arine oG M L www.marinelog.com
R e p o r t i n g o n M a r i n e B u s i n e s s & T e c h n o l o g y s i n c e 18 78
Ahead of the
Curve Vane Brothers company expands fleet of ATBs
OSV OPERATORS: Bruised & Battered
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• Bulbous Bows • Fairing Plates • Bilge Knuckles • Bulk Tanks • Crane Base/Pedestals
2E ditorial Offshore Oil & Gas: A Tarnished Silver Lining
Tugs & Barges Ahead of the Game 120 years strong, The Vane Brothers Company continues to expand its offerings and invest in its fleet
Conference Preview Tugs & Barges 2018 Conference & Expo A look at this year’s conference agenda and exhibitors
Ship Repair Special Delivery Vigor adds a $20 million drydock from South Korea to its shipyard lineup, enabling it to service vessels in the USCG and Navy fleet, Washington State Ferries and its customers in the commercial fishing market
OSVs Tough Times While the OSV sector will remain challenging, there are a few glimmers of hope—the key to survival will be to diversify and bank on renewables
19 Inside Washington
Offshore Wind Favorable Breeze Offshore wind, long an elusive dream for the U.S., is finally picking up speed as East Coast states look to a future powered by wind
4 Industry Insights 6 Marine Innovations 8 Inland Waterways Disappearing Waterways? Perhaps if we reap what they sow Cover: Steve Magdeburger; Contents: Left: Shutterstock/Igorstevanovic; Right: Statoil/Øyvind.Gravås
10 Wellness Column The Growing Antibiotic Resistance 12 Update wiftships Lands Navy Contract S Jeffboat to Close its Doors • New Training Ships on the Horizon for U.S. Maritime Academies • BOEM’s GOM Lease Sale: “Modestly Active” •
Funds for Icebreaker, NSMMV in Navy Shipbuilding Program
39 Newsmakers Trump Nominates Vice Admiral Schultz for USCG Commandant Post 40 Tech News Smart Move: Wärtsilä to Acquire Transas
44 Safety First Inflatable PFDs: Comfort and Safety
April 2018 // Marine Log 1
MarineLoG April 2018 Vol. 123, NO. 4 ISSN 08970491 USPS 576-910 Subscriptions: 800-895-4389
Tel: +1 (402) 346-4740 (Canada & International) Fax: +1 (402) 346-3670 Email: email@example.com PRESIDENT Arthur J. McGinnis, Jr. firstname.lastname@example.org PUBLISHER & EDITOR-IN-CHIEF John R. Snyder email@example.com
Offshore Oil & Gas: A Tarnished Silver Lining
Vane Brothers / Steve Magdeburger
ith more than one-third of the offshore support vessel fleet stacked and the “offshore oil and gas market suffering from the worst downturn in history,” there’s a shortage of good news for attendees to discuss at this year’s Offshore Technology Conference (OTC) at the end of April. But, if you look a bit closer, there is a tarnished silver lining. While we are not out of the woods yet, positive signs are emerging. Prices for WTI crude hit $64.94 per barrel at the end of March, up 25% over the year earlier. Additionally, older OSVs are being scrapped, and E&P activity in the North Sea is up. Who knows, by next year’s OTC, we might be in the midst of a full recovery. In the meantime, offshore wind energy is supplying some OSV owners such as SEACOR with opportunities. This year marks the 15th anniversary of Marine Log’s Tugs & Barges Conference & Expo series. The event promises to generate some lively discussion on hybrid propulsion, the Jones Act, small scale Liquefied Natural Gas (LNG) bunkering, and Articulated Tug Barge (ATB) design. You can check out the full roster of expert presenters for Tugs & Barges 2018 in this issue. And speaking of the tug industry, it lost one of its legends this past February. Frank
Basile, 93, the founder of Entech Designs, LLC, passed away on February 6. A World War II veteran, Frank was well known in the tug market. Entech Design’s Kamia Lalili, told us, “His legacy continues with over 600 vessels of his design currently serving the marine industry all over the world.” Counted among his clients is The Vane Brothers Company, which is celebrating its 120th anniversary this year. You can read more about it starting on page 20. I’m also sad to report the passing of James G. “Jim” Clary, the long-time provider of Marine Log’s monthly Maritime Trivia column. Jim, 78, passed away on March 31. An Air Force veteran, Jim served as the project artist and historian on the 1983 search for the RMS Titanic. He was also a great promoter of the highly detailed historic paper ship models created by Bob May for Lake Freighter Minis, LLC from his shop, Cap’n Jim’s Gallery. “I lost a good friend and mentor,” said Bob. I’ll miss Jim, too.
John R. Snyder Publisher & Editor firstname.lastname@example.org
PRICING: Qualified individuals in the marine industry may request a free subscription. For non-qualified subscriptions: Print version, Digital version, Both Print & Digital versions: 1 year, US $98.00; foreign $213.00; foreign, air mail $313.00. 2 years, US $156.00; foreign $270.00; foreign, air mail $470.00. Single Copies are $29.00 each. Subscriptions must be paid in U.S. dollars only. COPYRIGHT © 2018 Simmons-Boardman Publishing Corporation. All rights reserved. Contents may not be reproduced without permission. For reprint information contact: PARS International Corp., 102 W 38th St., 6th Floor, New York, N.Y. 10018 Phone (212) 221-9595 Fax (212) 221-9195. For Subscriptions, & address changes, Please call (800) 895-4389, (402) 346-4740, Fax (402) 346-3670, e-mail email@example.com or write to: Marine Log Magazine, Simmons-Boardman Publ. Corp, PO Box 3135, Northbrook, IL 60062-3135.
2 Marine Log // April 2018
MANAGING EDITOR Shirley Del Valle firstname.lastname@example.org CONTRIBUTING EDITOR Paul Bartlett email@example.com WEB EDITOR Nicholas Blenkey firstname.lastname@example.org Art Director Nicole Cassano email@example.com Graphic Designer Aleza Leinwand firstname.lastname@example.org MARKETING DIRECTOR Erica Hayes email@example.com PRODUCTION DIRECTOR Mary Conyers firstname.lastname@example.org REGIONAL SALES MANAGER Elaina Crockett email@example.com SALES REPRESENTATIVE KOREA & CHINA Young-Seoh Chinn firstname.lastname@example.org CLASSIFIED SALES Jeanine Acquart email@example.com CONFERENCE DIRECTOR Michelle M. Zolkos firstname.lastname@example.org
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CONFERENCE ASSISTANT Stephanie Rodriguez firstname.lastname@example.org CONTRIBUTORS Michael J. Toohey, President & CEO, Waterways Council, Inc. Emily Reiblein Crowley Maritime Corporation email@example.com Capt. Matthew Bonvento Vanuatu Maritime Services Ltd. firstname.lastname@example.org Simmons-Boardman Publishing CORP. 55 Broad Street, 26th Floor, New York, N.Y. 10004 Tel: (212) 620-7200 Fax: (212) 633-1165 Website: www.marinelog.com E-mail: email@example.com
Full compliance. No performance compromise. Introducing Mobil SHC Aware HS Series — new, VGP-compliant* hydraulic oils that join the full line of Mobil SHC Aware lubricants. Specifically engineered for marine applications, these hydraulic oils have Eaton and Denison approvals and can help maximize equipment life and extend dry dock intervals.† Learn more at mobilshcaware.com. ™
*Environmentally acceptable lubricants are defined in the United States Environmental Protection Agency’s (EPA) 2013 Vessel General Permit (VGP) as lubricants that are biodegradable, minimally toxic and non-bioaccumulative. †Compared to mineral alternatives. © 2018 ExxonMobil. All trademarks used herein are trademarks or registered trademarks of Exxon Mobil Corporation or one of its subsidiaries.
INDUSTRY INSIGHTS WELCOME TO Industry Insights, Marine Log’s quick snapshot of current trends in the global maritime marketplace. The U.S. is set to become the world’s largest oil producer by 2023, thanks in a large part to the shale gas revolution. With Congress lifting the ban on U.S. crude oil exports in December 2015, U.S. crude exports jumped from 216.3 million barrels in 2016 to 408 million barrels in 2017. Meanwhile, the Crew Connectivity 2018 Survey Report published by Future Nautics in association with KVH and Intelsat reveals the increasing importance of communications at sea for mariners. The below infographic highlights who has access, how much they are spending, and who is responsible for cyber security.
Offshore Rigs Operating in the U.S. GOM (on or about March 1 of respective year)
Annual U.S. Crude Exports (Thousands of Barrels) 500000
Source: Energy Information Administration
Source: Baker Hughes
Trends In Communications At Sea Access to Crew Communications, By Sector
Crew Communication Spending at Sea
Cyber Security Onboard: Who’s Responsible?
Car Carrier 76%
Gas Carrier 70% Tanker 61%
10% IT Manager
5% 2nd Officer
Bulk Carrier 56%
General Cargo 44%
Source: Crew Connectivity 2018 Survey Report
Recent Contracts, Launches & Deliveries Qty
Austal USA, Mobile, AL
Littoral Combat Ship
Bollinger Shipyards, Lockport, LA
154 ft Fast Response Cutter
U.S. Coast Guard
Conrad Shipyard, Morgan City, LA
55,000 bbl ATB
Vane Brothers Company
Gladding-Hearn, Somerset, MA
Circle Line Sightseeing
Gulf Island Shipyards, Houma, LA
Towing, Salvage & Rescue Ship
Lake Assault Boats, Superior, WI
Tahoe District FD
Source: Marine Log Shipbuilding Contracts
4 Marine Log // April 2018
The Future is Clear ME-GI dual fuel done right
MAN B&W MC/MC-C Engines MAN B&W ME/ME-C/ME-B Engines MAN B&W ME-GI/ME-C-GI/ME-B-GI Engines The new ME-GI generation of MAN B&W two-stroke dual fuel â€˜gas injectionâ€™ engines are characterised by clean and efficient gas combustion control with no gas slip. The fuel flexibility and the inherent reliability of the two-stroke design ensure good longterm operational economy. Find out more at www.mandieselturbo.com
Marine Innovations Current Scientific Corporation Showcases Power of its Night Navigator 6065 Current Corporation has partnered with Zodiac Milpro to demonstrate its latest fast interceptor equipment. Current’s newest electro-optical system, the Night Navigator 6065, is installed on the latest Zodiac Hurricane 1300 MACH II Interceptor RHIB. The Night Navigator 6065 integrates a cooled thermal imager with 22x optical zoom and HD day/low light camera with 30x optical zoom. The camera provides 360-degree situational awareness and tracks targets from multiple sources while navigating at high-speed, day or night. www.currentcorp.com
Delta “T” Systems Innovative Technology Onboard Seastreak’s New High-Speed Ferry Seastreak’s new Commodore-class high-speed catamaran ferry—a USCG K-Class high-speed ferry—features an innovative Delta “T” Systems/Dinak modular dry stack engine(s), generator exhausts and related ventilation equipment. The all-in-one solution features a double wall design, meaning less heat in the engine room and a safer work environment for the onboard crew. The modular, light-weight system is clamped together (not welded) meaning a reduction in onsite labor costs. deltatsystems.com
Gill Sensors & Controls New Blackwater Level Sensor Solves Reliability and Maintenance Issues Gills Sensors & Controls Limited will showcase its new Blackwater Level Sensor for marine sewage tanks at OTC 2018. The sensor’s technology has been developed to meet increased regulatory requirements for both black and gray water discharge and address the reliability and maintenance issues with current Blackwater tank content measurement solutions. The design features a simple probe with no moving parts, eliminating frozen outputs, and can differentiate between solid waste versus air providing optimum accuracy. www.gillsc.com
Turner Designs New Data Reporting Software for Saudi Aramco Turner Designs has developed a new data reporting software that ensures data integrity for oil giant Saudi Aramco. The new software writes Ballast-Check 2 results directly to a PDF report that can’t be altered. Ballast-Check 2 evaluates RISK of non-compliance for the D2 regulation using estimates of cell counts and cell viability as an independent parameter during ballast water analysis. Saudi Aramco is now able to ramp up their use of indicative compliance tools for collecting data from arriving ships. www.turnerdesigns.com
Torqeedo Launches New Ultralight 403 C Electric Outboard A leader of electric mobility, Torqeedo recently launched the Ultralight 403 C, a new, longerrunning model of its smallest electric outboard with integrated lithium battery. The Ultralight 403 C boasts a 915 Wh battery—2.85 times more battery capacity compared to the standard Ultralight 403. The outboard produces a top speed of 6 mph and a maximum range of more than 75 miles at 2.6 mph. It comes standard with GPS and a digital display and shows real-time power consumption, battery charge status and remaining range. www.torqeedo.com 6 Marine Log // April 2018
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t a March 14 Senate Commerce Committee hearing, U.S. Secretary of Agriculture Sonny Perdue told lawmakers that modernizing roads, rails and the nation’s inland waterways system would increase worldwide commodity shipments. An ardent supporter of America’s rivers, Secretary Perdue sees the connection between the inland waterways and agriculture. Specifically, Secretary Perdue said that more than 50% of Corps of Engineers’ inland locks and dams are over a half-century old, yet transport annually 500 million tons of freight. “Traffic congestion and repairs are causing twice as many hours of delay now than in the year 2000,” he noted. While the waterways’ criticality is clear, the recent White House Infrastructure proposal is disappointing and needs Congress’ dispositive role to make adjustments. The plan proposes to add to the existing fuel tax another revenue raiser—tolling—to incentivize private investors to build, operate and maintain the inland transportation system. The project investor would be given the authority to set the amount of the toll. The President’s budget then adds a third tax of $178.2 million per year in the form of a “decal fee” which would also be paid by commercial operators. Since the founding of the U.S., there has always been a Federal role in and responsibility for the inland waterways, but President’s Trump’s Infrastructure Plan would eliminate the National role to construct, operate and maintain the waterways by transferring responsibility to non-Federal public or
8 Marine Log // April 2018
private entities. Tolls would particularly impact the agriculture sector. Commercial operators are levied the current diesel fuel tax (and tolls, and the decal fee, if implemented), but America’s wheat, corn and soybean farmers and other shippers pay for it in their trans-
Tolls pit shippers against each other, devaluing farmland in states where transportation costs would be higher. portation rate. Agriculture commodities are sensitive to price fluctuations, and higher fees affect farmers’ bottom lines. With tolls, farmers would get taxed coming and going, as north-bound fertilizer transits the same locks as south-bound grain. Tolls and fees also disadvantage regions of the country and shippers located there from other parts of the U.S. where there are more (or less) tolls to transit and higher (or lower) costs to pay. Tolls pit shippers against each other, devaluing farmland in states where transportation costs would be higher with more locks and tolls. When the U.S. fights in the worldwide arena for market share, why
Michael J. Toohey President/CEO, Waterways Council, Inc.
Disappearing Waterways? Perhaps If We Reap What They Sow...
do we want to further handicap our farmers? Highway tolls provide new capacity and a choice for drivers who wish to avoid congestion, but on the waterways, no alternative exist. Operators and shippers must use the locks, but other users, recreational boaters for example, can choose to fish from a different part of the river where there are fewer locks/tolls. In President Trump’s visit to the Ohio River last June, he aptly described, a “dilapidated system of locks and dams that are more than half a century old,” and said, “capital improvements of the system, which [are] so important, have been massively underfunded. And there’s an $8.7 billion maintenance backlog that is only getting bigger and getting worse...citizens know firsthand that the rivers, like the beautiful Ohio River, carry the life blood of our heartland...Together, we will fix it. We will create the first-class infrastructure our country and our people deserve.” But the Administration’s infrastructure proposal seems to mean that commercial operators and shippers are the only ones who would fix it and would pay significantly more for the Nation’s waterways transportation system. Commercial waterways operators—just 400 companies total—are the only beneficiary to contribute 29-cents-per-gallon diesel fuel tax to the Inland Waterways Trust Fund (IWTF), matched by General Treasury Funds, to cover half the costs of construction and major rehabilitation. Recreational boaters, commercial fishermen, and those who benefit from hydropower generation, municipal and industrial water supply, flood control and national security do not contribute to waterways improvements, yet they utilize and rely upon the lock and dam system to create stable pools and water depths. In 2014, WCI’s carrier and shipper members successfully advocated for a 45% increase to the diesel fuel tax deposited into the IWTF for increased system investment. Inland waterways carriers pay the highest tax of any surface transportation mode. Waterways stakeholders must work in the months ahead with the Administration and Congress to develop an innovative, equitable infrastructure plan that will result in meaningful, world-class waterways modernization.
A CRUISE SHIP THAT MOVES THOUSANDS OF PASSENGERS And a large-scale project where we were on board from the beginning Why does the world-renowned Meyer Werft shipyard team up with Viega time and again for numerous projects of this scale? In addition to the extremely reliable piping systems made from copper, copper alloys or plastic materials, Viega also supplies the know-how to go with them. Viega. Connected in quality.
Meyer Werft shipyard, Papenburg, Germany
The Growing Antibiotic Resistance
10 Marine Log // April 2018
This resistance means that when a patient is given an antibiotic the little “superbugs” survive the onslaught. Their defensive play kills over 23,000 people annually. The WEF estimates that by 2050 deaths from antibiotic resistant infections will top cancer deaths at over 10 million and will potentially stunt global economic growth. Spurring on this resistance in the U.S. is
The war we waged on bacteria with antibiotics to save lives has ironically become the very mechanism that now takes lives. the over prescribing and use of antibiotics in 50% of cases. The CDC estimates that 47 million prescriptions annually are ill prescribed, putting patients at risk for the side effects of the medication, and the community at risk for the further development of “superbugs.” Resistance to antibiotics does not just come from human medical prescriptions, it also comes from the ever growing presence of these drugs in our environment, particularly in the food we eat. Livestock, not humans, are the predominant recipients of antibiotics, and as the saying goes, you are what you eat. Thus, when you consume
Crowley Maritime Corporation, Labor Relations-Union Wellness Programs/ Operations Integrity
ntibiotics are a vital tool in a physicians fight against deadly bacterial infections. However in the past few years the World Health Organization (WHO), Center for Disease Control (CDC), World Economic Forum (WEF), and others have raised an alarm about the overuse of these drugs due to their impact on health and the economy. Antibiotics are the number one prescribed medication in America for infections, totaling over 266 million human-outpatient prescriptions annually (835 prescriptions for every 1,000 people). The first development and use of antibiotics was in the 1920s with the invention of penicillin. It was, and still is, a “miracle drug” saving lives from bacterial infections. These drugs generally work in one of four ways: (1) They can stop bacteria from building a strong defensive cell wall; (2) They can disrupt the bacteria’s ability to function by changing how it makes proteins; (3) They can stop the ability of the bacteria to make folic acid-needed for survival, and (4) They can prevent the proper replication of the bacteria’s DNA. All four of these disruptions to a bacteria’s normal function would lead to death, however the blow these pills perpetrate is not quite as deadly as it once was. Bacteria are an ever-evolving bunch of organisms with hardcore programming to aid their survival. When they are under attack, they quickly develop mechanisms to counter attack. The war we waged on bacteria with antibiotics to save lives has ironically become the very mechanism that now takes lives. The bacteria we hope to kill have become resistant to our killing mechanisms.
livestock that has been raised on antibiotic laced feed you too shall be affected. In 2010, farmers around the world used more than 63,000 tons of antibiotics to raise livestock. By 2030, this number is estimated to top 100,000 tons. The FDA is quick to point out on their 2012 Report on Antimicrobial Sold and Distributed for use in Food Producing Animals, that 40% of the antibiotics given to livestock were not medically necessary. As a consumer of both medical services and food, individuals can help decrease their own exposure to antibiotics and curb the increasing use of them in the environment. 1. A Conversation: If a visit to the doctor evolves into a prescription for antibiotics, the CDC recommends the following: Ask your healthcare professional if there are steps you can take to feel better and get relief from your symptoms without using antibiotics. The CDC also points out that antibiotics “should never be taken for a viral infection like a cold or the flu, most sore throats, most coughs and bronchitis, many sinus or many ear infections”. The drugs will be “ineffective on these conditions, even though they are often prescribed for them”. 2. Changing Expectations-A cold/flu is going to take time to get over. The body needs time to heal. 3. Your Food Choices: When possible, make food choices that are antibiotic free. 4. Special Note For Sailors: Many antibiotics identify that one should not be operating heavy equipment when taking them. This has the potential to take you out of a “Fit-for-Duty” status under your Merchant Mariner Medical Certificate and/or your company’s medical fitness requirements. Make sure you discuss your ability to work or not to work due to side effects of medications you are taking with your doctor. Our choices will play a role in navigating our health, and how effectively we slow the advancement of bacterial resistance at large. Next month, we’ll cover the role of antibiotics and their impact on gut health. Nothing in this article constitutes medical advice. All medical advice should be sought from a medical professional.
STRENGTH & RESILIENCE The Impact of Canada’s Ferries on Indigenous and Remote Communities
CFA CONFERENCE & TRADE SHOW The premiere annual event for Canada’s ferry Industry
Whistler, BC • September 30 – October 2
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October 3 at Whistler Golf Club • Registration now open
Photo © Tourism Whistler/Mike Crane
Lands Navy Contract The U.S. Navy has chosen Louisiana ship
builder Swiftships, LLC, to build its next landing craft. The $18,053,376 fixed-price incentive contract is for the detail design and construction of the Landing Craft, Utility (LCU) 1700—the new series is intended to replace the LCU 1610 series currently in service. Under the contract, Swiftships will deliver the LCU 1700 detail design and construction of one craft, including data license rights, approximately 31 months after contract award. In addition, the solicitation contains options for product support, technical manuals; up to 10,000 hours of special studies services; a technical data package; and order for interim support, engineering and industrial services, training and shipping. The contract also includes options for
31 more craft with delivery dates through 2027 and a cumulative value of up to $429,422,280. According to the U.S. Navy’s fact file, the LCU 1700 class will measure 139 ft x 32 ft and will have a range of 1,200 nautical miles at 8 knots. The new craft will be powered by two diesel engines with 500 hp sustained and will travel at a speed of 11 knots. The LCU 1700 will be able to carry a military load of two M1A1 tanks, or 350 combat troops, or 400 persons, or 170 short long tons of cargo. Base work will be performed in Morgan City, LA (83%), Houston, TX (15%) and Virginia Beach, VA (2%). The first LCU 1700 craft is expected to be completed by July 2020.
Shipping Tycoon Denies Links to Heroin Case P r o m i n e nt G r e e k s h i pp i ng tycoon, Evangelos Marinakis, Chairman
of Capital Maritime & Trading Corp., has denied any links to drug trafficking in a case related to the Noor One, a tanker allegedly used to smuggle nearly two tons of heroin into Greece in 2014. According to Greek newspaper, Kathimerini, Prosecutor Eirini Tziva brought the charges against Marinakis last month following an investigation that examined bank transfers that were believed to be used to fund the ship. Charges were also brought 12 Marine Log // April 2018
against three alleged associates, including Nikos Syntihakis, Managing Director of Shipping for the firm Capital, Piraeus-based lawyer Vangelis Bairakataris and marine insurance broker Ilias Tsakiris. Outside of the industry, Marinakis is best known as the owner of two soccer teams: Olympiakos Piraeus and Nottingham Forest. He stated on the Olympiakos website that he had nothing to do with the acts for which he was being investigated, and is certain that the investigation will confirm his innocence.
BIZ NOTES Jeffboat to Close its Doors Long a staple of Jeffersonville, Indiana, Jeffboat LLC will end its operations, closing the doors on the largest inland shipyard in the United States. The shipyard, which sits on 80 acres with one mile of riverfront, was the longest, continually operated shipyard in the U.S. building on the water for over 180 years according to its website. Initial news of the closing came from Teamsters Local 89, a union that represents Jeffboat workers. In a s t atement released on Facebook the union said: “It is with heavy hearts that we confirm reports that Jeffboat, the nation’s largest inland shipbuilder and one of Local 89’s oldest companies, is shutting down. Over the last several years, the shipbuilding industry has seen a massive decline and while this cycle has occurred in decades past, this time it was unfortunately too much for the company to bear. ‘It’s a ver y sad day for a lot of hard-working, ship -building craftsmen and craftswomen,’ said Business Agent Jim Kincaid, a former worker at Jeffboat. ‘I worked beside a lot of these folks for many years through the most extreme weather anybody can imagine. They always delivered the best barge or towboat in the industry. They poured their heart and souls into it. They took pride in their work and built some of the best vessels on the rivers and oceans.’” In a s tatement, Mar k K noy, President and CEO of Jeffboat, said market conditions had left the company with no choice but to shutdown the yard. In a letter sent by the shipyard to to the Indiana Department of Wor k force D evelo p me nt p ursuant to the Worker Adjustment and Retraining Notification Act, approximately 207 employees will be laid of f, beginning this m o n t h t h r o u g h M ay 14 — t h e y a r d ’s ex p e c te d close date.
U.S. Navy Photo / Petty Officer 1st Class Chris Williamson
The new LCU 1700 will replace the LCU 1610 series
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Keel Laid for Lindblad’s New Polar Expedition Cruise Ship
National Geographic Endurance will take passengers to unexplored areas of the Arctic The Ul s tein Group and Lindblad Expeditions Holdings, Inc. celebrated the keel laying of the expedition cruise provider’s polar new build, the National Geographic Endurance. The ship, due for delivery in 2020, is “named in honor of Ernest Shackleton, Lindblad Expeditions’ most revered explorer,” said Sven Lindblad, President and CEO of Lindblad Expeditions. The ceremony at Ulstein’s CRIST shipyard
in Gdynia, Poland, marks a major milestone in the construction of the vessel, the world’s most sophisticated expedition ship. During the ceremony, Mr. Lindblad noted that the ship will “incorporate technical advances and create opportunities for guests beyond the reach of any contemporary ship.” The state-of-the-art ship will have accommodations for 126 guests. Its design features Ulstein’s signature X-Bow, providing fuel
efficiency while significantly improving guest comfort in rough seas; the ship is also fitted with zero-speed stabilizers, ensuring stability at any speed, from zero speed to full steam ahead. Because of the ship’s Polar Class 5 rating, she will be able to “explore deeper into the pack ice, or further north to the unexplored reaches of the arctic,” said Mr. Lindblad. This National Geographic Endurance will also feature expedition tools to further enhance the passenger exploration experience, including kayaks, underwater video cameras, hydrophones and a remotely operated vehicle (ROV). ABB will supply a broad range of solutions for the ship including its power and automation solutions and two Azipod DO propulsion units. Nikolaos G. Doulis, Senior Vice President, New Buildings, Lindblad Expeditions, says the company’s selection of ABB was based on its experience with the company. “ABB Azipod propulsion offers major safety benefits for our vessel with exceptional fuel consumption, high performance in demanding ice conditions, and remarkably improved onboard comfort.”
Gulf Island Books Navy and U.S. Wind Order Gulf Island Fabrication, Inc. subsidiary Gulf Island Shipyards, L.L.C., will construct and deliver a Towing, Salvage and Rescue Ship (T-ATS) vessel for the U.S. Navy. The contract includes an option for seven more ships. According to the Department of Defense, the shipyard will receive a $63,560,942 contract for the detail design and construction of the first vessel. If the options are exercised, the contract value could go up to $522,701,092.
The T-ATS Class vessels will replace both the Safeguard Class Salvage and Rescue Ships (T-ARS) and the Powhatan Class Fleet Ocean Tug (T-ATF). Meanwhile, fellow subsidiary Gulf Island, L.L.C, signed a contract with U.S. Wind, Inc. for one MET tower and platform for its offshore wind project off the coast of Maryland. The tower, a 328 ft above sea level structure resting on a 60 ft above sea level platform, will run on solar powered batteries.
Charleston, South Carolina 14 Marine Log // April 2018
On-Time In Budget Top Quality Safety Focused detyens.com
Top: Linblad/Ulstein, Bottom: Gulf Island Shipyards
Smooth, Easy BARGE Repairs
New Training Ships on the Horizon for U.S. Maritime Academies
The new 2,232 page omnibus spending measure, signed into law by President Trump, provided a gift to the Maritime Administration in the form of $300 million for the National Security Multi Mission Vessel Program (NSMMV). MARAD owns the fleet of six state maritime academy training ships. In total, the six maritime academies—SUNY Maritime College, Massachusetts Maritime Academy, Maine Maritime Academy, Great Lakes Maritime Academy, Texas Maritime Academy and California Maritime Academy—produce more than 70 percent of U.S. licensed Coast Guard officers each year. The NSMMV class replaces the aging fleet of training vessels currently being used by the nation’s maritime academies. The ships are also used in times of national emergencies, such as last year’s Hurricane Irma, to support the Federal Emergency Management Agency (FEMA) efforts. The first new ship will go to SUNY Maritime, the largest of the six academies, and will replace the Empire State, the oldest of the training ships and the one in service the longest. The ship is expected to be delivered in time for the 2022 Summer sea term.
Rendering of SUNY Maritime’s new NSMMV ship by Herbert Engineering Corp. The new ships, designed by Herbert Engineering Corp., will each carry 600 cadets and 100 officers and crew. A presentation by Herbert Engineering’s Eugene Van Rynbach detailed some of the specs, enhancements, and features the new class will include. Among them, the NSMMV ships will measure 159.85m x 27m x 16.8m and will be powered by four main diesel electric engines
divided between two engine rooms. Its hull will be optimized for efficiency at multiple drafts with a 10% reduction in propulsion power when compared to a typical vessel of this size. Key capabilities of the class— which will be USCG Subchapter R—include a range of 11,000+ miles at 18 knots; the ability to dock without tugs, and emergency response capabilities. The new ships will be built in the U.S.
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April 2018 // Marine Log 15
BIZ NOTES Saipem Acquires Lewek Constellation Vessel Italian contractor Saipem will pay $275 million to acquire the 3,000 ton Lewek Constellation. The ultra deepwater rigid and flexible pipelay, heavy lif t and construction vessel was delivered in 2013 and was operated by (now bankrupt) EMAS Chiyoda Subsea. According to Saipem, the vessel is “readily available to be promoted for commercial opportunities” and will be “marketed in all geographic areas including the Gulf of Mexico and the North and Norwegian Seas where the vessel characteristics make it suitable to pursue the subsea tie-back initiatives predominant in those areas.” Saipem CEO Stefano Cao says the acquisition of the Constellation is par t of the company’s strategy to foster its subsea growth.
BOEM’s GOM Lease Sale: “Modestly Active” Does the March 21 offshore lease sale
staged by the Bureau of Ocean Energy Management (BOEM) hold out any signs of recovery for the offshore services industry in the U.S. Gulf of Mexico? At best, the answer is inconclusive. “As the largest offshore lease sale for oil and gas drilling in U.S. history,” it attracted bids on just one percent of the offered tracts. The lease sale terms include a 12.5 percent royalty rate for leases in less than 200 meters of water depth, and a royalty rate of 18.75 percent for all other leases issued under the sale, in recognition, said BOEM “of current hydrocarbon price conditions and the marginal nature of remaining Gulf of Mexico shallow water resources.” Platts characterized the sale as “modestly active,” with the most competition in deepwater offshore Louisiana and some notable bids in a remote, largely non-producing area near the Mexican border. Platts noted that the sale bested the previous auction last August that took in $121 million in high bids, and $137 million total, but fell shy of the March 2017 lease sale that captured nearly $275 million in apparent high bids.
National Ocean Industries Association (NOIA) President Randall Luthi said his organization was “encouraged” by the results of lease sale, which “show a promising trajectory towards the future.” Luthi noted that “both the number of bids submitted and the total amount of high bids received are up compared to the August 2017 sale figures.” “Bonus bids are an indicator of the ability and confidence of producers to invest in the Gulf of Mexico. These are not new fields, and producers are attempting to pick the best of what is left. From that view, the bids demonstrate a solid commitment by the oil and natural gas industry to continue to invest in U.S. offshore energy and U.S. jobs.” But added that “While the outlook is promising, it also comes with a note of caution that with companies looking globally for exploration opportunities, the United States must continue to evaluate how to keep the Gulf of Mexico and other parts of the U.S. outer continental shelf attractive in light of competition from Brazil and Mexico.” As we were going to press, B OEM announced that the department will offer 77.3 million acres in the Gulf in a lease sale (Lease Sale 251) this coming August 15.
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WSF Looks to Convert Jumbo Mark ll Class Ferries to Hybrid Power Just months after launching the Washington Maritime Blue 2050 Initiative, Governor Jay Inslee has taken another step in ensuring his state’s transportation department is operating as efficiently as possible. The governor signed into law a transportation funding measure that includes $600,000 to develop a request for proposal to convert Washington State Ferries’ (WSF) three Jumbo Mark II Class ferries—the Puyallup, Tacoma and Wenatchee— to hybrid electric propulsion, as well as make associated modifications to the Seattle, Bainbridge, Edmonds and Kingston terminals. The funding comes at a vital time for the Washington Department of Transportation’s WSF fleet, the nation’s largest ferry system. The system has an aging fleet for the most part with all but 13 of its 22 vessels over the age of 30. And though the fleet is aging, ridership is only climbing. Last year ridership reached a 15-year high, with the system carrying nearly 24.5 million people—increasing by more than 250,000 from the year before, and marking the ninth consecutive year of growth. The Seattle and Bainbridge terminals are the busiest for the state with an annual
The Jumbo Mark II Class ferries are the largest in the WSF fleet ridership of 6,528,640 and 1,932,508 vehicles carried. Meanwhile the Edmonds and Kingston terminals follow closely behind with an annual ridership of 4,135,698 and 2,147,822 annual vehicles carried. According to State Ferries Director Amy Scarton, the 22 ferries account for 67% of the WSDOT’s air pollution with the three Jumbo Mark II ferries, the largest boats in the fleet, accounting for 26% of the department’s diesel use.
Under the measure, the Washington State DOT is directed to explore capital project financing options that include federal funding opportunities and applications for Volkwagen settlement funds—the state is receiving $112.7 million from the settlement. Those funds could pay for projects that install electric vehicle charging stations, replace diesel engines with electric or cleaner diesel engines, or other investments that will reduce diesel emission in the state.
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April 2018 // Marine Log 17
Fire Onboard Maersk Honam Claims Lives
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A f i r e o n b oa r d the 15,262 TEU Maersk Honam claimed the lives of up to five crew members. The ship was en route from Singapore to the Suez Canal when a fire broke out on March 6, 2018, when the vessel was about 900 nautical miles southeast of Salalah, Oman. Of the 27 crew members on board, 23 were evacuated with one dying from his injuries. The remaining four crew members are believed to have died on the ship—only three of the four bodies had been recovered as of press time. The fire is believed to have started in one of the vessel’s cargo holds. According to the Indian Coast Guard (ICG), four merchant ships in the vicinity were asked to help. On arrival, they found the vessel “completely on fire” with flames “almost 25 meters high.” In a statement, Maersk said that after firefighting efforts were rendered unsuccessful, the crew sent out a distress signal. The ALS Ceres, which was nearby, helped with the evacuation of the crew. The Maersk Honam was practically a new ship having been built in 2017. At the time of the fire, 7,860 containers were on board. Just days after the Maersk Honam tragedy, Maersk Line’s Maersk Kensington also expe1:23 PM rienced a fire on board. Operated by U.S. flag subsidiary Maersk Line, Limited (MLL), the 2007-built, 6,188 TEU Maersk Kensington fire broke out in a cargo hold while the ship was en route from Salalah, Oman to Suez. Safety measures were taken immediately with the crew releasing CO2 into the cargo hold to contain the fire and all 26 crew members were safe and accounted for. At press time, no link between the two fires had been made.
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Funds for Icebreaker, NSMMV in Navy Shipbuilding Program
here were some goodies for Navy and government shipbuilders tucked into the Consolidated Appropriations Act of 2018, passed by the House and the Senate and signed into law March 23. President Trump had threatened on Twitter to veto the bill because it did not include any appropriations for a border wall with Mexico nor did it address the issue of the Deferred Action for Childhood Arrivals (DACA) program. The omnibus spending bill appropriated
over $23.8 billion for Navy shipbuilding and conversion, highlighted by appropriations of $76.2 million for the first T-ATS Towing, Salvage & Rescue Ship, and $150 million for the Polar icebreaker program. Gulf Island Shipyards, Houma, LA, was recently awarded a $63.6 million contract for the detail design and construction of the first T-ATS. There was also $300 million available for the National Security Mu l t i -m ission Vessel (NSMMV), including funds for the construction, planning, administration, and design of school ships. There’s another $52 million for facilities maintenance and repair, equipment, and capital improvements at the United States Merchant Marine Academy. Also, appropriated was $20 million for the highly popular Small Shipyard Grant program administered by the Office of Shipyards and Engineering at the Maritime Administration
(MARAD). The grants, which are available to shipyards with less than 600 production workers, usually are in amounts of $1 million and are used towards the purchase of new technologies—such as CNC cutting machines or welding equipment— and training that boost productivity and efficiency at the facility. Another $116 million was made available to scrap obsolete ships in the National Defense Reserve Fleet, $30 million will go to MARAD’s Title XI Federal Ship Financing Program, of which $3 million was appropriated for administration of the program. Right now, there is an application pending from Matson Navigation Co. for $413 million for the construction of two 3,600-TEU Aloha Class containerships being built by Philly Shipyard, Inc., Philadelphia, PA. There’s also $7 million appropriated for the American Marine Highway program.
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April 2018 // Marine Log 19
AHEAD of the
120 years strong, The Vane Brothers Company continues to expand its offerings and invest in its fleet By John R. Snyder, Publisher & Editor in Chief
20 Marine Log // April 2018
Tugs & Barges
he Vane Brothers Company is aging well. While this year marks its 120th anniversary, the Baltimore, MD, headquartered oil transportation services company “has never wavered in its mission to consistently provide customers with preferred, quality service and do it safely, without harm to people, property or the marine environment,” says Vane Brothers President C. “Duff ” Hughes. “We like to speak in terms of doing things ‘the Vane way,’ which means approaching each job with professionalism, passion, integrity and efficiency. That’s the legacy that has been passed down by the original Vane brothers to their cousins, the Hugheses.”
Hank Carter Photography
Two Entrepreneurial Brothers Open Shop in Fells Point Back in 1898, two entrepreneurial brothers, Captain William Burke Vane and Allen P. Vane, established The Vane Brothers Company as a ship chandlery in the Fells Point section of Baltimore. The idea behind the newly established venture was to sell everything from dried beans, vegetables, and fresh meat to potbelly stoves, bilge pumps, and kerosene lanterns to vessels that were docked along the busy waterfront. The Hughes family came onboard in 1920, when Claude Venables Hughes, a 30-something mariner, joined the business. Ready to settle down, Claude was told by his sweetheart, “What’s the use in getting married, you’re never home.” Claude decided to discuss the matter with Captain William Burke Vane, a distant cousin of the Hugheses, to see if there were any positions available at the ship chandlery. The rest, as they say, is history. Claude sold his boat and property on the Eastern Shore of Maryland, got married, and officially joined Vane Brothers all within a span of six months. The next year, he convinced his younger brother, Charles Fletcher Hughes Sr., to join the business. Some twenty years later following the death of Allen Vane in 1941, Captain William Burke Vane sold his remaining shares to the Hughes brothers. Over the years, Vane Brothers has experienced strong growth and expansion as a premier marine fuel and transportation provider from the 1980’s to today. Today, Vane Brothers has a fleet of about 120 vessels and over 700 employees, including nearly 600 mariners. It has a double-skin fleet of tankers that can carry between 10,000 and 140,000 barrels of petroleum and chemical products. Besides its headquarters in Baltimore, Vane Brothers maintains
locations on the U.S. East Coast in New York, Philadelphia, Portsmouth, VA, Charleston, SC, Savannah, GA, and Jacksonville, FL.
Vane Launch Formed Just last month, the company announced the formation of a new division, Vane Launch “establishing a new era of expansion” for the company, says Hughes. The Vane Brothers Company became a major player in the delivery of marine lubricants in the Port of Baltimore with the acquisition of the Marine Launch Company in 1986. That was followed in 2013 with the acquisition of Philadelphia-based River Associates, which led the company to operating Philly Launch. The Marine Launch and Philly Launch operations have now merged under the Vane Launch umbrella to allow the company to leverage the combined resources of the operations. While maintaining offices in both Baltimore and Philadelphia, Vane Launch provides service from the Chesapeake Bay to the Delaware River and all along the U.S. East Coast – everywhere that Vane Brothers operates its tugboat and barge fleet. Vane Launch and Vane Brothers’ bunkering operations are linked by an Ordering and Delivery Processing System that improves responsiveness by allowing the two entities to coordinate deliveries. “Leveraging Vane Brothers’ assets and working together for a common purpose only makes our marine lubricant and launch services more efficient and accessible to a larger customer base,” says Vane Launch General Manager Michael “Red” Davis, who was a member of the U.S. Coast Guard and Vice President of a Virginia-based marine
lubricants provider before joining Vane Brothers in 2015. Says Davis, “Ship and tugboat crews want the convenience of a one-stop shop where they can get all of their needs met, from lube oil to fuel, on time and in full. We meet those needs.” Among many service offerings, Vane Launch delivers ship’s stores and supplies, including fresh and frozen foods; transports passengers on U.S. Coast Guard-inspected vessels; delivers lube oil bulk and package products via launch or truck; delivers nonpotable water; and, as of 2017, is authorized to remove USDA-regulated garbage from commercial vessels.
Newbuild Programs with Three Shipbuilders “When OPA-90 changed the playing field,” says Hughes, “Vane Brothers stayed ahead of the game. Recognizing the importance of these environmental measures, we completed our transition to double-hulled oil-moving barges years prior to the legal mandates. Now we are applying that same proactive approach to Subchapter M. We have prepared and planned well to meet multiple conditions of compliance.” Vane has newbuild programs underway at Chesapeake Shipbuilding, Salisbury, MD, St. Johns Ship Building, Palatka, FL, and Conrad Shipyard, Morgan City, LA. Earlier this year, Vane Brothers took delivery of the third Articulated Tug Barge (ATB) for its fleet. The ATB unit consisted of the 4,400 hp tug Assateague and 80,000 bbl Double Skin 801. Conrad shipyards in Texas and Louisiana are now turning out two more Assateague Class ATB tugs, the Chincoteague and Wachapreague, along with
When OPA 90 changed the playing field, Vane Brothers stayed ahead of the game. We’re now being proactive on Subchapter M. - C. “Duff” Hughes
April 2018 // Marine Log 21
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Tugs & Barges The ATB tug Assateague and 80,000 bbl tank barge Doubleskin 801
two double-hull tank barges, DS-802 and DS-803. Delivery of both of these ATB units is expected within a year’s time. Vane Brothers took delivery of its first two ATBs in 2006 and 2007. Those 145,000 bbl class units, the Brandywine/Double Skin 141, and the Christiana/Double Skin 143, were built by the Manitowoc Marine Group — now the Fincantieri Marine Group, based in
Sturgeon Bay, WI. As for the new series of ATB tugs, they are being built at Conrad Shipyard’s Orange, TX, shipyard. Designed by naval architect Greg Castleman, Castleman Maritime, LLC, and classed ABS-A1 TUG, AMS, ABCU, each 110 ft by 38 ft tugs is mated to the barge using a Beacon Finland JAK 700 tug/barge coupling system.
Port Captain Jim Demske, who is in charge of new tugboat construction for Vane Brothers, says, “Castleman Maritime’s ATB tug, Assateague Class design is just a terrific tug design to pair up with the Bristol Harbor Group’s barge design. The tug has great free running speed and the combined tug/barge performance is excellent.” Built with accommodations for up to 10 crew members, each tug has two 2,200 hp Cummins QSK60M, EPA Tier 3-compliant diesel engines. The engines are coupled to Reintjes WAF 873 gears (with 7.087:1 reduction) that turn 102-inch four-bladed bronze propellers mounted on 9.5-inch shafts. The Reintjes gears are being supplied by Karl Senner, LLC, Kenner, LA. Each tug has two Cummins QSB7-DMpowered 125 kW generators providing electrical power and a Cummins-powered 60 kW emergency generator. Crew access to the barges is facilitated by a Schoellhorn-Albrecht custom gangway. Coastal Marine Equipment, Gulfport, MS, is supplying deck capstans on the tugs. Bristol Harbor Group, Inc. (BHGI), Bristol, RI, designed the series of three 403 ft x 74 ft x 32 ft ATB oil tank barges. Built by Conrad Deepwater South shipyard in Amelia, LA, the three barges are
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April 2018 // Marine Log 23
Tugs & Barges
Once its newbuild program is complete with Conrad Shipyard, Vane Brothers will have a fleet of five ATBs
classed by the American Bureau of Shipping (ABS) ABS +A1, Unmanned, Unrestricted Oceans Service. For maneuverability, each barge is fitted with an Omnithruster model HT600 bow thruster. Each barge is equipped with a complete loading and discharging system in 10 tank compartments and includes a
10 MMBTU cargo thermal heating system of two Vapor Power, Model ONC-5937AHK-50, 5 MMBTU/units. Each barge also has three John Deere, Model 6135AFM85 294kW generators and a John Deere, Model 4045 generator, 99kw. Hughes says that the company is under contract with Chesapeake Shipbuilding for
four Subchapter M-compliant push boats. The new 3,000 horsepower tugs will be equipped with two Caterpillar 3512 main engines, conventional shafts, rudders and flanking rudders. Each 94 ft x 34 ft tug will accommodate up to seven crew members and will have large, modern, private and semi-private quarters. With the new series of four vessels, Chesapeake Shipbuilding will have built 20 tugs for Vane Brothers since it delivered the Sassafras in 2007. “These 3,000-horsepower tugs will help ensure that we have the most up-to-date fleet to continue delivering the highest quality service in shallow waters and protected harbors,” says Hughes. Hughes also points out that the company has a new series of 4,200 hp tugs at St. Johns Ship Building in addition to the tugs at Chesapeake Shipbuilding. Vane’s relationship with St. Johns Ship Building dates back to 2016 when it ordered a series of eight 4,200 hp, 100 ft x 34 ft model bow tugs based on a design by the late Frank Basile of Entech Designs, LLC. “So you can see that we are covering all of our bases,” says Hughes. “We owe it to our customers and our crews to have the safest, most advanced and efficient fleet in operation.” That’s “The Vane Way.”
Wartsila to Monitor Crowley ATB Performance
24 Marine Log // April 2018
portable hardware. It will enable Crowley to accurately track its fuel spend and optimize its vessel operations. ATB units are more commonly used in the United States to transport petroleum and chemical products. An ATB has a hinged connection system that allows a powerful oceangoing tug fitted with a “pin” to mechanically connect to a notch in the stern of the barge, which enables the tug to propel and maneuver the barge. “We are pleased to continue our cooperative arrangement with Wärtsilä,” said Crowley Engineering Director Marc Aikin. “Our agreement allows us to execute carefully planned maintenance schedules, customize scopes, and achieve constant cooperation to complete our ATB dry docks on schedule, ensuring the reliability and efficiency of our vessels’ operations.” Sean Carey, Services Unit Director, USA, Wärtsilä Services, says, “Our customers are showing increased interest in comprehensive maintenance agreements, as they allow the customers to focus on their core business. We are proud to continue our partnership with Crowley and are committed to ensuring that their maintenance
needs are met efficiently.” Crowley operates and manages the largest U.S.-flag petroleum and chemical tank vessel fleet in the country. With the pending acquisition of three tankers from SeaRiver Maritime, the company will operate 40 Jones Act qualified large petroleum transportation vessels in the United States with a combined capacity of more than 12 million barrels. The company specializes in providing bulk petroleum and chemical transportation throughout the U.S. Gulf, East Coast, West Coast, and Alaska, as well as international ports.
Top photo: Hank Carter Photography
Under a recently announced agreement that was extended last year, Wärtsilä will cover the maintenance of 22 Wärtsilä engines installed on board 11 Articulated Tug Barges (ATBs) owned and operated by Crowley Maritime Services, Jacksonville, FL. The agreement, signed in December 2017, extends the original contract term from 2019 to 2023. Under the contract Crowley receives a comprehensive maintenance package, access to prompt technical service and troubleshooting and a response time guarantee in case of unforeseen circumstances requiring immediate action. The agreement also includes performance guarantees regarding field service confirmation in time-sensitive situations. This ensures that dedicated support team can quickly address and troubleshoot problems, thus maximizing the uptime of vessels. The contract is Wärtsilä’s first maintenance agreement to cover complete propulsion systems, including seals and bearings. Remote monitoring for the first 12 months will be supplied by Wärtsilä through its Eniram unit’s Eniram Skylight, a fleet performance monitoring tool that is delivered as a cost-effective services and supplied with
Tugs & Barges Case Study Shows Promising Results for Hybrid Propulsion in Towboats As emissions regulations tighten and battery technologies improve, marine hybrid and all-electric propulsion technology has become more attractive for a wide variety of vessel applications. Recent orders in the U.S., for example, have included newbuilds and conversions to hybrid electric or all-electric propulsion for OSVs, a short sea cargo vessel, Z-drive harbor tugs, and a passenger ferry. Others are soon to follow. Jan Flores, P.E., Vice President at naval architec tural and engineering firm NETSCo has been examining the application of hybrid electric propulsion in fleet towboats with several different operational profiles. Flores presented the preliminary results in a presentation, “Case study: The Use of Hybrid Technology for a Fleet Towboat,” at last year’s International Workboat Show in New Orleans. Flores examined three distinct operational profiles: The tr aditional 1, 20 0 hp fleet
towboat, ferry barge push boat, and river launch crew boat. The case studies only looked at OPEX and not CAPEX or lifecycle maintenance costs. In the case of the fleet towboat, says Flores, the conversion would involve replacing the gearboxes with a hybrid gearbox, which offers a Power Take In (PTI) mode for electric only operation, Power Take Off (PTO) mode for diesel engine for propulsion and shaft generator, Boost Mode, with electric motor and diesel engine in combination for higher speed and thrust, and Diesel Mode only. For the case study, Flores says they used a Reintjes Hybrid System and Cummins diesel engines. Based on an operational profile formulated by NETSCo, Hybrid for Boost Mode yielded a fuel cost savings of 17% and All-Electric and Boost Mode generated a 5.8% fuel savings as compared with conventional diesel. The assumptions in the study on cost savings were based on an MGO price of $606/MT
and a price of $0.12/kWh. “The engine was operated at a lower horsepower and then boosted with electric power to make it a lot more efficient,” he says. He points out that EPA Tier 4 requirements start at just above 800 hp. “So when you need a 1,000 hp, you can get the additional 200 hp from batteries. That’s very advantageous.” In the second case study, Flores says the same vessel towing a passenger barge for short distances showed “very, very promising results, with fuel savings up to 45%.” In the third case study, a 600 hp river launch crewboat was analyzed, traveling at var ying speeds, to anchorage points at different distances, for both Conventional and Plug-In Hybrid propulsion arrangements. It, too, yielded some promise, with fuel cost savings of as much as 43.8% for the plug-in hybrid as compared to a conventional diesel, with the boat traveling at a distance of 24 nautical miles traveling at 10 knots.
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April 2018 // Marine Log 25
& May 10, 2018
May 10 & 11, 2018 Le Méridien Philadelphia Philadelphia, PA
May 11, 2018
Registration & Continental Breakfast | Expo Open
Continental Breakfast | Expo Open
Hybrid Technology for a Fleet Towboat Jan Flores, Vice President, NETSCo
Zero Emission Vessels Moderator: Richard Mueller, President, NETSCo Joseph W. Pratt, PhD, CEO & CTO, Golden Gate Zero Emission Marine Anthony Teo, Technology & LNG Business Development Director, Region North America, Maritime, DNV GL Ryan Sookhoo, Director New Initiatives, Hydrogenics Corp.
Technology Spotlight | Wärtsilä
What’s Happening in Washington Matthew J. Thomas, Esq., Partner, Blank Rome LLP
Coffee Break | Expo Open
Subchapter M and Its Impact on the Market Capt. Jeff Slesinger, Founder, Delphi Maritime, LLC; Certified Auditor, AWO Responsible Carrier Program
LNG Bunkering Infrastructure Adi Aggarwal, PE, PMP, Program Manager, Global Marine - Global Gas Solutions, ABS
Coffee Break | Expo Open
Hybrid Tug Propulsion Erik Larsen, Vice President, Tug and Fish, Americas, Rolls-Royce
ATB: A Global Opportunity Stig A. Hagen, Managing Partner, Kanfer Shipping
Luncheon | Expo Open
Panel: LNG Bunkering for the Inland Waterways Shaunt Hartounian, Vice President, Business Development & Strategic Initiatives, Eagle LNG Partners Alisa Praskovich, PMP, CPE, Manager, LNG Business Development, Crowley LNG
The Future of ATBs Robert Hill, Principal, Ocean Tug & Barge Engineering Corp. Mike Complita, PE, Vice President Shipyard Services, Elliott Bay Design Group
Luncheon | Expo Open
Integrated Propeller & Rudder Design for Increased Propulsive & Maneuvering Performance Jonas Backstrom, Sales Manager, KaMeWa Propellers, Rolls-Royce AB
Energy Break | Expo Open
Puerto Rico and The Jones Act Charles Papavizas, Esq., Partner, Winston & Strawn LLP John D. McCown, Founder, Blue Alpha Capital
First in a New Series of ATBs Capt. Jim Demske, Port Captain/New Construction, The Vane Brothers Company Greg Castleman, President, Castleman Maritime Cory C. Wood, Vice President and Principle Naval Architect, Bristol Harbor Group
Cocktail Reception | Expo Open Screening of Documentary “Barge” Sponsored by NETSCo A film by Ben Powell, the documentary “Barge” evocatively depicts the lives of the Mississippi River’s crew over 28 day shifts, shuttling cargo back and forth along America’s waterway. (1 hour, 11 minutes.)
28 Marine Log // April 2018
ATB LNG Bunker Barge Dave Waller, President, Waller Marine
Port of Philadelphia James Walsh, Senior Director of Terminal Operations, PhilaPort
Adjourn Program subject to change.
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Schoellhorn-Albrecht, a veteran-owned small business, designs and manufactures deck machinery, capstans, anchor windlasses, winches, deck fittings and accommodation ladder systems for both commercial and military customers. In addition to a standard product line, we also specialize in designing and manufacturing castings, fabrications, and specialized machinery. Manufactured in USA. www.schoellhorn-albrecht.com
Blue Guard Innovations Blue Guard Innovations specializes in manufacturing solid-state bilge pump switches, sensors, and alarm technology. Our product is more reliable than mechanical float switches, designed to prolong bilge pump life, and has a uniquely integrated oil and fuel sensor that alerts the owner to oil and fuel presence. www.bluebgi.com
Dynamat Inc. No two boats or docking facilities are identical so Dynamat manufactures its fender mats to the dimensions that suit you best in sizes ranging from 2 x 10 ft. (0.61 x 3.05 m) to 16 x 28 ft. (4.88 x 8.53m). Flexibility that is unique in the industry. www.dynamat.qc.ca
Electronic Marine Systems Electronic Marine Systems, Inc. (EMS Marcon) specializes in providing engineered control system consoles, tank gauging, and vessel automation solutions for use on board military and commercial vessels around the world. www.emsmarcon.com
Elliott Bay Design Group Elliott Bay Design Group (EBDG) is a full-service, employee-owned naval architecture and marine engineering firm that supports tug and barge operators and shipyards in the U.S. and abroad. Driven by an understanding of the changing regulatory environment, our team of marine experts offers an array of services to meet our customers’ unique needs. www.ebdg.com
Fireboy Xintex We are a leading supplier of fire suppression and fire detection systems for the marine industry, as well as other industrial applications. We also manufacture a broad line of carbon monoxide and gas detection systems. www.fireboy-xintex.com
Kraft Power Corporation Kraft Power was founded in 1965. We are leaders in the field of generators, transmissions, engines, and full service, parts and accessories. Our marine group includes Kohler generators, Hamilton Jet Drives, GE diesel engines, Lufkin gearboxes, and Heinzmann products. www.kraftpower.com
Schottel, Inc. / Schottel Canada, Inc. SCHOTTEL is an innovative group of companies specializing in the development, design, production and marketing of azimuthing propulsion and maneuvering systems, as well as complete propulsion systems with power ratings of up to 30 MW for vessels of all sizes and types. www.schottel.com
Shamosh Equipment Corp. Shamosh Equipment is a leading supplier of barge pumps and hot oil heaters engineered for the tank barge industry. Established in 1979, we are authorized sales agents for: Flowserve-Byron Jackson, Leistritz Corporation and Volcanic Heaters.
VideoRay VideoRay is the largest volume producer of portable inspectionclass ROVs, designed to quickly and efficiently inspect and assess ships, harbors, and other water vessels. www.videoray.com
Wärtsilä North America, Inc. Wärtsilä is a global leader in smart technologies and complete lifecycle solutions for the marine and energy markets. By emphasizing sustainable innovation, total efficiency and data analytics, Wärtsilä maximizes the environmental and economic performance of the vessels and power plants of its customers. In 2017, Wärtsilä’s net sales totalled EUR 4.9 billion with approximately 18,000 employees. The company has operations in over 200 locations in more than 80 countries around the world. Wärtsilä is listed on Nasdaq Helsinki. www.wartsila.com
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SPECIAL DELIVERY Vigor adds $20 million drydock from South Korea
h e C h i n e s e h e av y l i f t s h i p Zhen Hua 33 made a very special delivery last month from South Korea to Vigor Industrial in Seattle that should make the shipyard’s commercial and government customers very happy. That’s because the special delivery is the 640 ft long, 20,000long ton lift capacity drydock Evolution. Last year, Vigor purchased the drydock for $20 million to address a shortage of drydock capacity in the region. It is the third and largest drydock at Vigor’s Harbor Island facility in Seattle. The addition of the new drydock should help Vigor service vessels for Washington State Ferries, the U.S. Coast Guard, and Navy, as well as strengthen and expand its customer base. One of the customers that will benefit from the new drydock comes from the growing North Pacific commercial fishing market, Trident Seafoods. The company is among the largest seafood companies in the U.S. and operates a fleet of fishing vessels. “At Trident it’s important to our values and culture that we support our local communities. The new Vigor drydock in Seattle provides the extra capacity we need in the region,” said Trident Seafoods CEO Joe Bundrant. “It allows us to keep more of our ship repair work in Seattle and
Compiled by Marine Log Staff supports our maritime community and the jobs it provides.” A major repair and conversion project recently completed at Vigor’s Harbor Island facility in Seattle included a midlife extension and repower for R/V Thomas G. Thompson, the 274-foot research vessel
The new drydock allows us to keep more of our ship repair work in Seattle and supports our maritime community. operated by the University of Washington. The $45 million project was funded by the U.S. Navy’s Office of Naval Research and the National Science Foundation and included a complete overhaul of the propulsion, navigation and core engineering systems as well as improvements to lab space and science upgrades. The vessel was delivered to the University of Washington in December 2017.
This month, Vigor Seattle will perform a three-week drydocking on the Alaska Ocean for Glacier Fish Company. The docking includes preservation of underwater hull, freeboard and topside. Other work includes rudder removal and re-installation, propulsion shaft and propeller removal and inspection and sea valve overhauls. At its Portland facility, the complete re-power of the M/V Matanuska is underway. The 408-foot-long, steel-hulled, twin-screw, diesel-powered passenger and vehicle ferry is owned and operated by the State of Alaska. This $27 million project includes replacement of major shipboard systems including main propulsion engines, reduction gear, CPP and shafting, steering gear, main ship service switchboard, motor controls centers and machinery control, alarm and monitoring systems. Vessel redelivery is planned for the first quarter of 2019. The yard also recently performed a tandem docking of the National Oceanic and Atmospheric Administration (NOAA) Rainier and Oscar Elton Sette. Major work items included underwater hull and freeboard preservation, steel repairs and miscellaneous piping and machinery repairs. Vigor was recently awarded a fiveyear IDIQ for drydock repairs to NOAA April 2018 // Marine Log 31
Ship Repair vessels in Oregon and Alaska. Additionally, Vigor won a $35 million firm-fixed-price, indefinite-delivery/indefinite quantity contract to prepare for and accomplish repair and alteration requirements in support of upcoming dry-docking selected restricted availabilities (DSRA) for DDG 51-class destroyers. The DSRAs will be performed at Vigor’s facility in Seattle, with completion by September 2020.
WETA Work On June 5, residents in the nine Bay Area counties will hold the fate of ferry expansion in San Francisco in their hands when they vote on Regional Measure 3. If approved, the measure would provide $300 million for capital projects and up to $35 million in annual operating expenses for the Water Emergency Transportation Authority (WETA) for new vessels, new terminals, and the expansion of its existing services.
Besides its current newbuilding plans to meet the growing service’s expanding ridership—it carried 2.7 million passengers last year—WETA is also undertaking midlife refurbishments of its existing fleet. Funds from another measure approved by Alameda County voters are expected to fund the refurbishments of the M/V Peralta this year and the M/V Scorpio next year. Marine Group Boat Works (MGBW) was recently awarded a $4 million contract at its Chula Vista, CA, facility. MGBW has formed a project team that has extensive experience with Coast Guard-inspected passenger vessels and intimate knowledge of WETA’s ferry fleet—it has performed several refurbishments of them over the past five years. The work on the Peralta will include: Hull and machinery inspections; replacement of steering and engine controls; Renovation of the heads and galley; resealing and replacement of cabin windows; exterior coating finishes; reconfiguration
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32 Marine Log // April 2018
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of the pilot house, including replacement of the navigation electronics; newly fabricated hull sections; overhead replacement; Interior cabin renewal; replacement of passenger doors; and a main propulsion midlife overhaul. It is peak refit season in San Diego. Between both of its facilities, Chula Vista and National City, MGBW has over 30 major projects underway ranging from long-range sportfishing boats to tugboats to barges to military crafts to private superyachts. Recently, MGBW was awarded by the Coast Guard two major overhauls of 85 ft patrol boats, the Petrel and the Tern. The combined value of both contracts is just over $1 million. Nearing completion is the repower and maintenance of the Golden Gate Bridge & Transportation District’s San Francisco passenger ferry M/V Mendecino, a 149 ft, Subchapter K vessel capable of accommodating 450 passengers. From cradle to grave, MGBW has had the
Ship Repair opportunity to welcome Boat 1 of the fleet of 114-foot aluminum Range Training Support Crafts (RTSC) that it built for the Navy back to its facility for life-cycle maintenance. From 2008 through 2012, MGBW constructed four RTSCs that became the replacement fleet for the Navyâ€™s Torpedo Weapons Retrievers (TWR). Three boats are homeported in San Diego and one is in Japan. Within its new construction division, MGBW is currently constructing two 60-ft aluminum Navy dive boats. To date, MGBW has constructed and delivered a total of 11 dive boats for the Navy.
MSC Ships Head to Detyens for Repairs The dry cargo ammunition ship USNS Lewis and Clark (T-AKE 1) will undergo a 94-day shipyard availability for its regular overhaul and drydocking at Detyens Shipyards Inc., Charleston, SC. The shipyard won a $20.7 million contract for a 94-calendar day shipyard availability for the regular overhaul and drydocking of USNS Lewis and Clark (T-AKE 1). Under the $20.7 million contract, Detyens Shipyards will provide deck house cleaning and painting (near white blast); cargo crane 10-year retest survey; hydraulic hoses replacement and recertification; lifeboat certification and falls renewal (5 year); docking and un-docking vessel; propeller shaft and stern tube inspection; underwater hull cleaning and painting; freeboard cleaning and painting (near white blast); freshwater stern tube lubrication system installation; sliding block and transfer head refurbishment; chain replacement; and flight deck nonskid renewal. Just two weeks prior to the award of the Lewis and Clark contract, Detyens received a $9.1 million contract for repairs to the Navy oiler USNS John Lenthall (T-AO 189) that will see the tanker in the shipyard for 42 days.
MGBW is performing an extensive refubishment of the 17-year-old aluminum passenger ferry Peralta under a $4 million contract In Pascagoula, MS, VT Halter Marine recently dedicated its new $10-million blast and paint facility, which consists of a 304 ft long x 120 ft wide main building with adjacent areas for blasting, and painting of small parts of large ship sections. The facility has dual independent grit recovery and cleaning processes to reuse the abrasive media. It can accommodate ship sections as large as 105 ft wide x 80 ft long x 40 ft high.
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April 2018 // Marine Log 33
ith more than a third of the global offshore service vessel fleet stacked, the offshore oil and gas market “is suffering from the worst downturn in history, and despite some players calling it the bottom, no one really knows,” says VesselsValue’s Head of Offshore Charlie Hockless. While he does see some positivity in firming oil prices, Hockless says there is an “issue of oversupply within almost every subtype of offshore asset.” To address that, OSV owners are now coming around to the idea of ridding their fleets of older tonnage. According to data compiled by VesselsValue, which assesses the current values of ship and vessel tonnage, OSV scrapping jumped 153% this year over the same period last year. Forty-three OSVs were sold for scrap thus far this year as compared with just 17 for the same period last year. Tidewater scrapped 13 this year alone. “This increase shows owners are biting 34 Marine Log // April 2018
By Nick Blenkey
the bullet and realizing that if they are to survive these poor market conditions, they need to think of the future market rather than the market of the past,” says Hockless. While current owners are wringing out older tonnage to address the question of oversupply, some new players are also positioning themselves for a market recovery. “I suppose the difference in the general market situation between now and last year,” says Hockless, “is that we’ve seen activity increase and new money enter into the market. The vessels that are being transacted are no longer just old useless tonnage, but modern tonnage with a future in the market.” A good example is Germany’s familyowned Hartmann Group, which recently expanded its fleet to 13 with the acquisition of two relatively young UT 786 CD design Anchor Handling Tug Supply (AHTS) vessels from E.R. Offshore. “There is some positivity,” notes Hockless, “but it is hard to tell how the next 12 months will pan out. In my opinion, market players
are facing up to the reality of the situation, and some are diversifying and banking on renewables growth, but the orderbook overhang and the huge quantity of vessels in lay up could be the greatest obstacle facing full offshore market recovery.”
Harvey Gulf Files For Chapter 11 Challenging market conditions have forced Harvey Gulf International Marine, Inc., New Orleans, LA, to file a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S, Bankruptcy Court for the Southern District of Texas. As a result of the decrease drilling activity in the Gulf of Mexico, vessel utilization and day rates continued to spiral downward, leading to overcapacity and shrinking operator margins. When the downturn persisted into 2017 with no signs of imminent recovery, management realized that their cost-cutting efforts to date could no longer adequately shield Harvey Gulf from the pressures facing the rest of the sector.
Positive signs emerge in North Sea, but OSV sector will remain challenged
OFFSHORE industry on its head is the emergence of light tight oil (LTO) from U.S. shale. In its recently released report “Oil 2018: Analysis and Forecasts to 2023,” the IEA (International Energy Agency) says that this new oil source has brought fundamental change in the nature of the global oil markets and that its latest analysis shows that LTO will continue to surge, driving up total liquids production to nearly 17 mb/d by 2023, a turn of events that solidifies the U.S. as the leading oil producer in the world. The IEA also says that upstream investment (which includes exploration and production) “shows little sign of recovering from its plunge in 2015-2016, which raises concerns about whether adequate supply will be available to offset natural field declines and meet robust demand growth after 2020.” That robust demand growth predicted by the IEA is needed to meet a continuing demand for oil as a petrochemical feed stock which will more than offset declines in oil’s use as a transportation fuel. Today there are signs that in some areas, notably the Norwegian sector of the North Sea, E&P activity is starting to pick up modestly, but as far as the offshore supply industry is concerned, it’s a little early to get excited.
Tidewater Expects 2018 To “Remain Challenging”
Harvey Gulf is asking the court to approve a prepackaged plan that is, essentially, a debt for equity swap that will convert a substantial part of its approximately $1.22 billion in secured debt outstanding under the Credit Agreement into a new $350 million first lien term loan facility. “Importantly,” says the filing, “trade creditors/general unsecured creditors are unimpaired under the Plan and will receive payment in full on account of valid claims in the ordinary course of business.” This, says, the filing will put the company on a level playing field with other companies in the sector that have already restructured and will continue to position it ahead of other players that have not deleveraged.
U.S. Shale Oil Turns Market On Its Head Though Harvey Gulf is a U.S. Gulf of Mexico player, the situation it finds itself in is pretty much the same in all offshore regions. What appears to have turned the whole
That reluctance to get too carried away by improving conditions in the North Sea was reflected by comments from one-time Hercules Offshore executive John Rynd, who took over the reins of Tidewater as President and CEO this past February. Tidewater, Inc.—at one time the colossus of the industry—emerged from Chapter 11 bankruptcy on July 31, 2017, and posted a net loss for the quarter ended December 31, 2017 of $23.6 million revenues of $104.5 million. Following the release of Tidewater’s results for the quarter, Rynd told analysts in a conference call, “We expect the global OSV market to remain challenging in 2018. As a result, the management team will continue to work to position the company for sustained profitability and future growth. “While the worst seems to be behind us at this point,” Rynd also said, “we are looking to 2019 and beyond for any significant increase in offshore exploration and development drilling, particularly in deepwater and ultradeepwater. However, with the competitive fleet, the competitive cost structure, a global operating footprint and a financial profile that is characterized by low leverage and a
strong liquidity position, we believe that Tidewater is well positioned for an eventual recovery in the offshore sector.” Whe ther Tidewater is the “mar ke t leader” it once was depends on what you’re counting. According to data compiled by VesselsValue for 2018, privately held Edison Chouest Offshore (ECO), Galliano, LA, has the most valuable fleet of OSVs, with 206 vessels valued at $1.965 billion. Tidewater was second with 215 vessels valued at $1.112 billion. Overall, says VesselsValue, the top ten players own 1,209 vessels and other smaller players own 6,413. See the accompanying table (page 36) on “OSV Fleet Valuations, By Owner” for more details. By Tidewater’s accounting, its fleet at the end of last year comprised 140 active vessels, 89 stacked vessels and 8 leased vessels. The company’s U.S.-flag fleet now includes only 9 vessels, though those will soon be joined by the second of two newbuild Platform Supply Vessels (PSVs). The newbuild is being completed by Gulf Island Shipyards, which inherited the order when it acquired Leevac. Still with just 10 Jones Act qualified vessels, Tidewater is no longer a dominant player in the U.S. GoM. Underscoring how far the company has changed, most of its headquarter operations are now in Houston and, CFO Quinn P. Fanning told analysts, “We expect to be downsizing, if not ultimately closing the New Orleans operation.”
Diversification, Corporate Tax Cuts Paying Off SEACOR Marine Holdings Inc., Houma, LA, reported results for its fourth quarter and year ended December 31, 2017 that were a lot more positive than many. Though it turned in a net loss of $32.9 million for the year that was a lot better than the prior year’s loss of over $132 million. And, thanks largely to income tax benefits of $50.7 million recognized as a result of the new corporate tax cut for the fourth quarter of 2017, the company showed a profit of $29.0 million, compared with the $61.5 million loss reported for the equivalent 2016 quarter. SEACOR Marine CEO John Gellert says that the company continues to see strengthened demand for platform and well services performed by its liftboat fleet both domestically and internationally, which helped to drive its improved results and that it enters the 2018 maintenance and construction season in the GoM with a larger, more capable liftboat fleet that is positioned to meet growing demand. He also noted a “tightening market for active vessels” in the PSV sector. He said that the company remains “optimistic that higher oil and natural gas prices April 2018 // Marine Log 35
OFFSHORE OSV Fleet Valuations, By Owner Company
Total Value $ m
No. of Vessels
Total Value $ m
Total Value $ m
Edison Chouest Offshore
Hornbeck Offshore Services
Harvey Gulf Marine
Swire Pacific Offshore
Maersk Supply Service
are helping build a foundation for an eventual recovery in offshore activity worldwide.” And, as we report in our Offshore Wind feature in this issue, SEACOR Marine is moving on the renewal energy services sector. Already a player in the offshore wind market, SEACOR Marine’s Falcon Global unit struck a cooperative agreement with Norway’s Fred. Olsen Windcarrier to “exclusively contribute vessels and marine/ installation crews to the market and operate a full spread of offshore wind installation and feeder vessels.” Others in the traditional oil and gas sector might well follow suit.
Quartet Plays As One; North Sea Pick Up Last June saw the merger of the Norwegian shipowners Solstad Offshore, Farstad Shipping, Deep Sea Supply and Rem Maritime into Solstad Farstad. With some 100 vessels, its activities are mainly concentrated on the markets in Europe, Brazil, Australia, and Asia. Solstad Farstad says that “the recent increase in the tender activity level gives reason to believe that the market has bottomed out, and that the activity level will continue to grow going forward. The pick up in the North Sea has Gulfmark Offshore thinking positive, too. The Houston-based owner says its “significant exposure to the recovery-leading North Sea market is proving advantageous. Tendering activity for vessels is up substantially in the North Sea. High-end day rates for premium tonnage in the upcoming summer are approaching $17,000 per day. This means average term rates for 2018 should be well 36 Marine Log // April 2018
above the 2017 full-year average term rate of approximately $8,000 per day...The North Sea has recovered to the point where we are seeing the typical calendar year seasonality, and our expectation is that we will see the strongest second and third quarters in years.”
Bourbon With A Splash Of Red Ink For its part, Paris-headquartered industry giant Bourbon Corporation in February announced it was to shed 41 of its 65 oldest vessels and take an expected impairment loss of about EUR170 million (about $210 million) on their sale. The sale is part of an action plan called “#BOURBONINMOTION” that will see Bourbon’s activities reorganized into three distinct affiliates: Bourbon Marine & Logistics, Bourbon Subsea Services and Bourbon Mobility. Apar t from rearranging the corporate deck chairs, Bourbon’s survival plans include “capitalizing on the digital revolution.” Bourbon Marine & Logistics will invest 75 million over three years to connect 132 of its modern supply vessels, known as the “smart fleet.” The aim here, apparently, is to move them from operating in a vesselcentric mode where they are hired out on a dollars per day basis, to making them part of a system in which Bourbon would become a logistics services integrator getting paid on a dollars per ton or cubic meter basis. Singapore-based Swire Pacific Offshore, which operates in every offshore sector outside the U.S., saw its 2017 revenues fall by 28 percent, but cut its operating loss by 31 percent. However, its adjusted attributable loss, after impairment charges and gain/
loss on asset disposals, increased by 26% to HK$1,224 million. Average fleet utilization rate was 62.5 percent. Average daily charter rates fell by 19 percent to US$18,800. The company told analysts that the offshore energy market remained difficult. An increase in rig fixing activities in the second half of 2017 resulted in an improvement in vessel utilization rates, but charter hire rates were still under pressure due to oversupply of vessels and Swire Pacific Offshore continued to reduce its operating costs, and to dispose of and stack vessels.
Topaz, Shinier Than Most Dubai-based Topaz Energy and Marine may be best known to Marine Log readers for the series of Vard-built module carriers used to transport oil field modules for Tengizchevroil, a joint venture between Chevron, ExxonMobil, KazMunayGas and LukArco that operates the Tengiz oilfield in the northeast of the Caspian. Chairman Samir J. Fancy says that Topaz’s market outlook is more positive going into 2018, although difficult industry conditions are expected to endure during the year. “We do, however, anticipate a positive trend in the utilization of vessels and a further improvement in our ability to build contract cover. We have re-activated seven vessels from warm layup during 2017, conserving and building on Topaz’s industry-leading backlog of $1.5 billion.” In the last year, Topaz has secured a number of contract awards, mostly from the Caspian, including a $100 million contract awarded by Dragon Oil.
Hywind Scotland is the world’s first floating offshore wind park
Breeze By Shirley Del Valle, Managing Editor
East Coast States Look to a Future Powered by Offshore Wind
Statoil/ Øyvind Gravås
ffshore wind, long an elusive dream for the U.S., is finally picking up speed. The sector has the potential to be a key driver for job growth, investment and innovation, and would be a welcomed breath of fresh air for the shipbuilding industry. The market has become more of a possibility thanks to the advancements in technologies by European-based companies that have spearheaded the offshore movement for the last two decades. All this innovative work on the European front has helped project costs go down and enabled offshore wind farms to spring up in a variety of forms and bodies of water. The U.S. Department of Energy (DOE) states that roughly 80% of the U.S. electricity demand comes from coastal states—so it makes sense that states on the coast like Maine, Massachusetts, New York, and New Jersey are leading the charge when it comes to implementing offshore wind plans for their respective states. Among the DOE’s most notably funded projects is the New England Aqua Ventus I by the University of Maine. The demonstration project is a 12 MW floating offshore wind project comprised of two 6 MW
turbines on VolturnUS, a floating concrete semi-submersible hull designed by the University of Maine (UMaine). According to the school, the hull and turbine are held in position by three marine mooring lines that are anchored to the seabed. The electrical generation will be connected by subsea cable to the Maine power grid on shore. UMaine expects all permits to be obtained this year with fabrication of the VolturnUS platform occurring next year. The goal is to have the project operational by 2020. Another project funded by the DOE is the Lake Erie Offshore Wind Icebreaker Project, Icebreaker Windpower, Inc., led by Lake Erie’s Energy Development Corporation (LEEDCo) in partnership with Fred. Olsen Renewables. The project is the first offshore wind facility in the Great Lakes and the first freshwater wind farm in North America. Icebreaker Wind will use a Mono Bucket solution developed by Universal Foundation, a Fred. Olsen company, which combines the benefits of a gravity base, a monopile and a suction bucket. The use of the Mono Bucket will make it so that no pile driving is needed—reducing both the cost and environmental impact, says LEEDCo’s Director of Sustainable Development, Beth A. Nagusky.
Instead, the solution uses a suction pump to reach the desired depth, explains President of LEEDCo, Dr. Lorry Wagner—once there the Mono Bucket is equalized into ambient pressure level and becomes solidly embedded onto the seabed. The installation process is also a fast one, he adds, with installation happening in less than half a day. The project is currently in the thick of the permitting process with its federal permits on track. On the state level, however, LEEDCo is currently waiting on a state permit from the Ohio Power Sighting Board. According to Nagusky, the permit application was filed roughly 14 months ago with the Board on February 2017. If Icebreaker Wind is allowed to reach its full potential, it could create over 500 jobs and provide a $168 million economic impact over the project’s 25 year life. And further create up to 8,000 new jobs in the Northeast Ohio region and potentially inject $14 billion into the economy—with room for more once the industry grows.
A Revolution in Massachusetts American offshore wind developer and the operator of Block Island Wind Farm, the only offshore wind farm operating in the U.S., Deepwater Wind is kick starting its April 2018 // Marine Log 37
OFFSHORE WIND A.K. Suda Designs Wind Turbine Installation Vessel A.K. Suda Ltd. has built a solid reputation in the offshore oil and gas market, but now the Metairie, L A, naval architec t and marine engineering firm has set its sights on developing new classes of vessels for a new energy market—offshore wind. One design developed by A.K. Suda Ltd. is the Suda DP2 class JG10000 WTIV, which would be able to operate in water depths of 60 meters. The jack up type vessel would be fitted with a main deck crane of 1,800 tons LEC, one 100-ton auxiliar y crane, have a variable load of 11,000 tons, and deck area of 3,900 m 2 . It would have accommodations for 112, with the capacity to carry eight 8 MW wind turbines, with towers, blades, and components. CEO Ajay Suda says his company has teamed up with the largest owner and operator of liftboats, All Coast, LLC, Lafayette, LA, and is working with “all the major offshore wind farm developers and EPCI contractors” in the U.S. on commissioning the first purposebuilt Wind Turbine Installation Vessel (WTIV) for the U.S. market. Suda say his firm is “evaluating bids from several shipyards” regarding the construction of the vessel, which could take 36 to 42 months to build.
Powerful Wind Alliance Falcon Global LLC, a subsidiary of Seacor Marine Holdings, Galliano, LA, will team up with Fred. Olsen Windcarrier AS, a wholly owned subsidiary of BONHEUR ASA, to “exclusively contribute vessels and marine/installation crews to the market and operate a full spread of offshore wind installation and feeder vessels.” The vessel spread will shorten installation time and reduce cos t s, which will feed renewable energy onto the grid sooner than alternative installation methods. In addition, the vessel spread will enable access to the existing por ts and infrastructure.
38 Marine Log // April 2018
Revolution Wind project for the state of Massachusetts. Last month, the company announced it had identified three south coast cities as possible locations for the fabrication of the 1,500-ton steel wind turbine foundations—New Bedford, Fall River and Somerset. The 400-megawatt Revolution Wind project is now under review by the state and utility officials. Under Deepwater Wind’s plan, 2,300 regional jobs could be created with a nearly $300 million economic impact for the region. “No company is more committed to building a local offshore wind workforce than us,” said Deepwater Wind CEO Jeffrey Grybowski. “We launched America’s offshore wind industry right here in our backyard. We know how to build offshore wind in the U.S. in the right way, and our smart approach will be the most affordable solution for the Commonwealth. This is about building a real industry that lasts.” Deepwater Wind also announced its actively seeking proposals from Massachusetts boat builders for the construction of the purpose-built crew transfer vessels (CTV) for Revolution Wind. As you may remember, Deepwater Wind commissioned the only offshore wind CTV built for America, Atlantic Wind Transfer’s Atlantic Pioneer. The vessel was built by Blount Boats, Warren, RI, and serves the Block Island Wind Farm. If approved, the project, likely to be built on Deepwater Wind’s federal lease site southwest of Martha’s Vineyard, would begin in 2020 with operations to start 2023. And just as we were going to press, the Bureau of Ocean Energy Management announced a Notice of Intent to prepare an Environmental Impact Statement for the construction and operations plan submitted by Vineyard Wind LLC that would allow it to construct and operate a 800 MW wind energy facility offshore Massachusetts.
Empire Wind State of Mind Meanwhile, over in the Empire State, Governor Andrew Cuomo’s New York State Master Plan implements the procurement of at least 800 MW of offshore wind energy over the next two years. The goal for Governor Cuomo is to develop 2.4 gigawatts of offshore wind by 2030, enough to power up to 1.2 million homes with clean energy— and a large part of the state’s ambitious plan to generate 50% of the states electricity via renewable energy sources by 2030. Under Governor Cuomo’s plan, offshore wind will bring more clean, renewable energy to Long Island and New York City, areas that account for a total of 45% of the
state’s annual electricity use. Last year, Statoil, now called Equinor, acquired a lease for a federal offshore wind area off the coast of Long Island. The Empire Wind project encompasses nearly 80,000 acres in federal waters 20 miles south of the Rockaways in Long Island. Statoil currently has a number of offshore wind projects in the works including Hywind Scotland, the world’s first floating offshore wind park. At his State of the State address, Governor Cuomo also announced a commitment of $15 million to train the local workforce for “good-paying jobs needed to build offshore wind and develop port infrastructure.” Neighboring state New Jersey is also back on track with its offshore wind plans. New Jersey Governor Phil Murphy is making good on his campaign promise to make offshore wind energy a top priority for his administration. Despite the enactment of the Offshore Wind Economic Development Act (OWEDA) in 2010, little progress was made towards developing offshore wind off the coast of New Jersey during his predecessor Chris Christie’s Administration. Under the executive order, the New Jersey Board of Public Utilities (BPU) has been directed to fully implement OWEDA and begin moving the state towards its goal of 3,500 megawatts of offshore wind energy generation by 2030. The plan also directs BPU President Joseph Fiordaliso and New Jersey Department of Environmental Protection Commissioner Catherine McCabe to work together to establish an Offshore Wind Strategic Plan for the state. The plan, according to the Governor, will focus on the critical aspects of offshore wind development, job growth, workforce development, data collection and appropriate determination of facilities, and ensuring natural resources are protected. “Our goal is to grow offshore wind in a way that creates jobs and reduces our dependence on fossil fuels,” said Governor Murphy during the signing of the executive order. According to Ocean Wind—the New Jersey offshore wind project by Ørsted—“New Jersey has some of the best offshore wind conditions in the world. And a third of the potential offshore wind resource for the U.S. is on the east coast.” Ørsted, which currently holds a lease for an offshore windfarm in the Atlantic Ocean, along the eastern seaboard 10 miles from the Jersey shore, says the area has the capacity for more than 1,000 MW, with the potential to power a half a million homes and businesses in the state. To bring the project to fruition, the company will open an office in Atlantic City next month.
Trump Nominates Vice Adm. Schultz for USCG Commandant President Donald J. Trump has nominated Vice Admiral Karl L. Schultz to be the 26th Commandant of the U.S. Coast Guard and to be promoted to Admiral. Grand Bahama Shipyard has named David Skentelbery its new Chief Executive Officer. Joe Hudspeth has been appointed the new Director of Business Development, Global Marine for the Power and Propulsion Solutions division at BAE Systems. He leaves his position as Vice President of Business Development at shipbuilder All American Marine, Inc., where he has been for over 12 years.
Marine Jet Power has named Kelsey Nemeth its new Marketing Manager. Most recently, she served as Marketing Coordinator for Brunswick Commercial & Government Products.
Expedition cruise operator Hurtigruten has promoted Beth Mercier to Director, National Accounts for the Americas Region. She will work to drive additional growth for the company in the Americas.
Naval architect and marine engineer Frank Basile passed away this past February. He was the founder of Entech & Associates (Entech Design LLC).
Jo Vanhoren has been appointed President and Chief Executive Officer of Alfa Laval Inc.
Sea Machines Robotics has named Chris Sotzing its Director of Engineering. He will be responsible for ensuring the successful development and deployment of the company’s Sea Machines 300 technology system, as well as managing the engineering team.
Spill Prevention and Response for Oil and Hazardous Materials in the Marine and Inland Environment OREGON CONVENTION CENTER
Montgomery McCracken’s Maritime and Transportation practice group has elected two members of its firm to Partnership roles—Robert E. O’Connor and Davis Lee Wright. Mr. O’Connor specializes in environmental matters. While Mr. Wright’s focus is on corporate restructurings and maritime bankruptcies.
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April 2018 // Marine Log 39
TECH NEWS Rolls-Royce Launches “Game Changer”
Smart Move: Wärtsilä to Acquire Transas Embracing the role of “digital disruptor” in the maritime space, Transas CEO Frank Coles’ vision to shape the future of maritime transportation as we know it took a major turn last month when it was announced that Transas would be acquired by Wärtsilä for EUR210 million. The deal would bring together two companies that share a similar vision of creating a “smart” platform that connects all stakeholders across the entire supply chain, through applications that are secure, smart, and cloud-based. “The Transas team has significant competences in technology, along with a globally recognized leadership position in navigation, simulation and traffic control systems,” says Coles. “Adding these to the extensive, world leading Wärtsilä portfolio of services and products, provides an unparalleled opportunity for a new ecosystem for maritime operations.”
“Combining Transas with Wärtsilä will bring the Smart Marine Ecosystem many steps forward,” says Roger Holm, President, Wärtsilä Marine Solutions. “We can now connect Wärtsilä’s product portfolio, the biggest in the marine industry, with Ship Traffic Control, Simulators, Navigation solutions and fleet operation solutions from Transas. The combined package will further improve the way a vessel can sail in the most cost efficient and environmental friendly way for our customers.” Wärtsilä’s “smart game plan” has most manifested itself in its Smart Marine Ecosystem—a vision whereby smart vessels connect with smart ports and beyond to deliver three fundamental industry benefits: Maximizing the use of resources and operational efficiency; Minimizing environmental impact and risk: and Achieving the highest levels of safety and security. www.wartsila.com
Creating Waves for the Offshore Market General Dynamics Applied Physical Sciences (GD-APS) has developed a wave and ship motion forecasting system that will provide an optimal course and speed recommendation to operators. FutureWaves uses remote measurements of the ocean to identify upcoming large motion events and quiescent periods to support go/no-go decision-making. The system features a custom X-band Doppler radar that is able to measure the orbital motions of the ocean waves around a ship to provide a deterministic forecast of the ship’s motions for minutes into the future. An embedded rapid ship seakeeping simulation tool provides forecasts of the 40 Marine Log // April 2018
associated ship motions, allowing operators to anticipate and respond to upcoming motion events. The FutureWaves technology was originally contracted by the U.S. Navy to support seabasing operations involving transfer of personnel, vehicles, and equipment between ships at sea. This capability has been demonstrated at sea on a number of Navy vessels, ranging in size from 120 ft to 950 ft. There’s now a rollout of the FutureWaves commercial variant. GD-APS is now working through their first contracts with the offshore industry. Check out FutureWaves at OTC 2018: Booth 6711 Futurewaves.APhySci.com
Roll s - Royce believes it has a game-changer on its hands. Its new Rolls-Royce Intelligent Awareness (IA) system acts as an extra set of eyes for the crew— using multiple sensors and intelligent software to help navigators deal with the safety risks they face when operating vessels at night, in bad weather conditions or in congested waterways. The IA system is the first of its kind to be made commercially available that uses data collection to enhance navigational safety and operational efficiency. Essentially, what the system does is fuse data from multiple sources to provide a comprehensive overview of the vessel’s situation, in four User Inter face modes; Vir tual Realit y (2D and 3D ), Augmented Reality and Precision mode. Building on the findings from i t s p a r t i c i p a t i o n i n t h e A AWA (Advanced Autonomous Waterborne Applications) project and customer collaboration programs with Stena and Mitsui O.S.K. Lines, Rolls-Royce has been able to develop technology that creates a 3D map of a vessel based on Light Detection and Ranging (LIDAR). This is a remote sensing method that uses light in the form of a pulsed laser beam to measure distances. It can be linked to GPS data to create 3D environments that allow crews to see what the human eye cannot. Iiro Lindborg, Rolls-Royce, General Manager, Remote & Autonomous Operations, says, “We can use the IA system in any ship where there is a need for better situational awareness. It provides an advisory solution to supplement basic information available from ECDIS and RADAR, with the LIDAR 3D map creating an accurate bird’s-eye view of the surrounding area.”
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April 2018 //5/26/17 Marine8:48 LogAM43
Inflatable PFDs: Comfort and Safety
44 Marine Log // April 2018
Now, in disclosure, I am an authorized dealer, so see me afterwards if you want one. All kidding aside, however, I was amazed at how comfortable an inflatable life jacket can be. Even better, inflatable PFDs are authorized under the LSA Code and SOLAS for use on SOLAS vessels. Now speaking of comfort, one of the most common reasons that drownings occur is that persons do not wear an appropriate PFD. Oftentimes, their reason for not wear-
With the advent of the digital age, I do not think there is any reason why we can’t re-evaluate our lifesaving equipment ing one is that the PFD is not comfortable. In 2015 a crew member fell overboard off of a vessel in the Panama Canal while rigging the pilot ladder. It is common practice to put one’s full body weight on the rigged pilot ladder after rigging to ensure that the ladder is appropriately rigged. Standard practice should include the donning of an appropriate PFD as well as a lifeline. Neither one of these were used, and the faulty pilot ladder gave way, causing the seaman to fall to his death. As a Chief Officer this was a battle that I had with several crew members on several
Matthew Bonvento Senior Manager, Safety, Security, Quality and Regulatory Compliance, Vanuatu Maritime Services Ltd.
ccording to SOLAS, Chapter III, Regulation 7.2: 2.1 A lifejacket complying with the requirements of paragraph 2.2.1 or 2.2.2 of the Code shall be provided for every person on board the ship and, in addition: 2.2 Lifejackets shall be so placed as to be readily accessible and their position shall be plainly indicated. Where, due to the particular arrangements of the ship, the lifejackets provided in compliance with the requirements of paragraph 2.1 may become inaccessible, alternative provisions shall be made to the satisfaction of the Administration which may include an increase in the number of lifejackets to be carried. 2.3 The lifejackets used in totally enclosed lifeboats, except free-fall lifeboats, shall not impede entry into the lifeboat or seating, including operation of the seat belts in the lifeboat. 2.4 Lifejackets selected for free-fall lifeboats, and the manner in which they are carried or worn, shall not interfere with entry into the lifeboat, occupant safety or operation of the lifeboat. The Life Saving Appliance Code (LSA Code) details the technical requirem e n t s f o r l i f e j a c ke t s a n d i n f l a t a b l e lifejackets. According to the LSA Code, Chapter II, Paragraph 220.127.116.11.5 a lifejacket must be “comfortable to wear.” Now for those of us who have stood through countless and seemingly endless Abandon Ship Drills, with the Type 1 boxey Personal Flotation Device (PFD) hanging around our neck, we know that they are not comfortable, unless they’re being used as a pillow. With that said, I recently discovered Spinlock inflatable life jackets.
vessels. Standard “Over the Side” type checklists should include the use of a PFD. However these are often ignored by complacent vessels and crew. Even though the danger is very evident. One reason being that the workvests used may be uncomfortable. A solution to consider is the Inflatable PFD. (Any concerns regarding inflatable PFDs should be addressed prior to purchase.) The question must be asked: What is the reluctance in making use of inflatable PFDs? One driving factor is that they are not thoroughly covered in STCW training. From personal experience, every time I’ve taken an STCW refresher, not once did we ever discuss inflatable PFDs. Of course we climbed into the liferaft and donned immersion suits, we even donned traditional PFDs. But inflatable PFDs were never mentioned. In fact STCW is pretty scant on the training for PFDs in general. But under SOLAS these inflatable’s are allowed. An important consideration to remember is that all inflatable PFDs must meet strict standards under the LSA code as their traditional counterparts. A quick glance at the Underwriters Laboratory website is evidence enough of the strict testing guidelines placed on these PFDs. From buoyancy testing, overpressure testing, puncture resistance testing, and inadvertent inflation testing. Possible contingencies and bad case scenarios are covered. Not to say that things can’t go wrong, but the likelihood is reduced. One glance at the Spinlock youtube page shows evidence that inadvertent inflation is highly unlikely. Granted that this testing is not conducted on each and every unit, but a random sampling. Inflatable PFDs are designed for a variety of uses, including some watersports. With the advent of the digital age and the reshaping of the maritime industry towards economy of space and convenience, I do not think there is any reason why we cannot reevaluate our use of lifesaving equipment to be more user friendly. I would like to thank my colleagues at Spinlock, especially Mr. Jim Turene, for assistance in my research.
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