Marine Log May 2021

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

May 2021

WHY CYBERCRIME IS HEADING TO SEA

PROPULSION: Getting to Zero is Getting Real

WHAT’S DRIVING DREDGING Surge in the U.S.?

CYBER RISK EXPOSURE: Cyberattacks are on the Rise

CONTENTS

34

18

DEPARTMENTS

FEATURES

2 EDITOR’S LETTER The Cruise Industry Sees the Sun

18

POWER & PROPULSION How Getting to Zero is Getting Real Moves to make maritime transportation a zero-emissions industry are hardly happening in isolation

22

CYBER CRIME ON THE SEAS Cyber Security Threats Become More Prominent With new technologies and a greater focus on operational efficiency, cybersecurity has stepped to the forefront of the industry

24

CEO SPOTLIGHT: CALLAN MARINE An Interview with Maxie McGuire, President The Air Force veteran tells us why he’s seen a recent surge in dredge orders and whether Callan Marine will enter offshore wind

4 INLAND WATERWAYS Let’s Hear It for Infrastructure … This Time?

6 INDUSTRY INSIGHTS 8 WELLNESS Being in the “NO” 10 VESSEL OF THE MONTH Spirit of Matushka: 150-Passenger Catamaran Tour Boat 12 UPDATES • Gladding-Hearn Delivers New Pilot Boat • Atlantic Wind Transfers Positions for Growth 16 INSIDE WASHINGTON House Panel Gets to Grips with Decarbonization 17 INFRASTRUCTURE New Bill Could Send Billions to U.S. Shipyards 29 FINANCE Finding Financing for Jones Act Offshore Wind 33 NEWSMAKERS Fagan Would Be USCG’s First Female 4-Star Admiral

26 30

UNDER CONSTRUCTION The Largest U.S. Self-Propelled Hopper Dredge To be launched in 2023, the massive dredge, Frederick Paup, is currently under construction at Keppel AmFELS shipyard in Texas LEGAL IMPLICATIONS OF CYBER RISK EXPOSURE Bridging the Gap from Awareness to Application Why have maritime cyber attacks have increased by 400% since February 2020 and what can be done?

Cover Photo Credit: Shutterstock/ Michael Traitov

34 TECH NEWS Jones Act WTIV Feedering Made Easier?

40 SAFETY Cargo Knowledge and Handling May 2021 // Marine Log 1

EDITOR’S COLUMN

MARINELOG MAY 2021 VOL. 126, NO. 5 ISSN 08970491 USPS 576-910 SUBSCRIPTIONS: 800-895-4389

Tel: +1 (402) 346-4740 (Canada & International) Fax: +1 (402) 346-3670 Email: marinelog@stamats.com PRESIDENT Arthur J. McGinnis, Jr. amcginnis@sbpub.com PUBLISHER Gary Lynch glynch@sbpub.com

Photo Credit: Shutterstock/ richard pross

The Cruise Industry Sees the Sun

C

ruise lines are hopeful that cruising can resume from U.S. ports in mid-July.

The CDC in late April released modifications and clarifications to its guidance to the industry. And the CDC has been under gathering pressure to end its ban on cruising, which has had a devastating economic impact, particularly on Alaska and Florida.

Back in March, the CDC appeared to be in no hurry to respond to the Cruise Line International Association’s (CLIA) call for it to lift the Framework for Conditional Sailing Order (CSO), issued last October, and allow for planning of a phased resumption of cruise operations.

CLIA has said that the early-July time frame is in line with President Biden’s forecast for when the U.S. will be “closer to normal.”

As CLIA’s President and CEO Kelly Craighead pointed out at the time, a highly-controlled resumption of cruising has continued in Europe, Asia and the South Pacific.

According to CLIA, the very small fraction of reported COVID cases (fewer than 50 based on public reports) is dramatically lower than the rate on land or in any other transportation mode.

While cruising operations remain frozen in time here in the U.S., Norwegian Cruise Line Holdings said that it would provide $10 million in cash support to six Alaska port communities severely impacted by the ongoing U.S. suspension of cruise voyages.

In Alaska, approximately 60% of all tourism is generated through the cruise ship industry,

which has been halted for more than a year.

Furthermore, Florida’s two U.S. senators, Rick Scott and Marco Rubio, along with Sen. Dan Sullivan of Alaska, introduced the Careful Resumption Under Improved Safety Enhancements (CRUISE) Act last month. The legislation would revoke the CDC’s current No Sail Order on cruises and require the CDC to provide COVID-19 mitigation guidance for cruise lines to resume safe domestic operations.

It seems as though the CDC is finally hearing the industry out and has caved, somewhat, to the mounting pressure to allow cruising to resume.

Only a few weeks ago, USA Today reported that the CDC sent a letter to cruise lines indicating that cruises from U.S. ports could resume as early as mid-July.

Reportedly, that guidance has been modified in a number of ways, including allowing ships to bypass the required simulated test voyages carrying volunteers and jump to sailings with paying passengers if 98% of crew and 95% of passengers are fully vaccinated.

Despite potential further hurdles, the cruise industry is ready to set sail this summer.

WEB EDITOR Nicholas Blenkey nblenkey@sbpub.com ART DIRECTOR Nicole D’Antona ndantona@sbpub.com GRAPHIC DESIGNER Hillary Coleman hcoleman@sbpub.com MARKETING DIRECTOR Erica Hayes ehayes@sbpub.com PRODUCTION DIRECTOR Mary Conyers mconyers@sbpub.com INTEGRATED ACCOUNT MANAGER David Harkey dharkey@sbpub.com SALES REPRESENTATIVE KOREA & CHINA Young-Seoh Chinn corres1@jesmedia.com CLASSIFIED SALES Jennifer Izzo jizzo@mediapeople.com CIRCULATION DIRECTOR Maureen Cooney mcooney@sbpub.com CONFERENCE DIRECTOR Michelle M. Zolkos mzolkos@sbpub.com CONFERENCE ASSISTANT Stephanie Rodriguez srodriguez@sbpub.com CONTRIBUTORS Emily Reiblein Crowley Maritime Corporation Tracy Zea Waterways Council Inc. Cody Sanders Canal Barge Company Inc.

HEATHER ERVIN Editor-in-Chief hervin@sbpub.com

Marine Log Magazine (Print ISSN 0897-0491, Digital ISSN 2166-210X), (USPS#576-910), (Canada Post Cust. #7204564; Agreement #40612608; IMEX Po Box 25542, London, ON N6C 6B2, Canada) is published 11 times per year, monthly with the exception of April which is a digital issue by Simmons-Boardman Publ. Corp, 88 Pine St. 23rd Floor, New York, NY 10005. Printed in the U.S.A. Periodicals postage paid at New York, NY and Additional mailing offices.

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2 Marine Log // May 2021

EDITOR-IN-CHIEF Heather Ervin hervin@sbpub.com

SIMMONS-BOARDMAN PUBLISHING CORP. 88 Pine Street, 23rd Floor, New York, N.Y. 10005 Tel: (212) 620-7200 Fax: (212) 633-1165 Website: www.marinelog.com E-mail: marinelog@sbpub.com

Clean, Quiet, Proven

Electric and Hybrid Propulsion Keeping our waterways clean is important to the health and survival of our planet. BAE Systems is leading the way with clean, quiet alternative propulsion systems, helping passenger vessels get to zero emissions.

gettozero.com

Red and White Fleet’s Enhydra Electric Hybrid Passenger Vessel

INLAND WATERWAYS

O

n March 31, President Biden released the outline of his infrastructure package known as the “American Jobs Plan.” While at press time specifics are still to be determined, the package will invest about $2 trillion this decade to be paid for by the president’s “Made in America” corporate tax plan.

Luckily, inland waterways are identified, along with aviation, in the Biden plan under the heading of “building worldclass transportation infrastructure.”

The plan says, “... President Biden is calling on Congress to invest an additional $17 billion in inland waterways, coastal ports, land ports of entry, and ferries, which are all essential to our nation’s freight.

This includes a Healthy Ports program to mitigate the cumulative impacts of air pollution on neighborhoods near ports, often communities of color. These investments will position the United States as a global leader in clean freight and aviation.”

While timing and the path forward remain unclear, what we do know is that House Speaker Nancy Pelosi had said she wants to pass a bill off the House floor

by July 4. Senate Environment and Public Works Committee Chairman Tom Carper wants to pass the highway portion of the bill by Memorial Day. The highway bill reauthorization is set to expire September 30, which provides a shot clock against which something needs to happen on highway infrastructure.

Already, there is some pushback on hiking the corporate tax rate to fund the plan.

It seems infrastructure packages have been pending for the past several years, 4 Marine Log // May 2021

but to no real avail, so luckily, we are not starting from scratch. In fact, last year, the House Majority (Democrats) introduced and passed an infrastructure package that included full federal funding of $3 billion for inland waterways lock modernization.

While last year’s effort does not guarantee that lock modernization will be included in the final infrastructure package, the

Waterborne commerce on the inland rivers can serve as a transportation solution for the future ...

fact that inland waterways were included in the last bill to gain some momentum could bode well for locks. WCI continues to work with members of Congress and our hope is that infrastructure can remain a bipartisan issue, with legislation meaningfully addressing the current needs of the system, and not just another weekly talking point or punch line to an inside-the-Beltway joke about infrastructure week.

In fact, there is already a blueprint for the administration and Congress to

follow for inland waterways infrastructure recapitalization. Over the last year-anda-half, the Inland Waterways Users Board (IWUB) has been working with the U.S. Army Corps of Engineers to update the Capital Investment Strategy and make recommendations to Congress on the order navigation projects should be considered to begin construction.

WCI believes the IWUB provides a boots-on-the-g round perspective on navigation capital projects that many Washington bureaucrats could not possibly have. Currently, there is a portfolio of navigation projects valued at $7 billion that can be constructed if funding is provided, and it is imperative that the administration and Congress continue to rely on the IWUB as a resource for prioritizing lock modernization. Additionally, the IWUB is shuttered due to a Departm en t of D efen s e re v i e w of a dv i s or y committees, but it is hoped that it will be reconstituted soon.

The inland waterways transportation infrastructure portfolio, specifically locks, makes an excellent case for their inclusion in a comprehensive infrastructure package. According to the National Waterways Foundation, barges provide the most fuelefficient surface mode of transportation.

Our industry’s one-ton of cargo moving 647 ton-miles per-gallon of fuel tops the other key surface modes (145 ton-miles for truck, and 477 ton-miles for locomotives). Lock modernization will not only limit the number of double cuts and reduce idle time for towboats but will also continue to bolster the efficiency and environmental benefits of inland waterways transportation.

While we continue to hear about roads, rail, bridges and broadband, let’s not forget inland waterways infrastructure and its critical importance to the nation. Waterborne commerce on the inland rivers can serve as a transportation solution for the future and since the waterways also serve as a plan for American jobs, they must remain part of the American Jobs Plan.

TRACY R. ZEA

President/CEO, Waterways Council Inc.

Photo Credit: Shutterstock/ Earl D. Walker

Let’s Hear It for Infrastructure … This Time?

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INDUSTRY INSIGHTS

OFFSHORE WIND FARMS AT A GLANCE WELCOME TO Industry Insights, Marine Log’s quick snapshot of current trends in the global marine marketplace.

This month, we take another glance at offshore wind, including a look at U.S. offshore wind power targets and who is dominating in the global offshore wind sector.

As we have repor ted, the U.S. government recently announced an acceleration of offshore wind projects and increased funding for renewable energy. The goal is to develop 30,000 megawatts (MW) of offshore wind capacity in the next decade, which would create up to 80,000 new jobs.

The U.S. has just seven operating wind turbines off the East Coast and building of large-scale wind farms comparable is still in the future.

announced new Wind Energy Areas (WEA) in the New York Bight between Long Island and the New Jersey coast. Currently, BOEM has 16 active commercial wind energy leases off the Atlantic coast.

Acco rd i n g to Z a c Wa rd, of f s h o re GI S a n a l y s t a t VesselsValue Ltd., the East Coast of the U.S. is best suited for offshore wind farms due to consistent wind speeds and the extensive coastal shallow waters, plus the proximity to numerous large cities looking for renewable energy.

One factor in building out offshore wind farms in the U.S. will be the need to build more Jones Act Wind Turbine Installation Vessels (WTIVs) or feeder vessels to supply foreign-flagged WTIVs.

The Bureau of Ocean Energy Management ( BOEM )

Meantime, the charts below may be an indicator of where U.S. offshore wind could be headed.

Top Windfarm Vessel Owners

Top Windfarm Vessel Owner Countries

20 20

Esvagt AS

Jan de Nul 15 15 Ostensjo Rederi AS

Ziton AS

0

1

2

3

4

5

Number of Vessels

Source: VesselsValue April 2021

6 Marine Log // May 2021

6

7

8

00 Number of Vessels

Germany - 7

Norway - 12

GeoSea

China - 15

55

Fred Olsen Windcarrier

Denmark - 16

Acta Marine Group

Netherlands - 9

10 10

O P E R AT E Y O U R V E S S E L F R O M W H AT E V E R L O C AT I O N P R O V I D E S T H E B E S T VA N TA G E P O I N T. SHANE FAUCHEUX President, Rio Controls & Hydraulics

Rio has successfully installed multiple Sea Machines systems on US Flag vessels with a growing backlog in 2021.

See how autonomous technology is bringing change to your sector at Sea-Machines.com.

WELLNESS COLUMN

I

n December 1992, Science Magazine announced nitric oxide (NO) as its Molecule of the Year. Several years after that, three scientists won the Nobel Prize for their work identifying NO as a signaling molecule in the body.

The press release read: “Nitric oxide protects the heart, stimulates the brain, kills bacteria, etc. It was a sensation that this simple, common air pollutant, which is formed when nitrogen burns, for instance in automobile exhaust fumes, could exert important functions in the organism.” Here are a few additional things to know about NO. Nitric oxide is made in the body in two ways. One is in the lining of blood cells and the other is when nitrate-rich foods are eaten. Once circulating in the body, research

by Nobel laureates shows NO signals blood vessels to expand. This, in turn, increases blood and oxygen flow to organs and tissues resulting in decreased blood pressure, increased muscle power and a cascade of impacts throughout the immune system, brain and much more. Additionally, NO has been shown to stimulate the release of certain hormones, such as insulin to help manage sugar’s circulation in the blood and human growth hormone that manages the life cycle of cells.

Production of NO from blood cells decreases about 50% after age 40. Increasing intake of dietary nitrates can help assure NO continues moving oxygen around the body and especially into our aging brains. Research from the Medical Research Council’s Toxicology Unit at the University of Leicester shows that NO can change the computational ability of the brain. This can potentially make it a 8 Marine Log // May 2021

viable source of power in staving-off neurodegenerative diseases, including Alzheimer’s and other forms of dementia that tend to plague the aging.

A little bit of crafty plant-based eating can raise levels of NO in the blood. Red beets can contribute the most available nitrate, followed by vegetables, such as leafy greens, celery, broccoli, cucumber, carrots,

Research now shows that even a small amount of processed meats eaten daily can significantly increase risk for colorectal cancer. cauliflower, oranges and bananas. Additionally, delectable treats like dark chocolate, tea and coffee add polyphenols and antioxidants to the mix, which studies show boost NO production.

Not all nitrates assimilate into the body in the same way. One food group that contains nitrates and nitrites to avoid is that of processed meats or meats that are smoked, salted, cured, fermented, or otherwise preserved in some way. The nitrates that naturally occur in fruits and veggies convert more easily into NO rather than a molecule

called nitrosamines, the direct result of processed meats.

The World Health Organization says nitrosamines are cancer causing. Kate Allen, executive director of science and public affairs at the World Cancer Research Fund said that the difference in veggie vs. processed meat nitrates. “It’s not so much nitrates/ nitrites per se, but the way they are cooked and their local environment that is an important factor,” says Allen. “For example, nitrites in processed meats are in close proximity to proteins. When cooked at high temperatures this allows them to more easily form nitrosamines, the cancer-causing compound.”

Research now shows that even a small amount of processed meats eaten daily can significantly increase risk for colorectal cancer.

There are a few other NO boosting activities or degrading activities that are worth a mention. First, decreasing the use of antiseptic mouthwash may be worth a consideration.

A 2013 study looked at the use of antiseptic mouthwash in relationship to blood pressure. Researchers found an increase in blood pressure with an increase in the use of antiseptic mouthwash, ultimately raising one risk factor (high blood pressure) of cardiovascular disease. The bacteria that convert nitrates into NO start their hard work in the mouth and antiseptic mouthwash is killing them off.

Without these bacteria, nitric oxide production from your greens can get derailed.

An activity that can help tinker with cellular production of NO levels is exercise. Exercise increases blood flow around the body and increases antioxidant production. These antioxidants help to protect cells from breaking down due to oxidative stress. When cells stay intact, so too does their production of NO. Understanding NO can bring valuable insight with which we can hone our cardiovascular and brain health. With a little wise use of plants and exercise, NO can help support efforts to decrease the risk factors of dementia, heart disease and cancer.

Nothing in this article constitutes medical advice. All medical advice should be sought from a medical professional.

EMILY REIBLEIN

Director-Health, Safety, Security and Environment (HSSE) Crowley Logistics

Photo credit: Shutterstock/ Sohel Parvez Haque

Being in the “NO”

VESSEL OF THE MONTH The catamaran is highly stable and has outstanding sea-keeping ability.

M

a j o r M a r i n e To u r s o f Seward, Alaska, has taken delivery of the 150-passenger hydrofoil-assisted catamaran Spirit of Matushka from Bellingham, Wash., shipbuilder All American Marine (AAM).

The 87-foot-by-32-foot aluminum catamaran is certified to USCG Subchapter and will carry passengers on tours visiting Kenai Fjords National Park.

The semi-displacement catamaran hull for this vessel was developed by Nic de Waal of Teknicraft Design in Auckland, New Zealand. The design integrates the signature Teknicraft symmetrical and asymmetrical combined hull shape, bow wave piercer, and innovative hydrofoil system. The advanced hull shape was custom designed using digital modeling and Computational Fluid Dynamics (CFD) analysis. The hull design is complemented by Teknicraft’s signature integration of a wave piercer that is positioned between the catamaran sponsons to break up wave action and ensure reduced drag while enhancing passenger comfort.

10 Marine Log // May 2021

The vessel’s design offers all passengers a smooth ride and comfort as the hull provides a cushioned effect when encountering waves.

The propulsion package includes four Hamilton Jet HM422 waterjets, powered by four Scania DI16 082 engines, each rated at 788 bhp at 2100 RPM. The catamaran is highly stable and has outstanding sea-keeping ability. Its Hamilton Jet AVX controls include features, such as the use of an intuitive Mouseboat controller as well as JetAnchor and Station Keeping modes.

The vessel delivers excellent fuel economy, consuming approximately the same gallons per nautical mile throughout the cruising speed range of 20 knots up to 30 knots, when fully laden. With a fuel capacity of 1,200 gallons, a fixed aluminum hydrofoil, enhancing its speed and stability at high speeds, will assist this fuel-efficient design.

“All American Marine worked with us to define our goals, design a vessel that met those goals, and then delivered,” said

Colby Lawrence, Major Marine Tours vice president. “In fact, they under-promised and over-delivered. This new vessel with its capacity, comfort, and speed is going to be a game-changer for Major Marine Tours.

Our customers are truly going to enjoy the spacious and accessible deck spaces when viewing whales and glaciers.”

Onboard the vessel, passengers can enjoy the spacious comfort of two enclosed cabins, which include tables at every seat. All of the exterior seats are located below covered canopies, including those on the open-air third deck.

Interior amenities include high-quality Beurteaux seats and electrical outlets with USB plugs at every table.

The entire main deck, including the bow, has wheelchair access and the main deck cabin includes wheelchair-designated seating locations. The vessel also features an expansive stadium standing area for wildlife and nature viewing.

As we reported earlier, All American Marine recently became part of the Bryton Marine Group family of boat builders.

Photo credit: All American Marine

Spirit of Matushka:

150-Passenger Catamaran Tour Boat

Supporting the maritime industry through dredging, salvage, heavy-lift, and ocean towing since 1964.

UPDATE

MBARI Orders New Research Ship

With a deep-V hull designed by Ray Hunt Design, the new allaluminum launch measures 52.6 feet overall.

Gladding-Hearn Delivers New Maryland Pilots Launch THE ASSOCIATION OF MARYL AND PILOTS has taken delivery of its fourth

Chesapeake class launch from GladdingHearn Shipbuilding, Duclos Corporation, Somerset, Mass.

Since the Chesapeake class pilot boat was introduced by Gladding-Hearn in 2003, 22 have been delivered to 12 pilot associations throughout the United States.

With a deep-V hull designed by Ray Hunt Desig n, the new al l-aluminum launch measures 52.6 feet overall, with a 16.8 feet beam and a 4.8 feet draft. Powered by twin Volvo Penta D16, EPA Tier 3-certified diesel engines, each producing 641 bhp at 1800 rpm, the vessel’s top speed is over 26 knots. The engines turn 5-blade Bruntons NiBrAl propellers via ZF500-1-A gearboxes.

A Humphree interceptor trim control system, with its Automatic Trim Optimization, is installed at the transom. The launch is equipped with a 12kW Northern 12 Marine Log // May 2021

Lights genset and 100% LED lighting.

T h e v e s s e l ’s w h e e l h o u s e , w i t h a small trunk, is installed amidships on a flush deck.

With electrically heated forward-leaning front windows, the wheelhouse is equipped with five NorSap shock-mitigating reclining seats, a baggage rack and control console.

The forecastle includes a Porta-Potty, split upholstered settee/bunk, lockers for tools and safety gear and a custom immersion suit rack.

The vessel’s inter ior is heated and cooled by two 16,000 btu reverse-cycle HVAC units, in addition to a 2,000 Watt 240 V AC heater in the wheelhouse and in the forecastle.

An aft ladder leads to hinged boarding platforms on the roof.

A control station is at the transom, along with a hydraulically powered J-Basket rescue system for pilot rescue operations.

selected Freire Shipyard in Vigo, Spain, to build a new state-of-the-art research vessel. It is to be named R/V David Packard, in honor of MBARI’s founder, Silicon Valley pioneer David Packard, who founded Hewlett-Packard (HP) in a Palo Alto, Calif., garage with Bill Hewlett, and whose philanthropic endeavors included funding the creation of the Monterey Bay Aquarium in 1984.

Three years later, he founded MBARI as an independent institution committed to pursuing cutting-edge ocean science and engineering programs. Funding for the new vessel comes from the David and Lucile Packard Foundation.

The R/V David Packard will be 50 meters (164 feet) long and 12.8 meters (42 feet) wide with a draft of 3.7 meters (12 feet). It will support a crew of 12, plus a science crew of 18.

It will replace the R/V Western Flyer, MBARI’s flagship research vessel, which will be retired in fall 2022 with the arrival of the new vessel.

Planning for the vessel began in 2009, when MBARI’s marine operations team engaged Seattle headquartered Glosten to design it. For the past three years, MBARI’s marine operations team has worked closely with Glosten’s team of engineers to refine the design specifications.

Glosten provided the design and specification services for the shipyard bid package and assisted in the bid review process. As construction gets underway, Glosten will provide the on-site construction team for MBARI, providing MBARI continuity through the life of the ship.

The final design work will get underway this spring, with keel laying at Freire expected

by November 2021 and the vessel’s launch in September 2022. Construction should be complete in May 2023, when the vessel will depart Spain for its journey to its homeport of Moss Landing, Calif.

The R/V David Packard will be 50 meters long and will support a crew of 12.

Photo Credits: (Top) Gladding-Hearn; (Bottom) GLOSTEN

T H E M O N T E R E Y B AY AQ UA R I U M RESE ARCH INSTITUTE ( MBARI ) has

UPDATE

Docking a Dive Boat is a First For Navy’s Oldest Floating Dry Dock T H E N AV Y ’ S M I D - AT L A N T I C REGIONAL MAINTENANCE CENTER (MARMC) in Norfolk, Va., used its float-

ing dry dock Dynamic (AFDL 6) to dock a dive boat on April 15.

Delivered in 1949 by Chicago Bridge & Iron Co., the Dynamic is the Navy’s oldest floating dry dock, but this was its first use to drydock a dive support vessel. Dynamic routinely docks Landing Craft Utility (LCUs) and other flat-bottom craft. Docking the round-bottom dive boat could lay the groundwork for Dynamic to potentially broaden its docking capabilities in the future.

Dive Support Boat 1103, attached to the MARMC’s Dive Locker, will undergo emergent repairs in Dynamic, ensuring the boat will be operational again in the most efficient timeframe.

To prepare for the docking, stakeholders worked together to provide measurements and dimensions in order to create blocks that

Dry Docks Work Boats Barges Photo Credits:: U.S. Navy

JMS-Designed

Modular Dry Dock 200’ expandable to 420’ 3,800 to 7,500t Lift Capacity Designed by JMS for Group Ocean New Brunswick

fit the contours of the round-bottom dive boat to ensure stability while in the dock.

“We had to disassemble our original block build that we use for LCUs, tear down the hard wood towers and rebuild six towers from scratch for the round-bottom vessel to make sure they were beveled to fit the bottom of the dive boat.” said Dynamic’s 1st Lt., Boatswain’s Mate 2nd Class (SW/AW) Jeffrey Devlieger.

InterManager: We’ll Source Seafarer Vaccinations Ourselves Frustrated by the lack of progress and slow pace of international efforts, ship management trade association InterManager says it will work separately to obtain COVID-19 vaccines to protect seafarers and keep international trade routes open.

According to InterManager, the association—whose membership includes most of the world’s leading ship managers—will now work on sourcing vaccinations separately

through legitimate channels to enable its members to vaccinate their seafarers as soon as possible and to support others within the maritime industry to do the same.

The UN has designated seafarers as “essential workers” but so far only 58 countries have followed this directive and are prioritizing seafarers to enable them to travel to and from vessels. In addition, vast numbers of seafarers originate from developing countries where the official rollout of vaccinations are hampered by the availability of vaccines, thus compounding the problem.

Mark O’Neil, president of InterManager, stressed that InterManager will continue to collaborate and give full support to the IMO and fellow shipping industry NGOs in sourcing vaccination for seafarers. However, he expressed his disappointment at the slow speed of international efforts.

“Sitting back and waiting for these bureaucratic institutions is only part of the solution,” said O’Neil.

Let’s make plans.

Naval Architecture Marine Engineering www.JMSnet.com 860.536.0009

May 2021 // Marine Log 13

UPDATE

BIZ NOTES BOLLINGER BUYS GULF ISLAND’S SHIPYARD DIVISION Gulf Island Fabrication Inc. has sold the assets of its Shipyard Division along with certain long-term vessel construction contracts to Bollinger Shipyards LLC for approximately $28.6 million.

According to Gulf Island, the transaction includes the Shipyard Division property and assets in Houma, La., including all four of the division’s dry docks.

In addition, the transaction includes the long-term contracts and all related obligations for the construction of three research vessels for Oregon State University and five towing, salvage and rescue ships for the U.S. Navy.

Among exclusions from the transaction were the contracts and related obligations for the construction of two 40-vehicle ferries for the North Carolina Depar tment of Transpor tation, a 70 -vehicle ferr y for the Texas Department of Transportation, and t wo multi-purpose

ser vice vessels for Hornbeck Of fshore Services that, says Gulf Island, are subject to dispute.

“The addition of the new Houma shipyard further strengthens our position within the U.S. defense industrial base as a leading shipbuilder and vessel repair company,” said Ben Bordelon, CEO and president of Bollinger Shipyards. The new Bollinger Houma facility encompasses 437 acres on the west bank of the Houma Navigation Canal, of which 283 acres is unimproved land that is available for expansion.

The four dry docks included in the sale are a 15,000-short-ton dry dock, a 4,000short ton dry dock, a 3,000-short-ton dry dock and a 1,500-short-ton dry dock.

GAC OPENS RHODE ISL AND OFFICE GAC North America has opened a new shipping office in Providence, R.I., to augment its position as a ser vice provider for the U.S. offshore wind industry while strengthening its support for existing LNG,

LPG, CPP and husbandry customers in the area.

It is the 18th office in GAC Nor th America Shipping’s network covering ports across the United States, offering a range of services including ship agency, bunker fuels supplies, hub agency and protecting agency.

CMA CGM ORDERS 22 MORE SHIPS Marseille headquar tered CMA CGM Group repor ts that it has signed an order with Chinese shipbuilder CSSC for 22 new ships.

• Six LNG-powered containerships with a capacity of 13,000 TEUs; • Six LNG-powered containerships with a capacity of 15,000 TEUs; and • 10 VLSFO-powered containerships with a capacity of 5,500 TEUs. The company says that the order is aimed at accommodating market growth.

The vessels are expected to join the CMA CGM fleet between 2023 and 2024.

WORLD-CLASS VESSEL DESIGN HIGH-VALUE SHIPYARD SUPPORT TRUSTED CONSULTANT SKILLED GOVERNMENT CONTRACTOR

WIND FARM SUPPORT VESSEL ACCOMMODATION TRANSFER VESSEL

65 FT

SERVICE OPERATION VESSEL

RIGHT WHALE-COMPLIANT WIND FARM SUPPORT VESSEL

BMT ACTIVE FENDER SYSTEM™

GLOBAL LEADERS IN SHIP DESIGN FOR THE OFFSHORE WIND INDUSTRY

703-920-7070 | INQUIRIES@BMTDP.COM | WWW.BMT.ORG 14 Marine Log // May 2021

UPDATE

BIZ NOTES ATLANTIC WIND TRANSFERS POSITIONS FOR GROWTH Rhode Island-based offshore wind crew transfer vessel (CTV) owner and operator Atlantic Wind Transfers (AWT) is to use DNV’s seamless Fit for Purpose program and has retained classification society DNV to pursue integrated Safety Management System and ISO 9001, ISO 14001, and ISO 45001 certification.

AW T’s president Charles Donadio, sees the company’s fleet of CTVs growing five-fold over the next five years from its current two vessel fleet, with the business expanding to the West Coast as the industry grows. He sees the company’s management system certification as an integral part of that growth plan.

SHEARWATER GEO SWOOPS ON POLARCUS SIX Six seismic acquisition ships previously operated by Polarcus until its lenders took possession of

US WATERCR AFT LICENSED TO BUILD SEA ARK MARINE PORTFOLIO

the, have been acquired by Bergen, Norway, headquartered Shearwater GeoServices Holding AS. Polarcus went into liquidation after its lenders took possession of the vessels. Polarcus’s sole other ship, the Vyacheslav Tikhonov, which is on bareboat charter to a unit of Sovcomflot, was previously acquired seismic company PXGEO. Shearwaters entered two transactions with Tiger Moth AS, a company affiliated with Woodstreet, to take over assets previously owned by Polarcus. The six ships were acquired for $127.5 million, while streamers and related seismic equipment were acquired in a $50 million transaction.

Shear water says he transactions are being financed through a new $107.5 million vessel loan facility provided by DNB and GIEK of USD 107.5 million and a convertible loan from Rasmussengruppen AS in the amount of $85 million, with $15 million of the convertible loan available for general corporate purposes. Shearwater is owned by Rasmussengruppen AS, GC Rieber Shipping ASA and Schlumberger.

Huber t, N.C., based US Watercraf t reports that it has entered into an exclusive licensing agreement to utilize the complete SeaArk Marine por tfolio of commercial fire fighting, military, survey, and workboats.

S e a A r k M a r i n e’s D a u n t l e s s a n d Commander series of aluminum fire and patrol vessels, both feature the deep-v hull form developed by Ray Hunt Design, which will consult with US Watercraft on engineering and design for all next-generation SeaArk Marine models.

The SeaArk Marine brand, which began as the MonArk Boat Company in 1959, the company developed over the years into separate commercial and recreational lines. The popular recreational brand SeaArk Boats remains a separate entity while the SeaArk Marine models will be sold exclusively under the US Watercraft brand.

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May 2021 // Marine Log 15

INSIDE WASHINGTON

House Panel Gets to Grips with Decarbonization

T

he House Subcommittee on the Coast Guard and Maritime Transportation held a hearing April 15 that put the issue of shipping decarbonization under the congressional spotlight.

That should be a warning signal to anyone in the U.S. maritime industry who still thinks this is an issue for only deep-sea operators to worry about. The lesson from history is that when legislators start to talk about something, then their next step will likely be to legislate on it.

Chair of the House Committee on Transportation and Infrastructure Peter DeFazio (D-Ore.) made that clear in his opening remarks.

“The Biden administration is prioritizing emissions reduction across transportation sectors, and international agreements are setting targets for maritime carbon emissions reduction by 2050,” he said. “But now is not the time for us to take the back seat; Congress needs to implement strong and progressive measures to reach the goal of a fully decarbonized maritime industry.”

“There are many steps we can take to support this vital work,” he continued. “For instance, we can increase grant funding for ports looking to add shore-side power hookups for vessels to run on electricity, to purchase electric cargo handling equipment, and to construct microgrids that integrate clean energy sources such as offshore wind.”

“Maritime carbon emissions must be eliminated if we are to avoid the most devastating impacts of climate change,” said Chair of the Subcommittee on Coast Guard and Maritime Transportation Salud Carbajal (D-Calif.). “While the challenge can seem daunting, we must recognize and capitalize on the opportunity for American industry to innovate and lead the pack. If we develop new forms of energy generation, we can create jobs for American workers.”

The subcommittee

16 Marine Log // May 2021

heard testimony from five expert witnesses: John Butler, president and CEO, World Shipping Council; Kristin Decas, CEO and port director, Port of Hueneme, Calif.; Dr. Lee Kindberg director of environment and sustainability, North America, Maersk; and Morgan Fanberg, PE, president, Glosten.

IMO GOALS Much of the expert testimony covered areas that will be more than familiar to most of the Marine Log audience. For example, the World S h i p p i n g C o u n c i l ’s J o h n B u t ler brought the audience up to speed on the GHG reduction goals adapted by IMO in 2018: a 40% increase in overall fleet efficiency by 2030 and a 50% reduction in absolute emissions by 2050 (versus a 2008 baseline), with emissions to be reduced to zero or near zero as soon as possible after 2050.

“While the IMO’s 2030 GHG goal can be met by operational and design modifications applicable to a fleet that remains fossil-fuel based,” said Butler, “the 2050 reduction goal, and the move thereafter to a zero or near-zero GHG emission status for ocean shipping, cannot be met by an industry that uses fossil fuels as its propulsion base.”

KERRY MOVES THE GOAL POSTS In fact, the IMO goal could well get even more ambitious. Since the April 15 hearing, Special Presidential Envoy for Climate John Kerry has announced that “the United States is committing to work with countries in the International Maritime Organization to adopt a goal of achieving zero emissions from international shipping by 2050, and to adopt ambitious measures that will place the sector on a pathway to achieve this goal.”

In his testimony, Butler described one of the “ambitious measures” up for consideration at IMO: a proposal for a $5-6 billion industry-funded research and development (R&D)

effort over a 10- to 12-year period to identify the fuels and related technologies of the future that will be needed to meet IMO’s decarbonization goals.

The shipping industry would fund this R&D effort through mandatory contributions via a proposed per ton levy on GHG emissions.

Dan Rutherford, Ph.D., program director, Marine and Aviation International Council on Clean Transportation, told the hearing that to meet even the current IMO goal of a 50% reduction in absolute emissions by 2050, “we’ll need zero-emission deep-sea ships on the water by no later than 2030.

Key technologies include battery electric ships for near-port operations and short sea shipping; hydrogen, which in pressured or cryogenic form can power fuel cells that are already available and scalable; and ammonia, which is gaining attention as an easy-to-store hydrogen carrier. These fuels can be generated from abundant renewable electricity with a negligible climate footprint.”

Actions the U.S. government should take to support the zeroemission vessels transition, said Rutherford, include, first “substantial investments to develop and deploy zero-emission vessels and fuels, along with supporting port electrification and infrastructure.”

JONES ACT VESSEL ROLE U.S. flagged Jones Act vessels, which operate shorter routes between regular ports, he said, “can be used to demonstrate and mature the technologies we’ll need for deep sea zero emissions vessels.”

G l o s t e n ’s M o r g a n F a n b e r g u n d e r s c o re d t h a t m e e t i n g c a rbon reduction goals requires an aggressive shift from burning foss i l f u e l s t o l o w o r z e ro - c a r b o n fuels and the electrification of certain short-run vessels.

“Today,” he said, “these non-fossil fuels do not exist at commercial scale, port infrastructure cannot handle future demands, and regulations applying to these future technologies do not exist.”

INFRASTRUCTURE SPONSORED CONTENT

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Dennis Bryson, ABS Manager Gulf Coast Area Operations, said: “ABS is pleased to support NGL Marine by providing Subchapter M services as their Third-Party Organization (TPO). ABS views compliance as a collaborative effort between owners, operators, TPO’s and regulators. As NGL Marine’s Subchapter M TPO, ABS will utilize its experience to provide valued oversight of their SQE Safety Management System and Internal Survey Program.”

NGL Marines’ Health, Safety, Quality, Environment, and Security Department works to ensure the safety and security of its employees, the environment, customers, cargo and terminals. NGL manages continuous compliance and improvement through ISO and International Safety Management (ISM) programs, including the ISM Safety, Quality and Environmental Management (SQE) program, employee training, and

performance tracking. Key environmental programs cover air pollution and climate change, recycling and conservation of energy.

Realizing the importance of documented procedures and clear policies relating to safety and environmental management, NGL Marine keeps its vessels and offices certified to the requirements of: • The International Safety Management (ISM) Code • The voluntary ISO 9001 Quality Management Systems and ISO 14001 Environmental Management System standards • The ISM Safety, Quality and Environmental Management (SQE) program • The American Waterway Operators (AWO) – Responsible Carrier Program • Sub Chapter M Requirements (46 CFR Subchapter M) • SIRE / TMSA (Ship Inspection Report Program) • NGL Marine Vessel Security Plan (VSP) • NGL Marine Vessel Response Plan (VRP) & NGL Marine Non-Tank Vessel Response Plan (NTVRP) • IMO Resolution MSC.428(98) Maritime Cyber Risk Management in SMS The VP of NGL Marine made the decision in 2020 to certify the Office and all vessels to the requirements of the International Safety Management (ISM) Code ISO 9001 Quality Management and ISO 14001 Environmental Management standards. In December of 2020 NGL Marine Office received their DOC that was certified to the ISM Safety, Quality and Environmental Management (SQE) program from American Bureau of Shipping (ABS).

January of 2021 the Evelyn James received SQE a certificate meeting SQE requirements with a SMC

Certificate from ABS. The H Michael received their ISM certificate in February 2021. NGL Marine will continue certifying the remainder of the fleet. The SQE program combines the now-mandatory ISM Code requirements with the voluntary ISO 9001 Quality Management and ISO 14001 Environmental Management standards.

As an SQE and ISO certified company, NGL Marine has a documented Management System which encourages continuous improvement and is overseen by a Designated Management Representative. One of the major components of NGL Marines’ SQE program is established policies. NGL Marine aims to exceed already stringent environmental standards in an effort to reduce or eliminate environmental risks from our operations.

NGL Marine has identified the significant environmental aspects and impacts of NGL Marines’ business through its ISO program. Related objectives and targets are established annually for our vessel operations and office. Performance is tracked against targets and reviewed in our Management Review.

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3/19/21 10:07 AM

New Bill Could Send Billions to U.S. Shipyards

W

ith infrastructure spending on the agenda in Washington, D.C., a bipartisan group of legislators has introduced a measure aiming to provide $25 billion to make investments needed to optimize, improve, and rebuild shipyard facilities, electrical infrastructure, environmental systems, and the equipment of public and private U.S. shipyards that support the U.S. Navy fleet.

The Supplying Help to Infrastructure in Ports, Yards, and America’s Repair Docks (SHIPYARD) Act of 2021 would designate $21 billion for the Navy’s four public shipyards in Virginia, Maine, Hawaii, and Washington, $2 billion for major Navy private new construction shipyards, and $2 billion for Navy private repair shipyards.

It has been introduced by U.S. Senators Roger Wicker (R-Miss.), Tim Kaine (D-Va.), Susan Collins (R-Maine), Angus King (I-Maine), and Jeanne Shaheen (D-N.H.), along with Representatives Rob Wittman (R-Va.) and Mike Gallagher (R-Wis.).

According to Wicker’s office, the legislation would help to address a backlog of modernization, maintenance, and expansion

projects the U.S. Navy has identified at public shipyards and provide the Navy flexibility to support capital improvement projects and other investments at yards that are critical to maintaining and growing the fleet.

... The legislation would help to address a backlog of modernization, maintenance and expansion projects ...

Projects identified by the Secretary of the Navy would include improvements to shipyard infrastructure, construction of new dry docks, and other items to enable these shipyards to keep pace with Navy needs for decades to come.

What Will Legislation Do? • Fully fund the Navy’s $21 billion Shipyard Infr ast r uc ture Optimization Program at the nation’s four public shipyards in Portsmouth, Va., Kittery, Maine, Pearl Har bor, Hawaii, and Bremerton, Wash; • Invest $2 billion in commercial repair shipyards, subcontractors and suppliers that maintain the U.S. Navy fleet, allowing the Secretary of the Navy to fund key upgrades and infrastructure modernization projects to address current and future maintenance needs; • Invest $2 billion in commercial new construction shipyards, subcontractors and suppliers that build the U.S. Navy fleet, allowing the Secretary of the Navy to fund key upgrades and infrastructure modernization projects to meet current and future Navy capability and capacity needs; and • Provide all funds via the Defense Production Act, removing typical fiscal year constraints on appropriations and increasing flexibility to enable the Secretary of the Navy to accelerate contract awards.

May 2021 // Marine Log 17

POWER & PROPULSION

Getting to Zero is

G

eneral Motors is to phase gasoline and diesel powered cars by 2035—and California could ban gas-fueled leaf blowers and lawnmowers by 2024. Developments like that are a reminder that moves to make maritime transportation a zero-emissions industry are hardly happening in isolation.

On a small scale, some zero-emissions vessels are already in operation—the two all-electric Maid of the Mist boats giving tourists a close up of in Niagara Falls being an example. Many other vessels are considered zero emissions during part of their operations, including platform supply vessels fitted with battery packs or containerships plugged into shoreside power while in port. But how do we get from these beginnings to an emissions-free world fleet? And when will we get there?

The upcoming meeting of IMO’s Maritime Environmental Protection Committee (MEPC 75) is likely to prove interesting, with the U.S. now joining countries like Denmark in pushing for a complete elimination of GHG emissions from shipping

18 Marine Log // May 2021

by 2050, and the International Chamber of Shipping looking for market-based measures (a mealy mouthed way of saying some sort of tax on fuel and/or emissions) to finance the massive R&D that will be needed to meet IMO’s goals.

Maritime is clearly on a journey to a greener future and the speed is picking up.

And, as this month’s Inside Washington column makes clear, it’s not only deep-sea ships that are affected.

From a power and propulsion point of view, whether you’re talking VLCCs or inland towboats, the fundamental goals remain the same: you want to push the maximum payload possible through the waxter for a given horsepower, which means having an optimized hull form and propulsion plant.

With those thoughts in mind, let’s look at some recent developments that show how far along the journey to zero we are right now.

that will not only be the most environmentally friendly ever built, but the largest, with a capacity for 9,100 car equivalent units.

The company has entered a Memorandum of Understanding with China’s Xiamen Shipbuilding Industry that, it says, will make it possible to have the first vessel delivered by the end of 2023.

“We are accelerating our decarbonization efforts to meet our net zero emissions target by 2040,” says Höegh Autoliners CEO Andreas Enger. “Together with our customers and trusted partners we will make a significant contribution to a more sustainable maritime industry.”

Appropr iately, the Auror a Class is designed to transport the cars of the future.

Its strengthened decks and enhanced internal ramp systems, enable electric vehicles to be carried on all decks and provide more flexibility for heavier project cargo.

Ammonia Ready

Multi-Fuel Man B&W Engine

Car carrier giant Höegh Autoliners, headquartered in Oslo, Norway, last month announced plans to build a series of ammonia-ready car carriers called the Aurora Class

A MAN Energy Solutions multi-fuel engine that can run on various biofuel and conventional fuels, including LNG, will power the Aurora Class. With minor modifications,

Photo Credit: Höegh Autoliners

GETTING REAL

POWER & PROPULSION

shipyard in South Korea for two VLCC newbuilds plus an option for a third vessel.

These ships will be LNG-ready and Euronav says it is working in cooperation with the shipyard and classification society to include an ammonia-ready notation with the potential to reduce CO2 emissions to zero “when technology, logistics and the regulatory framework allows for it.” This, says Euronav, should be defined by the end of the summer.

The vessels will be delivered during fourth quarter 2022 and first quarter 2023, at a price of $186 million for the pair that includes $4.2 million in additions and upgrades to the standard specifications. Euronav also has the option to contract a third VLCC with the same specifications that would be delivered in the second quarter of 2023.

Ammonia Soon, But For Now LNG

Photo Credit: Crowley Maritime

Set to be on the water by end of 2023, Höegh Autoliners’ first Aurora Class car carrier will be ammonia-ready

it can transition to use future zero-carbon fuels, including Green Ammonia.

“Reducing emissions is more important than ever,” says Kjeld Aabo, director new technologies at MAN Energy Solutions.

“With the selected MAN B&W engine, Höegh Autoliners will be able to operate on various fuel types. After modifications of the engine, tank and auxiliary systems, the engine will be ready to run on virtually any future zero carbon emission fuels: including ammonia. We at MAN Energy Solutions are proud to be the partner on Höegh Autoliners’ path to zero.”

“With the multifuel engine and DNV’s new ammonia ready notation, Höegh Autoliners is bringing the segment and work to decarbonize the maritime industry to a new level,” says Hans Eivind Siewers, segment director passenger ships and Ro/Ro at DNV. “The Aurora design will further meet the enhanced safety standards and reduce environmental footprint significantly.”

Meantime, one of the world’s leading tanker operators, Euronav NV, also has its eyes on ammonia. It has just entered into an agreement with the Hyundai Samho

Both the Höegh and Euronav orders underscore that while ammonia-fueling is a possibility that is getting nearer, it is not here yet. And while the technology may be close, production and distribution of green ammonia may well arrive a lot later. Meantime, the consensus seems to be that LNG remains the cleanest fuel currently available for large ships.

How Electric is the Future?

Two 67-meter (219.8-feet) Ro/Ro freight ferries on order for Norwegian grocery distributor ASKO at Cochin Shipyard in India have gotten a lot of attention because eventually it is planned that they will operate autonomously.

They also illustrate, however, what is currently possible with fully electric battery propulsion, at least on fairly short routes.

Designed for transporting trailers across Oslo Fjord between two of ASKO’s distribution centers, each will have the ability to transport 16 fully loaded standard EU trailers at a time. The operating speed will be 10 knots and it is anticipated that this mode of trailer transport will replace over 2 million road miles per year of truck traffic, in turn saving around 5,000 tonnes of CO2 every year.

The main propulsion system of each vessel consists of one medium-sized Schottel EcoPeller type SRE 210 (500 kW) driven by an electric motor. This motor will be electrically powered by a battery bank of 1,846 kilowatt-hours capacity.

With its special hydrodynamically optimized design, the SRE generates maximum steering forces, enabling top performance in terms of overall efficiency and course stability.

An electrically powered Schottel PumpJet type SPJ 57 (200 kW) will be fitted at the bow of each vessel to act both as thruster and take-home system. The extremely compact SPJ will improve maneuverability many times over.

Harbor Tugs With ports looking to reduce their carbon footprints across their operations, harbor tugs are an obvious target for electric operation.

Crowley Engineering Services has completed the design of the first fully electric U.S. tugboat with autonomous technology. The Crowley design, developed with the expertise of recently integrated subsidiary Jensen Maritime, leverages a large battery system and power saving technology to operate in a fully electric mode while producing zero air

Crowley Maritime’s electric harbor tugs have no stack—with no emissions, it doesn’t need one.

May 2021 // Marine Log 19

POWER & PROPULSION emissions or greenhouse gases.

The 82-foot tug will provide 70 short tons of bollard pull, using an azimuthing drive propulsion system with two 1,800 kW motors and a 6 MWh battery.

The design also supports fully customizable features and can be adjusted for alternate power capacities suitable for a standard hybrid framework if desired. The fully modular batteries allow for upgrades as technology changes. In addition, Crowley has developed an onshore charging station to fully support charging and reliable performance at the home port.

“Crowley’s design provides operators the tugboat solution to continue serving ships quickly and powerfully, while reducing their environmental impact by eliminating a carbon footprint,” said Ray Martus, vice president, Crowley Engineering Services.

“This new design sets the standard for innovation by showing that sustainability and power can work together seamlessly in our maritime industries.”

With no exhaust stack, the tug has 360 degrees of visibility from the pilot’s station, allowing the operator to see without obstruction.

The tug has also been designed for future autonomous operation to increase the safety

and efficiency of the operation including integrated automation and control systems.

The intelligent maneuvering and control system offers more efficient vessel operations and allows masters to focus on the overall control and positioning of the vessel in increasingly busy harbors.

World’s First Diesel/ Battery Push Boats A new fleet of innovative diesel/battery electric pushboats for Hidrovias do Brasil S.A. is under construction in Belov Engenharia Shipyard, in Salvador, Brazil, to a design from Robert Allan Ltd. of Vancouver, B.C., Canada. The vessels will provide terminal assistance on the Amazon River system, with delivery of the first vessel in 2022.

These pushboats are expected to be the world’s first battery electric shallow draft pushboats when they begin operating in the Amazon River system.

Built to the RApide 2000-E design, the pushboats are fitted with a DC grid diesel-battery electric propulsion system, two diesel generators, two L-Drives and a large battery bank (600 kWh initial installation, with capability to scale up to 1800 kWh).

The pushboat is equipped with two L-Drive

units, each with an input power of 350 kW. The propulsion system is diesel-electric to improve efficiency when operating in lower power modes. The vessel is certified as an inland navigating vessel by DNV.

Beyond Hybrid When plugging into shoreside power isn’t an option, how do you power an electric vessel without putting a diesel in the picture? The answer is a fuel cell, which, at its simplest, can be understood as pretty much a way of turning fuel into electricity, with hydrogen, methanol and ammonia being the fuels usually being considered.

In the Netherlands, Rotterdam-headquartered Future Proof Shipping B.V. is currently retrofitting a 361- by 37.6-foot (110- by 11.45-meter) inland container vessel to use a fuel sail 100% on hydrogen power by December of this year.

Holland Shipyards is removing the vessel’s main engine and gearbox, and installing a new modular propulsion system. This will consist of electric motors, hydrogen tanks, a PEM fuel cell system (necessary for converting hydrogen into electricity) and a battery system. The compressed hydrogen tanks, the fuel cells and the battery system are separate

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20 Marine Log // May 2021

2/27/19 3:33 PM

POWER & PROPULSION units that can be removed for maintenance or replacement purposes.

The hydrogen and fuel cell system will be installed in the cargo space of the vessel, with the hydrogen being placed above the fuel cell system in two 40-foot containers.

The fuel cell system will be triple redundant with 825 kW capacity (to supply propulsion and auxiliary power) and a 504 kWh lithium-ion battery pack for peak shaving, secondary and bridging power. The system will contain a 750V DC bus bar and an e-motor for propulsion.

Could fuel cells soon be in the future for America’s inland waterways, too? Recently, New Orleans headquartered Maritime Partners LLC entered a joint venture with Irish chemical and product tanker specialist Ardmore Shipping Corporation and Bend, Ore.-based Element 1 Corp. The JV, called E1 Marine, aims to bring fuel cells using advanced methanol-to-hydrogen technology to the marine sector—including the inland waterways market.

“We are pleased to partner with E1 and Ardmore to drive the adoption of E1’s hydrogen purification technology across the global maritime landscape,” said Bick Brooks, cofounder and CEO of Maritime Partners LLC.

What’s inside world’s first battery electric shallow draft pushboats?

Photo Credit: Robert Allan Limited

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26.04.21 14:56

May 2021 // Marine Log 21

CYBERSECURITY

CYBERCRIME on the Seas

T

he maritime industry is constantly evolving. With the advent of new technologies and a greater focus on operational efficiency, cybersecurity has stepped out of the background and the IT back offices to the forefront of the industry. Maritime cybersecurity incidents can cost multi-millions of dollars in losses to a shipping company, stevedores and financial institutions. In addition, the hacking or distortion of manifests can reflect fraudulent cargo entering a port, such as narcotics and weapons of mass destruction.

According to Ford Wogan, a partner in the Maritime Practice Group at Jones Walker LLP, in the early 2000s, cybersecurity was barely a blip on the proverbial radar within the maritime arena. In the United States, the Maritime Transportation and Security Act of 2002 (MTSA) was overwhelmingly passed by the House and Senate.

“Enacted in the wake of the September 11, 2001, attacks, the MTSA focused on shoring up port and waterway security efforts to deter, prevent and response to a physical terrorist threat. In fact, the word ‘cyber’ does not appear anywhere in the MTSA,” Wogan says.

22 Marine Log // May 2021

More recently though, as technology has advanced, physical threats to the industry have given way to cyber threats, which have often been undertaken by governmental actors, Wogan says. As a result, cybersecurity concerns—and their effect on the industry’s financials—have become more prominent.

Wogan points to the 2017 NotPetya cybersecurity attack on Maersk Lines resulting in nearly $300 million in losses to the company. “Similar cybersecurity attacks to ports around the world—including in Barcelona and San Diego—crippled not just port operations but other aspects of the global supply chain, illustrating the inherent connectiveness of the industry and the trickle-down effect a cybersecurity event can have beyond just the party targeted,” Wogan says.

Industry stakeholders along with governmental and regulatory agencies have responded to these emerging threats proactively. The United States Coast Guard (USCG) has issued circulars outlining guidelines for addressing cybersecurity risks at MTSA-regulated facilities and, as recently as February, issued a Vessel Cyber Risk Management Work Instruction to provide guidance on USCG’s

approach for assessing cyber risks as part of its commercial vessel compliance program.

And according to Wogan, BIMCO, IMO and other industry leaders have also provided their own guidelines and recommendations for implementing cybersecurity policies and procedures aboard vessels.

“We’ve seen a number of ransomware attacks at ports over the years most recently, the Port of Kennewick,” says Joelle Dvir, associate in McDonald Hopkins’ national data privacy and cybersecurity group. In November 2020, the Port of Kennewick outside of Seattle was hit with ransomware and faced a $200,000 ransom demand. The port was forced to rebuild from backups after deciding not to pay the ransom.

As Dvir explains, ransomware attacks can be introduced into the port environment in a variety of ways — via phishing email, unsecured remote desktop protocol (RDP), and even by physical methods, like plugging a corrupted device into the port environment.

“A culture of privacy from every angle is crucial in protecting the ports,” Dvir says.

“Every person that interacts with the ports must be cyber-aware and know what to do to

Photo Credit:Shutterstock/ metamorworks

By Maura Keller

CYBERSECURITY

avoid an attack and steps to take when they suspect a cyber incident.”

An Evolution of Sorts The maritime industry has recognized the threat of cybercrime for the past decade.

However, according to David Espie, director of security for the Maryland Port Administration, some key elements to address this threat have been absent or inconsistent. These include: Taking the threat seriously; training by security professionals and by system users; lack of reporting cyber-related incidents; lack of coordination by local, state or federal officials; and a failure to adequately fund the acquisition of necessary cybersecurity software and hardware technology.

“Now, in an effort to counter cybercrime efforts, maritime entities are properly investing in necessary counter cybercrime behavior to include training, the hiring of qualified cybersecurity professionals and investing in prudent technologies that deter the cybercrime menace,” Espie says.

Today, the biggest issues facing maritime cybersecurity include: shipping lines ensuring the security of their geospatial

technology and engine operation; the security/integrity of passenger and cargo manifests; security of stevedoring operations; and the integrity of personnel and physical security systems and technology.

The reason for the increase in attacks is, in Wogan’s view, quite evident. Computers play a more critical operational role now than at any time before. But with that increased operational function comes greater cybersecurity vulnerabilities and risks.

“Navigation, mechanical systems, communication systems, cargo operations, and safety and security monitoring all involve computerization in some form or fashion,” Wogan says. “With growing computerization and cloud-based services, the access to computer systems also grows, meaning the avenue and opportunity for a potential cybersecurity attack enlarges.”

According to Dvir, last year Israeli cybersecurity company Naval Dome reported that cyberattacks on the maritime industry’s operational technology systems increased by 900% over the preceding three years.

“Focusing on maritime cybersecurity is crucial not only due to the rising attacks, but given how impactful the seas are in our daily life,” Dvir says. “Ninety percent of trade is by water and nearly 100% of transoceanic data traffic is transmitted under water through undersea cables. As the maritime industry moves towards the use of autonomous vessels, the threat of remote access to the vessels’ controls leading to high jacking is serious. It is essential for the maritime industry to keep abreast of cyber-threats.”

Jarle Coll Blomhoff, group leader, cyber safety and security at DNV says the marine industry is seeing vessels also increase their connectivity to remote and other systems.

“The maritime industry must consider the risks of these and implement necessary barriers and actions,” Blomhoff says. “This is especially critical with operational technology (OT), where there is a significant risk of connecting systems that are not security managed, as the technology is designed to operate in an ‘island mode.’”

On the information technology (IT) side, the threats are common to many industries, so while the maritime industry needs to address them, the factors to consider and the toolbox available are more well known.

In addition, ports are considered critical infrastructure in most countries, so they are often regulatorily obliged to address cyber security. “Still, we will see a continuous increase in the demands on them, as well as the threat picture, as ports must consider

managing the risks of both IT and OT systems as well,” Blomhoff says.

That’s why cyber professionals are working closely with information technology experts in combatting cybercrime. “In addition, FEMA’s federal port security grant program has provided information technology departments a significant resource to acquire state-of-the-art software and technologies which alert system administrators of potential nefarious cyber activity,” Espie says. “This technology continues to evolve in correlation with identified and/or future potential threat activity.”

Dvir stresses that safeguarding the maritime industry from cyber-attacks requires a comprehensive approach. Taking precautions by installing security systems, such as firewalls and detection systems for denial of services attacks and other malware is critical, but no longer sufficient.

“Proactive cybersecurity risk management is crucial,” Dvir says. “Maritime industry players also need to have incident response plans, conduct incident response drills and implement staff training and awareness programs, including phishing training.”

Future Outlook Though training and vetting of security and data-management procedures are taking place throughout the industry, experts agree that the maritime industry must be mindful that its policies and procedures should evolve as threats change.

“Best practices must adapt and efforts must be undertaken to ensure that others are adapting as well. Change, of course, means dedicating time and resources,” Wogan says.

“Complacency or viewing cybersecurity threats as static, rather than dynamic, is a recipe for disaster.”

In October 2021, each Maritime Transportation Security Act certified port in the U.S. must incorporate cybersecurity within their facility security plans. It is noted that FEMA’s federal port security grant program is a vital funding mechanism in America’s fight against cybercrime.

“Maritime cybersecurity will continue to be a challenge,” Espie says. “Lone wolfs, terrorists, those engaged in industrial espionage, and the disgruntled worker w ill continue to target maritime and other industries.”

That’s why the security of systems which house and operate physical security technologies such as access control, closed circuit TV, and ship manifests will continue to be on the forefront.

May 2021 // Marine Log 23

CEO Spotlight

Q & A WITH

Maxie McGuire: President, Callan Marine

W

ithout dredg ing , many r ivers, harbors, and ports would be impassable to tow boats, cargo ships and passenger vessels. Periodic maintenance dredging and channel deepening projects are essential to accommodate these commercial vessels. And as Maxie McGuire, president of Callan Marine, a full-service dredge contractor based in Galveston, Texas, alludes to further down in this story, consumer product prices are lower when ships can transport cargoes on waterways and directly to ports

24 Marine Log // May 2021

and terminals.

To get more acquainted w ith what McGuire and Callan Marine have going on this year, we talked to McGuire, who joined the company after working for the U.S. Army Corps of Engineers in a position specifically designed for veterans. McGuire had served five years in the U.S. Air Force and served a tour in Desert Storm prior to joining the Corps.

While at the Corps, McGuire worked on civil construction projects as an inspector, where he was first introduced to dredging.

Five years later, McGuire moved into the private sector as a project manager with the Bean companies. “I have progressed through the ranks to my current position with Callan Marine ever since,” he says.

Here’s more …

Marine Log (ML): Why are we seeing such a surge in dredge orders in past couple of years?

Maxie McGuire (MM): The market is busy and we’ve been fortunate at Callan Marine to experience a good economy in

Photo Credits: Callan Marine

By Heather Ervin, Editor in Chief

Maxie McGuire

a great market along the Texas and Louisiana coast.

ML: What percentage of your work comes from the Corps?

MM: We are very diverse at Callan Marine, with both a large and small dredge fleet.

Approximately 90% of our projects are private market, but a large portion of our revenue is from the Corps of Engineers, where the large dredges perform that work. Of the private market projects, most of them involve stevedoring customers, the oil & gas sector, and various other products in the market.

ML: What factors into your selection of shipyards?

MM: We lean towards experience with dredge constructors, but put a lot of stock into the schedule and the character and culture of the shipyard as successful projects are one part price and schedule and one part working relationship. If we are aligned in goals, success is the result.

ML: Any thoughts of getting into offshore wind farm work?

M M : Callan Marine was founded on dredging and is heavily involved in the

dredging community but has grown into a turnkey marine contractor. We know there will be dredging services needed in the offshore wind farm industry and will assess our opportunities for growth and expansion into the markets that align with our future goals.

Everything that would feed an offshore platform is buried beneath the seafloor, and dredgers would excavate trenches that would need backfilled.

ML: Finally, what’s to come in 2021 for Callan Marine? Any new projects in the works?

MM: Callan Marine will be delivering our fifth fleet dredge, General Bradley (see concept drawing on the right), in Q2 or Q3 of this year. General Bradley is positioned to be a premier ship channel dredger.

It’s not quite as large and not offshore capable, but it will be perfect for navigation channels, including the Houston Ship Channel, Savannah River, the Mississippi River, and others.

The dredge is being built by Hagler Systems at the Halimar Shipyard in Morgan City, La., with the main engineering of the dredge design and supplying of key dredge components by APT Offshore BV.

The General Bradley is diesel-electric driven and will have three ABC 12DZC engines installed with a total of 9,260 hp.

“The General Bradley is a demonstration of our commitment to capital improvement projects along the Gulf Coast region.

It will transcend our ‘middle market’ offering and truly be a difference-maker in large river and ship channel dredging.

A lot of channel users are familiar with dredges as they maintain the depths and widths of the waterways for all of the users.

You can drive up and down the highways and see potholes on the roads that need repaired. It’s similar to the rivers.

As dredgers, we maintain waterways highways if you will. Proper depths and widths will help maximize cargo.

For the remainder of 2021, stay tuned!

The excitement is not over!

A Look at Callan Marine WHETHER IT’S BEEN WINNING dredge contracts, building new dredgers, or promoting people within the company to reflect its growth, Callan Marine in Galveston, Texas, has been in the news frequently over the last couple of years.

Callan Marine per forms dredging projec ts for both private and public clients by providing services to restore berthing depths for ship docks, navigation channels, or other wise facilit ate tr ans p or t ation in our nation’s waterways.

Last year, Callan Marine’s new cutter suction dredge General MacArthur officially entered service and received it s U.S. Coas t Guard cer tific ate of inspection (COI) and ABS classification. The dredge headed straight to Texas projec t s and then transited to Corpus Christi

for Phase II of that port’s channel deepening and widening project.

General MacArthur The General MacAr thur is 290 feet long, and with its 180-foot idler barge attached, the dredge has a maximum swing radius of 530 feet.

Construc tion of the Jones Ac t dredge and the idler barge involved three Gulf Coast shipyards. The dredge itself was built at two yards. The hull and superstructure construction, housing, and assembly took place at the C&C Marine & Repair shipyard in Belle Chasse, La. The SPI/Mobile Pulley Works shipyard in Mobile, A la., provide d t he dredging equipment, including the cut ter ladder, A-frame, suc tion and discharge pipeline, gate valves, submerged dredge pump, t wo onboard

dredge pumps, a five- and a six-blade cut ter, Christmas tree, anchor boom system and spud carrier installation.

The dredge’s idler barge was built in Sterling Shipyard, Port Neches, Texas.

Its spud-carriage equipment was then installed at SPI/Mobile Pulley.

While not quite as large, the General Bradley is well under way. The new 28-inch dredge that will join the fleet later this year. The General Bradley will focus on Brown Water Division projects and is suited for both maintenance and capital dredging projects.

Last month, Callan Marine promoted Micah Morris to operations manager of its Brown Water Division, where he previously served as project manager, as the company’s portfolio continues to expand. Prior to this move, one person led both the Brown and Blue Water Division.

May 2021 / Marine Log 25

DREDGING

The Frederick Paup is scheduled for completion in 2023.

UNDER CONSTRUCTION: The Largest Hopper Dredge in America

M

anson Construction Company, headquartered in Seattle, Wash., turned heads last fall when it announced that it would be building the largest self-propelled hopper dredge in the United States. The company, which builds ferry and cruise terminals, bridges, and so on, contracted with Keppel AmFELS to build the giant dredge, named the Frederick Paup, at its Brownsville, Texas, shipyard.

When putting our bids for the construction of the dredge, Manson had discussions with around seven shipyards.

“Ultimately, we decided that Keppel AmFELS was the best alternative for us,” says Henry Schorr, who oversees Manson’s dredging division and who has been fundamental in the design and construction process of the dredge. “We were pleased with their capability and professionalism and look forward to them delivering a superb vessel.”

At 15,000 cubic yards, the dredge— designed in collaboration with Hockema Whalen Myers Associates Inc. (also of Seattle)—has a length of 420 feet, a breadth of 81 feet and a draft of 28.5 feet.

Schorr says that once the design package was essentially complete, Manson approached the shipyards and made the decision as to which shipyard would be utilized.

“Hockema worked closely with Manson 26 Marine Log // May 2021

in the overall design of the vessel, including the review and selection of the engines,” says Schorr. The group selected Wabtec engines.

“After review of the current emissions regulations during the design process, it was determined that Tier IV engines would be required,” says Schorr. “Upon researching available technolog y and options, Manson determined that the

The dredge will be propelled by stern Z-drive units and will have two bow thrusters forward.

Wabtec engines were preferred. A large consideration in that preference was the ability to proceed without aftertreatment due to the complexities of that system.”

The dredge will be propelled by stern Z-dr ive units and w ill have two bow thrusters forward, according to Hockema.

While the dredge won’t be completed until 2023, it was able to achieve funding by a U.S. bank-led syndication. Schorr

says the total cost of the vessel will be over $100 million once completed.

“As a result of Manson’s strong financial status and long histor y w ith our banking business partners, the financing was largely just another step in our normal business practices, though certainly not easy,” says Schorr. “We are very appreciative of the support that we have received from our lenders and the bonding company.”

Back in September, the dredge’s namesake, Manson’s chairman of the board, Frederick Paup, exclaimed that the dredge is the culmination of years of work by its dedicated team. “I’m honored to bear its name,” he said. “We are proud that it will be U.S. built, U.S. flagged, and U.S. crewed, and will support the U.S. Army Corps of Engineers’ mission of keeping the marine transportation highway open throughout the United States.”

Mohamed Sahlan Bin Salleh, president of Keppel AmFELS said, “We are pleased to be selected by Manson Construction to build the largest U.S. hopper dredger. It is a testament to the capabilities of our shipyard to build a wide variety of vessels for the Jones Act market. This project will be supported by our highly skilled local workforce and suppliers across the U.S. This is our first newbuild project with Manson and we look forward to supporting them as they grow their fleet of vessels.”

Photo Credit: Manson Construction Company

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DREDGING

With a hopper capacity of 15,000 cubic yards, the dredge has a length of 420 feet, a breadth of 81 feet and a draft of 28.5 feet.

Hal Hockema, president of Hockema Whalen Myers Association sent out his congratulations to Manson and Keppel AmFELS last fall for the major hopper dredge project.

“We are gratified that Manson chose Hockema to design the Frederick Paup in conjunction with Manson’s internal engineering and operations groups,” he said. “Our longstanding relationship with Manson covers more than two decades of successful hopper dredge design and

other engineering work. Complex projects like this provide an opportunity to offer our superior engineering and client relations capabilities.

“I also want to personally thank our design team at Hockema, and especially our project managers, Craig Pomeroy and Michael Minnig, for their fine work in developing this design. Our focus at Hockema is to ensure that the Frederick Paup will be a major force in the dredging market for decades to come.”

Other Projects for Manson?

Henry Schorr oversees Manson Construction’s dredging division.

28 Marine Log // May 2021

Meantime, Manson Construction continues to work on its other projects and looks to new opportunities, including in offshore wind.

“Manson is always on the lookout for new opportunities,” Schorr says. “The most active of those at present appears to be offshore w ind. We are continually rev iew ing how Manson may best approach these potential opportunities, whether it be offshore or building landadjacent staging areas.”

Just this month, for instance, Manson was awarded a $101,430,000 firm-fixedprice task order under previously awarded multiple-award construction contract for the replacement of Pier 6 at Naval Base San Diego, Calif.

The task order contains three unexercised options that, if exercised, would increase the cumulative task order value to $105,650,000. Work will be performed in San Diego and is expected to be

completed by September 2023.

And in January, Manson was awarded a $9,847,000 firm-fixed-price contract for maintenance dredging in the Port of Alaska. Work will be performed in Anchorage, with an estimated completion date of January 26, 2022.

In late September 2020, Manson was awarded a cutterhead dredge contract by the Corps of Engineers for deepening of the Mississippi Valley River Ship Channel to 50 feet.

The overall project will provide a draft of 50-feet from the Port of Baton Rouge to the Gulf of Mexico—over 256 miles of the Mississippi River. In addition, the material dredged from the first 30 miles of the project near the mouth of the Mississippi River will restore an estimated 1,462 acres of critical marsh habitat.

These are only a few of the projects recently awarded to the company, which has been around since 1905 when it was established by an enterprising Swedish immigrant named Peter Manson.

According to the company, Manson’s innovation and imag ination allowed him to expand the size and number of his floating equipment fleet as well as the number of employees. His vision allowed the company to expand its areas of op er at ion outside of the Pacific Northwest, finding work all over North America.

In addition to its Seattle headquarters, the company has operations located in Northern and Southern California, Louisiana, and Florida.

FINANCE

Fair (Offshore) Winds for the Jones Act Finance Market

Photo Credit: Shutterstock/ Diane Diederich

U

ntil recently, the offshore drilling market had the distinction of employing the most expensive assets in the maritime industry. A decade ago, eighth generation drillships cost almost a billion dollars each to build. The winds of change, however, have been taking—metaphorically—the wind off offshore drilling and in favor of the offshore wind market.

Harvesting wind is an old art, and modern land-based energy-producing wind turbines have been a common sight both in the U.S. and overseas for almost a decade now. Harvesting wind offshore is technologically more challenging, but the rewards can be monumental.

North European countries typically seem the most determined to put the forces of nature to good use, and Scotland alone has 894 MW of installed offshore wind capacity already.

The Block Island Wind Farm in Rhode Island, with 30 MW of capacity, was until recently the only offshore wind project in the U.S. The project has been relatively close to shore and its five wind turbines were mostly a demonstration that offshore wind is a feasible prospect rather than a meaningful source of energy. However, rapid changes in the energy (and political markets) have seen that already six states expect to be able to source almost 9,100 MW from offshore wind by 2026, and broader goal of 30,000 MW by 2030. And, clearly, over the longer term the sky is literally the limit in terms of capacity to be installed and harvested.

The numbers are jaw dropping and they deservedly have drawn the attention of executives from numerous market sectors and industries associated with marine, from shipbuilders to port operators to bankers. To

meet such targets, several thousands of offshore wind turbines will have to be installed (and maintained over time), and several hundred of offshore wind vessels ranging from research vessels to Crew Transfer Vessels (CTV) and Service Operation Vessels (SOV) to the most critical Wind Turbine Installation Vessel (WTIV) will have to be built and deployed. Understandably, the excitement has not been this high in the Jones Act market since the price of oil topped $150 per barrel some time ago!

However, building infrastructure costs money, especially building infrastructure in the open sea that will be pummeled by the elements of nature day and night for decades to come. And, it’s not just the wind turbines that get more expensive as they get bigger and more efficient; the fleet of vessels that will install and serve this market will cost several billions of dollars to be built in the U.S. Getting the financing for such expensive assets will be tricky, at least, in the beginning.

Unlike the offshore drilling market that has matured over time, offshore wind is still a nascent industry, especially in the U.S., and there are teething pains to deal with before any wind farms can be up and running.

When a bank provides a shipping loan, typically it depends on decades of data that will provide it with a fair assessment of the vessel’s residual value over time, the collateral in the event of default. For now, there are effectively zero offshore wind vessels on U.S. waters, and accordingly precious few datapoints on how these types of assets will “age” over time. To further complicate future value estimates, the specification and characteristics of the proposed offshore wind

vessels can evolve quickly as the first generation starts getting employed, and practical feedback is collected from the field to be incorporated in subsequent generations.

There is substantial risk for technological obsolescence, from an appraiser’s point of view, that can make the first generations of assets to depreciate much faster than expected. And, although there are foreignflagged offshore wind vessels that have been operating for almost a decade now, it’s well known that foreign and Jones Act assets do not depreciate analogously over time.

We expect the shipping finance market to evolve over time and eventually become a fullblown market on its own right, the same way the financing for offshore drilling has matured over time. Equipment financiers and lessors and small and middle-market U.S. banks will very soon get active in the market and start offering customizable financial packages, just as they do now for inland, coastal, and the offshore marine market.

For now, at least, the financing has started more conservatively and is much more dependent on the creditworthiness of the parties involved rather than the assets as collateral. It’s only normal to start with the basics, and soon enough the competition will bring more flexibility once the market gains traction.

The first Jones Act WTIV has already been ordered at a contract price approaching $600 million—just for one vessel alone! The financing of the vessel has already been in place by a syndicate of U.S. banks, and at very competitive terms (reportedly well below 5%). And, although its financing has been arranged as a lease, the syndicate members only underwrote credit risk, with much of the operational and residual asset risk remaining with the developer.

Financing for “green” projects is a hot topic for now. We tend to believe that offshore wind is just another form of financing in the energy markets, and everything boils down to risk and returns. It will take a couple of years for the market to establish itself, but soon enough offshore wind financing will be as easily accessible, as in other segments of the Jones Act market.

BASIL M. KARATZAS

Founder Karatzas Marine Advisors & Company

May 2021 // Marine Log 29

CYBERSECURITY

The Legal Implications of Shipping’s Cyber Vulnerability such omissions could amount to recklessness giving rise to a possibility to break the right to limitation.

Indeed such failures could, in the same way that a failure to update navigational charts, amount to unseaworthiness in appropriate circumstances.

C

yberattacks are increasingly keeping shipping’s C-suite awake at night.

And rightly so.

Maritime cyberattacks have increased by 400% since February 2020, and attacks on operational technology (OT) by 900% over the past three years. Following Maersk falling innocent victim to the geopolitical NotPetya ransomware cyber-attack in 2017—which cost over £300 million in losses—there have been numerous attacks involving major shipping organizations including Mediterranean Shipping Co., Cosco Shipping Lines, Carnival, CMA CGM and even the IMO, itself.

It is clear that meeting existing IMO regulations—while important for compliance and risk awareness purposes—ultimately delivers a level one solution to a level four threat, leaving shipowners and operators increasingly exposed to attacks even if they are compliant with the regulations. This is particularly evident in relation to cyberattacks on on-shore and on-vessel OT networks and control systems, as just 42% of organizations protect their vessels from OT cyber threats. Additionally, a staggering 92% of the estimated costs arising from a cyber attacks are uninsured with access and limits of cover often restricted. Collectively, this has seismic risk management implications for ship owners and operators.

Legal Implications of Exposure In addition to the financial and reputational damage that a cyber attack can cause, it is critical that ship owners and operators 30 Marine Log // May 2021

understand that if an incident arose from their vessel being cyber-compromised, they will be forced to address real challenges in order to show the exercise of due diligence and protect themselves legally.

We can expect cargo interests and other third party claimants to bring claims against vessel owners and operators, or as defenses to claims brought against them, arguing that there was a failure to make use of cybersecurity protection systems available in the market. Discovery will be used to assess what real steps owners and operators had engaged in to ensure they were adequately protected.

The duties of due diligence are generally not delegable, so while a contractual provision ensuring that the manufacturer takes responsibility for cyber-integrity creates a potential right of recourse, this does not itself provide a defense to a claim.

In terms of a failure to have proper cyber protections in place, such fault will be directed against the actual owning entity rather than those directly responsible for the navigation, operation, and/or maintenance of the vessel. Where there are systems available on the market that can provide protection against a cyberattack, if the owner has not afforded themselves of—or conducted research in relation to the adoption and application of—such protections, they are likely to face criticism that could expose them to significant damages claims.

Further where there has been a failure to adequately check and mitigate against the level of their exposure to cyber compromise,

The combination of high profile attacks on major maritime organizations together with increasing regulation for cybersecurity is finally getting this urgent issue onto boardroom agendas. However, there is still a chasm between understanding the risks and implications on the one hand and being able to implement an effective cyber protection program on the other. Firstly, at a basic level, operators from CIOs and CTOs, to ship managers and crew, need trusted advice and training to understand what is involved in achieving compliance with MSC 428 (98) and what this means for their operations.

There are also regional and sector nuances to factor in to ensure safeguards and systems meet the requirements of bodies such as OCIMF, Rightship, Port State Control and the U.S. Coast Guard, who are now applying a heightened level of inspection and their own protocols for cyber risk management.

Finally, and perhaps most importantly, more training is needed to help operators identify and apply the measures that can fully protect their businesses—beyond the confines of the regulatory requirements, in particular the need to establish and run regular cyber attack drills.

All of this hig hlig hts the industr y requirement for an integrated, fully comprehensive approach to protecting maritime organizations against cyber threats. Our recent venture with Mission Secure (leaders in providing military grade cybersecurity for OT systems) to launch an industry-first integrated legal advisory, consultancy and technology implementation cybersecurity solution, addresses this market need by providing both advisory and action to fully help protect companies beyond the current regulatory guidelines.

JULIAN CLARK

Global Senior Partner at Ince

Photo Credit: Shutterstock/ jijomathaidesigners

Awareness to Application

NEWSMAKERS

Fagan Would Be USCG’s First Female 4-Star Admiral President Biden has nominated Vice Adm. LINDA FAGAN to serve as vice commandant of the U.S. Coast Guard. If confirmed by the Senate, Fagan would serve as the first woman to be promoted to a 4-star rank in the U.S. Coast Guard. She would serve as the 32nd Vice Commandant.

Elliott Bay Design Group has appointed ROBERT EKSE as president of the firm succeeding current President and Chief Engineer BRIAN KING, who is retiring after 33 years of service, but will remain active in EBDG projects in a limited capacity, accepting the role as Principal Emeritus.

Bordelon Marine’s President and CEO WES BORDELON recently announced two promotions. MIKE BELANGER has been promoted to chief operating officer. A 40-plus year industry veteran, he has served as general manager of the company for 15 years. CHRIS MARTIN, a 10-plus year industry veteran, has been promoted to general manager of Bordelon Marine.

American Queen Steamboat Company (AQSC) and Victory Cruise Lines (VCL), part of the Hornblower Group, have three new hires and one promotion. New hires include JOE JIFFO as vice president of sales, AQSC; GARRETT FORD as senior director of sales, VCL; and CHRISTIAN LASKAROS as director of revenue and yield, AQSC and VCL. KEVIN SMITH has been promoted to senior director of sales, AQSC.

One Magazine, The Entire Market

CHRISTIAN DEMERE has been named CEO of Colonial Group, succeeding his father, ROBERT DEMERE, JR., who had been in the position since 1986. Colonial Group has continued to operate as a privately held business since 1921, when it was founded by RAYMOND MCALLISTER DEMERE as the American Oil Company.

Underwater solutions specialist Phoenix International Holdings Inc. has promoted TROY MAGNESS to diving operations manager of its Louisiana location after the retirement of a founding member of the company, TOM BAILEY. In his new role, Magness will be responsible for overseeing offshore commercial diving activities and personnel.

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May 2021 // Marine Log 31

TECH NEWS

Feeder ship design from C-Job incorporates Ampelmann motion compensation system (seen in close-up at left).

Jones Act WTIV Feedering Made Easier?

Jones Act Feeder Ship Offshore access system provider Ampelmann and independent ship design company C-Job Naval Architects have teamed up to offer a Jones Act feeder vessel desig n that features an L-shaped superstructure. This enables the transport of all wind turbine components, including the blades, while keeping the ship itself relatively compact, minimizing construction and operational costs.

To maximize workability and allow for safe lifting of the components, the feeder vessel features a motion compensation system that uses Ampelmann’s core technology to stabilize the wind turbine components in six degrees of freedom and is designed for safe lifting operations in sea states up to 8.2foot (2.5-meter) wave heights.

The compensator is positioned close to the vessel’s center where it can compensate 32 Marine Log // May 2021

for all vessel motions and allows for continued operations—even in adverse weather conditions – throughout the year.

The w ind tur bine components are arranged on the ship with a quick-connect grip-and-glide system. Cargo pallets are placed on deck quickly thanks to the quick-connect system. Once the feeder vessel is at its destination, the system slides the components into place to connect to the motion compensator.

The Ampelmann system then compensates all vessel motions, so the crane operator can lift turbine components in a similar fashion to an onshore lift.

BM-Feeder Rotterdam, Netherlands, headquartered motion compensation specialist Barge Master BV meantime has developed the BMFeeder, a new motion compensated platform, with adjustable payload, that is designed to be placed on an offshore vessel or barge to ensure that the wind turbine components are kept completely stable for hook on and liftoff by the installation jack-up.

Barge Master has an extensive track record in motion compensation technology, with gangways, cranes, and grippers in its portfolio. The new BM-Feeder platform is based on the company’s existing BM-T700

systems, a scalable platform with a solid track record in lifting, drilling, and feedering operations.

Barge Master says that motion compensated feedering offers major benefits for the feeder operation. It enables a controlled hook on and lift off by the crane of the installation jack-up. After lift off, it decreases the risk of re-impact, by eliminating the swing and heave motion of the components.

Huisman Platform Huisman Equipment B.V., Schiedam, Netherlands, is offering a motion compensated platform to quickly and safely transfer wind turbine components from the feeder vessel to the WTIV. The platform provides a stable deck area as it actively counterbalances the effects of vessel motions. This means that transfers can be done in more severe weather conditions, significantly increasing the weather window for operations.

The motion compensated platform can be integrated into the hold of a vessel and aligned with the main deck, making it easy to skid cargo across the platform.

The dimensions and capacities of the Huisman platform are optimized for next-generation wind turbines and are designed to compensate for 5 degrees of vessel motions.

Photo Credit: C-Job/Ampelmann

THE CHALLENGES presented in transferring hefty wind turbine components off Jones Act-compliant feeder vessels and onto foreign-flag wind turbine installation vessels (WTIV) has been getting a lot of attention in the Netherlands lately. Last month, three separate and competing Dutch solutions to the problem were announced—all based on motion compensation.

TECH NEWS

Platform provides steady deck area for lifting of wind turbine components

The BM-Feeder is designed to be placed on offshore vessel or barge.

Huisman platform installed on feeder ship

Photo Credit: Barge Master, Huisman

Ecochlor Claims BWMS Breakthrough B A L L A S T WAT E R M A N AG E M E N T SYSTEM ( BWMS) specialist Ecochlor, North Haven, Conn., has launched a new system, EcoOne, that eliminates the need for the filter generally used with UV or electro-chlorination ballast water treatment systems.

The EcoOne BWMS recently completed extensive land-based testing, demonstrating compliance with the most recent, stringent U.S. Coast Guard and IMO BWMS Code standards. Real-world shipboard testing is ongoing aboard an Aframax and a VLCC and is expected to be completed in May 2021.

“By eliminating the filter, we have taken simplicity and reliability in ballasting operations to the maximum level,” says Ecochlor’s VP of Business Development Andrew Marshall, noting that the chlorine dioxide (ClO2) treatment technology used by Ecochlor has been tested extensively to ensure that it works effectively as a single pass treatment under all operating conditions with no neutralization or retreatment prior to discharge.

“Pl u s,” h e a d d s, “t h e r e a r e n o

problematic Total Residual Oxidant sensors, electrodes or complex power supplies in either the new EcoOne systems or the Ecochlor BWMS.” The use of ClO2, rather than chlorine, for the elimination of aquatic invasive species is the key difference between Ecochlor’s patented systems and others.

While chlorine (bleach) and ClO2 are both oxidizing agents, they work in fundamentally different ways. ClO2 reacts with living cells by first penetrating the bacterial cell wall and then reacting with the material within the living cell in order to kill the organism.

On the other hand, chlorine reacts with almost any organic material (living and non-living) such as oil, algae, sediments, etc. This means that waters with high levels of organic matter can increase the demand for chlorine, leaving less of the chemical available to treat living organisms; thus, requiring an increase in dose.

Chlorine also has a greater potential to form undesirable by-products in water.

ClO2 disinfectant par ticularly wellsuited as a filterles s BWMS option

since it is not affected by suspended sediments or turbidity. This means that ClO2 disinfection is effective regardless of changes in turbidity. Filtration is not necessary to remove sediments prior to treatment with ClO2, in contrast with UV or similar technologies.

With the introduc tion of EcoOne, Ecochlor now of fers three dif ferent BWMS options, all using the same core, ClO2 technology. Within all Ecochlor Systems, ClO2 is generated on demand and is not stored onboard the vessel.

To generate the ClO2, two precursor chemicals are pumped into a small mixing chamber, which then combines to automatically produce the ClO2.

An eductor then draws the ClO2 from the mixing chamber and mixes with the motive water supply to form the ClO2 solution. This solution is injected into the main ballast water stream. When ClO2 is no longer required, the treatment system is thoroughly flushed with water to remove all residue so that it is ready for the next ballast uptake.

May 2021 // Marine Log 33

MARKET PLACE ENGINEERS & ARCHITECTS

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34 Marine Log // May 2021

AD INDEX

COMPANY

PAGE #

BAE Systems

3

Blount Boats Inc.

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BMT

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Colonial Oil Industries

C4

DonJon Marine Inc.

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Glosten

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JMS Naval Architects

13

Kongsberg (KM Maritime)

5

NGL Marine LLC

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Prime Move Controls Inc.

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Schottell GmbH

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Sea Machines

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Sennebogen LLC

27

Volvo Penta of the Americas

9

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May 2021 // Marine Log 35

SAFETY FIRST

T

he use and transportation of chemi c a l s a re co m m o n p l a ce i n o u r industr y. Thoug h hig hly regulated by OSHA, USDOT, the Coast Guard (USCG), and the EPA, industries, including shipyards, in the U.S. are susceptible to hazards in the workplace involving chemical exposure to employees; causing potential fires in storage; inadvertent and accidental spills; and releases to either ground, decks, and even water—including navigable waterways, ports, and watersheds that are environmentally protected. All federally regulated agencies mandate a structured accountability system of documentation, reporting, training, and management to ensure full compliance.

However, in many cases, chemical storage of paints, solvents, lubricants, fuels, and chemicals are stored together, which may cause inadvertent mixing and incompatibility causing fires or violent reactions.

Safety Data Sheets (SDS) are critical and should be managed and updated as necessary by designated employees managing chemical programs. OSHA covers this extensively in 29CFR1200 (Hazard Communication) as well as 29CFR 106 (Flammable Liquids).

However, regulations and standards change over time, and the 29CFR 1915,17,18 Standards currently do not identify in detail how to store chemicals and flammables as its General and Construction Industrystandard counterparts.

The National Fire Protection Association (NFPA) standards robustly identify flammable hazards in its lists NFPA 30, 77, 497 regarding electrical hazard zoning, static

36 Marine Log // May 2021

potential discharge protection as well as storage of both bulk and non-bulk commodities. The USCG also has references, such as its 46CFR Subpart O (150&151) Certain Dangerous Cargoes, as well as its CHRIS Manual.

Canal Barge had an up-close and personal experience in this when we had a vapor explosion of Acetone while venting a cargo hold in preparation for cleaning a tank barge. Many factors included insufficient grounding, ordered steps unintentionally not followed, lack of supervision, etc.

What was learned was the understanding of chemical characteristics and behavior.

In any industry whether you’re managing, processing, manufacturing, recovering, or cleaning , safet y comes dow n to paying attention to detail, communication, housekeeping, preplanning, and having a respect for the product.

As listed in the SDS, the product or chemical in its pure or mixture state will give detail and handling measures. Reading instruction labels on containers, placards on tank trailers, and cargo placards on tank barges is imperative. Whether preparing coated surfaces, mixing two-part chemicals (fiberglass resin and activator), transferring chemicals from shore to vessel, always ensure workers are adequately prepared.

Ways to Ensure Safe Operations Include but Are Not Limited to: • Ensure SDS, work instructions, procedures are up to date and current; • Ensure the above is available to all workers (shipyard employees, contractors); • Conduct a Risk Assessment before conducting work or a change in a scope of work;

• Conduct an active conversation on hazards of the chemical(s) that they will be working with; • Ensure all adequate control measures are in place: Elimination, Substitution, Engineering, Administrative, PPE; • Never use chemical(s) in an enclosed location unless adequately ventilated (use intrinsic safe equipment where needed in the presence of flammable vapors • Never leave chemicals or products; • Periodically check that housekeeping measures are in place during work and post work activities; • Prioritize work and schedule by hazard on work conducted in close proximity; • Empower the workers and contractors, including visitors or vendors, to stop any unsafe work activities; • Follow all recommendations that are given by the marine chemist and the shipyard competent person, where activities may involve confined or enclosed spaces; • Conduct periodic site audits of storage areas to ensure compliance per regulates standards; and • Work with local fire prevention officers where fire departments have jurisdiction in the area.

Five years ago, I personally asked the local fire department to visit our shipyard.

Sure, the local fire inspector did its annual inspection, but the fire department itself did not have a grasp on our full operation.

So, I had invited the engine and ambulance companies, as well as the HAZMAT and Technical Rescue team leaders, to a walk-through of our facilities. We also had conducted a Tank Barge 101 program to educate their teams on the mode of transportation.

They never had realized the extent of our operations that lay within the community—a community that has two separate rail lines and major roadways and expressways where chemical traffic is heavily traveled, including a large refinery at the edge of its jurisdiction.

Relationships with agencies matter and managing chemicals matter where there is an impact on people, operations, and business.

DANIEL P. VASCIK Safety Specialist / Quality & Customer Care Canal Barge Company North / Illinois Marine Towing

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