WorkBoat May 2017 by WorkBoat

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MAY 2017

On Hold

The U.S. Gulf is still waiting for a rebound.

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ON THE COVER

MAY 2017 • VOLUME 74, NO. 5

The MPSV Harvey Sub-Sea at Eastern Shipbuilding. Photo by Ken Hocke

FEATURES 22 Vessel Report: Boat Blues With scores of OSVs stacked amid a depressed market, new offshore boat construction has dried up.

30 Cover Story: Road to Recovery Offshore service vessel operators say higher and stable oil prices are needed to jump-start a rebound.

BOATS & GEAR 26 On the Ways • Verret delivers 2,000-hp towboat to Blessey Marine Services • Moose Boats to build 75' crewboats for Westar Marine • Weeks Marine converts deck barge into caisson launch barge • 1,700-hp ATB tugs for Island Tug and Barge • Eastern launches hopper dredge for Weeks and signs contract to build three new ferries for New York’s Staten Island Ferry • VT Halter launches first of two 740' ConRo vessels for Crowley Maritime

36 Triple Play The Rotortug’s triangular propulsion enhances maneuverability.

40 Wireless Act Wireless connectivity is becoming more popular in the commercial marine market.

AT A GLANCE 8 8 9 10 11 12 14

On the Water: Digital charts — Part III. Captain’s Table: The importance of inland waterways transport. OSV Day Rates: Oil prices send mixed signals. WB Stock Index: Workboat stocks dip 20 points. Inland Insider: Foreign trade and the inland waterways. Insurance Watch: Too much information is good. Legal Talk: The jurisdiction issue.

NEWS LOG 16 16 16 17 19 19

Coast Guard averts big budget cut. Florida charter boat deaths draw Coast Guard attention. First Citywide Ferry catamaran arrives in New York. Waterways Council delivers inland infrastructure wish list to D.C. Coast Guard, passenger vessel industry voice illegal charter concerns. Customs ruling provides boost to U.S. offshore IMR vessels.

www.workboat.com • MAY 2017 • WorkBoat

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36 DEPARTMENTS 2 Editor’s Watch 6 Mail Bag 42 Port of Call 47 Advertisers Index 48 WB Looks Back

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Editor'sWatch

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A flicker of hope

t’s been three years since we first issued a warning concerning the U.S. Gulf. Back then, several majors announced that they would reduce capital expenditures. Most, however, thought that it was just a bump in the road, a “short-term softness” instead of a major slowdown. Well, we can safely say that it was the latter and more — a major depression in the offshore energy market. In his annual cover story (see page 30) on the offshore industry that coincides each year with the Offshore Technology Conference in Houston, Bill Pike’s report again contains no shortage of bad news. However, at least some operators are now offering a glimpse of hope, albeit a faint one. Stacey Stanley, president and CEO of crewboat operator Muchowich Offshore Oil Services in Clute, Texas, said she can see a light at the end of tunnel, “but it is just a flicker.” But Stanley and other crewboat operators have seen their fleets reduced in size. Offshore Oil Services had eight crewboats in its fleet, but the company sold two to boost cash reserves to weather the rough market. Nearly half of SeaTran Marine’s 19 crewboats are stacked, and another crewboat operator’s entire fleet of eight vessels is stacked. But Charlie Tizzard, SeaTran’s executive vice president and chief financial officer, is more optimistic than most. He believes that the market could begin to improve as early as next year due to the new administration’s commitment to the energy industry. Wes Bordelon of Bordelon Marine is somewhat positive about a recovery but it is still a long ways off. He

David Krapf, Editor in Chief

said the key to staying healthy in this depressed market is a reliable, sustainable budget for 2018, and a realigned industry rebuilt through mergers and consolidation. But others aren’t as bullish. Matthew Rigdon of PSV operator Jackson Offshore Operators said an increase in global oil demand is needed to stimulate the market. Without this, he doesn’t envision any boost in drilling in the Gulf. The bottom line is that there is still too many boats in the market. As Bordelon conceded, “There is just too much steel out there for the level of activity.”

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

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TRAINING THAT WORKS FOR YOU!

PUBLISHER

Jerry Fraser jfraser@divcom.com

EDITOR IN CHIEF

David Krapf dkrapf@divcom.com

SENIOR EDITOR

Ken Hocke khocke@divcom.com

ASSOCIATE EDITOR

Kirk Moore kmoore@divcom.com

ONLINE EDITOR

Ashley Herriman aherriman@divcom.com

CONTRIBUTING WRITERS

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

Dylan Andrews

ART DIRECTOR

PUBLISHING OFFICES

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

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

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David Cohen (207) 842-5496 • Fax: (207) 842-5611 dcohen@divcom.com

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

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Six-pack operators are often unaware

udos to the Passenger Vessel Association and responsible T- and K-boat operators for raising awareness about illegal charters in the March issue (“Charter Party,” page 36). Regarding six-pack charters, I have discovered an alarming number of uninspected vessel owners who believe that they can start carrying paying passengers on their recreational vessels as soon as they have an OUPV (operator of uninspected passenger vessel) license. A Coast Guard license is only for the vessel operator, not for a vessel. The vessel is subject to commercial vessel requirements, and having a licensed operator is just one of many requirements. The most common deficiencies concern random drug testing and improper (or no) vessel documentation. Many six-pack operators do not meet chemical testing requirements. Any sixpack operator who is not a member of a random drug-testing consortium needs to join a responsible consortium, one that has had its program reviewed by Coast Guard headquarters for compliance. Another common deficiency is that six-pack charterers operate vessels five net tons or over with state registrations, or with Coast Guard documentation only for recreational use. To legally carry paying passengers, the vessel must be documented (not state-registered) and have a coastwise commercial

vessel endorsement. There are also higher standards for safety equipment regarding PFDs, etc. Six-pack charters should contact their local USCG Sector for a vessel operating/equipment checklist. Mark Grossetti Grossetti License Consulting Framingham, Mass.

Vessel traffic is ‘too much’ in Chicago

wanted to thank you for the article in the March issue on illegal charterboats operating in and around Chicago. As a master captain for 15 years running a fully licensed operation offering both OUPV charters and bareboat rentals, I am hopeful that our local Coast Guard operation can continue to crack down on the illegal operations. I thought I would give you an idea for a follow up article on operating here in Chicago. We are in the midst of an unprecedented boom in river traffic. The local inspected vessel tour operators continue to increase the size of both their boats and fleets. Please note that I don’t begrudge anybody trying to grow their business. I am currently looking to add at least one or two boats to my fleet as well. But this build up has caused what I consider to be an unsafe boating environment on weekends and also on Wednesday and Saturday nights when there are fireworks shows off of Navy Pier. The main problem is the blending of a fireworks barge, commercial boats,

OUPVs and recreational boats all trying to get out of the river through the Chicago Lock for the shows. No other boats are allowed in the lock when the barge is locking through since it is red flagged, so we lose one complete lockage every night. Then on the “final” outbound lock before the show, there are so many commercial boats that the recreational boaters get left behind or there are 20-25 boats trying to get into the four or five spots still available in the lock. The lockmasters have no queue set up, so it is chaos. I think the article should focus on how commercial traffic is too much versus recreational boating concerns in a closed system like the Chicago lakefront and river system. Capt. Chris Connor Knock Out Charters Chicago, Ill.

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

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

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On the Water Digital charts — Part III

I By Joel Milton

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

n my recent series of columns about the use of electronic navigation systems and the nautical charts they utilize, I discussed the importance of keeping digital charts up to date just like paper charts. In the columns, some thought that the particular electronic charting and navigation software I use, Rose Point ECS, was in some significant way flawed in performing those chart updates. That is not true, and I want to set the record straight. Users of Rose Point ECS can rest assured that the confidence they have in the software is well placed. I know of no issues at all with the capabilities of its chart-updating utility. This comes from years of experience using the program everyday. I’ve commented favorably on Rose Point in the past, and it has only improved over time. It remains my first choice. The program will perform whatever chart up-

Captain’s Table The importance of inland waterways transportation

M 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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ost people don’t realize the important role that our inland rivers play in the transportation of products. They don’t realize that huge quantities of fuel, commodities and materials are moved via our inland river system. Most are also unaware how cost effective and environmentally friendly this form of transportation is. In March, inland waterways industry officials along with key players from the Coast Guard and the Army Corps of Engineers gathered in Cincinnati for the 2017 Inland Waterways Conference. The focus was on infrastructure and other needs of the inland waterways system, its operating companies, shippers and mariners. The conference began with an in-depth discussion of Subchapter M and featured experts who delved into the new regulation and answered questions from attendees. Merchant mariners who work on the inland rivers attended an important session conducted by Capt. Kirsten Martin, commanding officer of the Coast Guard’s National Maritime Center, and Capt. Greg Menke, com-

dates it’s enabled to do by the system administrator or other individual who initially set it up. That means a choice has to be made by someone, and that choice may or may not include both of the chart types (raster and vector) commonly in use that can be loaded into the system. If and when it comes down to picking only one, typically vector would be chosen over raster, usually for one or more of these reasons — internet access, download speed and data costs. A potential problem arises if steps are not taken to ensure that vessel crews that use the system are fully aware of what is and isn’t being updated. If they are not made aware of this, they may be operating under the faulty assumption that a raster chart they decide to use has been updated when it possibly hasn’t. This is not a Rose Point performance problem. This is a potential information gap on the user’s end that can easily be solved with some elementary education. It is very important that the master, mate, or pilot fully understands the details and capabilities of the technology they are using.

pliance officer at Evansville Marine Service. The session offered discussions and debates that covered topics such as mariner licensing issues involving medical evaluations, license processing times and renewals, and changing licensing examination questions. Also featured was a topical discussion on possible changes to towing vessel firefighting education and training, which I feel is too closely aligned with international STCW standards. In another session, Corps of Engineers officials updated civil works projects that affect navigation on the inland rivers and the Coast Guard provided reports on bridge administration. Luncheon speaker Coast Guard Vice Commandant Adm. Charles D. Michel calmed fears about the potential reduction of future Coast Guard inspection resources. The conference also explored other important topics such as what to expect after a spill, how to cope with congested waterways, and distractions in the wheelhouse. The conference provided an important opportunity for those who make their livings on the inland rivers to come together to promote a sound future for this valuable national resource. I encourage you to take part in the discussion by attending next year’s Inland Waterways Conference. www.workboat.com • MAY 2017 • WorkBoat

4/6/17 4:43 PM

Energy Level Mixed signals from current oil prices By Bill Pike

espite the fact that Saudi Arabia has reiterated its commitment to “stabilizing the global oil market,” the country indicated to its OPEC partners that production had increased to just over 10 million bbls. of oil per day in February. The country insisted that its output was in line with OPEC production cuts, noting that “the difference between what the market observes as production and the actual supply levels in any given month is due to operational factors that are influenced by storage adjustments and other month-to-month variables.” Few took this convoluted argument to heart, believing instead that Saudi resolve is faltering. This has implications for Saudi Aramco’s recently announced 2018 IPO, which places a valuation of some $2 trillion on the company. But some analysts have put the valuation much lower, at $1 trillion to $1.5 trillion. To combat the lower valuation, Saudi Arabia recently announced a major cut of 50% on taxes on production. Previous-

www.workboat.com • MAY 2017 • WorkBoat

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ly, Saudi Aramco had paid an 85% tax, plus a 20% royalty levied at a different stage. The decree did not mention the royalty. This should help, but may not solve the problem. The reduced tax rate could add $1 trillion to Aramco's valuation (and billions to its bottom line), according to oil and gas consultants Rystad Energy. The company now values Saudi Aramco at $1.4 trillion, compared with its previous valuation of $400 billion. So what does this have to do with oil prices? Well, it may have a lot to do with it. If Saudi Aramco cuts production to raise oil prices, it will encourage a ramp up of U.S. shale production. If it raises production, it forces down oil prices, lowering revenues and, possibly, valuation prior to the IPO. Given these factors, is there a good oil price for Saudi Aramco? Most pundits put that price at $60 bbl. That is the level that the OPEC heavyweight and its Gulf allies — the United Arab Emirates, Kuwait and Qatar — believe would encourage investment in new fields but not lead to a jump in U.S. shale output, according to sources consulted by Reuters. If the pundits are correct and $60 oil is good for everyone and does not result in overproduction, where does that leave U.S. workboat demand and

day rates? The answer is about where it is now. A price of $60 bbl. is not enough to restart serious deepwater exploration nor encourage remedial work on the shelf. If anything, it will boost onshore shale production. Unfortunately, it looks as though the status quo will be around for at least another year. *** Editor’s note: With last month’s issue, we suspended our monthly offshore service vessel day rates and fleet utilization report. We launched our OSV day rates and utilization survey in the magazine over 20 years ago. The survey initially included 32 OSV operators. Due to the depressed U.S. Gulf offshore services market, several OSV companies that had been longtime contributors to the survey have dropped out or are no longer operating. Due to this erosion in the number of survey respondents, we feel that we can no longer offer an accurate snapshot of U.S. Gulf supply vessel and crewboat rates and utilization. We fully intend to resume the survey once market conditions improve, and we can once again offer accurate data.

4/6/17 4:43 PM

STOCK CHART

WorkBoat Composite Index Stocks dip 1% in March

he WorkBoat Composite Index broke a two-month winning streak to start 2017 by losing 20 points, or 1.1%, in March. For the month, losers topped winners 18-11. The Operators Index lost almost 3%. Among the top losers in March were several oil service issues including GulfMark Offshore and Rowan Companies. GulfMark lost most of its value after the company disclosed on March 15

that it decided not to pay the $13.7 million interest payment that was due that day on the company’s 6.375% senior notes due 2022. Despite beating fourth-quarter earnings and revenue estimates, Rowan shares fell 14% in March. In the fourth quarter, Rowan announced several key transactions that solidified its longterm growth and financial stability even though earnings continued to be pressured by challenging market

INDEX NET PERCENT COMPARISONS 2/28/17 3/31/17 CHANGE CHANGE Operators 340.68 331.01 -9.66 -2.84 Suppliers 2925.18 2916.76 -8.41 -0.29 Shipyards 2445.14 2383.42 -61.72 -2.52 Workboat Composite 1835.92 1815.29 -20.62 -1.12 PHLX Oil Service Index 175.89 169.76 -6.13 -3.49 Dow Jones Industrials 20812.24 20663.22 -149.02 -0.72 Standard & Poors 500 2363.64 2362.72 -0.92 -0.04

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

conditions, Tom Burke, the company’s president and CEO, said during February’s earnings call. “A year ago, the view of the market was bleak as we expected further declines in demand for both jackup and deepwater markets,” Burke said. “That forecast proved to be true. We’ve seen operator budgets decline for three years in a row assisted by lower rig day rates and other costs. “We saw some improvement in oil prices last quarter ... This stability in oil price seems to be driving increased tendering activity to late 2017, especially for jackups. However, the floating market seems to be pushing off to 2018. “While becoming more comfortable with forecasting a reasonable recovery over the coming years, more attrition of older assets is necessary for true recovery.”

— David Krapf

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Inland Insider Foreign trade and the inland waterways

bout 40% of rail carloads and intermodal units and more than 35% of rail revenue are directly associated with international trade, according to an assessment of the impact of foreign trade on the domestic freight railroads by the Association of American Railroads (AAR). A similar analysis for the barge freight sector would likely yield substantially higher percentages of barge loads and industry revenues attributable to foreign trade. Usually, studies of the competitive elements of international trade end up becoming part of a legislative agenda such as promotion of infrastructure, trade treaties, etc. The argument is that international trade is such a vital component of the domestic economy that policies promoting trade and its production and distribution elements, including ports, are in the national interest. Foreign trade and promotion then becomes a “merit” good similar to education, health care, etc., where the end results are assumed to be beneficial. Thus, they should be supported, which usually means providing public subsidies. Rarely do we see arguments that massive public investments in transport infrastructure for foreign trade can effectively subsidize foreign nations by making exports cheaper or imports more profitable. The Trump administration wants to venture into transport infrastructure funding. Washington, D.C., transport and trade groups see huge expenditures in the form of jobs stimulus and domestic and foreign trade promotion. Expect various transport groups with infrastructure investment objectives to pile on with studies similar to the one by the AAR. It will be telling if the new administration takes a different tack in response to the perceived importance of foreign trade to the different transport www.workboat.com • MAY 2017 • WorkBoat

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modes and related infrastructure. One possible approach is to determine what new trade markets are possible with new infrastructure and conversely what trade might be lost if the country fails to maintain existing infrastructure. Public funding of merit goods is not unlimited. Transportation infrastructure funding will be similarly affected. The best policies are those that offer maximum trade value for the minimum amount of investment in infrastructure.

When infrastructure expenditures are politically allocated, the results will be somewhere between the best and worst outcomes.

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Insurance Watch

TMI is a good thing

t is always better to let your agent know of any changes to your operation or vessel because after a claim occurs it is too late for that conversation. When it comes to the use of your

vessel, there is no such thing as sharing too much information with your insurance agent. One area where this is especially true is warranties attached to your hull policy. Warranties state what you can and cannot do on board your vessel. Here are a few examples: • Changes in operation. Is your boat now going to start delivering fuel oil as well? There is a warranty stating what type of operations your vessel

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is insured for. If you are engaged in something different and have a claim, it may not be covered. • Changes in navigation. When we say navigation, we are not only talking about terBy Chris ritorial boundaries Richmond but also time of year. Have you expanded your footprint and are now operating in new waters? Are you operating longer each year with a shorter layup? Your policy will state your navigational limits as well as any layup period. If you have a claim outside of either of these two limits, there will be no coverage. • Survey recommendations. Every five years or so your insurance company will ask for a new marine survey. If recommendations are attached to the survey you will be asked to sign off that they have been complied with. Should you have a claim and the adjustor determines that it was caused or associated with a survey recommendation that was not complied with, the claim will be denied. • Extra crew. Your policy has coverage for a stated number of crew. If you take on more, whether for a longer trip or just to have more hands on board, your policy must be modified to reflect this. Insurance is one of the largest expenses for your vessel and operation. You want to do all you can before a claim occurs to ensure that you get paid in the event of an accident. Take the time to review what you currently have and make sure to keep your agent up-to-date with any changes. Chris Richmond is a marine insurance agent and licensed mariner with Allen Insurance and Financial. He can be reached at 800-439-4311 or at crichmond@allenif.com.

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4/4/17 7:20 PM

Legal Talk Jurisdiction: A need to know primer

o you want to short circuit a legal proceeding? Simply raise the issue of “jurisdiction.” Jurisdiction is the keel plug in any lawsuit without which it sinks. However, few know what it means.

There are two kinds of jurisdiction. One type is where a court (or parent) has the authority to make decisions impacting your rights and is called “personal jurisdiction.” The other kind is called “subject matter” jurisdiction, which relates to whether the court has the authority to make a decision on a particular topic. For example, in personal jurisdiction, your friend’s mother has the authority to tell you stop climbing a tree, but not

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to tell you to get a job — a bankruptcy court can only hear bankruptcy cases. Your friend’s mother had personal jurisJohn Fulweiler diction over you, but not subject matter jurisdiction when it came to employment. A lawsuit’s facts are the sizzle, but jurisdictional issues can be just as important. Clients don’t always realize that in the law, procedure sometimes gives way to substance, which can be frustrating. Many lawsuits have foundered due to jurisdictional challenges, an issue you see often in admiralty law. Vessels and their owners may not be operating in the jurisdiction, giving rise to personal jurisdiction challenges. In other instances, a party may allege a lawsuit should be dismissed because it’s not an admiralty lawsuit thereby challenging the court’s subject matter jurisdiction. They’re some peculiar quirks and rules when it comes to personal jurisdiction. In a recent Louisiana case dealing with personal jurisdiction over a foreign business, the business argued that it wasn’t a resident of the state and the court didn’t have personal jurisdiction. Reading the decision it looked promising for the business until the court started swinging around Rule 4(k)(2) of the Federal Rules of Civil Procedure. This rule allows a court in a federal claim (like an admiralty lawsuit) to exercise personal jurisdiction over a foreign defendant if the defendant is served with a summons and complaint, and if exercising jurisdiction is consistent with the U.S. Constitution. The rule is designed for use against a foreign defendant who has a decent amount of contact with the U.S. to make it fair that they’re sued here, but not enough to vest any particular state court with personal jurisdiction. John K. Fulweiler of Fulweiler LLC is a licensed mariner and maritime attorney. He can be reached at john@saltwaterlaw. com or 1-800-383-MAYDAY. www.workboat.com • MAY 2017 • WorkBoat

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MAY 2017

NEWS LOG NEWS BITTS CHARTER BOAT DEATHS DRAW SCRUTINY

Kirk Moore

The crew of the Fast Response Cutter Lawrence Lawson mans the rail during commissioning ceremonies at Cape May, N.J.

Coast Guard dodges big cuts proposed by Trump

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for greatly needed resources,” Hunter wrote in a March 16 letter to President Trump. “I urge your administration to seriously consider moving the Coast Guard to the Department of Defense, and I stand ready to work with you to provide the necessary authorities.” Commandant Adm. Paul Zukunft insists the service needs more robust funding and is left out of Trump’s drive to increase military spending by $54 billion. But Zukunft also says Homeland Security is a good fit for the Coast Guard, given its missions. His second in command, Adm. Charles Michel, affirmed as much March 31 at the

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espite its perennial shortages of money and resources, the Coast Guard’s proper place is within the Department of Homeland Security, not the Department of Defense, top Coast Guard leaders said. Early reports of a planned 14% budget cut did not materialize in the Trump administration’s draft budget, after major pushback from Congress. But it triggered new calls to move the nation’s fifth and smallest armed service into the Defense Department. Rep. Duncan Hunter, R-Calif., chairman of the House Subcommittee on Coast Guard and Merchant Marine, in March called on the Trump administration to consider the move. Two weeks later Hunter introduced H.R. 1726, the “Coast Guard Improvement and Reform Act of 2017,” that could pave the way for reorganization. “First and foremost, the Coast Guard is a military force. It deserves to be housed in a department that recognizes the importance of its mission and has the capabilities to properly advocate

The first Citywide Ferry undergoes sea trials in Bayou La Batre, Ala.

he Coast Guard is investigating a charter boat outing that resulted in the deaths of a passenger and the first mate in rough conditions off St. Petersburg, Fla., in mid-March. The probe “will identify whether this vessel held the proper credentials,” said Coast Guard spokesman Michael De Nyse, who declined to comment further on the case. The Jaguar, a 71' Sea Ray, was chartered by 15 college students, mostly from Colorado State University, who booked a four-hour cruise for $2,000, the Pinellas County Sheriff’s office said. Because of choppy seas and high winds, the captain took the spring breakers for a 45-minute ride to Pass-a-Grille and decided to anchor instead of heading into the Gulf of Mexico. Accounts differ about what happened next, Sheriff Bob Gualtieri said. The captain told the sheriff he advised the students not to go into the water. The students said they were not told of any danger. Five jumped into the water several times. The third time only four made it back and a fifth was having trouble, so the first mate jumped in to help. Neither was wearing a life vest. — D.K. DuPont

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Inland infrastructure wish list from WCI

s the White House began early stages of drafting a national initiative to modernize and repair the nation’s sagging infrastructure, the maritime industry is making sure that their priorities are heard. Infrastructure is the third leg of Trump’s three-part legislative agenda: overhauling Obamacare, reforming

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Before the health care defeat, officials from the Waterways Council Inc., an industry-supported advocacy group for river infrastructure funding, met with members of the White House team working on the infrastructure initiative as well as Transportation Secretary Elaine Chao to outline their priorities. “We had a very cordial meeting with

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the national tax code and passing a $1 trillion public-private infrastructure plan. Collapse of the Republican health care bill March 24 could either imperil or help the infrastructure package. This will depend on how the White House prioritizes its next move, repairs damage within the GOP and secures Democratic votes needed to pass the rest of Trump’s agenda.

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Military Reporters and Editors national conference in Arlington, Va. Michel said the first budget proposal delivered by the White House included “a sustainment budget for the Coast Guard … that’s something we can work with and that’s what we’re marching forward on,” according to Military.com. Michel credited Homeland Security Secretary John Kelly with securing that budget, calling him “a great advocate for us.” — Kirk Moore

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a good discussion about the ‘silent R’ for rivers, including inland waterways infrastructure in any administration initiative,” WCI president and CEO Mike Toohey said after the meeting. “The secretary was supportive of our request and asked for a copy of our submission to the [Trump] transition team.” Inland industry leaders attending WCI’s annual Washington meetings

also met with members of Congress to press the case for waterways inclusion. The waterways wish list asks for $8.7 billion over 10 years for construction of river navigation projects that have already gotten the green light from Congress. If funded, this proposal would expedite completion of 25 modernization projects throughout the country, including in Pennsylvania,

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Ohio, Kentucky, Missouri, and Tennessee — all states that President Trump carried in the election. Projects currently under construction include the Chickamauga Lock and Dam and Kentucky Lock and Dam on the Tennessee River, Lower Monongahela Locks and Dams in Pennsylvania, and the Olmsted Locks and Dam on the Ohio River in Kentucky. Projects authorized and awaiting construction include three along the Gulf Intracoastal Waterway in Texas and Louisiana, three on the Ohio River in Pennsylvania, six on the Mississippi River in Missouri and Louisiana, and one on the Illinois River. In addition, the list includes seven major rehabilitation projects that are ready for construction along the Illinois, Ohio and Little Calumet rivers. “These projects are in key states carried by President Trump and benefit a vital constituency, farmers, manufacturers, and the men and women of the construction trades,” WCI’s submission paper said. The Trump team’s list of 50 top projects issued in January included nine port and waterways projects. Many are among WCI’s priorities. Dredging the Savannah, S.C., harbor and the Mississippi River Shipping Channel in southern Louisiana, reconstructing the Soo Locks on the Great Lakes, and improving the New York-New Jersey Port Newark terminal were also listed. Toohey said WCI’s goal is to work all angles to influence the White House and Congress to include river navigation in any final package. This includes getting shareholders of the waterways to speak to their elected representatives, meeting with cabinet and administration officials, and asking supportive members of Congress to press the case with the administration. “All that is going on now,” he said. Also on WCI’s wish list is changing the cost formula used by the Inland Waterways Trust Fund to finance river navigation construction projects. The trust fund currently shares the project cost with the federal government 50-50. WCI seeks a cost-share of 75% www.workboat.com • MAY 2017 • WorkBoat

4/6/17 6:09 PM

federal and 50% trust fund, which is financed by the barge industry through a 29-cent per gallon tax on diesel fuel. The American Association of Port Authorities was in on the infrastructure game as well, launching a campaign advocating infrastructure investment in the nation’s ports. Among their priorities are funding marine highway programs, modernizing and maintaining federal navigation channels, providing resources for port and border security, and funding programs that reduce the environmental impact of freight transportation. — Pamela Glass

The Coast Guard gets tips about “possible violations from a variety of sources, including local, state, and federal law enforcement agencies, vessel passengers and other members of the maritime industry,” the spokesman said. “Passenger vessel carriage laws are complex and what may appear to be an illegal passenger operation may be perfectly legal.” The agency encourages the public to ask for a charter operator’s license and

ask the master to show credentials. Passengers also can check whether a boat has been inspected at https://cgmix. uscg.mil/ and on a mariner’s credentials at https://www.uscg.mil/nmc/.

Customs ruling favors U.S. offshore vessels

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Illegal charters worry Coast Guard, industry

he Coast Guard and passenger vessel industry increasingly are raising alarms about a rise in unlicensed, uninspected charter boats. In the first two weeks of March alone, Coast Guard offices in St. Louis and Los Angeles issued warnings to the public about illegal boat operators. From mid-February to mid-March the Los Angeles captain of the port ordered seven vessels to cease operations as commercial small passenger vessels. Illegal charters “can be a concern in any large recreational boating community, especially in areas with favorable year-round climates and maritime tourism,” a Coast Guard spokesman said. Many owners and operators aren’t aware of the federal regulations, so the agency has to educate them. The law requires a boat to be inspected and meet safety codes if it carries more than six people with at least one paying passenger. Operators must be licensed to legally carry up to six paying riders. Commercial operators with six or more onboard — with at least one paying — must have a master’s license and a Certificate of Inspection (COI). Bareboat charters may carry a maximum of 12 without a COI. The Coast Guard has several enforcement options including taking control of the vessel, civil penalties up to $35,000 a day, violation notices and revoking a master’s license. www.workboat.com • MAY 2017 • WorkBoat

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— Dale K. DuPont

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sels came with a Customs and Border Patrol decision in January to revise years of Jones Act interpretations that had allowed foreign-flagged inspection, maintenance and repair (IMR) vessels to carry oil and gas well equipment in U.S. waters. Dating back to the 1970s, agency rulings counted energy-related equipment as “vessel equipment” rather than “merchandise” subject to Jones Act restrictions on foreign-flag transport in coastwise trade. That culminated in 2009 with the so-called “Christmas tree case,” dealing with a subsea valve assembly transported by a foreign construction vessel. U.S. operators finally won the reversal, which they say in time could bring 3,200 more jobs back to the Gulf region. International companies contend that would make the industry less safe and efficient. However, a report commissioned by U.S. operators counted

28 Jones Act vessels ready to take on construction work when the industry recovers. About five have been working in recent months according to industry officials. “By using the U.S. vessels that have been built for this purpose by U.S. shipyards, operations can be performed by a single vessel,” said Aaron Smith, president and CEO of the Offshore Marine Service Association. For years OMSA has pressed the CBP to reconsider its Jones Act interpretations of foreign-flagged IRM vessel activity in U.S. waters. “Using a single vessel eliminates the need to conduct inherently risky offshore vessel-to-vessel transfers, which is currently the only Jones Act-compliant option for foreign vessels,” Smith said. The CBP move is a positive longterm development for the U.S. offshore service vessel industry, but will not have much of an immediate impact given the depressed state offshore.

Todd Hornbeck, president and CEO of Hornbeck Offshore Services Inc., Covington, La., said in a Feb. 16 earnings call with analysts, that he counted 19 Jones Act-compliant subsea construction IRM vessels available and seven newbuilds to be delivered in 2017 and 2018. “So, just like the OSV space, at present, the domestic MPSV space is oversupplied,” he said. Of some 19 foreign-flag vessels that used to compete in the Gulf of Mexico, 16 have left since 2016 because of market conditions, said Hornbeck. “That said, we do think that MPSVs will be a bright spot for us sooner than OSVs as development, inspection, repair and maintenance work are drivers that are more insulated from drilling and exploration budgets,” Hornbeck said. “And with respect to IRM work, much of it cannot be delayed.”

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Offshore Service Vessels

Boat Blues

Demand for Gulf OSVs remains extremely soft.

By Kirk Moore, Associate Editor

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ow in its third year, the depressed U.S. offshore service vessel industry is nowhere near a recovery. Newbuild activity in the past year ramped downward, as operators large and small fought to hang on. The WorkBoat 2016-2017 construction survey counted 31 new OSVs under construction, down 40% from 2015 numbers. That was in a year that saw almost half of the existing Gulf of Mexico fleet stacked, as oil prices continued to hover around $50 bbl. On the U.S. mainland, producers wringing out new efficiencies from their fields made money at those prices, partly negating the effort by the Organization of Petroleum Exporting Countries to reduce the global oil glut. While some Americans cheered OPEC’s frustra-

tion and lower gas prices at the pump, there was no cheering coming from the U.S. offshore industry and its workers. Todd Hornbeck, president and CEO of Hornbeck Offshore Services Inc., Covington, La., summed up the situation in a Feb. 16 earnings call with analysts. “Earlier in this cycle, the industry mantra was lower for longer. The message we have recently been hearing from our customers, almost uniformly, is that they now see oil prices as lower forever,” said Hornbeck. “They no longer view this as a U-shape recovery, but an L-shaped recovery, or so we’re told. Deepwater projects can work in that kind of world, but not at economics that drive key pieces of the supply chain out of business. Lower forever must also mean greater efficiencies and reliability

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Gulf Island Shipyards

in this supply chain.” In that grim environment, shipyards are finishing a few state-of-the-art vessels for major operators. Gulf Island Shipyards LLC, Houma, La., in November launched HOS Warhorse, the first of two 365', 6,265-dwt multipurpose supply vessels (MPSVs) for Hornbeck. Equipped with 250-MT and 110-MT large heave-compensated cranes, a 15'×18' moon pool, two remotely operated vehicles (ROVs) and with accommodations for 102 personnel, the vessel is certified for worldwide operations. It has tankage for 14,115 bbls. of liquid mud. Gulf Island has a pair of 300'×62'×24' platform supply vessels scheduled for delivery this year to New Orleans-based Tidewater. In the first quarter Tidewater was in the midst of negotiations with its lenders and noteholder, as the leading worldwide operator sought to restructure debt. In early April, the company said it was close to making new lender and noteholder arrangements. Tidewater had 148 active vessels worldwide and 116 stacked at the end of 2016, company officials said in a Feb. 8 earnings call with analysts. Vessel revenues of $125 million were down 41% in the December quarter from a year before, said Tidewater CEO Jeff Platt. Utilization of the active fleet was about 74%, up about 4.5% quarter over quarter, with average day rates around $12,500 down by about $900 a day or 7% quarter to quarter – slightly better than expected, Platt said. “Early on, we stated that we and our customers would need to learn to live in a world of lower oil prices,” Platt said. “Initially, the downturn was cushioned by the existence of long-term drilling rig and vessel contracts, but as we warned, there was already an oversupply of drilling rigs and OSVs, with many more under construction,” said Platt. At the time, Tidewater was approaching the end of a fleet renewal program that had added more than 160 new

www.workboat.com • MAY 2017 • WorkBoat

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The HOS Warhorse, an MPSV for Hornbeck Offshore Services, was launched in November at Gulf Island Shipyards.

vessels over the past 10 years, bringing down the average age of the fleet to less than nine years. “Our new, young fleet, coupled with the broadest geographic footprint in the industry, positioned us well we thought for weathering the extent of the downturn we initially envisioned,” Platt said. But the continued decline in oil prices, bottoming out in the mid $20s during February, made it clear this was no short-term downturn, he added. SURVIVAL MODE The low prices and inevitable shakeout appears likely to continue into 2018, with less work and lower day rates stressing operators that are close to just covering costs. Industry observers say it is the hangover from the 2005 to 2014 boom years. “On the vessel supply side of the equation, over the last decade, our industry built new-generation, high-spec OSVs to service a 50-plus deepwater drilling unit market. That’s just in the Gulf of Mexico … we are well shy of a 50-rig market,” Todd Hornbeck said in his company’s last earnings call. “Yet, the vessels available to work are still here and actually grew in number over the course of 2016, as the remainder of previously ordered supply vessels were delivered from shipyards.” Hornbeck counted 194 “high-spec, new-generation vessels in the Gulf of Mexico market,” with roughly half of those stacked. Still the market is

oversupplied and “is not one that operates on rational business principles,” he said. “Instead, even cash-strapped competitors are burning what little cash they have to charter vessels at rates below their cash operating costs,” Hornbeck said. Hornbeck said his company will be one of those left standing, because “value creation in the offshore vessel space cannot begin, again, without meaningful acquisitions of high-spec assets and businesses over the overleveraged industry players.” Hornbeck said one potential bright spot is multipurpose vessels, as inspection, maintenance and repair (IRM) work cannot be put off for long. With consolidation, and likely shrinking and scrapping ahead, it will be a lean time for building new OSVs. “We have a young fleet again, and it’s all stacked. Why would anyone build a new boat?” said Stephen J. Berthold, vice president of sales and marketing at Eastern Shipbuilding Group, Panama City, Fla. “I hate to be a naysayer, but if you look at history, the last time we built up the fleet, it took a decade to work out. “The current PSV market started in 2001, so, if you go from 1986, the last crash (in oil), in 2001, that’s 15 years,” Berthold said. After building from 2001 to 2005, “2005 to 2014 was pretty much full throttle,” he said. Those wave patterns closely follow 23

4/10/17 10:47 AM

oil prices, and the newbuild slide was precipitous when oil plunged from $105 bbl. in June 2014 to $59 bbl. that December, according to the Energy Information Administration. Eastern’s last projects for the offshore market are multipurpose field support vessels (MPFSVs) for Harvey Gulf International Marine, New Orleans, due for delivery in mid-2017. The first, the Harvey Stone, is a 212'7"×59'1"×25'7" Rampage 6400 MPFSV designed by Robert Allan Ltd., Vancouver, British Columbia, that was launched from Eastern’s Allanton, Fla., facility in December. The next two are the Harvey Sub-Sea and the Harvey Blue-Sea, being built to a Vard Marine design. With a deadweight tonnage of 1,280 LT, the Harvey Stone has tankage for 232,355 gals. of cargo fuel oil; 401,020 gals. drill water and freshwater; 26,092 gals. fuel oil in day tanks; 50,680 gals. ship’s potable water; and 24,866 gals.

AFFF foam. Propulsion comes from a pair of GE Marine 12V250MDC, IMO Tier II, EPA Tier 4(i) diesel engines, producing 4,687 hp at 1,000 rpm each, spinning Schottel SRP3030 CPP propellers in nozzles through Karl Senner-supplied Reintjes LAF 3414P HL marine gears. Bollard pull is rated at 106 MT. For maneuvering around offshore structures, the Harvey Stone is equipped with two Schottel STT2 thrusters, driven by 600-kW electric motors. Deck equipment includes a MacGregor 10-ton hydraulic knuckleboom crane, two 5-ton MacGregor hydraulic capstans; and two MacGregor 15-ton hydraulic tugger winches. Those three Harvey boats are the last OSVs Eastern expects to build for a while, and likely to be the type of highend vessels that will be built whenever the industry recovers. “After that, that’s just about it for us”

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Offshore Service Vessels

During the recent OSV building boom, Eastern built oil service vessels for several operators.

in the OSV market for the foreseeable future, Berthold said. “Unless they’re specialized vessels, it’s going to be a tough business. It’s very, very competitive. “Being a diverse shipyard here at Eastern, we learned our lesson back in ’86” and have since diversified, he added. The company now has plenty of work in other workboat sectors, Berthold said.

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CONSTRUCTION ACTIVITY AT WORKBOAT YARDS

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Blessey Marine Services

Verret delivers 2,000-hp towboat to Blessey Marine

New 2,000-hp towboat was built in Plaquemine, La.

hen the Steve Daines was christened on March 10 along the New Orleans riverfront, the 85'×30'×10'6" inland towboat joined a large number of boats in the Blessey Marine Services fleet operating out of Harahan, La., that are named after political figures. The boat’s namesake, the U.S. senator from Montana, was at the christening. The Steve Daines, with an air draft of 45'9" (42'2" with the mast retracted), is a conventional twin-screw towboat designed “as a collaboration between Blessey and Verret Shipyard” in Plaquemine, La., said Claude Mixon, Blessey’s vice president of new construction. Powered by a pair of 1,000-hp Cummins QSK38-M1 engines, the Steve Daines is the “first 2,000 horsepower to come out of Verret since the Clark Todd,” said Mixon. The Clark Todd was built in 2014 and is a sistership to the Steve Daines. The two Cummins diesels are bolted to Reintjes WAF-562 marine gears from Karl Senner with 5.95:1 reduction ratios that spin Katlenberg 4-bladed stainless steel 74"×58" props. That gives the 85' towboat more than enough power to push what is usually a couple of Blessey 30,000-bbl. tank barges. To handle the barges there are two electric 40-ton Patterson Manufacturing deck winches, and a Schuyler fender and bumper system. For night work, there is a pair of 500-watt Carlisle & Finch remote control xenon spotlights. In case of a fire the crew will be notified by an Eagle fire detection system and a Herbert Hiller fixed CO2 system should put it out. 26

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Currently, the Steve Daines is working in the Mississippi River around New Orleans. With five staterooms and eight berths there’s more than enough space to accommodate the crew of five or six. The wheelhouse has mostly Furuno electronics — radar, AIS, GPS, depth sounder, satellite compass, intercom and weather station. There’s also three Icom VHF radios and a DeHart Marine swing meter. The Steve Daines has tankage for 30,000 gals. of fuel and 17,200 gals. water. — Mike Crowley

Moose Boats building 75' crewboats for Westar Marine Services

oose Boats, Petaluma, Calif., is building multiple 75' semi-displacement Subchapter T, 28-passenger aluminum catamaran crewboats for Westar Marine Services, San Francisco. Construction of the first vessel was scheduled to begin this spring. Westar’s services include marine construction support, tank barge assist and escort, specialty barge services, ship store’s deliveries, and water taxi services. The new vessels will allow Westar to expand its cargo and passenger carrying capabilities. Moose designed the cabin superstructure and general arrangement in-house with collaborative input from Westar. Incat Crowther, Lafayette, La., will provide naval architecture services for the final design and Subchapter T compliwww.workboat.com • MAY 2017 • WorkBoat

4/6/17 4:38 PM

Moose Boats

ance. “Moose Boats’ reputation and the fact that they are a local boatbuilder, which gives us easy access, are two reasons” Westar picked Moose for the job, said Dave Morrow, Westar’s vice president. “The boats will operate in the [San Francisco] Bay area, but they’ll also have a coastal route.” Twin Volvo D13 turbo diesel engines with Volvo IPS3 drives will provide propulsion for the aluminum catamarans. The package will produce a service speed of 25 knots and is designed for enhanced close quarters maneuverability. Engine, steering and joystick maneuvering controls in both the raised pilothouse and the upper level aft steering station are designed to provide captains with optimal visibility for bow and stern operations. The new crewboats will also be capable of carrying 20,000 lbs. of cargo to and from anchorages and piers around San Francisco Bay, San Pablo Bay and the Sacramento River as well as offshore. Moose has a new production facility with deepwater access on Mare Island’s Naval Shipyard in Vallejo, Calif. This has expanded Moose Boats’ capabilities to include larger commercial craft in its product line. — Ken Hocke

tons. (A caisson is a watertight chamber in which construction work can be carried out under water.) At Weeks’ Greenville yard at Jersey City, N.J., workers installed 1,600' of internal piping running from each compartment to a 16" sea chest header pipe. Two 16" gate valves on the port and starboard sea chests supply water through the pipeline, varying from 6" to 12" in diameter. The system, controlled from an operator’s station and valve manifold 20' above deck, floods and de-ballasts compartments at the same rate, keeping the barge level all through roughly 90-minute cycles of submergence and surfacing. In its first mission the barge will submerge 20' to 30' so the newly built caissons can be installed. “There are a number of submersible barges in service, but this barge is particularly unique,” said David Forrest, naval architect with JMS Naval Architects, Mystic, Conn., who developed the design. “I’m not aware of any that have removable wing walls like this barge. It provides increased lift capacity similar to a drydock but

Weeks converts deck barge to 5,000-ton capacity caisson launch barge

Weeks Marine Inc.

eeks Marine Inc., Cranford, N.J., recently finished converting one of its deck barges into a caisson launch barge for McNally Construction, Hamilton, Ontario, Canada, a wholly owned subsidiary of Weeks. After 20 months of planning and construction, the McNally semisubmersible caisson barge JG Burke sailed at the end of March for its first job, building an $80 million wharf for the Canadian military at Halifax, Nova Scotia. The former Weeks 246 is now a 250'×75'×16' work platform that can double as a transport and heavy lift ro/ ro barge, with a capacity up to 5,000

www.workboat.com • MAY 2017 • WorkBoat

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New 75' crewboats to be built at Moose Boats.

also maintains the barge’s mobility for transporting it between job sites. “Overall, it’s an extremely flexible design and perfect for marine construction or even salvage operations. It fits into a niche where a self-propelled, heavy lift ship would be overkill, and a floating drydock too restrictive.” Originally built in the late 1980s as an oil platform launch barge, the Weeks 246 had a ballast system just to adjust draft and trim, with pumps below decks and valves accessible from the main deck only. Up on the new control station, an array of valves on the operating manifold overlooks the work deck. Flooding to all 15 compartments is managed with remote controlled butterfly valves and dewatering driven by onboard compressors. In the control station house, a monitoring system designed and installed by Electronic Marine Systems Inc. (EMS Marcon) Rahway, N.J., monitors water depth in each compartment, overall internal compartment pressure, and differential pressure between compartments. — Kirk Moore

250' semisubmersible caisson barge for Weeks Marine.

4/6/17 4:38 PM

On TheWays 1,700-hp ATB tugs for Island Tug and Barge

sland Tug and Barge (ITB), Vancouver, British Columbia, is building two 1,700-hp 82'×41' tugs that will be paired with two of its existing barges. The two tugs, which are under construction at Island Tug and Barge’s Annacis Island Shipyard, are being

built with pins for use in an articulated tug-barge (ATB) application. The two existing barges will be modified with the addition of pin ladders and stern extensions for connecting to the new tugs. Vancouver-based naval architects Robert Allan Ltd. did the design work for the tugs and the barge modifications making extensive use of computational fluid dynamics (CFD).

Working with the new design, the shipyard team has the hull and superstructure components of the first tug assembled. As they had the steel cut for the first boat they had the second set cut as well and that, with some assembly, is also in the warehouse along with complete sets of Z-drives, deck cranes and other equipment. “We are building these boats to

BOATBUILDING BITTS

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by liquefied natural gas (LNG). The new ship will enter service in the second half of 2017. The El Coquí and Taíno will be able to transport up to 2,400 TEUs and a mix 27' patrol boat for of nearly 400 cars and North Carolina. larger vehicles. Nichols Brothers Boat Builders, Seattle, is building two 139'×44' ATB Ocean-class tugs for an unnamed customer. The first, the Abundance, was recently launched at Nichols Freeland, Wash., shipyard with delivery scheduled for the spring. The tugs, connected to the barge units by an Articouple hydraulic connecting pin system, will each push a 501'×96' barge. Designed by Ocean Tug and Barge Engineering Corp., Milford, Mass., propulsion for the tugs will be provided by two EMD 16-710T13 diesels, each rated at 4,000 hp at 900 rpm, driving Rolls-Royce shafting and propellers through a pair of Lufkin RHS 3200 reduction gears. Life Proof Boats, Bremerton, Wash., delivered a 27'6"×10'×28", full cabin, .250" 5086 H32 aluminum alloy patrol boat for the Cornelius (N.C.) Police Department. The new boat has a 22" draft. Designed by Life Proof’s Micah Bowers, the new vessel is powered by twin Honda BF 250 outboards, producing 250 hp at 5,800 rpm each. The propulsion package gives the boat a speed of 47 knots. Conrad Deepwater South, Amelia, La., has delivered the 361'×62'×24'6" Double Skin 510A, a 55,000-bbl. asphalt barge for 55,000-bbl. capacity Vane Brothers. asphalt barge, to Vane Brothers Co., Baltimore. The new barge, which has a 20' draft, was designed by Bristol Harbor Group, Bristol Harbor, R.I. Life Proof Boats

astern Shipbuilding Group Inc., Panama City, Fla., launched the 356'×79'6"×27'3" trailing suction hopper dredge Magdalen for Weeks Marine Inc., Cranford, N.J., on March 31. Initially, the vessel was to be built by BAE Systems Southeast Shipyard, Mobile, Ala., where the keel was laid in 2012. Weeks Marine contracted Eastern in 2015 to finish the 356' trailing suction dredge. The dredge’s hopper dredge. hopper capacity will be 8,550 cu. yards with two LD dredge pumps, powered at 1,600 kW each, and an HD dredge pump, powered at 1,600 kW. There will also be two jet pumps, powered at 445-kW each. Main propulsion will come from twin GE 16V250 diesel engines, producing 5,682 hp each. For added maneuverability there will be a VFD fixed pitch bowthruster tunnel unit, producing 730 kW of power. Eastern has also contracted with the city of New York to build three new Subchapter H 320'×70'×21'6" Staten Island-Ollisclass ferries. The three double-ended 4,500-passenger ferries will have four Electro-Motive Diesel (EMD) 12-710 Tier 4 compliant propulsion engines, with twin engines turning one Voith Schneider 36 RV6 ECS/2852 propeller through one Reintjes DUP 3000 P reduction gear supplied by Karl Senner at each end of the vessel. Total horsepower will be 9,980. — K. Hocke Pascagoula, Miss.-based VT Halter Marine launched the first of two 740'×105'×59' 740' container/ro-ro vessel for Commitment-class the Jones Act trade. combination container/roll on-roll off (ConRo) ships for Crowley Maritime Corp. The El Coquí and its sistership Taíno will be powered

Conrad Industries

Crowley Maritime

Eastern Shipbuilding Group

www.workboat.com • MAY 2017 • WorkBoat

4/6/17 4:38 PM

Island Tug and Barge

Lloyd’s class. All of the welds have been inspected without a single failure,” ITB Marine Group chief fleet engineer, newbuilds, Marinus Goossen, said in a statement. Goosen expects to have the first boat in the water this summer with another month of work alongside prior to sea trials. The hull of the first tug dominates one of the warehouses. At the lowest point on the amidships deck the hull has a molded depth of 12'. A poop deck aft has flush removal hatches above the two Rolls-Royce US105-P9 Z-drives. Forward, a raised forecastle deck contains the port and starboard coupling pins manufactured by Japan’s Taisei Engineering Consultants Inc., under the name Articouple. The main deck house, like the hull, is steel, and continues aft from the forecastle and will contain the accommodations. This includes separate captain and mate cabins with heads, two single bunk crew cabins with shared

www.workboat.com • MAY 2017 • WorkBoat

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82' tugs under construction in Vancouver.

head and two double bunk crew cabins with shared head. A companion way separates the accommodation area from a fiddly over the engine room that is located below in the hull. The clear deck over the fiddly has removable pads for ease in swapping out engines. It will also support a crane and rescue boat. The engines, set well aft, are a pair of V-12, IMO Tier II certified, Cummins K38-M diesels each generating 850 hp (634 kW) continuous at 1,800 rpm. The carbon fiber shafts pass through a bulkhead to the port and starboard Z-drive rooms. The Rolls-Royce drives

have 63" propellers in nozzles. Forward of the engine room a workshop and tankage makes good use of the ample space. Forward of that, an electric-overhydraulic pump for the coupling pins is located just below the main deck pin rooms. The aluminum B-deck will include a wet room, large mess/lounge area and a well laid out galley. Stairs will lead up to a smaller cabin area for the HVAC and wheelhouse electronics. Above that is a large wheelhouse, with full walk around outer deck, and a 40' height of eye. — K. Hocke

4/6/17 4:38 PM

Road to Recovery

The Brandon Bordelon, a 260'x62' DP 2 subsea ultralightÂ intervention vessel, is an example of an OSV from the emerging specialty market.

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Bordelon Marine

The offshore service sector needs higher, sustained oil prices.

4/10/17 1:58 PM

By Bill Pike, Correspondent

Ken Hocke

n the eve of this year’s annual Offshore Technology Conference in Houston in May, discussions with industry experts have been more reserved than usual due to the lack of a rebound in the offshore energy market that many predicted for 2017. In fact, the market has rebounded a bit, but not enough. Current prices (WTI $51.72 bbl. as of April 6, up almost 50% from a year ago) have stimulated a bit of activity, but not enough, and not the kind that presages a recovery. New activity is comprised primarily of BP’s commitment to complete the $9 billion Mad Dog Phase 2 project in the deepwater U.S. Gulf of Mexico and Shell’s plan with MOEX North America LLC (MOEX NA), a wholly owned subsidiary of Mitsui Oil Exploration Co. Ltd, to execute phase one of the Kaikias deepwater project in the U.S. Gulf. Mad Dog Phase 2 will include a new floating production platform with the capacity to produce up to 140,000 bpd from up to 14 production wells. Oil production is expected to begin in late 2021. In 2013, BP (operator, with 60.5% working interest) and co-owners, BHP Billiton (23.9%) and Union Oil Company of California (15.6%) decided to re-evaluate the Mad Dog Phase 2 after an initial design proved too complex and costly. Since then, BP has worked to simplify and standardize the platform’s design, reducing the overall project cost by about 60%.

Today, the leaner $9 billion project, which also includes capacity for water injection, is projected to be profitable at or below current oil prices. BP discovered the Mad Dog field in 1998 and began production there with its first platform in 2005. Continued appraisal drilling in the field during 2009 and 2011 doubled the resource estimate of the Mad Dog field to more than 4 billion bbls., spurring the need for another platform at the field. The second Mad Dog platform will be moored approximately six miles to the southwest of the existing Mad Dog platform, which is located in 4,500' of water about 190 miles south of New Orleans. The current Mad Dog platform has the capacity to produce up to 80,000 bbls. of oil and 60 mcf of natural gas per day. Shell’s Kaikias project is an attractive near-field opportunity with a go-forward break-even price below $40 bbl. It will produce oil and gas through a subsea tieback to the nearby Shelloperated Ursa production hub. Despite these projects, the U.S. Gulf is primarily a dead sea when it comes to oil and gas activity. The Baker Hughes rig count for the last week in March was down to 18 rigs from 28 rigs at the same time last year. According to IHS Markit marine analyst Richard Sanchez, the market for contracted jackup rigs fell between five and seven rigs from January 2016 to March 2017, while the market for contracted floating rigs showed a steady decline from 45 to 26 over the

Edison Chouest vessels stacked in Houma, La., last summer.

www.workboat.com • MAY 2017 • WorkBoat

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“Personnel will be a huge problem when the industry returns.” Kim Whitfield, owner, Marine Transportation Services same period. Figures for rigs in the U.S. Gulf vary due to working status and the jobs being undertaken, but both sets of figures show rig declines in the 35% to 40% range. Outside deepwater, there is not much to look forward to on the shelf either. Vessel activity levels there are at historic lows. Inexpensive shale production onshore that can easily be turned on and off has made the older Gulf shallow-water properties a liability for many. CREWBOAT MARKET For companies that own and operate crewboats, chances are business has been tough lately. WorkBoat talked with several crewboat owners and operators who provided an overview of the market. The most striking trend has been the decimation of their fleets. SeaTran Marine LLC, New Iberia, La., for example, has nearly half of its fleet of 19 crewboats coldstacked, said Charlie Tizzard, the company’s executive vice president and chief financial officer. He said that he knows one owner whose entire fleet of eight vessels is stacked. With about half of SeaTran’s fleet stacked, Tizzard is worried about the risks of stacking. “The longer a boat sits in a humid environment, the more damage is done.” Marine Transportation Services Inc., Panama City, Fla., has 14 vessels in its fleet, five of which are stacked and for sale, said co-owner Kim Whitfield. Muchowich Offshore Oil Services Inc., Clute, Texas, had eight crewboats in its fleet but sold two older vessels “to create reserve cash flow for the rough times,” said Stacy Stanley, the company’s president and CEO. These three operators are not alone, noted Tizzard. “Lots of boats are stacked and none will be unstacked at these day rates,” he said. “Day rates are 31

4/10/17 12:15 PM

as low as they have been.” For example, day rates for Stanley’s 160' Raymond M have fallen from $4,700 in 2015 to a current day rate of $3,500. If there is a bright spot, Stanley said, it is utilization, which is up a bit for Offshore Oil Services. “The average utilization rate for this year is 51%, compared to 27% in 2016 and 42% in 2015,” she said. Stanley said the company can “see the light at the end of the tunnel, but it is just a flicker.”

Like others, Stanley is ready for a recovery. “It has been hard for me, but I have been forced to learn so much about my business. That’s the silver lining for me.” Whitfield has had a similar experience. Noting that the offshore drilling industry is still in the tank, she said that her company is now servicing the construction, production, plug and abandonment, workover and pipeline markets. Whitfield said that she still

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continues to get a few calls inquiring about available vessels, but has not, thus far, received any term commitments. Like Stanley, she also does not see a rapid recovery but rather a “trickle” recovery. She hopes to ride it out, but to do that, operators will also have to weather associated crewing issues. “Personnel will be a huge problem when the industry returns,” Whitfield said. “We have to find the personnel and provide mandatory training. We (the crewboat industry) are the people who break in new hands. Then they are usually poached by the larger OSV/ PSV operators.” SeaTran is not suffering quite as much as some of its competitors. “Day rates are pretty low, but due to cutbacks we aren’t registering losses on operations,” Tizzard noted. “With reference to operations, we have a positive cash flow.” And there are a couple of advantages to this market, he said. One is that interest rates are in the 4% range as opposed to over 20% in the 1980s. The other, he noted, is that “the insurance market is as soft as I have seen it. They are pricing deals to generate cash.” Tizzard, unlike most of his counterparts, believes that the market could begin to improve as early as next year due to the new administration’s commitment to the energy industry. If oil prices improve to the $50 to $60 a barrel range, he thinks things will get started again because many operators can make money at those prices. OSV/PSV MARKET When you talk to OSV/PSV owners, the conversations essentially mirror those of crewboat operators. Matthew Rigdon at Jackson Offshore Operators, Houston, said an increase in global oil demand is needed to stimulate the market. Otherwise, he doesn’t see any ramp up on the drilling side in the Gulf. Rigdon counts around 24 working U.S. Gulf rigs at present but believes two will leave the market by the end of the year. Day rates, he said, have remained fairly stable of late www.workboat.com • MAY 2017 • WorkBoat

4/6/17 5:15 PM

David Krapf

but sustained oil prices of $45-$50 will place downward pressure on day rates from oil and gas operators. Rigdon discussed a changing utilization market, referred to as a “pool” model, where vessels are no longer dedicated to specific activities but utilized for “jobs at hand.” And operators are moving vessels out of the missions they were designed for. If an owner can charter a vessel for things other than its design focus, such as subsea intervention versus platform supply, they are willing to make light upgrades (small cranes, etc.) to move them into other markets/jobs. Looking ahead, Rigdon sees an industry with operators constantly trying to make their vessels more competitive. And, he noted that Jones Act vessels that have moved out of the market are unlikely to come back. This applies especially to lower spec vessels that have been displaced. Looking back, IHS Markit’s Sanchez

Marine Transportation Services has 14 vessels in its fleet, five of which are stacked and for sale. The company’s Queen Craft Shipyard built the Kimberly D in 2014 and has built or rebuilt each of MTS’ other crewboats.

noted that the workboat industry’s recovery after the Deepwater Horizon moratorium was a “perfect storm.” Most stacked newbuilds entered the market at the same time, a market in which there were not enough boats because the Gulf OSV supply had shrunk. But that market did not last long — oil prices plummeted as shale oil hit the market. The resulting market in deepwater, Sanchez believes, may finally rebound after 2020.

Until then, although oil prices should increase by 2018, day rates may not recover due to oversupply, except for customers of the major oil companies. The majors, Sanchez said, “often have higher assurance standards. Therefore, they pay a bit more but not everyone can work for them.” Outside the super majors, the rest of the oil and gas operators has market income below operating expenses and currently cannot contribute to an upturn. This forces

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Anchor-‐Handling Vessel UFlizaFon 12

GULF SPECIALTY MARKET A new sector of the Gulf market is evolving. This market incorporates specialty vessels designed to carry out jobs that involves more than hauling cargo or mud or deploying anchors. This vessel class is characterized by Bordelon Marine Inc.’s fleet of three ultralight intervention vessels (ULIVs). “These vessels, equipped with all the equipment required for subsea intervention, including cranes, ROVs and LAR (launch and recovery) systems and a helideck, are a response to clients who are in a position to ask for more,” said Wes Bordelon, president and CEO of Bordelon Marine, Lockport, La. The vessels, known as Stingray series 260s, are an example of “all suppliers giving their best equip-

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vessel day rates down to cost, or lower. Compounding low day rates are the oil and gas operators’ new demands for soft contracts with escape clauses.

Data Courtesy IHS Markit

ment,” Bordelon said. “They are also a response to our emphasis on high-spec, high standard vessels.” Looking ahead, Bordelon said, “the shelf is not in play today but is stabilizing. Purging has happened with shelf players and the shelf has realigned more quickly. We thought that 2017 would see volatility but, with a reasonable floor of $50, maybe we were wrong.” With regard to the oil and gas operators, “they are asking for it all, and they can have it.” Bordelon said that recovery of the Gulf vessel market would require an oil price above $50. But, he noted, shale intervenes at $50, and that “is a new paradigm and maybe we can’t predict stability.” In this environment, “companies can stand another year or two but not forever,” Bordelon said. Recovery will be difficult, and it depends on company size. Bringing one or two vessels out of short stack is not a big deal but larger

Mid-March data from IHS Markit shows the deterioration in utilization rates in both the platform supply vessel and anchor-handling markets.

companies will have trouble bringing longer stacks out. Bordelon agreed with crewboat operator Whitfield, that talent loss is a big problem. “It is insidious and it exists,” he said. The problem is that the second and subsequent generations of laid off workers go elsewhere. It is a problem that will last for years. Bordelon is generally positive about a recovery. Like Stanley, he sees a light at the end of the tunnel, but “it is way down there.” Until the train emerges from the tunnel, he said, the key to staying healthy is a reliable, sustainable budget for 2018, and a realigned industry rebuilt through mergers and consolidations. What’s the bottom line? “There is just too much steel out there for the level of activity,” Bordelon said. www.workboat.com • MAY 2017 • WorkBoat

4/6/17 5:24 PM

Mack Boring & Parts Co. Phone: (908) 964-0700 East Coast

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4/4/17 7:23 PM

Seabulk Rotortugs

Triple Play The Rotortug design features three engines for increased maneuverability.

By Ken Hocke, Senior Editor

WB_BG_Seabulk_LINO.indd 36

otortugs have finally come to the U.S. after operating in other parts of the world for some time. Master Boat Builders, Bayou La Batre, Ala., delivered the first of three new 98'6"×43'6"×15'7" Robert Allan Ltd. (RAL)designed Advanced Rotortug (ART 80-98US) tugs to Fort Lauderdale, Fla.-based Seabulk Towing in January. Seabulk is a unit of Seacor Holdings Inc. The new tugs feature triangular propulsion designed to deliver optimum maneuverability. “We went to [Robert Allan] specifically for the Rotortug concept and they met our needs for the U.S. marketplace,” said Anthony Caggiano, Seabulk’s senior marketing manager. With a draft of 18'6", the ART tugs Trident and Triton (the third tug is unnamed) are scheduled to work out of U.S. Gulf and Florida East Coast

ports. Trident is currently working at Port Everglades in Fort Lauderdale. The Triton is set for delivery in June and the final tug will be delivered to Seabulk in late October. Seabulk’s ARTs are designed to bring maximum maneuverability and enhanced safety in escorting LNG tankers and other high-demand applications to the U.S. market. Master Boat has built a series of OSVs for Seacor over the past several years and several for other operators, but the yard was looking at other markets with the offshore service industry suffering from low oil prices and an oversupply of equipment. Master Boat has shown its diversity over the years by building fishing vessels, factory processors and other boats. “Basically, anything that

H. Rick Groen/Seabulk Towing

Rotortugs have three strategically positioned azimuth propulsion units.

www.workboat.com • MAY 2017 • WorkBoat

4/6/17 4:34 PM

NEW CHALLENGE The Trident is the first tug built by Master Boat since the 1980s and the yard had to take a different approach than the one used to build a supply vessel, said Dubroc. “When we accepted the contract we were able to agree that Master Boat would be able to incorporate our construction techniques into the RAL design,” he said. “Working closely with Jamie McCarty of RAL, we were able to make the design easier to build, without changing any of the RAL concepts.” This also involved the installation of equipment that Master Boat had not previously worked with such as Schottel Z-drives, JonRie towing/escort winches, and an Alphatron integrated bridge system. The yard “had to adapt and understand how an escort tug works out in the field, which differs greatly from an OSV,” Dubroc said. Main propulsion comes from three Caterpillar 3512C, Tier 3 diesels, producing 1,910 hp at 1,600 rpm each. The Cats connect to three Schottel SRP

H. Rick Groen/Seabulk Towing

floats,” said Andre Dubroc, the yard’s general manager. “We recently were awarded a contract to build six ATBs which should show off more of our ability to adapt.”

The first of three new Rotortugs is working in Fort Lauderdale, Fla.

1210 Z-drives. The propulsion package gives the tugs a running speed of 12.5 knots. Whereas a typical stern-drive tug provides power from just two drive units, ART tugs have three strategically positioned azimuth propulsion units. This provides full redundancy and increased maneuverability while dividing the installed power among a trio of smaller units that combine for a guaranteed bollard pull of 80 tons, according to Seabulk. Ship’s service power comes from twin Cat engines sparking 150 kW of electricity each. On deck are two JonRie Intertech towing winches. The forward hawser escort winch is a Series 230 outfitted with 450' of Samson 12 2-5/8"×8" HMPE rope. The aft combination towing and hawser winch is a series 500 outfitted with 2,100' of 2.25" wire rope

SEABULK ROTORTUG

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ABOARD THE TRIDENT Coming out of Bayou La Batre in January, the Trident first went to Seabulk’s operation in nearby Mobile, Ala., to be put through the paces. During a ride along, the new tug got its first job — escorting the cruise ship Carnival Fantasy to its berth alongside the Mobile Convention Center. The Trident met up with the cruise ship as it came out of Mobile Bay into the Mobile River. The ship has its own thrusters, but the Rotortug maneuvered into position for an added layer of safety. More for practice than necessity, the Trident’s crew did make up a line for a short time. Once the line was brought back in, the captain turned the tug perpendicular to the cruise ship and followed along sideways as the cruise

SPECIFICATIONS

Builder: Master Boat Builders Designer: Robert Allan Ltd. Owner: Seabulk Towing Mission: Harbor towing and ship assist with escorting duties and emergency towing. Length: 98'6" Beam: 43'6" Depth (Molded): 15'7" Draft: 18'6" Main Propulsion: (3) Caterpillar 3512C, Tier 3, 1,910 hp at 1,600 rpm Bollard Pull: 80 tons Z-Drive: (3) Schottel SRP 1210 with slipping clutch Ship’s Service Power: (2) Caterpillar 7.1, 150 kW Controls: Alphatron Speed (knots): 12.5 Hull Construction: Steel

www.workboat.com • MAY 2017 • WorkBoat

and 450' of Saturn 12 2-5/8"×8" HMPE rope.

Crew Capacity: 6 Capacities (gals.): Fuel, 52,000; water, 5,000; main engine oil, 865; gear oil, 865 Electronics: (3) Icom M506 VHF marine transceiver; Ocean Radar: XBand JMA-5212; River Radar: 3CM JMA-610-7; Echo Sounder: JFE380-25; Autopilot: Alphatron-Alpha Seapilot MFC; AIS: JRC JHS-183; BWNAS: Alphatron Ancillary Equipment: Jonrie Intertech forward hawser escort winch series 230 with 450' Samson Saturn 12 2-5/8"-dia., 8" circumference HMPE rope; AFT combination towing and hawser winch series 500 outfitted with 2,100' of 2.25" wire rope and 450' of Saturn 12 2-5/8"-dia. HMPE rope Classification/Certification: ABS Maltese Cross A1, AMS, UWILD, Unrestricted Navigation Delivery Date: Trident, January 2017; Triton, June 2017; TBD, October 2017

4/6/17 4:34 PM

ship was making better than five knots. “This tug can go up to 8.5 knots sideways,” H. Rick Groen, Seabulk’s senior vice president and CEO, said. With the Carnival Fantasy safely docked, the Trident headed back to its berth, drawing curious eyes from other tug crews as it made its way along the river. “This tug has no skeg. There’s no need for one on this vessel,” said Groen. “We could lose a drive unit and still continue with the two units still functioning and have a bollard pull of 51 tons.” Once back at the dock, two people from nearby Austal USA came aboard and the Trident went back out into the river and ran sideways, then did 360° donuts, first one way and then the other. When the Rotortug returned to the dock the second time, more people from other companies hopped aboard to see the new boat. About 15 minutes

Ken Hocke

Seabulk Rotortugs

Capt. Steve Rotert at the controls of the Trident.

later, word came down that Trident had another job scheduled for that afternoon — escorting a containership to the port of Mobile’s container facility. Trident has found a home at Port Everglades and is a hit with Seabulk’s captains and even its competitors. “Each captain has their own way of running the vessel but so far all reports

have been positive,” said Caggiano. “The pilots will need some time getting use to her but once they are comfortable she will really be a valuable asset to our Port Everglades harbor assist fleet. We’ve had our competitors onboard and they are highly impressed, which is a huge compliment to us.”

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WB_FULLS.indd 39

4/5/17 11:32 AM

Wireless Connectivity

Wire Act

The workboat market is becoming more receptive to wireless.

By Michael Crowley, Correspondent

WB_BG_Wireless_LINO.indd 40

hen designing an electronics package for a workboat, it usually involves figuring out how to most efficiently wire everything together. Well, it still does and there’s still plenty of wire. But there’s a growing trend now to ditch some of that wiring and move towards wireless connectivity by taking advantage of such things as sensor technology, smart devices, open architecture hardware and software, Wi-Fi and Bluetooth. There’s been more of an effort in the recreational market to turn these technologies into forms of wireless connectivity, but that is changing. Raymarine introduced an MFD (multifunction display) in 2011 with standard Wi-Fi connectivity that allows networking with a smartphone and apps. Since 2012, Furuno has had an MFD with Wi-Fi connection, allowing the MFD to be controlled from a tablet or smart device, and now cloud compatibility is being introduced. Raymarine introduced its Quantum CHIRP ra-

dar with Wi-Fi connectivity last year. The scanner requires a power line, but not “a heavy interunit cable,” said Jim McGowan, Raymarine’s marketing manager. The primary market is the pleasure boat operator, but McGowan said it “would be great for a 30- to 40-foot workboat.” Also, taking advantage of its small size and light weight, it could be a portable, auxiliary sensor on a large towing vessel. The wireless link is good for more than 100 yards. Wireless is popular “with recreational boats but certain areas of wireless are getting more popular with commercial boats,” said Eric Kunz, senior project manager at Furuno. One example is when a captain is able to download basic vessel data on an Android or iPhone. “You don’t have to turn on a machine, just look at your phone and run through a checklist of everything that needs to be done before you get going and cross referencing that to the vessel’s system,” Kunz said.

Tore Stensvold

Capt. Torleif Bakken in the wheelhouse of a Bastø Fosen ferry using the REX traffic management app to keep track of other vessels in Norway’s Oslo Fjord.

www.workboat.com • MAY 2017 • WorkBoat

4/5/17 4:34 PM

www.workboat.com • MAY 2017 • WorkBoat

WB_BG_Wireless_LINO.indd 41

installed on a containership so Edesix VB-300 body worn security cameras with Wi-Fi connectivity could be used to monitor the vessel, giving the crew better surveillance and control of onboard access. Using a satellite connection, the images could also be viewed from an onshore location. On another vessel the Setel PowerLine network was installed to troubleshoot onboard problems. Incorporating Alphatron’s Alpha-Eye wearable camera system and monitoring software platform and a dedicated communications link with the vessel’s home office meant that error analysis and problem solving could be achieved in minutes with the visual feed and communications link. ROUTE MANAGEMENT A route-management tool that utilizes a standard mobile device via a server on the boat is REX (route exchange app). The REX app runs with the Open Bridge Platform (OBP), an open source software, and the Maritime Cloud communications framework. REX has definite safety benefits and “there are opportunities for double-digit fuel savings,” said Jay Shaver, principal product engineer with Marsec Inc., a Silicon Valley company in Palo Alto, Calif., that developed the REX app. REX was tested on Bastø Fosen AS ferries in the Horten-Moss Strait, part of Norway’s Oslo Fjord. It is said to be the most heavily trafficked strait in Norway. REX uses Wi-Fi data from a vessel’s onboard sensors to provide real-time information to a vessel’s skipper, as well as to other vessels able to communicate route exchange data. In the case of a company-operated fleet, such as Bastø Fosen’s five ferries, other captains and an onshore operator can keep track of the ferries and their intentions with a dynamic ETA display that shows where vessels will be at a given moment. Providing a techni-

Marsec Inc.

TARGETING WORKBOATS Expect companies like Raymarine and Furuno to make more inroads into the commercial wireless market. In the meantime, Setel PowerLine Ltd., Norcross, Ga., whose market has primarily been bluewater ships such as oil tankers and containerships, wants to move into the workboat market. “Legacy wise, our customers are merchant, oceangoing vessels,” said Greg Henderson, managing director at Setel PowerLine. But last year, Setel took its act to the International WorkBoat Show in New Orleans, where they had “some good conversations” with workboat operators, he said. The company hasn’t “done a lot with workboats, per se,” but Henderson points out that the technology used on workboats is exactly the same as that used on merchant ships and “it’s totally applicable.” It’s IP based and uses the existing electrical structure to create a vesselwide network, so it doesn’t matter what type of vessel it’s matched up with. Anything can be monitored and passed along the system, as long as it’s IP or digital, and it can be “accessed off the ship,” said Henderson. “Then management has visibility into not just one ship but across the fleet to make decisions.” Start by connecting Setel’s Internet gateway device or master unit to the main electrical distribution board. That injects a digital signal wherever there is power throughout the boat. A connection point electric (CPE) slave unit that accepts IP units, such as PCs and monitoring devices, can then be plugged into a socket or plug in the Setel Deck WAP (wireless access point) unit to give you a Wi-Fi network. Once the master unit is attached to the distribution board, “it’s like the trunk of a tree that injects digital signals throughout the ship, and it’s plug and play with the WAP unit or CPE,” Henderson said. “It offers extreme flexibility compared to having traditional Ethernet cables all across the vessel.” In one case, a Setel network was

A screenshot of REX shows a green arrow that represents the user‘s vessel, with a green line along its intended route and numbers for each waypoint. The yellow arrows represent other AIS traffic.

cal profile for each ferry, including how long it takes a particular ferry to accelerate and decelerate, helps REX accurately monitor a company’s fleet. Anyone on the boat can log into the system from anywhere. Shaver cited a Color Line 2,700-passenger ferry that runs between Norway and Germany. The captain can be anywhere on the boat and log into the system with his smartphone. “He can check the estimated time of arrival in port, waypoints and traffic in the area,” said Shaver. “And he can make sure they are moving along appropriately on the most fuel efficient route.” For a course change, instead of getting on the VHF and telling another skipper he is altering course, the captain can use a drag-and-drop interface on the screen that informs other captains what he is up to. That reduces confusion when talking on the VHF, which could result in a collision. The OBP lets you add to REX’s functionality. For instance, during Norway’s winter, a shore-based radar can display ice floes and share that image as a layer in the app. The REX app “helps to give a common view and common situational awareness across the space,” Shaver said. 41

4/5/17 4:37 PM

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Ahead Sanitation Systems Inc...........38 Basler Electric...................................14 David Clark Company Inc..................12 Duramax Marine LLC.....................CV3 Eastern Shipbuilding Group...............21 ExxonMobil Marine Fuels & Lubricants..........................CV2 Fred Wahl Marine Construction.........39 Fremont Maritime Services..................4 Furuno USA.......................................15 Hamilton Marine Inc.............................2 Harken Inc.........................................32 Imtra Corp.........................................17 Jackson Offshore Holdings LLC..........5 JMS Naval Architects...........................6 Karl Senner, LLC............................CV4 Louisiana Cat.....................................13 Marine Machining & Mfg....................24 McDermott Light & Signal..................25 Mitsubishi Turbocharger and Engine America, Inc...................35 Motor-Services Hugo Stamp Inc..........7 MTU America Inc.................................3 Power Panels, LLC............................18 Research Products/Blankenship........18 R M Young Company.........................20 R W Fernstrum & Company............... 11 Sheaves Inc.......................................34 Smith Berger Marine Inc....................20 Thrustmaster of Texas.......................33 TMS - LevelCom................................10 Walker Engineering Enterprises..........9 Washington Chain & Supply Inc........24 West Kentucky Community & Technical College...........................38 Yanmar America................................29 ZF Marine..........................................19

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LOOKS BACK MAY 1967

• Kept under wraps at Bethlehem Steel Corp.’s shipyard in Baltimore where construction is almost complete, Johns Hopkins University’s first oceangoing research vessel is one of the most significant multihull design and engineering projects to date. Costing more than $1.5 million, the 150-ton floating laboratory was designed by George E. Meese,

Naval Architects and Marine Engineers, Annapolis, Md. Two 1,150-hp Cummins diesel engines will give the vessel an 18-knot cruising speed, with a top speed of 23 knots. Cruising range is 1,000 miles, including facilities, to operate one month on station. • The first crewboat to be built by the Gulf Coast’s newest shipyard, Camcraft Inc., Crown Pointe, La., has been purchased by one of the oil industry’s MAY 1977 newest offshore ser-

vice vessel operators, Allied Crewboats of Golden Meadow, La.. The 61' all-alluminum Mr. Louis, named after Allied Crewboat’s Louis Chabert, is one of the fastest crewboats of its size.

• The Corps of Engineers has recomimpacts, he does not favor completion. mended terminating all activities leadThe state of Florida opposes compleing toward completion of the 107-mile tion of the project, which is approxiCross-Florida Barge Canal Project. mately one-third complete and includes In making his recommendation to the 25 miles of channel, three of the five secretary of the Army, Gen. John W. locks, three dams, and four relocated Morris, chief of engineers, concluded highway bridges. that construction of the canal is feasible from an engineering standpoint, but economic justification is marginal and, when combined with the potential adMAY 1987 verse environmental • Harry N. Cook, president of the National Waterways Conference Inc., urged members of the House Energy and Water Development Subcommittee to fund inland waterway, port and flood control programs “in a timely, efficient manner” now that non-federal sponsors are picking up a substantial share of the project costs. Cook told lawmakers that they should give priority to port and 48

WB_LooksBack_LINO.indd 48

flood control projects for which local cooperation agreements have been negotiated and inland navigation projects that will receive half their funding from waterway fuel tax revenues. • Nichols Brothers Boat Builders Inc., Whidbey Island, Wash., is building a 1,600-hp 85' film, dive and underwater research vessel for White Water Excursions, San Diego. www.workboat.com • MAY 2017 • WorkBoat

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