WorkBoat April 2015

Marine Finance • Maintenance & Repair • Vigor Industrial ®

IN BUSINESS ON THE COASTAL AND INLAND WATERS

APRIL 2015

Gassed Up

Harvey Gulf takes delivery of its first dual-fuel PSV.

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ON THE COVER

®

APRIL 2015 • VOLUME 72, NO. 4

The dual-fuel OSV Harvey Energy during sea trials.

Photo courtesy of Harvey Gulf International Marine

FEATURES 24 Focus: Due Diligence To ensure that vessels last, operators must follow a wellplanned maintenance and repair schedule.

30 Focus: Bankroll There’s plenty of capital with better terms available, but operators are being cautious.

42 Cover Story: Bunker Mentality Harvey Gulf takes delivery of the first LNG-burning offshore service vessel in North America.

50 In Business: A Bigger Vigor Vigor Industrial acquiries Kvichak Marine Industries.

24

BOATS & GEAR 34 On the Ways Conrad to build first LNG bunker barge for North America. Nichols Brothers delivers 23-car ferry to Washington county. Eastern unveils new V-pod, diesel-electic towboat design. Shallow-draft lugger tug from Rodriguez. Blount busy with small bunker tanker for New York.

54 First Run Coverage of the inaugural WorkBoat Maintenance & Repair Conference and Expo to be held in New Orleans from April 14-16, 2015.

57 Conference listings and descriptions.

60 Expo exhibitors list and contact information.

AT A GLANCE 10 10 11 12 14 16 18

On the Water: Fight back against snow and ice.

Captain’s Table: Frustration with government regulations grows.

OSV Day Rates: Deepwater is finally feeling some pain.

WB Stock Index: Stocks rebound in February.

Inland Insider: Another side to plunging oil prices.

Insurance Watch: Understanding tug insurance.

Legal Talk: Lessons learned from recent vessel accidents.

NEWS LOG 20 20 21 21 23

Coast Guard faces budget cuts.

Record set for inland tank barge deliveries.

Lawmakers split over plans for Atlantic offshore drilling.

Viking to crack the U.S. river cruise market in 2017.

Seattle port lease with Foss challenged.

www.workboat.com • APRIL 2015 • WorkBoat

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50 DEPARTMENTS

4 Editor’s Watch

8 Mail Bag 64 Port of Call 79 Advertisers Index 80 WB Looks Back

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n our cover story on page 42 (“Gassed Up”), Max Hardberger writes about the newest innovation in offshore service vessels — the use of liquefied natural gas as a bunker fuel.

The 310'×64', dual-fuel Harvey Energy is the first LNG-burning OSV in North America. It was custom-designed to take advantage of LNG’s low cost while minimizing the fuel’s technological challenges. The OSV’s late February delivery was the culmination of a three-year effort by Harvey Gulf International Marine, Gulf Coast Shipyard Group and the vessel’s designers, Vard Marine, to meet, as Hardberger put it, “the myriad challenges this leap in technology presents.”

Many of you have read about the significant advantages LNG has as a vessel fuel and about its growing use

by European ship and ferry operators.

Thus, the brave leap taken by Harvey Gulf may not have come as a surprise.

But those involved in the project knew that they faced a long haul in gaining certification and regulatory compliance.

The fact that HGIM, GCSG and Vard were able to satisfy and work with ABS and the Coast Guard and bring this advanced OSV to market shows what U.S. ingenuity can do.

For Harvey Gulf, fuel cost was only one factor in its decision to build a fleet of LNG vessels. The company’s LNG operations chief, Chad Verret, cited other advantages of burning LNG, including a significantly increased time between overhauls and total running hours. Other benefits include cleaner engines, cleaner machinery spaces, and LNG’s inherent safety features.

Still, Verret pointed out that even with today’s low fuel costs, LNG is still a

David Krapf, Editor in Chief

dollar a gallon cheaper. “In fact,” Verret said, “the overall savings with LNG increase as the price of oil goes down.”

Though the U.S. offshore sector is currently suffering from the recent steep drop in oil prices, we may see more OSV operators take the dualfuel plunge in the future. At a recent Brookings Institution seminar on LNG, experts agreed that the “Gulf of Mexico is considered to be the key area for growth, especially for LNG bunkering.”

In fact, GCSG has received two inquiries for LNG-fueled vessels from other OSV companies and, the shipyard says, their interest is serious.

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 15

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EDITOR IN CHIEF

David Krapf dkrapf@divcom.com

TECHNICAL EDITOR Bruce Buls bbuls@divcom.com

SENIOR EDITOR Ken Hocke khocke@divcom.com

ONLINE EDITOR Leslie Taylor ltaylor@divcom.com

CONTRIBUTING WRITERS Capt. Alan Bernstein • Michael Crowley • Dale K. DuPont • Pamela Glass • Max Hardberger • Kevin Horn • Joel Milton • Bill Pike • Kathy Bergren Smith

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1/8/2009

McCain should tout Jones Act’s benefits

Older mariners know how to operate boats

I

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can’t see why Sen. McCain doesn’t just get a life and report about the thousands of Americans who benefit from the Jones Act. He keeps touting that it needs to be repealed, as he would make more money from the big oil guys and all the lobbyists who are supported by his supporters.

There are so many who are in all the support industries and businesses who support the shipbuilding industry. Local business owners, restaurants and their employees, warehouses, shippers, truck drivers and those making a living wage all are affected. Bottom line is that Sen. John McCain is a very greedy person and it’s 1:32 PM time Pagefor1 him to retire.

Clark E. Dodge President, CED Consulting LLC Koloa, Hawaii

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ou can lead a horse to water, but should he be allowed to drink?

Hiring young, educated people is fine and dandy, but are they up to the task?

You need to come to Fourchon, La., get on a small boat and spend a few days in the “mayhem” that is the “new oilfield’s” answer to the problem of an aging crew roster.

If you could buy them for what they were worth and sell them for what they think they are worth, you could retire.

From my helm seat looking in, some of these new oilfield vessel operators (30% or so) have no business being behind the controls. They are, in a word, “dumb” when it comes to the physical handling of their boats. If it weren’t for navigation systems such as DP, all these boats would be tied up if it were not for us old “has-been, used up, not-

Send letters to: MAIL BAG P.O. BOX 1348 Mandeville, LA 70470 workboat@cox.net fax: 504-891-4112 so-computer-savvy personnel.”

I turn 50 this year and have worked in the industry for over two decades. I would probably still be lost if it were not for the old guys who taught me how to do it. I am eternally grateful for their patience. Now, however, there seems to be no more room for the people with the most hands-on experience and least amount of paper experience.

More and more companies seem to be sending the old guys out to pasture instead of promoting from within.

We learn what we’re taught, so give a guy a chance. After all, NASA put a monkey in space, so I think us old guys can learn a new trick or two.

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On the Water Battling snow and ice

I

By Joel Milton

Joel Milton works on towing vessels.

He can be reached at joelmilton@ yahoo.com.

t’s early March and winter is still unleashing its wrath on mariners in the Northeast and midAtlantic — mariners who are weary of the cold, snow and ice, and all the challenges that go along with working in these harsh elements.

Overall, this year’s winter season really doesn’t rank as being particularly bad compared to historical standards, but New England and eastern Massachusetts in particular have had a pretty rough go of it. People in that area are more than ready for winter to end and spring to begin.

One of the results of the snowy, icy weather has been the expected increase in slips, trips and falls and their related injuries.

At sea, in harbors, on the rivers or ashore, it’s all the same. Hospital emergency rooms and doctor’s offices have been bursting at the seams with broken hands, wrists, ankles and feet. If you’re lucky, you’ve only suffered strains, sprains and bruises — concussions, orthopedic surgery or worse if

Captain’s Table

Government vs. small business

I

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.

10

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’ve attended several maritime conferences and shows recently with different audiences spanning several maritime industry segments. At each one, a common theme emerged. It was the discontent and frustration with the growth in government regulation.

Take my company, BB Riverboats. Last year, after being in business for over 40 years, the state of Kentucky wrote a letter saying that we were not calculating our sales tax correctly and they wanted payment for this miscalculation immediately.

Kentucky has given commercial marine industries an exemption from state sales tax if the purchase was for an item that is permanently installed on the vessel, such as an engine. After receiving the letter, we called our accountant for assistance. We prevailed, but at great expense. So why did this happen? Well, with budget shortfalls, the state was looking for new sources of revenue.

This is only one of many government entities that regulates my business. I estimate that my business interacts regularly with 14 or more regulators at the federal, state and local levels. Here are just

you’re not. With this often comes unexpected time off from work and lost income while the body heals.

So with this experience fresh in everyone’s minds and bodies, maybe some people will be more receptive to a couple of simple, affordable and effective remedies. Since most of these injuries are caused by a loss of traction, whatever is out there that allows you to maintain traction can and usually will prevent a fall from occurring.

Of course, snow should be shoveled, ice should be chopped, scraped, bashed or otherwise removed, and surfaces should be sanded and/or salted. However, “should be” is not the same as “will be.”

So if you want to safeguard yourself from the various human failures and shortcomings that can hamper snow and ice removal, you can take matters into your own hands.

You can do this by adding serious traction that will follow you wherever you go — attached to your own two feet. Yaktrax (www.yaktrax.com), which is best for general use, and Microspikes (www.kahtoola.com), for when the going gets extremely icy, are the way to go. That’s all.

a few of the federal regulations promulgated over the years that we have had to deal with: vessel and facility security plans, TWIC cards for employees, user fees for vessel inspections, Vessel General Permits, random drug tests for employees, NonTank Vessel Response Plans and AIS equipment installation.

Several years ago, the Small Business Administration estimated that uncoordinated regulation costs small business approximately $10,500 per employee each year. This cost is way out of line for a small businesses such as mine. How long can small businesses carry this burden and what’s the effect on productivity? We need to get this regulatory spiral under control or face a very unsettling future.

The marine industry likes to say, “we are all in the same boat.” This is true. We must come together to fight increasing regulation in order to preserve our businesses and our industry’s future.

And then there’s Sen. John McCain. Recently, he once again threatened to scrap the Jones Act, which helps the U.S. maritime industry compete worldwide and protects the jobs of U.S. mariners.

If he had been successful, we all would have suffered and the future of our industry would have been put in jeopardy. www.workboat.com • APRIL 2015 • WorkBoat

3/12/15 11:55 AM

FEBRUARY 2015 DAY RATES, FLEET UTILIZATION VESSEL TYPE

OSV Day Rates Deepwater market is feeling some pain

By Bill Pike

O

il prices remain depressed, with West Texas Intermediate trading below $50 bbl. in March and crude inventories (excluding the Strategic Petroleum Reserve) coming in at 434 million bbls. at the end of February, a 30-year high.

The low oil prices have taken a toll on production onshore, with a substantial drop in drilling and development, especially in shale plays. Activity in the U.S. Gulf of Mexico shallow-water market has seen some softness as well.

Until now, however, the deepwater market has been largely spared from the operational downturn that have hit the rest of the industry.

At the end of February, Transocean

AVERAGE DAY RATES JAN. '15

FEB. '15

FEB. '14

UTILIZATION FEB. '15

FEB. '14

SUPPLY (DWT) announced 1,999 & below $14,851 $14,613 $14,716 90% 86% the potential 2,000-2,999 $22,895 $22,828 $24,416 86% 90% mothballing 3,000-3,999 $30,924 $30,924 $26,192 96% 100% of some of 4,000-4,999 $30,750 $30,750 $32,000 100% 100% its high-tech 5,000 & above $39,644 $39,644 $39,589 100% 100% deepwater rig CREWBOATS fleet, nine of Under 170' $ 4,149 $ 3,735 $ 4,754 60% 92% which will be 170' & over $ 7,950 $ 7,386 $ 5,331 82% 100% searching for SOURCE: WorkBoat survey of 32 offshore service vessel companies. new contracts this year.

They will join eight other deepwater fleet could be mothballed. But Transrigs from various owners up for conocean is not the only company facing a tract renewal over the next few months. deepwater slowdown. Unless oil prices And Transocean has already announced climb, Transocean is certain to have the scrapping of 12 older floating rigs. some company.

Many say that Transocean’s position So, what are the chances of an oil is not representative of the broad deepprice revival? T. Boone Pickens and water market. The company, burdened a cadre of like-minded analysts see with $9.1 billion of debt, has been prices around $100 again soon. And ranked amongst the worst economic then there’s Ed Morse at Citibank (on performers in the Fortune 500 index. www.thestreet.com). He predicts that Its debt was downgraded to junk status oil could drop to $20 bbl. before the in February. One analyst has said that crude glut is cleared. If the latter is corup to 60% of the company’s deepwater rect, deepwater is no longer a safer bet.

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STOCK CHART For the complete up-to-date WorkBoat Stock Index, go to: www.workboat.com/ workboat-index.aspx

WorkBoat Composite Index Index rebounds in February

A

fter losing 1.5% to open 2015, the WorkBoat Composite Index rebounded in February, gaining over 72 points, or 4.3%. For the month, gainers topped losers 19-12.

The leading percentage gainer for the month was Trinity Industries. The railcar and barge manufacturer gained over 27% in February. Trinity’s net income increased from $375 million in 2013 to $678 million in 2014, an 80% increase.

“We established record annual revenues, net income and earnings per share in 2014,” Timothy R. Wallace, Trinity’s chief executive officer, told analysts in the company’s fourthquarter earnings call in February. The company’s rail group led the way with record revenues and operating profit during the fourth quarter and full year.

Wallace said they were also satisfied with the barge group. “I’m pleased with our inland barge group’s ability

INDEX NET PERCENT COMPARISONS 1/30/15 2/27/15 CHANGE CHANGE Operators 384.34 372.84 -11.49 -2.99 Suppliers 2689.59 2848.97 159.38 5.93 Shipyards 1732.88 1842.00 109.12 6.30 Workboat Composite 1689.30 1761.98 72.68 4.30 Oil Service Index 187.20 199.54 12.34 6.60 Dow Jones Industrials 17164.95 18132.70 967.75 5.64 Standard & Poors 500 1994.99 2104.50 109.51 5.49

to shift production as market demand changes. During the past two years, this group has greatly enhanced its manufacturing flexibility by shifting portions of its manufacturing capacity to meet customers’ needs. This has been a major accomplishment.”

On the other end of the spectrum was Gulfmark Offshore. The offshore service vessel company fell about 17% in February and the company announced that it was suspending its dividend for the first time. Gulfmark also suspended its share repurchase program. “Our leverage is now approaching 35% net debt-to-book capitalization, which is the limit we have set for ourselves,” Quintin Kneen, the company’s president and CEO told analysts in February. “So we are reassessing our business model, resetting our capital spending, resetting our cost structure and suspending returns to shareholders.”

— David Krapf

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www.workboat.com • APRIL 2015 • WorkBoat

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Whether you’re powering an offshore craft, a sea-worthy container vessel or an on-board generator set, you won’t find a better source for reliable marine engine power than Caterpillar. In addition to a wide selection of marine engines that range from 205 to more than 6,500 bhp, Louisiana Cat offers: • Factory trained technicians • Fully equipped facilities • Factory authorized warranty repairs • Performance analysis reports • Preventive maintenance programs • Electronic diagnostics • 24-hour emergency parts and service Call our toll free number below to learn more about our Caterpillar products and services.

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3/10/1512:54:09 10:10 PM AM 7/17/2014

Inland Insider Lower oil prices and creative destruction

I

n January, The Wall Street Journal and others reported that capital investment in a refinery near Lake Charles, La., that would convert natural gas into diesel has been put on hold.

The shelving of this $11 billion

investment is just one example of the negative effects from lower oil prices on the energy industry. The trade press has been replete with notices of reduced spending, staff reductions and other negative fallouts from the downturn in oil prices.

In previous columns, I have discussed the ongoing energy revolution in the U.S. natural gas and crude oil sectors.

But there is another side to plunging

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energy prices that reflects a “creative destruction.” The expression refers to innovations that allow new production processes

By Kevin Horn and products to replace old processes and products. The new processes and products create wealth and value along with economic growth through investment. However, the old methods and products reflect a loss of wealth and value and economic decline through disinvestment.

Creative destruction is ongoing and creates winners and losers in developing sectors such as information technology and energy. The same exists in the barge industry, reflected by the passage of steamboats into history and the gradual standardization of the 1,500-ton-capacity dry cargo river barge which replaced smaller 800- to 1,250-ton-capacity barges.

The freight transport sectors are big winners in the creative destruction of the old high prices of natural gas and crude oil. Witness the shift from liquid natural gas imports when domestic natural gas was about $9 per mcf to the potential conversion of these facilities to export terminals when gas is at $3 to $4 per mcf. What a difference fracking technology has made with domestic gas prices and markets in less than a decade.

Low energy prices are not only a game changer for fuel costs, but also provide freight transport sectors with new cargo opportunities. The best examples are rail and barge movements of domestic crude that have replaced imported crude. These represent new transportation movements and markets that did not exist a few years ago.

On the down side, however, steam coal movements for barge and rail have been victims of this same “creative destruction.”

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

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Insurance Watch Tug insurance explained

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cean marine hull insurance for tugboats is called the American Institute Tug form, or 53R-1. I’m going to explain a few pitfalls with the form that may help you understand it and may provide you with coverage that you need but don’t have.

First, there’s the “trading warranty.”

It tells you and the insurer where you’re going to use the tug. If you deviate from that trading/operational area, then you'll void the policy until you’re back in the coverage area shown — no exceptions.

Next is the “watchman clause.” It says that if the tug is tied up or moored there must be a watchman checking on

it, from the bilges to the topsides, at regular intervals. I usually ask insurance underwriters to eliminate this clause from the policy. This clause is often misunderstood when a claim occurs so my best solution has been to eliminate it.

Generally, everything is negotiable in the ocean marine insurance world, and I take advantage of this to help my clients get the best coverage to suit their situation.

There’s another clause called “change of ownership.” Not only does the tugboat owner need to notify their insurance agent of a change in ownership (such as from an LLC to a corporation), but also if the owner should drop an ABS classification or charter the tugboat out. This is very important because you may think a small change didn’t affect the way the tug is used, but you just jeopardized the tug’s insurance without knowing it.

There is a list of exclusions that is

also important.

The clause is called “war, strikes and related exclusions.” The best way to find coverage here

By Gene is to have your McKeever ocean marine insurance agent add “SRCC” (strikes, riots and civil commotions) clauses plus “war risks.” This coverage is usually easy to get and reasonably priced.

Finally, there’s “seaworthiness.” You must practice due diligence to keep your tug in a seaworthy condition. This leaves the insurer with a lot of wiggle room. Thus, it’s always good to check and recheck for anything on your tug that can cause damage to the hull.

Gene McKeever is a marine insurance agent with Allen Insurance and Financial. He can be reached at 800-4394311 or gmckeever@allenif.com

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Legal Talk IMO addresses lessons from recent accidents

T

he maritime industry often follows the rule of cause and effect. Highprofile accidents attract the attention of lawmakers and industry leaders.

This usually results in close reviews of existing practices and sometimes leads to revisions of safety regulations.

The loss of the Titanic in 1912 led to the questioning of the Board of Trade’s shamefully inadequate lifeboat guidelines. Eight years earlier, a fire consumed the steamer General Slocum and led to closer examination of shipboard emergency equipment. The Oil Pollution Act of 1990 was passed into law shortly after the Exxon Valdez spill. In the wake of terrible events, the industry looks for positive lessons that can be learned.

The International Maritime Organization recently discussed lessons that can be learned from the Costa Concordia and other recent accidents. In a February speech, IMO Secretary General Koji Sekimizu addressed several issues including mariner fatigue, the catastrophic results of human error, and the 10% increase in the number of accidents in 2014 from the previous year.

Learning from the Costa Concordia and other tragic events can be a complex process. Take the high number of casualties from the sinking of the ferry Sewol in April 2014. There were misguided announcements on the PA system for passengers to stay put as the vessel sank, the ship had stability issues and it was overloaded. Response efforts were harshly criticized, and South Korea’s president called for the disbanding of the nation’s coast guard.

In 2014, the captain of the Sewol was sentenced to 36 years for gross negligence, although prosecutors originally

sought homicide charges and the death penalty. The chief engineer received a sentence of 30 years. In the Costa Concordia,

By Tim Akpinar the captain was sentenced to 16 years in prison.

Today, alarms can provide warnings about almost every conceivable navigational hazard. This can alert crews and help them to avoid disasters.

Computers can run cargo and ballast calculations with ruthless precision, and new high-tech diesels never stall during maneuvering watches in tight channels. However, human factors can sometimes be the uncertain variable in the equation.

Tim Akpinar is a Little Neck, N.Y.-based maritime attorney and former marine engineer. He can be reached at 718-2249824 or t.akpinar@verizon.net.

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APRIL 2015

COMPILED AND EDITED BY KEN HOCKE, SENIOR EDITOR

NEWS LOG

NEWS BITTS

SHIPS COLLIDE IN HOUSTON SHIP CHANNEL

NEW RECORD SET FOR TANK BARGE DELIVERIES

U.S. Coast Guard photo by Petty Officer 3rd Class Dustin R. Williams

T

T

he 600' chemical tanker Carla Maersk and the 623' bulk carrier Conti Peridot collided on March 9, resulting in the closure of a portion of the Houston Ship Channel. The Carla Maersk was carrying about 216,000 bbls. of methyl tertiary butyl ether. A narrow sheen about two miles long developed after the collision that punctured two of the Carla Maersk’s port cargo tanks. The Conti Peridot was moved to the Port of Houston’s Turning Basin terminal the next day. At press time, the cause of the collision was still under investigation.

Coast Guard facing budget cuts and more responsibility

T

he U.S. Coast Guard provides a great return on investment — even more so considering it’s working on vessels that are up to 60 years old, the agency’s commandant said at a congressional hearing in late February.

Adm. Paul F. Zukunft presented his funding pitch to a House Subcommittee on Coast Guard and Maritime Transportation hearing on President Obama’s $9.96 billion budget request for the Coast Guard for 2016. The Coast Guard’s current budget is $10.3 billion.

Zukunft had a sympathetic audience who advised him to be candid about his needs.

“You are the most frugal of the 20

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services, and you’re critical on a dayto-day basis,” said Rep. Peter DeFazio, D-Ore. “We have to figure out a way to get you adequate resources to meet all your national security obligations, which have grown dramatically, but also to meet your day-to-day obligations.”

Outlining the challenges, Zukunft said, “There has never been a greater demand for our nation’s Coast Guard.

In the Western Hemisphere, we are witnessing extreme violence in Central America stemming from insidious transnational organized criminal networks.”

The Coast Guard has “actionable

he number of new tank barge deliveries hit an all-time high of 344 in 2014, according to River Transport News. That’s a 2.4% increase over 2013’s 336. However, the industry saw a drop in total capacity for new bottoms because of a move toward lower capacity barges. Though 30,000-bbl.-capacity barges continue to be the most popular size on order, 10,000-bbl. barges are gaining ground. In 2014, 117 10,000bbl. barges were built, compared to 91 in 2013, according to RTN. The leaders in barges bought and barges built in 2013 retained their No. 1 positions in 2014. Kirby Corp. ordered the most, 61, and Trinity Marine Products built the most, 148, according to RTN. Sandor Toth, RTN’s publisher, said he did not expect the record-breaking trend of the last three years to continue in 2015.

“I think it’s going to be softer,” he said.

“We’ve been on an incredible run.”

— Ken Hocke

intelligence on approximately 90% of known maritime drug flow,” but can target and disrupt only 20% of it due to a limited arsenal of aircraft and ships, Zukunft said.

“This is one of the reasons why the Offshore Patrol Cutter (OPC) is my No. 1 acquisition priority,” he said. “It’s the most significant major acquisition in Coast Guard history.” The OPC “is essential to interdicting drug smugglers at sea, as well as for interdicting undocumented migrants, rescuing mariners, enforcing fisheries laws, responding to disasters, and protecting our ports.”

The admiral called the Fast Response Cutter (FRC) “a game changer for us,” and said the best part of the budget is funding for production of six a year to reach the 58 total. But, “a challenge we have is the full funding for final design

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3/11/15 4:50 PM

of our offshore patrol cutter.”

Bollinger Shipyards is building the Sentinel-class FRCs. Other concerns are more maritime traffic from “the American energy renaissance,” cyber security and the Arctic.

The maritime movement of oil and gas requires more Coast Guard marine safety officers with “the expertise needed to keep pace with industry and to facilitate commerce, not impede it,” Zukunft said. And a new icebreaker must be in addition to and not at the expense of the existing acquisition programs.

Rep. Carlos Curbelo, R-Fla., noted that the president’s request would move 600 reservists to inactive ready reserve, essentially making them unable to respond quickly in case of emergency.

“Our active reserve component is the lowest it’s been since 1957,” Zufunkt said. It’s currently at 7,200.

Subcommittee chairman Rep. Duncan Hunter, R-Ca., said the president’s proposal would cut the acquisition budget by 26%. “The proposed level is at least a billion less than what is required to sustain the acquisition program of record. It will severely undermine efforts to recapitalize the service’s aging and failing legacy assets, increase acquisition costs for taxpayers, and seriously degrade mission effectiveness,” he said.

Hunter pressed Zufunkt on the towing vessel inspection rule first required in the 2004 Maritime Transportation Safety Act. It’s one of the most significant rulemakings for the towing industry since operators were required to be licensed in 1972. “It’s been 10 years,” he said.

Zukunft promised that the longawaited towing vessel inspection rule, Subchapter M, would be out this spring.

The project is “complex,” the admiral replied. “What we have to adjudicate is what are the unintended consequences, especially for the small operators. I expect to have it out this spring.”

— Dale K. DuPont

Politicians split on offshore drilling

L

awmakers from the Chesapeake region are deeply divided over the Obama administration’s plans for Atlantic offshore leasing for energy exploration.

Maryland representatives say they worry about the effect a drilling accident would have on the tourism industry and Chesapeake Bay. But many Virginia lawmakers foresee up to 25,000 jobs in shipbuilding and support jobs for their state. If anything, the Obama administration’s move to open leasing is too conservative, contends U.S. Rep. Scott Rigell, R-Va. “Instead of exploring and leveraging Virginia’s full potential, the president has placed an arbitrary 50-mile buffer zone off our coast that will unnecessarily hinder the thoughtful and constructive harvesting of the available resources,” Rigell said.

Rigell is among a group of business and community leaders heading to Louisiana at the end of March to learn about the offshore energy industry there, said Bryan K. Stephens, president and CEO of the Hampton Roads Chamber of Commerce. The trip includes a visit to the offshore industry support hub at Port Fourchon.

With public meetings on the plan scheduled in March, other states, too, are divided along economic interest lines, with tourism-heavy beach resort regions from Massachusetts to Georgia expressing opposition. Sen. Ben Cardin, D-Md., joined Democratic colleagues from northern states in protesting the Jan. 27 announcement that mid-Atlantic leasing will be offered.

The opponents conjure images of the 2010 Deepwater Horizon accident in the Gulf of Mexico. Typical is the media campaign coming from the Assateague Coastal Trust in Maryland, with the theme “Don’t BP my Assateague.”

Virginia may be committed to offshore leasing, but it too has concerns about protecting existing economic assets. Against arguments favoring

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the potential boom in maritime jobs, opponents point to a 2010 Department of Defense report that warned against drilling in offshore areas where Navy ships at Hampton Roads and aircraft from Virginia Beach go for training exercises.

The Navy’s Virginia Capes Operating Area overlaps with parts of the 2.9-million-acre area where the federal Bureau of Ocean Energy Management (BOEM) estimates that there could be 130 million bbls. of oil and 1.14 trillion cu. ft. of natural gas that could be extracted.

Among the worries is the potential for not being able to practice gunnery and missile fire with drilling rigs in the area. The National Aeronautics and Space Administration is another player, with its Wallops Island launch pad.

NASA needs to keep the downrange ocean clear of vessels before rockets can lift off.

“While we are excited by the potential economic impact, it must be stressed we do not support exploration at the expense of the environment, the military or any other industry,” Stephens of the Hampton Roads chamber wrote on the group’s website. “We do support responsible exploration that at all times considers the safety of the environment, military operations and the impact on other industries, to include fishing and tourism.” — Kirk Moore

Viking to crack Mississippi River cruise market

O

ne of the world’s major river cruise lines wants a piece of the growing U.S. inland market.

Viking River Cruises in late February said it would launch six Mississippi River vessels over three years starting in late 2017, all homeported in New Orleans.

The move comes as the historic Delta Queen gets a new lease on life, American Queen Steamboat Co. wraps up a $2 million refurbishment for the American Queen’s fourth 21

3/11/15 4:50 PM

NEWS BITTS season, and American Cruise Lines’ (ACL) new American Eagle starts sailing from New Orleans in early April.

ACL also is planning a new fleet of riverboats to sail new U.S. itineraries.

Viking, whose 60 vessels cruise rivers in Europe, Russia, China and Southeast Asia, first hinted at its U.S. plans two years ago soon after ACL and American Queen launched regular overnight inland river cruising.

Based in Switzerland, Viking said its U.S. fleet would meet Jones Act requirements. The 300-passenger vessels, which would cost $90 million to $100 million each, will be built at U.S. yards, crewed by U.S. citizens and owned by Tennenbaum Capital Partners, a Los Angeles-based investment management company. The vessels would be timechartered to Viking “in full compliance with maritime laws,” the company said.

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MARINERS GET ACCESS TO NEW YORK/NEW JERSEY HARBOR RADAR DATA

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ariners can now see tidal current direction and speed in near-real time coming from high-frequency radar stations around the lower New York/ New Jersey Harbor. The new public system tracks and predicts the tricky currents around Sandy Hook at the harbor entrance, for use by professional mariners and recreational boaters alike. This is the third harbor system to go live, after previous public Internet connections for San Francisco and Chesapeake bays, with access at http:// tidesandcurrents.noaa.gov/hfradar/ Hfscm.jsp?port=NYNJ. Current reports are generally accurate within speeds of 10 centimeters per second and 10° of direction, according to the National Oceanic and Atmospheric Administration. — K. Moore

A Viking spokesman could not provide details on vessel design or possible shipyards.

Rivals took a positive view of Vi12:01 PM king’s move.

“We welcome the competition and any development that continues to put the spotlight on U.S. river cruising,” said Ted Sykes, American Queen’s president and COO. Work on the American Queen at Boland Marine & Industrial, New Orleans, included a rebuilt paddlewheel, new carpeting, and two-part polymer and high gloss exterior paint finish.

“I am thrilled,” said Cornel Martin, whose Delta Queen Steamboat Co. just bought the historic vessel for an undisclosed sum. Viking’s advertising clout should help convince people to take an American river cruise, he said.

And when they start exploring their options, they’ll find the “only 1927 authentic steamboat on the river.”

By the end of March, Martin expected to have the 176-passenger Delta Queen moved out of Chattanooga, Tenn., where she has been tied up, and on her way to Louisiana for work.

He and his partners plan to spend an

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estimated $5 million on restoration and renovation work including new boilers, the HVAC system and new generators and have her cruising again in 2016.

But first they need federal legislation to permit her to return to service.

Martin said he’s confident about passage of a bill that would exempt old vessels operating on inland waters from current fire hazard restrictions if the owners annually renovate at least 10% of the areas not made of fire-retardant materials.

Earlier legislation that passed the House but not the Senate before the last session ended gave the steamboat a 15year exemption to regulations that require passenger vessels for 50 or more to be made of fire retardant materials.

The steel-hulled Delta Queen with its wood and steel superstructure had been kept alive with a series of exemptions.

Listed on the National Register of Historic Places, she stopped sailing in 2008 when money-losing Majestic

America Line shut down.

— D.K. DuPont

Seattle terminal lease challenged by environmentalists

B

oth supporters and opponents of a Port of Seattle lease that would provide berthing for vessels involved in Shell Oil’s Arctic oil exploration confronted each other at a port commission meeting on March 10.

At issue was a two-year lease of Terminal 5 in Seattle to Foss Maritime for short-term moorage and vessel operations associated with Shell’s pending resumption of offshore exploration in the Arctic. The Seattle Port Commission signed the lease in February, but that was quickly followed by a lawsuit from several environmental organizations to stop it. The lawsuit says the port violated state law by not doing

a proper environmental review with public input before signing the lease for this particular use.

Terminal 5 is scheduled to be redesigned and upgraded over the next several years, but an interim tenant, such as Foss, fits the near-term needs of both the port and Foss/Shell.

The lease is expected to pay the port about $13 million over two years.

At the March 10 meeting, a motion, set for vote at a future port commission meeting, would require that all Shell vessels be gone within two years, the Seattle Post-Intelligencer reported. The motion also said that the port commission would take over all future details of the controversial deal with Foss.

“We are not changing terms of the lease,” said Seattle Port Commissioner Tom Albro. “We are, essentially, owning the lease as an executive action and determining what will happen there.”

— Bruce Buls

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Ocean Marine Division

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3/11/15 4:50 PM

Maintenance & Repair

Due Diligence

Maintaining and repairing vessels and equipment is a must.

By Ken Hocke, Senior Editor

M

uch is made in the marine trade press about new equipment, particularly just completed workboats. A boat can only be new once, but with the proper care, it can provide a company with decades of reliable service.

Without a correct maintenance program, however, a new boat can grow old quickly.

“It’s like your car. If you have it serviced properly, it will last a long time,” said Bob Beckmann, senior vice president and general manager, Signal Ship Repair, Mobile, Ala. “Cars today are well made and can last a long time if you maintain them. Same thing with vessels.”

Companies that think they can save money by skimping on maintenance are asking for trouble.

“It catches up to you if you let it go,” said Jon Schultz, vice president, operations, Maid of

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the Mist Corp., Niagara Falls, Ontario, Canada.

“Some people try to get away with it, but it doesn’t work out.”

Bill Metcalf, Crowley Maritime’s vice president, strategic engineering, said his company has a standard of quality that exceeds regulatory requirements.

“To maintain this level of service, our business units have a robust planned maintenance and repair schedule based on OEM (original equipment manufacturer) guidelines, failure rate trend analysis and best marine management practices, all of which is supplemented with condition-based monitoring,” he said.

Crowley Maritime Corp.

Crowley’s ATB Achievement/650-8 in drydock at Grand Bahama Shipyard in Freeport.

OUT OF SERVICE Vessels are removed from service because www.workboat.com • APRIL 2015 • WorkBoat

3/10/15 10:30 AM

Washington State Ferries

of needed repairs and maintenance or because of mandatory regulatory inspection. Either way, the sooner the boat is back in service the better. “Any downtime is costly,” said Schultz.

Signal’s repair facility sits on 43 acres of land located 30 miles from the Gulf of Mexico. It sports 4,400' of waterfront dockage, a channel dredged to 44' and no air restrictions. There’s 100,000 sq. ft. of covered fabrication area and 300,000 sq. ft. of outside fabrication area. The yard also features two drydocks — a 22,000-ton, 692', steel, Panamax floating drydock measuring 122' between wing walls and 118' between fenders, and a 4,500-ton, 240', steel floating drydock with 83' between wall fenders.

Signal is currently busy working on a variety of vessels — tankers, cargo ships and barges. “Maintenance is an ongoing thing,” said Beckmann. “A lot depends on what the crew does.

How well they maintain what they’re

Tugs bring the Washington State Ferries’ Tacoma back to the dock prior to sea trials to test its rebuilt electrical system.

supposed to maintain from electronics to towing gear to underwater stuff, depending on the vessel.”

Beckman said vessel owners and operators know what’s at stake, and they train their people to keep up with vessel maintenance. “I wouldn’t say people aren’t doing what they are supposed to do as far as maintenance is concerned,” he said. “These operators are smart.

They look ahead.”

Some owners and operators repair their vessels where they were built

because the yard is so familiar with the boat it constructed. However, that is not always the case. Crowley, for example, puts shipyards through a bid process for its maintenance and repair work.

“Our planned and scheduled drydockings are competitively bid by geographic location each year and awarded for the following year based on best overall value,” said Metcalf. “Our goal is to give all qualified shipyards an equal opportunity to bid our work. Crowley has developed a detailed shipyard audit

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process where service providers that are awarded our work go through a stringent audit of their safety, quality and environmental processes and procedures.”

Maid of the Mist’s Schultz said his company’s season runs from late April until November. “We have two full time mechanics here. We perform routine maintenance on the boats when they are off the route in the winter,” he said, “and we paint our boats every year.”

Last July, Washington State Ferries’ 202-car, 460'2"×90' Jumbo Mark II class ferry Tacoma, built in 1997, lost power while traveling from Seattle to Bainbridge Island. A design flaw prevented a protective circuit-breaker device from working properly, causing a chain of events that resulted in significant damage to the electrical switchboard components, which ultimately led to the power failure.

For seven months, WSF inspected

Maid of the Mist Corp.

Maintenance & Repair

Gary Patterson of Lake Erie Ship Repair and Fabrication operates a welding torch prior to the installation of new engines in Maid of the Mist VI.

and rebuilt the damaged propulsion switchboard system. Then WSF tested the system to make sure it was working properly while the vessel was underway.

Testing the system involved a series of sea trials during March followed by

the ferry’s annual U.S. Coast Guard safety inspection before the Tacoma was scheduled to return to service on the Seattle/Bainbridge Island route in April.

Those Coast Guard inspections don’t always go as planned. In early March,

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Maintenance & Repair ing with the owner of the vessel for several months to satisfy necessary safety requirements by the mandatory deadlines.

“The Willamette Queen did not achieve the minimum safety standards required of a Coast Guard-certificated passenger vessel,” Capt. Patrick Ropp, commanding officer for MSU Portland, said in a statement announcing the action. “This is akin to an airliner taking on passengers that does not meet FAA standards. The Coast Guard is responsible for passenger vessel safety and requires passenger vessels, like the Willamette Queen, to hold a Certificate of Inspection to ensure the safety of all passengers and crew.”

The Coast Guard requires passenger boats like the Queen to be hauled from the water every five years for a thorough examination. An out-of-water inspection evaluates structural integrity and seaworthiness of a vessel, and stipulates that repairs must be made if damage to the hull is found. The Queen’s last out-of-water haul-out was in 2010, according to the Coast Guard.

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Maid of the Mist Corp.

aid of the Mist operates two 80', 600-passenger boats, Maid of the Mist VI and Maid of the Mist VII, on tours of Niagara Falls.

The Canadian company recently finished repowering the Maid of the Mist VI, pulling out its old engines and replacing them with two new 400-hp, Tier 3 Volvo Penta D13MH engines. The work was done by a team from Lake Erie Ship Repair and Fabrication, Jefferson, Ohio. To make way for the new engines and gears, the repair yard removed the existing engines and gears, keel cooling system and control system on the boat and replaced them with the new engines, Twin Disc MGX-5114 DC gear-

boxes, Duramax Duracool keel coolers and Volva Penta controls. “I’m very pleased with the Volvo engines,” said Jon Schultz, vice president, operations, for Maid of the Mist. “They’re more efficient and greener than the originals. And we like the easier access to the individual cylinders.”

The keel cooling system had to be replaced with different types of coolers because the new Tier 3 compliant engines required more efficient cooling, said Lake Erie’s president and founder Joseph J. Craine. The control system that used to be on board was a cable system. Now it will be a fly-by-wire electronic system.

“The pilothouse console is all new. Everything is digital,” he said. “The control system is programmaMaid of the Mist’s vessels sit at drydock on the Lower Niagara Falls River. ble, so they can program specific parameters on how they want to operate the boat.” Maid of the Mist plans to swap out the engines in its other vessel, Maid of the Mist VII, with the new Volvo engines at the end of the 2015 season. — K. Hocke

the Coast Guard revoked the Certificate of Inspection of the 87', 101-passenger, fiberglass sternwheeler Willamette Queen after the boat’s owners failed to

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conduct a required out-of-water hull examination.

USCG inspectors from Marine Safety Unit Portland (Ore.) had been work-

BALANCED BUDGET Proper maintenance begins with the crews aboard the vessels and those who operate the docks.

“Oftentimes we can perform our

www.workboat.com • APRIL 2015 • WorkBoat

3/11/15 10:03 AM

Ken Hocke

The 942'6"x164' oil tanker Alaskan Navigator had work done at Vigor’s Seattle yard late last year.

own repair and maintenance,” said Crowley’s Metcalf. “However, in many cases, what’s needed can vary by a vessel’s operational routing, severity and level of expertise required, and, therefore, repairs or maintenance can be performed either at the home dock or outside port location. Because our crews are some of the best in the industry, they are well-trained in the ongoing scheduled maintenance requirements of our fleets.”

Crowley took delivery of its 17th and final ATB in 2013, part of a $1 billion, decade-long articulated tug/ barge (ATB) construction program.

Metcalf said ATB fleet maintenance is the responsibility of the engineering team within the company’s petroleum services division. “By separating the construction management from the operational maintenance of our vessels, it allows Crowley’s businesses to individually be responsible for operations and fully meet the needs of our customers while responding to maintenance and repair issues appropriately,” he said.

In order for the crews to perform their maintenance duties, they must have the necessary parts, filters, etc. to get the work done. “We keep a good inventory of fluids, filters and parts,” said Schultz. “But we have a budget for that, and we have to stay within budget.”

Staying on budget and having what your crews need takes some planning.

“The parts are the hardest thing,” said Schultz. “You don’t want to keep an inventory of expensive parts that are rarely replaced and not have a starter, for example, that can cause a shutdown, but can easily be replaced.”

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Marine Finance

Bankroll

There’s more financing available with better terms, but some operators are wary.

By Dale K. DuPont, Correspondent

T

he financing picture for the workboat industry has brightened considerably since the depths of the recession. Terms are better, money’s more plentiful and competition for business is intense.

Vessel operators, however, are being cautious because of falling energy prices and fear of overbuilding. It’s expected that loan restructuring activity, especially in the offshore service market, will pick up.

In 2007 and 2008, lenders were constrained “so bank capital in general was tougher to get,” said Kyle Parks, senior vice president, Wells Fargo Equipment Finance’s Energy and Marine Group.

The money in the market “was flying to quality, looking for those higher grade credits. We stayed active. Both collateral and borrower cash flow

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leverage profiles were under a higher degree of scrutiny,” he said. “Lenders drew comfort from operators retaining and building equity in their fleets. During this time, we saw more conservative loan-to-values and slightly shorter amortizations.”

In today’s market, depending on the borrower’s financial and operational strength, loan advances range from 65% to 100% of cost or fair market value, Parks said. “Current market loan terms secured by new/young long-lived vessels on average have been in the seven- to eight-year range” with longer terms possible. Similarly, amortizations have averaged 10-12 years. Certain new vessel classes can secure amortizations up to 20 years.

During the recession it was not uncommon to find rates in the 6%-8% range. Today they’re in the 3%-4% range for similar deals, said Ronnie

David Krapf

Inland operators are seeing plenty of financing sources with attractive terms.

www.workboat.com • APRIL 2015 • WorkBoat

3/10/15 10:19 AM

ENERGY FINANCING TIGHTENS

T

wo recent developments illustrate just how tough the energy financing market has become.

Hornbeck Offshore Services Inc., Covington, La., amended a $300 million revolving credit facility. Changes include extending the maturity from November 2016 to February 2020 and reducing the number of vessels pledged as collateral from 23 OSVs valued at more than $600 million to 10 OSVs valued at more than $450 million.

Discussing the deal in an earnings call, Hornbeck’s CFO Jim Harp said it was “a huge vote of confidence in a very challenging credit market for energy exposure in the banking industry.”

No one is immune from the oil price crisis, CEO Todd Hornbeck told analysts. “Our customers are experiencing revenue declines and consequently are seeking price

Evans, the Baton Rouge, La.-based commercial marine finance director for KeyBank. “The key factor is the banks are flush with liquidity.”

Many hired marine specialists, and they’re calling on clients they’ve never had before.

OIL AND GAS SLOWDOWN The biggest challenge is oil and gas. Creditors are scrutinizing deals much more closely than when oil was $100 bbl. “We continue to lend,” said Evans, but those with larger portfolios in the U.S. Gulf may have to put on the brakes. “Right now, in today’s market, everybody’s slowing down. I am seeing many of my clients being conservative.”

The offshore industry “is going to look at some challenging times,” said Adam Conrad, CIT Group Inc.’s chief credit officer with the maritime finance group. “U.S. operators have made it through some very difficult times.”

With older rigs now competing with new ones, some cold-stacking is inevitable. Nevertheless, he said, “The Gulf of Mexico is still a vibrant place.”

www.workboat.com • APRIL 2015 • WorkBoat

WB_Focus_MarineFinance_LINO.indd 31

and other concessions from the service company community,” he said. “We are engaged in these conversations across the board and will find ways to work with our clients in a manner that makes sense to the company and ultimately enhances our long-term franchise.”

The same week in February, Moody’s Investors Service downgraded Harvey Gulf International Marine Corp.’s rating from B1 to B2 “with a negative outlook to reflect the weakening market” for OSVs in the Gulf of Mexico and the company’s capital commitment for newbuilds. The move affects about $1.3 billion in debt.

The New Orleans company has 52 OSVs in its high-specification fleet with plans to add 10 more by the end of 2016, Moody’s noted. Harvey Gulf CEO Shane Guidry could not be reached for comment.

— D.K. DuPont

In general, Conrad said, bank debt is still readily available for larger workboats. “Getting capital is not entirely difficult. Where we haven’t

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3/10/15 10:19 AM

Marine Finance seen investment is in the U.S. dry bulk fleet, which is not a market that grows substantially.”

Caterpillar Financial Services Corp. (Cat Financial), a captive lender that finances vessels with Cat power, is seeing the most activity in the tugboat and deepwater offshore segments.

While Cat Financial will participate in bank facilities and syndications for marine customers, the majority of their business is conventional asset-based lending, said Grant Hughes, senior international account manager, marine.

“We look for customers with revenue generating assets that can be put to work immediately.

“The most notable change we’ve seen post-recession is the reduction in the number of marine lenders, especially those providing construction financing,” he said. “The remaining lenders are more conservative and focused on stronger credits with more conventional vessel configurations.”

POWERING THE WORLD FORWARD

For GE Capital Corporate Finance, demand for financing is “pretty well diversified,” said Martin Ferguson, the company’s managing director for marine. “Money costs are low and stable. Now, there’s plenty of capital available.” Sixty percent of what GE Capital is doing is newbuilds.

“Every deal’s getting done in the market,” Ferguson said. And, “we see plenty of competition on every deal.”

Early last year, GE Capital was the administrative agent on $285 million in credit facilities for Harley Marine Services, Seattle, to recapitalize the company and provide funds for growth.

“The market is very competitive for deals that are good,” said Todd Prophet, Harley’s CFO. “There’s a lot of money out there looking for those deals.”

In the recession, “the deals we needed to get done, got done,” he said.

Now, there are more financing sources and better deal parameters, and people are still knocking on Harley’s door.

Inland operators also have more financing sources. “Our inland clients are still seeing very attractive term contracts — and prudent opportunities to grow their fleets,” said Wells Fargo’s Parks.

KeyBank’s Evans agreed. “The inland market has been strong and continues to be strong,” he said. Writing a check for a $3 million barge is different than a $50 million supply vessel.

From Summit Funding Group Inc.’s perspective, “there’s certainly a pickup in capex spending now,” said Eric Freeman, vice president for the Mason, Ohio-based company. “The big push now is for bigger drydocks than they’ve had in the past” to accommodate bigger vessels.

“There’s a night and day difference from 2009 to today,” he said. “There’s a ton of liquidity out there. It seems there’s more money today than they have deals to do, and the terms are as good as I’ve ever seen them.”

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On TheWays

ON THE WAYS

Conrad Industries

Conrad to build first LNG bunker barge for North America

New LNG bunker barge features GTT membrane technology.

Compiled and edited by Bruce Buls, Technical Editor

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A

nother milestone in the development of LNG as a marine fuel in the U.S. was reached in early March when Conrad Industries, Morgan City, La., signed a contract to build the first dedicated LNG bunker barge in North America.

The barge will be built by Conrad Orange Shipyard in Texas for WesPac Midstream and its affiliate, Clean Marine Energy, which will deploy the barge out of Tacoma, Wash. Clean Marine’s customer will be TOTE Orca-class cargo vessels, which are being converted to LNG. The 232'×48'8"×15'8" bunker barge was designed by Bristol Harbor Group, Bristol, R.I., with significant input from Conrad and GTT, the French company that developed the LNG cryogenic membrane containment technology being used for this project. Unlike type C cylindrical tanks, the GTT membrane tanks can be built to fit spaces inside a vessel. The vessel shell can also serve as the outside of the tank. Inside is a layer of foam covered by stainless steel.

Robert Sampey, a spokesman for Conrad, said the company did an analysis of an existing 304' hull for LNG storage capacity. With C tanks, the capacity was about 3,000 cu. meters. With membrane tanks, the capacity was 4,200 cu. meters, a 40% increase in volume.

The new barge from Conrad will have a capac-

ity of 2,200 cu. meters. It will feature an innovative bunker mast design, called REACH4, which was developed by GTT for simple and safe LNG transfer to the client vessel.

Construction of the new LNG bunker barge is expected to be completed by early 2016.

Conrad has exclusive rights to GTT membrane technology in North America.

“Its really exciting for us and for the industry,” said Sampey. “It’s a big deal to get the first one on the books and to get cranking on it. I think a lot of people were waiting on this first one to get cranked up. We have some customers who were semi-interested, but who have now shifted into high gear now that they know that this is a real possibility.”

— Bruce Buls

Nichols Brothers delivers 23-car ferry to Wahkiakum County, Wash.

N

ichols Brothers Boat Builders, Freeland, Wash., delivered the 115'×47'6"×5'4", 100-passenger, 23-car ferry Oscar B to Wahkiakum County on the Washington-Oregon border in late February.

Designed by Seattle’s Elliott Bay Design Group (EBDG), the steel-hulled, aluminum www.workboat.com • APRIL 2015 • WorkBoat

3/12/15 11:59 AM

superstructure vessel, a replacement for the ferry Wahkiakum, runs between ferry terminals on Puget Island in the Columbia River and Westport, Ore. The route handles more than 50,000 vehicles a year and is the only regularly scheduled ferry that crosses the Columbia between the two states.

The new ferry is nearly twice the size of its predecessor, which carried 12 cars maximum. The larger deck also better accommodates tour buses and trucks.

In addition to its expanded vehicle capacity, the Oscar B offers Jastram hydraulic steering instead of cable-andchain steering, the latest electronics from Furuno and Icom, a passenger lounge and ADA-accessible restrooms.

"We're proud to play a role in helping provide this vital transportation link for the communities of Cathlamet [Wash.] and Westport," said EBDG Project Manager Curt Leffers.

The new ferry is powered by twin

Elliott Bay Design Group

New Columbia River ferry adds needed capacity to crossing.

Cummins QLS diesel engines, producing 285 hp at 1,800 rpm each. The mains are connected to 31" fixedpitched Sound propellers through ZF Marine reversing-reduction gears. The propulsion package gives the Oscar B a running speed of 10 knots.

Two Cummins 23MDKBV gensets,

sparking 23 kW of electrical power each, provide service power needs.

Tankage includes 2,900 gals. of fuel and 300 gals. fresh water.

Oscar B is USCG certified, Subchapter T. It cost a reported $3.9 million. ­— Ken Hocke

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3/12/15 12:09 PM

On TheWays

BOATBUILDING BITTS

Eastern Shipbuilding Group

astern Shipbuilding Group (ESG), Panama City, Fla., has unveiled a new design for a 120'×36'×13'3", twin V-pod, diesel-electric towboat called the Thunderbolt class. ESG worked closely with thruster manufacturer Verhaar Omega and Gilbert Associates on the design. Cummins Mid-South will provide the generator package with three identical diesel-electric power plants, featuring 12-cylinder, Tier 3 Cummins QSK38-DM diesels, producing 1,400 hp at 1,800 rpm each. Each engine will also power a Cummins AVK DSG-74 water-cooled generator, which can supply electrical power at 990 kW, 690 VAC at 1,800 rpm. Beier Radio’s Power Management System (PMS) will be used to optimize fuel consumption efficiency without sacrificing power and perforEastern has unveiled a new mance. The enhanced design for inland towboats. performance of

V-Pod propulsion and diesel-electric power with constant-speed generator engines will offer less vibration and noise along with The Kim M. Bouchard was power management launched at VT Halter. and automation, resulting in lower operating costs, system redundancy, increased safety, increased crew comfort and less crew fatigue, according to ESG. ESG also recently delivered the Ty Dolese to Florida Marine Transporters. The new 3,000-hp, 90' inland towboat is the 59th vessel of the FMT-ESG newbuild program that began in 2006. FMT has four more 90-footers under contract at ESG. In March, VT Halter Marine launched the Kim M. Bouchard, the first of two new 10,000-hp ATB tugs, at its Moss Point Marine yard in Escatawpa, Miss. The tug will be mated with the 250,000-bbl. B. No. 270, a 625'×91'×47' tank barge, also being built by VT Halter.

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www.workboat.com • APRIL 2015 • WorkBoat

3/12/15 12:00 PM

Elliott Bay Design Group

Delivery is expected in June, when the ATB will join Bouchard Transportation’s New York fleet.

Nichols Brothers Boat Builders, Freeland, Wash., has been contracted by the government of American Samoa to build a 140'×38'×13' multipurpose vessel to operate in the South Pacific primarily between the islands of Pago Pago and the Manu’a. Elliott Bay Design Group, Seattle, is providing the functional design and production engineering. Construction of the new 140-footer will begin this spring with delivery scheduled for April 2016. It will be powered by twin Caterpillar C32 main engines, each rated at 850 hp, and a 150-hp hydraulic bowthruster. The vessel will carry up to 150 passengers and have accommodations for eight crew.

The 1,840-sq.-ft. aft cargo deck will be equipped with a 15ton telescoping crane.

New multipurpose vessel for Another Pacific American Samoa.

Northwest boatbuild-

er, Armstrong Marine, Port Angeles, Wash., is now an official builder of NAIAD RIBs designed in New Zealand. Armstrong will build the aluminum boats at its shop in Swansboro, N.C., as well as Port Angeles. NAIAD RIBs can be built with either inboard or outboard power in sizes from 16' to 79'.

RIBCRAFT, Marblehead, Mass., was scheduled to deliver the first 16 boats under a new five-year Navy contract in March. The 24' RIBs will be deployed as ready-service lifeboats onboard Navy ships. Power is provided by a 254-hp Steyr diesel engine with a Bravo 2 sterndrive. The boats will also have Briartek manoverboard indicator systems and forward M60/M240 machine gun mounts. Willard Marine, Anaheim, Calif., also has a five-year Navy contract for the same boats.

Brunswick Commercial & Government Products, Edgewater, Fla., is building a series of 650 IMPACT RIBs for the Marine Spill Response Corp. The specialized 21' boats are engineered as support craft for MSRC’s Responder-class vessels. The boats are powered by a single Volvo Penta D3 170-hp inboard diesel

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Brunswick Commericial

On TheWays

gines combined with New launches for Twin Disc MG-61500 British Columbia. horizontally offset gears and Hamilton HM721 waterjets. Top speed will exceed 30 knots, fully loaded.

Rolls-Royce North America has been awarded a contract from Edison Chouest Offshore for propulsion and deck machinery for a new AHTS being built at ECO’s North American Shipbuilding in Cut Off, La. The boat will be built to Polar-class 3 standards and equipped to operate in Arctic waters with air temperatures as low as -40 C. Delivery is expected by the end of 2016.

In March, Jackson Offshore Operators took delivery of the Thunder, the second of four 252'×60' OSVs built at BAE Systems Southeast Shipyard in Jacksonville, Fla. The first OSV, the Breeze, was delivered in September to the New Orleans-based operator.

Kvichak Marine Industries

with Volvo Penta SX outdrives. Thirty boats will be built under the contract.

Kvichak Marine Industries, Seattle, has completed a pair of all-aluminum crew/pilot boats for West Coast Launch, Prince Rupert, B.C. The Lelu and the Kitson will join the five other boats in the fleet. Seating is provided for 12 passengers and one operator. The 39'11"×13'6" boats are powered by twin Volvo Penta D11 engines rated at 510 hp with ZF 205 marine gears and Hamilton 322 waterjets. Top speed is 35 knots.

Hy-Line Cruises, Hyannis, Mass., will have a new 493-passenger, high-speed catamaran built at GladdingHearn Shipbuilding, Somerset, Mass. The 153'×34' vessel is designed by IncatCrowther. Delivery is scheduled for 2016.

Power will be provided by four Cummins Brunswick is building a series of 21' RIBs for MSRC. QSK60-M Tier 3 en-

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www.workboat.com • APRIL 2015 • WorkBoat

3/12/15 12:00 PM

Another shallow-draft tug from Rodriguez

O

Rodriguez Shipbuilding

n the Gulf Coast where the Mississippi River meets the Gulf, shallow-draft lugger tugs have been earning their keep supplying the nearshore oil industry. But their size has been limited by their draft, which is subject to the prop size as much as the hull depth.

Triple-screw, shallow-draft tug from Rodriguez.

Over the years, innovative tug designers and operators have found that three smaller engines that turn smaller can be rigged as a pusher. and 26,000 gals. of water, the boat is props can deliver as much power with Rodriguez recently delivered the able to access most of the necessary significantly less draft than a twin-prop Captain Nedo C, a triple-engine lugger sites along the shallow estuary of the boat with bigger engines. powered by three Cummins QSK19Mississippi River.

Joey Rodriguez of Rodriguez ShipM engines each producing 660 hp building, Bayou La Batre, Ala., has at 1,800 rpm. The 70'×29' tug has a Blount building small been very successful with his in-house molded depth of 9'6" and is equipped bunker tanker for New York designed lugger-type tugs. Their aft with a Pullmaster M50 stern towing mounted deckhouse provides a convewinch. Even though the tug has a hefty lount Boats, Warren, R.I., has nient foreword deck space for cargo. A 1,980 hp, it only draws 6'6" when light started construction on the ChanTN_Maritime_7x5_ad_Layout 1 1/26/15 7:29 PM Pagewith 4 fuel and water. Even with single-drum, aft-mounted towing winch loaded dra B, a steel 79'×23' double-hull, fuelallows towing or, with blocks, the boat full capacities of 17,000 gals. of fuel bunkering tanker for American Petro-

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On TheWays

Blount Boats

leum & Transport, Lake Grove, N.Y. The vessel was designed by Farrell & Norton Naval Architects, Newcastle, Maine, and Fairhaven, Mass.

The Chandra B will operate out of New York Harbor servicing dinner cruise boats, construction barges and other small bunkering jobs, according to American Petroleum’s Steve Bragoli.

Prior to signing the contract to build the Chandra B, American Petroleum had been operating a small single-hull tanker, the Capt. Log. “If you are supplying fuel or carrying an oil cargo, you have to have a double bottom and a double skin on your tanks at the beginning of the year,” said Tom Farrell of Farrell & Norton.

The Chandra B, with a tankage capacity of 56,450 gals., will replace the Capt. Log, a 57'×15' fuel-bunkering tanker with a 19,000-gal. capacity.

American Petroleum also had to get rid of the single-hulled 6,000-gal. Patrick Sky and the 4,000-gal. Scotty Sky.

New 79' tanker will bunker vessels in the New York/New Jersey area.

They were replaced with 10,000-bbl., double-hulled, unmanned barges. Now the Chandra B will be “the only selfpropelled tanker left,” said Bragoli.

The Capt. Log had a single engine for power, but the Chandra B will have a pair of Tier 3 Cummins QSL9, sixcylinder diesels. Each one is rated at 330 hp at 1,800 rpm. ZF W325 marine hydraulic gears with 4.91:1 reduction ratios will be bolted to the QSL9s.

With the two engines, “she’ll be more

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versatile than the Captain Log,” said Bragoli.

The Chandra B will also have a 50hp Wesmar hydraulic bowthruster.

Bragoli said the boat would be operated with a two-man crew. “We are keeping it under 100 tons,” he added.

The small tanker will be built to USCG Subchapter D specifications.

The Chandra B is set for an August delivery. — Michael Crowley

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3/10/15 10:11 AM

Bunker Mentality

The first LNG-burning OSV in North America, the Harvey Energy, was delivered in February.

WB_Coverstory_LINO.indd 42

Harvey Gulf International Marine

Harvey Gulf takes delivery of its first dual-fuel OSV.

3/11/15 2:19 PM

F

ew question the arrival of liquefied natural gas as a powerplant fuel and feedstock, but the delivery of the first dual-fuel offshore supply vessel for Harvey Gulf International Marine may signal LNG’s arrival as bunker fuel as well.

Based on a design by Vard Marine and built by Gulf Coast Shipyard Group, Gulfport, Miss., the 310'×64', 5,200-dwt Harvey Energy, the first LNG-burning OSV in North America, was custom-designed to take advantage of LNG’s low cost while minimizing the fuel’s technological challenges.

It’s also the first OSV certified to the new American Bureau of Shipping ENVIRO+ classification.

“Fuel cost was only one factor in our decision to build a fleet of LNG vessels,” said Chad Verret, executive vice president, Alaska and LNG operations, for New Orleans-based Harvey Gulf.

He cited other advantages of burning LNG, including a big increase in time between overhauls and total running hours. Other benefits include cleaner engines, cleaner machinery spaces and LNG’s inherent safety features.

“That’s not to say the fuel savings are inconsiderable,” Verret stressed.

“Even with today’s low fuel costs, LNG’s still a dollar a gallon cheaper.

In fact, the overall savings with LNG increase as the price of oil goes down, and when the new Tier 4 regulations come into effect next January, we’ll see what ultra-ultra-low-sulfur-diesel costs.

There’s no sulfur in LNG.” In fact, there is no particulate matter in LNG at all, which is one of its biggest benefits. “What are diamonds made of?” Verret asked. “Carbon! It’s the hardest material on earth. And that’s what sticks to the cylinders and valves of diesel-burning engines, eventually grinding them down to junk.

There’s no carbon in LNG.” The low emissions will be a real advantage for oil companies under the new Tier 4 regulations, according to Verret. Tier 4 will apply to rigs as well as vessels, and emissions from standby

boats will count against the rig’s total output. As a dual-fuel vessel, the Harvey Energy can steam to and from the rig on diesel and save its LNG for standby operations.

The Harvey Energy is powered by three Wärtsilä 6L34DF dual-fuel gensets providing The Harvey Energy’s LNG bunker tank.

7,530 kW (10,100 hp) fueled by Wärtleast,” said Wade Pitre, Harvey Gulf’s silä’s LNGPac system — a complete vice president for special projects and fuel gas handling system for LNG newbuilds. “Their natural concern was vessels. It includes the bunkering stathe risk of fire and explosion, but we tion, the LNG tank and related process were able to show them that LNG is equipment, as well as the control and actually safer than diesel. It has what’s monitoring system. The 10,241-cu.-ft. called a ‘lazy burn.’ A liquid LNG fire vacuum-insulated LNG tank (about moves slower than a person can walk.

100' long) is located under the cargo In fact, if you throw a lit cigarette in a deck just aft of the house. bucket of LNG, it’ll just go out.”

Wärtsilä’s experience with LNGOne item that may have reassured burning engines has led it to increase ABS and the Coast Guard is the alarmcomponent time-between-overhauls and-monitoring system. More than and, in some cases, to eliminate fixed 6,000 alarm points are spread across all TBOs altogether. “For example, the Wärtsilä straight-diesel version requires of the systems, including 4,000 alarm an air box cleaning every 12,000 hours, points on the machinery alone. Status reports and alarms are delivered to but for the LNG version, it’s 27,000 hours,” said Verret. “We’re still running the engine room control booth and the bridge in real time. tests, but it looks like we can increase Another significant advantage of service life up to 50 percent for any LNG is that unlike diesel, it cannot part that comes into contact with compollute the water. A spill will evaporate bustion products.” and leave no slick, so there’s not even a Verret said Harvey Gulf had a good reporting requirement. reason to choose Wärtsilä for the entire The task of building a dual-fuel powertrain package, from the LNG OSV was made easier by basing it on tank to the propellers. “We wanted to a proven OSV design by Vard, the 300' put the whole thing in a single compaHarvey Champion-class. However, ny’s hands. We didn’t want a situation where different contractors are pointing matching the class’s capacities was a challenge. fingers at each other while a problem “A gallon of LNG doesn’t put out goes unsolved.” as much BTU as a gallon of diesel,” Verret said, “so to get the same range REGULATORY MAZE and deadweight, we had to lengthen the Perhaps the project’s greatest chalvessel 10 feet. Otherwise the hull form lenge was navigating and satisfying took the modifications nicely.” The the myriad and sometimes conflicting only real sacrifice, he said, was the loss regulations that apply to a dual-fuel vessel of this size and complexity. “The of about one tank’s capacity for bulk material since the tanks had to be made Coast Guard was skeptical, to say the

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Max Hardberger

By Max Hardberger, Correspondent

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off without a hitch. It took longer than bunkering with diesel due to pressure and temperature considerations, but not that much longer, and an OSV normally has a lot of things to get done when it comes alongside, giving plenty of time for LNG bunkering.”

Pitre noted that LNG bunkering by truck is common in Norway, where LNG powers many of the small ferries that ply the country’s fjords. “Of course, those short-run ferry routes

Max Hardberger

smaller and moved outboard. “It was a conscious trade-off for what is primarily a liquid- and deck-cargo boat.”

Although Harvey Gulf plans to avoid the challenges of bunkering with LNG by establishing its own terminal at the boats’ base in Fourchon, La., Pitre emphasized that the vessel can be bunkered anywhere a truck can come alongside. “We used trucks for the first LNG bunkering in the Gulf of Mexico on February 7,” he said, “and it went

The house features ‘midnight sun’ LED lights. All exterior lights are LED.

are perfect for LNG, but we can take advantage of having a permanent base in Port Fourchon. For the near future we plan to base our vessels there and bunker from trucks. By the end of this year, however, we’ll have a full-service, 1,000-cubic-foot LNG bunkering facility at the facility, the first in the U.S.” PLENTY OF CHALLENGES Some of the hurdles encountered in placing the Harvey Energy into service are the stuff of legend. “It took three different companies to get the main fuel tank from the manufacturer in Minnesota to our yard in Gulfport,” said John Dane, Gulf Coast Shipyard’s CEO. “The effort bankrupted the first company that contracted with Wärtsilä to deliver it. The thing has a 15-foot diameter. It had to come by way of North Dakota, Nebraska, Idaho and Texas.

The whole trip took five months.”

Transport for the next two tanks was a little easier, with both now securely installed in their hulls. The tanks for the final three vessels will be built by Martin Marietta at the Michoud, La., assembly facility under contract with Wärtsilä. “[The LNG tank] is about the same size as the [space] shuttle’s external tanks,” Dane said, “and the jigs and equipment are still in place. Now it will be a one-day barge trip versus a five-month nightmare.”

Dane attributed the project’s success to hard work and cooperation. “We had a weekly planning meeting every week for three years,” he said. “That’s the kind of cooperation it took. And even 44

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Builder: Gulf Coast Shipyard Group Designer: Vard Marine; Gulf Coast Shipyard Group Owner: Harvey Gulf International Marine Length (loa): 310' Beam: 64' Molded Depth: 25'6" Draft: 19.92' Deadweight Tonnage: 5,218.9 MT Deck Cargo Capacity: 4,500 LT Deck Area: 190'6"x55' Accommodations: 42 Speed (max): 14 knots Hull: Steel Propulsion: (2) Wärtsilä FS300-S/WN azipod, 3,620 hp; (2) Wärtsilä CPP tunnel bowthruster, 996 hp

Service Power: (3) Wärtsilä 6L34DF generator set, 2,510 kW @ 690v; Wartsila 550 kW harbor generator Firefighting: (2) FFS remote-controlled water monitor, 5,284 gpm @ 400'; FIFI-1 class Capacities: Fuel, 253,194 gals.; drill water/ballast, 621,237 gals.; potable water, 16,730 gals.; dry bulk mud, 10,250 cu. ft.; liquid mud, 18,000 bbls.; methanol: 1,613 bbls.

Electronics: Kongsberg K-Pos DP-21 DP system; (3) Kongsberg SeatexDGPS system; CyScan Laser; Kongsberg RADius 1000; Kongsberg C-Joy control system; (2) Furuno FAR2137-12 S band radar; Furuno FAR2117 X band radar; Furuno GMDSS/communication systems Ancillary Equipment: Water mist fire suppression system; computerized tank level indicator and valve-control systems; watermaker; 80 psi bulk material discharge system, LED interior and exterior lighting systems Classification: †A1, Offshore Support Vessel, †AMS, †ACCU, †DPS2, ENVIRO+, GP, UWILD, FFV-1, GFS (Dual Fuel Diesel), Circle E Certification: Subchapter I and L; SOLAS Delivery Date: Feb. 26, 2015

with all of the Harvey Gulf and Vard Marine designers working on the projTPG Mt. Vernon ect,Marine GCSG had its own team of 50 or more designers at our Gulfport yard.”

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Crew comfort is key. Harvey Gulf spent over $1 million on an interior upgrade.

The LNG bunkering point has a stainlesssteel chute at deck level to funnel any LNG spillage over the side since contact with mild steel will cause embrittlement.

Mark Cook, Vard Marine’s vice-president of operations. “Harvey Gulf spent over a million dollars on an interior upgrade, and the result is amazing.”

Each of the 42 berths in the boat’s 19 staterooms has a wide-screen satellite TV with DVD player mounted at the foot of the bunk. “When you get off watch you can kick back in your bunk and watch a movie or channel surf,” said Cook. “Or you can check your email and surf the Internet. That’s if

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Max Hardberger

Max Hardberger

changes. “The environment was one of the reasons we went with an all-LED boat,” Verret said, “but the savings in fuel for electricity is also considerable. With the kind of lumen power required for the boat’s ‘midnight sun’ deck lighting, and with the incredibly long life of LED bulbs, the LEDs make sense in the long run.”

One ABS requirement called for stainless-steel double-wall LNG piping.

“All steel touched by LNG has to be stainless, due to embrittlement,” said Billy Smith, GCSG’s vice-president of sales and marketing. “The pipes have a vacuum between the outer and inner walls, so if the inner wall ever breaks, the suction will evacuate the pipe while the system is being isolated.”

Considering the high level of skill and dedication to operate such a sophisticated vessel, it’s no surprise that Harvey Gulf went the extra mile in crew comfort. “This is one of the most comfortable boats I’ve ever seen,” said

you don’t feel like watching a movie in the rec room or having a snack in the mess. What a life.”

In spite of the recent downturn offshore, Harvey Gulf remains bullish on its LNG fleet. The second vessel in the class, the Harvey Power, is nearing completion and construction on the remaining four vessels is underway. Less than a week after its Feb. 25 delivery, the Harvey Energy went to work for Shell’s deepwater Gulf operations.

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Vigor Industrial

A Bigger Vigor Vigor Industrial acquires Kvichak Marine Industries.

By Bruce Buls, Technical Editor

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I

n early March, Vigor Industrial and Kvichak Marine Industries announced a blockbuster deal: Vigor, the biggest shipyard group in the Pacific Northwest and Alaska, would join forces with Kvichak, the region’s top aluminum boatbuilder. The result is a maritime industry powerhouse that will aggressively compete for work regionally, nationally and internationally.

For the principals involved, the new combination of facilities, skills and markets is intoxicating.

“It’s hard to describe just how happy we are as we’re putting this together,” said Frank Foti, principal owner and CEO at Portland, Ore.-based Vigor. “The synergies are just crackling between the leaders of Vigor and Kvichak. The energy makes everyone feel like they’re 20 again.”

At Seattle’s Kvichak, the feeling is mutual.

“My partners and I are totally excited,” said Keith Whittemore, Kvichak president and one of its three founding owners. “We couldn’t be happier, we couldn’t be more pleased with Frank. I can’t

imagine any other person we would transition this company to. The companies are a lot alike. I love his style with people, I love his heart, and we feel really good about it. I know he’s going to treat our people right.”

Just last year Vigor added Oregon Iron Works (OIW) in Clackamas, Ore., to its family of facilities. With Kvichak and OIW, Vigor now has a lot more newbuild capacity to balance the repair work that has been a fundamental business line for all of Vigor’s yards. The yards are located in Portland, Seattle, Tacoma, Everett, and Port Angeles, Wash., and Ketchikan and Seward in Alaska. When Foti made his initial foray into the shipyard business in 1995 with the purchase of Cascade General on Swan Island in Portland, ship repair was the main business. Now that yard is also building barges and towboats. The Seattle yard, which Vigor purchased from Todd Pacific in 2011, is building ferries and a fireboat. At the Ketchikan yard, which had been Alaska Ship & Drydock,

Vigor Industrial

Vigor Industrial continues to spread its influence in the maritime industry.

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two new ferries for the state of Alaska are underway, as well as completing a multimillion-dollar repair and refurbishment job on the LeConte, an Alaska Marine Highway System ferry.

“Vigor has done a really good job of taking what was a repair-oriented company and moving it to fabrication,” said Foti. “There’s no particular goal for the split between repair and fabrication.

Right now we are more than half newbuilding, but that’s a function of this particular year. I think we’ll be roughly half and half for quite some time.”

OIW does substantial non-marine fabrication in areas as diverse as nuclear containment, hydroelectric, aerospace and transit. It also has an active marine component, primarily building high-speed aluminum military boats, including the new Combatant Craft Medium (CCM) for the U.S. Navy. OIW was awarded the CCM contract last year, beating out United States Marine. The contract could be worth as much as $400 million through 2021.

“Oregon Iron Works also has a really substantial non-marine component, which gives us a volume hedge against needing marine fab,” said Foti. “The repair business also gives us a hedge against needing too much fab and the fab business gives us a hedge against needing too much repair, and all of them allow us to invest in leadership, technical skills, training, treating people right and innovation.”

Bruce Buls

Vigor CEO Frank Foti (pink hardhat) continues to expand his Portland-based company.

CROSS-POLLINATION With the addition of OIW’s skills in highly technical fabrication and systems integration, and now Kvichak’s skills in both production and one-off vessel design and construction, the new combination will “cross-pollinate and improve our genetics,” said Foti.

Cross-pollination is also a term used

by Doug Ward, director of shipyard development at Vigor Alaska, when describing the corporate culture at Vigor. For years, Ward was part of the management team that built up Alaska Ship & Drydock before it was purchased by Vigor.

“The way things have been working with Vigor, the cross-pollination amongst the yards has been fantastic,” he said. “Having new expertise coming up from the Lower 48 yards and teaching our folks new ways, and with our folks going down there, it’s been a rich learning experience for everybody.”

The Vigor bond also landed the LeConte ferry repair job in Ketchikan.

Originally the contract was awarded to

BALLAST

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Vigor’s yard in Portland, but the company got the job transferred to Alaska to facilitate overall workflow. “Workflow is defined as keeping your people continuously employed and effectively using your facilities,” said Foti.

In addition to moving the LeConte job to Alaska, Vigor has been bringing Alaskans down to Washington and Oregon to train them and keep them working. “We moved a bunch of people from Ketchikan into Tacoma and Portland for a long period last summer to supplement the workers in those locations. We also took advantage of cross-training opportunities,” said Foti.

Lower 48 workers have also spent time in the Alaska yards. This mobility between facilities not only promotes crosspollination, but Foti said it provides “much stronger financial security for the shipyard worker, wherever home is.”

Not only does Vigor mix it up with employees from its various facilities, it also mixes and matches union and nonunion workers. Seattle and Portland are union shops, Ketchikan and Seward

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aren’t. Kvichak is non-union while OIW is.

“We don’t worry about that barrier,” said Foti. “We have lots of doors at Vigor and if you want to work through a union arrangement, you can. If you want to work in a non-union arrangement, you can. You can also work cooperatively with someone who’s in the opposite situation, it happens every day here.”

Foti also said that he doesn’t see any shift of workers from non-union to union or vice versa. “There’s not a huge movement either way. But if you want to make that change, you can probably do it by joining a different company inside Vigor.”

TARGET MARKETS The Kvichak connection will help Vigor compete in three specific areas.

One is the Alaska fishing industry.

“That’s going to be a huge focus for the business, it already has been, they’ve

been working on it,” said Whittemore.

“That’s one. Two is oil on the North Slope. Shell is still moving forward, and that’s going to create huge opportunities. And then there’s foreign military sales.”

At Kvichak, export sales, both military and commercial, have gained more importance over the past several years.

The company just signed a contract for a pair of 62' Camarc-designed pilot boats for the Port of Duqm, Sultanate of Oman. Whittemore has traveled frequently to the Middle East and will certainly continue doing so after the merger. “We don’t know exactly how everything is going to be integrated, but you can count on them being integrated overseas with us,” he said. “Just adding the CCM to our foreign military sales channel is going to be fantastic.”

As with the other acquisitions, there will be no layoffs at Kvichak once it becomes a Vigor subsidiary. All three Kvichak partners will stay with Vigor,

Bruce Buls

Vigor Industrial

With the merger, Kvichak President Keith Whittemore (left) has a lot to talk about.

and all employees will continue their work. Eventually, the Kvichak and OIW brands will be positioned under the Vigor flag.

Meanwhile, the brainstorming continues in Seattle and Portland.

“Just take a look at all the facilities together and all the talent and what we’re capable of doing together,” said Whittemore. “It’s all pretty darn amazing.”

Future of the Inland Waterways Tuesday, March 31, 2015 New Orleans, Louisiana

Upcoming...

OSV Outlook for 2015: Bullish or Bearish Thursday, April 2, 2015 Houston, Texas

Learn more and Register at http://www.workboat.com/professionalseries/regional-summits 52

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3/16/15 4:16 PM

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WorkBoat Maintenance & Repair

First Run

T

he inaugural WorkBoat Maintenance & Repair Conference and Expo will be held in New Orleans April 14-16 at the Morial Convention Center.

The Expo is a new event from Diversified Communications, owners of WorkBoat magazine and The International WorkBoat Show. It is the only commercial marine expo dedicated to fleet and operations and maintenance professionals — those responsible for keeping vessels in top condition and in service.

The expo will feature 200 exhibitors showcasing products and services targeted specifically at vessel maintenance and repair.

The conference portion of the show is the first educational series specifically targeted to operations personnel, port captains, fleet managers, en54

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gineers and mechanics that must keep vessel fleets in good operational shape. Conference tracks include Structure & Hull, Power & Propulsion and Regulatory. You can view the full program at www.workboatmaintenanceandrepair.com/conference.

On Wednesday and Thursday, two exciting Keynote luncheons will take place. The first will feature Capt. Nick Sloane, salvage master for the wreck removal of the Costa Concordia, the largest wreck removal project in history. On Thursday, legendary coach Terry Bowden will share leadership and teamwork lessons drawn from his life on and off the field. Both keynote luncheons are included with each event registration.

To register for the conference and expo, visit www.WorkBoatMaintenanceandRepair.com.

Diversified Communications

The inaugural WorkBoat Maintenance & Repair Expo.

www.workboat.com • APRIL 2015 • WorkBoat

3/11/15 1:10 PM

Tuesday, April 14 7:30 am–6:00 pm 8:00 am–9:00 am 8:30 am–9:30 am 9:45 am–10:30 am

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Registration Hours Sinex User Conference Networking Breakfast Sessions: Training New Welders Improving Your Bottom Line through Condition Monitoring New Tier 4 Regulations Sessions: Physical Asset Management Strategy Structure & Hull Dual Fuel Systems Ensuring Compliance in Spare Part Procurement Networking Roundtable Lunch Discussion for all tracks Power & Propulsion Sessions: Quality Paint Applications Through the Use of Standards Vibration Monitoring Regulations Subchapter M Sessions: Understanding Corrosion Using Technology to Lower Maintenance Costs and Decrease Downtime and Costly Repairs Lubricants Regulations Networking Break Session with all Tracks Opening Reception with Sneak Peek of Show Floor (beer, wine and live music) Wednesday, April 15, 2015 (all events on show floor unless otherwise indicated)

7:30 am–5:00 pm Registration Hours 8:00 am–10:00 am Sinex User Conference 9:00 am–10:00 am Continental Breakfast at Presentation Theater featuring Workforce Summit 10:00 am–5:00 pm Show Floor Open 11:00 am–11:30 am Coffee Break & General Session on Tax Issue Solutions for Marine Maintenance 12:00 pm Keynote Luncheon – Nick Sloane, salvage master, Costa Concordia 2:00 pm–3:00 pm Sinex User Conference 2:30 pm–3:00 pm Refreshment Break & General Session on Budgeting for Maintenance

Sponsored by: 4:00 pm–5:00 pm Happy Hour at Presentation Theater Thursday, April 16, 2015 7:30 am–2:00 pm 8:00 am–10:00 am 9:00 am–10:00 am 10:00 am–3:00 pm 12:00 pm 2:00 pm–3:00 pm 2:00 pm–3:00 pm

Registration Hours Sinex User Conference Networking Continental Breakfast at Presentation Theater featuring Workforce Summit Show Floor Open Keynote Luncheon – Football coach Terry Bowden Sinex User Conference Happy Hour at Presentation Theater

www.workboat.com • APRIL 2015 • WorkBoat

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TO A BRAND NEW APRIL 14-16, 2015 CONFERENCE & EXPO WorkBoatMaintenanceandRepair.com CUSTOM-BUILT FOR YOU.

MORIAL CONVENTION CENTER | NEW ORLEANS, LA

Marine maintenance solutions from the experts you depend on

2015 PRICING

Before March 15

March 16April 13

April 14 and later

$495

$545

$595

All Access Pass (Includes all conference sessions and networking events on Tuesday, April 14Thursday, April 16)

Expo Only (Includes opening reception on Tuesday, April 14, and all networking events on Wednesday, April 15 & Thursday, April 16)

$50

$60

$75

If you are responsible for commercial vessel maintenance and repair, this event is for you.

• Full Day Education Program • Exhibit Hall • Opening Reception • Luncheon Roundtable Discussions • Happy Hours • Networking Events

Register now and save with this promotion

maintenance solutions from the experts you

code: 110110 WorkBoatMaintenanceandRepair.com 800-748-5049

Vessel

To exhibit call: Chris Dimmerling | 800-368-7932

depend on

Produced by Diversified Communications

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3/10/15 10:12 AM

WorkBoat Maintenance & Repair TUESDAY, APRIL 14 Training New Welders 9:45 AM – 10:30 AM Structure & Hull Track Shipyard welding can be more challenging than other industrial welding and requires continued innovation and training. This session will look at one of the most successful shipyard welding training programs in the U.S. Improve Your Bottom Line Through Condition Monitoring 9:45 AM – 10:30 AM Power & Propulsion Track Companies invest millions every year in vessel maintenance programs with the goal of preventing costly and sometimes catastrophic downtime. Condition monitoring by vibration analysis and, most recently, online monitoring systems popular in the oil and gas and other industries, has proven to be a vital component of successful and cost efficient maintenance programs. This presentation will provide an introduction to condition monitoring, vibration analysis and online monitoring systems, and showcase the attractive benefits that come along with these technologies. Case studies, methods, modeling, trending and application will be discussed to provide a real-world look at condition monitoring in action.

New EPA Tier 4 Regulations 9:45 AM – 10:30 AM Regulatory Track With EPA emissions standards continuing to evolve and become more stringent depending on the size and power of the engine, it is imperative that everyone who works to maintain and repair a vessel understands how the new standards will apply. With Tier 3 coming online this year, the industry will need to prepare for Tier 4 standards in the next two or three years.

Join industry professionals as they explain the requirements and what to expect.

Physical Asset Management Strategy 10:45 AM – 11:30 AM Structure & Hull Track

The Cost-Effective Alternative for Joining Both Plastic and Metal Pipes

An industry study discovered that 84% of equipment failures were caused by the way that equipment was designed, installed, operated and maintained — human induced defects. Only 12% of defects were due to wear and tear and 4% of defects were specifically due to age, according to the study.

Preventive, predictive and precision maintenance each has an impact on maintenance costs per operating hour, availability for operations and reliability. Many vessel operators could drive down costs, improve availability, safety and customer satisfaction if they would employ proactive reliability tools in defining their physical asset management strategy. This session provides some insight into using a set of tools in a cost effective way to achieve better equipment performance and lower total costs.

Dual Fuel Systems 10:45 AM – 11:30 AM Power & Propulsion Track The classification society DNV predicts that 50% of newbuild OSVs will burn LNG by 2020, with 10% of the world’s fleet dual-fueled by 2016.

This coming surge of liquefied natural gas (LNG) use has prompted many in the industry to consider dual-fuel-class vessels. It’s costly to outfit a vessel for LNG-diesel operation. Essentially, redundant systems with tankage and piping are required, which drives costs higher. Also, bunkering a cryogenic liquid for storage at -260°F requires careful design and planning. Then there is the loss of cargo capacity below deck. It’s been said that a 300' dual-fuel vessel has the below-deck capacity of a 250' OSV due to the larger storage

www.workboat.com • APRIL 2015 • WorkBoat

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NORMACONNECT® FGR PIPE COUPLINGS

In Stock and Ready to Ship

normaAmericasDS.com 1.855.NORMA2U A quality brand of NORMA Group

normaAmericasDS.com

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3/11/15 1:29 PM

WorkBoat Maintenance & Repair requirements for LNG. For all of these reasons and more, dual-fuel vessels present a challenge to those responsible for the maintenance and repair of these vessels. For those responsible for maintaining and repairing LNG vessels, this presentation will highlight the challenges and solutions.

Ensuring Compliance in Spare Part Procurement 10:45 AM – 11:30 AM Regulatory Track Spare part procurement sounds easy — you need a part and you order it.

However, because we live in a global marketplace, you need to consider a number of factors before you place that order. If you don’t go directly to the manufacturer, are you sure the part is the proper one? Can you trust the quality? Will the part arrive on time? Does it meet regulations? In this session, find out how your spare part procurement methods will ensure that your parts function properly and that they will be delivered in a timely fashion.

Quality Paint Application Standards 1:00 PM – 1:45 PM Structure & Hull Track

Diversified Communications

This presentation will focus on how specifying industry standards for surface preparation, coating application and quality control inspection vastly improves the quality of the application

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while minimizing the risk of premature coating failure. These consensus-based industry standards support the vessel owner’s goal of obtaining and, in many cases, exceeding the expected service life of the protective coating.

The discussion will walk the audience through a paint project explaining what consensus-based standards should be specified and what test practices followed at specific hold points during surface preparation, coating application and coating cure to assure the completion of a quality paint project.

Vibration Monitoring 1:00 PM – 1:45 PM Power & Propulsion Track This presentation will complement the Condition Monitoring session by exploring in greater detail how vibration monitoring can help lower your costs per maintenance hour and help prevent equipment failure. We’ll look at systems in general, specific products on the market, and how vessel operators are implementing the practice with success.

Subchapter M Impact on Maintenance 1:00 PM – 1:45 PM Regulatory Track Subchapter M appears to be getting close. In September 2014, the Coast Guard posted its regulatory agenda for the release of the towing vessel inspection final rule. However, the industry still awaits its final release. The rule is a chance to elevate safety in the inland barge industry through the rule’s key component — requiring a Towing Safety Management System. The proposed TSMS requirements say,

“Procedures must be in place to ensure safety of property, the environment and personnel.” But what procedures must be in place and how will those who maintain the vessels meet these requirements? This session will address those questions.

Understanding Corrosion 2:00 PM – 2:45 PM Structure & Hull Track In the arena of marine corrosion there are evolving standards that professionals need to stay abreast of. This session will help attendees understand the various types of corrosion, identify the causes of corrosion failures, choose the right materials for uses in marine environments, as well as select and use the proper protection methods against marine corrosion.

Using Technology to Lower Maintenance Costs and Decrease Downtime and Costly Repairs 2:00 PM – 2:45 PM Power & Propulsion Track Join Leslie Bell from Caterpillar as she details how technology products and connected services can help marine customers lower operation and maintenance costs, increase productivity, avoid downtime and costly repairs, adhere to increasing regulatory requirements, and work more safely and sustainably.

Regulations for Lubricants 2:00 PM – 2:45 PM Regulatory Track There are many industry names for environmentally sound lubricants on the market today. Unfortunately these names are confusing to the consumer.

Environmentally Acceptable Lubricants (EALs), Environmentally Friendly Lubricants and Environmentally Considerate Lubricants are all acceptable. The key factor is the standards set by the

www.workboat.com • APRIL 2015 • WorkBoat

3/11/15 1:22 PM

WorkBoat Maintenance & Repair

CAPTAIN NICK SLOANE

C

apt. Nick Sloane was the salvage master for the wreck removal of the cruise ship Costa Concordia, the largest and most expensive maritime salvage project in history. Sloane will deliver the keynote address on Wednesday, April 15, at the WorkBoat Maintenance & Repair Conference and Expo.

Capt. Sloane will provide an inside look at the engineering and logistical challenges of the successful parbuckling of the 114,500-ton Costa Concordia, a project that some said was almost impossible. Sloane has headed up several of the world’s most challenging salvage operations, often under intense public and private pressure. But the 30-month Costa Concordia salvage was the largest and most challenging wreck removal operation he has ever tackled.

TERRY BOWDEN

C

oach Terry Bowden was the nation’s youngest head coach at age 26 when he took over at Auburn University and went 11-0 in his first year there. Bowden, who led Auburn to three Bowl Championship Series games, has won several awards, including coach of the year. He was named the University of Akron’s 27th head coach on Dec. 22, 2011. Bowden left coaching for a broadcast career from 1998-2009. He was a college football analyst for ABC Sports. He was heard daily on his ESPN Radio Show in Central Florida and weekly on the Coaches Show on Sirius Satellite Radio. He is a former analyst for the National College Football Game of the Week on Westwood One Radio and also was a featured columnist for Yahoo! Sports. Bowden will deliver the keynote address on Thursday, April 16, at the WorkBoat Maintenance & Repair Conference and Expo.

EPA, not the generic name. No matter what the name of the lubricant, all are trying to meet the same standards. The EPA has chosen EALs as the term for the Vessel General Permit. There are pros and cons for each base oil technology. There are also maintenance-related issues which are affected by the EPA VGP recordkeeping requirements in Section 4.2 of the VGA. This session will address some of the findings to ensure the proper materials are being used. www.workboat.com • APRIL 2015 • WorkBoat

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WEDNESDAY, APRIL 15

Continental Breakfast at Presentation Theater featuring Workforce Summit Roundtable 9:00 AM – 10:00 AM Coffee Break & General Session – Tax Issues Regarding Marine Maintenance

11:00 AM – 11:30 AM Join the discussion on the various tax issues regarding marine maintenance such as using Capital Construction Funds to pay for maintenance and repairs of vessels and the ability to expense rather than capitalize these expenditures.

Keynote Luncheon 12:00 PM – 2:00 PM Captain Nick Sloane Salvage master for the wreck removal of the Costa Concordia, the largest single wreck removal project in history.

Refreshment Break & General Session – Budgeting for Maintenance 2:30 PM – 3:30 PM This session will provide an overview and discussion of asset life cycle costs and a sinking fund analysis to create maintenance budgets.

Sponsored by:

THURSDAY, APRIL 16 Networking Continental Breakfast and Workforce Summit Roundtable 9:00 AM – 10:00 AM Presentation Theater Keynote Luncheon 12:00 PM –1:00 PM Presentation Theater Terry Bowden Legendary coach Terry Bowden will share leadership and teamwork lessons drawn from his life on and off the football field.

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WorkBoat Maintenance & Repair

Diversified Communications

Apr. 14 - 16, 2015 Ernest N. Morial Convention Center New Orleans

Visit www.workboatmaintenanceandrepair.com

for the most up-to-date information about the show

Denotes WBM&R Expo Exhibitors Advertising In This Issue (Listings accurate as of 3/10/15) Absolute Coatings / POR-15 T: 8007260459 www.absolutecoatings.com

910

Apex Engineering Products Corp T: 6308208888 www.rydlyme.com

612

Bollinger Shipyards LLC T: 9855322554 www.bollingershipyards.com

619

AER Supply Ltd T: 2814743276 www.aersupply.com

425

Askew Industrial Corporation T: 3237277772 www.askewhardware.com

919

Buck Kreihs Marine Repair LLC T: 5045247681 www.buckkreihs.com

323

AERE Marine Group T: 9543452373 www.aeredockingsolutions.com

629

Aurand Manufacturing & Equipment Co T: 5135417200 www.aurand.net

407

Bullard Abrasives T: 4013333000 www.bullardabrasives.com

704

Airgas Gulf Coast T: 9858680002 www.airgas.com

218

AV-DEC 712 T: 8177389161 www.avdec.com

C & W Air Repair T: 5043629242 candwairrepair.com

709

Alexander/Ryan Marine & Safety Co T: 5044960151 www.alexanderryan.com

201

Aydin Displays Inc T: 6104047400 www.aydindisplays.com

624

Caterpillar Inc T: 3096751000 marine.cat.com

819

All American Paint T: 9852325959

311

BAE Systems Southeast Shipyards T: 2516904892 www.baesystems.com

601

CEJN Industrial Corporation T: 8474064485 www.cejn.com

802

Allemand Industries, Inc T: 5043405581 www.allemandindustries.com

930

Belzona of Baton Rouge T: 2257511930 www.belzonabatonrouge.com

725

Center Lift Inc T: 5042562129 www.center-lift.com

900

Allied Bearing & Supply T: 5047338000 www.alliedbearing.com

820

Bludworth Marine T: 7136441595 www.vesselrepair.com

929

Certified Labs T: 9724380132 www.nch.com

324

Alpha Professional Tools T: 2013373343 www.alpha-tools.com

306

Boats & Harbors T: 9314846100 www.boats-and-harbors.com

903

Clamptite LLC T: 9032885592 www.clamptite.com

525

ALS Tribology T: 2815991242 www.alsglobal.com

800

Boats.net 214 T: 8634656669 www.boats.net

Conrad Industries Inc T: 9853843060 www.conradindustries.com

528

American Chemical Technologies Inc T: 5172230300 www.americanchemtech.com

607

Bocatech Inc T: 9543977070 www.bocatechinc.com

Controlled Dehumidification T: 8102297900 www.cdims.com

729

60

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813

www.workboat.com • APRIL 2015 • WorkBoat

3/11/15 1:24 PM

WorkBoat Maintenance & Repair Cospolich Inc T: 9857250222 www.cospolich.com

304

Fisk Marine Insurance International T: 5043024400 www.fiskmarineins.com

701

JA Moody Company T: 6106473810 www.jamoody.com

826

Cygnus Instruments Inc T: 4102679771 www.cygnusinstruments.com

606

Force Control Industries Inc T: 5138680900 www.forcecontrol.com

428

Jessup Manufacturing T: 8153856650 www.jessupmfg.com

203

Dickson Marine Supply T: 8887550080 www.dicksonmarinesupply.com

310

Fronius USA LLC T: 2197345500 www.fronius.com

831

Jotun Paints Inc T: 5042073606 www.jotun.com

812

Donaldson Company Inc T: 9859667014 www.donaldsonfilters.com

318

Governor Control Systems T: 9544627404 www.govconsys.com

620

Karl Senner LLC T: 5044694000 www.karlsenner.com

301

Donovan Marine Inc T: 8003474464 www.donovanmarine.com

409

Grindex Pumps T: 7087812135 www.grindexpumps.com

902

KE Marine Inc T: 9043546566 www.kemarine.com

501

DRYCO 521 T: 6305417000 www.drycogroup.com

Gulf Coast Air & Hydraulics Inc T: 2516666683 www.wegetstuffdone.com

724

Key Electronic Solutions T: 5047340641 keyelectronics.net

527

Duramax Marine LLC T: 4408345400 www.DuramaxMarine.com

728

H.I.S. Fire and Safety Equipment T: 3376858400 hisfireandsafety.com

212

Laborde Products Inc T: 9858920107 www.labordeproducts.com

419

Eagle Industries T: 5047333510 www.eagleind.com

708

Helm Operations T: 2503601991 www.helmoperations.com

209

Law Valve of Texas T: 7134530413 www.lawvalveoftexas.com

329

Elliott Bay Design Group T: 2067823082 www.ebdg.com

412

Hougen Manufacturing Inc T: 8106357111 www.hougen.com

801

LeBlanc & Associates LLC T: 9858767982 www.leblancandassociates.com

510

engines inc T: 8702683700 www.enginespower.com

430

Hug Engineering T: 3233150290 hug-engineering.com

825

Lifting Gear Hire Corporation T: 7085984727 www.lgh-usa.com

231

ERL Commercial Marine T: 8129488484 www.erlinc.net

331

iba America LLC T: 7708862318 www.iba-america.com

921

Lock-N-Stitch Inc T: 2096322345 www.locknstitch.com

523

Esgard Inc T: 3372346327 www.esgard.com

322

IBIX USA T: 7273224611 www.IBIXUSA.com

219

Logan Clutch Corp T: 4408084258 www.loganclutch.com

429

Fairbanks Morse Engine T: 6083644411 www.fairbanksmorse.com

901

Independent Diving Service T: 5044367775 www.independentdiving.com

700

Lokring Gulf Coast T: 2253336445 www.lokring.com

804

Fairmont Supply T: 7244703524 www.fairmontsupply.com

822

Industrial Diesel Service LLC T: 9856321692 www.team-diesel.com

206

Lopolight 511 T: 4532485030 www.lopolight.com

Faststream Recruitment Inc T: 9544679611 www.faststream.us

622

International Paint LLC T: 7136845856 www.international-marine.com

319

Mactech Inc T: 6513887117 www.mactechonsite.com

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213

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WorkBoat Maintenance & Repair MAN Diesel & Turbo North America Inc T: 7137804200 www.mandieselturbo.us.com

809

T: 8005269328 www.motionindustries.com

www.olympus-ossa.com

618

Patterson Manufacturing T: 4123222012 www.pattersonmfg.com

811

511

Motor-Services Hugo Stamp Inc T: 9547633660 www.mshs.com

413

PPG Protective & Marine Coatings T: 4124343909 www.ppgamercoatus.ppgpmc.com/

613

823

MTU America Inc T: 3135927000 www.mtu-online.com

330

Preferred Electric T: 3373655516 www.preferredelectric.net

625

915

Nabrico T: 6154421300 www.nabrico-marine.com

605

R.W. Fernstrum & Company T: 9068635553 www.fernstrum.com

519

626

NACE International T: 2812286200 www.nace.org

307

Racor Division of Parker Hannifin T: 7134678908 www.parker.com/racor

424

230

National Association of Marine Surveyors T: 7576389638 www.namsglobal.org

609

MMLJ Inc T: 7138692227 www.mmlj.com

406

National Specialty Alloys Inc T: 2813452115 www.nationalspeciality.com

Red-D-Arc Inc T: 2256777676 www.reddarc.com

221

610

NBK Maintenance LLC T: 9048266411 www.nbkmaintenance.com

711

MONTI Tools Inc T: 8326237970 www.monti-tools.com

Redfish Rental T: 9857020223 www.redfishrental.com

805

707

Northern Lights T: 2067893880 www.northern-lights.com

216

Montipower Inc T: 5408371138 www.mbxit.com

Olympus Scientific Solutions Americas T: 7814193905

320

Republic Diesel T: 5025612200 www.republicdiesel.com

923

RSC Bio Solutions T: 7046841994 www.rscbio.com

508

Mast Products/E-LED Lighting Inc T: 5618457460 www.e-ledlighting.com/ Maxim Watermakers T: 3186292460 www.maximwater.com McDermott Light & Signal T: 7184563606 www.mcdermottlight.com Meltric Corporation T: 4144332700 www.meltric.com Millner-Haufen Tool Company T: 8883653301 www.millnertools.com

Motion Industries Inc

325

RCI Technologies East 913 T: 3015354716 www.rcitechnologies.com/where/detail/fuelpurification-technologies-us

Diversified Communications

Rustibus 509 T: 8322037170 www.rustibus.com

62

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Schaeffer Manufacturing Co T: 3602200609 www.schaefferoil.com

507

Schoellhorn-Albrecht Machine Company T: 3149653339 www.schoellhorn-albrecht.com

411

Schottel Inc T: 9853468302 www.schottel.de

506

www.workboat.com â&#x20AC;˘ APRIL 2015 â&#x20AC;˘ WorkBoat

3/11/15 1:26 PM

WorkBoat Maintenance & Repair Separator Spares & Equipment LLC T: 9853460122 www.separatorequipment.com

512

Shield Technologies Corp.

T: 6512893067 www.envelopecovers.com

200

Ship-2-Shore/LCC Ltd T: 2504777325 ship-2-shore.com/

727

Signal International LLC T: 2515442620 www.signalint.com

418

Silva Non Skid Solutions, LLC T: 9205962983 www.silvanonskidsolutions.com

830

Simrad - Navico T: 9184376881 www.navico.com

422

Sinex Solutions T: 2187221076 www.sinexsolutions.com

912

SKF USA Inc T: 2674366840 www.skf.com/marine

524

South Coast Electric Systems T: 2285330002 www.aeti.com/sces

713

SSPC: The Society for Protective Coatings T: 4122812331 www.sspc.org

308

Strong Hold Products T: 5023634175 www.strong-hold.com

312

STX Service Americas LLC T: 7139340056 www.onestx.com

721

Sulzer Mixpac USA Inc T: 6036812712 www.sulzermixpacusa.com

608

Superior Energies Inc T: 8002897341 www.insulationsei.com

922

Diversified Communications

Sherwin-Williams 401 T: 8005245979 www.sherwin-williams.com/protective

Tero Marine AS T: 4755942460 www.teromarine.no

611

www.victaulic.com 309

TFT Pneumatic Industrial Tools T: 7136869400 www.tft-pneumatic.com

313

Viega LLC T: 3164257400 www.viega.com

702

Thermamax Inc T: 6303405682 www.thermamax.us

917

VO Baker Company T: 4402551020 www.vobaker.com

300

Thermcor Inc T: 7576227881 www.thermcorinc.com

731

VT Halter Marine Inc T: 2286966888 www.vthaltermarine.com

321

Timco Industries Inc T: 8129458988 www.timcomarine.com

628

Wartsila North America Inc T: 2812336200 www.wartsila.com

703

TMS - LevelCom T: 5032858947 www.levelcom.net

818

WCR Inc T: 3096970389 www.wcr-regasketing.com

202

Trac Ecological T: 9549872722 www.trac-online.com

719

Williams Machine Works T: 2287122667 www.williamsmachineworks.net

529

Turbonetics T: 8055810333 www.turboneticsinc.com

410

Wooster Hydrostatics Inc T: 3302636555 www.woosterhydrostatics.com

803

Versitec Marine T: 9058345566 www.versitec.ca

627

Wooster Products Inc T: 3302642854 www.wooster-products.com

706

Victaulic Company T: 6105593567

723

Yacht Spares T: 9543580288 www.yachtspares-online.com

www.workboat.com • APRIL 2015 • WorkBoat

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3/11/15 1:27 PM

LOOKS BACK APRIL 1965

• The waterways industry may benefit from the attention Congress and the administration are giving to civil rights and Southeast Asia. These issues make it less likely that any transportation legislation is addressed, including attempts

by Congress to impose tolls on waterways operations and additional controls on operators. So far, there is no major waterways

legislation in the works.

• The first 150'×34'×11' steel supply vessel built by Halter Marine Services Inc., New Orleans, the Marc I, left in early March on a 9,500-mile delivery trip to Alaska. On the trip, the Marc I delivered two 65' crewboats piggyback style that it was carrying on its cargo deck. The three boats were built for Western Offshore Drilling and Exploration Co., Santa Fe Springs, APRIL 1975 Calif. The Marc

I is powered by two General Motors V12-71N diesel engines that deliver a total of 1,330 hp at 1,800 rpm. The engines drive 4-bladed 60"×54" propellers through Falk 5:1 reverse-reduction gears. The package gives the vessel a top speed of 16 mph.

• Over 2,800 exhibit booths repreAdministration within the Departsenting over 1,200 companies have ment of Transportation. “It is clear that been reserved for the seventh annual piecemeal approaches by multiple fedOffshore Technology Conference set eral agencies to the rapid developments for May 5-8 in Houston. This reprein this major transportation system sents an increase of 80,000 net square can no longer be tolerated,” Humphrey feet over the total exhibit area for OTC said. in 1974. Nine countries will have national displays this year.

• Sen. Hubert Humphrey, D-Minn., has introduced a bill to create a Federal APRIL 1985 Inland Waterways • Edison Chouest Offshore, Galliano, La., has signed a contract with Shell Oil for the construction of a 250'×56'×16'6" seismic vessel. Propulsion will be provided by a pair of EMD 16-645E70 diesels driving CP wheels.

Delivery is set for Jan. 1, 1986.

• Marinette Marine Corp. recently delivered the 15th of 52 50'×14'4" workboats for the Naval Sea Systems 80

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Command. The Marinette, Wis.-based yard is currently delivering a boat a week with the final boat scheduled for delivery in December.

• Unstable oil prices and an uncertain future has Zapata Corp., Houston, seeking to acquire a large offshore driller or to merge its 24-rig fleet in a joint venture, according to Ronald C. Lassiter, Zapata’s president and CEO. www.workboat.com • APRIL 2015 • WorkBoat

3/9/15 1:06 PM

BOOTH #728

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3/13/15 12:36 PM

PROPELLING

EXCELLENCE

“We have found the Steerprop Z Drives to be reliable and efficient.

The support from Karl Senner, LLC is professional and outstanding.”

Otto Candies, Jr., Otto Candies, LLC

BOOTH #301

Karl Senner, LLC would like to congratulate Otto Candies, LLC on the delivery of the M/V Agnes Candies.

KARL SENNER, LLC equipped this vessel with:

• (2x) Steerprop SP 25 Azimuth Thrusters • (2x) Bow Thrusters

WEST COAST Karl Senner, LLC. Seattle, WA (425) 338-3344

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EAST COAST Karl Senner, LLC. New York, NY (917)722-8118

PADUCAH SERVICE FACILITY Karl Senner, LLC. 2401 Powell Street Paducah, KY

GULF COAST HEADQUARTERS Karl Senner, LLC. 25 W. Third St. Kenner, LA (504) 469-4000

3/10/15 10:08 AM