March 2016 Marine Log by Marine Log

CYBERSECURITY: Less talk, more action needed

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

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MARCH 2016

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contents

march 2016 Vol. 121, NO. 3

departments 2 Editorial Is there a big hack attack on the horizon? 6 Update

The largest floating drydock in the U.S., the Vigorous, has brought new business to Vigor Industrial’s Portland yard

features 15 Shipyards

29 Tankers

Shipyards are rethinking their business strategies—opting to either reposition themselves and pursue other markets, or inject new capital into facilities to help attract more business

One of the key competitive differentiators in the chemical tanker industry is tank cleaning—but are operators wasting resources in overcleaning? Intertanko suggests a simplified set of standards could be the key to meeting requirements and increasing savings

Rethink, Reposition & Reinvest

19 Cybersecurity

From Conversation to Implementation

The government and maritime industry are joining forces to develop strategies and legislation to help support a common approach to cybersecurity Cover Banner: GlebStock

23 Scandinavia maritime

Nordic Technology Incubator

Nordic countries play a valuable role in the development of cutting edge “blue” and “green” technologies, products and services for the worldwide fleet

Tank Cleaning: Seeking Common Ground

32 Op-Ed

Subchapter M and the IRS

Dean Shoultz, Chief Technology Officer of MarineCFO, discusses how the use of eLogs can improve asset utilization, workforce performance and customer satisfaction

34 CEO Spotlight

Close up on Bouchard

We sit down with President & CEO of Bouchard Transportation, Morton S. Bouchard III, to discuss the company’s growing fleet and legacy

• F irst U.S. produced LNG cargo makes its way to Petrobras •R oyal Caribbean faces lawsuit • Women in management positions help increase profits •E astern delivers escort tug to Bay-Houston •G ulf Island Shipyards delivers new river towboat • Vard Marine secures contract •B ouchard christens 250,000 bbl ATB in New Orleans

13 Washington Legislation would prohibit drilling for oil or gas in the OCS 36 Newsmakers Tor E. Svensen announces his retirement from DNV GL 38 Tech News Becker Marine Systems’ LNG PowerPac to receive funding 40 Contracts Philly Shipyard delivers 50,000 dwt product tanker to Crowley Maritime

44 Marine Salvage The American Salvage Association expands its vision for 2016 March 2016 MARINE LOG 1

editorial

Is there a big hack attack on the horizon? There doesn’t seem to be a day that goes by without a media report of a major cyberhack or databreach. The most recent involves the fast food chain Wendy’s. In a statement, Wendy’s said it had “engaged cybersecurity experts to conduct a comprehensive investigation into unusual credit card activity at some Wendy’s restaurants. Out of the locations investigated to date, some have been found by the cybersecurity experts to have malware on a certain system. The investigation is ongoing and the company is continuing to work closely with cybersecurity experts and law enforcement officials.” The malware was apparently designed to capture customer information in the payment processing system. Like everything else, the interconnectivity of ports, ships and rigs makes them just as vulnerable as hamburger joints. This month, port security expert Jon Sawicki discusses cybersecurity in “From Conversation to Implementation: Maritime and Port

Cybersecurity.” Jon is with Witt O’Briens and Security Improvement Program Manager for the Ports of Brownsville and Harlingen, TX. Sawicki recently testified before the Homeland Security Committee’s Border and Maritime Security Subcommittee. In his testimony, Jon focused on the importance of risk-based strategic planning around cybersecurity and shared information on the recent efforts to manage cyber risk in the maritime domain. The U.S. Coast Guard has developed a cyber strategy that focuses on three key priorities: defending its own cyberspace, enabling its operations, and protecting maritime critical infrastructure. For the maritime industry, cyber attacks have huge safety, security, environmental, and economic implications. Cyber-related incidents have varied from impacting offshore platform stability to an organized crime using a European container terminal’s cargo

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

tracking system to facilitate drug smuggling. Companies should not only be vigilant regarding external threats, but also internal threats, such as the accidental introduction of malware through a website or the use of a flash drive on a company’s computers. SPOTLIGHT ON BOUCHARD This month our CEO Spotlight shines on Morton S. Bouchard III, the great grandson of the founder of family-owned Bouchard Transportation Co., Inc. From its humble beginnings and founding by Capt. Fred Bouchard in 1918, the Melville, NY, company has evolved into the largest independently owned operator of oceangoing petroleum barges in the U.S. Bouchard’s fleet grew a little more last month with the addition of a 250,000 bbl/10,000 hp Articulated Tug Barge (ATB) unit built by VT Halter Marine, Pascgaoula, MS, and christened at the Cruise Terminal in the Port of New Orleans (shown on this month’s cover).

Maritime Trivia Trivia Question #35: Where did the name of the coffee company STARBUCKS come from? 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

February’s trivia question: What vessel was the first to carry a radar system? Answer: The ocean liner Normandie when it was launched October 29, 1932.

Charleston, South Carolina 2 MARINE LOG March 2016

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MarineLoG March 2016 Vol. 121, NO. 3 ISSN 08970491 USPS 576-910 ACTUAL MODEL

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PRESIDENT Arthur J. McGinnis, Jr. amcginnis@sbpub.com

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Columnists/Contributors Jon Sawicki, Witt O’Brien’s Dean Shoultz, MarineCFO Todd Schauer, ASA

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UPDATE biz notes Fincantieri signs deal with Shanghai shipyard

Historic Delivery: First U.S. produced LNG cargo makes its way to Brazil’s Petrobras History was made last month when the 285 m Asia Vision left the Sabine Pass Terminal in Louisiana with 160,000 m3 of liquefied natural gas (LNG) destined for Brazil. The shipment also marked the first U.S.-produced, non-Alaskan LNG cargo to be sold for export since 1957. The LNG carrier is under charter with Cheniere Marketing, LLC, a division of Cheniere Energy Partners, L.P., Houston, TX. Cheniere Marketing’s job is to develop a platform for LNG sales to international markets, such as Brazil. According to Cheniere, the ship carried the first commissioned

cargo with LNG produced by the Sabine Pass liquefaction project in Cameron Parish, LA. The terminal is composed of a 1,000 acre site, two docks, five LNG storage tanks and a 40 ft channel. “This historic event opens a new chapter for the country in energy trade,” says Neal Shear, Chairman and Interim CEO of Cheniere Partners. Upon its arrival, Petrobras will take the LNG to its regasification terminal where the fuel will be pumped into its network of gas pipelines to supply Brazil’s domestic market and thermal power plants.

One of the world’s leading cruise ship builders, Fincantieri, is joining forces with Chinese ship repairer Huarun Dadong Dockyard (HRDD) to help support the emerging cruise sector in the region. Major cruise players, such as Carnival Corporation & plc, Royal Caribbean and Norwegian Cruise Line, are placing their latest-generation ships into the China fleet. The exclusive cooperation agreement will see Fincantieri’s Ship Repair and Conversion business unit provide its cruise sector technical expertise and combine it with HRDD’s first class shipyard facilities which include five dry docks positioned near the new Shanghai Cruise Terminal. China has the potential to become the second largest global cruise market in the world—following the United States, which currently holds the number one spot. According to the Chinese Ministry of Transport (MOT) China could potentially generate 4.5 million cruise passengers by 2020 and exceed 10 million within 20 years—leading to the need of more than 100 cruise ships.

Royal Caribbean faces lawsuit after rough trip on Anthem of the Seas

6 MARINE LOG March 2016

New Jersey resident Frank DeLuca—and “on behalf of all other similarly situated passengers aboard Anthem of the Seas.” The class action suit seeks “judgment for all damages recoverable under the law against the Defendant (RCCL), including punitive damages, and demands trial by jury.” The complaint says that RCCL intentionally decided to sail Anthem of the Seas into the path of a hurricane where “more than 4,000 passengers were subjected to

hours of sheer terror” as the ship was “battered by hurricane force winds and more than 30 foot waves.” “A s t h e ve s s e l wa s l e av i n g P o r t ,” says the filing, “Captain Claus Andersen informed the passengers that there was a weather system building along the east coast and he intended to outrun the growing storm. In other words, RCCL was knowingly sailing directly towards a quickly intensifying hurricane.”

bottom: CANARYLUC / Shutterstock.com

Royal Caribbean Cruise Line is dealing with some rough seas as of late. As we were going to press, the cruise line’s 1,142 ft Anthem of the Seas was docking in Bayonne, NJ, following a norovirus outbreak on board and a brewing storm forming in the Atlantic. The trip was the second in the month of February that saw Anthem of the Seas cutting its itinerary short. Earlier in the month, the Quantum Class ship was literally rocked by a major storm in the Atlantic—tossing furniture, pool water and passengers about. Passengers were confined to their staterooms for 12 hours, while waves crashed into the ship. Following its headline making, and twitter trending trip into a hurricane last month—no one was severely injured— the cruise line is now being hit with a class action suit. Passengers who were on board of Anthem of the Seas when it set sailed on February 6 filed suit in the U.S. District Court in Miami. The suit was brought by attorney Michael A. Winkelman, of Lipcon, Marguiles, Alsina & Winkleman PA, acting for

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UPDATE Female power: Women in management help increase profits

The Z-Tech 4000 class of escort tugs have a 60 tonne bollard pull

Eastern delivers escort tug to Bay-Houston Panama City, FL-based Eastern Shipbuilding Group has delivered the first in a series of four Z-Tech Class Terminal and Escort tugs being built for Bay-Houston Towing Company, Houston, TX. The H. Douglas M measures 80 ft x 38 ft 3 in x 15 ft 9 in and is fitted with two Caterpillar 3516C (B rating) Tier 3 marine propulsion engines rated at 5,150 hp each at 1,600 rev/min. The tug’s main propulsion is provided by two Schottel Model SRP 1215FP in Nozzles Z-Drives, while John Deere provided two 4045AFM85 Tier 3, 99kW 480 V marine diesel engines generating 1,800 rev/min. Markey Machinery supplied a Fairleader 50 hp electric hawser winch, Model DEPCF48S, 36 in wide electric hawser winch.

Deckplate experience behind every design.

The vessel is classed by ABS as an XA1, Towing Vessel, AMS and Escort Service ABS Loadline (SoC), Statement of Compliance. Designed by Robert Allan, Ltd., the Z-Tech 2400 class offers omni-directional performance; and speed and bollard pull astern are almost equal to that going ahead. The 2400 class has a 60 tonne bollard pull. Bay-Houston Towing Co. operates in the ports of Houston, Galveston, Texas City, Freeport and Corpus Christi. As we reported in last month’s Update section, Eastern is also constructing an identical series of four tugs for Suderman & Young Towing Co. The second vessel in that series, the 80ft Neptune was launched earlier this year. Meanwhile, the lead vessel, the Triton, was delivered back in December 2015.

Want to make your company a more profitable one? The solution may be to add more women to your management team. According to a recent study by the Peterson Institute of International Economics, companies that went from having no women in a corporate leadership position, such as that of CEO or member of the board, to a 30% female share –translates roughly to a 15% percent increase in profitability for a typical firm. The study was based on responses derived from 22,000 companies in 91 countries. At this year’s SMM 2016 show, the Maritime Career Market will highlight career opportunities available to women in the maritime industry—specifically those requiring skilled workers in shipbuilding, equipment and port companies. “ T he Maritime Career Market is intended to help women in their vocational development—it is a very good sign that this subject is being addressed at an industry fair which is more aimed at technical matters,” says Dagmar Klenk, President of WISTA Germany. The Women’s International Shipping & Trading Association (WISTA) has been engaged for more than 40 years in women’s international networking in the maritime industries. Also, during SMM 2016 this year, WISTA Germany will present its “Personality of the Year 2016” award. “Our aim with this award is to highlight female personalities who have an exemplary function in career and commitment in the maritime industries,” says Klenk.

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8 MARINE LOG March 2016

Inland • Coastal • Offshore • Deepsea

Gulf Island Shipyards delivers new river towboat Gulf Island Fabrication subsidiary Gulf Island Shipyards, LLC has delivered the second in a series of three 10,000 hp towboats it is building for Marquette Transportation Co., Paducah, KY. The 180 ft x 48 ft towboat was named Loree Eckstein in honor of Marquette President & CEO John Eckstein’s wife. The towboat, the 130th vessel in the Marquette fleet, will be capable of pushing 40 barges up and down the Mississippi River. Built at Gulf Island’s Houma South shipyard in Louisiana, the Loree Eckstein includes a spring-mounted upper deckhouse to reduce vibration and increase crew comfort. Its powered by a pair of EPA Tier 3 compliant EMD 20-710 G7C main engines that produce a total of 10,000 hp via Lufkin gears. It is also fitted with two ducted, stainless steel, five-bladed, 10 ft diameter propellers, two sets of flanking rudders and two sets of Becker High-Lift steering rudders for steering and maneuverability. Loree Eckstein is the sister vessel of the Rick Calhoun, delivered by Gulf Island in August. The final vessel in the series, the Chad Pregracke, will be delivered this fall.

Vard Marine secures design contract for two Designer and shipbuilder of offshore and specialized vessels, Vard Holdings Limited, has secured a NOK 325 million ($37 million) contract to design and construct one stern trawler for Norway’s largest trawler company, HAVFISK ASA. HAVFISK ASA operates a fleet of ten vessels. The stern trawler will be the first vessel of its kind based on the VARD 8 02 design. The 80 m long vessel will feature two separate cargo holds, a fish factory, and a freezing capacity of 80 tons per 24 hours. “With this newbuild HAVFISK will increase the efficiency and flexibility [of its fleet] further,” says HAVFISK CEO Webjorn Barstad.

The design reflects a focus on safe operations, cargo handling and the crew’s wellbeing. The hull will be built at Vard Braila, with delivery by Vard Søviknes in the first quarter of 2018. Contract with Chilean Navy Vard Marine also recently won a contract from the Chilean Navy to design an Antarctic icebreaking vessel. The contract will see Vard design a 125 m vessel that can carry a wide range of containerized and vehicle cargo; helicopters and rescue boats for logistics/SAR missions; and has the ability to undertake a broad range of scientific data gathering activities in the Southern Ocean.

Viking AHTS is the first to meet IMO Polar Code Viking Supply Ships’ AHTS Magne Viking is officially in compliance with the new IMO Polar Code, according to classification society DNV GL. The IMO Polar Code will be mandatory for all SOLAS vessels entering Arctic and Antarctic waters beginning January 1, 2017. The Code is an add-on to existing IMO codes where the main requirements are related to safety and the protection of the environment. Seeing the value in the IMO Polar Code, Viking Supply decided to update the vessel and its equipment. “As this vessel was already winterized and built for operation in cold climate, most of the additional requirements in the Polar Code were already fulfilled before we started the implementation process,” says Andreas Kjol, Project Director, Viking Supply Ships. DNV GL classed Magne Viking an iceclassed AHTS vessel capable of operations in harsh environment offshore regions, as well as Arctic/Sub-Arctic operations. The 85 m ship was built by Spanish shipbuilder Zamakona in 2011.

March 2016 MARINE LOG 9

UPDATE Qatargas, Maersk and Shell ink MOU to explore LNG in Middle East Liquefied natural gas (LNG) company Qatargas, the Maersk Group and Shell have signed a Memorandum of Understanding (MOU) to explore the development of LNG as a marine fuel in the Middle East region. The three companies will come together to explore the development of new markets for LNG in the hopes that LNG supplies for the initiative with be made available from

Qatargas 4, a joint venture between Qatar Petroleum and Shell Gas B.V., with Maersk Line potentially using the fuel for its merchant fleet. Qatargas 4 is Shell’s first entry into Qatar’s LNG sector. “Qatargas is committed to leading the industry in pioneering new applications for LNG and maintaining the highest environmental standards,” says Khalid Bin Khalifa

The National Shipping Company of Saudi Arabia General Cargo

Al-Thani, Qatargas Chief Executive Officer. “The signing of this MOU is an important milestone in this journey.” “We are very proud to continue to pioneer new and novel opportunities to utilize Qatar’s LNG,” says Saad Sherida Al-Kaabi, Chairman of the Qatargas Board of Directors. “We are also proud to partner with industry leaders such as Maersk and Shell to create potential new market opportunities for Qatar’s LNG and, at the same time, provide ship operators around the globe with a cleaner fuel alternative to the heavy fuel oils currently in use.” “Shell has been a pioneer in this area with our investments in LNG for transport infrastructure in Europe and the U.S., and we look forward to now deploying our expertise to create a regional hub in the Middle East in collaboration with Qatargas, the largest LNG producer in the world and Maersk, the world’s largest shipping container company,” says Michiel Kool, Managing Director and Chairman of Qatar Shell Companies.

USACE orders cat from All American Marine

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10 MARINE LOG March 2016

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The U.S. Army Corps of Engineers (USACE) has awarded a contract to All American Marine, Inc., Bellingham, WA, for the construction of a new 68 ft Teknicraft-designed hydrofoil-supported aluminum catamaran survey vessel. The vessel will replace the Shuman, a 65 ft USACE survey vessel built in 1970. Designed by Teknicraft Design, Ltd., Auckland, New Zealand, the new 68 ft x 26 ft custom cat will feature Teknicraft’s signature hull shape with symmetrical bow, an asymmetrical tunnel, and integrated wave piercer. All American Marine says a custom aluminum hydrofoil will be fit to span between the sponsons to generate lift of the semi-displacement hulls and enhance performance. Propulsion power will be supplied by two Caterpillar C18 diesel engines, each rated 1,001 bhp at 2,300 rev/min, with an EPA Tier III emissions rating. Auxiliary power will be supplied by two Northern Lights C40M.3 40 kW generators. The new cat will be able to operate at a cruise speed of 28 knots, enabling the USACE to get to a survey site much quicker—allowing more time at the site, and the chance for greater data collection.

Inland • Coastal • Offshore • Deepsea

Safety First: Crowley celebrates milestone in Valdez, Alaska Crowley Maritime Corporation’s tanker escort and docking services group in Valdez, AK, is celebrating over seven million man hours and more than six years since logging its last Lost Time Injury (LTI). In 2015, Crowley logged over one million man hours while safely escorting 236 tankers through Prince William Sound, transporting 185 million barrels of oil in one of the

harshest environments in the world. Crowley helps protect the environment in the region through its partnership with Alyeska Pipeline Service Company’s Ship Escort/ Response Vessel System (SERVS). Crowley provides SERVS with tug escorts for tankers traveling through Prince William Sound to and from the Valdez Marine Terminal. Their agreement also includes providing secure

docking and undocking operations at the oil product loading terminals. Last year, Crowley added to its partnership with SERVS by planning and supervising classroom and field training exercises for the fishing vessel training program. In addition, Crowley also announced that the company had not had an OSHA recordable case in over two million man hours.

Matson reports strong results for 2015 A leading U.S. carrier in the Pacific, Matson, Inc., reports that 2015 was among the best years in its company’s history. For the full year of 2015, Matson reports its net income was $103 million, or $2.34 per diluted shared—an increase when you compare to its 2014 numbers of $70.8 million, or $1.63 per diluted share for all of 2014. Additionally, its consolidated revenue was up from $1,714.2 million in 2014 to $1,884.9 million in 2015. Matson President & CEO Matt Cox says, “2015 was an exceptional year for Matson. Financially it was the best year in our history. Strategically, we substantially grew our ocean transportation platform with the acquisition of the Alaska trade and we reinforced our position as the service leader in Hawaii, Guam, China and Micronesia.” Matson expects its Hawaii container volume to be moderately higher than it was in 2015—especially given the island’s healthy economy and the current construction cycle in Honolulu. Alaska is also expected to play an integral role in Matson’s 2016 success. Cox says the integration of the Alaska operations, which is expected to be substantially complete by the third quarter this year, will be a major focus for the company in 2016. The investment in Alaska, says Cox, is “supported by the attractive cash flow and earnings generation characteristics of the business and is on track to achieve our earning and cash flow accretion expectations.” Cox adds, “In 2016, we expect to continue to deliver strong operating results, although modestly lower than the record level achieved in 2015. Matson’s core businesses are well-positioned to generate significant cash flow to pay down debt,” this includes the company’s new vessel investments.

March 2016 MARINE LOG 11

UPDATE The Articulated Tug Barge unit was built by VT Halter Marine

Bouchard christens 250,000 bbl ATB in New Orleans F a m i ly o w n e d p e t r o l e u m m a r i n e transportation company Bouchard Transportation Co., Inc., Melville, NY, christened the 250,000 bbl Articulated Tug Barge unit M/V Donna J. Bouchard and B. No. 272 last

month at ceremonies at the Cruise Ship Terminal in New Orleans, LA. VT Halter Marine’s Pascagoula, MS, shipyard built the oceangoing petroleum barge B. No. 272. Barge B. No. 272 is the barge

component of the second of two Articulated Tug Barge (ATB) units on order for Bouchard at VT Halter Marine. The tug component, 150 ft x 50 ft x 29 ft M/V Donna J. Bouchard, was built at VT Halter’s Moss Point Marine shipyard in Escatawpa, MS. Barge B. No. 272 measures 625 feet by 91 feet by 47 feet, has a 250,000-barrel capacity, and is ABS and USCG certified for Jones Act service. The Donna J. Bouchard is a 150 ft, 10,000 hp, twin-screw ATB tug and is classed by ABS as ✠A1 Towing Vessel, Dual Mode ATB, USCG Subchapter M, and is equipped with an Intercon Coupler System. The ATB unit was designed by renowned naval architectural firm Guarino & Cox, LLC, Covington, LA. The articulated tug barge is fitted with Hyde Guardian ballast water treatment systems. The HG150 system on the ATB tug Donna J. Bouchard is the 300th Hyde Guardian BWTS to be sold. Hyde GuardianGold (HG1000GX-ATB) units were sold by W&O Supply, Hyde Marine’s exclusive sales distributor in the U.S. and Canada, for the two 250,000 bbl ATBs built at VT Halter Marine’s Pascagoula, MS, shipyard. They were placed on the deck of the vessels.

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12 MARINE LOG March 2016

inside washington

Legislation would prohibit drilling for oil or gas in the OCS Dead on arrival. That’s how House Speaker Paul Ryan (R-WI) described President Obama’s proposed $10 per barrel fee on oil that was tucked away in his final budget plan to Congress. The revenue generated by the fee would be phased in over a five-year period and would be used to fund $300 billion worth of clean technology infrastructure to help combat climate change. In response to the proposal, American Petroleum Institute (API) President Jack Gerard said the $10 per barrel tax would harm consumers. “The White House thinks Americans are not paying enough for gasoline, so they have proposed a new tax that could raise the cost of gasoline by 25 cents a gallon, harm consumers that are enjoying low energy prices, destroy American jobs and reverse America’s emergence as a global energy leader. “On his way out of office, President Obama has now proposed making the United States less competitive.” API represents all facets of the oil and

natural gas industry, which supports 9.8 million U.S. jobs and 8 percent of the U.S. economy. Under the banner of avoiding the “most dangerous impacts of climate change” and the promotion of “rapid transition to a clean energy economy,” some Washington

“On his way out of office, President Obama has now proposed making the U.S. less competitive.” lawmakers would like to prohibit industry from drilling for any oil or gas on the Outer Continental Shelf (OCS) or mine for coal on federal land. Last month, a group of Democratic representatives introduced H.R. 4535, “Keep It in the Ground Act of 2016,” which would stop new offshore oil and gas leases in the U.S. Gulf of Mexico, Pacific, Atlantic and Arctic Oceans. The

Secretary of the Interior would not be able to issue a new lease, renew, reinstate, or extend any nonproducing lease, or issue any other authorization for the exploration, development, or production of oil, natural gas, or any other fossil fuel in any of those regions on the OCS. Additionally, not more than 60 days after the date of the enactment of the law, the Secretary of the Interior would cancel any lease issued under section 8 of the Outer Continental Shelf Lands Act in the Beaufort Sea, Cook Inlet, or Chukchi Sea. In addition, the Secretary of the Interior would not conduct any lease sale, enter into any new lease, reoffer for lease any land covered by an expiring lease, or renew, reinstate, or extend any nonproducing lease in existence for onshore fossil fuels, including coal, oil, tar sands, oil shale, and gas on land subject to the Mineral Leasing Act. While the legislation was referred to the House Natural Resources Subcommittee on Energy and Mineral Resources, it is clearly dead on arrival.

March 2016 MARINE LOG 13

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Shipyards

Seaspan spent $155 million to modernize its Vancouver Shipyards

Rethink, Reposition & Reinvest North American shipyards diversify and inject new capital into facilities Compiled by Marine Log Staff to attract new business

il and gas E&P generates billions of dollars worth of business annually for shipyards in the form of newbuilds, conversions, and ongoing repairs and maintenance. With the downturn in oil, however, much of that business has dried up and forced shipyards that depend on the oil patch to rethink their strategy. Many are repositioning themselves to pursue other markets or are undertaking capital investments in their facilities to be more efficient and competitive. There’s no better example than VARD Holdings, one of the world’s largest shipbuilding groups, whose portfolio is heavily focused on offshore oil and gas. Amid losses of NOK1.29 billion (about $148 million) for 2015, VARD said last month it would preserve its core expertise and skilled employee base and use its existing shipyard capacity until an eventual recovery in its core market. Among the areas it was pursuing were the offshore wind and aquaculture markets. It will also work more closely with its major shareholder, Fincantieri, to support the cruise and offshore patrol vessel sectors.

North American Shipyards Invest, Diversify While operators in the Gulf of Mexico have cold stacked many of their vessels, Galliano, LA-based Edison Chouest Offshore, one of the world’s largest offshore support vessels operators, announced last month that it would invest $68 million in opening a new shipyard in the Port of Gulfport, MS. The shipyard, called TopShip, LLC, will operate at the former Huntington Ingalls Composite

Facility, which was acquired by the Port of Gulfport last March. The new yard was made possible through an incentive package from the Mississippi Development Authority that would help bring TopShip to the port and create over 1,000 jobs, according to Jonathan Daniels, Executive Director and CEO of the Mississippi State Port Authority. Lawmakers approved an $11 million package through the Mississippi Major Economic Impact Authority—with $10 million going to discretionary funds and $1 million allocated for workforce training. Additionally, the Port has said it would provide $25 million in Katrina-CDBG funds for infrastructure improvements. ECO already operates shipyards in the U.S. and one in Brazil: North American Shipbuilding, Larose, LA, LaShip, Houma, LA, Tampa Ship, Tampa FL, Navship in Brazil, and Gulf Ship which is also in Gulfport. Having been born in Mississippi, Gary Chouest, ECO President and CEO expressed his gratitude towards the state for the opportunity to provide quality service to its customers, and help the community thrive. “We are indeed excited about the opportunities to grow TopShip in a business friendly state, one where we can reach out into the community to recruit various skill sets, developing a quality workforce that will allow TopShip not only to compete locally, but also globally,” said Chouest. Mississippi’s VT Halter Marine, too, has seen how investing in March 2016 MARINE LOG 15

Shipyards its facilities can help business. Over the last 10 years, VT Halter has invested over $100 million to upgrade its three facilities in the state. This includes a $13 million investment in a new drydock and repair facility back in 2015, the addition of a blast and paint facility; and the purchase of a 76,000 ft 2 climate-controlled warehouse. The investments have not only allowed growth into the repair business, but also made VT Halter Marine more efficient in its newbuild projects, enabling it to meet the growing demands of the increasingly popular Articulated Tug and Barge (ATB) market. Most recently, VT Halter completed the second of two 250,000 bbl ATB units for Bouchard Transportation (see this month’s CEO Spotlight); and currently is preparing to deliver the second of two 130 ft, 6,000 hp ABS class ocean towing ATB tugs for Bouchard. VT Halter Marine is also currently building two 2,400 TEU LNG-powered combination ConRo ships for Crowley Maritime Corporation’s liner services between Florida and Puerto Rico. The ships will be delivered by VT Halter Marine in 2017. Another yard that has benefited from the use of Liquefied Natural Gas (LNG) as a marine fuel is Conrad Industries. The last few years has seen Conrad Industries, Inc., Morgan City, LA shifting its business approach and diversifying its portfolio—among the shipbuilder’s offerings, it builds tugs, ferries, ocean tank barges, liftboats and specialty barges. In 2015 the yard’s orderbook received a spate of new construction contracts, including the the first LNG bunker barge for the North American market. Conrad’s Orange Shipyard, Orange, TX, recently launched a 2,200 m 3 capacity LNG bunker barge for WesPac Midstream LLC. Designed by Bristol Harbor Group, Inc., Bristol, RI, and built to ABS class, the barge, when delivered later this year, will serve TOTE’s Marlin class containerships—Isla Bella and Perla del Caribe, both built at General Dynamics NASSCO. Those LNG-fueled ships are already operating in the Jacksonville to Puerto Rico trade. The shipbuilder has also broadened its offerings further with the expansion of its Deepwater South facility in Amelia, LA. The 52-acre site has enabled Conrad to build large ATB units. Currently there are eight tank barges under construction at Deepwater South—ranging from 55,000 to 83,000 bbl capacity. Deepwater South will undergo a wide range of improvements this year including the addition of a new fabrication and assembly building—which will allow for the uninterrupted construction of hull modules year round; and a new Panel Line Building— expected to process 350 tons of steel per week.

Three New Fab Bays C&C Marine and Repair, Belle Chasse, LA, is focusing on increasing efficiencies to maintain its competitive advantage. The yard recently added three new fabrication bays giving C & C an additional 115,000 ft 2 for the construction of boats and barges; and a fabrication area of 230,000 ft 2 . Over the next few months, the yard plans to order two additional transporters (it currently has two capable of moving 600 tons) with a capacity of 830 tons, bringing the total capacity of its transporters to 1,430 tons. This, says New Construction Manager Matthew J. Dobson, will create new opportunities for the yard, and enable C & C to begin taking orders for the fabrication of new 30,000-barrel barges. The yard currently has 29 newbuilds under contract including three 6,600 hp towboats, one 280 ft PSV, one 270 ft cutter head barge, 16 tank barges and eight deck barges.

Expanding Into Larger Vessels Back in 2014, Metal Shark Boats, Jeanerette, LA, was already a successful builder of aluminum vessels, but it had its sights on the 16 MARINE LOG March 2016

A new 400 ft x 108 ft drydock on its way to Detyens Shipyards

construction of larger vessels, as well as expansion of its portfolio to include steel. It also signed a technology agreement with Damen that would allow it to build offshore patrol boats up to 165 ft in length. With the development of the new shipyard in Franklin, LA, Metal Shark, now employs 230 workers between its boat yards, and is among the busiest boatbuilders in the U.S., currently producing a number of 38 ft, 45 ft and 55 ft Defiant class vessels and constructing large orders for the U.S. Coast Guard, U.S. Navy and multiple agencies across the U.S. It also delivered a sophisticated 75 ft multiple purpose port security fire boat to the Port of South Louisiana.

Eye On The Caribbean Market For St. Johns Ship Building, diversification of its portfolio and the markets it reaches will propel its next evolution. The small shipyard recently delivered the first Elizabeth Anne class of towing vessels to the Vane Brothers Company. The tug is the first in a series of eight the Palatka, FL-based yard is building for the operator. St. Johns Ship Building’s yard sits along the St. Johns River—giving it the unique advantage of being on the East Coast with access to both the Gulf of Mexico and the Caribbean—and its because of its location St. Johns has been able to produce such a diverse portfolio. From OSVs to tugs (a new market for the builder), to coast guard vessels and cargo ships, St. Johns’ 100 acre facility and its 150 employees are at the ready to take on a variety of projects. St. Johns Ship Building President Steven Ganoe says that because the yard doesn’t solely rely on the oil and gas market it has been able to keep business steady during the downturn in the oil and gas market. Ganoe says the shipyard is keeping tabs on the Caribbean market to see how it develops in the wake of the easing of restrictions on Cuba travel—and determine how St. Johns can help meet any growing demand in that specific market. In the meantime, the shipbuilder continues to make improvements to its facility—having recently added an 18,000 ft 2 assembly shop and a Messer CNC 80 ft table to help make production more efficient.

The Allure Of New Drydocks A few months ago, Virginia Governor Terry McAuliffe announced that Colonna’s Shipyard in Norfolk would undergo a significant expansion, with the yard investing over $30 million. The expansion would include a new larger drydock, dredging and improvement work to the channel and bulkhead work, and the creation of 51 jobs to the area. The new floating drydock, which will be named the Charles J., will have a lifting capacity of 11,500 metric tons, an overall length

Shipyards of 595 ft and an inside width of 108 ft. The Charles J. is expected to be fully operational in early 2017 and will accommodate a variety of vessel types including ferries, tugs, barges, containerships, OSVs and several type of government vessels. Meanwhile, South Carolina-based Detyens Shipyards recently added its own new floating drydock. Built by Corn Island Shipyard, Grandview, IN, the 400 ft x 108 ft drydock will enable the yard to provide a more cost-effective service to smaller tonnage vessels. According to Detyens, in the past, smaller vessels would have to piggy back in the yard’s larger graving dock—now with the addition of the smaller dock, it can provide drydock services to vessels up to 11,000 dwt. On the U.S. West Coast, BAE Systems is investing $100 million to build and install a second, larger drydock at its San Diego shipyard. Currently under construction in China, the 950 ft drydock will have a lifting capacity of 55,000 long tons and is expected to support the expansion of the Navy ships homeported in San Diego, which are expected to increase by 20 from 60 to 80 by 2020. In 2014, Vigor Industrial’s Portland yard began operating its new $50 million drydock, the Vigorous. It has been booked since, supporting hundreds of jobs and attracting work that could not previously be performed in the region, says Vigor’s Athena Maris. With a lifting capacity of 80,000 long tons, the drydock is 960 ft long with an inside width of 186 ft. Among the projects performed on Vigorous is repair work on cruise vessels, and this past summer, a hull repair on the multipurpose icebreaker MSV Fennica. The addition of Vigorous at the Portland yard, enabled Vigor to also reinvest in some of its existing assets. Specifically, Vigor was able to upgrade and transfer one of Portland’s drydocks to its Seattle facility. In Seattle, the drydock Vigilant will be used to perform repair work on the recently awarded Structural Enhancement Drydock Availability (SEDA) Projects. There, the U.S. Coast Guard cutters Bertholf and Waesche will both undergo significant structural enhancement work, system upgrades and maintenance.

San Diego Boatbuilder Gets Bigger, Greener San Diego based Marine Group Boat Works will soon break ground on a $1.5 million green initiative that will see the yard install a solar panel system compliant with the state of California’s Solar Initiatives. The addition of solar power comes during one of the company’s most exciting periods, says Marine Group Boat Works’ (MGBW) Leah Yam. MGBW, which has two yards in San Diego and one in San Jose del Cabo, Mexico, recently completed a $2.5 million renovation to its deepwater floating docks system, and will install the final set of docks this spring—making it fully ready for in-water repairs on vessels up to 420 ft in length. Among MGBW’s most recent repair and retrofit projects is the $19 million refurbishment of the Golden Gate ferry M.S. San Francisco. Beyond its repair business, MGBW is also making a dent in the new construction market. Since launching its new construction division in 2008, the shipyard has increased its employee numbers by about 195%, employing 185 workers. Currently, MGBW has five 60 ft aluminum dive boats under construction for the U.S. Navy— the contract calls for the construction of 16 vessels.

Canadian Yards Invest For NSPS The end of 2014 saw the completion of Seaspan’s Shipyard Modernization project. Funded entirely by the shipyard, the $155 million project helped transform Seaspan’s Vancouver Shipyards into one of the most modern yards in Canada. The two-year project included the addition of four new fabrication buildings— housing a sub assembly shop; panel shop with panel line; block

Vigor’s new 80,000-long-ton-capacity drydock has been busy

assembly shop; pre-outfitting shop; paint and blast shop; and Canada’s largest (300 tonne) permanent gantry crane. The expansion was integral to meeting the newbuild project requirements for the Canadian Coast Guard and the Royal Canadian Navy. Vancouver Shipyards is currently building the first Offshore Fisheries Science Vessel (OFSV) under the National Shipbuilding Procurement Strategy (NSPS) for the Canadian Coast Guard. The 208 ft x 52.5 ft OFSV will help support scientific and ecosystem research critical to the economic viability and health of the region’s marine environment. At press time, 30 of the 37 blocks of the OFSV were under construction. Seaspan also invested an additional $15 million at its Victoria Shipyards. At press time, there were nine vessels undergoing refits and drydock work at one of Seaspan’s yards—including the 94 ft Canadian Coast Guard vessel Siyay with is undergoing a nine-month midlife modernization refit. At Irving Shipbuilding, Halifax, NS, Canada, the company’s $330 million capital investment plan is already paying dividends. Last September, it marked the start of production of the HMCS Harry DeWolf, the first Arctic Offshore Patrol ship (AOPS) for Canada. The ship is the first of up to 21 vessels that will renew Canada’s combatant fleet over the next 30 years under the NSPS. Irving Shipbuilding has built more than 80% of Canada’s current combatant ships. Current direct employment at Marine Fabricators in Dartmouth and the Halifax Shipyard is about 900. Over the next two years, the workforce at both sites is expected to rise to 1,600, with over 1,000 directly employed on AOPS production. In addition, total employment at Irving Shipbuilding (all operations) is forecasted to rise to over 2,500 direct employees at peak production of the larger Canadian Surface Combatant vessels that will replace Canada’s current fleet of Halifax Class frigates. To date, the modernization at Irving Shipbuilding and the AOPS contract have resulted in over $1 billion in spending commitments. Meanwhile, one of the oldest shipyards in North America, Chantier Davie Canada Inc., Levis, Quebec, has taken its first steps in the Resolve-Class Auxiliary Oiler Replenishment ship project. The project involves the conversion of a containership into an Auxiliary Oiler Replenishment Ship that will be delivered to the Canadian Royal Navy in 2017. It also recently completed the refit of four of Canada’s heaviest icebreakers, as well as a bulk carrier and is a pioneer in the construction of LNG-fueled ferries. ■ March 2016 MARINE LOG 17

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Cybersecurity

Government and maritime-related authorities are working to develop strategies and legislation to support a common approach to cybersecurity

From Conversation to Implementation Increasing reliance on technology raises cyber risks for ships and ports By Jon Sawicki, Senior Consultant, Witt O’Brien’s; Security Improvement Program Manager, Ports of Brownsville and Harlingen, TX

Shutterstock/GlebStock

he worldwide community continues to ride a wave of technology that streamlines many aspects of our everyday lives. Communications, travel, healthcare, recreation, and commerce, you name it — reliance on computer systems and networked solutions remain at the forefront of growth and development. While technological innovation has long been a critical catalyst for growth, it is commonly viewed as a double-edged sword. When innovation drives a market, so does risk. In recent years, headlines have been littered with the words “cyberattack” and “data breach.” From the world’s largest companies and governments, to the average online shopper, we all must face the reality that motivated, capable, and persistent cyber threats exist; and the potential for theft, damage, and disruption on a global scale is real. Running parallel with technological innovation, the global maritime transportation system is going through its own period of growth and change. A clear example of this was witnessed by onlookers on December 31, 2015, as the container ship Benjamin Franklin cleared the Golden Gate Bridge on its way to the Port of Oakland, CA. With a draft of 52 ft and just 20 ft to spare from the Golden Gate, the Benjamin Franklin, along with its 18,000 containers, became the largest container ship to ever call upon a U.S. Port. Accommodating larger vessels means expanding not only the waterways, but also the capabilities and capacities of the terminals and people tasked with handling the cargo. “Among the greatest concerns that impacts both military and

civilian realms is cybersecurity. Today, we have a billion devices that are accessing the Internet. Our economies are entangled in this Internet sea, and it’s an outlaw sea… At some point, there needs to be a very global conversation on this challenge.” – James G. Stavridis, Navy Adm., NATO’s supreme allied commander for Europe and Commander of U.S. European Command Coupled with brick and mortar type infrastructure projects, port facility and vessel owners/operators are increasingly turning to and relying on technology to meet supply chain demands. As technology enhances efficiency, cyber-related vulnerabilities in the maritime transportation system continue to be exposed. In response to this evolving cyber risk landscape, governments and maritime-related authorities/organizations worldwide are working to develop strategies and legislation in support of a common approach to cybersecurity and network preparedness.

The U.S. Government’s Approach to Maritime Cybersecurity In June 2015, the U.S. Coast Guard (USCG) published its vision for operating in the cyber domain. With the below mission statement, the USCG officially outlined a strategy for defending cyberspace that both enables operations and protects infrastructure. “We will ensure the safety of our cyberspace, maintain superiority over our adversaries, and safeguard our Nation’s critical maritime infrastructure.” In October 2015, congressional members of the House Homeland Security Committee, Subcommittee on Border and Maritime March 2016 MARINE LOG 19

Cybersecurity ABS issues guidance on cyber security Classification society ABS has published Guidance Notes on the Application of Cybersecurity Principles to Marine and Offshore Operations. “Each organization seeking to establish or maintain a cybersecurity program must make the collective decision to use the information, lessons, and accumulated wisdom gained from others in support of an internal commitment to continuous improvement,” reads the guidance. “Threats do not stagnate. Threats mutate, evolve, and re-form based on changes in technology, financial gain incentives, and political agendas. Organizations and security programs seeking to be unaffected by threats must not stagnate either.” The guidance note is the first volume in the ABS CyberSafety series, and provides best practices for cybersecurity as a foundational element of overall safety and security within and across the marine and offshore industries. Asset owners can apply best practice approaches to four key cyber areas: cybersecurity, automated systems safety, data management and software assurance. ABS CyberSafety defines a scalable approach that can be applied from a single component to a multi-system suite of assets. The program can also be used with industry regulatory mechanisms within or external to the marine and offshore industries to achieve sustainable, measurable and secure asset condition. “Safety and protection are fundamental to ABS, and the Cybersecurity Guidance Note is the first step toward developing a holistic and sustainable cybersecurity strategy,” says ABS Chairman, President and CEO Christopher J. Wiernicki. “As automation has permeated vessel and onshore systems, it is more critical than ever that we provide the most comprehensive guidance to help asset owners, vendors, operators, crews and regulators develop a sustainable and measurable methodology for approaching cybersecurity and cyber-related safety concerns.” You can access the guidance note at www.eagle.org.

Security, held a hearing to discuss the USCG’s cybersecurity strategy and the current status of cybersecurity at U.S. ports. Witnesses included representatives from the USCG, the U.S. GAO; the Port of Long Beach, CA; and the Ports of Brownsville and Harlingen, TX. Witness testimonies revealed cybersecurity challenges faced by ports and maritime facilities related to cyberattack reporting, information sharing, and mitigation planning. On the heels of the Border and Maritime Security Subcommittee Hearing, the House unanimously approved a port cybersecurity bill (H.R 3878) on December 18, 2015. Dubbed the “Strengthening Cybersecurity Information Sharing and Coordination in Our Ports Act of 2015,” the bill solidifies the USCG as the lead agency charged with managing port-wide cybersecurity, and establishes requirements for integrating cybersecurity with port security activities currently in place as a result of the Maritime Transportation Security Act (MTSA) and International Ship and Port Security (ISPS) code. Although stopping short of imposing new regulations, the three sections of H.R. 3878 echo the internationally common themes of risk-based decision making and enhanced information sharing in its approach to cyber risk management.

The Global Conversation Published in 2011, the first report on port cybersecurity prepared by the European Union Agency for Network and Information 20 MARINE LOG March 2016

Security (ENISA) sought to gauge current capabilities and establish a baseline for maritime cybersecurity among its members. Key findings included a lack of maritime cybersecurity awareness and related policies as well as a need for a common cybersecurity strategy and best management practices. The ENISA report strongly recommends a risk-based approach and assessment of maritime-specific cyber risks; expanding maritime regulations and policies beyond just physical aspects of security and safety; as well as better information exchange and statistics on cybersecurity.

From Conversation to Implementation If conversation was the leading factor in determining network preparedness, we would be well on our way to securing critical infrastructure worldwide. Unfortunately, this is not the case. The challenge for many organizations is not identifying the cybersecurity problem, but rather determining the best solution to addressing their competing needs for system protection, system accessibility, and systems reliability and resiliency. To facilitate the planning process and ensure its effectiveness, an organization must fully understand and base decisions on their cyber risk profile. In February 2013, President Obama issued Executive Order that required the development of a voluntary, risk-based Cybersecurity Framework to include a set of existing standards, guidelines, and practices to help organizations manage their cyber risks. The resulting framework for improving critical infrastructure cybersecurity, created by the National Institute of Standards and Technology (NIST), provides a structure that organizations, regulators, and customers can use to create, guide, assess, or improve comprehensive cybersecurity programs. Created through publicprivate collaboration, the framework provides a common approach to cyber risk management that is both cost-effective and grounded in addressing the business needs of an organization. Given the interdependencies that exist within the maritime community, the process of hardening cyber defenses and creating resiliency cannot end at any one fence line or network perimeter. Organizations can no longer view their information technology groups as separate support mechanisms, and should instead integrate them more broadly with operations, business development and emergency/crisis management teams. Collaboration and information sharing is a must, and as such, entities like the U.S. Coast Guard, FBI, and U.S. Cyber Emergency Response Team (US-CERT) provide multiple platforms and tools to aid in not only conducting assessments, but facilitating collaboration between public and private sector representatives across the United States. Groups such as InfraGard (FBI) and U.S. Coast Guardß Sector Area Maritime Security Committees are currently engaging with members of the maritime community to address cybersecurity realities and develop partnerships forged by mutual benefit. As this trend continues to evolve the maritime industr y must stay active in the conversat ion. Wit h recent cyberattacks allegedly targeting GPS-based navigation and communications systems, the necessity for confronting Cybersecurity cyber vulnerabilities as one expert Jon industry, rather than as sepaSawicki rate entities is clear. ■

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Scandinavia Maritime

UEC’s 85,000 m3 ethylene carriers will be powered by a single MAN B&W 6G60ME-GI main engine

Nordic Technology Incubator Companies located in Scandinavia produced a variety of “blue” and “green” By Nick Blenkey, Web Editor technologies for the world fleet In Part Two of our two-part series on Scandinavia Maritime, we examine the major role that companies in Nordic countries play in the development of cutting edge “blue” and “green” technologies, products, and services for the marine sector.

ucked away in southwestern Finland is Salo, a town of about 50,000, where 40 percent of all the doors for large cruise ships are produced. Antti Marine’s production facility in Salo has produced a quarter of a million doors for 300 cruise ships in just over 20 years. It takes about 10 weeks to produce a typical order of 3,000 doors. They are supplied over a period of six months, as and when the ship’s cabins are built Antti Marine specializes in what it calls ‘“tailored mass production”—necessary because on one cruise ship there may be 150 different types of doors. Antti Marine is not the only Finnish company that benefits from many of the world’s large cruise ship fleet being built in Finland. Cruise ships also have toilets and a need for waste management systems. Finnish headquartered Evac Group has just received its biggest cruise vessel contract ever: total waste management systems for four large cruise ships plus an option to outfit an additional six vessels. The initial four-vessel contract is valued at about EURO 30 million. Each ship will have an Evac Cleansea wastewater treatment plan, allowing operation in Environmentally Sensitive Sea Areas (ESSAs) and Special Areas (SAs), dry and wet waste treatment systems, a bio sludge treatment unit, plus vacuum collecting systems and some 3,000 vacuum toilets. Evac also supplies its products to a wide range of users ashore and afloat. So, too, does fire protection specialist Marioff Corporation Oy—last year, it launched a new generation Hi-Fog 3000

sprinkler series for marine applications that replaces earlier Hi-Fog 1000 and Hi-Fog 2000 sprinkler series. “With the launch of this new generation of Hi-Fog 3000 sprinklers, we are offering to our marine customers enhanced Hi-Fog systems with faster activation, more efficient suppression and improved passenger and crew safety,” says John Hemgård, Director of Marine Business, Marioff Corporation Oy. The Hi-Fog 3000 sprinkler series is designed, tested and type approved according to IMO Res.A800(19) as amended in IMO Res. MSC.265(84). Another Finnish product that really took off after its widespread adoption is ABB’s Azipod. It’s become the propulsor of choice for cruise ships and ABB is currently delivering the complete electrical power plant and propulsion systems for two new 3,300 passenger cruise ships being built at Germany‘s Meyer Werft. The 20.5 MW Azipod XO propulsion unit for the first of the ships recently left the ABB factory in Helsinki. ABB has delivered, or has on order, Azipod propulsion units for about 200 vessels. Each Azipod propulsion unit takes about two months for technicians to assemble at ABB’s Vuosaari plant. Across town at ABB’s Helsinki motors, generators and drives factory, the powerful synchronous motors at the system’s core take shape over six months.

Cooperation Among Stakeholders The major driver for marine engine designers is bringing engines into compliance with emissions requirements while keeping fuel consumption and maintenance costs under control. A new pressurized EGR (exhaust gas recovery) economizer from March 2016 MARINE LOG 23

Scandinavia Maritime Alfa Laval shows how Scandinavian maritime innovation often results from a cooperation between suppliers, university departments and shipowners. It also illustrates that, for some ships, EGR may be a better means of coming into compliance with new NOx limits than the better known SCR (selective catalytic reduction). In a project supported by the Danish Energy-Technological Development and Demonstration Program (EUDP) and developed in cooperation with Aalborg University, the EGR economizer has been rigorously tested aboard the containership Maersk Cardiff. “As a front-runner in the pursuit of green technologies, we were keen to see what the Aalborg EGR-HPE could do,” says Ole Christensen, Senior Machinery Specialist at A.P. Moller-Maersk. “But while we were enthusiastic about the boiler’s potential, we were also somewhat uncertain as how it would handle the physical realities of EGR. The temperatures are twice as high as those of traditional waste heat recovery, and the gas pressures are far greater.” Those concerns disappeared when the boiler was brought online with the Maersk Cardiff ’s two-stroke MAN B&W 6S80ME-C9 engine in November 2014. “Not only did the boiler survive,” says Christensen, “[but also] the results we have seen during testing are very promising.” “EGR provides Tier III NOx compliance with a very compact footprint, but compliance itself is only part of the full potential,” says John Pedersen, Business Manager, Boilers, Combustion & Heaters at Alfa Laval. “Working closely with MAN Diesel & Turbo to optimize the EGR technology, we saw additional opportunities through our expertise in marine boilers.” In the EGR process, around 30% of the exhaust gas is directed back into the engine, which reduces the combustion temperature and thus the production of NOx. Since only the remaining 70% of the gas reaches the traditional exhaust gas boiler after the turbocharger, waste heat recovery is reduced by 30% as well. The Aalborg EGR-HPE is a revolutionary new economizer enclosed in a pressure casing that is placed in-line ahead of the prescrubber sprayers in the EGR circuit. “By moving the break point for waste heat recovery from a medium engine load down to a low load, the Aalborg EGR-HPE enables even slower steaming,” says Pedersen. “That means fuel savings that quickly pay back the economizer, offset the EGR investment and lower CO2 emissions on top of the NOx reduction.” Positioned ahead of the pre-scrubber spray jets, the Aalborg EGR-HPE has access to much higher temperatures than traditional exhaust gas boilers. It is integrated with the conventional waste heat recovery after the turbocharger by its steam drum, which is shared with the traditional exhaust gas boiler. With the output of the traditional economizer feeding into the shared drum, the Aalborg EGR-HPE produces extremely high-quality steam with a temperature of just above 400°C, bringing the waste heat recovery system to a much higher level of efficiency. Using the Aalborg EGR-HPE in an integrated system allows waste heat recovery to occur at lower main engine loads than possible with a traditional waste heat recovery system in Tier III operation. This creates the possibility of even slower steaming. “The EGR economizer makes waste heat recovery beneficial at far lower engine loads, down to around 30%” says Pedersen. “This means that vessels can steam even slower, with huge fuel savings as a result.”

Dual Fuel The B&W in MAN-B&W stands for Burmeister & Wain and the Burmeister & Wain shipyard in Copenhagen built the Selandia, the world’s first successful diesel-powered oceangoing ship in 1912. 24 MARINE LOG March 2016

EGR technology from Alfa Laval provides Tier III compliance

More than a century later MAN Diesel & Turbo in Copenhagen is still on the cutting edge of diesel innovation. One beneficiary of this is TOTE Maritime which opted for MAN Diesel & Turbo dual fuel technology for its two new Marlin Class, Jones Act containerships. Both of these ships have been delivered for operation between the U.S. and Puerto Rico, burning LNG as fuel and thereby meeting all U.S. SECA emissions requirement. Each is powered by the world’s first dual-fuel slow-speed engine, an MAN-B&W 8L70MEGI, built in Korea by licensee Doosan Engine.

Medium Speeds, Too LNG fueling has also proved an attraction for many operators of vessels with medium speed diesels who have to operate in emissions control areas (ECAs). That trend sees Wärtsilä set to deliver the 100 th Wärtsilä 34DF dual-fuel marine engine from the factory in early 2016. It is part of an order for three new large escort tugs under construction for Norwegian operator Østensjø Rederi by Spanish shipbuilder Astilleros Gondan. The tugs will operate at Statoil’s Melkøya terminal near Hammerfest in Norway. “Within its power range, the Wärtsilä 34DF has become the workhorse of the marine industry, thanks to its superior reliability and lower operating costs. It is a highly efficient engine that is also making a notable contribution to environmental compliance,” says Lars Anderson, Vice President, Wärtsilä Marine Solutions. The Wärtsilä 34DF dual-fuel engine was upgraded in 2013 with a higher MCR (maximum continuous rating) and better efficiency than its earlier version, the first of which was delivered in 2010. The upgraded version has a power output range from 3,000 to 10,000 kW at 500 kW per cylinder.

Eliminate The Engine? Of course, if you can eliminate the engine and switch to battery power, that gets rid of emission issues entirely. One area where this could be possible is in certain short range ferry operations and we have already noted the E-ferry way project under way in Denmark at Søby Værft AS. Wärtsilä, too, is eyeing this niche. In January it launched a

Scandinavia Maritime concept for a series of zero or low emission shuttle ferries. The concept has been developed in line with new Norwegian environmental regulations for ferries, and Wärtsilä says this regulatory trend is also evident in other countries. The ferries are designed to run entirely on batteries or in a battery-engine hybrid configuration where the fuel options are LNG or biofuel. In plug-in operation, the fuel consumption is reduced by 100 percent compared to conventional installations, and all local emissions are completely eliminated. With the plug-in hybrid configuration, emissions are reduced by up to 50 percent. The concept features Wärtsilä’s new wireless inductive charging system, which offers major benefits for typical shuttle ferry operations involving 20,000 or more departures a year because of its time and energy savings. The system eliminates physical cable connections, thus reducing wear and tear and enabling charging to begin immediately when the vessel arrives at quay. Wärtsilä has now signed an agreement with Cavotec SA to jointly develop a combined induction charging and automatic mooring concept. It would incorporate Wärtsilä’s wireless induction power transfer into a vacuum-based automated mooring technology in which remote controlled vacuum pads recessed into, or mounted on the quayside, moor and release vessels in seconds.

Filter Promises To Cut Nox The Exilator, an environmental filter for smaller ships, able to reduce both sulfur, carbon monoxide, NOx and noise, has been successfully tested on a Danish Maritime Authority ship. The technology has been testing over a 12-month project phase followed by a three-month practical test of the concept on the Danish Maritime Authority’s ship Poul Løwenørn. The filter’s performance has been documented by the Danish Technological Institute, and the installation and mounting of the filter has been approved by LR. Financing for development and testing was secured through the Danish Growth Fund and investment & development company CapNova. Developed by Exilator ApS, the filter reduces soot particle emissions by 99.1%, Carbon monoxide by 98% and NOx by 11%, according to the test from the Danish Technological Institute. Additionally, the filter improves fuel consumption by around 1%. The filter works by catalytically incinerating the soot in the exhaust once the ship’s engines reach exhaust temperatures above 325 degrees C. Ash is accumulated in the filter, which means that the filters must be cleaned after about 5,000 operational hours, as part of the recycling process. The exhaust gas, after passing through the turbo charger, goes to a muffler that removes the deep resonance. Then comes the particle filter, which also serves as an oxidation catalyst, where the soot is captured and burned – and finally the gas is led through a reducing catalyst, which minimizes NOx and NO2, before being emitted into the atmosphere. Development is now underway in a collaboration with DTU, the Technological Institute and an engine manufacturer aimed at increasing the filter’s NOx reduction from 11% to 40% in phase 1, and to 80% in the subsequent phase 2. When this is achieved, the filter will enable compliance with IMO Tier III NOx limits.

Scrubbers Shipowners face no shortage of options if they decide to use exhaust gas scrubbers to cut sulfur emissions. Recent customers for Alfa Laval’s PureSOx exhaust gas cleaning systems include Buss Shipping, which is retrofitting hybrid PureSOx systems on two 1,025 TEU container feeder ships that operate exclusively in Emission Control Areas (ECAs). Since

they frequent the low-alkalinity waters between Rotterdam and St. Petersburg, as well as ports like Hamburg with zero-discharge requirements, a scrubber with closed-loop mode was a necessity. Each ship will receive a hybrid PureSOx system with multiple inlets, connecting the main engine and two auxiliary engines to one U-design scrubber. In contrast to earlier systems with multiple inlets, the inlets will now lead into a single scrubber jet section – an advance in construction that will make the scrubber even more compact. Though there’s no doubt that scrubbers work, they also involve a substantial investment. That led Finland’s family-owned Langh Ship to develop a scrubber of its own. The resulting product was successfully tested over an extended period on one of Langth’s own ships, the M/S Laura, and received final class approval from GL in August 2014. All of Langh’s five vessels have now been fitted with the scrubber and last year a hybrid version was installed on Bore Shipping’s M/V Bore Song. Scrubbers could become less expensive as the result of a pilot project developed by Norwegian University of Science and Technology (NTNU) researchers Carlos Dorao and Maria Fernandino. Called the Lynx Separator, the technology now being examined for possible use in marine exhaust gas scrubbers was originally developed for use in the natural gas industry and involves using a steel sponge along with centrifugal force to remove the fluid from a gas stream, offering a brand new solution for the gas industry. The Research Counci l of Nor way’s Innovation Program MAROFF (Maritime activities and offshore operations) has funded a pilot project to examine the possibility of applying the separator technology to cleaning ships’ exhaust emissions from ships.

Ballast Water Management Systems Another major focus of compliance concern for shipowners is, of course, ballast water management. Needless to say, most of the major players in the Scandinavian marine equipment sectors have horses in this race. It’s just to soon to pick any winners given the fact that no system has yet gained full U.S. Type Approval. As this was written, Norway’s Optimarin was claiming to be on the brink of the coveted approval and was pleased when the U.S. Coast Guard told manufacturers of ultraviolet (UV) based BWMS that it will not accept the Most Probable Number (MPN) testing method in its approval process. The MPN methodology evaluates organisms on the basis of “viable/unviable,” with most UV systems depositing “unviable” organisms back into the water – meaning they are still alive but cannot reproduce. The USCG said that the FDA/CMFDA test, which judges life forms as “living/dead,” must be the standard for approval. Optimarin says the decision is good news. “This is a clear indication to the industry that USCG wants absolute certainty with regard to standards – they do not want living organisms deposited in their territory,” comments Tore Andersen, Optimarin’s CEO. “MPN is acceptable for IMO, but that won’t be any consolation to shipowners with global fleets that want the flexibility of sailing in and out of U.S. waters.” He says that Optimarin is the only UV manufacturer that is currently within “touching distance” of USCG approval. Its technology successfully satisied the FDA/CFMDA criteria during testing last year. Further tests in other water salinities are scheduled for spring 2016, after which point approval is expected later this year. Andersen says the system’s power is the key to its efficacy. “Each of our system lamps has a 35 kW capacity, which is huge for a UV system. That power instantly kills invasive organisms and that’s exactly what USCG wants to see,” he says. ■ March 2016 MARINE LOG 25

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TANKERS

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TANK CLEANING:

Seeking Common Ground

round five years ago, INTERTANKO decided to take a closer look at tank cleaning, one of the key competitive differentiators in the chemical tanker industry. Their conclusion: cleaning technology and competency had pretty much reached a peak. “Tank cleaning is where companies try to establish a competitive edge,” says Ajay Gour, INTERTANKO’s chemicals and vetting expert and Regional Manager for the Indian Sub-Continent, Middle East and Africa. “This is where they can claim to be better than the competition. But the majority of ship operators are all experienced, and the technology and methodology are pretty much the same across the board. Cleaning chemicals have seen some significant advances, but where we found the biggest change was not in cleaning, but in tank testing.” Testing technology has improved immensely, Gour relates, but operators have not necessarily been the drivers behind improvements. “There are many different external inf luences, including scientific community, and testing today can measure levels of cleanliness far beyond the original requirements for the same cargoes.” Ever more sensitive testing methods beg the question: Should tanks be as clean as possible? Or just sufficiently clean? Lacking a working standard INTERTANKO studied cases emanating from Houston, a major chemical tanker hub. “We looked at over 250 different listings,” Ajay Gour recalls.

Exclusive to Marine Log

“We found that there were various cleaning standards and varying results for the same cargo with the same end-use. There was evidence that resources were being wasted in over-cleaning, including manpower, energy, time, chemicals, and the resulting emissions were excessive.” In response, INTERTANKO has proposed a simplified set of standards in order to bring the high-f lying cleanliness requirements back down to sea level. “Product manufacturers realize that they have been pushing unduly stringent standards, and they understand that this is a cost driver. In a number of cases, small deviations will not push the cargo off-spec,” Gour maintains. A working group of chemical tanker operators, owners, charterers, and manufacturers is in the early stages of reviewing existing standards, not for tank cleaning, but for tank cleanliness. “We are not telling anybody how to clean in order to achieve a certain standard,” Gour clarifies, “just advising on what standard they need to clean to.” “We are simply trying to refine cleanliness standards,” he says, “to make sure they are appropriate for today’s needs. High sensitivity testing is feeding anxiety in cargo owners and charterers, and our intention is to ensure quality while improving efficiency in the use of resources.” Regarding the timeline for change, Ajay Gour’s advice to owners and operators: Watch this space. “The process is set in motion, March 2016 MARINE LOG 29

TANKERS Chemistry 101 Knowing the properties of the products you’re discharging and loading, along with understanding how they interact with each other and with the surface of your tanks is obviously key. However, learning this from scratch can seem a daunting prospect, hence the ongoing success of Supercargo specialists. But in practice, the vast majority of Ta k i n g t h e co n f us i o n o u t o f ta n k commercially traded cargoes and their associcleaning Understanding the required cleanated tank cleaning processes can comfortably liness standard for your vessels’ next cargo is be managed in-house with access to a specific one thing, but consistently achieving it can be cargo-handling database, such as Miracle or a challenge. With decades of experience in the Milbros, and just a little basic knowledge on the field, here are some words of wisdom from serAjay Gour, INTERTANKO’s Regional Manager for the Indian Submajor product groups, as outlined below. vice leader Wilhelmsen Ships Service (WSS) on Continent, Middle East and Africa Water-soluble or water-miscible Water-Solhow not to go astray in the critical business of uble substances and water-miscible substances keeping tanks and cargoes up to spec. are easy to clean with water. In addition, the Regardless of whether it is the result of poor solubility of such substances might increase at preparation, lack of knowledge, time constraints “We are simply trying higher temperatures. While the use of a cleanor inadequate equipment, an unsatisfactory to refine cleanliness ing agent is not required, it can help reduce tank cleaning can become very costly, very cleaning times. quickly. Extra time in port, additional labor and standards” chemicals, added surveyor charges, and in the H i g h m e lt i n g p o i n t S u c h pr o du c t s worst cases demurrage claims, can turn what should be washed at a temperature of 15-20C should be a routine exercise into a laborious and dreaded task. above melting point. During washing there should be no ballast To make matters worse for owners and operators, the issues water or cold cargoes adjacent to the tank to be cleaned. Special affecting the tank cleaning process are amplified by the increasingly attention must also be given to liquid and vapor line systems to vigorous ad-hoc cleanliness standards currently being demanded avoid freezing/solidification at cold line segments. Beginning by charterers and cargo owners. Often over-zealous and in many the tank cleaning process as soon as possible after discharge is cases totally unnecessary, when it comes to the actual chemistry of strongly recommended. contamination, there is unfortunately no officially-defined, uniHigh viscosit y These products should be washed at higher versal set of cleanliness standards at present. temperatures. In general the viscosity is closely related to the temInstead, there are just two, very broad and de-facto criteria covperature and will decrease at higher temperatures. During washing ering the various tank cleaning requirements currently demanded there should be no ballast water or cold cargoes adjacent to the tank by charterers. to be cleaned. As with products with a high melting point, washing should begin as soon as possible after discharge. An inadequate pair The first is the Water White Standard, which means the tank is visually clean, dry and odor-free. A suitHigh vapor pressure/boiling point Products with a high able standard for CPP/vegetable oils, this standard does not involve vapor pressure (higher than some 50 mbar at 20 C) can actually a wall wash test. be removed from the tank by evaporation. As always, during venThe second, the High Purity Standard (HPE), is required for tilation, special care must be taken to prevent the risk of explosion sensitive cargoes to be loaded such as products applied in food (flammable products) and emissions (toxic vapors). processing (Food Grade) or in pharmaceutical production (USP), Polymerization The initial wash of products that tend to where any contamination is unacceptable. All active solvents and polymerize should be carried out with cold (ambient) water. Washmany hydrocarbons like hexane also require the HPE. In addition, ing with hot water results in polimeric residues being left in tanks many chemical companies require the HPE because the application and lines, meaning an incredibly difficult clean-up job. of the product during processing is very sensitive to contamination. Evaporation of volatile substances Cargoes consisting of Though there are guidelines on the procedures and typical level mixtures with different vapor pressures should neither be cleaned of cleanliness required by the High Purity Standard for each and by evaporation, nor prewashed hot. The evaporation of the light every product available, many companies have additional, off-spec substances from a mixture could result in non-volatile residues, requirements. Creating unwanted confusion for cleaning crews and which are very difficult to remove. posing considerable problems when it comes to demurrage claims, Isocynates Must never come into contact with water, not even these ad-hoc requirements are why bodies such as Intertanko are the residues, because the reaction product and insoluble urethane eager to establish a new, detailed set of cleaning standards. An (plus CO2) are very difficult to remove. Such products must be ongoing initiative aimed at creating an industry wide set of rules, washed with a suitable solvent that does not contain any water. its acceptance is by no means guaranteed. So, for now we’re stuck Reaction with oxygen Drying and semi-drying vegetable with the existing pair of standards and the numerous company-byand animal oils react with oxygen to form a varnish-like polycompany and cargo-by-cargo variations demanded by charterers. meric film. This is very difficult to remove from bulkheads. Since In spite of this, with detailed planning, preparation and access heat increases the speed of the reaction the initial washing of these to some basic information on the cargo’s properties and the condiproducts must be done with water at ambient temperature, and as tions inside and outside the tanks, tank cleaning should actually quickly as possible. become a matter of routine. Systematic, efficient and completed Re action with hard water Formed by the calcium and quickly to the required standard, whatever that may be. No rejecmagnesium present, seawater, for example, has a very high water tions, hold-ups, incidents or accidents. hardness. This poses no problem for most products, but fatty

and the first draft of new guidelines should be presented by the end of 2016,” he reports. “For this to happen, though, operators, shippers, and cargo buyers must all be on board. The drafting process will be used to quantify the overall benefits, but the end result should be that the goalposts are fixed for everybody.”

30 MARINE LOG March 2016

TANKERS acids and vegetable oils with a high free fatty acid content will form white sticky residues if they are cleaned with a water of a high water hardness. Smell Minor residues of a smell-producing cargo left in lines, valves and pumps (including pump cofferdams) can contaminate a sensitive cargo. To neutralise the smell of some chemicals (e.g. Acrylate, Nitrobenzene or Pygas) the use of a smell killer may be recommended. Understanding the conditions: Inside and out Along with product knowledge, an understanding of just how the conditions in and outside tanks can affect a cleaning job is vital for consistently successful cleaning: The neighboring areas Temperature is one of the major parameters in any tank cleaning procedure and it must be monitored and managed carefully. The temperature in the cargo tank can be significantly inf luenced by the surrounding conditions, including outside temperature, seawater temperature, ballast conditions, and the temperature of adjacent cargoes. Deviations from the desired operating temperature can affect the entire tank or just parts of the tank, typically around bulkheads, tank bottoms or tank walls. Two common results are freezing due to lower than allowed temperature, and polymerization/drying due to higher than allowed temperature. The Tank Surface Having managed the surrounding conditions, focus should turn to the surface of the tanks. Their composition and condition can have significant implications for the cleaning process. Stainless steel Corrosion can occur if there is surface contamination. Both pickling and passivation are chemical treatments applied to the surface of stainless steel to remove contaminants and

assist the formation of a continuous, passive chromium oxide film. Pickling and passivation are both acid treatments and neither will remove grease or oil. If the steel is dirty, it may be necessary to use a detergent or alkaline cleaning before pickling or passivation. Zinc silicate coating An anti-corrosive paint system made from zinc dust, with certain additives and a binder. The high levels of zinc dust produce a zinc-zinc metal contact resulting in cathodic protection, similar to that obtained from galvanizing. However, zinc coatings are inherently porous, presenting a variety of cleaning problems. It is believed that the cargo migrates into the pores and capillaries, similar to f luid adsorption processes. Zinc coatings have a good resistance against solvents, but are not resistant to strong acids and bases. Epoxy coatings Pure epoxy, phenolic epoxy and isocyanate epoxy form cross linkages resulting in relatively good resistance to a greater range of cargoes. Epoxy systems are usually resistant to some weak acids and strong alkalis and do not absorb oil-like substances. Epoxy coatings are, however, prone to absorbing some solvent-like cargoes. This absorption is caused by swelling and subsequent softening of the coating. After transporting aggressive cargoes, the coated tank has to be ventilated until the cargo has been desorbed (released) from the coating film, which results in hardening and decreased swelling. This can take up to several days, depending on the type of cargo, type of coating and film thickness. Water may not be used for cleaning until this ventilation process is finalized. Otherwise the water can lead to blistering and subsequent serious damage of the coating. The more solvency power a cargo has, the more cargo residues could still be present in the coating. This could lead to either contamination of the next or subsequent cargoes, or breakdown of the coating film. ■

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op-ed

Opting into Subchapter M could pay off at tax time

Subchapter M and the IRS The use of eLogs can improve asset utilization, workforce performance, By Dean Shoultz, Chief Technology Officer, MarineCFO and customer satisfaction

Background The inland waterways constitute a 25,000 miles of shallow-draft transportation system of which 12,000 miles are taxable Inland Waterways. This domestic waterborne transportation system is a prominent fixture in supporting key American industries such as: mining, agriculture, timber, petroleum and chemicals, cement, metal, and paper and allied products. Barging is a highly energy-efficient freighting solution that has historically been safe, congestion free, and creates a low impact land use and low pollution impact footprint. The movement of immense quantities of raw materials at low cost over long distances is the sustaining force of the waterways system. Stretching from Pennsylvania in the Northeast, to Texas in the Deep South, and Minnesota in the Heartland, this “waterways highway” is a vital “import and export” network between states and an artery to foreign markets. The economic impact in terms of product value transported between states on the inland waterways exceeds $100 billion annually. The 70,000 person inland waterways workforce underpins various industries of more than 800,000 workers. States along the inland waterways contribute 54 percent of the national population, 49 percent of GDP, 50 percent of Federal tax revenue, 56 percent of heavy manufacturing jobs, and 61 percent of agricultural jobs. Countless millions of payroll taxes are generated for Federal and 32 MARINE LOG March 2016

State governments as a result of the inland waterways industry. The Inland Waterways Trust Fund has accrued in excess of $1.6 billion from fuel tax revenue since 1986 and is a catalyst for major construction and rehabilitation projects on the inland waterways. Subchapter M is the result of the Coast Guard and Maritime Transportation Act of 2004 (CGMTA 2004) in which Congress authorized the Secretary of Homeland Security to create regulations for towing vessel safety management systems and hours of service for towing vessel personnel. The Towing Safety Advisory Committee (TSAC), a Federal Advisory committee to the United States Coast Guard comprised of a broad spectrum of interested parties in the inland waterways industry, established a working group to assist USCG in framing the rules required under CGTMA 2004. Over the course of six years TSAC conducted numerous public meetings that culminated in four TSAC reports submitted to USCG for review and revision. USCG published the Sub Chapter M Notice of Proposed Rulemaking (NPRM) in August 2011 and held four public hearings nationwide for public comment. Publication of the Subchapter M Final Rule is anticipated in 2016.

Objective Evidence Objective evidence is best defined as documented statements of fact, other information or records, both quantitative and qualitative, related to the quality of an item or activity, based on observations, measurements, or verifiable tests. The 2011 NPRM publication set forth the U.S. Coast Guard’s intent to adopt “objective evidence” as a safety requirement through “…detailed processes, procedures, recordkeeping and auditing…” documented in “logbooks, non-conformity reports, and/or other reports of audits.” The Internal Revenue Service applies accounting’s “Objective Evidence” standard when conducting audits of towing operators for compliance with the Inland Waterways Excise Tax as reported

Shutterstock/Al Mueller

ountless Federal laws govern nearly every aspect of the inland waterways transportation industry, yet the convergence of the United States Coast Guard (USCG) Subchapter M impending Final Rule with Internal Revenue Services (IRS) Inland Waterways Excise Tax audit practices might have a more profound, far reaching impact then industry observers have as yet considered. Fortunately, it appears that taxpaying tow & barge operators may come out on top if they take full advantage of this unlikely Federal rulemaking interplay.

Op-ed on IRS Form 720. A typical IRS Information Document Request (IDR) to an inland towing operator will include the vessel log, fuel purchases, maintenance records, machinery tech manuals, and fuel operating reports.

Workboat eLogs Federal law details what entries must be made by watch officers in the vessel’s official logbook. TSAC, in a 2008 report to USCG, reinforced existing recordkeeping requirements for inland towing operators and expanded upon the increased recordkeeping burden Subchapter M rules will likely have from a watch officer perspective. Although Federal law does not require log entries related to geographic position, waterway conditions, or commercial activities, it does require the logging of pre-departure testing of steering & propulsion, safety items & drills, crew, and marine casualties. Log entries must be timely and are presumed accurate thus binding the vessel owner to those entries. Negating the binding effect in litigation is held to a rigorous test. The maintenance of a proper and accurate log cannot be over-emphasized as the consequences for poor onboard recordkeeping can be legally and financially catastrophic to a marine operator. Appreciating the increased onboard recordkeeping burden Subchapter M posed, the U.S. Coast Guard provided for the automation of the onboard recordkeeping processes through definition of a towing vessel record, or workboat eLog, in Part A Section 136.110 of the NPRM. This definition allows any onboard recordkeeping or documentation of events required by Subchapter M to be “a book, notebook, or electronic record”. Thus, according to the NPRM, inland towing operators have the advantage of adopting workboat eLogs as a primary recordkeeping tool.

Workboat eLogs and Marine Enterprise Solutions While the presence of an onboard workboat eLog offers considerable advantage to watch officers and onboard auditors, it is only through the integration of the eLog with a shoreside marine enterprise solution that its benefits can be fully realized. The ability to “push” onboard data shoreside for interrogation by various marine enterprise solution modules offers an unlimited variety of analytical models for decision makers to consider. The two distinct audit report functions of safety (USCG) and accounting (IRS) are easily achievable within the framework of a mature, interfaced onboard/shoreside recordkeeping solution. Of course, affordability, scalability, ease of user interface, system stability, and system configurability play an irreversible role in the success of a mature marine enterprise solution. It should also be noted that the presence of Key Performance Indicator data pushed by eLogs to the marine enterprise solution and applied to an industry best practices regime can only improve asset utilization, workforce performance, and customer satisfaction.

Conclusion The unintended opportunities facing inland waterway operators by opting into the Subchapter M onboard electronic recordkeeping options in lieu of manual recordkeeping are hard to contest. These options are greatly enhanced if the marine operator also elects to interface office accounting, safety, and personnel functions with the vessel as part of a shoreside marine enterprise solution. Adopting a software architecture and infrastructure where the operator can satisfy the reporting requirements of a multitude of federal agencies through a single electronic reporting system that also provides critical commercial data offers immeasurable value. ■

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March 2016 MARINE LOG 33

CEO SPOTLIGHT

Morton S. Bouchard III at the recent christening of the company’s newest ATB

Morton S. Bouchard Iii President & CEO, Bouchard Transportation Co., Inc.

arine Log: Can you tell us about the founding of the company and how it has evolved over the years?

Morton S. Bouchard III: Bouchard Transportation Co., Inc. was founded and incorporated in 1918 by my Great Grandfather, Captain Fred Bouchard. Capt. Fred Bouchard became a tugboat Captain at the age of 14. In 1916, while on watch, the Black Tom explosion occurred on Staten Island, and Capt. Fred maneuvered his tug and pulled ammunition scows out to safety. He was blown out of the wheel house on two occasions, but continued to pull the scows to safety. For his heroic actions, he was awarded salvage money from the state and federal government. With those funds he bought a coal scow, lived and worked the scow, and created his own company, Bouchard Transportation Company, which was incorporated in 1918. In 1931, Capt. Fred acquired Bouchard’s first oil barge, a sunken 15,000-barrel vessel in Jacksonville, FL, which he purchased for $100. After raising this vessel, he towed it to a Norfolk, VA shipyard where it was converted to a hot oil system, oil barge. From there it was towed up to NY Harbor, signifying Bouchard’s first of many vessel purchases and construction projects. The company was passed on to my grandfather, Morton S. Bouchard Sr. (“Buster”), who continued to grow the company, then was passed on to my father, Morton S. Bouchard Jr., and then on to me. Our philosophy has not changed for four generations: Work hard, do not take anything for granted, take care of your customers, 34 MARINE LOG March 2016

and invest the profits into new more modern equipment, and maintain our existing equipment to the highest standards possible. Sometimes I sit back and wonder what all three of them (Capt. Fred Bouchard, Morton S. Bouchard Sr., and Morton S. Bouchard Jr.) would think, as the company has grown beyond their imaginations, and will hopefully continue to grow as the 5 th generation, Brendan J. Bouchard, becomes more involved. ML: When did you first begin working at the company? MB: I began working at Bouchard when I was 19 and a sophomore in college. I worked in the shipyards and our outside office. The following summer I worked on the vessels, and the summer after that I was a night dispatcher, filling in for the night staff vacations. When I graduated college, I was a dispatcher, but was also attached to my father’s hip. I was with him for every meeting, and important phone call. I became President at the age of 32. ML: How did Bouchard address the challenge of the Oil Pollution Act of 1990? MB: OPA 90 changed our industry in every aspect. When OPA 90 was passed, my father and I had a meeting, and he had the entire bill with him. He asked me if I had read it, and I told him no— not the entire bill, but the most important segments. He was very upset, and felt that Bouchard should sell. After a lengthy discussion,

CEO SPOTLIGHT which was mostly listening on my part, I finally got my father to realize that 1990 was the year that we would need to decide what our next business plan would be for the company. From this conversation, I finally convinced my father that we should build double hulls, and be the first company to invest in double hulls, which we did. Bouchard was the first to build double hulls (1992 & 1993), and continues to be the leader in double hulls. All of Bouchard barges are flat deck double hulls; we do not believe in trunk deck barges, and feel that the trunks should not be allowed to carry petroleum because they are not double hull. OPA 90 also increased the awareness of safety for trained crew members, as well as shoreside personnel. I continuously tell all of our employees that we cannot be profitable unless we are safe, and we must give every employee the resources needed to be safe. ML: One of your latest deliveries was the 10,000 hp/250,000 bbl Articulated Tug Barge Donna J. Bouchard and the B. No. 272. Those vessels are some of the last under a major investment in renewing and expanding your fleet. Tell me about your fleet expansion? MB: Bouchard and Halter have enjoyed a relationship for over 40 years. The management of Halter has changed over those years, however, Bouchard and Halter continue our relationship. The latest expansion program involved two units, M/V Kim M. Bouchard & B. No. 270, and the M/V Donna J. Bouchard & B. No. 272. We felt that there was a market need for vessels of this size, and that ATBs are more economical than ships, and just as safe. We started studying various capacities. We were originally targeting 350,000 bbl and 15,000 hp tugs; however, after many meetings and discussions with our customers, and possible future customers, we decided to scale the size down to 250,000 bbl and 10,000 hp, which proved to be a smart decision. These two new units bring Bouchard’s fleet to three units this size, all flat deck double hulls: M/V Danielle M. Bouchard & B. No. 245, M/V Kim M. Bouchard & B. No. 270, and M/V Donna J. Bouchard & B. No. 272. Bouchard also contracted to build two 6,000 hp Intercon Tugs with VT Halter Marine; M/V Morton S. Bouchard Jr. & M/V Frederick E. Bouchard, and contracted with Bollinger Shipyards to convert the B. No. 210 & B. No. 220 to Intercon barges with segregated ballast. The B. No. 210 & B. No. 220 were two of the first double hull barges Bouchard built, and were wire barges. Upon the completion of their conversion, Bouchard’s entire fleet above 60,000 bbl will be flat deck, double hull, Intercon ATBs that range in capacity from 55,000 bbl (B. No. 250 only 1), then 80,000 bbl to 250,000 bbl. No other company has such a modern and safe fleet. ML: How does Bouchard address quality, safety and the environment in its corporate culture and corporate policy? MB: Quality, safety, environment, and crew safety are Bouchard’s highest priority. Every employee at Bouchard knows that safety is our highest priority. As I mentioned earlier, Bouchard cannot be profitable unless we are safe. This philosophy is practiced every day, 24 hours, 365 days a year – no exceptions. Every captain in Bouchard’s fleet knows that they have the authority to put the operation on hold if they feel the safety of the crew and vessel is being jeopardized. For example: • If they feel the crew is fatigued, they have authority to halt operation, or anchor until the crew gets rest. • If the captain feels that an employee is not properly trained to do his or her job, he or she has authority to place the operation on hold until a properly trained crewmember arrives.

The Bouchard family inside the simulator ar SUNY Maritime

• If a captain feels the weather, or any other condition is not safe, he

or she can halt operation. If • an employee gives the captain any issues regarding his decision to pause an operation, the captain has full authority to shut down, and wait for their direct vessel supervisor to speak with them. When it comes to the safety of the crew and fleet, Bouchard employees know all decisions will have my full support. Safety is the most important policy at Bouchard. ML: Can you tell us about Bouchard’s work with SUNY Maritime? MB: Education is of vital importance at Bouchard. It is very simple: The more educated our employees are, the safer we as a company will be. A major aspect of education is simulator training. New York Harbor was always the home of a simulator, and it was relocated to Houston. When I became aware of this, I was upset with myself for not being aware of it. After speaking with various other companies, I decided that a simulator was needed for oceangoing tug & barges. I wanted a simulator that could be used by Bouchard employees, but also by the cadets to learn tug & barge operations while enrolled at school. After several meetings with my dear friends at SUNY Maritime, Bouchard made the proud decision to build the Morton S. Bouchard Jr. Tug & Barge Simulator, which can be used for cadets, Bouchard employees, as well as other companies. Bouchard’s commitment to this simulator is not one and done; it entails yearly upgrades to the software, and the simulator itself. We just recently upgraded the software to include tractor tugs, and ship docking, all funded by Bouchard. This type of commitment just enforces our corporate philosophy that there is no budget for safety and proper training, and safety is our number 1 and top priority. ML: What would you like the legacy of the Bouchard brand to be? MB: Bouchard’s legacy should be recognized for the following: • Bouchard is always an excellent partner to the communities we operate in. Bouchard always does what is required to be a good corporate • partner to all customers, vendors, and communities. • Bouchard always maintains our vessels to the highest industry standards, and reinvests profits in new more modern equipment. Bouchard takes care of all employees, and their families. • • Simply, Bouchard will always try to make the right decision for the benefit of our employees, customers and the community. ■ March 2016 MARINE LOG 35

newsmakers

Tor E. Svensen announces his retirement from DNV GL DNV GL has announced that its Group Executive Vice President, Tor E. Svensen, will retire from his position ef fective August 1st. He has been with the classification society for more than 20 years. After his retirement, Svensen will continue to work in the industry, and will take on the role of professor at the University of Strathclyde in Glasgow, Scotland. Ocean shipping e-marketplace, INTTRA, has promoted Inna Kuznetsova to President and Chief Operating Officer. She joined the company in 2015 as President of its core business, INTTRA Marketplace, which currently handles approximately one in every four ocean container shipping transactions. Elliott Bay Design Group, Seattle, WA, has announced the appointment of Will Ayers as Chief Electrical Engineer. Ayers brings with him a decade’s worth of experience in marine electrical engineering.

Lloyd’s Register has announced several changes to its leadership line up—including the appointment of Tom Boardley as Executive Vice President and Global Head of Corporate & External Affairs, and the promotion of Nick Brown (pictured) to Marine Director. Boardley will work with the society’s external stake-holders across its marine, energy and management systems businesses. Meanwhile, Brown will be responsible for managing LR’s marine business, as well as its energy compliance business. Former Chief Financial Officer of EcoChlor, developer of ballast water treatment systems, Peter Bollier has passed away. The firm Verrill Dana said, “his vision, management and leadership skills were a main driver in the growing use of ballast water treatment technology, which will result in Peter’s legacy including enhanced protection for Earth’s oceans from the scourge of invasive marine species.”

APRIL 12-14, 2016 MORIAL CONVENTION CENTER, HALL B NEW ORLEANS, LA

Ross Glendinning has been named Senior Vice President, Service Division for Alfa Laval Inc. His responsibilities include leading parts sales, reconditioning services, field service and technical support activities. Borets, Houston, TX, has named David Langley as North American HSE manager. Langley will be responsible for developing and implementing safety programs and policies that align with the company’s corporate standards for health, safety and environmental compliance. Foss Maritime’s Vice President, General Counsel and Chief Ethics Officer, Lam Nguyen-Bull, has been named 2016 Diversity Champion by the Puget Sound Business Journal’s 2016 Corporate Counsel Awards committee. The award recognizes Nguyen-Bull for her efforts in supporting diversity in the community, in the legal profession, and in the maritime industry.

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techNews

Becker Marine’s LNG PowerPac will get funding Germany’s Federal Ministry of Transport and Digital Infrastructure will provide funding support for an alternative shoreside power solution for containerships. The units will be used for the first time during layovers at the Port of Hamburg. Developed by Becker Marine Systems, the LNG PowerPac combines a gas-powered generator with an

output of 1.5 MW and an LNG tank in a relatively compact sized unit. The unit is the size of two 40-foot containers. The LNG PowerPac is fitted with a 20-foot LNG ISO tank. The tank can provide 8.2 tons of LNG, and up to 30 hours of energy on board. The LNG PowerPac was chosen to receive funding because: (1) The unit offers

“cable-free” power supply to ships and integrates an isolated solution for the supply of energy; (2) Offers a quick and flexible connection via standardized loading equipment; (3) Can be easily integrated into the existing container loading structure; (4) The output generated by the unit matches the voltage of the ship’s electrical system, and can be controlled by onboard electronics; (5) The units don’t require any adjustments to harbor infrastructure. Ships requiring additional power can be supplied with two tank containers. For ships spending long hours at port, two tank containers can be arranged on top of each other –ensuring a continuous supply of power from the LNG PowerPacs for up to 60 hours. Meanwhile for ships requiring a greater demand of power, two LNG PowerPacs can be operated at the same time. “With LNG PowerPacs we are creating a modern, environmentally friendly, safe and economical option for supply power based on LNG to containerships during layovers at port,” says Henning Kuhlmann, Managing Director, Becker Marine System. Through the funding initiative, the hope is that the advantages of LNG are thoroughly demonstrated, explains Enak Ferleman, Parliamentary Secretary at the Ministry of Transport and Digital Infrastructure. www.becker-marine-systems.com

Flexible Hone plays role in raising the Costa Concordia The Flex-Hone Tool, characterized by the small, abrasive globules that are permanently mounted to flexible filaments, has long been used for everything from automated metal finishing to maintenance and repair operations. Now the Flex-Hone can add one more claim to its resume: playing a small, but important, role in one of the largest engineering feats in marine history—the raising of the shipwrecked Costa Concordia. The endeavor involved a series of complex steps. Hollow, watertight tanks, called sponsons, had to be attached to the exposed port side of the ship. When sponsons are flooded with seawater, they exert a downward pull on that side of the ship. With the assistance of winches attached to an underwater platform, a process called parbuckling, the ship was pulled into an upright position on top of the platform. Once the ship was vertical, water-filled sponsons were attached to the starboard side as well. Then, both sponsons were emptied of water to create the required buoyancy to raise the ship enough so it could be towed to port. 38 MARINE LOG March 2016

The challenge was to find a way to attach 15 massive steel sponsons to each side of the ship. The 30 sponsons weighed 11,500 tons, combined. The plan was to weld the steel sponsons to the hull of the ship, but also to join them together to form “one single, robust, stable body,” similar to one integral floating chamber. To remove the excess material from the welds as they were created—both on the interior and exterior of the tubing—a tool was required that could work on an industrial hand-held drill. The Flex-Hone from Los Angeles-based Brush Research Manufacturing was selected. The Flex-Hone is available in many sizes, 11 abrasive types and eight grits. It works well when hand-held because the design is automatically self-centering. Using the tool, parts such as carbide bushings, bore sleeves, hydraulic and pneumatic cylinders, and other cylindrical cavities can be surface finished on the production line or resurfaced in the field using a relatively inexpensive tool that requires little set-up time.

The Flex-Hone tool helped remove excess material from the welds as they were created

Other tools, like abrasive nylon brushes, would not guarantee enough stock removal. The Flex-Hone served another important function by smoothing the way for the hydraulic pistons that were introduced into the tubes. Although the Costa Concordia project is now complete, the Flex-Hone remains a go-to tool for overhaul and repair for marine applications. The tool is used for cylinder refinishing of big bore (up to 40-inch diameter) diesel main engines of large vessels as well as smaller diesel generators. The tool can also be used for cleaning pipe bores for pipes or other cylindrical bores such as valves on some pump designs. www.brushresearch.com

techNews

Cathelco seeks type approval from USCG for its ballast water treatment sytem

Ballast water treatment system manufacturer, Cathelco, has announced that it submitted a Letter of Intent to the U.S. Coast Guard (USCG) verifying its readiness to begin testing its ballast water treatment (BWT) system for USCG Type Approval. Cathelco’s BWT system uses a combination of filtration and UV technology to protect against invasive species. “Our system has already received IMO Type Approval and AMS Certification from the U.S. Coast Guard. We are pushing ahead with sales, but [we] recognize that it is essential to attain USCG Type Approval as soon as possible,” said Robert Field, Cathelco’s Technical Director. Type Approval from the USCG would

provide potential customers with greater confidence in the system, according to Cathelco’s Peter Smith. Cathelco says the Type Approval tests will be carried out using the FDA/CMFDA methodology where life forms are judged as living/dead—the standard that the U.S. requires. Tests will also meet the revised standards of the IMO G8 Guidelines. Land-based testing will be conducted at Marine Eco Analytics’s testing facility in Holland. The facility is currently in the process of obtaining USCG approval. The test will use marine, fresh, and brackish water. Testing will then be conducted on board the containership AS Patria. The Cathelco BWT system automatically adjusts to different sea water qualities and uses a UVT sensor to measure UV light transmittance—this enables the system to calculate the UV dose and ensure that power is used economically. The Cathelco BWT system was most recently installed on Harvey Gulf International Marine’s Harvey Stone. www.cathelco.com

Schottel extends reach, opens up new office Marine propulsion manufacturer Schottel has opened up a new sales office in Quebec City, Quebec, Canada. The office will be led by Regional Sales Manager, Sylvain Robitaille, who has over 15 years of industry experience. The new office is part of Schottel’s plan to extend its global distribution network and help meet customer needs. Schottel Canada, Inc. will serve the sales needs of current and future Schottel Customers in Canada, the New England and the Great Lakes area—and will provide service and parts support to the region. Meanwhile, for the time being, the Schottel office in Houma, LA, will supply the service personnel. The announcement comes on the heels of Schottel opening up a service center in Wismar, Germany. The new operation extends Schottel’s repair capabilities in Germany, and provides an on-site warehouse, and a state-of-theart mechanical workshop.

www.schottel.de

Hire the Best Maritime Talent visit http://bit.ly/marinejobs

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 March 2016 MARINE LOG 39

contracts Shipyard Contracts Marine Log welcomes your input. If you would like to report any new contracts, deliveries or changes to our listings, please e-mail: marinelog@sbpub.com. Some contract values and contract completion dates are estimated. Information is based on best available data on or about February 1, 2016. A more complete listing of Shipbuilding Contracts, Vessel Deliveries, and a Shipyard Directory are available on Marine Log’s Shipbuilding Intelligence website, www.shipbuilding.marinelog.com Shipyard

Location

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

RECENT CONTRACTS All American Marine

Bellingham, WA

Research vessel

68 ft x 26 ft catamaran

U.S. Army Corps of Engineers

2017

Armstrong Marine

Port Angeles, WA

Whale Watch Boat

94 PAX

Prince of Whales

2016-2Q

Bay Shipbuilding

Sturgeon Bay, WI

ATB

185,000 bbl/8,000 hp

undisclosed

2017-4Q

Eastern Shipbuilding

Panama City, FL

Escort Tug

80 ft x 38 ft

Bay-Houston Towing

2016-1Q

Philly Shipyard

Philadelphia, PA

Product Tanker

50,000 dwt, 330,000 bbl

Crowley Maritime

2016-1Q

VT Halter Marine

Pascagoula, MS

ATB

250,000 bbl/10,000 hp

Bouchard Transport

2016-1Q

DELIVERIES

PENDING CONTRACTS

NOTES

BAE Systems Southeast

Mobile, AL

BAE Systems Southeast Bay Shipbuilding

Dump Scows

7,700 cu. ft

Great Lakes Dredge

Options

Jacksonville, FL

Tug

141 ft x 46 ft, 12,000 bhp

Seabulk Tankers Inc.

Option

Sturgeon Bay, WI

ATB

8,000 hp/ /155,000 bbl

Plains All American Pipeline

Option

Bay Shipbuilding

Sturgeon Bay, WI

ATB

185,000 bbl/8,000 hp

undisclosed

Opt. 2018

Kvichak Marine

Seattle, WA

Skimmers

30 ft 3 in x 9 ft 8 in

U.S. Navy

Opt. to 2019 2018-2020

TBD

Double-end ferry

70-car similar to Pocohontas

VDOT

TBD

Car ferries

1,200 PAX (convert to LNG)

Washington State Ferries

RFP Issued

TBD

Double-end ferries

4,500 PAX

NYCDOT

$309

EDBG Design

TBD

Pass/Vehicle ferries

1,000 PAX/100 vehicles

DRBA

$101

2018- 2021

$25

Index of Advertisers Company Page #

Company Page #

ABS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

JMS Naval Architects . . . . . . . . . . . . . . . . . . . 8

Bahri General Cargo. . . . . . . . . . . . . . . . . . . 10

KVH Industries, Inc. . . . . . . . . . . . . . . . . . . . 18

BOK Financial. . . . . . . . . . . . . . . . . . . . . . . . . 5

Marine Art of J. Clary. . . . . . . . . . . . . . . . . . . . 4

ClassNK. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Metal Shark Boats . . . . . . . . . . . . . . . . . . . . . 9

Clean Pacific. . . . . . . . . . . . . . . . . . . . . . . . . 28

Pyrotek Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Detyens Shipyards, Inc.. . . . . . . . . . . . . . . . . 2

St. Johns Ship Building . . . . . . . . . . . . . . . . C2

DNV-GL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Viega. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

ExxonMobil Global Fuels & Lubes. . . . . . . . . 3

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

Great American Insurance Group . . . . . . . . 33

Workboat Maintenance & Repair. . . . . . . . . . 36

Hyde Marine. . . . . . . . . . . . . . . . . . . . . . . . . 12 40 MARINE LOG March 2016

SHIP REGISTRIES advertisement

Vanuatu Maritime Services: the flag of choice Vanuatu Maritime Services Ltd (“VMSL”) is a privately held company operating under contract to the Vanuatu government. VMSL handles ship registration, mortgage recordation, crew documentation and regulatory compliance. Currently its Central Registry Office has about 700 vessels and over 3 Mgt operating worldwide. Its corporate office is in Port Vila with offices in New York, Tokyo, Pusan, Istanbul, Bangkok, Singapore, Hong Kong, Shanghai and London. The Vanuatu international ship registry is open to owners of any nationality. Vessels flying the Vanuatu flag receive friendly treatment in ports throughout the world. VMSL is concerned with maintaining high standards of safety for its fleet and to this end Vanuatu has adopted all appropriate IMO conventions. VMSL’s goal is to provide quality service at low cost. It uses the services and expertise of the IACS classification societies and respected surveyors. www.vanuatumaritimeships.com

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March 2016 MARINE LOG 41

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MARKETPLACE SALES Contact: Jeanine Acquart Ph: 212/620-7211 Fax: 212/633-1165 Email: jacquart@sbpub.com

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marketplace ENGINEERS & ARCHITECTS

employment

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Assistant Engineer

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HARLEY MARINE SERVICES Open Positions: Brooklyn/East Coast Harbors, NY Sales and Marketing Manager – East Coast Seattle, WA Director/Manager of Quality Director,Vessel Maintenance & Repair Director, Vessel Construction Port Engineer Port Captain Sales Manager/Ship Assist Alameda/San Francisco Harbor, CA Sales Manager/Ship Assist General Manager L.A./Long Beach Harbor, CA Sales Manager/Ship Assist For a list of all open crew positions or to apply online, please visit our Careers page at www.harleymarine.com

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SUNY Maritime College invites applications for positions at sea for Summer Sea Term 2016. For a detailed description and to apply online visit us at

www.sunymaritime.edu/hr and select “vacancies”. AA/EOE

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invites applications for the following positions for the Summer Sea Term

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Email: email@vanuatuships.com www.vanuatumaritimeships.com

SUNY Maritime College the following positions f

Summer Se

March 2016 MARINE LOG 43

Professional

Unlicens

https://www.interv

Marine salvage

American Salvage Association expands its vision for 2016 The year 2016 is shaping up to be a historic one. There are many uncertainties about what will unfold around the world this year in politics, the economy and in the shipping industry. The price of oil has dropped to remarkably low levels, political unrest is growing in many areas, and many segments of the shipping industry are struggling. In these times, I am thankful for the resilience of the salvage business which remains strong despite many other weak economic factors. A simple explanation is that the salvage industry is extremely vital to protecting the safety of life, preserving the marine environment, and saving valuable ships and cargo, and we are continually called upon to deliver our professional services in good economic times or bad. The renewed mission of the American Salvage Association (ASA) is to expand its influence throughout North, Central and South America and the Caribbean Sea and the ASA leadership team is aggressively supporting this expansion. It is our intent to promote a vision for effective salvage response operations throughout these regions by leveraging the extensive knowledge and experience of our members. This will include promoting the best lessons learned from the U.S. response model along with lessons gleaned from the international experience of our members. Through

MarineLoG

ISSN 08970491

USPS 576-910

A Simmons-Boardman Publication Corporate Offices 55 Broad Street, 26th Floor New York, NY 10004 T: (212) 620-7200 | F: (212) 633-1165 www.marinelog.com

systematic outreach to industry and governments alike throughout the western hemisphere, as well as through the growth of our membership, we intend to champion the improvement of salvage and wreck removal standards throughout the region. In partnership with the OAS InterAmerican Committee on Ports (CIP), the ASA will be conducting a Workshop on Marine Salvage, Firefighting, Environmental

A resilient business: The salvage industry is extremely vital to protecting the safety of life, preserving the marine environment, and saving valuable ships and cargo Response and Casualty Management to be held in Miami, Florida on June 13th-15th. This inaugural ASA-CIP event is expected to become the first of many such outreach activities. The target audience includes the senior decision makers on issues of salvage and wreck removal from the Port Authorities

of the 35 member countries. At this event, we will also be promoting the participation of existing ASA members as well as potential new members from the expanded Americas region. Please look for more details to follow as the planning unfolds. If you are interested in joining the ASA to take advantage of this unique opportunity, please do not hesitate to contact the ASA staff. Perhaps the best part about ASAâ&#x20AC;&#x2122;s expanding vision is that it provides the opportunity to promote the environmental stewardship of our beautiful planet in places around the world where improvement is needed. The proper handling of marine casualties including prompt environmental response, professional salvage operations and efficient removal of wrecks can undoubtedly prevent serious harm to the environment. In my view, the ASA can have a profound impact in this regard in our day-to-day business as well as through training and outreach activities such as the planned ASA-CIP Workshop in June. For our members, protecting the marine environment is not only a priority, but an obligation. Undoubtedly, 2016 will be a great year for the ASA and for the strength and vitality of the salvage industry. I am certain that anywhere, anytime, an ASA member will be there in your time of need. www.americansalvage.org

Advertising Sales AMERICAS U.S. Gulf Coast & Mexico Jeff Sutley National Sales Director T: (212) 620-7233 | F: (212) 633-1165 Email: jsutley@sbpub.com

EUROPE Neil Levett Managing Director Alad Ltd. T: +44 (0)1732 459683 Email: neil@aladltd.co.uk

U.S. East, Midwest and West Coasts Heather Bonato Regional Sales Manager T: (212) 620-7225 | F: (212) 633-1165 Email: hbonato@sbpub.com

SCANDINAVIA Brenda Homewood Alad Ltd. T: +44 (0)1732 459683 Email: Brenda@aladltd.co.uk

California & Canada Amy Lennox Sales Associate T: (212) 620-7221 | F: (212) 633-1165 Email: alennox@sbpub.com

44 MARINE LOG March 2016

Todd Schauer, ASA President

UNITED KINGDOM Chris Day Alad Ltd. T: +44 (0)1732 459683 Email: chris@aladltd.co.uk

FRANCE Paul Thornhill Alad Ltd. T: +44 (0)1732 459683 Email: Paul@aladltd.co.uk KOREA & CHINA Young-Seoh Chinn JES Media International T: +822-481-3411 | F: +822-481-3414 Email: corres1@jesmedia.com CLASSIFIED SALES Jeanine Acquart Classified Advertising Sales T: (212) 620-7211 | F: (212) 633-1165 Email: jacquart@sbpub.com

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