December 2014 Marine Log

VOICES OF THE INDUSTRY: Thought leadership

arine oG M L Reporting on Marine Business & Technology since 1878

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DECEMBER 2014

Distinctive Ships

Who are the Award-winners for 2014?

OFFSHORE Global deepwater outlook SHIP REPAIR Singapore yards positioned for growth METHANOL Stena's big switch

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contents

December 2014 Vol. 119, NO. 12

Special Supplement

12

With U.S. crude oil prices dropping to their lowest level in five years, what’s the outlook for deepwater drilling next year?

features 12 Offshore

The global deepwater outlook

Analysts report that substantial growth outside both Brazil and the U.S. Gulf of Mexico is expected for deepwater production, including developments offshore Africa and Europe

14 Ship repair

Singapore’s shipyards are poised for growth

Restructuring of shipyards could position them for the growing floating energy market as LNG popularity is on the rise

17 Atlantic maritime

The ripple effect

The Panama Canal expansion, the shale oil revolution and cuts to the U.S. Navy’s budget will all have an impact on maritime business in the U.S. Northeast

22 Distinctive Ships

Award winners of 2014

This year’s winning ships represent a diverse portfolio of innovative coastal, offshore and oceangoing vessels, with a special focus on fuel efficiency and cleaner designs

departments 2 Editorial What does the year ahead hold?

5 Inland waterways Shutdown showdown

6 Update • Vigorous takes on its first ship • Ferry industry welcomes more flexibility on ferry LNG tank location • Redesign grows ECO/Island Offshore OCV newbuilds • Sewol operator CEO gets 10-year prison sentence

Thought leaders from a diverse group of marine companies—experts in their respective fields—discuss current marine market trends, business concepts, and practical solutions to some of the most challenging issues faced by industry in this annual pull-out supplement

• America’s Finest will be most eco-friendly trawler yet • Eleventh FRC delivered to U.S. Coast Guard • World’s largest LNG-powered PSV delivered

11 Washington Senators: It’s time to fund harbor and waterway maintenance needs

26 Newsmakers Tsakos takes helm at Intertanko

27 Tech News BP looks to robot technology to enhance oil recovery

28 Contracts Derecktor delivers research vessel

32 Environmental forum A great success story, if only the world would listen

December 2014 MARINE LOG 1

editorial

What does the year ahead hold?

The end of the year is always marked with reflection and introspection. Did I accomplish everything that I set out to do this year? What can I do better next year?

I’ve always been much better at procrastination, than prognostication. That’s why I have to tip my hat to the chief executives profiled this month in our special pullout section, Voices of the Industry. Voices of the Industry is a collection of thought leadership articles from a diverse group of marine executives, each a trusted expert in their respective fields—whether it’s engine, equipment or specialty product manufacturing, salvage, shipbuilding, or regulatory compliance. Each CEO discusses how they see the future unfolding, outlining the goals of their own organizations and their plans for meeting the challenges of a very competitive marine business environment. The common threads for each organization always wind around one of the “Triple E’s”—Energy (exploring for it, generating it or conserving it), Environment (helping preserve it, helping others comply with regulatory requirements or operating in a sustainable manner) and Economy (improving the bottom line, whether it is their own or their clients). Those threads will be an intricate part of the fabric of the market in 2015.

As sure as the sun will rise, for instance, one of the things that will happen when we ring in the New Year is that emissions standards will get even stricter. January 1, 2015

will mark the next phase in emissions compliance, requiring 0.1% sulfur fuel to be burned in Emissions Control Areas. Right now, most operators have looked at three methods of complying with ECA regulations: burning distillate fuel, burning Liquefied Natural Gas (LNG) as fuel or installing exhaust gas scrubbers.

Other alternative fuels are also being considered. As we report in this month’s Update section, Sweden’s Stena Line is converting one of its large cruise ferries to operate on methanol. Methanol is a clear, colorless biodegradable fuel that can be produced from natural gas, coal, “biomass,” or even CO 2.

Burning methanol in a dual fuel engine cuts sulfur (SOx), nitrogen (NOx), particle matter, and CO2 substantially as compared with HFO. The cruise ferry Stena Germanica will be converted starting in January 2015. Engine manufacturer Wärtsilä and methanol giant Methanex Corporation are both lending their expertise to the project, with additional funding through the European Union’s Motorways of the Seas initiative.

What does the energy landscape look like in the next 10 years? How about burning liquid hydrogen? Earlier this year, Navy researchers at the U.S. Naval Research Laboratory announced they had come up with a process to extract CO2 and H2 from seawater and create a liquid hydrogen fuel to power a radio-controlled aircraft. The U.S. Navy thinks some of its ships could be

John R. Snyder, Publisher & Editor jsnyder@sbpub.com

fitted with the “game-changing technology” to create the fuel in about a decade.

For right now, however, fossil fuel will continue to dominate the energy landscape and a good chunk of that will be produced in deepwater and ultra deepwater offshore.

That market will account for almost half of the capital expenditures in the offshore market in 2015, according Infield Systems Limited. Activity in the U.S. Gulf of Mexico will still be steady, with some 24 operators expected to direct their investments towards deepwater projects over the course of 2015, with the largest investments forecast to be by Shell. Anadarko and ExxonMobil will also be in the mix, with developments including Heidelberg, Hadrian South and Julia.

One emerging area is Mexico’s deepwater market, which is expected to make up 6% of the regional deepwater investment—up from virtually nothing now. You can read more about it on page 12.

In this issue, we also unveil the winners of our Distinctive Vessels of 2014 as nominated by you and selected by our editorial team.

Among them are the Harvey Energy, the first dual fuel Platform Supply Vessel built and flagged in the U.S. A pioneering vessel, once she goes into service, the Harvey Energy will be the largest of her type in the world.

Best wishes to you for a Happy and Healthy New Year. Thanks again for being a loyal reader and if you like you can follow me on Twitter at @marine_writer.

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4 MARINE LOG December 2014

inland waterways

Shutdown Showdown Waterways Council, Inc. (WCI) and its agricultural and other commodity shipper members and towboat operators reacted strongly to the U.S. Army Corps of Engineers’ decision to perform routine work that involved laying concrete mats on the river bank for flood protection. The work began early last month and required traffic restrictions for towboats moving barges and other vessels.

A three-mile stretch of the Mississippi River near Memphis at Mile Marker 632635 was closed at 6 a.m. on the morning of November 7 for the Corps to begin this work and additionally to survey the area to determine if barges could safely traverse the channel during daylight hours. With little proper notice to operators and shippers— just 36 hours—the Corps’ work performed at this time of year impeded transportation on the nation’s busiest waterways during the most critical part of a record harvest season.

Tows of between 30-40 barges fully laden with grain were moving down-river to the export market, and salt and other commodities moving up-river during the time of this closure. With harsh winter weather socking in the upper river system, the industry

continues to race against time to cycle barges as quickly as possible to transport as much grain as weather allows.

The Corps committed to clearing the queue of waiting towboats, to moving navigation buoys to widen the channel, and to allow north-bound traffic to move during day-light hours and south-bound traffic to move at night.

But the impact was still felt hard by industry. The Wall Street Journal noted (13 Nov. 2014 “Barge Slowdown Clogs Mississippi, Shippers Say,” Market Talk) that the maintenance work “bogged down the roughly 2,500 barges currently traversing the Mississippi river, forcing boats to wait an average nine hours each to get through the worked-on patch.” … Industry executives “estimate(s) the river-shipping industry collectively has lost 914 days’ worth of barge transport time due to the snarls.”

And even harder hit was the agriculture industry. The Wall Street Journal reported that “Corn farmers in the upper Midwest have suffered from lower grain prices resulting from congested railways, and now some Illinois farmers confront a similar problem due to bottlenecked barges.

Michael J. Toohey, President/CEO, Waterways Council, Inc.

Rodney Weinzierl, executive director of Illinois Corn Growers Association, estimates that cash prices for corn in Illinois fell 13 cents a bushel after barge traffic slowed around Memphis, where the US Army began river-maintenance work late last week. The decline offsets extra costs for grain-shipping companies, which quote prices for physical corn as their barges sit idle. Financial hit to IL corn farmers works out to roughly $850k a day since delays set in, Weinzierl says.”

WCI has urged the Corps to communicate more effectively with industry and shippers on upcoming maintenance work and closures, as this announcement was not made clear. The working river is a supply chain logistics network that requires advanced notice to reroute shipments or account for delays. Communication and partnership between the Corps and the waterways industry remain critically important.

This shutdown-slowdown-showdown could have been avoided. Moving forward, America’s shippers need a voice at the table of collaboration with their U.S. Army Corps of Engineers partners. In this age of “customer focus,” I am sure our Midwest farmers would say, “Amen!” ■

U.S. Army Corps’ work impeded transportation on the Mississippi during a critical part of a record harvest season

December 2014 MARINE LOG 5

UPDATE biz notes Halliburton and Baker Hughes $34.6 billion merger

Vigorous takes on its first ship The resurgence of Portland, Oregon’s maritime industry was on full display last month when the SS Algol became the first vessel to be loaded onto North America’s largest drydock, Vigor’s new 960 ft drydock, the Vigorous.

The work on the Algol will directly create 150 project related jobs for the Oregon and Southwest Washington region.

The 946 ft ship and its sister ship, the SS Capella, which is currently awaiting repairs at Vigor’s Swan Island yard, are Fast Sealift Ships (FSS) operated by the United States Maritime Administration (MARAD) for the Military Sealift Command. Government projects such as the Algol and Capella, along with post-Panamax vessels, are exactly the kind of projects CEO Frank Foti had in mind when he made the $50 million dollar investment in building the Vigorous.

“The new drydock is a strategic investment for Vigor and will allow us to meet future demand, grow our business and put more people to work across the Pacific Northwest,” said Foti. “Manufacturing jobs matter because they provide opportunities for people who build things with their hands to earn family wages.”

“The new dock will give us the opportunity to bid [on] several MARAD projects a year,” says Dave Byers, Vice President of Ship Repair for Vigor. “Without the Vigorous, this work would have never come to Portland.”

According to a 2013 MARAD report, 60% of projects at shipyards are government jobs. “Ships like the Military Sealift Command’s vessels are getting larger, while capacity has tightened up because other drydocks on the west coast have gone out of service,” says Foti.

The world’s second and third largest oilfield services providers, Halliburton Company and Baker Hughes Incorporated, have reached a definitive agreement that will see Halliburton acquire all of Baker Hughes’ outstanding shares in a stock and cash transaction.

The transaction is valued at $78.62 per Baker Hughes share, representing an equity value of $34.6 billion and enterprise value of $38.0 billion, based on Halliburton’s closing price on November 12, 2014, the day prior to public confirmation by Baker Hughes that it was in talks with Halliburton regarding the merger.

On completion of the transaction, which is expected to close in the second half of 2015, Baker Hughes stockholders will own about 36% of the combined company. The agreement has been unanimously approved by both companies’ Boards of Directors. Baker Hughes stockholders will receive 1.12 Halliburton shares plus $19.00 in cash for each share they own.

Halliburton Chairman and CEO Dave Lesar said the combined companies would “create a bellwether global oilfield services company.” Lesar said the deal would “combine the companies’ product and service capabilities to deliver an unsurpassed depth and breadth of solutions to our customers, creating a Houston-based global oilfield services champion, manufacturing and exporting technologies, and creating jobs and serving customers around the globe.”

FERRY INDUSTRY WELCOMES more flexibility on ferry LNG tank location Ferry industry trade association Interferry has welcomed a decision by the IMO Maritime Safety Committee meeting (MSC94) setting out rules for the location of fuel tanks on LNG-fueled ferries. It says that the decision will safeguard further development of the LNG fueling option.

Key member states agreed on a way forward that offers impact protection of the tanks in the event of collision or grounding while avoiding the potentially prohibitive requirements of other proposals.

Until now, the IMO’s efforts to avoid damage to LNG tanks, and consequent fire hazard, have focused on the placement of the tanks according to a mix of prescriptive rules and sophisticated calculation models.

6 MARINE LOG December 2014

This has caused increasing concern among ship designers and owners because LNG is more voluminous per energy content than conventional fuels and therefore needs bigger tank systems. This approach would have limited the onboard tank capacity, forcing more frequent refuelings.

Now ship designers have been given two options for fuel tank location. One allows ferries and other ships to make use of the same rules that large LNG tankers have been operating under for decades without any LNG-related accidents. Under this traditional approach, LNG fuel tanks must be placed at a distance from the hull of at least 20% of the width of the ship, minimizing the chance of them being hit in a collision.

The other is that the tanks can be located closer to the hull if the placement can be made equally safe through measures such as making the tanks shorter to distance them from a potential strike area.

“While we strongly advocate safe designs and solutions, we also support the development of new technologies that will help increase the sustainability of our industry,” says Interferry Regulatory Affairs Director Johan Roos. “The IMO decision provides a predictable framework for the protection of LNG tanks and removes concerns over rules that, in effect, would have made LNG non-accessible as a fuel for ferries due to too restrictive requirements on tank location and size.”

Inland • Coastal • Offshore • Deepsea

The Stena Germanica will be the first large ferry operated on methanol

Stena to operate cruise ferry on methanol One of the world’s biggest ferry companies, Sweden’s Stena Line, says it is to become the first operator in the world to run a large 1,500 passenger ferry on methanol, drastically reducing emissions as compared to standard fuel.

Stena Line has decided to convert the 240 meter long ferry Stena Germanica to run on methanol in early 2015. The project is being carried out in cooperation with Wärtsilä, the Port of Gothenburg, the Port of Kiel and the world’s largest methanol producer and supplier Methanex Corporation.

Stena Germanica will be converted at Remontowa Shipyard in Poland starting January 2015. The process is expected to take six weeks and is financially supported by the EU “Motorways of the Seas” initiative. The total project cost is about EUR 22 million.

“At Stena Line we are extremely proud of contributing to the development of our industry. Our focus has always been on innovation for the benefit of both customers

and society at large and this is a prime example when this goes hand in hand. We are constantly evaluating different fuels for the future and to be first in the world with a methanol conversion is a big step towards sustainable transportation.,” says Carl-Johan Hagman, CEO of Stena Line.

Wärtsilä has developed the new engine conversion kit and ship application in cooperation with Stena Teknik. The dual fuel engine will use methanol as the vessel’s main fuel grade but will have the ability to burn MGO (Marine Gas Oil) as a back-up.

Methanol is a clear, colorless biodegradable fuel that can be produced from natural gas, coal, “biomass,” or even CO2, says Stena.

Methanol plays a key role in the energy sector as a clean and cost competitive alternative fuel and energy resource. By using methanol emissions of sulfur (SOx) will be reduced about 99%, nitrogen (NOx) 60%, particles (PM) 95% and carbon dioxide (CO2) 25% compared with today’s fuel.

South Korea’s Gwangju District Court has imposed a 10-year prison sentence on Kim Han-Sik, CEO of Chonghaejin Marine Co., the operator of the ferry Sewol, which sank April 16, causing the loss of over 300 lives.

Yonhap news agency reports that Kim was found guilty of involuntary manslaughter, violating the law on safe maritime navigation, embezzling company funds worth tens of billions of won and taking kickbacks worth tens of millions of won from subcontractors.

“Kim remodeled the ship and overloaded it with cargo in an effort to overcome the company’s deficits despite being briefed that the ship’s ability to balance itself was compromised,” Yonhap reports Judge Yim Jung-yeob as saying in his ruling.

The judge said that Kim had secretly transferred funds to the family of Yoo Byung-eun, the effective owner of Chonghaejin Marine whose decomposed body was found in a field June 12 after he had eluded a manhunt.

The court imposed prison sentences of three to six years on other Chonghaejin Marine executives, much lighter than those imposed earlier on the captain and crew of the Sewol.

Captain Lee Joon-seok was sentenced to 36 years in prison for abandoning passengers.

Thirteen other crew members were given prison terms ranging from five to 20 years.

The ship’s chief engineer was sentenced to 30 years in prison and found guilty of murder for leaving behind two injured crew mates.

The captain and crew members have all appealed those sentences and prosecutors have also appealed, seeking harsher punishment.

The redesign of the ECO/ Island Offshore OCV newbuilds will increase their length to 159.8m

redesign GROWS ECO/Island Offshore OCV newbuilds Production may be in full swing at Norway’s Ulstein Verft on the first of two giant SX165 design construction vessels ordered by Edison Chouest Offshore and Island Offshore through Island Ventures II LLC, but a recent redesign in the engineering phase will push delivery back to the fourth quarter of 2015.

The redesign has resulted in an increase in both the length and beam of the ships. The original design stated the vessels dimensions were 145.7 m x 28 m; the redesign will make the vessels slightly larger at a length of 159.8 m and a beam of 30 m.

Sections for the ship (hull 302) have already arrived at the Ulsteinvik shipyard and Ulstein

Sewol operator CEO gets 10-year prison sentence

says its shipbuilders are “getting to practice big scale Lego construction in the dock hall.”

The deadweight will be about 14,000 tonnes, resulting in increased deck area and tank capacity.

Presumably the second ship, which will be built at Edison Chouest’s LaShip shipyard in Houma, LA, will also be built to the new, larger size.

The total steel volume is about 8,800 tonnes—about the same as five platform supply vessels. Of this volume, Ulstein Verft’s department in Vanylven will produce 1,520 tonnes—the largest steel volume delivered to one project from this department.

Most sections for the fore ship are now ready to be assembled and outfitted at Ulstein Verft.

December 2014 MARINE LOG 7

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America’s Finest will be most eco friendly trawler yet Built to produce frozen-at-sea white fish products and groundfish, the new freezer trawler America’s Finest being built

by Fisherman’s Finest, Kirkland, WA, will be its “most environmental and carbon footprint friendly vessel to date.”

The 261.8 ft America’s Finest has been designed to operate within the parameters set by Amendment 80 to the Bering Sea and

Aleutian Islands (BSAI) Fishery Management Plan.

The vessel, based on an ST-1166 XL design from Norway’s Skipsteknisk AS, will be built at the Dakota Creek Industries shipyard in Anacortes, WA. Delivery is expected November 2017.

The ship will operate in the North Pacific, Gulf of Alaska and Bering Sea inside the U.S.

Exclusive Economic Zone (EEZ).

It will be equipped with a MAN 8L32/44CR engine—the first CR engine sold to the American fishing segment that is fully EPA Tier II-compliant. Ordering a fourstroke engine, says Robert Burger, Managing Director, MAN Diesel & Turbo, USA, shows that Fisherman’s Finest “recognizes the commercial advantage it can gain from our common-rail technology that is fully integrated with the engine and has best-in-class fuel efficiency accompanied by low emissions.” The common-rail technology cuts emissions of PM and NOx at all possible engine operating points.

America’s Finest will be built to class DNV GL rules for fishing vessels including clean class, and will have the hull notation +A1, Ice 1B. The hull shape reduces resistance when sailing in ice or on the open sea.

The vessel, fully rigged for pelagic and bottom trawling, will be outfitted with three working cranes and electronically driven winches for regeneration of power.

This move towards electronically driven machinery allows for improved operational performance on board the vessel, with less power installed; lower installation costs, elimination of pipes and onboard oils, simplification of on board systems, improved noise levels, and savings in fuel costs.

Lake Assault Boats expands to new HQ In order to capitalize on its recent rapid growth, Lake Assault Boats has expanded to new headquarters on the grounds of Fraser Shipyards, at the westernmost tip of Lake Superior’s Twin Ports of Superior and Duluth, MN. Lake Assault Boats manufactures mission-specific boats for fire protection, law enforcement, public safety and research agencies, as well as commercial marine industries.

The expansion will see the company’s workers move into a new threestory, 15,000 ft 2 building—where the company will occupy the top floor.

According to Lake Assault President and Chief Operating Officer Kevin Bakke, manufacturing capacity will increase by 60% while the staff size will increase by 30% to meet demands.

Lake Assault designs and builds customized vessels all from the Lake Superior location. Vessel types include f ireboat s; air boat s; patrol boat s; and workboats.

Eleventh FRC delivered to U.S. Coast Guard Louisiana-based Bollinger Shipyards, Inc. has delivered the William Trump, the eleventh Fast Response Cutter (FRC) to the U.S. Coast Guard.The 154 foot patrol craft William Trump is a Sentinel-class FRC, which has been described as a “game changer” by USCG officials. It is based on a proven, in-service parent craft design, the Damen Stan Patrol Boat 4708.

The Coast Guard took delivery of the ship November 25 in Key West, FL. The vessel will be commissioned next month.

“We are extremely happy to announce the delivery of the latest FRC built by Bollinger, the William Trump, to the 7th Coast Guard District in Key West, FL,” said Bollinger COO Ben Bordelon.

Each FRC is named for an enlisted Coast Guard hero who distinguished themselves in the line of duty. This vessel is named for Motor Machinist’s Mate First Class William Trump. Because of his valor in action in the assault phase of the landing at Normandy, William Trump was awarded a Silver Star.

Trump, who had lied about his age, and enlisted in the Coast Guard in 1942 at 17 years old, had to make his way past heavily mined beach fortifications, while under heavy enemy fire, to set an anchor line for troops to follow. His helmet was creased by a German bullet.

He retired as a Chief Petty Officer in 1965 and joined the Merchant Marine, serving for fifteen years. He died in July 2009 at age 85.

December 2014 MARINE LOG 9

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MARAD GRANT for AEP for new hybrid towboat The U.S. Maritime Administration (MarAd) recently announced the award of a $450,000 grant to AEP River Operations, St. Louis, MO, to convert the 8,000 hp towboat Christopher M. Parsonage into a hybrid vessel. The aim of the conversion is to reduce the boat’s fuel consumption and harmful diesel emissions, such as NOx and SOx. According to MarAd, the modification will provide the 180 ft towboat, which operates along the lower Mississippi River, with a hybrid generator set attached to the main engine that will provide auxiliary power, which would normally be produced from the diesel generator.

Built in 1998, the Christopher M. Parsonage has two EMD 16-710 G7B T2 main engines. She is one of more than 60 towboats in AEP River Operations’ fleet.

AEP River Operations is no stranger to green initiatives. It is a member of the U.S. EPA’s SmartWay Transport Partnership, which aims to reduce the environmental impact of transportation-related operations.

Back in 2011, AEP River Operations worked with dozens of its vendors to modify the towboat Donna Rushing into an environmentally friendly vessel under a “Go Green” project. The project included the addition of everything from LED lighting to EPA Tier 3 compliant engines to burning biodiesel.

The operational results from the Christopher M. Parsonage pilot project will support further work related to vessel air emissions, energy conservation, and efficiency, says MarAd. The study is expected to be completed by 2017.

World’s largest LNG-powered PSV delivered

1-800-363-8026 www.dynamat.qc.ca

10 MARINE LOG December 2014

Norwegian shipbuilder Kleven Verft A/S, Ulsteinvik, recently delivered the 92.2m Rem Eir, what is believed to currently be the world’s largest LNG-fueled Platform Supply Vessel, to Rem Shipping.

Based on a VS 4412 design, Rem Eir will go on long-term charter with Statoil. The Rem Eir has an overall length of 92.2 meters, beam of 20 meters, and deck area of 1,080 m2. The Rem Eir is classed by DNV GL. The main generator sets are Wärtsilä W9L20DF engines that each generate 1,521 kW. Family owned Kleven Verft was the first Norwegian shipyard to receive ISO 14001 environmental certification in April 2013.

Between its Kleven Verft and Myklebust shipyards, Kleven’s current order book stretches in 2017, with 18 offshore service vessels on order. The orders include six Anchor Handling Tug Supply ships, two ESVs, one subsea mining vessel, six Offshore Construction Vessels, one seismic vessel, one PSV, and one Multipurpose Supply Vessel.

The Rem Eir might not hold its title of world’s largest LNG-powered PSV for long.

That’s because the Harvey Energy, which has an overall length of 310 feet (about 94.48 meters), will be delivered shortly by Gulf Coast Shipyards Group, Gulfport, MS, to New Orleans-based Harvey Gulf International Marine. The Harvey Energy, currently going through sea trials and one of MARINE LOG’s Distinctive Vessels of 2014, is the first of six dual fuel PSVs being built

by Gulf Coast Shipyard Group and classed

by ABS. The Harvey Energy is based on a design by Vard Marine, Inc. (formerly STX Marine), with offices in Vancouver, Ottawa, and Houston.

inside washington

Senators: It’s time to fund harbor and waterway maintenance needs Show me the money. That was the message in a letter sent by a bipartisan group of 22 U.S. Senators led by Senator David Vitter (R-LA) to the members of the Senate Appropriations Committee on November 21, urging the continued funding of harbor maintenance in the annual Energy and Water Development and Related Agencies Appropriations Acts.

The letter was addressed to Barbara A. Mikulski (D-MD), Chair of the Senate Appropriations Committee, Senator Richard C. Shelby (R-AL), Ranking Member, Senator Dianne Feinstein (D-CA), Chairwoman, Senate Appropriations, Subcommittee on Energy and Water Development, and Senator Lamar Alexander (R-TN), Ranking Member, Senate Appropriations Subcommittee on Energy and Water Development.

Right now, the Senate Appropriations Committee is negotiating with members of the House Appropriations Committee on finishing the Fiscal Year 2015 annual appropriations legislation that would support a final FY 2015 harbor maintenance

funding level that was authorized under Section 2101(b) of the Water Resources Reform and Development Act of 2014 (WRRDA 2014).

As you might recall, President Obama signed WRRDA into law this past June, after the House and Senate had passed a final WRRDA bill with enormous bi-partisan support. Section 2101(b) of WRDDA established a 10-year path to fully use Harbor Maintenance Tax (HMT) collections for their intended purpose. FY2015 would be the first year of the 10-year plan.

“It would be unfortunate if Congress failed to hit the HMT target just seven months after passing this legislation with overwhelming bipartisan support,” write the Senators in their letter to the appropriations committee. “We also ask that the additional operations and maintenance funding be specifically provided for authorized harbor maintenance purposes.”

Offshore wind development in Massachusetts Meanwhile, the Bureau of Ocean Energy

Management (BOEM), Department of the Interior, will hold a sale for four commercial leases on the Outer Continental Shelf (OCS) offshore Massachusetts on January 29, 2015. The four lease areas comprise the Massachusetts Wind Energy Area (MWEA), which is south of the tract being developed by Cape Wind near Martha’s Vineyard. If developed, MWEA could support about 800 wind turbines that would generate between 4 and 5 gigawatts of power, according to BOEM. There are 12 eligible bidders for the leases.

The 12 companies include: Deepwater Wind New England, LLC, EDF Renewable Development Inc., Energy Management, Inc., Fishermen’s Energy, LLC, Green Sail Energy, LLC, Iberdrola Renewables, Inc., NRG Bluewater Wind Massachusetts, LLC, Offshore MW, LLC, RES America Developments, Inc., Sea Breeze Energy, LLC, US Mainstream Renewable Power (Offshore) Inc., and U.S. Wind, Inc. Up to this point, BOEM has awarded seven commercial wind energy leases for tracts along the Atlantic Coast.

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At Great American, we can make grim like it never happened.

Contact us for hull coverage and a complete line of insurance products for the marine industry. Cap’t Ed Wimot / ewilmot@gaic.com Ocean Marine Division I GreatAmericanOcean.com ©2014 Great American Insurance Company, an authorized insurer in all 50 states and D.C Great American Insurance Group Tower I 301 E Fourth Street I Cincinnati, OH 45202

December 2014 MARINE LOG 11

OFFSHORE

The Global Deepwater Outlook

Now accounts for close to half of offshore capital expenditures

By Catarina Podevyn, Infield Systems Limited

O

nce forming just a minority of global capital expenditure, the deepwater market has rapidly evolved to become a driving force of offshore demand. According to U.K.-based energy analysts Infield Systems Ltd., the deepwater market accounts for 47% of total forecast offshore capital expenditures (capex) in 2015.

Petrobras drives much of this investment requirement, with developments offshore Brazil anticipated to comprise 37% of global demand over the year. However, while Brazil and the U.S. Gulf of Mexico are expected to remain the two foremost countries in terms of reserve additions during the period, Infield Systems’ recently published Deep and Ultra-Deepwater report anticipates substantial growth outside of these traditional areas of deepwater production going forward.

Infield Systems expects eight deepwater fields to come on-stream during the course of 2015 including Iracema North and Argonauta O-South in Offshore Latin America. While all eight developments are anticipated to be located offshore Brazil, following the long-awaited PEMEX reforms that have put an end to the NOC’s monopoly over the country’s petroleum sector, Infield Systems expects capital expenditure 12 MARINE LOG December 2014

within Mexico’s deepwater market to increase from almost nothing over the previous year to 6% of regional deepwater investment by 2016.

Developments in offshore Africa are expected to form the second largest share of deepwater capex demand during 2015. Development will continue to be driven by Angola, accounting for 48% of regional demand during the year. Key projects driving Angola’s leading share are expected to include the West Hub Block 15/16 fields including N’Goma and Sangos, while Infield Systems also expects Total’s Gindungo (Kaombo 1) to see a significant increase in capex demand during 2016. Despite uncertainty surrounding the regulation of Nigeria’s petroleum industry, Infield Systems anticipates the country to remain the second highest driver of regional deepwater capex during the year, with Total’s Egina likely to be the most significant project. Infield Systems also expects Ghana and Congo (Brazzaville) to require substantial spend, with Tweneboa (TEN) and Moho Nord Marine anticipated to be the most capital intensive deepwater developments across the region during 2015.

Within the North American region, a total of 24 operators are

OFFSHORE expected to direct expenditure towards deepwater projects over the course of 2015, with the largest investments forecast to be by Shell, on projects including Stones and further Perdido tie-backs. Other key operators are expected to include Anadarko and ExxonMobil, with developments including Heidelberg, Hadrian South and Julia. In terms of market segment, 47% of deepwater capex for the North American region over the year is expected to go towards subsea infrastructure.

Deepwater spend Offshore Europe has increased considerably over recent years, with the region’s global marketshare of capex demand increasing from 2% in 2012 to a projected 16% by 2015. While the South Stream development is expected to drive the majority of investment, the project is proving highly controversial. Among the recent issues surrounding the development is the compliance of country agreements with EU Law, which will result in project delays going forward. Deepwater capital expenditure offshore Norway is also expected to remain strong over the year, with Aasta Hansteen driving demand.

Elsewhere, Infield Systems expects significant capital expenditure offshore Italy on the Galsi Spa and TAP pipeline developments.

Within the Middle East and Caspian region, Noble’s activities within the Levant Basin have resulted in a significant growth in deepwater demand. Infield Systems expects Tamar SW and the Tamar Phase 2 (King Project) to drive expenditure during the course of 2015, while capital expenditure is also expected to commence on the operator’s Leviathan field. Elsewhere, Infield Systems anticipates BP’s giant Shah Deniz project to see its second phase of development commence during the year, with an additional 16 billion cubic meters (bcm) of gas per year to enter the market once the project comes on stream, currently targeted for late 2018.

In offshore Australasia, Infield Systems expects deepwater capex to be directed towards 10 field developments, with the highest expenditure anticipated to relate to the ExxonMobil/Chevron Jansz field; forecast to demand 51% of the region’s deepwater capex during 2015. Going forwards to 2016, Infield Systems expects the Hess-operated Equus project to commence development, while expenditure is also anticipated to ramp up on the Martell/Remy and Acme/Acme West fields.

As highlighted in Infield Systems’ Asia report to 2019 the growing importance of this region to the deepwater market is becoming more marked. The Asian region is expected to witness significant deepwater growth over the medium term, driven by Malaysia, India and Indonesia. The largest demand during 2015 is to be attributed to the start of work on the Rotan field, where Petronas’ second FLNG facility will be located. Other key projects during the year are likely to include the completion of work on Malaysia’s Gumusut-Kakap project, which saw oil production commence in October 2014. Offshore Indonesia, Infield Systems also expects considerable investment to be required on the multi-field IDD project if agreement on Chevon’s license extension beyond 2020 can be reached, while over the longer

Deepwater Capex demand will remain high in Angola

Global Deepwater Capex (US$M) 2015

by Market Segment ControlLine ControlLine

Platform Platform

17% 17%

SPM SPM

1% 5%1% 5%

48% 48%

Subsea Subsea Completion Completion

Pipeline Pipeline

29% 29%

Global Deepwater Capex (US$M) 2015

by Region Australasia Middle East & Caspian Sea Australasia Middle East & Caspian Sea Asia Asia Europe Europe

North North America America

16% 16%

2%1% 42%%1% 4%

38% 38%

Latin Latin America America

17% 17% 22% 22% Africa Africa

term capex relating to the deepwater Dhirubhai fields offshore India is also expected to contribute substantially to demand.

While demand within the “Deepwater Triangle”—U.S. Gulf of Mexico/Brazil/West Africa—is anticipated to remain strong, 2015 is expected to see demand from new areas of deepwater development increase, with 2016 anticipated to witness further growth outside traditional deepwater hydrocarbon basins. Indeed, 2015 is forecast to see deepwater capex commence offshore Mozambique, with the East African market, along with the emerging Eastern Mediterranean deepwater zone, expected to be key focal points for LNG development going forwards.

Infield Systems’ series of 10 regional wall maps provide a visual representation of deepwater developments and are available on request via the infield.com website as well as at key industry exhibitions— details of our upcoming events are available on infield.com. ■ December 2014 MARINE LOG 13

SHIP REPAIR

Sembcorp is converting the Kaombo Norte into an FPSO for Saipem

Singapore’s shipyards are

By Paul Bartlett, Contributing Editor

poised for growth P

lunging oil prices may have taken some of the pace off the global dash for gas but many energy analysts are convinced that cheap U.S. gas will continue to hold significant appeal for energy-hungry nations, many of them in Asia, over the coming years. This will generate a steady and probably growing demand for various types of floating gas plants, including LNG production facilities (FLNG) and f loating storage and regasification units (FSRU).

There are already vast Liquefied Natural Gas (LNG) export facilities under construction in the U.S.—two of the four trains at Sabine Pass, for example, are due on stream in 2015 with export capacity of 9 million tons a year, a figure that will double when the second two trains are commissioned in 2017. Between then and the end of 2018, four more U.S. facilities are due to start exporting—Cove Point, Corpus Christi, Lavaca Bay and Oregon LNG. 14 MARINE LOG December 2014

It is the shale revolution that has transfor med t he U.S. energ y pic ture, w it h knock-on effects for the global energy mix and the shipping capacity required for its distribution. Now, the U.S. is set to become a net ex por ter of LNG rat her t ha n a n importer. And although there are likely to be many receivers around the world hungry for U.S. gas, a significant number is likely to be found in Asia where gas is viewed as a clean, competitive and attractive option to dirty fuels, including oil and coal.

It is likely that the recent crash in oil prices, down by almost a third since they peaked mid-year, may cool the rate of final investment decisions (FID) and the recent run of green lights for the commencement of front end engineering and design (FEED) processes for planned projects. But rapidly growing Asian economies are soaking up vast amounts of marginal energy, and LNG is an increasingly important

component in many countries’ energy mix.

It is against this shifting energy backdrop that a fundamnetal rationalization of Singapore’s shipyards is under way. The island nation’s yards—including heavyweights such as Jurong, Keppel and Sembawang— feature in the top handful of repair and conversion yards worldwide, located as they are on one of the world’s most important trade lanes out of Asia to the Middle East and Europe.

They have particular expertise in LNG tanker repairs and life extensions aboard older LNG carriers. They also have an unrivalled track record in the complex and challenging arena of f loating energy conversion, including f loating production, storage and off loading (FPSO) units, and floating storage and regasification units. In due course, they are also likely to feature in the floating LNG production sector.

In LNG carrier repairs generally, they

SHIP REPAIR

Phase I & II plans for the Singapore Integrated Yard at Tuas

have a clear lead in the number of projects undertaken. According to Ship and Offshore Repair Journal, which prepares an annual league table on LNG repairs undertaken by shipyards worldwide, Singapore’s Sembawang Shipyard should maintain its number one position for 2014, with a likely 33 LNG tanker repairs completed during 2014, one up on last year.

But there is fierce competition for lucrative LNG repair and conversion contracts. FSRU conversions, for example, of which there have been five so far, are likely to increase in number as more floating gas facilities are

given the go-ahead over the next few years.

Despite a spree of contracting activity in the LNG sector recently—there are about 135 ships on order representing a little over a third of the existing f leet—there are still plenty of older vessels which are potentially suitable conversion candidates.

There are signs of dismay at the size of the orderbook. The pace of deliveries over the next two years is likely to exceed demand requirements and put a cap on charter rates.

But analysts suggest this situation could be short-lived. It could also mean that selling older LNG carriers for FSRU conversion

projects offers an interesting option.

Industry figures outline the LNG projects either under construction, those for which agreements have been signed and/or FEED processes have begun, or those at an earlier planning stage. Estimates vary but as many as 230 LNG carriers could be required for projects in the first two of these groups. If all of the projects in the earliest stages of planning were also to go ahead, another 200 to 300 LNG carriers would also be required.

One senior Singapore shipyard executive commented recently that FSRUs “could be everywhere” within the next few years, as

December 2014 MARINE LOG 15

SHIP REPAIR LNG is widely adopted as an energy source.

Certainly, there are far-reaching plans for LNG development and distribution around Austra lasia and South East Asia, w ith numerous projects under development, for example, in Malaysia and Indonesia.

Of the five FSRU conversions completed to date, Keppel has finished three on board the vessels Golar Spirit, Golar Winter and Golar Freeze, all with membrane tanks.

Now the company has won another conversion contract from the shipowner, with a

Letter of Intent signed for a second project.

These conversions involve the 126,277 m 3 Hilli, built in 1975 with Moss Rosenberg tanks, and her sister vessel, the Gimi, built in 1976. The Hilli arrived at Keppel’s Benoi yard in September and the Gimi is likely to follow shortly. Both ships have been laid up recently.

Despite their importance in terms of global ship repair supply, notably in the specialized LNG sector, Singapore’s shipyards maintain a fairly low profile. Few

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outside of the nation itself are aware of the scale of the reorganization taking place across the country’s shipyard sector.

A key component of this restructuring is the new Singapore Integrated Yard (SIY) at Tuas, built on reclaimed land on the island’s southwest coast and opened in November 2013 by Sinapore Prime Minister Lee Hsien Loong. The vast shipbuilding and repair complex is being developed in three phases and, on completion of Phase II, t he yard w i l l probably become t he world’s largest single ship repair facility.

In due course, the activities of Singapore’s shipyard brands including Jurong, Jurong SML, PPL Shipyard, Sembawang Shipyard and SMOE will all be focused there. And the first steps in a major rebranding have already begun. This will see all of the individual shipyard brands consolidated under Sembcorp Marine and, eventually, the individual shipyards will be closed for redevelopment.

SIY is already one of the world’s largest repair yards, with an area developed so far of more than 73 hectares. Four VLCC docks have already been built and commissioned, with total capacity of 1.55m dwt. Finger piers and basins are also now in operation, extending almost 4 km.

Dock Number 3, where Royal Caribbean International’s 137,276 gross ton Voyager of the Seas underwent a $20 million upgrade recently, is the largest and only drydock in Asia capable of accommodating this vessel.

It is 412 meters long, 66 meters wide, and has a draft of 11 meters.

Phase II of the shipyard’s development has already begun. This is costing more than $560 million and will cover another 35 hectares, with construction likely to take up to four years. It will include three more drydocks—two of 150,000 dwt capacity and a third with dimensions of 255 meters by 110 meters by 12 meters, intended for rig-building, upgrades and refurbishment.

Un l i ke t he sh ipbu i ld i ng c ompanies’ existing facilities, there is plenty of space at SIY. Recently, Sembcorp Marine announced that it is spending $177 million on a new multi-functional and highly automated steel fabrication plant. The objective here is to raise productivity in offshore rig construction, repairs and conversion.

But the Singaporeans will not be stopping on completion of Phase II. A third development phase will take the total area of the facility from 108 hectares on completion of Phase II, to a total of 206 hectares.

However, details of the facilities to be added during the third development phase have not yet been released. ■

voices of the industry Thought leaders of 2014 december 2014

The way forward Special Advertising supplement

voices of the industry

T&T Salvage — Leading by Example

T

“Shipowners must seek partners committed to providing an operational safety net and assuring business continuity.”

MAURICIO GARRIDO President T&T Salvage

&T Salvage traces its roots to 1957 when the legendary entrepreneur Rudy Teichman, armed with unique ingenuity and commitment, started serving the maritime community in Galveston, TX. It took little time for Rudy’s can-do attitude and dedication to become the “ISO” quality standard of the time and the Teichman Group’s best known trademark. Half a century later, under the seasoned leadership of Mauricio Garrido, T&T launched its international service operations under the same principles cast by Rudy. Today, with offices and resources worldwide, the T&T family continues to share the same motivation to provide safe and cost-effective solutions to complex salvage, wreck removal, anti-pollution and fleet support operations.

T&T Salvage has an extensive response network, with assets around the world

S2 MARINE LOG December 2014

A comprehensive management team, with an average of 25 years in the industry, quickly propelled T&T to become the choice of toplevel shipping and offshore players seeking consistent quality service.

This team includes a diverse group of industry leaders including Salvage Managers, Master Mariners, and Insurance Managers, USCG officers, Fleet Superintendents and HSEQ experts thus providing a unique package of experience ready to provide Total Service.

On the hardware side, T&T proudly operates one of the most extensive response networks in the world. Pre-positioned throughout the Americas, Singapore, and Hamburg, the company owns and maintains a comprehensive inventory of state of the art fast response

SALVAGE

T&T Salvage is focused on providing service and quality to its customers firefighting systems, inert gas generators, nitrogen generators, high capacity pumps, ship-to-ship (STS) systems, anti-pollution and diving systems. These specialized portable assets are complemented by a worldwide network of floating heavy lift and support vessels.

In response to the Oil Pollution Act of 1990 (OPA 90), T&T embarked into a well-orchestrated campaign to develop the best casualty response system in the U.S. As a result, T&T became the contractor of choice for more than 60% of the tank vessel market, including most vessel operating oil majors. The system has already been put to the test over 30 times with extremely positive results, allowing operators and underwriters to accept preparedness pays off. A recent example is the March 2014 collision between a bulk carrier and a 300’ tank barge in the Houston Ship Channel. Activated within minutes of the incident, T&T immediately responded to lighter, refloat and safely deliver the damaged tank barge in less than 24 hours. Bringing together their full suite of services as a U.S. Certified Oil Spill Response Organization, T&T also led the oil spill clean-up effort with fast response vessels, recovery barges and teams of spill responders. Experienced salvage divers also donned contaminated water diving gear to effectively patch the barge for safe transit to a shipyard.

The Captain of the Port called T&T Salvage’s response to an incident in the Houston Ship Channel, “phenomenal”

The channel was quickly reopened and the Captain of the Port defined T&T’s results as “phenomenal.”

Looking ahead, T&T believes casualties will continue to occur owing to a self-inflicted imbalance among the basics of prudent shipping. Garrido further believes, “incongruent advances in shipboard technology, shore-based cargo handling, and digital communications are simply smothering the most important element at sea: crew competency. A stressful environment framed by depressed freight rates, high bunker costs, tightening regulations, and demanding charterers, leave very little time to

lookout, navigate and much less plot ahead. Therefore, shipowners must seek partners committed to providing an operational safety net and assuring business continuity.”

When it comes to investment, Kevin Teichman, eldest son of the company founder, simply stated, “I w ill continue to follow my father’s model to set the standard by putting it all back into our people and equipment.”

Focused on providing service and quality, T&T is shaped to continue as the example to follow for those keen to find the greatest Return on Investment: Loyal Clients.

December 2014 MARINE LOG S3

voices of the industry

Excellence in technical service and commitment to continuous improvement

F

“Fairbanks Morse is committed to meeting our customers’ needs with highly trained, professional technical representatives.”

Josh Bigham Quality Engineer Supervisor Fairbanks Morse Field Service

S4 MARINE LOG December 2014

airbanks Morse engines’ reputation for reliability and durability has earned them a place in mission-critical applications, including propulsion and shipboard power for the United States Navy, Coast Guard and Military Sealift Command, as well as commercial vessels, back-up power systems for nuclear power plants, hospital power systems and mechanical drive applications for the oil & gas industry.

Maintaining that position of trust requires an equally reliable and highly skilled service team. In mission critical applications, small missteps can have significant consequences, so our customers count on us to get it right. Fairbanks Morse is committed to meeting our customers’ needs with highlytrained, professional technical representatives who will provide the highest quality in diesel engine repair and overhaul.

Fairbanks Morse Engine operates five Service Centers strategically located in Norfolk, VA, Houston, TX, San Diego, CA, and Seattle, WA, and Cochrane, Alberta, Canada. Our service centers are staffed by more than 60 factorytrained, experienced technical representatives who work in the Service Centers or are dispatched around the world for engine and component overhaul and refurbishment projects.

Fairbanks Morse Engine has several major quality initiatives that are driving continuous improvement within the service organization. All five of our Service Centers are ISO 9001:2008 certified—not just compliant—and an experienced quality engineer, who reports to the factory, is assigned to each service region.

The company’s newest service quality initiative is a Technical Representative Certification Program, which was launched in 2013 after two years of intensive planning and preparation by the Factory Technical Support, Training and Service Quality, and Human Resources teams.

The Technical Representative Certification Program parallels military qualification programs and establishes a high standard for knowledge and capability for our technical representatives.

New or inexperienced technicians must successfully complete three separate steps on their way to achieving certification—this includes a diesel engine theory and product line familiarization course and a hands-on training program for a specific engine line, each followed by a written examination.

The final step is an oral examination before an unbiased examining board at our factory. The technician is presented with real field scenarios and is challenged to respond with assessments and solutions.

This approach tests not only the

Propulsion

New or inexperienced technicians must successfully complete the Technical Representative Certification Program, establishing a high standard for knowledge and capability

applicant’s technical knowledge and skill level, but also the ability to successfully articulate the problem and the solution for the customer.

Even experienced Fairbanks Morse Engine technical representatives have been required to undergo a rigorous recommendation and examination process to meet the requirements for certification.

Service Center supervisors were asked to review the skills of longterm technicians in comparison to the certification criteria. Based on those assessments, technicians were recommended for the certification examinations on specific

engine lines. All of our technicians are required to renew their certifications every two years.

After just a year of experience with the Technical Representative Certification program, we have already identified opportunities for improvement and we expect to revise this program on an ongoing basis. Fairbanks Morse is committed to providing customers with the most professional technical representatives in our industry, because we understand that with mission-critical applications, it has to be right the first time, every time.

December 2014 MARINE LOG S5

voices of the industry

Metal Shark – A Story of Sustained Growth on the Louisiana Coast

M

“Our people intuitively understand the demands placed on our product, and we’re adept at developing creative solutions.”

Chris Allard President Metal Shark

S6 MARINE LOG December 2014

etal Shark is perhaps best known for the fleets of welded aluminum vessels it produces for the United States Armed Forces. In recent years the Louisiana-based company has garnered increasing attention by winning a number of successive large contracts to build patrol boats and other specialty vessels for government customers. Metal Shark has produced or is actively producing nine vessel types for the U.S. Navy, and seven more for the U.S. Coast Guard, while at the same time delivering numerous boats to the U.S. Army and Air Force.

Metal Shark made headlines in late 2011 when it was awarded the contract to replace the Coast Guard’s aging Response Boat – Small (RBS) fleet. The nearly $200 million Metal Shark 75’ Endurance in production at the Franklin, LA, shipyard

contract, for over 470 boats, was the largest of its kind ever awarded by the USCG. Since that time, the RB-S II, which is based on Metal Shark’s 29’ “Defiant” monohull pilothouse platform, has become a staple of the builder’s production mix at its Jeanerette, Louisiana production facility. In October 2014, Metal Shark delivered its 100th RB-S-II, and the company consistently works to meet delivery deadlines for its ongoing slate of new RBS builds.

In addition to the RB-S program, Metal Shark is currently producing the U.S. Navy’s Force Protection Boat – Medium (FPB-M), which is based on the company’s 32’ Defiant monohull pilothouse design, under an 80-boat contract awarded in 2013. Metal Shark is also building the Navy’s High

Boat builder

Metal Shark’s new Franklin, LA, shipyard is capable of supporting vessels up to 250 ft long Speed Maneuverable Surface Target (HSMST) boat, based on the Metal Shark 26 “Relentless” center console platform, under a 350boat 2013 award. In addition to these large multiyear programs, at any given time Metal Shark builds numerous specialt y boats for smaller government awards.

As large government contracts drive the company’s design, other customers receive the benefit, according to Chris Allard, President of Metal Shark, “Our 29 Defiant, which was designed with some very innovative features to meet the criteria for the RBS contract, has become a popular platform for Foreign Military Sales (FMS) customers and also for state and local law enforcement agencies. In similar fashion, our 32 Defiant, which incorporates many of the popular features of our 29 Defiant, was designed for the Navy FPB-M program and has since been delivered in a range of varying configurations for FMS customers, law enforcement, and fire rescue departments.”

Metal Shark has become an influential player in the FMS realm, with foreign militaries operating Metal Shark vessels in nearly 20 nations across South America, the Caribbean, Africa, Asia, and the Middle East. Add to this the increasing number of state and local law enforcement agencies and fire rescue operations turning to Metal

The Damen Stan Patrol 5009 is one of the Damen designs Metal Shark will offer at its new Franklin yard

Shark, and it is easy to see that the company is a heavy-hitter in the highly competitive 40’ and under range of “trailerable vessels.”

Today, however, small vessels are only a part of the Metal Shark story.

In January of 2014, Metal Shark announced its acquisition of a 25-acre waterfront tract in Franklin, LA, a short distance from the company’s headquarters and primary production campus in Jeanerette. Located on the Charenton Canal with direct access to the Gulf of Mexico, Metal Shark’s new Franklin Shipyard is capable of supporting aluminum and steel shipbuilding operations for vessels of up to 250 feet.

“As our capabilities have grown, so has the size of the average Metal Shark,” explains Allard. “While we have expanded at our Jeanerette facility basically every year, we reached a point where having a fullfledged shipyard was a necessity.”

Shipbuilding at the new yard commenced in July, with several Metal Shark-designed 55’ Defiant monohull and 75’ “Endurance” catamaran pilothouse vessels of varying configurations going into production.

In addition to building its own

designs, Metal Shark builds the designs of outside naval architects at its Franklin yard. Recently, Metal Shark announced a partnership with Damen Shipyards, where Metal Shark will market Damen designs and build them at its Franklin yard.

Metal Shark is leveraging its new Damen portfolio to target several commercial markets new to the company, including fast crew supply, offshore wind farm support, harbor and terminal, push boats, and tugs.

Allard credits the unique makeup of his team with the company’s success. “Our team mixes seasoned industry veterans, including a retired USCG lieutenant commander, with an in-house engineering staff composed of eight naval architects and managed by an MIT and Webb Institute graduate,” explains Allard. “We recruit the best and the brightest.

Across our entire organization, our people intuitively understand the demands placed on our product, and we’re adept at developing creative solutions in terms of design, production, and logistics, that our customers appreciate.”

Learn more at w w w. meta lsharkboats.com.

December 2014 MARINE LOG S7

voices of the industry

Change in offshore exploration leads to new era in technical innovation

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“Supporting the safe application of innovative new technology requires equally innovative new ways of thinking.”

Jim Watson President and COO, ABS Americas Division Houston, TX

S8 MARINE LOG December 2014

he shale gas boom and the changing dynamics of offshore exploration are propelling the maritime and energy sectors into a new era of technical innovation to support the development of new and hybrid asset classes.

In response to society’s demand for cleaner forms of energy, owners and operators are funding the design and construction of new asset types, ranging in size from multi-billion dollar deepsea FLNG units to the conversion of propulsion systems for the brown-water fleet and the LNG bunker barges that will fuel them.

To diversify the potential of any new shore-side asset, some owners are also looking at ways to serve the gas-fueled trucking fleet that is fast emerging, adding another level of complexity to operational and safety planning.

Offshore, industry’s search for the remaining stores of oil and gas continues to take exploration into more hostile marine environments, whether that’s into deeper water or beneath the Arctic’s ice floes.

Anyway you look at it, this new era will require a renewed dedication to innovation—on both the technical and intellectual fronts—if we are to continue improving our safety standards and the operational performance of our assets.

The maritime and energy sectors, in their role as leaders of

research and development, have a tradition of foretelling how specific assets may evolve. But history could show that this year, 2014, was the year that technical innovation moved off the drawing board and into the shipyard at a faster pace than ever before.

Industry observers need look n o f u r t h e r t h a n t h e g ro u n d breaking year that ABS has had for concrete examples.

After being selected to class the world’s first LNG-powered containerships for TOTE and the first dual-fuel offshore vessels in the U.S. for Harvey Gulf, this year ABS’s class contracts included: the world’s first very large ethane carrier, the first compressed natural gas ship, Europe’s first SECA-dedicated LNG-fueled boxships and North America’s first LNG barge.

Offshore, we were awarded the PFLNG2 contract and entered into agreements to help develop the world’s first LNG-fueled drillships and granted the first approval in principle for a cylindrical FLNG production unit designed to produce, store and transfer LNG, LPG and condensate.

For the owner, asset evolution can come hand in hand with an increased risk, simply because new designs often venture outside existing statutory rules.

Even when the latest rules and regulations form the foundations

cLASSIFICATION

ABS recently provided AIP for the first cylindrical FLNG production unit

that support the development of new and hybrid asset classes, wise owners use modern riskbased methodologies to prove any modifications rather than simple equivalency methods.

These methods are uniquely applicable in regions where regulations are in their developmental stage, such as in Mexico.

What is clear is that supporting the safe application of innovative new technology requires equally innovative new ways of thinking.

Prescriptive methods of risk management may have guided us into this modern era, but their effectiveness diminishes as the technologies behind the new class of assets become more complex.

At ABS, we understand this, just as we understand that a proven track record builds the kind of industry trust that is rewarded with opportunities to suport innovative, technologically advanced new projects.

We have moved with industry as it pushed the boundaries of gas and deepwater technology, providing solutions along the way.

The first-generation of semisubmersible units classed by ABS were desig ned to dr il l in 200 meters water depth; today, the 6th generation is designed to drill in 3,000 meters of water. And the next generation of higher-specification drillships are rated for operation at depths to 3,500 meters.

Supporting safe and reliable operations in these new, challenging operational environments will require a deep institutional memory that respects the lessons of the past.

With new types of maritime and offshore assets emerging at an unprecedented rate, industry will need a partner with the technical knowledge and a multidisciplinary team to provide innovative solutions. ABS is ready to be that partner.

ABS was chosen to class two dual fuel 1,400-TEU containerships that will be built by China’s Yangzhou Guoyu Shipbuilding

December 2014 MARINE LOG S9

voices of the industry

VGP Compliance—One Year Later

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“Great progress has been made as OEM’s, lubricant manufacturers, and shipowners have made a coordinated effort to meet the spirit of VGP.” KEVIN KOVANDA President American Chemical Technologies, Inc.

S10 MARINE LOG December 2014

t’s now been one year since the U.S. Environmental Protection Agency (EPA) issued the 2013 Vessel General Permit (VGP).

The VGP requires the use of EPAdefined environmentally acceptable lubricants (EAL) in all oil-to-sea interfaces, unless technically infeasible. Since it came as a surprise to everyone in the industry, it has taken the last twelve months for the fog to clear and the dust to settle.

Great progress has been made as OEM’s, lubricant manufacturers, and shipowners have made a coordinated effort to meet the spirit of the VGP—to minimize the adverse impact of lubricant discharges into the aquatic environment.

On the one hand, this would seem to be a simple task. Identify those lubricant base stocks and additive combinations that have the least impact on the environment. However, there is the issue of performance. OEM’s are concerned that any failures will reflect negatively on their brand image and warranty costs. Shipowners have the concern of a failure at sea and the loss of the asset utilization should repairs require drydocking. The EPA identified four fluid chemistries and water as the EAL’s of choice. As these fluid chemistries have been put to use in oil-to-sea applications, the strengths and weaknesses of the different chemistries are starting to emerge.

The VPG provides vessels with authorization to discharge in U.S. waters under the national pollutant discharge elimination system “in compliance with provisions of the U.S. EPA Clean Water Act (CWA).”

Under the CWA, a lubricant cannot create sheen on the surface of water in the event of a spill or other discharge. The presence of a visible sheen is one of the criteria for determining if a spill is deemed harmful to public health and welfare. This is subject to CWA reporting, fines and/ or equipment repair and environmental remediation requirements.

Of the four EPA-sanctioned EAL base stocks, water-soluble polyalkylene glycols (WS-PAG) are the only class of lubricant to meet this requirement. Due to their density, they are heavier than water and thus sink. They leave no visible sheen.

The water-soluble characteristic of the chemistry means they will also dissolve into the water, rather than accumulate at the bottom of the ocean/lake/river, etc. Aquatic toxicity testing on these fluids places them within the two safest categories for aquatic toxicity. Therefore, WS-PAG’s will have minimal effect on aquatic life.

EAL’s must perform acceptably under the uniquely challenging humidity and water ingress conditions present in oil-to-sea interface applications, while also providing essential anti-wear performance,

Marine Lubricants

WS-PAG’s are unique in that they represent the only class of EAL lubricant that chemically cannot form sludge or varnish WS-PAG lubricants leave no visible sheen on the surface of water in the event of a spill

corrosion protection and a high viscosity index. Reduced friction, high load-bearing capacity and thermal stability are vital to maintaining protection across all operating conditions. Oxidative stability is also important, to prevent degradation and formation of sludge or varnish in the system, which can affect change-out intervals and maintenance requirements.

WS-PAG’s are unique in that they represent the only class of EAL

lubricant that chemically cannot form sludge or varnish. Due to the polarity of the WS-PAG molecule, the by-products of oxidation remain soluble in the lubricant. This polarity also makes them ideal lubricants because their polar nature draws them to the metal surface, wetting the surface with the lubricant.

Selection of an EAL requires careful thought and consideration. Although EALs are biodegradable, minimally toxic, and non-bioaccumulative,

The selection of an EAL requires careful thought and consideration. They may not all perform acceptably at the oil-to-sea interface

they may not all perform acceptably at the oil-to-sea interface.

Given the propensity for water/ saltwater ingress at any time, endusers should favor the use of the most water-tolerant and forgiving lubricants to maintain performance and protection after lubricant conversion. Failure to consider performance before an EAL conversion can have long-term consequences on equipment reliability and service life. This will affect the overall vessel operating efficiency, productivity, and expense.

In summary, EAL’s must meet the industry’s demanding lubrication requirements and EPA regulatory mandates to be useful to marine operators, shipyards and maintenance facilities, and equipment OEMs. They must also be suitable to the other business and societal stakeholders who benefit from efficient, reliable and responsible vessel operations.

To download our white paper on VGP Compliance make sure to pay a v isit to www.NeptuneEALs.com.

December 2014 MARINE LOG S11

voices of the industry

MSI: helping customers reach compliance and meet equipment needs

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“Our customers can see and appreciate the combined experience of Marine Systems Inc., Alfa Laval, and Glosten as partners they can rely on today and into the future.”

Kevin Oakley Product Support Manager, TFS Group Marine Systems, Inc.

S12 MARINE LOG December 2014

arine Systems Inc. was established in 1966 and today operates 12 service centers in key maritime markets across the US. We have wide distribution. We have a highly skilled and competent technical workforce onboard vessels everywhere in our diesel engine business. Those facts made for a strong expansion opportunity into other shipboard machinery spaces. In 2011 MSI launched our Ther mal, Fluid and Separation business unit and entered into distribution and service center agreements with several leading manufacturers of ancillary equipment systems. My role as Product Support Manager of the TFS group is to find and maximize opportunities with these products across the country.

With few exceptions nationally Marine Systems Inc. and our TFS group is the factory authorized marine distributor of Alfa Laval, Severn Trent, US Watermaker, and Ampco Pumps. In select markets we also handle Atlas Incinerators, Nijhuis Wastewater Systems, Rivertrace Engineering, as well as Compactors Inc. Our locations in Houma, Seattle, Paducah, Chesapeake and Thorofare are TFS centers with stock and technical support for those product lines.

That diverse range allows our existing customer base to consolidate many of their technical equipment

needs with MSI. Additionally our product portfolio is improving our exposure to new industrial markets and into equipment categories that make literally every commercial vessel afloat a potential client.

We see our fleet customers shifting preference towards fewer vendor points of contact so they get better time spent value from each relationship. More and more vessel operators are scrutinizing the quality standards and programs in their supply chain. Our ISO 9001 certifications and global partners put MSI in a better position than ever to support those trends. That trust mark, our experience, and the brand reputation of our products have MSI very well positioned to work with customers on their most challenging equipment needs.

Regulatory compliance, and in particular right now, implementation of IMO and USCG ballast water treatment standards have our customer’s full attention.

With ser vice on Washington State’s ballast water investigative committee going back to the early 2000’s, I’ve been directly involved in this coming standard from early on.

Alfa Laval via their partnership with Wallenius Water, and the AlfaWall partnership they formed, have been a leader in the development of marine specific technologies for ballast treatment. As a result of this early recognition, the Pure

Ballast Water Treatment Systems

Our experience and the brand reputation of our products have MSI very well positioned to work with customers on their most challenging equipment needs

Alfa Laval has developed a system that anticipates marine market demand

Ballast treatment systems we’re offering today are third generation systems. Our global installed base is approaching a thousand commissioned systems. In addition to that experience to draw upon, MSI has engaged the design engineers at Glosten to develop a modular package that gives us the capability to install a turnkey solution to the customer’s critical shipyard availability. That package arrives on schedule prefabricated, pre-tested with vessel specific class and flag requirements addressed. The vessel responsible party and the shipyard are able to work from a simple plan and vessel interface document to fabricate the landing for the module. Final connections and commissioning

period are minimized and the vessel is equipped with proven systems in as short a timeline as possible.

One of the concerns I see in the market is a bit of a gold rush mentality as manufacturers with varying technologies repurpose those ideas to address this marine regulator y requirement. We’re confident that Alfa Laval has been trusted in marine for a long time, has developed a system that specifically anticipates the marine market demands, and most importantly will continue to focus on marine in the future. We’re glad to be part of that global support network here in the US. Our customers can see and appreciate the combined experience of Marine

Systems Inc., Alfa Laval, and Glosten as partners they can rely on today and into the future. The need to address these regulations isn’t going away or relaxing. We know that from emissions and other protection standards protocols. The capital expense requirements raised by the regulations are a fact of life and everyone is on a level playing field there. Alfa Laval’s Pure Ballast system has a pedigree and operating expense track record that we’re confident in, and users can rely on.

This is a dynamic period in this arena and I like to use the term future proof to describe how MSI and our TFS group are positioned to guide our customers through it.

December 2014 MARINE LOG S13

voices of the industry

Standing out from the competition Creating products and solutions that are at the technological forefront of the fishing, research, and oil and gas markets

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“Being innovative is part of our everyday work. Rapp Marine always strives to make its products and solutions the most technically advanced and reliable.”

HELGE VATNEHOL Group CEO Rapp Marine

Rapp Marine has invested $9 million in a new 100,000 square foot manufacturing facility in Gruza, Serbia, to increase production capacity S14 MARINE LOG December 2014

or over 100 years, Rapp Marine has been a leading developer of advanced machinery and equipment for the global marine and offshore oil industries. Our focus on R&D activities are closely linked to our company’s mission: creating products and solutions that are at the technological forefront of the international fishing, research and oil & gas markets.

Our company is comprised of a group of companies, including Rapp Hydema, Rapp Bomek and Rapp Offshore Marine, that are now unified under one brand name: Rapp Marine—with facilities available worldwide for the production, repair and maintenance of our products.

We’re able to stand out from the comp etition throug h our

comprehensive product range, which can be customized to fully meet client requirements at a reasonable price.

Our product range includes hydraulic and electric winches for anchor-mooring, towing, heavy lift applications, ROV operations, and fishing and research vessels, as well as handling systems and cranes.

We also build fixed boom, knuckle, and telescopic deck cranes for oil & gas and marine applications.

Rapp Marine’s goal is to help clients meet business challenges by offering impeccable customer service. We have our customers’ back from the very first contact through detailed engineering design to production, and final testing. That customer service doesn’t stop once the product has been delivered.

DECK MACHINERY

Raising the Bar in deck machinery Rapp Marine U.S. is currently building a custom towing winch for Western Towboat Company

R

app Marine U.S. is raising the bar in the deck machinery market. Rapp Marine U.S. is led by CEO Johann Sigurjonsson, who joined the company in 1987 taking on a variety of roles within the company before being appointed CEO in 1994. Under Sigurjonsson’s leadership Rapp Marine U.S. has established and fostered long relationships with its customer base, helping each meet the everchanging market demands.

Meeting our client’s needs Based in Seattle, WA, Rapp Marine U.S. offers unique hydraulic and electric deck machinery options to the fishing, research, oil & gas, and tug & barge markets for North and South America. We also have an office in Houston, TX, and service centers in Dutch Harbor and Kodiak, AK. One of our unique features is liquid cooled electric motors, which work very well in constant tension and active heave compensation applications. We manufacture our own multi-motor gearboxes for added lifetime and durability— as well as manufacture our own

custom API 2C certified deck cranes.

Beyond offering unique products to the market, we’re also helping customers meet new challenges, such as going from hydraulic deck machinery to electric deck machinery.

Recently, we supplied a complete electric deck machiner y package to the first trawler being built for operations in the west coast in a long time, the 194 ft F/T Araho.

The Araho is being built for the O’Hara Corporation by Eastern Shipbuilding Group.

We have been working closely with our clients for decades. For example, we were recently contracted to build a custom towing winch for Western Towboat Company’s new vessel the Bering Titan. We’ve worked with Western Towboat for over a decade and currently equip a variety of their tugs with deck machinery. Relationships, like the one with Western Towboat, are possible because we listen to our customers. We take into account their user experience with equipment as well as their specific application of the equipment— equipped with that knowledge we are able to design and develop durable and user-friendly deck machinery

“Relationships, like the one with Western Towboat, are possible because we listen to our customers.”

JOHANN SIGURJONSSON CEO Rapp Marine U.S.

that works for our customers.

While our products are top notch, our employees are the reason we’re able to offer the high level of service we do. We continue to invest in quality talented individuals to help strengthen our sales force, project management and engineering teams, ensuring that we deliver our quality equipment on time.

December 2014 MARINE LOG S15

ATLANTIC MARITIME

Christening of the Gerald R. Ford (CVN 78) at Newport News Shipbuilding

The ripple effect Panama Canal expansion, shale oil, and Navy cuts impact maritime business in the U.S. Northeast

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n an effort to keep goods moving, get trucks off its already congested roads and beleaguered bridges, and cut diesel emissions, the Port Authority of New York and New Jersey is examining waterborne and rail-based alternatives for a Cross-Harbor Freight Program. It recently released a draft study that examines 11 possible waterborne and rail alternatives to move cargo that is shipped by rail from across the country to New Jersey. Most of that cargo is moved via truck throughout the region.

The other method is via rail barge or “floating bridge.” Since 2008, the Port Authority of NY/NJ has owned and operated New York-New Jersey Rail, LLC, the only rail barge operation in Upper New York Bay. The operation moves cargo by both water and rail between New Jersey and markets east of the Hudson River, including New York City and Long Island. Cargo moved by the facility has grown steadily every year since the Port Authority took over its operation. This September, the agency’s Board approved a redevelopment of Greenville Yard in Jersey City—which houses the rail barge operation—and will invest in major upgrades to the facility. The car float operates between Jersey City and Brooklyn.

Congressman Jerrold Nadler (D-NY) hailed the announcement by the port authority, saying it “paves the way for addressing a very serious problem about which there is overwhelming consensus— that the New York region moves goods extremely inefficiently, largely by road-clogging trucks, and to terrible effect.” If you’ve

Compiled by Marine Log Staff

ever been stuck on the George Washington Bridge or the Cross Bronx Expressway behind an 18-wheeler, you know exactly what the Congressman is talking about.

The options include: • An enhanced railcar float operation • A lift-on, lift-off container barge • A roll-on, roll-off container barge • A Truck Float • A Truck Ferry • A double-stack, double-track rail tunnel • A rail tunnel with a shuttle service alternative • A rail tunnel with a Chunnel Service alternative. This alternative would carry trucks through a tunnel on special railcars, similar to the English Channel Tunnel. Trucks would be positioned on the railcars at two terminals located at the Oak Island Yard in New Jersey and the East New York Yard in Brooklyn.

• A rail tunnel with Automated Guided Vehicle Technology Alternative • A Rail Tunnel with Truck Access Alternative None of this would happen overnight or without substantial investment. The Port Authority projected capital costs of the Build Alternatives—including yard improvements and expansion, track work, equipment, and infrastructure—range from $100 million to $600 million for the Waterborne Alternatives and $7 billion to $11 billion for the Rail Tunnel Alternatives. The costs include the December 2014 MARINE LOG 17

ATLANTIC MARITIME construction, materials, and equipment as well as the cost of planning, design, and the regulatory approval process.

The regulatory approval and design for the Build Alternatives could take two to four years and construction could range from two years for the Waterborne Alternatives to a minimum of eight years for the Rail Tunnel Alternatives.

Still, it is a long-standing problem that needs to be solved. “The Cross Harbor Rail Freight Tunnel project,” says Congressman Nadler, “which I have supported for more than 30 years alongside a large and growing coalition of governmental, business, labor, transportation, and environmental leaders, would finally connect Brooklyn, Queens, Long Island, Westchester and Southern Connecticut to the national freight rail grid, profoundly improving the movement of goods throughout our region.”

The move comes at a time when port traffic is expected to grow with the opening of the Panama Canal expansion in 2015. A report prepared by A. Strauss-Wieder, Inc., for the New York Shipping Association, estimates capital investments in port-related infrastructure from 2013 through 2018 at nearly $3.45 billion. Playing into these investments is the expansion of the Panama Canal to handle larger containerships that could begin calling in increasing numbers at East Coast ports. That means pouring investments into maintaining navigation channels to a 50-foot depth and raising the road deck of the Bayonne Bridge by 64 feet to ensure sufficient air draft is available to accommodate these container behemoths— of 13,000 TEU each. The expansion will have new locks that are 1,400 feet long, 180 feet wide, with drafts of 60 feet. The expansion is expected to double the current throughput of the canal from 300 million Panama Canal Universal Measurement System (PCUMS) tons to 600 million PCUMS tons, according to a U.S. Maritime Administration report.

What this means is that terminals will need to continue to invest extensively in berths, buildings and equipment to handle cargo as efficiently as possible. That means larger ship to shore cranes, larger capacity container storage yards, better security gate processing, and improved intermodal truck and rail connections.

This is a story that is played out up and down the U.S. East Coast in ports in Philadelphia, Baltimore, Norfolk, Wilmington, Charleston, Savannah, Jacksonville, and Miami.

In 2012, the New York-New Jersey Port handled over 5.5 million TEUs of containerized cargo, 51 million tons of bulk cargo, 187,000 tons of breakbulk cargo, and 707,000 vehicles. Cruise ship activity at three regional cruise terminals grew to 325 cruise vessel calls.

Tug and barge operators invest, too The new generation of larger containerships has also prompted local harbor tug operators such as Moran Towing and McAllister Towing & Transportation to invest in more powerful harbor tugs. The 6,000-bhp Z-drive tractor tug George T. Moran, for example, was delivered this past summer to Moran Towing by Washburn & Doughty Shipyard, East Boothbay, ME. The George T. Moran is already in operation in the Port of Virginia assisting post-Panamax ships operated by Maersk, CMA-CGM, and MSC that call at the port.

McAllister Towing recently took delivery of the 6,000 bhp Z-drive tractor tug Tate McAllister from Washburn & Doughty.

With the demand to move U.S. crude and products on the rise, Jones Act tanker and tank barge operators have expanded their f leets. Moran Towing is investing in two new Articulated Tug Barge units under construction at Bay Shipbuilding, Sturgeon Bay, WI. The largest of the two units is 150,000 bbl and the other 115,000 bbl.

18 MARINE LOG December 2014

Tate Donovan, Eileen McAllister Donovan and Capt. Brian J Fournier on the new tug Tate McAllister at Washburn & Doughty

Bouchard Transportation is investing in two huge ATB units— 250,000 bbl capacity each—as well as additional ATB tugs. This past May, it took delivery of ATB tug Denise A. Bouchard from VT Halter Marine, Pascagoula, MS. Measuring 112 feet by 35 feet by 17 feet, the 4,000 hp tug is classed by ABS as A1 Towing Vessel, Dual Mode, and is equipped with an Intercon Coupler System.

Strategic shipbuilding shakeup?

With demand for Jones Act eligible tanker tonnage on the rise due to the shale oil revolution, the fortunes of those operating and building Jones Act tonnage have increased. Back in early October, Aker Philadelphia Shipyard ASA, the majority owner of Aker Philadelphia Shipyard Inc and American Shipping Corporation, said it was exploring “strategic initiatives” for the companies that might include a U.S. listing of stock, a merger or acquisition, or a financial restructuring. “These two companies have performed well, and Converto is always looking to create values,” said Atle Kigen, Aker ASA spokesman, “A number of things are being investigated, including a U.S. listing, merger and acquisition, and even stronger corporate structures in the U.S. Jones Act market, but there is no clear path yet.”

Converto Capital Fund—which Aker ASA holds a 99.8% invested capital—is the private equity fund of Converto Capital Management.

Converto has been a major shareholder in AMSC and AKPS since 2009 and has shared in the companies’ success over the last few years. Could a U.S. listing be in the offing, a sale to another shipbuilder, or a potential merger? Rumors abound, but none have been substantiated at this point.

Right now, Aker Philadelphia has a very solid order book, with one crude carrier for SeaRiver Maritime, eight 46,000 dwt product tankers, and two 3,600-TEU containerships for Matson Navigation.

Navy cuts impact shipbuilding and repair Navy budget cuts mandated by sequestration and a reshuffling of homeports will also impact shipyards. Speaking to members of the Virginia Ship Repair Association on October 21, Congressman J. Randy Forbes, Chairman of the Seapower and Projections Forces Subcommittee, discussed the impact that sequestration and Defense Department budget cuts in Fiscal Year 2016 would have on the economies of Norfolk and Hampton Roads, VA. Forbes pointed out that the current Navy fleet stands at 275 ships and is expected to fall to 242 ships due to budget cuts.

What’s also had an impact on the local maritime industry is the shifting of Navy ships from their homeport in Norfolk to Mayport, FL.

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Bouchard Transportation—Commitment to quality service Bouchard Transportation is the nation’s largest independentlyowned ocean-going petroleum barge company and the only total service oil barging company in New York State to offer 24-hour office support, 365 days a year.

Family-owned and incorporated in 1918, progressive thinking and a strong commitment to quality

service has fostered Bouchard’s longevity and significant growth.

Today we stand firm behind our founding father’s original philosophy set nearly 100 years ago; to best support our customers we must remain an industry pioneer dedicated to providing safer, faster and more efficient service while staying true to our

legacy of leadership, innovation and family honor.

Bouchard prides itself on being a trailblazer in its application of the increased regulations and modern technological advances within the industry—and in its unwavering commitment to the petroleum industry. Our fleet of 25 barges and 21 tugs is faster, larger and better equipped than ever before to ensure superior service for our valued customers and the utmost safety of our crew. Bouchard Transportation continues to look toward the future with progress and adaptation in mind. The company’s ongoing fleet expansion includes the addition of two 6,000-hp ATB tugs that will join two ATB units currently under construction, bringing the total number of ATBs in the company’s New York fleet to 21.

The Leader in Double Hulls is Now the Leader in ATBs… With More to Come 58 South Service Road, Suite 150 • Melville, NY 11747 • 631-390-4900 • www.bouchardtransport.com

December 2014 MARINE LOG 19

ATLANTIC MARITIME Gladding-Hearn reels in pilot boat order Gladding-Hearn Shipbuilding, Duclos Corporation, Somerset, MA, has built a solid reputation in the pilot boat business. It recently secured an order from the Sabine Pilots, Port Arthur, TX, for a 53.6 ft, all-aluminum Chesapeake Class pilot boat that will be delivered in late 2015.

With a deep-V hull designed by C. Raymond Hunt Associates, the pilot boat measures 53.6 feet overall, with a 17.8-foot beam and a 4.8-foot draft. The launch will be powered by two Caterpillar C-18s diesels, each rated at 715 bhp at 2,100 rev/ min. Loaded top speed will reach 28 knots. The engines will turn 5-blade NiBrAl propellers via Twin Disc MGX-5135A Quick Shift gear boxes. A Humphree Interceptor trim tab system, with automatic trim control, will be installed at the transom. The vessel will be equipped with a 12kW Alaska Diesel genset.

The boat will include wide side decks, side and rear doors, and boarding platforms on the roof and bow. At the transom are throttle and steering controls and a winch-operated, hinged rescue basket, level with the rescue access.

The wheelhouse will be cooled by two 16,000 Btu air conditioners. A third, 12,000 Btu unit will be installed in the forecastle.

Interior accommodations include eight Llebroc seats, head, small galley, and two settee berths forward.

The order for the Sabine Pilots vessel follows the recently delivery of a 64 ft emergency response boat built for the Southeast Ocean Response Ser vices, Inc., Charleston, SC. Gladding-Hearn has also recently secured orders to build three ferries for Circle Line Sightseeing, New York, NY, and the another for Hy-Line Cruises, Hyannis, MA.

20 MARINE LOG December 2014

Bouchard Transportation took delivery of the 4,000 hp ATB tug Denise A. Bouchard from VT Halter Marine’s Moss Point Marine facility in Escatawpa, MS

Virginia ranks first among all states in employment in shipbuilding and ship repair, with about 64,000 workers and an annual economic impact of $5.5 billion. Forbes urged VSRA members to inform Congress of the impact of budget cuts on the shipbuilding and ship repair industry and the region’s economy.

That includes Huntington Ingalls Newport News Shipbuilding, which is the largest employer in the state with some 23,000 workers. Newport News Shipbuilding constructs aircraft carriers and submarines, as well as designs, maintains and overhauls them.

It is building the lead ship of the new Ford Class aircraft and is already faced with cost overruns and possible delivery delays on the extremely complex ship.

A report by the Government Accounting Office says that how closely CVN 78 will be delivered by its current March 2016 delivery date and within the Navy’s $12.9 billion estimate depends on the Navy’s plan to defer work and costs to the post-delivery period.

Among the other ship repairers in the region are BAE Systems Norfolk Repair, Colonna’s Shipyard, Davis Boat Works, East Coast Repair & Fabrication, General Dynamics NASSCO- Earl Industries, General Dynamics NASSCO Norfolk, Lyon Shipyard, Mills Marine & Ship Repair, Oceaneering LLC, and Renald Marine & Industrial Repair.

Meanwhile, Detyens Shipyards, Inc., Charleston, SC, has been busy with a number of commercial and non-combatant Navy, Military Sealift Command, and government vessels. It was recently awarded a $14,737,872 firm-fixed-price contract by the Military Sealift Command for a 170-day drydocking and overhaul of USNS Zeus (T-ARC 7). The contract includes nine options, which, if exercised, would bring the total contract value to $17,199,024.

The 513 ft USNS Zeus (T-ARC-7) is a cable laying/repair ship.

She is capable of laying 1,000 miles of cable at depths of up to 9,000 ft. The ship will be drydocked and overhauled in Charleston. The overhaul will be completed by April 2015.

When Marine Log toured the shipyard with the Detyens Shipyards’ Randy Horner, there were several other government vessels in for drydocking, overhaul and maintenance work including the Military Sealift Command’s 755 ft long fast combat support ship USNS Arctic (T-AOE-8), the Maritime Administration Ready Reserve Force’s 648 ft long M/V Cape Race, and the 338 ft long Joint High Speed Vessel USNS Spearhead (JHSV 1).

The shipyard also has had a good mix of recent commercial ship repair work, including drydocking two cruise ships, the Discovery Explorer and the Island Breeze, and the research vessel Odyssey Explorer. ■

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Harvey Gulf will be the first U.S. flag vessel to burn LNG as a fuel

Harvey Energy First U.S. dual fuel PSV There have been few vessels in U.S. shipbuilding history that have been more anticipated than the Harvey Energy. The first in a series of six 310-foot-long dual fuel DPS-2 Platform Supply Vessels, the Harvey Energy will be the first offshore service vessel—or any type of U.S. flag vessel—to burn Liquefied Natural Gas (LNG) as fuel.

As we went to press, the Harvey Energy was undergoing sea trials in anticipation of its delivery to New Orleans-based Harvey Gulf International Marine. The 310 ft x 64 ft x 25.5 ft PSV is designed by Vard Marine, Inc., (formerly STX Marine), Vancouver, and Houston, and built by the Gulf Coast Shipyard Group. Harvey Gulf, Vard Marine, and Gulf Coast Shipyard worked closely with classification society ABS and propulsion specialist Wärtsilä on the vessel’s groundbreaking development. While the technology is well proven outside the U.S.—in Norway, for example—the group had to work closely with the U.S. Coast Guard on a number of technology hurdles. One hurdle was the placement of the 130-ton fuel LNG tank, which was installed in the centerline of the vessel below the cargo deck.

When operating on LNG, the Harvey Gulf is expected to have a fuel consumption of 393 gal/hr when sailing at its maximum speed of 14 knots.

22 MARINE LOG December 2014

Three Wärtsilä 6L34DF main generators, with a total rating of 7,530 kW, will provide propulsion power. The main propulsion will be two Wärtsilä FS300-S/WN nozzled azimuthing propellers.

The Harvey Energy is classed as +A1, Offshore Support Vessel, +AMS, +ACCU, +DPS-2, ENVIRO+, GP, UWILD, FFV-1, GFS(Dual Fuel Diesel), Circle E, with certifications of Subchapter I, Subchapter L, and SOLAS. All of the dual fuel PSVs in the series of six PSVs will be fitted with Wärtsilä’s LNGPac gas control system. Earlier this year, Wärtsilä was awarded a contract to supply the control system for a shore-LNG fuelling facility in Port Fourchon, LA, owned by New Orleans-based Harvey Gulf International Marine, Inc. The facility will be used to fuel the Harvey Energy and its sister dual fuel platform supply vessels (PSVs).

The Harvey Energy represents a bold, new generation of U.S.built vessels that will burn LNG—a move predicated by compliance with stricter emissions regulations when operating in the North American Emissions Control Area (ECA) and the economics of operating on clean-burning, cheap natural gas.

distinctive ships

World’s largest containership The CSCL Globe

The title of world’s largest containership has a new holder— the CSCL Globe. South Korea’s Hyundai Heavy Industries Co., Ltd,

christened and delivered the 19,000 TEU CSCL Globe last month.

Measuring 400 m x 58.6 m x 30.5 m—as large as four soccer fields—the ship is the first in a series of five 19,000 TEU containerships ordered by China Shipping Container Lines (CSCL).

The CSCL Globe will feature the world’s largest engine,a slow-speed MAN B&W 12S90ME-C Mark 9.2 type. The two-stroke engine is rated at 69,720 kW at 84 rev/min, although it has been de-rated to 56,800 kW. The 77,200 bhp electronically controlled main engine will enhance fuel efficiency by automatically controlling fuel consumption according to the ship’s speed and sea conditions. The ship is expected to burn 20 percent less fuel per TEU when compared with 10,000 TEU containerships.

The ship, which travels at a speed of 16 knots will perform operations on the Asia-Europe trade route.

Very Large LPG Carrier BW Aries In keeping with its long-term goal of enhance ship operations, BW LPG Limited took delivery of the BW Aries.

The ship is the first in a series of eight Very Large Gas Carriers (VLGCs) being built by Hyundai Heavy Industries (HHI) for BW LPG. The ship is expected to enhance the company’s deliveries to its customers.

The 225 m x 36 m VLGC is classed by DNV GL + 1A1 Tanker for Liquefied Gas E0 BWM-T and E(s) COAT-PSPC(B) PLUS BIS TMON NAUTICUS (Newbuilding).

The BW Aries is powered by a MAN Diesel & Turbo SE 6G60ME-C9 engine.

Along with its sister ships, BW Aries incorporates modern solutions for improved safety, environmental performance and fuel savings.

BW LPG is the world’s largest VLGC owner and operator—with 36 gas carriers (20 owned VLCGs, five owned LCGs and 11 chartered-in VLGCs) in its fleet.

Environmentally Friendly Crude Oil Tanker Al Dasma Forming a large part of Kuwait’s KOTC’s New Building Projects, Aframax size product carrier Al Dasma has several missions—to be the most efficient, environmentally friendly crude oil tanker in operation.

In order to enable the ship to reach its environmental goals, the 249 m x 32 m Al Dasma is fitted with a ballast water treatment system to help minimize the impact on local marine ecosystems. It also includes a Volatile Organic Compounds reduction system (De-VOC) to minimize the generation of VOCS, especially during cargo loading.

Its centralized control, alarm and monitoring system (CAMS)— which includes more than 1,800 monitored parameters—gives the ship’s officers all of the vital information to operate the vessel.

As for energy efficiency, the Al Dasma is powered by a two-stroke, electronically controlled main diesel engine from Wärtsilä that meets the latest Tier II NOx emission standards. The tanker’s operating efficiency is aided by a bulbous bow, a high diameter propeller,

and a pre-swirl stator that was designed

by DSME, and further improves propeller performance and decreases cavitation.

Beyond its environmental and fuel efficiency benefits, the Al Dasma is also touted as a tanker that puts crew comfort at the very top of its list. The ship features an indoor swimming pool with a pyramid shape glass roof, sauna, large and fully equipped gymnasium and sports room, high-speed broadband internet connection, on board entertainment systems and satellite TV. Al Dasma is also fitted with the latest anti-piracy technology, including an innovative acoustic hailing device that can be used to deter attacks by sounding a warning and then transmitting directional sound waves towards any detected and undefined boat. The ship also has portable high pressure water jet canons, anti-intrusion barriers, enclosed ladder trunks at both port and starboard and a designated citadel area with emergency communication equipment.

December 2014 MARINE LOG 23

distinctive ships

Optimizing operation Hyundai Dream Flying under the Marshall Islands’ flag, the Hyundai Dream is the first in a series of five ships built by Daewoo Shipbuilding & Marine Engineering Co., Ltd for Hyundai Merchant Marine Co. The 365 m Hyundai Dream was designed and built under the survey of both DNV GL and the Korean Register of Shipping.

The dual class ship is classified DNV +1A1, Container Carrier, E0, NAUTICUS (Newbuilding), COAT-PSPC(B), DG-P, BIS, TMON, CLEAN, Recyclable as well as KR + KRM1, Container Ship, UMA3, SeaTrust (DSA2, FSA3, HCM), PSPC, CDG, IWS, STCM, NBS2, LI, ENV (IBWM, IAFS, IOPP, ISPP, IGPP, IAPP, IIHM), CHA, EDD, OHIMP, GREENSHIP4, ERS. Its optimized hullform helps increase fuel efficiency when the vessel is traveling at slower speeds—and the ship comes equipped with a weather routing optimization system as well as a voyage optimization system.

The Hyundai Dream (on this month’s front cover) has a MAN B&W 10S90ME-C9.2 engine. Propulsion power ranges from 43, 660 kW at 81.1 rev/min at NCR to 48,510 kW at 84 rev/min at MCR. Additionally, the ship features a pre-swirl stator at stern frame in front of the propeller and a full spade rudder and rudder bulb.

Very Accommodating Compact Semi-Submersible CSS Olympia Designed by STX Marine Vancouver (now Vard Marine) and CSS Designs Ltd., the DP3 84m compact semi-submersible CSS Olympia is expected to change the long-term landscape of the offshore vessel market. In fact, the ship has been touted by some in the industry as the “offshore support vessel of the year.”

The ABS-classed CSS Olympia was designed to function as a floating accommodation unit rig with room for up to 500 personnel.

The ship was originally delivered to Marine Assets Corporation in Dubai, but was then handed over to Brazil’s Gran Energia. It is now under a long-term charter with Brazil giant Petrobras.

Built by China’s Fujian Mawei Shipbuilding the CSS Olympia measures 84.25m x 32m x 22.2m and includes a 12.8 tonne rated helideck and a 150 MT telescopic boom crane.

The Triple E Matz Maersk Maersk Line’s latest Triple E, the Matz Maersk held the title of the world’s largest ship for a few short months before the current front runner, CSCL Globe, took the title. But the massive 194,849 ton ship still holds some other distinctive features of its own.

Built by DSME’s Okpo Shipyard, 18,270 TEU Matz Maersk is filled with a number of fuel saving features.

The 400m vessel, the ninth in a series of 20 ships for Maersk Line

by DSME, includes a Waste Heat Recovery System (WHRS) composed of steam turbine, power turbine, shaft generator and relevant

24 MARINE LOG December 2014

auxiliary machines. The WHRS uses exhaust gas energy from the main engine to generate electric power. This will help reduce CO2 emissions by 28 to 33% when compared to other containerships.

Further maximizing energy efficiency is the addition of cooling seawater pumps, fans and other energy saving systems.

The Triple-E class of ships also feature Jotun’s SeaQuantumX200 marine antifouling coatings. The coating system is expected to further enhance energy efficiency by optimizing hull performance.

Helping maintain its “green ship” status is the Cradle-to-Cradle passport, which was used for the first time when building this ship.

Cradle-to-Cradle breaks down what materials and components should be used to build the ship; it also manages all materials used for the construction so they can be recycled after the vessel is scrapped.

Meanwhile, helping minimize the ship’s roll motion during while sailing is an Anti-Rolling Tanks. The decrease in roll motion means an increase in the ship’s overall stability and energy efficiency. The boxship also features a UV Filter type ballast water treatment system and is fitted with two dual sets of MAN B&W 8S80ME-C9 derated engines.

distinctive ships

Fuel-Saving Trawler Herøyhav Featuring a “very flexible propulsion package” the Herøyhav benefits from a number of fuel-saving power modes. The 69.95 m trawler was built by Denmark’s Karstensens Shipyard for the Ervik family’s Herøyhav AS. Its propulsion package is comprised of a MAN 9L27/38 engine and a two-speed reduction gear that drives a MAN Alpha 4,200 mm diameter ducted propeller. MAN Diesel & Turbo also supplied the vessel with its Alphatronic 2000 propulsion control system, including the ECO Speed Pilot for optimal voyage planning and speed setting.

The Herøyhav’s hybrid propulsion system enables the trawler to operate over a wide power range, including diesel-mechanical,

diesel-electrical and hybrid combinations. Main engine power produced is 3,285 kW—coupled with auxiliary power, the propulsion package has a total output of 4,785 kW for trawling or full-speed steaming.

During speed trials the trawler was able to reach above 11 knots in four different power modes—11.6 knots (diesel-electric, variable propeller speed); 14 knots (diesel-electric, fixed propeller speed); 15.5 knots (diesel-mechanical) and 16.6 knots (dieselmechanical + electric boost).

Moreover, its fuel-saving propulsion set up limits exhaust gasto-air emissions.

Additionally, its coated propeller shaft, installed in combination with a water-lubricated stern-tube system, eliminates any risk of sealing damage and any leakages of stern-tube oil to the sea.

Hybrid Propulsion Fast Supply Intervention Vessel Karina

Developed for the combined transport of deck cargo and passengers to offshore oil fields, the world’s first hybrid propelled Fast Supply Intervention Vessel (FSIV), the Karina, exceeded expectations during sea trials this past summer.

When designing the vessel Shipyard De Hoop’s focus was on “speed keeping,” not necessarily on “top speed.” With the focus shifted to maintaining speed De Hoop is able to ensure that the vessel won’t slow down as it takes on cargo weight—leading to greater efficiency in operations.

The Karina features a hybrid diesel-electric/diesel-direct propulsion plant that will enable the vessel to consume very little fuel—and to switch between the two modes of operation.

During low-speed and maneuvering operations, the vessel goes into diesel-electric mode. During this time the portside diesel engine is used to drive a generator. The generator, in turn, delivers power via a DC-bus switchboard to two electric motors that drive the propeller shafts through the gearboxes. In this mode, maximum speed reached is 13 knots. To maintain this speed, only 410 kW of power is required.

For higher speed operations, the hybrid vessel will use both its diesel engines. The FSIV comes equipped with two Caterpillar 3516 diesel engines that engage with gearboxes to provide up to 2,350 kW at 1,800 rev/min each. In diesel-direct mode, the two fixed pitch ducted propellers are capable of producing up to 3.7 mW with 200 metric tons payload in total, achieving a maximum speed of 21.3 knots.

When going from lower-speed to full-throttle, the vessel’s smart power management system automatically switches from diesel-electric to diesel-direct mode which results in rapid acceleration.

The 55m vessel also features a bulbous bow and the Hull Vane.

The Hull Vane is made of fixed foil positioned below the hull and behind the rudders. This further reduces power consumption by 11 to 15%. The added feature also has a stabilizing effect on the vessel, reducing heave and pitch.

Adding to its uniqueness, the Karina’s structure is made entirely of steel. Steel was chosen for a number of reasons—its cost effective; easier to repair and work with; leaves room for design versatility and customization; and can be made bulletproof.

The vessel was built to Germanischer Lloyd’s rules for worldwide operation and can carry 100 passengers and eight crew.

December 2014 MARINE LOG 25

newsmakers As Graham Westgarth steps down, Nikolas Tsakos takes helm at Intertanko Inter tanko has a new leader. It s Council of Members met last month and elected Nikol a s Tsakos as Chairman of the Association. Tsakos has been a member of the Council since 2002 and Vice Chairman since 2012. He succeeds Graham Westgarth who is stepping down from the post after five years.

Rand Logistics, Inc, is giving its Board of Directors and Management line up a shakeup. The company announced that it will be conducting a search for two new independent board members—one will be replacing Jonathan Brodie who has opted not to stand for re-election.

Meanwhile, Michael Lundin has been appointed Non-E xecutive Chairman of Rand’s Board of Directors and Laurence Levy, currently Rand’s Executive Chairman and Founder, has been named Executive Vice Chairman of the Board of Directors.

ABS Senior Vice President of A sset Per formance M a n a g e m e n t ( A M P ), Howard Fireman, was awarded the David W. Taylor Medal for notable achievement in naval architecture and marine engineering by the Societ y of Naval Architects and Marine Engineers (SNAME). The aw ard—the hig he s t te chnic al honor awarded by SNAME—is considered to be a crowning professional achievement for a Naval Architect and Marine Engineer.

Vice President of Development and LNG Solutions at the United States Maritime Research Center (USMRC), Middletown, RI, Margaret Kaigh Doyle, has been named the U.S. Vice Chairperson of the Training and Competency Working Group, the London-based Society for Gas as a Marine Fuel (SGMF). SGMF’s mission is to promote safety and industry best practices in the use of gas as a marine fuel.

N o r t hr o p G r umm an Corporation has named T o d d L e av i tt V ice President of it Maritime Systems business unit. In his new post, Leavitt will have executive responsibility for all Maritime Systems programs and products. Additionally, he will lead all domestic and international programs within the Maritime Systems business area.

Gavin Higgins has been named Chief Executive Officer of Nichols Brothers Boat Builders (NBBB), Freeland, WA. Higgins, who has more than 30 years of industry experience, will replace Matt Nichols who has served as CEO of NBBB since 2012.

Orlando Ashford has joined Holland America Line as its new President. Ashford will oversee Holland America Line’s sales and marketing, revenue management, deployment and itinerary planning, public relations, hotel operations and strategy.

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26 MARINE LOG December 2014

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techNews Imtech Marine powers up Hamburg Imtech Marine is KEEPing the electricity on at the Port of Hamburg. That’s because the Rotterdam-based company has supplied an extensive range of equipment and systems to an LNG Hybrid Barge—named the Hummel—that was built to serve as an LNG fueled floating power station at the port.

T he barge is f it ted with Imtech Marine’s electrical solutions, fire extinguishing equipment, as well as a complete ventilation, heat recovery and seawater cooling system. The Hummel, will supply power to AIDA cruise ships and, in the winter, will provide both electricity and heat to the public grid.

While the project was challenging, Imtech Marine says it was up to the task.

One hurdle the company faced was to ensure that the barge could operate at different net frequencies ( 50/60 Hz), enabling operations in both the summer and winter. Another challenge was making sure the electrical power cable could accommodate the harbor’s large tide range of three meters.

Imtech.com

JonRie equips latest tug in McAllister fleet

BP looks to robot technology to enhance oil recovery

Delivering more than 10% of the world’s light oil Enhanced Oil Recovery (EOR), BP is looking to increase global oil supplies with the use of its new Core Flood Robot.

The robot enhances oil recovery by measuring the effectiveness of water or gas injected into an oil-bearing rock sample to displace oil. This process, says BP, will help it assess the potential for water flooding in an oil field.

BP believes that EOR “holds the key to maximizing recovery not only from matur ing oil fields, but increasing ly from greenfield developments where the most effective sweep and displacement at

pore-scale can be achieved over the longest available period.”

The Core Flood Robot, which operates 24 hours a day, seven days a week at BP’s inhouse core flooding lab in the U.K., enables hundreds of core flood tests to be performed each year.

“The EOR technologies being developed by BP are vitally important to help increase global oil supplies,” says Ahmed Hashmi, BP’s head of upstream technology.

“We believe this step-change in our coreflooding capability will hugely improve the speed and efficiency with which we can deploy new technologies to recover more oil from reservoirs.” www.bp.com

Improved efficiency via SAMM software

JonRie InterTech, LLC,has supplied its fifth ship set of Full Bollard Pull Winches to the latest addition in McAllister Towing’s fleet, the 92 ft Tate McAllister.

Designed and built by shipbuilder Washburn & Doughty, East Boothbay, ME, the Tate McAllister is a 6,000 HP Z-drive tug with a bollard pull of 90 tons.

In the recover mode, the tug’s JonRie Series 250 Escort Winch can handle the full bollard pull of the vessel. The winch is capable of 180,000 lb (90 ton) Line pull, making it ideal for escort work at LNG Terminals and ship assist of the new generation of very large containerships.

www.marinewinch.com

Lafayette, LA-based Advanced Logistics’ software has been chosen to equip Harvey Gulf International Marine’s fleet of offshore supply and multi-purpose support vessels.

Advanced Logistics will provide its marine management system, SAMM, and its preventative maintenance module, Preventer.

The technology will also include electronic logs, safety and crew management, commodity tracking, fuel and lube management,

GPS mapping, preventative maintenance.

Additionally it will couple the technology with an interactive web-based interface for easy access to data.

The technology will help Harvey Gulf better manage its fleet by providing operators on the vessels with numerous operational reports on board, and transmitting that data to shore side operations in real time. www.advanced-logistics.com

SEAKEEPER PROTECTS crews in rough seas

When it comes to crew transfer, Seakeeper is giving Sima Charters a competitive advantage. The Netherlands-based operator’s newest vessel, the 66 ft Amethyst, is

equipped with Seakeeper 26 gyro—creating a stable ride during crew transfers.

The gyro enables the pilot vessel to handle the rough waters of the North Sea, achieving up to 90% reduction in roll.

The use of the Seakeeper 26 gyro allows for up to 12 workers and their equipment to be transferred safely and efficiently to and from wind farms offshore.

The Seakeeper 26 requires minimal power to operate. www.seakeeper.com December 2014 MARINE LOG 27

contracts Shipyard Contracts While every care has been taken to present the most accurate information, our survey gathering system is far from perfect. We welcome your input. Please e-mail any changes to: marinelog@sbpub.com. Some contract values and contract completion dates are estimated. Information based on data as of about November 1, 2014. (*) Asterisk indicates first in series delivered. A “C” after a vessel type indicates a major conversion, overhaul or refit. Additional commercial and government contracts are listed on our website, www.marinelog.com.

Shipyard

Location

Qty Type Particulars Owner/OPERATOR Est. $ Mil Est. DEL.

RECENT CONTRACTS Dakota Creek Industries Anacortes, WA Gladding-Hearn Somerset, MA

1 1

trawler launch

79.8m x 15.4m 53.6 ft x 17.8 ft

Fishermen’s Friend Sabine Pilots

NOV17 2015

1 1 1 1 1

FRC PSV crew boat research vessel tug

154 ft 302 ft x 64 ft 202 ft x 34 ft 19m Spirit of the Sound 65 ft x 26 ft

U.S. Coast Guard Hornbeck Offshore Seacor Marine Maritime Aquarium Cvitanovic Towing

NOV14 OCT14 OCT14 OCT14 OCT14

PENDING CONTRACTS

NOTES

Aker Philadelphia Philadelphia, PA 4 BAE Systems Southeast Mobile, AL 2 1 BAE Systems Southeast Jacksonville, FL Candies Shipbuilders Houma, LA 1 Gulf Coast Shipyard Gulfport, MS 4 Kvichak Marine Seattle, WA 30 Jennings, LA 2 Leevac Shipyards TBD TBD 2 TBD 1 TBD 6 TBD 3 TBD 1 TBD 2

Options dump scows tug subsea vessel PSVs skimmers PSVs OPCs LASH carriers double-end ferry car ferries double-end ferries pass./vehicle ferry passenger ferries

Crowley Maritime $500 Great Lakes Dredge Seabulk Tankers Inc. Otto Candies LLC Harvey Gulf Intl. Marine U.S. Navy Tidewater U.S. Coast Guard Horizon Lines VDOT $25 Washington State Ferries NYCDOT $309 The Steamship Authority WETA

2017 Options Option Option Options Opt. to 2019 Options RFP/Phase I RFP 2018-2020 RFP issued EBDG design RFP issued RFP issued

TBD

pass./vehicle ferries 1,000 PAX/100 vehicles

DRBA

2018-2021

DELIVERIES Bollinger Shipyards Eastern Shipbuilding Gulf Craft Robert E. Derecktor Rodriquez Boat Builders

Lockport, LA Panama City, FL Franklin, LA Mamaroneck, NY Bayou LaBatre, LA

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AD INDEX Index of Advertisers Company Page #

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ABS Americas. . . . . . . . . . . . . . . . . . . . . S8, S9

Marine Art Of J. Clary . . . . . . . . . . . . . . . . . . 28

American Chemical Technologies . . . S10, S11

Marine Systems Inc.. . . . . . . . . . . . . . S12, S13

BMT Fleet Technology Limited. . . . . . . . . . . . 4

Marine Systems Inc.. . . . . . . . . . . . . . . . . . . C4

Bouchard Transportation. . . . . . . . . . . . . . . 19

Metal Shark Aluminum Boats. . . . . . . . . S6, S7

Bristol Harbor Group . . . . . . . . . . . . . . . . . . 20

Metal Shark Aluminum Boats. . . . . . . . . . . S16

CMA Shipping 2015 . . . . . . . . . . . . . . . . . . . 15

National Maintenance & Repair . . . . . . . . . . . 2

Daewoo Shipbuilding and Marine

Rapp Marine. . . . . . . . . . . . . . . . . . . . S14, S15

Engineering Co Ltd. . . . . . . . . . . . . . . . . . C3

Smith Berger Marine . . . . . . . . . . . . . . . . . . . 4

Dynamat Inc.. . . . . . . . . . . . . . . . . . . . . . . . . 10

T&T Salvage . . . . . . . . . . . . . . . . . . . . . . S2, S3

Fairbanks Morse Engine. . . . . . . . . . . . . S4, S5

Vigor Industrial. . . . . . . . . . . . . . . . . . . . . . . 16

Fairbanks Morse Engine. . . . . . . . . . . . . . . . C2

Workboat Maintenance & Repair. . . . . . . . . 26

Great American Insurance Co. . . . . . . . . . . 11

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Environmental Forum

A great success story, If only the world would listen We sometimes hear it said that “the more ships there are afloat, the greater the risk of pollution, and damage to the environment.”

Nothing could be further from the truth!

Ever since the enactment of MARPOL and SOLAS, ships have become cleaner and safer.

They are, by now, the safest form of transportation in the world, and the one with the least impact on air and water. There are several obvious reasons for this: a commercial ship carries far more cargo than any other mode of movement, which means that a relatively small number of ships can account for a tremendous amount of “lift.” Ships that use to burn a dirty mix of fuels, usually described as “bunker C,” are now required to meet increasingly tight standards under Annex 6 of MARPOL, with lighter distillates mandated in the exclusive economic zones of countries with so-called ECAs. For example, the International Convention for the Prevention of Pollution from Ships (“MARPOL”) limits reduced the sulfur content of fuel oil used by vessels to 1.0% in specially designated areas such as the North American ECA, which extends 200 miles from the United States coast. MARPOL, however, is not self-executing. In the United States, MARPOL is implemented through the Act to Prevent Pollution from Ships (“APPS”), which supplements existing civil

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USPS 576-910

A Simmons-Boardman Publication 55 Broad Street, 26th Floor New York, N.Y. 10004 Tel: (212) 620-7200 Fax: (212) 633-1165 www.marinelog.com

and criminal legal authorities vested in EPA and the USCG under the Federal Clean Air and Federal Clean Water Acts. On January 1st 2015, the sulfur limit of fuel oil used by vessels within the ECA will be reduced to 0.10% and federal authorities in the United States have given no indication that the compliance date will be extended or ignored. Indeed, federal officials have noted the importance of the fuel standards to air quality control issues that continue to affect U.S. ports. Thus, enforcement of national and international standards on vessel air pollution is a priority.

In the United States, the Act to Prevent Pollution from Ships gives the Environmental Protection Agency, in cooperation with the United States Coast Guard broad

authority to investigate potential MARPOL violations; it also gives the Coast Guard, and United States Customs and Border Protection broad authority to detain vessels during the course of investigations. The Act also authorizes the United States to refuse or revoke a vessel’s clearance to proceed from a port in the United States if “reasonable cause exists to believe” that the vessel violated the Act. The enforcement machinery in place under national and international laws makes it easy to understand why we have achieved, and are achieving, “safer ships and cleaner seas.” The industry and government, have a great deal of good news for the public in this regard. If only public and social media took notice!

Ships have become far cleaner since the enactment of MARPOL and SOLAS

Advertising Sales UNITED STATES New York Sales Office 55 Broad Street, 26th Fl New York, NY 10004 U.S. Gulf Coast, West Coast and Mexico Jeff Sutley National Sales Director Tel (212) 620-7233 Fax (212) 633-1165 E-mail: jsutley@sbpub.com U.S. East Coast, Midwest and Canada Ian Littauer Regional Sales Manager Tel (212) 620-7225 Fax (212) 633-1165 E-mail: ilittauer@sbpub.com

32 MARINE LOG December 2014

By Clay Maitland, NAMEPA Founding Chairman www.namepa.net

WORLDWIDE Marine Log (UK) Suite K5 & K6, The Priory Syresham Gardens Haywards Heath RH16 3LB UNITED KINGDOM International Louise Cooper International Sales Manager Tel: +44 1444 416368 Fax: +44 1444 458185 E-mail: lcooper@sbpub.com

China and Korea Young-Seoh Chinn JES Media International 2nd Fl. ANA Bldg.

257-1, Myungil Dong, Kangdong-Gu Seoul 134-070, Korea Tel: +822-481-3411 Fax: +822-481-3414 e-mail: jesmedia@unitel.co.kr Classified Sales Jeanine Acquart Classified Advertising Sales 55 Broad Street, 26th Fl New York, NY 10004 Tel: (212) 620-7211 Fax: (212) 633-1165 E-mail: jacquart@sbpub.com

The Partnership Yard DSME. When it rains, your friend DSME will be there for you.

www.dsme.co.kr

DSME, With trust and passion