Marine Log July 2018 by Marine Log

arine oG M L www.marinelog.com

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

Repairs Turn Green

July 2018

Annual Gulf Coast Headliner Research Vessels Get Makeover

Jones Act: Whatâ&#x20AC;&#x2122;s the Real Cost to Puerto Rico?

Visit Us at Booth #2517 November 28-30 in New Orleans, LA

CONTENTS

S12

Departments

Features

2E ditor’s Column

CEO Spotlight Q&A with Anselm Gehling Marine Log chats with the CEO of the Dr. Peters Group

GULF COAST HEADLINER •W orking Towards Zero: Conversion of Gee’s Bend Ferry • Vane Brothers Converting Tugs, Barges to ATB Units • MPT: Building a Brighter Future • Yards Look to Expansion to Strengthen Repair Business • Metal Shark Acquires Horizon Shipbuilding …And much more

Opinion The Jones Act: What’s the Real Economic Costs for Puerto Rico? John D. McCown explores what’s really at stake

Plastics, It’s What We’re Drinking

4 I ndustry Insights 6M arine Innovations 7W ellness Column Better Brain Series Part II: A Smart Design 8 Update onstruction Begins on Canada’s C First Joint Support Ship • HII’s Newport News’ 7,000 Job Initiative • Crowley Recognized for Relief Efforts • An Old Ferry Finds New Purpose

Cover: Remontowa, Top, left: C&C Marine; top, right: TOTE Maritime

•

12 Inside Washington Committee to Review Maritime Bills, El Faro Legislation

Green Repairs Environmental regulatory compliance headaches for ship owners equals increased business for international ship repair specialists

27 Newsmakers TOTE Names New Leadership for Puerto Rico & Alaska

28 Tech News Advanced Floatel to Add ABB OCTOPUS

32 Safety First Don’t Pump Up the Volume: Protect Your Hearing

Ship Repair Life Extension Regular US Navy overhauls and refits keep repair yards busy

Research Vessels Tough & Smart New research vessels are ready to take on coastal challenges and extreme conditions

Offshore Wind The New American Frontier Momentum is building in the U.S. for offshore wind, particularly along the Atlantic Seaboard

July 2018 // Marine Log 1

EDITOR’S COLUMN

MarineLoG JULY 2018 Vol. 123, NO. 7 ISSN 08970491 USPS 576-910 Subscriptions: 800-895-4389

Tel: +1 (402) 346-4740 (Canada & International) Fax: +1 (402) 346-3670 Email: marinelog@omeda.com PRESIDENT Arthur J. McGinnis, Jr. amcginnis@sbpub.com PUBLISHER & EDITOR-IN-CHIEF John R. Snyder jsnyder@sbpub.com Associate Publisher Jeff Sutley jsutley@sbpub.com MANAGING EDITOR Shirley Del Valle sdelvalle@sbpub.com

Plastics, It’s What We’re Drinking

e’re drowning in plastic. That’s a reasonable conclusion one could draw from reading the results of “Production, use, and fate of all plastics ever made,” a study by the University of Georgia that calculated the impact of China’s National Sword policy, which puts a permanent stop on importing non-industrial plastic waste as of January of this year. China will no longer take “foreign garbage.” Plastics are some of the most useful materials ever invented, but we need to find a better system to recycle and reuse them. According to study co-author Jenna Jambeck, Associate Professor at the University of Georgia’s College of Engineering, only about 9% of all plastic ever produced has been recycled, and the majority of it ends up in landfills or the natural environment. She estimates 111 million metric tons of plastic waste is going to be displaced because of China’s import ban through 2030, “so we’re going to have to develop more robust recycling programs domestically and rethink the use and design of plastic products if we want to deal with this waste responsibly.” Plastic items such as bags, bottles, fishing nets, toys, packaging, and discarded items also wind up in oceans, rivers, harbors, and waterways and can injure or kill marine life. They can also breakdown into microplastics in the water that eventually enter the food chain and drinking water.

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

Sailors in the recently concluded Volvo Ocean Race took water samples from oceans around the world and found that out of the 68 samples taken, only two did not contain microplastics. Even more sobering was a statistic cited at the Ocean Summit in Newport, RI, that said, on average, 94% of tap water in the U.S. contains harmful microplastics. The Ocean Summit was one of seven held in conjunction with the Volvo Ocean Race. In the U.S., several cities are banning the use of plastic bags and plastic straws. There’s also a Senate bill, S. 756, “Save Our Seas Act of 2017,” currently working its way through Congress that reauthorizes and revises the Marine Debris Program. It would require the National Oceanic and Atmospheric Administration (NOAA) to work with other agencies including the State Department to address international sources of marine debris and promote international action to reduce marine debris. It also makes funds available to NOAA to clean up and respond to severe marine debris events.

European EDITOR Charlie Bartlett charlie.bartlett@runbox.com WEB EDITOR Nicholas Blenkey nblenkey@sbpub.com Art Director Nicole Cassano ncassano@sbpub.com Graphic Designer Aleza Leinwand aleinwand@sbpub.com MARKETING DIRECTOR Erica Hayes ehayes@sbpub.com PRODUCTION DIRECTOR Mary Conyers mconyers@sbpub.com REGIONAL SALES MANAGER Elaina Crockett ecrockett@sbpub.com SALES REPRESENTATIVE KOREA & CHINA Young-Seoh Chinn corres1@jesmedia.com CLASSIFIED SALES Jeanine Acquart jacquart@sbpub.com Circulation DIRECTOR Maureen Cooney mcooney@sbpub.com CONFERENCE DIRECTOR Michelle M. Zolkos mzolkos@sbpub.com

John R. Snyder

CONFERENCE ASSISTANT Stephanie Rodriguez srodriguez@sbpub.com

Publisher & Editor jsnyder@sbpub.com

CONTRIBUTORS John D. McCown Blue Alpha Capital

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

Emily Reiblein Crowley Maritime Corporation emily.reiblein@crowley.com

COPYRIGHT © Simmons-Boardman Publishing Corporation 2018. All rights reserved. Contents may not be reproduced without permission. For reprint information contact: PARS International Corp., 102 W 38th St., 6th Floor, New York, N.Y. 10018 Phone (212) 221-9595 Fax (212) 221-9195. For Subscriptions, & address changes, Please call (800) 895-4389, (402) 346-4740, Fax (402) 346-3670, e-mail marinelog@omeda.com or write to: Marine Log Magazine, Simmons-Boardman Publ. Corp, PO Box 3135, Northbrook, IL 60062-3135. POSTMASTER: Send address changes to Marine Log Magazine, PO Box 3135, Northbrook, IL 60062-3135.

2 Marine Log // July 2018

J.R. Snyder

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

Capt. Matthew Bonvento Good Wind Maritime Services goodwindmaritime@hotmail.com Simmons-Boardman Publishing CORP. 55 Broad Street, 26th Floor, New York, N.Y. 10004 Tel: (212) 620-7200 Fax: (212) 633-1165 Website: www.marinelog.com E-mail: marinelog@sbpub.com

A CRUISE SHIP THAT MOVES THOUSANDS OF PASSENGERS And a large-scale project where we were on board from the beginning Why does the world-renowned Meyer Werft shipyard team up with Viega time and again for numerous projects of this scale? In addition to the extremely reliable piping systems made from copper, copper alloys or plastic materials, Viega also supplies the know-how to go with them. Viega. Connected in quality.

Meyer Werft shipyard, Papenburg, Germany

viega.us/About-us

INDUSTRY INSIGHTS WELCOME TO Industry Insights, Marine Log’s quick snapshot of current trends in the global marine marketplace. Shipping on the Great Lakes - St. Lawrence Seaway is one of the key drivers of the U.S. and Canadian economies, moving millions of tons of valuable commodities such as coal, limestone, iron ore, steel, chemials, petroleum products, and grain, while creating more than 225,000 jobs and producing business revenues of $35 billion annually. This month’s infographic provides a closer look at recent trends in the Great Lakes.

Offshore Rigs Operating in the U.S. GOM (on or about June 1 of respective year)

Current Global Newbuilding Orders, By Vessel Type (as of June 27) TANKER

CONTAINERSHIP

2013

2014 2015 SMALL DRY BULK

2016

LPG

2017

LNG

2018

BULKER

119

16 20 15

Source: VesselsValue

Source: Baker Hughes

Great Lakes & Saint Lawrence Seaway Investment Spending on Port, Terminal & Waterway Infrastructure

Vessel Capital Investments

Limestone Trade at U.S.-Canadian Ports 9.32 2013

Canadian Flag $2,230.2

7.95 2014 9.89 2015

U.S. Flag $334.4

9.79 2016

U.S. $790.7 million

Other Flag $1,413.4

($ Mil. US)

8.77 2017

Canada $2,118.4 million

9.29 2018

(In million of tons, as of June of respective year)

U.S. vs. Canada

Source: Infrastructure Investment Survey of the Great Lakes and St. Lawrence Seaway System, Jan. 2015

Source: Lake Carriers’ Association

Recent Contracts, Launches & Deliveries Qty

Type

Owner

Austal USA, Mobile, AL

USS Tulsa (LCS 16)

U.S. Navy

2018-2Q

Bollinger Shipyards, Lockport, LA

FRC Forrest Rednour

U.S. Coast Guard

2018-2Q

Gladding Hearn, Somerset, MA

150-PAX Fast Ferry

MBTA

2018-2Q

Gulf Island Shipyards, Houma, LA

Regional Class Research Vessel

Oregon State University

2021-2Q

Master Marine, Bayou La Batre, AL

Gee’s Bend Ferry Conversion

ALDOT

2018-3Q

Shipyard

Source: Marine Log Shipbuilding Contracts

4 Marine Log // July 2018

Est. $

Est. Del.

Marine Innovations BASS Launches BASSnet Version 2.10 BASS has launched BASSnet Fleet Management Systems version 2.10. The system has been optimized for integrated, powerful performance across entire fleets. The system can seamlessly be integrated with a BASSnet suite of products including BASSnet Risk Management and BASSnet Projects (DryDock) and BASSnet Risk Management. A new “Equipment Setup” feature allows the user to create and manage a library of machinery equipment by Maker and Model. It also contains the equipment’s Standard Instructions, Materials and Documents. bassnet.no

MobileOps Platform to be Used Across Foertsch Group’s Entire Fleet to Optimize Operations Construction services and vessel operator Foertsch Group has signed a deal with MobileOps, Inc. Under the agreement, the MobileOps Platform will be utilized across Foertsch Group’s fleet of vessels to bolster its safety, maintenance, and Subchapter M compliance initiatives. The MobileOps Platform is a cloud-based subscription solution that includes both a web application and an offline-capable companion application called Voyager. It brings all vessel operations data onto one simple, easy to use platform. www.mobileops.co

NRG Marine Sonihull8 Protects Raw Seawater Pipework NRG Marine will protect the raw seawater pipework on three LPG tankers belonging to Norbulk Shipping. NRG Marine’s ultrasonic anti-fouling system, Sonihull8, reduces Capex and lifetime maintenance costs by up to 95% and has zero poisonous environmental legacy. The system uses ultrasonic pulses to prevent marine organisms from colonizing on solid surfaces that are exposed to raw seawater. By protecting raw seawater circulation pipework against marine bio-fouling the system prevents blockages and possible damage due to overheating. www.nrgmarine.com

Ocean Guardian Partnership to Lead to Safer Navigation, Easier Compliance Integrated navigation solutions provider Marine Press has partnered with Total Marine Solutions and Brenock to help advance the industry into its digital future. Under the partnership, Marine Press will offer Total Marine Solution’s Ocean Guardian as an embedded software in its SeaPassage suite of integrated e-navigation solutions—bringing voyage planning and environmental operations together for safer navigation, easier compliance and more efficient workflow. Brenock will help integrate the solutions. www.oceanguardian.com

Hougen Manufacturing, Inc. Launches New Environmentally Safe RotoGel Cutting Lubricant Hougen Manufacturing, Inc., has introduced RotaGel Cutting Lube, an industrial, environmentally safe lubricant that provides cutting tools with superior protection. Designed for use on all metals, RotaGel has properties that adhere to the tool, reducing friction throughout the cut and increasing the tool’s life. The non-toxic, biodegradable lubricant comes out as a creamy gel and is formulated with a Hougen blue color, enabling the operator to gauge where the lubricant is applied and assure thorough coverage. www.hougen.com 6 Marine Log // July 2018

Wellness Column

Better Brain Series Part II: A Smart Design Fatty Acids

ast month we discussed brain shrinkage and its association with mental decline. This month we are looking at the big impacts of three tiny micronutrients on brain health. These three stand out in the research as front line brain builders: Vitamin D, The Ks, and Fatty Acids.

Shutterstock/Ekaterina Markelova

Vitamin Ds Our bodies make Vitamin D from sunlight. UVB strikes skin and reacts with a cholesterol substance called provitamin D3 to form Vitamin D3. Vitamin D3 activates our brain’s memory and learning pathways, and pushes signaling and growth in the central nervous system. Researchers at the University of Wisconsin School of Medicine and Public Health found that when Vitamin D levels are low, individuals performed poorly on tests of mental aptitude and are twice as likely to be cognitively impaired compared to those with optimum D levels. The amount of Vitamin D3 you make from the sun depends on your skin’s melanin levels. Darker skin requires more sun to make Vitamin D3. Levels can also depend on other factors like BMI, medications, etc. Testing your levels with your Doctor is the best way to know where you are and how to optimize levels. Vitamin D3 is not overly prevalent in food, it can also be found in items like cod liver oil, beef liver, wild salmon, mackerel, sardines, eggs, some milks and tuna. There are also many foods in the kitchen that are “fortified with Vitamin D.” There are several types of Vitamin D, D2 (ergocalciferol) and D3 (cholecalciferol) used in fortification.

Vitamin Ks Vitamin K research shows all sorts of benefits to the human body, including reduction in heart attack risk, nervous system support, and brain fortification. Ks appear to help metabolize a class of compounds found in brain cells that control motor and cognitive function. K1 and K2 are also associated with anti-inflammatory properties, helping to protect you against damaged cells, present

Vitamin Ds, Vitamin Ks, and Fatty Acids have a big impact on brain health

in diseases like Alzheimer’s and Parkinson’s. Vitamin K1 (phylloquinone) and K2 (menaquinone) are the two main K categories in research. Vitamin K1 acts as a coagulant and is present primarily in plant foods like spinach. Vitamin K2 is the one notably changing brain health by acting as a binder to calcium, regulating its circulation around the body. This potentially lowers the risk of building arterial and brain deposits of calcium seen in diseases like Alzheimer’s and heart disease. K2 is found in animal products, well fermented foods like pickles, cheeses like Brie, and can be made in your gut if you have the right bacteria.

Your brain is fat (60% fat), therefore it is no surprise that fat is critical to its maintenance and optimum functionality. Research suggests that Omega-3 PUFAs (polyunsaturated fatty acids)—specifically DHA (docosahexaenoic acid) and EPA (eicosapentaenoic acid)—have protective effects against age-related decline. DHA helps support developing brain structure, mental development, speeds up nerve messengers, and boosts the immune system. Research also supports the role of Omega3s in reducing inflammation that happens on a cellular level (the hallmark of many age-related diseases). There is also a growing body of research showing Omega-3s have impact on anxiety and violent behavior. In prison studies where Omega-3s were supplemented to the population, violent behavior decreased by nearly 40%. The body cannot produce Omega-3s (EPA & DHA), they must be eaten. Their main dietary source is fish and pastured/ grass fed animals (or anything derived of pastured animals like milk, eggs, cheese, etc). A can of sardines, salmon, tuna, etc. can all be dietary sources of EPA and DHA. Other plant sources like olive oil are also available, however not all Omega-3s are equal. Therefore, receiving Omega-3s from a variety of sources both plant and animal is worthwhile.

A Note About Smart Design When unable to get foods that account for your micronutrient needs supplementation can help. Keep in mind that micronutrients rarely act alone, requiring others to act optimally. For example, Vitamin D needs Magnesium to work, Vitamin K2 breaks down more effectively with Vitamin D (supported by Magnesium) and all together the three help the absorption of Calcium. However, when you eat an egg you get D3, K2, Magnesium and Calcium in one package. Well-cultivated, well-grown food is smartly designed by nature. Supplements, sometimes not so much. Nothing in this article constitutes medical advice. All medical advice should be sought from a medical professional. Emily Reiblein

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

July 2018 // Marine Log 7

Update Canadian Minister of Defense Harjit Sajjan marks the start of construction on the first JSS

Shipbuilding Boost

Construction Begins on Canada’s First Joint Support Ship Seaspan Shipyards has kicked off construction on the first of two Joint Support Ships (JSS) being built for the Royal Canadian Navy (RCN). At over 173 m in length and with a design displacement of nearly 20,000 tonnes, the JSS will be among the largest ships built on Canada’s West Coast. The JSS will support RCN’s work both at home and abroad, performing defense and humanitarian missions. The ships, which will later be named Her Majesty’s Canadian Ships (HMCS) Protecteur and Preserver, will carry provisions to other vessels, offer medical and dental facilities, and provide support for helicopter operations and equipment repair. Br ian Car ter, Pre s i den t & CE O of Seaspan Shipyards said the start of construction “is important not only for our company

and customer, but also for Canada’s shipbuilding industry and the thousands of hardworking women and men it employs.” At its peak, work on the JSS will suppor t 1,000 jobs for tradespeople and approximately 300 office staff at Seaspan’s Vancouver Shipyards. Mr. Carter also added that the JSS serves as a “demonstration of how shipbuilding is back in Canada.” Under the country’s National Shipbuilding Strategy (NSS), Canada has been able to rebuild its shipbuilding industry—fulfilling NSS’ promise of building ships in Canada, by Canadians. Under the program, Seaspan is the nation’s non-combat shipbuilder of choice, building ships for the Canadian Coast Guard and RCN. To date, Seaspan has $600 million in contracts and has engaged approximately 500 Canadian firms.

Tanker Captain Fined for ISM Code Deficiencies A U.K. court has imposed penalties totaling £25,761.99 (a little over $34,100) on the captain of a Russian oil tanker for breaching the International Safety Management (ISM) Code in a prosecution brought on by the Maritime & Coastguard Agency (MCA). Vitaliy Trofimov, Captain of the Russian registered 85 m long tanker Tecoil Polaris pleaded guilty to serious non-compliance of safety requirements which placed the vessel, which was supposed to be loaded with 1,665 tonnes of lubrication oil, at risk. He was fined £1,400 ($1,856) in Hull Magistrate’s Court and ordered to pay £24,361.99 ($32,311.51) in costs. 8 Marine Log // July 2018

According to the MCA, the vessel arrived at Humber Port on the evening of June 5, 2018, traveling from Finland. Upon inspection, MCA inspectors found a catalog of deficiencies in navigation and safety equipment, together with significant noncompliance with the ISM code—including not having correct navigation charts, navigation equipment that didn’t work, and defective lifesaving equipment. “This was an extremely serious breach of the ISM code,” said Mark Flavell, MCA’s Lead Investigator, “the captain showed complete disregard for the safety of his vessel and crew operating the vessel.”

BIZ NOTES Twin Disc to acquire Veth Propulsion In its efforts to diversify its product portfolio and expand its market penetration, Twin Disc, Inc., Racine, WI, has entered into a definitive agreement to acquire Veth Propulsion Holding, B.V. and its wholly-owned subsidiaries. Headquartered in the Netherlands, Veth Propulsion is a manufacturer of azimuth rudder propellers, thrusters and generator sets, and is a supplier and repairer of diesel engines. “Veth Propulsion strategically expands our global market opportunity, increases our size, scale, and scope within the marine industry, and diversifies our end-market penetration,” says John H. Batten, President and CEO of Twin Disc. The purchase price is approximately $58.6 million (EURO 49.7 million) plus net cash, with potential adjustments based on Veth Propulsion’s working capital as of the closing date, and will be financed via a combination of cash and new debt facilities. The acquisition is expected to be done by the end of the month.

Update

Decatur Marine Audit & Survey Approved as TPO for AWO’s RCP The American Waterways Operators (AWO), the U.S. national association for towboat, tug, and barge owners and operators, has approved Decatur Marine Audit & Survey as a third party organization (TPO) authorized to conduct audits of its member operations as part of its Responsible Carrier Program (RCP). The RCP, a safety management system for tugboat, towboat and barge companies, requires AWO member companies to undergo periodic management and vessel audits conducted by an independent third party. Christian Mollitor, Managing Director of Decatur Marine, explains that the company, along with its parent company and affiliate companies, “has already performed more than 31,000 audits and inspections.” As a U.S. Coast Guard-approved TPO, Decatur Marine provides Subchapter

M Towing Saftey Management System audit and survey services for tugboat and towboat owners and operators across the United States, maintaining an extensive network of experienced nautical inspectors from Seattle to Puerto Rico and from Alaska to the Panama Canal. Under Subchapter M rules, towing vessels with keels laid or major conversions on or after July 20, 2017 are required to meet 46 CFR Subchapter M and obtain a Certificate of Inspection (COI) prior to operating. Vessel owners and operators can either opt to undergo an annual Coast Guard inspections or adopt a Towing Safety Management system (TSMS). Beginning July 20, 2018, a portion of existing towing vessels will have one year to meet all of Subchapter M requirements and obtain COIs. Owners or managing operators of more

than one existing towing vessel required to have a COI must ensure that each existing towing vessel under their ownership or control is issued a valid COI according to the following schedule: • As of July 22, 2019, at least 25 percent of the towing vessels must have valid COIs on board; • As of July 20, 2020, at least 50 percent of the towing vessels must have valid COIs on board; • As of July 19, 2021, at least 75 percent of the towing vessels must have valid COIs on board; • As of July 19, 2022, 100 percent of the towing vessels must have valid COIs on board. Owners or managing operators of only one existing towing vessel required to have a COI must ensure the vessel has a valid COI by July 20, 2020.

Virginia Supports HII’s Newport News in 7,000 Job Hiring Initiative T h e Co m m o n w e a lt h of Virginia is initiating a partnership with Huntington Ingalls Industries’ Newport News Shipbuilding division to support a major hiring initiative. The shipbuilder anticipates hiring almost 7,000 people, including creating 2,000 new jobs, in the city of Newport News, VA, over the next five years. These new hires will support Newport News Shipbuilding’s contract to build significant components for the new Columbia-class submarines, along with its existing product lines, including the construction of Virginia-class submarines, the refueling and complex overhaul and defueling of the Nimitz-class aircraft carriers, and the construction of Ford-class aircraft carriers. In addition to this significant hiring initiative, Newport News Shipbuilding is retraining employees over the next five years to incorporate new digital shipbuilding technology and is making nearly $1 billion in capital investments in the company’s facilities and technology infrastructure. The new partnership will be led by Virginia’s Secretary of Commerce and Trade, Brian Ball, who will coordinate support from existing economic development programs for Newport News Shipbuilding’s major hiring and retraining initiatives. This partnership will be aided by various state agencies, including Virginia Economic Development Partnership (VEDP), the Virginia Community College System

(VCCS), the Virginia Employment Commission (VEC), and the Virginia Office of Veterans and Defense Affairs. “Newport News Shipbuilding’s success is important not just for Hampton Roads, but for the entire Commonwealth. Therefore, it is critical that we support growth of this magnitude with an innovative partnership between state agencies that will address the company’s workforce and training needs and supply a pipeline of skilled talent,” said Virginia Governor Ralph Northam. “We have a responsibility as a Commonwealth to ensure that every single one of these jobs gets filled with a skilled and

trained Virginian who is ready to succeed,” he added. “As we continue to transform our business, we look forward to recruiting, training and retaining talented men and women who will help meet our workforce needs now and into the future,” said Newport News Shipbuilding President Jennifer Boykin. “This effort requires strong community leadership. That’s why we are excited about this partnership with the Commonwealth. Working with government, business and educational systems ensures we have the additional resources necessary to continue our investment in our greatest resource—our people.”

July 2018 // Marine Log 9

Update

First LNG Bunker Vessel for South East Asia

Crowley Recognized for Relief Efforts in PR The Seamen’s Church Institute (SCI)

has awarded Crowley Maritime Corporation a Humanitarian Award for its relief efforts in Puerto Rico following Hurricane Maria. The award was presented during the 41st Annual Silver Bell Awards Dinner. Accepting the award on behalf of the company was Tom Crowley, Chairman and CEO of Crowley and Jose Nazario, the company’s Director of Finance in Puerto Rico. Just two days after the storm—and within hours of the U.S. Coast Guard reopening San Juan harbor— more than 300 union and administrative Crowley employees resumed services and reopened company facilities, including a warehouse and the Isla Grande terminal, and began discharging cargo from vessels to support relief efforts. Since then, said David Rider, President and Executive Director of SCI, “Crowley has offered almost 24/7 service to Puerto Rico, increasing its capacity by 67 percent, transporting more than 100,000 TEUs of relief and recovery supplies, delivering more than 40,000 electrical poles to restore the power supply and more than 7,000 transformers for the electric grid; not to mention the power restoration equipment, oversized drill, bridge rebuilding supplies, fuel truck and 177,000 gallons of JetA1 fuel.”

10 Marine Log // July 2018

Tom Crowley pointed to the work done by Crowley’s team following Maria as a real source of pride: “Many of our employees have friends and family that were directly affected by the disaster and many are residents of Puerto Rico themselves. Their tireless commitment and focus on finding solutions that make an impact continues to be truly impressive and deserving of our respect and appreciation. As a company, we have long since been committed to the people and businesses of Puerto Rico, through the good times and the challenging ones, this response is an extension of that.” Nazario also spoke passionately saying, “The next day, after confirming that my family was OK, I went to the terminal to assess the damages and I found something incredible. Ninety-six percent of our employees showed up to work. You may ask why did people do that? And there is only one word that describes that—commitment. Commitment to Crowley and commitment to Puerto Rico—because they knew that in those Crowley containers was the food, ice, water, fuel, construction material for the recovery of the island.” SCI also awarded Trailer Bridge and TOTE Maritime with humanitarian awards for their recovery efforts in Puerto Rico.

Keppel Singmarine Pte Ltd, a subsidiary of Keppel Offshore & Marine (Keppel O&M) has been tapped to build the first liquefied natural gas (LNG) bunkering vessel for South East Asia. The order for the 7,500m 3 LNG vessel came from FueLNG, a joint venture between Keppel O&M and Shell Eastern Petroleum (Pte) Ltd. The vessel will be based on the MTD 7500U LNG proprietary design from Keppel O&M’s ship design and development arm, Marine Technology Development. Its barge-like extended flat surface will enable bunkering for a wide range of vessels. The bunkering vessel will be fitted with dual-fuel generator engines and will be able to harness boil-off gas, a by-product of bunkering operations as well as the continuously evaporating LNG in the cryogenic tank. It will also feature a twin screw azimuthing propulsion system—allowing crabbing maneuvers during bunkering operations and reducing fuel consumption and emissions. The LNG bunker vessel is to be completed third quarter 2020. Over at Keppel O&M’s Keppel FELS, the shipyard recently delivered the state-ofthe-art jack-up rig, Skald, to Borr Drilling Limited. Built to Keppel FELS Super B Class design, Skald is capable of operating in 400 ft of water depth and drilling to 35,000 ft.

Update

An Old Ferry Finds a New Purpose in Life After making thousands of trips shuttling passengers and their vehicles between Cape Henlopen, DE, and Cape May, NJ, the 43-year-old car ferry M/V Twin Capes made her final voyage on June 15 to the bottom of the Atlantic ocean. The old ferry was sunk and has found new life as part of Delaware’s Del-Jersey-Land Inshore Artificial Reef. The artificial reef, which is 26 miles off the Delaware and New Jersey coast, provides recreational opportunities for fishermen and divers. The Twin Capes was purchased from the Delaware River and Bay Authority (DRBA) last year by the Delaware’s Department of Natural Resources and Environmental Control (DNREC) for $200,000 in preparation for making it part of the reef. Built in 1974 by Todd Shipyards in Houston, the 320 ft Twin Capes made her last commercial trip for the DRBA in the summer of 2013. In the 1990s, DRBA had refit the Twin Capes with a new superstructure and four new decks, multiple lounges, a new pilothouse, and “shark-fin” smokestacks. The DRBA attempted to sell the 895-passenger, 100-car ferry, but found that “the market was thin for such a specialized

vessel,” said DRBA Director of Ferry Operations Heath Gehrke in a statement last year. DNREC’s Norfolk, VA-based marine contractor Coleen Marine sunk the vessel. Other vessels that are part of the reef include the ex-destroyer USS Arthur W. Radford and the Zuni/Tamaroa, the one-time harbor tug and Battle of Iwo Jima survivor turned U.S. Coast Guard cutter. The DRBA sold the Twin Capes last year because current ridership levels at the Cape May-Lewes Ferry are more than adequately served by its other three vessels, M/V Delaware, M/V New Jersey, and M/V Cape Henlopen. Additionally, the Twin Capes also was significantly more expensive to operate as compared with the other ferries in the DRBA fleet, requiring 17 crew members to operate and using 126 gallons of fuel per hour (nearly 50 percent more crew and about 25 percent in additional fuel than other DRBA ferries). DRBA also had to incur about $1.1 million in annual costs to keep the vessel mothballed since 2013. It was able to salvage about $230,000 worth of equipment, electronics, and engine components from the vessel.

Damen, Saab Take On Brazilian Corvettes Damen and Saab are coming together to compete for a project that will supply four Tamandaré Class corvettes to the Brazilian Navy. Under the partnership, Damen will supply its Sigma 10514 design—a proven platform that will be adapted to meet the Brazilian Navy’s needs. Saab will provide the complete combat system including the Saab 9LV Combat Management System (CMS). Known for its flexibility and easy integration of third-party modules, the Saab 9LV CMS is used by navies worldwide. The 105m Sigma 10514 can carry a crew of 120 and reach speeds up to 28 knots. It has been used for a variety of missions including naval patrol, search and rescue, humanitarian aid, anti submarine warfare, anti air warfare, and anti surface warfare.

WTF?! SUBCHAPTER M DEADLINE

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July 2018 // Marine Log 11

inside washington

Committee to Review Maritime Bills, El Faro Legislation have necessary safety equipment and timely weather forecast charts, and that voyage data recorders (VDRs) float free after an accident. The safety issues were cited by the U.S. Coast Guard in its final report on the sinking of the El Faro on October 1, 2015 during Hurricane Joaquin. All 33 on board were lost.

efore Congress was set to break for the July 4th observance, the Transportation & Infrastructure Committee was set to review and markup several pieces of maritime legislation, including a House bill introduced by Rep. Duncan Hunter (R-CA) aimed at addressing some of the safety issues that emerged in the wake of the tragic SS El Faro sinking. The bill, H.R. 6175, requires the Coast Guard to ensure proper vessel inspections are undertaken, that vessels and crew

Blue Technology Another legislation in the committee markup includes, H.R. 6206, “Coast Guard Blue Technology Center of Expertise Act,” which would direct the Commandant of the Coast Guard to create a “Blue Technology Center of Expertise” to promote awareness within the agency of the range and diversity of so-called Blue Technologies—emerging maritime domain awareness technologies, unmanned technologies—and how the use of such technologies could enhance mission readiness and performance.

Marine Debris There’s growing concern about marine debris and plastic refuse entering oceans, rivers and waterways. Plastic items such as bags, bottles, fishing nets, and discarded items can kill marine life. They can also breakdown into microplastics and eventually enter the food chain and drinking water. Senate bill, S. 756, “Save Our Seas Act of 2017,” reauthorizes and revises the Marine Debris Program to require the National Oceanic and Atmospheric Administration (NOAA) to work with other agencies to address international sources of marine debris and promote action to reduce marine debris. It also makes funds available to NOAA to clean up and respond to marine debris events; expands the Interagency Marine Debris Coordinating Committee to include a senior officials from State Department and Interior Department.

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12 Marine Log // July 2018

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CEO Spotlight

Q & A With

Anselm Gehling CEO, Dr. Peters Group By John R. Snyder, Publisher & Editor-in-Chief

nvesting in shipping is not for the faint of heart. The industry has been in a tough downcycle since the global financial meltdown and overbuilding across several sectors. There’s been a number of high-profile mergers and acquisitions, particularly in the containership sector. Demand, however, is starting to pick up across all sectors. Is it the right time to invest in shipping? To gain some insight into the market, MARINE LOG recently interviewed Anselm Gehling, the CEO and Chairman of the Dr. Peters Group, Dortmund, Germany, one of the most savvy investors in shipping, with decades of experience. Marine Log: Can you tell our readers about your background? Anselm Gehling: I have a background in law with a focus on M&A, Capital Markets and corporate law. I worked at various law firms as a lawyer and partner, before joining Dr. Peters Group as COO in 2011. In 2012, I was appointed CEO and Chairman of the Management Board. Today, I head up the segments corporate strategy, business development, communications and marketing as well as institutional and retail clients. In addition, I also oversee the areas of shipping and aviation.

14 Marine Log // July 2018

ML: Can you tell our readers about the Dr. Peters Group? AG: Dr. Peters Group is an investment and asset manager focusing on real assets across aviation, shipping and real estate since 1975. The company has deep sector experience in its core asset classes based on a long history of both acquisitions, as well as commercial and operational management, with the experience of investing $8.8 billion in specialist alternative assets. Having originally started and achieved significant scale as a manufacturer of unlisted closed-end funds for private investors in Germany, Dr. Peters Group started offering its capabilities to the international institutional investors. This manifested itself in a London Stock Exchange listing and an IPO of an aviation fund, DP Aircraft I (DPA.L), owned by leading UK institutional investors. Dr. Peters Group’s principle focus is on investments in sea-going commercial vessels, passenger and cargo aircraft and engines, and real estate. Dr. Peters Group and its subsidiaries currently manage assets with approximately $4.25 billion and employ over 170 people in Dortmund and Hamburg, Germany, and London in the UK.

ML: Dr. Peters Group is a financial and management holding company with investments in aircraft, real estate, and shipping. How does the Dr. Peters Group decide on what sectors to invest in and what funds to offer? AG: Dr. Peters Group’s philosophy is to create sustainable real asset investment products by structuring transactions with an attractive risk/return profile as a combination of asset and lease values. This typically involves new or nearly new assets with low risk of technological obsolescence, asset deployment to established and financially strong industrial customers and long or very long term time leases. In addition, the investment strategy includes a moderate use of leverage often with full amortization over the term of the lease and efficient and transparent fee structures. We are an investment and asset manager and offer full professionalism that includes analyzing the markets and worldwide assets. Our value proposition is based on managing all parts of the value chain of the ownership of real assets in-house by professionals with industry-specific know-how in all asset classes. This allows us to maximize the certainty of investor returns through complete asset life cycles, from acquisition or new construction, to maintenance, remarketing and disposal. ML: Shipping funds represent the largest investment by volume for Dr. Peters Group. How many ship funds are in your portfolio? With the current downturn in the shipping market, how have they been performing? AG: As one of the leading European players, Dr. Peters Group has been managing real asset investments since 1975. The group has experience investing in 88 vessels of about $4.7 billion in value across tankers, bulkers, containers and multi-purpose ships, typically deployed on long-term time charters to industrial customers. Dr. Peters Group has a strong and long-standing track record in shipping investments and is very experienced in both good and bad cycles. We control the full value chain of real asset investing including ship management. In this context, for example, we manage and operate one of the largest independent VLCC fleets in the world on behalf of our investors. With our specialized subsidiary DS Tankers, we offer a comprehensive in-house service to our partners, including professional technical management, reporting, chartering as well as vessel sale and purchase services. We have a lot of

Anselm Gehling experience in the tanker segment and continue to see growth possibilities there. Our strategic focus has shifted from the container segment towards new and profitable sectors, such as MPP and perhaps dry bulk, depending on the level of possible profits for our investors. ML: DS Schiffahrt GmbH & Co. KG provides technical and commercial ship management. What does that entail? AG: DS Schiffahrt GmbH & Co. KG offers ship owners comprehensive and professional services for all ship management tasks. Services include technical management, commercial management, new building planning and supervision as well as other consultancy services such as technical surveys, inspections and up-todate reporting. Over the years, DS Schiffahrt has earned a reputation as a trustworthy partner in the containership and bulk carrier business. The team is committed to the highest quality and security standards in order to offer the owners the most efficient and professional management services required. Through regular repor ting systems DS Schiffahrt keeps their clients up-todate on the technical and financial status of their ships. Quality and professional technical management services are vital to ensure that the ships are always maintained to the full satisfaction and requirements of the chartering customers. ML: What types of services do the ships operate in? What ports might we see them operate in?

AG: Since 1990, the company has invested in 88 vessels with a total value of about $4.7 billion, offering investment opportunities in a diverse range of shipping products including MPPs, oil tankers of different sizes such as VLCC, Suezmax, Aframax and Panamax, as well as container vessels and bulk carriers. DS Multibulk GmbH operates and charters MPP ships which can transport

We currently see growth opportunities in selected areas of the maritime industry, particularly crude tankers, MPPs, and perhaps also in dry bulk extremely heavy goods such as wind turbines, small yachts or capital goods. ML: How is environmental regulatory compliance impacting Dr. Peters Group investment decisions? AG: With new maritime investments, Dr. Peters Group pays great attention to implementing sustainable practice and measures aimed at environmental protection based on

statutory requirements. ML: Where do you see opportunities emerging in shipping? Do you have any plans to add new ships to your portfolio? AG: Dr. Peters Group is continuously working on diversifying its product portfolio and offer investment opportunities with long term equity capital finance in shipping, such as bonds, and mixed funds with varied shipping products. We consider shipping a very attractive real asset class, particularly at the moment. A rising freight rate environment for many vessel types means that attractive income returns are available, together with a low entry point in the cyclical range of asset prices. We currently see growth opportunities in selected areas of the maritime industry, in particular crude tankers, MPPs, and perhaps also in dry bulk. We believe these sectors offer the most attractive asset values and strongest upside in earnings. In the aftermath of the financial crisis, availability of debt finance continues to be restricted and this generates attractive tactical and longer-term opportunities to deploy equity and structured equity in the sector. Dr. Peters Group is working on enlarging our fleet v ia entities w ith larger portfolios compared with asset-backed KGs that often include just one or two ships. The strategic focus is on targeting institutional clients and family businesses. With an overall fleet size target of 40-50 vessels, our goal is to double our managed fleet size in the coming years.

July 2018 // Marine Log 15

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July 2018

Gulf Coast Headliner

Fish

Tale Thoma-Sea Reels in a Big One

Gee’s Bend Gets Electric

Vane’s Growing ATB Fleet

Reporting on marine business in the U.S. GULF COAST

Gulf Coast Headliner

Working Towards Zero Conversion of historic Gee’s Bend ferry will make it the first zero-emission car ferry in U.S.

HMS Ferries

or k i s u n der w ay a t Master Marine, Inc., Bayou La Batre, AL, on the conversion of an existing diesel-powered vessel to what will be the first all-electric, zero-emission car ferry in the United States. The project is being backed in part by a $1.09 million Diesel Emissions Reduction Act (DERA) grant awarded by the U.S. Environmental Protection Agency (EPA) to the historic Gee’s Bend Ferry in Wilcox County, AL. The EPA is funding the repowering project through the Alabama Department of Transportation (ALDOT), which owns the ferry, as a part of the National Clean Diesel Funding Assistance Program. The grant was announced at an event in 2017 hosted by state, federal and local officials to celebrate 10 years of ALDOT ferry service between Camden and Boykin (Gee’s Bend). Gee’s Bend— Boykin as it is officially known—has an interesting place in the civil rights movement and folk art history. The rural community’s inhabitants are descendants of slaves. During the civil rights era in 1962, the ferry service was halted in what many perceived was a move to curtail residents of Gee’s Bend from registering to vote

in Camden, the county seat. Elimination of the ferry service meant residents of Gee’s Bend had to drive more than an hour to Camden. After 44 years without the ferry, service was restarted in 2006. Gee’s Bend is also known for its quilting tradition. Quilts created by local residents

The U.S. market is just waking up to the potential of electrification

have gained national acclaim for their unique patterns based on Native American and African traditions. They have been exhibited at such renowned museums as the Museum of Fine Arts in Houston, Philadelphia Museum of Art, and Whitney Museum in New York. Now, once again the tiny rural town is

gaining national recognition with what will be the first all-electric car ferry in the U.S. The double-ended, steel-hulled ferry is managed and operated by HMS Ferries, Inc., part of HMS Global Maritime, under a contract from ALDOT. HMS Consulting & Technical, LLC, another unit of HMS Global Maritime, put together an extensive RFP spec for the conversion of the vessel. Built by Bonner Yachts, the M/V Gee’s Bend has the capacity to carry up to 129 passengers, 3 crew, and 24 vehicles. It has an overall length of 136.3 ft (with its end ramps), beam of 42 ft, and depth of 5 ft. Its existing propulsion system consists of four 125-hp John Deere diesel engines connected to four fixed-pitch propellers through reversing reduction gears, two at each end of the vessel. It also has four rudders, two at each end. A 23-kW generating set provides electrical power to the vessel for hotel and auxiliary services. The crossing from Gee’s Bend to Camden, 1.5 nautical mile over the Alabama River, takes about 15 minutes. At either end of the run, the vessel waits about 25 minutes while loading and unloading vehicles. The ferry makes five round trips per day. Master Marine, which performs both July 2018 // Marine Log S3

Gulf Coast Headliner

S4 Marine Log // July 2018

will have to perform is blasting and painting, the removal of the four existing main diesel engines, reduction gears, and foundations, repair deck plating and bulkhead penetrations, ship service power generator, auxiliary piping, fuel tank, exhaust, and electrical equipment. “There will be no combustion equipment onboard, no fuel, and no exhaust,” says Sean Caughlan, Project Manager for naval architect and marine engineering firm Glosten, Seattle, WA. Caughlan says that two battery banks will provide all the power for ship propulsion and auxiliaries. He says that Glosten conducted a feasibility study for the project in 2016 and began the contract design about a year and a half ago. Glosten has had to work closely with the U.S. Coast Guard because the vessel is a novel design. “It’s really been a good project to get our feet wet because it is on a much smaller scale,” he notes. Glosten is already building a strong portfolio of marine hybrid and all-electric propulsion work for Kitsap Transit, Skagit County and Washington State Ferries. According to Jon Diller, Business Development Manager, Spears Power Systems, the company is supplying an energy storage system based on its Trident SMAR-11N energy storage archetype. “This system uses NMC chemistry and offers more energy density by 30% than any NMA Type 1-approved system on the market,” says Diller. “It is pending imminent approval by DNV-GL, NMA, and BV. It is being deployed on several U.S. and

European vessels and is in the process of USCG approval as well.” Diller adds, “We are contracted for one other conversion / retrofit and several newbuilds. In Europe newbuilds far outnumber conversions in the passenger market – retrofits are predominant for platform supply vessels. In the U.S., where lithium ion is newer, retrofits are more common in the passenger market, and the PSV market is just waking up to the potential of electrification—but they are paying attention.” The conversion of the ferry is expected to be completed this August.

Top: HMS Ferries, Bottom: Shutterstock/ neftali

new construction and repair at its shipyard in Bayou La Batre, AL, was recently selected as the prime contractor for the conversion of the Gee’s Bend ferry. “We’re happy to be part of it,” says Steve Roppoli, Master Marine’s Vice President, Sales. “It’s really a collaborative effort.” For the conversion, Roppoli says Master Marine is working with three lead subcontractors: systems integrator Marine Interface, Inc., Northport, NY, electric propulsion controls and accessories supplier American Traction Systems, Fort Myers, FL, and energy storage systems supplier Spear Power Systems, Grandview, MO. Some of the equipment that will be supplied by Marine Interface, East Northport, NY, includes the four 150 hp propulsion motors, 3:1 reduction gears, motor couplings, propeller couplings, shafts, propellers, shaft seals, control consoles, 24V batteries, 24V battery charger, auto selector, control enclosure, and pilothouse displays. American Traction Systems (ATS), Fort Myers, FL, will provide the propulsion rack assemblies, ATS panels, load balance panels, transformers, shore power and generator panel, main auxiliary power enclosure, and Sine/EMC panels. ATS worked with Hornblower previously in 2008 on its first hybrid vessel and in 2012 on two others, the Alcatraz Clipper and Alcatraz Flyer, which operate to Alcatraz Island in San Francisco. It was able to leverage lessons learned in those projects, as well as the work it has accomplished in some 200 rail applications. Among the work that Master Marine

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July 2018 // Marine Log S5

Gulf Coast Headliner

Vane Brothers Converting Tugs, Barges to ATB Units

The Vane Brothers Company, Baltimore, MD, is currently transforming two new 4,200-hp tugs to Articulated Tug Barge (ATB) tugs at St. Johns Ship Building in Palatka, FL. The naval architect that is leading the ATB tug design conversion and modifications is Kimia Jalili, P.E., Entech Designs, LLC, Kenner, LA. Entech Designs is working closely with the engineers at Beacon Finland Ltd.—makers of the JAK ATB coupling system— and the team at St. Johns Ship Building on the project. As Vane Brothers Port Captain Jim Demske points out, “All parties are working very closely to make these ATB units peak performers.” The two 100 ft x 34 ft Vane tugs being modified, the Charleston and Jacksonville, were still in the construction shed at St. Johns when Vane Brothers made the decision to convert them. Both tugs were part of a series of Elizabeth Anne Class tugs designed by Entech Designs and built by the Florida shipyard. “Much of the interior (living spaces and engine room) were completed on these two tugs, but many of the systems had not even been installed yet,” says Demske. “For the talented shipbuilders at St. Johns, it is a pretty straightforward conversion.” As part of the conversion, the Elizabeth Anne Class tugs are being fitted with Beacon Finland JAK 400 (Hydralok) pins, which S6 Marine Log // July 2018

are air actuated, then hydraulically locked. Demske describes the setup as “safe, quiet, and reliable.” The two tugs will be paired with two Vane Brothers 50,000 bbl barges that will undergo modifications. According to a Vane Brothers spokesperson, even though the tugs modifications have begun, it has not yet been determined where the barge modifications will take place. At this time, technical details are being discussed. Naval architectural firm NETSCo. has been selected to support the ATB conversion of the barges. NETSCo Vice President Jan Flores, P.E., says the firm is providing structural design of the new coupler skegs and midship section strengthening; Finite Element Analysis (FEA) of the new structure and transition to the barge; stability calculations; shipyard bid package; and ABS class approvals. “ATB units are getting much safer and more reliable now,” says Demske, “and the issues that earlier ATB units had with the connectors have, by and large, been alleviated. Vane approached cautiously to make sure that this is just what we would need and what our customers would want.” NETSCo’s Flores adds: “Certain ports will not allow a deep-draft barge to be towed when loaded. Traditionally, deep-draft barges have notches and tugs will be secured by wires to push the barge within harbors and waterways. However, weather is always a factor,

Photos, Top and Facing Page: Jim Demske

Vane’s ATB unit Assateague and the Double Skin 801 were built by Conrad Shipyards in Texas and Louisiana

and often these units will have to stay outside the port waiting for good weather to go into the notch. Adding a coupler arrangement that allows the tug to articulate within the notch of the barge, permits the tug to stay in the notch during the entire voyage, which eliminates the operation of getting in and out of the port. This is clearly a safer and more efficient operation.” Over the last two decades, most purpose-built liquid and dry bulk barges have been built as ATB units. Flores points out that owners have become increasingly aware that units that weren’t built as ATBs have clear trading disadvantages, making ATB conversions more attractive. Flores says that while the process for performing these conversions has become more standard, owners need to carefully consider the impacts on tug stability, fuel capacity, tug accommodations, and the gross tonnage of tug (if close to the uninspected threshold), as well as the consequences of high loads to barge structure, and the increased length on barge.

Vane Expands ATB Fleet The conversions are just part of Vane Brothers’ ATB fleet expansion. Earlier this year it added a third ATB unit to its fleet—the 4,400 hp tug Assateague and 80,000 bbl Double Skin 801 barge, built by Conrad Shipyards. Conrad’s Texas and Louisiana facilities are now turning out two more Assateague Class ATB tugs, the Chincoteague and Wachapreague, along with two double-hull tank barges, DS-802 and DS-803. The new series of ATB tugs are being built at Conrad’s Orange, TX, yard. Designed by naval architect Greg Castleman, Castleman Maritime, LLC, and classed ABS-A1 TUG, AMS, ABCU, each 110 ft by 38 ft tugs is mated to the barge using a Beacon Finland JAK 700 tug/barge coupling system. Delivery of both of these ATB units is expected to take place within a year’s time. Built with accommodations for up to 10 crew members, each tug has two 2,200 hp Cummins QSK60M, EPA Tier 3-compliant diesel engines. The engines are coupled to Reintjes WAF 873 gears that turn 102-inch four-bladed bronze propellers mounted on 9.5inch shafts. The Reintjes gears are being supplied by Karl Senner, LLC, Kenner, LA. Additionally, the tugs will each be fitted with two Cummins QSB7-DM-powered 125 kW generators providing electrical power and a Cummins-powered 60 kW emergency generator. Crew access to the barges is facilitated by a Schoellhorn-Albrecht custom gangway. Coastal Marine Equipment, Gulfport, MS, is supplying deck capstans on the tugs. Bristol Harbor Group, Inc. (BHGI), Bristol, RI, designed the series of three 403 ft x 74 ft x 32 ft ATB oil tank barges. Built by Conrad Deepwater South shipyard in Amelia, LA, the three barges are classed by the American Bureau of Shipping (ABS) ABS +A1, Unmanned, Unrestricted Oceans Service. For maneuverability, each barge is fitted with an Omnithruster model HT600 bow thruster. Each barge is equipped with a complete loading and discharging system in 10 tank compartments and includes a 10 MMBTU cargo thermal heating system of two Vapor Power, Model ONC-5937-AHK-50, 5 MMBTU/units. Each barge also has three John Deere, Model 6135AFM85 294kW generators and a John Deere, Model 4045 generator, 99kw.

The Jacksonville, one of two Elizabeth Anne Class tugs currently being converted by St. Johns Ship Building to operate as part of an ATB for Vane Brothers

July 2018 // Marine Log S7

Gulf Coast Headliner

Navy to Tap VT Halter Marine for T-AGS 67 Oceanographic Survey Ship

According to a pre-solicitation notice released this past June 2018, the Naval Sea Systems Command (NAVSEA) on behalf of the Support Ships, Boats, and Craft Program Office intends to issue a sole source solicitation to VT Halter Marine, Inc., Pascagoula, MS to procure

TAI Delivers Army Survey Vessel

a T-AGS Oceanographic Survey Ship. The notice says T-AGS 67 will be a follow-on ship to the T-AGS 60 Class program and is planned to be a modified repeat design of the current T-AGS 66 ship, the USNS Maury— delivered by VT Halter Marine to the U.S. Navy. The USNS Maury (T-AGS 66) measures 353 ft x 58 ft and is operated by the Military Sealift Command. The ship performs acoustic, biological, physical and geophysical surveys to acquire ocean environment information for the U.S. military. It has a speed of 16 knots, displacement of 5,000 tons, and complement of 24 civilians and 27 military personnel. USNS Maury (T-AGS 66) was named in honor of Commander Matthew Fontaine Maury, known as the “Father of Modern Oceanography,” who dedicated his life to the study of naval meteorology and oceanography, and contributed to the charting of wind and ocean currents.

New Orleans, LA, based Technology Associates, Inc. (TAI) has delivered the High-Speed Foil Assisted Catamaran Hydrographic Survey Vessel S/V Ewell to the U.S. Army Corps of Engineers (USACE) Norfolk District. The 61ft Ewell will conduct hydrographic surveys for USACE using multi-beam and single beam sensors. TAI was the prime design-build contractor and worked with Harvey, LA-based shipyard Aluma Marine to build the Ewell. Designed and built to Lloyd’s Register Special Service Craft rules, the Ewell is equipped w ith tw in 985 bhp MAN V8 propulsion engines which each turn a Hamilton waterjet allowing for quick mobilization and response at high speeds in excess of 34 knots. The vessel’s survey capabilities include Norbit Multibeam sonars and single frequency sonars mounted inside a retractable survey pod.

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Swiftships Wins LCU 1700 Earlier this year Swiftships, LLC, Morgan City, LA, was awarded an $18,053,376 fixed-price incentive contract for the detail design and construction of the Landing Craft, Utility (LCU) 1700. The LCU 1700 is intended to replace the currently in service LCU 1610 series. According to the U.S. Navy, vessels in the LCU 1700 class will measure 139 ft x 31 ft and will have a range of 1,200 nautical miles at 8 knots. The landing craft will have a displacement of 428 long tons and carry 13 crew members along with a military lift load of either two M1A1 tanks, or 350 combat troops, or 400 persons, or 170 short tons of cargo. Swiftships is contracted to deliver the LCU 1700 detail design and construction of one craft (including data license rights) approximately 31 months after contract award, with options for the construction of up to 31 craft with the latest delivery date, if all options are exercised, in 2027. The solicitation also includes options for product support, technical manuals; up to 10,000 hours of special studies services; a technical data package; and orders for interim support, engineering and industrial services, training, and shipping. The contract includes options that, if exercised, would bring its cumulative value to $429,422,280. The base work will be performed in Morgan City, Louisiana (83 percent); Houston, Texas (15 percent); and Virginia Beach, Virginia (2 percent), and is expected to be completed by July 2020.

Fabrication Starts on First Flight III DDG 51 Destroyer This past May, Huntington Ingalls Industries’ (HII) Ingalls Shipbuilding division began fabrication of the Arleigh Burke-class (DDG 51) destroyer Jack H. Lucas (DDG 125). DDG 125 will be the first “Flight III” ship in the Arleigh Burke-class of destroyers. Flight III will incorporate a new Advanced Missile Defense Radar (AMDR) that will replace the existing SPY-1 radar installed on the previous DDG 51 ships. “The start of fabrication on a new destroyer is always exciting,” Ingalls’ DDG 51 Program Manager George Nungesser said. “DDG 125 is no exception. Our shipbuilders have delivered 30 of these ships to the U.S. Navy and back-to-back building has allowed them to gain experience and talent that is unmatched in our industry. They are eager to use their skillset to incorporate the Navy’s Flight III modifications into DDG 125 and provide the Navy with yet another state-of-the-art ship.” The ship is named in honor of Capt. Jack H. Lucas, who, at the age of 14, forged his mother’s signature to join the U.S. Marine Corps Reserves during World War II. Lucas, then a private first class in the Marine Corps, turned 17 just five days before the U.S. invasion of Iwo Jima and stowed away on USS Deuel (APA 160) to fight in the campaign. During a close firefight with Japanese forces, Lucas saved the lives of three fellow Marines when, after two enemy hand-grenades were thrown into a U.S. trench, he placed himself on one grenade while simultaneously pulling the other under his body. One of the grenades did not explode; the other exploded but only injured Lucas. He is the youngest Marine and the youngest service member in World War II to receive the Medal of Honor.

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July 2018 // Marine Log S9

Gulf Coast Headliner

Thoma-Sea to Build Advanced Rolls-Royce Pelagic Trawler

Houma, LA, shipbuilder Thoma-Sea Marine Constructors, L.L.C. has signed a contract with Rolls-Royce Marine for the construction of a state-of-the-art pelagic trawler. The 100 meter-long vessel is to be built for the Seattle-based company Arctic Storm Management Group, LLC. The contract expands Thoma-Sea’s reach into a brand new segment. Walter Thomassie, Managing Director of Thoma-Sea Marine Constructor, says, “We are very happy about this contract which could open possibilities within a new segment for us. Our Louisiana-based shipyard and RollsRoyce have worked well together before, and we feel confident that this project will follow the same successful path.” According to Doug Christensen, CEO of

Arctic Storm Management Group the vessel will be “the largest and most advanced fishing vessel ever to be built in the U.S.” He adds, “The fact that both the design and the supply and integration of the comprehensive equipment package is provided from, and coordinated by, Rolls-Royce is a key enabler for us.” The new trawler is based on the RollsRoyce NVC 336 WP design arranged for pelagic trawl operation in waters on the North Pacific, where wild Alaska Pollock and cod fish will be caught. The trawler is the first Rolls-Royce design fishing vessel to be built at a shipyard in the United States and the design and equipment is the largest fishing vessel contract ever booked by Rolls-Royce with a value of about

£15 million (about $20 million). Rolls-Royce worked closely with Arctic Storm in developing this latest design and the vessel—which according to what Christensen told Undercurrent News, will be the first newbuild built for the Alaska Pollock fishery. The trawler will be equipped with a processing plant for fillet, surimi, fishmeal and fish oil, and will accommodate a crew of more than 150. In addition to the design, Rolls-Royce will deliver an integrated package of advanced ship technology and equipment to the vessel. Deliveries will include the propulsion system based around a Bergen B33:45 main engine in combination with Bergen generator sets. This arrangement is designed to optimize and meet the requirements for low fuel consumption, reduced emissions and low noise and vibration levels. Included in the Rolls-Rolls supply are also the bow thruster, deck machinery systems, automation & control systems, power electrical system, steering gear and a flap rudder. Commenting on the choice of RollsRoyce as the ship’s developer, Christensen added, “It is a critical factor to have a technology partner with a strong presence in the region who are able to support the construction of the vessel at the yard, in addition to having a strong service organization to support us during operations. We strive towards continuous improvement in everything we do, however this investment will take us a giant step forward.” Delivery is scheduled for 2021.

Master Marine Delivers Towboat to Waterfront Services Bayou La Batre, AL- based Master Marine, Inc. has delivered the third of what will be a series of four 67 ft x 28 ft towboats built for Waterfront Services Co., Cairo, IL, that will enable the company to meet Subchapter M requirements. The new series of vessels represent a fleet renewal for Waterfront Services Co., which provides tug and harbor services such as tug shifting and switching, towing, and fleeting on the Ohio and Mississippi Rivers. The new vessel, the Sam P. Hise, is powered by a pair of S6R2-Y3MPTAW Mitsubishi 603 hp Tier III diesel marine engines—supplied by Laborde Products, Inc.— operated at 1,400 rev/min and coupled to Twin Disc MG 5321, 5:1 reduction gears. RW Fernstrum provided the keel coolers. S10 Marine Log // July 2018

Sound Propeller Services, Inc. supplied 70” x 48” x 7: 4-blade stainless steel propellers that will provide thrust through two J&S Machine Works Inc. ABS Grade 2 propeller shafts. Thordon Bearings supplied its RiverTough propeller shaft bearings for a 6in diameter shaft, along with hardened shaft sleeves, SXL bearings for main and flanking rudders, TG100 tailshaft seals, and ThorPlas Blue steering linkage bushings. Meanwhile, Gulf Coast Air & Hydraulics Inc., Mobile, AL, provided the steering system and a pair of Quincy F325 reciprocating air compressors. Sam P. Hise has 11 in x 18 in rubber fendering around the entire vessel provided by Shcuyler Maritime, Broussard, LA. The

vessel is also fitted with a pair of Wintech, Bossier City, LA, 40-ton deck winches. Each vessel can hold 10,400 gallons of fuel, 4,359 gallons of potable water and 9,500 gallons of ballast water. The first in the series, Miss Deborah, was delivered October 2017, followed by the Tom Torretti, January 2018. The final vessel in the series, the Rick Pemberton, will be delivered later this year.

MPT: Building a Brighter Future for the Industry & Beyond

E l m e r a n d B e v e r ly M o r l e y founded Maritime Professional Training (MPT) 35 years ago with a simple premise: Make the Mariner Better. The school, located in Fort Lauderdale, FL, is now one of the biggest in the country with over 61,000 square feet of training space and one of the most state-of-the-art facilities in the industry—a tremendous resource for the maritime community. But MPT’s strengths don’t stop there. That founding principle of Making the Mariner Better has now evolved to include the community and beyond. Still at the helm at MPT, the Morley family continues to be the guiding hand behind not only the school but also their private foundation that supports community outreach efforts. Lisa Morley, Managing Director of the Foundation, and Ted Morley, Executive Director, both share the belief that if you have the ability and means to help those in need, you help. The cornerstone of their support is the Children’s Diagnostic and Treatment Center (CDTC). The Morleys suffered a tremendous loss with the passing of their youngest sibling, Michael, when he was a young child. That tragic loss shaped the

family and fuels their passion to help the sick and their families. The CDTC does just that by providing medical care, social services and other types of intervention to children and adolescents with chronic illnesses and developmental disabilities, while also providing support and education to their families. Ted Morley also honored his late brother Michael by naming his own son after him. The family has also funded a number of charitable events in his name. Beyond its work with CDTC, MPT is heavily involved in a variety of causes important to the extended MPT family. It holds events to raise awareness and funds for Heart Disease, Cancer Research and VA Assistance Programs, to name a few. MPT also provides support to community initiatives such as the Boys and Girls Club of Broward County. It started a program several years ago that provides over $50,000 a year in maritime merit scholarships. Additionally, after the loss of sister Amy Morley Beavers, the family setup a scholarship program in her name. As part of the Marine Industry Association of South Florida, every year MPT funds and actively participates in the construction of Habitat for Humanity projects

around Broward County. They also support the Marine Industry Cares Foundation through various outreach programs and are heavily involved in summer camps and the annual Plywood Regatta. Another area of great importance to the Morley patriarch was the sport of sailing and the art of seamanship. Elmer raised his family on a schooner and instilled in all of them a love for the sea. That tradition continues today with MPT and the Morleys actively supporting youth sailing in the community through support of the LYC Sailing Foundation. The organization is dedicated to promoting sailing and seamanship and was a natural fit for the Morley’s support. With Matthew, a third generation Morley, now graduating from Mass Maritime Academy and eyeing a future as a Chaplain, and Michael, his cousin, now competing in National and International sailing regattas while being a mentor to younger sailors, it’s safe to say the love for the sea as well as the love of giving continues and will continue for the Morley family for years to come.

Part of Marine Log’s #MaritimeCares Series July 2018 // Marine Log S11

Gulf Coast Headliner

Yards Look to Expansion to Strengthen Repair Business

As part of its ongoing expansion program, Belle Chasse, LA- based C&C Marine and Repair has announced the expansion of its main yard, acquiring 1,000 linear feet of bulkhead and the addition of a 16,725 square foot Spooling Shop with two 20-ton overhead cranes. “For the past 20 years, C&C Marine and Repair has been continually growing, but over the past two years the growth has been accelerated,” explains Tony Cibilich, Owner of C&C Marine and Repair. “It started with the acquisition and expansion into the old Bean Dredging yard and continues with this latest acquisition of a portion of the Versabar yard.” This latest expansion follows a number of completed and ongoing improvement projects at C&C Marine and Repair—among them the completion of a new corporate office, the extension of its dock, and currently the construction of 83,350 square foot of climate-controlled, robotic blast and paint buildings. “All of these additions,” says Cibilich, position the yard to “maintain its role as a technological leader and innovator in the marine fabrication and repair industry.” For fellow Gulf Coast shipyard, VT Halter Marine, Inc., 2017 was a successful year for its ship repair business—as well as a transformative one. Senior Vice President Robert Socha tells MARINE LOG, “in 2017 the VT Halter repair team had an active season, maintaining near S12 Marine Log // July 2018

100% utilization of our 12,000 ton drydock, docking over 18 vessels.” Add to those 18 dry-docked vessels an additional 17 vessels that “needed topside repairs and conversions” and were attended to either pier-side or by one of VT Halter’s traveling crews. Last year also saw VT Halter’s parent company, ST Engineering, acquire World

All these additions position the yard to maintain its role as a leader and innovator in the repair industry Marine’s shipyard facility in Pascagoula. At the time of the acquisition, ST Engineering said “the close proximity to VT Halter Marine’s Pascagoula yard would enable the group to leverage resources and derive greater synergies in its ship repair business.” Now renamed VT Marine, Inc., Socha explains, the yard is the “primary repair and conversion complex for the ST Engineering Group, working hand-in-hand with the VT Halter team.”

He adds, “The 94 acre complex features 3,290 linear feet of bulk headed water frontage, cranage and full service shipyard for boats, barges, rigs and fabrication needs. VT Marine will handle repairs and conversions and VT Halter Marine will remain focused on new construction.” Socha notes that repair work for 2018 is escalating for both the commercial and government sector enabling the company to maintain and book up its backlog. Selling its Pascagoula yard enabled World Marine to focus on its Alabama operation— World Marine of Alabama, LLC. The yard has been busy completing a number of drydocking and repair packages of large hopper dredges, including a $14 million drydock and repair job on the Dredge Wheeler, a hopper dredge owned and operated by the U.S. Army Corps of Engineers. Work on the 35-year-old ship included new piping, painting, significant hopper and hopper door steel renewals, installing a new emergency generator, and two new hydraulically-actuated weirs, rebuilding the bow thruster, replacing the vessel’s tail shafts and overhauling the vessel’s CPP system. “World Marine continues to complete dredge repairs safely and competitively for many of the U.S. dredge operators, including the Army Corps of Engineers. Fixed price dredge repairs take an understanding of these unique vessels and a talent level we are proud to have,” says Robert Beckmann, CEO and Executive Director of World Marine.

C&C Marine

C&C Marine and Repair continues its expansion program

First Hybrid OSV for Gulf of Mexico Converted at Bollinger

SEACOR Marine Holding’s has announced that the conversion of the platform supply vessel SEACOR Maya to hybrid lithium battery power has been completed. The upgrades, which took place at Bollinger Shipyards’ Morgan City facility, make the ship the first hybrid OSV to operate in the Gulf of Mexico. Operated by Mantenimiento Express Maritimo, S.A.P.I. de C.V. (MEXMAR), SEACOR Marine’s joint venture in Mexico, the SEACOR Maya was issued an Interim

Class Certificate from ABS with additional notation BATTERY-Li, the first ever ABS OSV to have this notation. The ship is fitted with Corvus Energy’s lithium-ion-based Orca Energy Storage System (ESS). The Orca ESS is expected to reduce the OSV’s environmental footprint as well as reduce operational costs. Kongsberg Maritime designed the supply and integration of the hybrid power into the vessel’s control, power monitoring, and dynamic positioning systems.

“The successful installation of a hybrid power solution along with the first ever ABS OSV BATTERY-Li notation is a big milestone for our company,” says John Gellert, SEACOR Marine’s CEO. “We have long believed that cutting edge hybrid power technology has the potential to improve vessel efficiency while reducing fuel consumption and emissions by as much as 20 percent. Early indication from sea trials,” conducted May 2018, “put us well within reach of this target and validate the success of our investment. “The new hybrid lithium battery system will also help us improve safety, drive energy efficiencies and reduce our overall environmental impact,” he continued. “As governments tighten emissions standards, this technology will be a key competitive differentiator, leaving us well placed to take advantage of an upturn in the market.” The SEACOR Maya is the first in a series of four to undergo conversion to hybrid power. The SEACOR Azteca, SEACOR Warrior and SEACOR Viking, operated by MEXMAR, will undergo conversion later this year.

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Gulf Coast Headliner

Metal Shark Acquires Horizon Shipbuilding M e ta l S h a r k , Jeanerette, LA, has acquired the assets of Horizon Shipbuilding, Bayou La Batre, AL, which has operated under Chapter 11 bankruptcy protection since October 24, 2017. The acquisition followed a motion approved by the U.S. Bankruptcy Court Southern District of Alabama on June 5, 2018.

The move “will greatly increase our shipbuilding capability and capacity,” says Metal Shark’s CEO Chris Allard. “This acquisition will dramatically expand Metal Shark, as we add an impressive Alabama facility to our growing portfolio of shipyards and leverage Horizon’s expertise in the construction of steel vessels.”

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Along with its newly acquired shipyard in Alabama, Metal Shark now owns and operates a shipyard in Franklin, LA, and a boat production facility in Jeanerette. Metal Shark’s Bayou La Batre shipyard is a fully developed 35-acre shipbuilding facility in the Mobile Bay region, with separate east and west yards both fronting a dredged deepwater inlet. The facility boasts a total of nine assembly buildings; a 660ton Travelift; multiple cranes, CNC plasma cutters, welders, and other fixtures supporting the construction of steel and aluminum vessels up to 300 ft in length and 1,500 tons launch weight. Metal Shark’s new Alabama yard is situated just minutes from the Intracoastal Waterway with direct access to the Gulf of Mexico. With its new facility, Metal Shark plans to be active in the design and construction of custom steel vessels for multiple markets, as well as the refit, repair, and conversion of existing vessels. “As we add steel vessels to our already broad range of aluminum craft, we will offer everything from a 16-foot aluminum skiff to steel vessels up to 300 ft, and virtually everything in between, making the diversity of Metal Shark’s portfolio truly unmatched in the industry,” says Allard. “Additionally, our Alabama yard’s complete refit and repair services will appeal to customers throughout the Gulf, and also those in the South Florida and Caribbean yachting community. These clients will benefit from an accessible and modern facility with some of the most competitive labor rates in the nation.” Since filing for bankruptcy protection in October 2017, Horizon has continued to operate under the direction of company CEO Travis R. Short. With the acquisition, Short will join Metal Shark, where he will serve as Executive Vice President. “Over his past 20-plus years with Horizon, Travis has done an outstanding job of building and maintaining relationships with customers across multiple sectors,” says Allard. “He is well-liked and respected; he brings great shipbuilding knowledge and insight, and we’re happy to welcome him to Metal Shark.” “After a long run at Horizon, I am pleased to enter this next phase by joining this team and by bringing our Alabama yard into the Metal Shark family,” says Travis Short. “We are excited to add the technology, engineering, and processes that have set Metal Shark apart in the industry.”

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commercial and yachting segments of the maritime industry. MPT offers all levels of certification, license and document study programs, many of which offer in-school testing, are USCG, MCA, Marshall Islands, and Nautical Institute approved and are recognized by many foreign administrations. Programs are designed to meet and exceed IMO standards and are fully STCW Compliant. MPT’s campus hosts over 61,000 square feet of classrooms, deck and engineering departments, multiple class A Full Mission bridge and engineering simulators, as well dynamic positioning labs. One School. Unlimited Possibilities.

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CONRAD SHIPYARDS

Resolve Marine Group

Conrad Shipyards, established in 1948 and headquartered in Morgan City, Louisiana, designs, builds and overhauls tugboats, ferries, lift boats, deck barges, crane barges, double skin tank barges, spud barges, offshore supply vessels, dredges and other steel and aluminum products for both the commercial and government markets. The company provides both repair and new construction services at its four shipyards located in southern Louisiana and Texas. Conrad’s repair activity is supported by six dry docks ranging from 900 tons to 12,500 tons capacity and a 300 ton Travel Lift.

For more than 35 years, Resolve Marine Group has specialized in marine emergency response, compliance and wreck removal. Resolve has continued to grow and support its core services of emergency response and wreck removal through the addition of Resolve Engineering Group, offering naval architecture and marine engineering services. Resolve now owns more than 35 floating assets supporting emergency response and wreck removal around the world. The company maintains emergency response operations throughout all U.S. COTP zones as a USCG approved OPA 90 SMFF provider, and Alaska APC provider. Internationally, Resolve provides SPRO services in China and has depots, offices and warehouses in Singapore, China, India, UK, Gibraltar, Rotterdam, and South Africa. U.S. Offices are in Florida, Alabama, Louisiana, and Anchorage and Dutch Harbor in Alaska. On the training front, Resolve’s Maritime Academy helps train Resolve’s inhouse crews and salvors. Resolve Maritime Academy is one of the largest training facilities in the U.S., offering specialized courses in world class facilities consisting of bridge and engine room simulators, and a four deck fire fighting training vessel.

Conrad Shipyards 1501 Front Street Morgan City, LA 70381

T: 985.384.3060 F: 985.385.4090 www.conradindustries.com

Metal Shark Established in 1986, Gravois Aluminum Boats LLC, and its government/commercial boat entity Metal Shark are leading designers and builders of custom aluminum, steel, and composite vessels from 16’ to over 300’ for defense, law enforcement, and commercial entities. Key customers include the United States Coast Guard, Navy, Air Force, Army, foreign militaries, law enforcement agencies, passenger vessel operators, pilot associations, fire departments, and customers from numerous commercial sectors worldwide. With three fully self-contained facilities in Alabama and Louisiana spanning over 75 total acres, Metal Shark employs a workforce of over 500 and produces over 200 vessels a year. Metal Shark 6814 E. Admiral Doyle Drive Jeanerette, LA 70544

T: 337.364.0777 F: 337.364.0337 E: sales@metalsharkboats.com www.metalsharkboats.com

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World Marine of Alabama, LLC World Marine in Mobile, Alabama, offers drydocking, ship repair, vessel conversion and SUPERIOR SHIPYARD SERVICES marine fabrication services. Our services are complemented by a commercially certified 22,000ton Panamax-dimensioned floating dry dock. World Marine’s facility has 4,400 feet of deep access waterfront on the Mobile River, can moor vessels up to 1,000 feet and is supported by its own full-service machine shop. World Marine of Alabama, LLC 601 South Royal Street Mobile, AL 36603

T: 251.338.7400 E: info@worldmarine.com www.worldmarine.com July 2018 // Marine Log S15

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opinion Feature

JONES ACT

The

What’s the real economic cost for Puerto Rico? By John D. McCown, Founder, Blue Alpha Capital

TOTE Maritime

urricane Maria had a devastating effect on Puerto Rico and brought the Jones Act back into the news. This law comes with an economic cost, but the shrillness in recent articles is out of balance with the facts. I’ll compare the claimed costs to a rigorous analysis of the real costs and highlight an unintended consequence that would likely result if the law didn’t apply to Puerto Rico. In May, the NYC Bar Association issued a 15- page report in support of exempting Puerto Rico from the Jones Act. The report claimed that the Jones Act costs Puerto Rico at least $537 million annually. In October 2017, a National Review article pegged the annual cost at $850 million. A September 2017 New York Times article titled “The Law Strangling Puerto Rico,” claimed that a 15% drop in consumer prices would result from repealing the law, equating to a cost of $9 billion annually. These divergent figures lack any real explanation and are referred to as estimates. They share another characteristic: they are all ludicrous and collapse under the weight

of a credible analysis. Almost all goods mov ing by water between the mainland and Puerto Rico go via the Jones Act container carriers. Collectively, their total revenue last year was $800 million. It is nonsensical to claim a cost

Policy makers need to focus on the real math and all the potential consequences before making any changes

above that figure. There is certainly a wage cost difference that impacts the cost of crewing and building U.S. flag vessels. This is a macro difference and the latest figures from the World Bank show U.S. per capita income at 5.66 times worldwide per capita income.

The actual cost difference in crewing and building an American ship compared to a typical foreign flag ship is currently 4 to 1. That does not mean, however, that container shipping costs would go down in that proportion with foreign flag vessels. In these integrated systems, costs related to the ship are just 25% of total costs. Cargo handling, terminal, equipment, trucking, inland transportation, maintenance, sales and G&A costs make up the majority of the costs in container shipping. Those costs are unaffected by flag registry. Likewise, the largest component of vessel costs, fuel, is the same for a Jones Act vessel as it is for a foreign flag vessel. The only costs that are affected by the Jones Act in Puerto Rico amount to some 12% of total costs. Applying the 4 to 1 relationship to those costs, the use of foreign flag vessels would reduce costs by 9%, resulting in savings of approximately $72 million annually. Without minimizing the impact of $72 million per year, I note it is 125 times less than the figure claimed in “The Law Strangling Puerto Rico” article. At 7/100ths of 1% of Puerto Rico’s $102 billion annual GDP, July 2018 // Marine Log 17

opinion

the Jones Act isn’t the culprit it has been made out to be. Based on a factual analysis, if Puerto Rico didn’t have the Jones Act, it would immediately benefit from $72 million in cost savings. Another immediate effect would be the withdrawal of U.S. flag vessels as the 9% reduction is well above typical profit margins and they couldn’t compete. However, a much more foreboding consequence for Puerto Rico would occur shortly thereafter and it is not being given any attention. Maps show Puerto Rico is almost no deviation for ships going between the mainland

and South America. The South America market is heavily skewed northbound, while the Puerto Rico market is more heavily skewed southbound. Without the Jones Act, these facts will come together to have Puerto Rico served by foreign flag carriers enroute to South America. While southbound shippers may be indifferent to this, a change from direct service to en-route service will have pronounced effects on northbound shippers. With four times as many loaded containers going southbound to Puerto Rico versus northbound, today the sharp imbalance results in extremely low rates

in the northbound direction. The imbalance goes away with en-route service as the foreign carriers will load up northbound with containers from South America. Northbound shippers from Puerto Rico would at least need to meet that rate to displace a South America load. Transit times would go up as loads would get to the mainland only after riding ships that first went to South America. As northbound rates from South America are more than $3,000 per load compared $300 per load from Puerto Rico, there will be more than a ten-fold increase for Puerto Rico manufacturers who ship products to the mainland. This would be devastating to large Puerto Rican employers like Bacardi and Goya. If such a geometric rate increase resulted in Bacardi and other rum manufacturers shifting production away from Puerto Rico, the result would be cataclysmic. The government of Puerto Rico is rebated some $400 million annually in the form of federal excise taxes on rum produced in Puerto Rico and sold on the mainland. Changes in the supply chain risk this major source of revenue. Policy makers need to focus on the real math and all the potential consequences before making any changes here.

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Ship Repair

Life Extension

VIGOR

n order to keep the aging members of its fleet active, the U.S. Navy requires overhauls, drydockings, and refits – usually on tight schedules. Yards such as South Carolina-based Detyens Shipyards Inc. face that challenge head on. Among Detyens’ recent repair projects is the regular overhaul and drydocking of the USNS Lewis and Clark (T-AKE 1). Work on the 689 ft ship includes furnishing general ship services; underwater hull cleaning and painting, and more. Work is to be completed August 2018. The repair and restoration of the USS Fitzgerald (DDG-62) is underway at Huntington Ingalls Industries. Last June, the Arleigh Burke-class guided missile destroyer was involved in a collision with the Philippine-flagged ACX Crystal, resulting in the death of seven U.S. Navy sailors on board. The ship is expected to be at HII for two years. According to NAVSEA, “due to the extent and complexity of the restoration both repair and new construction procedures will be used to accomplish the restoration and modernization efforts.” Work on the USS Fitzgerald is expected to be completed by January 2020. This isn’t the first time Ingalls has been called upon to repair a damaged Navy ship, the yard has previously restored the USS Stark (FFG 31) and the USS Cole (DDG 67).

Speaking of the USS Cole, the 505 ft ship will undergo modernization at BAE Systems’ Norfolk Ship Repair, with work to be completed later this month. Making way for additional Navy repair work, thanks to its new drydock, Evolution, is Vigor. Earlier this year Vigor took delivery of the 640 ft x 116 ft drydock with a lift capacity of 20,000 LT for its Seattle-based Harbor Island shipyard. Recently, the U.S. Navy-owned Research Vessel Thomas G. Thompson was back at sea following a mid-life refit and refurbishment from stem to stern at Vigor. According to the vessel’s operator, the University of Washington’s School of Oceanography, the intent of the mid-life overhaul was “to overcome system obsolescence, comply with new environmental requirements and ensure the ship’s reliable and efficient operation while also continuing to effectively support scientific research.” The $52 million refit included the addition of the newest marine technology including navigation systems, sonar and an advanced IT infrastructure. The refit is expected to add 20 to 25 years to R/V Thomas G. Thomspon’s service life. Additionally, Vigor has been awarded a contract to provide facilities and drydocking support, along with repairs and alterations

for the USS Sampson (DDG 102). Work on the ship will be performed at Vigor’s Seattle and Everett facilities.

MGBW Sees Double California-based Marine Group Boat Works (MGBW) recently completed simultaneous refits on two U.S. Coast Guard vessels, the USCG Petrel and the USCG Tern. Both 87 ft craft are part of the Marine Protector Class of patrol boats for the agency—providing search and rescue, law enforcement, drug interdiction and fisheries patrols along U.S. coastal waters. The contract called for the simultaneous service life extension of the two USCG vessels. Work included: hull preservation, tank cleaning, renewing of propulsion system components, and more. Earlier this year, MGBW also completed simultaneous work on twin sister ships, Sea Bird and Sea Lion, for Lindbald Expeditions, National Geographic. In a tight three-month time frame, MGBW was “able to accomplish major steel structural reinforcements, hullsides paint, propulsion system repairs, generator service, HVAC service and piping work, davit repairs and other miscellaneous mechanical and metal fabrication work,” explains Leah Yam, Director of Communications and Sales for MGBW. July 2018 // Marine Log 19

SHIP REPAIR

Green

Repairs By Marine Log Staff

hip owners and operators are contending with a number of thorny, time-sensitive environmental regulatory compliance issues, which are generating an increase in business for international ship repair specialists, according to shipyards in the Middle East and Europe. A spokesman for Bahrain-based ASRY, for example, says the shipyard has seen an increase in ballast water treatment system (BWTS) installations from global clients. The surge in BWTS refits is a result of IMO’s Ballast Water Management (BWM) Convention, which came into force in September 8, 2017. “Multiple clients are moving forward with their ballast water treatment plans, including Arab Maritime Petroleum Transport Company, which has signed an agreement with the yard to install systems 20 Marine Log // July 2018

on at least three of its fleet. The agreement has already seen one system installed on a MR Tanker, with a further two more vessels agreed to have installations in the coming months.” The first system installed under the contract was for the Sea Jewel, a 112,081 dwt Very Large Crude Carrier (VLCC). Another positive, ASRY notes, is that the average repair spend this year is at a significantly higher level than previous years. ASRY is generating more business from the Middle East, with the Arabian Gulf market “proving to be the more significant contributor to revenues, with approximately 69% of ship repair income coming from regional clients. Bahrain, Saudi Arabia, and then the UAE are the top sources of that income, in order of value. The major clients who are entrusting their fleet maintenance to ASRY in 2018 include United Arab Chemical Carriers

(UACC) from Dubai, Bahri from Saudi Arabia, National Petroleum Construction Company (NPCC) from Abu Dhabi, and Arab Maritime Petroleum Transport Company (AMPTC) – four of the largest vessel owners in the region.” Another Middle East shipyard that is ready to support BWTS refits and exhaust gas scrubbers installations is Oman Drydock Company. It completed repairs on 100 ships last year at its facility, which is located in Duqm, on Oman’s Indian Ocean coastline. The facility has two ULCC size graving docks (410m x 95m and 410m x 80m), five quays, with a total of 2,800m of alongside berthage with water depths of between 9 and 10 meters, and 14 jib cranes with lifting capacities of between 40 and 100 ton. Its five workshops cover outfitting, electrical works, machinery, hulls, blasting and painting, and

Photos, top and facing page: Remontowa

Environmental regulatory compliance headaches for ship owners equals increased business for international repair specialists

SHIPFeature REPAIR a cryogenics clean room for LNG tanker repair work. One of its most notable projects this year is the conversion of six OBOs to VLCCs, which will involve the fabrication of 2,200 tons of steel. In Europe, Gibraltar-based Gibdock says it has built up considerable experience in BWTS retrofits and is gearing up to ensure it is in a position to meet growing levels of demand following the entry into force of the IMO’s BWM Convention. Gibdock says, “Over the past six months Gibdock has received a growing number of enquiries from shipowners and operators regarding ballast water treatment system installations and is in the process of discussing these with clients. Some of these discussions have related to full turnkey projects, with the yard installing all systems onboard, while others have been enquiries around the yard undertaking preparatory work prior to equipment installations. Gibdock is confident that a number of these discussions will translate into firm contracts in the near future.” Gibdock’s ballast water treatment projects to date have included the installation of skid-mounted UV type systems for some well-known owners in the offshore support and cable laying sectors. Working closely with technology suppliers, Gibdock has taken care of all cabling layout and electrical connections, as well as fabricating, galvanizing and fitting pipework, and installing pumps, filters, UV elements, control panels and valves. With IMO’s 0.5% global sulfur due to come into effect on January 1, 2020, ship operators have to decide whether to switch to compliant MGO, fit their ships with exhaust gas scrubbers or burn Liquefied Natural Gas (LNG) as a fuel. Gibdock says it has a proven record of installing exhaust gas scrubbers onboard vessels, allowing them to meet sulfur dioxide (SOx) emission targets in a cost effective way. One of its most notable projects to date involved fitting abatement technology to a series of five product tankers for Norbulk. The 1,080 TEU container vessel Ops Hamburg spent around 20 days in the yard earlier this year. The main element of this project involved the overhaul of the ship’s two MAN B&W 7-cylinder main engines, while boilers were also cleaned as part of a major maintenance program that included work to the ballast water treatment plant. During the vessel’s stay, the rudder blades and steering gear were also inspected, with the tail shaft removed to enable new stern tube seals to be installed. The propeller itself was also refurbished and new blades were fitted.

Spain’s Astilleros Cardama, Vigo, repaired 34 ships, including three conversions last year. This past August, it delivered the Thulfiqar, a 42m multipurpose tug for Basrah Oil Company in Iraq. The tug is used for supply and emergency response, firefighting, rescue, and oil recovery. It is currently building a 50m multipurpose tug for Senegal for inspection and surveillance duties. Poland’s Remontowa performed 188 drydockings and repairs, along with six conversions last year. Remontowa has supported shipowners’ efforts to refit their ships with BWTS and exhaust gas scrubbers. For BWM retrofits, Remontowa offers turnkey support starting from Pre-survey, Design, Engineering, Equipment Supply, Prefabrication to Installation. This past April, it installed a BWTS on the Sulphur Genesis, owned by Daiichi Tankers. As for exhaust gas cleaning systems, Remontowa has installed 38 hybrid, open loop and closed loop scrubbers since its first one in August 2013. It recently installed four scrubbers on Finnlines’ Europalink. It has also undertaken some impressive conversion projects, including the challenging lengthening of six ferries for Finnlines. The 30m lengthening involves 1,713 tons of steel for outfitting the midbody and hull modifications. The last of the lengthenings is to be completed by December 2018.

Shift to LNG as Fuel Remontowa is also performing midlife propulsion upgrades for BC Ferries on two sister ferries, the Spirit of British Columbia and Spirit of Vancouver Island. The shipyard is converting the ships’ engine rooms to dual fuel (DF) system, with the possibility of both low-sulfur diesel and natural gas feeding (stored as LNG). It is also

modernizing their passenger spaces, renovating their cabin bathrooms, and adding a new café. Additionally, it is providing a full range of maintenance and painting “from stem to stern.” Steel was recently cut at Damen Shiprepair Dunkerque for a new hull section for the conversion of the trailing suction hopper dredger (TSHD) Samuel de Champlain from diesel-electric propulsion to dual-fuel capability combining Marine Gas Oil (MGO) and LNG. The new section of hull will hold the new generators and other equipment. Damen Shiprepair Dunkerque CEO Mark Jan van den Akker called LNG a fuel of the future with an important role in the movement towards lower emissions. The Samuel de Champlain is the first such conversion to be done by Damen Shiprepair Dunkerque and the first of its kind in Europe. Under the contract, Damen is delivering a turnkey package that includes engineering, procurement and support. Engineering studies are being subcontracted to LMG Marin France. The current propulsion system of the Samuel de Champlain is diesel-electric burning MGO, and so the package includes the change of generators to dual-fuel models and the installation of onboard LNG storage facilities. The new engines will be installed on a new block, which is currently being prefabricated at Damen Shiprepair Dunkerque and will be installed later this year while the vessel is in drydock. The conversion is part of an EU-supported initiative to promote LNG propulsion in short-sea vessels operating along the European Atlantic coast and will demonstrate the feasibility of using LNG on smaller vessels. The Samuel de Champlain is expected to be operational December 2018.

July 2018 // Marine Log 21

research vessels

Tough & Smart New research vessels take on coastal challenges, extreme conditions

22 Marine Log // July 2018

threat of tsunamis, notes Marinelli. OSU placed the order for construction and outfitting of the first vessel with Gulf Island Shipyards LLC, Houma, LA, July 2017. Under its contract, OSU has the option to order two additional Regional Class Research vessels (RCRV) to give a boost to the nation’s aging academic research fleet. A year later, OSU has exercised that option, following a recent award of $88 million from NSF, ordering the second vessel from Gulf Island just as physical construction began on the first. “Our shipyard team and the OSU team have been working very closely since the first vessel contract award back in July of last year and we look forward to continuing these efforts with the second vessel,” said Kirk

Meche, President & CEO of Gulf Island. The RCRVs w ill be between 190 to 200 ft, with a range of more than 7,000 nautical miles; the ability to stay out at sea for 21 days before returning to port for fuel and supplies; and a cruising speed of 11 knots with a maximum speed of 13 knots. The vessels also include a number of green features, among them, LED lighting, variable speed power generation, waste heat recovery and an optimized hull form. The RSRVs will be ABS Ice-Class C0 and DPS-1, Green Marine-Certified, acoustically quiet and carry up to 29 crew and scientists per vessel. “This class of ships will enable researchers to work much more safely and efficiently at sea because of better handling and stability,

Australian Antarctic Division

hen the National Science Foundation awarded Oregon State Universit y (OSU) a grant of $121.88 million last year, the largest grant in the university’s history, it kick-started the introduction of a new class of oceanographic research ships for the United States. The new ships, says Roberta Marinelli, Dean of OSU’s College of Earth, Ocean and Atmospheric Sciences, “are essential to support near-shore research as the United States and other countries face unprecedented challenges to their coastal waters.” Part of those coastal challenges include: ocean acidification, rising sea levels, lowoxygen water, sustainable fisheries and the

Compiled by Marine Log Staff

research vessels and a suite of advanced sensors for measurements to characterize the atmosphere, ocean water and seafloor,” explains Clare Reimers, Professor at the College of Earth, Ocean, and Atmospheric Sciences and Co-Leader on the project. “They will have real-time data connectivity to shore and more capability for over-the-side operations.” Those over-the-side operations will get a hand from Rapp Marine. The company, which was acquired by MacGregor late last year, was selected by OSU to be the Overboard Handling System Single Source Vendor (OHS SSV) of the first RCRV. Demian Bailey, Project Co-Leader for OSU, says NSF is currently in the process of selecting which institution, likely situated on the East or Gulf coast, will operate the second vessel, which is expected to be delivered Fall of 2021.

Australia’s Largest Investment in Antarctic Exploration Takes Shape Rapp Marine will also provide the deck machiner y and handling systems for Australia’s new state-of-the-art icebreaking research vessel expected to launch later this month at Damen Shipyards Galati. The vessel is being built for the Australian Government’s Department of Environment and Energy, Australian Antarctic Division (AAD).

The Antarctic Supply and Research Vessel (ASRV) Nuyina is designed to meet the most extreme environmental conditions. The ship, says AAD, “is faster, larger, stronger and offers increased endurance when compared with the Aurora Australis, AAD’s resupply flagship. Calling Nuyina a “once in a generation investment” the Australian Government says the ship is at the center of its Australian Antarctic Strategy and 20 Year Action Plan. At AUD $1.9 billion, the vessel’s design, construction, and 30-year operational and maintenance lifespan package represent the single largest investment in the Australia Antarctic Program’s history. The Nuyina will perform research and surveying duties in the Southern Ocean, as well as deliver personnel, vehicles (including helicopters), supplies, equipment and cargo to the Antarctic and sub-Antarctic research stations. According to AAD, the Nuyina will serve as “the main lifeline to Australia’s Antarctic and sub-Antarctic research station and the central platform of our Antarctic and Southern Ocean scientific research.” The ship will be fitted with a number of state-of-the-art equipment including acoustic instruments to map and visualize the sea floor and organisms in the water column, instruments to measure atmospheric gases, cloud properties, wave heights

and conditions and hydrophones and underwater cameras. Reaching those stations involves a 9,000 nautical mile round trip from Hobart, where Nuyina will be stationed, says Damen, including 30 days each year spent for icebreaking and another 30 days each year spent on station in air temperatures averaging -30°C. And in the event the ship is stuck, it will be capable of surviving independently—with up to 148 on board—for up to six months. To bring the Nuyina to fruition Knud E. Hansen and Damen Schelde Naval Shipbuilding (DSNS) worked together, with the former creating the concept and tender designs, while the latter delivered the engineering and project management. To help meet the demands of the isolated region and extreme environmental conditions, the ship is designed with an extremely strong hull and a plate in the bow up to 80mm thick. It will travel at a speed of 12 knots, with a top speed of 16+ knots, and will have an icebreaking rate of 1.65m at 3 knots. The vessel is expected to handle waves up to sea state 9, wind speed up to Beaufort 12 (hurricane), and water temperatures between −2° Celsius to 32° Celsius. The 160m Nuyina will be classed by Lloyd’s Register and is expected to make its maiden voyage between 2020-2021.

Rapp Marine and Triplex Reel in Research Vessel Market Research vessels are employed by academic institutions from all over the globe to study the sea floor and life below the seas. In order to collect the data required to perform their research, scientists cast ROV’s, scientific instruments, corers, nets, and other devices into the ocean for collecting samples that they need, sometimes in rough sea conditions. On the other end of the tension members handling these devices are specialized load handling systems and winches tailor made for research vessel operations. R a p p M a r i n e a n d Tr i p l e x h av e become a market leader in oceanographic and fisheries research vessel systems by working collaboratively on fully integrated handling solutions. A single control system, programmed and designed in-house, can be used to operate both the winch that spools the tension members and the crane or A-frame that’s used

to deploy and recover scientific devices, and that very same PLC touchscreen displays and logs relevant performance data of the winch operation. A commonly provided feature in today’s winch systems is Active Heave Compensation (AHC), which uses motion reference units to detect the movement of the ship in rougher sea states, and haul in and pay out the tension member accordingly in order to keep the device steady at the bottom of the ocean floor and prevent the cable deployed from breaking due to tension overload. The Triplex handling systems, such as CTD davits and corer grabbers, are custom designed to handle each operator’s specific scientific instruments and devices from deployment to recovery. These features save both operators and scientists many headaches, since a tension member snapping from heavy loads or sea conditions can result in costly equipment being lost and can derail a mission.

In the past decade, Rapp Marine and Triplex have supplied their integrated solution to about a dozen new research vessels, and are supplying systems to vessels currently under construction all around the world. Notable recent deliveries include the R/V Dr. Fridjof Nansen and R/V Tan Kah Kee for academic institutions in Norway and China, respectively, and notable projects under construction include new oceanographic icebreakers for China and Australia, and the regional class research vessel for Oregon State University in the United States.

July 2018 // Marine Log 23

research vessels

he Global Class research vessels in the U.S. Academic Research Fleet is comprised of four vessels—three of which are the U.S. Navy’s AGOR-23 Class. All three vessels in this class have surpassed the midpoint of their service lives, with R/V Thomas G. Thompson delivered in 1991, R/V Roger Revelle in 1996, and R/V Atlantis in 1997. Avoiding the high cost of constructing new Global class research vessels, major overhauls on these ships are expected to extend operation to at least 40 years. With funds appropriated by the U.S. Congress, the Office of Naval Research (ONR) has contracted with the vessel operators to manage the overhauls with an emphasis on repowering and modernization of the vessels. In 2012, the University of Washington awarded the midlife design contract to Seattle-based naval architecture and marine engineering consultancy Glosten. Glosten has now completed the midlife refit engineering and design of the 274foot R/V Thompson and R/V Revelle. Work on the R/V Atlantis is underway, with Glosten’s design package slated for completion in early 2019. Each sistership’s overhaul package includes a repower, replacement, 24 Marine Log // July 2018

or refurbishment of aging shipboard equipment, modifications for environmental and regulatory compliance, and replacement of technically obsolete shipboard machinery. While each vessel has had several unique refit requirements, many of Glosten’s work packages were reusable from vessel to vessel. Additionally, lessons learned from the overhaul of the Thompson have been applied to the development of the Revelle and Atlantis design packages. “The AGOR-23’s are some of the most capable vessels in the UNOLS fleet,” said Tim Leach, Director of Engineering at Glosten. “The costs of replacing them would have far exceeded the cost to overhaul them. While midlife refits of this kind are invasive and technically challenging, designing the refits for these vessels in sequence has allowed us to provide excellent value by applying lessons learned in each previous redesign to the ensuing vessel.” Thompson, Revelle, and Atlantis are operated by the University of Washington, Scripps Institution of Oceanography, and Woods Hole Oceanographic Institution, respectively. According to Leach, designing the midlife overhauls has required managing input from each of the operating agencies,

along with ONR, vessel crew, and staff. “Glosten continues to position itself as a leader in the research vessel market, and this series of projects demonstrates our ability to leverage our knowledge of vessel operators’ shared needs as well as their unique requirements,” Leach added. Thompson, currently conducting research operations in the South Pacific, is operating with improved capabilities and greater regulatory compliance: a new transducer well allows transducers to be used without being hard mounted to the ship, new EPA Tier III compliant engines run more efficiently and produce lower emissions, upgraded silencers reduce deck noise, and an integrated bus has improved overall efficiency. “There is a lot of positive feedback, and a lot of positive comments from crew,” said Bryan Blondeau, University of Washington Project Engineer for the Thompson refit. For Revelle, Glosten provided a design basis, general specifications, a stability evaluation, a weight change integration, cost estimates, a bow thruster noise/vibration study, regulatory liaison, and an A&D Contract Package that was recently put out for bid. Glosten has begun to adapt many of these work items for Atlantis.

University of Washington

Midlife Refits for the AGOR-23 Class Continue

OFFSHORE WIND

The New

American Frontier

Blount Boats

ffshore wind development continues to grow by leaps and bounds in Europe, and momentum is starting to build in the U.S., particularly along the Atlantic Seaboard from Maine to North Carolina. “A vast market for U.S. offshore wind power is coming into clear focus in the Atlantic states,” says Stephanie McClellan, Director, University of Delaware’s Special Initiative on Offshore Wind (SIOW). “In the past two years, the U.S. industry has made dramatic advances in policy commitments and investor confidence.” Speaking at an energy panel in Houston this past May, McClellan says, “We no longer wonder if this industry will make it to America’s shores. U.S. OSW has arrived and is accelerating with utility-scale commitments that already exceed 8 GW of market visibility and a project pipeline that totals nearly 25 GW.” While there are several key elements driving strong interest in offshore wind development—including strong federal and gubernatorial support across several states—one driver can be directly traced to Europe. The U.S. market is benefitting from European offshore wind developers, suppliers, and service companies who have logged

extensive experience across the pond. That extensive experience is translating into the use of best technologies and best practices, and very competitive pricing for renewable energy. Roy Francis, Vice President, Business Development, Gulf Island Fabrication (GIF), a Houston-based offshore energy construction firm, told the energy panel about GIF’s strategic relationship with OSW developer Bay State Wind and German steel pipe maker EEW to create a renewable energy supply chain and more jobs in Massachusetts. “The European offshore wind market is 27 years old,” says Francis. “We are taking the best from the mature European industry and pairing it with American know-how.” Many Atlantic Coast states view offshore wind not only as a source of clean energy, but also as a job creator. A study released in 2017 expects as many as 40,000 full time jobs to be created by 2028 based on offshore wind development in six states: Connecticut, Maryland, Massachusetts, New Jersey, New York, and Rhode Island. The state of Maryland estimates that two offshore wind farm projects amounting to 368 MW of total capacity could create 9,700 full time equivalent jobs and result

in more than $2 billion of economic activity in Maryland, including $120 million of investments in port infrastructure and steel fabrication facilities. US Wind, which was founded in 2011 and is owned by Italy’s Renexia SpA, holds the lease for an offshore wind project 17 miles off the coast from Ocean City, MD. With an investment of $2.5 billion, the Maryland project is the largest offshore wind farm in the United States. Plans call for installing 32 turbines in 20-30 meters of water, 17 miles offshore. A substation will collect the energy from the turbines and transmit the electricity to the shore using underwater cables. The Maryland Public Service Commission (Maryland PSC) has already awarded Offshore Wind Renewable Energy Credits (ORECs) to US Wind Inc. along with Skipjack Offshore Energy, LLC, a unit of Deepwater Wind, LLC. US Wind has also entered into a contract with Gulf Island Fabrication, LLC, for the procurement of a meteorological tower and support structure. For its part, the Skipjack Wind Farm, some 19.5 miles northeast of Ocean City, would produce 120 MW. Deepwater Wind plans to invest about July 2018 // Marine Log 25

OFFSHORE WIND

Collaborative Effort Deepwater Wind recently proposed Revolution Wind, a 200 MW offshore wind project for Connecticut in response to an RFP by Connecticut’s Department of Energy and Environmental Protection. Deepwater Wind was the developer of Block Island Wind, the first and currently only commercial offshore wind farm in the United States. Back in 2011, Blount Boats, Inc., Warren, RI, secured the exclusive license to build South Boats IOW designs for crew transfer vessels in the states. Cowes, U.K., based South Boats has designed and built approximately 30% of the crew transfer vessels serving European offshore wind farms. In 2016 Blount Boats delivered the U.S.-flag crew transfer vessel Atlantic Pioneer, a South Boats 21m transfer vessel, to Rhode Island Fast Ferry for the Block Island Wind Farm. Building on its success, Blount recently signed a sub-license agreement with Maritime Applied Physics Corp. (MAPC), Baltimore, MD, for the building of offshore wind crew transfer vessels to South Boats designs. The sub-license covers the waters off the coast of Maryland, with the possibility of expanding to other geographic areas by written agreement in the future. MAPC recently designed and built five

26 Marine Log // July 2018

subchapter T passenger vessels for use on Chesapeake Bay. Additionally, it has delivered 24 air-dropped rescue vessels for use by the para-rescue jumpers of the Air National Guard, and is currently designing a 40m unmanned vessel for emerging Navy requirements. The company works in composites for its smaller craft and in aluminum and steel for its larger craft. Vessel construction work is performed in Baltimore, while its compos-

By collaborating, we are able to increase production capacity and bring new technologies to the market

ite work is led by personnel in its Brunswick, ME, facility. “We are thrilled to have found a well-qualified partner to build South Boats designs as the offshore wind industry develops and demand for crew transfer vessels increases exponentially,” says Blount Boats President Marcia Blount. MAPC President Mark Rice says, “By collaborating with Blount on the production of South Boat designs, we are able to increase

the collective production capacity, bring new technologies to the market, satisfy regional content needs, and rapidly introduce product to the rapidly growing market for Jones Act compliant crew transfer vessels.” Blount Boats also has plenty of opportunity bubbling in its own backyard. Vine yard Wind, a joint venture of Avangrid Renewables, and Copenhagen Infrastructure Partners, was recently selected by the Massachusetts Electric Distribution Companies (EDCs) to advance its proposal to construct an 800 MW wind farm 15 miles off the coast of Martha’s Vineyard. Vineyard Wind’s goal is to develop the first large-scale offshore wind farm in the United States. In 2016, the Massachusetts legislature passed “An Act to Promote Energy Diversity,” requiring the state’s EDCs to procure 1,600 MW of offshore wind energy within the next decade.

Jones Act Compliant Solution Me a n w h i l e , t w o D u t c h c o m p a n i e s , GustoMSC and Barge Master, are offering what they call a Jones Act compliant solution for installing the first wave of U.S offshore wind projects. Their motion-compensated feeder solution would place a Barge Master BM-T700 motion-compensated platform on a U.S.flagged offshore vessel or a seagoing barge in order to feed wind turbine components fast and safely to the offshore wind farm site to be installed by a wind turbine installation jack-up.-up. Barge Master introduced the BM-T700 platform in 2013 and it has proven itself in various projects. By compensating the motions of the vessel, the platform creates a stable lift-off base for a maximum weight of 700 tons in sea states up to Hs 2.5 meters and is certified by Lloyd’s Register under the lifting appliances rules. As a result, the operations can continue in more adverse weather enabling completion within the execution timeframe. GustoMSC w il l p er for m the naval engineering and the integration of the BM-T700 platform onto a new or existing DPII feeder barge. GustoMSC has extensive experience in offshore wind vessel design. It designed the Scylla, one of the world’s largest offshore wind installation jack-up vessels, which is based on a GustoMSC NG14000X design. Owned by Seajacks UK, the Scylla is designed for deep water and large windfarm components and can carry up to four 12MW turbines at a single time. With 105 m long legs, it has the ability to install components in water depths of up to 65 m.

Special Initiative on Offshore Wind/University of Delaware

$200 million in Maryland during Skipjack’s construction phase, including $25 million for a new steel fabrication facility and $13 million for ports in the Greater Baltimore area.

Newsmakers

TOTE Names New Leadership for Puerto Rico & Alaska Michael Noone has been named President of TOTE Maritime Puerto Rico. He is currently the President of TOTE Maritime Alaska. His new appointment leads the way for current Vice President and General Manager at TOTE Maritime Alaksa, Grace Greene, to be promoted to President. Ports America has named Richard Surett its new CFO. He has been with Ports America since 2010, most recently holding the position of Senior Vice President, FP&A and Treasury. Ecochlor, Inc. has named John Morganti Vice President of Sales and Marketing.

Hurtigruten has announced the appointment of Christine Stevens as Vice President of Sales for the Americas. She brings with her 30 years of cruise industry expertise.

Ron Monell, U.S. Navy Ret., has been named to the Sales and Business Development team at naval architect and marine engineering firm Boksa Marine Design.

The Great Lakes Group has added three new members to its management team: Thomas Rigolo is now Shipyard General Manager; Kristen Buccigrossi has been named Director of Marketing & Communications; and Emery Eiber has been appointed Quality, Health, Safety, Security and Environment (QHSSE) Manager.

Danfoss has appointed Justin Thomas as Business Development Manager of its Marine Oil & Gas business for the company’s Power Solution’s segment. Cargotec Corporation has appointed Carina GeberTeir as Senior Vice President, Communications.

Rudi van Niekerk has been named GAC Nigeria’s Managing Director, in charge of developing its shipping and liner agency business.

Juan Pablo Cofino has joined Intelsat S.A. as Regional Vice President of Latin America and the Caribbean.

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TECH NEWS Wilhelmsen and Airbus: Partner on Drone Deliveries

Advanced Floatel to Add ABB OCTOPUS As floating accommodation units become integral components of complex deep-water offshore projects in harsh environments, safe gangway operations are critical to ensuring the highest standards and maximizing vessel uptime. To that end, one of the world’s most advanced floating offshore accommodation vessels will receive an innovative digital hand from ABB. The company recently won a contract to supply its ABB Ability Marine Advisory System OCTOPUS marine software for the 600-person accommodation vessel Edda Fides, operated by Edda Accommodation. Delivered by Astillero HJ Barreras in 2011, the Edda Fides is the first purpose build offshore accommodation and service vessel with features that include a telescopic motion compensated gangway and pedestal that can be adjusted at sea. The OCTOPUS digital solution helps vessel owners gather and analyze data in order

to optimize operations. In the case of Edda Fides, OCTOPUS will provide advice on how to operate the gangway to ensure safe crew and offshore personnel transfers between two free-floating vessels. The system will calculate hydrodynamic parameters and their impact on vessel responses, as well as give insights into maximizing operational uptime within critical motion and acceleration limits. OCTOPUS is also expected to optimize Edda Fides’ overall operational performance. If pre-set limits are exceeded, alarms will go off providing onboard warning. Over on the shoreside, operating staff will be able to monitor vessel performance indicators via OCTOPUS Fleet Portal. Calling the system “a significant upgrade for Edda Fides” Johan Rokstad, CEO of Edda Accommodation says OCTOPUS will raise the vessel’s efficiency and improve crew safety. www.abb.com

USCG Issues Type Approval For Three BWMS After several months of quiet, the U.S. Coast Guard Marine Safety Center came out of the gate swinging in the month of June when it issued three U.S. Coast Guard Ballast Water Management System Type Approvals. In total, the U.S. Coast Guard has granted nine systems its BWMS Type Approval status. The latest to join the list are Techcross, Inc. with its Electro-Cleen system, Samsung Heavy Industries Co., Ltd’s Purimar BWMS and BIO-UV Group’s BIO-SEA B. All three systems met the requirements of 46 CFR 162.060. The Techcross Electro-Cleen system became the first Korean BWMS on the list 28 Marine Log // July 2018

when it received approval on June 5. The system uses a full-flow electrolysis, according to Techcross, which minimizes the need for a filter, making the system compact, simple and easy to maintain. Samsung’s approval soon followed. The PURIMAR BWMS consists of filtration with electrolysis during uptake and neutralization at discharge. Meanwhile, the BIO-SEA B BWMS consists of filtration with UV treatment at uptake and discharge. The system works in three steps to disinfect ballast water: 1. Ballasting: Filtration and UV disinfection; 2. De-ballasting: UV disinfection takes place once more; and 3. A cleaning operation. www.dco.uscg.mil

Wilhelmsen Ships Ser vice has announced it is par tnering with Airbus to launch a shore-to-ship drone delivery service to one of the busiest ports in the world, Marina South Pier, in Singapore. The experimental project, which will commence third quarter 2018, will use Airbus’ Skyways unmanned air system (UAS). The drone will deliver spare parts, documents, water test kits and 3D printed consumables. Wilhelmsen Ships Service will set up the necessary maritime and port operations, gaining approvals from port authorities and securing maritime customers. Airbus, in the meantime, will take care of all the corresponding aviation approvals, while also running and maintaining the UAS and its control systems. The use of an unmanned autonomous drone for deliveries will enable a reduc tion in manpower ( since launch boats wont be needed) and increase productivity—and with a quicker response rate and turnaround time of up to 6x, it has the potential to lower shore-to-ship delivery costs by up to 90%. The project will integrate both a command and delivery center at the Marina South Pier to help facilitate deliveries from shore to ship. Wilhelmsen Ships Services’ Marius Johansen, VP Commercial, Ships Agency, believes drones will benefit the agency. “As an outward looking company, eager to utilize technology to help improve our customer’s experiences, drone delivery is a perfect fit for our agency business,” says Johansen. Its also safer, quicker and more effective both in terms of operations and in costs, he notes, “costing an average ninet y percent less than launch boats.”

www.wilhelmsen.com

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5/26/17 8:48 AM

July 2018 // Marine Log 31

SAFETY FIRST

Don’t Pump Up the Volume: Protect Your Hearing

32 Marine Log // July 2018

coworker that is an arm’s length away, ringing, humming, or temporary hearing loss at the conclusion of the work day are all indicators that the working environment may be too loud. Does this sound familiar to any shipboard operations? If this is the case, it is perhaps time to conduct a noise survey. This survey can establish a baseline level for everyday operations in a

Detrimental effects of hearing damage range from temporary to permanent hearing loss, to ringing in the ears specific compartment showing what noiselevel a worker may be experiencing. If the survey shows over the permissible limit then it is time to institute a hearing conservation program. Hearing conservation programs consist of Noise Surveys, training, as well as methods used to reduce exposure through proper engineering controls as well as limiting exposure of personnel. The method of control most used on board vessels is Personal Protective Equipment. Just like shoes, there is no one size fits all. Therefore fit testing is recommended. One system, known as FitCheck, developed by Michael & Associates uses a portable

Matthew Bonvento A licensed deck officer and Professor of Nautical Science

Shutterstock/ XiXinXing

s a mariner you are consistently reminded of the dangers of noise exposure on your hearing. The IMO has recognized this as a serious danger to mariners and has published THE CODE ON NOISE LEVELS ON BOARD SHIPS. Noise, as defined by the code: “For the purpose of the Code all sound which can result in hearing impairment, or which can be harmful to health or be otherwise dangerous or disruptive.” OSHA, a bit more comprehensive, states “Noise and vibration are both fluctuations in the pressure of air (or other media) which affect the human body. Vibrations that are detected by the human ear are classified as sound. We use the term ‘noise’ to indicate unwanted sound. Noise and vibration can harm workers when they occur at high levels, or continue for a long time.” Some of the detrimental effects of hearing damage can range from temporary hearing loss, ringing in the ears, Tinnitus, or permanent hearing loss whether full or partial. Temporary effects may resolve themselves over time, however more permanent effects may not even be correctable with surgery. Since mariners work in environments where there is a risk of hearing damage it is important to understand what can be done to monitor and prevent hearing injury. According to OSHA, prolonged exposure to 85 decibels for eight hours a day is the maximum permissible exposure limit. As decibel levels increase, the amount of permitted exposure per day must be reduced. There are warning signs that are good indicators of an environment that is already too loud. Having to shout to speak to a

computer, with a headset, to emit tones at varying frequencies and decibel level to see what the patient can hear without hearing protection. The test is then conducted again with hearing protection. The difference between the results shows an estimate of the protection provided. This is one of many methods that can be used. An audiologist should be consulted prior to choosing any particular route for the monitoring of personnel. What is important is that a baseline should be established. According to my colleague David Shubin, of SphereMD “Baseline audiograms and annual audiograms preserve hearing by noticing subtle changes in hearing over time, giving the mariner opportunities to change non-hearing preserving behaviors … and ultimately preserving hearing through their lives. It’s a win for the mariner as hearing is preserved and a win for the vessel owner as costly hearing loss claims are reduced.” Mariners should be encouraged to have their hearing checked annually and be aware of the ways they can protect their hearing. The first and most common type of hearing protection are inexpensive foam plugs. They are comfortable and portable. The next type are molded plugs, which can be customized for each ear. These plugs are re-usable if kept clean with warm soap and water. Finally, there is the earmuff style of protection. This style provides good protection, but long hair, beards, sideburns, and glasses can affect reliability. While reusable, they can be uncomfortable in hot weather and may require regular and thorough cleaning to prevent the spread of disease if used by multiple people. One item to mention is that noise cancelling headphones, when turned on, are no more effective than when they are turned off. Noise cancelling does not protect the wearer from load noises. The views expressed in this article do not necessarily represent the views of the U.S. Merchant Marine Academy, Maritime Administration, the Department of Transportation or the United States.

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