February 2014 Marine Log Magazine

CRUISE SHIPPING: Catering to new passengers

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

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FeBRuaRy 2014

SHIPYARDS GET A BIG LIFT

The future of communications Harvey launches first LNG PSV Mid East ship repair heats up

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contents

february 2014 Vol. 119, No. 2

28

departments 4 EdItORIal Name of the game for shipyards is investment

7 INlaNd WatERWayS Good tidings in the New Year 10 UPdatE

16

Seabourn Cruise Lines recently confirmed an order with Italy’s Fincantieri for a 604-passenger luxury cruise ship

features 16 CRUISE SHIPPING

Optimism abounds The addition of new and refurbished ships, along with the growing interest from Millenials is fueling cruise shipping’s growth Plus: Cruise ship orderbook; Concordia to be refloated and towed away by June

19 mIddlE EaSt SHIP REPaIR

mid East ship repair set for a shake up

Firm energy prices support the region’s buoyant offshore sector, providing substantial maintenance, upgrade and new construction business in the months ahead

2 MARINE LOG February 2014

23 SHIPyaRdS

Shipyards bulk up Expansion is key. Small and midsize shipyards are adding new drydocks and expanding operations in order to meet demand for new shipbuilding and ship repair projects

28 PaINtS & COatINGS

Protecting your rudder from the start A vessel’s coatings system plays an integral role in reducing green house gas emissions

30 COmmUNICatIONS

meeting communications demand Investments in expanding WiFi and upgrading bandwidth helps cruise lines and government agencies keep passengers and crew connected

• First LNG OSV launched for Harvey Gulf • Outlook positive for offshore, but tighter CAPEX • Kirby to build ATB unit • Metal Shark sinks its teeth in shipbuilding market

15 WaSHINGtON MSP, Title XI loan guarantee program get a boost

32 NEWSmakERS Retired Navy Captain named VP of Business for Austal USA 34 tECH NEWS Crowley’s LNG-powered ConRo ships will run on MAN power 36 CONtRaCtS Gladding-Hearn delivers pilot boat to Colombian Navy

40 SHIPbUIldING HIStORy The Mariners

ABS Nautical Systems Driving Performance

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editorial

Name of the game for shipyards is iNvestmeNt The U.S. NaTioNal WeaTher Service does not name winter storms. That’s the brainchild of The Weather Channel. And it annoys me. It seems for the last few weeks some storm named after a Greek or Roman god, goddess or demi-god has blown in hammering the U.S. Northeast with snow, sleet and ice. Somehow, the weathermen sound just a bit gleeful when they are saying, “Winter Storm Hercules.” It makes me long for a vacation some place warm, where the only salt I’ll see is on the rim of my margarita glass.

This month, we look at one of the growing vacation spots for travelers—cruise ships. As contributing editor Bill Ebersold writes this month in “Optimism abounds,” the Cruise Lines International Association expects to carry 21.7 million passengers this year, up slightly from the estimated 21.3 million in 2013. A key for the industry will be attracting first time cruisers from Millennials—the

generation born between the early 1980s and early 2000s. That means bigger ships with more extreme activities—zip-lining, rock climbing, surfing, etc.—as well as investing in WiFi connectivity. No one wants to be at sea and out of touch.

Meanwhile, the name of the game at shipyards on the U.S. Gulf Coast and West Coast has been “investment.” As larger deepwater offshore support vessels, such as 300 ft Platform Supply Vessels, Construction Vessels and IMR vessels enter the market, ship repairers are scrambling to add bigger dry docks to handle these monsters. An important funding resource for small shipyards has been the Maritime Administration’s Small Shipyard Grant program, which has provided $150 million in grants since 2009. The program has not only helped shipyards with infrastructure improvements, but also created jobs.

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

One shipyard destined for a new life is Avondale Industries. Early this month, the amphibious transport dock Somerset (LPD25), became the last Navy ship to be built at the shipyard, when it set sail from New Orleans for Philadelphia, where it will be commissioned. The Somerset is the last of three Navy ships that honor the victims and heroes of 9-11. The others are the USS New York (LPD-21) and USS Arlington (LPD-24).

Somerset is the county in Pennsylvania where the hijacked United Airlines Flight 93 crashed, killing all 40 passengers and four terrorists. The plane crashed as a result of the heroic actions of the crew and passengers, who had tried to regain control after learning of the suicide attacks on the World Trade Center and the Pentagon. The presumed target of the terrorists was the U.S. Capitol. Steel from the crash site has been used to construct the Somerset’s stemhold.

MaritiMe trivia Trivia Question #11 What did guests call the Great Eastern after numerous attempts failed to launch that vessel?

The first sailor or lubber who correctly answers the Maritime Trivia question will receive a color J. Clary collector print. Email your guess to: marineart@jclary.com The winning answer for last month’s trivia question, “Why was the launch of the USS Laboon so unusual?” was submitted by Laszlo Mayer, President & General Manager, Canal Marine Inc. Answer: At the event, the honoree’s three sisters and brother were present.

4 MARINE LOG February 2014

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ENGINEERING

MarineLoG FEbRuARy 2014 VOL. 119, NO. 2 iSSn 08970491 USPS 576-910 PreSiDenT arthur J. Mcginnis, Jr. amcginnis@sbpub.com

inTernaTionaL SaLeS DireCTor Louise Cooper lcooper@sbpub.com

PUBLiSHer & eDiTor-in-CHieF John r. Snyder jsnyder@sbpub.com

naTionaL SaLeS DireCTor Jeff Sutley jsutley@sbpub.com

aSSoCiaTe eDiTor Shirley Del valle sdelvalle@sbpub.com

regionaL SaLeS Manager vanessa Di Stefano vdistefano@sbpub.com

ConTriBUTing eDiTor William B. ebersold wbeber@comcast.net

SaLeS rePreSenTaTive korea & CHina Young-Seoh Chinn jesmedia@unitel.co.kr

ConTriBUTing eDiTor Paul Bartlett pbmc@gotadsl.co.uk WeB eDiTor nicholas Blenkey nblenkey@sbpub.com CreaTive DireCTor Wendy Williams wwilliams@sbpub.com arT DireCTor Sarah vogwill svogwill@sbpub.com

CLaSSiFieD SaLeS Jeanine acquart jacquart@sbpub.com ConFerenCe DireCTor Michelle M. Zolkos mzolkos@sbpub.com CoLUMniSTS/ConTriBUTorS Michael Toohey, Waterways Council Tim Colton

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inland waterways

Good TidinGs in The new Year The new year broughT good news to the inland waterways industry and the U.S. Army Corps of Engineers. The Consolidated Appropriations Act of 2014 (Omnibus) funding level of $5.467 billion was an increase of $748 million over the FY 2013 post-sequester enacted level for FY 2014 Energy & Water Development appropriations that fund the Corps’ Civil Works mission.

Within that budget, the Corps’ Construction General Account received $1.656 billion and provides $163 million for the overbudget Olmsted Lock and Dam project on the Ohio River. The legislation also established a cost-sharing formula for FY14 funds for Olmsted at 75% General Funds and 25% Inland Waterways Trust Funds (IWTF). Olmsted had been funded at 50% IWTF and 50% Federal funds from the General Treasury.

Other inland construction projects received funding at the President’s requested level: $1.96 million for the Lower Mon 2, 3, 4 project in Pittsburgh, PA; and $11.4 million for Major Rehabilitation at the Lockport project in Lockport, IL. The good news is the allocation of $81.5 million in undesignated funding for inland

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

navigation projects, and an authorization for up to four new starts from inland navigation, flood control and storm damage prevention, and ecosystem restoration programs. One project must be from the ecosystem restoration portfolio, while up to two projects may be selected from the other categories. The Corps has 45 days after enactment to select projects for these additional funds, and the new starts.

There is very specific guidance on how to use the funds: projects must have received funding in one of the last three years; will reach a significant milestone or produce significant outputs in 2014; or are selected as a new start. The Corps must also develop a project rating system, and consider giving priority to projects benefitting the national economy or enhancing national, regional or local economic development. Factors such as job creation, economic impact on the local, regional and national economies if the project is not funded, and ability to obligate funds and complete the project, will also be taken into account.

The legislation also significantly increases spending for critical port and navigation channel improvements, providing $1 billion from the Harbor Maintenance Trust Fund.

This is a healthy increase from recent levels; only about half of the $1.5 billion in annual harbor tax monies had been expended for dredging and seaport projects. In addition to specific project allocations, the bill also provides $47 million in additional funds to navigation construction; $27 million added for navigation Operations & Maintenance (O&M); $128 million in additional O&M funds for deep draft ports and an additional $42 million for inland ports; additional $40 million for small ports O&M; and additional dredging funds of $5 million for Mississippi River Tributaries (MRT).

Waterways Council’s members recognize that this budget represents an understanding in Congress of the importance of the Corps of Engineers’ civil works/navigation mission to the nation. The Federalization of a portion of the Olmsted project will allow funding to flow to other priority projects, without diminishing any other Corps mission program.

Our nation’s waterways and ports facilitate America’s prosperity through exports, jobs, access to world markets, and competitive advantage. Thanks to Congress and its appropriators for recognizing this now, and we hope, long into the future.

The U.S. Army Corps of Engineers Pittsburgh District Repair Party installs a needle dam at Montgomery Locks and Dam on the Ohio River near Monaca, PA

February 2014 MARINE LOG 7

UPDATE biz notes Tognum changes name to Rolls-Royce Power

First LNG OSV launched for Harvey Gulf Harvey Gulf InternatIonal MarIne (HGI M) , Ne w O rle a n s , L A , i s m a king great strides as a “green” leader in the marine industry. While the operator is in the process of constructing the first LNG marine fueling facility in the U.S., located in Port Fourchon, LA, the first of its six Dual Fuel Offshore Supply Vessels (OSVs) was recently launched by Gulf Coast Shipyard Group (GCSG), Inc., Gulfport, MS. The 302 ft x 64 ft OSVs will be classified by ABS and achieve ENVIRO+, Green Passport status—making them the most environmentally friendly OSVs in the Gulf of Mexico. To achieve this status, the vessels will have to be completely constructed

out of environmentally friendly materials and will be fitted with advanced alarms for fuel tanks and containment systems. Once under operation, the vessel(s) will also have to be continuously manned by a certified Environmental Officer.

The launch of the vessel, says John Dane III, Gulf Coast Shipyard Group’s President and CEO, “demonstrates the commitment both Gulf Coast Shipyard Group and Harvey Gulf have to providing engineering solutions to advance environmental technologies.”

Next month, the newly launched vessel will be moved to GCSG’s commissioned space at the Port of Gulfport for final completion and testing. It is expected to enter service later this year.

toGnuM aG Is no More. That’s because the company, a wholly-owned subsidiary of Rolls-Royce plc and Daimler AG since March 2013, will now be called Rolls-Royce Power Systems AG. Rolls-Royce and Daimler each own a 50% share in the company.

Its regional companies will also operate under new names: Tognum America Inc., Novi, MI, will now operate as MTU America Inc. and Tognum Asia Pte Ltd, Singapore, will operate as MTU Asia Pte Ltd. “The new name Rolls-Royce Power Systems reflects the close industrial ties to Rolls-Royce. At the same time, our owners Rolls-Royce and Daimler have clearly affirmed their commitment to our traditional brands of MTU, MTU Onsite Energy and L’Orange,” said Dr. Ulrich Dohle, Chairman of the Executive Board and CEO, Rolls-Royce Power Systems.

The product portfolio includes MTU brand high-speed engines and propulsion systems for ships, for heavy land, rail and defense vehicles, and for the oil and gas industry.

You c an lear n more about t he comp an y ’s name c hange and a s well as it s group of companies at www.rrpowersystems.com

As for the LNG fueling facility, Harvey Gulf says it will consist of two sites—each having 270,000 gallons of LNG storage capacity. The first site is expected to be completed by the end of this month.

U.S. Coast Guard warns mariners about marijuana use

MarIners tHInkInG that a little recreational use of marijuana is just fine, could see their credentials go up in smoke. With states such as Washington and Colorado legalizing the recreational use of marijuana, the U.S. Coast Guard has issued a notice warning mariners, marine employers, Medical Reviewing Officers and the public that a ban remains in place for 10 MARINE LOG February 2014

the use of marijuana by those serving in safety-sensitive positions in the maritime transportation industry.

The Coast Guard says it is important to note that marijuana remains a drug listed in Schedule I of the Controlled Substances Act. A mong t he ot her drugs listed on Schedule I are LSD, opiods, psychedelics, heroin, and quaaludes.

The Coast Guard says that marijuana use remains unacceptable for any safetysensitive employee serving in the maritime industry and subject to drug testing under the Department of Transportation’s drug testing regulations. The DOT’s Drug and A lcohol Test ing Reg u lat ion— 49 CFR Part 40 —does not authorize the use of

Schedule I drugs, including marijuana, for any reason.

As such, Medical Review Officers will not verif y a drug test as negative based upon learning that the employee used “recreat iona l marijua na” or “medicinal marijuana.” Furthermore, mariners/ employees that hold a Merchant Mariner Credential and fail a drug test due to recreational or medicinal marijuana usage, will be subject to administrative action against their credential in accordance with federal regulations.

The Coast Guard’s regulation regarding recreational or medicinal drug usage is firmly aligned with the DOT’s regulation on the use of Schedule I drugs.

Inland • Coastal • offshore • deepsea

OUtLOOk pOSitiVe FOr OFFSHOre, but tighter CAPeX aMId a posItIve outlook for the offshore oil and gas industry in 2014, senior oil and gas professionals are forecasting tighter monitoring of capital expenditures (CA PE X) t his yea r, accord i ng to new research published by DNV GL. The report, “Challenging Climates: The outlook for the oil and gas industry in 2014,” is based on a survey of 438 senior professionals and executives in the global oil and gas sector.

W h i l e 8 8 % of r e s p on d e nt s t o t h e research are confident about the sector, concerns over rising operational costs, a shortage of skilled professionals and competition f rom internationa l riva ls are causing professionals to focus spending on the projects that will provide the greatest return on investment.

The report also reveals that the U.S., Brazil and Australia will be the top investment destinations for 2014, with larger operators seeking to expand into challenging new deepwater environments such as East Africa and the Arctic. These sites, however, won’t see full production until around 2018.

Per Olav Moslet, Arctic Technolog y Program Director at DNV GL, believes t here w i l l be a signif icant increase in

offshore activity in the Arctic during 2014, compared to last year. He notes several significant planned drilling campaigns, such as Shell in the Chukchi Sea off Alaska, and ExxonMobil and Rosneft in Russia’s Kara Sea, among others.

The U.S. Energy Information Agency forecasts that U.S. crude oil production will rise from 7.5 million bbls per day in 2013 to 8.5 million bbls per day this year.

The report says that subsea technologies will see the greatest investment in 2014, along with f loating liquefied natural gas and enhanced oil recovery.

According to the report, the number of companies planning to increase investment in new projects fell by 18% over the past three years, from a high of 63% in 2012 to just 45% in 2014. For the first time since the aftermath of the Macondo incident, overall confidence in the oil and gas sector has fallen—albeit only by one percentage point—signaling a shift in sentiment. key fIndInGs Include: • Despite some signs of caution, the overall outlook for 2014 is confident among industry professionals: 88% are optimistic about the outlook for 2014.

• Respondents expect to keep a closer watch

on costs: 62% intend to pressure suppliers to curb cost increases next year, especially across Asia.

• Uncertainty over oil and gas prices will be more prevalent in 2014: 23% of industry professionals think oil and gas prices will weaken this year.

Elisabet h Tørstad, CEO of DN V GL – Oil & Gas, says: “Oil and gas industry projects are becoming increasingly complex as the industry continues to operate in more challenging environments. The cost of ex ploration a nd production is rising, the industry’s pool of skilled professionals is decreasing and companies are feeling greater pressure on their overheads. This is all leading to great focus and a degree of ‘belt tightening’ across the industry with a view to keeping a tighter rein on capital expenditure.

“We’re also starting to see signs of greater consolidation across the oil and gas industry supply chain. Our research gives clear signs that pressure will be put on suppliers to become more innovative, to reduce costs and to show value in 2014 by providing access to scarce, in-demand skills and by demonstrating real quality in the products and services they deliver.”

this order as well as other order activity, we will be hiring around 150 additional personnel later this spring and early summer. We believe the ATB market is robust and that there will be additional orders of similar barges. We have an excellent history of providing quality products to our customers on schedule and budget and we believe we are in a unique position to serve this market.”

nIcHols brotHers to buIld tuG Meanwhile, Nichols Brothers Boat Builders, Freeland, WA, signed a contract with Kirby to build the 136 ft x 44 ft ATB tug.

The entire ATB unit is designed by Guarino & Cox, LLC, Covington, LA. The tug will have two 5,000-hp EMD 20-710G7CT3 diesel engines.

The tug w i l l be delivered in t he summer of 2015.

kirby tO bUiLd

185,000 bbl Atb unit Houston-He adquartered kIrby corpor atIon will expand its presence in the coastal transport market by spending $75 million to $85 million to construct an Articulated Tug Barge (ATB) that will incorporate a 185,000 bbl tank barge and 10,000 hp tugboat.

The reason for the new addition is simple. Kirby Chairman and CEO Joe Pyne, says, “With the coastal f leet utilization around 90%, increasing demand for the coastwise movements of crude and natural gas condensate, and continued progress in expanding our coastal business to inland customers, new capacity is needed to meet demand.”

Gunderson Marine, Portland, OR, has received the order for the 578 ft ocean tank barge—the largest in its history.

“This Kirby contract will provide a strong baseload of business into 2015,” says Gunderson General Manager Mark Eitzen. “We currently have approximately 700 employees at the Gunderson facility where we manufacture barges and freight railcars. It is expected that because of

February 2014 MARINE LOG 11

UPDATE

ViGOr tO bUiLd first new vessel for tidewater barge f o r t H e f I r s t t I M e I n 30 y e a r s, Tidewater Barge Lines, Vancouver, WA has ordered a new tug. T he operator, which has rebuilt and repowered several vessels in its f leet over its 80-year history, ha s awa rded a cont rac t to Vigor Fab, Vigor Industrial’s “fabrication and newbuild arm,” for the construction of three new state-of-the-art tugboats.

Designed by CT Marine, Edgecomb, ME, the new environmentally friendly tugs will measure 102 ft x 38 ft x 11 ft and will be powered by a pair of EPA Tier III compliant Caterpillar 3516 engines generating 4,500 hp in total—reducing emissions and lowering the tug’s environmental impact.

The vessels were also designed with crew comfort in mind, featuring ergonomic accommodations and comforts to help minimize fatigue and reduce crew injury.

Vigor Fab began construction of the first tug last month and its delivery is set for December 2014. The next two vessels in the series will follow in 2015.

“Tidewater has provided top-notch tug and barge service for more than 80 years,” says Vigor Industrial ’s Br yan Nichols.

“We’re honored they chose us to help make this critical investment in their future.”

No stra nger to investing in its ow n f uture, Vigor has increased its capacity to build new vessels by investing in infrastructure expansion as well as its personnel. “These newbuilds,” adds Nichols, “are evidence of how we are inspiring confidence in our customers and growing our shipbuilding business.”

Bob Curcio, President and CEO of Tidewater, says, “These tugs are a welcome addition to the growing Tidewater fleet. We are excited to make the investments necessary to address the needs of our customers for best-in-class, modern and environmentally friendly equipment. The investments we are making will serve the needs of our customers for many years to come.”

SEA READY

•

HarLey MariNe adds brAtt training tug to its fleet Harley MarIne servIces, Seattle, WA, is now the proud owner of the BRAtt. Harley will use the 25 ft x 12 ft, 450-hp tug in its training program for crew members—enabling employees to familiarize themselves with a tractor tug’s maneuverability and handling capabilities. The vessel, says Harley Marine Ser vices’ Captain Scott Manley, “will greatly enhance our ability to train qualified and quality operators for our fleet.” Moreover, the tug’s compact size allows for that practice to occur in confined spaces.

“One key component to a successful transportation company in the maritime industr y is to employ the most qualified and competent individuals,” says Manley.

The BR Att—the brainchild of Ron Burchett, Burchett Marine Inc., and naval architect Robert Allan Ltd.—has Z-drive propulsion, a fully operational ship-handling winch, and while its small in size, all the necessary equipment of a fully functional Azimuthing Stern Drive harbor tug.

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Inland • Coastal • offshore • deepsea

VT Halter lays keel for aTB Barge, part of Bouchard’s expansion program Mississippi-based VT HalTer Marine recently laid the keel for barge B No. 270, the first in a pair of Articulated Tug Barge (ATB) units being bui lt for Bouchard Transportation Co., Inc., Melville, NY. The 250,000-barrel capacity barge measures 625 ft x 91 ft x 47 ft. It will be coupled with the tug M/V Kim M. Bouchard. Meanwhile, the second unit, the B. No. 272 will be coupled with the tug Donna J. Bouchard.

Certified for Jones Act service by the USCG, the ABS-classed ATB will transport liquid petroleum. Delivery of both ATBs is set for mid-2015.

“The laying of the keel marks a major

milestone in the construction schedule for these units,” says Bill Skinner, CEO, VT Halter Marine.

VT Halter has also recently launched the 4.000 hp tug Denise A. Bouchard.

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New York CitY looks to expand ferry services Despite the devastating impact of Super Storm Sandy on New York City’s shoreline communities in 2012, development of residential properties along the waterfront of the city’s five boroughs is booming. To serve the transportation needs of these fast-growing waterfront neighborhoods, New York City is examining the possibility of creating new ferry services.

Two studies recently released by the New York City Economic Development Corporation (NYCEDC) layout the case for expanded ferry services. The first, a Preliminary Report from the updated NYCEDC Citywide Ferry Study examines the viability of ferry service to nearly 60 waterfront sites across the city.

The second report, Ferry Policy and Planning in New York City: Considerations for a Five-Borough Ferr y System, is a white paper on best practices gleaned during the implementation process for services such as the East River Ferry, Red Hook summer service and Rockaway commuter ferry service.

Four of the five most promising new ferry routes cited by the citywide ferry study are on the East River, connecting Queens to Manhattan. The other is on Staten Island at St. George connecting to West 39th St. The projected capital cost to develop these five routes is estimated at $77 million.

The new routes would be ser ved by passenger-only, either monohull or catamaran ferries.

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February 2014 MARINE LOG 13

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Metal sHark aluMInuM boats, Jeanerette, LA, will be jumping into the pool with the big boys. The small boat builder has acquired a large 25-acre waterfront property in South Louisiana’s St. Mary Parish enabling the builder to accommodate the production of larger vessels.

Metal Shark says the new facility will call for over 60,000 square feet of manufacturing space, 100 new employees and will support both aluminum and steel shipbuilding operations for vessels longer than 250 ft. The investment, worth more than $10 million, will see Metal Shark’s 45 ft, 55 ft and 75 ft vessels, which are currently on order and in various stages of assembly at the builder’s Jeanerette headquarters, moved to the new yard.

Meanwhile, the Jeanerette facility will undergo expansion once more to accommodate its growing business. The yard was previously expanded in both 2011 and 2012.

“Metal Shark has grown exponentially over the past several years, but the size and scope of this newest expansion will completely redefine the company and elevate our role in the marketplace,” says Chris Allard, President, Metal Shark. “While we are expanding our facilities, we are at the same time actively expanding our in-house engineering staff and our in-field training and support team to keep pace with our ambitious slate of new builds.”

Its expansion plans will also see investments in new designs—with the builder expanding its popular Def iant class of v-bottom pilothouse vessels to include vessels up to 100 ft; and the launch of a new Endurance class of pilothouse catamaran vessels. Both class of vessels are fully customizable to meet a variety of mission profiles.

inside washington

MSP, Title XI loan guarantee program get a boost If you asked most amerIcans to associate one word with Congress, it might be “dysfunctional.” Others might dig a little deeper into their vocabulary for a choice word or two. If they need inspiration, just remind people of last year’s government shutdown.

But a New Year does bring new possibilities, as demonstrated by the overwhelming bipartisan support for the omnibus appropriations bill that will fund the U.S. government for the balance of Fiscal Year 2014, which ends September 3.

The massive $1.012 trillion budget deal rolls back some of the cuts that were imposed under the draconian sequestration cuts. The maritime industry made out relatively well. The bill contains full funding for the Maritime Security Program (MSP) at $186 million. The program maintains and preserves the U.S.-flag merchant fleet to serve in national security needs of the U.S. The MSP had been subject to potential sequester and other budget cuts. The $186 million will remain available until expended.

Another $4.8 million was made available for the disposal of obsolete vessels in the National Defense Reserve Fleet.

The bill also makes available $148 million for operations and training activities at the six state-run maritime academies.

Of that appropriation, $11.3 million will be made available for the maintenance and repair of the maritime academies’ training ships. Sixteen million dollars was also made available to the U.S. Merchant Marine Academy (USMMA) for facilities maintenance, repair, equipment and capital improvements.

Under the bill, the Maritime Administrator must submit a report to the House and Senate Committees on Appropriations within 90 days of enactment of the legislation detailing the current and future impacts of reductions in governmentimpelled cargo on the U.S. Merchant Marine as a result of the cargo preference requirements included in the Bipartisan Budget Act of 2013, the Moving Ahead for Progress in the 21st Century Act, the historical reductions in the Food for Peace program, and the winding down of the wars in Afghanistan and Iraq.

Lift for Title XI program Perhaps the biggest surprise of all was the $38.5 million in funding for the Mar itime Administration’s Title XI loan guarantee program. There are currently five applications pending for Title XI Ship Financing Guarantees. One for $155.9 million from Pasha Hawaii Shipping Co.’s container/RO-RO vessel being built at VT Halter Marine, Inc., Gulfport, MS; one for $369.7 million from Legacy Leader, LLC (Edison Chouest) for 10 Platform Supply Vessels; one for $320 million from TOTE Shipholdings, Inc., for its two containerships being built by General Dynamics NASSCO; one from Crowley Tankers, LLC, for the two product tankers being built by Aker Philadelphia Shipyard; and one for $12 million for three ocean deck barges being built by Conrad Shipyard.

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February 2014 MARINE LOG 15

CRUISE SHIPPING

Cruise lines are trying to cater to new tastes to draw in more travelers as first-time cruisers

Optimism abOunds

By William Ebersold

Addition of new ships, refurbished ones and growing first-time cruisers to fuel growth

W

i l l bu mper c a rs, sk y d iv i ng , savory culinary choices and luxurious state rooms lure more travelers to take cruise vacations ? The cruise industry thinks so. It enters 2014 with its usual enthusiastic optimism for solid passenger growth. That optimism is driven by the introduction of new ships and recently enhanced existing ones, more multigenerational cruising, Millennials as a growing source of first-time cruisers, and perhaps even some increase in yields that ought to accompany a fourth straight year of fewer new ship deliveries. There is also the unexpressed hope that early positive reports during the wave season for new bookings portend a respite from early-year events that have marred each of the previous three years—the Arab Spring, Costa Concordia tragedy and Carnival Triumph public relations nightmare.

Cruise Fleet and Order bOOk As of January 1, 2014, the global cruise f leet (1,000 g t and above) tota led 340 16 MARINE LOG February 2014

ships of 17.8 million gt and 462,000 lower berths. Six new ships were delivered in 2013 (553,000 gt and 14,600 berths), representing 3.2% of the current global fleet, down from 4% the previous year when seven ships were delivered. This level of deliveries will continue at least through 2015, and is less than half the deliveries in 2012, the last year that reflected pre-recession ordering levels.

Three of the six ships delivered in 2013 were in the 140,000 gt/ 4,000 passenger category, two were small luxury vessels, and the last at 2,200 passengers has to be considered only a mid-sized vessel among today’s mass market brands.

Despite a f lurry of ordering at end of 2012 that fueled optimism for increasing amounts of new construction, the number of new orders in 2013 was disappointing.

New orders were placed or options were exercised for only six new ships during all of 2013, the same as during the fourth quarter of 2012. In terms of capacity, the ships ordered during 2013 had only about half the capacity of the nine ordered in 2012. Of

particular interest is that there were no firm orders from any of the Carnival brands, although Seabourn has now confirmed an order for a 40,000 gt, 604-passenger luxury vessel from Fincantieri. Royal Caribbean is expected to exercise an option for a fourth Oasis Class ship later this year. MSC Cruises is also said to be close to an order with STX France for two new ships with an option for two more, business estimated to be worth more than $3.3 billion.

Among the handful of orders that were placed in 2013, an order by Asian market leader Genting Hong Kong (Star Cruises) for one 150,000 gt ship at Meyer Werft ref lects not only optimism towards the Asian market, but also the need to meet growing competition in the region from Royal Caribbean, Costa, Princess and others.

In 2014, a total of six ships are planned to be delivered, adding 689,000 gt and 18,200 berths to the global f leet. Beyond that, seven ships are scheduled for delivery in 2015, with a capacity close to that in 2014. Not until 2016 will deliveries exceed

CRUISE SHIPPING 1 million gt, with over 25,000 lower berths added—the largest numbers since 2010.

Included among the 2014 deliveries are the first of Royal Caribbean’s Quantum Class (25% smaller than the Oasis Class, but still the third largest in the global fleet at 167,800 gt), the first new ship to be built

by TUI Cruises and the first for new cruise line Pearl Seas Cruises (finally delivered after being ordered in 2006).

As of January 1, 2014, the total order book through 2017 amounted to 24 ships, a total of 2.7 million gt and 68,000 lower berths with a value of $16.1 billion, virtually the same as one year earlier. The order book stands at a respectable 14.7% of existing global fleet capacity.

There are 14 different cruise brands represented in the 24-ship order book. More than 90% of the capacity is being built in Europe, with shipyards in Germany and Italy accounting for nearly three-fourths of the total. More ships are being built in Italy (11 vs. 7), but a larger share of the capacity is being built in Germany (42% vs. 34%).

Offsetting the lower level of new cruise ship construction in recent years has been a significant increase in the number and scope of refurbishment projects that virtually all cruise lines have underway.

Passenger Traffic As part of the cruise lines’ evolution into a global industry, it was logical for the cruise line associations to consolidate their efforts into a single global voice and resource on technical and regulatory issues and global communication. At the end of 2012, that effort culminated in an agreement by the associations (now numbering 13) to operate under a unified structure. As a result of that broadened structure and wider membership, passenger traffic figures recently released by CLIA for its member lines took a quantum leap from those released one year earlier and consequently are not comparable to earlier years. The expanded CLIA membership now includes river cruisers, further exacerbating the comparability issue. However, despite the lack of comparability with earlier years, the figures still provide a reasonably accurate portrayal of industry development.

CLIA reported that its member lines carried an estimated 21.3 million passengers in 2013 and are projected to carry 21.7 million in 2014, a growth of slightly less than 2% and less than the growth in fleet capacity.

North America remains the largest global source market for cruise passengers, 55% of the total and considerably more than the 30% generated by European markets. The

seabourn cruise line has confirmed an order for a 40,000 gt, 604-passenger luxury ship with italy’s fincantieri. Pictured is the 450-passenger seabourn Quest

U.S., U.K and Germany are the only countries that generated more than one million passengers in 2013, with the U.S. total more than five times that of either of the others.

CLIA appropriately notes the growth rates in international source markets.

Unfortunately, its major market overview casts the grow th percentages in a f ive-yea r f ra me, t hereby mask ing t he recent flatness of the British market, slower growth in Germany and poor performance in Southern European markets. That recent performance, while certainly not indicative of growth potential in those areas, has resulted in withdrawal of capacity from those markets and significantly increased deployment in the Caribbean, the lines clearly banking on continuing and accelerating recovery of the U.S. economy and the fact that the newest and largest ships are commanding premium rates.

The slower f leet growth over the last several years ought to have resulted in real improvements in yield were it not for the overhang of global economic, political and regulatory uncertainty and the added challenges of coping with events such as the Concordia and Triumph. However, apart from the ships that are able to command a premium by virtue of the incredible array of features offered, the

added capacity in the Caribbean is likely to keep overall ship fares from rising significantly in the short term.

A brief uptick in ship fares was noted in the Bureau of Labor Statistics’ ship fare component of the U.S. Consumer Price Index during the last third of 2012, but even at the improved level ship fares were still about 12% below pre-recession levels.

regulaTory issues Regulatory uncertainty surrounding the implementation of the North American Emissions Control Area (ECA), with its low sulfur fuel requirements, has abated somewhat, as the U.S. Environmental Protection Agency has opted to grant waivers through 2018 for cruise lines t hat aggressively develop scrubber technology, which seems to have emerged as the preferred solution for several cruise lines.

Carnival Corporation responded with an agreement to invest $180 million in the research, development and installation of the technology on 32 of its ships over the next three years.

There are now four designated ECAs in effect, with the entry into force on January 1 of the United States Caribbean ECA for ships trading in certain waters adjacent to Puerto Rico and the U.S. Virgin Islands. ■ February 2014 MARINE LOG 17

CRUISE SHIPPING COnCORDIa to be refloated and towed away by June Two years have passed since the Costa Concordia tragedy occurred off the coast of Italy’s Giglio island, killing 32 passengers and thrusting cruise shipping safety into the media spotlight. While ceremonies marked the solemn anniversary, details regarding the progress of the ship’s salvage emerged.

The operation, considered to be the most daunting salvage ever attempted on a ship of its size, will see the vessel removed in one piece from the environmentally sensitive waters off Giglio.

Months of preparation by Titan-Micoperi Srl, a joint venture bet ween Crowley Maritime’s T itan Salvage, and Italy ’s Micoperi, culminated in the righting of the ship last September. Since being raised, the ship has been resting on the false seabed created beneath it as part of the parbuckling procedure at a depth of 30 meters.

Thir ty sponsons will be installed on the ship and filled with water. A pneumatic system will be used to empty the water gradually, providing sufficient buoyancy for

floatation. After refloating the ship will be transported to its final port of destination for dismantling and recycling.

The matter of what port the ship will be towed to, however, has not been settled. The decision is expected to come by March.

According to reports, 12 ports and companies in six different countries are bidding for the contract. Italy’s environment minister Andrea Orlando has reportedly said that the government would prefer “a domestic destination” for the ship’s dismantling.

CRUISE SHIP ORDERBOOK THROUgH 2017 (As of January 1, 2014) Cruise Line/Vessel

Shipyard

GT

Lower Berths

Est. Delvy

Mitsubishi H.I. Mitsubishi H.I.

Est. Price* ($ Mil)

125,000 125,000

3,250 3,250

Mar 2015 Mar 2016

$648 $648

Fincantieri

135,000

4,000

Dec 2016

$780

Fincantieri

11,000

260

May 2015

$150

Fincantieri

132,500

3,708

Oct 2014

$792

Fincantieri

99,000

2660

Feb 2016

$520

144,000 163,000 163,000

4,000 4,200 4,200

Jan 2014 Oct 2015 2017

$850 $917 $917

141,000

3,611

Mar 2015

$805

8,700

210

Jun 2014

$90

Fincantieri

139,000

3,560

Apr 2014

$758

Fincantieri

54,000

738

Jun 2016

$450

Meyer Werft Meyer Werft STX France Meyer Werft

167,800 167,800 225,000 167,800

4,100 4,100 5,400 4,100

Oct 2014 May 2015 Jun 2016 Jun 2016

Meyer Werft

150,000

3,364

Oct 2016

$960

STX Finland STX Finland

99,300 99,300

2,500 2,500

May 2014 Apr 2015

$607 $607

Fincantieri Fincantieri Fincantieri Fincantieri

47,000 47,000 48,000 48,000

998 998 944 944

Mar 2015 Jan 2016 late 2016 2017

$365 $365 $365 $365

AIDA Cruises AIDAprima Unnamed Carnival Cruise Lines Carnival Vista Compagnie du Ponant Unnamed Costa Cruises Costa Diedema Holland America Line Unnamed Norwegian Cruise Line Norwegian Getaway Norwegian Escape Norwegian Bliss

Meyer Werft Meyer Werft Meyer Werft

P&O Cruises

Britannia

Fincantieri

Pearl Seas Cruises Pearl Mist

Chesapeake SB

Princess Cruises Regal Princess Regent Seven Seas Cruises Seven Seas Explorer Royal Caribbean International Quantum of the Seas Anthem of the Seas Unnamed Unnamed

$943 $943 $1,320 $935

Genting Hong Kong (Star Cruises) Unnamed TUI Cruises Mein Schiff 3 Mein Schiff 4 Viking Ocean Cruises Viking Star Unnamed Unnamed Unnamed

“ Excludes one ship whose future delivery is uncertain due to a shipyard bankruptcy, “ one from Seabourn Cruise for a 604-passenger vessel from Fincantieri, and one at Xiamen SB for Chinese interests with delivery late in 2018. * Euro-denominated contracts converted to USD at the rate of 1 euro=$1.36 Source: Clarkson Research Services

18 MARINE LOG February 2014

MIDDLE EAST SHIP REPAIR

Damen Shipyards Sharjah, a joint venture between Albwardy Marine Engineering and the Damen Group, under construction

Mid East ship rEpair sEt for a shakE-up Despite tough competition, two new facilities will open in early 2014,

by Paul Bartlett, Contributing Editor while others continue to expand

N

ew shipbuilding and repair capacity coming on stream early in 2014 is likely to add to price pressure in an already fiercely competitive Middle East repair environment. But firm energy prices continue to support the region’s buoyant offshore sector which promises to provide a substantial volume of maintenance, upgrade and new construction business in the months ahead.

Damen Shipyards Sharjah (DSS), a joint venture between Albwardy Marine Engineering (AME) and the Netherlands-based Damen Group, officially opened for business on January 12. The whole facility has been designed and built from a large area of sand in less than three years and now offers a spacious new construction and repair yard.

The facility, sited in the Hamriyah Free Zone a few miles from the center of Sharjah Emirate in the United Arab Emirates, lies at the heart of the Arabian Gulf. It has been built specifically to target the growing number of workboats and offshore craft up to about 120 meters in length operating in the region. A Rolls-Royce ship lift provides access to eight repair berths, two of which are under cover.

On the new construction side, the yard has been designed with a clear f low path from steel plate cutting through the new construction hall to dry berths prior to launch from the ship lift and subsequent outfitting alongside. Although repair and new construction are completely different businesses, the close involvement of Damen’s Hennie den Toom in the design process has been

instrumental in the shipyard’s design and specification.

Den Toom has run AME out of Al Jadaf in Dubai since the joint venture between the Dubai company and Netherlands-headquartered Damen was established in 2008. But he has many years of experience in both the setting up and operation of shipyards in various parts of the world and of the Middle East region. He handed over to ex-Svitzer executive Lars Seistrup earlier this year.

Seistrup is convinced of the merits of the new facility which, he points out, has already undertaken repair and conversion projects for a range of local and international clients including offshore marine transport companies Hornbeck Offshore and Seacor Marine of the U.S., Singapore’s Miclyn Express Offshore and SeaContractors of Holland. DSS already has an order book comprising 10 vessels.

Unlike other regional shipbuilders and marine engineering firms—including Grandweld and Goltens which are now located at smart new facilities in Dubai Maritime City—AME bosses were not keen on the concept of common-user facilities. “They wanted to control their own destiny,” one source commented.

This, Seistrup agrees, is a key selling point. DSS management is in complete control and does not have to rely on any third party for services. And unlike the Al Jadaf site, the new yard is accessible direct from the open sea every day of the year and will therefore be able to respond more effectively to clients’ requirements, particularly in time-critical circumstances.

February 2014 MARINE LOG 19

MIDDLE EAST SHIP REPAIR Meanwhile, a few miles to the west, another new shipyard is due to open formally, probably this month. Built on land reclaimed from the sea in Saudi Arabia’s Dammam, the privately owned Zamil Group facility will be targeting repair and new construction of similar-sized vessels, with a particular offshore focus.

The new yard, which will supplement an existing smaller facility nearby, will provide construction, repair and support for Zamil’s own rapidly expanding fleet but the facility will also be targeting third-party repair and newbuild business for regional operators as well as military work for Saudi Arabia’s Navy.

The company has invested more than $500 million since 2011— both on f leet expansion and the new shipyard— and intends to spend another $200 million before the end of 2014. It is also undertaking a major capital investment program at the Jeddah Ship Repair Yard on Saudi’s Red Sea coast where two floating docks are currently undergoing repair and upgrade.

Zamil’s successful bid for the 10-year lease of the yard in mid2013 addresses a serious shortage of ship repair capacity in the Red Sea. When upgrading of the run-down facility sited within Jeddah Islamic Port is completed, the yard will be well-placed both for passing business – around 6,000 vessels now call in Jeddah each year – and for the support of Saudi Aramco’s expanding offshore activity in the area.

In a third move to boost the company’s regional ship repair presence, Zamil has established a joint venture with French naval shipbuilder DCNS to set up a new shipyard in Yanbu. The 500,000 square meter facility will be the largest repair facility in the Red Sea through which an estimated 25,000 merchant vessels sail each year.

It will target the repair and maintenance of naval, offshore and merchant vessels up to panamax size but will also focus on the build-up of Saudi Aramco’s western naval f leet. It is understood that a contract worth close to $1 billion covering Zamil’s share of this work has already been signed.

The new yards are an important part of a rapidly changing picture that could see several other new facilities spring up in the months ahead. Last August, Saudi Aramco and Bahri – a rebranded organization formerly known as the National Shipping Company of Saudi Arabia but now incorporating Saudi Aramco’s tanker subsidiary Vela – announced a joint exercise with Singapore’s Sembawang to examine the feasibility of building a new “world class” shipyard on a greenfield site in Saudi Arabia.

Meanwhile the region’s heavy-hitters including ASRY, Drydocks World Dubai, N-KOM in Qatar and Oman Drydock Company continue to compete for low-yield ocean-going repair contracts with specific targets including LNG carrier repairs and the upgrade and refurbishment of drilling rigs and accommodation units.

Sharjah-based Lamprell, a specialist rig repair and builder, is back on its feet after a series of loss-making contracts—including two wind carriers for Fred Olsen—brought the London-listed company to its knees. Now, however, Lamprell has an order backlog of more than $1 billion, a potential pipeline of work worth several times that and about two years of what executives describe as “breathing space.”

Lamprell is also looking to diversify into new business streams including FPSO modules, LNG modules and new, more sophisticated rigs. ■

Oman DryDOck tO expanD LnG carrier services WitH HeLp FrOm partner Dsme

The Oman DryDOck cOmpany (ODC) undertook 75 dry dockings and repairs last year and has performed a total of 190 since the yard opened in Duqm in Central Oman in 2011. ODC also saw staff numbers increase to more than 2,000 in 2013. The vessels ODC has worked on include Very Large Crude Carriers (VLCCs), crude oil tankers, container ships, LNG and LPG carriers, chemical carriers, bulk carriers, as well as dredgers, RO-ROs and barges. Clients include Dynacom Ship Management, NYK, MSC and Exmar Ship Management, Gulf Marine, the Shipping Corporation of India and Pacific International Lines.

ODC marketing director Johnny Woo says key jobs undertaken included the dry docking and repairs of two crude oil tankers the Karachi, operated by Pakistan National Shipping and the D & K-1 operated by Synergy Maritime. ODC further undertook work on the MT Gladiator, the first ship from Dynacom Ship Management. As a result ODC now has the ability to work for Dynacom on its other ships including the MT Shanghai, MT Smyrni, MT Eliza and MT Beijing.

Woo says the contracts undertaken showcased ODC’s ability to complete complex jobs with speed and efficiency.

Woo says the company is delighted with its 2013 growth and it had ambitious expansion plans for 2014, harnessing its ability to handle

22 MARINE LOG February 2014

any size of ship with its two giant dry docks and vast space.

“In 2013, we saw ODC continue to establish itself as one of the main ship repair and conversion locations in the Middle East,” he says. “Our focus moving forward will be to win more business from existing and new customers operating carriers, tankers and container ships. We see real potential for growth particularly in becoming a center of excellence for the repair of LNG carriers (LNGC). As a result we will be ramping up the promotion of our services, which are among the most advanced in the world. This includes offering customers the in depth technical support we receive from our partner Daewoo Shipbuilding and Marine Engineering Company Ltd (DSME) and its subsidiary DSEC. This year will see DSEC forge a closer partnership with ODC to provide specialist LNGC repair technology.

This will cover areas such as cargo containment systems and the supply chain of various materials such as INVAR, insulation boxes, membranes, prefabricated panels and cryogenic safety valves. We are also investing in new facilities including renovating our cryogenic shop so it can cater to repairing up to four LNGCs at any one time.

“Our expansion into LNGC will further be strengthened by our new license to support the French engineering firm Gaztransport & Technigaz (GTT) which specializes in cargo containment systems for high-end liquefied natural gas carriers.”

Elsewhere, Woo says ODC saw major growth opportunities in the offshore market.

“ODC can provide repair and conversion services to jack up drilling rigs, drill ships and FPSOs,” he says. “We also offer a range of engineering, testing and trial services for offshore projects including the construction of offshore accommodation barges, offshore jackets and platforms as well as top-side modules and subsea pipeline manifolds.”

SHIPYARDS

The 285 ft offshore support vessel Nicki Candies on Bollinger Fourchon’s new 10,500-ton lift capacity dry dock

SHIPYARDS BULK UP U.S. shipyards expand, add new dry docks

S

mall and midsize shipyards along the U.S. Gulf and West Coasts are in a bullish mood, adding new dry docks and expanding their operations and waterfront property to meet the increased workload and demand for new shipbuilding and ship repair projects. A key factor has been the growth in the Jones Act fleet, particularly the influx of new, larger Offshore Support Vessels, Construction Vessels and IMR vessels to support deepwater drilling activity in the U.S. Gulf of Mexico.

One of the smaller shipyards looking to grow is privately held Hendry Corporation. The Tampa-based ship repairer was the beneficiary of a Small Shipyard Grant from the U.S. Maritime Administration that enabled the shipyard to add a new 2,500-ton lift capacity floating dry dock.

“The grant was really huge for us,” says Hendry Corporation Vice President Joe Cimono. “Historically, a large part of our business is generated by repairing U.S. Coast Guard vessels, 87 ft and 110 ft patrol boats. The new dry dock will enable us to expand our business.”

Hendry’s existing dry dock was a World War II vintage AFDL, which had been used in the South Pacific to service 263 vessels.

Hendry Corp. acquired the dry dock in the early 1970s.

“It really handcuffed us in the size of vessels that we could handle,” says Cimino. “So, in 2011, we applied for a Small Shipyard Grant. After receiving the grant, Cimino says Hendry started construction of the dry dock in 2013. Additionally, Hendry had to build a catch basin to contain all of the residue and paint from repair and water blasting operations.

by John R. Snyder, Publisher & Editor-in-Chief

“We spent about a year going through the environmental audit and getting permits from the U.S. Army Corps of Engineers,” he says.

The new 2,500-ton-capacity dry dock is named the Capt. F.M. Hendry, and measures 250 ft long by 72 ft wide.

Ironically, a ship from the Maritime Administration’s National Ready Reserve Fleet—Texas A&M University’s training vessel General Rudder—will be the first vessel serviced on the dry dock on February 15. The training vessel is in for a $2 million overhaul.

An improving economy will also be a factor in generating repair work. Cimono says, “With the economy picking up, owners are performing repairs that they had put off.”

Besides the addition of the new dry dock, Hendry plans to expand into light fabrication work and construct barges up to 200 to 300 feet in length.

Ship repair services expand in Pascagoula Houston-based Signet Maritime Corporation, which has a fleet of tugs, push boats and ocean deck barges, also operates a full service shipyard in Pascagoula, MS. It is investing $7.2 million in infrastructure improvements at the shipyard, Signet Shipbuilding & Repair (SS&R), to support an increased workload and growth.

As part of its infrastructure improvements, SS&R has added a 150-ton crawler crane, and is performing dredging, renewing its 1,000-foot waterfront bulkhead, adding a new fabrication shop, expanding its dry dock and concrete base for vessel repairs, and improving its sand blasting and painting area.

With a new tractor tug under construction and numerous repair February 2014 MARINE LOG 23

sHIPYARDs

Signal International’s Pascagoula rig repair facility has a multi-million-dollar backlog, servicing rigs for Noble Drilling, Diamond Offshore, Transocean and Hercules Offshore. Signal has a 30,000-ton lift capacity dry dock and 3,000 linear feet of deepwater waterfront

projects, SS&R has experienced steady growth in its Pascagoula operations. Signet has added more than 30 specialty craft positions, and as part of its improvement plan, promoted Joseph W. Dahl to Vice President & General Manager of the shipyard.

“Joe has worked with Signet in various capacities for nearly two decades,” says Signet Maritime Corporation President J. Barry Snyder.

“Through his hard work, dedication, and commitment to quality maintenance and construction, it was only natural that he be promoted to vice president of our growing Shipyard. Dahl has been integral to the expansion, overall growth and implementation of Tier 3 propulsion and power generation technology to our marine assets.”

Dahl is a Kings Pointer, with over 30 years’ experience in the industry sailing as a Chief Engineer and working with marine vessels in maintenance, repair and new construction. His experience includes seagoing ships, ocean-going ASD tractor tugs, harbor tugs, inland boats, and barges working both as an owner’s and shipyard representative.

Me a nw h i le , l a s t ye a r, ne ig hb or i ng V T Ha lte r M a r i ne Inc., a subsid ia r y of V T Systems, Inc., ex pa nded it s sh ip re pa i r bu si ne s s w it h t he add it ion of a 12 ,0 0 0 M T f loating dry dock at its Pascagoula facility from the Philippines.

T he do c k , me a s u r i ng 5 4 6 f t i n le ng t h , 10 5 f t i n bre adt h a nd w it h a de pt h of 4 6 f t, i s pa r t of a n over a l l expansion plan at the south yard, where plans are to service semisubmersible drilling rigs and Panamax-size ships. In conjunction with the new ship repair facility, last year the Jackson County Port Authoity awarded a $5.9 million contract to C.F. Bean, LLC, for dredging and a $13.1 million contract to J.E. Borries Inc. for bulkhead work. The new facility is expected to be up and running next month to serve commercial and military vessels.

24 MARINE LOG February 2014

Strong backlog of rig repair for Signal International Signal International, headquartered in Mobile, AL, operates four shipyards on the Gulf Coast, two in Pascagoula, one in Orange, TX, and another in Mobile. “With the new 300 ft-plus Construction Support Vessels and Offshore Service Vessels coming into the market, we feel that Mobile’s deep water port and our two large dry docks put us at an advantage for repair,” says Signal Ship Repair’s Joe Mayhall. “Especially with our ability for high blocking and outstanding machinery department.”

Mayhall is also optimistic that SSR’s repair business will benefit from the coastwise oil trade, dry docking ATB tankers and medium-range Jones Act tankers. He sees additional future opportunities from newbuild U.S.-flagged Panamax tankers and containerships when they enter service.

According to Mayhall, SSR receives about 30% of its repair business from the dredge industry. “With continued beach replenishment contracts, habitat restorations, river and harbor dredge maintenance ongoing, this market continues to be a good source of business,” he says.

Liquefied Natural Gas (LNG) as a marine fuel has already made in-roads into the oceangoing market in the U.S., and is starting to draw strong interest from inland waterways operators. Mayhall says SSR has been in talks with several inland river operators concerning the conversion of their tugs to LNG. Signal International’s Pascagoula rig repair facility has backlog well into the fourth quarter of 2014. It is currently working on rigs for Noble, Diamond, Transocean and Hercules Offshore. The work includes Special Survey, steel, paint, mat repairs, accommodation upgrades, thruster overhauls and dry docking.

Mayhall says that Signal’s 30,000-ton lift capacity dry dock and

SHIPYARDS 3,000 linear feet of deepwater waterfront gives the rig repairer the ability to have multiple jobs with various scopes of work going on simultaneously.

“As the Gulf of Mexico rebounds after the Macondo incident and new rigs coming into the area, we look forward to a growing rig repair market for the next eight years.”

Over the last 12 months, Signal’s Orange, TX, facility, has delivered two 20,000 dwt ATB with accompanying 6,000 hp tugs to Kirby Offshore, and two 300 ft x 100 ft x 20 ft and three 260 ft x 72 ft x 16 ft heavy ocean deck barges to McDonough Marine.

The Orange facility would seem well positioned for the construction of new ATB tankers, power barges and LNG bunkering barges.

Bollinger adding shipyard in Port Fourchon, delivers new dry dock work The development of Bollinger’s new facility on a 46-acre site at the Port Fourchon, LA, is well underway. “We needed to grow our footprint in Fourchon. There was a real demand from our customers,” says Bollinger Shipyards COO Ben Bordelon.

Bollinger opened its existing shipyard in Fourchon in 1993.

Bordelon says the new full service shipyard—which the company aims to open in October of this year—will have four dry docks, including two 10,000-ton, one 5,000-ton and one 2,000-toncapacity units. The new shipyard will also have a fabrication shop, machine shop and a Bollinger Business Center, which will have year-round office space for vendors. Permanent housing for workers is also being built. The new shipyard is being called Bollinger Fourchon North and is aimed at the large deepwater offshore support vessels and IMR vessels entering service in the U.S. Gulf of Mexico.

“Over the last two years, the repair market has been down,” says Bordelon, “but I anticipate an uptick in the repair market based on the vessels that are working out of Fourchon.”

“One of the biggest challenges we face is growing the workforce,” says Bordelon. Bollinger is in the process of doubling its workforce in Fourchon. It has between 150 and 200 workers at its current Bollinger Fourchon South facility. Once the new shipyard comes on line, Bollinger Fourchon South will focus on drill rig and topside repairs.

Right now, Bollinger Fourchon South is home to the recently arrived new dry dock, Mr. Paul. It has a 10,500-ton lift capacity dock, measuring 320-ft x 100-ft between the wing walls. The Mr. Paul is named in honor of long time Bollinger Vice President Paul Bailleaux.

The dry dock is eventually destined for Bollinger’s 46-acre facility in the northern expansion.

Ocean class barges building at Conrad Deepwater Headquartered in Morgan City, Conrad Shipyard has four facilities on the U.S. Gulf Coast—three in Louisiana and one in Texas.

Its largest shipyard is Conrad Deepwater facility, which is located on more than 100 acres on the Intracoastal Waterway on Bayou Boeuf in Amelia. In 2013, Conrad Shipyard completed the upgrade of a dry dock that now has a 12,500-ton lifting capacity. All told, Conrad Deepwater has six dry docks that can service the largest offshore support vessels operating in the Gulf of Mexico, as well as pipelay barges, crewboats and liftboats.

Like all of Conrad Shipyard’s facilities, Conrad Deepwater also performs new construction. According to a Title XI ship loan guarantee filled with the Maritime Administration, Conrad is building three ABS-classed ocean deck barges for J.R. Gray Barge.

Vigor plans acquisition of Alaska shipyard On the U.S. West Coast, Vigor Industrial, already a regional shipbuilding and repair powerhouse, is in negotiations to expand its business in the Pacific Northwest, with the acquisition of Seward Ship’s Drydock, Seward, Alaska.

Vigor reports that the owner of Seward Ship’s Drydock has signed a letter of intent to sell the assets of the Seward, Alaska, shipyard company to Vigor Industrial. The two companies are currently negotiating the terms of the potential sale and expect the sale to be finalized after satisfactory completion of environmental, financial and business due diligence and after Seward Ship’s Drydock, Vigor and the City of Seward reach a final agreement on certain details of the agreement.

Seward Ship’s Drydock is a full service shipyard and drydock

Aerial view of Signal’s Orange, TX, facility, which has recently built two ATBs for Kirby Offshore

February 2014 MARINE LOG 25

sHIPYARDs facility, in Seward, AK. Under the terms of the tentative deal, the Seward shipyard would join Vigor as a subsidiary of the company’s Vigor Alaska subsidiary.

Back in 2012, Vigor acquired Alaska Ship & Drydock, Ketchikan, AK. Since renamed Vigor Alaska, the shipyard has two dry docks, one 10,000 long ton capacity and the other another 2,500 long ton capacity, and a 70,000 square foot indoor assembly hall on its 16.5 acre facility.

Seward Ship’s Drydock President James Pruitt says, “In order to continue to grow and expand the business, additional capital was required, and this, together with a desire to further diversify my financial holdings, made this an opportune time to seek a buyer for the business. Vigor Industrial has an impressive vision for Seward Ship’s Drydock and I am confident that I have made a decision which will leave the future of the business, and its employees, in safe hands.”

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The acquisition seems to fit well with Vigor’s growth philosophy. Vigor Industrial President and CEO Frank Foti, says, “Vigor continually strives to improve our service to the maritime industry, and the purchase of this strategically located shipyard will expand our ability to provide the services our customers need, when they need them, where they need them.”

Foti explained that the move was part of Vigor’s larger plan to improve the company’s service offerings in Alaska for existing customers in the fishing, oil and gas and marine transportation sectors as well as increase overall capacity to meet expected increases in demand from arctic drilling and the revitalization of the commercial fishing fleets in the area.

“Beyond strengthening our business, we look forward to providing even greater family-wage job opportunities for Seward’s current workforce and Alaskans overall,” Foti said. He explained that the purchase will bring the strength of Vigor’s physical, financial and human capital to bear on the yard, which will empower the yard to land more projects and larger-scale projects, translating to more work and sustainable employment for Alaska residents. In addition, Foti said, Vigor will leverage its existing strong public/private partnerships in Alaska to maximize opportunities for the Seward yard.

Seward Ship’s Drydock has a 5,000-ton Syncrolift capable of lifting boats up to 350 feet in length with an 80-foot beam. The shipyard also has a 250-ton Travelift and three side rail berths, one 350 ft and two 180 ft in length.

Largest dry dock to enter service this summer Meanwhile, at its Portland, OR, facility, Vigor Industrial will be adding an 80,000-long ton lifting capacity f loating dry dock ordered by Vigor Industrial from China. The 960 ft x 186 ft (between wing walls) monster is being built by China’s Daoda Marine Heavy Industry Company in Jiangsu Provence and will be towed in three pieces to Portland, OR, for assembly.

The new dry dock will be an impressive site because it will be in three pieces stacked one on top of the other for shipment. It won’t reach the U.S. West Coast until next month. Once assembled the dry dock will be put into service at Vigor’s facility in Portland, sometime this summer. Its first job, says Vigor, will most likely be the preparation of Portland’s largest dry dock for use at Vigor’s Seattle facility, where it will be used to service ships up to Panamax-size. ■

SHIPYARDS GuLF COASt ShIPyArD GrOuP LeASeS ADDItIOnAL SPACe In GuLFPOrt GulF COAST SHIPyArD GrOuP, Gulfport, MS, has leased space at the Port of Gulfport, to complete the series of dual fuel platform supply vessels that it is building for Harvey Gulf International Marine, New Orleans, LA. The shipbuilder will utilize 15,000 square feet of warehouse space and 400 linear feet of dock space on the Port’s East Pier. Lease terms are for three years with three one-year options for renewal beginning March 1, 2014.

“We envision having 20-70 workers on the port while completing each vessel,” says John Dane III, President of Gulf Coast Shipyard Group (shown in photo at right). “These will be trade jobs—painters, electricians, carpenters, mechanics—some of whom will be Gulf Coast Shipyard employees and some of whom will be employed by our subcontractors and suppliers.”

Gulf Coast Shipyard Group has a contract to build six 302 ft x 64 ft x 24.5 ft Liquefied Natural Gas (LNG) platform supply vessels for Harvey Gulf International Marine, with options for another four.

The ABS-classed dual fuel PSVs are designed by STX Marine, Inc., with offices in Vancouver, BC, Canada, and Houston, TX. Gulf Coast Shipyard expects the first vessel to be at the Port of Gulfport in mid-March.

Gulf Coast Shipyard Group currently operates two shipyards, one in Gulfport and another in New Orleans. Trinity Yachts, a builder of megayachts, is a division of the Gulf Coast Shipyard Group.

Gulf Coast Shipyard Group designs and builds vessels in aluminum, steel and composite. It has in-house engineering and undercover construction facilities, building vessels from 10 to 75 meters in length.

Last year, Littlejohn & Co., LLC, Greenwich, CT, invested into the group to support the company’s strategic growth plans and investments in its shipyards. At the time last May, Dane said, ”Littlejohn has an impeccable reputation along with the ability to bring equity, strategy and experience in order to successfully grow our operations and market share. I am also happy to announce that we will be starting a $9 million capital improvement program to the Gulfport, Mississippi, yard which will increase our efficiency and annual output. These improvements will also upgrade our Syncrolift to 4,300 tons in anticipation of building ice class vessels for Arctic operations.“ The Port of Gulfport is undergoing a $570 million restoration and is roughly 18 months from completion. “We’re excited about doing business with Gulf Coast

Shipyard Group and welcome the new business opportunities and jobs they will bring to the Port of Gulfport,” says Jonathan Daniels, Executive Director and CEO of the Mississippi State Port Authority “It is important to note that the vessels, powered by LNG fuel, will have reduced emissions and fit in well with the Port’s newly approved Green Marine initiative.”

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February 2014 MARINE LOG 27

COATINGS

Protecting your rudder from the start Coatings play central role in reducing your GHG emissions

C

avitation corrosion damage on the rudders is fairly common and expensive, no matter what type of vessel you operate.

Belgium-based Hydrex NV says this is due to the rudder not being properly protected against cavitation and the resulting erosion and corrosion damage.

Hydrex says its Ecospeed coating is a perfect solution to protect against this costly problem for both newbuild vessels and vessels of all shapes and sizes that have been in service. In recent months, for example, the rudders of several types of vessels were given an Ecoshield protective coating at shipyards in China, the U.S., Poland and the U.K. These vessels include three container ships, an oil tanker, a tug and a vehicle carrier.

What makes Ecospeed unique is that it contains a high concentration of embedded glass platelets. It has a very low amount of volatile organic compounds (VOC) and is typically applied in two coats of 500 Âľm dft. The coating derives its excellent anti-corrosive properties from its relatively high film thickness and the presence of glass platelets, which act as an impermeable barrier. It is extremely durable, making it perfectly suited for regular in-water surface treatment.

Hydrex says that tests carried out in a flow channel in Grenoble confirmed that Ecoshield performs extremely well under severe cavitation. The coating prevents corrosion damage from reoccurring on an existing ship or can protect the rudder of a newbuild

28 MARINE LOG February 2014

Compiled by Marine Log Staff

vessel against cavitation and corrosion damage from the very start for the life of the vessel.

Protection from the start Protection of your rudders is best begun at the newbuild phase.

When a vessel comes into dry dock, maintenance of its stern area, especially cavitation damage repair, can take a long time. There are strict procedures concerning blasting, painting, welding and propeller and stern tube seal work. Painting is then assigned to the end of the schedule. As a consequence it may be rushed or not get done at all or else prolongs the stay in dry dock.

With an Ecoshield application one can avoid these problems from day one because the underwater gear will not need to be repainted during future dry dockings. Ecoshield will remain intact for the lifetime of the vessel and is guaranteed for ten years. At the most, quick and easy touch-ups amounting to less than 1% of the surface area will be required. Planning the maintenance of the vessel’s stern area therefore becomes much easier.

fix the surface first Subsea Industries, a Hydrex company, has just unveiled Ecofix, a complementary product to Ecoshield for filling and building up a corroded and pitted steel surface to its original form prior to recoating with Ecoshield. Ecofix is as tough as the steel itself, machinable,

COATINGS and can be used to repair most pitting or corrosion damage on rudders, stabilizer fins, thrusters and other underwater gear.

Ecofix can be used to restore the steel to its original shape with a smooth surface prior to recoating. Ecofix uses the same basic resin as Ecoshield—which means the coating can be appliedjust one hour after the filler. The bonding and hardness are extraordinary.

This is the effective alternative to metal facing or very expensive alternative fillers. And because it is part of the Ecospeed/Ecoshield family, it is fully compatible with the coating.

Ecoshield and Ecofix are also suitable for stabilizer fins, thrusters, nozzles and other underwater ship gear that needs special protection from corrosion. Now these items can also be repaired prior to recoating where other, less effective coatings have permitted corrosion and cavitation damage to occur.

Coatings Can maximize energy effiCienCy As of January 1, 2013, amendments to MARPOL Annex VI Regulations for the Prevention of Air Pollution from Ships made mandatory measures to reduce greenhouse gas (GHG) emissions from international shipping. Coming into force for new ships of 400 gross tons or more was the Energy Efficiency Design Index (EEDI) and for all ships, the Ship Energy Efficiency Management Plan (SEEMP).

The new measures have prompted shipyards and designers to introduce eco-designs that maximize energy efficiency. Jotun saw this as an opportunity. Last year, Jotun Hull Performance Solutions (HPS) launched the HPS Newbuilding Solution specifically with this market in mind.

“With HPS Newbuilding Solution Jotun enables yards to become more competitive when bidding for eco-ship projects. The solution

provides an opportunity to both optimize initial performance, as well as lifetime performance. The solution thereby serves the long term interests of the designers, yards, owners, operators and the environment,” says Geir Boe, Vice President Jotun Marine Coatings.

The foundation of the HPS Newbuilding Solution is SeaQuantumX200, Jotun’s top of the line antifouling with documented low-friction properties, designed to maximize initial and lifetime performance. Building on that foundation are three upgrade components. Jotun is so sure of the performance of the system, that it offers money-back guarantees.

The first component of the HPS Newbuilding Solution is a Smooth Application Package that combines comprehensive technical service with an optimized anticorrosive system. Jotun measures the average roughness on the underwater hull surface and offers a money-back guarantee as a part of its Smooth Application Package.

Keeping the hull slime and fouling free through the outfitting period is a challenge. Jotun’s second component is an Outfitting Protection Package that includes a final coat of the SeaQuantum X200-S, which resists slime and fouling. Any fouling incurred over the docking may have a major impact on the attained EEDI. With the Outfitting Protection Package, Jotun guarantees a clean hull at speed trials.

The third and last component is a 60-month high performance guarantee with cash back if the ship’s average speed loss exceeds 1.5% over the period. The guarantee can be transferred from the shipyard to the owner. This equals a 15% improvement in propulsion efficiency over 60 months compared to market average performance. This component gives the yards an opportunity to differentiate themselves by providing a 60-month high performance cash back guarantee. ■

Supreme Rudder Protection

E

coshield gives a very thorough and lasting defense against cavitation and corrosion damage for a ship hull’s entire service life.

The coating equally provides the rudder with an impenetrable protective layer while its flexibility enables asorption of the forces that are produced by cavitation. This prevents the damage normally caused by this phenomenon.

Without proper protection against cavitation and the resulting erosion and corrosion damage, the financial consequences can be severe.

By removing the existing paint layers and applying Ecoshield on the rudder we can break the never ending cycle of painting, suffering damage, having to perform extensive repairs in drydock followed by a full repainting, again and again.

With an Ecoshield application no full repaint will be needed during drydocking. Ecoshield is guaranteed for ten years. At the most, minor touch-ups will be required.

ECOSHIELD

THE DIAMOND STANDARD IN STEEL PROTECTION

Belgian headquarters Phone: + 32 3 213 5318 Fax: + 32 3 213 5321 info@ecospeed.be

US Office Phone: + 1 727 443 3900 Fax: + 1 727 443 3990 info@ecospeed.us

www.ecospeed.be February 2014 MARINE LOG 29

CommuniCations

Passengers on the Norwegian Breakaway will have improved connectivity with MTN’s new iDirect X7 high-performance satellite modem

Meeting coMMunications deMand Bandwidth upgrade helps cruise lines, government agencies keep passengers and crew connected Compiled by Marine Log Staff

L

et’s face it, people are attached to their smartphones. Whether it is on the bus, at the mall or in the movies, people can’t get enough Facetime, photos or e-mail. And, they certainly don’t want to do without their smartphones when they are on vacation, even if it is at sea.

Luxury cruise brand Crystal Cruises has recognized this. It recently announced that it would include Free WiFi to Crystal Society members, the line’s “club” of repeat guests, beginning fa l l 2014. The WiFi service will be provided by satellite and communications provider MTN Communications, Miramar, FL. Effective with Crystal Serenity’s September 19 New England/Canada sailing and Crystal Symphony’s October 15 Panama Canal cruise, each Crystal Society guest will receive 60 minutes of complimentary internet access for every day of the cruise.

Society members can use the new complimentary access time wirelessly via iPad, iPhone, laptop or other wireless device or on Crystal’s own Computer University@ Sea 27 in dual-compatible iMac computers.

30 MARINE LOG February 2014

And thanks-to a recent multi-million dollar Wi-Fi upgrade, which includes the addition of 300 access points on each Crystal Cruises ship, guests will be able to enjoy maximum onboard connectivity.

“We are continually refining our all-inclusive experience to offer an array of choices for our global guests. Since the majority of our guests are repeaters, we opted to expand our Crystal Society offerings to thank our loyal patrons,” says Edie Bornstein, Crystal’s President. “Whether they are on board for a second 10-day getaway or on their 20th time for an expansive 108-day World Cruise, travelers today appreciate staying plugged in. By adding this coveted perk to our all-inclusive experience, repeat cruisers in all stateroom and suite categories have one more reason to choose Crystal as their home base while traveling the world in the finest of luxury and ease.”

The company has spent more than a year implementing improvements to the onboa rd i nternet ex perience on bot h s h ips — i nc lud i ng m a x i m i z i ng s ate llite bandwidth, which allows for more

users and more content to stream simultaneously; expanding Wi-Fi signal range throughout the ship; and providing the ability to access the internet in parts of the world previously unavailable.

NCL and MTN bring high performance iDirect X7 to cruise ship Meanwhile, Nor wegian Cruise Line is keeping its promise of delivering “a n unparalleled connectivity experience to its’ passengers and crew.” That’s because the cruise line and MTN Communications have joined forces to produce the new iDirect X7 high-performance satellite modem on NCL’s Norwegian Breakaway.

The installation of the X7 on the 1,068 ft, 3,969-passenger ship has improved the efficiency and throughput of the vessel’s communication system, with speeds reaching up to 100 Mbps.

The X7 is optimized for MTN’s hight hroug hput mu lt i-spotbea m (HTMS) satellite platform, which will be launched next year. Its efficiency is achieved through advanced adaptive modulation techniques.

CommuniCations mini-VSAT Broadband service has prov ided 29.2 teraby tes of data and more than 835,000 Voice over Internet Protocol (VoIP) minutes.

“In the face of rapidly expanding data communication requirements, including real-time use of biometric technology, homeland security efforts, and extended worldwide operations, the U.S. Coast Guard needed a global communications solution robust enough to support these demands and

rugged enough for even the most demanding maritime conditions,” says Martin Kits van Heyningen, KVH’s CEO. “Affordability was a critical factor for the U.S. Coast Guard as well, and our mini-VSAT Broadband network offers a cost-effective solution to replace expensive legacy services and still provide global coverage.”

KVH’s mini-VSAT system can also be found on board U.S. Nav y vessels and commercial fleets worldwide. ■

Use your smartphone at sea. Beginning this fall, Crystal Cruises will offer free WiFi to members of its Crystal Society

“We are excited to partner with MTN to leverage the industry’s newest technology,” says Vincent Cirel, Senior Vice President and CIO, Norwegian Cruise Line. “We were thrilled to be the testbed for the X7. It has performed extremely well and will be a cornerstone to support the insatiable demand for the high-throughput internet, TV, voice and app services on our ships.”

Dave Bettinger, CTO of iDirect says, “We were very excited to put it to the ultimate test on a cruise ship with upwards of 6,000 passengers and crew, with thousands of mobile devices.”

MTN plans to role out the X7 modems on several of its partner’s vessels, according to Kevin McCarthy, COO, MTN.

KVH reaches milestone with U.S. Coast Guard cutter installation K V H’s 10-year contract w it h t he U.S. Coast Guard reached a mi lestone last month, when the satellite communications solutions provider installed its KVH mini-VSAT Broadba nd ser v ice on t he 105th USCG cutter. KVH’s contract has the Rhode Island-based company integrating its technology on board eight different classes of USCG cutters.

The $42 million contract, awarded to KVH in September 2010, named KVH’s TracPhone V7 and mini-VSAT Broadband service as the U.S. Coast Guard’s Small Cutter Connectivity (SCC) Ku-band system and Air Time Support Services solution. The SCC program is part of the USCG’s initiative to upgrade and improve communication capabilities on its legacy cutter fleet.

Under the contract, KVH supplies hardware, airtime and support to the f leet.

Since support first began in 2010, KVH’s February 2014 MARINE LOG 31

contracts newsmakers 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 December 1, 2013. (*) Asterisk indicates first in series delivered. A “C” after a vessel type indicates a major conversion, overhaul and government contracts are listed website,will www.marinelog.com. teams as well as Engineering Services andon our Naumann be responsible for the areas Retiredor refit.

Nav yAdditional Captaincommercial Estimating. He will also hold a key role on of finance and technology as well as the Terry O’Brien has been Shipyard Location Qtyof type particuLarS owner/operator the senior management team. management of seaeSt. and$ MiL shore-based staff. named Vice President The position was lef t vacantEST. following Business Development RECENT CONTRACTS DEl. the sudden passing of former2ndHalf2015 managing E x ter nal elisaBeTh TørsTad All-American Marine a n dBellingham, WA A f f air 2 s water taxis 250 PAX King County Ferry District $11.8 director Uwe Groos.

Austal USA. haspassengers been appointed CEO Chesapeake Shipbldg. for Salisbury, MD O’Brien 4 river cruise boats 150-200 American Cruise Line 2017 will beBoat based out of Washington Master Builders Mobile, AL DC and will 6 PSVs 220 ftof DNV GL - Oil & Gas. Adriatic Marine NOV16 TOMMy Mølga ard has been named be responsible of Austal’s previously held Oregon Iron Works for allClackamas, OR business 2 fireboats 54 ft Tørstad x 16 ft, 40 knot City of Portland AUG14 Global Chief Financial Officer AUG14 for Damco, development andCA federal legisWillard Marine efforts, state Anaheim, 42 rescue boats 16 ft the position of Chief U.S. Army The Netherlands. He brings with him over lative activities, as well as coordinating exterTechnolog y Officer for DElIVERIES 20 years of experience in finance in the nal communications and media relations.

DNV GL. Prior to her recent appointment she Bollinger Shipyards Lockport, LA 1 Fast Response 154 ft, 28 knots U.S. Coast Guard $42 DEC13 Logistics sector. was Chief Operating Officer for DNV’s mariGladding-Hearn Somerset, MA 1 patrol boat 61 ft x 15 ft NYPD DEC13 MaT Thew J. ThOMas has joined the time and oil and gas operations in the PENDING CONTRACTS NOTES has Washington, D.C. office of law firm Blank Americas and Sub-Saharan Africa division. sanTOs Venegas Aker Philadelphia PA inter4 Options 50,000 dwt Crowley $500 MTN Communica2017 Rome as a partner inPhiladelphia, the maritime, joined BAE Systemstrade, Southeast Mobile, AL 2 dump scowsCharOgiannis 7,700 ft3 Great Lakes Dredge Options national and public contracts group. harry has stepped down tions as General Manager Candies Shipbuilders Houma, LA of experi1 subsea vesselFinancial 108m x 22m,for MT6022 Otto Candies LLC Option Thomas has more than 20 years as Chief Officer StealthGas Inc. for its Oil and Gas Division.

Five shipyards on list and international trade 3 vehicle ferries the LNG fueled, 600 PAXthe AthensBC Ferries RFPrecently issued ence in maritime Following announcement, Venegas most Gulf Coast Shipyard Gulfport, MS 4 PSVs fuel, 302said ft x 64 Harvey Gulf Intl. Marine regulation and government affairs. headquartereddual company it ft“would not s er ve d a s Options Manag ing Leevac Shipyards Jennings, LA 2 PSVs ft x 62 ft announced public Tidewater Options proceed with its300 previously Director for Latin America at Harris CapRock.

TBD Offshore Patrol Cutters RFP/Phase I Topside and riding crew repair services pro- OPCs offering of common stock at this time as itU.S. is Coast Guard TBD 2 LASH carriers convert steam to LNG Horizon Lines RFP vider, Offshore Inland Marine & Oilfield not in the best interests of its stockholders.”

Boat manufacturer Nautic Global Group, TBD 1 double-end ferry 70-car VDOT $27 RFP Services, Inc., Mobile, AL, has appointed Inc., appointed JaMes r. MalOne as TBD 6 car ferries 1,200 PAX (convert to LNG) Washington State Ferries RFP issued Keal wOOdruff to Vice President of Kai nauMann has been named Managing Chairman of the Board of Directors and Chief VT Halter Marine Pascagoula, MS 1 Roll-On/Roll-Off 692 ft, 26,600 dwt Pasha Hawaii Transport $137 Option Projects. In this role, Woodruff will lead both Director of E.R. Offshore GmbH & Cie.KG Executive Officer. He succeeds Nautic Global the Production and Project Management (E .R. Of fshore), Hamburg, Ger many.

Group CEO Michael A. Kitson.

Retired Navy Captain named VP of Business for Austal USA

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The marine log Job board Recruit and hire the best maritime talent with Marine Log’s online job portal.

To place a job posting, contact: Jeanine Acquart • 212 620-7211 • jacquart@sbpub.com 38 2014 32 MARINE MARINELOG LOGJanuary February 2014

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techNews abb and napa combine systems to promote ship efficiency

Crowley’s LnG-powered Conro ships will run on MAN power MAN Diesel & Turbo will provide Crowley Maritime’s El Coquí and Taíno with a MAN B&W 8S70ME main engine and three MAN 9L28/32DF auxiliary engines.

The two new ConRo ships—featuring Lifton/Lift-Off (LO/LO) and Roll-On/Roll-Off (RO/RO) capabilities—will be built by Mississippi-based VT Halter Marine and are scheduled for delivery in 2017.

Setting a new standard for environmentally responsible shipping, the Crowley vessels will be LNG-powered, making them among the first ConRo ships to run on LNG. Crowley says that running on LNG will help reduce CO 2 emissions on each container by approximately 38%. Both ships will have DNV classification with the CLEAN notation and Green Passport.

Crowley says it chose the high-pressure, Diesel-cycle ME-GI engine due to its high efficiency and power concentration, as well as its ability to avoid derating, and its negligible methane slip.

The 220 m long vessels will have a deadweight capacity of 26,500 metric tonnes, cargo capacity of approximately 2,400 teu and space for nearly 400 vehicles. The ConRo ships will travel at a speed of 22 knots and carry various sized containers.

“Our investments in these new ships— the first of their kind in the world—is significant,” says Crowley Chairman and CEO Tom Crowley. “We are developing and using best-available technology that allows for improved emissions and alternate fuel selection.” mandieselturbo.com

To help opTiMize ship efficieNcy, Finland-based software company NAPA has signed an agreement with Switzerland’s ABB to add NAPA’s Loading Computer and electronic NAPA logbook to ABB’s Vessel Information and Control (VICO) portfolio.

Installation is planned on 1,400 vessels, including tankers and passenger vessels. The NAPA Loading Computer system undertakes a wide range of calculations related to hydrostatics, intact stability and ship longitudinal strength.

Meanwhile, the NAPA Logbook offers users the functionality of a traditional logbook in a friendly electronic format that combines common data storage, automation inter f aces, reminders, guidelines and checklists. This minimizes the potential for human error and reduces workload by helping prevent misuse and unlocking additional reporting capability.

By integrating NAPA’s system with ABB’s VICO—which of fers a variet y of advisor y and f leet management repor ting solutions—vessel per formance will be enhanced, there will be an increase in energ y efficiency, improved onboard equipment reliabilit y and availabilit y and operational safety will be promoted. www.abb.com

Capstone’s MiCroturbines ensure green shipping on dual-fuel ship sTricTer eMissioN requireMeNTs are prompting owners and operators to put more environmentally friendly vessels into service. And that’s just what Deen Shipping did when it launched the MTS Argonon— the first dual-fuel ship to operate in Europe’s inland waterways. The vessel sails on a mixture of 80% LNG (liquefied natural gas) and 20% diesel. Helping the Argonon meet the new environmental demands is Capstone Turbine Corporation.

The California-based company has thrown its cap in the greenship arena with the goal of helping its customers navigate stringent environmental regulations and support green ship innovations.

To limit its emissions, the Dutch ship owner Deen Shipping and Pon Power teamed up to integrate Capstone MicroTurbines into the Argonon. The two Capstone C30 LNG MicroTurbines operate 34 MARINE LOG February 2014

in an N+1 setting and provide the auxiliary power aboard the vessel. The technology, approved by Lloyd’s Register, is a combined cooling, heating and power (CCHP) system that leads to high fuel efficiency. The MicroTurbines can run on natural gas and require minimal maintenance when compared to traditional diesel generators.

By generating auxiliar y power, the

MicroTurbines reduce both emissions and fuel costs. Furthermore, the MicroTurbines’ exhaust is captured in a heat exchanger that heats water on board—this hot water is then diverted to heat the LNG vaporizer, providing fuel to the MicroTurbines and main propulsion engines. The heat is also fed to an absorption chiller for the air conditioning system. capstoneturbine.com

techNews globalstar unveils Sat-Fi system globalsTar, inc., covingTon, la, has debuted its new voice and data solution called Sat-Fi. Sat-Fi will enable Globalstar customers, among them Oil and Gas industry workers, to use their existing smartphones and other Wi-Fi enabled devices to connect seamlessly with Globalstar’s new satellite constellation—essentially making any device a satellite phone or data device.

The satellite network offers customers voice and data connectivity when beyond cell coverage. Customers can use the app and Sat-Fi satellite hot spot to send and receive calls, email and text messages anywhere within Globalstar’s footprint.

Av a i l a b l e t o a b r o a d m a r ke t t h a t includes government agencies as well as consumers, Sat-Fi permits numerous individuals to communicate through a single Sat-Fi hotspot simultaneously.

“It has been our vision to seamlessly integrate satellite and terrestrial coverage, and through many years of research and development, we are thrilled to announce this proprietary new technology and service offering in order to expand the use and appeal of our mobile satellite services to a much larger addressable market,” says Jay Monroe, Chairman and CEO, Globalstar.

“Sat-Fi will have global appeal to those who need reliable connectivity beyond the cellular grid.Globalstar expects to receive final FCC certification of Sat-Fi during the second quarter of 2014. www.Globalstar.com

New traiNiNg course for switching fuels in ECA Training specialisTs Videotel Marine International has launched a new training course, called The Practical Management and Switching of Fuels. The course is designed to ensure that operators avoid serious operational problems when switching to low sulfur fuels while operating in Emission Control Areas (ECAs).

Available in multiple formats, such as DVD, Videotel on Demand (VOD), VOD online and eLearning Computer Based Training (CBT) formats, the course includes a PDF workbook highlighting key learning points.

High fuel costs and strict emission controls directly influence the way a vessel’s fuel systems and engines are operated and managed,” says Videotel CEO Nigel Cleave.

“Having a thorough understanding of the challenges presented by using heavy marine fuel oil and switching to low sulfur fuel when operating in Emission Control Areas (ECAs) is essential and this new

course from Videotel addresses that need,” says Cleave. “Since 2010, many of the busiest shipping areas of the northern hemisphere are now designated as ECAs and require a switch from high sulfur to low sulfur fuel - a process that requires very careful management.”

T he Practical Management and Switching of Fuels is designed to provide a practical guide to what is required of bridge and engine room officers and engineers to process fuel oil from the bunker tank to the engine, monitoring every stage of filtering and purification to ensure the most efficient combustion is achieved, cleanly and economically.

The course addresses MARPOL Annex VI and covers marine fuel oils; bunkering; storage and settling tanks; centrifuge; heaters and filters; fuel combustion; fuel switching; planning; and temperature and viscosity control.

Videotel.com

transas to supply Ultragas with MFD system UlTragas, a UlTranav company, has ordered Dual Navi-Sailor ECDIS Multifunction Display (MFD) sets with radar overlay from Transas Marine. The sets will be installed onboard five ULTRAGAS vessels. The MFD workstation is equipped with ECDIS, Radar, Conning and weather module.

Transas will also supply its Transas Admiralty Data Services (TADS), Official SENC service from Transas and Admiralty Information Overlay (T&P Notices to Mariners). ULTRAGAS will be using Transas’ “Pay As You Sail” service, allowing for a licensed access to view and pre-plan in official charts at no extra cost.

Ultragas owns and operates highly specialized vessels for transportation of LPG (Liquefied Petroleum Gases) and petro-chemical gases. www.transas.com

cathelco system to provide Quantum protection When royal caribbean’s new generation of Quantum class ships are launched later this year and next, its seawater pipework systems and hull will be protected by Cathelco equipment.

The 348m, 4,000-passenger ships, the Quantum of the Seas and Anthem of the Seas, are currently under construction at Germany’s Meyer Werft shipyard.

U.K.-based Cathelco says its pipework anti-fouling systems will protect a total of 20 seachests on each vessel serving extensive shipboard equipment including freshwater evaporators, reverse osmosis systems, air conditioning chillers and sea water cooling pumps. The AF system will also protect a number of fire fighting

pumps and their associated pipework.

Cathelco will also supply its impressed current cathodic protection system (ICCP) that helps protect the hull’s surface against corrosion. The ICCP system is made up of a control panel/rectifier connected to anodes and reference electrodes. Cathelco says that while in operation, the reference electrodes measure the electrical potential at the hull/ seawater interface and a signal is fed back to the control panel which raises or lowers the anode output accordingly—ensuring that the optimum level of corrosion protection is provided at all times.

The ships w il l be equipp ed w ith a 250 amp forward system and a 350 amp aft system. www.cathelco.com February 2014 MARINE LOG 35

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 January 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

RECENT CONTRACTS

EST. DEl.

Gunderson Marine

Portland, OR

1

tank barge

185,000 bbl

Kirby Corporation

mid-2015

Nichols Brothers

Freeland, WA

1

tug

136 ft, 10,000 bhp

Kirby Corporation

mid-2015

Silver Ships

Theodore, AL

36

Support Craft

11 meters

U.S. Navy

2018

Vigor Industrial

Portland, OR

3

tugs

102 ft x 38 ft

Tidewater Barge Lines

2015

Vigor Industrial

Seattle, WA

1

tank barge

15,000 bbl

Maxum Marine

2014

JAN14

DElIVERIES Blount Boats

Warren, RI

1

ferry

110 ft, 399 PAX

Casco Bay Island Transit

Gladding-Hearn

Somerset, MA

1

pilot boat

56 ft 6 in x 17 ft 8 in

Colombian Navy

Hendry Corporation

Tampa, FL

1

dry dock

2,500-ton lift capacity

Hendry Corporation

$3.2

Aker Philadelphia

Philadelphia, PA

4

Options

50,000 dwt

Crowley

$500

BAE Systems Southeast

Mobile, AL

2

dump scows

7,700 ft3

Great Lakes Dredge

Candies Shipbuilders

Houma, LA

1

subsea vessel

108m x 22m, MT6022

Otto Candies LLC

Option

3

vehicle ferries

LNG fueled, 600 PAX

BC Ferries

RFP issued

JAN14

PENDING CONTRACTS

JAN14 NOTES

Five shipyards on list

2017 Options

Gulf Coast Shipyard

Gulfport, MS

4

PSVs

dual fuel, 302 ft x 64 ft

Harvey Gulf Intl. Marine

Options

Leevac Shipyards

Jennings, LA

2

PSVs

300 ft x 62 ft

Tidewater

Options

OPCs

Offshore Patrol Cutters

U.S. Coast Guard

RFP/Phase I

LASH carriers

convert steam to LNG

Horizon Lines

RFP

TBD TBD

2

TBD

1

double-end ferry

70-car

VDOT

TBD

6

car ferries

1,200 PAX (convert to LNG)

Washington State Ferries

1

Roll-On/Roll-Off

692 ft, 26,600 dwt

Pasha Hawaii Transport

VT Halter Marine

Pascagoula, MS

$27

RFP RFP issued

$137

Option

To make it safely to harbor,

it takes a strong and agile partner.

Strength. Agility. Expertise. That’s what counts in this business.

Ask for Great American coverage for • Hull/PI • Pollution • Shiprepairer • Terminal Operator • Cargo • General Liability • Property • Contractor Equipment • Ocean Cargo. Contact Captain Ed Wilmot at 212-510-0125; ewilmot@gaic.com Great American Insurance Group I 301 East Fourth Street I Cincinnati, OH 45202 I GreatAmericanInsuranceGroup.com

36 MARINE LOG February 2014

Ocean Marine Division www.GreatAmericanOcean.com

marketplace pRoduCTS & SERvICES

WATERFRONT LEASE PORT OF MOBILE, AL Two Prime Waterfront Properties Contact William Harrison 251-232-3810 or visit www.harrisonbrothers.com/land

Specializing In Barges • •

Single or Double Hull, Inland or Ocean-Going Design, Construction & Modification • Chartering & Sales 503-228-8691 1-800-547-9259 3121 SW Moody Avenue, Portland, Oregon 97239

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2000-TON DRYDOCK, SHIFT BOATS, CRANES, POLLUTION RECOVERY BARGE. Contact William Harrison 251-232-3810

ENGINEERS & ARCHITECTS

SoFTWARE

MARINELOG.COM February 2014 MARINE LOG 37

marketplace ENGINEERS & ARCHITECTS Marine

Industry

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KEEL DESIGN CORPORATION naval architects & marine engineers Quality technical services

Marketplace SaleS contact: Jeanine Acquart Ph: 212/620-7211 Fax: 212/633-1165 Email: jacquart@sbpub.com

2021 Dauphine Street • New Orleans, LA 70116 (800) 823-1324 (504) 945-8917

All MAjor Credit CArds ACCepted

EMpLoYMENT

International Ship Repair & Marine HARLEY MARINE SERVICES

Services, Inc.

Open Positions: Marine Operations Manager – Anchorage, AK Port Captain – U.S. Gulf Coast

in Tampa, FL

Port Engineer – L.A./Long Beach Harbor, CA Dispatcher – Seattle, WA and L.A./Long Beach Harbor Claims Manager – Seattle, WA Pilot – U.S. Gulf Coast

Is accepting applications for the following positions Production Manager Estimator/Contract Manager

Tankerman – U. S. Gulf Coast Engineer (licensed engineer preferred) – All Locations For a list of all open positions or to apply online, please visit our Careers page at www.harleymarine.com

Ship Superintendent Foreman all Crafts Leaderman all Crafts If you have 3 to 5 years of experience at a ship repair facility, please send your resume with the position you are applying for in the subject line of your email to: jcoghlan@internationalship.com ISR is an EOE, VDFM employer.

38 MARINE LOG February 2014

HMS Global Maritime is looking to fill the following positions for our new steamboat in Portland, OR. For more information and to apply for any of these positions, please go to our website www.HMSGM.com Captain Second Mate Able-Bodied Seaman Deckhand Utility/Painter Chief Engineer Second Engineer QMED Oiler

More positions will be added over the next few months!

marketplace ENGINEERS & ARCHITECTS GILBERT ASSOCIATES, INC. Naval Architects and Marine Engineers

350 Lincoln St. Suite 2501 Hingham, MA 02043

Website www.jwgainc.com

Telephone: 781 740-8193 Facsimile: 781 740-8197 E-mail address: inbox@jwgainc.com

ABS Approved Ambient Environmental Testing Climate, Lighting, Noise & Vibration 1 Galleria Blvd. Ste 109 Metairie, LA 70001 Phone (504) 818-0377 x 33 Fax (504) 818-0447 www.hab-cert.com

BOKSA

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BoksaMarineDesign.com

813.654.9800

INdEx of AdvERTISERS Habitabilaty Certification Testing MR Dec13 3 by 1.indd 1 Company

page #

11/14/2013 3:58:18 PM

Company

page #

ABS Americas . . . . . . . . . . . . . . . . . . . . 31

Jotun . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

ABS Nautical Systems . . . . . . . . . . . . . . .3

Lufkin . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Conrad Shipyard . . . . . . . . . . . . . . . . . . .14

Marine Art Of J . Clary . . . . . . . . . . . . . . . 6

Cruise Shipping Miami . . . . . . . . . . . . . C3

Silverships . . . . . . . . . . . . . . . . . . . . . . .12

CSD Sealing . . . . . . . . . . . . . . . . . . . . . .13

SMM Hamburg Messe . . . . . . . . . . . . . .33

ExxonMobil . . . . . . . . . . . . . . . . . . . . . . C2

Subsea Industries NV . . . . . . . . . . . . . . 29

Great American Insurance Co . . . . . . . 36

Tugs & Barges 2014 . . . . . . . . . . . . . 20,21

Gunderson Marine . . . . . . . . . . . . . . . . .25

Vigor Industrial . . . . . . . . . . . . . . . . . . . 27

Herbert - ABS Software . . . . . . . . . . . . . .14

VT Halter Marine, Inc . . . . . . . . . . . . . . . C4

Inmarsat . . . . . . . . . . . . . . . . . . . . . . . . 8,9

W&O . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

JMS Naval Architects & Salvage . . . . . . . 4 February 2014 MARINE LOG 39

Shipbuilding hiStory

The Mariners

By Tim Colton

When World War II ended, the United States had the biggest merchant fleet the world had ever seen—over 30,000 cargo ships and tankers totaling about 33 million gross tons—and this fleet was still growing. In 1945, however, the flow of military cargo had dried up, growth in the flow of commercial cargo was inhibited and investments needed to convert whole industries from military to civilian employment. As a result, there was almost no requirement for new construction of cargo ships. Bethlehem Sparrows Point, Bethlehem Quincy and Sun Ship remained occupied by building tankers, but the industry as a whole collapsed. By the end of 1950, private-sector employment in shipbuilding and repair was down to 42,500.

In 1950, the opening year of the Korean emergency, the Military Sea Transportation Service, (MSTS), reported that it was employing over 400 cargo ships, only half of which were US-flag and 130 of which were Victory ships. Although there were still 1,600 Liberty ships in the National Defense Reserve Fleet, (NDRF), they were already considered to be too small and too slow to be of any value. As a result, Vice Admiral (VADM) Ned Cochrane and the bright folks who populated the U.S. Maritime Administration, (MARAD) in those days came up with a plan that would kill two birds with one stone. This was the “Mariner” shipbuilding program, designed both to improve the efficiency of the US-flag fleet and to revive the U.S. shipbuilding industry. The basic design was designated the C4-S-1A and Bethlehem Quincy was tasked with developing it, all the

way through to construction drawings.

The new ship would be quite unlike the war-built C4. Instead of having two superstructures, one forward and one aft, it would have a single superstructure two-thirds aft.

Instead of a 10,000-hp propulsion plant giving a service speed of 17 knots, it would have a 19,000-hp plant giving a service speed of 20 knots. Instead of the old-style, labor-intensive cargo booms, it would have hydraulically operated cranes and hatches.

And instead of a crew of 56, the new ship would have a crew of only 45.

MARAD’s plan was to build five ships in each of seven shipyards, thus getting the earliest possible deliveries while spreading the economic stimulus as widely as possible. The lead yard, Beth Quincy, was put under contract in October 1950, five more— Newport News, Sun Ship, New York Ship, Ingalls and Beth Sparrows Point—in February 1951, and Beth San Francisco in August 1951. All the ships except those built in San Francisco were delivered between mid-1952 and mid-1954.

Getting the Mariners built turned out to be the easy part of MARAD’s challenge.

The bigger problem was getting someone to buy them. Initially, to meet the needs of the Defense Department, MARAD had retained ownership and contracted for their operation. Once the emergency was over, they offered them for sale but found no buyers: the US-flag operators all thought that these state-of-the-art ships were too expensive and would not be competitive in the commercial market. As a result, apart from a few that

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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 Vanessa Di Stefano Regional Sales Manager Tel (212) 620-7225 Fax (212) 633-1165 E-mail: vdistefano@sbpub.com

40 MARINE LOG February 2014

were converted for special-purpose employment, they were laid up. Eventually, however, the operators changed their minds, probably because, within a few years, their international competitors all seemed to be building new ships that looked a lot like Mariners.

Best known was Austin & Pickersgill’s SD-14, of which over 200 were built, but the leading German and Japanese yards had their variants, too. In the end, the great triumph of MARAD’s program was that the Mariner turned out to be the ship of the future, at least until containers came along.

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The launch of USS Boston at Bethlehem Quincy

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