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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

June 2017

SHIPBUILDers Face Challenges 2017 Maritime Review & Yearbook

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Safety: Heed the signs


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CONTENTS

12

36

Departments

Features

2E  ditor’s Column Leaving Paris Climate Accord Sends Wrong Signal

19

Shipping A Dead Cat Bounce for the Dry Bulk Market? A temporary recovery will be followed by a downward trend

4 Industry Insights

22

U.S. Shipbuilding American Shipbuilding Roundtable Shipbuilders weigh in on what they need from government

25

World Shipbuilding Prospects Dim The shipbuilding crisis is set to last for at least 18 months

27

History The American Club: 100 Years in the Making The Club has evolved to be a truly international player

29

Tugs & Barges Giant ATB Order Spells Relief for Samsung SeaOne Caribbean orders world’s largest ATBs from SHI

32

Ferries The Next Great Wave NYC Ferry makes its highly anticipated debut

36

Environment Environmental Regulation to Shape Tanker Market Regulations will alter trade flows, change fleet composition

38

Crew Welfare Caring for a Ship’s Most Important Asset Telemedicine is bringing medical care to crews onboard

40

Opinion A Missed Opportunity on CCF The CCF Program has been ignored by private sector

6 Marine Innovations 8 Inland Waterways Fine Fiscal Year Funding

10 Wellness Column Fat for Life

12 Update  atson Goes Green M Admiral Receives Prison Sentence in Fat Leonard Case • First Dual-Fuel Tug Built in Europe is Delivered • New Containership Company Grows Fleet • Offshore Wind Projects Receive A Boost In Maryland • •

18 Inside Washington Applying for Small Shipyard Grants; New BSEE Director

42 Newsmakers GE Names Monica Caldas CIO of Transportation Unit

43 Tech News Wilhelmsen Taps Drone Technology

48 Safety First Heed the Signs June 2017 Yearbook // Marine Log 1


EDITOR’S COLUMN

MarineLoG June 2017 Vol. 122, NO. 6 ISSN 08970491 USPS 576-910 Subscriptions: 800-895-4389 PRESIDENT Arthur J. McGinnis, Jr. amcginnis@sbpub.com PUBLISHER & EDITOR-IN-CHIEF John R. Snyder jsnyder@sbpub.com Associate Publisher Jeff Sutley jsutley@sbpub.com

Leaving Paris Climate Accord Sends Wrong Signal

o

n the same day President Trump announced the U.S. withdrawal from the Paris Climate Accord, I was attending a press conference in Oslo on board The Vision of The Fjords, a new hybrid tourist vessel. At the press conference, Norway’s Minister of Trade and Industry Monica Maeland revealed the construction of a new allelectric ferry for Norwegian operator The Fjords. While the timing of the Minister’s announcement was purely coincidental, it did serve to starkly contrast the policies of the two nations. Norway clearly wants to remain a global frontrunner in the development of green marine technology. The global market for sustainable products and services, Artificial Intelligence, automation, and renewable energy is growing. The United States should be a leader, not a laggard. Withdrawing from the Paris Climate Accord sends the wrong signal to not only U.S. businesses, but also to international scientists who might have come to the U.S. to conduct their R&D. Ironically, one of the most popular cars in eco-friendly Norway is the Tesla—an American car. The country plans to reduce its greenhouse gas emissions by 30% by 2020. It’s nice to know that an American car is helping them get there.

And speaking of getting there, New Yorkers seem to have taken to the new NYC Ferry, operated by Hornblower. As Managing Editor Shirley Del Valle reports in “The Next Great Wave,” the popularity of the new service may require the city to order additional boats. That’s good news for U.S. shipyards, which like their international counterparts, need to refill their order books. As we went to press, there were a few bright spots for struggling Korean shipyards, with HHI receiving orders for 62 ships worth $3.8 billion from January this year. Samsung Heavy Industries, meanwhile, signed a letter of intent to build 12 large ATBs that would carry Compressed Gas Liquid for Houstonbased SeaOne Caribbean. I also want to mention that Matt Bonvento will be a contributor to Marine Log for our new “Safety First” column (p. 48). Matt is the Senior Manager, Safety, Security, Quality and Regulatory Compliance for Vanuatu Maritime Services Ltd.

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

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 marinelog@omeda.com or write to: Marine Log Magazine, Simmons-Boardman Publ. Corp, PO Box 3135, Northbrook, IL 60062-3135.

2 Marine Log // June 2017 Yearbook

CONTRIBUTING EDITOR Paul Bartlett paul.bartlett@live.co.uk WEB EDITOR Nicholas Blenkey nblenkey@sbpub.com CREATIVE DIRECTOR Wendy Williams wwilliams@sbpub.com Art Director Nicole Cassano ncassano@sbpub.com Graphic Designer Aleza Leinwand aleinwand@sbpub.com MARKETING DIRECTOR Erica Hayes ehayes@sbpub.com PRODUCTION DIRECTOR Mary Conyers mconyers@sbpub.com INTERNATIONAL SALES DIRECTOR David Cocoracchio davidc@carluca.com REGIONAL SALES MANAGER Heather Bonato hbonato@sbpub.com SALES REPRESENTATIVE KOREA & CHINA Young-Seoh Chinn corres1@jesmedia.com CLASSIFIED SALES Jeanine Acquart jacquart@sbpub.com

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.

MANAGING EDITOR Shirley Del Valle sdelvalle@sbpub.com

CONFERENCE DIRECTOR Michelle M. Zolkos mzolkos@sbpub.com CONFERENCE ASSISTANT Stephanie Rodriguez srodriguez@sbpub.com 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: marinelog@sbpub.com


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INDUSTRY INSIGHTS WELCOME TO Industry Insights, Marine Log’s quick snapshot of current trends in the global marine marketplace. With President Trump announcing his intention to withdrawal from the Paris Climate Accord, we thought it would be interesting to take a look at what the current forecasts are on how the U.S. will meet its growing energy demands by 2040. While energy from biodiesel and ethanol, renewables, and natural gas will all increase significantly, the bulk of the country’s energy will still come from fossil fuels. The U.S. EIA projects oil and liquid fuels and petroleum will meet 68.2% of U.S. energy demands in 2040, only slightly down from 70.52% in 2012.

Offshore Rigs Operating in U.S. GOM (on or about May 1 of respective year)

Future of Energy: 2040 How will U.S. meet its demands? OIL

31.9% 1.4%

ETHANOL, BIODIESEL, ETC. NATURAL GAS

30.4%

COAL

17.6%

44

2012

48

2013

53

2014 33

2015

8.0% HYDROPOWER 2.7% BIOMASS & RENEWABLES 7.7% OTHERS 0.3% NUCLEAR POWER

LIQUID FUELS & OTHER PETROLEUM

24

2016 18

2017

33.3%

0

Source: U.S. EIA

10

20

30

40

50

Source: Baker Year

A Closer Look at the U.S. Flag Fleet U.S. Flag Offshore Support Vessels

U.S. Flag Fleet, By Region

Age of U.S. Flag Fleet

649 7,141 32,292 Great Lakes Atlantic, Gulf & Pacific Coasts

2,911 (Number of vessels)

Mississippi River & Inland WW

40.4% (% of fleet older than 21 years old)

(All vessels, by number)

Source: U.S. Army Corps of Engineers, WTLUS 2015

Recent Shipyard Contracts, Launches & Deliveries, North America Qty

Type

Owner

Austal USA, Mobile, AL

1

LCS 12 Omaha

U.S. Navy

2017-2Q

Barbour JB Shipyard, St. Louis, MO

1

68 ft harbor tug

Southern Illinois Transfer

2018-1Q

Derecktor Shipyards, Mamaroneck, NY

1

65 ft research vessel

CUNY Brooklyn College

2017-2Q

Horizon Shipbuilding, Bayou La Batre, AL

1

120 ft towboat

Florida Marine Transporters

2017-2Q

Metal Shark, Jeanerette, LA

6

45 ft patrol boats

Vietnam Coast Guard

2017-2Q

Nichols Brothers Boat Builders, Freeport, WA

1

120 ft line haul tug

Kirby Offshore Marine

2017-2Q

Shipyard

Source: Marine Log Shipbuilding Contracts

4 Marine Log // June 2017 Yearbook

Est. $

Est. Del.

60


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Marine Innovations Arl-shipping.com Launches Liquid Bulk Logger Hong Kong-based arl-shipping.com Limited has launched its first mobile Android app for liquid bulk operators: Liquid Bulk Logger. The crew logs all significant operation milestones from anchorage arrival to post-handling cargo sampling, prior to, during and after a port call on a smartphone as they occur. The cloud app makes loggings available, and establishes current port call status visibility for the operator, stakeholders and terminal. The company also provides a number of apps to support operations, including Marine Logger. www.arl-shipping.com

Delta “T” Systems Off-Load Marine Hooks, SOLAS Certified Cranston-Eagle Marine Off-Load Hooks’ APR series from Delta “T” Systems is SOLAS certified and USCG approved. IMO’s amendment of SOLAS Chapter III and LSA Code issued guidelines on the evaluation/replacement of OLRSS (on-load release and retrieval systems)— helping to prevent falls, injuries and death. Manufactured from 100% stainless steel, the hooks feature unsurpassed strength and long service life. Offered in a variety of application types, the hooks will only open when the weight is off and the release cable is pulled. www.deltatsystems.com

RAYTEC Lighting Hazardous Areas with its SPARTAN Range of LEDs Hazardous area lighting manufacturer Raytec delivers class leading performance and reliability with its SPARTAN range of LED hazardous area luminaires. Available for Zone 1, Zone 2 and Industrial applications, all Raytec Hazardous Area products are designed and manufactured in the UK, are ATEX and IEC Ex approved and come with a five (5) year warranty. A unique modular design provides huge maintenance savings, while all SPARTAN luminaires are available with emergency battery backup. www.raytecled.com

SeaRoc Group SeaHub for the Offshore Industry SeaRoc Group’s SeaHub is a monitoring, voice and data communication solution that links land-based operations to platforms and wind farms via satellite and other data services. The system is made up of unmanned, mobile containers that house all required equipment for reliable communications and data sharing. Inside are VHF A and M radios, TETRA, AIS, ADSB, MOB and other high-tech communication equipment. All systems include fire detection and suppression technology that are monitored/managed by SeaRoc’s SeaPlanner. www.searoc.com

SPEARS MANUFACTURING COMPANY EverTUFF CPVC Schedule 40 & 80 Pipe and Fittings Spears EverTUFF CPVC Schedule 40 & 80 Pipe and Fittings is now USCG approved for use in marine applications. The approval allows Spears quality CPVC schedule 40 & 80 products for use in pressure applications from onboard water and waste treatment to ballast systems. Offered in sizes 1/2 inch through 12 inch; the EverTUFF CPVC Schedule 40 & 80 pipe and fittings system provide a durable, corrosion resistant and low cost of ownership alternative to existing products that can be difficult to obtain. www.spearsmfg.com 6 Marine Log // June 2017 Yearbook


inland waterways

Fine Fiscal Year Funding

8 Marine Log // June 2017 Yearbook

funding, including at least $46.5 million in additional O&M funds for inland navigation and $1.3 billion for activities funded by the Harbor Maintenance Trust Fund, which hits the Water Resources Development Act (WRDA)-required target. It also provides $362 million, a $17 million increase from the FY 2016 level, for Mississippi River & Tributaries.

Our inland waterways support the nation’s shippers and our U.S. economy

Related to Public Private Partnerships (P3s), an explanatory statement accompanying the bill noted that “…until such time as a comprehensive (P3) policy is established…, the Corps shall discontinue all work on project-specific public-private partnerships beyond the P3 project selected [Fargo/ Moorhead] as a new start in fiscal year 2016.” The absence of any directive language to require the Corps to resume Pre-construction Engineering Design (PED) for the Navigation and Ecosystem Sustainability Program (NESP) was tempered by an explanatory statement directing the Corps to take steps necessary to ensure that new construction projects can be initiated as

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

Shutterstock/ Elena Yakusheva

O

n May 4, the FY 2017 Omnibus Appropriations bill that provides funding for the U.S. Army Corps of Engineers through the Consolidated Appropriations Act of 2017 was passed by Congress and applauded by the inland waterways industry. The bill provided FY 2017 funding for the Corps’ Civil Works mission at a total of $6.038 billion, a slight (0.8%) increase above the FY 2016 funding level, but almost a 31% increase above the Obama Administration requested level. The bill also provides full-use of estimated annual revenues from the Inland Waterways Trust Fund (IWTF). While Congress agreed with President Obama’s request for $225 million for the Olmsted project, the Corps of Engineers, rather than Congress given the earmark ban, will decide project-specific allocations for additional funding. Depending on how the Corps decides to make these allocations to eligible projects, between $375 million and $393 million will be provided for IWTF-funded projects in the FY 2017 Corps’ workplan that is due 45 days after the Omnibus bill’s enactment. In order to avoid incurring preventable cost increases for IWTF projects due to expiring contract options applicable to as many as three priority projects (Lower Mon, Kentucky and Chickamauga), the Corps is directed to allocate necessary funds within 10 days of enactment (May 5) of the FY 2017 bill to affected projects. The FY 2017 Omnibus bill provides $3.149 billion for the Corps’ Operations & Maintenance (O&M) account, which is the fourth consecutive year of record-level

soon as they can be supported under the capital program. Together with the $5 million in additional appropriation for inland navigation included in the Corps’ Investigation Account, the statement could be used to expedite the resumption of NESP PED if the Trump Administration is inclined to support it. Our inland water ways suppor t the nation’s shippers and our U.S. economy by offering the most cost-competitive way to move bulk freight that is used domestically, and onto the international export markets. And it is shipped in the most fuel-efficient, environmentally sound, traffic congestionrelieving way. And data bears this out in a newly updated National Waterways Foundation study titled, “A Modal Comparison of Freight Transportation Effects on the General Public: 2001-2014. The study compares truck, rail and inland marine transportation by way of safety, energy efficiency, environmental impact and congestion. It was performed by the Center for Ports and Waterways at the Texas Transportation Institute (TTI) of Texas A&M University. In 2015, the inland waterways transported 575.5 million tons of cargo valued at $229 billion. Keeping that cargo on the water instead of our highways is equivalent to 49 million truck trips! The new data from the study tells us that modern trucks can move a ton of cargo 145 miles on a single gallon of fuel. Newer railroad locomotives can move that ton of cargo 477 miles on that same gallon of fuel. But when you move that ton of cargo by barge, it can go a whopping 647 miles on a gallon of fuel. The inland waterways are critical to commerce, moving massive quantities of cargo with less negative societal impact than by other surface modes. Waterways deserve efficient funding, which FY 2017 provides. To learn more about WCI’s work, visit www.waterwayscouncil.org To s e e t h e N a t i o n a l Wa t e r w a y s Foundation study, visit www.nationalwaterwaysfoundation.org


WELLNESS COLUMN

Fat for Life

10 Marine Log // June 2017 Yearbook

“Despite popular belief among doctors and the public, the conceptual model of dietary saturated fat clogging a pipe is just plain wrong. A landmark systematic review and meta-analysis of observational studies showed no association between saturated fat consumption and (1) all-cause mortality, (2) coronary heart disease (CHD), (3) CHD mortality, (4) ischaemic stroke or (5)

Fat Facts:

What if these past decades of advice on saturated fat was based on nothing more than bad science? type 2 diabetes in healthy adults. Similarly in the secondary prevention of CHD there is no benefit from reduced fat, including saturated fat, on myocardial infarction, cardiovascular or all-cause mortality.” Far from a benefit of fat reduction, the article goes on to identify that fats (even saturated fat increases) can combat coronary artery disease and quiet the chronic inflammatory condition that has a menacing hold on our population. The cardiologists identify that a high fat Mediterranean style diet, low in sugar and refined carbohydrates can quiet inflammation and insulin resistance, beating back both heart disease and diabetes.

(1)Saturated fats and cholesterol are precursors to make hormones in the body, including testosterone. (2) Saturated fats like the ones in coconut oil and avocados increase HDL Cholesterol. It is HDL to Total Cholesterol (TC) ratio that appears to be the best predictor of cardiovascular risk. (3) Omega-3 Fatty Acids are anti-inflammatory. (4) Your brain is made up of 60% fat; it contains over 100 billion neurons, each neuron has between 1,000 to 10,000 synapses—which need fat to work properly. (5) Eating fat does not make you fat. Eating sugar does. (6) Fat can oxidize and become inflammatory in the presence of sugar, or things that spike your glucose. Nothing in this article constitutes medical advice, all medical advice should be sought from a medical professional. Emily Reiblein

Crowley Maritime Corporation, Labor Relations-Union Wellness Programs/ Operations Integrity

Shutterstock/ farbled

D

ecades of dietary advice have lead us to believe that fat, particularly saturated fat, is bad for us. Clogging our arteries, growing our waistlines and relegating bacon, butter and steak to existing as the smallest bit of tasty treat on our plates, on rare occasion. What if these past decades of advice on saturated fat was based on nothing more than bad science, “cherry-picked” data, and funding that was poorly allocated for one-sided research that was scantily reported? The history of saturated fat and its demise from our diets starts primarily with a man named Ansel Keys. In the 1950’s Keys set out to prove the Diet-Heart Hypothesis, which theorized that eating fat caused artery clogging cholesterol. His research and charismatic nature drove his hypothesis into the main stream media, gained him the cover of Time Magazine, garnered him appointments to boards, and government consult. Although many other doctors and scientists at that time identified his lack of consistent data, and cherry-picked/selectively reported results, his work got worldwide attention. The resulting mantra banished bacon, butter, steak and all other manner of tasty fat. Today, however, the research and data continues to mount from a multitude of sources identifying that saturated fat and cholesterol is necessary for good human health and a long life. This was most recently decreed by three of the world’s top cardiologists in the British Journal of Sports Medicine (25 April 2017). Their editorial, “Saturated Fat Does Not Clog Arteries,” echoes the statements made back in the 50’s and 60’s when Keys first burst onto the scene.

But what about LDL Cholesterol you ask? In the February 2017 issue of MARINE LOG, the Wellness Column “Understanding Cholesterol” identified, debunked and dismantled the idea that your dietary cholesterol causes artery-clogging LDL. The British Medical Journal recently published work (6/2016) identifying that certain types of high LDL actually increase years of life in elderly people, and to further the point, back in 2009, researchers at UCLA David Gaffen School of Medicine found 75% of heart attack victims have “normal” levels of LDL. So where do we go from here? Our Doctor’s review identifies that in addition to a high fat Mediterranean style diet (high in vegetables, extra virgin olive oil, fish, etc.), lowering sugar and refined grains is key. Additionally, preventing the formation of plaque build-up in the arteries needs to include walking 22 minutes a day at a moderate pace. They also include the need for stress reduction, and smoking cessation. Taken together, cardiovascular disease can be reversed, and this simple prescription of lifestyle and dietary changes can start paving the way to keep your heart pumping and reduce the need for medical intervention.


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Update

BIZ NOTES Fincantieri closer to STX France takeover

Matson Goes Green with D7 Class Upgrades Following three months of upgrades,

Honolulu-based Matson, Inc. welcomed back to Alaska the Matson Anchorage. The 216 m ship, built in 1987 by Bay Shipbuilding, Sturgeon Bay, WI, was the last of Matson’s three D7 Class containerships ser ving Alaska to undergo an equipment upgrade. Work, which was conducted at China’s COSCO Nantong Shipyard, included the installation of a hybrid “wet scrubber” exhaust gas cleaning (EGC) system provided by Alfa Laval. Matson says the equipment virtually eliminates particulate matter and sulfur from the vessel’s engine exhaust, making it one of the cleanest ships operating in Alaska. When operating within 12 miles of the coastline,

it uses a closed loop system that sprays fresh water treated with sodium hydroxide into the vessel’s exhaust system and then collects and treats the wash water to neutralize harmful compounds. Consistent with Matson’s zero-solid-waste policy, the wash water is then off-loaded in port for disposal in accordance with strict environmental standards. Matson’s Alaska fleet upgrades were part of a more than $50 million investment in new equipment and upgrades at its Alaska operations in its first 18 months in the market. Matson, Inc. acquired Horizon Lines, Inc.’s Alaska operations back in 2015 for $469 million with a commitment to continuing the company’s 50-year operating history in Alaska.

Fincantieri S.p.A has signed a share purchase agreement for the acquisition of 66.66% of the share capital of STX France. Its current shareholder is STX Europe AS. The agreement entails a purchase price of EURO 79.5 million to be paid though available financial resources and is subject to customary conditions for these types of transactions. Under the agreement, Fincantieri will take over 48% of the capital of the Saint-Nazaire s hipyard — with the remaining balance of the 66% being held by independent It alian inves tor Fundazione CR ( C assa di Risparmio) Trieste. STX France currently has about 2,600 employees. “Through this industrial par tnership,” says Fincantieri, it and “STX France will create a global leader in all high-tech shipbuilding industry sectors. The perfect complementarit y of Fincantieri and STX France cruise activities and products would allow the two companies to serve all the clients and end-markets and to generate value not only for the shareholders, but also for the employees and the respective subcontractor networks.”

Rear Admiral Gets Prison Sentence in Fat Leonard Case U.S. Navy Rear Admiral Robert Gilbeau has been sentenced to 18 months in prison for lying to investigators in order to conceal his illicit 20-year relationship with Leonard Glenn Francis, the owner of Glenn Defense Marine Asia (GDMA). GDMA, a foreign defense contractor, is at the center of the bribery and fraud scandal known as the “Fat Leonard” case. GDMA provided ship husbanding services to U.S. Navy ships. Gilbeau is the highest-ranking U.S. Navy officer to be sentenced in the investigation thus far. Last summer, he pleaded guilty to one count of making false statements. He admitted that he lied when he told agents 12 Marine Log // June 2017 Yearbook

from DCIS and NCIS that he had never received any gifts from Francis. He further admitted that when he became aware that Francis and others had been arrested in connection with the case in 2013, he destroyed documents and deleted computer files. As stated in his plea agreement, in 2003 and 2004, Gilbeau was the supply officer on the USS Nimitz, where he was responsible for procuring all goods and services necessary for operation of the ship. He later served as head of the Tsunami Relief Crisis Action Team in Singapore, heading the Navy’s logistics response to the Southeast Asia tsunami in December 2004, and in June 2005, Gilbeau was assigned to the office of

the Chief of Naval Operations as the head of aviation material support, establishing policies and requirements for budgeting and acquisitions for the Navy’s air forces. In August 2010, after he was promoted to admiral, Gilbeau assumed command of the Defense Contract Management Agency International, where he was responsible for the global administration of DOD’s most critical contracts performed outside the United States, according to admissions made in connection with his plea. In total, twenty current and former Navy officials have been charged in this case thus far. Of those, 10 have pleaded guilty, meanwhile the other cases are pending.


Update

First Dual-Fuel Tug Built in Europe is Delivered Hoppe Marine 15 knots and has remarkable direct and The first dual-fuel tug built in Europe has Takes on Intering Biz

been delivered. Norway’s Østensjø Rederi A/S took delivery of the 40.2 m vessel from Spanish shipbuilder Astilleros Gondan. Named Dux, the tug is the first in a series of three escort tugs that will provide service to Statoil at its far-north terminal located in the Barents Sea. The tug is built to withstand harsh environments—with the ability to operate at temperatures as low as 20 degrees below zero. The tug is based on Robert Allan Ltd.’s RAstar 4000-DF Design—its unique sponsoned hull-form provides superior escort performance and improved sea-keeping. The Dux has a free running speed of

indirect towing performance, providing for an exceptionally high direct pull and escort forces; 107-ton bollard pull and 167-ton steering force, both certified by Bureau Veritas. Dux, which will operate on either LNG or marine gas oil, will conduct approximately 300 LNG ship escorts annually, will assist with berthing operations and will be ready for emergency services, such as long line towing, fire fighting, and oil spill response. The tug can accommodate a crew of eight, and was built with the crew’s comfort in mind, with a very low level of noise and vibration in the crew cabin.

Hoppe Marine GmbH has acquired

Rolls-Royce’s Intering business. The acquisition became effective on May 8, 2017. The sale is part of Rolls-Royce’s ongoing divestiture of units not related to its core business. Under the buy out, Hoppe Marine will attain U-Tank Systems for roll damping, Blower Anti-Heeling systems for seagoing ships (as stand-alone or combined solutions), and pump-based Anti-Heeling systems. “We are convinced that our former Intering customers will be in good hands at Hoppe Marine,” said Rolls-Royce Marine Deutschland’s Janne Silden. The buy enables Hoppe Marine to offer broad expertise in tailor-made, optimized solutions for anti-heeling and passive roll damping systems, under its brands. “With the acquisition of Intering, Hoppe Ma r i n e c a n f u r t h er con s o l i d a te a n d expand its leading-edge competence on the field of anti-heeling and passive roll damping solutions (Motion Control), a sector which is of key importance for safe and efficient cargo and passenger shipping,” navy and coast guard vessels and offshore vesels, said Marc Rohde, Managing D i re c tor a n d S h a re h o l der of Hopp e Marine GmbH.

MARITIME Trivia­– Question #49: How did signal cannons help celebrate the completion of the Erie Canal? The first sailor or lubber that correctly answers the Maritime Trivia question will receive a J. Clary collector print. Email your guess to marineart@jclary.com. April’s trivia question: Who said, “When I’m playful I use the meridians of longitude and parallels of latitude for a seine, and drag the Atlantic Ocean for whales.” Answer: Mark Twain. Submitted by John Redner, Owner, Redner’s Boat Works, LLC.

June 2017 Yearbook // Marine Log 13


Update

BIZ NOTES New containership company grows fleet Recently formed start-up containership company MPC Container Ships AS has wasted no time in splashing onto the scene. The company recently announced it has invested $38 million in the acquisition of seven container vessels. Formed back in April by Hamburg- headquar tered MPC Capital AG, the new company’s focus is on the small-size containership market— bet ween 1,000 and 3,000 TEU. The company’s plan is to continue expanding its growth opportunities and additional ves sel transactions. MPC Container Ships AS has already has agreed to acquire an additional six vessels, includi n g o n e 1, 2 0 0 T EU, o n e 2,500 TEU and four 2,800 TEU vessels.

Historic Philippines Sts Lng Transfer The first Philippines ship-to-ship (STS)

LNG transfer has taken place. Koch Supply & Trading (KS&T) reports the transfer took place between private Chinese company JOVO and Malaysian ship owner MISC. The project was managed by Teekay Marine Solutions with Teekay and MISC providing extensive LNG experience to ensure a safe and successful transfer. The mother vessel first loaded cargo from Australia before transferring it to a smaller daughter vessel at Subic Bay in the Philippines. Then the cargo was delivered to JOVO’s Chinese terminal where it was distributed by truck to industrial and

commercial customers throughout Southern China. Calling the transfer the first of many, KS&T says that the project represents a key commercial milestone as a recurring STS transfers demonstrate the commercial potential for activities of this kind, opens the market for exporters, and provides new supply sources to those with LNG requirements. Stephen Davidson, Vice President — LNG, Teekay Marine Solutions said, “We hope this is the start of a new long term partnership with all parties building on the work that has already been completed to bring this first historic job to fruition.”

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Update

WETA’s Hydrus Goes into Service The first in a series of four Incat Crowther

designed, 400-passenger catamaran ferries built for the Water and Emergency Transportation Authority of San Francisco (WETA), is now in service. Hydrus is powered by a pair of MTU 12V4000M64 EPA III main engines, each producing 1,453 kW, and generating a service speed of 27 knots. The new series of ferries are being built by Vigor. The hulls are being built by Vigor Ballard (formerly Kvichak) and the superstructure will take shape at Vigor’s Harbor Island shipyard. The ferry is designed for efficient, optimized operation. Its low wake hullform maximizes waterline length, lowers resistance, and increases speed.

The 135 ft ferry is one of the first passenger vessels to enter service with an advanced exhaust after treatment. The system ensures Hydrus complies with the latest U.S. emissions regulations and makes it one of the lowest emission ferries operating in North America. Incat Crowther worked with suppliers to create an efficient layout for the system that minimizes noise ingress to the cabins and has minimal effects on passenger flow and operations. “The four Vigor vessels will play critical roles in maintaining service reliability in WETA’s planned expansion of the ferry service on the San Francisco Bay,” says Nina Rannells, WETA Executive Director.

BIZ NOTES SHi wins $100 million LNG carRier order Samsung Heavy Industries Co., Ltd., (SHI), South Korea, has won a $100 million contract to build two 7,500 m3 LNG carriers for Kogas. Upon delivery, the ships, which will use the KC-1 containment system, will transpor t Liquefied Natural Gas from Tongyeong, Gyeongsangnam- do to Jeju Island. One of the vessels will be built with LNG bunkering capability. The ships are expected to help meet increasing LNG demand in China and Southeast Asia. The 0.1% SOx regulation going into ef fec t in 2020 is likely to increase demand for LNG-fueled vessels, LNG bunkering vessels and near-sea transpor t utilizing small-scale LNGCs. In total, Samsung Heavy has won $2.3 billion in orders this year.

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June 2017 Yearbook // Marine Log 15


Update

Offshore Wind Projects Receive a Boost in Maryland

Ship Management Naval Architecture Marine Engineering Services Shipyard Management Ocean/Air/Intermodal Cargo Transportation Petroleum Transportation/Distribution Port Operations Vessel Chartering Ocean Towing Arctic Solutions LNG Solutions Logistics & Warehousing Crisis Response Salvage & Emergency Response

For more information, visit crowley.com/government 16 Marine Log // June 2017 Yearbook

when the Maryland Public Service Commission (MPSC) awarded offshore wind renewable energy credits (ORECs) to two projects that will be built off the coast of Maryland. The decision, according to the MPSC, will enable U.S. Wind, Inc. and Skipjack Offshore Energy, LLC to construct 368 megawatts of capacity, which together would yield over $1.8 billion in in-state spending, create close to 9,700 new direct and indirect jobs, and contribute $74 million in state tax revenues over 20 years. U.S. Wind’s offshore wind farm would cost about $1.575 billion to develop. The farm would be comprised of 62 turbines, located about 12 to 15 miles off the Maryland coast. Operation of the farm is expected to begin January 2020. U.S. Wind is also the leaseholder of the North Lease Area in New Jersey—an area that is 183,353 acres off the coast of Atlantic City. And has responded to a Call for Information for the commercial wind leases in four areas off the South Carolina coast. Meanwhile, Skipjack Offshore Energy’s wind farm is being developed by Deepwater Wind and will be made up of 15 turbines located 17 to 21 miles off the coast. The cost to develop the Skipjack windfarm would be about $720 million and is expected to be operational by November 2022. Deepwater Wind, as some may remember, is the developer of the Block Island Wind Farm off of the state of Rhode Island—the only commercial offshore wind farm in the U.S. Both U.S. Wind and Skipjack Offshore Energy will be required to use port facilities in the greater Baltimore region and Ocean city for construction, operations and maintenance activities. The developers must also collectively invest at least $76 million in a steel fabrication plant in Maryland, and together fund at least $39.6 million to support port upgrades at the Tradepoint Atlantic shipyard in Baltimore.

Shutterstock/ petrmalinak

Offshore wind got a blow in the right direction last month


Update

Vietnam Coast Guard Takes Delivery of Six Patrol Boats

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the increased security cooperation between the U.S. and Vietnam, Metal Shark, Jeanerette, LA, recently delivered six new military patrol boats to the Vietnam Coast Guard. The welded-aluminum Metal Shark 45-foot Defiant pilothouse patrol vessels will be used by the Vietnam Coast Guard on law enforcement missions focused on smuggling, illicit trafficking, piracy and armed robbery against ships, and illegal fishing. The Defiant class is among Metal Shark’s most popular—having been extensively proven among military operators, with parent craft vessels in service with the U.S. Coast Guard, U.S. Navy and the militaries of U.S. partner nations. The patrol boats were built at Metal Shark’s Franklin, LA, shipyard, and are powered by twin Cat C-9 diesel engines mated to Hamilton water jets. The vessels were officially handed over by U.S. Ambassador Ted Osius to the Vietnam Coast Guard in the province of Quang Nam. “Vietnam’s future prosperity depends upon a stable and peaceful maritime environment,” said Ambassador Osius. “The United States and the rest of the international community also benefit from regional stability, which is why we are here today, and it is why we are very pleased to be working together with the Vietnam Coast Guard.” “Metal Shark was honored to be selected for this historic opportunity to provide state-of-the-art American-made defense articles to Vietnam,” said Henry Irizarry, Metal Shark’s Vice President of International Business Development. “Our team worked closely over an extended period, in concert with U.S. officials and also directly with the Vietnam Coast Guard, to design, build, and deliver a fleet of specialized patrol craft that will increase the Vietnam Coast Guard’s capability to maintain stability in Southeast Asia.”

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June 2017 Yearbook // Marine Log 17


inside washington

Applying for Small Shipyard Grants; New BSEE Director

O

n e o f the most popular ongoing federal grant programs for the U.S. maritime industry is the U.S. Maritime Administration’s Small Shipyard Grant Program. For years, small shipyards have clamored for more funding. The Maritime Administration (MARAD) usually gets 10 times as many applications from shipyards as it can select. With only $9.8 million available, this year’s Small Shipyard Grant Program is sure to be oversubscribed. Shipyards can now send in their applications, following the enactment of the Consolidated Appropriations Act of 2017 on May 5. Shipyards will have until July 5 at 5 PM to get

18 Marine Log // June 2017 Yearbook

their applications in. The awards will be announced no later than September 5, 2017. MARAD expects to select between five to 12 applicants. It’s easy to understand the program’s attractiveness. It provides grants of about $1 million to help shipyards make capital improvements such as in equipment (i.e. panel lines, cranes, or dry docks) or training that will make the builder or repairer more efficient, productive and competitive. The grants can cover up to 75% of the cost of the investment. Applicants are limited to shipyards that don’t have more than 1,200 production workers. For further information, contact David M. Heller, Director, Office of Shipyards and Marine Engineering, Maritime Administration, Room W21-318, 1200 New Jersey Ave., SE, Washington, DC 20590; phone: (202) 366-5737.

New Bsee Director The former Vice Chairman of the Louisiana Public Service Commission, Scott A. Angelle (pictured) has been named the Director of the Bureau of Safety and Environmental Enforcement (BSEE), which as part of the Department of the Interior provides regulatory oversight of oil and gas activities on the U.S. Outer Continental Shelf (OCS). Angelle has held numerous positions in government, including Interim Lieutenant Governor, Secretary of the Louisiana Department of Natural Resources, and St. Martin Parish President. Angelle served for eight years as Louisiana’s Secretary of the Department of Natural Resources and also as Chairman of the Louisiana State Mineral Board, and as a member of the Louisiana State University Board of Supervisors, Southern States Energy Board, and the Louisiana Coastal Port Advisory Authority.


Shipping

A Dead Cat Bounce For The

dry bulk market? Market sees a temporary recovery before returning to its downward trend By William Bennett, Senior Analyst, VesselsValue

C

ould rates for dry bulk ships be recovering? Over the last 12 months, values have been stable, sitting close to 25-year low. In February 2016, a 5-year-old Capesize could be bought for $20.6 million. Over the last two months, according to data compiled by VesselsValue, there has been a recovery in the market value for bulkers, with bulker values rising 50% and a five-year-old Capesize vessel being sold in excess of $32 million (i.e., sales of the 2012built Dong A Artemis). However, over the last month we have witnessed a softening in BCI rates from a peak of $20,000/day at the end of March down to $10,000/day at press time. The total spent between January and April 2017 is in line with last year, however, it is a far cry from the $2 billion spent on Capesize vessels in 2014.

So what’s happening? VesselsValue’s commercial arm, Seasure Shipbroking, is witnessing the beginnings of a softening market and for many in the dry bulk space are wondering if this is a “dead cat bounce”—a temporary recovery in an otherwise bearish market. There is also a similar story for the smaller bulker vessels, such as the Panamax sector. Over the last few months these vessels have seen similar gains in market value, however, the industry is dealing with the fundamental issue of oversupply. To counter this, there has been a lot of slow steaming over the last few months, which has affected the available capacity, but it is a short-term solution. This tactic will have to be consistently employed without the addition of any more tonnage and continued scrapping.

Why Historic Lows for S&P Values? In simple terms, current excess shipyard capacity, combined with availability of capital and positive swings sentiment, has allowed large amounts of newbuildings to be ordered and delivered. This was particularly evident in 2013/2014 where an improvement in sentiment in the dry bulk sector led to a large amount of newbuilding orders in a very short period. This was mostly financed by an influx of private equity money, ordering newbuilding “eco” engines when they thought values had bottomed out. The small signs of a recovery towards the end of 2013 and throughout 2014 failed to turn into sustained growth. However the consistent level of newbuild deliveries combined with lackluster dry bulk demand, brought the market to the historic lows first achieved in 2016. June 2017 Yearbook // Marine Log 19


Shipping New Financing In recent lease back deals, a different type of financing is making headway into the industry. These financial companies will buy a vessel and lease it back to the original owner on a bareboat charter. These companies prefer to buy vessels that have already been built. Therefore the companies that are ordering new vessels are typically companies that have access to private financing. Earlier this year there was a gap in the deliveries, and there was a lot more capacity in the shipyards. This allowed owners to source competitively priced newbuilding orders. Over the first four months of 2017, there has been a huge increase in tanker orders, however, there has not been the same appetite for dry bulk. So far this year, 29 bulker vessels, or just over 3 million dwt, have been ordered, but half of these (12 vessels) have been placed by Chartworld Shipping in three separate orders since the beginning of February 2017.

Total Capesize Spend $ Mil. Traded S&P Greece, Jan-April 2011-2017

$2,500

USA Dominate New Orders in 2017

$2,000

Total spent in $ Mil. on second hand Capesize vessels during the first four months of each year between 2011 - 2017

$1,983

$1,500

$1,000 $837

$500

$538

$859

$633 $513

$281

$0

11

20

12

20

13

20

14

20

15

20

16

20

17

20

With market values for second hand vessels reaching historic lows, a small selection of cash rich owners have been buying cheap dry bulk assets. These owners are able to provide their own financing to buy these vessels and once these ships change hands, the owners are able to survive a period without sustained earnings. There is a large variety of owners who have been taking advantage of these low values, selectively buying dry bulk vessels over the last year and a half. Winning Shipping, a dry bulk owner based in China, has managed to purchase 16 Capesize vessels in the last 18 months. If they were to resell these vessels today, they would make a profit of $112 million, regardless of any profit they made by running these vessels during that time. On the other hand, Anangel Maritime Services, run by Greek billionaire John Angelicoussis, only buys resale, relatively new Capesizes at the bottom of the market or just before the values start to increase. He bought one in 2009 at the crash, three in 2015 and seven in 2016 just as the BDI (Baltic Dry Index) hit the low period. Angelicoussis was also able to purchase lower priced assets during Scorpio bulker’s mass sell off of tonnage at the beginning of 2016. The question for the industry today has to be how soon the recovery will come for owners who are reorganizing their fleet in order to maintain a profit and will the industry learn from the continuous cycle of over-ordering when a recovery in the supply demand balance is in sight. 20 Marine Log // June 2017 Yearbook

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S&P Asset Play


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U.S. SHIPBUILDING Fincantieri Bay Shipbuilding builds a wide array of vessels, as well as repair work for the Great Lakes fleet

AMERICAN SHIPBUILDING ROUNDTABLE By John R. Snyder, Publisher & Editor in Chief

D

uring the Presidential campaign then-candidate Trump talked about his “Amer ica First” Initiative—supporting American businesses through tax cuts and slashing red tape, rebuilding the nation’s infrastructure, and committing to a strong defense, including a 350-ship Navy. Five months into the Trump Administration, Marine Log decided to ask a roundtable of prominent American shipbuilders and repairers to share their thoughts on what policies and programs they would like to see instituted and implemented in Washington to support the growth and prosperity of the industry. “We’re encouraged by an Administration and a Congress that have an open interest in the shipbuilding industrial base,” says Craig Perciavalle, President, Austal USA, Mobile, 22 Marine Log // June 2017 Yearbook

AL. “The shipbuilding industry is a national security asset that cannot be allowed to atrophy any further. Building more ships is a good thing for the shipbuilding industrial base and our associated suppliers, but it’s a better thing for our Navy. We’re encouraged to hear the Administration’s sentiments about growing the U.S. Navy and look forward to the shipbuilding plan and budget stabilizing. Achieving a 350-ship Navy will require cost-effective solutions and that’s exactly what we provide.” Austal USA operates one of the largest aluminum vessel fabrication facilities in the world, employing more than 4,000. Perciavalle says that there has been over $400 million invested in the Austal USA facility in Mobile—more than $350 million invested by parent Austal Ltd. “It’s a

state-of-the-art facility—the newest ship manufacturing facility in the country, spanning 164 acres with over 1 million ft 2 of manufacturing space,” says Perciavalle. “This investment includes a 700,000 ft 2 module manufacturing facility featuring two hightech assembly lines that move modules to the erection bays in the final assembly area. We have been able to significantly reduce build times and thereby cost, for each ship by focusing on lean manufacturing methods that are sharply directed at safety, eliminating waste (in material and time), and continuously improving our processes, procedures and costs.” Austal USA currently only builds for the U.S. Navy, but is actively looking to expand its market internationally. “We’re proud of the two programs we build at Austal USA,”

Photo credit: Fincantieri Bay Shipbuilding

Shipbuilders and repairers weigh in on what they would like to see from the Trump Administration and Congress


U.S. SHIPBUILDING said Perciavalle. “The Expeditionary Fast Transport (EPF) program has been a success story for us and now we’re seeing them be successful in the fleet. EPFs deploy worldwide within a year of delivery and watching the mariners from the Military Sealift Command take them to sea is the best thing for a shipbuilder. The LCS program is now on track—we’re delivering two ships a year under the Congressional cost cap. USS Coronado (LCS 4) is forward deployed to Singapore and doing great things. Both programs are now successful and filling critical gaps in the fleet. Given the fact [that] both programs are cost-effective platforms, we hope both will be extended.”

More Support for Title XI, FMF Paul J. Albert, CEO, VT Halter Marine, Inc., Pascagoula, MS, says he’d like to see more support for the U.S. Maritime Administration’s Title XI Shipbuilding Loan Guarantee Program, as well as Foreign Military Funding (FMF) programs that assist the country’s allies in purchasing defense equipment. A strong supporter of the Jones Act, Albert says, “Similar to many other shipbuilders, VT Halter Marine’s employment has been severely impacted by the downturn of oil prices and past sequestering and budget cuts. Our current employment levels are less than 1,000 employees compared to just a few years ago when we employed almost 3,000 employees.” He wants more region areas opened up for offshore drilling, as well as expansion of the Marine Highway Program for the U.S. East Coast. He’d also like to see emerging opportunities, such as offshore windfarm vessels built domestically and crewed by American mariners. “We do not compete internationally for ship repair, but have had some success in newbuilding programs,” says Albert. “VT Halter Marine, Inc. was successful in Foreign Military Sales, Foreign Military Funding, and Direct Commercial Sales (DCS). For instance, the Egyptian Navy Fast Missile Craft (FMC) program was a FMS Program in which the Government of Egypt requested Fast Missile Craft vessels. The program was successfully administered by the U.S. Navy.” Since 2005, VT Halter Marine has invested $131 million to increase the size and number of its cranes, pave its facilities, increase its launch capacity, add a drydock, purchase 75,000 ft2 of warehouse space, and create a repair division. It recently held a groundbreaking for a new state-of-the-art blast and paint facility. “We need a champion in Washington to focus on and support the U.S. commercial shipbuilding industry,” says Albert.

Rebuild the Navy “We fully support the Administration’s goal of a 350-ship Navy,” says Francesco Valente, President & CEO, Fincantieri Marine Group. “It is critical to guarantee global presence in order to protect the nation’s interest. It also helps to restore the national shipbuilding industrial base and to create manufacturing jobs. Clear, long-term plans and stable funding are essential to continued industry investments in infrastructure and workforce. It’s also important to recognize that actions which benefit shipbuilding communities all across the nation. The steel, gears, materials, engines and sophisticated equipment that become a ship originate from all over America. Shipbuilding is like the rising tide that raises all things.” The Fincantieri Marine Group has three shipyard subsidiaries based in Wisconsin: Fincantieri Marinette Marine, F i n c a n t i e r i B ay S h i p b u i l d i n g , a n d Fincantieri ACE Marine. FMG employs about 2,500 at its shipyards. “We also embrace the Administration’s focus on Infrastructure. Inland and coastal waterways are vital to job growth, economic success and national security. Modern and well-maintained infrastructure will allow large ships to transit the Mississippi River connecting the Great Lakes to the Gulf of Mexico. Increasing width and depth of the Saint Lawrence Seaway and its system of locks would allow transit of oceangoing vessels from the Great Lakes to the Atlantic Ocean and back. In all this, we need to consider that in addition to new construction, maintenance of existing infrastructure is critical; to that end, full funding of the budget for the U.S. Army Corps of Engineers is important,” states Valente. “Finally, a big focus in national dialogue has been access to the seas in the North, both the Great Lakes and the Arctic. The building of additional Icebreakers is of paramount importance. On the Great Lakes, one or two additional vessels would make navigation feasible year-round, and keep commerce flowing over the winter months. The delivery of six Heavy Polar Icebreakers (HPIB) would guarantee the right level of access to our Navy and Coast Guard to the Arctic.” Valente also adds that the Jones Act, “has worked very effectively to protect America’s shipbuilding industry and to create innovation and competition in the shipbuilding trades; and importantly, the Act provides significant homeland and national security benefits to the United States.” Fincantieri Marine Group is part of a global shipbuilding enterprise with 19,000 shipbuilding professionals in 20 shipyards

Craig Perciavalle

Francesco Valente

Paul J. Albert located on four continents. “Although Fincantieri Marine Group’s concentration is on the American market, we benefit from the vast experience and resources of our parent, including a wide portfolio of proven designs, the transfer of innovative technology, and the strength, stability and worldwide reputation of Fincantieri.” June 2017 Yearbook // Marine Log 23


U.S. SHIPBUILDING President’s FY18 Requests for Navy Budget Falls Short on Ships I f y o u t h o u g h t t h e Tr u m p Administration would kickstart the path to a 355-ship Navy in its FY 2018 budget submission, think again. Though the overall Navy budget is up, this year’s shipbuilding request actually asks for fewer ships than were funded for FY 2017. Notably, just one LCS is requested. Ramping up to build a bigger fleet will come later. Earlier last month, Chief of Naval Operations Adm. John Richardson released a future fleet overview that said that, though more ships are needed, the Navy “is already starting to implement a fleet design that portends significant changes in fleet architecture, and is seeking to deliver future capabilities more quickly to the waterfront. Put another way, a 355-ship Navy using current technology is insufficient for maintaining maritime superiority.” He also said: “First, we need a year to consolidate our readiness and achieve better balance across the Navy. 2018 will be that year, and even as we restore wholeness,

we’ll ensure that we continue to grow the Navy and establish a firm foundation for accelerating growth in following years.” Ship procurement in the F Y 2018 requests funds 8 new-construction ships: one CVN, two SSN, two DDG, one LCS/ FFX, one T-ATS, and one T-AO 205, and 41 ships across the Future Years Defense Plan (FYDP). Overall, the U.S. Navy’s baseline submission is $171.5 billion—an increase of $12.6 billion from the Fiscal Year 17 enacted budget. A good chunk is budgeted for more sailors: $2 billion of the $12.6 billion is for military personnel. The budgeted end strength in FY 2018 is 327,900; about 4,000 higher than the estimated end strength for FY 2017. The budget provides for a deployable battle force of 292 ships in FY18. This level of operational funding supports 11 aircraft carriers and 32 large amphibious ships that serve as the foundation upon which carrier and amphibious ready groups are based.

Thir teen battle force ships will be delivered in FY18: two Nuclear Attack Submarines (SSN), four Littoral Combat Ships ( LCS), t wo Expeditionar y Fast Transports (EPF), one Expeditionary Sea Base, one Amphibious Transport Dock (LPD), two Destroyers (DDG) and one Zumwalt Class Destroyer (DDG 1000). Two battle force ships will be retired: one Nuclear Attack Submarines (SSN) and the AFSB (Interim). Key readiness programs are funded: ship depot maintenance 100% of projected maintenance; ship ops 58 days/ quar ter deployed & 24 days /quar ter non-deployed; aircraft depot maintenance 89% of projected maintenance; flying hours deployed T-rating of 2.0; Marine Corps ground equipment to 79% of projected maintenance; and facilities sustainment to 78% (Navy) and 75% (Marine Corps) of sustainment model. Research & Development is vital to providing for future technologies that support innovative capabilities in U.S. Navy shipbuilding.

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WORLD SHIPBUILDING

PROSPECTS

The Stena Immaculate is the ninth in a series of 13 IMOIIMAX MR tankers built by China’s Guangzhou Shipbuilding International

DIM

No light yet at the end of the shipbuilding tunnel By Charlie Bartlett, Contributing editor

T

he global shipbuilding crisis is set to last for at least another 18 months, and some experts believe it could be longer, as shipbuilders come to terms with a continuing dearth of new orders and a tonnage overhang in most shipping sectors that shows little sign of abating. To make matters worse, shipbuilding firms face the unprecedented combination of a downturn in both commercial orders and offshore contracts. The order famine is taking its toll not only on the largest ship construction firms in Asia—accustomed to churning out vessels one after another—but also the small specialist yards in Norway, where some of the most sophisticated offshore vessels are designed and built.

World leading offshore shipyards in Norway, with virtually no new orders from their traditional customers, are turning their attention to the niche expedition cruise sector and the specialist offshore wind market. But this is only a band aid for a broken arm; there is absolutely no chance that a handful of contracts from owners in these sectors can offset the scale of the downturn. To be fair, there are two schools of thought. Some analysts are hinting that the worst may now be over, but others point out that today’s orderbook is still lumpy. According to recent figures from Clarkson Research, more than 10% of the world fleet today remains on the orderbook. In the main sectors, 14% of existing containership capacity is under construction, more than

13% of the tanker fleet, and over 8% of dry bulk capacity. Peaks and troughs in the global shipbuilding market are a fact of life. Those with long memories will remember the mid-1980s when the Japanese felt much of the pain. Yards there were scaled back, mothballed or underwent a change of use. Today, a similar round of restructuring is evident everywhere. The world’s largest builder, Korea’s Daewoo Shipbuilding & Marine Engineering (DSME), narrowly avoided receivership earlier this year when bondholders agreed to a radical debt restructuring program led by the South Korea Government. Bondholders signed off on a debt-forequity swap and a suspension of remaining June 2017 Yearbook // Marine Log 25


WORLD SHIPBUILDING Greece, USA Dominate New Orders in 2017

debt repayments for three years. The Government has also pledged to inject close to three trillion won (about $2.6 billion) into the company. Hyundai Heavy Industries, also a South Korean conglomerate, has slashed production capacity as the struggle to win new contracts intensifies. A recent restructuring has seen the massive company split into four separate entities in what is thought to be a defensive move to prevent a financial crisis in one division spreading across the whole group. The split means business sectors are now divided into shipbuilding and offshore, electric machinery, construction plant, and industrial robots. Right now, Hyundai Heavy is in the process of closing its Gunsan yard which only opened in 2007. More than 650 jobs will be lost. But these job cuts are a mere fraction of the thousands of jobs slashed by the world’s three largest builders – Daewoo Shipbuilding & Marine Engineering, Hyundai Heavy and Samsung Heavy Industries, all in South Korea. Precise numbers are hard to confirm, but analysts believe that the three firms have reduced headcount by well over 20,000. At press time, Samsung Heavy Industries (SHI) was able to secure a $100 million to build two smaller LNG carriers for Korea Line. The ships, which will be used to transport LNG from Tongyeong, South Gyeongsang Province to Jeju Island under charter for Korean Gas Corp., will be delivered in 2019. Overall, SHI has secured $2.3 billion in orders so far this year, with eight tankers, two LNG carriers, one FSRU, and one FPU. The bleak picture is not limited to South Korean shipyards. Similar stories are playing out across all of Asia’s key shipbuilding nations. China, for example, is undergoing 26 Marine Log // June 2017 Yearbook

a fundamental restructuring of its ship conversion sector. Late last year, new rules required the setting up of a “white list” of shipyards with the aim of getting shipyards to combine resources and/or consolidate. Meanwhile, in Japan, a major restructuring of the country’s shipbuilding sector has been on the cards for some time. However, at press time, no such development was evident. Notably, however, Kawaski Heavy Industries recently announced plans for a 30% reduction in ship and offshore construction capacity and the closure of one of two docks at its main Sakaide site.

Cruise Shipping Shines In the midst of all this doom and gloom, however, there is one bright spot: Europe. Cruise lines rely on ships built by only a handful of specialist yards primarily in Finland, Germany, France and Italy. According to industry statistics, the cruise ship orderbook is now bigger than it has ever been, with 75 ocean-going vessels now on order, worth close to $50 billion. Italy’s Fincantieri has no fewer than 28 ocean-going cruise vessels on order at its various yards, worth an estimated $15.3 billion. STX France has 12 ocean-going cruise ships on order, with contracts believed to be worth around $12 billion. Meanwhile, Germany’s privately owned Meyer Werft group has 17 cruise vessels on order, 11 ships worth just over $10 billion in Germany, and six ships with contract values of more than $5 billion at Meyer Turku in Finland. Meyer Turku will be full until at least 2024 and a program of significant investment is to be undertaken. In stark contrast to shipyards in the commercial sector, shipyard managers plan to hire at least 500 more workers over the next two years.

Greek and American shipowners have placed contracts for just over 40 percent of the newbuild orders at shipyards since the beginning of 2017, according to data from VesselsValue. Of the 119 orders placed thus far globally in 2017, Greek owners have ordered a total of 35 new bulkers and tankers. Other leading countries are the U.S., with 14 orders placed, Singapore, with 10, Nor way, with eight, and The Netherlands, with six. At the top is Greek owner Chartworld Shipping, which has placed orders for 12 bulkers for a total contrac t price of $246 million, which now have a mar ket value of $354 million, according to VesselsValue. The company also placed orders for two tankers. “Many in the shipping industr y are worried that there is an imbalance of supply and demand between the number vessels currently on the water and the amount of cargoes,” says VesselsValue. “This situation does not look to improve in the near future as there is just under 66 million DW T of tankers and bulkers to be delivered during the rest of 2017, representing 47% of the current bulker and tanker order book.” According to VesselsValue, there are 434 bulkers set to deliver this year (33.9 million dwt), and 426 tankers ( 32 million dwt). Vessels Value says, “Today the preference from the private equity sector is to invest in tonnage already delivered and on the water so that an immediate return on their investment can be realized. This led to a lack of newbuilding finance available and resulted in a gap in deliveries at the major shipyards and therefore increased appetite from them to take orders. “In early 2017 the cash-rich Greek community took advantage of this, securing a number of orders at competitive prices. “As we progress through 2017, yard capacity has reduced but continued buying demand from the private sector remains.”


Feature History

The American Club: 100 Years in the Making

Established in 1917 in the midst of WWI, the Club has evolved to be a truly international player in P&I

Shutterstock/ Bart Sadowski

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ome 100 years ago, a piece of legislation enacted in the halls of Parliament (UK) laid the foundation for the creation of The American Club, one of the largest P&I clubs and only one based in the U.S. The Club is a member of the International Group of P&I Clubs, a collective of 13 mutuals that together provide Protection and Indemnity (P&I) insurance for some 90% of all world shipping. P&I provides cover to ship owners and charterers against thirdparty liabilities that they might encounter during commercial operations. In the midst of World War I, Parliament passed, “The Trading with the Enemy Act, 1914,” which made it illegal to conduct business with any person of “enemy character.” That meant anyone doing business with Kaiser Wilhelm’s Germany. The application of law grew during the war and applied even to neutral countries such as the U.S., which had not yet entered the war. “The British authorities looked askance at certain American shipowners—there were just over 80 of them—who they claimed— but many of the owners denied— were still trading with the enemy,” says Joe Hughes, Chairman & CEO of the Shipowners Claims

Bureau, Inc.—the managers of The American Club. In an interview with Marine Log, Hughes reflected on the Club’s 100th anniversary and how it has evolved over that period. “This all meant that a significant portion of the American shipping community, towards the end of 1916 and the early part of 1917, had no P&I coverage available to them from Britain,” says Hughes. At that time, P&I insurance was only available from the United Kingdom or Scandinavia. Essentially, the act pulled the P&I coverage for the American oceangoing fleet [that] was covered by the London Steamship Club. “They informed the American shipowners that they could no longer cover them because they would be in breech of British legislation,” he says. With American shipowners scrambling for P&I coverage, Johnson & Higgins, the largest insurance brokerage in the U.S., snapped into action. Led by Johnson & Higgins’ President William H. LaBoyteaux, the American Club was formed in a relatively short time period on February 14, 1917. It enjoyed the support of the leading U.S. steamship companies. Just about two months later, however, the Club faced its first crisis.

“When America entered the war in April 1917, the U.S. founded the War Shipping Administration, which started to requisition a large number of American ships under the U.S. flag to contribute towards the war effort,” explains Hughes. “It meant that the Club was in danger of losing all of its members because the ships were being pulled into the War Administration from the individual members.” Hughes says LaBoyteaux would have none of that. He went to Washington to persuade the U.S. government to mandate that all U.S.-flag ships in the war effort must be entered with the Club. “They agreed to do it. Effectively, by the end of World War I, all American vessels—between 4,500 to 5,000 all together—were entered into The American Club...by 1918 to 1919 we were possibly the largest P&I club in the world. We had all American shipping.” After the war, the War Shipping Administration withdrew its mandate and The American Club had to compete with its overseas counterparts for market share. The Club grew once again during World War II as it was one of four insurers nominated to provide P&I insurance for ships requisitioned during the war. June 2017 Yearbook // Marine Log 27


History A Period of Decline

Line of Brazil—until 1980. The mid-1980s also saw the club shift its domestic focus from the blue water to brown water, adding U.S. tug and barge members to its portfolio.

In the decades following the end of World War II, the American Club experienced a period of decline. While the global merchant fleet continued to grow steadily, the U.S. flag tonnage began to shrink. And while the British merchant fleet was reducing in size, UK-based clubs responded by aggressively adding new membership from overseas. By contrast, the American Club didn’t add its the first foreign flag member—Netumar

A Vision for the Future The American Club reached a crisis point in the early 1990s. It consulted with Mercer Management to seek a solution. This emerged in the form of a report presented to the Board in 1994. It contemplated a

Joe Hughes

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new direction for the Club entitled “Vision 2000,” which called for new leadership, the expansion of the Club’s membership internationally and by industry sector, the establishment of overseas offices, the development of new insurance lines and other initiatives designed to place the Club at the forefront of its industry peers. Following Vision 2000, Hughes was hired and became the Chairman and CEO of Shipowners Claims Bureau in 1995 and Secretary of the American Club five years later. A key goal was direct pooling membership of the International Group of P & I Clubs. It enabled the Club to participate to the fullest extent in this alliance of leading insurers. Since the Vision 2000 initiative was implemented in 1995, the American Club has undergone a remarkable transformation. Its achievements over the period include: a fivefold increase in entered tonnage; four-fold premium growth; eight-fold growth in total funds and a ten-fold increase in free reserves; and a broad and expanding international membership, with 56% of its business now coming from Europe, the Middle East and Africa, 27% from the Americas and 19% from Asia. Twenty-five years ago less than 5% of its business came from overseas. The Club has also developed truly global service capabilities. In addition to its New York headquarters, it has offices in London, Athens, Hong Kong, Shanghai and Houston. It has expanded its range of insurance products, notably Eagle Ocean Marine in the fixed premium P & I sector, and American Hellenic, a hull and war risks underwriter. “We’ve come a long way in the last 100 years,” says Hughes. “There have been many vicissitudes over that period that the American shipping community has gone through, and, of course, the Club has gone through as well. We are better positioned now, arguably, I think, than we have been in our history.”


TUGS & BARGES

Artist’s rendering of massive 68,000 metric ton displacement SeaOne ATB

Giant ATB Order WOULD Spell Relief

for samsung

Photo Credit: SeaOne Holdings, LLC

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he big news in the tug and barge market is a new venture that will use Articulated Tug Barge (ATB) units to transport and deliver Compressed Gas Liquid (CGL) cargo to Central America and the Caribbean, including Puerto Rico. The firm, Houstonbased SeaOne Caribbean, LLC, has signed a Letter of Intent (LOI) with Korean shipbuilder Samsung Heavy Industries for the construction of 12 massive ATB units. According an announcement by SeaOne Caribbean, LLC, the ATBs would be the world’s largest—260 meters long (about 853 feet). The 68,000-metric ton displacement vessels have been designed by naval architect Robert Hill, Principal at Ocean Tug & Barge Engineering Corp., Milford, MA. The ATBs will be fitted with IMO Tier III diesel engines, providing the Marshall Islands flag vessels with a service speed of over 14 knots. Classed by ABS, the ATBs will be used to transport and deliver a CGL cargo to customers in support of the SeaOne Caribbean Fuels Supply Project and will feature SeaOne’s patented CGL technology and systems that includes the CGL containment system. The CGL Containment System is treated as an independent cargo and is not integral

By Marine Log Staff

to the vessel design. The ATB cargo holds will be kept at a temperature of minus 40º C while the containment system is full, resulting in no sloshing or boil off and no retention of a gas blanket after offloading of the cargo. In a press release, Dr. Bruce Hall, President and COO, said, “SeaOne has been working with SHI for a while now and we have found them to be a proactive company that listens to new ideas in the gas and liquids transportation business and provides constructive input into the design of the CGL transportation vessels. We are pleased to have SHI as part of the project.” With Korean shipbuilders struggling, the potential order for Samsung Heavy Industries is welcome news. “We are delighted to participate in SeaOne Caribbean’s Fuels Supply Project with the construction and supply of the articulated tug and barges, and hope to build a lasting relationship with SeaOne hereafter,” said Daniel Cho, Vice President of Samsung Heavy Industries’ Rig & Industrial Ship Marketing.

Lease Signed with Port of Gulfport The SunHerald reported back at the end of April that the Port of Gulfport had signed a 40-year lease with SeaOne Gulfport for 36

acres, where a $450 million gas production plant will be developed. Construction was expected to start early next year, with completion in 2020. In an interview with local TV station WLOX, Port of Gulfport Exceutive Director Jonanthan Daniels said SeaOne would be “the largest revenue producer for the port” in its first year of operation and generate about $4.5 million in new taxes for the port on an annual basis. The signing of the LOI for the ATBs is seen as a major milestone in SeaOne’s extensive Caribbean Fuels Supply Project. The project is being undertaken to develop an environmentally-friendly, lowest cost, and safe means of transporting gas and gas liquids together as a single cargo.

New Tug for Kirby Offshore Kirby Offshore Marine is one of the largest operators of coastal tank barges and tugs in the U.S. It is the largest combined inland and coastal tank barge operator, with 864 inland tank barges and 235 towboats, 68 coastal tank barges and 71 tugs. Its coastal tank barge business is involved in the regional distribution of refined petroleum products, black oil, and the distribution of petrochemicals. Kirby Offshore June 2017 Yearbook // Marine Log 29


TUGS & BARGES expects to add a 155,000 bbl capacity, 6,000 hp ATB unit—valued at $65 million— this year. Additionally, two 4,900 hp tugs, scheduled for delivery this year and six 5,000 hp tugs for deliveries between mid-2018 and late 2019. The first of the two 4,900 hp tugs, Mount Baker, was launched by Nichols Brothers Boat Builders, Freeland, WA, earlier last month. The tug, Mount Baker, is

powered by two Caterpillar 3516C main engines that generate 2,447 hp each at 1,600 rev/min. The engines turn two NautiCAN fixed pitched propellers with fixed nozzles via Reintjes reduction gears. The gears were supplied by Karl Senner. The Mount Baker also has two John Deere 6090AFM85 generators for electrical service. Deck machinery includes one TESD-34 Markey tow winch, one CEW-60 Markey electric capstan, and one M&S Marine Solutions Tow Pin. Mount Baker’s sister vessel, Mount Drum, will be delivered this coming November.

Gulf Island to Build Z-Tech Tugs for Bay-Houston Gulf Island Fabrication, Inc. reports that, through its subsidiary Gulf Island Shipyards, LLC, it has executed a contract with Bay-Houston Towing Company for the construction of four Z-Tech 30-80 class terminal/escort tugs. Designed by Robert Allan Ltd., the azimuthing stern drive (ASD) tugs will be 98.5 feet long with a bollard pull of 80 tons. They will be designed for berthing large ships and for providing escort, and emergency response in the vicinity of LNG and oil terminals. According to Kirk J. Meche, Gulf Island Fabrication, Inc.President and CEO, the tugs will be built in Jennings, LA.

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History on the Great Lakes Great Lakes Shipyard, Cleveland, OH, recently launched the first of what could be as many as 10 Damen-designed tugs. On Linkedin, Mark Honders, Design & L i ce n s e Ma n a g e r a t Damen Shipyards, posted, “The first ever U.S.-built Damen tug hits the water in Cleveland OH. The Damen Stan Tug 1907 ICE was launched by Great Lakes Shipyard in presence of several who defied the rain. Congratulations GLS! Let it be the first of many!”

Towboat for Waterfront Services The towboat Miss Deborah was recently launched by Master Marine, Bayou La Batre, AL, for Waterfront Services. Laborde Products, Cov ington, LA, reports that the Miss Deborah is powered by two Mitsubishi S6R2-Y3MPTAW engines rated 803 hp at 1,400 rev/min, coupled to Twin Disc MGX 5321 transmissions. Electrical power is provided by two Northern Lights 65kW generators and is cooled by RW Fernstrum gridcoolers, all provided by Laborde Products.

Photo Credit: Nichols Brothers Boat Builders

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Ferries

The Next

Great Wave New Yorkers take to the water with debut of NYC Ferry ew Yorkers move fast. We have places to go, people to meet, things to do, worlds to explore—and we need reliable, fast transportation to get us there. Well, New Yorkers are in luck. The city is about to be inundated with new ferries helping commuters get to where they need to be for just $2.75 in a New York minute. The brand new citywide ferry service, NYC Ferry, operated by Hornblower for the city of New York, has one goal in mind: create a new and enjoyable transportation option for everyday commuters—an 32 Marine Log // June 2017 Yearbook

option that doesn’t involve the stress of everyday delays, crowding, and stiffling heat the NYC subway system (part of the MTA) is notorious for. Calling the NYC Ferry’s launch a “new day for our city,” Mayor Bill de Blasio is betting big that his new citywide ferry service will be a success—ushering a new wave of transportation options for underserved communities, such as the Rockaways—a peninsula in Queens, NY. At the launch of the Rockaway route on May 1, the Mayor said, “For the first time in generations, our amazing New York Harbor

is part of our city’s critical public transportation system” (so much for the Staten Island Ferry). The service launched a full month ahead of schedule. And while it hasn’t exactly been smooth sailing—one ferry had to be pulled from service on the first day because of a small mechanical issue, an oil spill on the East River slowed service at the start of week 2, and demand has been hig her than expected prompting long wait times— NYC Ferry is being met with plenty of excitement and enthusiasm from locals and tourists alike.

Photo: Michael Appleton/Mayoral Photography Office

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By Shirley Del Valle, Managing Editor, Marine Log


Ferries the six routes. Demand has been so exceptionally high that at the June 1 launch of the South Brooklyn route Mayor de Blasio suggested that the city may need to order additional boats to meet demand, should ridership remain so high. When asked about the need to increase capacity on the routes, he said, “I wouldn’t be surprised if the best answer is [to order] more of these boats and we can obviously— the template is there. We can keep having them produced for us.” A decision on any new boats, however, wouldn’t happen for a few months, as the ridership numbers continue to come in. The ser v ice and fleet itself seemed impossible to many when it was first announced—with a time frame that spanned just a little over a year, Mayor de Blasio had to choose a private operator to run the ferry and have a fleet of vessels and landings built. Awarding the operating contract to Hornblower in March 2016, and announcing the start of construction in July 2016, the NYC Ferry fleet had less than a year to take shape—with a large portion of the vessels (up to 12) delivered by this summer. So how did it take shape so quickly? What was the secret sauce?

A Well Planned Team Effort

In fact, ridership numbers are higher than initially anticipated. At press time the East River route was averaging about 45,000 passengers a week, while the Rockaway route was averaging 12,000 riders, according to the New York City Economic Development Corporation (NYCEDC). On the Saturday and Sunday of Memorial Day weekend, the service reportedly carried 26,000 passengers. Those numbers are expected to go up as the South Brooklyn route gets underway and the Astoria Route launches later this summer (August 2017). The Soundview (Bronx) route and Lower East side (Manhattan) routes will debut summer 2018. In total, its projected that the NYC Ferry fleet will carry an estimated 4.6 million trips per year across

Cameron Clark, Senior Vice President and Project Manager, Hornblower, will be the first to tell you that there was no one man or company that alone brought this project to fruition—it was a team effort all the way through with designer Incat Crowther, Hornblower and the two shipyards, Horizon Shipbuilding and Metal Shark, working in concert to ensure the boats were designed to operate in New York harbor, could operate efficiently and be built on time. The boats had to be fast (a service speed of 25 knots), they had to be able to maneuver the choppy waters of the East River and had to operate efficiently. In designing the vessel, Incat Crowther had to ensure the high-speed catamaran ferries would be able to provide quick turnarounds. To that end, boats in the NYC Ferry fleet feature a standard New York City bow loading geometry. This, says Incat Crowther, will allow the ferries to “nose into wharves with minimal mooring.” Additionally, designer Incat Crowther says the NYC Ferry boats will be some of the “cleanest operating [vessels] in American waters.” Hornblower has a history of environmental operations, having dedicated the last decade or so to hybrid projects and the implementation of green practices in its

business/companies. The Hornblower Hybrid operated by Alcatraz Cruises, a Hornblower Company, in San Francisco was the first hybrid ferry to operate in the United States. The 64 ft ferry operates on solar, wind, Tier 2 diesel generators and batteries. The Hornblower Hybrid project, along with the New York Hornblower Hybrid (which featured the addition of a hydrogen fuel cell), was also led by Clark. And while the NYC Ferry fleet doesn’t go that green, it does implement several environmentally friendly elements on board, including the use of LED lights, vinyl wrapping both on the exterior and interior of the boats, a low wake wash, the use of tier 3 engines, and fuel monitoring tools to keep track of fuel consumption. The 86 ft x 26 ft vessels are, for the most part exactly the same, although two different types of vessels are being built for the fleet— the River and Rockaway class. The reason: ferries traveling the Rockaway route require deeper hull depths and larger engines generating more power to navigate the rough waters in the area—particularly during the fall and winter months. The River class ferries (there are 16 in total under the contract) are powered by two Baudouin 6M26.3 ‘P3’ rated engines, 815 mph at 2,100 rev/min; meanwhile the Rockaway class (there are 3 in total) will be powered by two Baudouin 12M26.3 ‘P2 Rated’ engines, 1,400 mph at 2,100 rev/min Beyond the slight difference between the River and Rockaway class, all vessels in the fleet are the same—offering high-speed service, low wake, with room for 149 passengers, a concession stand area on board called The New Stand, wi-fi enabled, and room for bikes on board. When it came to choosing the shipyards that would build the fleet, Clark explains, Hornblower wanted a team in place that was up to the task, could work together to get the job done efficiently and were located in separate geographic locations. While several yards from across the U.S. threw their hats into the ring, it was two yards from the Gulf Coast, a region that has been hit hard by the downturn in the oil market, who caught Hornblower’s eye. Horizon Shipbuilding, Bayou La Batre, AL and Metal Shark, Franklin, LA, both have a history of building vessels in series and under tight deadlines. And while the two weren’t exactly ferryboat builders at the time the contract was awarded, they applied their skills from years of building for a variety of diverse markets, to get the job done. As Clark explains, Horizon and Metal Shark met early on in the process and June 2017 Yearbook // Marine Log 33


Second graders from New York City schools will have the distinctive honor of naming all the vessels in the NYC Ferry fleet

understood the need to collaborate and get the job done fast. “We were fortunate enough that the yards were both receptive. Yes, they are competitors, but seeing the bigger vision, were able to support [each other] and collaborate along the way.” He adds, the end goal was the same: to produce vessels both yards would take great pride in. A lot of the success, Clark says, “can be

traced back to the two yards communicating with one another and working closely with Incat Crowther from the start, asking, ‘Hey, if we’re going to build 20 of these ferries, how do we re-think the manufacturing process, the assembly components, and yet be as efficient as possible?’” “Horizon and Metal Shark collaborated for the River [class] builds, sharing

information and dividing work efforts in order to accelerate production,” explains Lance C. Lemcool, Vice President of Horizon Shipbuilding’s West Yard Operations. Both yards “had to be successful in order for the NYC Ferry project to be successful—this was known from day one of the project.” For the yards, the build process differed slightly, according to NYC Ferry—with Horizon taking on a more traditional approach, building one vessel at a time, while Metal Shark applied its modular approach where the hull, superstructure and pilothouse are built separately and then put together. Josh Stickles, Vice President of Marketing for Metal Shark explains, “We had honed our serialized production methods through years of building military patrol boat fleets, where in cases such as [the U.S. Coast Guard’s] RB-S, we’ve been building and delivering boats on a weekly basis for years…Generally speaking, whenever possible, we implement the same serialized building processes on our larger shipyard builds as we do on our fleet builds...We cut all of our aluminum plating in-house using digital designs fed to CNC routers and CNC press-break bending machines, we use jigs and fixtures throughout the assembly process to assure quick and consistent repeatable builds.” At press time, Horizon had delivered three of the River class ferries and one of the Rockaway ferries. Two additional Rockaway ferries and four more River class ferries will be delivered over the next couple of months according to Lemcool. Another three River ferries will be delivered in 2018. Metal Shark, meanwhile, is on its way to deliver the final ferry in its six-boat contract to NYC Ferry, and is already carving a name for itself in the passenger vessel market. Current passenger vessel projects underway at Metal Shark include the first two of four 88 ft high-speed, low-wake, 149-passenger ferries, designed by BMT Designers & Planners for the Potomac Riverboat Company—delivery will commence later this year; and the construction of two 105 ft high-speed, low wake passenger ferries for the New Orleans Regional Transit Authority—delivery will take place in 2018.

Security & Training Of course once the ferries are built other pieces of the puzzle must fall into place— from implementing security measures on board to training crew. New York City is one of the greatest cities in the world, how will NYC Ferry ensure its passengers remain safe? Again, Clark goes back to teamwork. “At the end of the day its about the people 34 Marine Log // June 2017 Yearbook

Michael Appleton/Mayoral Photography Office

Ferries


Ferries we hire, the crew and competent training. We’re not relying purely on technology for security,” although there are several technological security measures in place. “We see it as a two-fold part for security. First and foremost, training with our crew,” with constant drills, creating awareness and preparedness, “and then second to that is maintaining relationships with the U.S. Coast Guard and local law enforcements.” One of those hired is Timothy McMahon, a 20-year veteran of the NYPD with experience in directing and designing port security and member of the NYPD’s Counterterrorism Bureau. He was named Head of Security Operations for NYC Ferry earlier this year. For training, Hornblower teamed up with SUNY Maritime College, Bronx, NY, to provide simulator training for new hires. Via the simulator training, captains will be able to navigate the New York Harbor enabling them to familiarize themselves with the harbor, as well as the ferry. With an understanding that there are different ways of learning, Clark says Hornblower worked with SUNY Maritime to create a standardized training program. “We looked at it as there’s different modalities of learning—how people get and learn information, how they receive and give feedback. Since we’re not hiring just one or two deck hands, the goal was to have a standardized training program in place for new hires.” In total, Hornblower plans to hire over 200 employees—filling captain, deckhand, technicians and customer service positions.

were even built, Hornblower along with NYCEDC, held meetings across the city to hear what communities wanted from these ferries and service. To date, over 350 community meetings have been held, and those will continue, says Clark. Calling the meetings a core part of its collective community outreach, he explains that its important to allow these communi-

It’s about creating a rider service that people will take pride in

ties to know that these boats are their vessels, and that they have a say in their operation. Furthering its initiative to give New Yorkers ownership of these ferries, Mayor de Blasio and Hornblower decided to get the youngest of New Yorkers, second graders from schools across the city, involved in naming all the vessels in the fleet. The timing is perfect in that it lines up with the

second grade curriculum that includes New York’s maritime history. Naming the vessels, says Clark, gives students a “stake of ownership in the vessels” and will create a sense of pride. “The boats are their ferries. Hopefully its [NYC Ferry] going to be here for a long time and they’ll look back on the process and feel that it wasn’t just something the city did, it was something they were a part of too.” Some of the winning names include, Lunch Box (the first in the fleet), Urban Journey, Waves of Wonder, Friendship Express, Sunset Crossing, The Connector, and Happy Hauler. And there may even be a McShiny (the Mayor’s personal favorite). While NYC Ferry navigates its way into calmer waters, with ferries settling into routes, and any operational kinks working themselves out, one thing is undoubtedly clear to Clark—the City, NYC Ferry and Hornblower will continue to listen to what the people want. “It’s about being safe and reliable, and hopefully putting smiles on people’s faces. It’s about creating a rider service that people will take pride in. I think you’re starting to see that already, and will continue to see that as we roll out more programs and the NYC Ferry service evolves.”

Creating an Experience “Our mission, or what we at Hornblower call our voyage, is creating great experiences for each of our passengers,” says Clark. “What does that mean for ferries? Well, think about how great it would be if your daily commute was the best part of your day. Talk about increasing morale in the workplace — having people show up at work happy, relaxed, energized and ready to hit the ground running.” Ferries have always been a part of New York City’s history. Four out of the five boroughs are islands. Staten Islanders, in particular, have come to rely on their iconic Staten Island Ferry fleet to bring them to/ from Manhattan. They’ll be getting a new series of 4,500-passenger Ollis Class ferries beginning 2019. Designed by Elliott Bay Design Group the ferries are being built at Eastern Shipbuilding, Panama City, FL. Which brings up the question: how does NYC Ferry plan to create the same sense of ownership, pride and loyalty with its fleet? Clark explains that before the ferries

FENDERS ON THE GO

June 2017 Yearbook // Marine Log 35


environment

Environmental Regulation to shape

tanker market Special to Marine Log

O

ver the next five years, international env ironmental regulations will have a major impact on the tanker market, according to a recent report by marine transport advisors McQuilling Services, LLC. In its latest Tankers Industr y Note, Mc Q u i l l i n g S e r v i c e s p o i n t s t o t h e implementation of the Ballast Water Convention this year and the global 0.5% sulfur emissions cap in 2020 as two defining regulator y events for the mar ine transportation market. Beginning in 2020, the International Maritime Organization (IMO) will establish a global 0.5% sulfur cap in order to reduce the carbon footprint of maritime transportation. McQuilling Services says the result of the sulfur cap will alter trade flows of fuel oil and middle distillates in 2020 and beyond. A new bunker fuel blend containing

36 Marine Log // June 2017 Yearbook

fuel oil components and gasoil is expected to enter the market. Considering the current global refining complex, East of the Suez markets are likely to be self-sufficient and meet regional demand while Western

As of now, the view taken by owners seems to be a ‘wait and see’ approach markets with less complex refining systems (Europe, Latin America and FSU/Russia) will likely switch and become net importers of the new bunker fuel.

McQuilling projects that the Middle East will produce 2.81 million bbl/day of gasoil by 2020/21, which is 34% more than regional demand. It foresees the Middle East as being a large export center for gasoil, boosting tanker demand. “In fact, we are likely to see Middle East exports rise substantially to Europe, as well as potentially to more distant markets in the Americas. Assuming this new fuel will be classified as a clean product, we anticipate a material rise in ton-mile demand for product tankers, with a bias towards larger tankers (LR2) for expected long-haul transportation requirements.” McQuilling Services says that “while the implementation date of 2020 appears to be set in stone, we cannot completely rule out the possibility of an extension given the concern over the likelihood that global gasoil supply will not be enough to meet demand. As of now, the view taken by owners seems to be a ‘wait and see’ approach considering

Photo Credit Shutterstock/Nightman1965

IMO Global Sulfur Cap, Ballast Water Convention will alter trade flows, change fleet composition


environment many uncertain factors remain, such as the availability and quality of scrubber technology, the composition of the new bunker fuel and what the supply/demand scenario for this fuel looks like.”

Increased Scrubber Use McQuilling also points to the increased use of scrubbers by shipowners to comply with the stricter emissions regulations of Emission Control Areas (ECAs), which would “likely lead to higher demand for HSFO, as opposed to gasoil and relieve pricing pressure on HSFO, decreasing the spread between these two options. With a narrower spread there is less of an incentive to install the system, particularly for vessels with a shorter trading life on the horizon.” Continues McQuilling, “As such, we expect the minority of these owners to actually follow through on scrubbers. From our supply outlook, an accelerated level of deletions/ scrapping may occur beginning 2018, likely supporting rates; however, we must observe how events play out to lead to this outcome.”

allow owners to see if systems that are both IMO revised G8 and USCG Type Approved enter the market. According to McQuilling Services, of the global tanker fleet, 22.1% is due for special survey beyond September 2017 through 2018, which could potentially contribute to temporary contractions in supply as vessels enter dry dock. Short-term supply contractions could provide some support to rates throughout 2018.

About McQuilling McQuilling is a privately owned marine services company, providing transportation ser vices to clients in shipping. McQuilling Services publishes a number of reports, including the 2017-2021 Tanker Market Outlook. For more details, you can contact McQuilling Services, LLC, Ocean House, 1035 Stewart Ave., Garden City, NY 11530; T: 516-227-5700; services.us@ mcquilling.com.

Ballast Water Management Convention Meanwhile, the long-awaited implementation of the Ballast Water Convention is set for this September 8. It will require the installation of an IMO type approved Ballast Water Management System (BWMS) during the vessel’s next special survey after September 8. McQuilling Services expects shipowners of older ships to carefully weigh whether it makes financial sense to install an expensive BWMS or scrap the vessel. “The cost related to one of these systems ranges from $500,000 to $3 million depending on the size of the vessel. A vessel approaching its 4th or 5th special survey may not have enough trading life left to offset the cost of installing the treatment system, therefore providing some incentive to scrap the ship.” Says McQuilling, “As a majority of the vessels with surveys due after September 2017 are on their 1st- 3rd round, we do not see a significant amount of cost aversiondriven scrapping in 2018.” There’s also the possibility that an extension of the implementation date to September 8, 2019 will be discussed at the Marine Environment Protection Committee’s (MEPC) 71st session in July 2017, allowing owners more opportunity to get their dry docks or International Oil Pollution Prevention (IOPP) certifications completed before the implementation date in order to obtain a waiver and delay the installation of the equipment. This will June 2017 Yearbook // Marine Log 37


CREW WELFARE

Caring for a ship’s most

important asset Telemedicine: Bringing medical care to crews onboard

38 Marine Log // June 2017 Yearbook

at sea. Today a private general or specialist physician can carry out a virtual visual examination of the crewman onboard a ship, in real time. In addition to the ability to capture measurements of basic health metrics such as blood pressure/glucose and

This seamless care promotes more efficient treatment and overall health for the seafare electrocardiogram readings, the remote physician can conduct more sophisticated tests such as an ophthalmoscope examination of the retina and ultrasound imaging—all by using devices attached to a smart phone. The medical devices are becoming more

affordable for commercial vessels and are increasingly found onboard newer built vessels. A growing number of hospitals and private medical concierges are devoting considerable resources and sophisticated equipment to bridge the distance between ship and shore. Recently, Yale University’s School of Medicine’s R. Lefkowitz, MD and colleagues analyzed 3,921 shipboard injury and illness incidents during a three-year period. The Yale researchers used data on seafarers aged 18 to 80 working on 1,322 vessels, exclusively compiled by Future Care Inc., a provider of maritime medical services managing seafarers’ health globally. The article highlights the frequency of illness (over twice as many as shipboard injuries) as the predominate cause of seafarer work restriction and lost time. One of the most difficult issues this poses for the shipowner and crew is that frequently ships are inadequately manned for substitutions. “If a crewmember is ill or injured and

Photo Credit: Future Care, Inc.

I

n the not too distant past, from a medical stand point, a crewmember at sea was very much alone. When injured or taken ill, the hapless seafarer was forced to rely on the ministrations of the ship’s medical officer, whose training often was minimal. The crewmember was unable to obtain a physician’s advice until he managed to reach the shore. With the advent of telemedicine, the seafarer began to benefit from remote diagnosis and treatment recommendation. The early use of telemedicine in the maritime community generally involved government-sponsored public health networks, frequently dealing only in emergency situations. Diagnosis was based primarily on subjective criteria relayed to the shore-based physician, who responded as best as possible. Often the advice was to remove the crewman immediately from the ship for shoreside treatment—an expensive proposition. Most recently, the maritime community is coming to realize the incomparable benefits medical technology brings to healthcare

By Lindsay Malen of Future Care, Inc.


CREW WELFARE unable to work, the burden of that crewmember’s tasks increase the demands on the rest of the crew, which can result in fatigue and reduce overall productivity of the vessel,” states Joseph A. Acuña, MD, Future Care Physician Case Manager. The Yale analysis reveals that after dental complications, dermatologic (19.9%) and gastrointestinal (16.6%) issues are the leading cause of shipboard medical complaints, combining for 36.5%. Although a number of these specific incidents may have developed onboard due to diet or exposure, treatment can begin on board as well, and frequently managed or cured on the ship through telemedicine and remote video consultation. Having a connection to a landside physician at the onset of a medical incident can not only treat the seafarer in a more appropriate time frame, it also avoids shoreside examination and the extremely high cost in delay to the shipowner if there is a need to replace the crewmember. Remote access to a landside physician also reduces work stress by providing the crewmember with the assurance that he or she can obtain professional medical care when needed. Whether responding to an injury or illness, telemedicine triage can begin in a sophisticated manner on board a ship for any medical incident, no matter how apparently insignificant. Telemedical services allow for early onboard medical intervention for the crew and cost containment for the shipowner and insurers. The Yale researchers noted that the aging of seafarers was an increased factor of work restrictions. However, a seasoned crew is an important asset to the shipowner and some of the problems of aging can be mitigated through telemedicine. Regularly scheduled onboard physician review of the crew’s overall medical condition can go a long way in maintaining “Fit for Duty” status. Telemedicine enables the shipowner to provide primary healthcare on board the vessel at a limited expense, with the capability to manage chronic, but sustainable conditions without the expense of shoreside examination or unscheduled medical repatriation. Furthermore, monitoring the crewmember’s medical treatment should be a continuous process, both on board the vessel and shore side. Telemedicine, and the portability of electronic medical record storage, allows for timely review of medical records among the crewmember, shipboard and shoreside medical providers, fostering continuity of care through to recovery. This seamless care promotes more efficient treatment and overall health for the seafarer and reduces total medical and related costs for the shipowner.

“Telemedicine improves the quality of medical response; increases morale on board the vessel; saves costs and can saves lives,” says Lawrence Jacobson, Future Care’s Director of Risk Management. “The maritime industry invests valuable time and money to attract and train crews, retaining a healthy working crew must be our focus and with modern technology we can reach from shore to ship to make for an overall safer and healthier working environment.” What’s next for wellness at sea and telemedicine? With the next gener ation of crew boarding our vessels and the encouragement of millennials to join the maritime industry we are changing our

communication capabilities. The industry now has better access to the internet therefore making telemedicine and real time video imaging and conferencing more accessible, at more reasonable costs. If we wish to evolve the maritime industry, attract young crew and retain a positive reputation for providing a safe workplace in a confined remote environment, we must increase access to landside level of medical care while at sea. It is our responsibility as an industry to make venturing to sea much less lonely and a healthier work place and home.

Distribution of Injured Body Parts in Seafarers with Injuries (n=1,144).

Distribution of Diagnoses in Seafarers with Illness (n=2,710).

For further information please contact Lindsay Malen at lmalen@futurecareinc.com.

RESPIRATORY

CHEST/ABDOMEN

4.2%

EYE

9.5%

HEAD/NECK

8.9%

10.7% 2.8% 11.1%

MUSCULOSKELETAL EARS/EYES

GENITOURINARY

6.2%

CARDIOVASCULAR

3.3%

NON-SPECIFIC

5.5%

PSYCHIATRIC

0.6%

UPPER EXTREMITY

30.3%

DENTAL

BACK

18.1%

GASTROINTESTINAL

16.6%

LOWER EXTREMITY

28.9%

DERMATOLOGIC

19.9%

22.8%

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June 2017 Yearbook // Marine Log 39


OPINION

A MISSED OPPORTUNITY

By H. Clayton “Clay” Cook, Esq., Cook Maritime Finance

hen it was passed and signed into law during the Bush Administration, the Energy Independence and Security Act of 2007 was hailed as an important and long-sought objective of the U.S. maritime community. The law was President Bush’s extension of the Maritime Administration (MARAD) Capital Construction Fund (CCF) program to container and Roll-on/Roll-off (RO/RO) services in projects in the U.S. At the time, the late Rep. Ken Oberstar (D-MN) and other parties who had worked to achieve this extension for more than a decade, believed that they had provided the legislative text that would enable MARAD to make the CCF program available for vessels in container and RO/RO services nationwide. And why wouldn’t they think that? Since 1970, the program had been used successfully by shipyards and operators in the financing all of the large Blue water vessels in the Alaska, Hawaii and Puerto Rico trades. The 2007 Act authorized a Short Sea Transpor tation (SST ) prog ram (now referred to as the American Marine Highway (AMH) program) and assigned the responsibility for its implementation to the Secretary of Transportation and MARAD. The act also authorized MARAD to add U.S. shipyards and operators in the SST/ AMH coastal and inland waterways trades as CCF Program “qualified vessel” participants. So, it all sounds good, right? But now, 10 years into MARAD’s implementation of the 40 Marine Log // June 2017 Yearbook

2007 Act, MARAD has not received a single application for shipyard use of the CCF program; and has approved only one owneroperator application. So what happened?

No Passengers Allowed When private sector sponsors of commercial vessel designs that included the carriage of passengers were presented for CCF approval, MARAD refused. MARAD’s position was that Congress had only intended to expand CCF program eligibility to 100 percent pure container and RO/RO services, and that program funds could not be used if a vessel also carried passengers. MARAD insisted that new legislation would be needed in order to authorize passenger carriage. Year by year since then, as new ROPAX projects were discussed and new ROPAX vessels were designed and built, industry awaited a MARAD recognition that no one was designing vessels, or initiating services for “no passenger” pure RO/RO services. One colleague asked “was it only once these ‘no passenger’ services had been initiated that MARAD would commence its 2007 Act CCF Program implementation activities?” Last July, a Passenger Vessel Association (PVA) colleague advised me that MARAD had apparently agreed to add one or several ROPAX vessels as “qualified vessels” to a PVA member CCF Program agreement—a move that might represent an important change in MARAD’s 2007 Act “no passengers” policy.

Not So Fast In its PVA presentation on the MARAD CCF Program at the PVA annual meeting this past January, the Program Office made it clear that ROPAX services were not to be per se qualified and stated that MARAD would assess liquidated damages based upon the measures of passenger carriage. Thus, the make-up mix of ROPAX cargo/ passenger services could not be determined by private sector customer demand without MARAD assistance. CCF qualification of ROPAX services would be matters fixed (informally and subject to change) by MARAD. And, there are no MARAD regulations in 46 CFR Part 390 to provide guidance. Program decisions are apparently made on an inquiry-by-inquiry basis, informally and without publication, and can be withdrawn or changed without public notice. So perhaps one can understand why a CCF Program with almost 50 years of successful applications by shipyards and operators in 1970 Act qualifying trades, has been ignored by private sector project decision-makers in evaluating 2007 Act opportunities. It’s a missed opportunity to help support private investment in U.S. transportation infrastructure, U.S. mariner jobs, and the U.S. industrial base at a time when U.S. operators and U.S. shipyards are looking for favorable financing options and much needed work.

Photo Credit: Shutterstock/ Nomad_Soul

W

ON CCF


Newsmakers

GE Names Monica Caldas CIO of Transportation Unit General Electric (GE) has appointed Monica Caldas as Chief Information Officer(CIO) for GE Transportation. She is currently CIO of GE Transportation’s Global Services and Digital Solutions teams. Caldas will replace Nancy Anderson who has been promoted to CIO at GE Power.

Huntington Ingalls Industries’ Board of Directors have elected Jennifer R. Boykin as Executive Vice President of HII and President of HII’s Newport News Shipbuilding (NNS) division, effective July 1. She succeeds Matt Mulherin, who retires after a 36-year career at NNS.

Foss Maritime has named Grant Johnson Vice President of Health, Safety, Quality and Environment (HSQE). Johnson, who comes to Foss from TechnipFMC, will be responsible for overseeing, growing and strengthening HSQE performance in support of Foss’ culture of safety.

Sarah Kenny has been named Chief Executive of the BMT Group. Kenny comes from QinetiQ, where she is currently Managing Director, Maritime, Land & Weapons.

Edward J. “Ted” Tregurtha, President of Moran Towing Corporation, has been elected Chairman of the American Waterways Operators (AWO).

Jim Mugford has been appointed President and Global Head of Sulzer’s electromechanical services business.

Kyle Curtis has joined naval architecture, marine engineering & marine surveying firm, The Shearer Group, Inc.

Lasse Petterson has assumed the role of Chief Executive Officer of Great Lakes Dredge & Dock Corporation, the largest provider of dredging services in the U.S.

42 Marine Log // June 2017 Yearbook

NETSCo, Inc, has promoted Jan Flores to Vice President. The company also named Trish McIntyre Engineering Manager and Matt Davidson, Junior Naval Architect and Marine Engineer.


TECH NEWS The use of drones will help cut delivery times and costs

Shipping in Flight: Wilhelmsen Taps Drone Tech Drones, whether you like them hovering above you or not, look like they’re here to stay—and are quickly making a name for themselves in the maritime industry. Global maritime industry provider, Wilhelmsen, recently announced that it will launch a large scale working pilot project at one of the world’s busiest ports in 2017, where it will test out its new drone delivery service. Calling it a natural extension of its existing agency service portfolio, Marius Johansen, VP Business Solutions & Marketing at WSS Ships Agency, sees drone delivery as a technology that is an obvious choice for the shipping industry.

“Whether its deliveries of critical documents or vital medical supplies, tank inspections, or monitoring cargo and stockpile levels, we believe semi-autonomous drone flights can support and further enhance what our ships agency team can offer our customers,” said Johansen. By using drones, the company will be able to make the use of launch boats, which would deliver items at ports, virtually obsolete. Drone use will cut delivery times and, according to Johansen, slash costs—launch vessels typically cost, on average, $1,500, with drone delivery, the cost could be as little as $150. www.wilhelmsen.com

New Dredger Equipped with BARKE Rudders Weeks Marine’s new Jones Act Trailing Suction Hopper Dredger the Magdalen, features Van der Velden Marine Systems’ (VDVMS) BARKE high-lift flap rudders. The rudders, which work in combination with a Royal IHC Dynamic Positioning and Dredge Tracking System, enable the vessel to have enhanced maneuverability and excellent course keeping stability.

Built by Eastern Shipbuilding Group, Panama city, FL, the Magdalen, features a complete VDVMS system—including two independently controlled and operated hydrodynamic BARKE rudders, hydraulics and controls. Additional benefits of using a BARKE Rudder include a noise and vibration-free operation, high propulsion efficiency with low fuel consumption, minimum wear on the linkage, and a long life space. The 108.5 m dredger is also equipped with two GE 16V250 main engines, each producing 5,685 hp and a GE 6L250 auxiliary engine producing 2,009 hp. Arthur Dewey, Vice President of Ships Machinery International, Inc. (SMI), said, “A dredger that is able to maintain precision position during operations will be easier to operate and will be a highly productive asset for its owners.” www.vdvelden.com

Shell Goes the Distance with MILES Program The continuous development of new products is essential to meeting industry demands. To that end, Shell Marine has introduced its MILES Program. MILES, shor t for Marine Integrated Lubrication and Exper t Solutions, is an initiative that combines purchasing options, services and an extensive range of lubricant products in a multi-faceted strategy to help address customer’s operational needs. “The flood of new regulations, changing engine technology, new f u e l s, e f f ic ie n c y p r e s s u r e s a n d increasing digitalization means ship owners must adapt to thrive,” says Jan Toschka, Shell Marine Executive Director. “It is only natural that they look to suppliers not only to help optimize their operating costs, but also to take away operational complexities where possible, allowing them to focus on their core business.” Shell Marine is working with external experts to help develop digital solutions that utilize great connectivity, artificial intelligence, machine learning and data science. This will enable Shell Marine to offer its clients a wide range of services—from building recommendations about optimal volume/port lifting to creating ways to reduce purchasing costs and managing lubrication for the entire vessel. “We are helping our customers to reduce their operational costs by monitoring lubricant consumption and providing advice about future volume lif tings and por ts,” adds Toschka. This, “combined with our technical services, helps customers not only to generate cost savings but also reduce complexity on their side.”

www.shell.com

June 2017 Yearbook // Marine Log 43


TECH NEWS

The Power Within Advances in battery technology have played a key role in making hybrid marine applications a viable option for certain vessel types. Paris-based Saft, a wholly owned subsidiary of TOTAL, has been in the business of supplying batteries for nearly 100 years. Its batteries can be found in everything from ventricular assist devices for heart patients to the European Space Agency’s lander Philae that helped explore the comet 67P Churyumov-Gerasimenko. Leveraging that broad knowledge base, Saft will deliver two specialized Seanergy marine Li-ion battery systems to the U.K.’s Cammell Laird shipyard for installation in the 128m polar research vessel RRS David Attenborough. It’s one of several recent

44 Marine Log // June 2017 Yearbook

hybrid projects that Saft is working on, according to Didier Jouffroy, Saft’s Marine Product Manager. Saft was selected by the vessel’s designer, Rolls-Royce Marine. The Rolls-Royce Marine system will feature Saft’s patent pending Li-ion Super-Phosphate (SLFP) high power cells that have received certification from Bureau Veritas, Lloyd’s Register and DNV GL. “The Superphosphate was developed for all transportation applications with a high level of safety. Its advantages for marine are significant: safety first on the vessel with no risk of thermal propagation, excellent lifetime and good cycling capability,” says Jouffroy. The research vessel’s hybrid propulsion

system will incorporate new Bergen B33:45 engines that will operate in combination with two Saft Li-ion batteries. Fully integrated into the vessel’s control and automation system, the batteries will provide a combined 1,450 kWh capacity with a maximum voltage of 1011 V. They will help deliver the peak power required by the vessel, such as when operating in a dynamic positioning mode; and have been sized to enable the vessel to be self-sufficient in fuel during voyages of up to 19,000 nautical miles. The Li-ion batteries will also help to push the vessel through ice up to one meter thick, while towing equipment over the side, with extremely low underwater radiated noise, avoiding disturbing marine mammals and fish shoals or interference with survey equipment. Being built at a cost of nearly $200 million, the RRS David Attenborough will begin carrying out oceanographic research in the Antarctic and Arctic region in 2019. This is not the first time Rolls-Royce Marine has selected Saft battery technology. Back in 2016, Rolls-Royce Marine chose Saft’s SLFP high energy air-cooled battery system for the OV Bøkfjord, built by Hvide Shipyard in Denmark for Kystverket, the Norwegian Coastal Administration. Two Saft Seanergy battery systems were also at the heart of the Scottish hybrid ferry M/V Catriona. By integrating the batteries, Caledonian Maritime Assets Ltd. can save up to 30 percent in fuel consumption and CO2 emissions in operation of the 150-passenger, 23-vehicle Roll-on/Roll-off ferry. Powered by three Volvo D13 marine generator sets that feed into a 400 volt switchboard that supplies power to two 375 kW permanent magnet motors that turn two Voith Schneider Propellers. The ferry can operate in either battery mode only or in hybrid mode. www.saftbatteries.com


Ad Index

Company

Page #

Company

Page #

American Club

15

Future Care Inc

18

Bahri General Cargo

37

Hatton Marine

42

Becker Marine Systems

28

Louisiana Machinery

39

9

Marine Art of J Clary

45

Metal Shark

34

National World War II Museum

C3

Nautican

17

OmniThruster

30

RW Fernstrum & Company

C4

Schuyler Rubber Companies

35

Smarter Ships 2017

11

Smith Berger Marine

45

Canadian Ferry Association Crowley Government Services

16

Detyens Shipyards, Inc.

24

Energy Focus Inc.

14

ERL Commercial Marine Inc

C2

ExxonMobil

3

Fairbanks Morse Engine

15

FERRIES 2017

31

Fincantieri Marine Group

7

Viega LLC

5

W&O

13,44

Towing Pins OCIMF Roller Fairleads Guide Sheaves

Shark Jaws

Balanced Head Fairleads

Smith Berger Marine, Inc.

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June 2017 Yearbook // Marine Log 45


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46 Marine Log // June 2017 Yearbook

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June 2017 Yearbook // Marine Log 47


SAFETY FIRST

Heed the Signs

48 Marine Log // June 2017 Yearbook

have absorbed enough light during normal daylight hours, or to have enough lighting on them from the overhead to actually work in blackout conditions. They are used primarily to indicate escape routes and the location of safety equipment in low light and blackout conditions, thus allowing crew and passengers to work towards their own rescue, safely.

Signs can help catch someone’s attention and steer them away from oncoming danger Warning Signs Another type of safety sign is the warning sign posted by ship’s crew to indicate a hazardous area, space or condition. Usually this is a temporary arrangement, but dangerous enough to warn crew and visitors about. One of the most common onboard is the lock out/tag out procedure used to prevent the unauthorized energization of electrical equipment. This simple tag could be a lifesaver for the person working on equipment. They may have tagged out a circuit from the control board, but are working out of sight of that

Matthew Bonvento Senior Manager, Safety, Security, Quality and Regulatory Compliance, Vanuatu Maritime Services Ltd.

Shutterstock/ xtock

S

igns are a critical part of safety onboard a ship and can help save lives. The first international rule regarding safety signage was adopted by IMO almost 40 years ago — on November 19, 1987 in IMO Resolution A.603(15) — establishing a baseline for safety signage in the maritime industry. This was subsequently revoked by IMO Resolution A.760(18) on November 4, 1993 and incorporated into SOLAS Regulation Chapter III, Regulation 9.2 as amended by IMO Resolution MSC 82(70). I’m not trying to give you a severe migraine for something as simple as signs. Just bear with me. Earlier this year, on January 27, 2017, in a rare brilliant stroke, the IMO decided to adopt ISO 24409-2:2014—an ISO standard on Ships and Marine Technology safety signage. These standards not only specify what each symbol means, but also the construction of the stickers and how they are to be placed on board. These regulations only apply to the IMO safety stickers for fire fighting and life saving equipment. The SOLAS rules do not specify the exact placement of each sticker, except for the arrows indicating the escape route to the muster station. A critical requirement is that the photoluminescent strip or lighting has to be placed not more than 300 mm above the deck at all points along the escape route. Anyone who has ever taken Basic Fire Fighting remembers crawling on the deck to avoid the thick, acrid smoke. Other than that, these stickers do not have placement requirements. However, due to their photoluminescence, the stickers are useful only if they

board on the subject equipment. Another is the Enclosed Space Entry Permit, which places a restriction on the entrance of personnel into a space that may contain either hazardous gasses or does not have sufficient oxygen to sustain life. It is the responsibility of the crew to ensure that these signs are placed and maintained as needed. It is also the responsibility of the company to ensure that if these signs are up and being used, that work is conducted in a safety conscious manner. Industry wide we have heard about personnel going into an enclosed space, passing out, a friend going in to rescue them, and they both end up dying. Proper training to ensure that the personnel know what an Enclosed Space is and to check for an Entry Permit, can save lives. We often do not recognize the importance of using paint to mark hazards. But in normal shore side life we encounter this regularly. The use of painting “stop” on the road by the stop sign is so common that we often do not even realize it. Several years ago I read an accident report about a death that occurred on a fishing vessel involving the shifting crates on deck. In one particular spot, the handler and the operator of the deck trolley could not see each other. So after the crate was loaded on this trolley to be shifted, the spotter was caught in an area where the trolley crushed him along the bulkhead. The deck had no warning paint, and there were no signs posted warning mariners not to enter this area while the trolley was in operation. Simple precautions may have prevented his death. In Personal Safety and Social Responsibility mariners are taught to look out for unsafe operations, report them, and keep their colleagues from injury. There has been a trend towards toolbox talks, job safety analysis, etc. However, what is truly needed, in many ways, is the use of simple, effective measures such as signs to catch the attention of someone at risk and steer them away from oncoming danger.


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