October 2016 Marine Log by Marine Log

Have you seen the freezer longliner Blue North?

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

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OCTOBER 2016

Ballast water convention ratified Eastern Shipbuilding lands OPC contract Freezing the Jones Act

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contents

OCTOBER 2016 Vol. 121, NO. 10

27 departments 4 Editorial Ferries and fishing vessels need capital investments

6 Inland Waterways

NEW FERRIES AHEAD: New York City’s Staten Island Ferry is revving up for the addition of the Ollis Class in 2019

features 14 Ferries

27 Pacific maritime

New York city is leading the way in the latest ferry boom

A closer look at the F/V Blue North, an advanced freezer longliner that will set new standards for Pacific North commercial fishing vessels Plus: Pacific Northwest shipyards, such as All American Marine, are positioning themselves for growth

Ferry good ambitions The art of design

Elliott Bay Design Group’s John W. Waterhouse takes a look back at fifty plus years of doubleended ferry design

MARAD reboots CCF for Ro/Pax ferries

A change in the way MARAD interprets The Energy Independence and Security Act of 2007 could create some interesting financing opportunities for shipyards

24 Ferries Conference Preview

Marine Log’s Ferries Conference & Expo 2016

This year’s conference agenda includes a panel discussion with the two shipyards building the ferries for Citywide Ferry Service

Go, North!

30 Opinion

Freezing the Jones Act

Verrill Dana’s Benjamin Ford gives his take on how a temporary waiver of trade protection laws in the U.S. Arctic would be beneficial to the U.S. economy

32 Salvage

Under pressure

Classification society DNV GL gives us a closer look at its Emergency Response Service Team’s most recent case, the salvage operation of the Ro/Ro carrier Modern Express

Waterways...and its infrastructure...deliver!

8 Update • U.S. Coast Guard names Eastern Shipbuilding Group builder of the OPC program • Historic ship-to-ship LNG bunkering takes place • Zika virus has impact on maritime commerce • Ratification for BWM convention an “important step,” but... 13 inside washington Bipartisan effort focuses on security surface transit

34 Newsmakers Wärtsilä names Chief Digital Officer to develop digital strategy 35 Tech News Innovative SkyBench awarded AIP

37 Contracts Conrad Shipyards wins multiple contracts from USACE

40 Wellness Column Next evolution in safety management: A functioning human being October 2016 MARINE LOG 1

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ISSN 08970491 USPS 576-910

PRESIDENT Arthur J. McGinnis, Jr. amcginnis@sbpub.com

SCANDINAVIA SALES MANAGER Brenda Homewood brenda@aladltd.co.uk

PUBLISHER & EDITOR-IN-CHIEF John R. Snyder jsnyder@sbpub.com

FRANCE SALES MANAGER Paul Thornhill paul@aladltd.co.uk

MANAGING EDITOR Shirley Del Valle sdelvalle@sbpub.com

NATIONAL SALES DIRECTOR Jeff Sutley jsutley@sbpub.com

CONTRIBUTING EDITOR William B. Ebersold wbeber@comcast.net

REGIONAL SALES MANAGER Heather Bonato hbonato@sbpub.com

CONTRIBUTING EDITOR Paul Bartlett pbmc@gotadsl.co.uk

SALES ASSOCIATE Amy Lennox alennox@sbpub.com

WEB EDITOR Nicholas Blenkey nblenkey@sbpub.com

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

CREATIVE DIRECTOR Wendy Williams wwilliams@sbpub.com Art Director Nicole Cassano ncassano@sbpub.com Graphic Designer Aleza Leinwand aleinwand@sbpub.com MARKETING DIRECTOR Erica Hayes ehayes@sbpub.com PRODUCTION DIRECTOR Mary Conyers mconyers@sbpub.com

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CLASSIFIED SALES Jeanine Acquart jacquart@sbpub.com CONFERENCE DIRECTOR Michelle M. Zolkos mzolkos@sbpub.com CONFERENCE ASSISTANT Stephanie Rodriguez srodriguez@sbpub.com Columnists/Contributors Michael Toohey, Waterways Council, Inc. John W. Waterhouse, P.E., EBDG H. Clayton Cook, Cook Maritime Finance Benjamin E. Ford, Esq., Verrill Dana Emily Reiblein, Crowley Maritime Corp.

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2 MARINE LOG October 2016

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editorial

Ferry and fishing fleets need capital investment By the time you read this, U.S. shipyards will have submitted their bids for what could be the largest ferry construction contract in recent memory. As Managing Editor Shirley Del Valle writes this month in “Ferry Good Ambitions,” the N.Y. City DOT will build three new ferries for the Staten Island Ferry fleet starting in 2019. The cost for the three 4,500-passenger boats is expected to be over $300 million. The design of the ferries by Seattle-based naval architectural firm Elliott Bay Design Group (EBDG) will draw on the past, paying homage to the distinct lines of the beloved ferry John F. Kennedy, but incorporate thoroughly modern technologies, including EPA Tier 4 EMD engines and Voith Schneider Propellers. The first of the new Ollis Class ferries, the Staff Sgt. Michael Ollis, is named in honor of a native Staten Islander that died saving another soldier’s life in Afghanistan. EBDG, of course, has a long history of designing double-end ferries. EBDG Chief Concept Engineer John Waterhouse will be on hand at our FERRIES 2016 Conference & Expo next month in Seattle to share some of the company’s knowledge and insight. Another sector that is in need of capital investment is the U.S. North Pacific fishing fleet. One company that has taken a big step into the future is Seattle-based Blue North. This month, as part of our coverage of shipyard activity on the Pacific Coast, we profile the company’s new flagship, the Blue North, one of the most advanced freezer trawlers ever built in the U.S. or, for that matter, in the world. I was lucky enough to be given a guided tour of the boat by Chief Engineer Lee Scholl earlier this year while she was still being built

at Dakota Creek Industries. My impression? Let’s put it this way, she’s not your grandfather’s fishing vessel. Filled with high tech fishing gear, state-of-the-art bridge electronics and a diesel-electric, podded propulsion system, the Blue North is safer, greener, and more efficient than any commercial fishing vessel I’ve ever stepped on. The whole idea behind the Blue North is simple: bring the consumer the freshest, tastiest seafood possible without wasting an iota of the fish’s nutritional value all while lowering the environmental impact of vessel operations and keeping the crew safe. El Faro investigation continues It’s hard to believe that it has been a year since the tragic loss of the El Faro. The vessel sank on Oct. 1, 2015 during Hurricane Joaquin after setting sail from Jacksonville, FL, on Sept. 29, 2015 bound for San Juan, PR. All 33 souls onboard perished. The investigation into the sinking is still ongoing and the U.S. Coast Guard’s Marine Board of Investigation (MBI) expects to hold a third round of hearings this winter. That

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

would complete the fact-finding phase of the investigation and the MBI would then begin its analysis of the facts. Investigators will be listening closely to the 26 minutes of audio information on the ship’s Voyage Data Recorder recovered by the National Transportation Safety Board (NTSB) from the depths near the wreckage of the El Faro on the ocean floor in 15,000 feet of water in the Bahamas. The wreckage location was less than 10 nautical miles from the last reported position by the captain and last position from the ship security alert system. The VDR, which can contain voice recordings, speed, GPS and radar data, will be a key piece in determining the events leading up to the final moments of the ship. What could emerge out of the tragedy are safety recommendations that could relate to storm forecasting and operational decisions, stability, loading and cargo movement, maintenance, ship inspection, and ship design. Those recommendations might lead to new regulations or operational guidelines that could save the lives of mariners in the future.

Maritime Trivia Trivia Question #42: How many 1000-foot vessels ply the Great Lakes waters? The first sailor or lubber that correctly answers the Maritime Trivia question will receive a color J. Clary collector print. Email your guess to marineart@jclary.com.

September’s trivia question: What was a “Gone West” sea burial? The answer: When a Viking chief died, his body was placed in a special bier on a Viking War Boat with the steering oar lashed and the sails set so that the remains would sail toward the setting sun.

4 MARINE LOG October 2016

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Waterways ... and its Infrastructure ... Deliver! The Presidential debates are scheduled ahead (at press time), and a military forum for the candidates was held in early September. But bets can be placed that Secretary Clinton and Mr. Trump will not be grilled, or even asked, what their views are on inland waterways infrastructure, although they should be. More specifically, they should be asked why locks and dams are often not included as part of the infrastructure investment discussion. For those of us in the marine industry, this will be information of which we are keenly aware. But for the Presidential candidates, as well as those running for other offices in Congress, consider this an Inland Waterways 101 Primer. When considering transportation infrastructure in the United States, Roads, Rail and Runways are primary to the debate, with the fourth “R” for RIVERS often neglected. Inland waterways transportation of the nation’s bulk commodities—grain, petroleum and energy products, chemicals, salt, sand, gravel, and construction materials—move on the rivers in the most energy-efficient, safe, environmentally beneficial way. Barge transportation has tremendous capacity that relieves highway traffic congestion. In fact, one standard 15-barge tow of freight on the rivers equates to 1,050 trucks on our highways and 216 rail cars with six locomotives. In 2014 (latest available U.S. Army Corps of Engineers’ data), 604 million tons of commodities valued at $232 billon transited the waterways. The rivers are an economic generator and jobs creator. Beyond commercial shipping, the waterways benefit many other important facets of everyday living, from recreational boating, industrial and municipal water supply, hydropower generation, flood control, national security, and waterfront development. The water ways facilitate comp etition, par ticularly for the agriculture sector in burgeoning foreign markets. In 2014, for example, 73 percent of the volume of U.S. agricultural exports and 65 percent of imports were transported via our waterways. Having access to competitive barge transportation helps to discipline rates for other modes of transportation, an important 6 MARINE LOG October 2016

factor given depressed agricultural commodity values of late. The United States exports nearly one-quarter of the grain it produces. When it comes time to moving these crucial commodities to export grain elevators, barges account for transporting 61 percent of corn, 42 percent of soybeans, 40 percent of wheat and 26 percent of sorghum. These exports and other navigation activity support more than a half-million U.S. jobs. A large number of navigation locks were constructed in the 1930s under the New Deal of President Franklin D. Roosevelt and require infrastructure recapitalization. More than 67 percent of the locks on the inland system have exceeded their economic design life of 50 years. Eight billion dollars ($8 billion) would modernize between 15 and 20 priority locks on the system for two decades, and could generate more than $1 billion in new income annually in states like Pennsylvania, Ohio, West Virginia, Illinois, Iowa, Kentucky, and Missouri to name just a few. By comparison, the price tag to reauthorize the highway program for just one year was more than $100 billion. There are 12,000 miles of navigable inland waterways and 239 locks and dams that are operated and maintained by the U.S. Army Corps of Engineers (Corps). The Corps— with the help of building trade groups and contractors—builds and manages the domestic waterways system through its Civil Works Mission which has been woefully underfunded, seeing increasing funding levels only over the last three fiscal years. New lock construction and major rehabilitation for the inland waterways is funded from a dedicated Inland Waterways Trust Fund, by which 29-cents-per-gallon of fuel consumed during commercial operations is paid solely by commercial operators into the Trust Fund and matched by Federal Treasury dollars. Operations and Maintenance (O&M) of the waterways has always been funded by the Federal Treasury in recognition of the many other beneficiaries of the waterways who do not pay into the Trust Fund. As a way to increase investment in the waterways and into the Inland Waterways Trust Fund, the navigation industry

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

successfully urged a 45 percent increase to its diesel fuel tax that was passed in December 2014. This, in addition to higher appropriations over the last three fiscal years, higher funding from the Harbor Maintenance Trust Fund for port maintenance, and strong policy changes in water resources legislation (Water Resources Reform and Development Act (WRRDA) of 2014 and the Water Resources Development Act of 2016, ready to be voted on in the Senate at press time) has resulted in a stronger, more reliable inland waterways transportation supply chain but one that still needs to be included as a key player in transportation infrastructure funding and debate. The U.S. Department of Transportation estimates that 14 billion tons of additional freight will be transported within the U.S. by the year 2040, with 10 percent of it moving by water (an additional 1.4 million tons). Meanwhile, our already-stressed roads and rails are predicted to account for 77 percent of that increased freight. Our inland river system has the potential to be a solution to our growing intermodal transportation challenges in the near future. The freight projections ahead, plus the promise of the newly expanded Panama Canal, underscores the critical needs of ALL of our nation’s transportation systems -road, rail, runway and RIVERS, the four “Rs.” Ironically, while not the same “Rs,” President Franklin D. Roosevelt understood the three Rs for Relief, Recovery and Reform and incorporated them into his “New Deal,” the series of programs enacted in the United States between1933-1938 aimed at stabilizing the economy and providing jobs after the Great Depression. Public works programs and infrastructure improvement were a large part of that program and lay the foundation for an economy that could grow and thrive. In November, America will choose its next President as well new Members of Congress. It is the Waterways Council’s hope that new freight logistics and supply chain champions will be among those elected and will be able to lead the country forward with transportation solutions that surely include the inland waterways. We know that waterways are worth the investment and that they Deliver! www.waterwayscouncil.org

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UPDATE biz notes Car carriers merger

HUGE WIN U.S. Coast Guard names Eastern Shipbuilding Group builder of OPC program The highly anticipated Coast Guard Offshore Patrol Cutter (OPC) finally has a builder—Eastern Shipbuilding. The Panama City, FL, shipyard was named the winner of the contract to build the OPC series last month. The agency plans to build up to 25 OPCs for its fleet. The initial award is valued at $110.29 million for the first—but, should all options be exercised, the contract’s value could go beyond the $10 billion mark. The vessels will be based on the VARD 7 110 design by Vard Group’s North American ship design and marine engineering subsidiary, Vard Marine. The OPC will measure 360 ft x 54 ft x 17 ft and have sustained speeds of 22.5 knots. The OPCs will bridge the gap between the Coast Guard’s fast response cutters,

which operate closer to shore, and the 418 ft National Security Cutters, which patrol in open-ocean. Additionally, the new vessel series will replace the agency’s aging medium endurance cutters—the 270 ft cutters are between 25 to 50 years old. The ships will have a range of 10,200 nautical miles, at 14 knots, and endurance for 60-day patrol cycles. Its mission will be to conduct law enforcement, drug and migrant interdiction search and rescue, and other homeland security and defense operations. Each w ill feature a flight deck and advanced command, control, communications, computers, intelligence, surveillance and reconnaissance equipment. Delivery of the first OPC is planned for 2021.

Two car carrier giants, Wilhelmsen (Wilh. Wilhelmsen Holding ASA and Wilh. Wilhelmsen ASA) and Wallenius (Rederi AB Soya and Wallenius Lines AB) have signed a letter of intent to establish a new ownership structure for their jointly owned investments. The new entity, Wallenius Wilhelmsen Logistics ASA, will form a more efficient management structure and enable further synergies between the joint ventures. “The markets in which the jointly owned entities operate are going through rapid change and require a more agile and efficient business model,” says Eyvin Wang, President and CEO of Wilh. Wilhelmsen ASA. Under the agreement, assets will be combined, with entities Wallenius Wilhelmsen Logistics (100%), EUKOR Car Car r iers (80%) and Am er i c a n Ro l l - on Ro l l - of f Ca rrier (100%) jointly owned under the new entity. O n ce t h e m e r g e r i s co m p l e te , Wilh. Wilhelmsen Holding ASA and Wallenius Lines AB will have equal ownership in the new entity and plan to own approximately 40% each. The final terms and ownership level will be confirmed with the announcement of the final agreement by the end of the year. CEO and President of EUKOR Car Carriers, Craig Jasienski, will be appointed CEO of the new entity.

Kirby Inland Marine to pay millions in spill settlement Kirby Inland Marine L.P. has agreed to pay $4.9 million in Clean Water Act civil penalties and to implement fleet-wide operational improvements to settle claims stemming from a 4,000 – barrel (168,000 gallon) oil spill in the Houston Ship Channel. The spill occurred on March 22, 2014 when the Miss Susan, a Kirby towboat was pushing two 300-foot oil barges in the “Texas City Y” area of the Houston Ship Channel in fog conditions. According to the Department of Justice, despite being aware of the nearby presence of a 585 ft bulk cargo ship, the Summer Wind, traveling up the Houston Ship Channel, Kirby’s towboat and barges attempted to cross the channel ahead of the cargo ship. 8 MARINE LOG October 2016

This action resulted in the cargo ship striking the lead oil barge, leading to the spill of 4,000 barrels of heavy marine fuel oil into the waterway. In addition to the payment of civil penalties, Kirby has committed to improve its operations across its entire fleet. To that end, the operator will install enhanced navigational equipment on all of its vessels, provide employee training on the new and enhanced equipment, provide additional navigational skills training, including a simulator-based exercise involving a Texas City Y scenario and improved operational practices such as entering complete tow dimensions in each vessel’s automatic identification systems before embarking on every transit.

Beyond that, as part of the settlement, Kirby has also agreed to waive any limits on its liability under the Oil Pollution Act related to the incident. “This settlement sends a clear message that vessel owners and operators have a responsibility to protect our waters, people and the environment from oil spills and those who violate that duty will be held accountable under the law,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The remedial measures in this agreement will upgrade navigational equipment, provide employee training, and improve operational practices across an entire fleet of vessels.”

Inland • Coastal • Offshore • Deepsea

Historic ship-to-ship LNG bunkering takes place Last month, the first ship-to-ship LNG bunkering took place at the Port of Gothenburg, Sweden. Bunkering took place at a protected location just off the island of Fotö at the entrance to the port. The newly constructed tanker, the M/T Ternsund, operated by Terntank Ship Management AB, bunkered LNG from Dutch bunkering vessel Coral Energy. The natural gas came from the North Sea and was supplied by Skangas. The event marks a milestone in the Port of Gothenburg’s green operations. The port is one of the first to introduce safety instructions on the ship-to-ship bunkering. “We have worked resolutely for a long time to create a situation where a ship could bunker liquefied natural gas in Gothenburg,” said Jill Söderwall, Vice President and head of commercial operations at the Energy Port in Gothenburg. “We have now managed to achieve our ambition and we are extremely pleased with the outcome.” Claes Möller, Fleet Manager at Terntank Ship Management AB, says the bunkering event marks a new era for the company and positions it at the forefront of greener transport. “It heralds the beginning of a new era of more modern and considerably cleaner shipping. By opting for LNG,

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we will more than meet present and future environmental requirements.” The Port of Gothenburg expects for additional LNG bunkering to take place in the near future. Several newly built LNG-fueled vessels, all owned by Swedish tanker operators, will pass through Gothenburg. To further entice operators to make the switch to LNG, the port is offering a substantial discount on the port charge. The M/T Ternsund, for example, received the maximum discount of 30%. C

Port of Gothenburg

Zika virus has impact on maritime commerce With the U.S. added to the list of countries affected by the Zika virus, U.S.-based vessel operators may be required to disinfect their vessels and cargo before arriving at international ports. This past August, the World Health Organization (WHO) added the U.S. to the list of countries impacted by the Zika virus as a result of the local transmission of the virus in Florida. The U.S. Maritime Administration (MarAd) warns that this means “some countries may require disinfection (mosquito eradication) of vessels and/or cargo arriving from the United States.” MarAd encourages vessel operators to check foreign disinfection requirements, as well as contact managing agents in foreign ports for information on local requirements. The U.S. Department of Agriculture (USDA) reports that on August 19, Chinese authorities began requiring mosquito disinfection for all U.S.-origin shipments to China. Disinfection means killing live mosquitoes, their larva and eggs. As of August 5, 40 other countries, including Brazil and Mexico, were subject to this requirement. Chinese authorities will require all cargo

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shipments originating in the U.S. to provide proof of disinfection upon arrival at the Chinese port. The USDA says that treatment can be carried out at any point during the shipping process. Containers, for example, can be disinfected before loading, certified mosquito free, then loaded in a mosquitofree environment. Back in February, the U.S. Coast Guard had issued a Marine Safety Information Bulletin earlier regarding precautions for crew members and protection against the Zika virus. Vessel operators should report suspected cases. The virus can be transmitted via mosquito bite or spread via blood transfusion, sexual contact, and from mother to child in the womb. Most of those who get the Zika virus will not show symptoms, which may include fever, rash, joint pain, conjunctivitis, and muscle pain or headache. An additional resource for industry is “Zika Virus – Staying Safe,” a video produced by training and e-learning provider Videotel, a KVH company, with the help of the International Maritime Health Association (IMHA) and a panel of medical experts. K

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October 2016 MARINE LOG 9

UPDATE Ratification for BWM Convention an “important step,” but… IMO Type Approval and Alternative Management System (AMS) acceptance from the USCG. Hyde Marine plans to redo its testing under the DNV-GL Independent Laboratory starting in February 2017 to meet the stain test requirements. “We expect to finish this testing by the summer of 2017,” Riggio says. USCG enforcing U.S. regulations The ratification of the convention, however, won’t change the Coast Guard’s approach towards enforcing U.S. BWM regulations. Ships operating in U.S. waters must comply with U.S. requirements. “Ships equipped with a Coast Guard approved Alternative Management System (AMS) will remain in compliance with U.S. regulation until 5 years after the compliance date (for an individual ship) is set. Compliance dates will be determined on a vessel-by-vessel basis after Coast Guard type approved ballast water treatment systems are commercially available. After 5 years, the AMS must either achieve Coast Guard type-approval, or be replaced with a type-approved system.” BW system manufacturers Optimarin, Alfa Laval, and OceanSaver all applied last month for USCG type approval for their systems.

“In the meantime, the Coast Guard continues to work with the IMO to harmonize the international testing procedures within the BWM Convention, known as the G8 Guidelines, with U.S. type-approval processes,” writes RADM Thomas. “The IMO type-approval guidelines are currently under review, and recommendations for revisions are being developed for the Marine Environmental Protection Committee (MEPC 70) meeting this month.” Trojan Marinex is watching the harmonization process closely. Trojan’s Bob McKinley says the USCG rejected its application for use of the MPN method as equivalent to the vital stain method and simultaneously the company’s Type Approval application. McKinlay feels, however, that things could change. “As the IMO reaffirms its definitions and testing protocols in the next few months, the objective scientific evidence and international support for the MPN method will become increasingly apparent and as such we anticipate that the Coast Guard will, with appropriate guidance from U.S. Congress, also soon apply standards and test protocols that facilitate Type Approval of eco-friendly UVbased ballast water treatment systems.”

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In a blog post last month, RADM Paul Thomas, Assistant Commandant for Prevention Policy, U.S. Coast Guard, called the ratification of the IMO Ballast Water Management Convention (BWM Convention) “an important step forward in controlling invasive species spread by ballast water and meeting the challenge of reducing the environmental footprint of international shipping.” The BWM Convention will enter into force on Sept. 8, 2017, meaning that vessels greater than 400 gross tons operating outside of the U.S. will be required to manage ballast water by either installing a ballast water treatment system (BWTS) or performing ballast water exchange (BWE). All vessels must also maintain a ballast water management plan and record book for port state control authorities. How many ships will be impacted? “According to the latest estimates of the International Association of Classification Societies, about 8,000 ships have been ‘fitted’ with systems, but only about 2,000 of those systems have been commissioned,” says Hyde Marine’s Senior Market Manager Mark Riggio. He estimates between 57,000 and 63,000 ships still need to be fitted with a working BWTS. Hyde Marine Guardian BWTS has received

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Inland • Coastal • Offshore • Deepsea

World’s first LNG-fueled icebreaker is delivered by Arctech Helsinki Shipyard

While the U.S. is still years away from building a new heavy icebreaker for its fleet, the Finnish Transport Agency recently

took delivery of its most powerful icebreaker—and the world’s first LNG fueled icebreaker—the Polaris. Built by Arctech Helsinki Shipyard, the 110 m x 24.4. m Polaris is designed to serve for at least 50 years in icebreaking, oil recovery and sea rescue operations. The vessel will be capable of moving continuously through 1.6 meters of thick level ice, and to break a 25-meter wide channel in 1.2 meter thick ice at a speed of 6 knots. Finnish state-owned company Arctia Icebreaking Oy, which operates a fleet of icebreakers, including the Fennica and Nordica,

will operate the Polaris. The 9,300 grt Polaris is classed Ice Class PC4 by Lloyd’s Register. It complies with the IMO Tier III emission standards and Baltic Sea Sulfur Emission Control Area (SECA). Its equipped with three ABB Azipod propulsion units, two 6,500 kW units in the stern and one 6,000 kW unit in the bow. Its dieselelectric propulsion system is made up of two Wärtsilä 6,000 kW engines and one 1,280 kW dual fuel engine. The two LNG tanks have a capacity for 400 m3 each. It will be able to travel at a speed of up to 17 knots and can break 1.8 m of ice at speeds of 3.5 knots.

American Maritime Safety announces 2016 AMS awards recipients American Maritime Safety, Inc. has named Liberty Maritime Corp., McAllister Towing, Andrie, Inc., and Foss Maritime as the recipients of the 2016 AMS Safety Awards. The American Maritime Safety, Inc. (AMS) consortium is made up of more than 400 vessel owners and operators and is an industry association specializing in regulatory compliance in the U.S. Every year, the AMS Safety Advisory Committee recognizes member companies

for their proactive efforts and dedication to preserving the marine environment and promoting safe vessel navigation, operation and maritime work practices. Liberty Maritime Corp. will receive the Quality Ship Management Award, recognizing its implementation of ISM Quality Control Systems. McAllister Towing will receive the Tug and Barge Safety Award, recognizing its outstanding compliance programs.

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Andrie Inc. will receive the Safe Working Practices Award, acknowledging the implementation of safe working practices for vessel personnel that serve to promote the safe navigation and operation of vessels. And Foss Maritime was named the recipient of the American Maritime Safety Award. The award is given to a company that effectively implements a drug and alcohol awareness program for crew that perform safety sensitive functions on vessels.

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October 2016 MARINE LOG 11

UPDATE

POWER THROUGH

“Live from SMM” podcast series: Get the buzz from the show floor With the shipping market confronted with a number of economic and regulatory challenges, Marine Log conducted a series of “Live from SMM” podcast interviews at SMM 2016 with some key thought leaders. Below are the topics. You can visit marinelog.com to listen to the series. Operators need to adapt to changing environment Aaron Bresnahan, Managing Director, Wärtsilä North America Inc. discusses the concept of future proof shipping.

F/V Insatiable by Fred Wahl Marine

WinGD discusses environmental challenges Rolf Stiefel, Vice President of Sales & Marketing, Winterthur Gas & Diesel (WinGD) discusses how shipping can meet increasing environmental challenges. What will the ship of the future look like? Riku-Pekka Hägg, Vice President, Ship Design, Wärtsilä Marine Solutions, provides us with a window into the future of ship design. Viking Life-Saving aims at total safety service Benny Carlsen, SVP Global Sales at Viking Live Saving Equipment talks streamlining procurement of safety equipment. Reintjes unveils new down angle gearbox Klaus Deleroi, Managing Director, Reintjes Power Train Solutions discusses the company’s new WVSA Down Angle gearbox series. Trojan focuses on compact BWT solutions Andrew Daley, Product Specialist, Trojan Marinex talks about how ship operators can comply with both IMO and USCG regulations.

Northern Lights commercial generator sets ensure that you can power through anything the sea throws at you.

Octopus provides easy access to vital ship info Mikko Lepisto, Senior VP, PG Vessel Information and Control, BU Marine and Ports, ABB, discusses how Octopus Voyage & Energy Management suite helps ship operators to improve energy efficiency. Increasing digitalization for ships Maik Stoevhase, Senior Vice President of Automation, Navigation, and Communication, Wärtsilä Marine Solutions, provides some insight into the development of smarter ships. “Chicken and egg” dilemma for LNG-fueled ships Timo Koponen, VP of Flow and Gas Solutions at Wärtsilä, talks about the hurdles to adoption of LNG as a marine fuel.

MARINE GENERATORS

Big data changes business model Unlocking big data is a key to making shipping more efficient. Radio Holland CEO Paul Smulders talks about the changing business model for ship owners.

M40C3 40kW @1800 RPM

1 . 8 0 0 .7 6 2 . 0 1 6 5 w w w. n o r t h e r n - l i g h t s . c o m 12 MARINE LOG October 2016

A1325

The future of cylinder oil lubrication Iain White, Global Marketing Manager, Marine Fuels and Lubricants for ExxonMobil, discusses the complexities of cylinder oil lubrication. New Azipod XL improves propulsion efficiency ABB’s Jukka Varis, VP Technology and Business Development discusses the advantages of the new Azipod XL, Linear Flow Propulsor Azipod.

inside washington

Bipartisan effort focuses on securing surface transit In the wake of the recent bombings in New York and New Jersey and rail attacks in Europe, U.S. Senators from both sides of aisle focused last month on the vulnerability of road, rail and maritime transportation to terrorist attacks. The result is the introduction of S. 3379, “The Surface Transportation and Maritime Security Act.” The legislation was introduced by Senator John Thune (R-SD), Chairman of the Senate Committee on Commerce, Science and Transportation, and Senator Bill Nelson (D-FL), Ranking Member of the committee. They were joined by fellow Senators Deb Fischer (R-NE) and Cory Booker (D-NJ), who serve as the Chairman and Ranking Member of the Subcommittee on Surface Transportation and Merchant Marine Infrastructure, Safety and Security. In particular, the bill focuses on deficiencies in the Transportation Security Administration’s (TSA) efforts to protect rail, transit, highway, and maritime passenger and freight transportation. A recent report by the Department of Homeland (DHS) Office of Inspector General found

that the “TSA lacks an intelligence-driven, risk-based security strategy that informs security and resource decisions across all transportation modes. The TSA’s publicized ‘intelligence driven, risk-based approach’ was designed for the aviation mode and chiefly for air passenger screening.” Senator Nelson says, “As we’ve seen recently, train and subway stations aren’t immune to terrorist attacks. Despite this, the majority of TSA activities focus on security at airports. This bill, says the TSA, should take into account all types of transportation when it comes to security and provides the agency with some tools needed to get it done.” Echoing Senator Nelson’s concerns, Senator Booker says, “This comprehensive bill helps close the gaps in the TSA’s handling of maritime and rail security by reforming worker screening procedures, increasing the number of bomb-sniffing dogs in use, improving data collection, and prioritizing TSA’s efforts at facilities facing the greatest risk.” S. 3379 will require the TSA administrator

to conduct a risk analysis and implement a risk-based security model for surface transportation facilities. It will also mandate risk-based budgeting for surface transportation security focusing resources on current threats with annual reviews of program effectiveness. As for resources, the bill authorizes as many as 70 additional canine bomb-detection teams to work in surface transportation security as soon as possible. The legislation also requires a review of the number, location, and use of canine teams in surface transportation security to ensure effective use. Following this review and the implementation of recommendations, the TSA may then raise the total number of canine teams to 200 above the number currently in place. It will also require the TSA to address gaps and improve the screening of maritime workers, and mandates a comprehensive third party assessment of the Transportation Worker Identification Credential (TWIC) program and a corrective action plan to address deficiencies.

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October 2016 MARINE LOG 13

FERRIES

Ferry Good Ambitions Increased passenger demand leads to ferry boom

14 MARINE LOG October 2016

The new Ollis Class will be double-ended and have capacity for 4,500 passengers; and like the Kennedy, it will feature plenty of open air space. The ferries will be built to ABS class requirements and will be powered by Tier 4 EMD engines and Voith Schneider Propulsion Drives. The first of the three ferries will be named in honor of U.S. Army Staff Sgt. Michael Ollis, a native Staten Islander who died while saving another soldier in Afghanistan. He was only 24 years old. The Staff Sgt. Michael Ollis ferry is expected to begin operations in 2019, with vessels two and three following later in 2019 and 2020.

Building The Ollis Class As we were going to press, yards were putting in their final bids for the ferry project. Among the yards that have expressed interest in building the Ollis Class are Conrad Shipyard, Eastern Shipbuilding Group, Fincantieri Bay Shipbuilding, and Vigor. Conrad Shipyard—which has won a number of newbuild contracts this year, including several barge contracts from the U.S. Army Corps of Engineers—has had its share of ferry projects in the past, and is looking to keep the momentum going. As Dan Conrad, Conrad Shipyard’s Senior Vice President and Director, explains, “Conrad Shipyard has a great track record on deliveries to the Puerto Rico Maritime Authority, the Texas Department of Transportation, the State of North Carolina and the Alaska Marine Highway, among others.” And he assures that his team is committed to pursuing the ferry market for years to come. Most recently, Conrad’s Conrad Aluminum, Amelia, LA, yard delivered the M/V Woods Hole to the Steamship Authority. The 235 ft x 64 ft ferry was designed by Elliott Bay Design Group and has capacity for 384 passengers, 55 automobiles or 10 eighteen-wheel tractor-trailers. Eastern Shipbuilding Group is said to have the inside track on

shutterstock/Albert Pego

onsidered the “forgotten borough” by some New Yorkers, Staten Island is on the verge of making its presence known in the city that never sleeps. The borough is a 25-minute ferry ride from the lowest tip in Manhattan, the Staten Island Ferry terminal at Whitehall. Staten Island’s plan for renewal includes a $1.2 billion investment that will see the construction of the New York Wheel at St. George— an impressive 630 ft tall observation wheel that will rival England’s infamous London Eye, and feature 36 pods with accommodations for 40 in each, on a 38 minute ride/revolution, giving passengers a spectacular view of New York Harbor. Alongside the New York Wheel, New York City’s first outlet mall, Empire Outlets, is currently being constructed at St. George. The mall will feature 350,000 square feet of retail, 100 different shops and a 190-room hotel. Both the New York Wheel and Empire Outlets are expected to be operational by 2018. How will tourist, potential shoppers, and New Yorkers alike make their way to these new attractions? They’ll be taking the Staten Island Ferry of course. The fleet, currently comprised of nine ferries, carries 22 million passengers a year—second only to Washington State Ferries’ fleet which carries over 23 million passengers annually. And come 2019, the Staten Island Ferry fleet will welcome a new class to its fleet—the Ollis Class ferries. Designed by Seattle-based Elliott Bay Design Group, the Ollis Class will mix the new with a bit of the old, providing passengers with a faster, more efficient ride to help meet increased ridership demand. Its design will give the 320 ft x 70 ft ferries a striking resemblance to the beloved John F. Kennedy—which was commissioned in 1965 and is one of the oldest ferries in the Staten Island Ferry fleet. The Kennedy is one of three that will be retired once the new Ollis Class series is delivered—the S.I. Newhouse and Andrew J. Barberi, both commissioned in 1981, are the other two.

By Shirley Del Valle, Managing Editor

FERRIES for completion in 2018, with operations set to begin in 2019. The 144-car ferries are the result of a combined effort from a consortium of Northwest based companies, including Nichols Brothers Boat Builders, Freeland, WA, which has been in charge of building the superstructures for the144-car ferries. In other Vigor ferry news, Vigor’s Ballard Facility (formerly Kvichak Marine) is building two 400 passenger ferries for the Water Emergency Transportation Authority of San Francisco (WETA). The Incat Crowther designed ferries will travel 27 knots and are scheduled for delivery Summer 2017. And Vigor’s Ketchikan yard in Alaska has taken up the task of constructing the highly anticipated 280 ft Day Boat ferries for the Alaska Marine Highway System. The ferries, designed by Elliott Bay Design Group, are scheduled to be completed Fall 2018. Vigor’s Executive VP of Business Development, Keith Whittemore, will be discussing Vigor’s ferry projects and more at the Marine Log Ferries Conference & Expo November 3 & 4, 2016, Seattle, WA. Attendees of the event will also have the chance to tour Vigor’s Harbor Island yard after the conference’s conclusion. Learn more at www.marinelog.com/events The New York City DOT will retire the Newhouse Class ferries from the Staten Island ferry fleet once all the Ollis class boats are delivered

building the Ollis Class ferries, according to our sources. It would be quite a month for the Panama City, FL-based shipyard, which secured the lucrative contract to build the OPC for the U.S. Coast Guard. Meanwhile, Fincantieri’s recent expansion is helping it position its Bay Shipbuilding yard for larger projects that can be produced and worked on, year-round. The three-acre expansion will pave the way for additional covered fabrication and erection facilities, an indoor paint and coating building, and outfitting shop that will enable FBS to increase its pursuit of ferry projects. “This expansion allows us to increase our capacity and positions us to pursue a number of new construction markets, including large passenger ferries,” said FBS Vice President and General Manager Todd Thayse. “Our experience in building ferries and other complex passenger vessels dates back to our origins almost a hundred years ago, and includes the New York Staten Island Ferry now operating (the Guy V. Molinari). We have the people, the experience, the facilities, and the global resources of Fincantieri to ensure that we can tackle the most challenging construction projects.” As for the shipbuilding powerhouse in the Northwest, Vigor, it’s currently working on six ferry projects at the moment, including the final two vessels in Washington State Ferries’ new 144-car Olympic Class. “Vigor has deep expertise in the ferry market with successful, on-time and on-budget deliveries of car ferries, passenger only vessels and catamarans. Six ferries are currently under construction at our Washington and Alaska yards and we expect ferry construction to continue to be a focus in our business development efforts, leveraging our considerable experience,” says Corey Yraguen, Vigor Executive VP of Fabrication. Just last month the Chimacum, the third in the Olympic Class series was christened at Vigor’s Harbor Island yard. The fourth vessel in the series, the Suquamish, is currently under construction and scheduled

New York’s Ferry Boom Of course, the Staten Island Ferry isn’t the only New York City ferry operation making waves. Operated by Hornblower NY, Citywide Ferry Service’s new fleet of ferries are currently under construction at Louisiana-based Metal Shark Boats and Alabama’s Horizon Shipbuilding. The contract catapults both yards into new markets—propelling Metal Shark into the commercial market in a very big way, and introducing Horizon to the ferry market. A large portion of the Incat Crowther-designed ferries are expected to be delivered in time for Citywide Ferry Service’s launch Summer 2017. The service, according to the New York City Economic Development Corporation is projected to make 4.6 million trips annually. The 85 ft ferries will have capacity for 150 passengers, as well as space for bikes, strollers and wheelchairs. The Citywide Ferry Service is expected to add five new routes on the East River. Meanwhile, another well-known ferry operator in New York harbor is upping its stake in the market. Seastreak says its “raising the bar in fast passenger ferry service” with the addition of a new, high-speed, 600-passenger, catamaran in 2017. The ferry will be the highest passenger capacity USCG K-class high speed ferry in the U.S. The addition of the new ferry will help Seastreak meet growing passenger demand on the New Jersey to New York route. Designed by Incat Crowther, the ferry, the first in Seastreak’s new Commodore class, will be 147 ft 8 in x 39 ft 5 in. The vessel was designed to provide Seastreak with an operational advantage. The

Catamaran hull section of a Citywide Ferry vessel as seen at Metal Shark Boats

October 2016 MARINE LOG 15

FERRIES ferry’s boarding arrangement will include large forward and aft side gates as well as an adjustable bow ramp. This will help facilitate turnaround times at terminals. The first vessel in the series will be built at Gulf Craft Shipyard, Franklin, LA. Construction is to be completed by 3rd quarter 2017. Meanwhile, Seastreak expects a keel to be laid for a second Commodore class vessel before the end of 2016. The Commodore Class ferry will be powered by four MTU 12V4000 M64 EPA Tier III main engines, each delivering 1,875 hp at 1,800 rev/ min and driving Rolls-Royce KaMeWa 63S4 waterjets. The ferry’s main deck will hold 234 passengers, mid deck will seat 271 passengers inside and 52 passengers outside, and the third deck features 160 exterior seats as well as the vessel’s wheelhouse. Seastreak is also initiating the upgrades and repowering of several members of its current operating fleet. First one up will be the Seastreak New York, which is expected to enter into drydock this coming winter. At press time, the bids were out to multiple yards. The repowering project is expected to be completed by the end of the 1st quarter 2017.

Florida Gets In The Game New York isn’t the only city getting its ferry action on. This month, service officially begins on the Cross-Bay Ferry system—connecting St. Petersburg and Tampa, Fl. The service is part of a pilot project intended to introduce residents and visitors to water transit services in the area. The route will be operated by the 98 ft twin-hull aluminum catamaran Provincetown IV. The ferry was originally built for Bay State Cruise Company, Boston, MA, by Gladding-Hearn Shipbuilding, Duclos Corporation, Somerset, MA. Designed by Incat Crowther, the 149-passenger ferry can operate at a top speed of up to 30 knots on the 50 minute route. “We only have one vessel, and one crew, so we cannot do everything, but we do mean to showcase this technology to a lot of people and test ferry service in a variety of ways and markets,” says Ed Turanchik, policy advisor for the project.

Vdot Accepts Ferry Bids Last month, the Virginia Department of Transportation was accepting bids for a new 70-vehicle ferry based on a design by Alion Science. The boat would be a replacement for the VDOT’s oldest ferry, the Virginia, built in 1936. Construction on the steel-hull ferry is to start this fall with completion in 2018.

Gladding Hearn Delivers High-Speed Ferry Gladding-Hearn Shipbuilding, Duclos Corporation, recently delivered a new 493 –passenger, high-speed Incat Crowther designed ferry to Hy-Line Cruises, a division of Hyannis Harbor Tours, Inc., Hyannis, MA. The all-aluminum ferry is 153.5 ft x 35.5 ft and is powered by four Cummins QSK60-M, EPA Tier 3 diesel engines each delivering 2,200 bhp at 1,800 rev/min. Each engine will power a Hamilton HM721 waterjet through a Twin Disc MG61500SC horizontally-offset gearbox. Incat Crowther says the ferry represents an evolutionary step from its previous designs built by Gladding-Hearn. According to the designer, the capacity increase had to fit within docking constraints, enforcing upper limits on both the length and beam of the vessel. To meet the requirements, it moved the wheelhouse to a third deck, freeing up the front end of the second deck for VIP passengers. The restructuring shifted boarding arrangements, with the addition of a middeck boarding door and both forward and aft stairways, improving passenger flow and turnaround times, says Incat. 16 MARINE LOG October 2016

The Damen Water Bus is the first vessel for public transportation produced at Damen Shipyards

The ferry will provide year-round service between Hyannis and Nantucket Island. It will top speeds of over 34 knots when fully loaded at a deadweight of more than 64 tonnes, said Peter Duclos, President of Gladding-Hearn. The new ferry is also outfitted with a Naiad Dynamic trim-tab, ridecontrol system to help improve passenger comfort and safety. The system’s motion sensor measures the relative movement of the vessel and transmits a signal to the hydraulic device to counter the boat’s actions through the waves.

Europe’s Ferry Market The European ferry market remains in the forefront of technology. The continent that gave the world emission-free, battery operated ferries, will now give forth, the world’s largest hybrid ferry. Just last month, Norway’s Color Line reported that it would order the largest hybrid ferry ever built. The ferry, which will feature batteries charged via green electricity from dedicated shore side facilities, or recharged on onboard via the ship’s generators, would double the capacity of the vessel it will replace. Tentatively named the “Color Hybrid,” the ferry will be 160 m long and have capacity for 2,000 passengers and up to 500 cars. The ferry is expected to be put into service on the Sandefjord, Norway to Stromstad, Sweden route in 2020. And not to be outdone, Damen says its ready to launch its first composites-construction Water Bus. As we were going to press, the prototype was prepping to begin sea trials. The Damen Water Bus is the first vessel for public transportation produced at Damen Shipyards, Antalya, Turkey. Its benefits are plentiful—the vessel, which features a slender hull, making it lighter than a traditional aluminum vessel, requires less fuel consumption, less maintenance, will suffer from no corrosion or fatigue problems. It can travel at speeds up to 21 knots and has capacity for 100 passengers. Damen’s Design & Proposal Engineer, Fast Ferries, Marcel Elenbaas, explains that the Water Bus is built using high quality vacuum infusion technology that creates a “difficult to penetrate closed cell, epoxy sandwich structure.” Damen says the vessel is ideal for highly congested urban areas, and is a simple and efficient way for using a city’s natural waterways system. The Water Bus is equipped with two forward facing, double-screw podded propulsion units—helping to reduce vibrations. Damen says the vessel can be easily adapted to customer specifications, and because of the nature of the composites’ production process, delivery to clients will be quick. ■

FERRIES

Double-ended ferries, such as the Chetzemoka, reduce maneuvering time, fuel consumption, and risk on short routes

The art of design

Fifty Plus Years of Double-Ended Ferry Design

By John W. Waterhouse, P.E., Chief Concept Engineer, Elliott Bay Design Group

Photo Courtesy of WSDOT/WSF

“L

egally, a ferry is the continuation or prolongation of a highway over a navigable stream.” This quote is from the first Transactions of the Society of Naval Architects and Marine Engineers (SNAME), published in 1893. Given the impact of ferries upon society, it should come as no surprise that they have been a topic of interest to many naval architects for many years. The Pacific Northwest region of the United States contains a mix of islands, rivers, peninsulas and lakes. Salt water and fresh water transportation routes have been a critical part of the economic development of the region beginning with the native peoples and continuing today. Since the arrival of the first settlers in the 1850’s, power-driven ferries have been a common sight, linking the various communities through the movement of goods and people. What is a double-ended ferry and why choose this configuration? A double-ended ferry is one where vehicles are loaded on and off both ends of the vessel and the direction of travel switches so the bow becomes the stern. The greatest argument for a double-ended ferry is when the route is short such as a river crossing. The time to maneuver the vessel so it can back in to the dock becomes a significant portion of the overall time between departures. The maneuvering time also consumes additional fuel and imposes the risk, however small, of any maneuver going awry. Another advantage is that the vessel will have the same handling characteristics every time it enters or departs a terminal. With its propulsion at each end, the double-ended ferry has excellent stopping power and superior maneuverability, especially if using an

azimuthing or cycloidal propulsion system. This all contributes to safety, a critical factor for any ferry. The origins of Elliott Bay Design Group (EBDG) go back to the late 1920’s with the establishment of W.C. Nickum & Sons. The earliest ferry projects were to modify the double-ended ferries from the San Francisco Bay area that were made superf luous by the bridge building activities there in the 1930s. Since that time EBDG has worked on a wide variety of vessel sizes and propulsion types, to suit routes ranging from short river crossings to 20 nautical mile transits of exposed water. The typical ferry we have designed has a V hull amidships with a narrow, flat of bottom at baseline. The side shell flares outboard with one or two knuckles between the heavy guard at the deck edge and the bottom. This configuration produces surfaces that are fully developable which facilitates construction. Typically, the waterline beam is 80% of the maximum beam. This shape provides excellent reserve buoyancy for damage stability and adds waterplane area as the vessel heels, thus improving intact stability. Where there is a draft limit, we increase the width of the flat of bottom. At the ends the waterline shape typically narrows to a fine entrance. Because the waterline beam decreases more quickly than the beam at deck, the effect is to create substantial sponsons. These are located sufficiently far above the bow wave to avoid increased wetted surface as the bow wave increases with speed. The shape of these sponsons also needs to consider wave slamming in rough weather, so a compromise is sometimes required between calm water resistance and speed in waves. The lower October 2016 MARINE LOG 17

FERRIES part of the hull at the ends is fitted with a skeg to support the shaftline (with traditional shafting on centerline) and to support the hull in dry dock. The skeg shape and volume are critical to the shape of the bow wave, hence we carefully consider the section area shape, including skegs. In more recent projects we have seen greater emphasis on reducing hull resistance, especially for ferries that operate on route lengths of greater than 2 nautical miles. Over the 40 to 50 year life of a ferry, small reductions in drag can result in significant fuel savings, and of increasing importance, lower emissions. Through the use of computational fluid dynamics (CFD) we can find a balance between low resistance and ease of construction. The double-ended ferry lends itself to a wide variety of propulsion configurations. Historically, these have ranged from steam-driven, side paddlewheels to a cable ferry powered by horses on a treadmill. In more recent times, we have seen the diesel engine become the dominant power source with a variety of means of putting the power into the water. Clearly, there is no preferred approach that works for every ferry. As designers, we look for the machinery configuration that meets the owner’s performance requirements with the best balance between reliability, maintainability, fuel efficiency and operability. This search typically takes the form of a propulsion study where we work with the owner to establish weighting criteria for the various aspects of the propulsion system. Typically, an owner will have strong opinions on what equipment and what configuration works well for his operation. We are also seeing more clients interested in different forms of propulsion to reduce their overall energy consumption and thus reduce their environmental footprint. Owners are willing

18 MARINE LOG October 2016

to trade off the simplicity and reliability of traditional geared diesel propulsion for reduced energy consumption through use of hybrid propulsion with electric drives, batteries for energy storage, and smart control systems. We are also seeing increased interest in alternative fuels such as liquefied natural gas, biofuels, and even hydrogen. This year, EBDG developed a physics-based simulation tool to evaluate different propulsion technologies for different sizes of ferries operating on different types of routes. This tool calculates hull resistance, weights, fuel requirements, and hull characteristics in an iterative fashion until the basic parameters of weight and buoyancy are in balance. The outputs from the tool are estimates of capital and operating costs as well as carbon emissions. We can now work with ferry operators to assess the economics of using technology to reduce environmental impacts. So, what has 50 years taught us? First is that there always will be opportunities to improve the art of double-ended ferry design. Some recent trends include: • Access paths for passengers with disabilities • Critical scrutiny of fire risk and improved design of both passive and active fire protection measures • More vehicle clearances to improve speed of loading and unloading • Large passenger cabins with accessible restrooms • Seating arrangements to suit both individuals and larger groups • Greater security for vital spaces such as the engine room and pilothouse • Changing technologies and environmental issues are challenging to evaluate without a disciplined approach using solid engineering. ■

FERRIES EBDG-designed FERRies, BY PROPULSION TYPE Vessel Name

Geared Diesel w/FPP

Geared Diesel w/CCP

Diesel w/Azimuthing or Cycloidal Drive

Diesel-Electric

Cable

Route

Daniel Matheny V

River

Buena Vista

River

Whatcom Chief

Columbian Princess

Short X

Eagle

Heron

River Short Short

Guemes

Short

HYU

35 Car Ferry

Medium

Christine Anderson

Short

Steilacoom II

Medium X

Medium

Patrick Dennis

Crown City

Island Home

Short Short

Medium

Tillicum

Medium

WSF Cross-Sound

Medium

WSF 144 Car

Medium

Hyak

Medium

Spokane

Medium

Queen of Coquitlam

Queen of Alberni

Long

Chetzemoka

Medium

Charles W. Heald

Long

Short

Staten Island Ferry Fisher Island Ferry

Medium

Short

Amadeo Saenz, Jr.

Baynes

Short X

Short

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October 2016 MARINE LOG 19

FERRIES

The change in interpretation by MARAD creates some interesting financing opportunities for shipyards

MARAD “reboots” – CCF for RO/PAX Ferries By H. Clayton Cook Jr., Esq., Cook Maritime Finance

igned into law by President George Bush in December 2007, The Energy Independence and Security Act of 2007 was aimed at achieving important, long-sought maritime sector objectives. The act authorized and outlined a Short Sea Transportation (SST) program. The Secretary of Transportation was supposed to develop a plan for SST implementation, and required to report to Congress by December 2008 on the progress made. The act also mandated Secretarial action to create an environment that would attract private sector investment to finance SST requirements. The act as passed by the House on January 18, 2007, addressed the need for government-assisted SST financing by extending the Maritime Administration (MARAD) Capital Construction Fund (CCF) tax-deferral program to container and ro/ro services nationwide, and by authorizing $2 billion for the MARAD Title XI program use in attracting private sector financing for SST projects. At the time, Rep. Ken Oberstar and his Congressional co-sponsors were confident that with their proposals in place, the long-discussed use of U.S. waterways for the transportation of freight (in containers and trailers) and passengers, to mitigate landside highway congestion and reduce petroleum usage, and accomplish multiple other objectives, would be underway. They were to be disappointed. The $2 billion of Title XI authorization was removed in the Senate. The Secretary’s report, required by December 2008, was not delivered until April 2011 and concluded that without “strong leadership from the federal government . . . the nation’s rivers and coastal waterways will continue to be underutilized

20 MARINE LOG October 2016

for domestic container and trailer freight transportation” without tabling such leadership proposals. And, after the 2007 act had become law, when U.S. ferry operators sought to include Ropax vessels that carried passengers as well as RO/RO cargoes for CCF program “qualified” withdrawals, MARAD refused to approve these withdrawals. MARAD advised CCF program applicants that Congress had intended the 2007 act extension to apply for only to vessels in RO/RO services engaged in the carriage of freight, and that the carriage of passengers, in Ropax vessels, was a disqualification. And, CCF program applicants were told that a new Congressional enactment would be required to enable MARAD to include RO/RO vessels that included the carriage of passengers as “qualified” services.

Change of Policy The good news is that there has been a reinterpretation at MARAD that will include Ropax vessels as “qualified” services under the CCF program. Owner and operator participants in the MARAD CCF program will be now able to use their CCF program deposits to purchase Ropax vessels, and retire Ropax vessel debt. And, this will enable shipyards that are building Ropax vessels to use their CCF program monies as working capital for construction financing for customers (or for their own accounts) and as equity in customer vessel leasing transactions. The majority of U.S. vehicle ferry services are provided by vessels that carry vehicles and freight loaded by “wheeled transportation

FERRIES technology” and vehicle drivers and passengers being loaded in this same fashion, plus additional walk-on passengers. It was to facilitate the construction of these vessels that the CCF program qualifying service definition was being expanded. This MARAD change in interpretation gives full recognition to the CCF extension that Congress intended in 2007. It is of enormous practical importance.

MARAD CCF Program & Importance. The MARAD CCF program allows participants to defer payment of federal and state income taxes on vessel operations and sales and associated investment income. It provides what is in-effect an interest-free loan of monies that a taxpayer would otherwise pay to settle current taxes in exchange for the taxpayer’s promise to use that money for the construction of vessels to be operated in qualifying services or the payment of exiting or later incurred vessel debt. MARAD currently lists 165 CCF program participants. These include Crowley Maritime, Exxon Corporation, Matson Navigation, Tote, NASSCO and Horizon Shipbuilding. As of 2012 year-end, MARAD recorded $2.3 billion of CCF program monies as on deposit. Many of the owner-operator participations date from the 1970s. NASSCO was the first CCF shipyard, entering the program in 1988, and remains a participant today. NASSCO has apparently been able to defer federal and California tax on the profits from almost all of its U.S. newbuildings, and to use these interest-free borrowings as working capital in the construction of vessels for customers in the Alaska, Hawaii and Puerto Rico (non-contiguous) trades. This MARAD program change will allow commercial operators to defer tax and access their CCF monies as working capital for new

Ropax construction. The change will not directly benefit state and municipal owneroperators such as Washington State Ferries that do not need to defer taxation of current income. However, the CCF program can be used by the shipyards that build for these owner-operators. These shipyards can use their CCF monies as a source of working capital to provide construction period financing, and equity for long term lease financing. And owner-operators like WSF, may be able to

obtain CCF program Ropax long-term charter rates that will be 30 to 40 percent lower than the long-term charter rates that would otherwise be available. This might become a factor in lease vs. purchase decisions for operators like WSF that have substantial fleet replacement needs. The greatest number of immediate beneficiaries of this MARAD change will be the U.S. shipyards that are engaged in, or are considering engaging in Ropax vessel construction. ■

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October 2016 MARINE LOG 21

North America’s Premier Ferry Event

Nov 3–4, 2016 Grand Hyatt Hotel Seattle, WA

{

TOPICS INCLUDE

}

Waterfront Creation for Economic Development Improving Propulsive Efficiency in Ferries Development of NYC Ferry Network Diesel-Electric Ferries Double-Ended Ferry Design Perspective Exhaust Gas Treatment for Ferries

SPONSORSHIPS & EXHIBITS: 212-620-7208 • conferences@sbpub.com REGISTER NOW: www.marinelog.com/ferries GOLD SPONSOR

SUPPORTING ORGANIZATIONS

OPENING REMARKS Kostas Mallios CEO Clipper Navigation

BUILDING FERRIES FOR ALASKA, CALIFORNIA, & WASHINGTON Keith Whittemore Executive Vice President Vigor

LEVERAGING HYBRID TECHNOLOGY TO NAVIGATE TIER 4 COMPLIANCE

WHAT’S HAPPENING IN WASHINGTON Joan Bondareff Of Counsel Blank Rome LLP

DIESEL ELECTRIC PROPULSION: ITS EVOLUTION AND FUTURE Guido F. Perla Chairman Guido Perla & Associates Inc.

LEVERAGING HYBRID TECHNOLOGY TO NAVIGATE TIER 4 COMPLIANCE

Allan Grant Vice President

Joe Hudspeth Vice President of Business Development

Corvus Energy Ltd.

All American Marine

50 YEARS OF DOUBLE– ENDED FERRY DESIGN

HYBRID BATTERY FERRY WITH LNG CAPABILITY

John Waterhouse Chief Concept Officer

John Hatley

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Americas VP Marine Solutions

VIGOR SHIPYARD TOUR No shipbuilder has built a broader portfolio of ferries than Vigor. On November 4, take part in a special tour of Vigor Seattle’s facility at Harbor Island where the latest generation of ferries for Washington State is taking shape. Space is limited, so sign up early to secure your spot.

CONFERENCE SCHEDULE

{ November 3rd }

{ November 4th }

8:00am

Registration | Continental Breakfast | Expo Open

8:00am

Continental Breakfast | Expo Open

9:00am

Opening Remarks Kostas Mallios, CEO, Clipper Navigation

9:30am

What’s Going on in Washington? Joan Bondareff, of Counsel, Blank Rome LLP

9:00am

Zero Emissions Ferry: Using Liquid Hydrogen as an Alternative Fuel Capt. Joe Burgard, VP Operations, Red & White Fleet Joseph W. Pratt, PhD, Energy Innovation Department, Sandia National Laboratories

10:00am Coffee Break | Expo Open 10:30am Panel Discussion: New York City’s New Citywide Ferry Service Moderator: Greg Dronkert, President & CEO, HMS Ferries Terry McRae, Chairman & CEO, Hornblower, Inc. Peter Flynt, AVP & Dir. of Ferries and DockNYC, N.Y. City Economic Development Corp. Carl Wegener, Dir., Commercial Sales, Metal Shark Travis Short, President, Horizon Shipbuilding 12:00pm Luncheon | Expo Open 1:30pm

Waterfront Creation For Economic Development Bob Bekoff, Principal, Bob Bekoff, LLC

2:00pm

Exhaust Gas Treatment for Ferries Bill Mossey, VP, Pacific Power Group

2:30pm

Battery Safety Jan Hagen Andersen, Bus. Dev. Manager, Region Americas, DNV GL

3:00pm

Energy Break Sponsored by DNV-GL | Expo Open

3:30pm

All-Electric Ferry Concept Eric Engelbrecht, VP of Marine Division, Art Anderson Associates

4:00pm

Panel: Leveraging Hybrid Technology to Navigate Tier 4 Compliance Joe Hudspeth, VP, Bus. Dev., All American Marine Allan Grant, VP, Bus. Dev., Corvus Energy Ltd. Luke Briant, Consulting Systems Engineer, Marine Business Development, Siemens

5:00pm Cocktail Reception | Expo Open

24 MARINE LOG October 2016

10:00am Coffee Break | Expo Open 10:30am

Hybrid Battery Ferry with LNG Capability John Hatley, P.E., Gas Initiatives (MBA, MSE), Americas VP Marine Solutions, Wärtsilä North America, Inc.

11:00am

Improving Propulsive Efficiency in Ferries Erik Larsen, General Manager, Rolls-Royce Marine North America

11:30am

50 Years of Double-Ended Ferry Design John Waterhouse, Chief Concept Officer, Elliott Bay Design Group

12:00pm Luncheon | Expo Open 1:15pm Diesel Electric Propulsion: Its Evolution and Future Guido Perla, Chairman, Guido Perla Associates Inc. 2:00pm

Building Ferries for Alaska, California and Washington Keith Whittemore, Executive VP, Business Development, Vigor

2:30pm

Adjourn

3:00pm

Shipyard Tour of Vigor Seattle at Harbor Island

EXHIBITOR PREVIEW ARMSTRONG MARINE Armstrong Marine, Inc. manufactures boats of exceptional performance to meet the rigorous demands of the sea with a grace your crew and passengers will appreciate. By design, each vessel provides stability, safety, and reliability allowing for use in a variety of settings. www.armstrongmarine.com

Horizon Shipbuilding, Inc. Horizonâ&#x20AC;&#x2122;s GORDHEAD management software/platform provides users/shipyards the ability to reduce costs, enhance deliveries, and realize clearer and quicker communication between the usersâ&#x20AC;&#x201D;resulting in increased customer satisfaction. www.horizonshipbuilding.com

Belzona Technology Washington LLC For 65 years, Belzona has developed coatings and procedures used to stop corrosion, rebuild damage from corrosion, prevent cavitation, and increase efficiency, as well as waterproofing and safety nonskid. www.belzonatw.com

In-Mar Solutions, LLC In-Mar Solutions is the exclusive U.S. agent for Wynn Marine Straight Line Wipers, Alu Design Helm Chairs and West Mekan Passenger Seating. www.inmarsolutions.com

Cavotec USA, Inc. MoorMaster is a vacuum-based automated mooring technology that eliminates the need for conventional mooring lines. Remote-controlled vacuum pads, recessed in or mounted on the quayside and attached to hydraulic actuated arms, extend, attach and moor ships in a few seconds. www.cavotec.com Electronic Marine Systems, Inc. EMS is an ABS-approved ISO 9001 manufacturer of shipboard automation and tank gauging systems since 1979. Our tank gauging technology is approved for custody transfer. www.emsmarcon.com Elliott Bay Design Group Elliott Bay Design Group is a national expert in passenger vessel and ferry design, providing public agencies and private operators across the country with a full-range of services from new design, modification, surveys and stability assessments to regulatory and environmental compliance support. www.ebdg.com HAmiltonJet With over 50,000 waterjet units installed around the world, HamiltonJet represents the latest in waterjet propulsion technology. They are the preferred choice for the efficient propulsion of a wide range of high speed work and Patrol boats, Fast ferries, Offshore crew boats, Fire boats, Fishing vessels, Recreational and Military craft. www.hamiltonjet.com

Marine Jet Power, Inc. Marine Jet Power, Inc. designs and manufactures the UltraJet and MJP range of marine waterjet propulsion and control systems. www.marinejetpower.com Motor-Services Hugo Stamp Inc. Motor-Services Hugo Stamp, Inc. is an authorized distributor and service center for Baudouin, FPT, FNM, Nanni and AlamarinJet. Factory-trained engineers and extensive inventory available 24/7. www.mshs.com MTU MTU provides diesel engines and systems ranging from 350 to 12,205 bhp for propulsion and auxiliary power in inland and offshore commercial vessels. MTU is part of the RollsRoyce Group. www.mtu-online.com Rigidized Metals Corporation Rigidized Metals Corporation serves the marine industry with C-Class honeycomb panels, stainless steel tread-plate decking, textured handrails and architecturally-pleasing marine interiors from ferries to cruise ships and yachts. www.rigidized.com Scania USA, Inc. Scania USA, Inc. is a subsidiary of Scania CV AB of Sweden and the distributor for marine and industrial engines in North America. www.scaniausa.com

October 2016 MARINE LOG 25

EXHIBITOR PREVIEW

SURVITEC GROUP Survitec Group is a world leader in manufacturing, supply and servicing of marine safety equipment such as liferafts, rescue boats, marine evacuation systems, davits, lifeboats, pyrotechnics, immersion suits, lifejackets, and firefighting equipment. www.survitecgroup.com

Voith Turbo, Inc. Voith Turbo Marine provides solutions for vessel propulsion, positioning, stability, and power transmission. Products include: Voith Schneider Propellers (VSP), Electric rimdriven Voith Inline Thrusters, Voith Linear Jet, fluid coupling technologies, as well as rigid & torque release couplings. us.voith.com

TORQEEDO, INC. Save fuel and maintenance costs and reduce your environmental impact with electric or hybrid propulsion. Torqeedo offers complete systems in commercial use around the world. www.torqeedo.com

W&O Supply W&O is one of the world’s largest suppliers of pipe, valves, fittings, actuation and engineered solutions to the maritime and oil & gas industries. www.wosupply.com

Vigor With ten locations and more than 2,500 workers, Vigor is the leading provider of shipbuilding, ship repair and complex fabrication in the Pacific Northwest and Alaska. www.vigor.net

Wärtsilä North America, Inc. Wärtsilä is the leading provider of ship machinery, propulsion and maneuvering solutions. Wärtsilä supplies engines and generating sets, reduction gears, propulsion equipment, control systems and sealing solutions for all types of vessels and offshore applications. www.wartsila.com

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PACIFIC MARITIME

The Blue North was built by Dakota Creek Industries in Anacortes, WA

GO, NORTH! GO, NORTH!

Advanced freezer longliner sets new standards for Pacific North commercial fishing vessels

ast month, Seattle-based Blue North, Inc., christened its flagship, the F/V Blue North, one of the world’s most advanced, innovative freezer longliners. Built by Dakota Creek Industries Inc. at its Anacortes, WA, shipyard, the F/V Blue North has been thoughtfully designed with new technologies to improve the quality of harvested seafood and working conditions for fishermen. Specifically developed for the Alaska cod hook-and-line fishery, it has a length overall of 58.35 m and beam of 12.8 m. It is based on a new ST 155L design by Norway’s Skipsteknisk AS. It is specially designed for the hauling of long line through a moon pool in the center line. “We believe in innovation,” says Blue North President & CEO Kenny Down. “We’re investing in the future now. This vessel will have a lower environmental impact, burn less fuel, and be much more efficient. It’s based on good business and philosophical reasons.” In the U.S., there was almost a generational loss of fishing vessels, since only a handful of vessels were built in the U.S. over the last two decades. It’s not uncommon to find World War II hulls in the American fleet that were converted some time ago for use in the commercial fishing market. Down says Blue North started its search for a designer five years ago, before settling on Norway’s Skipteknisk, which has built an international reputation in the commercial fishing market for forward-thinking designs. Down says, however, that the Blue North made the design its own, adding touches such as twin drive azimuthing propulsion, modifying the moon pool, adding the heat recovery system, and smart grid control technology. “We feel that we now have a uniquely American design newbuild for Blue North.”

The vessel is built with a heavily weighted box keel design, to keep weight low, and an anti-roll tank to provide an extremely stable working platform. Dakota Creek Industries is also building a 79.8m x 15.4m factory trawler for Fishermen’s Finest that is based on an ST-116XL design from Skipsteknisk. She is due for a November 2017 delivery. Unique features of the F/V Blue North reduce its environmental impact. All water and waste on the vessel is captured and treated, and nothing is left behind to contaminate the ocean. A state-of-the-art engine-cooling and heat recovery system recycles water used to cool the ship’s engines, and repurposes the captured heat for creating potable water, creating hot water and heating the ship. These features mean less fuel is required to heat the vessel and no waste water is put back in the ocean. Engine power is monitored by a smart grid that detects electrical loads and distributes energy for maximum efficiency. Propulsion for the Blue North is supplied by a Siemens BlueDrive diesel-electric propulsion system that uses two Caterpillar C32 engines and one Cat C18 driving diesel generators to generate power to directly turn two Z-drive dual-azimuth propulsion system, while also powering the processing plant, freezers, lighting, heating and marine electronics. “Blue North is dedicated to sustainable practices, and we spared no expense when it comes to the features we included on the Blue North that reduce environmental impact,” says Down. “Not only are these practices more cost-effective, we believe that protecting our resources and environment is critical to the planet and the fishing industry.” In addition to its new ecologically sound features, the vessel has been designed to improve working conditions for the crew. All fishing October 2016 MARINE LOG 27

Kevin J. Suver

Compiled by Marine Log Staff

PACIFIC MARITIME Vigor has built a diverse portfolio of newbuilds, including this recently delivered fireboat for San Francisco

with the hull and the first two decks of the superstructure complete. All the steel work is expected to be done before the end of the year. Besides the two Lindblad cruise ships, NBBB is extremely busy with orders for two line haul tugs, two ATB tugs, and fabrication of a fast ferry superstructure. Higgins says the shipyard is also currently bidding on more tugs, fishing vessels, passengers boats, and some other vessels. In Portland, OR, Gunderson Marine, a unit of railcar manufacturer The Greenbrier Companies, has secured orders for five barges, including two 82,000 bbl ATB ocean tank barges for Harley Marine Services, Seattle, and three oil spill response barges for an undisclosed customer.

New Freezer Longliner Design

gear is inside and hauled through the moon pool, so fishermen are no longer exposed to unpredictable weather and associated risks of fishing in the Bering Sea. Elevator and conveyer systems reduce the work of loading and unloading ship supplies and seafood products. Down expects to build another next generation commercial fishing vessel like the Blue North, once the company assesses how the vessel performs during operations and what might need to be refined or changed.

Pacific Northwest Yards Position For Growth By the beginning of next year, All American Marine (AAM) will open a new $10 million facility at the Port of Bellingham in Washington State that will double the shipyard’s capacity, according to the company’s Joe Hudspeth. One of the largest builders of aluminum catamarans over 45 feet in length in the U.S., AAM will be able to take on multiple projects for hulls ranging in size from 40 ft to 150 ft at the new 57,000 ft2 facility. Hudspeth says the company expects to increase its staff by 50 percent over the next few years. A recent contract with Seattle-based Argosy Cruises for a 500-passenger tour boat will “christen” the yard; the 125 ft long hull will be the first keel laid at the new facility. AAM is using close to $1 million in a Small Shipyard Grant from the U.S. Maritime Administration to help purchase new equipment for the yard. The grant money was for overhead cranes, welding machines, CNC router, scissor lifts, painting area upgrades, and ventilation upgrades. In a press release, the Port of Bellingham said the cost of the new facility would be repaid through a new 25-year lease with the Port. The larger shipyard and workforce will help AAM “meet customer requests for bigger vessels,” said Matt Mullett, President and CEO of All American Marine. Earlier this year, AAM secured a contract from the U.S. Army Corps of Engineers for a 68 ft hydrofoil-assisted survey vessel based on a design from Teknicraft Design Ltd., Auckland, New Zealand. The shipyard also holds a contract from the U.S. National Park Service for two 72 ft ferries for the Gulf Islands Seashore along the Florida Gulf Coast. Nichols Brothers Boat Builders, Whidbey Island, WA, is conducting sea trials on the unique 140 ft multi-purpose cargo vessel for the American Samoa Government. NBBB President & CEO Gavin Higgins says work on the first Lindblad cruise vessel is also going well, 28 MARINE LOG October 2016

Headquartered in Portland, Vigor is the largest shipbuilding and ship repair group in the Pacific Northwest, with facilities in Oregon, Washington State, and Alaska. Vigor has built a broad portfolio of vessels—everything from ferries to fireboats to ocean tank barges. Within the last few months, Vigor has delivered a fireboat for the San Francisco Fire Department, an ATB tug for Harley Marine Services, pilot boats for Oman, and christened a 144-car ferry for Washington State Ferries. With the North Pacific fishing fleet in dire need of recapitalization, the shipbuilder is focusing its efforts on engineering a new affordable freezer longliner specifically for that market. “What we’ve developed is a design that is a heavy duty pick up—the right piece of equipment for the right market for the right price,” says Keith Whittemore, Vigor Vice President of Business Development. The new “pick-up” design is “working man’s gear,” with an eye on dependability, maintainability, and efficiency, says Whittemore. The design for Vigor’s new freezer longliner is based on a classic 135 ft long longliner design from MARCO Marine, which has a long history of building reliable fishing vessels for the North Pacific— many of which are still operating in the market. To develop the new design, Whittemore says that Vigor licensed the design and hired Seattle-based naval architectural firm Glosten Associates, whose team includes the original lead designer at MARCO, Garth Wilcox. Vigor also collaborated with a group of longliner operators to see what exactly they were looking for in a new boat. After months of refinement, the result is a 144 ft x 33 ft 6 in x 14 ft vessel with a fish hold of 14,070 ft3 and bait hold capacity of 1,900 ft3. The hull has been optimized for efficiency and stability. The propulsion system will be a conventional diesel, single shaft and a variable pitch propeller. The reason for the propulsion selection was simple—efficiency. “You can’t beat a single shaft variable pitch propeller for putting thrust in the water,” says Whittemore. The single diesel engine setup will also equate to substantial annual fuel savings. Additionally, a shaft generator will run the factory while the boat is fishing. This means only one generator will be required on the longliner, cutting capex and opex for the operator. Vigor plans to class the vessel as ABS. Crew accommodations will be comfortable two- and four-man staterooms. Owners will get to choose their engine and electronics. The new design will be unveiled at this year’s Pacific Marine Expo in Seattle, WA. There are 33 longliners currently operating in the North Pacific fleet. Vigor has refit and built several of them. Back in 2013, it delivered the F/V Arctic Prowler, a new 136 ft x 41 ft x 26 ft freezer longliner for Alaska Longline Company from its Ketchikan, AK, facility. Now, says Whittemore, the goal is to create an efficient, steady production line for fabrication. The idea being that building a series of the new freezer longliners will create better cost efficiencies for the shipyard, and a lower cost and better quality product for customers. Whittemore would like to see Vigor build 12 to 15 of the new design

PACIFIC MARITIME vessels. “We’re committed to do what’s right for the customer up front,” he says. “We’ll be able to build a better boat at a better price.”

California an important shipyard base In late August, General Dynamics NASSCO hosted U.S. Maritime Administrator Paul “Chip” Jaenichen at its San Diego-based shipyard. On the tour, the Administrator highlighted California’s strength in the shipbuilding and repair industry as well as the national economic importance of the U.S. shipyard industry. The state supports some 35,000 jobs and contributes $2.3 billion in labor income and $3.6 billion in U.S. GDP. Just prior to the Administrator’s visit, GD NASSCO, announced a $511 million contract to two new combination container and Roll-on/ Roll-Off vessels for Matson Navigation Company. The LNG-Ready ships will be delivered in 2019 and 2020. That was followed last month, by the delivery of the 50,000 dwt Bay State, the fourth vessel in a series of five ECO Class product tankers under contract with American Petroleum Tankers (APT). Built for service in the Jones Act trade, The U.S.-flag, 610 ft long Bay State is a LNG-conversion-ready product tanker, meaning that the vessel can be converted to burn Liquefied Natural Gas—LNG—as a fuel. Classed by ABS, the ship has a 330,000 bbl cargo capacity. GD NASSCO has delivered 28 oceangoing ships to government and commercial customers—including the world’s first LNG-powered containerships for TOTE—over the past decade. Earlier this year, Marine Group Boat Works, LLC, a San Diegobased boatbuilding and repair company with three yards in Chula Vista, National City and San Jose del Cabo, was issued a Master Ship Repair Agreement (MSRA) that would allow the company to provide a full scope of large government ship repairs including planning,

quality control, shipboard/off ship production, components/systems testing and trials for vessels including large ships. MGBW President Todd Roberts, says since the agreement, the company has spent the last quarter developing the program including hiring a division manager, adding labor to its workforce, partnering with specialty subcontractors and finalizing improvements to its infrastructure. “The recent hire of Hugh Vanderspek, a former general manager of BAE San Francisco with over 30 years of MSR and shipyard experience, has sped up Marine Group’s progress in working with various military entities to secure the right contracts which are those that meet both of its facilities’ capacities. Projected for first quarter 2017, the small business shipyard will start to see the fruits of the hardworking team’s labor,” says Roberts. Since 2013, MGBW’s workforce has risen from 140 to 205. Earlier this year, MGBW completed five 29 ft steel workboats for the U.S. Navy, including delivering the last to Japan this past March. In regards to the larger 45 ft steel workboats, Marine Group is in its final stages of completion. Once sea trials and acceptance trials are complete, four workboats will be shipped to Japan in October and delivered to their intended destination of use by Marine Group crew while the remaining two will be shipped and delivered on schedule in January 2017. The dive boat project is a five-year contract in which five have been ordered and nearing completion. Before the year is over, two dive boats will remain in San Diego while two others are scheduled for delivery by Marine Group crew to the East Coast. The fifth vessel is under construction and will also remain in San Diego upon completion next year. New to its order book is a 30 ft steel tugboat for GD NASSCO. MGBW is in the design and engineering phases of the project. ■

www.hattonmarine.com

October 2016 MARINE LOG 29

Opinion

USCGC Healy approaches Russian-flagged tanker Renda about 97 miles south of Nome, AK

Freezing the Jones Act: An Argument for Temporary Waiver of Trade Protection Laws in the U.S. Arctic

t was a nasty winter, even by Alaskan standards. The city of Nome, Alaska was in trouble. A late November storm blocked a scheduled shipment and the city was running out of fuel. In an Arctic winter, fuel is as precious as blood. It powers more than cars and trucks, it runs generators to light up the 24 hours of darkness and it burns in boilers for heat when the outside temperatures regularly hit -50 degrees. Without fuel, all human life stops; and Nomeâ&#x20AC;&#x2122;s tanks were running dry. The solution to the crisis lay in the belly of a Russian ice-strengthened tanker sailing just offshore. The problem was that her cargo of life-sustaining gas and diesel was loaded in Dutch Harbor, Alaska, and a U.S. law designed to protect domestic shipbuilding was preventing her from completing the mission. Recognizing the urgency, Secretary of Homeland Security, Janet Napolitano, issued a one-time waiver of the Jones Act and the Renda steamed into Nome Harbor to deliver the fuel. As changes in the Arctic continue to unfold, incidents such as 30 MARINE LOG October 2016

the one in Nome will become more common. In addition, the pace of change in the Arctic has found the U.S. unprepared to assert her claims and to defend fragile ecosystems and populations. The Nome incident illustrates a stark choice for the U.S.: change how the country protects its domestic shipbuilding, or cede the Arctic to its geopolitical rivals. The Jones Act requires that any ship carrying passengers or cargo between two U.S. ports must be built in the U.S., crewed by U.S. nationals, and owned by a U.S. company. The Act dates back to the 1920â&#x20AC;&#x2122;s but the idea of protecting a domestic shipbuilding industry from foreign competition is as old as the country itself. The First Congress of the United States levied heavy tariffs on goods delivered on foreign ships. The Act serves that important role today; however, the economic reality is that Jones Act compliant ships are expensive to build and expensive to operate. So to maximize profits, large ships in the international trade are flagged in countries with favorable laws

U.S. Coast Guard photo/ PO 1st Class Sara Francis

By Benjamin E. Ford, Esq., Verrill Dana

Opinion and tax treatment. Such “flags of convenience” create strange outcomes as cruise ships that pick up vacationers in Miami must first stop somewhere outside of the U.S. before discharging their passengers. Foreign flagged tankers, loading crude in Valdez may take that crude to a foreign port where it is pumped ashore, modified slightly, then reloaded on to the same ship before that ship sets sail for a U.S. refinery. Opponents of the Jones Act point out the inefficiencies created when non-compliant vessels seek to skirt the law. They argue that the trade protection measure makes coastwise shipping prohibitively expensive as shipbuilders in the U.S. must operate under more expensive environmental and labor regulations. Similarly, the U.S. ownership requirement cuts off sources of capital to build those ships. Without the Jones Act, the argument goes, we could use international competition and realize benefits and efficiencies of moving freight over water. For example, we could put containers on barges that service coastal cities, thereby removing thousands of trucks from the already choked and crumbling interstate highways. Proponents of the Act cite jobs and national security interests. During World War II the U.S. shipbuilding industry saved the world from fascism by building Liberty Ships faster than German submarines could sink them. Today, the market for Jones Act compliant vessels supports thousands of good paying jobs and preserves skills that would desperately be needed should the world face a similar crisis. The decline in domestic manufacturing under the auspices of free trade serve as a warning to those looking to open U.S. shipbuilding to foreign competition. The Arctic presents a different problem. As the ice recedes, human demands in the Arctic will increase. Just this year, 1,000 passengers aboard the cruise ship Crystal Serenity sambaed and bunny hopped their way through the once impassable Northwest Passage. As a result of increased economic activity, settlements in the Arctic will grow. More people in the Arctic means more demand for ice class ships to resupply villages and outposts. More shipping also means increased demand for search and rescue and spill response. As demand for icebreakers and ice class ships increases, there are few Jones-Act certified ships to fill the need. In contrast, countries such as Finland have an excess of icebreaker capacity. Those ships, however, cannot

PA 1 Ed Moreth, USCG

The only active U.S. heavy icebreaker is the USCGC Polar Star

operate between U.S. ports in the absence of a Jones Act waiver from the Department of Homeland Security. In addition to support for economic activity, presence in the Arctic is critical for political reasons. Conditions in the Arctic are changing faster than most expected and wherever the ice recedes, it leaves behind a geopolitical vacuum. As the ice pulls back from the shore, it will expose trillions Benjamin Ford of dollars in natural resources. More impor tantly, it w ill uncover fragile and delicate ecosystems and leave indigenous populations exposed to potential exploitation. Russia has already staked its claim to a vast undersea territory stretching almost to the North Pole. In the last few years, Russia has been quietly rebuilding its fleet of Soviet-era icebreakers. Today, Russia has scores of ice class ships, six nuclear-powered icebreakers, and three more heavy crushers on their way. China, with no territory in the Arctic, has two icebreakers with a third on the way. The United States, a country with the world’s most powerful and well-equipped military, has one heavy icebreaker, and it is 40 years old. Congress has allocated funds for a second ship, but construction will not start until 2020 and the ship will not see ice until 2025. Protection of the environment and native people in the Arctic will require a U.S. presence and a U.S. presence will require icebreakers now. Typical Jones Act problems involve competition between foreign and U.S. flagged ships. But with little or no U.S. ships to fill the need, the Jones Act forces a choice between using a foreign-flagged vessel or nothing at all. As the situation in Nome demonstrated, that is not a choice when lives, the environment, or a critical national interest is at stake. The current administration can fix this. The Secretary of Homeland Security, using executive authority, can and should grant a temporary waiver for all ice class vessels operating from the Aleutian Islands in the south to the Canadian border in the north and in all U.S. points above the Arctic Circle, until such time as an equivalent Jones Act-compliant vessel becomes available. Such a rule would allow the U.S. to immediately defend her geopolitical interests by freeing up the one available icebreaker. While the waiver is in place, existing foreign vessels could develop and test markets for commercial shipping with ice breaking capabilities. If it appears the market will bear the increased cost of a U.S. flagged ship providing those services, U.S. shipbuilders will build a ship and enter the market. When the U.S. ships move in, the waiver is lifted and the U.S. will protect that market under existing law. In this way, the rule would actually promote domestic shipbuilding by allowing other countries to highlight areas for growth while minimizing risks. Such a rule would also encourage efficiency and innovation without compromising or threatening existing jobs. As President Lincoln said in his 1862 address to Congress “the dogmas of the past are inadequate to the stormy present.” The Arctic presents opportunities and challenges not seen by western countries since the days of Columbus. In times of crisis, we can, and should, look critically upon institutions fostered in a different time and for a different reason. The Secretary of Homeland Security recognized this crisis and granted a waiver for Nome. The Secretary should now do the same for the rest of the Arctic. ■

October 2016 MARINE LOG 31

sALVAGE

Salvage experts from SMIT chartered tugs to secure the Modern Express

Under Pressure When accidents happen and the DNV GL Emergency Response Service team is called in, every minute counts, and close cooperation with salvage services is essential for a good outcome

n January 29, 2016, the Roll-On/Roll-Off (RO/RO) carrier Modern Express, a Panama-registered ship transporting 3,600 tonnes of wood and construction machinery from Gabon to France, was caught in a severe storm in the Bay of Biscay. Battered by huge waves, the vessel developed a severe list and lost engine power. The captain sent out a distress signal, and the vessel’s 22 crew members were airlifted to safety by two Spanish helicopters, leaving Modern Express to founder in heavy seas without crew or power.

Rapid Response Team SMIT Salvage, a Dutch salvage and towing company that specializes in emergency operations, was called to handle the case, and the DNV GL Emergency Response Service (ERS) team was activated. Within hours, SMIT had chartered two heavy tugboats to secure the vessel and had a ten-man salvage crew on the scene. DNV GL put three technical experts on the case to provide advice on stability and structural strength issues based on the original vessel drawings and a predefined 3D computer model. Aware that the wind and sea conditions were pushing Modern Express towards the southwestern coast of France, the SMIT team attempted to attach a tow line to the stricken vessel. Rough seas made this impossible, but on February 1, four SMIT salvage experts were 32 MARINE LOG October 2016

lowered onto the deck of Modern Express by a helicopter, where they were able to attach towlines. This allowed a tug to turn the vessel and steer it away from immediate danger. While no personnel were injured during the operation and the loss of the vessel was no longer an immediate threat, the job was far from over, and the focus of the operation shifted to guiding the vessel to a safe port.

Safe Harbor “Our first priority in a crisis situation is to carry out the necessary calculations to assess the condition of the vessel and to advise personnel on-site how best to manage the crisis,” says Øyvind Træthaug, Principal Engineer Emergency Response Service at DNV GL. “Together, our duty teams in Oslo and Hamburg handle about 40 cases a year. Not all require salvage operations, but when they do, we try to support the efforts of the salvors. We have worked extensively with SMIT in the past, and have developed a good, cooperative relationship with them.” According to Richard Janssen, Commercial Director of SMIT Salvage, the greatest challenge in any salvage operation is gaining timely access to reliable information. “Until we get people on board to assess the condition of the vessel itself, it is difficult to get an accurate picture of what we are dealing with,” he says. “The stability

sALVAGE calculations we receive from the class of the vessel, combined with analysis from our own team, can make a big difference in how we approach salvage operations.”

Challenging Conditions Janssen says that the greatest challenge in any emergency salvage operation is coordinating the flow of information between various stakeholders. “In a case like this, we work with the owner, local maritime authorities, lawyers and underwriters to coordinate our response. We received excellent support from DNV GL in this situation,” says Janssen, adding that the hands-on assessment of the vessel’s condition was difficult. “The vessel was listing at 40 degrees, with some decks partially submerged, making it difficult for our experts to assess structural damage. “However, DNV GL’s calculations helped confirm our own analysis of the vessel’s condition and we agreed the ship was seaworthy enough to be towed.”

Righting The Ship After having applied for a place of refuge in accordance with the new EU Operational Guidelines, the Spanish authorities gave their approval by February 2 for Modern Express to head for the harbor entrance in the Port of Bilbao in Spain, where a boarding team of eight SMIT salvors were put onto the vessel to connect additional tugs for berthing. The vessel was secured to the dock with specialized shore-tension equipment after the necessary inspections could be carried out. The next challenge was how to right the ship. “We discussed using counterweights to bring the ship upright, but as the SMIT team was able to assess the vessel more thoroughly, we verified and helped SMIT to improve a nine-step dewatering sequence using pumps and ballast tanks to gradually right the ship,” says Træthaug, who was very happy with the result.

ERS: Good advice when you need it With over 4,000 vessels registered, the DNV GL Emergency Response Service (ERS) is the largest service of its kind in the industry, covering: • Detailed and verified advice on how to improve a ship’s or MOU’s condition in a distressed situation, with a plan for the fastest return to operation • 24/7 access to damage stability and residual strength experts for immediate support to vessels in distress, from the incident up until the vessel is safely in repair or back in operation • Communication checks and realistic scenario exercises for effective and reliable crew training • Evaluation of an existing emergency response plan against reference best practices • Compliance with relevant inter national regulations and requirements • The DNV GL ERS is available for all ship types, offshore units and inland vessels independent of class

Work began on February 6 and the team managed to reduce the vessel’s list from 51 degrees to zero. “We measure the quality of our service in how quickly we can produce and deliver useful information and recommendations for decision support in critical situations,” adds Rossen Panev, a DNV GL Principal Engineer who collaborated on the case with Træthaug. “Working closely with salvors like SMIT gives us the opportunity to enhance each other’s skill sets and provide the customer with the best possible advice when the pressure is on and they need to make fast decisions.” ■ This article was originally published in DNV GL’s Maritime Impact, Issue 02-16. The Modern Express was granted a place of refuge in the Port of Bilbao

October 2016 MARINE LOG 33

newsmakers

Wärtsilä names Chief Digital Officer to develop digital strategy Wärtsilä has appointed Marco Ryan as Chief Digital Officer & Executive Vice President, as well as member of the Board of Management at the Wär t silä Cor por ation. R yan’s role will be to def ine, develop and execute Wär tsilä’s digital strateg y, as well as lead the Information Management organization. Naval architecture and marine engineering firm Gibbs & Cox, Inc., has promoted Kevin Prince to Vice President of the Gibbs & Cox Engineering Group. In this role, Prince will be responsible for management and execution of engineering services across G&C’s broad range of clients.

Hunting ton Ingalls Industries’ Ingalls Shipbuilding division has named Kimberly N a s ta s i Direc tor of Communications. Prior to joining Ingalls, Nastasi served as Chief Executive Officer of the M is sis sippi G ulf Co a s t C hamb er of Commerce and the Executive Director for the M is sis sippi G ulf Co a s t C hamb er of Commerce Foundation. Naval architecture and marine engineering f ir m Bristol Harbor Group, Inc., Bristol, RI, has hired Jennifer Lorenc. Lorenc is a recent graduate of the Webb Ins titute, Glen Cove, N Y, w here she received a Bachelor’s of Science in Naval Architecture and Marine Engineering.

Nicolas Quéru has been named EVP Managing Director for Navico’s Commercial Greenbrier Companies, Inc. reports that Marine Division worldwide, Simrad. Quéru, Jim Cowan has been appointed President who has extensive experience in international of Greenbrier International. Greenbrier business management, will be responsible is the parent company of Oregon-based SA2017_HP_Ad_Marinelog(178x117mm)_FA.pdf 1 20/9/16 Gunderson Marine.5:16 pm for driving the growth of the Simrad brand.

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Elliott Bay Design Group has named Elizabeth Allen as Human Resources Manager and Br a dle y Ol son as Naval Architect. Allen brings with her more than 11 years of experience to the role. Olson, meanwhile, returns to EBDG after his 2015 internship with the firm. Both join EBDG’s Seattle office. Investment bank Blackhill Partners has appointed Hardin Bethea as Director. Bethea has experience in the maritime and seaborne trade industry—having advised on shipping companies, across shipping sectors and economic cycles both domestically and internationally, for more than 14 years. W&O has announced the promotion of Lori Ulrich to Director of Human Resources and Tammy Emerson to President of the Propeller Club, Jacksonville, FL. Ulrich joined W&O in 2009, Emerson has been with W&O since 1988.

Held in conjunction with

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techNews

BAE Systems-led consortium to help analyze big data

Innovative SkyBench awarded AIP from DNV GL At last month’s SMM 2016, classification society DNV GL awarded Hyundai Heavy Industries (HHI) Approval in Principle (AIP) for SkyBench. The innovative design helps maximize cargo loading capacity on large container ships by utilizing a mobile accommodation block that can be mounted on rails and moves over the span of two container bays. This enables the void space beneath the sliding block to be utilized for storage— effectively allowing for the addition of two extra 20 ft container bays and resulting in a cargo increase of: 270 TEUs on a 17-row wide 10,000 TEUs ship; 350 TEUs on a 20-row wide 14,000 TEUs ship; and 450 TEUs on a 23-row wide 19,000 TEU ship. SkyBench takes 10 minutes to operate at

port. It uses four electric driven train units to move the block backwards from its normal position. The two 40 ft side casings on which the accommodation block rests provide structural strength and holds lifeboats, provision cranes and utility rooms. “The SkyBench shows how the industry’s increased focus on efficiency and maximizing transport capacity has really sparked innovation in design and operation,” said Ian Edwards, DNV GL’s Head of Approval Centre, Korea. “Additionally, the potential of this design to offset reduced cargo capacity when choosing LNG as ship fuel means that HHI can offer a design tailored to meet stricter sulphur emission limits in the future.” www.hyundaiheavy.com

Autonomous underwater vehicle for ship surveys General Dynamics Mission Systems demonstrated the power and usability of the Bluefin Robotics hovering autonomous underwater vehicle (H-AUV) at a recent industry event. The two-man-portable hovering AUV is equipped with high-resolution imaging sonar for ship hull inspection, port and harbor security, mine countermeasures, unexploded ordnance (such as bombs), and scientific research. The H-AUV can help locate, identify and map structural changes/ issues on a ship’s hull without the vessel having to enter drydock. The system can be unpacked, checked out and launched in under 30 minutes. It features a field-swappable battery and removable 4 GB data storage module facilitating rapid turnaround times between missions. The H-AUV uses thrusters to maneuver—rotating in place and going in

any direction at speeds up to 0.5 knots (1.5 knots optional). It can reach depths between 100 ft and 200 ft and has an endurance of 3.5 hours with standard payload. Bluefin Robotics explains that the H-AUV can autonomously locate and relocate contacts on a ship’s hull with a precision of better than 2 meters CEP 50. Its integrated DIDSON sonar provides high-resolution sonar images that can be viewed in real time. “Inspecting ship hulls and other underwater surfaces can be a manpower- and cost- intensive part of a ship’s observation and maintenance,” said Matt Graziano, Director of Autonomous Undersea Systems for General Dynamics Mission Systems. The use of the H-AUV helps reduce “the risk to divers when inspecting potential threats attached to a ship’s hull or other structure.” www.bluefinrobotics.com

A group of technology suppliers are joining forces to develop software that will help monitor the equipment, fuel, and energy performance of a ship. The consortium includes BAE Systems in partnership with the University of Southampton and technology suppliers James Fisher and Sons plc, Fugro GEOS and OSISoft UK Ltd. The project is sponsored by Innovate UK. The technology is currently being tested on a 4,426 dwt commercial tanker. Known as Ship Energy Assessment – Condition Optimization & Routing Enhancement System (SEA-CORES), the technology is based on BAE Systems’ expertise in supporting U.K. Royal Navy vessels. The system helps analyze big data from systems on board a ship, helping to provide a live model of its performance wherever it is in the world. SEA-CORES analyzes the vibration and trim performance of a vessel. It further analyzes its hull and superstructure state together with environmental conditions such as weather and associated ship performance characteristics, including energy consumption. The software works in collaboration with existing BAE Systems technologies Ship Energy Assessment System (SEAS) and System Information Exploitation (SIE) technology, connecting fuel and engine optimization to model the relationships between the different ship systems. Once data is collected, generic algorithms are used to recommend strategies to optimize a vessel’s performance. The technology provides valuable information that will enable an operator to make better decisions when it comes to operating the fleet, said Chris Courtaux, Head of Engineering and Energy Services at BAE Systems. The data, he adds, can help the operator “reduce fuel consumption and minimize wear on the engine, helping to save costs and increase the availability of the fleet to fulfill operational commitments.” www.baesystems.com

October 2016 MARINE LOG 35

techNews

Rapp Marine equips the fishing market Rapp Marine Group recently won several contracts that will see it providing equipment to new fishing vessels over the next two years. Under the contracts, Rapp Marine will provide deck machinery for six new vessels. One of those contracts will see Rapp provide equipment for a combination vessel RAV, marking the first time the company supplies electric deck machinery for combination trawl/purse seine fishing. The new contracts, says Morten Stenkjaer, VP Sales, Fisheries, Rapp Marine Group, “confirms the company’s strong position as a supplier of this type of equipment to the fishing fleet.” Rapp will also deliver a complete hydraulic deck machinery package to three Russian SK-3101R vessels for trawl and Scottish seining and purse seine fishing. The vessels are on order for VI Lenin Collective Farm Fishing. The SK-3101R is a proven fishing vessel design that is used for deep water fishing. Additionally, Rapp will provide two hydraulic deck machinery packages to two new Irish newbuilds currently under construction at Karstensens Shipyard in Denmark. Rappmarine.com

New line up of turbochargers from L’Orange At last month’s SMM 2016, Rolls-Royce Power Systems subsidiary L’Orange, more typically known for its fuel injection and exhaust after-treatment solutions, unveiled the newest addition to its product portfolio: turbochargers. The new turbocharger range is the result of a collaborative effort between L’Orange and MTU Friedrichshafen. Rolls-Royce says the new product range helps fill a market gap, and is specifically targeted to off-highway applications and power plants with high-speed diesel engines. Traditionally, according to Rolls-Royce, the world market for turbochargers has been dominated by car and commercial vehicle applications, where as the number for

charges built for industrial engines are on the lower end of the spectrum. “High performance, low consumption, reduced emissions and good interaction between all units – the requirements placed on engines are almost identical everywhere and they are increasing steadily,” said L’Orange’s Olav Altmann. “A single component cannot entirely address them, whereas harmonized systems can. This is why L’Orange opted for this business model expansion.” Depending on requirements, L’Orange offers high-performance turbochargers for small, medium and large diesel engines. The performance class is sufficient for volume flows from 0.2m3/s through to 3.5m3/s. The turbocharger is matched to the engines so that it delivers its performance over the entire range of engine specifications: at sea as well as at altitudes of 4,000 meters, and at low and at extremely high exterior temperatures. The sealing and bearing points are thermally isolated and, as needed, water-cooled. In order to limit the surface temperature, a water-cooled compressor spiral is used with supercharged engines, lightening the intercooler’s workload. www.lorange.com

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

Location

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

RECENT CONTRACTS All American Marine

Bellingham, WA

Tour Boat

Argosy Cruises

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Deck Barges

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PENDING CONTRACTS BAE Systems Southeast Mobile, AL 2 Dump Scows 7,700 cu. ft Great Lakes Dredge BAE Systems Southeast Jacksonville, FL 1 Tug 141 ft x 46 ft, 12,000 bhp Seabulk Tankers Inc. Sturgeon Bay, WI 1 ATB 8,000 hp / 155,000 bbl Plains All American Pipeline Bay Shipbuilding Bay Shipbuilding Sturgeon Bay, WI 1 ATB 185,000 bbl /8,000 hp undisclosed Vigor (Formerly Kvichak) Seattle, WA 30 Skimmers 30 ft 3 in x 9 ft 8 in U.S. Navy TBD 1 Double-end ferry 70-car similar to Pocohontas VDOT $25 3 Double-end ferries 4,500 PAX NYCDOT $328 TBD TBD 3 Pass/Vehicle ferries 1,000 PAX/100 vehicles DRBA $101

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

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KVH Industries, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . C3

BMT Fleet Technology. . . . . . . . . . . . . . . . . . . . . . . . . . 2

Marine Art of J. Clary. . . . . . . . . . . . . . . . . . . . . . . . . . 36

Centa Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Nautican. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C2

DNV-GL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

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FCI Watermakers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Omnithruster Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Furuno USA Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Regions Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C4

Great American Insurance Group . . . . . . . . . . . . . . . . 13

R.W. Fernstrum & Company. . . . . . . . . . . . . . . . . . . . 26

Gunderson Marine. . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Sea Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Hatton Marine. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Smith Berger Marine Inc . . . . . . . . . . . . . . . . . . . . . . 26

Horizon Shipbuilding Inc. . . . . . . . . . . . . . . . . . . . . . . 5

Viega. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Jensen Maritime Naval Architects & Marine Engineers. . . . . . . . . . . . . . . . . . . . . . . . 2

October 2016 MARINE LOG 37

marketplace ENGINEERS & ARCHITECTS

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wellness column

Next Evolution in Safety Management:

A Functioning Human Being

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

Safety management is at the forefront of almost every conversation in the commercial maritime industry. That conversation is incomplete, however, if it doesn’t address the single greatest limiting factor that can make or break the rest—a functioning human. Driven by ISM, our safety picture has been limited to reducing risk through the elimination of danger, augmenting engineering controls, training, and using “Barriers of Protection” that potentially shield us from injury or loss. This Hierarchy of Controls has been drilled into both management and mariners alike, through regulation and company implementation, while always keeping an eye on the bottom line. The conversation on safety rarely shifts to how we can build a safer, sharper, healthier sailor. A human that is better equipped both mentally and physically to adapt to the environment around him or her can employ better, more efficient Hierarchy of Controls. Managing our way to a stronger maritime workforce in body and mind, while desirable by both the management and mariner, makes the list of “lofty pursuits.” The irony, of course, is that I have never met a sailor who was afflicted with a life-threatening illness like Diabetes or PreDiabetes (of which about 50% statistically are), or Heart Disease (of which one in four will die) that said they did not want to feel

projects focusing on healthy nutrition, supporting education, and expansion of micro-nutrient content in the diet. Stewards cooked new recipes, low in glycemic load, while high and varied in micronutrient content. When these dishes were tested, between 85% and 100% of mariners’ voluntarily ate the new concoctions, and commented back. Feedback was swift and occasionally scathing, however, the continuous participation of 85-100% even after poorly received attempts, proved one thing to be true… mariners will engage, and keep engaging even if the picture is far from perfect. Although individual needs differed from mariner-to-mariner, overall these trials have found that we have the ability to engage people in lifestyle choices that are healthier, and can help build a better, more functional human. In the end, our safety and quality system’s success is not solely based on written procedures, training, or engineering controls. It is based on how we employ them on our worst, most tired and decrepit day. Raising our individual bar, at that moment, is where safety will truly take its most active and advanced form. The pursuit of wellness programs can pave the way for safety to become a well thought out choice. Engaging a mind that can plan, process and engage safely, and a body that can follow those decisions ensure our greatest, highest measure of performance.

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better and get off their medication. Nor have I run into a mariner or manager who did not say that they wanted to be stronger and sharper. Between what we desire physically and mentally and our perception of what we can effect on all sides (management and sailor alike) lays largely unexplored territory. Systematically working through these issues of wellness can bring us to a place where high performance, safety and health collide. Out of this collision, comes a work environment that changes the expectations we have of ourselves, safety, and our quality of service. Are lifestyle choices too far-fetched to manage? The answer is no. Trial projects and surveys conducted under the Crowley Mariner/Union Wellness Program that focus on our Four Anchors of Wellness identify that it can be explored and managed. When questions about Sleep, Nutrition, Behavioral Safety, and Safe Movement (Crowley’s Four Anchors of Wellness) are directed at our mariner crews and union collaborators, their desire to participate and expand their knowledge about human biochemistry and physiology is readily apparent. Survey responses identified that out of over 150 individuals within various Crowley fleets, 80-90% of them would want to participate in expanding their knowledge about the Four Anchors. From these survey results we launched trial

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

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

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

40 MARINE LOG October 2016

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

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

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*KVH is the world’s No. 1 maritime VSAT supplier as measured by vessels equipped with mini-VSAT Broadband service, according to Comsys, March 2015; Euroconsult, March 2014. ©2016 KVH Industries, Inc. KVH, TracPhone, myKVH, IP-MobileCast, and the unique light-colored dome with dark contrasting baseplate are trademarks of KVH Industries, Inc. mini-VSAT Broadband is a service mark of KVH Industries, Inc. Subject to change without notice.

WALL STREET CAPABILITIES. MAIN STREET SENSIBILITIES. We created Regions Securities® to provide small- to mid-cap companies with high-quality service and advice from talented, relationship-oriented bankers. That means your business gets our dedicated “A Team” every time. Our seasoned team of maritime bankers understands your company’s desire for growth, and our capital markets experience enables you to receive creative, customized solutions tailored to meet your company’s strategic and financial objectives. From capital raising in the debt and equity markets to mergers and acquisitions advice, our bankers can set things in motion for your company.

Tim Curry | Maritime Group Head tim.curry@regions.com

Corporate Banking | Capital Markets & Advisory Services | Comprehensive Financing Solutions | Industry Expertise © 2016 Regions Securities LLC. Regions Securities is the trade name for the corporate and investment banking services of Regions Bank and its affiliates. Securities activities and M&A advisory services are provided by Regions Securities LLC, 1180 W. Peachtree St. NW, Suite 1400, Atlanta, GA 30309, member FINRA and SIPC. Lending, financial risk management, and treasury and payment solutions are offered by Regions Bank. Deposit products are offered by Regions Bank, member FDIC. | Regions, the Regions logo and Regions Securities are registered trademarks of Regions Bank. The LifeGreen color is a trademark of Regions Bank.

Investment and Insurance Products: Are Not FDIC Insured | Are Not Bank Guaranteed | May Lose Value Are Not Deposits | Are Not Insured by Any Federal Government Agency Are Not a Condition of Any Banking Activity