion, China State Shipbuilding, $15.07 billion, Samsung, $10.47 billion, and Japan’s Imabari, with $9.89 billion. ■

Cruise ship order book swells to $40 billion Cruise travel continues to grow and expand at a record pace. This year, 24 million passengers are expected to take a cruise vacation, up from 23 million in 2015, according to the Cruise Lines International Association (CLIA). Cruise ship owners are deploying more ships to Australia, China, and Asia to tap into the pent up demand for cruise travel and ordering new ships to accommodate the growth. As of last year, there were 471 cruise ships in service, with 27 new ocean, river and specialty ships scheduled to be deployed this year. Just last month, Royal Caribbean Cruises Ltd. signed a Memorandum of Understanding (MOU) with French shipbuilder STX France to build a fifth Oasis Class ship for delivery in the spring of 2021 for its Royal Caribbean brand, and two additional Edge-class ships, scheduled for delivery in the fall of 2021 and 2022, for its Celebrity Cruises brand. STX France is completing the design phase of the first prototype 2,900-passenger Edge Class ship and is set to start production this fall for a delivery fall 2018. If confirmed, the contracts with STX France would swell the global order book to 59 oceangoing cruise ships, with a total of 176,755 passenger berths. The value of the order book is in excess of $40 billion. STX France says that, when finalized, the three orders will secure the shipyard’s order book through 2023. Overall, STX

would have 12 cruise ships on order, tied with Germany’s Meyer Werft for second most to Italy’s Fincantieri, with 22 cruise ships on order. Meyer Werft’s Finnish yard, Meyer Werft Turku, has six ships on order, with the remainder of the order book divvided up between Germany’s Lloyd Werft, Croatia’s Uljanik and Brodosplit yards, and Japan’s Mitsubishi Heavy Industries. Not included in those figures is what would be the first cruise ship built in Russia in decades. Last month, Aleksey Rakhmanov, President of Russia’s United Shipbuilding Corporation (USC), says the company was to start construction this year of a cruise ship for an unspecified customer. No further details were available. The market for river cruise ships is just as strong, with 40 vessels on order. In the U.S., American Cruise Line, Guilford, CT, expects to take delivery of the 170-passenger coastal cruise ship American Constellation in April 2017. The ship is currently under construction at its sister company, Chesapeake Shipbuilding, Salisbury, MD. Nichols Brothers Boat Builders, Whidbey Island, WA, won a $94.8 million contract to build two 100-passenger, 238 ft coastal cruise ships for Lindblad Expeditions Holdings, Inc. Set for delivery in the second quarter of 2017 and 2018, respectively, the ships will operate between Baja, Costa Rica, and Panama during the winter months and Alaska, Oregon, Washington and Canada in the summer months.

Cruise travel continues to rise at a record pace

June 2016 Yearbook MARINE LOG 29

TUGS & BARGES Oceanus is the third of four escort tugs for Suderman & Young being built by Eastern Shipbuilding

Evolving with the Market Influx of new technologies reshapes tug and barge industry Compiled by Marine Log Staff

ngineering company GTT has more than 50 years’ experience in the design of membrane cargo containment systems, but one project underway right now in Orange, TX, is quite unique. That’s because it’s the first Liquefied Natural Gas (LNG) bunker transport barge in the United States. One of 118 GTT projects currently underway worldwide, the tank barge is taking shape at Conrad Orange shipyard, Aziz Bamik, General Manager of GTT North America, told delegates at Marine Log Tugs & Barges 2016 Conference & Expo held last month in Seattle. While Conrad has decades of experience building all types of tank barges—dirty oil, products, chemicals, and LPG—this is the first time that it is building a vessel with one of GTT’s Mark III Flex membrane tank technology. Following a certification process, Conrad signed a license agreement with GTT back in January 2015 to construct the Mark III Flex. Designed to operate in inland waterways, bays, harbors, and U.S. coastal waters, the new 2,200 m3 tank barge will be used to refuel TOTE’s two 3,100-TEU LNG-powered containerships. The barge will travel about a mile from its mooring facility to fuel the two Orca Class containerships, which 30 MARINE LOG June 2016 Yearbook

operate out of the Port of Jacksonville, FL to San Juan, PR. The barge is designed not as an Articulated Tug Barge unit, but rather to be towed by hawser wire, says Bamik. In anticipation of increasing demand for LNG as a marine fuel, Bamik also mentioned that GTT North America was working with Conrad on a larger Articulated Tug Barge unit that will have a capacity of 4,800 m3, with two GTT Mark III Flex Cargo Containment System tanks. The 319 ft barge would have cold LNG delivery with onboard reliquefaction.

Coming Demand for LNG The interest in LNG as a marine fuel seems to have waned in the U.S. with the drop in the price of oil. Currently, five vessels burn LNG in the Jones Act market. Besides TOTE’s two containerships, the Harvey Power, the third in a series of six dual fuel Platform Supply Vessels for Harvey Gulf International Marine, New Orleans, recently entered service in the Gulf of Mexico under charter for Shell. Next year, Crowley Maritime will take delivery of two Commitment Class Container Roll-on/Roll-Off (CONRO) ships for Puerto Rico. Those are being classed by DNV GL. All the other Jones Act LNG fueled

vessels are being built to ABS class. Additional LNG-Ready classed tonnage delivered or being built by General Dynamics NASSCO in San Diego and Philly Shipyard Inc. in Philadelphia could grow the LNG-fueled Jones Act fleet if converted in the future. TOTE is also converting its two Orcas Class RO/RO ships for Alaska service in Singapore. Globally, there are about 77 gas-fueled vessels in operation and another 79 confirmed newbuildings as of March 2016, according to Anthony Teo, Technology and LNG Business Development Manager, North America, DNV GL. Teo told delegates that DNV GL estimates there will be 360 LNG fueled vessels in operation by 2020. Furthermore, he pointed out that the widespread adoption of LNG as a fuel is being hindered by the lack of gas fuel bunkering facilities in ports. A panel of naval architects, LNG reliquefaction technology providers, and regulators discussed more in-depth the current hurdles hindering the expansion of the adoption of LNG as a marine fuel for the tugs and towboats in the Jones Act market. Panelist Rafael Riva, Mar ine Business Development Manager, ECA, Lloyd’s

TUGS & BARGES Register pointed out that the technology was well proven in Europe. The first LNG tugs, for example, were built in Turkish shipyard Sanmar for Norway’s Bukser og Berging AS and have been in service for Statoil AS since 2014. The DNV GL class tugs are equipped with lean burn gas engines from Rolls-Royce and Rolls-Royce azimuthing thrusters. The LNG powered propulsion systems does require more space. The Shearer Group’s Engineering Manager Joshua Sebastian, PE, mentioned the complexities of integrating the necessary fuel tank, piping, and control systems required to burn LNG on the smaller towboat platform. Sebastian’s company, naval architectural firm The Shearer Group, has been contracted for the conversion of a 65-foot-long conventional diesel-powered towboat to burn LNG. LNG-powered tugs also require small volumes of fuel with a dedicated delivery solution. Fueling can be accomplished either via tanker trucks, shore LNG storage tanks, portable gas fuel tanks or ship to ship or barge to ship transfer. Panelist John Dwyer, Officer in Charge, Marine Inspection/Chief, Inspection Division at USCG Sector Puget Sound, provided the regulatory view on the development of LNG as a marine fuel in the U.S. The U.S. Coast Guard has issued a number of policy letters and guidance on the design and operation of ships using LNG as a marine fuel, as well as ships and facilities transferring LNG as fuel. The U.S. Coast Guard has addressed designs and facilities on a case-by-case basis. Waller Marine’s Beau Berthelot pointed out that his company has worked on a number of refueling solutions. Waller Marine, for example, has been granted an Agreement in Principle (AIP) by ABS for a new liquefied natural gas (LNG) and regasification articulated tug barge concept. The vessel has the ability to load LNG from existing LNG terminals, liquefaction facilities or traditional LNG carriers and transport the LNG to existing tanks, traditional LNG carriers, trucks or marine vessels using LNG as a fuel. The barge also is equipped for regasification of LNG directly to a pipeline or to a power plant. An additional feature will be the use of natural gas as a fuel in the dual fuel engines of the tug to drive the tug-barge unit. The benefit of the LNG Articulated Tug and Barge Regas Vessel (ATB RV) is that it allows LNG to be moved and delivered more efficiently on a small-scale basis in locations where large LNG infrastructure would be cumbersome, costly and time consuming. Another possible solution for small footprint applications mentioned by panelists David Grucza, Director, Drilling and

Marine U.S., Siemens, and Michael Walhof, Sales Director, Distributed LNG Solutions, Dresser-Rand, a Siemens company, was Dresser-Rand’s LNGo system—a modularized, portable natural gas liquefaction plant. This point-of-use production plant is a standardized product made up of four packaged skids: a power module, compressor module, process module and a conditioning module. The natural gas consumed powers the unit and is also used as the process refrigerant to eliminate complexity and maintenance.

Shipyards Continue To Be Busy Meanwhile, U.S. shipyards continue to book orders for conventionally powered harbor tugs and ATB units. The continued orders for ATBs, in particular, are in response to and increased demand for transporting refined products in the U.S. Just last month, Gunderson Marine, Portland, OR, secured an order to build two 82,000 bbl, 430 foot-long oceangoing tank barges for Harley Marine Services, Inc., Seattle, WA. The tank barges will be part of an ATB unit. Construction on the barges will begin this year, with delivery of both vessels set for the second half of 2017. As of press time, Harley Marine Services was negotiating with a Gulf Coast shipyard for the construction of the ATB tugs that would be coupled to the tank barges being built by Gunderson. Over the past nine months, Gunderson Marine has delivered two 578 ft ATB oceangoing barges for chemical and oil service for Kirby Offshore Marine. For its tank barges, Kirby Offshore Marine took delivery of two 10,000 hp ATB tugs from Nichols Brothers Boat Builders,

Whidbey Island, WA. Speaking at Marine Log Tugs & Barges 2016, Nichols Brothers Boat Builders President & CEO Gavin Higgins said that ATBs enjoy several cost advantages over coastal tankers when it comes to moving refined products. Additionally, ATBs are more ship shape, offering speed advantages over towed tank barges. The shipyard has also signed a contract with Kirby for two line haul tugs, as well as two 8,000 hp ATB tugs based on a design by naval architect Robert Hill of Ocean Tug & Barge Engineering. The companion tank barges are being built by Vigor.

Fincantieri Bay Shipbuilding Fincantieri Marine Group’s Fincantieri Bay Shipbuilding (FBS), Sturgeon Bay, WI, has delivered the Articulated Tug Barge unit (ATB) Barbara Carol Ann Moran and the 110,000-barrel ocean tank barge Louisiana to Moran Towing Corporation, New Canaan, CT. The 5,300-HP, 121-foot ATB tug Barbara Carol Ann Moran is certified ABS Class +A-1 Towing Service, +AMS, and is equipped with state-of-the-art navigation and communications technology. The Louisiana is 468 ft x 78 ft. The ATB unit will work the East Coast of the United States and the Gulf of Mexico. This is the yard’s third delivery to Moran under a 2014 contract, with a tank barge delivered in May 2015, and another ATB— the tug Leigh Ann Moran and tank barge Mississippi—delivered December 2015.

Vane Brothers Series at St. Johns Vane Brothers, Baltimore, MD, continues to invest in new tonnage. It has a long

The Hudson was recently delivered to Vane Brothers by St. Johns Ship Building

June 2016 Yearbook MARINE LOG 31

TUGS & BARGES running newbuild program at Chesapeake Shipbuilding in Salisbury, MD, where it is constructing a series of 3,000 hp ATB tugs and has now added the second of eight 4,200 horsepower tugboats from St. Johns Ship Building, Palatka, FL. The new tug, Hudson, is the second of Vane’s Elizabeth Anne Class, under construction at St. Johns Ship Building. Lead vessel of the class, the Elizabeth Anne, was delivered in January, while the third in the series, the Baltimore, is set for completion this summer. The new tug will be paired with the Double Skin 601, the first in a new series of 55,000 bbl barges and will be followed later this year by the Double Skin 602, both built by the Conrad Deepwater South Shipyard in Amelia, LA. Designed by Frank Basile, P.E., of Entech Designs, LLC, Vane Brothers’ Elizabeth Anne Class tugboats measure 100 feet long and 34 feet wide, with a hull depth of 15 feet. The Hudson is powered by two Caterpillar 3516 Tier 3 engines, each generating 2,100 horsepower at 1,600 rev/min. Two John Deere PowerTech 4045, 99 kW generators deliver service power to the boat, while a third John Deere 4045 teamed with an Allison transmission drives the chain-driven

Intercon DD200 towing winch. The Elizabeth Anne also has Reintjes marine gears supplied by Karl Senner, LLC, Kenner, LA. Meanwhile, the Double Skin 601 is configured and outfitted in a nearly identical fashion to the most recent 55,000 bbl Vane Brothers barges that were delivered in 2015 by Indiana-based Jeffboat Shipyard. Like them, the Double Skin 601 is equipped with an 8,600 BTU thermal fluid heating system, vapor control system and cargo tanks coated with International Interline 994 Epoxy Novolac. However, the Double Skin 601 has a raised forecastle bow design, which provides additional reserve buoyancy. The DS-601 and its sister, the DS-602, are both fitted with two fixed boom pedestal cranes each, Model F1-65, with a 65-foot boom length supplied by Techcrane International, Covington, LA.

New Tug for Sea Vista In early April, BAE Systems Southeast Shipyards, Mobile, AL, launched the first of two 12,000 hp ATB tugs for Sea-Vista ATB, LLC. One of the interesting features of the tug M/V Sea Power is that it has two independently controlled and operated hydro-dynamic Van der Velden Barke rudders. Independent Proportional Steering

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will allow the rudders to be actuated either independently or synchronized. The rudders were supplied by Dutch company Van der Velden Marine Systems (VDVMS) in conjunction with its U.S. representative Ships Machinery International, Inc. (SMI). The 43m x 14m ATB tug, with a draft of 6.75m, is designed by Seattle-based Guido Perla and Associates, Inc. (GPA). The tug’s power is supplied by two 4,640 kW main engines and three 250 kW main generators, with a standby emergency generator of 150 kW. The vessel uses a pin connector system between the tug and the barge and fully complies with ABS Under 90 m Rules, Maltese Cross A1 AMS ACCU Towing Vessel, SOLAS, USCG Subchapter I. Van der Velden reports that the Sea Power is the only vessel of its kind in the U.S. at present time. The tug will have exceptional maneuverability, with two independently controlled and operated hydrodynamic Van der Velden Barke rudders. Independent Proportional Steering will allow the rudders to be actuated either independently or synchronized. Van der Velden has done a lot of work to facilitate the installation of these rudders into a hull and worked closely with Guido Perla Associates Inc. and BAE Systems to assure a smooth transition from initial design to final installation. Meanwhile, Eastern Shipbuilding Group, Inc., Panama City, FL, recently launched the escort tug Oceanus for Suderman & Young Towing Company. The 80 ft x 38 ft Oceanus is the third of four tugs in a series of Robert Allan, Ltd. (RAL) designed Z-Tech 2400 class tugs currently under construction at Eastern Shipbuilding and is set for delivery in July. Another four identical tugs are being built for Bay Houston Towing Company. G&H Towing Company will operate all eight tugs and is both owners’ onsite representative and agent during the engineering, construction and delivery of the two series.

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Conrad Shipyard, Amelia, LA, recently delivered a 300-foot x 72-foot rake/box barge with a deck rating of over 6,000 pounds per square foot to ProvPort, Providence, RI, according to naval architect JMS Naval Architects, Mystic, CT. The crane barge design allows for the easy loading and unloading of cargo from ships to the dock or from ship to ship. JMS Naval Architects, Mystic, CT, engineered and designed the crane barge for the State of Rhode Island that will be used for stevedoring operations at ProvPort Inc.

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TUGS & BARGES JMS designed the barge to carry and operate the ProvPort’s 440-ton Liebherr LHM 550 mobile harbor cranes. The barge is ABS classed A1 with notation “Deck Barge,” uninspected and unmanned. JMS also created the technical specification documents to utilize for the solicitation of shipyard bids and provided owner’s representative services during the construction of the barge at Conrad Industries. The new stevedoring equipment will

34 MARINE LOG June 2016 Yearbook

modernize and enhance the port’s ability to continue its bulk material operations while expanding its capabilities to accommodate container operations; thus alleviating demand on the Port of Boston. The new crane barge will be critical for the port which has relied on 30-year-old rented crane barges that have been prone to breakdowns. The crane barges are estimated to remove on average 1,000 trucks per week off the northeast corridor highway system.

New Harbor Tugs for Baydelta, Mcallister Jensen Maritime, Seattle, is designing tractor tugs for both U.S. East Coast and West operators. One is for Vessel Chartering LLC, a wholly owned division of BayDelta Navigation. The new tug is powered by a pair of 3,385-horsepower Caterpillar 3516 EPA Tier 4 engines and is the third tugboat designed by Jensen Maritime with engines meeting EPA Tier 4 requirement. The tug was designed without ballast tanks, eliminating the need for ballast water discharge and therefore ballast water treatment systems. To maintain proper trim, the vessel will transfer fuel, as necessary. The tug is being built by JT Marine Inc. shipyard in Vancouver, WA, for delivery second quarter 2017. Jointly developed by Vessel Chartering and Jensen, the 110-ft x 40 ft tug has the ship assist and escort capabilities of smaller harbor tugs, while delivering the improved towing performance and increased range of larger ocean-going tugs. The design offers the flexibility to support ship escorts, assists and towing, with the escort capability being enhanced to provide support for assisting the large, 18,000 TEU containerships expected to make an increasing number of West Coast port calls. With an electrically powered, double drum tow winch aft by Rapp USA and an electrically powered hawser winch forward by Markey Machinery as deck machinery, the vessel will be capable of a 93-to-95 short-ton bollard pull. Both winches’ electrical power will remove any chance of a hydraulic oil spill on deck. The tug is designed to carry up to 123,000 gallons of fuel, 4,300 gallons of fresh water, and up to 4,500 gallons of urea, which is used in the main engine exhaust Selective Catalyst Reduction (SCR) treatment system used to meet EPA Tier 4 emissions requirements. On the East Coast, McAllister Towing, New York, NY, has contracted with Horizon Shipbuilding, Inc., Bayou La Batre, AL, to build it two new 100 ft x 40 ft escort tugs. The tugs will be powered by 3516E EPA Tier 4-compliant Caterpillar engines with Schottel SRP4000FP propulsion units producing 6,770 hp and 80 metric tons bollard pull. The tugs will be the first Tier IV tugs in McAllister’s fleet.They will be ABS classed Maltese Cross A-1 Towing, Escort Service, FiFi 1 and Maltese Cross AMS. The hull has been designed by Jensen Maritime for enhanced ship docking abilities in addition to direct and indirect escorting and will assist new Post-Panamax and Ultra-Large Vessels. ■

Ferries

A return to its maritime roots New York City gears up for the launch of its first citywide ferry service in 2017 By Shirley Del Valle, Managing Editor

“A

nyone studying the growth of the city …cannot help but be struck by the fact that New York was first a port before it was anything else.” This William Bixby quote adorns the perimeter of South Street Seaport in New York. The city is one with a rich maritime history—operations on both the East and Hudson River have played a vital role in shaping the city and its people’s history—but its one often forgotten by most New Yorkers navigating their way through the hustle and bustle of the concrete jungle. New York was originally the landmass south of Wall Street on the island of Manhattan, as time went on, however, New Yorkers began expanding out into the neighboring boroughs and eventually made their way to the suburbs. Today, Manhattan is still the city’s center with New Yorkers spending, on average, 40 minutes traveling to or from work each day, according to the New York Times —more than any other city in the United States. But one mode of transportation often not used by New Yorkers, are ferries operating on New York’s marine highway, the East River. Granted, most communities in the city’s five boroughs don’t have access to such ferry operations—except for Staten Island which has the government operated Staten Island Ferry, most ferry operations are private and confined to Manhattan and parts of Queens and Brooklyn—but that’s all about to change thanks to a partnership between the New York City Economic Development Corporation (NYCEDC) and Hornblower, Inc. Hornblower is no stranger to New York, the company’s subsidiary Statue Cruises currently provides transportation to the Statue of Liberty National Monument and Ellis Island. Hornblower also debuted its New York Hornblower Hybrid, a ferry/luxury yacht, back in 2011.

Citywide Ferry Promising a fast, frequent and convenient service operating year round, the Citywide Ferry will bring a total of six routes that, when combined, will cover over 60 miles of waterways. The creation of the service will help meet growing waterfront community demand, and help lighten the load for an already overworked, overcrowded, and outdated MTA subway system. Hornblower will have the option to purchase at least 17 new ferries, as well as chartering already existing ferries to help meet the system’s demand. Our sources tell us Hornblower will likely contract up to three shipyards, which will each build three to four ferries in the first round of construction. One of the shipyards is believed to be Metal Shark Aluminum Boats, Jeanerette, LA. It recently received a Small Shipyard Grant from the Maritime Administration for its Franklin, LA, shipyard. The city is providing the service with $55 million in infrastructure upgrades—this includes the building of ten new ferry landings and the repair/refitting of six others. Additionally, the city will provide $10 million for startup costs, such as vessel upgrades and ticketing machines and $30 million in operation support per year for a period of six years. NY Waterway’s East River Ferry boats are also to be fully integrated into the Citywide Ferry fleet. The transition is expected to be complete by the summer of 2017. The Citywide Ferry service will roll out in two phases. Phase one will initiate service to Astoria, South Brooklyn and Rockaway in 2017. Phase two to Soundview (Bronx) and Lower East Side will launch in 2018. June 2016 Yearbook MARINE LOG 35

Ferries

The catamaran ferries, which will be based on an Incat Crowther design, say our sources, will carry at least 149 passengers, will be fully accessible to those with disabilities, will be equipped with WiFi, and will operate using low emission engines and “Low Wake” technology. The ferries will offer passengers 360 degree views, and LED screens will be fitted on board displaying information and entertainment.

Ferry Landings for Citywide Ferry A total of 10 ferry landings—the barges were designed by Blancke Marine Services, Woodbury, NJ, and the topside outfit by project design manager McLaren Engineering—will be built for the service, and are expected to be ready in time for the service’s launch in 2017. The barges for the landings are being built at May Ship Repair on Staten Island.The ferry landings will be 35 ft wide by 90 ft long. According to NYCEDC, upon completion, the landings will be equipped with canopies and wide screens to provide passengers a sheltered space from inclement weather. Additionally, the barges will feature ticket machines and waiting areas, allowing for minimal upload impact at the landing sites, says the NYCEDC.

Helping the waterfront community The Citywide Ferry system is projected to add 155 new jobs to the New York Harbor. Additionally, Hornblower will participate in the City’s HireNYC program which will match qualified applicants from neighborhood-based WorkForce1 training centers, meaning that the folks working at the landings will be qualified people from within the communities. Further exemplifying its desire to highlight and foster the growth 36 MARINE LOG June 2016 Yearbook

of the city’s maritime tradition, NYCEDC has partnered with a number of federal, state and city agencies to launch WaterfrontNavigator.NYC—a website that will serve as an official source of information for businesses and waterfront property owners. In addition, the website will help facilitate environmental permit applications for waterfront construction.

Staten Island Ferry One constant presence on the New York Harbor has been the Staten Island Ferry (or at least some incarnation of it). Formal service on the route between Manhattan and Staten Island was established in 1817 under the Richmond Turnpike Company when it began sailing the steam-powered Nautilus. Eventually, the City of New York took over the operation in 1905 when it ordered five new ferries for the route, each named after the city’s five boroughs: the Bronx, Brooklyn, Queens, Manhattan and Staten Island. Since then, a number of new ferries have been built and retired for the now famous orange Staten Island f leet. Currently, the f leet is made up on nine ferries providing service to 22 million passengers a year. And with the population on the island growing, demand is high for a new series of ferries that provide faster, more efficient ride. Earlier this year, New York City Mayor Bill de Blasio conf irmed that the N YC Depa r t ment of Tra nspor tat ion (N YC DOT), the agency that runs the Staten Island Ferry operation, would be ordering three new ferries for the route. This would enable the operator to retire three of the older ferries in the f leet including the 51-year-old John F. Kennedy, commissioned in 1965. Additionally, the S.I. Newhouse and Andrew J. Barberi, both

Industry Day Reveals Interested Parties At the New Staten Island 4500 Class Ferry Industry Day event held last September at the Whitehall Terminal, the NYC DOT laid out details on the Ollis class project as well as its target dates. The city operator expects for bids to be due 90 days after it was advertised (sometime in the 3rd Quar ter of 2016) —we should note that as we were going to print, the NYC DOT released the Request for Bids (RFB) for construction of the ferries; and expects to issue a Notice to Proceed (NIP) contract start by the 4th Quarter of 2016. The NYC DOT expects all three vessels to be completed within 1,460 consecutive calendar days following NIP. Looking at the Industry Day’s attendance sheet, one could wager a guess on what yards will be bidding on the project. Conrad Shipyards, Dakota Creek Industries, Eastern Shipbuilding Group, Fincantieri Bay Shipbuilding, GD NASSCO, Leevac Shipyards, Vigor Industrial, and VT Halter Marine were all in attendance. The first of the three new ferries, the Staff Sgt. Michael Ollis, is expected to begin operations in 2019. The ferr y is named in honor of the late U.S. Army Staff Sgt. Michael Ollis, a native of the New Dorp area of Staten Island, who died while saving a Polish soldier in Afghanistan. He was only 24 years old at the time of his passing. Vessels two and three in the Ollis Class are to be delivered later in 2019 and 2020.

FTA awards grants, WETA expands The Staten Island Ferry system will also get a boost from the U.S. Department of Transportation’s Federal Transit Administration (FTA). Under its Passenger Ferry Grant

Photo: New York City Economic Development Corporation

A rendering of the ferry landings being built for New York’s CItywide Ferry service

commissioned in 1981 will also be put out of service. The two hold the distinction of having the highest passenger capacities, with room for 6,000 passengers. The three new 320 ft x 70 ft ferries are desig ned by Seat t le-based El liot t Bay Design Group, and are expected to bare a striking resemblance to the beloved Kennedy, w ith lots of open-air space. The ferries will also be double-ended and have capacity for 4,500 passengers. The ferries, which will be built to ABS class requirements, will be powered by Tier 4 EMD engines and Voith Schneider Propulsion drives. Glosten Inc. w ill act as the Ow ner’s Representative [Team] providing all construction management and oversight on behalf of the NYCDOT.

Ferries Program a total of ten projects received a combined $59 million in funding. Of that, $6 million will go to the NYC DOT, which will use part of the funds to replace the deck scows (barges) for the Staten Island Ferry Dockbuilding Unit as well as upgrade the Staten Island Ferry Maintenance Facility Ramps and Racks. The San Francisco Bay Area Water Emergency Transportation Authority (WETA) was also a recipient of the FTA grants. Under the program, WETA will receive $4 million to expand berthing capacity at the Ferry Terminal from its current four berths to six, and the construction of three new ferry gates. According to WETA the expansion project is set to begin Summer 2017. WETA says the project will improve landside conditions at the Ferry Terminal by providing new amenities, such as weatherprotected canopies, the construction of a new plaza area south of the Ferry building, the extension of pedestrian promenade areas and other public access improvements. The expansion will also enable WETA to stage emergency water transit services in the event of a regional transportation disruption or disaster. “Improvements to the San Francisco Ferry Building ‘hub’ is a key element to expanding our services on the Bay, and validation of the important role ferry service will play in the future of the Bay Area’s transit infrastructure,” says Nina Rannells, Executive Director of WETA. The improvements come at a time of growth for WETA. The Bay area has experienced a boost in ferry ridership over the last few years and to help meet increasing passenger demands WETA has invested in both new ferries and is currently in the process of converting/refurbishing other members of the fleet. Last April, the operator awarded Kvichak, a Vigor company, the contract to build two

CANADIAN Ferry Market heats up The Canadian ferry market is getting a boost from the government thanks to the New Building Canada Fund. Under the program, ferries, terminals and infrastructure will now be eligible for C$14 billion in funding. The news comes at an opportune time for BC Ferries as the operator is in the midst of a fleet renewal and expansion program. Currently the operator has two Spirit Class RoPax ferries lined up for midlife upgrades (MLUs) and conversion to LNG fuel. The upgrades and conversion will take place at Poland’s Remontowa Ship Repair Yard S.A. Work is expected to begin on the first ship in 2018. The two ships undergoing conversion, the Spirit of British Columbia and the Spirit of Vancouver Island, will be equipped with Wärtsilä’s gas solutions for the upgrade and conversion. Remontowa is also the builder of three new LNG-fueled intermediate class ferries (ICF), known as the Salish Class, for BC Ferries. The three new 107 m ferries will be the first in BC Ferries’ fleet to operate as dual-fuel with the ability to use Liquefied Natural Gas (LNG) or Ultra Low Sulphur Diesel Oil (ULSD). The RO/RO vessels will have capacity to carry 600 passengers and crew and 145 vehicles. The ferries will travel at a service speed of 15.5 knots. The first ICF, the Salish Orca, is scheduled to be delivered to BC Ferries in August 2016, with the second, the Salish Eagle, following in October 2016, and the third, the Salish Raven, February 2017.

being included in the New Building Canada Fund. The builder also stated that it is well positioned to offer a “Fast Track” program designed to build vessels based on existing conceptual designs at a reduced upfront costs. The shipbuilder however, hasn’t had the smoothest time with its most recent ferry project. In March it laid off more than 180 workers forcing construction of the second in a pair of ferries being built for Société des traversiers du Québec (STQ) to grind to a halt. Whether the move was strategic to either force STQ to give in to its demands—Davie claimed that STQ needed to pay more for plan modifications—or whether it was to cut costs for business, Davie won’t say. MARINE LOG reached out to Davie and at press time no comment had been made. What is known is that after the layoffs, the Minister of Transpor t, Sustainable Mobility and Transportation Electrification stepped in to mediate the conflict. To help the matter, the government made an agreement with Davie to provide a $20 million advance payment enabling the shipyard to reinstate workers and restart work on the STQ project. The 92 m ferries, the Armand-Imbeau II and its sister ship the MV Jos- Deschênes II, are the first LNG-powered ferries to be built in North America.

Work restarts on STQ Ferries Davie Shipbuilding, Lévis, Quebec, wasted no time in applauding the news of ferries

June 2016 Yearbook MARINE LOG 37

Ferries undergoing a minor refit to help improve vessel reliability and passenger amenities, according to WETA’s Ernest Sanchez. Among the improvement is the refurbishment of shafts, propellers and rudders, and the replacement of bearings; plus the overhaul of the Selective Catalyst Reduction System as well as the main engines, HVAC, electrical, plumbing, emission and fire and lifesaving safety systems. The Gemini’s conversion from a Subchapter T to a Subchapter K ferry—means an increase in passenger capacity from 149 to 225 and an upgrade of the interior spaces. The MV Gemini project will be completed this summer.

all-aluminum 400-passenger only ferries. The 135 ft x 38 ft catamarans, currently under construction—the hulls are being built by Kvichak and the superstructure at Nichols Brothers Boat Builders—were designed by Australia’s Incat Crowther, and will be equipped with MTU 12V4000 M64+ EPA Tier III engines rated at 1,950 bhp at 1,830 rev/min. The engines, coupled to ZF7600 reduction gears, will enable

the ferries to reach a top speed of 27 knots. Delivery of the ferries is expected to occur November 2016 and April 2017. Beyond the newbuilds, WETA also has two of its existing ferries, the MV Intintoli and MV Gemini, undergoing upgrades at San Diego-based Marine Group Boat Works. At press time, the MV Intintoli was nearly done undergoing a propulsion upgrade. Meanwhile, the MV Gemini is currently

While New York City and San Francisco get ready to up the ferry ante, up in the Northwest, the largest ferry operator in the U.S., Washington State Ferries continues its newbuild program in the hopes of phasing out older members of its fleet and improving safety and efficiency. The ferry division of the Washington State Department of Transportation recently announced that construction has officially began on the state’s newest ferry, the Suquamish. The keel was laid last month at Vigor’s

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Harbor Island Shipyard in Seattle, where Governor Jay Inslee, State Senator Christine Rolfes, and Suquamish Tribal Chairman Leonard Forsman struck ceremonial welds on to the keel. The Suquamish is the fourth ferry in the Olympic Class, which was designed by Seattle-based Guido Perla & Associates, Inc., and is based on the Issaquah class design, WSF’s most versatile ferry. The Olympic class ferries each have capacity for 144 cars and 1,500 passengers. While construction has officially started on the Suquamish, the third ferry in the class, the Chimacum, is about 75 percent complete. In April, Chimacum’s superstructure, built by Nichols Brothers Boat Builders, was joined to its hull at Vigor. The Chimacum is expected to go into service on the Seattle/Bremerton route in 2017. WSF is expected to take delivery of the Suquamish in the Fall of 2018. The hope for WSF is to continue “investing in long-term ferry build programs” in order to keep up with increasing ridership numbers—WSF carries more than 23 million riders and 13 million cars, annua l ly— i n add it ion to replaci ng ag i ng members of the fleet, said Matt Von Ruden, Director of vessels for WSF.

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As we were going to press, the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority was prepping to take delivery of its newest ferry, the M/V Woods Hole. Built by Conrad Shipyard, the ferry, was christened on May 20th at Conrad Aluminum, Amelia, LA. Designed by Elliott Bay Design Group (EBDG), the 235 ft M/V Woods Hole has a passenger (plus crew) capacity of 384, car capacity of 55 and the freight-vehicle deck is designed to carry ten 100,000 lb tractor-trailers. It features a highly shaped bulbous bow to help minimize wave and improve fuel efficiency. Further improving efficiency are Becker high-lift rudders, which, when working in combination with the controllable pitch propeller system and vectorable bow thruster provide the ferry with high maneuverability in a small area. Powering the M/V Woods Hole are a pair of MTU 16V4000 EPA Tier 3 engines providing 2,680 hp connected to Hundested controllable pitch propellers, generating service speeds of 12 to 14 knots and sprint speeds of 16 knots. The ferry is expected to go into service this month providing service between Woods Hole and Martha’s Vineyard. ■

Port Security

The Port of Long Beach is undergoing a massive 10-year capital investment program

Virtual Port Port of Long Beach implements GIS-based security platform for Daily Operations, By Jim Baumann, Esri Emergency Response, and Business Recovery

itting side by side, the Ports of Long Beach and Los Angeles form the San Pedro Bay Port Complex at the point where the mouth of the Los Angeles River completes its 50-mile course to the Pacific Ocean. Though operating independently, together the two facilities make up the largest port complex in the United States and are responsible for more than 40 percent of the nation’s containerized cargo shipments. With an eye to the future, the Port of Long Beach is currently involved in a massive, 10-year capital investment program that will cost more than $4.5 billion. According to Randy Parsons, Director of Security for the Port of Long Beach, “This will enhance our position of being big ship ready. We will be able to provide docking services to ships that can carry cargo up to 21,300 TEU [20-foot equivalent units]. With increasing competition and the growing size of the container ships that are transporting cargo, our expansion program is designed to sustain us as a leader in the industry for the foreseeable future.”

Implementing the Virtual Port

Occupying more than 3,200 acres (13 km 2) of land with 25 miles (40 km) of waterfront, the Port of Long Beach poses a major challenge for security operations, particularly since it is an open port that provides docking services to pleasure and small business craft and commercial cargo ships. In addition, more than 15,000 trucks and 100 trains move in and out of the port every

day. The dynamic nature of the port, with its constant movement and 24-hour operations, requires close surveillance. Like many ports, Long Beach maintains a multilayered physical security system that includes closed-circuit television surveillance, helicopter downlinks, radar tracking, sonar and other sensorbased systems. About six years ago, Esri ArcGIS was added to help visualize security operations, and the advantages of making GIS central to the port’s joint command and control center were quickly realized. In 2011, the Port of Long Beach began the development of the Virtual Port application. “Virtual Port is a dynamic, ArcGIS [software]-based system that is fundamental to our security operations,” says Parsons. “It is the essential technology of our command center and has allowed us to geospatially enable our entire security operation. So we now have more than 60 geographically referenced databases that are integrated with the existing elements of our physical security system, which increases exponentially our ability to monitor and analyze our daily operations.” Additionally, Virtual Port is used for two other primary functions: incident response and business recovery. “The beauty of Virtual Port is that we are using the same ArcGIS platform with the same databases for all three of our main functions,” says Parsons. “This means that our security systems operators have complete familiarity with the system and don’t have to switch over to something else in the event of an emergency.” June 2016 Yearbook MARINE LOG 41

Port Security A major aspect of business recovery is to get the port operational again as quickly as possible after an incident. Virtual Port can help officials determine which areas of the port are inoperable, what remains open, and what resources are available to quickly resume port operations.

Applying the ArcGIS Platform to Port Security Virtual Port’s GIS software stack makes full use of the ArcGIS platform. ArcGIS for Server is used to store data layers, services, and feeds within the port’s physical server environment, while Portal for ArcGIS creates, manages, and shares web maps through Virtual Port. This application was built with Esri ArcGIS API for JavaScript and allows users to access Virtual Port from many different environments and devices. Since it is a web app, users do not have to install any native applications or plug-ins to access Virtual Port. Each user is given credentials and a physical or soft token for a twostep authentication. Other software includes ArcGIS GeoEvent Extension for Server, which is used to display dynamic services and feeds, such as asset or automatic identification system vessel tracking. Rule-based alerts are built into GeoEvent Extension and provide instant notifications to port personnel when certain conditions occur, such as a vessel coming within the designated radius of a restricted area. Collector for ArcGIS and Operations Dashboard for ArcGIS are used in Virtual Port to support in-field data collection and situational awareness.

Interagency Collaboration and an Increasing ROI Partner agencies can connect to Virtual Port and access its common operational picture to collaborate and share information to ensure the resiliency of the facility. Port officials can also run

what-if scenarios that model chemical plumes and other hazards to help agencies prepare for and better understand the impact of potentially dangerous situations. Virtual Port functions as a bidirectional, open-source clearinghouse for the agencies that partner with the security division of the Port of Long Beach. That is, partner agencies have access to the included data, but they are also encouraged to add their own data to the system. About 12 different law enforcement agencies station personnel at the port, and they are allowed access to Virtual Port. To manage the many users, multiple security levels have been implemented. A variety of federal, state, and local public service agencies use some aspect of Virtual Port for their operations. The port also partners with agencies in the surrounding area including the City of Long Beach Emergency Communications and Operations Center, local police and fire departments, and some of the local health agencies. Though not all ports are the size of the Port of Long Beach or command the resources to implement a GIS-based security system as comprehensive as Virtual Port, Parsons indicates that the system is scalable for different-sized operations. And it can be applied to ports with different cargo operations, such as shipments of break bulk cargo or liquid natural gas. A real win, however, is the recently discovered return on investment (ROI). “While Virtual Port provides us with a clear operational picture of our extensive day-to-day security activities, we have found that it is also helping lower our business operating costs by streamlining those processes,” concludes Parsons. “This is a huge benefit to centralizing our security operations around ArcGIS because it provides us with an increasing return on investment.” ■

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PROPULSION

Azimuth thruster technology has come a long way since its debut more than 50 years ago

Azimuth thrusters change the way operators move cargo By Erik W. Larsen, General Manager-Merchant, Rolls-Royce Marine North America

ver the years, the use of azimuth thrusters has changed the way operators do business. The increased maneuverability and efficiency gains allow tug operators to do more with the same installed power. Added maneuverability can also play a role in improving safety during certain operations. With more than 50 years of developing and manufacturing azimuth thrusters, Rolls-Royce has learned a lot about the specific propulsion requirements of different types of ships and f loating structures. Working close with the customers has been a key element of the success. Steerable azimuth thrusters have come a long way since the first one went into service in 1965. With just 80 hp of thrust it was installed on a mud hopper barge in Finland to make it self-propelled. The first azimuth units specifically designed for inland waterway applications were delivered in 1976. They powered a series of three-river push boats built in Holland and are still operating today. With the aid of modern computer-based design tools and a detailed understanding of hydrodynamics, Rolls-Royce is continuously developing and improving its thruster product range. The current product portfolio covers a power range of 300 to 14,000 hp.

The benefits of Azimuth thrusters on a towboat With an azimuth thruster the full thrust can be applied in any direction through the full 360 degrees and significantly improve the maneuverability and braking force of the vessel. In performance tests it has been shown that the braking forces produced are nearly 1.5 times those of the conventional towboat, over the whole speed range. This increase in braking force reduces both the distance and the time needed to stop a barge train. For shallow draft operations, the normal requirement is to fit 2 azimuth units, and it is not unusual to have towboat designs with a triple azimuth thruster propulsion arrangement. Azimuth thrusters also significantly increase f lanking forces, which help operators safely navigate through the most difficult bends of the river. On a conventional towboat, f lanking rudders and reverse thrust are normally used to produce the necessary flanking forces. By using azimuth thrusters the transverse force can be maximized and is approximately twice the maximum side force produced by a conventional towboat at all measured speeds, plus there is the benefit of greater braking forces. Maximum flanking forces produced can be up to four (4) times that of the conventional towboat with equal braking force. June 2016 Yearbook MARINE LOG 43

PROPULSION How Azimuth thrusters help in Brazil Brazil is a country traversed by many rivers, the main one being the Amazon. There are 11 main inland waterways with a total length of some 39,000 miles although only approximately 8,000 miles are regularly used. These waterways are used to transport agricultural commodities such as grain and fertilizer, as well as mineral goods to the coast. Amaggi Navegação a subsidiary of Amaggi Exportação e Importação Ltda. is one of the operators working in the region who has moved to azimuth thrusters to propel their vessels. They have been operating on these waterways for over 20 years and now have over 30 tugs equipped with azimuth thruster propulsion. Units in their fleet include a range of Rolls-Royce thrusters from our smaller U.S. 105 model to our larger US 255’s. Amaggi Navegacao operate on the Madeira and Amazones rivers where they are involved in the transportation of grain and soya to and from local processing plants. The move away from conventional towboat design has enabled them to increase the size of barge trains, which is due to increased turning and stopping capacity at full load. Open propellers are used for the majority of these thruster applications due to the amount of debris in the rivers. The trend outside the Amazon is to fit azimuth thrusters with nozzles and thereby maximize thrust.

The future of Azimuth thrusters Thruster technology continues to develop. The latest is the introduction of gearless electric drive through the application of permanent magnet (PM) rim drive technology, where the motor surrounds the propeller as a slim ring. The rotor is integral with the propeller and carries a series of permanent magnets. As the magnetic fields

Thruster Technology continues to develop with the introduction of gearless electric drive through PM rim drive technology

interact, the propeller turns. Tunnel thrusters and azimuth thrusters utilizing this technology are now available from Rolls-Royce. The compact and efficient tunnel thruster unit is easy to install and power output is increased by around 25% for the same propeller size. It is a good example of the possibilities that lie ahead. This technology has now been applied to the azimuth thruster by Rolls-Royce, and the first PM development thrusters rated at 670 hp were installed on the research vessel R/V Gunnerus in March 2015. Nozzle shape can be selected to suit individual applications, but since Gunnerus requires pull for towing trawl and other gear, the nozzle is optimized for bollard pull and speed to match the vessel’s requirements. The installation is compact with only the slip ring unit and the variable frequency steering motors inside the hull. Before the installation, the vessel had a conventional diesel electric propulsion system consisting of frequency converters, induction motors, gears and shaft with nozzle propeller. Testing to date has demonstrated an improvement in propulsive efficiency and bollard pull with a reduction of air and structure borne noise and vibration. ■

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PROPULSION

NEW FERRIES to be Among the Cleanest Operating When they enter service next year, two new high-speed ferries for San Francisco will be among the cleanest operating passenger vessels of their kind in the U.S. thanks to a propulsion system with an exhaust gas treatment system engineered by Pacific Power Group, Vancouver, WA. Designed by Incat Crowther, the 135 ft x 38 ft ferries are being built for San Francisco Water Emergency Transit Authority (WETA) at Kvichak’s shipyard in Seattle and are expected to be in service by the summer of 2017. The superstructures for the boats are being built at Nichols Brothers Boat Builders in Whidbey Island, WA. Third par t y independent emissions testing completed in January at PPG’s Kent, WA, location showed that the system’s emissions are believed to be lower than any currently operating passenger ferry in the U.S. The MTU engines are certified to EPA Tier 3 marine emission levels and with the added exhaust after treatment system, EPA Tier 4 Final level performance is achieved without the use of diesel particulate filters. The independent emissions tests were conducted and verified by Infowedge and The University of California at Riverside Center for Environmental Research and Technology. PPG’s custom-engineered solution focused on the operating conditions with the greatest emissions outputs with a high priority on vessel operational reliability and keeping weight and space claim to a minimum. The system will reduce an estimated 10 tons of NOx, PM and CO2 emissions annually through the use of selective catalytic reduction and diesel oxidation catalyst technologies.

The complete propulsion system supplied by Pacific Power Group includes two MTU 12V4000M64 1,950 hp engines and ZF 7600 reduction gears. MTU Series 4000 engines provide clean-running operation that helps lower the ferries’ emissions output. The Series 4000 engines also offer increased safety, lower fuel consumption and greater reliability for the commercial passenger vessels. PPG’s engineers worked closely with Vigor Industrial’s Kvichak Marine to develop a system that physically fits the vessel design, meets weight goals and provides easy installation and maintenance for WETA. “As the demand for cleaner-operating vessels continues to grow, we’re proud to offer innovative, environmentally-friendly solutions that meet and exceed the unique demands our customers have for their vessels,” said Bill Mossey, Vice President of Pacific Power Group. “The propulsion and exhaust treatment system created by our marine team and partners makes these ferries some of the greenest operating passenger vessels in the nation.” The ferries will replace two of WETA’s 12-vessel fleet that are nearing the end of their expected 25-year life. Each vessel will carry approximately 400 passengers and will operate at about 27 knots. PPG is a longtime partner of WETA, and has provided propulsion systems, support and ground-breaking environmental solutions for the transit organization for many years. In 2011, Pacific Power Group supplied advanced propulsion systems for WETA’s Gemini and Pisces ferries that exceeded then-current EPA Tier 2 standards by 97 percent.

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June 2016 Yearbook MARINE LOG 45

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Wed., Oct. 19 Technical Tour

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FUELS & LUBES

Best Practices in Choosing and Maintaining EALs for Marine Applications By: Dr. Bernard C. Roell, Jr., vice president of technology, RSC Bio Solutions

Photo: Sheila Fitzgerald / Shutterstock.com

ith the U.S. Environmental Protection Agencyâ&#x20AC;&#x2122;s Vessel General Permit (VGP) regulations in place for several years now and Small Vessel General Permit (sVGP) poised to expand these regulations to new classes of vessels, marine operators have embraced the use of environmentally acceptable lubricants (EALs) and become familiar with the inherent environmental and performance benefits of switching from conventional lubricants. However, there is still a great deal of confusion in the marketplace surrounding EAL choice and maintenance. Itâ&#x20AC;&#x2122;s important for operators to educate themselves on which type of EAL is best suited to different applications and strategies for maximizing ROI and equipment life. The EPA recognizes four types of EALs. While all meet requirements, these lubricants vary widely in terms of suitability for different applications, performance characteristics, and f luid life, among other

considerations. While all EALs offer the advantage of being high viscosity index lubricants (High-VI), it is important to understand the relative advantages and disadvantages of each type, based on its chemical composition. Vegetable Oils (HETG) - Also known as triglycerides or natural esters, HETGs provide very good wear properties and are compatible with most seals and hoses, but are not as well suited to high temperature applications as other EALs. They are also more susceptible to hydrolysis in the presence of water and have a shorter lifespan than other EALs. They are best suited to land-based applications with scheduled change-out intervals. Synthetic Esters (HEES) - Esters are synthesized by the reaction of an alcohol with an acid. This reaction process allows for the flexibility to customize the type of ester used for a particular application. Generally, HEESs offer high performance, good

oxidative and thermal stability and corrosion prevention, but they can be prone to hydrolysis in the presence of water. They work well in a wide range of land and marine applications with scheduled change-out intervals. P o lya l k y l e n e G lyco l s (H E P G) Made of synthetic, petroleum based oil, HEPGs are created by the polymerization of ethylene or propylene oxide. HEPGs are designed to be water soluble, but this water solubility may increase toxicity. They are well suited to operate in high and low temperatures, and they have strong fireresistant properties, which make them an excellent choice for volatile environments. HEPGs are typically recommended for use in a wide range of both land and marine appl ic at ions w it h schedu led cha ngeout intervals. On the downside, they are typically not derived from a renewable resource,and are not compatible with other mineral oils and EALs. June 2016 Yearbook MARINE LOG 47

FUELS & LUBES Choosing wisely HETG HEES HEPG HEPR Standard Petroleum Readily Biodegradable Ecotoxicity Bioaccumulation Potential Sheen Seal Compatibility Wear Performance Oxidation Performance Low Temperature Performance Viscosity Index

Yes Low No No Good Very Good Poor Poor Very Good

Yes Low No No Good Very Good Good Very Good Very Good

Yes Low* No No Poor Very Good Very Good Very Good Very Good

Yes Low No No Good Very Good Very Good Very Good Very Good

No High Yes Yes Good Very Good Very Good Poor Poor

*Solubility may increase the toxicity of some PAGs

P o ly a l p h a o l e f i n s ( P AO s ) a n d rel ated hydrocarbon products (HEPR) - HEPRs are synthesized hydrocarbons traditionally derived from crude oil meant to provide a low viscosity base oil that is readily biodegradable. However, more recent ly, H EPR t y pe ba se stocks from renewable sources have been developed. HEPRs are highly durable and offer extended wear protection and f luid life, ma k ing t hem a n idea l choice for equipment whose f luid cannot easily or frequently be changed.

UNCOMPROMISED

CONTROL

Emulsifying vs Demulsifying Fluids

HT Series

Low Submergence Requirement Small Hull Penetrations Auxiliary Propulsion/ “Take Home” Capability Effective Thrust in Currents JT Series

Waterjet Bow/Stern Thrusters Up to 2,200HP

48 MARINE LOG June 2016 Yearbook

Proudly Made in the USA!

Another critical decision factor in EAL choice is how the lubricant interacts with water. While some operators choose to use emulsifying fluids that can essentially absorb this water, recent studies have shown that the presence of water in the system, even if it has been emulsified, serves as a catalyst for oxidation and hydrolysis These same studies suggest that the use of demulsifying EALs have the potential to greatly extend equipment service life and performance. Like conventional oil, HEPRs have the best demulsifying properties.

Maximizing ROI

Choosing the right EAL is only half the battle; measuring the effectiveness of your chosen lubricant and instituting a proper maintenance regime is essential to ensuring performance, protecting your equipment and getting the most for your money.

Maintenance Protocols

In addition to establishing performance benchmarks, logging issues and causes of downtime, making timely repairs and establishing a regular change out schedule, cleanliness control is one of the single most important aspects of effective lubricant maintenance. To ensure cleanliness and avoid contamination, refill or dispense only from clean, sealed containers. It’s also important to follow OEM recommendations, establish a set protocol and document all maintenance, including fluid top-offs.

FUELS & LUBES TOP Tips on Switching Fuels in ECAs ExxonMobil has compiled five ‘toptips’ to help vessel operators effectively switch fuels when entering and exiting Emission Control Areas (ECAs) w ithout int roducing maintenance issues. Typically, inadequate management of the fuel switchover process can increase the risk of thermal shock to engine components, which can result in fuel pump seizures and engine shutdowns. ExxonMobil advises operators to consider the following fuel switching tips: Have a clear switchover procedure: It is important to ensure that the crew is familiar with the process. As an additional safety measure, the procedure should be tested prior to entering crowded and restricted channels. Ou t l i n e t h e b e s t t i m e t o switchover: The optimal switchover period is unique for each vessel and operators must allow sufficient time for the system to be flushed of all non-compliant fuel before arriving at an ECA. Avoid hazards; know the correct temperature & viscosit y: The appropriate temperature must be achieved to ensure that the optimum viscosity at the injectors is reached. HFO is injected at ~130°C and MGO needs to be cooled to ~30°C in order to reach the correct viscosity. Understand compatibilit y: In order to understand if fuels are compatible, an industry-standard spot test can be carried on-board or a more thorough compatibility test can be requested from a reputable testing laboratory. Choose the correct lubricant: Cylinder oils need to be sufficiently alkaline to neutralize any corrosive acidic sulphur in the fuel. However, when less sulphur is present, less sulphuric acid is produced. Too much alkalinity in the cylinder oil can lead to liner wear, while too little increases the risk of acid corrosion. When burning lowsulphur fuels in slow-speed engines, it is recommended that a lower base number lubricant be used. In addi t ion to t he s e top - t ips , Ex xonMobil has developed two ECA category fuels, ExxonMobil Premium AFME 200 and ExxonMobil Premium HDME 50, to help operators comply with ECA requirements safely.

Oil Analysis

Another critical component of maintenance is the laboratory analysis of a lubricant’s properties, suspended contaminants and wear debris to provide a snapshot of how f luids and equipment are performing. By tracking oil analysis sample results over the life of a machine, trends can be established which can help extend equipment, eliminate costly emergency repairs and increase uptime, resulting in cost savings.

Use the Data – Failing to take appropriate recommended maintenance actions can be very detrimental, but use common sense to ensure that the suggested action is practical and cost effective and examine possible alternatives. If you have questions about choosing the right EAL and maintenance practices for your operation, application and needs, the best place to start is to contact your OEM and possible vendors. www.rscbio.com. ■

FIRM SUPPLY. FLEXIBLE SOLUTIONS. Backed by more than four decades of experience in liquefied natural gas (LNG) production and logistics, Pivotal LNG is the right partner for you. We are committed to advancing alternative fuels in the maritime industry and will design flexible LNG fueling solutions to meet your needs.

June 2016 Yearbook MARINE LOG 49

newsmakers

American Waterways Operators announces new lineup A new leadership lineup has been selected for the American Water ways Operators (AWO), the national trade association that represents the tugboat, towboat and b ar ge in du s t r y. J a m e s F. Fa r l e y, Cor porate Vice President of Industr y Relations at Kirby Corporation has been elected Chairman. And, Edward J. “Ted” Tregur tha, President of Moran Towing Corporation, was elected Vice Chairman. Maritime industry professionals gathered at a May 15 fundraiser at Club Macanudo in New York to remember the 33 souls that were lost on the containership El Faro when the ship sank during a hurricane on October 1, 2015. The event, organized by Matthew Bonvento, raised donations for Seamen’s Church Institute’s El Faro Relief Fund, which benefits the families of the lost crew. The event was co-sponsored by Good Wind Maritime Services and Vanuatu Maritime Services.

ABS President and CEO Christopher J. Wiernicki was inducted into the Inter national Maritime Hall of Fame at the Maritime Association of the Port of New York and New Jersey’s 23rd annual event. The Hall of Fame recognizes maritime visionaries who best exemplify the qualities of futuristic thinking that will guide the industry forward. Dennis Brewster has joined C&C Marine and Repair, L.L.C., Belle Chasse, LA, as Vice President of Inland Sales. Brewster has 40 years of experience in the marine industry. Crowley Maritime Corporation has awarded Thomas B. Crowley Sr. Memorial Scholarships to four Massachusetts Maritime Academy (MMA) students. Patrick Goldsmith, Jack McMurrer, Paige Mentuck and Christina Murphy were awarded the scholarships due to their excellent grades, financial need, and their plans to pursue a career in the maritime industry.

Jennifer Boykin, Vice President, Engineering and Design, for Hunting ton Ingalls I n d u s t r ie s ’ N e w p o r t News Shipbuilding division has received a 2016 YWCA Women of Distinction Award. The award honors women who have achieved, overcome and blazed a trail for other women through their professional leadership, volunteer efforts and civic involvement. Seattle-based naval architecture and marine engineering consultancy firm, Glosten, has promoted Bradley G. Lamkin, PE to Senior Marine Consultant. In his 20 years with the firm, Lamkin has been instrumental in developing Glosten’s marine construction capability. He specializes in resolving stability issues for a wide variety of vessels including barges, hopper dredges, passenger vessels and tugboats—and notably served as Glosten Project Manager in support of the Flatiron Manson Joint Venture which built the Minnesota I-35 replacement bridge.

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Take your brand to the next level Contact your sales rep at marinelog@sbpub.com or call 212.620.7200 | MARINELOG.COM 30,000+ qualified subscribers worldwide 92% of subscribers are involved in purchasing decisions 78% of subscribers act on advertisements 52% of subscribers are involved in vessel operations *Source: 2015 Verified Publisher’s Statement and 2015 Readership Survey

50 MARINE LOG June 2016 Yearbook

techNews The AHC system will increase the vessel’s operational time

First U.S.-made AHC crane controlled by Scantrol Norway’s Scantrol AS delivered its first Active Heave Compensation (AHC) control system in the U.S. to EBI cranes, Houma, LA, for a 100-tonne offshore crane for the dive support vessel M/V Maridive 235. EBI Crane designed and delivered an AHC offshore crane for the Mardive Group’s Mardive 235. By adding the AHC functionality to the crane, the dive support vessel will be able to significantly increase its operational time and save on costs. Scantrol used its AHC Analyzer tool in order to determine the crane winch capacity requirements needed to meet the specified compensation level. The crane was designed for a 25 tonne lifting capacity with AHC, and 100 tonne capacity in normal operation.

Scantrol delivered a flexible and standardized AHC Crane control system to EBI for integration into the crane together with a Bosch Rexroth hydraulics drive solution. The Scantrol AHC Controller is mounted in the control cabinet; its touch screens and panels are integrated into the operator’s chair; the system also features sensors, including winch encoder, boom angle sensor and MRU, and specialized software. “The standardized options within the Scantrol software allowed for quick and easy integration with EBI’s typical crane design,” says B.J. Brown of EBI. “The excellent communication between EBI, Bosch Rexroth, and Scantrol led to the final optimal design.” www.scantrol.com

New HI-FOG electric pump unit from Marioff

Finland’s Marioff Corporation Oy has launched the HI-FOG Electric Pump Unit (EPU) for use in the high-pressure water mist fire suppression market. The EPU revolutionizes pumping technology for high-pressure water mist technology by incorporating a loop pressure control system that ensures only the required pressure

and flow are provided and no excess water unloading is needed. The system features an advanced software control system and frequency converter to help achieve pressure optimization. Marioff says the pump unit incorporates many builtin redundancies, including activation and pressure control, to ensure operational reliability. The EPU is comprised of a modular pump skid and separate control cabinet— enabling flexible installation. The unit also features a user-friendly interface that provides the user with realtime status updates on the pump unit as well as the HI-FOG system, the system’s alarm and help information, maintenance reminders and event history, ensuring efficient and optimized maintenance activities. www.marioff.com

Schottel enhances Rudderpropeller German propulsion specialist Schottel GmbH has enhanced its Rudderpropeller range with the new Schottel VarioDuct SDV45 high-performance nozzle to provide higher efficiency at open-water speed in combination with excellent bollard pull. Schottel reports that the Schottel VarioDuct SDV45 achieves greater bollard pull and improved efficiency in the medium- and high-speed range than previous nozzle designs while using the same amount of propulsive power. T he system, consisting of a Rudderpropeller and the new nozzle, thus contributes significantly to fuel savings. The new nozzle, with its compact geometry, offers considerably greater power than standard nozzles, such as the Wag-19A; it can also be optimally adapted to different vessel designs and applications. The small outer diameter also makes the nozzle ideally suited for shallow-water operation. During the development of the new Schottel VarioDuct SDV45, Schottel used Computational Fluid Dynamics (CFD) calculations to investigate hundreds of geometry variants and thus determine the optimum design. This geometry is then tested by means of model trials to demonstrate the operating characteristics. Schottel uses CFD and other computer-based, 3D calculation methods for the in-house development of custom-tailored and optimally coordinated propulsion systems for virtually all vessel types and applications. On the basis of extensive experience, hydrodynamics specialists optimize the systems in terms of power, durability, compactness and fuel savings in accordance with customer project requirements.

www.schottel.de

June 2016 Yearbook MARINE LOG 51

techNews OceanOne is a hybrid between a robot and mermaid

MAN engines chosen for Navy frigates

Deep sea Robotics: Stanford develops humanoid bot for deep sea exploration Last month we told you about underwater robotic snakes that could change the subsea industry. This month, another robot, this time with a more human face, is making headlines. Researchers at Stanford University have developed OceanOne, a humanoid robotic diver that enables the exploration of depths unreachable by human divers. Meka Robotics and the King Abdullah University of Science and Technology in Saudi Arabia supported the robot’s development. The technology, which combines robotics, artificial intelligence and haptic feedback systems, was first used to recover treasures from King Louis XIV’s wrecked flagship La Lune. With the expedition’s success, Oussama Khatib, a Professor of Computer Science at Stanford, hopes the robot will one day be used to take on highly skilled underwater work that is too dangerous for human diver such as oil-rig maintenance or underwater disaster situations. “The intent here is to have a human diving virtually, to put the human out of harm’s way,” said Professor Khatib.

52 MARINE LOG June 2016 Yearbook

The robot, its look a hybrid between a robot and mermaid, is roughly about five feet long. Its torso features a head with stereoscopic vision—giving pilots a view of what the robot sees—and two fully articulated arms. Its hands, attached to fully articulated wrists, are fitted with force sensors that relay haptic feedback to the pilot’s controls—this enables the human operator to feel what the robot is feeling, whether it is grasping something firm and heavy, or light and delicate. Its tail, meanwhile, houses the batteries, computers and eight multi-directional thrusters. The robot is fitted with a number of sensors throughout which gauge current and turbulence, automatically activating the thrusters to keep the robot in place—even as the body moves, quick-firing motors adjust the arms to keep its hands steady as it works. “We connect the human to the robot in [a] very intuitive and meaningful way. The human can provide intuition and expertise and cognitive abilities to the robot,” added Professor Khatib.

MAN Diesel & Turbo has won a contract to equip India’s Project 17A stealth frigates with a pair of MAN 12V28/33D STC engines. In total, the Indian Navy has seven 149 m guided missile frigates on order. Under the agreement, MAN Diesel & Turbo will provide engines, auxiliaries, commissioning, documentation, training, and spare parts. The 28/33D STC engines are robust and reliable, providing long overhaul intervals and a maintenance-friendly design that enables for maintenance work to take place without having to remove the engine. This reduces maintenance down time and increases the vessel’s operational window. The four-stroke engines offer high torque for fast acceleration, are capable of continuous low load operation, have a high power-to-weight ratio and are both IMO Tier II and EPA Tier 2-compliant Construction of the first ship is set to start early 2017 with deliver y to the Indian Navy by 2023. Four of the ships will be built at Mazagon Dock Shipbuilders Ltd., Mumbai, and three at Garden Reach Shipbuilders & Engineers in Kolkata. marine.man.eu

contracts Shipyard Contracts Marine Log welcomes your input. If you would like to report any new contracts, deliveries or changes to our listings, please e-mail: marinelog@sbpub.com. Some contract values and contract completion dates are estimated. Information is based on best available data on or about May 1, 2016. A more complete listing of Shipbuilding Contracts, Vessel Deliveries, and a Shipyard Directory are available on Marine Log’s Shipbuilding Intelligence website, www.shipbuilding.marinelog.com Shipyard

Location

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

RECENT CONTRACTS Bollinger Shipyards Lockport, LA 6 FRC 154 ft, 28 knots U.S. Coast Guard 318.6 Diversified Marine Portland, OR 2 Harbor Tugs 80 ft x 36 ft Harley Marine Services Tarpon Springs, FL 1 Research Vessel 78 ft x 26 ft Florida Inst. of Oceanography 6 Duckworth Steel Boats

2017 2018

DELIVERIES Conrad Industries Conrad Industries Eastern Shipbuilding Fincantieri Bay GD NASSCO Gladding Hearn Hope Services SAFE Boats St. Johns Ship Building

2016-3Q 2016-2Q 2016-2Q 2016-2Q 2016-2Q 2016-2Q 2016-2Q 2016-3Q 2016-2Q

Morgan City, LA Amelia, LA Panama City, FL Sturgeon Bay, WI San Diego, CA Somerset, MA Dulac, LA Bremerton, WA Palatka, FL

1 1 1 1 1 1 1 1 1

Car Ferry Tank Barge Towboat ATB Product Tanker Pilot Boat Towboat Coastal Interceptor ATB Tug

235 ft, 384 PAX, 55 autos 55,000 bbl 90 ft, 3,000 hp 5,300 hp, 110,000 bbl 610 ft, 50,000 dwt 53.6 ft x 17.8 ft 78 ft x 38 ft 41 ft, 54 knots 4,200 hp, 100 ft

The Steamship Authority Vane Brothers Florida Marine Transporters Moran Towing APT Sabine Pilots Higman Barge Lines U.S. Customs & Border Patrol Vane Brothers

PENDING CONTRACTS BAE Systems Southeast Mobile, AL 2 Dump Scows 7,700 cu. ft Great Lakes Dredge BAE Systems Southeast Jacksonville, FL 1 Tug 141 ft x 46 ft, 12,000 bhp Seabulk Tankers Inc. Bay Shipbuilding Sturgeon Bay, WI 1 ATB 8,000 hp / 155,000 bbl Plains All American Pipeline Bay Shipbuilding Sturgeon Bay, WI 1 ATB 185,000 bbl /8,000 hp undisclosed Kvichak Marine Seattle, WA 30 Skimmers 30 ft 3 in x 9 ft 8 in U.S. Navy TBD 1 Double-end ferry 70-car similar to Pocohontas VDOT $25 TBD 3 Double-end ferries 4,500 PAX NYCDOT $309 TBD 3 Pass/Vehicle ferries 1,000 PAX/100 vehicles DRBA $101 TBD 18-22 Ferries 149 PAX Hornblower

NOTES Options Option Option Opt. 2018 Opt. to 2019 2018-2020 RFB Issued 2018- 2021 2017-2019

Index of Advertisers Company Page #

Company Page #

ABS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 American Vulkan Corporation.. . . . . . . . . . . . . . . . . . . 9 Beele Engineering/CSD . . . . . . . . . . . . . . . . . . . . . . . 52 BMT Fleet Technology Limited. . . . . . . . . . . . . . . . . . . 4 Bouchard Transportation Co., Inc . . . . . . . . . . . . . . . 34 Burger Boat Company . . . . . . . . . . . . . . . . . . . . . . . . 32 CENTA Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Center Lift. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Eastern Shipbuilding Group, Inc. . . . . . . . . . . . . . . . . 7 EMI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 ExxonMobil Global Fuels & Lubes. . . . . . . . . . . . . . . . 3 Furuno. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Great American Insurance Group . . . . . . . . . . . . . . . . 14 Gulf Coast Air & Hydraulics Inc.. . . . . . . . . . . . . . . . . C4 Hyde Marine, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Interferry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Japan Radio Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Karl Senner LLC... . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 KVH Industries, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . C3

Lifting Gear Hire. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Marine Art of J. Clary. . . . . . . . . . . . . . . . . . . . . . . . . . 50 Marine Group Boat Works . . . . . . . . . . . . . . . . . . . . . 38 Nautican. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Northern Lights, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Omnithruster Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Pivotal LNG. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Pyrotek Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Regions Financial. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C2 Renishaw . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 R.W. Fernstrum & Company. . . . . . . . . . . . . . . . . . . . . 4 Scania USA, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Schuyler Rubber Company. . . . . . . . . . . . . . . . . . . . . 27 Smith Berger Marine Inc.. . . . . . . . . . . . . . . . . . . . . . 45 Tradesmen International.. . . . . . . . . . . . . . . . . . . . . . 22 Transmarine Propulsion Systems . . . . . . . . . . . . . . . 44 Viega. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Vigor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 W&O . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 June 2016 Yearbook MARINE LOG 53

marketplace ENGINEERS & ARCHITECTS

We Build the Ship First. Production Lofting Detail Design 3D Modeling St. John’s, NL | Vancouver, BC | New Orleans, LA 709.368.0669 | 504.287.4310 | www.genoadesign.com

Leave the heavy lifting to us. JMS designed stevedoring barge 300’ x 72’, 6,000 psf deck rating Built by Conrad Shipyard for Rhode Island Commerce Corp. and Port of Providence

Naval Architecture Marine Engineering Salvage Engineering Marine Surveys

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860.536.0009 Contract Holder Veteran-Owned Small Business

Marine

Industry

M.A.C.E. Inc. KEEL DESIGN CORPORATION

GILBERT ASSOCIATES, INC. Naval Architects and Marine Engineers

naval architects & marine engineers Quality Technical Services

350 Lincoln St. Suite 2501 Hingham, MA 02043

2021 Dauphine Street • New Orleans, LA 70116 (800) 823-1324 (504) 945-8917

Website www.jwgainc.com

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

FT. LAUDERDALE - USA - WORLDWIDE PHONE: (954) 563-7071 FAX (954) 493-9559

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

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ABS Approved Ambient Environmental Testing Climate, Lighting, Noise & Vibration 1 Galleria Blvd. Ste 907 Metairie, LA 70001 Phone (504) 818-0377 x 33 Fax (504) 818-0447 www.hab-cert.com 54 MARINE LOG June 2016 Yearbook

Predictive Maintenance IR - thermography measurements

BoksaMarineDesign.com 813.654.9800 Naval Architecture Conceptual Designs Marine Engineering

Production Engineering Lofting & Nesting Tooling Design

marketplace ENGINEERS & ARCHITECTS

ship registries

SOFTWARE

VANUATU FLAG – More than

a Flag of Quality

WORLD WIDE OFFICES PORT VILA, NEW YORK, TOKYO, ATHENS, LONDON, BANGKOK, SHANGHAI, SINGAPORE, HONG KONG, PUSAN AND ISTANBUL PHONE: (212) 425 9600 FAX: (212) 425 9652

Email: email@vanuatuships.com www.vanuatumaritimeships.com

products & services employment REQUEST FOR BIDS

REQUEST FOR BIDS The New York City Department of Transportation, Division of Ferries, cordially invites your company to submit a bid for the following: Pin # 84116MBSI957 – Detail Design and Construction of the New Staten Island Ollis Class Ferry Boat Solicitation documents will be available beginning on May 18, 2016 and can be downloaded free of charge from the City Record Website by visiting https://mspwvwdcscpfvp.nyc.gov then selecting the Procurement tab and inputting the PIN # referenced above. A printed copy of the solicitation documents can also be picked up from the New York City Department of Transportation, Office of the Agency Chief Contracting Officer/Contract Management Unit, 55 Water Street, Ground Floor, New York, NY 10041 between 9:00am – 3:00pm, Monday to Friday (Holidays Excluded). Prospective bidders may also request a copy via mail by contacting the Contract Management Unit at 212-8399435. Shipping and handling charges apply. Company address, telephone and fax numbers are required when requesting solicitation documents. The DBE Goal for this contract is 2.2%. Sealed bids must be submitted by 11:00 AM on August 31, 2016 to 55 Water Street, Ground Floor, New York, NY 10041. Entrance is located on the South Side of the Building facing the Vietnam Veterans Memorial. Proper government issued identification is required for entry to the building (driver’s license, passport, etc.) The Optional Pre-Bid Meeting will be held on July 14, 2016 at 10:00 A.M. at 55 Water Street, Ground Floor, New York, NY 10041. The deadline to submit questions regarding procurement is 5:00 P.M. on July 26, 2016.

this

Copies of the Buy America Compliance Guidance to Bidders as well as the Construction Management Plan may be downloaded here: http://www.nyc.gov/html/dot/html/about/doingbusiness.shtml. Bidders should be aware that these documents are not part of the solicitation and are intended for informational purposes only. For additional information or to submit questions, please contact Shaneza Shinath at (212) 839-9294 or sshinath@dot.nyc.gov.

employment

Tug Mate

Minimum Qualifications: • Master/Mate 500 GRT Near Coastal/ Oceans • Master/Mate of Towing Near Coastal/ Oceans • STCW w/ security endorsement • GMDSS, RADAR, TWIC, Passport

Assistant Engineer

Minimum Qualifications: • Degree from Maritime Academy or Chief Engineer unlimited preferred • STCW w/ security endorsement • TWIC, Passport

Barge Tankerman

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

AB Deckhand

Preferred Qualifications: • Academy Graduates • 2+ years of tug experience • STCW w/ security endorsement • TWIC, Passport Apply at

www.bouchardtransport.com Resumes welcome when accompanied with an application

Open Positions: Brooklyn, NY/East Coast Harbors • Port Captain • Port Engineer • Sales & Marketing Manager • Barge Operations Supervisor

Seattle, WA

• Port Engineer • Port Captain • Director/Manager of Quality • Director,Vessel Maintenance & Repair • Director, Barge Operations • Captain

Alameda/San Francisco Harbor, CA • General Manager • Sales Coordinator, Ship Assist • Captain

L.A./Long Beach Harbor, CA

• Sales and Marketing Manager, Ship Assist For a list of all open crew positions or to apply online, please visit our Careers page at www.harleymarine.com

PACIFIC POWER GROUP SeekingExperienced Sales Professional B2B sales of marine parts and engines in WA, Or and ID. SEE THE FULL JOB POSTING AT MARINELOG.COM JOB BOARD

June 2016 Yearbook MARINE LOG 55

Op-Ed

Crowley’s Commitment to Puerto Rico and the Jones Act As Puerto Ricans seek an end to their economic problems, Crowley Maritime Corporation has offered support for a multifaceted solution by Congress. Our company has a strong commitment to the island commonwealth as the longestserving ocean carrier there with significant investments under way. Because of that relationship of over 60 years — and our confidence in Puerto Rico’s future — Crowley has supported a realistic solution to the fiscal crisis. We see very clearly the humanitarian side of the Puerto Rican debt crisis, as Crowley now is moving more than 20 used autos per day northbound to the mainland — compared with about two per day a few years ago. These are family cars — parents, children and luggage making one last stop at the marine terminal before taking a taxi to the airport to leave the Island permanently. Some 5,000 people are now leaving Puerto Rico each month. Along with other carriers and businesses, we believe any relief package should include, at a minimum, an appropriate mechanism to restructure bond debt, and a control board with limited powers to help the Puerto Rican government work through its financial challenges. A heart-wrenching dilemma requires real solutions that meet real needs.

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Some misguided opportunists, however, are advocating that Puerto Rico be exempted from the Jones Act, a longstanding maritime law that requires passengers and cargo moving between points in the U.S. be transported in American vessels. As I testified to U.S. senators in April, such an exemption would be a huge mistake with damaging and chilling effects crippling America’s shipping industry and our national security. The economic trials in Puerto Rico have absolutely nothing to do with the Act and should not be a vehicle to engage in ideological maneuvers that would produce damage instead of solutions. Such a change would put at risk the reliable, efficient service the island currently receives, as well as hundreds of private sector jobs on the island. Shipping services today are not only frequent, direct and reliable, but rates between the U.S. and Puerto Rico are also less than they are between the U.S. and any other island in the Caribbean — all of which are served by foreign ships. As a leading company in the Jones Act trade, Crowley is investing more than $500 million in projects related to Puerto Rico shipping, including building two innovative “ConRo” — combination container and Roll-On/Roll-Off — ships powered by liquefied natural gas, as well as a new pier and terminal in Puerto Rico.

Our investment, in partnership with the Puerto Rico Ports Authority, will dramatically improve efficiency to the benefit of businesses and consumers in Puerto Rico. As part of $100 million in San Juan terminal improvements, about 75 jobs are being created during construction, and about 100 new jobs will be created after the construction is completed and Crowley begins service with its new ships. American carriers in this market have spearheaded construction of a new generation of vessels in U.S. shipyards for U.S. service. These ships stand to be prototypes for the world’s shipping fleet as it begins to transition to extremely low-emissions propulsion. These vessels offer significant environmental benefits, including in Puerto Rico, where air quality is a major concern. Finally, American security interests are directly put at risk by those who would misuse the Puerto Rico crisis to gut the Jones Act. U.S. military leaders have been unambiguous supporters of the Jones Act as a key contributor to critical American shipbuilding infrastructure and seagoing expertise. If the goal of the Jones Act is an innovative and efficient American maritime industry, the financial commitments made by Crowley and others in the mainlandPuerto Rico trade show that the Jones Act works as intended.

Advertising Sales AMERICAS U.S. Gulf Coast & Mexico Jeff Sutley National Sales Director T: (212) 620-7233 | F: (212) 633-1165 Email: jsutley@sbpub.com

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

U.S. East, Midwest and West Coasts Heather Bonato Regional Sales Manager T: (212) 620-7225 | F: (212) 633-1165 Email: hbonato@sbpub.com

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

California & Canada Amy Lennox Sales Associate T: (212) 620-7221 | F: (212) 633-1165 Email: alennox@sbpub.com

56 MARINE LOG June 2016 Yearbook

By Michael Roberts, Senior VP and General Counsel, Crowley Maritime Corporation

FRANCE Paul Thornhill Alad Ltd. T: +44 (0)1732 459683 Email: Paul@aladltd.co.uk

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

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