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ON THE COVER

MAY 2015 • VOLUME 72, NO. 5

In April, several jackups, including the Ensco 82, were stacked in Galveston Bay, Texas. Photo by Bill Pike

FEATURES 28 Focus: Water Women Women are critical to the future of the maritime industry.

32 Vessel Report: Crowded Field New OSVs keep on being delivered into what has become an oversupplied market.

44 Cover Story: Down Time The U.S. Gulf oil service sector continues to feel the effects from lower oil prices.

BOATS & GEAR 38 On the Ways

Fifth ASD tug for Bisso Towboat from Main Iron Works. Bordelon Marine takes delivery of 257' ultra-light intervention vessel. SW Boatworks delivers fiberglass research vessel for university’s marine science program. Eastern Shipbuilding to complete construction on suction hopper dredge for Weeks Marine. Gladding-Hearn starts work on first of three 600-passenger sightseeing vessels for New York’s Circle Line.

50 Strong and Stable New Harley Marine harbor tug packs 5,150 hp into an 80'x36' footprint.

54 Bump & Run Whether recycled tires, wood or air, proper fendering is critical.

AT A GLANCE 10 10 11 12 14 16 18

On the Water: The ability to anticipate potential trouble. Captain’s Table: Stop picking on the Jones Act. OSV Day Rates: Drilling in Alaska and the Atlantic? WB Stock Index: Stocks lose ground in March. Inland Insider: Cheap oil may have some staying power. Insurance Watch: Trade shows are a learning opportunity. Legal Talk: Information is tougher to come by.

NEWS LOG 20 20 21 24 24

AEP is exploring options for its river operations subsidiary. Equity firm snaps up Marquette Transportation. Virginia awarded offshore wind lease. NLRB rules that mates are not supervisors. Coast Guard rule would make shore access easier for seafarers.

www.workboat.com • MAY 2015 • WorkBoat

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50 DEPARTMENTS 4 Editor’s Watch 8 Mail Bag 56 Port of Call 71 Advertisers Index 72 WB Looks Back

4/13/15 1:18 PM

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year ago, our Houston-based energy correspondent Bill Pike was sounding a word of caution in our annual offshore energy report. It looked like most of the majors would reduce capital expenditures. Analyst Allen Brooks said we were entering a “new era of austerity.” But many viewed the growing sluggishness offshore as merely a bump in the road rather than a major slowdown. They cited the continued strong interest in the deepwater market. Well, even deepwater is now feeling pressure from low oil prices, and we are officially in the midst of a major offshore downturn. “The first wave of the downturn looks extreme, but it is not sufficient,” Brooks said at our OSV summit held in Houston in April. Brooks thinks that another downturn that will follow this one is already in the works. The solution, he suggested, may be to fundamentally restructure the offshore energy industry. Most are blaming low oil prices for the market downturn. While that is mostly true, there is another factor that some operators were warning about over two years ago — overbuilding. Several OSV operators say that the biggest problem is that there are just too many boats in the Gulf market. And with over 30 high-specification OSVs under construction, the problem will only magnify. On the shelf, the smaller OSVs and crewboats are seeing utilization rates in the 40% to 55% range. Small vessels have also seen rates erode to below $3,000 a day. That rate is close to break even for some operators. But the atmosphere was not all gloom and doom in Houston in April.

David Krapf, Editor in Chief

Several speakers, while painting a lessthan-rosy picture, said that companies should not overreact. This is a cyclical industry where veterans have learned not to get too high or too low. Also, though a few operators have probably bit off more than they can chew and took on too much debt, others have been more disciplined and kept their balance sheets in good shape. The pundits are all over the board, with some seeing oil dropping to $20 bbl. and others predicting a rebound to $100 by the end of the year. The answer likely lies somewhere in between — plan accordingly.

dkrapf@divcom.com

WORKBOAT® (ISSN 0043-8014) is published monthly by Diversified Business Communications and Diversified Publications, 121 Free St., P.O. Box 7438, Portland, ME 04112-7438. Editorial Office: P.O. Box 1348, Mandeville, LA 70470. Annual Subscription Rates: U.S. $39; Canada $55; International $103. When available, extra copies of current issue are $4, all other issues and special issues are $5. For subscription customer service call (978) 671-0444. The publisher reserves the right to sell subscriptions to those who have purchasing power in the industry this publication serves. Periodicals postage paid at Portland, ME, and additional mailing offices. Circulation Office: 121 Free St., P.O. Box 7438, Portland, ME 04112-7438. From time to time, we make your name and address available to other companies whose products and services may interest you. If you prefer not to receive such mailings, please send a copy of your mailing label to: WorkBoat’s Mailing Preference Service, P.O. Box 7438, Portland, ME 04112. POSTMASTER: Send address changes to WORKBOAT, P.O. Box 1792, Lowell, MA 01853. Copyright 20 15 by Diversified Business Communications. Printed in U.S.A.

www.workboat.com • MAY 2015 • WorkBoat

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Jerry Fraser jfraser@divcom.com

EDITOR IN CHIEF

David Krapf dkrapf@divcom.com

TECHNICAL EDITOR Bruce Buls bbuls@divcom.com SENIOR EDITOR Ken Hocke khocke@divcom.com ONLINE EDITOR Leslie Taylor ltaylor@divcom.com CONTRIBUTING WRITERS Capt. Alan Bernstein • Michael Crowley • Dale K. DuPont • Pamela Glass • Max Hardberger • Kevin Horn • Joel Milton • Bill Pike • Kathy Bergren Smith

PRODUCTION DIRECTOR

ART DIRECTOR PRODUCTION ASSOCIATE

Doug Stewart

PRODUCTION ASSISTANT

Sokvonny Chhouk

PUBLISHING OFFICES

Jenn Bailey Dylan Andrews

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 ADVERTISING COORDINATOR 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 EUROPEAN SALES Kristin Luke (207) 842-5635 • Fax: (207) 842-5611 kluke@divcom.com WESTERN U.S. AND CANADA PACIFIC RIM SALES Susan Chesney (206) 463-4819 • Fax: (206) 463-3342 schesney@divcom.com GULF / SOUTH U.S. SOUTH AND CENTRAL AMERICA SALES Jeff Powell (207) 842-5573 • Fax: (207) 842-5611 jpowell@divcom.com ATLANTIC / CENTRAL STATES Adam Shaw ashaw@divcom.com (207) 842-5496 • Fax: (207) 842-5611 EXPOSITIONS (207) 842-5508 • Fax: (207) 842-5509 Producers of The International WorkBoat Show 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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Recreational boaters vs. commercial mariners

recently read WorkBoat’s March story, “Close Calls, Rec boaters are putting commercial mariners on edge,” with mixed thoughts. I am an observer on both sides of the recreational versus commercial operator issue. Besides being a northern New Jersey Sea Tow towboat operator of 16 years, I have been a licensed New York and New Jersey safe boating instructor for the past seven years. Education can’t fix bad attitudes on both sides. Most states require passing an eighthour long NASBLA-(National Association of State Boating Law Administrators) styled boater safety course to run anything with an electric or gas motor. But does that make them good boaters? Hardly, even if they memorized every single rule taught. And there are absolutely no physical qualifications needed, unlike a commercial vessel operator. The recreational certification program is not perfect with its eight-hour class or its recently elevated 80% (New Jersey standard) or better final proctored exam grade requirement. I was shocked to learn that people who are clearly unable to safely run a boat, namely deaf or even legally blind

people, have already passed closed book tests and have been granted boater safety certificates. Additionally NASBLA, the nationwide advisory entity, does not include or test commercial vessel lighting. I tell my students who run in and around nearby New York Harbor to carry $10 plastic boating information cheat sheet cards from boating supply stores for when that information may be needed. People die and kill others when they don’t know what they were looking at. Whether it’s the 85-foot party boat claiming draft constriction privileges in a 25-foot deep bay, or the rec boater cutting between a tug and tow in a channel, there’s enough blame to go around. Interestingly the March WorkBoat article included a diagram of a barge tow’s obstructed view that can extend several hundred feet in front of the barges. A classic example of this concept is the real life example that occurred in broad daylight on the Delaware River in July 2010 — the duck boat incident. In this case both vessel operators were professional mariners and both failed. One professional mariner was on the phone in the lower tug bridge of the 75'6" Caribbean Sea pushing the 250-foot empty sludge barge The Resource while the DUKW

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34’s “professional” operator never had his passengers don PFDs while awaiting an obvious collision before he alone abandons ship. Two people died at the hands of these educated licensed “professionals.” So, do boaters need education? Absolutely. In New Jersey, about 507,000 boater safety certificates have been issued in a state with 5.1 million adults and about 175,000 registered boats. Not bad in a lawsuit-happy state. Boat operators are responsible for the well being of their passengers. Ideally, these operators are sober, conscientious and non-arrogant — not smart propeller heads. This is true for both commercial and recreational. Education is a start, but alone, it falls far short of curing the problem. Money or a gray beard, a prudent vessel operator does not make. Capt. Frank Dudis Boating Instructor New Jersey Boating College Midland Park, N.J.

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On the Water

Recognizing potential trouble

O By Joel Milton

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

ne of the most valuable skills that a mariner can develop is the ability to recognize potential trouble brewing, then take steps to avoid it before “in extremis” describes your predicament. For risks big or small, the same basic principle always applies: prevention is better than response. Still, events can unfold quickly, so as risk and consequence elevates, so too should your relative level of preparedness. But sometimes we humans fool ourselves into thinking that we’ll always see it coming with time to spare. During a conversation about the operation of small open boats in bad weather, an acquaintance of mine who was a bayman (inshore commercial fisherman) said to me that over a period of 20-plus years he had never once worn the lifejacket that he was required to carry in a readily accessible location. He fully expected that any occasion when he had to don a lifejacket was highly unlikely to occur. “But if it ever gets bad enough, I’d put it on,”

Captain’s Table Why attack the Jones Act?

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 January, Sen. John McCain said that he intended to seek changes to the Jones Act and Passenger Vessel Services Act (PVSA). As a result, he rolled out a proposed legislative amendment to strip away the U.S.-build component of the Jones Act and other cabotage laws. His plan was to attach the amendment to the Keystone Pipeline bill, which Congress was considering at the time. In announcing the amendment, McCain said, “I have long advocated for a full repeal of the Jones Act, an antiquated law that has for too long hindered free trade, made U.S. industry less competitive and raised prices for American consumers. The amendment I am introducing again today would eliminate this unnecessary, protectionist restriction.” He went on to quote a Congressional Research Service report saying that an extra $6 bbl. is spent to ship oil from the Gulf of Mexico to New York aboard U.S. Jones Act tankers. Calling the Jones Act archaic, McCain urged his Congressional colleagues to support free trade by repealing the act.

he allowed. When I asked him to define “bad enough” he just shrugged. When I asked how he could be so sure that he’d be able to get to it quickly enough and don it securely enough to do him any good, he developed a blank stare that signaled end-of-discussion. There’s a conflict inherent in that line of reasoning, especially considering the number of baymen that can’t swim and have drowned over the years without lifejackets on. By the time things get bad enough to scare you into finally acting, you may be in no position to do so, or your efforts may prove insufficient. My bayman friend routinely stored his beat-up lifejacket stuffed up in the bow of his sharpie, with the anchor piled on top of it. The helm was located three-quarters of the way back towards the stern. For me it was easy to see that those few feet may as well be a mile once waves start breaking over the bow or the stern and swamp the outboard motor or flip the boat over. For him it was not worth considering. The lesson here is to give yourself as much room as you can to recover from your own mistakes. We all make them.

As a business owner, whose livelihood, assets and future has been built around the tenets of the Jones Act, I am appalled that a lawmaker of Sen. McCain’s standing would try to undo what has preserved U.S. jobs and has helped so many segments of the maritime industry for decades. Shipyards, coastwise operators, owners and operators of U.S.-flagged vessels and many others have a great deal to lose if Sen. McCain prevails in this critical debate. Fortunately, maritime groups such as the American Maritime Partnership, the American Waterways Operators, the Shipbuilders Council of America, the Passenger Vessel Association and multiple labor groups mobilized supporters in the Senate to vote against the amendment. In the face of this opposition, McCain decided not to introduce his Jones Act amendment. Sen. McCain has made it clear over the years that he is not a Jones Act supporter, and now that he is chairman of the Senate Armed Services Committee, he is in a powerful position to continue to advocate for its repeal. As a result, the U.S. maritime industry must remain vigilant and mobilize again when necessary. After all, this is about our jobs, our livelihood and our future. www.workboat.com • MAY 2015 • WorkBoat

4/9/15 4:40 PM

O re m re

MARCH 2015 DAY RATES, FLEET UTILIZATION VESSEL TYPE

OSV Day Rates Alaska drilling pending, Atlantic is possible By Bill Pike

ews of depressed oil prices and reduced activity levels in the Gulf is getting a bit old. So it’s refreshing to spot some news that could bode well for offshore development. The industry got that at the end of March when the Department of Interior (DOI), validated the seven-year-old auction of Arctic drilling rights offshore Alaska at the same time it began considering a planned auction of drilling permits in the Atlantic Ocean in 2021. The Alaska decision keeps the door open for Shell to resume drilling in the Chukchi Sea this summer on the Burger Prospect, some 70 miles offshore. Shell abandoned Arctic operations offshore Alaska in 2012 following the

AVERAGE DAY RATES FEB. '15

MAR. '15

UTILIZATION

MAR. '14 MAR. '15 MAR. '14

SUPPLY (DWT) grounding 1,999 & below $14,613 $14,613 $14,830 90% 88% of the Kulluk 2,000-2,999 $22,828 $22,828 $24,679 86% 90% floating drill3,000-3,999 $30,924 $30,924 $31,318 96% 100% ing unit on 4,000-4,999 $30,750 $30,750 $32,000 100% 100% an Alaskan 5,000 & above $39,644 $39,644 $39,589 100% 100% island after CREWBOATS the drilling Under 170' $ 3,735 $ 3,835 $ 4,716 60% 83% season end170' & over $ 7,386 $ 7,372 $ 8,010 82% 87% ed. However, SOURCE: WorkBoat survey of 32 offshore service vessel companies. Shell still has a number of hurdles to clear before drilling offshore notable, the possibility that exploration Alaska can resume. Among them, Shell may be approved in the Atlantic Ocean must secure individual drilling conis groundbreaking. The Atlantic is on tracts, win the Bureau of Ocean Energy the table as DOI weighs its options for Management’s approval for the broad next generation offshore oil and gas exploration plan, conduct drills of its development. DOI’s draft proposal tenemergency containment system and tatively includes 14 offshore lease sales provide redundant drilling and safety between 2017 and 2022, including 10 equipment to mitigate any potential in the Gulf of Mexico, three in Alaska well control incident. In preparation waters and one in the Atlantic. for the validation, Shell began moving A return to Alaska and a robust drilling rigs toward the area well before Atlantic exploration and development DOI’s announcement. program would provide a major boost If returning to the U.S. Arctic is for the offshore service vessel market.

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4/9/15 4:40 PM

STOCK CHART

WorkBoat Composite Index Stocks lose 1.8% in March The WorkBoat Composite Index lost 32 points in March, or 1.83%. Losers topped gainers 24-7. Once again, offshore service operators were among the big losers, with Tidewater, Gulfmark Offshore, Rowan Companies and Ensco all posting double-digit percentage losses in March. The Operators Index lost over 4% for the month, while the PHLX Oil Service Sector Index (OSX) lost almost 5%. Bucking the trend

was Nabors Industries, which gained 6.56% in March. During Rowan’s fourth quarter and full-year 2014 earnings call Feb. 27, Mark Keller, executive vice presidentbusiness bevelopment, said utilization had dropped to 25% in the U.S. Gulf. “Only 14 jackups are contracted, and projects are few and far between. We haven’t seen these levels since the summer of 2009,” he said. At the end of the quarter, 34 jackups were cold-stacked,

INDEX NET PERCENT COMPARISONS 2/27/15 3/31/15 CHANGE CHANGE Operators 372.84 357.47 -15.37 -4.12 Suppliers 2848.97 2812.76 -36.21 -1.27 Shipyards 1842.00 1810.19 -31.81 -1.73 Workboat Composite 1761.98 1729.69 -32.29 -1.83 Oil Service Index (OSX) 199.54 190.12 -9.42 -4.72 Dow Jones Industrials 18132.70 17776.12 -356.58 -1.97 Standard & Poors 500 2104.50 2067.89 -36.61 -1.74

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

with attrition expected to increase throughout 2015. “While we’re doing our best to maneuver this well-to-well market and meet the needs of our established customers in the region, we are actively marketing these rigs internationally,” said Keller. Despite this, Keller was optimistic. “There’s a reason that we’ve been in business for over 90 years. We plan, we compete, we execute and we succeed. There’s no doubt that this is a difficult time for the industry. However, our current backlog positions us favorably amongst our peers to advance through 2015 towards a cycle recovery.” Despite the sluggish fourth quarter, 2014 was a strong year for Rowan. The company received commitments for 18 of its 19 jackups and finalized the contract on its fourth and final newbuild drillship. Rowan added about $1.9 billion in drilling commitments in 2014. — David Krapf

www.workboat.com • MAY 2015 • WorkBoat

4/9/15 4:43 PM

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4/7/15 9:59 AM 7/17/2014 12:54:09 PM

Inland Insider Cheap oil has some staying power

hinking about buying a big SUV, pickup truck or other vehicle viewed as fuel inefficient? Go ahead and take the plunge. Ignore the experts who are predicting that the current cheap oil and gas prices

are a temporary aberration that will be quickly reversed. Expect that cheap oil will continue not for months, as some hope and few have mistakenly expressed, but for years to match the expected life span of a big new SUV. Barring a major catastrophic event like war, etc., the fundamentals for continued cheap oil will remain in place for some time. Existing producers, both foreign and domestic, with wells in place have no

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incentive to shut off production. Domestically, new landside wells are coming online that have low costs in alignment with the lower oil prices. Other producers are drilling wells By Kevin Horn to take advantage of lower costs from reduced demand and then capping these wells for future production when prices stabilize. Thus an inventory of near instant production waits for future supply and demand circumstances favorable to the well owner. Low oil prices should stay around for years, not just because of an abundant domestic supply but also weak growth in world demand. The expected expansion of India and Asia into economic engines with large prosperous middle classes with personal automobiles is slowing and will take much longer to roll out than envisioned a decade ago. Wealth distribution in leading Asian contenders for economic growth is still heavily skewed to a small segment of these societies. The people in these countries will be riding public transportation for some time to come. The rapid rise of oil prices in the 1970s and 1980s had a big effect on transport providers. Back then towing companies did not typically have fuel consumption meters or otherwise measure fuel use. This all changed in response to expensive oil. These efficiency gains will not be reversed in the current cheap oil environment. However, the value of fuel efficiency will play a smaller role in operations decisions such as vessel and tow size, speed and other factors that have a direct effect on fuel consumption. There will be lasting differences in a sustained shift from expensive to cheap oil. Kevin Horn is a senior manager with GEC Inc., Delaplane, Va. He can be contacted at khorn@gecinc.com. www.workboat.com • MAY 2015 • WorkBoat

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Insurance Watch Use your trade show education

he winter industry show season was strong. At these shows you try to learn as much as you can about equipment and electronic upgrades, new products, new training methods

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show and from attendees at my presentation. When I go to these events I try to learn whatever I can, because you By Gene never know when McKeever you’ll need to tap that knowledge. For example, two years ago I went to the WorkBoat Show to represent not only me but also my column. I ended up learning all I could about the emerging use of liquid natural gas (LNG) and how it will affect delivery and usage of LNG in outlying island nations. The Caribbean uses diesel for much of its power and as we know diesel is expensive and somewhat dirty. What if an enterprising company set up the infrastructure to convert power down there to LNG in the islands? It would save money, help the environment and, if done properly, could be safely delivered. How will that help my knowledge base? As that LNG delivery method improves and the power plants convert to LNG, I’ll be able to offer reasonable insurance to the companies because of the understanding and knowledge I gained at a trade show about an emerging technology. I’ll be able to educate the insurance underwriters that I deal with. For me, this is a win-win. I gained this insight because of the way I approach trade shows. They should be viewed as an opportunity, not as just an obligation. You too can sometimes be drawn in a different direction in your business dealings by gaining knowledge that ties in with what you do and increases your capacity to succeed. Most people attend these events to see friends and look for new items, but you should also look for new opportunities to grow your business in ways you never expected. Gene McKeever is a marine insurance agent with Allen Insurance and Financial. He can be reached at 800-4394311 or gmckeever@allenif.com www.workboat.com • MAY 2015 • WorkBoat

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Legal Talk Where’s my information?

hen you want information, it’s mostly online until it isn’t. As a maritime lawyer I’m always looking for a courtroom edge. A secret, once revealed, will often turn the tide in my client’s favor. These secrets must be juiced clear of the rind with documents obtained from, say, the Coast Guard under the Freedom of Information Act or online oil pollution incident reports from the National Response Center. Often, these reports and documents are tracked down through dogged hunting and with cooperative government agencies providing access. But I sense a change afoot with the federal government, which is battening down its hatches and slipping us the proverbial bird when we ask for documents. Legally mandated dead-

lines by which federal agencies must respond to FOIA requests seem to be ignored. Responses, if they come at all, arrive months after the request is made. Lately, when I ask the Coast Guard for even the most basic information regarding an incident, I typically get a response so devoid of sense I honestly hope that they’re intentionally giving me the run around. Last year, I noticed the NRC’s website of reported pollution incidents was taken offline. It had a handy search tool you could use to filter and identify pollution incidents. When it reappeared, the search tool was missing and the data was provided in one big downloadable file. I felt the agency was telling us to “see if you can find anything useful now.” I wonder what phone call was made or email sent to ruin what’d once been a research jewel. The Freedom of Information Act is a marvelous law that entitles you to obtain unreleased information

and documents controlled by the government, but it’s in need of preventative maintenance. Last year, a proposed John Fulweiler update was floated and then sunk by Congress. Now we’re left with tired iron and excuses about understaffing and how such requests aren’t a priority. Like the canary in the coal mine, this isn’t a good sign. FOIA was meant to provide transparency and you should clamber for its continued good health. With a willing client in hand, I intend to chase these agencies down in the courtroom, call them to task and demand compliance with the law. John K. Fulweiler of Fulweiler LLC is a licensed mariner and maritime attorney. He can be reached at john@fulweiler.com or 1-800-383-MAYDAY.

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NEWS LOG

NEWS BITTS MARQUETTE ACQUIRED BY EQUITY FIRM

AEP River Operations

AEP may sell its river operations subsidiary.

AEP shopping its inland river operations unit

merican Electric Power (AEP) is exploring options for its competitive barge transportation subsidiary, AEP River Operations, while keeping the captive business that hauls coal to its regulated power plants. Columbus, Ohio-based AEP said it hired Morgan Stanley & Co. to review potential alternatives for its river operations, which has a fleet of 58 towboats and 2,269 barges and employs 1,090. The unit, headquartered in Chesterfield, Mo., earned $49 million in 2014 compared to $12 million in 2013 “primarily due to improvements in barge freight demand,” the company said. Parent AEP’s earnings were $1.7 billion versus $1.6 billion in 2013. Earlier in the year in a separate process, AEP hired Goldman Sachs to look at options for its nine unregulated power plants in Ohio. “We are primarily a regulated utility, so it makes sense to evaluate the fit of our competitive business into our overall strategy,” spokesman Tammy 20

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Ridout said about the river operations subsidiary, which delivers about 45 million tons of dry and liquid products annually, including approximately 10 million tons of coal to AEP’s unregulated plants. AEP’s captive coal fleet delivers about 21 million tons of coal each year. The fleet has 12 towboats, 509 barges and employs 250. “It’s a logical time for them. This industry is not growing,” said Brent Dibner, a maritime industry management consultant at Dibner Maritime Associates, Chestnut Hill, Mass. So if you buy into an industry like that, “you’re basically betting that you can win competitively.” “Buyers traditionally have been private equity groups who believe they can buy and hold or buy and flip,” he said. AEP’s own take on the business is that “competition within the barging industry for major commodity contracts is intense, with a number of companies offering transportation services

arquette Transportation Co. LLC announced in late March that BDT Capital Partners LLC had acquired a majority interest in the company. The deal creates a long-term partnership with current Marquette minority shareholders, including CEO and President John Eckstein, other members of the Eckstein family and Marquette management. Paducah, Ky.-based Marquette was a portfolio company of KRG Capital Partners, a middle-market private equity group based in Denver. Harris Williams & Co. acted as the exclusive financial advisor to Marquette. Additional terms of the deal were not disclosed. Marquette's River unit has more than 50 linehaul towboats ranging from 4,000 hp to 9,000 hp. Key commodities transported by Marquette are agricultural, mineral, rock and liquid products. The Gulf-Inland unit has over 60 inland towing vessels up to 3,400 hp. The unit features 33 2,000hp vessels and three new Z-drives that were delivered in 2014. The Offshore unit has nine offshore tugs, ranging from 2,400 hp to 5,000 hp. — David Krapf

in the waterways we serve,” according to regulatory filings. “The industry continues to experience consolidation.” Noting that the river operations unit — one of the largest U.S. inland marine transportation companies — may be sold, Fitch Ratings said, “divesture of this business would be a modest positive for AEP’s consolidated business risk profile.” New federal environmental regulations also are affecting utilities, especially coal-fired plants. “Not only is it a dark cloud over the future, but for European exports, coal is not growing at all,” Dibner said, “and utilities are moving away from it.” www.workboat.com • MAY 2015 • WorkBoat

4/9/15 10:16 AM

Through 2016, AEP expects to have closed 28 power units from Virginia to Oklahoma, representing about 28% of its coal-fired generation and about 17% of its total power output. AEP said it would complete a review of its options for river operations “as promptly as practicable.”

Virginia awarded offshore wind energy lease from BOEM

irginia vaulted to the front line of offshore wind energy development in the U.S. when the state was awarded a wind research lease from the federal government in late March. The lease was awarded by the Bureau of Ocean Energy Management to the Virginia Department of Mines, Minerals and Energy. It allows development of a 12-MW, grid-connected facility of two Alstom 6-MW turbines

Siemens

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A wind farm like this one offshore Sweden may be in Virginia’s future.

and associated cabling and meteorological buoys to document conditions on the outer continental shelf, about 24 miles east of Virginia Beach and adjacent to the area BOEM has designated the Virginia Wind Energy Area. BOEM officials said the data gathered by Virginia’s pilot project would be publicly available and usable by any other entities seeking to lease shelf

locations to build turbines. The planned twin turbines would generate electricity for just 3,000 homes, but the lease sends a more powerful signal in moving Virginia ahead in developing a wind energy industry. “Developing our clean energy resources is an essential element of building a new Virginia economy … With this research lease, Virginia is leading

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the way in building wind turbines in the Atlantic Ocean and taking the next step toward the clean energy economy we need to create jobs and lower energy costs now and into the future,” Virginia Gov. Terry McAuliffe said in a statement praising the lease. Virginia is pushing hard for offshore oil and gas exploration that would benefit its shipbuilding and ports

industries. But wind has been part of that portfolio too, as the state partnered with Dominion Resources Inc. and others to start the Virginia Offshore Wind Technology Advancement Project. Dominion was the recipient of a $47 million grant promised by the U.S. Department of Energy, part of the startup renewable energy subsides initiated

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early in the Obama administration. Part of the success is “the Virginia project has gotten some federal money, and it’s a small project,” said Jeremy Firestone, a professor of marine policy at the University of Delaware’s wind power program. “You’ve got a vertically integrated utility involved. That all helped make it happen.” As the Virginia project goes forward, others are sputtering. The struggling Cape Wind project in Massachusetts was dealt a blow this winter when two of its biggest potential power purchasers pulled out of their deals. But Firestone said there are stronger levels of public support for wind power along other reaches of the coast. “Cape Wind is the most controversial wind project in the world. It is an outlier,” he said. On the same day the Virginia lease was announced, the offshore wind power group Fishermen’s Energy was in a New Jersey state appeals court, arguing with the state Board of Public Utilities over the BPU’s refusal to approve its five-turbine demonstration project that would be built a few miles offAMthe beach in Atlantic City. The city, 9:03 already home to a massive onshore wind energy installation that greets visitors driving into the resort, readily bought into a 2010 proposal from a consortium of New Jersey fishing and seafood businesses organized by Dan Cohen of Atlantic Capes Fisheries in Cape May. “We found strong support for the project,” said Firestone, who has done extensive study of public attitudes to the Fishermen’s Energy proposal. The project seems to work for Atlantic City and its visitor audience because “there’s a lot going on there, so it’s just another part of the show,” Firestone said. But Fishermen’s Energy does not work for the New Jersey utilities regulators, who insist its finances add up to a bad deal for electricity ratepayers, even if Fishermen’s Energy has the same $47 million commitment as Virginia from the Department of Energy. — Kirk Moore

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4/14/15 10:46 AM 24/03/15 14:08

Coast Guard wants easier shore access for mariners

NEWS BITTS MATES ARE NOT SUPERVISORS, NLRB SAYS

1/8/2009

rompted by complaints from mariners trying to go ashore, the Coast Guard proposed a rule late last year to remove obstacles erected at some facilities. While 90% of Maritime Transportation Security Act (MTSA)-regulated facilities pose no problems, others make shore access impractical “by placing extreme limitations on escort availability or by charging exorbitant fees,” the Coast Guard said. The proposed rule would require owners or operators of facilities regulated by the Coast Guard to implement a system that provides seafarers and others with access between vessels moored at the facility and the facility gate in a timely manner and at no cost to the seafarer or other individual. Current problems range from waiting

he National Labor Relations Board has reaffirmed its decision that mates are not supervisors for union organizing purposes, a ruling that could significantly impact the workboat industry. Brusco Tug & Barge, Longview, Wash., has appealed the March 18 decision. Two NLRB members, chairman Mark Gaston Pearce and Kent Hirozawa, agreed with earlier findings that Brusco “failed to meet its burden of establishing that the tugboat mates are statutory supervisors” based on the legal definition of their duties. NLRB member Harry Johnson III dissented. “According to my colleagues, however, the mates do not supervise the crew they oversee (never mind that the crew is required by federal law to obey them),” he said. “The unavoidable result of their decision is that, in the swiftly changing, unpredictable, and potentially hazardous marine environment, there is no supervision for a good half of each 30-day sea voyage when the mates control the operation of the vessel and are vested with the authority of the captain.” The board’s latest decision can’t be reconciled with an earlier ruling or with “the cumulative weight of 50 years of board and court precedent” establishing the supervisory status of pilots and mates, Johnson said. Don Marcus, president of International Organization of Masters, Mates & Pilots (MM&P), which won a May 2000 organizing election at Brusco, was “pleased that the NLRB has once again determined that mates are employees entitled to union representation.” Brusco’s 1:32lawyer, PM Michael Page 1Garone, of Schwabe, Williamson & Wyatt, Portland, Ore., said they want the U.S. Court of Appeals “to review and reverse the NLRB decision on supervisory status.” Whether mates are supervisors “is the central issue in the case,” he said. “If the mates are not supervisors, then there could be a bargaining obligation.” — D.K. DuPont

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three hours for TWIC-holding facility personnel to prohibiting TWIC-holding seafarers from walking between the vessel and the gate or banning mariners from leaving the vessel altogether. “We have received other complaints of facilities charging $400-$500 (in addition to requiring the vessel agent to independently hire its own TWICholding escorts) before allowing seafarers ashore,” the Coast Guard said in its proposed rule published Dec. 29, 2014.

The new regulation would cover not only mariners, pilots and labor organization representatives but also port engineers, classification society surveyors, ship’s agents and others authorized to perform work on and for a vessel. The Coast Guard estimates the rule would affect 2,498 facilities, which would need to implement a new access system within a year of publication of the final rule. The comment period ended on Feb. 27.

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“Shore leave and access to the ship is a major issue not only for seafarers, but for the entire maritime industry,” Capt. Donald Marcus, president of the International Organization of Masters, Mates & Pilots, said in his comments on the rule. “With a global shortage of seafarers it affects the recruitment and retention of seafarers who are treated like potential criminals and terrorists.” The American Waterways Operators said vessel operators have had to pay high fees to launch services because terminals and refineries prohibit nonfacility personnel from being escorted through their grounds. One AWO member who operates nationwide estimates that it spent “more than $130,000 on escort providers on the East Coast alone” last year, AWO said. AWO also suggested the Coast Guard “include explicit references to port captains, shore-based tankermen, vessel service technicians, cargo inspectors and crew members arriving at a vessel from a facility.” And it wants it made clear that facility owners can’t pass access costs on to vessel owners. The Maritime Exchange for the Delaware River and Bay supports providing mariners and seafarer welfare organization representatives with “timely, nocost access” between vessels and facility gates. However, facilities shouldn’t have to absorb the cost of escorts for people who don’t have TWICs or who can’t get them “due to the results of their security threat assessments.” The Passenger Vessel Association (PVA) wants to be sure the proposed rule doesn’t “inadvertently impose new and unnecessary requirements on a facility that receives the typical U.S.flagged passenger vessel. For vessels with security plans operated by PVA members, there is no need for their vessel workers to have scheduled or oncall escorting across the premises of the terminal or even a monitoring system for their pedestrian access routes.” Since terminals provide designated public access corridors for passengers, “crewmembers simply follow the same public path of travel to reach their vessel,” PVA said. — D.K. DuPont www.workboat.com • MAY 2015 • WorkBoat

4/9/15 10:09 AM

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Women on the Water

Water Women

Government and others feel that women are critical to the future of the maritime industry.

By Pamela Glass, Washington Correspondent

WB_Focus_Conference_LINO.indd 28

s tug and barge operators and others in the maritime industry struggle to fill vacancies and worry about the future as older mariners retire, they should look to an underused source — women. That was the message from federal and private sector industry leaders at the Seventh Annual Women on the Water (WOW) conference held in late March at the U.S. Merchant Marine Academy in Kings Point, N.Y. Organized by the U.S. Maritime Administration, the conference provides a venue for maritime professionals to help female cadets at the nation’s seven maritime academies find their place in a rewarding but often challenging work environment. The annual conference, which is hosted by a different U.S. maritime academy each year, brought together over 125 professional mariners and maritime academy cadets.

The U.S. merchant fleet might be shrinking, but transporting the nation’s goods by water is growing as trade through U.S. ports expands to meet global demands, especially with the boom in U.S. energy products, speakers said. This, coupled with the exit of aging mariners due to retirement and new regulations requiring more training and days at sea, will create a serious shortage of workers in years ahead. Currently, there is big demand for engineers, where six-figure first-year salaries are commonplace.

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To fill vacancies on the water, women provide maritime companies with a growing and relatively untapped source.

WOMEN CAN FILL THE GAP “The industry must attract the very best people,” Maritime Administrator Paul N. Jaenichen Sr. told the conference. “The industry is pretty dominated by men, but talent is talent, and that includes gender. We have to leverage this diversity of thought, the commitment and character that women have to www.workboat.com • MAY 2015 • WorkBoat

4/7/15 10:57 AM

offer. To be sustainable going forward, we must diversify. Women are absolutely critical to the future of the maritime industry.” The conference touched on a number of topics and tools to help female cadets make the right decisions, compete for jobs and succeed in their careers. The sessions discussed rules of the road for women at sea, career opportunities in different maritime sectors, life onboard ship, achieving a work-life balance, financial planning and how to work with the media during a crisis. Women still only make up a small fraction of the maritime industry, but the numbers have been growing as companies and maritime training schools have been more aggressively recruiting female workers and students. This is quite a contrast to the decades before women were first admitted to maritime academies in 1974. “These girls don’t know how easy they have it now,” Capt. Joy M. Man-

they, operations coordinator and chaplain at Kirby Corp., Houston, told the audience. “The situation now is more sisterly, daughterly, more collegiate.” Manthey has been a captain for almost 40 years, and was the first woman to hold a First Class Pilot’s License in 1980 on the Mississippi River. “When I started, there were no women in the brownwater industry. God used me to break into brownwater.” She gazed out at the audience of young women, many in their academy uniforms and added, “We’d love to have you come work with us in the inland side.” Manthey often mentors young women moving up the hawsepipe at Kirby. “Things have changed at Kirby. We now have 25 women,” she said. Rosemary Mackay, lead engineering instructor and simulator operator at Resolve Maritime Academy, Fort Lauderdale, Fla., said that women can shape the culture of a vessel and

‘The industry is pretty dominated by men, but talent is talent, and that includes gender.’ Paul N. Jaenichen Sr. Maritime Administrator develop leadership skills by mastering both technical and people skills. “As more of us move up the ranks, we can observe leadership and notice what works and doesn’t work,” she said, advising cadets not to take on the role of “mothers or fathers, because this is disrespectful of the crew as they aren’t children.” Good leaders delegate and are fair with their crews, regardless of gender. “You shouldn’t hold a female subordinate to a higher standard because you want them to succeed, that’s chauvinism,” MacKay said. She added that women shouldn’t accept every offer from a male colleague to help unless it’s a job that clearly must be done by

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Women on the Water two or more people. “If you do, you’ll put yourself in a position of being criticized for not carrying your weight.” NO SPECIAL TREATMENT Karen Basciano, a USMMA graduate who began in the towing industry and is now a pilot with the Sandy Hook Pilots Association, Staten Island, N.Y., said she joined the industry at a time when there were few women and academy graduates were unwelcome. She advised cadets to ditch the female attitude that “I’m a woman and it’s going to be hard.” Instead, go into a job with the attitude that you are a professional mariner. “Once you get into the industry, you’re on your own,” Basciano said. “Don’t expect extra treatment.” Despite setbacks, “you need to keep coming back, show them that you want to be there, and they (men) will eventually move on.” In another session, a self-proclaimed “gravitas guru” who consults women

on presenting themselves in social and professional situations explained how women and men view challenges, crises, relationships and leadership from very different perspectives. “Men prize combat, competition, they go for the gold, and they don’t worry about relationship management,” said Raleigh Mayer, principal of Raleigh Mayer Consulting in New York. “Women are more collaborative, compassionate, they worry about relationships.” She said there are three “Princess Ps” that limit women: perfectionism, permission-seeking and taking things personally. To present a positive image that exudes confidence, power and authority, Mayer urged cadets to have a polished personal appearance, join professional organizations, and manage relationships by avoiding gossip, complaining and unfair critiquing. Female cadets at the WOW conference said that they were attracted to a maritime career because of job diver-

sity (containerships, passenger vessels, cruise ships, shoreside positions such as maritime tourism, etc.). Good salaries are also a draw, as well as the opportunity for travel and long periods of time off between sailings. Laura Steinberger will graduate soon from the Great Lakes Maritime Academy in Traverse City, Mich. She has already landed a job with the Interlake Steamship Co. as a third mate and pilot. At age 28, she is one of the older cadets, having come to the maritime trades after studying and working in criminal justice. For others, the call of the sea is strong. “I’d like to work on a containership or a tanker,” said Madison Shapiro, a second year student at the California Maritime Academy, Vallejo, Calif. “I definitely want deep sea. I love going out for three months and coming back for three. I want to travel to Africa for a safari and sail around the world while doing something I love.”

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Offshore Supply Vessels

Crowded Field

More OSVs are expected to enter an already saturated market.

By Ken Hocke, Senior Editor

here’s no way to candy-coat it. For the Gulf of Mexico offshore supply vessel industry, it’s a minefield. Utilization and day rates are down, OSV availability is high, competition is intense and opportunities are limited. That was the message Richard Sanchez, marine analyst, IHS Petrodata, delivered in Houston in April at the WorkBoat Professional Series: Outlook for the OSV Industry. The “oil industry is cyclical, oil companies are planning for two to three years of low oil prices,” he said, adding that operators are cutting costs, rig activity continues to soften, and shallow-water drilling is at an historic low. HARSH REALITY According to IHS Petrodata, which gets most of its information directly from vessel owners, charterers, shipyards and brokers, there were 356

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platform supply boats in the U.S. Gulf fleet at the end of March. Of those, 209 PSVs were on long-term charter, with only 59% of those actually working. Sixty-five were in the spot market and 75 were either in the shipyard or stacked. A total of 31 new OSVs will be delivered by the end of 2015. In addition, another 18 are scheduled for delivery in 2016. The cyclical nature of the oil and gas industry in the Gulf is nothing new, and those who make a living in the market must “learn to navigate the troughs as easily as you ride the peaks,” said Sanchez. Companies that don’t save enough during the good times suffer the most when the market goes south. And those who are not ready when the market rebounds will be left behind. Not everyone sees an oversupply that could last for years. On the other hand, the rebound might be gradual, rather than an immediate return to $100

Bordelon Marine

Bordelon Marine’s new 260-class ultra-light intervention vessel is more specialized than other OSVs.

www.workboat.com • MAY 2015 • WorkBoat

4/7/15 5:04 PM

Gulf Island Marine Fabricators

bbl. oil. Dave Pursell, Tudor, Pickering, Holt & Co., said at an industry breakfast earlier this year that his energy investment bank sees a return to around $85 bbl. in the first quarter of 2016. Barclays’ Michael Cohen told his clients in late January that an oil price recovery is possible by next year. “We expect to see further downside to prices in the next few months, with both WTI (West Texas Intermediate) and Brent likely to trade in the high $30s before the oil price decline is arrested.” SERVICE DEMAND It’s more important than ever that OSV companies give the oil companies what they need. The multiple-boat contracts of a few years ago have given away to specialty vessel builds. Bordelon Marine Shipbuilders delivered a Stingray-series 260-class ultra-light intervention vessel to its parent company, Bordelon Marine, in

The 220' Cape Horn has the capability to use an inert gas blanketing system for added safety.

March. The 257'×52'×18', DP-2 Shelia Bordelon was initially designed to be a PSV like the first in the Stingray series, the Connor Bordelon, which was delivered in 2013. “The boat was supposed to be a PSV like the Connor, but we saw a need for the ultra-light intervention vessel, so we made the change,” said James Schureck, Bordelon’s vice president, business development. “That’s the luxury of having your own shipyard, one that builds exclusively for you.” The 3,285-dwt Shelia Bordelon,

which is named for a two-time cancer survivor and sports a long pink stripe on its hull, has a 143'×44' (123'×44' clear) rear cargo deck capable of housing two work-class ROVs. On deck is a 50-ton NOV active heavecompensating crane with 3,000 meters of wire that can launch and recover the ROVs. Inside is an internal ROV office and control room. “That’s what our customers are saying they need,” said Schureck. He said the Connor Bordelon “is doing well, and we expect that to

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Offshore Supply Vessels offshore facilities. The OSVs that have come out of shipyards over the last 12 months are some of the most advanced, technologically and otherwise, offshore vessels ever built in the U.S.

continue.” Meanwhile the third PSV in the series, the Brandon Bordelon, is under construction in Houma, La. After that “we’ll see where the market is,” Schureck said. ADVANCED DESIGNS The majority of oil companies still want the best equipment available, though at lower rates, to work their

Harvey Gulf International Marine

Ken Hocke

The Ram Nation’s engines are located on the main deck instead of down below.

The Harvey Energy, the first dual-fuel OSV in the Gulf of Mexico.

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Offshore Supply Vessels engine, generator, propeller and thruster is independently controlled, which provides greater flexibility. • The Breeze, a 252'×60'×25.7', DP-2 OSV for New Orleans-based Jackson Offshore Operators, The enclosed bow of the Breeze helps create a dry was delivered by BAE Sysworking compartment forward for the deckhands tems Southeast Shipyard, without changing the hull design. Jacksonville, Fla., in September. One of its most striking features is its bow design, which flares first vessels in the new company’s out before reversing direction towards fleet. Though smaller than many of the the wheelhouse and wrapping around new OSVs built for other operators, behind it. The enclosed bow helps crethe Cape Horn can carry up to 4,600 ate a dry working compartment forward bbls. of production chemicals in stainfor the deckhands without changing the less steel tanks below deck. Seamar hull design. The second of four 252' President Donald Plaisance said that OSVs for Jackson Offshore from BAE, the bigger OSVs have more overhead the Thunder, was delivered in March. expenses but similar capacities. His • The Cape Horn is the first of two new vessels also have the capability to 220'×48'×16' deepwater/ultradeepwater use an inert gas blanketing system for production support vessels for Seamar, certain liquid cargoes, increasing safety Lafayette, La. The new boats are the when carrying flammable cargo. Jackson Offshore Operators

• The Ram Nation is a 270'×56'×21'6", DP-2 OSV — the first of two from Leevac Shipyards, Jennings, La., for Aries Marine, Lafayette, La. Capacities include 261,400 gals. of fuel oil; 426,300 gals. drill water; 12,580 bbls. liquid mud; and 8,490 cu. ft. bulk mud. Main propulsion comes from four 3516C Caterpillar generators, producing 1,825 kW of electrical power each. Propulsion is provided by a pair of Schottel 2,500kW SRP 2020 SP, 4-bladed, 106"-dia. Z-drives and a pair of 1,180-kW Schottel tunnel thrusters forward. The main engines are located on the main deck instead of down below to facilitate installation and to provide additional tank farm capacity. The diesel-electric propulsion package is part of the Siemens BlueDrive PlusC integrated electrical system, which ties together and automates the vessels’ power management, engine controls, machinery, alarms and auxiliary power. Each

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4/7/15 10:01 AM

CONSTRUCTION ACTIVITY AT WORKBOAT YARDS

On TheWays

ON THE WAYS Bisso Towboat

Fifth ASD tug for Bisso from Main Iron

Compiled and edited by Bruce Buls, Technical Editor

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uling, La.-based Bisso Towboat Co. Inc. has taken delivery of a new 4,480-hp ASD shipassist tug from Main Iron Works, Houma, La. The new tug, the 100'×38'×13'6" Becky S., has the same design as the previous four azimuthing stern-drive tugs Main Iron has constructed for Bisso in the last 17 years. All five tugs are built to a Bisso-Main Iron design. The Becky S. has a little more horsepower than its sister tugs — 4,480 hp versus 4,000 hp — with the power coming from a pair of Tier 3 Caterpillar 3515T3MPL main engines (compared with the other tugs' Tier 2 Cats) that each produce 2,240 hp at 1,600 rpm. The engines drive two Rolls-Royce US 205 FP Z-drives with 90.6"×82.4", 4-bladed stainlesssteel propellers set in nozzles. The package gives the tug a speed of 12 knots. The bollard pull is an estimated 60 tons. Ship’s service power is provided by two 99kW Marathon generators powered by John Deere 4045AFM85 Tier 3 engines. The tug is equipped with a JonRie InterTech Series 230 hydraulic bow winch with 500'

The Becky S. features a JonRie InterTech hydraulic bow winch equipped with 500' of 8"-circumference Saturn-12 line.

David Krapf

Bisso Towboat recently took delivery of its fifth ASD tug from Main Iron Works.

of 8"-circumference Saturn-12 line from Samson. The tug also features Coast Guard-approved engine room monitoring and fire/smoke alarm systems, Simrad navigation/electronics, soundproof insulation throughout the engine room and crew quarters, stainless-steel bitts and bow staple, and four staterooms with seven berths. Tankage includes capacities for 30,163 gals. of diesel fuel, 1,826 gals. each of lube and hydraulic oil and 10,938 gals. of potable water. The Becky S. is the fifth ASD tractor tug and ninth new tug built for Bisso by Main Iron in the last 23 years. The new tug gives Bisso a fleet of 12 tugs that handle ship-assist duties involving mostly tankers, bulk carriers and tug-and-barge units on the Lower Mississippi River. With the delivery of the Cecilia B. Slatten in 1999, Bisso became the first company to introduce ASD tractor tugs to the Mississippi River. www.workboat.com • MAY 2015 • WorkBoat

4/8/15 2:18 PM

Bordelon delivers ultra-light intervention vessel

ordelon Marine Shipbuilders has delivered a Stingray-series 260-class ultra-light intervention vessel to its parent company, Bordelon Marine Inc. A christening ceremony was held at the Houma, La., shipyard in March. Well intervention usually deals with entering a well for reasons other than drilling, including managing well production. The 257'×52'×18', DP-2 Shelia Bordelon was initially designed by Bordelon to be a platform supply vessel. “The boat was supposed to be a PSV like the Connor, but we saw a need for the ultra-light intervention vessel, so we made the change,” said James Schureck, Bordelon’s vice president, business development. “That’s the luxury of having your own shipyard, one that builds exclusively for you.” The Connor Bordelon, the first of the Stingray series, was delivered in 2013. The Shelia Bordelon is named for Shelia Harasimowicz, the mother-inwww.workboat.com • MAY 2015 • WorkBoat

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Bordelon Marine

The first four Main Iron-built sister tugs are nearly identical. The second 100'×38'×13', 4,000-hp ASD tug, the Alma S., was delivered in 2006, the third, the Michael S., was delivered in 2009, and the William S. was built in 2012. The only difference between the Alma and the Cecilia were a few minor equipment changes and adjustments related to crew comfort, and the only major difference between the Michael S. and its sister tugs is the power. “The new tug is slightly different. Besides the increased horsepower of the mains, we added a ‘mud’ room aft of the galley, redesigned the engine room stairs (they now run stern to bow and enter from the mud room as opposed to galley), added a half bath aft of the galley, and changed the bow winch from Markey to JonRie,” said Scott Slatten, Bisso’s president. Bisso is negotiating with Main Iron to build a sixth ASD tug at the Houma shipyard. — David Krapf

New 260-class intervention vessel for Bordelon Marine.

law of company president and CEO, Wes Bordelon. She is a two-time cancer survivor. “For 35 years, we’ve named our boats after family members, and this one is no different,” Bordelon told the crowd. The boat boasts a long pink stripe along the vessel’s hull in support of the fight against breast cancer. “It brings awareness to a great cause. We’ve partnered with the Susan G. Komen foundation. Bordelon will contribute a portion of the proceeds from the vessel to the Komen foundation.” The contributions will continue for at least a year. The 3,285-dwt Shelia Bordelon has a 143'×44' (123'×44' clear) rear cargo deck capable of housing two workclass ROVs that will be launched and recovered by a 50-ton NOV active heave-compensating crane with 3,000 meters of wire. An ROV office/control center is inside the house. Capacities include 144,000 gals. of fuel; 250,000 gals. drill water; 23,000 gals. potable water; 3,200 bbls. liquid mud; and 4,000 cu. ft. dry bulk. Delivery rates are: fuel oil, 850 gpm at 200'; drill water, 850 gpm at 200'; potable water, 850 gpm at 200'; and liquid mud, 1,500 gpm at 200'. Twin Tier 3 Cummins QSK60-M diesel engines, producing 2,200 hp each, provide the boat’s main propulsion power. The mains are directly connected to Schottel 1215 Z-drives. The package gives the Shelia Bordelon

a service speed of 12 knots and a top speed of 14 knots. The boat is also fixed with a Schottel STT2 FP 950-hp bowthruster. Ship’s service power is generated by two Cummins QSK38 Tier 3 gensets, each 975 kW. Service power for the ROVs comes from two Cummins QSK19 Tier 3 gensets, producing 525 kW of electrical power each. Power for the NOV crane comes from two dedicated 975-kw Cummins QSK38 Tier 3 gensets. The DP-2 system from Marine Technologies also includes bridge integration and full navigation suite, radar/ECDIS/Doppler, VSAT Comm RAACI Full Automation and power management alarm and monitoring with paging, satellite TV and camera systems. The boat’s firefighting and deluge system is certified FiFi 1. The Shelia Bordelon is ABS Maltese Cross A1, AMS, DPS-2 ACCU, FiFi 1, SOLAS, USCG-certified Subchapters L and I. — Ken Hocke

New fiberglass research vessel for New Jersey

aine has had more than its share of snowy days this year and March 3 was typically white when the Petrel rolled out of the boatshop at SW Boatworks in Lamoine, Maine. The fiberglass 36'×13'9" boat was loaded on a long-distance trailer and towed to Galloway, N.J., and Stockton 39

4/8/15 2:17 PM

On TheWays

BOATBUILDING BITTS

Eastern will resume construction of the Magdalen, a trailing suction hopper dredger.

Gladding-Hearn to build three more sightseeing vessels for Circle Line in New York.

Gladding-Hearn Shipbuilding

n late March, Eastern Shipbuilding Group, Panama City, Fla., signed a contract with Weeks Marine Inc., Cranford, N.J., to complete construction of the Magdalen, a 356' trailing suction hopper dredger. Initially, the vessel was to be built by BAE Systems Southeast Shipyard, Mobile, Ala., where the keel was laid in 2012. The new schedule calls for delivery in 2017. Dredge Technology Corporation (DTC), a member of the IHC Merwede International Group, is providing the design

Eastern Shipbuilding Group

and detailed engineering. Gladding-Hearn Shipbuilding, Duclos Corporation, Somerset, Mass., has started construction on the first of three new 600-passenger sightseeing vessels for Circle Line Sightseeing Cruises Inc. in New York. The new order follows the shipyard’s delivery of three sisterships for Circle Line in 2009. Delivery of the first new vessel is scheduled for 2016. Like the previous Circle Line vessels, the new 165'×34' all-steel vessel was

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www.workboat.com • MAY 2015 • WorkBoat

4/8/15 2:19 PM

Société des traversiers du Québec

designed by DeJong and Lebet, Jacksonville, Fla. The vessel will be powered by twin Cummins QSK-38M1 diesel engines, delivering a total of 2,600 hp, connected to ZF W3355 gear boxes, spinning 60", 5-bladed bronze propellers. Interior accommodations include seating and tables for 275 passengers in the main cabin. The second deck will have inside seating and tables for another 150 passengers, plus reserved seating for up to 50 VIP pas-

The F.A. Gauthier will be the first LNG-powered North American ferry. The vessel was built in Italy.

sengers and outdoor seating for 88 passengers. Aft of the pilothouse on the third deck will be outdoor seating for 84 passengers under a fixed canopy. The cabins are arranged for significantly improved concession areas, cocktail bars and wheelchair-accessible heads. Heating and air-conditioning will be supplied by a 210,000-btu diesel-fired boiler and six 10-ton water-cooled chillers. Construction has begun on the first North Americanbuilt LNG-powered ferries at the Chantier Davie Canada shipyard in Lévis, Quebec. The two 302' dualfuel ferries will be owned and operated by Quebec’s STQ (Société des traversiers du Québec). Each ferry will accommodate up to 110 vehicles in eight lanes on two decks. Wärtsilä is providing four dual-fuel engines and LNG tanks for each boat. STQ was also scheduled in April to receive the F.A. Gauthier, a 436' vessel built by Fincantieri in Naples, Italy. Dual-fuel engines from Wärtsilä also power it. The F.A. Gauthier will carry up to 800 passengers and 180 vehicles and is the first LNGpowered ferry to be built in Italy, as well as the first to operate in North America.

www.martyranodes.com sales@martyranodes.com www.workboat.com • MAY 2015 • WorkBoat

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On TheWays The multibeam sonar will mount on either side of the wheelhouse. “It can be bolted to the washboards, which were reinforced with knees,” said Stewart Workman, the boatyard’s owner. “We reinforced the fiberglass coaming as well.” Balancing all the needs of the school’s marine science program in a 36' boat required some adjustments. “We wanted a reasonable deck area,” said Evert, “but also wanted reasonable interior area for computer work.” Thus the house was moved forward 20" and 4' was added to the back. That provided a 9'-long wheelhouse and 14' of open deck. In the wheelhouse, or salon as it’s also called, there’s a standup counter area “where three or four people can work computers,” said Workman. “There’s also seating for when they are cruising.” SW Boatworks

University. The Petrel, a Calvin Beal design, will be the research boat in the university’s marine science program, after the boat’s final outfitting is completed at Jersey Cape Custom Yachts in Lower Bank, N.J. “We’re a small undergraduate program, so this is a pretty big acquisition for us,” said Steve Evert, assistant director of marine sciences at Stockton University. The Petrel replaces a 28-footer. With an A-frame gantry set up over the open transom and a Pullmaster PL-5 winch mounted just behind the deckhouse, the Petrel will tow seafloor instruments for measuring current and water quality, according to Evert. The Petrel will also use underwater surveying equipment, such as a side-scan and a multibeam sonar, and remotely operated vehicles for depth measuring, habitat and shipwreck mapping.

New 36'x13'9" Calvin Beal design for Stockton University in New Jersey.

Gear storage areas are located below deck, and on each side of a 400-gal. fiberglass fuel tank. The Petrel has a solid fiberglass hull with a deck made up of ¾" Coosa Composites Bluewater 26, a high-density polyurethane foam that’s covered with three layers of fiberglass. The wheelhouse is cored with ¾" Divinycell on the sides and 1" on top. A 550-hp Cummins QSC 8.3 diesel and a Twin Disc marine gear with 2:1 reduction ratio provide propulsion power. The Petrel will operate out of Little Egg Inlet, which is just north of Atlantic City, N.J. — Michael Crowley

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www.workboat.com • MAY 2015 • WorkBoat

4/8/15 2:23 PM

EASTERN SHIPBUILDING GROUP, INC.

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REPAIRS

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CONVERSIONS 3/29/2015 4/7/15 9:19:44 10:01 PMAM

Down Time

The deepwater Gulf is finally starting to feel some pressure from low oil prices.

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BHP Billiton Petroleum

The U.S. Gulf offshore market continues to struggle.

4/13/15 1:45 PM

By Bill Pike, Correspondent

Chevron

t this time last year, the oil and gas industry was still bullish on the Gulf of Mexico, especially the deepwater market. No longer. The current low oil price environment has resulted in reduced activity levels, mergers and acquisitions, bankruptcies, and falling utilization and day rates in the offshore service vessel market. There has been a ton of speculation about where prices are going and when we’ll again see higher oil and gas prices. Analysts are all over the board. They’re predicting that prices could tumble to $20 bbl. or rise to $100 bbl. in the third quarter, sometime next year, or maybe never. However, as Dan Doyle wrote in OilPrice.com in April, “a solid $65 to $70 by year end is the more reasonable number and is just enough to hold off development of some offshore projects, oil sands work and a good amount of the non-core shale plays.” For the OSV market in the Gulf, the glut of vessels is compounding the problem, and with over 30 newbuilds scheduled to enter the market in the next couple of years, it will likely get worse. In this scenario, two things are evident. First, panic is not far away. Second, after a period of “wait and see,” adjustments for the current depressed market conditions are now well underway. The biggest questions are whether these adjustments are in time and if they are enough. Depending on if an operator is in the shelf or deepwater market, the answers vary considerably. For the shelf, the implications of low oil and gas prices are large. For deepwater, big investments in expensive infrastructures and hard, performance-based leases make responses to low oil and gas prices much more moderate, at least in the short term. VESSEL OVERSUPPLY The U.S. Energy Information Administration (EIA) estimates that spending on offshore exploration and production during the fourth quarter was down

www.workboat.com • MAY 2015 • WorkBoat

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Chevron’s Big Foot semisubmersible set sail to work in the deepwater market in mid-March. As operations tighten, even in deepwater, this sight will likely become less common.

12% year-on-year. Most blame low oil prices for the market downturn. While the price of oil has driven the general offshore market south, if you talk to vessel owners and market analysts a new theme emerges — overbuilding. Pete Romero, operations manager at Aries Marine Corp., a Lafayette, La.-based OSV and liftboat operator, summed it up. “The biggest problem is that there are just too many boats in the Gulf.” Matt Rigdon, chief operating officer for Jackson Offshore Operators, echoed Romero. “There are just too many boats in the market.” It’s a common theme heard from industry insiders who look at the 30-plus high-specification vessels still under construction with alarm. That’s because these vessels will only exacerbate the oversupply problem in the Gulf. Also, several OSV operators/owners are heavily leveraged as a result of the newbuilds, carrying significant debt in a deteriorating market. That debt is generating a strong emphasis on cash flow, as opposed to investment, according to one industry analyst. Most industry pundits view the combination of robust cash flow and low debt as the only way to weather the storm. But is that possible in this market? Industry analysts point to the 30% cost reductions pushed by oil and gas operators as the key factor in the deterioration of utilization and day rates. In shelf waters, the rates are especially bad with utilization running in the 40% to 55% range for smaller vessels, according to IHS Petrodata’s Richard

Sanchez. Day rates have suffered as well, standing at less than $3,000 a day for smaller OSVs, according to Rigdon. That price is breakeven, at best. As a result, a good portion of the 145' to 170', DP-1 OSV fleet has left the Gulf of Mexico or been coldstacked or scrapped. Things look a little better in the deepwater market, with day rates hovering in the $27,000 to $30,000 range. Utilization is also better in the larger boat market, running in the 84% to 93% range for newer vessels, Sanchez said. Here, term contracts and liquidity is key. But not everyone has that. As a result, Romero said some of the newbuilds coming into the Gulf market will be stacked and others will be repositioned to other markets. It’s an ugly picture, made more so by the fact that no one knows how long they will have to wait it out. With the additional supply of OSVs about to hit the market (so far, there have been no construction cancellations), industry analyst Allen Brooks of PPHB LP is pragmatic. “The first wave of the downturn looks extreme, but it is not sufficient,” he said. Brooks guesses that another downturn that will follow this one is in the works. The solution, he suggested, may be to fundamentally restructure the industry. MEDIOCRE LEASE SALE With the price of oil (WTI) just above $51 bbl. on April 10 and considerable downside potential remaining, one might question the efficacy of holding a lease sale in the U.S. Gulf. 45

4/13/15 2:09 PM

Montco Offshore

Lease Sale 235 for the Central Gulf of Mexico was held in New Orleans on March 18. Part of the 2012–2017 Outer Continental Shelf leasing program that has already offered 60 million acres in six previous sales, up for grabs in the sale was 41.2 million acres offshore Louisiana, Mississippi and Alabama estimated to contain up to 890 million bbls. of producible oil and 3.9 trillion cu. ft. of producible gas. The sale generated over $538 million in high bids from 42 companies on 162 tracts, the worst lease sale figures in nearly 30 years. Approximately two thirds of the blocks offered were in deepwater and ultradeepwater. Overall, the sale was disappointing. But the prospect of picking up some prime acreage at bargain prices was attractive to those with deep pocketbooks and good staying power, majors such as Shell, Chevron, Exxon and Statoil. “We are extremely pleased with the lease sale results, which extend Shell’s

BALLAST

Drone photo of the Jill, Montco Offshore’s new 335'-leg liftboat, primarily used for decommissioning.

existing acreage in our core exploration areas,” Mark Shuster, Shell’s executive vice president exploration, upstream Americas, said in a statement after the sale. “These new leases further upgrade our prospect portfolio and will enable a continued strong resource delivery program in our Gulf of Mexico heartland.”

VESSEL DRAFT

FUELS

The 17 blocks awarded to Shell include Mississippi Canyon Block 896 and Walker Ridge Block 375, which will “strengthen Shell’s current portfolio of near-term exploration drill sites with core Miocene and Paleogene plays,” Shuster said. Chevron Chairman and CEO John

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4/13/15 1:45 PM

NEW PLAYERS IN THE GULF EMERGE

ver the past several years, business conglomerates and startups funded by equity firms have had a significant impact in the Gulf of Mexico. Chief among these is Houston-based Fieldwood Energy LLC, which became the largest asset holder on the shelf through a number of acquisitions. Fieldwood, which is focused on the acquisition and development of conventional oil and gas assets in North America, including the Gulf of Mexico, picked up key tracts formerly owned by Apache Corp.’s Gulf Outer Continental Shelf business (for $3.75 billion), SandRidge Energy, and Dynamic Offshore Resources (created by energy private equity firm Riverstone Holdings and global private equity firm The Carlyle Group in 2008 with a $450 million investment). Fieldwood Energy has also acquired assets in deepwater Gulf fields. At today’s oil and gas prices, it is not clear if Fieldwood’s aggressive acquisition strategy will continue. A new player also emerged in the deepwater Gulf and has now become a major player with four recent, significant discoveries. Venari Resources LLC, a privately held offshore exploration and production company founded by deepwater E&P expert Brian Reinsborough, is focused on the prolific oil-prone subsalt region in the deepwater Gulf. Since its formation in 2012, global investment

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firms led by Warburg Pincus, Kelso & Company, Temasek and The Jordan Company have committed $2.4 billion of capital to Venari’s exploration program and development projects. Venari has built a large inventory of drillable prospects and leases in the Gulf of Mexico including the potentially giant Shenandoah discovery in the Walker Ridge area and the recently announced Guadalupe discovery. Venari has employed a strategy of partnering with well-established oil and gas companies, illustrated by its Anchor discovery. “Anchor is an exceptional discovery in the Lower Tertiary play demonstrating the vast potential of this region of the Gulf,” said Reinsborough. The well, spudded in August 2014 and drilled in 5,183' of water to a total depth of 33,749', encountered significant high quality oil pay in multiple Lower Tertiary Wilcox Sands. The discovery is located approximately 140 miles off the Louisiana coast. Venari holds a 12.5% working interest in Anchor. Co-owners are Chevron as operator, Cobalt International Energy LP and Samson Offshore Anchor LLC. Appraisal drilling will commence this year. “I am very proud of what our team has accomplished in the short two and a half years since our formation. We continue to be excited by the prospects in the deepwater Gulf of Mexico as we build our business into an industry leader,” said Reinsborough. — B. Pike

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Watson echoed Shuster. “We are going to continue to explore,” he said. “We had fabulous success, particularly towards the end of 2014, in the Gulf of Mexico.” Among other things, Watson was referring to two significant discoveries Chevron made last year. But despite Watson’s statement, the chance of further discoveries has been reduced as the big players are now more focused on developing existing, defined assets rather than engaging in

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major exploratory programs SHELF DOWN Prospects for the shelf look depressed at best. The first shelf well was drilled nearly 70 years ago, meaning much of the Gulf infrastructure is near or past the end of its design life. The current low oil prices are affecting the aging shelf as prices fail to support development of smaller assets. A number of rigs have left the

market. One of the hardest hit has been Hercules Offshore, the Houston-based operator of jackup rigs. The company has 24 jackups in the Gulf of Mexico. In the first quarter, to reduce expenses, the company took aggressive action that included the coldstacking of five additional domestic rigs. The decision was “based on market demand as well as timing of the rig’s five-year special surveys,” said John Rynd, the company’s president and CEO. As of March 23, 15 of the company’s 24 U.S. Gulf jackups were in coldstack. Another three were warmstacked with reduced crews and six were working. Rynd’s expectation in 2015 is “that demand for jackup rigs in the U.S. is unlikely to improve much from the current levels.” In deepwater, activity levels have been sustained by significant investment and stringent performance provisions contained in the leases. Many high-specification deepwater rigs remain on longer term contracts, which should be enough to carry rig utilization rates in deepwater over the short term. However, over the medium to long term, deepwater production is predicted to hit a peak of about 1.9 million bpd. as production on Chevron’s Jack/St. Malo project ramps up and the Heidelberg field comes online, before reaching a plateau in 2016. From there, industry analysts at Wood Mackenzie predict that production will remain stagnant for the rest of the decade due to the limited number of fields coming on stream and a reduction in exploration driven by budget cuts. Given the cost per barrel of deepwater exploration and development compared to shale, there is little incentive to increase deepwater E&P at today’s prices. As drilling slows, so does infrastructure work. Nearly 2,900 platforms reside on the shelf, and many of these are at or beyond their design life and in need of maintenance and upgrades. Of those, 270 are totally inactive and classed by the Department of the Interior as “idle iron.” These facilities are subject to mandatory removal by the DOI’s Bureau of Safety and Environwww.workboat.com • MAY 2015 • WorkBoat

4/13/15 2:01 PM

State of the Market: Overview of GOM Deepwater Decommissioning, February 2015. Source: TSB Offshore Inc.

mental Enforcement. A BSEE Notice to Lessees and Operators (NTL) published in 2010 states that any platform that became “idle” or not useful for lease operations subsequent to the NTL is expected to be decommissioned no later than five years after the platform became idle. The mandatory decommissioning and

removal program peaked in 20122013 with the removal of more than 500 platforms on the shallow shelf. In deeper water, 110 fixed, tensioned, and moored structures have been installed in the Gulf of Mexico in water depths greater than 400'. Through 2014, 16 structures have been decommissioned and removed. The current inventory of idle iron (as of Feb. 9) includes 1,010 total idle wells (261 newly idle since the NTL)

and 270 total idle platforms (82 newly idle since the NTL). The mandatory decommissioning and abandonment program has created an uptick in vessel activity in the Gulf of Mexico and has resulted in some dedicated vessel utilization for shallow water removal, but overall it has not had a dramatic effect on OSV utilization and day rates. cmyk pms

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Harley Harbor Tug

Strong and Stable Harley’s newest harbor tug has more power and bollard pull.

At 80'x36' with over 5,000 hp, the Michelle Sloan is a Ramparts 2500 design from Robert Allan Ltd. Story and photos by Bruce Buls, Technical Editor

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ack in 1987, when Harley Franco first ventured into the marine transportation business, he had one leased tug and one leased barge in Puget Sound. Today, Franco has a gorgeous new LEED-certified “world headquarters” in Seattle and branches on all three coasts as Harley Marine Services continues to break into markets dominated by older, larger and more established maritime companies. With a concentration on bunkering and petroleum transportation, ocean towing and tanker-escort/ship-assist, HMS owns and operates an expanding fleet of tugs and barges. In the last few years, HMS has added several new ASD tugs (Robert Franco, Bob Franco, Ahbra Franco) to its fleet and this year took delivery of its first ATB tanker — the 83,800-bbl.

Dr. Robert J. Beall pushed by the 116', 4,000-hp Emery Zidell. The newest star of the fleet, the Michelle Sloan, is a powerful harbor tug named after a close family friend who recently died from breast cancer. Measuring 80'×36', the tug was designed by Robert Allan Ltd. in British Columbia and is a modified version of two tugs designed for HMS by RAL about 10 years ago and built by Diversified Marine Industries in Portland, Ore. They are the 76'×32', 3,800-hp Tim Quigg and John Quigg. Called an “enhanced” Ramparts 2500 design, the Michelle Sloan packs 40% more horsepower and 25% more bollard pull than the Quigg tugs. Diversified Marine built the new tug and its sister, the Lela Franco, is still under construction. At the Michelle Sloan’s dedication in late www.workboat.com • MAY 2015 • WorkBoat

4/9/15 3:11 PM

March, Franco characterized the new tug as “the most state-of-the-art, best performing, high-performance vessel on the planet,” and like its namesake, “she will be bringing beauty, power, style and grace to the port of Los Angeles.” The new harbor tugs are powered by pairs of Caterpillar 3516Cs, each rated at 2,575 hp for a total of 5,150 hp. Bollard pull ahead is estimated at 68 tons and astern at 65 tons. “The Quigg tugs as they became known, derived from what we call our Ramparts-class tugs,” said RAL President Ken Harford. “They’re able to operate with a winch at the bow or at the stern. It’s been a decade since the first Quiggs were commissioned, and the demand for powerful tugs to work in small harbors with bigger ships has increased but the working space for the tug hasn’t.” Harford also said that adding all that additional power required making the tug more stable by increasing the beam from 32' to 36'. “The increased beam, much to the chagrin of the shipyard, also allowed for increased accommodations spaces,” Harford said. “And these more spacious features are sure to be appreciated by the crew.” Another change to the enhanced version of the RAL design is the modified skeg. While the Tim Quigg and John

The Michelle Sloan has Markey hawser winches both fore and aft. The heat pumps are located between the stacks.

Quigg have larger, escort-style skegs for seldom-used indirect towing, the Michelle Sloan has a smaller skeg that reduces the drag when moving sideways, said Josiah “Si” Layfield, the captain of the Michelle Sloan. “This is a great handling ship-assist tug,” said Layfield. “The smaller skeg slides sideways much more easily.” Jim Hyslop, project manager at RAL, said the skeg on the Sloan is not much different from those on the Quigg boats. The biggest difference, he said, is the added power and higher bollard

pull. He said the structure was also beefed up. Because the new tug will be doing a lot of ship-assist and towing on the hip, it has hawser winches on both the bow and the stern. Both are electric, and both are from Markey Machinery in Seattle. The bow winch is a DE PCF-48 with 600' of 8" Spectra line (400,000-lb. breaking strength), and the stern winch is a DEPC-32 with 250' of 6" Spectra line (200,000-lb. breaking strength).

A pair of Cat 3516Cs provides main power, and service power is generated by two 125-kW Marathon generators paired up with John Deere engines.

Si Layfield is one of two captains who will regularly operate the new tug in Los Angeles/Long Beach.

www.workboat.com • MAY 2015 • WorkBoat

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4/9/15 3:10 PM

Harley Harbor Tug

MICHELLE SLOAN

HEAT PUMPS An energy-saving innovation incorporated into the new tug is the ductless heating and cooling system. It includes a pair of Daikin heat pumps mounted between the exhaust stacks on the aft side of the pilothouse. Using a refrigerant vapor cycle, ductless systems collect heat from outside and deliver it inside on the heating cycle. In the cooling mode, the system collects heat from inside and moves it outside. The Daikin system uses variable speed compressors with inverter technology (AC to DC) to continuously match the heating or cooling load for increased efficiency, especially compared to conventional electric resistance heating.

SPECIFICATIONS

Builder: Diversified Marine Industries Designer: Robert Allan Ltd. Owner: Harley Marine Services Mission: Ship assist, tanker escort, barge towing Length: 80' Beam: 36' Depth (molded): 16'8" Draft: 14'6" Main Propulsion: (2) Caterpillar 3516C (B rated), Tier 3, 2,575 hp @ 1,600 rpm Bollard Pull (estimated): Ahead, 68 tons; astern, 65 tons Z-Drives: (2) Rolls-Royce US 205 FP Propellers: (2) 4-bladed, nibral, skewed, 2,400 mm (94") Ship’s Service Power: (2) Marathon/John Deere, 125 kW Speed (knots): 14 (top) Accommodations: 6 in 3 staterooms Capacities: Fuel, 30,000 gals.; fresh water, 2,800 gals.; lube oil, 370 gals.

Winch: Markey bow winch, DEPC-48, with 600' of 8" Spectra (400,000-lb. breaking strength); Markey stern winch, DEPC32, with 250' of 6" Spectra (200,000-lb. breaking strength) Fendering: Shibata cylindrical rubber, 36'; Schuyler looped rubber; tires Delivery Date: March 2015 Interior heating and cooling are both provided by a ductless heat pump system.

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www.workboat.com • MAY 2015 • WorkBoat

4/13/15 1:34 PM

The heat pumps on the Michelle Sloan are modified units for onboard use. “Normally we have to put special coatings on the condenser/evaporator coils to prevent pinholes and corrosion,” said John Walls, director of mechanical systems technology for Harley. “And we often put vibration isolators under them, too,” noting that this system has been used on several other HMS tugs. He also said that the system on the Michelle Sloan includes a backup electric-resistance heater if the outside temperature is too cold. But in Southern California, where the new tug will be working, the biggest concern is having enough cooling inside. “A lot of tugs up here [in Seattle] get built for Alaska, so they’ve got heaters everywhere,” said Layfield. “Down in L.A., we need cooling and sometimes all we have are little fans. This boat has great cooling.” Building the new tugs is somewhat

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similar to the construction of the Quigg boats, but also different, said Kurt Redd, CEO at Diversified Marine. “We knew the new tugs would be slightly longer and wider, but we didn’t know that the whole house would also be The Lela Franco, an identical sistership, bigger and wider. is under construction at Diversified They told us that Marine in Portland, Ore. there would be only 10 changes. It was probably more like 50, but the after his wife, Lela. end result is something that we can all “The Michelle Sloan is a stiff, strong, be proud of.” compact, stable and green tug,” said Harley Franco is certainly proud of RAL’s Harford. “I’m sure these excelthe new tug and seized the opportunity lent qualities will serve the owners to name the first of its class after a and the crew well and make Michelle close family friend and its sistership proud.”

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4/9/15 3:10 PM

Fendering

Bump & Run

Whether rubber, air or wood, fendering is essential.

By Michael Crowley, Correspondent

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sed truck and aircraft tires make good tug bumpers when hung along the sides. But did you know that the folded rubber loops used on the bows and sterns are also made from used tires? Schuyler Companies, a fendering manufacturer in Broussard, La., and Woodinville, Wash., annually uses about 500,000 truck and bus tires that would otherwise go to landfills. Tires that have already logged thousands of miles on the nation’s roads and highways are brought to a Schuyler plant where the sidewalls are removed. Then 60- to 80-ton presses using dies matched to a specific type of fender punch laminates from the now recycled rubber. Laminates are threaded on to rods and compressed, making a fender destined for mounting on a tug.

Those big, heavy looking molded bow fenders on tugs “use longer strips of rubber tread, up to 10' feet long — the total circumference of a tire,” said Schuyler’s Ben Beierle. “Then it’s threaded onto a framework.” There’s nothing lightweight about these bow fenders. For example, one on the Foss Maritime tractor tug Lynn Marie weighs 35,250 lbs. and is made up of 529 tires. Compared to something like extruded rubber, fendering made from recycled tires has several advantages, in addition to the environmental benefits. “The longevity is better,” said Beierle. “They are durable, don’t chip, don’t disintegrate, are very resistant to ozone depletion and not bothered by impact.” Basically the fendering can be worn down to

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Molded bow fenders on tugs use long strips of rubber tread, up to 10 feet long.

www.workboat.com • MAY 2015 • WorkBoat

4/8/15 9:49 AM

Coastal Timbers

the rods holding the laminates together. That’s its weakness — the rods. If the rods break the laminates will start to fall apart. The longest serving bow fender that Beierle is aware of was on a harbor tug in Everett, Wash. The bow fender was installed in 1982 and replaced last year. That’s 32 years of service. At the other end of the service life spectrum is fendering on 7,000-hp tractor tugs working at a mine in Alaska. “They are constantly working in 4' to 6' seas, having to make contact with loaded aggregate barges and push out of a shallow harbor,” Beierle said. The fendering is 26" thick, weighs 13,000 to 14,000 lbs., and has a life span of one to two years. It’s not the rubber that gives out, it’s the 1 1/2" rods holding the laminates together. “The problem is the severity of impact. They are coming right down on a swell, coming right into it. The impact is extreme, and the rods are just being pounded to the point they will snap,” Beierle said. WOOD FOR BARGES While rubber is standard on vessels worldwide, a good option for barge fendering is wood. Coastal Timbers, New Iberia, La., has constructed and installed wood fenders on thousands of barges that operate out of Louisiana and Texas. Rodney Girouard, the company’s sales executive, said the wood fenders cost less and are quicker and easier to install and replace. The fendering systems are generally creosote-treated pine or untreated oak. A barge fender is generally made up of 12"×12" timbers, aligned vertically along the side of the barge and bolted together from the sides with a long rod. Sizes vary, depending on the application. Last year, Coastal Timbers built one that was 8' wide and 60' long. The timber ends are notched to fit into an angle iron welded into the barge’s side, one at the top of the fender and one on the bottom. Girouard said it’s made up of two big pieces of 6"×6" angle iron, ½" to ¾" thick, that’s

www.workboat.com • MAY 2015 • WorkBoat

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Wood barge fenders can reduce the severity of an impact by deflecting it upward and away from the hull.

as wide as the fender. Though most of the fenders go on the sides of barges, he said timbers can be cut at an angle to fit a barge’s bow section “where it starts to taper.” Though Girouard noted that wood fendering doesn’t work well where there’s a lot of shape in the hull, he has run a single timber all the way around a tug’s hull. It was held in place with a C-channel. “It’s a rub rail, so to speak. Not a lot of calls for that.” Wood fenders also have the ability to reduce an impact’s severity by deflecting it upward and away from the hull. Not only is wood cheaper than rubber or vulcanized fenders (about two to three times), but there’s no problem getting wood suitable for fendering. “It’s a renewable resource,” said Girouard. “We deal with people who care about the land and timber crop. We’ve no trouble getting wood.” SMALL BOAT FENDERING For operating a relatively small, highly maneuverable boat, heavy molded rubber fendering or oak planks would destroy the boat’s performance. Something lightweight that’s able to absorb impacts and provide stability is the ticket. Air tubes are one option, but more durable is the air and foam combination collars offered by Wing Inflatables, Lafayette, Calif., and others. There are two options, though both use the same concept, which combines polyurethane fabric, air and foam. The basic air-foam combination has non-absorbent foam packed into air chambers.

The benefit is if the covering is pierced and there’s an air loss, then you “still have between 80% and 90% of flotation with the foam inserted into the air collar,” said Wing’s David Kelley. This design, he said, is good for boats originally built with air tubes, “but they want the redundancies and extra capability that foam gives it.” The other option is a hybrid collar that features an inflatable bladder between the hull and the foam. The hybrid is the most durable of the two types, said Kelley. It’s an especially good match with pilot boats as the foam and air bladder provide good shock mitigation, and the air bladder pushes the foam out to give the collar a strong form and shape. “It’s less apt to catch on the edge of something in boarding activities,” said Kelley. The foam used in the collars is closed-cell, mostly 2.2 lbs. per cu. ft., though depending on the boat’s size and application, it could be 1.8 lbs. up to 4 lbs. Closed-cell foam, as opposed to open-cell foam, doesn’t absorb water. Thus the boat shouldn’t pick up any extra weight. Kelley said open-cell foam has been used on 25' Coast Guard boats in Florida, and the boats have to be weighed regularly because “up to 300 pounds is absorbed in their collar system.” That’s 37.5 gals. of water. A benefit of the hybrid collar is that if any of the components break down, the entire system isn’t compromised. For example, if the bladder is punctured the foam is still there for buoyancy and protection.

4/8/15 9:50 AM

LOOKS BACK MAY 1965

• A bill that would require licensing officers on offshore service vessels, HR 7491, was introduced by Rep. Edward Garmatz, D-Md., chairman of the Coast Guard, Coast and Geodetic Survey, and Navigation Subcommittee. The bill calls for regulations to be issued that govern the licensing and certification of masters, pilots or other persons in charge of

the navigation of vessels “engaged in or intended to engage in the service of pulling, pushing, hauling alongside, or in the service of delivery of supplies or personnel to offshore structures or floating rigs working in or over the Continental Shelf.” • Halter Marine Services Inc., New Orleans, has begun construction on a series of high-speed, long-range, oceangoing crewboats that will range in size MAY 1975 from 96' to 120'. The

move to the larger crewboats was made to expedite personnel transportation from rigs located 50 to 100 miles offshore. The boats will be powered by twin 16V diesels that develop 1,000 hp to 1,200 hp. Speeds are expected to top 20 knots.

• Halter Marine Services Inc., when the tug is transiting from a drillNew Orleans, has delivered a new ing rig or lay barge in poor visibility. 150'×40'×22' offshore tug to Jackson The tug is powered by twin ALCO Marine Corp., Aransas Pass, Texas. 16V251 engines that produce a total of The Godfather was designed and built 7,400 hp. The vessel also has a Schotto operate in the North Sea and meet tel bowthruster powered by a Detroit the need for greater anchor-handling Diesel 8V-71. capacity. The tug can move 60,000-lb. anchors with 3" pennant lines. The vessel is reportedly the first to be outfitted with a radar set in its aft steering station, MAY 1985 which increases safety • The 17th Annual Offshore Technology Conference was held in Houston May 6-9. An estimated 60,000 people attended OTC. Over 2,000 exhibitors filled over 25 acres of the Astrodomain complex. • Harry N. Cook, president of the National Waterways Conference, said the Reagan administration wants to continue to shift higher inland, Great 72

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Lakes and deep-draft navigation costs to waterways users until the industry picks up 100% of the tab. “What is sorely needed right now,” Cook said, “is an enlightened hands-on federal policy in a partnership effort to maintain and modernize the transportation infrastructure.” Navigation programs are too important to the U.S. to be relegated totally to the private sector, he said. www.workboat.com • MAY 2015 • WorkBoat

4/13/15 12:10 PM

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PROPELLING

EXCELLENCE

Karl Senner, LLC would like to congratulate the delivery of the fourth and final vessel of this series, the M/V Brooke. Owner: Edison Chouest Offshore, LLC Builder: Bollinger Shipyard

Hull 591 M/V Ms Charlotte Hull 661 M/V Gemi Hull 592 M/V Renee Hull 662 M/V Brooke

KARL SENNER, LLC equipped these vessels with: (2x) REINTJES LAF 2346 Clutch-able Reduction Gearboxes With Clutch-able PTO for 1500kW generator and a Live PTO for the CPP Oil Pump (2x) Controllable Pitch Propellers (2x) Bow Thrusters (2x) Stern Thrusters

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

KarlSenner_WBMay15.indd 1

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

4/13/15 1:18 PM