WorkBoat July 2016 by WorkBoat

NY Waterway • Electronics • Barges ®

IN BUSINESS ON THE COASTAL AND INLAND WATERS

JULY 2016

Slow Tow

The inland waterways have hit a speed bump.

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ON THE COVER

A coal barge tow on the Ohio River. Photo by Brian Gauvin JULY 2016 • VOLUME 73, NO. 7

FEATURES 22 In Business: Ferry King Arthur Imperatore and NY Waterway have helped revive the New York-New Jersey private ferry industry.

26 Vessel Report: Bottoming Out A surge in construction and a slowdown in demand has idled hundreds of barges.

36 Cover Story: Undertow The inland waterways have hit a rough patch.

BOATS & GEAR

30 On the Ways New 110,000-bbl. ATB for Moran from Fincantieri Bay Shipbuilding. Hanson Boat delivers 6,700-hp escort tug to Dunlap Towing. 36' research vessel for New Jersey university from SW Boatworks. Master Boat delivers 221' OSV to Seacor. Kvichak completes fourth 45' response boat-medium for the New York Police Department. Second 4,200-hp tug from St. Johns Ship Building for Vane Brothers. Shell Offshore takes delivery of third LNG OSV chartered from Harvey Gulf International Marine. Eastern launches third of four 5,150-hp Z-Tech tugs for Suderman & Young Towing.

42 Radar Love New and improved electronics equipment from manufacturers.

AT A GLANCE 8 8 9 10 12 14 15

On the Water: Technology — Part II. Captain’s Table: The Belle wins the Great Steamboat Race. OSV Day Rates: A new OSV operator in the U.S. Gulf? WB Stock Index: Workboat stocks lose ground in May. Inland Insider: A freight transportation recession? Insurance Watch: Don’t forget the shoes, hats and gloves. Legal Talk: The dominant mind doctrine — Part I.

NEWS LOG 16 16 16 18 18

Senate subcommittee votes to add funding for new icebreaker. Upper Miss corn movements highest since 2010. Industry demands for tugs: More horsepower and improved technology. New weather information for inland operators. Offshore safety culture needs improvement.

www.workboat.com • JULY 2016 • WorkBoat

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42 DEPARTMENTS 2 Editor’s Watch 6 Mail Bag 46 Port of Call 55 Advertisers Index 56 WB Looks Back

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Editor'sWatch

Barging is resilient

or the inland waterways, the headlines in this issue seem to paint a bleak picture. In our cover story that begins on page 36, Pamela Glass reports that an unusual pattern has emerged this year in the inland barge industry — a down cycle in almost all commodities carried by barge. In his Inland Insider column on page 12, Kevin Horn writes that the domestic freight transportation sector is in a recession. As a result of this, as Senior Editor Ken Hocke reports in his barge market report on page 26, a construction surge combined with weak demand has laid up hundreds of barges. It all sounds ominous. Coal traffic continues to decline and is a big culprit. There’s also weak demand from China and an economic slowdown in other parts of the world. Add to this the steep drop in oil prices and a strong dollar that makes exports more expensive. Nearly every sector of the barge business is facing difficult conditions. A few tank barge operators have been hurt by the low oil prices combined with pipeline projects that have come online. The surge in U.S. petroleum production led some tank barge companies to expand their fleets. Now, demand to move crude by inland barge has softened. But it is not as bad as it looks. With the exception of coal, barge traffic so far this year has been somewhat resilient. Grain seems to be making a comeback with an improving export market. Corn has been a bright spot. With South American producers having troubles with their crops and ethanol production nearing its peak, there is a lot of U.S. corn available on the export

David Krapf, Editor in Chief

market. Another bright spot has been chemicals, which are ahead of previous years’ numbers. Mark Knoy, CEO at American Commercial Lines, said they haven’t been hit too hard by oil’s woes because of its diversified portfolio. Only about 6% to 7% of ACL’s earnings comes from crude transport. He said tank barge utilization remains high, mostly due to strong barge demand for other liquid commodities like ethanol, petrochemicals, glycol and light condensates. As Kevin Horn writes, so far this year, it appears barge traffic is recession proof. Let’s hope it stays that way.

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 16 Printed in U.S.A. by Diversified Business Communications.

www.workboat.com • JULY 2016 • WorkBoat

6/6/16 4:57 PM

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We provide custom training Solutions for One individual or to large fleets · Emergency Response · Shipboard Safety · Basic Safety Training · Marine Fire Training

Building a culture of safety since 1989.

TRAINING THAT WORKS FOR YOU!

PUBLISHER

Jerry Fraser jfraser@divcom.com

EDITOR IN CHIEF

David Krapf dkrapf@divcom.com

SENIOR EDITOR

Ken Hocke khocke@divcom.com

ASSOCIATE EDITOR

Kirk Moore kmoore@divcom.com

ONLINE EDITOR

Ashley Herriman aherriman@divcom.com

CONTRIBUTING WRITERS

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

Dylan Andrews

ART DIRECTOR

PUBLISHING OFFICES

Main Office: 121 Free St., P.O. Box 7438 • Portland, ME 04112-7438 • (207) 842-5608 • Fax: (207) 842-5609

Southern/Editorial Office: P.O. Box 1348 • Mandeville, LA 70470 • Fax: (985) 624-4801 Subscription Information: (978) 671-0444 • cs@e-circ.net General Information: (207) 842-5610

ADVERTISING PRODUCTION & ADVERTISING PROJECT MANAGER Wendy Jalbert 121 Free St., P.O. Box 7438 • Portland, ME 04112-7438 (207) 842-5616 • Fax: (207) 842-5611 wjalbert@divcom.com EASTERN U.S. AND CANADA EUROPE Kristin Luke (207) 842-5635 • Fax: (207) 842-5611 kluke@divcom.com WESTERN U.S. AND CANADA PACIFIC RIM Susan Chesney (206) 463-4819 • Fax: (206) 463-3342 schesney@divcom.com GULF / SOUTHERN U.S. SOUTH AND CENTRAL AMERICA Jeff Powell (207) 842-5573 • Fax: (207) 842-5611 jpowell@divcom.com

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EXPOSITIONS (207) 842-5508 • Fax: (207) 842-5509 Producers of The International WorkBoat Show, WorkBoat Maintenance & Repair Conference and Expo, and Pacific Marine Expo www.workboatshow.com EXPOSITION SALES DIRECTOR Chris Dimmerling (207) 842-5666 • Fax: (207) 842-5509 cdimmerling@divcom.com

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Agrees that mariners need more rest

agree with the letter from George Quick of the International Organization of Masters, Mates & Pilots, that appeared in the May issue (“MM&P blasts study on two-watch system”). My experience from deckhand to captain to company owner has provided me with perspective from both sides. The amount of rest one gets on a six-on/six-off watch is unacceptable and anyone who thinks it is adequate is dead wrong. To solve the problem, a swing crew, from 3 p.m.-11 p.m., should be added to the vessels. Another method that I do not favor is 12-on/12off, because too much fatigue builds up day after day. The industry would struggle finding enough captains, pilots, mates, ABs, and deckhands in the short term. But if the industry or specific companies changed over a few vessels in their fleets and started an

eight-hour watch program to see if it worked, we may see less turnover. Lets face it, the work is unsafe on deck, and pilots have their hands full working 12 hours per day, and captains are also tasked to be a “shipboard manager” in addition to operating the vessel. Engineers, strikers, cooks etc. should stay on the same, six-on/six-off schedule. Their work is more routine and stress levels are reduced in most watch conditions. Sometimes weather, river conditions, and lock and fleet delays alleviate the problem on inland vessels and crewmembers can get a break. Inland vessels on routes with constant delay issues could keep the same work schedule. Specific vessels that routinely have fatigue complaints, due to long trips without consideration for the crew, should be reviewed and a voluntary program instituted by the company. This would be much better than a Coast Guard-mandated program

that would try to make the “shoe fit” for everyone. Look at what has happened to the TWIC program. Anytime the Coast Guard mandates a program it is very broad, cost is secondary, and the responsibility always falls on the crewmembers and owners. Most large inland marine companies have plenty of cash to buy new vessels and barges, and invest in terminals, but crewmembers are always asked to do more with less. Unless marine operators/owners voluntarily solve the problem, the Coast Guard will get around to it sooner than we think. The amount of money, for example, that an Ingram Barge Co. saves in taxes each year from depreciating its fleet of boats and barges could more than finance swing crews. Harry E. Zubik Owner C-MEP Services Co. Pittsburgh,

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On the Water Technology — Part II

S By Joel Milton

Joel Milton works on towing vessels. He can be reached at joelmilton@ yahoo.com.

o, clever humans with their opposing thumbs and large brains have managed to invent and harness all kinds of technology that enables them to do what exactly? We have navigation electronics that tell us — most of the time we hope — precisely where we are in real time on land, sea, or in the air. Radar allows us to see well beyond what the naked eye can. When applied correctly, radar can prevent vessels from colliding with one another and help navigate along coasts and rivers with greater safety. ARPA takes collision avoidance to amazing levels of capability and sophistication. Computercontrolled engines monitor themselves with sensors (that never, ever fail!) that stand by tirelessly to alert us well in advance of serious trouble. But there are limits to what technology and automation can do for us, even if we’re properly utilizing and maintaining it. Technology won’t

Captain’s Table The Great Steamboat Race of 2016

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.

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n 1963, the Belle of Louisville began racing the Delta Queen during festivities leading up to the Kentucky Derby in Louisville, Ky. The event eventually was named the Great Steamboat Race and the intense competition between these two historic vessels became an important part of Derby Week for many years. In 1999, my company, BB Riverboats, purchased the Belle of Cincinnati. We petitioned the Kentucky Derby Festival to be a part of the race and in 2000 the Belle of Cincinnati participated in her first steamboat race. Naturally, being a rookie, we were nervous and had the jitters over how we would fit in and perform. Since then, the Belle of Cincinnati has won only twice. This, in my opinion, is because the Belle of Louisville has devised innovative ways to take advantage of their “home turf.” The Derby Festival organizers claim that you cannot break the rules if there are no rules. In 2004, the Belle of Cincinnati won its first

force you to stand a proper watch, deck or engine, and pay attention to the things that are the most important at any given moment (often a moving target). It can offer up a wealth of information, which may or may not be entirely true, but won’t necessarily be able to prioritize it for you in a way that is helpful in the heat of the moment. Technology can’t make you look out the window as often and for as long as you should, or compel the back-watch deckhand to diligently check around the engine room machinery for potential trouble at 0230 while the chief engineer is asleep. Most importantly, technology can’t prevent you from misusing it, overrelying on it, or developing other bad habits while using it. In the end, all the fancy technology in the world can’t and won’t save you from yourself. For that you need the amazing technology you were born with (your brain) coupled with as much knowledge as possible, good judgment (which must be taught), good habits, and the discipline to stick with them consistently despite many distractions. Livelihoods, and lives, depend on it.

race. Then Louisville Mayor Jerry Abramson, who now works in the White House under President Obama, was so incensed that the Belle of Cincinnati beat his hometown vessel that he had the judges disqualify us under the “no rules policy.” In retaliation, the angry crew of the Belle of Cincinnati decided to “borrow” the mayor’s horse (which was actually a statue of a horse) and stow it onboard our vessel for the long trip upriver to Cincinnati. As you can imagine, this act made headline news locally. As an aside, Kentucky still does not tolerate horse theft, even if it is a statue of a horse. Needless to say, the horse statue was ultimately returned to the mayor, but the rivalry continues today unabated. This year’s race was no less intense and the Belle of Cincinnati won by a landslide. As an added bonus, we also won the big Four Roses Bourbon tasting with a special Belle of Cincinnati barrel of bourbon. The Great Steamboat Race is a huge success each year — win or lose — for both passengers and crew. In addition to being a fun event, it promotes the river and river transportation. We’re honored to have been a part of it. www.workboat.com • JULY 2016 • WorkBoat

6/6/16 11:45 AM

OSV Day Rates

MAY 2016 DAY RATES, FLEET UTILIZATION VESSEL TYPE

A new U.S. Gulf offshore service vessel operator?

MAY '15

UTILIZATION MAY '16

1,999 & below $ 8,575 $ 8,575 $ 9,729 93% 2,000-2,999 $12,785 $12,785 $18,324 100% 3,000-3,999 $19,033 $19,033 $27,812 100% 4,000-4,999 $20,120 $20,120 $29,500 100% 5,000 & above $24,967 $24,967 $34,200 100%

MAY '15 74% 68% 88% 88% 100%

CREWBOATS Under 170' $ 3,558 $ 3,558 $ 3,654 42% 170' & over $ 5,653 $ 5,653 $ 6,082 79% SOURCE: WorkBoat survey of 32 offshore service vessel companies.

Zavala said these goals are predicated on reasonable plans and assumptions. In the near term, the plan for the company’s foreign presence is to establish a network in preparation for an anticipated market improvement in 2017. They want to be, as Zavala puts it, “early to the party.” In addition, the company

www.workboat.com • JULY 2016 • WorkBoat

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MAY '16

SUPPLY (DWT)

By Bill Pike

ith oil prices dead in the water and vessel and rig stackings increasing daily, why would an offshore service vessel company enter the U.S. Gulf of Mexico? The company is Marinsa, a Mexican operator with 31 vessels that work in Mexican waters in the Gulf of Mexico. Marinsa is joined in its U.S. move by sister company Oceamar which provides a wide range of vessel services from brokerage to helicopters to navigation permits to marine supplies. The companies’ parent is Cemza, which operates several other subsidiaries such as Bistro (offshore catering), Varaderos Zavala (shipyard), Presco (personnel supply), Enermar (marine fuel) and Venus (offshore equipment, including living quarters, containers, tanks, etc.). The company, founded some 50 years ago, began servicing offshore service vessels in its Mexican shipyard in 1998-1999. By early 2000, the shipyard was serving only the oil and gas sector. In 2004, the company began to build its OSV fleet with the purchase of the Palizada, a 158' supply vessel. The company currently gets half its revenue from contracts with Pemex. The other half comes from private sector companies such as seismic companies Dolphin Geophysical, PGS, Western Geco and CGG. At the beginning of 2015, Cemza decided to enter the international market. The company has opened three offices in Texas — Brownsville, Corpus Christi and Houston — and has its sights on additional locations in the U.S. Gulf. The company, according to Marinsa CEO Jose Zavala, has its eyes on other foreign locations as well, including the Middle East. The company has what would seem to be very ambitious goals in the light of depressed oil and gas prices. But,

AVERAGE DAY RATES APR. '16

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STOCK CHART

WorkBoat Composite Index

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

Index dips 1.4% in May

fter three consecutive positive months, the WorkBoat Composite Index lost ground in May. The Index fell almost 22 points, or 1.4%. For the month, losers topped winners by a ratio of more than 3-1. Several operators were among the big percentage losers in May including

INDEX NET PERCENT COMPARISONS 4/29/16 5/31/16 CHANGE CHANGE Operators 330.65 327.89 -2.76 -0.84 Suppliers 2472.27 2420.44 -51.83 -2.10 Shipyards 2021.63 2058.36 36.73 1.82 Workboat Composite 1585.24 1563.49 -21.75 -1.37 PHLX Oil Service Index 180.32 164.99 -15.33 -8.50 Dow Jones Industrials 17773.64 17787.20 13.56 0.08 Standard & Poors 500 2065.30 2096.96 31.66 1.53

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Gulfmark Offshore, Tidewater and Hornbeck Offshore Services. Six operators in the WorkBoat Index are also components of the PHLX Oil Service Sector Index, which lost 8.5% in May. Shares in New Orleans-based OSV operator Tidewater lost over 50% in May after the company missed earnings estmates and announced that a covenant violation could occur as early as mid-August. Lenders then could declare the company to be in default and accelerate its debt. At its May 26 earnings call with analysts, Tidewater CEO Jeff Platt said that the company has secured temporary waivers, including receiving an audit opinion without any modification, that “provides us with additional time to continue negotiations with our lenders and noteholders through August 14.” That is when Tidewater expects to report results for the fiscal 2017 first quarter. Platt assessed the state of the market during the call. “Our outlook for our industry has become somewhat more optimistic in recent weeks, as crude oil prices have been rising,” he told analysts. But Platt said the increase happened so quickly that customers had little time to assess whether the new prices were sustainable and warranted an adjustment of their outlooks or spending plans. “Given the lag between higher oil prices and the need for more offshore drilling, we would be surprised if our market shows meaningful improvement within the next 24 months,” Platt said.

— David Krapf

www.workboat.com • JULY 2016 • WorkBoat

6/6/16 11:45 AM

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Inland Insider A recession for parts of the freight sector?

e’re almost halfway through 2016 and several sectors of the domestic freight transportation system can be generally described as being in a recession. The first quarter of 2016 was weak compared to 2015. However, the expectations were for improved results in the second quarter. That has not happened. A good gauge of the domestic freight sector, rail stock prices, rose early in the second quarter after a dismal 2015 fourth quarter and weak first quarter. Stock prices for rail companies fell as the reality of diminished second quarter traffic set in. Coal traffic has continued to decline. The largest rail coal carrier, Burlington Northern Santa Fe (BNSF),

reported that of 500 coal train sets about 220 were in service and about 40 of these are expected to be idled. Western coal volumes in the Powder River Basin are down about 40%. Barge coal traffic for domestic consumption for 2016 is down about 25% compared to 2012. Beyond coal, 2016 rail traffic is very weak across most commodities compared to 2015. Union Pacific Railroad (UP) expects to see a second quarter percentage volume decline in the low teens. A 30% drop in coal, an 18% drop in intermodal, and a 12% decline in industrial products lead volume declines in 2016. CSX Transportation anticipates mid- to high single-digit percentage drops in nearly all major traffic categories in the second quarter of 2016 compared to 2015. Fortunately, with the exception of coal, barge traffic in 2016 suggests that so far it is relatively recession proof. Total barge traffic for 2016 is on par

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with recent prior years dating back to 2012. This is remarkable given the weakness in the coal sector. By Kevin Horn Other major barge commodity groups have seen growth in 2016 compared to prior years. For example, chemicals are running notably higher in 2016 compared to previous years, while food and farm products and petroleum are about the same. Weak economic growth in the manufacturing sector is particularly evident in the dismal rail traffic statistics. This suggests that the economic recovery has softened. This weakness will not trickle down immediately to the brownwater sector, but the outlook for the rest of 2016 is hardly rosy. Kevin Horn is a senior manager with GEC Inc., Delaplane, Va. He can be contacted at khorn@gecinc.com.

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www.workboat.com • JULY 2016 • WorkBoat

6/6/16 11:45 AM

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5/31/16 8:53 AM

Insurance Watch Work shoes, hard hats and gloves

ou’ve hired your summer workers and they are well into their training regime. Did you rehire anyone from last year? If so, I hope you still treated them like newbies. I can only speak for myself but I can’t remember much

from last summer. Safety comes first. When at a shipyard do your workers have the correct safety gear to do the job safely? Start with footwear. Sandals don’t cut it. There are a lot of you out there who will argue this point,

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but I’ve spent a career paying for injuries that occur on land and out on the water. Feet, hands and eyes all top the list of By Gene body parts that get McKeever injured on the job. First, get good footwear. Eye protection comes next. Always demand that all employees and crew wear appropriate eyewear. You might think that it’s not needed in many areas, but I’ve seen some permanent eye injuries occur in places where you’d never think to require safety glasses. Most new styles of safety glasses are very comfortable no matter how hot it is. Hard hats are next on my list. They serve one purpose: To protect the wearer from traumatic head injury. Are they uncomfortable? No, modern safety hats are not. Are they expensive? No way. Do they protect your valuable employees? You bet they do. Next are gloves. And, yes, they should be worn in the summer. I remember a few years ago when safety gloves were very uncomfortable so bare hands were the only answer. At the end of each day, employees would break out the pumice hand cleaners to get cleaned up before going home. With the new safety gloves, now employees just take them off, do a simple wash up and go home without hand injuries. Be sure to contact your workers’ compensation loss control department or your insurance agent to see if your insurer will sell you safety items at a discount or even give them to you. They know how much cheaper it is to protect your employees rather than pay for their injuries. It’s not about the money. It’s about a safe workforce. Gene McKeever is a marine insurance consultant and instructor. He was a marine insurance agent for 39 years. He can be reached at gene@mckeeverconsulting.net or 207-596-1738.

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www.workboat.com • JULY 2016 • WorkBoat

6/6/16 11:45 AM

Legal Talk

A river incident and the dominant mind doctrine — Part I

recent incident on the Illinois River focused attention on the dominant mind doctrine. Court decisions sometimes reference the doctrine in multivessel situations, where it can be difficult to put a finger on exactly who was ultimately responsible for a mishap. The doctrine essentially says that the vessel that is liable is the one whose people are in control of a given operation. In the Illinois River case, a towing vessel attempted to navigate past the Marseilles Dam into the Marseilles Canal. Another By Tim Akpinar towing vessel, together with two Corps of Engineers tugs, agreed to assist the vessel and its tow. Unfortunately, the tow broke apart somewhere around Mile 247, with seven barges either hitting the dam or sinking upstream. After the incident, the owner of the well-meaning towing vessel filed a complaint in admiralty for exoneration from or limitation of liability. In plain English, a vessel owner attempts to legally get off the hook, or at least be on the hook for no more than the postaccident value of its vessel plus freights pending. We’ve seen limitation of liability arise in a number of high-profile cases, most recently in the sinking of the El Faro in October. In the wake of the Illinois River accident, there were lawsuits for property damages. While it’s easy enough for lawyers and investigators to scrutinize logbooks with 20/20 hindsight from the comfort and safety of an office, it appears this situation was a brutish,

white-knuckle ordeal when it unfolded. In reviewing the radio transmissions, crew used resourcefulness and courage to try and keep a dire situation from turning hopeless: “We may need some help down here ... We got about 12,000 horse here, we’re barely holding 20-29 barges ... the situation is getting worse. They’re opening up more and more dam all the time.” When the situation took a turn for the worse and barges hit the dam and

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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sank, one wondered how a court would view this legal mess. Would it give the benefit of the doubt to the well-meaning vessel that came in to assist the first vessel? The answer lies in the application of the dominant mind doctrine.

W W W. D AV I D C L A R K . C O M

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JULY 2016

NEWS LOG NEWS BITTS

Scientists collect ice samples around the Coast Guard icebreaker Healy during a 2015 Arctic science mission.

UPPER MISS CORN BARGE MOVEMENTS HIGHEST SINCE 2010

C Coast Guard photo PO2 Cory Mendenhall

orn tonnages through Mississippi River Locks 27 near St. Louis hit their highest level since 2010 during the first week of May, the U.S. Department of Agriculture reported. During the week ending May 7 some 706,000 tons passed through the locks, the highest count since May 29, 2010. Good navigation conditions and ample barge supply have facilitated the movement of barged grain, the USDA said. The agency added that barge rates on the Upper Mississippi and Illinois rivers have been steady and are currently 35% to 38% below the five-year average. The industry newsletter River Transport News noted global grain prices had just spiked amid concern over weather conditions affecting South American corn and soybeans. Futures contracts for May shot from a low $3.51/bu. to $4/ bu. — Ashley Herriman

Congress moves to add $1 billion for first new icebreaker in 25 years

he U.S. Senate added $1 billion to the 2017 Defense Appropriations Bill to fully fund construction of the first U.S. polar icebreaker in a quartercentury, following a year of bipartisan momentum for beefing up maritime assets in the high latitudes. A May 24 vote by the Senate defense subcommittee “was the first tangible demonstration that we are committed to fulfilling the responsibilities associated with our strategic geography,” said Sen. Lisa Murkowski, R-Alaska. On the House side, Rep. Duncan Hunter, R-Calif., who chairs the Coast Guard subcommittee, has sought to recruit the Navy into helping design and fund the icebreaker project. The thinking is that the Navy could use its shipbuilding program money to start the first heavy icebreaker as a noncombatant vessel and later transfer it to the Coast Guard. 16

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“Without increased investment, we will face the unacceptable reality of ceding the Arctic to other nations,” Hunter wrote in a May 16 letter to Sean Stackley, the assistant Navy secretary for research, development and acquisition. The Coast Guard says it needs at least three heavy and three medium icebreakers to fulfill its missions in the Arctic and Antarctic, ranging from scientific support and maintaining seaway access to search and rescue. The service is down to two ships: the 420'×82'×29' mediumduty Healy, launched in 1997, and the 399'×83'6"×28' heavy Polar Star, built in 1976. A sister ship, Polar Sea, is laid up in Seattle, and a source of spare parts to keep the Polar Star operating. With the Arctic in particular opening to new shipping during ice-free seasons, advocates say it is critical to

speed up design and construction of the next generation polar ships. — Kirk Moore

For tugs, it’s a race between technology and regulation

ugboat designers must step up their attention to safety and stability — going beyond even what present regulations require — to keep pace with burgeoning horsepower and technology demands. That was the message delivered by tug designer Robert G. Allan at the 24th International Tug, Salvage and OSV Convention in Boston in May. Allan pointed to the Jan. 17, 2015, sinking in China of a new tugboat, the 98', 368-GT Wan Shenzhou 67, during

www.workboat.com • JULY 2016 • WorkBoat

6/2/16 2:16 PM

Kirk Moore photo.

Naval architect Robert Allan discusses tugboat safety at the International Tug, Salvage and OSV Convention in Boston.

Xinhau News Agency

sea trials in the Yangtze River that left 22 dead. Chinese authorities have said an inexperienced captain, a turning maneuver and down flooding of the engine room were factors but investigations continue. The capsized tugboat Wan Shenzhou “It’s not a single 67, which sank during sea trials in failure, but multiple January 2015 killing 22 people. failures. On that day everything went wrong,” said Govinder Singh Chopra nology and regulation … this is not a of Sea Tech Solutions Ltd., Singapore. fair race.” The industry’s demands are “This was our design, and 22 lives increasing much faster than regulatory were lost.” agencies can respond, he said. “How does our industry reach a state As a result, some tugs are so powwhere that can happen?” Allan asked erful they can be at risk of driving standing next to a screen image of themselves underwater in the wrong rescuers around the capsized hull. “It’s conditions, such as running astern, Alcertainly the worst accident in modern lan said. tug history.” “There have been some pretty serious Allan’s company Robert Allan Ltd., accidents,” he said. “We cannot accept Vancouver, British Columbia, designs that operating … with decks awash is state-of-the-art tugboats. Allan said safe.” the escalating power requirements for Allan and Chopra spoke of the need harbor tugs capable of handling bigger for designers to focus more strongly on ships are causing unanticipated hazards safety and stability, and communicate for operators. design limitations to operators and By 2005, favored tugboat classes that captains. had 50 tons bollard pull in the midFor all the technology in the pilot1990s were being supplanted by 60- to house of a modern tug, there are few 65-ton bollard pull vessels, Allan said. warning systems that aid captains’ “Today, 80 tons is not at all uncomawareness of their vessel’s stability, mon,” he said. Allan said. Chopra compared that to “Typically we’re putting twice as aviation, where pilots in commercial much horsepower into boats as we did and military aircraft have a host of 20 years ago,” Allan said. “We’re trying warning alerts and alarms to warn them to cram this into less than 500 tons.” of impending stalls or handling errors. Allan called it “a race between techAt a minimum, captains could have www.workboat.com • JULY 2016 • WorkBoat

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precision inclinometers to see when angles of heel are within performance parameters, or entering danger zones, Allan said. “It’s too much to ask the (tug) master to keep track of these forces,” Chopra said. “It’s the designers’ job to give him that information.” It’s that “limiting envelope” — mechanical forces bearing on the tug under loads, angle of heel, speed, and sea conditions with modes of operation

— that captains need to understand, he said. — K. Moore

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anticipate high and low water, precipitation and other weather events that will affect their business. “You can customize your own river information,” Steve Baun of the National Oceanic and Atmospheric Administration’s North Central River Forecast Center said at the Inland Marine Expo in St. Louis in May. “You can set up your own weather page for your company.” The interactive pages at NOAA’s Advanced Hydrologic Prediction Service (water.weather.gov/ahps) include a national map, regional maps, precipitation charts, interactive snow information, flood inundation map, and much more. The site is designed to help people cope with extraordinary conditions, such as when high water levels throughout the Mississippi River system late last year disrupted navigation, as barges broke loose in multiple locations. “Rivers are constantly changing,” Baun said. “Forecasting is critical.” Baun said NOAA has put together this multilayered information guide to help combat high and low water problems, but the NWS, Coast Guard, Corps of Engineers, U.S. Geological Survey and industry must work together to get the best results. “Everybody sharing what they know is vitally important,” he said. Baun said industry has the system covered better than any other group. “All the boats that are out there all over the system at any given time … communicating with each other and with the other entities involved is essential,” he said. — Ken Hocke

Offshore safety reform must be improved, report says

ost-Deepwater Horizon efforts to build safety culture in the U.S. offshore oil and gas industry do not go far enough, according to a May report from the National Academies of Sciences, Engineering and Medicine. The industry needs an “independent organization dedicated to safety and www.workboat.com • JULY 2016 • WorkBoat

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Mexico. “Multiple relationships also exist among operators, contractors, and subcontractors on offshore rigs and platforms that can diffuse responsibility for safety and make consistent practices difficult to implement,” the report said. “Because of their differing safety perspectives and economic interests, offshore oil and gas companies do not all belong to a single industry association that speaks with one voice regarding safety. “The fragmented nature of the industry, heterogeneity among companies, and diversity among employees make it a challenge to set consistent goals and implement them through industrywide agreements.” U.S. Coast Guard

environmental protection, with no advocacy role,” asserts the report, titled “Strengthening the Safety Culture of the Offshore Oil and Gas Industry.” The American Petroleum Institute created the Center for Offshore Safety immediately after the 2010 Macondo well blowout to develop and promote safety improvements. The center “could be made independent of API to serve this purpose, with membership in the center as a requirement for all organizations working in the offshore oil and gas industry,” the NAS report said. The breadth and diversity of the industry is one reason safety culture varies widely, found researchers from the academies’ Transportation Research Board, Marine Board and Board on Human-Systems Integration. About 75 offshore operators, 17 drilling contractors and more than 1,000 contractors and subcontractors support drilling and production in the Gulf of

The BP Thunder Horse platform lists in the Gulf of Mexico after Hurricane Dennis in July 2005.

The industry is still evolving into a safety culture, researchers found. “As with many industries, however, a blaming culture still exists in the offshore industry, as well as a lack of systems thinking that results in focusing on the immediate proximal causes of a safety failure (such as human error) rather than system causes, including culture,” the authors added. — K. Moore

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NY Waterway

Ferry King

Arthur Imperatore has led a private ferry renaissance around Manhattan.

NY Waterway CEO Arthur Imperatore with the ferry Thomas Jefferson approaching the Weehawken, N.J., terminal. Article and photos by Kirk Moore, Associate Editor

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n the highway approach to the Lincoln Tunnel and New York City, the last exit in New Jersey takes you to a road that winds around the south end of basalt cliffs along the Hudson River. Once a two-mile stretch of abandoned railyards and shoaled, rotting pier slips, the river plain below the cliff is filling with new condominiums, apartments and parking garages. A New Jersey Transit light rail train hums back and forth every few minutes, and buses pull up to the NY Waterway ferry terminal. From his glass-front office on the ground floor, Arthur Imperatore keeps an eye on his customers as they come and go for the ride a few minutes across the Hudson to West 39th Street in midtown Manhattan. Every 10 minutes during peak com-

muting time, and 20 minutes off peak, his blueand-white ferries glide across the Port Imperial flats and kick up on plane crossing the river. In coming months, those vessels will undergo upgrades and engine modernizations — part of some $26 million in capital improvements that NY Waterway is undertaking as the company and its 400 employees celebrate its 30th anniversary. The company will spend $6 million to repower and increase capacity on six of its workhorse 149-passenger catamarans. “We’re the biggest private commuter ferry company in the United States. We’re a water and upland commuter system,” said Imperatore, whose company also operates red, white and blue shuttle buses that offer seamless connections to and from its midtown terminal. A federal grant will help pay www.workboat.com • JULY 2016 • WorkBoat

6/1/16 1:21 PM

for 30 new buses, giving the company a fleet of 80 buses. Three decades into his second career, the entrepreneur, who turns 91 in July, talks like his creation has finally made it. Reviving the New Jersey-New York private ferry industry was a new act for Imperatore, the youngest in a family of nine who started in the trucking business with his brothers after coming home from World War II. He made his fortune building A-P-A Transport Corp. into one of the most efficient and profitable enterprises in a tough industry. In 1986, Imperatore saw another opportunity when he bought an old rail yard along the Hudson River and had to figure out how to connect across the water with Manhattan. “I owned two miles of land. That’s (Manhattan) where the money was. It was separated from New Jersey by the escarpment, down to the river plain. I bought it in 15 minutes, just like that,” Imperatore said. “Now, once I got it, what the hell was I going to do with it? What was I going to do to connect it to the big city? I had to make it work.”

NY Waterway CEO Arthur Imperatore and senior deckhand George Schumpp check ferry schedule timing on their smartphones.

TIME MATTERS In December 1986, NY Waterway began operating ferries on routes across the Hudson. The venture received a lot of local media attention. The last private ferry companies in New Jersey had gone out of business in the late 1950s after ridership was siphoned away by highway and train tunnels under the river. To some observers Imperatore had embarked on a romantic vanity project with a new, fast 77' boat built by Blount Boats, Warren, R.I.

The 149-passenger ferry Thomas Jefferson in the Hudson River near Manhattan.

www.workboat.com • JULY 2016 • WorkBoat

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“It was a composite aluminum and fiberglass. It was experimental,” Imperatore said. “I bought it because the man who built it (the late Luther Blount) was very good to us for making that boat available. We thought it would be high speed, but it had many deficiencies.” Imperatore and the people in his organization started designing their own boats and systems for moving customers, drawing on decades of experience building equipment and moving freight. “We had to design routes, and we were lucky in that we had a lot of routes you could do in eight to 10 minutes. We had to be able to predict arrivals and departures within 20 to 50 seconds. We had experience with trucks, designing trucks, and we knew a lot about time – the value of time,” said Imperatore, who adapted timeand-motion studies to build efficiencies into his trucking business as early as 1960. “So I counted on the value of time. The efficiency of getting people from the upland onto a boat, and with a schedule that was predictable, and with the addition of buses,” he said. “We didn’t own buses, we had to charter buses, but it was the right thing to do.” Even today, Imperatore said, he remains impressed by the challenges of running a marine business. “Boats are very complicated animals. There are a lot of different systems,” he said. “We had a lot to learn. And 23

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NY Waterway we misdesigned a lot. First boat we designed was the Manhattan. We built it in 1987. The second boat we built in 1987, we made 700 changes. The retrofits are not easy. It took a lot of time, but we learned a lot.” What Imperatore really likes to talk about are his people. In a 1982 Inc. magazine profile, Imperatore described his trucking company’s personnel policy. “My whole philosophy is that we build men. Incidentally, we move freight.” NY Waterway recruits mostly bluecollar workers, training up through the ranks from deckhands to captains, Imperatore said. “We had to be very precise in knowing what we wanted, for customer service, and in particular for safety. We’ve moved hundreds of millions of people, and we’ve never had one fatality,” he said. “It’s the conduct of our people on the boats, their training. We have one of the toughest operating

NY Waterway recently added two 400-passenger high-speed catamarans to its longest route between Manhattan and Belford, N.J. The 109’x31’x6’ Molly Pitcher and Betsy Ross, built for $5.2 million each by Yank Marine in Tuckahoe, N.J., increased the fleet to 37 vessels and set a new industry standard for the region’s growing ferry scene.

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mediocrity to the highest standards of reliability, safety, comfort and enjoyment for our customers.” WATERFRONT REVIVAL Imperatore’s venture began as New York was recovering from a long economic decline in the 1970s and early ‘80s. Over time, the ferries’ success awakened others to the potential of tying waterborne commuting to neighborhood redevelopment. “They have been really instrumental with a lot of the redevelopment on the west side of the Hudson. The success of that hinges on the ferry service,” said Douglas Adams, chief operating officer of the Waterfront Alliance, a coalition of New York Harbor community groups that advocates for better uses of the city’s waterways. “They saw the potential and took the risk, and have done very well. We’re big fans.” In its everyday business, the company demonstrated economic possibilities that drew other private investors into ferry services — and in time paved the way for a new citywide ferry system. But the ferry business is tough, with high operating costs and extreme sensitivity to the metro area’s economic ups and downs. For a time in 2009, after the financial crash and Wall Street Continued on page 45

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Barges

Bottoming Out Construction surge leaves hundreds of barges on the sidelines.

here is no shortage of barges in the workboat marketplace. Yet they continue to be built by the hundreds. According to WorkBoat’s 2015-2016 Construction Survey, there were 86 barges under contract, under construction or delivered over the 12-month period covered by the survey. The listing includes coastal barges, construction barges, deck barges, specialized barges and more. But that doesn’t begin to tell the story, which is focused on the inland waterways system. Two of the largest builders of inland barges — Jeffboat, Jeffersonville, Ind., and Dallas-based Trinity Marine Products, do not participate in our survey. “There is a lot of equipment that is not likely to be retired anytime soon,” Ken Eriksen, senior

vice president, transportation, Informa Economics, said during a conference session on barge and towboat construction trends at the Inland Marine Expo in St. Louis in May. “There are just not as many barges to retire, so we’re adding to the fleet.” BOOM TO BUST Currently, there are record numbers of tank barges, covered hopper barges and open dry cargo barges on the inland waterway system. In 2015, the total number of inland barges reached 22,000, according to Eriksen, with about 3,000 of those tank barges. Barges are not wearing out quickly enough, so there isn’t enough work for them all. “An open

David Krapf

By Ken Hocke, Senior Editor

An estimated 1,000 barges are looking for work.

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Ken Hocke

barge is not going to last as long as a covered barge,” Eriksen said. “You’ve got a record high number of tank barges, a record high number of covered hopper barges, and these are additions to the fleet,” said Sandor J. Toth, publisher, River Transport News. “The way rates were in 2014 everybody was fat and happy. So they built in 2015, then steel prices tanked.” That led to overbuilding, particularly on the dry cargo side. According to RTN, a bimonthly newsletter that covers the inland river industry, barge companies took delivery of 880 new jumbo hopper barges in 2015, a 57% increase over the 561 delivered in 2014. Of the 880 barges, 737 were covered and 143 were open. Trinity delivered the most jumbo covered barges, 504, and jumbo uncovered, 141. Next was Brownsville Marine Products with 180 covered and two uncovered, and Jeffboat with 53 jumbo covered barges. Barge companies that led the way in

Trinity closed its shipyard in Madisonville, La., late last year.

new jumbo hopper barge deliveries last year were Marquette Transportation with 167, East Side River Brokerage with 100, Florida Marine Transporters with 80, Ingram Barge Co. with 75, Heartland Barge Management with 64, and Parker Towing Co. with 50, according to RTN. “I don’t know the exact number, but I’m guessing there are 1,000 barges laid up,” said Toth.

SLUGGISH MARKET In general, the industry is stagnant. “The word I would use is dismal,” said Toth. “We’re in a period where almost every single market the industry serves is weak, except the coal market which is dead in terms of volume.” Perhaps a harbinger of things to come, in October 2015, American Commercial Barge Lines announced that it would purchase American Electric Power’s barge unit for $550

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Barges million. ACBL added the most new hopper barges to its fleet with 168 in 2015, 75 of which were absorbed as part of its acquisition of AEP and 40 of which were hopper barges under longterm charter with Russell Flowers, RTN reported. Like other power companies have done, AEP decided to shed its captive barge assets. “Operating a commercial barge transportation company no longer fits well with our strategy,” Nicholas K. Akins, AEP chairman, president and CEO, said in a statement announcing the deal. In December, Trinity cut most of its employees at its Madisonville, La., shipyard. The yard mainly built new tank barges. RTN said that Trinity’s construction backlog at the end of March had fallen to $318 million from $416 million at the end of 2015. In March, Kirby Corp., Houston, agreed to purchase the inland tank

barge fleet of Seacor Holdings Inc. for approximately $88 million. The deal closed in April. The purchase included 27 30,000-bbl. tank barges and 13 inland towboats, plus one 30,000-bbl. tank barge and one towboat that were under construction. Seacor subsidiary SCF Waxler Marine LLC, transports refined petroleum products, petrochemicals and black oil on the Mississippi River system and Gulf Intracoastal Waterway. Toth sees more consolidation ahead for the industry. “They’ve been doing it for about 50 years. I don’t see any reason for them to stop now.” But he said there is reason for optimism on the dry cargo side if demand for corn and soybean exports can hold. New U.S. export corn sales have been strengthening compared to a year ago. “This could last for the next 12 to 18 months,” he said.

OTHER CONSTRUCTION Several interesting newbuild barges were for the coastal and oceangoing market including: • VT Halter, Pascagoula, Miss., delivered an articulated tug-barge unit to Bouchard Transportation Co., Melville, N.Y. The ATB consists of the 150'×50', 10,000-hp tug Donna J. Bouchard and the 628'5"×91'×47', 255,000-bbl. black oil tank barge B. No. 272. • Later this year, Conrad Orange Shipyard in Texas will deliver the first LNG bunker barge in North America. The 232'×48'8"×15'8" barge will operate out of Tacoma, Wash. • Vigor Fab, Portland, Ore., completed the 422'×76'8"×27', 83,800-bbl. tank barge Fight A.L.S. for Channelview, Texas-based Harley Marine Gulf. The new barge will be part of a new ATB unit along with the 4,500-hp tug Barry Silverton.

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CONSTRUCTION ACTIVITY AT WORKBOAT YARDS

On TheWays

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Moran takes delivery of new ATB from Bay Shipbuilding of on-time delivery.” For service power, there’s a pair of John Deere gensets rated at 200 kW each. Capacities on the Barbara Carol Ann Moran include 138,000 gals. of fuel, 16,000 gals. water, 68,000 gals. ballast and 2,500 gals. engine lube oil. The ABS-classed 468'×78'×34' barge Louisiana has a draft of approximately 26'6". The new tug is certified ABS Class +A-1 Towing Service, +AMS, and is equipped with state-ofthe-art navigation and communications technology. The new ATB unit was 5,300-hp tug is part of a new Moran ATB. delivered on May 16, the exact day called for in the incantieri Bay Shipbuilding (FBS), Sturgeon Bay, contract, and will work the U.S. East Coast and the Gulf of Wis., delivered an articulated tug-barge unit (ATB), the Mexico. 5,300-hp Barbara Carol Ann Moran and the 110,000-bbl. This is the third delivery to Moran under a 2014 contract, chemical barge Louisiana, to Moran Towing Corp., New with a tank barge delivered in May 2015 and another ATB Canaan, Conn., in mid-May. — the 6,000-hp tug Leigh Ann Moran and 150,000-bbl. tank The 123'×36'×18' ATB tug is powered by a pair of barge Mississippi — delivered in October 2015. EMD 12-710G7C-T3 diesels that produce 2,650 hp each — David Krapf at 800 rpm. The engines turn a pair of HS Marine Propulsion ADV Series 115"×91.22", stainless steel, 5-bladed Hanson Boat delivers 6,700-hp escort tug props through Lufkin RHS2500HG marine gears with to Dunlap Towing in Washington 3.963:1 reduction ratios. The design towing speed is 10 knots. The tug has a bollard pull of 53.7 MT. he Gretchen Dunlap is the newest addition to Dunlap “The Barbara Carol Ann Moran is an excellent example Towing Co., LaConner, Wash. On May 17 a reception and typical of the ships built by FBS,” Todd Thayse, FBS’s was held for the 101'×42'×20'6" escort tug at Dunlap’s dock vice president and general manager said in a statement. in Everett, Wash. After, the new tug steamed north, through “They’re manufactured to specific customer requirements, Alaska’s Unimak Pass into the Bering Sea and then down the under the highest standards of quality, and with an emphasis Aleutian chain to Dutch Harbor, which will be her primary

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location. Designed by Hockema & Whalen Associates in Seattle and built by Hansen Boat Co. in Everett, the Gretchen Dunlap will join another Dunlap tug, the James Dunlap, in Dutch Harbor. Though the two tugs are the same length, the Gretchen Dunlap “is the big sister of that boat,” said Michael Whalen, principal naval architect at Hockema & Whalen, which designed the James Dunlap 20 years ago. The Gretchen “has quite a bit more horsepower.” The James Dunlap develops 4,300 hp with a pair of EMD 16-645 E2 engines, while the Gretchen Dunlap’s two Caterpillar 3516C diesels put out 6,772 hp. The need for additional horsepower is due to a “combination of bigger vessels and wanting to control a vessel if it does get out of hand,” said Whalen. For escort work there’s a Markey DEPCH-52 hawser winch on the bow and for towing a Markey TES-40 winch on the stern. Both are electric winches. The James Dunlap was designed primarily as a harbor tug, but the tug left Dutch Harbor and worked with ships in the Bering Sea enough that “it was decided they needed a more seakindly boat for rough weather,” said Whalen. Thus the Gretchen Dunlap’s bow “is flared up so she has a lot more buoyancy. It will slam less than the previous boat.” The Gretchen Dunlap also has a

plumb bow with fendering down to the waterline to easily push the stern of a barge. At the stern, the scantlings are heavier to support the larger Z-drive units, a pair of Rolls-Royce 255 P30 FPs, and reduce vibration. A key crew comfort feature of the Gretchen Dunlap is the attention paid to reducing vibration and noise. “When we did the first boat we were just starting to look at floating decks for sound insulation,” said Whalen, “but couldn’t settle on anything that looked promising.” In contrast, the Gretchen Dunlap has “a fair amount of sound insulation in the main deck above the engine room and in the quarters area.” That would be three two-man staterooms up

Stockton University

Russell Shrewsbury

New 101' tug will work in Alaska.

www.workboat.com • JULY 2016 • WorkBoat

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forward, a single engineer’s stateroom, and a captain’s stateroom on the main deck. That comfort will be needed because while the James Dunlap was primarily a day boat, the Gretchen Dunlap’s 85,935-gal. fuel capacity will enable her to “travel for quite awhile,” said Whalen. That includes the Alaska Peninsula and through the Bering Sea. Once the Gretchen Dunlap left Hansen Boat’s yard, work started on a pair of 120' ocean tugs, designed by Hockema & Whalen for Dunlap Towing. “They are similar to the Phyllis Dunlap we did about 12 years ago,” said Whalen. They will be dedicated linehaul tugs that will tow barges to Hawaii or Alaska. — Michael Crowley

SW Boatworks completes 36' research vessel for New Jersey university

he new flagship vessel of Stockton University’s marine science field station near Atlantic City, N.J., has been busy this year carrying students and deploying side-scan sonars to chart everything from derelict crab traps to 19th-century shipwrecks. With its beamy Calvin Beal Jr.-designed hull and shallow draft, the new 36'×14'×4' research vessel Petrel is as “equally at home on our river as it is 20

New 36' research vessel for marine science field station.

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On TheWays when Stockton University went out for bids. The 36' design is a popular lobster boat, with “speed, stability, space,” Workman said. The company has branched out to building Beal hulls as sport fishing and utility boats. Maine Marine Patrol christened its 38'9"×15' patrol vessel Dirigo II from SW Boatworks in January 2014. But Stockton University was the boatyard’s first customer for a research vessel.

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miles offshore,” said station manager Steve Evert. The fiberglass vessel was built at SW Boatworks, Lamoine, Maine, where owner Capt. Stewart Workman and his wife Alice had acquired the Calvin Beal molds in 2008. “Steve is familiar with the Calvin Beal boats because he’s fished off them, so he contacted us,” Stewart Workman said. The Workmans prepared specs and a proposal to be ready

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aster Boat Builders, Bayou La Batre, Ala., has delivered the 221'×48'×18', DP-2 offshore service vessel Seacor Olmeca to Seacor Offshore LLC. Designed and built by Master Boat, the new OSV can carry 150,000 gals. of fuel; 6,000 bbls. of liquid mud; and 8,000 cu. ft. bulk mud in four 2,000 cu. ft. tanks. The rear cargo deck measures 155'×39' and can haul up to 2,216 LT of freight. Main propulsion comes from twin Caterpillar 3512C diesels, producing 1,911 hp at 1,600 rpm each. For added maneuverability, the OSV has two Schottel SST2FP 800-hp bowthrusters and two SST-170FP 350-hp sternthrusters. — Ken Hocke Kvichak Marine Industries, a Vigor company, recently delivered a fourth, 45'×14'7" response boatmedium C (RB-M C) to the New York Police Department Harbor Unit. The Kvichak RB-M C is the commercial variant of the response boat-medium (RB-M), purpose built for the U.S. Coast Guard. Kvichak designed the vessel in partnership with Camarc Design. Sporting a 3' draft and a 495-gal. fuel tank, the new patrol boat is powered by a pair of MTU Series 60 diesel engines connected to Rolls-Royce Kamewa FF375S waterjets through Twin Disc MG-5114SC marine gears. The package gives the vessel a running speed of 40 knots. — K. Hocke Vane Brothers Co., Baltimore,

www.workboat.com • JULY 2016 • WorkBoat

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BOATBUILDING BITTS ing Co. The Oceanus was launched in April, following the Neptune (delivered in March) and the Triton, which was delivered to the Houston-based tug operator late last year. Eastern is simultaneously constructing an identical series of four 5,150-hp RAL-designed Z-Tech

took delivery in late April of the 100'×34'×15' Hudson, the second in a new series of 4,200-hp tugs, and the 55,000-bbl. barge Double Skin 601. Vane is having eight Elizabeth Anne-class towing vessels built at St. Johns Ship Building, Palatka, Fla. The lead tug in the series, Elizabeth Anne, was delivered in January. The third tug, the Baltimore, is scheduled for delivery this summer. Designed by Entech Designs LLC, Kenner, La., the Hudson is powered by two Caterpillar 3516 Tier 3 engines, each generating 2,100 hp at 1,600 rpm. — Ashley Herriman Shell Offshore has taken delivery of its third liquified natural gas (LNG)-powered offshore supply vessel, the Harvey Liberty. Chartered from Harvey Gulf International Marine, the 302' Harvey Liberty joined sisterships Harvey Energy and Harvey Power in Port Fourchon, La., in May. The new vessel will support Shell’s deepwater operations in the Gulf of Mexico. The vessels are all powered by three Wärtsilä 6L34DF dualfuel gensets providing 7,530 kW (10,100 hp) fueled by Wärtsilä’s LNGPac system. — A. Herriman Eastern Shipbuilding Group, Panama City, Fla., has launched the third in a series of four 80'×38'3"×15'9", 5,150-hp Robert Allan Ltd.-designed Z-Tech 2400-class terminal and escort tugs for Suderman & Young Tow-

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On TheWays After delivery in late 2015, Jersey Cape Yachts, Lower Bank, N.J., completed fitting out the Petrel and Patriot Marine Fabricating, Forked River, N.J., finished the hydraulics, Evert said. In April the Petrel got underway, conducting a side-scan sonar and bathymetry study in the Mullica River, near the university’s Port Republic field station. Propulsion comes from a Cummins QSC 8.3 diesel developing 550 hp at 3,000 rpm. The engine turns a 27"×35"×2.25", 4-bladed wheel from S&S Propeller through a ZF 286A marine gear with a 2.5:1 reduction ratio. Steering is with Glendenning electronic controls, including a trolling valve. The combination gives the boat a service speed of 18 to 19 knots, with 400 gals. fuel. It is a step up in power because “we needed that. Sometimes we only have a four-hour window” for tide and wind, Evert said. A Westerbeke 10-kW generator

provides ship’s service power. Inside the wheelhouse, two consoles with separate networked instrumentation are set up for navigation and survey work. A Furuno NavNet MFD 12 and MFD 8 complete navigation package including plotter, radar, and sounder are at the helm. On the port side is a separate work console with a Trimble SPS 461 survey-grade GPS system with cellular data correction, and Coda Octopus F175 T-2 motion reference unit for survey operations. Marine survey navigation is provided by an onboard computer via a Hypack marine survey software package and helm-mounted monitor. Signals come from survey equipment including an Edgetech 6205 combined side-scan/multibeam sonar for hydrographic survey, and a Klein 3900/ marine magnetics side-scan sonar/ magnetometer system for search and recovery. A set of Teledyne Sentinel V and RiverPro acoustic Doppler cur-

rent profilers serve for oceanographic research. To dive remotely the crew has a SeaBotix LBV six thruster 300-meter inspection class remotely operated vehicle (ROV) with forward scanning sonar and a Tritech USBL navigation system. For deploying and recovering equipment there is a Pullmaster PL5-12211-6D winch with freefall hoisting with an A-frame with 10' deck clearance and 2,000-lb. capacity. Patriot Marine and Good Anchor Windlass, Barnegat, N.J., provided a double anchor system. The deck and overhead are built with sound dampening, and there is plenty of seating and standing room for students. Crew and passenger capacity is 14. “This is a classroom right here,” Evert said. “They have a really nice boat here,” Workman said. “This is going to serve them very well.” — Kirk Moore

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Undertow

Brian Gauvin

A down cycle has put the inland waterways in unfamiliar territory.

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By Pamela Glass, Washington Correspondent

he inland barge industry is always at the whim of national and international economic and political cycles, with some sectors up while others are down as demand for key commodities shift. But 2016 is unfolding with an unusual pattern: a down cycle in almost all commodities transported by barge. The factors are many: a worldwide economic slowdown, especially in China that has weakened demand from one of the world’s largest markets; environmental regulations and competition from natural gas that has produced a continual decline in the use of coal; a staggering global drop in oil prices that has rippled through the barge business; a strong dollar that makes exports more expensive; and weakening of South American currencies that make certain grain imports cheaper than U.S.sourced grain, thus reducing demand for inland barge movements. “Nearly every sector of our business is facing very difficult market conditions, and it is not clear yet where the bottom of the trough is,” Tom Allegretti, president and CEO of the American Waterways Operators, the barge industry’s lobby group, said at an industry conference in March. Calling it a “challenging economic and uncertain political climate,” and a “sobering landscape,” he added: “We all know that this is a cyclical business,

but what’s particularly challenging today is that all the major commodity groups — petroleum, coal, agricultural products — are in a down cycle.” In addition, the industry faces headwinds from other directions. It must comply with the new federal towboat inspection system that is expected to come on line in June, beat back repeated attacks on a U.S. law — the Jones Act — that the barge industry views as essential to its existence, secure stable federal funding to modernize the nation’s crumbling locks and dams, and pass a law that ends a patchwork of overlapping and contradictory state and federal regulations that govern the discharge of ballast water that are confusing and costly to the industry. On top of this, presidential and congressional elections have injected a sense of uncertainty and worry into the economy that has put barge operators on edge. “As the election approaches, everything in Washington, D.C., is viewed through a highly political lens, and it becomes even more difficult than usual for policymakers to focus on the people’s business,” Allegretti added. WEAK GLOBAL ECONOMY The biggest drag on the inland barge industry is a global slowdown that has weakened the export market for many U.S. goods. “Everything is down simultaneously, except grain, which seems to be mak-

ing a comeback as the export market comes back to us,” said Ken Eriksen, senior vice president of transportation at Informa Economics, an agricultural and commodity market research company based in Memphis, Tenn. “And barge rates are still flatlined. Usually we have one segment that is doing well, but everything is down … ho-hum.” He said many operators are “battening down the hatches,” and devising strategies to weather this challenging period. The worst is the deep drop in the coal market, Eriksen said, causing companies to convert open barges used for coal to covered barges for grain. “This has weighed down the covered market.” The liquid tank barge market is suffering as well, except for chemical movements. “But there’s a lot of equipment in that market,” he said. “They may be in a waiting or holding pattern to see who will blink first. This may Chemical movements have been steady.

Gregory Thorp

The demand for U.S. commodities exports has weakened.

'Nearly every sector of our business is facing very difficult market conditions, and it is not clear yet where the bottom of the trough is.' Tom Allegretti President and CEO American Waterways Operators

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Corn, which often uses jumbo covered hopper barges, has been a bright spot.

Gregory Thorp

create credit and merger opportunities as they try to wait out the market.” One bright spot is corn. Since ethanol production has just about peaked, and South American producers are having troubles with their crops, there’s a large volume of U.S. corn available on the market for export, he said. “There are good movements on the river, and this could have legs as buyers will want to come back to the U.S.” Eriksen said he expects the coal downturn to be long term due to competition from natural gas and stricter federal emissions rules, while grain will remain cyclical, largely influenced by international demand and U.S. weather conditions that affect the harvest season. A big factor in the global slowdown is China’s declining growth rate. China has been a huge consumer of U.S. exports that move on U.S. waterways. Slowdowns in European and developing countries have also taken a toll on U.S. commodity exports. “We have not hit bottom yet,” where products would be moved by barge well below cost, where markets are flat, and where there have been no commodity volume increases, Eriksen said. Corn will continue to help the dry cargo barge market, and the Panama Canal expansion could increase barge movements on the U.S. waterways, he said. Another global influence has been the precipitous drop in oil prices over the past year. Several tank barge operators have been hurt by a combination of weak oil prices and pipeline projects coming online, which lessen the demand to move crude by inland barge. A surge in North American production over the past few years, due mostly to increased shale oil production, encouraged many companies, including Kirby Corp., the nation’s largest tank barge operator, and American Commercial Lines, one of the largest liquid and dry cargo lines, to expand their tank barge fleets. They are now feeling the pinch of the downturn. “That market has flipped 180 degrees,” said Mark Knoy, CEO at Jeffer-

sonville, Ind.-based ACL. But he said the company hasn’t been hit too hard because it has a diversified portfolio. “Only six-seven percent of our earnings comes from moving crude, so we’re not as aligned as others to it. We’re a midstreamer.” Knoy said he expects more mergers and acquisitions of companies that concentrate on crude barging. Just the same, tank barge utilization remains high, in many cases 90% for larger companies, mostly due to strong movements of other liquid commodities like ethanol, petrochemicals, glycol and light condensates, he added. Houston-based Kirby’s net earnings dropped by more than a third in the first quarter of 2016 to $38.1 million, or 71 cents a share, compared to $61.1 million, or $1.09 a share in the first quarter of 2015. Taking the biggest hit was the company’s diesel engine services segment. Part of that business involves the manufacturing and remanufacturing of oilfield service equipment for the landbased oilfield service and oil and gas operator and producer markets. Kirby’s petrochemicals business remained stable because these products remained cheap due to low oil prices, but the company’s crude oil barging was off. CEO David Grzebinkski said in April that Kirby has been cutting costs across all businesses and in February laid off workers. Anticipating a continued tough market, Kirby lowered its earning expectations for the rest of the year.

This challenging climate, however, allowed Kirby to make an important acquisition that expands the company’s fleet. In a deal finalized in April, it paid $88 million for Seacor Holdings’ 27 inland 30,000-bbl. tank barges, 13 towboats, and a 30,000-bbl. tank barge and towboat that are under construction. CHALLENGES AT HOME 2016 will be a pivotal year for the inland industry as it moves to implement the much-anticipated federal towing vessel safety regulations, which have been in the works for more than a decade. Publication of the final version of Subchapter M is expected in June. “This may be the biggest milestone yet in our journey to increase safety standards throughout our industry,” AWO’s Allegretti said. Many operators say they are ready to take on the new program. “There will be a phase-in period, so there’s time to adjust, and inspections can be done when vessels are in drydock for maintenance,” ACL’s Knoy said. “My biggest concern is whether the Coast Guard will have enough inspectors or classification societies (will), that’s where chaos could ensue. But we all have the incentive to do this right. After all, the industry asked for it.” The industry is also working to counter initiatives by Massachusetts and Washington state which the AWO says are imposing “unconstitutional state laws and regulations” that undermine

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the authority of the Coast Guard as the primary regulator of the maritime industry. Both states impose their own set of pilotage and escort tug requirements, saying that vessels operating in their waters merit different treatment than what is imposed by the Coast Guard. The industry worries that other states will follow. “We will work hard this year to overturn unconstitutional state regulations that are on the books and prevent new ones from enactment,” Allegretti said. Another top priority will be passing vessel discharge legislation in Congress. The Coast Guard and the Environmental Protection Agency have developed separate regulations under two federal laws to govern ballast water discharges. The programs differ in implementation dates, vessels covered, geographic reach, enforcement and penalties for noncompliance. “The situation only becomes more confusing and burdensome for vessel

owners as each individual state adds its own ballast water discharge requirements on top of the EPA’s program,” Rep. Duncan Hunter, R-Calif., said at a recent House hearing. “Numerous states and tribes have added their own discharge standards. Some states have laws in place forcing vessels to treat their ballast water to a standard for which no technology has yet been invented. The situation is ridiculous.” Added Allegretti, “This is the year that we’ll get vessel discharge legislation enacted into law.” An ongoing challenge is deflecting attempts to weaken or repeal the Jones Act, which requires that only U.S.built and -crewed ships be allowed to operate between U.S. ports. Critics claim that the law is highly protectionist and raises the cost of shipping, but the industry says it is essential to the future of the U.S. maritime industry and to national security. There have been numerous attempts to tamper with

the law, most notably amendments to an energy bill and a Jones Act waiver attached to an aid package for Puerto Rico. “The attacks have gained no traction in Congress, but we take nothing for granted,” Allegretti said. As for the upcoming elections, the barge industry is identifying congressional candidates from coastal and inland states who will support their issues and is also looking to put the presidential candidates on record on the Jones Act. Eriksen of Informa Economics said it would be important to examine the presidential candidates’ positions on coal and energy production, as well as international trade. But congressional races are also key, he added, since House and Senate committees that oversee water infrastructure and maritime issues will likely have many new members and leaders after the elections.

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Electronics

Radar Love

Electronics manufacturers continue to upgrade their products.

By Michael Crowley, Correspondent

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rom radars to radios to ECDIS, electronics companies keep introducing new and improved equipment. Simrad’s newest entries in the radar field are the company’s first new dedicated radar displays in more than 10 years. It comes at a time when the Norway-based company is focusing on becoming more of a player in the commercial marine market, especially the workboat sector. Until about two years ago, Simrad marketed most of its electronics products to recreational boaters. Then Simrad decided to divide the company into two divisions — recreational and commercial. The workboat segment of the commercial unit would focus on everything from “the small river boats up to merchant vessels,” said Christian Olsson, vice president of sales for Simrad’s com-

mercial division. The R2009 and R3016 radars are designed for those workboats. The difference between the two dedicated radar displays is size, not features. The R3016 has a 16-inch diagonal wide-screen display while the R2009 has a 9-inch portrait screen. “It’s the same concept,” said Olsson, “but in a smaller display, for the wheelhouses that don’t have the room or don’t want the larger display.” While the radars’ functionality might be similar to what’s found in other radars, Olsson said two things set the radars apart from others on the market. “The user interface would be the number one thing. It’s much easier to use” than what is available. Fewer buttons are required while functions that boat operators change a lot are controlled with a

WorkBoat file photo

For workboats, there’s always an assortment of new electronics to choose from.

www.workboat.com • JULY 2016 • WorkBoat

6/1/16 12:36 PM

KODEN The MDC-7900 and MDC-7000 are Koden’s newest radars for the workboat market. They should be available in midsummer. The 7900 is a dedicated display while the 7000 is a black-box model. The new radars, which will meet new IMO regulations, are successors to Koden’s MDC-2900 series radars, with a number of improvements. The radar image is slightly bigger, by 4 mm and 14 pixels, and the 7900 and 7000 have “a higher pulse repetition,” said Allen Schneider, vice president of sales and marketing at Si-Tex Marine Electronics, Riverhead, N.Y., which handles sales and service in the U.S. for Tokyo-based Koden. “The pulses per second it sends out are much faster than we’ve had previously.” That im-

The Simrad R3016 radar.

Simrad

rotary knob. But the menu structure and automatic features “is above and beyond what most of the competition offers,” said Olsson. The second advantage is that Simrad has a wide range of radar antennas — smaller domes to large open-array antennas — that the display can be matched up with. “It works with any and all radar solutions,” Olsson said. That includes Simrad’s broadband radars that were introduced a couple of years ago and the more recent Halo Pulse Compression Radar. Combining the advantages of Simrad’s broadband antennas with the pulse system allows operators to detect targets within 20' to 72 miles away. With the Halo radar, Olsson said, “you can almost deliver the same performance in a three-foot antenna as you would get in a six-foot antenna.” And with a six-foot antenna, you almost get the same performance of a nine-foot antenna.

proves the overall target sharpness and discrimination. The true tail capability gives a good idea of the movement of vessels on the radar screen while the land and buoys remain stationary. The new radar have had the color gradations increased from seven to 16, giving you plenty of choices for tracking targets. Tracking of ARPA and AIS targets has been improved tenfold and ARPA target capacity has been increased from 60 to 100. AIS went from 254 targets to as many as 900 for IMO models and 1,000 targets for non-IMO radars.

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Both the 25-kW and 12-kW models have brushless antenna motors, which increases the service life of the motor. The 7000 black-box model is similar to Koden’s MDC-2500 black-box radar in that it will allow for a vertical display format, which is specifically designed for river towboat operations. It maximizes the river view, giving a north and south, fore-and-aft view. STANDARD HORIZON The HX370S has been Standard Horizon’s most popular VHF radio for the workboat market. But after 10 years it was time for an upgraded model. Initially the HX400 was seen as the replacement, but it had features that the workboat market didn’t need. “So we came out with the HX380S, which is a direct replacement of the 370,” said Jason Kennedy, executive vice president with Standard Horizon, Cypress, Calif. New features on the waterproof 380S include a lithium-ion battery, which

replaces the 370S’ nickel metal hydride battery. The lithium-ion battery is good for more than 13 hours on a single charge. “It’s a better battery with longer hours of use with a larger capacity with less weight,” said Kennedy. Features retained from the 370S include an optional speaker microphone/ headset jack and 40 programmable land mobile channels. That allows boat operators with shore-based operations to have an FCC land mobile frequency to communicate while also using the HX380S as a marine radio. FURUNO ECDIS Tired of having to pay to update your navigation charts or buy new ones? Well, put two ECDIS units in your wheelhouse and chuck the charts. That’s what Coast Guard NVIC 01-16, released Feb. 3, allows domestic operators to do. “That’s a new thing. If you want to get away from paper charts you can do

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it with two ECDIS, and use free official NOAA charts and never have to do that again,” said Bill Haynes, Deep Sea product manager with Furuno, Camas, Wash. You can go paperless with Furuno’s new ECDIS, the FMD3100. It is a scaled down version of the company’s more expensive ECDIS machine. “It’s a more comThe HX380 from pact, inexpensive Standard Horizon. platform that would even be considered on a smaller vessel,” said Haynes. That required designing a less expensive processor platform that puts both a computer and monitor into a single unit.

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6/1/16 12:41 PM

NY Waterway Continued from page 24

layoffs drove ridership down 12% and reduced company revenue by $800,000 a month, Imperatore considered Chapter 11 bankruptcy. In 2005, NY Waterway had run into financial difficulty and entered an agreement with New York real estate lawyer William Wachtel who formed a new company, Billybey Ferry Co., to take over and operate some boats under a licensing and management fee system that endures today. The Billybey partnership on the East River showed just how much demand there really is for alternative commuting. “Actually ridership has been double of what the projections were,” said Adams of the Waterfront Alliance. Those numbers were used by New York City to design a public ferry system that will carry passengers for a subsidized $2.75 fare, on par with riding the subway. This spring the citywide contract was awarded to Hornblower New York, the local subsidiary of the San Francisco-based company that runs excursion and charter vessels around Manhattan. NY Waterway and Billybey

In 2004, NY Waterway spent $2.4 million on engine overhauls for the Finest (above) and the Bravest, originally owned by New York Fast Ferry.

were among unsuccessful bidders for the citywide contract. But Imperatore brushes off any idea that his company will be affected. His now long-established river routes, plus job growth in the city, are fueling a residential boom along the waterfront. “From Fort Lee to Jersey City there are 30,000 new housing units being built or waiting approval. That’s a lot,”

Imperatore said. “We’ll build whatever (new boats) we need. “I’d like to do a ferry route from the north shore of Staten Island to midtown (Manhattan). It’s easy. I could do it in my sleep. St. George, Bayonne, World Financial Center, midtown, no subsidy. I almost think we could do that for $8 or $9. “So what’s the future? We’ll be here.”

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Please contact Jeff Powell 207-842-5573 • jpowell@divcom.com 54

WB16_Classifieds_July.indd 54

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ADVERTISERS INDEX Advertiser

Page

Advertiser

Page

ABS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

McDermott Light & Signal . . . . . . . . . . . . . . . . . . . . . . 29

Ahead Sanitation Systems Inc . . . . . . . . . . . . . . . . . . . 44

Metal Shark Aluminum Boats . . . . . . . . . . . . . . . . . . . 12

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Metals USA - Plates & Shapes . . . . . . . . . . . . . . . . . . 40

Bloom Incorporated . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Motor-Services Hugo Stamp Inc . . . . . . . . . . . . . . . . . 11

Brunswick Commercial & Gov't Products . . . . . . . . . . . 39 CENTA Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Coast Guard Foundation . . . . . . . . . . . . . . . . . . . . . . . 41 David Clark Company Inc . . . . . . . . . . . . . . . . . . . . . . 15 Duramax Marine LLC . . . . . . . . . . . . . . . . . . . . . . . CV3

MTU America Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Nautican . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Power Panels, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Reliant Recycling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Research Products/Blankenship . . . . . . . . . . . . . . . . . . 9

Floscan Instrument Co . . . . . . . . . . . . . . . . . . . . . . . . 17 R M Young Company . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Fremont Maritime Services . . . . . . . . . . . . . . . . . . . . . . 4 Robert Allan Ltd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Furuno USA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 R W Fernstrum & Company . . . . . . . . . . . . . . . . . . . . . 10 Great American Insurance Group . . . . . . . . . . . . . . . . . 6 Scania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CV2 Hamilton Marine Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Hammonds Fuel Additives Inc . . . . . . . . . . . . . . . . . . . 20 Hougen Mfg., Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Imtra Corp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 JMS Naval Architects . . . . . . . . . . . . . . . . . . . . . . . . . . 34 John Deere Power Systems . . . . . . . . . . . . . . . . . . . . . 33

Simrad - Navico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Thordon Bearings Inc . . . . . . . . . . . . . . . . . . . . . . . . . 21 TMS - LevelCom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Vigor Industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Volvo Penta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Karl Senner, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . CV4

Washington Chain & Supply Inc . . . . . . . . . . . . . . . . . 27

Louisiana Cat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Worldwide Electric Corporation . . . . . . . . . . . . . . . . . . 19

Lubriplate Lubricants . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Yanmar America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Marine Machining & Mfg . . . . . . . . . . . . . . . . . . . . . . . 12

ZF Marine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

www.workboat.com • JULY 2016 • WorkBoat

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LOOKS BACK JULY 1976

• U.S. Rep. David C. Treen, R-La., said recently that he opposes plans by the Occupational Safety and Health Administration to inspect U.S. vessels for compliance with OSHA standards. Treen said that he would be “fearful for the industry” if OSHA applied its rules on vessels. Although reasonable safety standards must be enforced, “OSHA regulations

have failed the test of reasonableness many times,” he said. “My contention is there is no question that the Coast Guard has sole authority to set safety and health standards on inspected vessels, and a good case can be made for that agency having authority on uninspected vessels.” • Quality Marine, Theodore, Ala., entered the workboat market with the recent delivery of the 95'×24' utilJULY 1986 ity boat Navajo

to Grand Isle Boat Rentals. The steel vessel is powered by a pair of Detroit Diesel 16V-71s that turn Rice 46" 4-bladed propellers through Twin Disc reverse reduction gears. The vessel is Coast Guard certified for 12 passengers and crew.

• Robert E. Derecktor of Rhode engineer of unlimited horsepower vesIsland Inc. delivered the first of two sels. Jean Thacher, 29, was awarded $3.8 million double-ended 1,280-pasthe license after passing a three-day senger ferries to New York City in May. examination at the Coast Guard Marine The 207' Alice Austin is powered by a Safety Office in New York. Thacher has Caterpillar 3516TA rated at 1,410 hp worked as a third assistant engineer for at 1,600 rpm driving a Voith-Schneider Exxon Shipping. VSP-24611/165 steerable-drive unit. The second ferry was scheduled for delivery in June. • The Coast Guard has licensed the first JULY 1996 woman as a chief • Towboat operators are as close as they have ever been to getting a national inspection program. The Coast Guard’s Fifth District (Portsmouth, Va.) recently launched a “courtesy” examination program for towing vessels, which are classified as “uninspected.” It was developed to improve safety, reduce accidents and address inconsistencies in the Fifth District’s boarding 56

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protocol. Other districts, from Boston to New Orleans, are moving toward adopting similar programs. The goal is to establish a single national standard for dockside and underway boardings. Companies that elect to participate receive decals if their vessels pass a 33-point safety and administrative checklist. Checklist items include operators’ licenses and documentation. www.workboat.com • JULY 2016 • WorkBoat

6/6/16 8:45 AM

Hull of a Breakthrough in Cooling Technology. Angled TurboTunnel HeAder design Increased convergent header pressure “jets” turbulent sea water between the upper and lower tube decks.

Turbulizer spAcers Unique shape spacers create vortex effect to “turbulize” the sea water to increase cooling efficiency (Von Karman effect).

Flow diverTer scoops Diversion of sea water disrupts the laminar flow and allows stagnant high temperature areas to be cooled.

PATENTS PENDING

oTHer engineered durAmAx HeAT excHAngers ®

Single-Stacked DuraCooler®

DuraCooler® SuprStak™ is an engineered, double-stacked,

Updated version adds flow diverters that greatly enhance cooling efficiency over previous design.

hull mounted cooler that “jets” turbulent seawater in a tunnel-like configuration between its top tubes and lower tube assemblies. Design innovations were made to optimize turbulence and greatly

Demountable Keel Cooler

increase flow velocity of seawater over the cooler by using state of

Replaceable copper-nickel spiral tubes cut maintenance costs and allows for easy upgrades.

the art Computational Fluid Dynamic (CFD) modeling techniques. Tested and validated in a full scale water tunnel.

Duramax® Box Cooler

DuraCooler® SuprStak™ is the high-performance answer to meet

Gives in-hull protection against underwater hazards and allows for large cooling capacity.

ever increasing cooling requirements using half the hull space.

Duramax® Plate Heat Exchanger

It is available in a one-piece braised or two-piece modular design

In-hull system can be easily expanded to re-power or cool multiple heat sources.

for easier handling.

www.DuramaxMarine.com Duramax Marine® is an ISO 9001:2008 Certified Company

Products And Knowledge You Trust

Duramax_suprstak_workboat8.125x10.875.indd 1 WB_CVRS.indd 3

p: 440.834.5400 f: 800.497.9283

10/5/15 8:41 3:21 AM PM 5/31/16

PROPELLING

EXCELLENCE

Karl Senner, LLC is proud to have supplied two Reintjes WAF 3455, 5.524:1, Reverse Reduction Gears to Foss Maritime, and congratulates them on the completion of the M/V Denise Foss. This is the second of three Arctic Tugs joining the diverse Foss fleet. Karl Senner, LLC has enjoyed a long partnership with Foss Maritime, and looks forward to providing quality equipment and exemplary service for many more years to come.

Shipyard: Foss Rainier Shipyard Owner/Operator: Foss Maritime

Karl Senner, LLC proudly represents:

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

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

WWW.KARLSENNER.COM (504)469-4000 WB_CVRS.indd 4

5/31/16 8:42 AM