WorkBoat March 2018

Lubricants • RIBs • Diesel Engines ®

IN BUSINESS ON THE COASTAL AND INLAND WATERS

MARCH 2018

Box Office The push for container-on-barge services picks up steam.

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ON THE COVER

®

The 3,000-hp tug Donal G. McAllister positions the container barge MARCH 2018 • VOLUME 75, NO. 3

Columbia Elizabeth at a terminal in Baltimore. Photo by Brian Gauvin

FEATURES 24 Vessel Report: Collared Overseas demand has given U.S. RIB and collared boatbuilders a boost.

34 Cover Story: Boxed In In the U.S., the effort to promote container-on-barge services continues.

BOATS & GEAR

24

28 On the Ways • Fincantieri Bay Shipbuilding delivers new 185,000-bbl.

ATB for Florida gasoline market • Weeks Marine takes delivery of 8,550-cu.-yd. capacity trailing suction hopper dredge from Eastern Shipbuilding • New 5,350-hp ocean tug underway at Hansen Boat for Dunlap Towing • Conrad delivers 3,000-hp towboat to Enterprise Marine Services • New 100' hybrid tug underway at Nichols Brothers for Baydelta Maritime • Vigor busy with wave energy converter for Ocean Energy • Modutech building 30' pusher tugs for the Navy • Alaska-class 100,000-bbl. ATB underway at Bollinger for Crowley • Washburn & Doughty to build two 5,100-hp hybrid Z-drive tugs for Louisiana

40 Power Up A peek at some of the latest diesel engines to hit the market.

42 Less Resistance More vessel operators appear to be making the switch to EALs.

42

AT A GLANCE 8 8 9 10 12 14 16

On the Water: Roger Wilco? — Part I. Captain’s Table: PVA convention honors two industry veterans.

Energy Level: More optimism in the offshore market.

WB Stock Index: WorkBoat stocks rise 6% in January.

Inland Insider: Can coal exports pick up the slack?

Insurance Watch: Adding to your liability insurance.

Legal Talk: Is the contract considered maritime?

NEWS LOG 18 18 19 20 20

Trump administration seeks to expand offshore drilling.

Court approves Seacor-Montco joint venture.

N.Y.-N.J. plan calls for 6 gigawatts of offshore wind power by 2030.

Semi-synthetic opioids added to Coast Guard mariner drug testing.

Jeffboat cites soft barge demand in second round of layoffs.

www.workboat.com • MARCH 2018 • WorkBoat

DEPARTMENTS 2 6 46 51 52

Editor’s Watch Mail Bag Port of Call Advertisers Index WB Looks Back

1

Editor'sWatch

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his month’s cover story is about an old idea that on its surface makes a lot of sense. It’s fairly simple. Take containers off of trucks and railcars and put them on barges, shrinking the carbon footprint and easing congestion on highways and other roadways.

Now that sounds like an idea that should be wildly successful. Well, not really.

Over the years, the federal government has helped fund and promote the idea — container-on-barge (COB) transportation services. But once the government funding ran out, the COB service would usually be discontinued.

For the private sector, it would be a money loser.

As editors Ken Hocke and Kirk Moore wrote in the story that begins on page 34, despite this, the national effort to develop COB services continues.

Why? In large part because of the nation’s transportation bottlenecks on land: choking highway traffic, delayed reinvestment in infrastructure, and the costs those impose on the public and private sectors. And the waterways can handle more traffic.

As Scott Davies of the Maritime Administration told WorkBoat, “the waterways are the only mode that has any major capacity available.”

He said that many highways around ports in major transport corridors are already at capacity, without enough money to make big improvements.

“We just don’t have the money in the Highway Trust Fund … the waterways is the only mode” with 25,000 miles including 30 major urban areas, Davies said. “The system is there, it requires a minimal amount of investment.”

Making better use of the waterways

David Krapf, Editor in Chief

for these services seems to make sense.

But unless the cargo and demand is there, and thus revenue, the private sector won’t jump in.

Davies said four factors must be there for a COB service to succeed.

First, the community must be on board, commit freight. Next, the players must have the right operational framework in place from the beginning — the correct vessels to handle the job. Third, public benefits must be a priority. That means less highway traffic and improved air quality. Finally, COB must not cost more than truck or rail.

These costs, as Davies said, must be aligned.

dkrapf@divcom.com

WORKBOAT® (ISSN 0043-8014) is published monthly by Diversified Business Communications and Diversified Publications, 121 Free St., P.O. Box 7438, Portland, ME 04112-7438. Editorial Office: P.O. Box 1348, Mandeville, LA 70470.

Annual Subscription Rates: U.S. $39; Canada $55; International $103. When available, extra copies of current issue are $4, all other issues and special issues are $5. For subscription customer service call (978) 671-0444. The publisher reserves the right to sell subscriptions to those who have purchasing power in the industry this publication serves. Periodicals postage paid at Portland, ME, and additional mailing offices. Circulation Office: 121 Free St., P.O. Box 7438, Portland, ME 04112-7438. From time to time, we make your name and address available to other companies whose products and services may interest you. If you prefer not to receive such mailings, please send a copy of your mailing label to: WorkBoat’s Mailing Preference Service, P.O. Box 7438, Portland, ME 04112. POSTMASTER: Send address changes to WORKBOAT, P.O. Box 1792, Lowell, MA 01853. Copyright 20 18

by Diversified Business Communications.

Printed in U.S.A.

www.workboat.com • MARCH 2018 • WorkBoat

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PUBLISHER

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EDITOR IN CHIEF

David Krapf dkrapf@divcom.com

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Ken Hocke khocke@divcom.com

ASSOCIATE EDITOR

Kirk Moore kmoore@divcom.com

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Plenty of offshore wind vessels

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he January 2018 issue of WorkBoat contained an article detailing the status of the offshore wind industry in the United States, “Wind Shift, Offshore wind, hybrid energy navigate political tides.” The article covered a wide range of issues, some of which showed a preference for new vessel construction over getting the offshore wind industry started.

Specifically, the article referred to a report published in November 2017, indicating the need for construction of a pair of Jones Act-compliant feeder barges, or a $222 million wind turbine installation vessel, as prerequisites to developing offshore wind here.

Given the concerns raised in the article about the perceived challenges in building U.S. offshore wind farms without purpose-built Jones Actcompliant vessels, it is disappointing

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that the article did not explore how the Block Island Wind Farm was built.

That story involves the use of both U.S. and foreign-flagged vessels working together, and it clearly demonstrates that new vessels are not needed to get the industry started.

The approach used at Block Island was not a new one either. For the past few decades, foreign-flagged drilling rigs have played a major role in the development of offshore oil resources in the U.S. Granted, there are operational constraints placed on drilling rigs that do not apply in offshore wind farm construction, but the economic model is similar. Fleets of U.S.-flag vessels move supplies, material and personnel efficiently between the rigs and the coast.

For the Block Island project, the jackets and decks for the turbine platforms were installed by U.S. operators (Weeks Marine and Montco Offshore) using U.S.-flag vessels. The vessels

that moved turbine components from the Port of Providence (R.I.) to the construction site at Block Island were typical, 235'-class liftboats, which were also owned and operated by Montco.

Assembly offshore was done by the MV Brave Tern, a foreign-flagged wind turbine installation vessel operated by Fred.Olsen Windcarrier. At no time during the build cycle was construction delayed by the delivery of components from Providence. In most cases, the feeder vessels were standing by and waiting to offload before the Brave Tern needed them. Given the current slowdown in work being experienced in the offshore oil industry, a fleet of capable vessels is not only available, but it is ready to go to work building the next U.S. offshore wind farm. The only thing that could change this would be a surge in activity in the offshore oil industry.

The discussion in the article about the need for new vessels is welcome

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news to a shipbuilding industry that is hungry for work. However, if it delays the start of offshore wind development, it is doing more harm than good. MiNO Marine has invested in concept design development for U.S.-flag wind turbine installation vessels and feeder vessels.

We have also worked closely with our clients to thoroughly understand the requirements and optimize these designs for the demands of working here. Based on the current market environment, however, the financial risk in committing to the construction of either of these takes those options off the table for now.

That leaves the approach used to build the Block Island Wind Farm as the best available alternative, and it is one that has been proven to work.

Kenneth J. Maloney Project Specialist, Naval Architect MiNO Marine LLC Jefferson, La.

Industry pulse is weak I always enjoy it when WorkBoat hits my mailbox each month. The first and last thing I do that day is to read it cover to cover.

In April, I will be 76. I am not personally affected by the industry’s health anymore, but I know where to look when I want to find out how things are going— and that is WorkBoat’s job pages.

Without reading a sentence of content and after a quick visit to your job section, I find the current industry pulse indicator. It seems, in a word, dismal at the moment. Fair winds and calm seas.

of these years. If you are referring specifically to the pulse of the offshore sector, then yes, it is weak. But several other workboat sectors, most notably passenger vessels, are doing fine.

WorkBoat encourages readers to write us about anything that appears in the magazine, on WorkBoat.com or pertains to the marine industry. To be published, letters must include the writer’s address and a daytime phone number.

Capt. Bruce Gregory USCG 100-ton Master of Power & Sail Atlantic Sail/Power Deliveries & Instruction Ridgefield Park, N.J.

Send letters to: workboat@cox.net MAIL BAG P.O. BOX 1348 Mandeville, LA 70470

Editor’s note: Bruce, thanks for writing and reading WorkBoat for all

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www.workboat.com • MARCH 2018 • WorkBoat

7

On the Water Roger Wilco? — Part I “

By Joel Milton

Joel Milton works on towing vessels.

He can be reached at joelmilton@ yahoo.com.

W

hat we’ve got here is failure to communicate,” was the famous line uttered

by Strother Martin in the 1967 classic motion picture “Cool Hand Luke” starring Paul Newman. This memorable line applies directly and indirectly to everything we do, or try to do, every day.

That’s because communication is the thread that runs through it all. It can literally make or break you.

There are many ways to describe the process. Here’s my short version. “Message sent” is not necessarily the same thing as “message received.” Message received is not the same as “message understood.” Message understood is not the same as “message acted upon.” And even if the message is nominally received, understood and acted upon in a timely manner, the achievement of the goal or goals may still break down.

The message may have been only partially received. And even if it is received in full, may have only been partially understood. As a result,

Captain’s Table

PVA convention honors two

A

By Capt. Alan Bernstein

Alan Bernstein, owner of BB Riverboats in Cincinnati, is a licensed master and a former president of the Passenger Vessel Association. He can be reached at 859-292-2449 or abernstein@ bbriverboats.com.

8

t the Passenger Vessel Association’s annual convention in Savannah, Ga., in January, two highlights stood out.

The first was when Coast Guard Adm. Linda Fagan, the deputy commandant for Operations, Policy, and Capabilities, presented the Coast Guard Distinguished Public Service Award to PVA’s longtime regulatory affairs director and retired Coast Guard captain Peter Lauridsen. It’s the highest Coast Guard award presented to a civilian and was given in recognition of the 29 years of leadership Lauridsen has exhibited at PVA in promoting passenger vessel safety.

In presenting the award, Adm. Fagan said that Lauridsen’s “tireless advocacy within the marine industry, Coast Guard and Congress has been a catalyst for change.”

Among other accomplishments, Pete was instrumental in establishing the PVA/Coast Guard Quality Partnership, which seeks non-regulatory solutions for issues of mutual concern.

the actions taken may or may not be in full accordance with the “clear” instructions provided, which may ultimately not have been so clear after all. And finally, the actions taken may simply end up being ineffective, which may or may not become immediately apparent to those executing the plan, directing it, or both.

The points of possible failure are many, and it’s an unforgiving environment. Roger Wilco (received and understood)? Well, maybe or maybe not.

The establishment of effective communications takes a lot of work. To retain it requires continued maintenance. It helps a great deal to periodically review the terminology, clarify the definitions and meanings of the various terms used, and thoroughly go over how it all works in the specific context of what you’re doing.

Operations change, and so do personnel. Everyone may not be speaking precisely the same language, literally or figuratively.

As time passes, good and bad habits can develop and become entrenched. No one is immune from this reality. It takes discipline to not take good communications for granted, assuming you had them in the first place.

The second big highlight was the induction of Capt. Robert Lumpp into the PVA Hall of Fame. A longtime friend and former business partner, Bob was inducted at the convention’s closing dinner aboard Savannah Riverboat Cruise’s Georgia Queen. PVA Hall of Fame inductees are recognized for having made significant contributions to PVA and the passenger vessel industry at large.

A self-described “river man,” Bob was a founding member of PVA in 1971 and served as PVA president. He owned and operated scores of riverboat excursion companies in numerous cities on the inland rivers and worked tirelessly through PVA to develop a program that advanced industry interests. Bob’s reputation for being highly detailoriented produced not only impeccable vessels but also highly successful businesses. From the beginning, he set the standard for others in the passenger vessel industry to follow.

In life, there are people we work with who make lasting impressions on us. In the case of Peter Lauridsen and Bob Lumpp, these are individuals who not only have made lasting impressions but who, as catalysts for change, have gone above and beyond to make enduring contributions to our industry. www.workboat.com • MARCH 2018 • WorkBoat

WORKBOAT GOM INDICATORS

Energy Level

.

NOV. '17 WTI Crude Oil 56.21 Baker Hughes Rig Count 20 IHS OSV Utilization 26.6% U.S. Oil Production (millions bpd) 9.7

DEC. '17 57.29 18 24.2% 9.8*

Sources: Baker-Hughes; IHS Markit; U.S. EIA

*Estimated

More optimism offshore

JAN. '18 63.38 16 25.4% 9.9*

JAN.'17 52.33 21 23.5% 8.9

GOM Rig Count GOM RIG COUNT

By Bill Pike 25

L

ast month I discussed how increasing development and decreasing costs offshore will likely stimulate activity in the U.S. Gulf of Mexico.

This month there is more positive news to talk about.

It’s the significant increase in the value of some offshore development assets, particularly jackup rigs. On top of that, in January the Trump administration said it would allow new offshore oil and gas drilling in nearly all U.S. coastal waters, giving energy companies access to new leases off California for the first time in years and opening more than a billion acres in the Arctic and the east and west coasts. But the move produced strong pushback from most non-Gulf of Mexico coastal states.

Almost immediately, the Trump administration had to rule out drilling for oil and gas off the coast of Florida due to strong opposition from Gov. Rick Scott, a Republican. Several other governors who also oppose the expansion of offshore drilling joined Scott. This included governors from New Jersey, Delaware, Maryland, Virginia, North Carolina, South Carolina, California, Oregon and Washington. California Attorney General Xavier Becerra joined the governors, demanding that drilling also be banned off his state’s coastline.

Thus, much of this potential boost to offshore activity is in jeopardy. The National Ocean Industries Association, an industry trade group, estimates that the Atlantic Ocean alone holds about 4.7 billion bbls. of oil and 37.5 trillion cu. ft. of natural gas (those estimates, however, are based on seismic surveys from more than 30 years ago).

A more positive item is that while U.S. Gulf of Mexico development continues to be hamstrung by lower costs and increasing production of onshore shale, the global offshore market

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is going well. This is reflected in an interesting side note from Londonbased VesselsValue Ltd. The company estimates that a five-year-old jackup in the international market has seen an increase in value of “36% from

www.workboat.com • MARCH 2018 • WorkBoat

January 2017, when a vessel was worth $69.9 million, to $95.14 million today.”

The boost in value is driven primarily by the increase in the price of oil. If the good news continues, that value increase will surely accrue to workboats.

9

WorkBoat Composite Index Stocks jump in January

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he WorkBoat Composite Index began 2018 with a bang, rising 134 points in January, or almost 6%. The index has now posted seven consecutive monthly increases. For the month, winners topped losers 19-10.

Among the top percentage gainers was Kirby Corp. The Houstonbased inland tank barge operator rose STOCK CHART INDEX COMPARISONS Operators Suppliers Shipyards Workboat Composite PHLX Oil Service Index Dow Jones Industrials Standard & Poors 500

over 12% in January. On Jan. 31, the company announced net earnings for the fourth quarter ended Dec. 31, 2017, of $231.3 million, or $3.87 per share, compared with $32.4 million, or 60 cents per share, a year earlier. Kirby was helped by a sizable one-time benefit related to U.S. tax reform, as well as impairment, severance and workforce early retirement charges.

Source: FinancialContent Inc. www.financialcontent.com

12/29/17 323.00 3877.64 3039.63 2288.15 149.55 24719.22 2673.61

1/31/18 314.78 4147.04 3273.92 2422.17 155.20 26149.39 2823.81

NET CHANGE -8.23 269.40 234.30 134.02 5.65 1430.17 150.20

For the complete up-to-date WorkBoat Stock Index, go to: workboat.com/resources/tools/workboat-composite-index/

PERCENT CHANGE -2.55 6.95 7.71 5.86 3.78 5.79 5.62

In the company’s Feb. 1 quarterly earnings call, Joe Pyne, Kirby’s chairman, said that in 2018 economists are projecting the largest GDP growth since the start of the downturn. This plus much of Kirby’s petrochemical demand is tied to consumer nondurable goods and the expectation that 30 new petrochemical plants will be completed in the next two years, Pyne said “we have a favorable long-term outlook for this business.”

“While parts of the marine transportation segment remain challenged, the inland business should begin to improve in 2018 as the industry rightsizes and consolidates,” Pyne added.

“We entered 2018 with optimism in our marine transportation businesses,” David Grzebinski, Kirby’s president and CEO, told analysts. “Demand for inland barges is expected to remain high ... ” — David Krapf

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Inland Insider Coal exports to the rescue?

T

he continued bad news from the domestic coal energy market has been interrupted lately by some sporadic positive boosts from increased exports.

A curious example is the shipment of 700,000 tons of steam coal from

Pennsylvania and West Virginia to Ukraine to displace Russian coal imports. Half of the tonnage, 350,000, will be anthracite coal that originated in central Pennsylvania in the heart of old hard coal country. The Pennsylvania coal will move by rail to Baltimore.

Another interesting coal export deal is Cloud Peak Energy’s long-term contract to deliver Powder River Basin coal to a new Japanese power plant.

Shipments are expected to begin at

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the end of 2019 and continue for 30 to 40 months, reaching up to one million metric tons in the final year of the

By Kevin Horn contract. The coal will be exported through Vancouver, British Columbia, transhipped there by rail.

There have been other reports of new coal exports moving by rail through Norfolk, Va., as well as the recent upswing in the Asia/China market. These coal export deals show that the U.S. can be a swing exporter when market conditions permit the sum of domestic production costs and delivered transportation costs to be competitive in world markets.

Compared to lower cost producers such as Australia and South America, the U.S. is often barely competitive once freight costs are factored in. In some cases small changes in world coal market conditions can make the U.S. uncompetitive.

Freight costs will be a major competitive factor for railroads and barge lines with substantial excess capacity in their respective coal sectors. This could be what determines whether the coal flows to the Lower Mississippi or alternative rail ports on the east and west coasts.

There is some optimism in the coal sector that increased exports will take up some of the slack from the domestic markets. However, as long as the U.S. is a swing export coal supplier, expect the continuation of the ups and downs in the export market characterized by relatively short-term contracts and small volumes cited in the aforementioned deals.

Until the U.S. can be a low cost producer and shipper, export coal will not become a sustaining sector to supplement the permanent loss of domestic coal.

Kevin Horn is a senior manager with GEC Inc., Delaplane, Va. He can be contacted at khorn@gecinc.com.

www.workboat.com • MARCH 2018 • WorkBoat

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Insurance Watch Additional liability insurance

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epending on the job description, employees are covered under their employer’s workers compensation, USL&H (Longshore and Harbor Workers Compensation Act) or Jones Act policy.

But what protects an employer when

an employee makes a claim against it?

Unless they have employment practices liability insurance (EPLI), they may be left with no coverage.

EPLI is used to cover claims made against an employer by an employee for discrimination, wrongful termi-

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nation, sexual harassment or retaliation. While these are the most common types of claims,

By Chris other claims could Richmond include failure to promote, invasion of privacy, defamation or negligent evaluation. One of the important parts of this coverage is defense cost. Unfortunately, most EPLI policies have defense costs inside the liability limits. In other words, the cost of your defense can eat up a good part of your total liability limits before any judgment is awarded. Thus, you should consider increasing your limits. Often the premium to add an additional $1 million of coverage is not huge.

Those covered under an EPLI policy are your employees, management, as well as your directors and officers. An endorsement can be added to the policy to include third-party coverage. This provides coverage for claims made against you by non-employees (think passengers).

Not long ago a client was informed

by OSHA that they were under investigation for a complaint made by a former employee under the Whistleblower Protection Act. The employee, who claimed he was fired for reporting an unsafe workplace, was a crewmember on one of the client’s vessels and thus the Seaman’s Protection Act came into play. Because the client had EPLI coverage, they were provided with legal counsel by the insurance company to help them sort out the situation.

EPLI can often be attached to a workers compensation policy, a directors and officers policy, or it can be written separately. Limits can vary so be sure to compare coverages. EPLI is an important part of risk management and one that can prove very useful in our litigious society.

Chris Richmond is a marine insurance agent and licensed mariner with Allen Insurance and Financial. He can be reached at 800-439-4311 or at crichmond@allenif.com.

www.workboat.com • MARCH 2018 • WorkBoat

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Legal Talk

efense and indemnity provisions are often worked into contracts to redirect liability exposure between parties. This is particularly true in the oil and gas industry where contractors and subcontractors typically agree to defend and “hold harmless” their cus-

tomers — large oil and gas companies.

Lawmakers in states such as Louisiana and Texas have outlawed many such contractual arrangements because of the unfair bargaining power oil and gas producers have over vendors and service providers. “Anti-indemnity” statutes put strict limitations on the circumstances under which one can be compelled to defend and indemnify another party for that other party’s own negligence and/or fault. However,

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defense and indemnity agreements generally have a safe harbor under federal maritime law.

By Daniel Hoerner Thus, the first priority in many contract disputes is determining whether the contract is “maritime” in nature.

This issue was front and center in the 5th Circuit’s decision in In Re: Larry Doiron Inc. issued in January.

The case refined the criteria for maritime contracts in the offshore exploration and production industry.

Historically, to determine whether a contract is maritime or non-maritime involved a tedious test with six factors. It considered everything from the general work contemplated by the contracting parties and the specific nature of the work actually being performed at the time the dispute arose, to whether and to what extent the performance of such work contributed to the mission of a vessel. The test often involved a very fact intensive inquiry that made defining a maritime contract an overly troublesome task.

In Re: Larry Doiron Inc. offers a more simplified formula. First, the new standard requires that the contract be specifically related to services needed for the drilling or production of oil and gas on navigable waters.

Then it must be shown that the parties agreed or reasonably expected that a vessel would play a substantial role in completion of the contract work.

If these basic factors are met, then a contract is considered maritime and beyond the reach (and limitations) of state law. But if the parties do not contemplate work on navigable waters and the use of a vessel to perform the work, then the contract will not be considered maritime and is subject to state law.

Daniel J. Hoerner is a maritime attorneywith Mouledoux, Bland, Legrand & Brackett LLC. He can be reached at 504595-3000 or dhoerner@mblb.com.

www.workboat.com • MARCH 2018 • WorkBoat 2/5/18 11:17 PM

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MARCH 2018

NEWS LOG NEWS BITTS SEACOR, MONTCO JOINT VENTURE APPROVED

A

Shell

Royal Dutch Shell’s Perdido platform could be the junction for exploiting a major Gulf of Mexico find.

Trump administration moves to expand offshore oil and gas exploration

T

he Trump administration’s move to expand new oil and gas exploration on the Outer Continental Shelf could be complicated by its sudden willingness to take the eastern Gulf of Mexico off the table.

“There is a clear difference between energy weakness and energy dominance,” Secretary of the Interior Ryan Zinke declared Jan. 4 in announcing a dramatic reversal of Obama administration policy.

But within a week, Zinke said he would remove Gulf and Atlantic waters off Florida from development of a new five-year offshore leasing plan — at the behest of Republican Florida Gov. Rick Scott, who insisted the Sunshine State has too much at risk from oil spills with its tourism economy.

The move stunned industry advocates, who had rejoiced days earlier.

18

“Disappointing and premature,” said Randall Luthi, president of the National Ocean Industries Association.

A month later, Zinke met with Democratic North Carolina Gov. Roy Cooper and a bipartisan group from the state’s coastal counties. “We’ve listened to our experts, and opening up our coast would put our economy, our environment, and our coastal communities at risk,” Cooper said in a statement following the Feb. 5 huddle.

Legal experts said Zinke’s snap reversal on Florida could open the Department of Interior to court challenges on how it is proceeding with the new offshore plan. It increased political pressure immediately, with governors of coastal states outside the Gulf of Mexico, Alaska and Maine promising to oppose new seismic testing permits and offshore leasing.

federal bankruptcy court approved a reorganization plan for Montco Offshore Inc., Galliano, La., that includes a new joint venture with Seacor Marine Holdings Inc., Houma, La. The joint venture will consolidate the ownership and operation of 11 liftboats currently operated by a wholly owned subsidiary of Seacor Marine, six liftboats currently operated by Montco, and two liftboats currently operated by an existing joint venture between affiliates of Montco and Seacor.

The venture also takes on $131 million in debt from Montco’s pre-bankruptcy petition credit facilities. Montco filed with the court in March 2017 and Seacor placed a stalking horse bid to form the joint venture in June.

“This is a strategic transaction that combines distinctive assets at compelling values, along with a solid financial and operational foundation,” John Gellert, Seacor Marine’s CEO, said in announcing the joint venture. “The transaction will allow us to provide our domestic and international customers with an expanded fleet and superior services in offshore oil and gas and wind energy markets.”

Founded in 1948, Montco has 99 employees and a fleet that includes two 335'-class liftboats, two 245' class and two 235' class. The 335' Jill, completed in 2014, is the newest. — David Krapf

With plentiful low priced U.S. oil supply onshore continuing to hold down the offshore sector, exploiting new east and west coast lease offerings will be years away. Meanwhile the western Gulf showed new promise, with an announcement by Royal Dutch Shell that its Whale discovery drilled at 23,000' was successful, just 10 miles from the company’s existing Perdido production platform.

— Kirk Moore

www.workboat.com • MARCH 2018 • WorkBoat

New York, New Jersey plan offshore wind power development

The liftboat Brave Tern installed towers for the Deepwater Wind Block Island wind farm off Rhode Island in August 2016.

fully sought to block an offshore wind project near one of his golf courses in Scotland.

But Secretary of the Interior Ryan Zinke said “offshore wind will play a big role” in energy plans, announcing draft guidelines to give wind farm developers more flexibility in their construction and operations plans. That move came just a week after Zinke said the Department of Interior will open much more of the Outer Continental Shelf (OCS) to oil and gas exploration.

“The Outer Continental Shelf’s offshore wind potential is a tremendous asset and part of the administration’s ‘America First Energy Plan’ to make it easier for industry to do business here,” said Zinke.

At the request of wind developers,

NYSERDA

ew York and New Jersey energy officials will look to develop nearly 6 gigawatts (GW) of offshore wind power by 2030, far beyond the already ambitious plans developers are laying out for existing federal leases along the mid-Atlantic coast.

New Jersey’s newly inaugurated Gov. Phil Murphy directed state utility regulators to implement the state’s Offshore Wind Renewable Energy Credit program, the first step toward building 1,100 megawatts (MW) of generation on federal leases off the Garden State.

“It will be a big game-changer in our economy … today New Jersey will end the nearly eight years of stalling and stonewalling,” Murphy said in announcing the move, a centerpiece in his 2017 election campaign to succeed former Gov. Chris Christie. “We’re going to create the good paying union jobs” with a new offshore energy sector, he said.

Ultimately, Murphy said, 3.5 GW could be developed on offshore leases — “the number-one aspirational wind field in the world” — more than even the 2.4-GW plan released Jan. 29 by New York state officials.

With leases now off New Jersey, the first turbine could be operating in the early 2020s on areas held by U.S. Wind and Ørsted (formerly Dong Energy), the Danish energy group that has also established a foothold with federal leasing off Massachusetts.

The push from the two heavily urban, power-hungry states comes as the Trump administration finally signaled official support for offshore wind development — a lingering question for the wind power industry and its political rivals, given President Trump’s ambiguous signals.

In public speeches during the 2016 presidential campaign Trump had been critical of wind power, calling it unreliable and a killer of birds. In his own business career, Trump unsuccess-

Deepwater Wind

N

New York and New Jersey want to develop nearly 6 gigawatts of offshore wind power by 2020.

www.workboat.com • MARCH 2018 • WorkBoat

the Bureau of Ocean Energy Management will give them the option of using a “design envelope” approach to planning, which would account for the rapid pace of development in the industry.

That means plans for wind arrays off the East Coast for the mid-2020s will be allowed to delay some key decisions, such as their choice of turbine size and models, until later in the process “at the more commercially advantageous time,” according to Interior officials.

A 60-page master plan by the New York State Energy Research and Development Authority (NYSERDA) calls for a first stage of 800 MW of offshore wind to grow three-fold by 2030, with the potential for $6 billion in investment and 5,000 new jobs.

It identifies more than one million acres off New York and New Jersey as the “area for consideration” for future arrays of hundreds of turbines – in the middle of the New York Bight, that right-angle corner of the U.S. East Coast that has some of its busiest shipping lanes and fishing areas.

The NYSERDA plans to set up a maritime technical working group including representatives from the Coast Guard, Port Authority of New York and New Jersey, the port’s Harbor Operations and Safety Committee, and other commercial and recreational boating interests. That group and a similar collective representing the fishing industry will help develop and implement best management practices to avoid or minimize impacts and user conflicts, the report said. — K. Moore 19

OxyContin, other opioids added to mariners’ drug testing

A

growing national epidemic prompted the U.S. Department of Transportation to add semi-synthetic opioids to the list of drugs that mariners in safety-sensitive positions will be tested for.

Starting this year transportation workers will be subject to testing for hydrocodone, hydromorphone, oxymorphone, and oxycodone, which the Coast Guard describes as the most common prescription drugs of abuse. Common names for these opioids include OxyContin, Percodan, Percocet, Vicodin, Lortab, Norco, Dilaudid and Exalgo.

Mariners are now tested for marijuana, cocaine, amphetamines, phencyclidine (PCP), and opiates such as heroin.

Mariners who test positive for synthetic opioids will have to provide

a valid prescription to the medical review officer, the Coast Guard said in a recent bulletin. If there’s a legitimate medical explanation, the mariner will receive a negative result. If not, the examiner will report a positive result, and the employer must take the mariner off safety-sensitive duties and notify the Coast Guard.

“The opioid crisis is a threat to public safety when it involves safetysensitive employees involved in the operation of any kind of vehicle or transport,” DOT Secretary Elaine Chao said in announcing the final rule. “The ability to test for a broader range of opioids will advance transportation safety significantly and provide another deterrence to opioid abuse, which will better protect the public and ultimately save lives.”

The Coast Guard also has kept the 2018 minimum random drug-testing rate at 25% of covered crewmembers.

Five years ago, the agency lowered the rate from 50% to 25% because of good results.

The Coast Guard can reduce the rate if positive tests come in at less than 1% of covered crew. It also can raise the percentage if the positive tests exceed 1%, or if the testing data is subpar.

Industry groups welcomed the change, saying it would cut operators’ costs while not changing their commitment to drug-free workplaces.

— Dale K. DuPont

More layoffs planned at inland barge builder Jeffboat

A

mid a continuing three-year downturn in new barge demand, Jeffboat embarked on a second round of layoffs at its Jeffersonville, Ind., shipyard, raising job losses to over 500 by spring 2018.

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Legal Talk

In a Feb. 1 layoff notice to Indiana state labor officials, Jeffboat senior vice president and general counsel Dawn a dramatic falloff The Landry legalcited significance in customer demand. of a release After 278 layoffs that began in any commercial arebe November, another 226vessels jobs will equipped with quick-release towshed through at least April at the Ohio ing hooks.

These ingenious contrapRiver facility, reportedly the largest tionsoldest enable crewsshipyard to part ways and inland in thewith nataut towlines quickly with or tion. Jeffboat does not planatolanyard close the actuator.

Since such lines can present a shipyard “but we expect the separations danger to personnel, the idea of releaswill be permanent” as defined by law, ingcompany’s them in a swift clean manner the noticeand said. makes sense.

In its annual January survey, River Releasing lines and parting Transport News reported total ways tank in one fell swoop could also mirror how barge deliveries for inland operators parties a lawsuit feel when they’re were justin85 new bottoms in 2017, finishing at and the end.

Whether down 24%things from up 2016 the lowest the matter a shipyard dispute since 2003.involves That contrasted with a or injury, everyone wants to new movetank on peak for shipbuilders of 344 after a in settlement has beentoreached. barges 2014, according RTN. AfterAlso longinnegotiations, settlement terms February, Houston-based can beCorp., reduced to a single form called Kirby operator of the nation’s a release.

Jeffboat

M

Like the quick-release towing hook, theBarges releaseunder formconstruction enables parties to at Jeffboat’s Indiana yard. decisive conclude things in a clean, manner. A release basically says that in exchange for this many dollars, the plaintiff releases the other side from all further claims. “Sign this, take the money, and we’re done here.”

A recent lawsuit in Seattle demonstrates that releases are taken seriously (Castro v. Tri Marine Fish Company).

The matter involved a crewmember on a commercial fishing vessel. It could just as well have been an OSV or passenger vessel. What’s important is that a release was signed and the court recognized its significance.

The crewmember had been hired in American Samoa as a deckhand.

His employment contract contained a clauseinland calling forbarge arbitration there. largest tank fleet, anAbout two weekspay later, he was injured nounced it would $419 million to and wasHigman taken to Marine the Philippines forof acquire Inc., also surgery. While he expressed Houston, and itsrecovering, fleet of 30,000-bbl. interest in settling his claim.

WWW.WORKBOAT.COM NEWS FOR THE COMMERCIAL MARINE INDUSTRY.

He and the vessel interests agreed upon a settlement figure. The deckhand signed a release that included the statement, “This is a release. I By Tim Akpinar am giving up every right I have.” Based on this, a maritime arbitrator sealed the deal with an arbitration award.

The deckhand then brought legal action against the vessel interests in Washington state. The vessel interests moved to enforce the arbitration award, which was based on the release signed by the deckhand. The court ruled in favor of the vessel interests. This showed the significance of a release and the weight given to them by courts. inland tank barges.

Tim Akpinar is a Little159 Neck, N.Y.-based Adding Higman’s barges and maritime attorney marine 75 towboats, with and theirformer average ages engineer.

He can beyears reached at 718-224of seven and eight respectively, 9824 or t.akpinar@verizon.net.

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brings one of the industry’s younger fleets into the Kirby fold and enables the company to avoid significant future expense for newbuild vessels, said David Grzebinski, president and CEO of Kirby.

“The acquisition of Higman and its young fleet of well-maintained inland tank barges and towboats is an excellent fit with Kirby’s operations,” Grzebinski said in a statement announcing the purchase. Along with the tank barges — about 80% clean and 20% heated black oil vessels — “the addition of Higman’s towboats to Kirby’s horsepower profile will allow us to avoid significant future capital outlays for new towboats,” he said.

Kirby had already pulled back on new construction for its fleet, but in its fourth-quarter 2017 earnings report company officials sounded a cautiously optimistic note that 2018 could see improvement in the tank barge market.

NEWS BITTS TOTE DELAYS PLAN FOR NEW HAWAII SHIPS

F

aced with a need for more upgrades at Honolulu port facilities, Seattle-based Tote delayed its plan for four new Jones Act containerships to serve Hawaii.

Tote and Philly Shipyard Inc. (PSI) let a letter of intent for building the four dual-fuel capable liquefied natural gas ships expire Jan. 31. The Philadelphia shipbuilder said that they have suspended most work on the project but intend to resume “when there is more clarity regarding the new order situation and related capital requirements.”

The dual-fuel LNG ships would be modeled on the two Aloha-class 3,600-TEU containerships that PSI is building for Honolulu-based Matson Inc. Those 853'x115'x38' vessels will be delivered before a 2020 deadline to replace aging ships in the Hawaii trade that can no longer meet air emission standards. Tote could still enter the trade, but will need more time, company officials said. “Tote continues to be open to working with the Hawaii Department of Transportation to update plans and a timeline for access to a Honolulu deep water terminal that would allow commencement of Tote’s service to Hawaii,” the company said. — K. Moore

IN

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— K. Moore

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23

RIBs/Collared Boats

Collared

RIBs and collared boats are a big part of military and police fleets.

By Kirk Moore, Associate Editor, and Ken Hocke, Senior Editor

S

ince 9/11 the patrol boat category has led the way in the number of deliveries each year in WorkBoat’s Annual Construction Survey.

Many of these boats — military, state-owned or municiple government-owned — are rigid inflatable boats (RIBs) or vessels with some type of foam or foam/air collar.

Money from the federal government has picked up the tab for the majority of the costs of these boats in the name of national security. Local

governments whose marine fleets needed an upgrade but whose coffers were dry took advantage of the post 9/11 federal grants.

Though the Port Security Grant Program and other federal grant programs has slowed over the last few years, the Navy and Coast Guard are still building patrol boats by the dozens.

But overseas demand for several U.S. boat manufacturers has been strong and has helped to pick up the slack.

Safe Boats International

Safe Boats’s 41' multimission interceptor performs as its name suggests.

DELIVERIES “We have seen softening in the domestic federal and local/state law enforcement patrol boat markets over the past couple years, but international opportunities are growing significantly,” said Safe Boats International’s Kevin Rowlee, director of sales and marketing. “As the worldwide economy continues to grow and increased maritime capabilities become a priority, countries that would not have had the funding to purchase our boats, 24

previously choosing to buy the most local and cheapest available option, are now looking closer at life cycle costs, past performance, durability and crew safety. (They are) acknowledging the value of high performance aluminum boats with foam collars that are designed for their specific missions.

“Collar systems can certainly act as fenders, but more importantly give protection from damage caused by impacts from objects and other vessels while underway,” Rowlee said.

Safe Boats is in the middle of two large U.S. government contracts — the 104-unit Coast Guard over-the-horizon (OTH) cutter boat and 52-unit Customs and Border Protection coastal interceptor vessel (CIV).

“We have many other contracts for delivery this year to international customers in regions like South America, Middle East and others sold through both U.S. Foreign Military Sales (FMS) or direct to the end user in-country,” said Rowlee.

www.workboat.com • MARCH 2018 • WorkBoat

Ribcraft

Safe Boats International

The company’s standard models range from 23' to 85', with either inboard or outboard engines, and come in a variety of designs including center console, interceptor, walk around cabin, emergency medical transport or full cabin. Although known for its smaller, foam collared craft, Safe Boats is building the Navy’s 85' Mk VI patrol boat. Its newest model is the 35' multimission interceptor (MMI).

Safe Boats’ collar system is 100% foam, and unlike air filled systems cannot be deflated by weapons fire or other unforeseen impacts, keeping the vessels on the water and not in the repair shop, said Rowlee. “Our collars are designed for floatation and stabilization and are a key component of the unmatched performance in stability and cornering which our boats are known for.”

Marblehead, Mass.-based Ribcraft recently delivered a specialized 25' RIB to the Edgartown (Mass.) Harbormaster Department. The RIB, designed for year-round, all-weather operation, features a two person console enclosure.

The harbormaster’s office needed “a boat that could handle search and rescue operations, patrols, and mooring management duties,” said Kelly Marie, a Ribcraft spokesperson. “This purpose-built Ribcraft 7.8 provides the department with excellent open deck space for patients, easy access for officer boardings, unobstructed views, and most importantly a comfortable platform for long hours on the water.”

Safe Boats has delivered numerous over-thehorizon cutter boats to the Coast Guard since signing the contract in 2012.

Powered by a 250-hp Yamaha, the boat will reach speeds in excess of 50 mph, allowing the harbormaster to monitor its 900 moorings spread across six locations.

Last year Ribcraft unveiled its newest and largest model, the 41' 12.5 rigid inflatable boat (RIB), with the delivery of a specialized Subchapter T-certified tour boat for Cape Rib Tours, Hyannis, Mass.

The Cape Rib tour boat carries up to 34 guests for whale watch trips, sightseeing tours and high speed thrill rides, riding a combination of 29 jockey-style pod seats and a large aft bench. With its configuration for adventure tours, the 12.5 is ringed with a heavy duty yellow Hypalon tube, an extended canopy top with an integrated swim ladder, and a marine head.

Powered by triple 350-hp Mercury Verado outboards, the 12.5 reaches speeds in excess of 50 mph, with a bowthruster for close quarters maneuvering. The 12.5 is also available with twin inboard diesel I/O or waterjets.

25' RIB from Ribcraft for Edgartown, Mass., during sea trials.

www.workboat.com • MARCH 2018 • WorkBoat

While the first example was built for tour operators, Ribcraft is also marketing the 12.5 as “the ultimate offshore platform” for potential customers in the security and patrol, and military markets.

The design is made for offshore passages and operations requiring large crew and payload capacities.

Ribcraft also delivered two Subchapter T 30' 9.0 tour boats to the Four Seasons Hualalai Resort, KailuaKona, Hawaii, and Aquaadventure Tours, North Palm Beach, Fla. Inventech Marine/Life Proof Boats, Bremerton, Wash., specializes in two types of collar boats — foam collar and an air hybrid collar, which combines foam and air bladders.

Recent foam collar boat deliveries, ranging in size from 23' to 40', include Western Price Whale Watching, Seattle Boat Company, Washington State Parks and Recreation and the Lincoln County (Wash.) Sheriff’s Office. Air hybrid collar boat deliveries include a 22' RIB for the Thurston County (Wash.) Sheriff’s Office and a 40' passenger vessel for the Maui Snorkel Co. “We have done a lot more foam collared boats than we have hybrid collar boats, but I think now that we have our patent on the collar technology it will start to revolutionize the RIB industry,” said Micah Bowers, the company’s CEO. “We have had the Coast Guard out on multiple occasions to inspect our Sub-T boats and they love the concept of the foam hybrid collar for the RIB industry because of the safety factor it brings. It is a ‘run flat’ collar.”

25

Inventech Marine Solutions/ Life Proof Boats

RIBs/Collared Boats

Inventech collar standing up to a chainsaw, arrow, machete and more.

Bowers said the hybrid collar is about 80% foam and the bladders are easy to fix. “Almost like an inner tube on a bicycle,” he said.

MORE OPTIONS The Puerto Rico Police Department (PRPD) has been updating its fleet with aluminum hull vessels from

Metal Shark. The latest from the company’s Jeanerette, La., production facility, a 35' Defiant-class welded aluminum pilothouse vessel, included a Wing urethane-sheathed, closed-cellfoam collar.

The collar provides RIB-like impact protection during docking, boarding, or other alongside maneuvers, while

port and starboard dive reliefs facilitate water access, shipyard officials said.

With three Mercury 300-hp Verado four-stroke outboards, the vessel can operate offshore in speeds over 45 knots. It was the first new boat to enter service with the PRPD after Hurricane Maria devastated the Puerto Rico in September, and immediately went to work in hurricane recovery operations.

Brunswick Commercial and Government Products is marketing its 26'2"×10' 850 Impact D-Collar multipurpose boat. Among the 850 Impact’s features are a hybrid air/ foam-filled collar mounted to a solid fiberglass gunwale instead of a fully circular tube. The boat’s Impact D collar allows for more space on deck and added maneuverability and versatility for the crew. The D-Collar is designed to give customers the best characteristics of a standard fiberglass hull with the benefits of a RIB.

C.N.C. Machined Propeller Shafting, C.N.C. Machined Propeller Shafting,Duramax Custom Machined Shaft Couplings, Custom Machined Shaft Couplings, Duramax StrutStrut Bearings, Struts, Rudders, Bearings, Struts, Rudders, Michigan Propellers MichiganWheel Wheel Propellers

26

www.workboat.com • MARCH 2018 • WorkBoat

CONSTRUCTION ACTIVITY AT WORKBOAT YARDS

On TheWays

ON THE WAYS Bay Shipbuilding delivers 8,000-hp ATB to Wawa

L

ate last year, Fincantieri Bay Shipbuilding, Sturgeon Bay, Wis., delivered an articulated tug-barge unit (ATB) to Wawa Inc. The Media, Pa.-based company has a growing fuel business in Florida and sells about 2% of the gasoline sold in the U.S. It will use the new ATB to supply its growing network of retail locations in Florida, which was expected to number 140 by the end of last year. Keystone Shipping Co. is managing the new ATB. The 578'1"×78'×42' barge 1964 and its 8,000-hp, 129'4"×42'×23' tug, Millville, were christened at Fincantieri Bay Shipbuilding late last year. The new ATB reportedly has a capacity of 185,000 bbls. It is designed to operate in an integrated manner to provide a cost-efficient and flexible solution for hauling gasoline from the western Gulf of Mexico to Tampa, Fla., to support Wawa’s Florida market. The tug and barge are mated by an Intercon lightering capable 50" coupler with integral load box and all necessary control components and accessories.

Designed by Guarino & Cox, the ATB has tankage capacities of 153,000 gals. of fuel oil; 17,000 gals. potable water; 2,000 gals. main engine lube oil; 1,500 gals. generator engine lube oil; 1,500 gals. gear oil; and 1,000 gals. hydraulic oil.

The 1964 features an inert gas system (with I.G. generator), tank wash system, and four segregation cargo systems with Byron Jackson cargo pumps driven by John Deere engines, two self-contained hydraulic cranes, and an Optimarin ballast water treatment system.

“Fincantieri Bay Shipbuilding’s distinguished history of 28

building ATBs, the significant investment Fincantieri has made in its facilities over the past decade, and the quality of the entire staff at the yard were meaningful factors in our decision to work with Fincantieri on this project,” Wawa senior vice president Brian Schaller said in a statement announcing the delivery. “While there are multiple shipbuilding facilities along the East and Gulf coasts, our partners in the Great Lakes have the reputation and expertise to skillfully craft the vessel we dreamed of.”

The tug’s main propulsion comes from twin GE 12V250MDC, turbocharged, Tier 4 diesel engines, producing 4,218 hp at 900 rpm each. The mains connect to 130" heavy-duty, 4-bladed nibral Nautican propellers in stainless steel nozzles through Reintjes WAF 4555 marine gears. The ATB has a fully loaded speed of 11.5 knots.

“We are delighted to have had the opportunity to build Wawa’s first owned vessel and support their growing business,” said Todd Thayse, the shipyard’s vice president and general manager.

Ship’s service power is provided by three John Deere 6068AFM85-powered gensets, sparking 150 kW of electrical power each. The generators are skid mounted on vibration isolators.

Among the classifications and certifications the ATB carries are ABS certified Maltese Cross A1 towing vessel, Maltese Cross AMS, ABCU, UWILD, CPS, Anti-Fouling Systems; SOLAS; Panama Canal Tonnage Certificate; International Loadline Certificate and USCG certified, Subchapter C. — Ken Hocke www.workboat.com • MARCH 2018 • WorkBoat

Fincantieri Bay Shipbuilding

The new ATB is hauling gasoline to Florida to supply a growing network of retail locations.

Eastern completes trailing suction hopper dredge n late December, Eastern Shipbuilding Group, Panama City, Fla., delivered the 356'×79'6"×27'3" trailing suction hopper dredge Magdalen to Weeks Marine Inc., Cranford, N.J. The design and detailed engineering and the dredging equipment were provided by Dredge Technology Corp.

(DTC), part of the Royal IHC Merwede International Group. Initially, the vessel was to be built by BAE Systems Southeast Shipyard, Mobile, Ala., where the keel was laid in 2012.

Weeks Marine contracted Eastern in 2015 to finish the dredge.

“From the outset of this project, the construction of the Magdalen has been an exceptionally challenging and rewarding experience. Fortunately for Weeks, the dubious start gave way to an extraordinarily successful finish, due in large part to the capabilities of Eastern Shipbuilding,” J. Stephen Chatry, senior vice president, Weeks Marine, said in a statement announcing the delivery. “In retrospect, the delivery of the Magdalen has everything to do with the partnership that was forged between Eastern, IHC and Weeks during the build.”

The Magdalen features two booster pumps, powered at 1,600 kW each, and an HD dredge pump, powered at 1,600 kW. There are two jet pumps, pow-

Eastern Shipbuilding Group

I

New trailing suction hopper dredge has a hopper capacity of 8,550 cu. yards.

ered at 445 kW each. Hopper capacity is 8,550 cu. yards.

Main propulsion comes from twin GE 16V250 diesel engines, producing 5,682 hp each. For added maneuverability there is a VFD fixed pitch bowthruster tunnel unit, producing 730 kW of power. Electrical power comes from two 3,400-kW gensets, a GE 6L250, 1,423-kW auxiliary genset and a Caterpillar C18, 425-kW emergency genset. The new dredge’s maneuverability is enhanced by a 730-kW variable frequency drive fixed pitch tunnel bowthruster. (Names of the main generators, pump, and bowthruster manufacturers were not released.)

The Magdalen is Lloyd’s classed Maltese Cross 100A1 Hopper Dredge, LMC, UMS registered and USCG certified and U.S. flagged.

“This successful project was the result of a close working relationship between Weeks and ESG,” Joey D’Isernia, Eastern’s president said.

Dunlap Towing

The new 112' tug will be haul barges from Seattle to Hawaii and back.

www.workboat.com • MARCH 2018 • WorkBoat

“The completion of a partially constructed dredge requires clear and open communication by both parties during the bidding phase and the execution phase. We thoroughly enjoyed working with Weeks on this project and look forward to seeing the Magdalen positively impact the Jones Act dredging market.”

Weeks Marine is another Eastern repeat client. The new dredge continues the shipyard’s commitment to the U.S. Jones Act maritime industry, Eastern officials said.

— K. Hocke

Hansen Boat building new 112' tug for Dunlap Towing

T

he Sigrid Dunlap slid down the Hansen Boat Co. ways in Everett, Wash., on Jan. 20. The 112'×38'×18'3" ocean tug was designed by Hockema Whalen Myers Associates in Seattle for Dunlap Towing in Everett.

The new tug (named for the grandmother of Dunlap Towing president Jim Dunlap) will haul barges from Seattle to Hawaii and back for Alaska Marine Lines. Sigrid Dunlap is a near sistership to the Phyllis Dunlap, which was also designed by Hockema Whalen Myers Associates and built by Hansen in 2001.

Put the Sigrid Dunlap and the Phyllis Dunlap bow to stern at a dock and “they look pretty much identical,” said Michael Whalen the new tug’s primary naval architect. “The idea was to try to keep it as similar as possible because they knew what they had with the Phyllis and were happy with that boat.”

Changes made to the Sigrid won’t be noticeable at the dock. One major 29

On TheWays alteration, said Whalen, is while the Phyllis Dunlap has a partial double bottom in the engine room, the Sigrid Dunlap has a full double bottom. “It’s to protect against unintentional flooding in the engine room if they were to ground the boat.”

The Sigrid has a bit more horsepower with a pair of Caterpillar C175-16 main engines. Each one generates 2,675 hp at 1,600 rpm, versus 2,548 hp at 900 rpm from the Phyllis Dunlap’s Caterpillar 3606 engines. There are 120" props inside Nautican nozzles with triple rudders. With this propulsion package, Whalen expects the Sigrid Dunlap to run about 14 knots without a tow and probably average nine to 10 knots with a tow. Bollard pull should be around 180,000 lbs.

On the new tug’s stern is a double-

drum Markey TDSDS-36 tow winch.

One drum holds 3,100' of 2¼" wire, while the second drum packs 2,200' of 1¼" wire. On the bow is a Markey DESW 32-20 hawser winch.

There are accommodations for 12 crewmen in seven staterooms with five staterooms rated for two people, though Whalen said there’s typically just one person per stateroom.

The Sigrid Dunlap should be completed and delivered this spring. While that work is going on, Hansen Boat is building a third tug, designed along the same lines as the Phyllis Dunlap and the Sigrid Dunlap, for delivery in 2019. Like those two tugs, the unnamed third tug will be ABS classed and SOLAS certified for international voyages.

—Michael Crowley

Conrad delivers 3,000-hp towboat to Enterprise Marine

C

onrad Shipyard, Morgan City, La., delivered the 102'×36'×11' twin-screw pushboat Ray S to Houstonbased Enterprise Marine Services in late 2017. The boat was built at Conrad’s Amelia, La., facility and christened in January at Enterprise’s Houma, La., location. This is the fourth boat Conrad has built for Enterprise.

“We wanted the versatility that this boat gives us as a 3,000-horsepower boat that can run on the river or Intracoastal (Waterway),” Jacob Brown, Enterprise’s director, marine maintenance, construction and shipyard operations, said. “Conrad is a quality shipyard that produces quality products at a quality price.”

BOATBUILDING BITTS ichols Brothers Boat Builders, Seattle, is building a new 100'×40' hybrid tug for San Francisco-based Baydelta Maritime. Designed by Jensen Maritime, also located in Seattle, the new tug will use RollsRoyce hybrid technology. The new tug is the first installation of a hybrid system for the shipyard and the first hybrid tug designed by Jensen to enter the construction phase. The tug is scheduled for delivery in the first quarter 2019. It will be powered by two Caterpillar C3516 C Tier 3 diesel engines, each rated at 1,995 kW at 1,600 rpm (5,350 total hp), supplied by Peterson Power, Portland, Ore., and by two Rolls-Royce supplied 424-kW electric motors. The Z-drive system — two Rolls-Royce 255FP units — can accept power from the diesel engines, electric motors and from both power sources. The electric motors are powered by three Cat C9.3 300-kw generators, which are 480V three-phase at 1,800 rpm, and one harbor generator, a Cat C7.1 150-kW 480V, three-phase at 1,800 rpm.

Jensen Maritime

100' Z-drive hybrid tug for Baydelta.

30

Vigor

N

125' wave energy converter will be deployed in Hawaii.

Vigor, Portland, Ore., is building the 125'×59' wave energy converter OE Buoy for Ocean Energy Group, Cobh, Ireland, and its subsidiary, Ocean Energy USA. With a 31' draft, OE Buoy will be deployed at the U.S. Navy’s Wave Energy Test Site (WETS) on the windward coast of the Hawaiian island of Oahu in the fall of 2018. The contract value is $6.5 million out of a total project value of $12 million for this first of a kind grid scale project at the Navy WETS. The project is partly funded by the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy (EERE) and the Sustainable Energy Authority of Ireland (SEAI), under an agreement committing the U.S. and Ireland governments to collaborating on marine hydrokinetic technologies.

The Navy has 24 tugs, designated work boat medium, on order from Modutech Marine Inc., Tacoma, Wash.

The first was delivered in December with the others to follow in regular intervals through December 2019. The Navy requires efficient and handy boats to support its

www.workboat.com • MARCH 2018 • WorkBoat

Main propulsion comes from a pair of Caterpillar 3512C, Tier 3, diesels, producing 1,500 hp at 1,600 rpm each.

The Cats are hooked up to HS Marine 4-bladed, stainless steel 88"×64" wheels through Twin Disc MGX- 5600 marine gears with 6:1 reduction ratios.

“Cat is just a very reliable piece of equipment,” said Brown.

With a 9' operational draft, the pushboat has a 35'2" line of sight and an air draft of 43'6". There are accommodations for eight crewmembers.

Ship’s service power comes from a

ships. To meet this requirement John Myers of the Seattle-based naval architect firm Hockema & Whalen and Associates developed a 30'×15' tug with a 5'6" draft. In order to handle some heavy pushing, a pair of Cummins QSL 9 diesels, each delivering 285 hp continuous duty, will power the tugs. The engines turn nozzled 39"×36" propellers through ZF W325 gears with 3:1 reduction ratios. Triple shutter-type rudders are mounted behind each prop. The combined 570 hp will give the 30' tugs a bollard pull of 17,500 lbs.

US Workboats, Hubert, N.C., is building a new aluminum, 92'×26'×7' passenger-only ferry for the North Carolina Department of Transportation for its ferry operations between Hatteras, N.C., and Ocracoke Island, a popular tourist destination located on North Carolina’s Outer Banks. Main propulsion will come from four Caterpillar C-18 diesel engines, producing 805 hp at 2,300 rpm each. The Cats will connect to Thrustmaster waterjets to produce an operating speed of 28 knots.

Ship’s service power will come from twin Northern Lights 40-kW gensets. The new ferry will be delivered this summer.

Bollinger Shipyards is building a new Alaska-class 100,000-bbl. articulated tug-barge (ATB) to transport clean petroleum products in the Alaska market for Crowley Fuels LLC. The Alaska-class vessel will be built at Bollinger Marine Fabricators in Amelia, La., with delivery estimated for the fourth quarter of 2019.

The contract with Bollinger includes an option to build a

www.workboat.com • MARCH 2018 • WorkBoat

— K. Hocke

30' tugs for the Navy from Modutech Marine.

Cummins Marine

Ken Hocke

New 102' towboat Ray S was christened in Houma, La., in January.

pair of Kohler generators powered by John Deere diesels, sparking 99 kW of electricity each.

Tankage includes 56,000 gals. of fuel; 700 gals. lube oil; 350 gals. gear oil; 350 gals. hydraulic oil; and 18,000 gals. potable water.

“This boat was built to Subchapter M requirements,” said Brown. “We put our fleet through a rigorous maintenance program back in 2010, so we’ve been monitoring Subchapter M from the front side of it. Once the Coast Guard starts issuing COIs, we don’t expect any problems.”

The boat was named for Ray S. Sick, who retired from Enterprise in 2016, after 30 years with the company. Sick was a key contributor in the early transition of Enterprise’s Houma facility.

second ATB. Crowley’s marine solutions group has been contracted to provide vessel construction management services in the shipyard from final design phase through delivery.

Washburn & Doughty, East Boothbay, Maine, has been awarded a contract with Harbor Docking and Towing, Lake Charles, La., to design and build two 93'×38' hybrid Z-drive tugs. The 5,100-hp tugs will be built as harbor assist vessels under Subchapter M requirements and admeasure less than 200 gross tons U.S. regulatory tonnage. Caterpillar Marine will provide a “stem-to-stern” Cat content hybrid propulsion system, with support from both Milton Cat and Louisiana Cat. The hybrid propulsion system includes twin 3512E main engines, producing 2,550 hp at 1,800 rpm, each, two C18 generator sets, sparking 565 kW of electrical power, a C7.1 generator set, producing 200 kW of electrical power, shaft lines, MTA 628 azimuth drives with cu-nial bronze 2,800-mm propeller and water-cooled thruster motors.

31

1,600-hp towboat from Master Marine.

Master Marine, Bayou La Batre, Ala., recently delivered the 67'×28' towboat Tom Torretti to Waterfront Services Co. Designed by Entech Designs, the new boat is the second of four 1,600-hp towboats Master Marine is building for the Cairo, Ill., operator. A pair of Mitsubishi S6R2-Y3MPTAW Tier 3 diesel marine engines producing 803 hp at 1,400 rpm each powers the Tom Torretti. The mains are connected to a pair of Sound Propeller Services 70"×48"×7", 4-bladed, stainless steel propellers through Twin Disc MG-5321 marine gears with 5:1 reduction ratios. The propellers are on J&S Machine Works Inc. 7" ABS Grade 2 propeller shafts with Thordon Marine Industries Corp. bearings, and Thorplas bushings and shaft seals.

Gladding-Hearn Shipbuilding, Duclos Corp. has delivered the new Chesapeake-class 53.6'×17.8' pilot boat Dixey to Alabama Pilot Inc., Mobile, Ala. With a draft of 4.8', the all-aluminum pilot boat features the C. Raymond Hunt-designed deep-V hull. It is powered by twin Caterpillar C-18 diesel engines from Milton CAT, each delivering 671 hp at 2,100 rpm. The boat has a top speed of 27 knots. A Humphree interceptor trim-

Master Marine

On TheWays

tab control system was installed at the transom. Diesel capacity is 800 gals., which provides a range of at least 400 miles at an economical speed of about 20 knots.

Alabama is expected to seek bids from shipyards interested in converting the Gee’s Bend Ferry in Camden, Ala., into the first zero-emission, all-electric passenger/ vehicle ferry of its type in the U.S. and only the second in the world. The pioneering venture is scheduled to have the 95'×42'×5' steel vessel back in service this summer. Owned by the state and operated by HMS Ferries, the 24-vehicle/149-passenger ferry was built in 2004 and makes five round-trips daily across the Alabama River between Gee’s Bend and Camden. The $1.8 million project is funded with a $1.09 million Environmental Protection Agency Act grant, with the state of Alabama paying the rest.

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www.workboat.com • MARCH 2018 • WorkBoat

Boxed In

Container-on-barge services fight to fit into the transportation industry.

By Kirk Moore, Associate Editor, and Ken Hocke, Senior Editor

34

T

he idea is fairly simple. Move containers from trucks and railcars onto barges and shrink the carbon footprint while easing congestion on highways and other landside roadways.

Over the years, the federal government has helped fund and promote container-on-barge (COB) transportation services.

The Energy Independence and Security Act of 2007 established the Marine Highway Program. Its mission was to reduce landside transport congestion. The Coast Guard and Maritime Transportation Act of 2012 expanded the scope of the program to other public benefits of increasing transport efficiency.

The 2009 economic stimulus program provided $58.3 million for three early projects for buying cranes, barges and improving marine highway ter-

minals and rail connections. In 2010 the Maritime Administration handed out $10 million for projects and studies, and there have been $5 million in grants available in each of the last two fiscal years.

Amid its winners and losers, the national effort to develop COB services continues in large part because of the nation’s transportation bottlenecks on land: choking highway traffic, delayed reinvestment in infrastructure, and the costs those impose on the public and private sectors.

“The waterways are the only mode that has any major capacity available,” said Scott Davies, director of the America’s Marine Highway Program at Marad.

Too many highways around ports in major transport corridors are at capacity, without enough money to make major improvements, said Davies.

“We just don’t have the money in the Highway www.workboat.com • MARCH 2018 • WorkBoat

Seacor AMH

At the Port Allen, La., terminal, containers are loaded onto barges and taken to New Orleans where they are put on ships for export.

boat operators, truckers, local authorities and the Coast Guard.

• The operational framework has to be correct early, with the right sized vessels for the job. “If you look at where trains were 20 to 30 years ago” at the transition to intermodal containers, “our industry, the inland industry, is in the same position,” Davies said.

Initial shoreside investments can be modest, as Seacor AMH LLC has done at Memphis, Tenn., using a ramp and spud barge, with traffic warranting additional investment later on.

• Public benefits are a priority, such as less highway traffic in the short- and long-term, and improving air quality.

• Cost models must understand trucking and rail alternatives, so that a container moved by barge does not cost more than the same route via truck.

“You have to get those costs into alignment,” said Davies.

In February 2016, Seacor, in cooperation with the Port of New Orleans and the Port of Greater Baton Rouge, La., tested the idea of putting empty containers from Seacor’s Memphis facility on barges and transporting them down to Port Allen, La., within the Baton Rouge port’s confines, where the containers would be available to a number of chemical companies in the area to fill with plastic resins. Once the containers were loaded and brought

back to the Port Allen yard, they would again be loaded onto barges and taken to New Orleans where they would be loaded onto ships for export.

The service received a boost from Marad to the tune of a $1.7 million grant, part of its Marine Highway Program which has the goal of expanding the use of U.S. navigable waterways to relieve landside congestion and reduce air emissions. Marad officials predicted that the Seacor service could eventually eliminate 12,500 truck trips annually.

“We ran the test in February and started the service in June 2016,” said Rich Teubner, Seacor AMH’s vice president. “The cargoes are all plastic resins. Once we drop the containers off, some take a week to come back [to Port Allen] and others come back the next day.” Seacor AMH is part of Seacor Holdings Inc.’s Inland River Services group.

By the end of 2017, Seacor was sending five barges loaded with a total of 48 empty containers from Memphis every Thursday. In February 2018, the service added Tuesdays, hauling 36 more containers on the same route.

Consistent availability of cargo has been a problem for some of the COB services of the past. Seacor has a COB service that runs between Mobile, Ala., and Westpoint, Tenn., on the Tennessee-Tombigbee Waterway. Teubner

FINDING SUCCESS Vetting Marine Highway Program proposals requires working closely with state transportation agencies, just one of the critical relationships that make container-on-barge plans winners or losers. Davies listed four major elements for success: • The community has to be on board.

They have to commit freight. That counts all the players in a port — shippers, terminal operators, labor, work-

Seacor AMH

Trust Fund … the waterways is the only mode” with 25,000 miles including 30 major urban areas, he said. “The system is there, it requires a minimal amount of investment.”

Seacor’s Memphis, Baton Rouge and New Orleans barge service has grown, adding Tuesdays to its schedule in February.

www.workboat.com • MARCH 2018 • WorkBoat

35

36

Marad

didn’t say what types of cargoes are carried on that service, but did say that one of the cargo owners closed most of its plant recently. “That service is currently tabled,” he said.

A lack of cargo does not seem to be a problem for the Memphis, Baton Rouge and New Orleans service, now or in the near future. Referred by some as the “chemical corridor,” between New Orleans and Baton Rouge there are about 100 chemical companies, including big players like Dow Chemical Co. Consequently, the demand to haul plastic resins is high.

“This is not a service where we have to meet cargo requirements like some of the other container-on-barge services have faced,” said Teubner. “I think having only one type of cargo has helped make it a success.”

The service has also been a success for the ports involved.

Greg Johnson, director of business development at the Port of Greater Baton Rouge, said the COB service gives local shippers another option for moving their containers to New Orleans.

“The service is continually growing, hence the need for twice a week service,” he said. “We were averaging 200 containers per week, we now expect up to 400 per week.”

Donnell Jackson, a spokesman for the Port of New Orleans, said petrochemical companies along Louisiana’s Lower Mississippi River have announced more than $81 billion in infrastructure investments.

“Industry experts predict an estimated growth of 400,000 TEUs of plastic resin exports from the Gulf region between now and 2020,” he said.

The COB shuttle service shows every sign of expanding, Jackson said. It continues to grow faster than expected, mostly due to ocean carriers, primarily CMA CGM, and large resin shippers who have recognized the commercial and environmental benefits of the container-on-barge service, he said.

“Growth is also fueled by an investment in new plant and facilities in the petrochemical industries along Louisiana’s Lower Mississippi River, which

The Marine Highway Program provides planning assistance and funding to expand use of U.S. navigable waterways to relieve landside congestion, reduce air emissions and provide new transportation options.

adds to the region’s export capacity.

The service also offers value to large volume importers who are looking for a container-on-barge option to Memphis.”

There is another positive the service has provided to the different companies and port authorities involved — jobs.

“This operation has created new jobs that were not associated with the port prior to June 2016,” said Johnson.

MORE OPTIMISM Upriver in St. Louis a group made up of the City of St. Louis Port Authority, Inland Rivers Ports & Terminals (IRPT), Mississippi Rivers Cities & Towns Initiative (MRCTI) and the Upper Mississippi River Basin Association (UMRBA) has been awarded a $96,000 grant from Marad to develop a plan for COB service along the Mississippi River between New Orleans, Minneapolis and Chicago.

“That money will be used to study the effectiveness of container-on- barge between these three cities,” said Aimee Andres, IRPT’s executive director.

“We definitely think it can be effective, be successful. But there hasn’t been any money yet. We’re still signing the funding agreement with Marad.”

Andres said she expected the Marad agreement to be completed by February. “There is definitely demand for agricultural products,” she said, “and I

think shippers will find that once there is container-on-barge their costs will go down.”

Andres said COB services support Marad’s goal to lower the number of trucks on the road. “We would really be swapping out long haul truck routes for short haul truck routes,” she said.

“Drivers will still be needed to bring cargo from the water inland.”

Yet some programs that look like sure winners haven’t produced as expected. Even in California’s famously hellish traffic, barge rates ultimately could not compete with trucks on a weekly Stockton to Oakland interport COB service. Supported with $13.5 million in federal grants for equipment, the service only achieved about half the hoped-for volume over a 14-month trial, and ended in summer 2014.

Uncontrollable events are another danger. For about a decade Tidewater Barge Lines ran containers down the Columbia and Snake rivers to Portland, Ore. But after Hanjin Shipping Co. left Portland in 2015 amid a labor dispute, exporters scrambled to find alternatives for moving grain and paper to Asian buyers, and used containeron-barge to get to rail connections for other ports.

With the growth of container traffic and big neo-Panamax ships arriving in East Coast ports there is more optimism.

www.workboat.com • MARCH 2018 • WorkBoat

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THE NEW YORK SHUFFLE n New York Harbor, two barges stacked with containers are an occasional sight going through the Kill Van Kull, the narrow channel between Staten Island, N.Y., and Bayonne, N.J. The Red Hook Cross Harbor Barge Service shuttles containers around three to four times per week between the Red Hook Marine Terminal in Brooklyn, N.Y., to Port Newark, N.J., part of the massive containership and intermodal complex on the New Jersey side of the harbor.

The barge service started in 1991 as reconstruction began on the Gowanus Expressway, the urban highway through Brooklyn and a major freight truck artery. The cross-harbor shuttle was started to mitigate problems with highway access during the rebuilding. Over the next 16 years, the barge service moved more than a million containers, eliminating the need for two million over-the-road truck trips on local highways, according to the Port Authority of New York and New Jersey.

About 70% of containers discharged by ships that call at the Red Hook Container Terminal remain in Brooklyn for further distribution, while the rest are moved by barge to Port Newark.

Depending on volume and vessel schedule, the barge service makes three to four transits weekly, carrying anything that moves through the New York/New Jersey port, “from the clothing on your back and furniture and appliances in your home or office, to the fruit and beverages on your kitchen table,” said Steve Coleman, a Port Authority spokesman.

For the New York metro region, the barge service offers major benefits to both the public and private sector, according to the Port Authority. There are savings in time, fuel costs and road tolls for truckers. For terminal operators, the service reduces cargo congestion, while the Port Authority and state transportation agencies see reduced wear and tear on regional highways.

For the general public, the barge service helps to reduce traffic congestion and air emissions from trucks — an increasingly highprofile issue for community and environmental groups in the portside communities of Newark and Brooklyn.

Those benefits helped win a $1.6 million grant from Marad in 2016 to help improve the Red Hook service. Some of the money has gone toward buying three state-of-the-art simulators and two sets of interchangeable control modules that International Longshoremen’s Union members use to train for operating ship-to-shore and yard cranes. The training units were commissioned in late 2017 and a

New Jersey-based Columbia Coastal Transportation, with barge operations in Norfolk, Va., and Baltimore, took delivery in 2016 of the 345'6"×94'×21' Columbia Freedom, a 900-TEU container barge, the largest barge in its fleet of five.

Vessels of that size, suitable for short-sea shipping, can be a credible alternative to dumping masses of con38

Kirk Moore

I

Containers on a barge inbound to Port Newark, N.J., through the Kill Van Kull under the Bayonne Bridge. training curriculum is in the works, Coleman said.

Other Marad-funded improvements include a pair of new reach stackers for the Red Hook terminal, scheduled for delivery in the first quarter of 2018, and new protective panels for the flexible fender system at Berth 6 in Port Newark. That installation in spring-summer 2018 will prevent damage to barges when docking.

Red Hook is the only regular intra-harbor COB service in the port.

Its future is tied to that of its surrounding neighborhood — where New York Gov. Andrew Cuomo has raised the prospect of a new round of waterfront redevelopment.

Community groups and New York waterfront advocates have kept an uneasy eye on that possibility since a design firm in 2016 proposed redeveloping city and Port Authority property in the industrial zone there to mixed residential construction. In his January state of the state address, Cuomo called for extending a city subway line to Red Hook and moving the container terminal to South Brooklyn.

“Brooklyn’s Red Hook neighborhood is full of untapped potential, and with this proposal, I am calling on the Port Authority to accelerate consideration of relocating its Red Hook maritime activities to free up this waterfront for more productive community use,” said Cuomo.

Port Authority officials said they will undertake a new study of that potential move this year. In the meantime, container operations will continue at Red Hook, they said.

— K. Moore

tainers at one port and trickling them out by overland truck in the mid-Atlantic and Northeast states. Columbia has regular service between Norfolk, Baltimore and Philadelphia.

The company has also made runs to Boston. Port and Marad officials are looking at other opportunities along the crowded Interstate 95 coastal highway corridor. One Marine Highway route

between New York and Portland, Maine, has been approved, and Marad is reviewing a New York-Rhode Island route that would call at Quonset Point, North Kingston, R.I., a former Navy air station that has become a commercial maritime hub for the state.

“There’s opportunities for companies like that to grow on the East Coast,” Marad’s Davies said.

www.workboat.com • MARCH 2018 • WorkBoat

Diesel Engines

A sample of new diesel engine offerings.

By Michael Crowley, Correspondent

40

M

TU delivered its first Tier 4 engines in January, a pair of 16V4000M65Ls rated at 3,435 hp at 1,800-rpm each. Dakota Creek Industries in Anacortes, Wash., is installing the units into a 445-passenger, 144' fast ferry the yard is building for the Water Emergency Transportation Authority in San Francisco.

The new vessel is the first of three 144' ferries from Dakota Creek with the Tier 4 engines for WETA. “It’s expected to be in operation in the September, October time frame,” said Jeff Sherman, senior sales manager with MTU. Meeting Tier 4 emission requirements is done

Moteurs Baudouin engines have been installed in new vessels for New York’s NYC Ferry.

with a selective catalytic reduction unit [SCR] where a pump distributes urea in the exhaust system, which goes through a box with a catalyst to remove nitrogen oxide. Particulate matter is removed in the combustion chamber. “It’s similar to what everyone else does,” said Sherman.

Fuel economy with the new Tier 4s should be better than the Tier 3 engines. “We are able to optimize combustion in the third generation common rail fuel system,” said Sherman.

The Tier 4 engines in the Dakota Creek-built boats are 16-cylinder models. They are to be followed by a 12-cylinder Tier 4 12V4000.

www.workboat.com • MARCH 2018 • WorkBoat

Orca Green Marine

Power Up

tained within long, can-shaped containers that can be arranged horizontally or vertically, where it runs in a vessel’s stack system. “It’s similar to where you would have a muffler,” Kelly said.

There are two SCR units per engine and both are “very compact.”

A relatively new Cummins product that’s showing up on some commercial boats is the C Command Connect.

It’s designed to monitor engines in the Cummins lineup from the QSM11 down through the QSB6.7. “It’s a simplified option of what we had before,” said Kelly.

Cummins

Cummins first Tier 4 marine engine, the QSK38.

A panel system keeps track of the fuel level, gear-oil pressure and temperature as well as the rudder angle. The package includes a customer interface box, an ED-4 display panel, and NMEA 2000 output and alarms.

JOHN DEERE John Deere’s newest diesel offerings for the workboat market are targeted at on-deck power, primarily for barges.

These are the 9-liter 6090HFM85 and the 13.5-liter 6135HFM85 radiator cooled engines with ABS ratings.

The 13.5-liter engine was introduced in January and the 9-liter model was scheduled to be available in February.

“There aren’t too many players that have type-approved packages for ondeck power in those displacements,” said Vincent Rodomista, marine sales engineer at John Deere. He added that Deere is receiving more requests from ATB operators that want marine-class, type-approved equipment. It’s “a nice little package for barges, for all types of deck engines, for cargo pumps, for bowthruster engines.”

A Tier 3 4.5-liter propulsion engine that’s going into production in April is the 4045SFM85. It’s designed for lightduty commercial work. “They could be used on patrol boats or small vessel assist operations,” said Rodomista.

“Outboards just don’t survive in those types of commercial applications.”

The 4045SFM85 has two ratings: 275 hp at 2,600 rpm and 315 hp at 2,800 rpm. “It’s ABS-type certified and has all the commercial EPA ratings,” said Rodomista.

The engine is based on the 4045AFM85 block with several differences. There’s an upgraded valve train and the engine is 110 lbs. lighter, so the power-to-weight ratio has been improved. It’s also 1.5" shorter.

“That can be the difference between not being able to install and being able to install,” said Rodomista. The engine also has a seawater cooling system.

“Going to salt water aftercooling allows you to get more power out of the engine. It’s rather unique. No one in the market has a 4.5 liter at those power

www.workboat.com • MARCH 2018 • WorkBoat

John Deere’s new 500-hp 13.5-liter 6135HFM85 diesel will be a good source for a barge’s on-deck power.

John Deere

CUMMINS Cummins introduced its first Tier 4 marine engine, the QSK38, at the International WorkBoat Show in December. The engine will go in a test vessel this year and by 2019 the QSK38 will be available on a limited production basis. “We are trying to get the word out now and identify customers that want to be early adopters of the new aftertreatment system in the engine,” said Andy Kelly, Cummins marketing communications manager.

The power range for the QSK 38 will be between 1,000 hp and 1,400 hp.

The Tier 4 engine has been in development since 2015 but production was postponed because the marine market has been a down market lately, Kelly said. Many vessel operators have been more willing to repower existing vessels, as opposed to building a new design to accommodate engines with an SCR unit. But Kelly thinks that’s changing and “we are right on time for when customers need the product.”

The Cummins SCR package is con-

ratings that are ABS type approved.”

MOTEURS BAUDOUIN Moteurs Baudouin engines were first installed in new ferries for New York’s NYC Ferry in June 2017. By January, 50 engines were in the Hornblower-operated catamaran ferries.

“And we just sold another 12 for six boats being built right now,” said Brook Streit, sales manager with Motor Services Hugo Stamp in Fort Lauderdale Fla., the North American distributor for the French-built Baudouin diesel.

The 86'×29' Incat Crowther-designed ferries are being powered with a pair of Baudouin 16-liter 6M26.3 rated at 815 hp at 2,100, while slightly beamier (by 20") ferries have dual 32-liter 12M26.3 Boudouin engines rated at 1,400 hp at 2,100 rpm.

Streit said the original deal was for 20 boats and 40 engines. Starting in the second round, the ferry operator had the option of choosing “another engine manufacturer, but they were comfortable enough after running our engines they stuck with us.”

“The number one thing about the Baudouin engines is the serviceability,” said Streit. “Instead of having to lower the oil pan to get at the crankshaft, a crankcase access door allows you to access connecting rods, bearings or pull an entire cylinder liner or piston.”

And the 16-liter engine has individual cylinder head hatches. “You can rebuild the engine in place.”

41

Lubricants Lighting

Less Resistance Workboat operators are making the change to EALs.

42

W

orldwide, a 2010 study estimated that stern tube leakage was putting 1.2 million to 7.6 million gals. of lubricant oil into the sea annually. Add other leaks, operational discharges and spills, and the total amount of oil going into the sea amounted to 9.7 million to 16.1 million gals.

Studies like that pushed the Environmental Protection Agency to attempt to minimize lubricant discharges, which resulted in the 2013 updated Vessel General Permit (VGP) that covers discharges incidental to a vessel’s normal operations.

New vessels 79 feet or longer are required to use environmentally acceptable lubricants (EALs) in all oil-to-sea interface applications. These lubricants are biodegradable, will not cause a static sheen and will not bioaccumulate.

Older vessels have to replace mineral oils with EALs in all oil-to-sea interfaces unless it’s not technically feasible. An EPA spokesperson estimated that 56,602 domestic vessels and 14,340 Lubriplate has a lubricant designed specifically for the pins on an ATB.

Crowley Maritime

By Michael Crowley, Correspondent

www.workboat.com • MARCH 2018 • WorkBoat

U.S. Coast Guard

New vessels 79' or longer are now required to use environmentally acceptable lubricants (EALs) in all oil-to-sea interface applications. EALs will not cause a static sheen.

CHECK-UPS FOR VESSEL FLUIDS

D

foreign vessels are covered by the VGP. Have all vessel operators signed on for EALs? No. What percentage use EALs or don’t use them is impossible to say. There are several reasons why many vessel operators originally chose not to use EALs. Some early EALs “were vegetable oils, they were triglycerides. They didn’t last very long,” said Brandon Richards, CEO with Panolin America, Hoffman Estates, Ill. “They weren’t tailored to a hydraulic system that had heat and pressure, and they would cook.”

Caterpillar

COSTS, ENFORCEMENT There’s also the money issue. EALs are more expensive than conventional lubricants. “The difference between standard hydraulic oil and an EAL hydraulic oil can be, for a drum, over $1,000,” said Ryan Mcnamara, general manager at Covich Williams Inc., a Chevron marketer and distributor in Seattle.

Then there’s the enforcement, or lack of, for non-compliance with the EAL regulation. The Coast Guard is supposed to notify the EPA after making a vessel inspection if an operator isn’t using EALs. However, “a lot of operators have not yet had to face the consequences of not using a VGP-compliant product and therefore, some haven’t switched,” said David Reh, director of field engineering and training services at Lubriplate Lubricants in Newark, N.J. The penalty for not using an EAL can result in “civil and criminal enforcement, as well as citizen suits, pursuant to the authority of the Clean Water Act,” said the EPA spokesperson.

Reh adds that vessel operators that have been “proactive and made the change to a VGP-approved product, they are working well where that’s happened.”

In the Seattle area, Bob Williams, dock manager at Covich Williams, estimates that a lot of tugs “haven’t done that yet (switched to an EAL). Maybe one tug out of a fleet is testing it right now.”

Other workboat operators do seem to be making the change from a mineral

o you know the condition of your engine’s oil, fuel or hydraulic lubricants?

What about the hydraulic fluid and gear oil? “Maybe” you say?

After all, if you’ve not had equipment failures in the past because of poor lubricants, why worry now? Well, you should, because eventually everything fails and it usually happens a lot sooner than expected. Then, instead of an affordable repair job, a costly new engine is needed.

Periodically analyzing the fluids in your vessel’s systems is one way to avoid this costly scenario. But it’s not something the vessel owner is able to do alone. You

www.workboat.com • MARCH 2018 • WorkBoat

it’s probably indicating the oil is breaking down and is not able to adequately lubricate the engine.

Another reason for a vessel operator to perform an oil analysis, especially when a vessel first starts using an EAL, is that a third party does not approve the product.

The lubricant manufacturer self-certifies that the product meets VGP requirements.

“There’s a targeted turnaround time of 24 hours for oil testing to be completed from when the sample is received,” said Thompson.

Besides indicating the condition of the lubricant, it might be “possible to trend the

Cat S-O-S Services offers routine check-ups for oil, coolant and diesel fuel and provides valuable insights to prevent unexpected failures and unplanned downtime. might be “able to change the oil for your car, however are you able to use certain analytical processes to look and see if there are wear components in that oil?” asked Tiffany Thompson, development engineer for Caterpillar. Thompson, who gave a talk on “Reduce owning and operating costs with fluid analysis” at the 2017 International WorkBoat Show, doesn’t think any person is capable of performing that type of fluid analysis.

One answer is Cat’s S-O-S Services, which offers fluid testing for oil, coolant and diesel fuel with Caterpillar regional laboratories or dealers that have their own laboratory. Analyzing oil samples can reveal many things, such as types of metal elements and their amount in the oil, which gives a good idea if parts of the engine are wearing out that shouldn’t be.

If there’s too much soot or sulfur in the oil

data received,” said Thompson, thus allowing the boat owner “to work with their dealer to attempt to optimize oil drains.”

Other companies besides Caterpillar have oil analysis programs. Chevron, for instance, has an oil analysis program that will tell you if “you have issues,” said Ryan Mcnamara, general manager at Covich Williams Inc., a Chevron marketer and distributor in Seattle. “Used-oil analysis is a huge part of avoiding failure and making sure you are doing everything as far as drain intervals and teardowns.”

Brandon Richards, CEO with Panolin America in Hoffman Estates, Ill., agrees.

EALs “are an investment. Take samples over time. They tell the operator the life of the oil and the hydraulic system it’s operating in. You can tell the health of pumps, valves, rams because you can detect wear metals in the system.” — M. Crowley

43

Lubricants oil-based lubricant to an EAL. Macnamara noted that Covich Williams sold only a “handful of drums when (the VGP) started.” Now, he said, “we are moving more this year than we ever have.”

Reh feels a lot of ATB operators are using VGP-compliant products in “ATB systems, hydraulic wire ropes and anywhere else where a lubricant is interfaced or could possibly interface with water.”

Lubriplate has a lubricant designed specifically for the pins on an ATB. It’s the ATB Biobased EP-2 grease, which can also be used as a multipurpose grease where there’s exposure to the water. Its development “took several years and on the order of tens of thousands of dollars,” Reh noted.

Whatever type of EAL product is used a thorough cleanout is required to get rid of the old lubricant. “You can’t just dump EAL on standard hydraulic oil. It takes a complete drain and flush,” said Macnamara.

EAL TESTING

A

s the number of vessels using EALs increases there is a growing feeling that not enough is known about the differences between mineral oil-based products and EALs. That’s caused DNV GL, the marine classification society, to work with insurance companies in the United Kingdom to better understand the lubrication performance of EALs and to determine

Once EALs have been added to a system that’s properly cleaned out and flushed, you can usually expect much greater longevity than with mineral oils and over the long term will spend less money. In some applications Panolin fluids have lasted “well over 100,000 hours,” Richards said. “It’s up to the operator — change filters, take samples.”

if biodegradable lubricants play a role in stern-tube bearing failures.

Tests will be performed at the University of Sheffield laboratories, examining properties such as pressure-viscosity relationship at high shear rates and oil film formation and thickness.

The results will be released later this year. — M. Crowley

Operators of boats under 79' should also be prepared to deal with VGP regulations in the future. “I know that will come,” said Richards, referring to boats under 79' falling under VGP. He also thinks more than just the “oil-toseawater interface” will be mandated.

“Other applications are recommended.

It will only get harder and more stringent as time goes on.”

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To advertise please contact us • 207-842-5496 • classifieds@divcom.com ADVERTISERS INDEX Advertiser / Page AdvanTec Marine . . . . . . . . . . . . . . . . . . . . . . . . . 9 Ahead Sanitation Systems Inc . . . . . . . . . . . . . . 20 Baltic Workboats AS . . . . . . . . . . . . . . . . . . . . . . 39 Bloom Incorporated . . . . . . . . . . . . . . . . . . . . . . 20 C & C Marine and Repair LLC . . . . . . . . . . . . . . 32 Coast Guard Foundation . . . . . . . . . . . . . . . . . . 44 David Clark Company Inc . . . . . . . . . . . . . . . . . . 16 Diesel America West . . . . . . . . . . . . . . . . . . . . . . . 4 Duramax Marine LLC . . . . . . . . . . . . . . . . . . . CV3 Furuno USA . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 GPLink, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Hougen Mfg ., Inc . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Imtra Corp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 John Deere Power Systems . . . . . . . . . . . . . . . . 14 Karl Senner, LLC . . . . . . . . . . . . . . . . . . . . . . CV4 Louisiana Cat . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Lubriplate Lubricants . . . . . . . . . . . . . . . . . . . . . 37

www.workboat.com • MARCH 2018 • WorkBoat

MAN Engines & Components Inc . . . . . . . . . . . . 15 Marine Machining & Mfg . . . . . . . . . . . . . . . . . . . 26 McDermott Light & Signal . . . . . . . . . . . . . . . . . . 27 MobileOps, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Motor-Services Hugo Stamp Inc . . . . . . . . . . . . . 33 MTU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Panolin America Inc . . . . . . . . . . . . . . . . . . . . . . 23 Research Products/Blankenship . . . . . . . . . . . . . 22 RIBCRAFT USA . . . . . . . . . . . . . . . . . . . . . . . . . 44 R W Fernstrum & Company . . . . . . . . . . . . . . . . . 7 Scania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Simrad - Navico . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Thordon Bearings Inc . . . . . . . . . . . . . . . . . . . . . 13 Total / Lubmarine . . . . . . . . . . . . . . . . . . . . . . . . 45 Twin Disc Incorporated . . . . . . . . . . . . . . . . . . CV2 Volvo Penta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Yanmar America . . . . . . . . . . . . . . . . . . . . . . . . . 10

51

LOOKS BACK MARCH 1948

• The House Interstate and Foreign Commerce Committee is finally tackling the controversial sale or lease of Federal Barge Lines (FBL). Preliminary hearings began on Feb. 25. Two bills that authorize the Department of Commerce to dispose of the barge lines, each sponsored by different water-

ways groups, are before the committee.

The first bill would give the Inland Waterways Corp., the federal government’s operating agency, the power to sell, lease or charter the barge lines, and would authorize loans for improvements to the buyer. The second bill, which is supported by barge operators, would only authorize the outright sale of the barge lines for cash. A $1 million Delaware corporation, FBL was MARCH 1958 chartered earlier

this year.

• On the cover is the 65'×18'×7'6" Admiral. The tug was built last year by A.V. Walker Shipyard, Pascagoula, Miss., for Maritime Towing Co., Lockport, La. The Admiral is powered by a 250-hp Atlas Imperial diesel.

laid recently at Jakobson’s Shipyard, • One of the biggest tows in the hisOyster Bay, N.Y., for a new 1,600-hp tory of the Ohio River — 30 barges tug for Moran Towing Corp., New loaded with almost 50,000 tons of coal York. The new 100'×25'10" tug has a — was handled recently by American design draft of 12'. The tug will be the Commercial Barge Line’s new 3,200hp towboat, the Philip Sporn. The large first vessel powered by a GM 567-C tow, the equivalent of two ordinary engine. tows, was possible because of high water conditions which enabled it to move over the dams on the Ohio instead of through the locks, ACBL said.

MARCH 1968 • The keel was • Offshore support vessel utilization should receive a boost from the recent federal lease sale off the California coast. A record for federal lease sales was set with total bids of $603 million for 75 of 110 offshore tracts offered, totaling 540,600 acres. Of the 25 companies that took part in the sale, Humble Oil & Refining Co. was the top bidder.

• Shaver Transportation Co., Port52

land, Ore., has created a new subsidiary, Shaver Construction Co. The new company has been conducting pile driving operations on the Columbia and Willamette rivers. It specializes in all phases of marine construction, including dock construction, land filling, pile driving and dredging. Shaver has operated tugs and barges on the Columbia and Willamette rivers since 1880. www.workboat.com • MARCH 2018 • WorkBoat

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17990 Great Lakes Parkway Hiram, Ohio 44234 U.S.A.

info@DuramaxMarine.com | www.DuramaxMarine.com

PHONE 440.834.5400 FAX 800.497.9283 USA & Canada or 440.834.4950

PROPELLING

EXCELLENCE

Congratulations to SCF Marine, Inc. in setting a new standard on the inland river system with their high horsepower triple-screw Z-drive vessels. Pictured is the M/V SCF Explorer, the final towboat of a three vessel series, all propelled by Steerprop SP25D Azimuthing Thrusters supplied by Karl Senner, LLC.

Shipyard: C&C Marine & Repair in Belle Chasse, LA Engines Supplied: Cummins QSK60-M, 2,200 HP each Naval Architect: The Shearer Group Inc.

Karl Senner, LLC proudly represents:

(504)469-4000 WWW.KARLSENNER.COM