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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

February 2017

Trump Taps Bilden for SECNAV Rebuilding the Fishing Fleet Risky Business: Cybersecurity

Carnival’s Arnold Donald wears Ocean Medallion


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4E  ditorial Tiny technology will change cruise shipping in a big way


Cruise Shipping The Next Big Thing The cruising industry plans to introduce 26 new ships this year, but the real “game changer” for passengers may be a new wearable technology from Carnival


Commercial Fishing Rebuilding the Fleet Refurbishing or replacing many of the vessels in the U.S. North Pacific fishing fleet offers a significant economic opportunity for naval architects, shipyards, service companies and suppliers


Shipbuilding & IT The Digitalization of Shipbuilding Digitalization is helping transform the shipbuilding industry— increasing automation, improving efficiency and providing operators with data sharing and analysis


Navigation Effective Use of Big Data & Remote Monitoring Operators are now able to take advantage of richer data sets, whether for monitoring engines and related equipment, planned maintenance and parts procurement, or optimizing navigation at sea


Opinion Living With Risk CEO of Transas, Frank Coles, discusses how in order to be effective against cyber-risk, the maritime industry’s approach will have to include all shipboard systems

6 Industry Insights 8 Marine Innovations 10 Inland Waterways

Bright and shining moment to achieve

12 Update

 he Hybrid Connection T Former “Supply Officer of the Year” heads to slammer • Ferry good news continues for Metal Shark • Crowley carries historic cargo from Cuba • America’s largest offshore wind farm gets approved • V DOT awards ferry contract to VT Halter • •

17 Inside Washington President taps Bilden as Navy Secretary in surprise pick 30 Newsmakers Admiral Papp to represent Eastern Shipbuilding in Washington 31 Tech News New Wärtsilä water-lubricated seal for workboats 36 Wellness Column Understanding cholesterol 2 Marine Log // February 2017

Left: Shutterstock/f11photo, Right: Shutterstock/sdecoret


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MarineLoG February 2017 Vol. 122, NO. 2 ISSN 08970491 USPS 576-910 PRESIDENT Arthur J. McGinnis, Jr. PUBLISHER & EDITOR-IN-CHIEF John R. Snyder Associate Publisher Jeff Sutley

Tiny Technology Will Change Cruise Shipping in a Big Way


hether you use a search engine such as Google or a social media network such as Facebook, you are well aware of ad customization. As you browse the internet, web banners tout goods or services based on your web searches or “Likes.” The ads are really approximations of what you might be interested in based on data collected while you were browsing. As we profile in this month’s cover story, “The Next Big Thing,” Carnival Corporation & plc is launching a sophisticated new technology platform that will elevate customer service onboard its ships. The platform, which uses a tiny personal “beacon” device, Ocean Medallion, an app, Ocean Compass, shipboard sensors and screens, and a new OS, will allow the ship’s crew to cater to a passenger’s every whim, making suggestions on food, drinks, entertainment, activities or events based on passenger preferences. Unlike typical algorithms, which aggregate browsing data of users to create profiles to serve up ads and content, the Ocean Medallion profile will be based on preferences entered by the passenger. “Game changing” is how Carnival Corp or at ion & p l c C EO Ar n o l d D on a l d characterized the Ocean Medallion Class. Carnival will roll out the Ocean

Medallion Class this November on board the Regal Princess. Cruise shipping as a whole is going gangbusters, adding new ships—as fast as the current shipyard capacity will allow— a l on g w i t h n e w exo t i c de s t i n a t i on s , imaginative services, and tasty, world class chef-created menus. The current order book for new ships is at record levels—some 70 ships valued at $46.7 billion. Over the next 10 years, the industry is expected to invest an impressive $53 billion in new ships. While not on the scale of cruise ship construction, as we detail in “Rebuilding the Fleet” in this issue, the replacement of the commercial fishing fleet in the Pacific Northwest is already underway, with about $1.6 billion in newbuilds and retrofits expected to be completed over the next 10 years. At a time when U.S. shipyards are scratching for every scrap of work that is welcome news.

WEB EDITOR Nicholas Blenkey CREATIVE DIRECTOR Wendy Williams Art Director Nicole Cassano Graphic Designer Aleza Leinwand MARKETING DIRECTOR Erica Hayes PRODUCTION DIRECTOR Mary Conyers INTERNATIONAL SALES DIRECTOR David Cocoracchio REGIONAL SALES MANAGER Heather Bonato SALES REPRESENTATIVE KOREA & CHINA Young-Seoh Chinn


John R. Snyder Publisher & Editor

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 © Simmons-Boardman Publishing Corporation 2017. 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 or write to: Marine Log Magazine, Simmons-Boardman Publ. Corp, PO Box 3135, Northbrook, IL 60062-3135.

4 Marine Log // February 2017



Marine Log Magazine (Print ISSN 0897-0491, Digital ISSN 2166-210X), (USPS#576-910), (Canada Post Cust. #7204564; Agreement #40612608; IMEX Po Box 25542, London, ON N6C 6B2, Canada) is published monthly by Simmons-Boardman Publ. Corp, 55 Broad St. 26th Floor, New York, NY 10004. Printed in the U.S.A. Periodicals postage paid at New York, NY and Additional mailing offices.

POSTMASTER: Send address changes to Marine Log Magazine, PO Box 3135, Northbrook, IL 60062-3135.


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INDUSTRY INSIGHTS WELCOME TO Industry Insights, Marine Log’s quick graphical overview of the current trends in the global marine marketplace. One trend we highlight this month is the value of the fleets of the Top Shipowning Nations in 2017. According to VesselsValue, the Top Five by Value are Greece with a total fleet value of $84.1 billion, followed by Japan, $80.2 billion, China, $68.3 billion, Singapore, $38.1 billion, and the USA, with $34.4 billion. The fleets of Greek tanker owners lost a value of $11 billion during 2016, while those of U.S. owners—second on the list—lost $4 billion during the year.

Global Shipbuilding, By Market Share, 2015 (Based on Compensated Gross Tons)

Offshore Rigs Operating In U.S. (on or about January 1 of respective year)










2014 55

2015 27

2016 JAPAN,







Source: Statista








Source: Baker Hughes

Top Shipowning Nations, By Value, 2017 TOTAL FLEET



$84.1 billion

$18.6 billion

$15.1 billion




Source: VesselsValue

Recent Shipbuilding Contracts, North America Est. $

Est. Del.




Bollinger Shipyards, Lockport, LA


2,000 hp towboat

Lorris G. Towing


Conrad Shipyard, Morgan City, LA


4,560 hp ATB tug

Harley Marine Services


Eastern Shipbuilding Group, Panama City, FL


3,000 hp towboats

Florida Marine Transporters


Eastern Shipbuilding Group, Panama City, FL


5,000 hp tractor tug

McAllister Towing


Fincantieri Marinette, Marinette, WI


Response Boat-Medium

Government of Jordan


Gladding-Hearn Shipbuilding, Somerset, MA


600-passenger tour boat

Circle Line Sightseeing


Gunderson Marine, Portland, OR


80,000 bbl ATB barge

Harley Marine Services


Horizon Shipbuilding, Bayou La Batre, AL


85 ft ferries




Source: Marine Log Shipbuilding Contracts

6 Marine Log // February 2017


Reel In New Business MARINE LOG helps you reach the right audience. Our readership is composed of vessel owners/operators, shipbuilders, naval architects and other key marine decision-makers who act on what they see in Marine Log. Put your message where it counts most—Marine Log.

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act on Marine Log ads and editorial of Marine Log subscribers are vessel owners/ operators, shipbuilders and naval architects

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Marine Innovations Alphatron Marine/JRC Unveils Next Generation of Equipment: A New Radar and Communication Tool Alphatron Marine and JRC’s AlphaScan 5900 is just one on the group’s latest offerings. The radar, available with 19-and 26-inch proprietary displays, has a wide range of X- and S- band scanners. The system is controlled by a smart multi button/trackball, while dual Blizzard processors offer TT and radar in the background and tracking zoom outside the PPI. Meanwhile, the group’s AlphaEye offers the capability to have an extra set of eyes onboard—allowing for support specialists to be standing by globally and remotely, 24/7.

Cathelco Providing Optimum Corrosion Protection for a New Generation of Cruise Ships The latest Quantum class ships being built for Royal Caribbean by Meyer Werft will be equipped with Cathelco’s marine growth prevention (MGPS) and impressed current cathodic protection (ICCP) systems. The MGPS system is designed to prevent bio-fouling in seawater pipework serving the main engines and the ancillary systems. The system operates with a small concentration of copper resulting in a system that is environmentally benign. Meanwhile, the ICCP system will be installed to protect the underwater hull surfaces against corrosion.

Evac Debuts Standardized Reverse Osmosis Plants for Small Vessels The Evac Group has unveiled ROSYS M, a new desalination plant using reverse osmosis for small passenger vessels, merchant vessels, naval ships, offshore vessels and platforms. The new ROSYS M—the “M” stands for mid-sized— reverse osmosis plant product range now includes plants with daily freshwater generation capacity of 30, 60, 90 or 120 cubic meters per 24-hour period. The system is modular, enabling clients to select and combine modules for their own custom solution to help meet requirements.

Spears Manufacturing Company OceanTUFF CPVC Marine Drainage System Awarded U.S. Coast Guard Approval Known for its thermoplastic piping system innovations, Spears Manufacturing Company offers OceanTUFF, a CPVC Marine Drainage System. Recently awarded U.S. Coast Guard approval, OceanTUFF provides a durable, lightweight and cost effective alternative to traditional drainage materials used in marine applications. OceanTUFF meets the low flame, smoke and toxicity requirements of the 2010 FTP Code and may be installed in concealed spaces in accommodation, service and control spaces. OceanTUFF also has ABS Type Approval.

Karl Senner, LLC Provider of Quality Marine Propulsion Systems Launches New Website Karl Senner, LLC provides the maritime community with high quality marine propulsion systems. Premium products, backed by superior service allow customers to optimize vessel performance, safety, and operating hours. Its recently launched new website highlights its history, product offerings, services, and customer testimonials. Karl Senner, LLC represents Reintjes Gearboxes, Steerprop Azimuth Thrusters, and EPD Electrical Systems. Customers can also fill out a “Product Inquiry” form to request drawings or pricing for project-specific applications. 8 Marine Log // February 2017

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inland waterways

Bright and Shining Moment to Achieve

10 Marine Log // February 2017

actually mirrors President Trump’s 10-year timeframe) would add another 35,000 jobs and $14 billion in additional incomes over a decade, and would also decrease overall system construction costs. The lock and dam system was largely constructed during the New Deal era. But unfortunately, over more recent years, funding on our waterways projects sharply declined and the system had become one

That ‘quiet’ river system packs a punch when it comes to our economy.

of a “fix only as fail” view. Congress moved to correct this underinvestment and authorized 25 modernization projects valued at $8.7 billion. These initiatives are built by the U.S. Army Corps of Engineers through an existing public-private partnership between the public sector and those who commercially use the locks and dams while operating on the inland waterways. While there are a multitude of beneficiaries, commercial barge operators are the only direct contributors to the dedicated Inland Waterways Trust Fund through a payment of a 29-cent-per-gallon diesel fuel tax. In fact, the user fee was increased voluntarily by commercial towing and barge operators at the


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

Shutterstock/ f11photo


resident Donald Trump and the 115th Congress are hard at work on the immediate priorities of confirming the Cabinet, addressing healthcare and tax reform, and reviewing and renegotiating trade deals. The Waterways Council, Inc. (WCI) is preparing for a potential infrastructure funding package ahead. WCI’s goal for that package, like our fundamental, core mission, is to advocate for infrastructure investment for the inland waterways transportation system. Last year alone, America’s inland waterway system moved more than 600 million tons of freight valued at $250 billion over what is, milefor-mile, the most fuel efficient, safest, and environmentally responsible mode of surface freight transportation. As we have said many times before, rivers represent the silent “R” in a national transportation policy that has, in recent decades, focused on Roads, Rails, and Runways. But that “quiet” river system packs a punch when it comes to our economy: A 2014 study commissioned by the National Waterways Foundation and conducted by researchers at the Universities of Kentucky and Tennessee analyzed economic impacts of the inland waterways transportation system. They noted that by expediting construction of Congressionally authorized lock and dam modernization projects to be completed in 10 years rather than the current estimate of over 20 years could dramatically improve economic growth. The study says the current inland waterways system sustains nearly 541,000 full-time jobs and $21 billion in annual incomes. But, according to the study, expediting the modernization of those lock and dams (that

end of 2014 by 45%. Typically, the trust fund provides 50% of construction and major rehabilitation funding, while the remaining 50% comes from general treasury funds. President Trump has stated his interest in Public-Private Partnerships, so commercial users’ contributions to the Inland Waterways Trust Fund should fit the bill for formulating a national infrastructure policy. From WCI’s view, the bottom line is that there is a way to create a sustainable advantage to American industries that ship their products on our nation’s waterways. At the same time, we can increase the reliability and efficiency of the waterways transportation system to make those American industries more competitive at home and around the globe. We urge the allocation of around $8 billion in infrastructure funds over 10 years for the construction of capital projects already authorized by Congress to modernize the inland waterways transportation system, and to cost-share this investment with the Inland Waterways Trust Fund with a revised rate. By doing so, we can expedite the completion of up to 25 modernization projects located throughout the U.S., particularly throughout the nation’s heartland in states that benefit farmers, manufacturers, and the men and women of the construction trades. The World Economic Forum’s (WEF) Global Competitiveness Report for 2015-16 ranks the U.S. as the third-most economically competitive country in the world. The report assesses a number of foundations or “pillars” of global competition, and the second among its 12-pillar index, is infrastructure. In quality of overall infrastructure, however, the U.S. ranked 13th. We can do better! “Well-developed infrastructure reduces the effect of distance between regions, integrating the national market and connecting it at low cost to markets in other countries and regions,” the report said. Let’s work with the Trump Administration and the new Congress to make American waterways infrastructure great again.

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Color Line’s new vessel will be the largest plug-in hybrid in the world

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THE HYBRID CONNECTION Norway’s Ulstein Verft and Color Line have signed a Letter of Intent (LOI) for the construction of the largest plug-in hybrid vessel in the world. The 160 m vessel was designed by Fosen Yard and will have capacity for 2,000 passengers and 500 cars. The plug-in hybrid’s batteries will be recharged via a power cable with green electricity from their own shore facilities or recharged on board by the ship’s generators. The ship, which will increase capacity on the Sandefjord - Strömstad route between Norway and Sweden, will operate fully on battery power into and out of the

environmentally sensitive fjord. “Our ambition is to be a leader in European short sea shipping and Color Hybrid is a new proof of this,” says Trond Kleivdal, CEO of Color Line. Color Line currently has shore power facilities installed in Oslo, Larvik and Kirstiansand. Once installed in Sandefjord, shore power will be installed on all of Color Line’s Norwegian ports. The vessel, currently being called Color Hybrid, will have almost double the capacity of the M/S Bohus. The Bohus will be phased out upon the new vessel’s arrival. The Color Hybrid is expected to enter service in Summer 2019.

Inc. ( NYCL), owner of Circle Line Sight seeing Yacht s, has acquired New Yor k Water Taxi and Circle Line Downtown. The acquisition comes prior to the debut of New York’s Citywide Ferry Service, operated by Hornblower NY. At the time Hornblower was awarded the contract to run the service, NYWT said they would likely be forced to shut down business since they would be unable to compete with a government subsidized operation. However, with NYCL taking over, NYWT’s ferries will continue to operate. Following the acquisition, NYCL will own and operate 25 vessels, including ferries, high-speed thrill rides and sightseeing dinner, entertainment and charter yachts, with capacity ranging from 74 to 600 passengers. Circle Line Sightseeing Cruises recently took delivery of the first of three new sightseeing vessels from Gladding-Hearn Shipbuilding, Duclos Corporation, Somerset, MA. Designed by Jacksonville, FL-based DeJong and Lebet, N.A., the new 165 ft, 600-passenger, all-steel vessel is powered by twin Cummins QSK-38M1 diesel engines, driving the vessel to a top speed of 14 knots.

Former Supply Officer of the Year Heads to Prison The never-ending scandal com-

monly referred to as the Fat Leonard Affair keeps growing. Last month, U.S. Navy Lieutenant Commander Gentry Debord, who had previously been named U.S. Navy Supply Officer of the Year, was sentenced to 30 months in prison and was ordered to pay a $15,000 fine and $37,000 in restitution to the Navy. Acting U.S. Attorney Alala Robinson said, “This is a fitting sentence for a man who sullied his stripes with such despicable behavior.” Debord pleaded guilty in October 2016 to bribery charges and admitted that he accepted cash, luxury hotels and prostitutes—who he often referred to as “bodyguards” or “cheesecake” in emails— from foreign defense contractor Leonard Glenn Francis between 2007 and 2013. In exchange, Debord provided 12 Marine Log // February 2017

proprietary Navy information to Franics’ company Glenn Defense Marine Asia. According to his plea agreement, from November 2007 to January 2013, Debord provided Francis and others with internal, proprietary U.S. Navy information; directed Francis and GDMA to inflate invoices to reflect services not rendered; advocated for the U.S. Navy to procure items from GDMA under its husbanding contracts; and used his position and influence in the U.S. Navy to advocate for and advance GDMA’s interests. During the conspiracy, Debord was a supply officer aboard the USS Essex and later a logistics officer for the Pacific Fleet. As a supply officer, Debord was responsible for procuring goods and services to meet the ship’s needs and for confirming that the U.S.

Navy’s contractors provided these services. As a logistics officer, he helped direct ship movements and port visits. In the sentencing memorandum, Assistant U.S. Attorney Mark Pletcher wrote that Debord’s conduct was particularly galling considering he received a prestigious award while he was in cahoots with Francis. “Ultimately, that Debord was effectively working for GDMA and against the U.S. an unparalleled example of duplicity, even considering the high bar set by the industrious cast of defendants in this investigation.” To date, a total of 16 individual defendants have been charged in connection with the GDMA corruption and fraud investigation. Of those, 11 are current or former U.S. Navy officials.


Ferry Good News Continues for Metal Shark When Metal Shark won the contract

to be one of the builders of the Citywide Ferry Service’s vessels for New York City, the contract was a bold one. Metal Shark, long a builder of patrol and government vessels, was now charged with building ferries in series in an insanely short amount of time—could they transition into the commercial market without a hitch? The answer: a resounding YES. The move has not only been seamless, but also fruitful. Last month, the Louisiana-based shipbuilder was awarded two separate contracts to build passenger vessels for operators in the U.S. The vessels for both contacts were designed by BMT Designers and Planners, and draw from the company’s extensive portfolio of proven low-wake, low-wash hull forms. Both are USCG Subchapter T compliant and have been designed to combine passenger comfort with fuel efficiency and low environmental impact. Under its contract with the Potomac Riverboat Company, Alexandria, VA, Metal Shark will build four 88 ft, high-speed/lowwake, 149- passenger aluminum catamarans. The Potomac Riverboat Company provides sightseeing tours, private charters and water

taxi transportation in the DC area. The new cats will provide service between Old Town Alexandria, VA; National Harbor, MD; and Georgetown and The Wharf in Washington, DC. Scania USA will provide power for the four water taxis, supplying each Potomac Riverboat vessel with two DI13-liter engines. Each EPA Tier 3 engine will generate 500 hp at 1,800 rev/min. Vice President of Marine Operations for Entertainment Cruises, parent company of Potomac Riverboat Company, Bob Lawler says they chose Scania to provide the propulsion package for a variety of reasons, including Scania’s ability to meet “size, horsepower and weight requirements in a very fuel efficient and affordable package.” Metal Shark’s second contract is with the New Orleans Regional Transit Authority (RTA). Metal Shark will build two 105 ft, high-speed, low-wake, 149 passenger aluminum catamaran ferries for the operator. RTA provides services to passengers across the Mississippi River between Algiers Point and Canal Street, and Lower Algiers and Chalmette. The ferries — which will each be powered


Electronic Chart Display

and Information System

by two Caterpillar C18 ACERT engines, generating 5,008 KW each at 2,100 rev/ min— will have a service speed of 22.5 knots. Passengers will be able to take advantage of 125 interior seats on the main deck or 26 exterior seats on the upper deck. There will also be space available for wheelchairs, bicycles and scooters. Deliveries for the Potomac Riverboat Company are set to begin later this year— with two vessels delivered in 2017 and two in 2018. RTA’s ferries will be delivered in 2018. “Efficiently producing multi-vessel orders of sophisticated design within tight timeframes is what we do best,” says Carl Wegener, Metal Shark’s Director of Commercial Sales.

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VIMS Orders New Research Vessel, Designed By JMS Naval Architects Meridien Maritime Reparation ,

Matane, Quebec, Canada, will build a new 93 ft research vessel for the Virginia Institute of Marine Science (VIMS), Gloucester Point, VA. Designed by JMS Naval Architects, Mystic, CT, the research vessel will have accommodations for 12, and be used to conduct fisheries assessments of greater capacity, in deeper

waters and with a larger science complement as compared with VIMS’s R/V Bay Eagle. The new vessel will expand VIMS’s capability to perform general oceanographic research in Chesapeake Bay and the midAtlantic near coastal waters. Designed to be flexible, the vessel will be easily adaptable to evolving scientific research areas. Oceanographic outfitting will include

large Wet and Dry Labs. Its 1,000 ft main working deck allows for a 20-long ton science payload and provides a working platform. The aft deck will have a stern A-Frame with an 8,000 lb safe working load and a side mounted J-Frame with a 4,000 lb safe working load. Two 660 hp diesel engines coupled to a two-in/one-out marine gear driving a nozzled controllable pitch propeller. 2

Crowley Carries Historic Cargo from Cuba


Crowley Maritime’s 8,246 gt container ship K Storm made history last month when it loaded a shipment of artisanal charcoal on January 24 in Cuba bound for Port Everglades, FL. The shipment marked an historic event in U.S.- Cuba commercial trade as it was the first true commercial shipment from a Cuban cooperative to a private U.S. business since the embargo more than 50 years ago. It also marked a new chapter in Crowley’s relationship with the island nation. “Perhaps more than anything it reflects Crowley’s approach to trade with the Cuba market: patience, passion and persistence,” said Crowley in a statement. The import, it says “follows 15 years of Crowley’s liner and logistics teams operating within the framework of regulations of both the U.S. and Cuban governments to transport U.S. exports to the island.” Crowley launched its Cuba service back in December 2001, making it the first U.S. carrier to re-enter Cuba, and has, since then, maintained a regular scheduled service from Cuba to Port Everglades, FL.

Crowley file image of K Storm

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America’s Largest Offshore Wind Farm Gets Approved

Shutterstock/Teun van den Dries

A 90 megawatt windfarm development, the South Fork

Wind Farm, which sits 30 miles southeast of Montauk, is one step closer to fruition. Last month, New York Governor Andrew M. Cuomo announced that the Board of Trustees of the Long Island Power Authority (LIPA) had voted to approve America’s largest offshore wind farm, and the first in New York. The windfarm is expected to host up to 1,000 megawatts of offshore wind power and will provide enough electricity to power 50,000 Long Island homes with clean, renewable energy—helping to meet the increase in electrical demand on Long Island.The vote came after Cuomo called on LIPA to approve the project and announced a commitment to develop up to 2.4 gigawatts of offshore wind by 2030—the largest commitment to offshore wind energy in U.S. history. After a year-long process where it engaged with the private sector to find the best available clean energy generation ideas and detailed cost modeling, LIPA’s Board approved a contract submitted by Deepwater Wind. Deepwater Wind is of course no stranger to wind energy firsts in the U.S.—its Block Island Wind Farm off the coast of Rhode Island, the first wind farm in the U.S., began commercial operations December 2016. “Governor Cuomo has set a bold vision for a clean energy future, and this project is a significant step toward making that a reality,” said Deepwater Wind CEO Jeffrey Grybowski. “There is a huge clean energy resource blowing...and it is time to tap into this unlimited resource to power our communities.” “New York leads the nation in pioneering clean energy innovation, and this bold action marks the next step in our unprecedented commitment to offshore wind, as well as our ambitious long term energy goal of supplying half of all electricity from renewable sources by 2030,” said Governor Cuomo. “This project will not only provide a new, reliable source of clean energy, but will also create high-paying jobs, continue our efforts to combat climate change and help preserve our environment for current and future generations of New Yorkers.” Beyond the South Fork project, the New York State Energy Research and Development Authority is continuing to develop an Offshore Wind Master Plan outlining the State’s commitment to developing cost-effective offshore wind resources in federal waters off the coast of New York. The “Master Plan,” expected to be released later this year, will show how additional coastal sites may be developed responsibly and will set capacity targets and commercial operation dates for each. “We are confident this is the first step to developing the tremendous potential of offshore wind off Long Island’s coast and meeting Governor Cuomo’s Clean Energy Standard,” said Tom Falcone, CEO of LIPA. “This project is the right size, at the right location and demonstrates how smart energy decisions can reduce cost while providing renewable energy and clean air for all of Long Island.”



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February 2017 // Marine Log 15

Update MARITIME Trivia­– Question #46: What vessel took 67 days to round Cape Horn in 1914? The first sailor or lubber that correctly answers the Maritime Trivia question will receive a color J. Clary collector print. Email your guess to January’s trivia question: What was the reply given by John Paul Jones in the Bonhomme Richard when he was asked by the British captain if he had surrendered? Answer: “We have not yet begun to fight.” The winning answer was submitted by Tom Sullivan, Moran Shipping Agencies.


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A Fincantieri Marine Group Company

16 Marine Log // February 2017

VDOT Awards Ferry Contract to VT Halter THE VIRGINIA Department of Transportation (VDOT) recently awarded a $16.5 million contract to VT Halter Marine, Pascagoula, MS, to build the 70-vehicle capacity, double-ended ferry to replace the system’s oldest boat—the 80-year-old ferry Virginia. Naval architectural and engineering firm Alion Science and Technology, McLean, VA, is the owner’s representative for the vessel and providing oversight of the shipyard’s detail design and construction. Alion’s Corporate Vice President Peter Jacobs says Alion will provide drawing and plan review, resolution of technical issues, development and review of change orders, and overall progress review. Alion will also support VDOT during the post-delivery warranty period to resolve any deficiencies. Designed for service on the James River from Jamestown to Scotland, VA, the new double-ended ferry will have an overall length of 270 ft and breadth at main deck of 65 ft 4 in. It is expected to be similar in design to the 1995-built, 263 ft Pocohontas, VDOT’s newest, largest capacity boat. According to VDOT, the new ferry will have a 70-vehicle capacity, and will be able to transport up to 499 passengers. The Virginia, built to accommodate 1930’s era vehicles, has narrower parking lanes and a 12-ton limit; it is only able to carry 25 cars on each voyage. The VDOT has four ferries that take motorists across the James River between James City County at Glasshouse Point and Surry County at Scotland Wharf. The other ferries in the VDOT fleet on the Jamestown-Scotland route are the 1979built, 50-car capacity Surry and 1983-built, 50-car capacity Williamsburg. The new ferry’s main engines will be two Tier 3-compliant Caterpillar 3512C diesel engines, rated at 1,341 hp each. Propulsion for the new ferry will be provided by two Voith Schneider Propeller VSP 21R5/150-2 propulsor units—one at each end. VDOT is said to also be considering refitting the Pocohontas with VSPs. To be classed by ABS and USCG inspected, the vessel will be compliant with ADA standards for accessible design, with EPA Vessel General Permit for Discharges. VT Halter Marine laid the keel for the ferry on December 16, 2016. The new ferry is expected to be completed in April 2018. VT Halter Marine is also building two LNG-fueled CONRO ships for Crowley Maritime Corporation.

inside washington

President Taps Bilden as Navy Secretary in Surprise Pick


n a surprise move last month, President Donald J. Trump announced his intention to nominate former private equity investment manager Philip Bilden as the 76th Secretary of the Navy. Many Washington insiders thought former House Armed Services Committee Seapower Chairman Randy Forbes was the frontrunner. In nominating Bilden, President Trump said in a statement: “As Secretary of the Navy, Philip Bilden will apply his terrific judgement (sic) and top-notch management skills to the task of rebuilding our unparalleled Navy,” said President Trump. “Our number of ships is at the lowest point that it has been

in decades. Philip Bilden is the right choice to help us expand and modernize our fleet, including surface ships, submarines and aircraft, and ensure America’s naval supremacy for decades to come. I am proud of the men and women of our armed forces. The people who serve in our military are our American heroes, and we honor their service every day.” Bilden is an interesting pick in that it shows President Trump is once again not afraid to nominate someone for his cabinet that is outside the Washington establishment. While he would have been a logical selection for Secretary of the Navy, former Congressman Forbes was a Washington insider and career politician. He most recently served as a U.S. Representative for Virginia’s 4th Congressional District and Chairman of the Seapower and Projection Forces Subcommittee of the House Armed Services Committee.

By contrast, Bilden is a highly successful businessman who comes from a military family with four consecutive generations of seven Bilden Navy and Army officers, including his two sons who presently serve in the U.S. Navy. Bilden served 10 years in the U.S. Army Reserve as a Military Intelligence officer from 1986-1996. He resigned his commission in 1996 upon relocating to Hong Kong. Upon his nomination, Bilden said: “I am deeply humbled and honored to serve as Secretary of the Navy. Maintaining the strength, readiness, and capabilities of our maritime force is critical to our national security.” As for his business acumen, Bilden retired in 2016 after 25 years as a cofounding member and Senior Advisor of HarbourVest Partners, LLC, a leading global private equity investment management firm with institutional assets under management currently in excess of $42 billion.


February 2017 // Marine Log 17

Cruise Shipping

Industry plans to introduce 26 new ships this year, but “game changer� for passengers might be new wearable technology from Carnival

Carnival Corporation & plc CEO Arnold Donald wearing the Ocean Medallion

THe Next

Big Thing By John R. Snyder, Publisher & Editor in Chief

18 Marine Log // February 2017

Cruise Shipping


hile this year will be another impressive one for cruise travel, with more than two dozen oceangoing, river and specialty ships making their debut, the market’s biggest “game changer” might well be a tiny wearable device that’s no larger than a quarter. Called the Ocean Medallion, the 1.8ounce disc can be worn by passengers on their wrists, around their necks or simply placed in their pockets and used for ship access, ordering, purchasing, and playing. It’s being introduced by the world’s largest cruise line, Carnival Corporation & plc. “It’s simple. It’s elegant. It’s personal and it will power our guests experiences like never before,” says Carnival Corporation & plc CEO Arnold Donald. Donald—who is shown at left as well as on our cover wearing the device— unveiled the tiny technology during his hour-long keynote address at the Consumer Electronics Show (CES) 2017 last month in Las Vegas, NV. The idea behind the Ocean Medallion, which will be launched as the Ocean Medallion Class on Carnival’s Princess Cruises brand, will be to free up the crew to deliver a new level of personalized service to passengers that was not previously thought possible. The Ocean Medallion will tie in with Ocean Compass, an app that will be available on the passenger’s smartphone, laptop or other personal device, through crew devices, as well as on interactive portals installed throughout the ship. Passengers can use their personalized Ocean Medallion—it is shipped to each passenger before the cruise etched with their name—to board the ship, open their staterooms, order a glass of wine at the pool, purchase a trinket in the ship’s shops, reserve seats, or gamble onboard. During a conference call with journalists, Arnold called the Ocean Compass a “game changing improvement” to the industry and would be used by passengers as their “personal concierge.” The crew can also make recommendations to passengers based on passenger preferences. “We are taking the delivery service burden off of the crew so that they can do what they do—interact with guests and make them happy,” says John Padgett, Carnival’s Chief Guest Experience & Innovation Officer. “It’s about using technology to give guests a much greater experience.” Padgett, along with Michael Jungen, Carnival’s Senior Vice President of Experience Design and Technology, and Jan Swartz, Princess Cruises President joined Donald at the

rollout at CES 2017, as well as on the follow up conference call with journalists. The Ocean Medallion is the brainchild of Padgett and Jungen, two former long-time Disney executives, who helped launch the $1 billion Disney MagicBand vacation management system that is used at Disney Resorts and theme parks. The dev ice is expected to increase onboard profitability at Carnival—through ease of purchase, for instance—improve efficiency and productivity, and, of course, generate a memorable customer experience. Happy guests translate into repeat business. Rival Royal Caribbean Cruises offers colorful WOW bands fitted with RFID technology on some cruises to allow passengers to enter their staterooms and make purchases. The bands can be read by Royal Caribbean’s readers that are found at kiosks, tablets and mobile scanners that are operated by Royal Caribbean crew. The

It’s about using technology to give guests a much greater experience.

band is linked to a SeaPass account, which holds all of the passenger’s cruise vacation information. The Ocean Medallion ups the ante using an even more sophisticated system. The technology around the medallion reportedly cost in the neighborhood of hundreds of millions of dollars to develop and implement, but could pay big dividends for Carnival. Each Ocean Medallion contains Near Field Communication (NFC) and Bluetooth Low Energy (BLE) communication capabilities that interact with thousands of sensors, kiosks, interactive surfaces and smart devices in the ships and ports. The first ship to have the platform—the Regal Princess—will debut on November 12, 2017. While it was in drydock in Palermo, Italy, for 10 days, the ship was fitted with 75 miles of cable, almost 7,000 sensors, 650 xiECD readers, and 4,030 interactive flat screen portals scattered throughout the ship. Subsequent ships to be fitted with Ocean Medallion Class technology will be the Royal

Princess and Caribbean Princess, debutting in the spring of 2018. With a market cap of about $38 billion, Carnival carries 11.5 million passengers—about 48% of the world’s cruise passengers—on its 100 plus ships operated by its 10 brands. There was no timeline announced for the introduction of the technology on its other ships, but you can be sure that Carnival has its eye on expansion. During the conference call, Donald mentioned the Ocean Medallion’s potential to be used on land-based resorts as well.

Healthy Growth Cruise shipping as a whole is booming. This year, the number of cruise travellers is expected to climb healthy 4.5% to 25.3 million passengers this year, up from 24.2 million in 2016, according to Cruise Lines Industry Association (CLIA). As CLIA points out in its 2017 State of the Cruise Industry Outlook, cruise travelers have been steadily rising since 2007, when 15.8 million passengers said bon yoyage. The steady passenger growth has been fed by a steady diet of new, more spectacular ships, new exotic itineraries, and new, bolder onboard amenities. This year, cruise lines will debut 26 new ocean, river and specialty ships in 2017 representing a total investment of more than $6.8 billion in new vessels. Overall, CLIA reports that industry plans call for a total of 97 new cruise ships—representing a total investment of $53 billion—to be introduced from now through 2026. Carnival recently inked a deal for two new ships for its Holland America Line and Princess Cruises brands. With the new orders, Carnival Corporation now has 19 new ships scheduled for delivery between 2017 and 2022. The two new ships are part of an overall orderbook of some 70 ships worth about $46.7 billion (see table on page 20). Holland America Line’s new 99,500 grt, 2,600-passenger ship—its third Pinnacle Class vessel—will be built at Fincantieri’s shipyard in Marghera, Italy, with an expected delivery in 2021, and the 145,000-grt, 3,660-passenger ship—the sixth Royal Class vessel—for Princess Cruises will be built at Fincantieri’s Monfalcone, Italy, shipyard with an expected delivery in 2022. Next month, the Majestic Princess—the world’s first ship designed specifically for the Chinese market—will make her debut. With a relatively low penetration of the overall vacation market, cruise ship lines are adding more capacity to push into the Asian market. Carnival, for example, signed February 2017 // Marine Log 19

Cruise Shipping Source: Seatrade Cruise, Marine Log

Cruise Ship Order Book Cruise Line




Lower Berths

Est. Delivery

Est. Cost ($ in Mil)

AIDA Cruises


Mitsubishi HI



Spring 2017


AIDA Cruises

2 ships

Meyer Werft



Winter 2019-2020


Carnival Cruise Line

Carnival Horizon




Spring 2018


Carnival Cruise Line





Winter 2019


Carnival Cruise Line

2 ships

Meyer Turku



Spring 2020-2022


Celebrity Cruises

4 Edge Class ships

STX France



Autumn 2018-Winter 2022

Costa Asia

2 ships




Winter 2019-Winter 2020


Costa Cruises

2 ships

Meyer Turku Yard



Winter 2019-Winter 2021


Crystal Cruises

Crystal Exclusive

MV Werften



Winter 2022


Crystal Yacht Expedition Cruises

3 ships

MV Werften



Summer 2019-Summer 2021


Disney Cruise Line

2 ships

Meyer Werft



Winter 2021-2023


Dream Cruises

World Dream

Meyer Werft





Hapag-Lloyd Cruises

2 ships




Apr-19-Oct 19


Holland America Line

Nieuw Statendam




Autumn 2018



2 ships

Kleven Werft



Spring 2018-Spring 2019


Lindblad Expeditions

2 ships

Nichols Brothers


Summer 2017-Sumer 2018


MSC Cruises

2 ships

STX France



May-17-Winter 2019


MSC Cruises

2 ships




Nov-17-May 18


MSC Cruises

2 Meraviglia Plus ships

STX France





MSC Cruises

2 World-class ships

STX France





Norwegian Cruise Line

3 ships

Meyer Werft



Spring 2017-Autumn 2019

Oceanwide Expeditions





Spring 2019


P&O Cruises


Meyer Werft



Spring 2020



4 ships






Princess Cruises

Majestic Princess






Princess Cruises

Two ships






Regent Seven Seas Cruises





Spring 2020


Royal Caribbean International

2 Oasis Class ships

STX France



Winter 2018-Winter 2021


Royal Caribbean International

2 Quantum Class ships

Meyer Werft



Spring 2019-Autumn 2020

Saga Cruises


Meyer Werft



Summer 2019



Scenic Eclipse

Uljanik, Croatia






Seabourn Ovation




Winter 2018


Silversea Cruises

Silver Muse






Star Clippers

Flying Clipper




Winter 2018


Star Cruises

2 Global-class ships

MV Werften



Spring 2020-Spring 2021


TUI Cruises

Mein Schiff 6

Meyer Turku



Winter 2017


TUI Cruises

2 Mein Schiff ships

Meyer Turku



Winter 2018-Winter 2019


Viking Cruises

3 ships




Oct-17-Mar 19


Virgin Voyages

3 ships




Winter 2020-Winter 2022


Total Ships: 70 20 Marine Log // February 2017

Total Berths: 195,546

Total Order Book Value: $46.7 Billion

Cruise Shipping A fourth ship in the Royal Class will join the Princess fleet in 2018

a non-binding Memorandum of Agreement (MOA) last year to build two new cruise ships in China for its new Chinese brand. The ships, based on the Vista Class design, will be built by a newly formed China-based shipbuilding joint venture between China State Shipbuilding Corporation (CSSC), and Fincantieri S.p.A. CSSC’s Shanghai Waigaoqiao Shipbuilding (SWS) shipyard is expected to build the ships for delivery in 2022.

Pushing the Technology Envelope Cruise lines are also investing in ships that burn Liquefied Natural Gas (LNG) as fuel to comply with stricter emission standards. Right now, Carnival, Royal Caribbean Lines, and MSC Cruises have on order 13 ships that will capable of burning LNG as fuel. Carnival has seven cruise ships across its 10 brands, MSC Cruises signed a letter of intent to build four LNG-fueled cruise ships that would be 200,000 grt each with STX France, and RCL signed an MOU with Meyer Turku for two Icon Class ships that will burn LNG. MSC’s four ships, the first one of which will be delivered in 2022, will be based on a new advanced next-generation prototype that will form what will be known as the “World Class” of MSC Cruises’ ships. The four ships amount to a nearly $4.5 billion investment, bringing the total value of the company’s 10-plus years investment plan to nearly $10.2 billion. Meanwhile, what’s interesting about the newest class of ships from Royal Caribbean Cruises Ltd., are that they will also have fuel cells, further pushing the technology envelope. Under the MOU with Finnish shipbuilder Meyer Turku, the new Icon Class vessels will be delivered in the second quarters of 2022 and 2024. RCL says it will begin testing fuel cell technology on an existing Oasis-class ship this year, and will also run progressively larger fuel cell projects on new Quantum class

vessels being built in the next several years. Royal Caribbean is not afraid to push the technology envelope in an effort to increase the efficiency of its ships and reduce their carbon footprint. Royal Caribbean has implemented air lubrication, which makes the hull “slippery” through the use of microscopic bubbles along its surface, and AEP scrubbers to cut SOX, NOx and PM emisisons and improve efficiency. “With Icon class, we move further in the journey to take the smoke out of our smokestacks,” says Richard Fain, Chairman and CEO of Royal Caribbean Cruises, Ltd. “We are dedicated to innovation, continuous improvement, and environmental responsibility, and Icon gives us the opportunity to deliver against all three of these pillars.” Royal Caribbean International President and CEO Michael Bayley, says, in developing the new Icon Class, company began by “challenging ourselves to find a new approach to power and propulsion that is safe, reliable, and more energy-efficient than ever before.”. The use of fuel cells would be another dramatic leap forward for the maritime industry, which has only made limited experiments using the technology. “We believe fuel cells offer very interesting design possibilities,” says Harri Kulovaara, RCL’s chief of ship design. “As the technology becomes smaller and more efficient, fuel cells become more viable in a significant way to power the ship’s hotel functions. We will begin testing those possibilities as soon as we can, and look to maximize their use when Icon class debuts.” Kulovaara believes the technology is now at a stage of development that justifies investment. “There is a long lead time for Icon class, and we will use that time to work with Meyer Turku to adapt fuel cell technology for maritime use.” Kulovaara said that additional regulatory standards would also need to be developed for the technology.

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February 2017 // Marine Log 21

Commercial Fishing

The F/V Araho, based on a Skipteknisk design, built by Eastern Shipbuilding

Complied by Marine Log Staff



ore than 5,000 commercial fishing vessels operate off of Alaska, many of them more than 40 years old. A study prepared for the Port of Seattle and the Washington Maritime Federation says that refurbishing or replacing many of these vessels in the U.S. North Pacific fishing fleet offers a significant economic opportunity for naval architects, shipyards, service companies, and suppliers. According to a study prepared by the consulting firm McDowell Group, all but 52 of the 414 federally permitted commercial fishing vessels over 58 feet in length were built in 1989 or before. The study, Modernization of the North Pacific Fishing Fleet, Economic Opportunity Analysis, says that the average price of replacement varies widely by fishery, ranging between $15 million and $130 million. It estimates that the cost to replace the entire fleet over 58 feet in length, including recent newbuilds, would be $11.3 billion. Of these, the cost to replace vessels over 30 years old 22 Marine Log // February 2017

would be about $9 billion. Over the next 10 years, modernization projects valued at $1.6 billion are expected to be completed, with an average of three new vessels (including refurbishments and retrofits) each year between 2017 and 2021. The incentive to replace aging vessels is to add new, more sophisticated processing capacity, as well as increase fuel efficiency. Reducing fish waste and better utilizing harvested volume is one of the most effective ways to increase vessel earnings. The challenge for many projects is the financing. The study says the owner must be confident that the vessel will pay for itself through earnings and the builder must be confident that that vessel can be built to specification and delivered on time with no cost overruns. The lender is going to look for a solid business history and a strong balance sheet.

Modernization Has Started Since 2000, 19 North Pacific fishing vessels over 58 feet in length have been built

or significantly been modified, reports the study. Nine of those were either Amendment 80 or freezer longliner vessels. Portland, OR-based Vigor, with shipbuilding and repair facilities in Alaska, Oregon, and Washington, built the 136 ft Arctic Prowler, one of the first of a new generation freezer liners, back in 2013 at its Ketchikan, AK, shipyard. This past November at the Pacific Marine Expo, Vigor unveiled a new affordable 142 ft freezer longliner designed specifically for North Pacific fishing. The Vigor freezer longliner is based on a classic, proven design by Marco Marine, a leader in reliable fish boats for a half a century. The 142 ft x 33.6 ft x 14 ft vessel has a fish hold capacity of 14,070 ft3 and a bait hold capacity of 1,900 ft3. Vigor shipyards have also supported the Pacific Northwest commercial fishing market with several major refit projects. One of the latest freezer trawlers in the modernization of the North Pacific fishing fleet was the F/V Blue North, designed

Photo Credit: Eastern Shipbuilding

Aging commercial fishing fleet presents financing challenges, but a significant opportunity

Commercial Fishing by Norway’s Skipsteknisk A/S and built by Dakota Creek Industries, Anacortes, WA. Delivered to Seattle-based Blue North, Inc., last year, the $40-million vessel, based on an ST-155L design, sets new standards for fishermen’s safety, operational efficiency, and sustainable fishing. It is specially designed for hauling of longline through moonpool in its centerline. This extends the time of fishing operations under severe weather conditions and creates safer working conditions for mariners. The diesel-electric vessel was named one of Marine Log’s Best Ships of 2016. Dakota Creek Industries is also building the stern trawler America’s Finest, based on a Skipsteknisk ST-116XL design, which will be used to catch, process and freeze white fish and groundfish, including yellow- and rock sole species. The new stern trawler, for Fishermen’s Finest, Kirkland, WA, will have an overall length of 79.8 meters and be built to DNV GL rules for fishing vessels including clean class, and will have the hull notation +1A1, Ice 1B.

Another New Trawler Designed by Skipteknisk Constructed at Eastern Shipbuilding Group, Panama City, FL, another Skipstekniskdesigned vessel is the 194 ft by 49 ft freezer factor y trawler Araho for The O’Hara Corporation, of Rockland, ME. O’Hara Corporation operates three catcher-processor vessels in the Bering Sea of Alaska, has interest in processing operations in China, owns 12 scallop boats in New Bedford, MA, and two herring boats in Rockland, Maine. Propulsion power for the trawler is supplied by an EMD 16-710G7 Tier 3-compliant diesel engine, rated at 4,000 hp at 900 rev/min. O’Hara supplied the propulsion vertical offset Lufkin reduction gear, which drives an ABB 1,700 kW shaft generator while the vessel is underway. The generator provides the fishing vessel with clean primary electrical power for

all of its equipment, winches, processing, fish handling systems, pumps, and ships services. Classed by DNV GL +1A1, Stern Trawler, E0 Notation for hull and DNV ICE 1B, the Araho features an extensive array of state-ofthe-art equipment, including a full line of 14 electrically driven winches from Rapp Marine. The trawl winch system can regenerate power from the trawl winches using an ABB DC grid solution manufactured by ABB Marine. The ABB primary and redundant incomer rectifier systems are designed to operate with an electrical service of three phase, three wire ungrounded circuits supplied with a nominal in feed voltage of 480 VAC at 50-60 Hz. The two TWS-22030E/S6 model trawl winches will do the bulk of the work in the fishing operation, each with the pulling capacity of 45 tons and can hold 2,800 meters of 32 mm cable. The trawl winch model is powered by Rapp Marine’s unique gearbox design, with multiple fluid-cooled electric motors installed onto the gearbox. Two GW-4000BE model Gilson winches— capable of pulling up to 32 tons— are included in the winch package. The Araho will also have two NDD-4500BE model Split Net Drums. Each net drum is capable of holding over 20 m3 and will have a total pulling capacity of 50 tons per Net Drum. A third net drum, a ND-4500BE Single Net Drum located on stern has a pull capacity of 32 tons. Also installed on the Araho are three electric cod end/outhaul winches, capable of pulling 12 tons each and a model SOW-502E/ S6 electric net sounding winch, designed to handle 3,700 meters of 11 mm cable and a pull capacity of 3.5 tons.

Repowering the Fleet Volvo Penta of the Americas reports a steady increase in the number of U.S. commercial fishing boats that are being repowered with

its newer-technology diesels. The increase is being driven largely by the improved fuel efficiency, reduced maintenance requirements, better torque performance and size/ weight-horsepower ratio delivered by the newer engines. It all adds up to more productivity on the water—a critical concern for people whose living depends on it. An example is Jerome Young , w ho repowered his commercial lobster boat Tilly Mac with a Volvo Penta D16 MH 750-horsepower engine last summer. Based in Marathon, FL, the Tilly Mac hauls more than 20,000 pounds of gear at one time, and the D16 had the torque and horsepower to fit his needs. Since repowering, Young has experienced fewer oil changes and longer intervals between regular maintenance. “The savings add up,” Young says. “Between oil, fuel, and maintenance savings, the engine will pay for itself over time.” Young puts about 200 hours a month on the engine during the nine-month lobstering season. The boom in lobster exports to China and other Asian countries is an important factor behind the increase in repowers, especially in Maine, as owner/operators look to maximize uptime on the water. Billings Diesel and Marine, in Stonington, ME, is located in the heart of the state’s booming lobstering business. Greg Sanborn, the shop’s service manager, knows a thing or two about keeping the lobster boats and commercial vessels running. The Volvo Penta Power Center installs the D16, D13, and D11 engines. “Customer feedback has been positive during the past two years concerning how they are running, their lower fuel consumption, and that they are cleaner-burning engines,” says Sanborn. “Honestly, most of the boat owners only care that their engine is running well and that they are getting great fuel consumption. They don’t want any downtime. They just need to be on the water working.”

February 2017 // Marine Log 23


Fincantieri is adopting a hybrid cloud solution to manage its integrated ship design and manufacturing

the digitalization of Shipbuilding

24 Marine Log // February 2017

customization. Since 2002, Fincantieri has designed and built over 60 prototypes and has unveiled Project Mille, a new concept in designing the basic layout of cruise ships. To improve the efficiency of ship design and construction, Fincantieri is adopting a hybrid cloud solution from IBM to manage its new Integrated Ship Design and Manufacturing system. With more than 50 cloud data centers worldwide and expertise in managing enterprise cloud services, IBM will provide Fincantieri with a modern IT infrastructure that advances its global growth goals. “Fincantieri has always considered technological innovation of products and processes as a way of guaranteeing the company’s high standard of excellence,” says Fincantieri CIO Gianluca Zanutto. Fincantieri selected IBM Cloud to create a global hybrid cloud infrastructure that connects 13 Fincantieri private distributed data centers with the IBM Cloud data center in Milan. The result, says IBM, is a hybrid cloud for high-availability, fault tolerance and secure enterprise service levels.

In addition to providing a new flexible and scalable global IT footprint for the shipbuilding world of today, Fincantieri is looking to IBM for a cloud solution built for the future. The solution is scalable, meaning that Fincantieri will be able to integrate other subsidiaries and new acquisitions as it continues to expand. Stefano Rebattoni, General Manager Global Technology Services, IBM Italy, says, “Fincantieri is leveraging IBM’s hybrid cloud model in an innovative manner to help its digital transformation and usher in a new era of scalability and flexibility, through a high-secure and reliable IT infrastructure.”

FORAN at Fincantieri Marine Group One of Fincantieri’s shipyards in the U.S. is Fincantieri Bay Shipbuilding, Sturgeon Bay, WI, which is currently building Articulated Tug Barge (ATB) units for U.S. commercial customers. The Fincantieri Marine Group, the U.S. arm of Fincantieri, recently signed an agreement with Spain’s Sener to implement the FORAN system at Fincantieri Bay Shipbuilding. The contract

Photo Credit: Fincantieri


igitalization is increasing across the maritime industry, as shipping and shipbuilders try to transform their businesses to increase automation, improve efficiency, and gain more insight into their operations through data sharing and analysis. One of the shipbuilders transforming itself is Fincantieri. With some 19,000 employees and 20 shipyards in Europe, the Americas, and Asia, Fincantieri is a multinational, global shipbuilding and design group. With more than 7,000 vessels built—everything from the slickest megayachts to the most luxurious cruise ships—Fincantieri remains in the forefront of pleasure, commercial and military ship construction. “Our forward-looking way,” says Fincantieri CEO Giuseppe Bono, “made up of technological and competitive growth, has been traced, and it’s up to us all to follow it with determination.” Each year, Fincantieri invests about EURO 70 million in R&D, in order to offer the marine market the most advanced high-technology solutions and full product

Compiled by Marine Log Staff

SHIPBUILDING Feature & IT covers installation, adjustment, training, and support in three main disciplines in the FORAN System: Hull Structure, Machinery & Outfitting, and Electrical Design. Sener provides training and post-sales support to the shipyard’s FORAN users. FORAN is being used to develop two tugs and an 185,000 bbl ocean tank barge. What makes the project unique, says Sener, is that its classification design was performed in 3D in FORAN, and is done remotely and collaboratively from different locations—at the shipyard and in the design office of naval architect Guarino & Cox, LLC, in Covington, LA. Last year, Sener rolled out some big changes in FORAN with its latest version, V80R2.0. Among the notable changes in the latest release of FORAN is a new geometric core that utilizes Open CASCADE (OCCT) Technology, which makes it possible to represent analytical surfaces—making it much easier to define corrugated dividers.

Transforming Shipbuilding The current downturn in the markets—both commercial shipbuilding and offshore oil and gas—continues to put pressure on shipbuilders and marine fabricators. In a white paper, Digitalisation of the Shipyard, Chartering a Fresh Course to a More Efficient Future, AVEVA Marine discusses how the shipbuilding industry needs to create strategies to help sustain business through the downturn. As the paper points out, 3D Computer Aided Design/Computer Aided Manufacturing (CAD/CAM) is standard at most medium- and large-sized shipyards. More and more focus in the shipyard is shifting to ERP software. Says AVEVA Marine, “Most of the cost of today’s complex vessels is subcontracted turnkey work and material cost. This has resulted in an increased focus on the IT tool set required to manage subcontractors, plan work and manage the procurement and logistics of just-in-time logistics at the manufacturing stage.” The shift from CAD/CAM to ERP-like software has resulted in a two-pillar IT support system for how shipbuilders work: one focused on design through manufacturing processes and the other on the management and disciplines that need to surround them, materials management, planning and cost forecasting, documents management systems, and cost control systems. AVEVA Marine says that shipbuilding needs to shift its focus from deriving value purely from the design and manufacture of ships towards other revenue streams, such as fleet maintenance and after-sales services. February 2017 // Marine Log 25


Effective use of

big data

& remote monitoring Special to Marine Log

A bigger communication “pipe” is available for shifting data ashore— providing operators , both big and small, with richer data sets


he shipping industry is awash with excitement about the potential of Big Data, but views differ as to whether a fully-fledged Big Data strategy best serves the true requirements of vessel operators. Some have advocated a ‘small data’ approach – seeing greater benefit in improved extraction of the value hidden in existing data sets, pointing out that most of the data-centric optimization solutions offered to market so far are based on beefed-up versions of noon reports. One reason is that the communications link between ship and shore imposes 26 Marine Log // February 2017

constraints on data exploitation. This, consequently, restricts the extent to which shipping companies and OEMs alike can capitalize on the full benefits of remote equipment monitoring. Fortunately, these communications constraints are diminishing. Earlier this year, Inmarsat launched its Fleet Xpress high-speed broadband service. Fleet Xpress raises the stakes not only in terms of bandwidth – the quantity of data it can send over its satellites – but in terms of availability and resilience. Powered by Inmarsat’s latest generation I-5 satellites, it operates over the high-frequency Ka-band

to deliver data more quickly than is possible with Ku-band VSAT services. To ensure connection in extreme weather conditions or when a vessel is navigating in higher latitudes close to the poles, it incorporates an automated unlimited fall-back option to the satellite operator’s resilient L-band service. Now vessel operators and equipment suppliers have a bigger communication ‘pipe’ available for shifting data ashore, they will be able to take advantage of richer data sets, whether for monitoring engines and related equipment, planned maintenance and parts procurement, or optimizing navigation at

Shutterstock/ sdecoret

Inmarsat’s Fleet Xpress is catalyst through which the benefits of data analytics and remote monitoring are changing an industry

NAVIGATION Feature sea and port turnarounds. These are all but crucial for more advanced predictive maintenance services. To date, better data sets have been the preserve of larger vessel operators – such as Maersk Line – or niche market segments such as the cruise sector. The Danish containership operator says it downloads two gigabytes of data every day from its Triple-E ships, each of which is hardwired with about 2,800 sensors and 450km of cables. The engine room alone has 200 sensors measuring equipment temperatures, pressures, and operations. For the whole Maersk fleet of about 400 owned and chartered ships, the operator states it hauls back some 30 terabytes a month, much of which ends up at its digital situation room. Even five years ago, such data volumes would have been unimaginable. Elsewhere cruise ship operator Carnival Corporation has opened a fleet operations center in Hamburg, Germany, from where it supports 25 passenger ships across several of its brands. Reflecting their complexity, these ships typically have more than 10,000

sensors on board. Besides optimizing for fuel consumption, there is scope for finetuning habitability services, such as HVAC, freshwater generation, and wastewater management, which on a large passenger ship can translate into significant energy and cost savings. A strong part of the appeal of Inmarsat’s Fleet Xpress service is that it can democratize access to these efficiency improvements, bringing them to smaller vessel operators who do not necessarily have the resources for setting up bespoke mission control centers. Two major innovations make this possible. From the commercial point of view, Inmarsat has introduced flexibility into the billing process, by allowing costs incurred in transmitting data to be split between the vessel owner and a third-party, such as an OEM or a data analytics service provider. This addresses that part of resistance to adopting new solutions traceable to so-called ‘bill-shock’— a legacy of older metered satcoms services, whereby the vessel owner was charged per megabyte transmitted.

Secondly, the Fleet Xpress service is augmented by the Inmarsat Gateway, which among other things offers certified thirdparty developers to host a new breed of data-centric applications intended to boost vessel efficiency. Inmarsat has also addressed cyber-security, a growing concern as data becomes increasingly embedded in vessel operations. It is partnering with Singtel, to jointly develop its Trustwave unified threat management service to provide a suite of cybersecurity defenses, such as an advance firewall, anti-virus, intrusion prevention and web-filtering, which is backed by global round-the-clock support. By augmenting customers’ onshore cybersecurity measures, the new package will reduce the risk of data from ships ending up in the wrong hands. In Fleet Xpress, Inmarsat has put in place the foundations — continuous connectivity, guaranteed performance, controlled costs, third-party hosting — that will allow sophisticated data analytics solutions and the efficiency gains they promise to reach an increasing share of the world fleet.

Enhancing Performance: New Radar Technology Paves Way For Safer, Efficient Operations H ous ton - ba se d Sonard y ne Inc. will supply acoustically-aided iner tial navigation technology to McDermott International, Inc.’s Lay Vessel 108 (LV 108). The LV 108 entered service in 2015 and is currently on contract in the Ichthys field, Western Australia. Dynamically positioned construction and installation vessels such as the LV 108 rely on Ultra-Short BaseLine (USBL) acoustics and the Global Navigation Satellite System (GNSS) as their primary sources of position reference data. However, a vessel’s station-keeping capability can be compromised in the event the USBL is affected by thruster aeration and noise and the GNSS signal is simultaneously interrupted. Sonardyne says it s Ranger 2 Pro DP-INS system addresses this operational vulnerability. It aids vessel positioning by exploiting the long-term accuracy of Sonardyne’s Wideband 2 acoustic signal technology with high-integrity, highupdate rate inertial measurements. This results in a navigation output that has the ability to ride-through short-term acoustic disruptions and is completely independent from GNSS. Beyond that, the DP-INS has a number of advantages. For

starters, it has been proven to deliver time and cost savings. It doesn’t need a full seabed array of transponders to be installed and calibrated before subsea operations can commence. And because it only needs aiding from the acoustics on occasion, the transponder battery life is substantially increased—and the need to deploy an ROV to recover transponders for servicing is reduced.

SIMRAD’s IMO SOLAS radar Simrad’s R3016 12U/6X IMO SOL AS CAT 3 Radar System is an IMO TypeApproved radar system geared for the commercial shipping market. The system is ideal for use on board CAT 3 SOLAS vessels, workboats, tugs and coastal fishing boats—and is designed to withstand rough seas. It features enhanced target tracking capabilities, clear target definition and advanced tuning controls. Simrad says the all-in-one control unit incorporates the display, controls and processor in a single compact console. The system features an integrated display console that requires no external processor, controls or power supply. It is operated by an integrated keypad and rotary dial with direct-access button— ensuring no-nonsense reliable control of

on-screen menus. Its 1366 x 768 pixel, high-definition, 15.6-inch diagonal widescreen display provides plenty of on-screen display space for alarms, indicators, and target tracking information. Thanks to the advanced digital processing, sea clutter is reduced on-screen. The system’s automatic target tracking capabilities lead to safer navigation and greater collision avoidance. The X-band radar system features a 6-foot open array scanner with a 12-kilowatt up-mast transceiver. Its 12U/6X antenna is designed for maximum reliability. The radar provides IEC 61162-1/2 connectivity to enable communication with compatible devices such as heading and speed sensors, AIS transceivers and GPS receivers. Simrad also has the distinction of providing the innovative Vision of the Fjords, a winner of our 2016 Best Ships of the Year award, with its main bridge electronics package. Simrad supplied the ferry with its Simrad ARGUS radar system, Simrad AP80 autopilot and Simrad E5024 ECDIS system —all IMO t ype approved. The high-speed craft also features Simrad’s EP70 Emergency Position Indicating Radio Beacon (EPIRB).

February 2017 // Marine Log 27

OPINION The lack of effective certification makes communications equipment vulnerable to cyber risk




he time has come to introduce robust certification and approval processes for all electronic equipment on board ships. This is the only realistic way of tackling cyber-risk within the shipping industry. There has always been a certain degree of risk associated with entrusting computers to perform tasks previously carried out manually. This is not a new phenomenon. It has been with us since the 1960s and 1970s when electronic systems escaped the laboratory and found their way into real-life applications. The reason the subject comes under intense

28 Marine Log // February 2017

scrutiny today is that these systems are becoming ever more complex and are increasingly interconnected. The complexity makes it harder to detect errors that could lead to irrevocable failure. Greater connectivity allows failures to propagate or cascade through a system and also gives hackers, whatever their motivation, much greater scope to find a weak point of entry into a system. Such is the scale of the problem that, in defense circles, it is a widely held view that the next war will be fought not on the battlefield but in cyberspace. Where does that leave the maritime industry? The equipment found on ships is

traditionally subject to countless prescriptive rules, standards and regulations aimed at ensuring the safety of crew, vessels and their cargoes, as well as the environment. However, not all equipment is treated equally. There are gaps in this regulatory oversight. The hardware for establishing connectivity between ship and shore is a particularly glaring omission. It is all the more worrying as ships grow more reliant on electronic communications in their operations, especially for safe navigation but also for the ongoing maintenance and upkeep of machinery systems, and to satisfy official

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To be effective, the maritime industry’s approach to cyber-risk must cover all shipboard systems By Frank Coles, CEO, Transas

OPINION and commercial reporting requirements. From LRIT and GMDSS, to AIS and ECDIS, bridge hardware has to be designed and built to agreed standards in order to gain certification that allows manufacturers to supply and install it. Yet, there are no equivalent requirements for antennas, modems and other satellite communications equipment. Each satellite services provider will have a different way of addressing security and cyber-risk. That is a big risk in my view. Modems, for instance, may be supplied with default passwords, which are rarely changed or are easy to crack. This was the technique employed to great effect by hackers carrying out the Mirai DDOS attack on Internet infrastructure last October. Once known to malicious third-parties, this information could be used to disable the antenna. This could already have serious repercussions for the manned vessels of today. In the case of the unmanned ships currently under development it would be disastrous. Without a hardened communications channel an autonomous ship is unlikely to ever leave port—let alone ply a commercial voyage. The lack of effective certification for communications equipment has consequences for other equipment. When Transas

manufactures an ECDIS capable of downloading chart updates over the Internet, the router and hardware firewall component is scrutinized in the approval process to ensure we are not leaving the ECDIS console— and thus mariners—exposed to any cyber vulnerability. If we decide to switch to a different router, we have to start over. Apart from the time involved, this is also an expensive exercise, with costs ultimately feeding through to the end-user. However, there is no similar obligation on manufacturers of satellite communications hardware. In my view, this creates a dangerous gap in the regulatory framework for protecting ships—and one that should be plugged quickly. Some communications providers propose cybersecurity add-ons as part of their offering to shipowners, which are typically filtering solutions. In my view, this approach addresses symptoms that present themselves at the service level, but not any underlying vulnerabilities found in the infrastructure. The complexity of modern software and hardware makes it difficult, if not impossible, to develop components without flaws or to detect malicious insertions. Vulnerabilities could exist right down to the firmware or chip level. The Mirai attack mentioned

above was so effective because the default password had been burnt into the firmware. It is therefore incumbent on IMO and allied organizations to step up and address this reality. Furthermore, we have to proceed on the assumption that flaws do exist and take a riskbased approach to ensure that when something goes wrong, we have steps in place to minimize the impact. For this reason, the role of class societies cannot be underestimated. Certification for all electronic equipment will provide a level of assurance to mariners that the equipment they rely on is fit for purpose. However, certification for manufacturers is only half the story. One appeal of a risk-based approach to tackling cyber threats is that it can be implemented at various levels. Shipping companies can self-audit and implement their own internal procedures geared towards securing their computer systems. These should cover operations both on ship and on shore. The cyber discussion in maritime is driven by fear. Some have even argued we should remove tech from ships completely and run them like we did 50 or 100 years ago, which is patently unrealistic. As with so much in life, we cannot eliminate risk entirely, but we can take steps to minimize exposure to unnecessary risks.

February 2017 // Marine Log 29


Admiral Papp to Represent Eastern in Washington, DC Eastern Shipbuilding, has appointed former Coast Guard Commandant Admiral Robert J. Papp, Jr., USCG (Ret), as President, Washington Operations. In this role, Adm Papp will represent the yard in Washington, DC, and will lead its strategic engagement in the intergovernmental and industry operations. Ship Finance International Limited has appointed Gary S. Vogel to the Board of Directors. Vogel is currently Chief Executive Office of Eagle Bulk Shipping Inc. Ryan Levenson has been appointed to the Board of Directors of Great Lakes Dredge & Dock Corporation.

Last month, John Parrott officially assumed the role of President and CEO of Foss Maritime, after successfully completing a fourmonth transition. Parrot takes over the role after the departure of retiring President and CEO Paul Stevens. Stevens however, isn’t retiring for good—he has taken on a new role at Foss parent company Saltchuk as Senior VP and Managing Director. Carnival Cruise Line has appointed Taylor Bux VP of Marketing Services. He will be responsible for consumer public relations, brand experience and grassroots marketing, social media and branded content as well as advertising and creative services. Carnival also named Sean Kenny as Senior VP and Chief Information Officer.

The supervisory board of KOTUG has appointed Osman Munir as Chief Commercial Officer (CCO) in the Board of the KOTUG Group of companies. Congressman Rob Wittman (VA-1), who is Co-Chair of the Congressional Shipbuilding Caucus, has been selected as Chairman of the House Armed Services Subcommittee on Seapower and Projection Forces. Gary Aucoin has been named the new General Manager of Schottel Inc. Aucoin brings with him 15 years of experience —most recently serving as the account manager at Wärtsilä responsible for new business development and after-sales service in the offshore market.




30 Marine Log // February 2017


Wärtsilä Enviroguard SLR Water-Lubricated Seal for Small Workboats INLAND WATERWAY operators need products that are tough, reliable, easy to install and environmentally friendly. Those are exactly the parameters Wärtsilä had in mind when it conceived its new Wärtsilä Enviroguard SLR water-lubricated seal for small workboats. “We wanted to design something that was off-the-shelf, modular, easy to install, and required no specialized tooling,” said Simon Kill, Inland Waterways and Coastal Sales Manager, Wärtsilä Seals and Bearings. Launched at the International Workboat Show this past year, the Wärtsilä Enviroguard SLR water-lubricated seal is made primarily from a durable marine-grade composite that is lightweight, corrosion-free, and economical. It is designed for the tough “silty” conditions that towboats encounter on the inland waterways and is available in nine standard sizes to suit shaft sizes between 75 mm to 306 mm. Just as impressive is that the Wärtsilä Enviroguard SLR waterlubricated seal was developed in about 8 months. Input from a focus group made up of key stakeholders—distributors, shipyards, and engineers—helped shape the new water-lubricated seal. “It was critical in the development process that we understood the needs of the customers in order to design product that meets their rtequirements and withstands their operating environments,” says Kill. “We wanted to provide workboats with a pollution-free seal that is cost-effective as well as easy to install and service, and we backed all this up with a 5-year warranty.”

Steerprop Introduces Steerprop CRP ECO LM Finland’s Steerprop Ltd. has recently extended the Steerprop CRP ECO product line with the new, compact and cost-effective Steerprop CRP ECO LM propulsor with integrated vertical permanent magnet (PM) motor. The Finnish company says that Steerprop CRP ECO LM offers vessel owners, shipbuilders and designers the benefit of reduced lifetime costs, improved fuel-efficiency and low vibration and underwater noise levels. The compact construction eases installation and maintenance and maximizes onboard comfort. The development of Steerprop CRP ECO LM began in 2015 with the idea of integrating a vertical electric motor on the propulsor in place of the upper gear and separate electric motor. The main idea was to combine the excellent hydrodynamic features of Steerprop CRP ECO propulsors with an efficient and compact electric motor to create highly efficient, extremely compact propulsive unit. Steerprop CRP ECO LM consists of a mechanical azimuth propulsor, electric motor and shaftline with a flexible coupling. The integrated PM motor, auxiliary electric systems and instrumentation are located inside the vessel’s hull above the waterline, allowing easy service access. Additionally, the compact arrangement saves space in the hull. Steerprop says installing the Steerprop CRP ECO LM unit is easy even at a late stage.



S. S. LANE VICTORY, COMMISSIONED WINTER 2014/15 February 2017 // Marine Log 31

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Understanding Cholesterol Research shows that decreasing sugar intake can decrease LDL particles in the blood.

30 Days to Better Health While medication can change these numbers, most people can change their numbers for the better in 30 days with a few dietary changes. 1. Eat More Omega 3s Omega 3s come from a variety of dietary sources including: nuts, seeds, fish, fish oils, olives, olive oil, avocado, avocado oil, supplements, and grass-fed animals. Omega 3s are also available as a supplement. This is important to mariners and travelers.

high levels of chronic inflammation. PUFAs (Poly Unsaturated Fats) are found in food and are “essential” to life. They work to perform critical tasks; everything from cell communication to powering the brain. Omega 3 fatty acids (anti-inflammatory) and Omega 6 fatty acids (inflammatory) are the two we need to balance in a 1:1-1:4 ratio for optimum health. However, 90% of Ameri-

The Theory of Injury In the early 1900s, studies identified that the liver was making cholesterol for the body. It was producing cholesterol in response to a variety of sustained injuries. The result of these injuries was a “911” call to the liver. The liver, in turn, ramped up the production of cholesterol and dispatched it to the traumatized area. In the case of the arteries, cholesterol covers lesions in the arterial walls. The problem comes when cholesterol gets continuously produced and sticks to artery walls. This build-up, called arteriosclerosis, is a form of heart disease. The build-up clogs, slows or stops blood flow, or can break off in chunks and get stuck in an artery. Chronic inflammation is one of today’s big suspects for mass injury. This is most likely from what we put in our mouths and/or environmental toxins. Food is the focus here, and there are two main areas of research: sugar and poor quality fats.

Getting Puffy on PUFAs Fats can actually help reverse heart disease if you eat the right kind. However, the wrong kind can cause inflammation. Deadly diseases such as heart disease, diabetes, Alzheimer’s and cancer are among those spurred on by 36 Marine Log // February 2017

Cholesterol is critical for building healthy cells...the problem comes when it gets continuously produced. cans are Omega 3 deficient, and Omega 6 abundant. We presently average a 20:1 ratio toward the inflammation side (6s to 3s), instead of 1:1.

Sugar, A Likely Suspect We have two types of cholesterol measuring numbers on our standard blood test, HDL (high density lipoprotein) and LDL (low density lipoprotein). These molecules carry cholesterol around the body, delivering it to working cells, and removing debris when done. The problem is LDL breaks easily and oxidizes. It is these small particles of oxidized LDL that can embed in your artery walls.

3. Get A Better Test The LDL number in your standard blood test is actually a measure of two different particles. A small particle LDL that is dense and embeds/adheres to artery walls, and a large LDL particle that poses no known risk to your long-term health. When you get the standard cholesterol test, it does not separate these two numbers. If your LDL is “out-of-gauge” with HDL, it may be worth talking to your doctor about the simple blood test that can separate out the two LDL numbers. Knowing which LDL is high can better allow you and your doctor to understand your risk for heart disease and other long-term health issues. Additionally, LDL is perfectly acceptable if it exists in that right ratio to HDL. The Mayo Clinic and others identify this optimal ratio as less than 3.5-to-1. Understanding your cholesterol numbers, and how they impact your health can help you better plot and navigate an effective plan to keep your arteries clear for life. This article is written for educational purposes and nothing in it constitutes medical advice. Emily Reiblein

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holesterol is critical for the building of healthy cells, producing hormones, vitamin D utilization, neurological function, and digestion. Cholesterol is also vital to brain health, securing memories and allowing our brains to continue growing and making connections. We would die if we do not have enough cholesterol to work these functions.

2. Lower Sugars and Up the Veggies If your numbers are out-of-whack, cut back or stop consuming voluminous amounts of added sugars and sugar-producing foods (i.e. breads, pastas and flour-based items). Ramp up your vegetable intake—they’re fiber and nutrient rich, and low in sugar.

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