UPDATE biz notes The LCS under construction at Austal USA iMo chooses dNv for North america lNg study Marad reporT: Shipbuilding vital to U.S. economy The U.S. ShipbUilding and repair industry is a vital part of the U.S. economy, supporting $36 billion in Gross Domestic Product (GDP), according to a recent U.S. Maritime Administration report. According to the report, “Economic Importance of the U.S. Shipbuilding and Repairing Industry,” more than 300 U.S. shipyards directly provided some 107,000 jobs, $7.9 billion in labor income to the national economy and contributed $9.8 billion in GDP in 2011. Additionally, the average income for these industry jobs, $73,000, is 45 percent higher than the national average. On a nationwide basis, including direct, indirect, and induced impacts, the industry supported 402,010 jobs, $23.9 billion of labor income and $36 billion in GDP. “The economic impact of shipbuilding and repair extends beyond our coasts, the Great Lakes and inland waterways,” says Frank Foti, Chairman of the Shipbuilders Council of America (SCA) and President and CEO of Vigor Industrial. “Shipyard work supports good paying jobs for skilled industrial craftspeople in all 50 states.” Shipbuilding jobs have a big effect on the wider economy, notes SCA. According to the study, each job in private shipbuilding and repair supports another 2.7 jobs nationally. Each dollar of labor income in the shipyard sector leads to another $2.03 in labor income in other parts of the economy, and each dollar worth of goods and services leads to another $2.66 in the wider economy. SCA President Matthew Paxton, says, “MarAd’s report clearly demonstrates how this industry is vital to both our national and economic security.” Navy cites “lack of leadership” iN McM grouNdiNg The U.S. Navy receNTly released the results of an investigation on the grounding of the ex-USS Guardian in Philippine waters on January 17. Characterizing the ex-Guardian’s grounding on Tubbataha Reef in the Sulu Sea as a “tragic mishap,” Adm. Cecil D. Haney, Commander of the U.S. Pacific Fleet, wrote in the 160-page document that “USS Guardian leadership and watch teams failed to adhere to prudent, safe, and sound navigation principles which would have alerted them to 6 MARINE LOG July 2013 approaching dangers with sufficient time to take mitigating action.” Admiral Haney further summarized that a “lack of leadership” led to the watch team’s disregard of visual cues, electronic cues and alarms in the hours leading up to the grounding, and that an ultimate reliance on what would turn out to be inaccurate Digital Nautical Charts (DNC) during the planning and execution of the navigation plan ultimately led to a degradation of the ship’s navigation ability. DNV says that it has been chosen by the International Maritime Organization (IMO) to create a report on the potential of LNG-powered international shipping in the North American Emission Control Area (ECA) and to identify the necessary conditions for the successful implementation of LNG as a fuel source in the region. Natural gas is a widely available fuel across North America, but availability of LNG is limited, as the demand and supply side are waiting for each other, partly held up by logistical problems. The big investment decisions that have to be made related to LNG as a fuel are not made easier by the uncertainty and guesswork currently surrounding the feasibility of LNG as a fuel. “In developing LNG as an alternative fuel for short sea shipping, we foresee significant market opportunities for manufacturers, ship designers, and yards [that] focus on LNG technology,” says Tony Teo, DNV’s Technology and Business Director in the U.S. “DNV’s involvement in research and innovation in LNG supply, storage, engines and emission issues,” says Teo, “has demonstrated that ship safety, market mechanisms, and operational regularity can be maintained when operating ships on LNG. But there are many variables and risks that have to be assessed and managed first, and we hope this study will contribute to this.” Topics to be addressed as part of the feasibility study will include: • Key trends for international shipping services in the North American ECA • Ship types and routes • Current and planned LNG infrastructure • Mapping the regulatory regime • Environmental benefits • Assessment of technology readiness • Key enablers The report will be delivered to the IMO in October, and be used as decision-making tool to remove some of the obstacles identified in the report. DNV’s most recent work on LNG in the U.S. includes assisting the Washington State Department of Transportation, Ferr y Division with safet y, securit y assessment and operational planning for LNG-fueled ferries.