UPDATES

KEPPEL AMFELS

DELIVERS FIRST OF LNG-FUELED PASHA PAIR

HAWAII-BASED PASHA HAWAII has taken delivery of the M/V George III from Keppel O&M’s Brownsville, Texas, shipyard, Keppel AmFels

The ship is the first of two new Ohana Class containerships to join Pasha Hawaii’s fleet, serving the Hawaii/Mainland trade lane.

Designed by Keppel Marine & Deepwater Technology (KMDTech), Keppel O&M’s ship design and development arm, the Ohana Class vessels are named for George Pasha III and Janet Marie, the late parents of Pasha Group President and CEO George Pasha IV, marking three generations of service to Hawaii.

Operating fully on natural gas from day one, the new Jones Act vessel surpasses the International Maritime Organization (IMO) 2030 emission standards for ocean vessels. It is also the first IGF Code compliant vessel certified by the United States Coast Guard.

Energy efficiencies are also achieved with a state-of-the-art MAN B&W 7S80ME-GI Mk 9.5 engine, an optimized hull form, and a high-efficiency rudder and propeller. “As we welcome the new M/V George III to the Pasha Hawaii fleet, we stand incredibly proud of the perseverance and commitment of our partners at Keppel AmFELS, and the skilled men and

Why used tugboats are getting hard to find

IF YOU’RE LOOKING TO BUY A USED TUGBOAT RIGHT NOW, you will likely have to look a lot harder than you would have last year. Coupeville, Wash.-based shipbroker Marcon International has released its latest May 2022 Tug Boat Market Report, with data from the firm’s extensive databases on tugs for sale in the U.S. and worldwide.

As of May this year, Marcon reported 409 tugs officially on the market for sale out of 5,198 tracked. This is down 13.89% from one year ago and 31.03% from five years ago. Marcon has closed ten sales to date in 2022 and says it has several additional sales pending.

“Activity has nearly doubled compared to 2021 (our worst year ever) and it seems we have finally broken out of the COVID19 overhang,” says Marcon. “Operating tugs and barges are in short supply both in the U.S. and international market. Across the age spectrum, the lack of inventory on the second-hand market is our biggest challenge as brokers. The rise in diesel prices has refocused buyers on fuel efficiency, creating greater demand for lower BHP ‘right-sized’ tugs.”

“Gone are the days of buying or women at the shipyard on this tremendous accomplishment,” said George Pasha, IV. “We look forward to beginning service to Hawaii in August and taking delivery of the Janet Marie later this year.”

“We are pleased to deliver Pasha Hawaii’s first LNG-powered containership,” said David Wedgeworth, president of Keppel AmFELS. “By working closely with Pasha Hawaii, we were able to resolve operational challenges posed by COVID-19 and deliver the vessel to their satisfaction. Built to Keppel O&M’s proprietary design, M/V George III exemplifies our engineering and design expertise as well as our in-depth experience in LNG.”

chartering a 6,000 BHP tug to do a job that a 4,000 BHP tug can do,” says Marcon. “Inflation in general has driven up prices to maintain and reactivate tugs and barges, driving the prices of units with current certificates higher. We have also seen several examples of engine and other part shortages, pushing some buyers away from taking on laid-up vessels. Higher oil prices have driven marginal demand for offshore towing and barges, hitting an already tight market. Anticipation of wind projects has several owners holding onto various currently under-utilized tugs and barges.”

Salvage industry sees only “modest” recovery in gross revenue

MAJOR SALVAGE CASES continue to make the headlinesand, according to insurance sources the costs of these cases are rising. Indeed, according to Allianz Global Corporate & Specialty, the near two-year salvage operation for the car carrier Golden Ray “cost in excess of $800 million.”

Given the sorts of numbers that start flying around whenever there’s a major casualty, it may come as a surprise that the International Salvage Union’s just-released statistics for 2021 show only a modest recovery in ISU member gross revenues. They reached $391 million, compared with $301 million in 2020. • ISU members provided 189 services in 2021, compared with 182 in the previous year. • Lloyd’s Open Form (LOF) cases continued to decline, down to just 29 cases compared to 40 in 2020. Still, LOF revenue was up, at $122 million, more than double the $60 million reported for 2020. • Wreck removal income reached $108 million from 56 services, compared with $98 million from 101 services in 2021.

Challenging economic conditions “Economic conditions are challenging and activity and income for our industry is volatile year-on-year. The general trend towards a smaller number of larger and more complex cases enhances that annual variability,” said ISU President, Resolve Marine Group’s Captain Nicholas Sloane. “The numbers in this survey reflect the period when the world was still fully contending with the COVID pandemic which made operations and logistics more challenging. Throughout those difficult times ISU members showed time and again their problem solving and willingness to overcome obstacles to provide services to their clients, the shipowners, and their insurers. And, taken alongside the ISU’s pollution prevention statistics, these numbers demonstrate a dynamic industry which most years performs some 200 salvage services.”

“Professional salvors protect the environment, reduce risk and mitigate loss. They also keep trade moving, which is demonstrated so clearly when there are large containership cases. We continue to work closely with key stakeholders to ensure that there is continued global provision of professional salvage services.”

The 2021 ISU statistics show a historic low level of LOF cases—29 for ISU members—generating income of $ 122 million. It compares with 40 cases worth $ 60 million in 2019. Revenue from LOF cases amounted to 50 per cent of all emergency response revenue and LOF cases accounted for 15 per cent of emergency response cases in 2021. SCOPIC revenue at $41 million in 2021 was up from $24 million previously.

Revenue in 2021 from operations conducted under contracts other than LOF was $120 million, effectively the same as in 2020 ($119 million). The average revenue from each non-LOF contract was therefore $750,000.

Wreck removal is an important source of income for members of the ISU but 2021, with $ 108 million from 56 operations (28% of the total income), showed the same trend as 2020 ($98 million received from 52 services – 33 per cent of the total).

The ISU statistics are collected from all ISU members by a professional third party, which aggregates and analyzes them. The statistics do not include the revenues of non-ISU members but are the only formal measure of the state of the marine salvage industry. The statistics are for income received in the relevant year but that can include revenue relating to services provided in previous years and there can be an element of “time lag.” The statistics are for gross revenues from which all of the salvors’ costs must be met.

While major casualties like the Felicity Ace may cost insurers big bucks, a surprisingly small proportion of those costs go to salvors.

Blount Boats delivers icebreaking buoy tender

DELIVERED EARLIER this year by the Blount Boats shipyard in Warren, R.I., an icebreaking buoy tender ordered in July 2020, the M/V Eddie Somers, is now in service with the Maryland Department of Natural Resources.

Homeported at Somers Cove Marina port at Somers Cove Marina in Crisfield, Md., the 94 foot long, 27-foot beam vessel will replace the M/V J. Milliard Tawes after nearly 50 years’ service.

Designed by BMT Designers and Planners, the shallow draft vessel is powered by Cummins QSK19, Tier III marine engines, each producing 750 hp @1,800 rpm, Twin Disc MGX-5202SC marine generator sets and two 42- by 27-inch, five blade NIBRAL propellers. The boat additionally has a 5-ton knuckle boom crane for buoy and debris removal applications.

In addition to placing buoys and performing other functions, the boat will serve as the primary icebreaking asset for Crisfield Harbor and Smith Island. As was the M/V Tawes, the M/V Eddie Somers will also be a lifeline to Smith Island when the waters surrounding it freeze over, with the boat clearing a path for supply and shuttle boats.

Under a cooperative agreement with Virginia and the U.S. Coast Guard, the M/V Eddie Somers will also provide this service to Tangier Island in Virginia when requested. During heavy ice seasons, all food, fuel, medicine, and emergency transport going to and from the islands are supplied by the vessel.

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W&O SUPPLY HAS NEW OWNER

MiddleGround Capital has acquired PVI Holdings Inc., the parent company of W&O Supply, Setpoint Integrated Solutions and A-T Controls. Jacksonville, Fla., headquartered W&O Supply is one of the world’s largest suppliers of pipe, valves, fittings as well as actuation and engineered solutions to the maritime and upstream oil & gas industries. It operates a strategic branch network of stocking locations worldwide. Outside of the U.S., W&O has branches in Canada, Europe, and Asia. MiddleGround is an operationally focused private equity firm that invests in middle market B2B industrial and specialty distribution companies.

RIDGEWOOD INFRASTRUCTURE AND SAVAGE ACQUIRE

WORLDWIDE TERMINALS

FERNANDINA

Transportation Infrastructure Partners, a joint venture between Ridgewood Infrastructure LLC and Savage, has acquired Worldwide Terminals Fernandina, LLC (Fernandina), the manager and operator for the Port of Fernandina, Jacksonville, Fla., a strategic intermodal terminal handling essential bulk, breakbulk, and containerized cargo. The port provides mission-critical transport, logistics management, and product handling services to a diverse customer base. Ridgewood Infrastructure, a leading infrastructure investor in the U.S., and Savage, a global transportation and materials handling company, established Transportation Infrastructure Partners to jointly acquire and operate essential transportation and logistics infrastructure throughout the U.S. Fernandina is Transportation Infrastructure Partners’ second acquisition, complementing the joint venture’s successful Carolina Marine Terminal operations in Wilmington, N.C. The port is a strategic intermodal terminal handling essential bulk, breakbulk, and containerized cargo.

BIZ NOTES

FMD LAUNCHES NEW TRAINING AND SERVICE CENTER IN CHESAPEAKE

Fairbanks Morse Defense (FMD), a portfolio company of Arcline Investment Management, is launching a 45,000-square-foot training and service center campus in Chesapeake, Va. The defense contractor will move its existing service center from Norfolk, Va., to the Chesapeake campus to add a stateof-the-art training facility and further expand advanced service support for its customers. The move represents a $13 million investment in the community. “Training is the forefront of good maintenance practices, and Fairbanks Morse Defense’s training center is incorporating our cutting-edge mixed reality training technology to provide the most comprehensive, interactive marine equipment training solution available,” said Jamie McMullin, FMD president of services. On completion in 2023, the site will create approximately 50 new jobs.

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