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121st AnnuAL YEARBOOk & mARitimE REViEW

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

JUNE 2012

OffshORE On thE uPsWing CRuising AftER thE CONCORDIA Lng ignitEs innOVAtiOn

Engine of change Björn Rosengren, President & CEO, Wärtsilä Corporation

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June 2012 Vol . 117, no. 6

Wärtsilä’s president & CEO, Bjorn Rosengren sits down with Marine Log and outlines his vision for his company’s future

Departments 4






Signs point to slow recovery Renewed optimism in offshore energy Done Deal • Green Dolphin unveiled •Big river celebrations •Harvey Gulf acquires assets of Bee Mar, llC. And much more... 

p. 18 Features Navy


Engine of change

Bjorn Rosengren plans to lead Wärtsilä to the top of the complete lifecycle power solutions game p. 18


57 58 60 61 62 64


new Coast Guard authorization bill unveiled

tECh NEWS CONtRACtS BuyER’S GuIdE ML MARkEtpLACE ShIpBuILdING hIStORy Craig Shipbuilding: Toledo & Long Beach By Tim Colton

Brazil waxing optimism

After Concordia: Industry scrambles to improve safety

Brazil goes deeper and further offshore in search of oil and gas p. 40

The cruise shipping industry is facing one of its toughest years yet p. 21


Many Chinese shipyards may close their doors

Grim forecast includes limited contracting and shipyard consolidation p. 26

Ship Repair

Irving ramps up investment

2 MARINE LOG June 2012 YeARBooK

The navy’s 310-316 ship plan may see a decrease in numbers p. 37


Cruise Shipping

Amid an optimistic market, Irving is upgrading its group of shipyards as contracts come in

Sailing towards rough waters



how industry can benefit from Ocean policy

Good policy can promote smart oceanuse planning and job growth p. 47


tugs & Barges

the workhorses of the towing industry

LIKE US on Facebook

Bob Beegle takes a look at the industry’s hardest working vessels p. 52

FOLLOW on Twitter


CONNECT on Linked In

Yards in Washington state pull together to build WSF 144-car ferry p. 54

WATCH US on Youtube

Full plate p. 29

John R. Snyder Publisher & Editor Editorial

August 2000 Vol 105 No 8


Signs point to slow recovery


o are things good or bad? Since this is our Annual Yearbook & Maritime Review issue, one of the things we try to do is assess the current market conditions across the marine market, everything from barges to ballistic submarines. That said, on my own “I won’t see that again in my lifetime list,” there were three amazing events in the span of less than a week: The celebration of the Queen’s Diamond Jubilee, which included a flotilla of about 1,000 boats; the space shuttle Enterprise on a Weeks Marine barge floating past our New York offices on its way up the Hudson River to the Intrepid Sea, Air and Space Museum; and Venus passing in front of the Sun. While I don’t know if you can call any of these events omens, there are signs that the U.S. economy is improving, albeit not as quickly as everyone would like. I’m no economist and I don’t play one on TV, so I’m not going to talk to you about global macroeconomic trends. But the biggest threat to the fragile economic recovery in U.S. and the global economy is the European debt crisis. That’s not just my opinion, but also that of a lot of people Nicholas Blenkey who are smarter than me, including a recently released UN Editor report, World Economic Situation and Prospects 2012. The report says that even if further deepening and spreading of the euro area’s debt crisis can be avoided, “economic activity in the European Union is projected to stagnate in 2012. The outlook is not as somber for the United States and Japan, although in both countries output growth continues to be constrained by ongoing deleveraging and policy uncertainty.” The report pegs global trade growth at a mere 4.1%. However, there are some real bright spots for the maritime industry, including the demand for deepwater exploration, as we highlight in “Brazil: Waxing optimism,” starting on page 40. Worldwide the utilization rate for ultra deepwater drill rigs stands at nearly 100% and should remain that way for the foreseeable future.


Indeed, marine service vessel operators are investing in new tonnage to support deepwater E&P. In the U.S. this includes Hornbeck Offshore Services, Harvey Gulf International Marine (HGIM), Tidewater, Edison Chouest Offshore and Seacor. At press time, HGIM struck a deal to acquire all of the assets of Bee Mar LLC. In our cover story, “Engine of change,” on page 18, we had an opportunity to sit down with the personable Bjorn Rosengren, the President & CEO of Wärtsilä. Rosengren was in midtown Manhattan as part of a ceremonial ringing of the opening bell for NASDAQ. Just days prior to the NASDAQ event, there was a dedication ceremony for a controllable pitch propulsion system donated by Wärtsilä to the USMMA’s Engineering Department. The donated equipment will serve as full-scale training equipment and provide a hands-on experience for engineering students at the USMMA campus at Kings Point, NY. In our interview, Rosengren emphasized Wärtsilä’s commitment to supporting the gas-fuelled ship market and its investment in R&D—they pour back about 3.6% of their revenue into R&D on an annual basis. That’s better than some techies, such as Apple and HP. It appears the gas fuel ship evolution is well underway, with 20% of the world fleet expected to burn LNG by 2020. Washington State Ferries is looking to convert six of its Issaquah class ferries to solely LNG propulsion. You can read more in the article “Full plate,” by associate editor Shirley Del Valle starting on page 54. In the year ahead the shipping industry will continue to be under increasing environmental pressure as the North American Emissions Control Area comes on line this August and EEDI comes into effect in 2013. One of the other thorny issues for the industry is ballast water treatment, although it looks like we are close to setting a technically achievable national standard. At least that’s what the signs say.

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June 2012 Vol. 117 No. 6

MarineLoG ISSN 08970491

USPS 576-910

PRESIDENT Arthur J. McGinnis, Jr.















COLUMNISTS/CONTRIBUTORS Michael J. Toohey, Waterways Council Sandra Whitehouse, Ocean Conservancy Bob Beegle, Marcon International Tim Colton


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nexT MonTH: annuaL guLF coaST HeadLiner Marine Log Magazine (Print ISSN 0897-0491, Digital ISSN 2166-210X), (USPS#576-910), (Canada Post Cust. #7204654), (Bluechip Int’l, Po Box 25542, London, ON N6C 6B2, Agreement # 41094515) is published monthly by Simmons-Boardman Publ. Corp, 345 Hudson Street, 12th Floor, New York, NY 10014. Printed in the U.S.A. Periodicals postage paid at New York, NY and Additional mailing offices. Pricing: Qualified individual in the marine industry may request a free subscription. Non-qualified subscriptions printed or digital version: 1 year US $95.00; foreign $207.00; foreign, air mail $307.00. 2 years US $151.00; foreign $263.00; foreign, air mail $463.00. BoTH print & digital versions: 1 year US $142.00; foreign $311.00; foreign, air mail $411.00. 2 years US $228.00; foreign $394.00; foreign, air mail $594.00. Single Copies are $28.00 ea. Subscriptions must be paid for in U.S. funds only. coPYrigHT © Simmons-Boardman Publishing Corporation 2012. 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) 3464740, Fax (402) 346-3670, e-mail or write to: Marine Log Magazine, Simmons-Boardman Publ. Corp, PO Box 10, Omaha, NE 68101-0010. PoSTMaSTer: Send address changes to Marine Log Magazine, PO Box 10, Omaha, NE 68101-0010.



Michael J. Toohey, President/CEO, Waterways Council, Inc. August 2000 Vol 105 No 8

Waterways Column

THE WATERWAYS’ WARRIORS BATTLE ON group of members of House of Representatives, led by Congressmen Ed Whitfield of Kentucky, are at the forefront of a battle for our nation’s waterways’ infrastructure. On March 30, Congressman Whitfield introduced a bi-partisan bill, H.R. 4342: Waterways Are Vital-Economy, Energy, Efficiency and Environment, “WAVE 4.” Current co-sponsors are Rep. Jerry Costello (D-IL), Rep. Tim Johnson (R-IL), Rep. John Shimkus (R-IL), Rep. Daniel Lipinski (D-IL), Rep. Russ Carnahan (D-MO), Rep. John Duncan (R-TN), Rep. Steve Cohen (D-TN), Rep. Robert Aderholt (R-AL), Rep. Terri Sewell (D-AL), Rep. Leonard Boswell (D-IA), Rep. Dave Nicholas Blenkey Loebsack (D-IA) and Rep. Pete Olson Editor (R-TX). These are leaders in Congress who understand that the residents of their districts, those people whom they fight for each day, rely on the waterways’ system for jobs. They depend on the exported products moving on our river system to grow our national economy. They appreciate that without the waterways, their electricity bills would be unaffordable, that highway traffic congestion would be unbearable, and that supplies of fresh drinking water would be diminished. What would WAVE 4 legislation do? It calls for the prioritization of navigation projects across the entire system, the improvement of the Corps of Engineers’ project management and processes to deliver projects on time and on budget, recommends a funding mechanism that is affordable and meets the needs of the entire waterways system into the future. It recommends an annual appropriation funding level of $380 million for waterways infrastructure construction and major rehabilitation, of which the commercial users of the system pay half through a user fee. Our champions understand that this is such a relatively small amount of investment for a system that returns tremendous benefits to the nation, such as:



• Jobs, jobs, jobs: Farmers, utility workers, steel workers, builders, manufacturers, shippers, tugboat crews, port workers, laborers, terminal operators, and many others rely on the waterways transportation to sustain good American jobs. • Barge transportation keeps America’s products moving: More than 60 percent of the nation’s grain exports, 22 percent of our domestic petroleum and petroleum products, and 20 percent of the coal used

• Multi-beneficiaries: The inland waterways system benefits many, including those who use it for recreation, municipal and industrial water supply, hydropower and flood control. Many communities along our inland waterways benefit from economic development opportunities, and private property owners enjoy higher property values because of the steady pools of water created by locks and dams on our inland waterways. • Community connections: The inland

These are leaders in Congress who understand that the residents of their districts, those people whom they fight for each day, rely on the waterways’ system for jobs. in electricity generation is moved on our nation’s waterways. • Congestion relief: Just one 15-barge tow of dry bulk cargo keeps 1,050 trucks off our nation’s already over-crowded highways, or 216 railcars from blocking railroad crossings in our communities. • Economic recovery and prosperity: 566 million tons of cargo moved annually equals around $180 billion back into the U.S. economy. Providing lower shipping costs, barge transportation helps our farmers to be more competitive in world markets, allows our building materials to move cheaper, and keeps our electricity rates lower helping many Americans in these difficult economic times. • Cleaner air, fewer emissions: Inland waterways transportation has a lower carbon footprint and generates fewer carbon dioxide emissions than rail or truck for each ton of cargo compared to transporting that same cargo by these other modes. • Energy efficiency: Barges can move one ton of cargo 616 miles on one gallon of fuel—138 miles more than rail transport and 466 miles more than truck transport.

waterways system includes 12,000 miles of commercially navigable channels and around 192 lock sites. America’s inland marine highways move commerce to and from 38 states throughout the nation’s heartland and Pacific Northwest, serve industrial and agricultural centers and facilitate imports and exports at gateway ports on the Gulf Coast. • Safety in numbers: Inland waterways transport has a low injury and fatality record compared to rail or truck. Safetyrelated statistics for all modes of freight transportation show one injury in the inland marine sector for every 95.3 in the rail sector and 1,609.6 in the highway sector, and one fatality in the inland marine sector for every 18.1 on rail and 132 on the highway. • Excess capacity: Our nation’s navigable waterways system has an abundance of under-utilized capacity, unlike the truck or rail industries. With statistics calling for a doubling of exports over the next decade, the waterways can move the products to feed the world’s inhabitants most efficiently and with the fewest societal impacts. ML


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biz NOTES $29 million available for clean diesel projects

DONE Deal HHI inks contract with Fred Olsen Energy for UDW semi


wholly owned subsidiary of Fred Olsen Energy ASA recently entered into a turnkey contract with Korea’s Hyundai Heavy Industries (HHI) to build a harsh ultra-deepwater, semi-submersible drilling rig. Deepwater Nautilus, built by HHi for transocean in 1999

Hyundai Heavy Industries, as a turnkey contractor, will undertake all works including engineering, procurement and commissioning for the $700 million project. The contract also includes an option exercisable by October 2012 by another subsidiary of Fred Olsen Energy to order an additional same class drilling rig. The new drilling rig will be a Moss Maritime CS 60 E design, measuring 123 m in length and 96 m in width with an operating depth range of 70 m to 3,000 m, and built according to NORSOK standards. These

ivar brandvold, ceo and president of fred olsen energy (left) and Kang Young-seog, senior vice president and Head of Hyundai Heavy’s oslo branch

standards are applicable to rigs operating in the adverse conditions of the North Sea. When completed in March 2015, this semi-submersible rig will be the biggest ever built and able to drill to depths of 12,200 m. The rig will be built at Hyundai Heavy’s Gunsan Shipyard. Equipped with a 1,650 ton Goliath Crane and the world’s largest 1.3 million DWT dry dock, the Gunsan Shipyard has delivered 26 ships since its establishment in 2010.

The U.S Environmental Protection Agency (EPA) has announced that $29 million has been made available from federal and state grants to implement clean diesel projects aimed at reducing greenhouses gas emissions from marine vessels, trucks, buses and trains. Of those available funds, $20 million is available in grants under the Diesel Emission Reduction Program (DERA) in FY 2012 grants and the remaining $9 million will be available through direct state allocations. This is the first competition since DERA was reauthorized in 2011. The program cleans up existing diesel vehicles by targeting projects that utilize the most cost-effective clean diesel strategies. By reducing diesel emissions in areas that have significant air quality issues the program can have a direct impact on community health. EPA estimates that for every $1 spent on clean diesel funding up to $13 of public health benefit is realized.

TargeT Ship ManageMenT To pay $1.2 Million in polluTion caSe the U.S. Department of Justice reports that Singaporebased Target Ship Management Pte. Ltd pleaded guilty to a violation of the Act to Prevent Pollution from Ships for failing to properly maintain an oil record book as required by federal and international law, as well as making material false statements during a U.S. Coast Guard inspection of the Gaurav Prem at the port of

Mobile in September 2011. The Equasis data base lists the ship as an 73,901 dwt bulk carrier owned by Singapore’s Mercator Lines. Target Ship Management was sentenced to pay a $1 million criminal fine along with a $200,000 community service payment to the National Fish & Wildlife Foundation. The community service payment will be earmarked for projects in the

10 marine loG JUNE 2012 YEARBOOK

Southern District of Alabama, including Mobile Bay. Target was also sentenced to three years probation. As a condition of the probation, ships operated or managed by Target Ship Management, that will or may call on the United States, must be subject to an environmental compliance plan supervised by outside auditors and the court. Payongyut Vongvichinakul,

the ship’s chief engineer, and Pakpoom Hanprap, the ship’s second engineer, also pleaded guilty to violations of the Act to Prevent Pollution from Ships and are scheduled to be sentenced on July 19, 2012. The ship’s captain, Prastana Taohim, was convicted at a jury trial on May 17, 2012, for obstructing the Coast Guard’s inspection for similar but unrelated charges.

Green dolpHin

inGalls launcHes lHa 6, Wins contract for lHa 7

unveiled The Green Dolphin, a new handysize bulk carrier concept design created by the Shanghai Merchant Ship Design & Research Institute (SDARI) and development partners DNV and Wärtsilä, promises to keep ship owners at the top of their fuel savings game for years to come. The design’s immediate goal is simple enough: to provide improved overall performance at different loading conditions, speeds and sea states. But the design’s creators took it a step further, providing a design that is not only fuel-efficient and maintenance-friendly, but also offers high operational flexibility. With the Green Dolphin, ship owners will have the opportunity to use already existing technologies to meet fuel efficiency requirements and operational flexibility while being prepared for the future. “We have achieved a concept design that is not only fuel efficient, safe and robust today, but is also prepared for the future, with the various design alternatives that an owner can select to comply with environmental regula-

tions,” says Michael Aasland, DNV’s Business Director for Bulk Carriers. “ The focus has been on reducing the fuel consumption while giving owners different options to meet the future expected environmental regulations, says hu JinTao, the president of SDARI. “The concept design is ready for the owners’ preferred choice, whether that it is to run on heavy fuel oil using emission treatment systems or to switch to low sulfur fuels or lNG.” The Green Dolphin, measuring 180 m x 32 m x 15 m, is a five-cargo hold CSR doublehull bulk carrier. The vessel’s propulsion efficiency will be increased through the fitting of a wakeequalizing duct in front of a large-diameter, slow-rotating


with Colleagues

propeller. A rudder transition bulb and rudder fins reduce the hub vortex and recover rotational losses. It will feature Tier II compliant Wärtsilä two-stroke lowspeed RT-flex50 main engines that can be retrofitted to dual-fuel engine if necessary. “Design variants are available for fuel switching systems, installation of selective catalytic reduction and exhaust gas scrubbing systems and, in the near future, the use of lNG as fuel” says Giulio Tirelli, Business Development Director of Wärtsilä – Ship Power. “The concept design also includes shaft torque and exhaust gas monitoring equipment to maximize the fuel consumption optimization possibilities while constantly monitoring emissions,” he adds.

huntington Ingalls Industries (hII), Newport News, VA, was awarded a $2.38 billion fixedprice incentive contract for the detail design and construction of the multipurpose amphibious assault ship, Tripoli (lhA 7). The award announcement came on the heels of the launch of America (lhA 6). Both ships are being built by hII’s Ingalls Shipbuilding Division. The lhA 6 and lhA 7 are the first two ships in the new America class of amphibious assault vessels. The ships will be 844 ft long and 106 ft wide and will displace 44,971 long tons. lhA 6 and lhA 7 will have accommodations for 1,059 sailors and 1,687 marines and will be driven by a fuel-efficient gas turbine propulsion system that will generate speeds up to 20 knots. They will also be capable of carrying a Marine Expeditionary Unit, including Marine helicopters, MVD22 Osprey tiltrotor aircraft and FD35B Joint Strike Fighter (JSF) aircraft.

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JUNE 2012 YEARBOOK marine loG 11


River Thames and Hudson River play hosts to extraordinary events

Matt Gibson /

Rivers, are by nature, the bloodline of a city—bringing with it life, commerce and tourism. While they serve a commercial purpose, they also prove to be the ultimate stage for out-ofthis-world events. Earlier this month crowds gathered alongside the River Thames in London to grab a glimpse of the Queen of England as she kicked off the celebration of her Diamond Jubilee.

To mark the occasion a flotilla of 1,000 vessels, made up of vessels from across the UK, the Commonwealth and beyond, traveled seven-miles down the Thames between Battersea and Tower Bridge as part of the jubilee pageant. The star of the show, however, was the royal barge, the 210 ft Spirit of Chartwell. The vessel, a luxury river cruise ship operated by the Magna Carta Steamship Company Ltd., was designed to echo the royal barges of the 17th and 18th centuries. Decked out in the royal colors—red, gold and purple—and featuring 10,000 flowers from the Queen’s own Gardens, the vessel carried the Queen and members of the royal family during the procession. And in a move that drew cheers from the crowd, the Spirit of Chartwell performed an impressive rapid-fire 360-degree turn on the river. Pageant Master, Adrian Evans commended members of the maritime industry, who helped make the event a success, “I would like to add my personal thanks to the 1,000 skippers and their crews, who did a magnificent job bringing their vessels safely onto the river, helping to create a truly majestic spec-

Photo courtesy: U.S. COAST GUARD

tacle.” A sentiment shared by Chief Executive of the Pageant, Michael Lockett, who said, “Particular thanks should go to the men and women of the Port of London Authority, the RNLI, the Met, the Maritime and Coastguard Agency and the Environment Agency for helping to ensure that a highly complex event on a potentially dangerous river went so smoothly.” Days later, New York City crowds had their own event on the Hudson River— granted it wasn’t of the royal kind. New Yorkers flocked to the Hudson to watch the Space Shuttle Enterprise be towed to the Intrepid Sea, Air & Space Museum. The 171,000-pound shuttle will be the center-piece of the

Construction readyOperator approved

Intrepid’s Space Shuttle Pavillion, which is set to open to the public July 19. While it may have never made it into space, the Enterprise is proving to be quite a star. Back in April, the shuttle was attached to a 747 and performed a flyover NYC before being taken to JFK airport where it remained until earlier this month. Strapped onto a Weeks Marine barge, the shuttle took a two- hour trip up the Hudson before it docked on the flight deck of the World War II ship. The process to lift the shuttle from the barge onto the Intrepid took three hours. For more information visit:

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dredge construction starts at bae Just as its about to deliver the U.S. Flag/Jones Act-qualified product chemical tanker, American Phoenix to the State of Alabama, BAE Systems, began construction on an 8,500 cubic yard capacity trailing suction hopper dredge for Weeks Marine, Inc. The vessel will measure 340 ft long, 79 ft wide, with a draft of 27 ft. The state-of-the-art trailing suction hopper dredge will be the first designed by IhC Merwede to be built in the United States. It will be delivered in 2014.

sea scout marks shift for c & c technologies All-American Marine Inc., Bellingham, WA, has delivered the 134 ft Sea Scout to Louisiana-based C&C Technologies, Inc. The vessel will be used for survey work. Sea Scout’s aluminum construction is the first time C&C operates a vessel that isn’t a steel monohull. The decision to make the jump to aluminum was prompted by C&C’s diverse multi-mission requirements. The aluminum construction promotes speedy, more efficient operations, while offering greater seakeeping ability. “With this boat, we will be able to do more work in rougher seas,” says C & C Technologies’ Jeramie Rivette. “That’s really important in survey work where pitch, roll and heave will often stop you from getting good data.”

“The challenge,” explains Nic de Waal of Teknicraft Design Ltd., “was to design a vessel that would run at high speeds and over long distances to reach the project site, but also a vessel that would be efficient spending a long time on low power and low speed during surveying work.” To meet that challenge,

the ABS certified survey vessel will feature quad propeller propulsion system, generating a cruising speed of 26 knots. Its two engine rooms will each be equipped with a C32 ACERT 1,600 bhp diesel engine, a C18 ACERT 553 bhp diesel engine and a C6.6 170 ekW generator, all supplied by Caterpillar. At the job site Sea Scout will run on the smaller two engines coupled to ZF Marine gears with trolling valves to provide an economical speed range from 4 to 11 knots. For long range capabilities, the vessel has a fuel tank capacity of 6,600 gallons, plus two reserve tanks provide an additional capacity of 4,400 gallons. Ballast tanks are located fore and aft to ensure optimal trim in various loading conditions.

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Update Update Ship operators faced with the ‘green gauntlet’ In the coming months, ship operators will be faced with the green gauntlet, as a number of environmental regulations go into effect. These regulations include ballast water management, shipboard energy efficiency and a new North American Emissions Control Area. Earlier this year, Tom Kirk, ABS, Director of Environmental Programs, and Fernando Lehrer, Vice President, Product Development, ABS Nautical Systems, outlined these environmental challenges and some new tools available that will help operators with regulatory compliance. As of January 1, 2013, points out Kirk, all shipowners and operators will have to identify and develop ship specific energy efficiency measures for their vessels in order to comply with IMO’s SEEMP. Ship operators will also have to comply Tom Kirk, ABS with the Energy EffiDir. , Environmental ciency Design Index Programs (EEDI) for all major types of new ships contracted for or on January 1, 2013. This August, the North American Emissions Control Area (ECA) goes into effect, which will require vessels calling at North American ports to burn ultra low sulfur fuel or employ exhaust gas scrubbers. The ECA extends 200 nautical miles off the coast. Lehrer says that ABS Nautical Systems has developed a new software system called the Energy & Environmental and Trim Optimization software that will help operators with shipboard energy management and fleet management. Lehrer Fernando Lehrer, says operators that Vice President, Prod. Development, employ the software can leverage the sysABS Nautical Sys. tems already in place to collect, analyze and record data. “It’s easy to use and low cost,” he adds. The software will enable operators to check vessel hull and machinery performance and efficiency, greenhouse gas emissions and sewage, garbage, oil water and ballast water discharges. Operators can use the software to automatically generate reports for Energy Efficiency Operating Index (EEOI), ballast 14 MARINE LOG JUNE 2012 YEARBOOK

water management exchange and voyage performance. The master, ship manager and corporate offices can all view the information via customized dashboards, allowing for efficient fleet monitoring and operations. Logs, for

example, can be electronically generated for the oil record book, fuel switching and ballast water exchange or for compliance reports, such as ISM or ISPS. Sister ships in a fleet can also be easily compared, allowing for fleet optimization.

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Ulstein to build four more PSVs Blue Ship Invest AS recently ordered four Ulstein PX121 platform supply vessels from Ulstein for delivery in 2013. This past January, Blue Ship Invest took delivery of its first vessel, Blue Fighter, from Ulstein Verft, and will receive its second ves-

sel in the third quarter. “Blue Fighter has been working for the oil company Apache for several months, and we have received very good feedback from Remøy Shipping, who manages the vessel on our behalf. The feedback, combined with

developments in the PSV market, lead us to contract a series of another four PSVs of the same design,” says Ulstein Group CEO Gunvor Ulstein. She adds that while Ulstein’s expertise is in design, system solutions and ship construction, ship management is not a part of the company’s business scope. “We will make arrangements for the management of the vessels, but I emphasize that all six vessels are for sale,” she says. PX121 has a length of 83.4 meters and a beam of 18 meters. It has a cargo deck of 875 square meters and a load capacity of 4,200 tonnes.


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Harvey Gulf International Marine, New Orleans, LA, signed an agreement with Bee Mar, LLC, Broussard, LA, to purchase all of Bee Mar’s vessels and assets, according to HGIM CEO Shane Guidry. The purchase will include 10 offshore supply vessels, which will increase Harvey Gulf’s fleet to a total of 32 vessels—with 24 deepwater, new generation offshore support vessels and eight deepwater towing vessels. Upon closing, Harvey Gulf will have operations in the U.S. Gulf of Mexico, Alaska, Mozambique Africa, Israel and Saudi Arabia. The Bollinger family formed Bee Mar LLC in 2009 to operate two classes of DP-2 platform supply vessels built in sister-ship series at Bollinger Shipyards in Louisiana. The cargo-carrying capability aboard these vessels is comparable to those of much larger vessels currently operating in the global offshore services market. Five of the vessels are 210 ft Busy Bee class vessels providing 2,700 LT of cargocarrying capability, 150 ft x 47 ft clear deck / 1,700 LT of deck cargo, 6,300 bbl of liquid mud capacity and 6,000 cubic feet of bulk cargo capacity. Five are 234 ft Bumble Bee class vessels providing 3,000 LT of cargo-carrying capability, 175 ft x 47 ft clear deck / 2,000 LT of deck cargo, 9,000 bbl of liquid mud capacity and 6,000 cubic feet of bulk cargo capacity.

june 2012 YeARBOOK MARInE LOG 15


New Coast Guard authorization bill unveiled


arly this month, the House Committee on Transportation and Infrastructure is scheduled to markup several pieces of important legislation impacting the maritime industry, including the Coast Guard and Maritime Transportation Authorization Act of 2012 and the Marine Debris Act Reauthorization Amendments of 2011. The Coast Guard and Maritime Transportation Authorization Act of 2012 (H.R. 5887) is a three-year reauthorization of the Coast Guard for fiscal years 2013-2015. You might remember a similar piece of legislation introduced last year. The House approved that measure last year, but the Senate has yet to act on it. This is not surprising given the acrimonious atmosphere in Congress.

Of course, you can’t mention the Coast Guard without thinking about the problematic road to its fleet recapitalization. The Government Accounting Office (GAO) just released a report called Observations on the Coast Guard’s and the Department of Homeland Security’s Fleet Studies. In it the watchdog agency highlights the struggles the Coast Guard is facing as it works to replace its aging fleet amid tightening budgetary restraints. Ultimately the Coast Guard’s fleet mix will impact its ability to conduct all its missions—from military operations to maritime and port security to drug interdiction. The GAO report, which was mandated by Congress in the DHS Appropriations Act of 2012, examined three stud-


ies on the Coast Guard fleet, including (1) the Coast Guard Fleet Mix Analysis Phase I, (2) the Coast Guard Fleet Mix Analysis Phase II, and (3) the DHS PA&E Cutter Study. All were conducted to examine different mixes of Coast Guard cutters to guide decisions on the recapitalization of its fleet, formerly known as the “Deepwater” program. The recapitalization effort has a “program of record” of 91 vessels, including eight National Security Cutters, 25 Offshore Patrol Cutters, and 58 Fast Response Cutters. One of the interesting observations in the report is that the current program of record will not meet the Coast Guard’s long-term strategic goals. To do so, the Coast

Guard would need a fleet costing upwards of $65 billion— about $40 billion more than the program of record. That kind of money is just not available nor realistic in today’s budgetary reality. Meanwhile, the Marine Debris Reauthorization Amendments of 2011, HR 1171, would establish the National Oceanic and Atmospheric Administration (NOAA) Marine Debris Program, which would investigate the sources of, prevent and remove marine debris in the environment. NOAA would work with other federal agencies to identify ship- and landbased sources of marine debris, as well as look at things such as derelict fishing gear and plastics in the marine environment.

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Bjorn Rosengren, President & CEO of W채rtsil채, was recently in the Big Apple to ring the opening bell at NASDAQ







hen Bjorn Rosengren took the reins as President & CEO of Wärtsilä in September of last year, he was staring down a global financial crisis, fierce cost cutting by ship owners amid slumping rates and an overheated shipbuilding market. Faced with these very tough market conditions, Rosengren quickly assessed the company’s strengths and matched those with the special niche opportunities in the marketplace. This past April, the enthusiastic, energetic and confident Rosengren outlined his vision for Wärtsilä in an interview with MARINE LOG, following the ceremonial ringing of the opening bell for NASDAQ in midtown Manhattan. Also on hand were Atte Polamaki, Group Vice President, Communications & Branding, Wärtsilä and John Hatley, Vice President, Ships Power Americas, Wärtsilä North America. A global company and brand, Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland. It had net sales last year of EUR 4.2 billion with 18,000 employees in 70 countries. Central to Rosengren’s vision is supporting the growth of gas-fuelled vessels and helping both operators on land and sea to meet their commitments to environmental compliance with the best in class technological solutions. Rosengren points out that tightening environmental regulations aimed at reducing greenhouse gas emissions, such as NOx, SOx and particulate matter as well as CO2 will drive the demand for technological solutions—both equipment and services—produced by Wärtsilä. “Some regions are being burdened, while others have to comply,” says Rosengren. “Emission Control Areas have been in effect in the Baltic and North Seas for years.” This August ships calling at ports in North America will have to comply with the stricter emissions regulations imposed by the North American Emissions Control Area (ECA), which extends 200 nautical miles off of the coast. While operating within the ECA, ships will have to burn ultra low sulfur fuel or use exhaust gas scrubbers or Selective Catalytic Reduction (SCR) equipment.

er option is to burn Liquefied Natural Gas (LNG) if you have dual fuel or gas engines. Also on the horizon is IMO’s Energy Efficiency Design Index (EEDI) and Energy Efficiency Operating Index (EEOI) for ships. EEDI and EEOI will not only create a demand for Wartsila’s propulsion solution, but also its Ship Design services as well. Wärtsilä wants to be the leader in complete lifecycle power solutions for the global marine market and selected energy markets worldwide. It sees growth opportunities in gas power plants as part of its Smart Power Generation concept,

in the U.S. with Shell which will support bunkering for gas-fuelled ships such as Harvey Gulf International Marine’s dual-fuel SV310DF offshore support vessels in the U.S. Gulf of Mexico. At the end of January this year, Wartsila finalized its acquisition of U.Kbased Hamworthy, solidifying its growth in environmental solutions, including marine gas applications, scrubbers and ballast water treatment systems. While there is yet to be a de facto global standard for ballast water treatment, it appears that progress is being made. Estimates vary that anywhere from 30,000 to 45,000 or more ships will

What it boils down to is that you have to have the best products in order to be successful. My job is to make sure that we are always one step ahead.

as well as in gas-fuelled engines and related systems for the marine market. “Norway has been a frontrunner in gas-fuelled vessels—offshore support vessels and ferries—for years. We recently completed the retrofit and conversion of the Bit Viking, a product tanker to burn gas as fuel,” says Rosengren. Some estimates project that as much as 20% of the world fleet could be gas fuelled by 2020. “We want to be recognized as the leader when it comes to using gas,” says Rosengren. Wärtsilä has over 3 million hours of experience with dual-fuel engines. However, LNG is faced with the “chicken and the egg” dilemma. In order for gas to reach its potential bunkering infrastructure has to be in place. Right now, gas bunkering is more expensive and complicated compared to oil, and is only available in limited places. “To make gas successful we need to work on building up the network,” says Rosengren. Wärtsilä is also cooperating with Shell on developing the infrastructure needed for handling gas. It struck a deal

need to install systems for cleaning ballast. Rosengren calls Hamworthy’s ballast water treatment systems the right technology for the problem. In addition, Hamworthy has extensive experience in handling gas and scrubber technology. So whether an operator opts to burn gas as fuel or install scrubber technology, Wartsila will have the flexibility to offer the right solution. INVESTING IN R&D A mechanical engineer who spent 14 years with Atlas Copco, Rosengren also emphasized Wärtsilä’s strong emphasis on R&D. The company has about 700 R&D employees worldwide and pours back about 3.6% of its revenue into R&D. That’s pretty impressive considering that Apple, considered a leading innovator, spent 2% of its revenue on R&D last year. “What it boils down is that you have to have the best products in order to be successful. My job is to make sure that we are always one step ahead. Product excellence is the reason why Wärtsilä is here today and the reason why we will be here tomorrow too.” ML JUNE 2012 YEARBOOK MARINE LOG 19





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After Concordia: Industry scrambles to improve safety


n the aftermath of the January 13, 2012 Costa Concordia disaster the cruise industry is facing one of its most challenging years ever. The tragedy, which left 32 dead and the ship a constructive total loss, capsized in the waters off Giglio, Italy, has produced rapid and concerted efforts by the industry to review existing safety procedures, make recommendations and implement changes, all aimed at ensuring in both perception and reality that the incident is an aberration that will have no lasting impact on the industry’s growth and profitability. Unfortunately, the incident and its aftermath cannot be viewed in a vacuum, as all of the externalities that impact a global industry continue in play. CRUISING AFTER CONCORDIA Shortly after the incident, the Cruise Lines International Association (CLIA) announced a Cruise Industry Operational Safety Review. The Review was to include a comprehensive assessment of the critical human factors and operational aspects of maritime safety. It would include an internal review by each CLIA member of its operational safety practices and procedures including navigation, evacuation, and emergency training; consultation with independent experts; and identification and sharing of industry best practices. It would consider possible recommendations to the IMO for substantive regulatory changes, and involve close collaboration with the IMO, governments and regulatory bodies to implement changes. The first two steps to improve safety were announced jointly by the CLIA, the European Cruise Council (ECC) and the U.K.’s Passenger Shipping Association —a new emergency drill policy requiring mandatory muster for embarking

CRUISE SHIP ORDERBOOK (As of May 1, 2012) Cruise Line/Vessel


AIDA Cruises AIDAmar Meyer Werft AIDAstella Meyer Werft unnamed Mitsubishi H.I. unnamed Mitsubishi H.I. Carnival Cruise Lines Carnival Breeze Fincantieri Celebrity Cruises Celebrity Reflection Meyer Werft Compagnie du Ponant Le Soleal Fincantieri Costa Cruises Costa Fascinosa Fincantieri unnamed Fincantieri Hapag Lloyd Cruises Europa 2 STX France MSC Cruises MSC Divina STX France MSC Preziosa STX France Norwegian Cruise Line Norwegian Breakaway Meyer Werft Norwegian Getaway Meyer Werft P&O Cruises unnamed Fincantieri Princess Cruises Royal Princess Fincantieri unnamed Fincantieri Royal Caribbean International unnamed Meyer Werft unnamed Meyer Werft Sea Cloud Cruises Sea Cloud Hussar Marin TUI Cruises unnamed STX Finland Viking Ocean Cruises unnamed Fincantieri unnamed Fincantieri


Lower Berths

Est. Delivery

Est. Price* ($ in Mil.)

71,000 71,000 125,000 125,000

2,174 2,174 3,250 3,250

May 2012 May 2013 Mar 2015 Mar 2016

$508 $421 $648 $648



May 2012




Nov. 2012




Jun 2013


114,500 132,500

3,004 3,708

May 2012 Oct 2014

$673 $792



Spr. 2013


140,000 139,400

3,500 3,478

May 2012 Mar 2013

$677 $677

143,500 143,500

4,000 4,000

Apr 2013 Apr 2014

$850 $850



Mar 2015


139,000 139,000

3,600 3,600

Apr 2013 Apr 2014

$737 $737

158,000 158,000

4,100 4,100

Aut. 2014 May 2015

$943 $943







Wnt 2014


45,000 45,000

998 998

late 2014 late 2015


* Euro-denominated contracts converted to USD at the rate of 1 euro = $1.32 Source: Clarkson Research Services

The newest addition to the Carnival fleet, the 1,004 ft Carnival Breeze will begin operations this month



ShipBuilding passengers prior to departure from port (February 9) and recommendations to the IMO supporting enhanced reporting requirements to improve the consistency and transparency of marine casualty data (March 21). Next, on April 20, the industry appointed its panel of independent experts to assess the recommendations developed by the Operational Safety Review. The fourmember panel consists of the former Chairman of the U.S. National Transportation Safety Board (NTSB), the former head of the U.K. Royal Navy’s Marine Accident Investigation Branch, the former Director of the NTSB Office of Marine Safety, and the former head of the European Maritime Safety Agency. That panel first reviewed three new policies that were

DiD YOU  KNOW? Costa Crociere has offered passengers who were onboard the Costa Concordia compensation of 11,000 euros (about $14,500) for all property and non-property damages. The offer does not cover crewmembers, those who lost loved ones or those who were injured. Some 281 Filipino crew members were reported to have received a total of $2m for lost wages and personal effects, an average of about $7,000 per claim.


announced for immediate implementation on April 24 at a major European Commission-organized Passenger Ship Safety event in Brussels. The three new policies, which go beyond even the strictest existing regulatory requirements, address passage planning, personnel access to the bridge and lifejackets. All were to have been reported to the IMO Maritime Safety Committee for consideration at its next session in May. For passage planning, the policy introduces a collegial approach by which officers will collaborate on ship navigation plans before departure, discussing weather, sea conditions, routes, and traffic, with the passage plan ultimately approved by the master. It mandates as a minimum requirement the IMO

TA N K E R S guidance on the subject, enhanced by the best practices contained in the International Chamber of Shipping’s Bridge Procedures Guide. For bridge access, the policy limits access to those with operational functions during any period of restricted maneuvering or when increased vigilance is required. For lifejackets, the policy ensures that the number carried is far in excess of the number of persons actually onboard the ship by mandating additional lifejackets equal to at least the total number of persons berthed within the ship’s most populated main vertical fire zone. Costa Crociere has also announced some additional initiatives which are likely to be extended at least across Carnival’s portfolio of brands, including a real-time route-monitoring system for its fleet, with an alarm to alert Costa headquarters if a ship deviates from its expected route. Additional best practices and policies developed through the Operational Safety Review are likely to be announced and implemented on an ongoing basis, while recommendations


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CRUiSESHIPPING ShipBuilding Carnival fleet photos courtesy of Carnival Corporation & plc

The 892 ft Carnival Destiny (left) will undergo a major $155 million drydock early next year. Upon completion, the ship, which will be renamed Carinval Sunshine, will feature a variety of Fun Ship 2.0 innovations and an additional 182 cabins, increasing passenger capacity from 2,642 to 3,006. Carnival Sunshine is expected to launch April 2013

proposed for further IMO consideration and possibly leading to new international regulations on passenger ship safety are likely to be debated for years. Coming as it did at the beginning of the traditional Wave Season when

a large portion of the year’s bookings are done, there was immediate concern about the impact of the tragedy across the industry upon existing and future bookings, fare yields and vessel utilization, as well as the obvious asset and

liability impacts upon Costa and its parent Carnival Corporation. For Costa, the situation was exacerbated by an incident six weeks later when the Costa Allegre experienced an engine room fire that left the ship without power and its passen-

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ShipBuilding gers adrift for days. Since the tragedy occurred, there have been countless statements from Costa, Carnival, other cruise lines, and the various financial analysts and market researchers that track the cruise industry, presenting a confusing array of data and interpretation as to the impacts described. It was consistently reported that the immediate impacts upon traffic were minimal, essentially because in the very near term vacation


and associated travel plans are fixed and too costly to change. However, data related to new bookings is much more important, particularly as the industry relies heavily on first-time cruisers (reportedly up to 40%) to sustain growth. As survey results relate to periods further out, it becomes increasingly difficult to identify a direct causal relationship to any single variable. Hence the confusion when survey results don’t compare common time peri-

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TA N K E R S Salvage Operation

Titan Salvage and its Italian partner, Micoperi, have been awarded the project to remove the wreck from Giglio Island. Expected to take about a year to complete, the huge undertaking will involve patching the damaged hull, pumping out water, refloating and stabilizing the ship, and then towing it in one piece to an Italian port, rather than cutting it into pieces and removing those one by one. ods, and the natural skepticism when interpretations emanate from sources with a vested interest. The fact that price change is a lagging indicator to volume change only complicates the interpretation process. With so much of the global economy in turmoil, decline or simple uncertainty, it is probably better to report on outcomes rather than on interpretations. After record earnings in 2011 by the major reporting groups (Carnival at $1.7bn, Royal Caribbean at $607m and Norwegian at $127m), results are now in for the first reporting period since the incident. Carnival reported a first quarter loss of $139m, down from a year earlier profit of $152m. Royal Caribbean reported a $47m profit, down 40% from the $78m profit year-over-year. Only Norwegian was up, reporting $3.3m profit after a year earlier $7.9m loss. Record traffic levels in 2011 all predate the Costa Concordia incident, and no early 2012 figures are yet available. CLIA reported 16.3m global cruise passengers carried by its member lines in 2011, up 10.2% year-over-year. In the North American market, the U.S. Maritime Administration reported a record 10.8m passengers, up only 2.4%. Three cruise lines accounted for 72% of that total market (Carnival at 38%, Royal Caribbean at 22% and Norwegian with a 12% share). In Europe, where a record amount of capacity is currently seasonally deployed, the ECC reported that the number of Europeans choosing a cruise holiday exceeded 6m for the first time in 2011, up 9% after four consecutive years of double-digit growth. The United Kingdom is the largest source market in Europe with 1.7m passengers in 2011, and despite only a 5% growth, it still accounted for 28% of the European market. Germany, the second largest source

CRUiSESHIPPING ShipBUildinG market with a 23% market share, grew by 14%, its fourth consecutive year of double-digit growth, and is expected to surpass the U.K. in the next few years. In the rapidly growing Asian market, figures released by the China Cruise & Yacht Industry Association show more than 750,000 cruise passengers (turnaround and transit) through 12 Chinese ports in 2011. Shanghai and Hong Kong accounted for 31.6% and 28.5% of the passenger flow, respectively. With no early 2012 traffic figures available, and anecdotal reports of booking declines and aggressive pricing in both North America and Europe, the ship fare index produced by the U.S. Bureau of Labor Statistics provides at least a glimpse of the impact likely to be reported in the future. The index reported for March was the lowest ever reported, 3.5% below March 2011, 2.4% below the 2011 average, and even 0.6% below the low point during the recession in 2009. As of May 1, 2012, the global cruise fleet totaled 345 ships of 17.1m GT and 445,000 lower berths. The seven ships to be delivered in 2012 will add 18,600 berths (4.2%). That level, and the ordering that produces it, are expected to remain at about half of the pre-recession peak. Royal Caribbean has exercised its option for a second 158,000 GT 4,100-passenger ship from Meyer Werft for delivery in 2015, and MSC Cruises finally confirmed that it had completed purchase from STX France of the 140,000 GT 4,000-passenger ship originally ordered by Libyan GNMTC, for delivery in March 2013. The two ship order from startup Viking Ocean Cruises at STX France was cancelled and moved to Fincantieri, still subject to financing, and will involve slightly larger ships (45,000 GT/ 998 passengers). As of May 1, 2012, the cruise ship orderbook stood at 23 ships (2.4 million GT) with a capacity of 63,500 lower berths and an estimated value in excess of $14bn. The outlook for refurbishment remains very strong, with the most significant new project being Carnival’s complete makeover of the Carnival Destiny ($155m early in 2013), changing the character of the ship so completely that even its name will change (to Carnival Sunshine). With the euro-zone unemployment rate surging to a record 10.9% in March, the highest since the currency was established, and with 12 of the 27 EU member countries officially back in recession, the

European Commission’s half-yearly projections now call for a 0.3% contraction of the 17 country euro-zone economy in 2012 (November 2011 projection was for 0.5% growth). Adding the downward pressure on rates caused by record ship capacity in Europe, sluggish recovery in the U.S., concern for an economic slowdown in China, and the overhang of fuel costs and regulatory requirements, it should be clear that the industry’s cur-

rent challenges go far beyond the impact of the Costa Concordia. With fewer new ships being delivered as the effect of the 20-month ordering hiatus in 2008-2009 is being felt, and ordering levels expected to remain depressed, the modest capacity growth may prove to have been a fortuitous event that helps the cruise industry cope with the current challenges, living up to its reputation for being notoriously resilient to crises. ML

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Many Chinese shipyards may close their doors


hose with long memories may well recall the unprecedented misery endured by many of the world’s shipbuilders following a spate of over-ordering and shipyard capacity build-up at the end of the 1970s. Many now fear that the industry faces a similar spell of limited contracting and shipyard consolidation. For the most vulnerable, bankruptcy and closure may have seemed unimaginable two or three years ago, but may now be inevitable. There are certain key differences, however, between the last major shipbuilding crisis and the fight for survival facing many yards today. These include the fact that ocean trade, despite the downturn and as a result of globalisation, continues to expand at an average rate of about 4%, with non-OECD countries now well ahead in terms of trade

Sean Wang, CFO, Rongsheng Heavy Industries, believes that many Chinese shipyards will have to close

volumes. Then there is the cost of money. Double-digit interest rates prevailed through most of the 1980s, making today’s Libor rates of less than 1% look unbelievably cheap. But most importantly, global shipping now faces a completely new environment in terms of operating efficiency and environmental performance. Bunker costs of $750-plus are a complete game-changer, as are the requirements for improved design and operating efficiency generated by environmental concerns. Some experts are now suggesting that significant volumes of existing tonnage are already technically obsolete and, in light of poor markets, could well come to an early end. It is against this backdrop that the world’s largest shipbuilding nation— China—is preparing to streamline, ratio-

Sophisticated green ships from China For Chinese shipyards, 2011 was a rocky road and this year the path appears to be no less challenging. The overall size of the newbuilding market for 2012 is projected to be about 70 million to 80 million dwt. This will not be well matched with shipbuilding production capacity, which stands at about 120 million dwt. What this supply-demand


imbalance means is that prices for less sophisticated ships particularly will continue to be under pressure. In order to survive, Chinese shipyards will have to invest in R&D in more sophisticated vessel designs, particularly those that help ship operators meet stricter current and future environmental regulations such as

Energy Efficiency Design Index (EEDI). One example is the Green Dolphin bulk carrier concept from Shanghai Merchant Ship Design & Research Institute (SDARI). It’s teamed with Wartsila and DNV to create a design concept for a handysize carrier that meets current and expected air and water emissions regulations and achieves low fuel consumption and its projected EEDI is more than 20 percent below the IMO reference point for bulk carriers. The Sinopacific Shipbuildng Group, meanwhile, has unveiled the Crown 63 (60,000 dwt), Crown MHI 82 (80,000 dwt) and Crown 121 (120,000 dwt) series of bulk carriers. The three designs are “energy saving and

environmentally friendly.” Fuel consumption on the Crown 63 Ultramax bulk carrier, for example, is reduced to 25.8 tons/day at a service speed of 14.3 knots. GREENSHIP Singapore has taken delivery of four sister ships. “The friendly design of Crown 63 is in conformity with the environmental protection policies of Singapore. Based on the attained EEDI stage 2 value of the ship, it has achieved a reduction factor of up to 20% making it eligible to a serious reduction in Initial Registration Fees as well as Annual Tonnage Tax rebates till 31 Dec 2019.” The CrownMHI 82 is a bulk carrier jointly developed by Sinopacific and Japan’s Mitsubishi Heavy Industries, Ltd. (MHI).

ShipBUiLDiNG ShipBuilding nalize and consolidate its many shipyards, a large number of which have absolutely no work in hand at all. Sean Wang, Chief Financial Officer at Rongsheng Heavy Industries, believes that many Chinese yards will have to close. Addressing the China Money & Ships Conference organized in London recently by Seatrade, he points to the fact that contracts won by Chinese yards in 2008 exceeded those signed up in South Korea for the first time. And in 2010, China took the lead in terms of new contracts, orderbook and deliveries. Not for long, however. The country’s builders lost their lead again in 2011 when South Korean yards booked more than $48 billion of business, compared with China’s $19 billion. In 2011, Wang says, more than half of China’s shipyards failed to win new contracts. In 2011, China’s ship export volume was $43.69 billion, up 8.4% from 2010. However, the growth rate in the ship export business is shrinking. In January 2011, the ship export volume was $4.838 billion, then it quickly dropped to $1.659 billion in February 2011. Despite the gloomy outlook for many, however, Wang believes there is a positive outlook for leading yards prepared to embrace new, green technology and

willing to adopt what he sees as a vital AN ENTICEMENT: CHINESE FINANCING change in mindset. He says that Chinese His enthusiasm suggests that Rongshipbuilders must have a new perspec- sheng will almost certainly stay in the tive on everything that they do. frame. However, experts point out that “Made in China must be a symbol of Chinese yards have another powerful quality,” he says. “We have to build and card up their sleeve. And that is access develop a global brand.” to finance. He cites the “concentration gap” The Chinese Government has long which currently differentiates Chinese recognized the value of a domestic shipand South Korea yards. Around 60% building industry as an employment of Chinese deliveries are built provider and as a means of at the country’s top ten shipbuilding up a strong national Korean yards yards. In contrast, no less fleet to carry the country’s won than 80% of South Koreanbooming trade. Chinese built ships come from just banks, therefore, have been four yards there. encouraged not only to supin orders And, says Wang, there port shipyard investment are more than 4,000 shipdirectly, but also to focus building facilities in China, on finance for foreign owners compared with South Korea’s 70. seeking to build ships there. This means that the average contract The country’s financial institutions, value at a shipyard in China is worth sometimes working in co-operation with less than a fifth of a corresponding deal foreign banks, have successfully financed in South Korea. ships ordered in China for both Greek Chinese yards which plan to see their and German owners, among a number way through the crisis, Wang suggests, of others. As the world’s traditional ship will have to invest heavily in R&D. New financiers continue to lick their wounds and sophisticated ship designs will have and shrink their portfolios, this could yet to be generated using the latest in green prove to be the strongest card in the Chitechnology matching or even exceeding nese hand. ML the quality of ships built elsewhere (see side bar, “Green ships from China”).


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anada’s Irving Shipbuilding has certainly been in the headlines recently thanks to its selection by the Canadian Government to construct the Royal Canadian Navy’s new combat fleet, a program that comprises 21 vessels over a period of 30 years. But certainly that’s not all that is going on at the company. While Irving is completing negotiations for the contracts to begin work on the Royal Canadian Navy combat fleet, it has a number of other major projects already underway. At Halifax Shipyard, for example, it has begun construction of five of a series of nine high-tech mid-shore patrol vessels for the Canadian Coast Guard under a $194 million contract. Additionally, it is also conducting major refits on seven of the Royal Canadian Navy’s Frigates under a $549 million contract, which will

be completed in 2018. Besides Halifax Shipyard, Irving Shipbuilding, which is part of the J.D. Irving Group of companies, comprises Woodside Industries, Shelburne Ship Repair, and East Isle Shipyard on Prince Edward Island and four engineering offices across Canada, under Fleetway Inc. INVESTMENTS IN SHELBURNE SHIP REPAIR The optimism and opportunities in shipbuilding have been the driver behind significant investments by the company in its facilities, infrastructure and people. A good example is Shelburne Ship Repair, Shelburne, Nova Scotia. Located on the southeastern Atlantic coast of Nova Scotia, Shelburne Ship Repair is primarily focused on repair of vessels between 100 feet to 400 feet in length overall. This ISPS-certified facil-

ity recently underwent a $16.6 million upgrade and now boasts a new marine railway capable of lifting two vessels up to 4,400 tonnes each, allowing the cradle to be sub-divided for work on two vessels simultaneously. Other work at the facility also included dredging and reconstructing the wharf, general paving and repairs, fencing, and shop and office repairs. Shipbuilding has always been a significant industry for Shelburne. The first vessel launched from this area of Nova Scotia was the 181-ton Roseway, built for MacLean and Bogle in 1786. With 752m of available deep water wharf side, Shelburne Ship Repair can accommodate vessels up to 229m alongside for dock side work. It offers a full range of repair services and specialist support can be drafted in from other JunE 2012 YEARBOOK MARINE LOG 29




arms of the company if required. After the official re-opening in September 2011, the facility has been busy repairing and servicing vessels ranging from shrimp draggers and large fishing vessels to cargo ships, tankers and military vessels. There are currently more

TA N K E R S than 75 experienced shipbuilders and repair specialists busy working on the yard’s order book of business. “Our ships resupply cargo to communities and mines up in the Canadian Arctic,” says Georges Tousignant, Vice President Operations, Nunavut Eastern Arctic Shipping Inc. “We have to have absolute faith in our ships as there isn’t any support available where we go. The Shelburne Ship Repair team provided excellent service for the vessels and were able to support all the additional metal and mechanical tasks that came up as part of our five-year Special Survey,” adds Tousignant. “With the new railway we have been able to dock all our larger vessels at Shelburne Ship Repair,” says Greg Simpson, Executive Vice President, Mersey Seafoods. “Our crews and Port support team have an excellent working relationship with Shelburne Ship Repair and we plan on continuing that relationship. When we had a leaking stern tube due to a vender related problem, Shelburne Ship Repair worked out how to keep us on the railway without impacting the following customer schedule. The schedule flexibility was greatly appreciated so we could get back to fishing.” Halifax Shipyard, the largest of Irving


Since the completion of the new marine railway almost a year ago, a steady stream of vessels in for service and repair has included: •JP Oxley, Barge •YDT Sechelt, Dive Tender • M V A t l a n t i c P r o t e c t o r, Trawler •MV Mersey Venture, Trawler •MV Algoma Dartmouth, Tanker •HMCS Glace Bay, Kingston Class Coastal Defence •MV Mersey Phoenix, Trawler •MV Uniavut, Multi-purpose Containership •MV Avataq, Multi-purpose Containership • MV Geysir, General Cargo/ Containership •MV Stadt Hannover, Containership •MV Atlantic Condor, AHTS (photo at top)


ShipREPAIR Shipbuilding’s facilities, has a complete range of services for newbuild up to 120m and ship repair for vessels up to Panamax-size beam. It is home to the biggest floating dock and the largest machine shop in Eastern Canada. Halifax’s deep water, ice free port, the second largest natural harbor in the world, is a natural shipbuilding site, offering 24/7 access. With its comprehensive array of fabrication shops, outfit shops, machine shop and access to a large extensive local sub-contractor community, Halifax Shipyard has the wide-ranging capabilities to undertake all sizes of projects, from big to small. Halifax Shipyard covers 18,000m2 of water frontage with three docks, including one Panamax and one graving dock. Its build methodologies incorporate as much undercover construction, outfitting and painting as possible. All its facilities are certified members of ISPS and operate 365 days a year. East Isle Shipyard, located in Georgetown, Prince Edward Island, has forged an enviable reputation for the construction of specialist tugs. In the 19 years Irving Shipyard has owned this facility, the skilled workers of East Isle have earned the praise of customers for worldclass tugs that are serving around the globe—from the Panama Canal to the St. Lawrence Seaway to Norway’s offshore oil field in the North Atlantic. Most recently East Isle Shipyard completed contracts for seven new state-of-the-art tugs for a client based in Quebec. Irving Shipbuilding also has a proven track record in major offshore projects and has the most extensive fabrication capability on the East Coast of North America. Its Woodside Industries facility, located in Dartmouth, Nova Scotia, is located adjacent to an extensive array of industry specialty subcontractors, enabling the shipyard to provide a fast and total response to customer requirements. Multiple undercover facilities, coupled with the ability to load-out onto barge, train or road benefit clients with their project requirements. Woodside Industries has been used for the construction of large offshore topsides, as well as construction completion and winterization of some of the world’s largest semisubmersibles drilling rigs. Construction of the South Venture 2400 tonne production deck and flare boom for ExxonMobil saw the company recognized for 1 million person hours of safe work. Most recently it completed a major repair and refit on the oil rig Grand Banks, owned by Transocean. The rig

arrived a month ahead of schedule due to a collision with a supply vessel which caused damage to one of its port columns. Even with its early arrival and additional scope of work, the shipyard was able to deliver ahead of schedule and on budget. The rig is operated by Husky Energy offshore Newfoundland and Labrador. ML |

BOLL-1219-WE-SPEAK-ML.indd 1

JunE 2012 YEARBOOK MARINE LOG 31 5/10/12 12:14:01 PM

LegaL notice

Deepwater Horizon Oil Spill Economic and Property Damages Settlement Providing Money to Individuals and Businesses If you have economic loss or property damage because of the Deepwater Horizon oil spill, you could get money from a class action settlement with BP Exploration & Production Inc. and BP America Production Company (“BP”). Go to for more information, including information on how to file a claim.

Who is included in the economic & ProPerty damages settlement? The Economic and Property Damages (“E&PD”) Settlement Class includes people, businesses, and other entities in the states of Louisiana, Alabama and Mississippi, and certain counties in Texas and Florida, that were harmed by the oil spill. The website has detailed descriptions and maps to help you determine whether a geographic location may be included in the E&PD Settlement. Additionally, you can call 1-866-992-6174 or e-mail questions@ to find out if a geographic location is included.

What does the economic & ProPerty damages settlement Provide? The E&PD Settlement makes payments for the following types of claims: (1) Seafood Compensation, (2) Economic Damage, (3) Loss of Subsistence, (4) Vessel Physical Damage, (5) Vessels of Opportunity Charter Payment, (6) Coastal Real Property Damage, (7) Wetlands Real Property Damage, and (8) Real Property Sales Damage. There is no limit on the total dollar amount of the E&PD Settlement; all qualified claims will be paid.

hoW to get Benefits from the economic & ProPerty damages settlement You need to submit a Claim Form to request a payment. You can get a copy of the various Claim Forms by visiting the website or by calling 1-866-992-6174. Claims can be submitted online or by mail. If you have questions about how to file your claim, you should call the toll-free number for assistance.

The deadline to submit most E&PD claims will be April 22, 2014 or six months after the E&PD Settlement becomes effective (that is, after the Court grants “final approval” and any appeals are resolved), whichever is later. There will be an earlier deadline to submit E&PD Seafood Compensation claims. The earlier deadline to submit Seafood Compensation claims will be 30 days after final approval of the Settlement by the United States District Court for the Eastern District of Louisiana (regardless of appeals). Actual claim filing deadlines will be posted on the website as they become available. Valid claims will be paid as they are approved, beginning shortly after the Court-Supervised Settlement Program commences. It is highly recommended that E&PD Settlement Class Members complete and submit their claim forms promptly. Please read the Medical Benefits Settlement notice because you may also be eligible for benefits from that settlement.

your other oPtions If you do not want to be legally bound by the E&PD Settlement, you must Opt Out or exclude yourself by October 1, 2012 or you won’t be able to sue BP over certain economic and property damage claims. If you stay in the E&PD Settlement, you may object to it by August 31, 2012. The Detailed Notice explains how to exclude yourself or object. The Court will hold a hearing on November 8, 2012 to consider whether to approve the E&PD Settlement. You or your own lawyer may ask to appear and speak at the hearing at your own cost. The Court will also consider Class Counsel fees, costs, and expenses including an interim payment of $75 million and additional awards equal to 6% of class claims and benefits paid. Class Counsel fees, costs and expenses under the Economic and Property Damages Settlement Agreement and the Medical Benefits Settlement Agreement jointly cannot exceed $600 million. Class members’ payments will not be reduced if the Court approves the payment of Class Counsel fees, costs, and expenses because BP will separately pay these attorney fees, costs, and expenses.


LegaL notice

Deepwater Horizon Oil Spill Medical Benefits Settlement Providing Benefits to Clean-Up Workers and Certain Gulf Coast Residents If you have a medical claim related to the Deepwater Horizon oil spill, you could get benefits from a class action settlement with BP Exploration & Production Inc. and BP America Production Company (“BP”). Go to for more information, including information on how to file a claim.


is included in the medical Benefits settlement?

The Medical Class includes (1) clean-up workers and (2) certain people who resided in specific geographic areas in coastal and wetlands areas along the Gulf Coast during specific periods in 2010. The website DeepwaterHorizonSettlements. com has detailed descriptions and maps to help you determine whether a geographic location may be included in one of these zones. Additionally, you can call 1-866-992-6174 or e-mail info@ to find out if a geographic location is included.


medical Benefits settlement Provide? does the

The benefits of the Medical Benefits Settlement include: (1) payments to qualifying people for certain acute (short-term) and chronic (ongoing) medical conditions occurring after exposure to oil or chemical dispersants; (2) provision of periodic medical examinations to qualifying people; and (3) creation of a Gulf Region Health Outreach Program, consisting of projects to strengthen the healthcare system. Benefits (1) and (2) will be provided only after the Court grants final approval and any appeals are resolved.

hoW to get Benefits from the medical Benefits settlement You need to submit a Claim Form to request benefits. You can get a copy of the Claim Form by visiting the website or by calling 1-866-992-6174.

Claims can be submitted by mail. If you have questions about how to file your claim, you should call the toll-free number for assistance. The deadline for filing a Claim Form is one year after the Medical Benefits Settlement becomes effective (that is, after the Court grants “final approval” and any appeals are resolved). The exact date of the claim filing deadline will be posted on the website. It is highly recommended that Medical Class Members complete and submit their claim forms promptly. Please read the Economic and Property Damages Settlement notice because you may also be eligible for a payment from that settlement.

your other oPtions If you do not want to be legally bound by the Medical Benefits Settlement, you must Opt Out or exclude yourself by October 1, 2012 or you won’t be able to sue BP over certain medical claims. If you stay in the Medical Benefits Settlement, you may object to it by August 31, 2012. The Detailed Notice explains how to exclude yourself or object. The Court will hold a hearing on November 8, 2012 to consider whether to approve the Medical Benefits Settlement. You or your own lawyer may ask to appear and speak at the hearing at your own cost. Class Counsel will ask the Court to consider an award of fees, costs, and expenses of 6% of the value of the benefits actually provided under the Medical Benefits Settlement Agreement. Class Counsel fees, costs, and expenses under the Medical Benefits Settlement Agreement and the Economic and Property Damages Settlement Agreement jointly cannot exceed $600 million. Class members’ payments will not be reduced if the Court approves the payment of Class Counsel fees, costs, and expenses because BP will separately pay these attorney fees, costs, and expenses.




ollowing on from another profitable year in 2011 in which ship repair sales increased by 13% during tough market conditions, the Kingdom of Bahrain’s Arab Shipbuilding & Repair Yard Co (ASRY) has seen the shipyard equally busy during the early part of 2012. However, continued depressed rates are still the name of the game as owners continue to carry out the least amount of repairs as necessary to keep them within class. From this past January to early May, ASRY repaired a total of 66 vessels, 40 for the Arab market and 26 from the international market. In terms of spend, Saudi Arabian owners led the way, repairing 11 vessels, including three large tankers owned by the National Shipping Co of Saudi Arabia (NSCSA), now renamed Bahri, and technically managed by Dubai’s Mideast Shipmanagement Ltd., a subsidiary of Bahri. In a significant endorsement of the

yard’s capabilities, the beginning of 2012 saw ASRY sign a long-term ship repair agreement with one of the world’s largest shipping companies, Maersk, which is set to boost co-operation and attract more of the shipping giants’ vessels to Bahrain for repair and maintenance work. Maersk has committed to a four-year Fleet Repair Agreement that sets favourable terms and conditions for its vessels to be repaired and drydocked at ASRY until 2016. To date Maersk currently owns, operates and manages 500 vessels, a large portion of which pass through the Arabian Gulf, and could now have more of a regular presence at the Bahrain-based yard. Commenting on the agreement, ASRY’s Chief Executive Chris Potter said: “I’m delighted to welcome such a prestigious owner as Maersk to our growing list of customers with Fleet Repair Agreements at ASRY, especially

as market conditions are so challenging. ASRY’s customer-centric focus recently prompted us to re-evaluate our Repair Agreement terms to offer the best value for drydock availability, prices, and onetime repairs. We understand the downward pressure being faced by owners, and realise our offering must respond to that.” ASRY’s depth of experience, now in its fourth decade of operations, was a contributing factor to the successful signing of the Fleet Repair Agreement, with a total of nine Maersk Line Ltd, USA vessels repaired at the yard in 2011. Maersk Line Ltd, USA (MLL) has been repairing vessels at ASRY for the past eight years. As a consequence of the Maersk Fleet Repair Agreement, MML has placed a four-ship block-booking with ASRY for drydocking and repair work on the 60,000 dwt fully cellular containerships Maersk Carolina, Maersk Missouri, EXPERT BOAT BUILDERS, STEEL & ALUMINUM CONSTRUCTION



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SHIPREPAIR Maersk Wyoming and Maersk Georgia. Meanwhile, other US owners continue to stem vessels with ASRY in 2012, including Great Lakes Dredge & Dock, with its two dredgers Manhattan Island and Carolina, and Sealift Inc. with its 27,750 dwt general cargoship Advantage. As ASRY’s $188 million facility expansion program near completion, following the official opening the yard’s 1.38km repair quay wall in December 2011, other pieces of the expansion jigsaw fall into place. The two new cranes, built by Germany’s Ardelt, for the new repair quay wall have now been commissioned and the first of the yard’s four new ASD tugs have entered service. Meanwhile, May saw the signing of a $2.3 million contract with Dubaibased Future Technologies LLC for the construction of a new sewage treatment plant at ASRY. The plant, with a capac-

ity of 1,500 m2/day, will be the first in Bahrain to utilize the highly sustainable organic reed-bed treatment system, paving the way for a very eco-friendly indus-

trial waste management system. The new sewage treatment plant will enter service in early July. ML

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NAVY ShipBuilding


Sailing towards rough waters


his past March, the Department of Defense (DOD) submitted to Congress a FY2013 30-year (FY2013-FY2042) shipbuilding plan that includes a new goal for a fleet of about 310-316 ships. The Navy is conducting a force structure assessment, to be completed later this year, that could lead to a refinement of that 310-316-ship plan. The Navy’s FY2013 30-year shipbuilding plan, however, does not include enough ships to fully support the Navy’s proposed ship goal. The Congressional Budget Office (CBO) is currently preparing its estimate of the cost of the FY2013 30-year shipbuilding plan. In its June 2011 report on the cost of the FY2012 30-year plan, CBO estimated that the plan would cost an average of $18.0 billion per year in constant FY2011 dollars to implement. The Navy’s proposed FY2013 budget requests funding for the procurement of 10 new battle force ships (i.e., ships that count against the 310-316 ship goal). The 10 ships include one Gerald R. Ford (CVN-78) class aircraft carrier; two Virginia-class attack submarines, two

51 class Aegis destroyers, four Littoral Combat Ships (LCSs), and one Joint High Speed Vessel (JHSV). These ships are all funded through the Shipbuilding and Conversion, Navy (SCN) account. Overall, the FY2013-FY2017 five-year shipbuilding plan contains a total of 41 ships—14 ships, or about 25%, less than the 55 ships in the FY2012 five-year (FY2012-FY2016) shipbuilding plan, and 16 ships less, or about 28%, less than the 57 ships that were planned for FY2013-FY2017 under the FY2012 budget. Of the 16 ships no longer planned for FY2013-FY2017, nine were eliminated from the Navy’s shipbuilding plan and seven were deferred to years beyond FY2017. The nine ships that were eliminated were eight Joint High Speed Vessels (JHSVs) and one TAGOS ocean surveillance ship. The seven ships deferred beyond FY2017 were one Virginia-class attack submarine, two LCSs, one LSD(X) amphibious ship, and three TAO(X) oilers. The Navy’s proposed FY2013 budget also proposes the early retirement of seven Aegis cruisers and the placement into Reduced Operating Status (ROS) of two LSD-type amphibious ships.

The USNS Spearhead (JHSV-1) on sea trials. There is one Joint High Speed Vessel proposed in the Navy’s FY2013 budget request

Of course, current automatic spending cuts loom over the Defense Budget. Long term, there is another time bomb ticking under Navy plans to reach its proposed ship goal. That time bomb is the need to replace the current 14 Ohio class ballistic missile submarines (SSBNs). Enter the SSBN (X) program, or Ohio replacement program (ORP). According an April 2012 Congressional Research Service Report by the indefatigable analyst Ronald O’Rourke, the Navy’s proposed FY2013 budget requests $564.9 million for continued R&D work on the ORP, a program to design and build a new class of 12 SSBNs to replace the Navy’s current 14 Ohio class SSBNs. “Under the Navy’s FY2012 budget, the first Ohio replacement boat was scheduled to be procured in FY2019, and Ohio replacement boats were to enter service on a schedule that would maintain the Navy’s SSBN force at 12 boats. The Navy’s proposed FY2013 budget defers the procurement of the first Ohio replacement boat by two years, to FY2021. As a result of this deferment, the Navy’s SSBN force will drop to 10 JunE 2012 YEARBOOK MARINE LOG 37





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boats during most of the 2030s,” says the CRS Report (Navy Ohio Replacement (SSBN[X]) Ballistic Missile Submarine Program: Background and Issues for Congress) The Navy estimates the average procurement cost of boats 2 through 12 in the Ohio replacement program at $5.6 billion each in FY2010 dollars, and is working to reduce that figure to a target of $4.9 billion each in FY2010 dollars. “Even with this cost-reduction

effort, observers are concerned about the impact the Ohio replacement program will have on the Navy’s ability to procure other types of ships at desired rates in the 2020s and early 2030s,” says O’Rourke The CRS report notes that the Navy’s March 2012 report on its FY2013 30-year (FY2013-FY2042) shipbuilding plan acknowledges the issue, stating: “This high cost for replacing the nation’s secure, second-strike nuclear

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deterrent force will have a disproportionate impact on DoN [Department of the Navy] shipbuilding plans and associated costs throughout the mid-term planning period [FY2023-FY2032] and into the early years of the far-term planning period [FY2033-FY2042]...Obviously, spending $5-6B [billion] per year for a single ship over a 10- to 12-year period will strain the DoN’s yearly shipbuilding accounts, since the Department must continue to build other ships through this period to maintain the overall battle force inventory at about 300 ships.” A March 2012 GAO report assessing major DOD weapon acquisition programs and cited in the CRS report states: “Affordability has been an early focus of the [Ohio Replacement (OR)] program. Due to its high cost, Navy officials have stated the OR program could stress Navy shipbuilding budgets in the 2020 to 2030 time frame. Program officials stated that they are trying to reduce the average procurement unit cost from an estimated $5.6 billion to $4.9 billion (in fiscal year 2010 dollars). The program is considering procuring OR [boats] as part of a block buy with the Virginia-class [attack] submarine to reduce procurement costs by an estimated 13 percent, and is lining up its production schedule to match that program in case this option is pursued. The Navy also decided to use 16 87-inch diameter tubes per submarine, which, while fewer than the Ohio-class, is expected to reduce costs while meeting the anticipated future strategic requirement based on arms reduction trends. According to the [OR] program [office], a four-way competition is ongoing to develop prototype tubes and efficient manufacturing processes for outfitting these tubes into the hull, including the use of a “quad pack” configuration that could reduce cost and construction time...[OR] Program officials said they plan to have the three-dimensional design [for the boat] complete prior to starting construction on the lead ship to minimize rework, delays, and the potential for cost growth.” Get the picture? The Navy is trying to get the cost of the boats down to $4.9 billion. Do some back of the envelope calculations on how many DDG’s or Littoral Combat Ships $4.9 billion would buy and you get an idea of the impact the program might have on the overall annual shipbuilding buy. And, if you’re really cynical, consider that historically the Navy has been better at adding to the prices of ships rather than reducing them. Look for some long and rancorous debates in Congress. ML


photo by John Fleck











razil is now the world’s ninth largest crude oil producer, with 2.72 million barrels of oil per day, with more than 15.7 billion barrels of oil equivalents in Brazil alone. State-owned oil major Petrobras continues to push into deepwater with several new discoveries in the Pre-Salt Region in the Campos Basin and Santos Basin, as well as in the Post-Salt Region in Solimoes Basin, Tambuata and Espirito Basin. Petrobras increased its investment in oil and gas exploration and development 29 percent in the first quarter of 2012 as compared with the same period a year ago. Much of its investment—some R$ 9.38 billion (about $4.62 billion)—went towards enhancing production capacity and developing production in the PreSalt area. Of course production enhancement and development doesn’t come without 40  MARINE LOG JunE 2012 YEARBOOK

investing in equipment. One of the latest examples is a $1.7 billion deal signed by Petrobras in early May for the conversion of four Very Large Crude Carriers into Floating Production Storage and Offloading (FPSO) vessels. The hulls of the future P-74, P-75, P-76, and P-77 platforms that will operate in the Transfer of Rights Agreement areas, in the Santos Basin pre-salt. The conversion work is scheduled to start this month at the Inhaúma Shipyard, in the State of Rio de Janeiro. The facility has been leased by Petrobras and is being refurbished to suit its needs. The deal was inked with a consortium of construction companies, Norberto Odebrecht S/A, OAS Ltda and UTC Engenharia S/A. The FPSO conversion work will meet the required domestic content of 70%, creating some 4,000 direct jobs at the peak employment. The hull for the first FPSO, P-74,

is already docked at the Port of Rio de Janeiro, with the hull conversion expected to be completed in March 2014. Completion of the P-75 hull conversion is set for October 2014, and P-76 and P-77 for 2015. At the heart of the conversion work will be the structural reinforcements of the hulls; the enlargement, refurbishment and adaptation of the living quarters, which will have a capacity of 110 people; equipment and utility installation, and adaptations of the mooring system, among others. These works represent a milestone for the Brazilian naval industry: the last undertaking of this kind was the conversion of the P-48, in 2003. Once the first phase of this conversion is completed, each hull will be taken to another construction site for the installation of the production plant and the oil and gas processing modules. Agreements

OFFShORE ShipBuilding for this work is expected to be signed by April 2013. Each platform will have the capacity to produce up to 150,000 barrels of oil and compress 7 million m3 of gas per day. The FPSOs are expected to operate at the Franco and Tupi Northeast prospects, both located in the Santos Basin pre-salt. CHALLENGES OF BUILDING IN BRAZIL The strong government policy for local content has posed challenges for the offshore industry and local shipbuilding industry and infrastructure. A recent example is an announcement by Transpetro, a unit of Petrobras, that it has suspended execution of its contracts

WHAT’S PRE-SALT? What’s the Pre-Salt Region? The birth of the pre-salt began more than 150 million years ago when the ancient continent Gondwana, separated into the American and African continents. Initially, a large lake formed between the two continents, where rocks were deposited over centuries and gave rise to the pre-salt oil. As the rivers of the separating continents ran into this huge lake, organic matter was deposited in the lake bed. As the continents moved away, organic matter that had accumulated in this new space from the rivers became covered by seawater, which drained into the lake. It is thought that the layer of salt of up to 2,000 meters thick was formed on top of the organic matter, which was later transformed into oil and natural gas. In the context of Petrobras’ exploration, the set of rocks with the potential to generate and accumulate oil called pre-salt is located off the Brazilian coast between the states of Santa Catarina and Espírito Santo. The salt layer is unevenly distributed and reaches up to 2,000 meters thick in the deepwater Santos Basin. Data obtained from exploration wells together with extensive seismic mapping indicate that the pre-salt reservoir rocks extend over an area of about 800 km long by 200 km wide along the coast.

for 16 of the 22 tankers it has on order with shipbuilder Estaleiro Atlântico Sul (EAS). The contracts will remain suspended until August 30, 2012, by which time EAS will have to meet conditions that include: • Securing a technical partner with proven experience in building ships; • Instituting an action plan and a schedule for reliable construction of the ships; • Acquiring an engineering design for the vessels that meets contract specifications. If, at the end of this period, EAS does not meet these requirements, the contracts for the vessels may be terminated, with the possibility of application of the penalties under contracts. Transpetro says that during the period of suspension, no resources will be contributed to the construction of the ships. Transpetro says it will not be liable for costs incurred by the shipyard as a result of the suspension. Ironically, within days of the announcement that the contracts for additional tankers from EAS would be suspended, Transpetro’s first tanker built in Northeastern Brazil for its Transpetro Fleet Modernization and Expansion Program (Promef) began operating on May 25. The tanker João Cândido, delivered by the EAS, will transport oil produced in the Campos Basin to the Almirante Barroso Terminal (Tebar), in São Sebastião (state of São Paulo). Measuring 274 meters in length with a capacity of 1 million barrels of oil— almost half of the daily domestic production—João Cândido reached a domestic content level of 70%, higher than the

65% stipulated for the first phase of Promef. It is the first ship built by the new shipbuilding hub in Pernambuco, which, in addition to EAS, will have the STX-Promar shipyard, also made possible by orders placed under Promef. João Cândido is the second Promef ship to come into operation. The first, Celso Furtado, was delivered to Transpetro in November 2011 by the Mauá Shipyard, in Rio de Janeiro. The next ship, scheduled for delivery this month, is the Sergio Buarque de Holanda product tanker, also built by Mauá, which completed its sea trial successfully on May 16. In addition to Sergio Buarque de Holanda, product tankers Rômulo Almeida and José Alencar are also in their final stages of completion at the Mauá Shipyard. Promef has ordered 49 vessels at an investment of R$10.8 billion ($5.32 billion). The Promef program kickstarted a dormant Brazilian shipbuilding industry. Brazilian shipyards, which had less than 2,000 workers in 2000, now have more than 60,000 workers. “The sector is moving out of inertia, but the experience of these early years has shown that a productivity shock is needed in order for us to be able to reach the expected levels of modernity and competitiveness quicker. Only then will the new Brazilian shipbuilding industry be sustainable,” says Transpetro CEO Sergio Machado. OIL PRODUCTION STRONG Oil production remains strong in Brazil. In March, Petrobras had a combined oil and natural gas output, both in Bracontinued on p. 45 JunE 2012 YEARBOOK MARINE LOG 41

OFFShORE ShipBuilding




MODEL FOR  ThE MARKET? Harvey Gulf’s new dual fuel OSVs are innovative inside and out


hat do trash trucks, buses and a 50-year-old, coal-fired, Great Lakes’ car ferry have in common? Natural gas or more specifically an interest in using natural gas, whether it is Compressed Natural Gas (CNG) or Liquefied Natural Gas (LNG) as a fuel. With diesel prices hovering over $4 per gallon, large trash haulers such as Waste Management Inc. and Republic Services are considering adding clean, natural gas-burning trucks to their fleets. About 4% of Republic’s fleet of 14,700 trucks burn natural gas. The specially outfitted trucks are about 5% more expensive than diesel-burning haulers, but waste managers reap substantial benefits in fuel savings. Meanwhile, Lake Michigan Carferry has been awarded a $75,000 grant by the Wisconsin State Energy Office to begin the engineering work for the conversion of the S.S. Badger to burn LNG fuel. In addition, the Great Lakes Maritime Research Institute (GLMRI) chose the S.S. Badger as a pilot vessel for exploring the feasibility of converting engines to run on natural gas. The Maritime Administration is funding the project through an $800,000 grant. The program will be exploring fuel consumption, routes, shore fueling stations and engineering. 42  MARINE LOG JunE 2012 YEARBOOK

Others such as the Staten Island Ferry, New York City Department of Transportation, and Washington State Ferries have also proposed converting existing ferries to burn LNG (see “Full Plate,” p.54 in this issue). The push for LNG as marine fuel has come as emissions regulations tighten both on shore and off and diesel prices escalate. For operators, LNG seems to solve both the fuel cost and the emissions equations simultaneously. On the marine side, the technology for burning LNG as fuel is well proven. LNG carriers have been burning boil-off gas from their cargo for decades and smaller gas-fuelled vessels have been operating in Norway and the Baltic for more than a decade. Still, one of the biggest hurdles for the expansion of LNG as a fuel is infrastructure. Proponents of its use as a clean alternative fuel to diesel were disappointed at the defeat in the Senate of a bi-partisan bill that would have supported a tax credit for natural gas vehicles. The legislation, called the New Alternative Transportation to Give Americans Solutions (NAT GAS) Act of 2011, would have boosted domestic production of vehicles that run on natural gas by extending tax credits for natural gas vehicles and building refueling infra-

Model of STX Marine’s SV310DF showing the LNG tank at the centerline

structure, and be fully paid for by a temporary user fee on natural gas used as a vehicle fuel. One of the most vocal supporters for the bill was billionaire T. Boone Pickens, who owns an interest in Clean Energy Fuels Corporation, which installs natural gas filling stations. Overall, an estimated 15% of trash trucks and buses in the U.S. operate on natural gas. The passage of the bill would have further promoted the addition of natural gas-burning vehicles nationwide. HARVEY BETS ON GAS In the U.S. offshore industry, the ground-breaking story is the construction of four STX Marine Inc.-designed dual fuel Offshore Support Vessels (OSVs) at Trinity Offshore for Harvey Gulf International Marine, New Orleans, LA. Each of the vessels is contracted at about $55 million apiece. Classed by ABS, each of the OSVs will be just slightly over 92 meters long, with a beam of 19.5 meters, a cargo deck area of 17.1 meters wide by 55.6 meters long. Each of the SV310DF vessels will be




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OFFShORE designed to carry 5,520 tons with a transit speed of 13 knots. Wartsila will supply three six-cylinder Wartsila 34DF dual-fuel engines for each of the vessels. Compliant with IMO and EPA Tier II/Tier III, the four-stroke engines, which will each produce 2,610 kW, are turbo-charged and intercooled and provide fuel flexibility. Switching between diesel mode and LNG can be done smoothly without any loss of power, says Wartsila. Besides the engines, Wartsila is also supplying a complete propulsion solution with steerable main thrusters, LNGPac bunkering and storage solution and an electrical and automation system. Wartsila says that running in the gas mode will lessen the environmental impact of the vessels. Compared with operation on Heavy Fuel Oil (HFO), emissions of NOx will be reduced by some 85%, with substantially all SOx emissions eliminated and CO2 greatly reduced. Burning LNG will allow Harvey Gulf International Marine to comply with the new stricter emissions standards of the North American Emissions Control

Area when it comes on line in August. HGIM won’t have to burn more expensive Ultra-Low Sulfur Diesel nor install Selective Catalytic Reduction (SCR) equipment or exhaust gas scrubbers. As for bunkering, Wärtsilä and Shell Oil Company signed a Joint Co-operation Agreement last summer to supply LNG fuel. The deal focuses initially on supplies from the U.S. Gulf Coast, with subsequent expansion to cover a broader geographical range. SUPERIOR INTERIOR However, the Harvey Gulf OSVs are not only pushing the technological envelope in their engine rooms, but also their interiors. “I think that once these vessels are operational they will put pressure on other operators to increase the quality of the finish details and crew comforts,” says Mike Carroll, STX US Marine’s Vice President Operations. The Harvey Gulf boats will “raise the bar not only in technology advancement and reduction in emissions profile, but also in the way crew are housed and the level of finish details in the crew spaces,” he says. According to Carroll, Harvey Gulf

International Marine’s SV310DF vessels will each accommodate a crew of 12 in single and double cabins. Onboard amenities will include lounges, a cinema, internet stations and a gym. The bridge will use the latest consoles from Wartsila, with a Kongsberg DP system, with ergonomic, modern finishes. “The accommodations are more spacious than traditional offshore support vessels in the U.S. Gulf of Mexico,” says Carroll. “The finished details of the vessels will include state of the art flooring that mimics hardwood, as well as the use of glass walls and mood lighting in common areas.” Carroll points out that although the vessels are not designed for ABS HAB (WB), they will have a very low noise profile. The LNGPac includes the LNG storage tank, a bunkering system, evaporators and pressure control equipment, a glycol-water skid for heating the evaporators, an enclosed gas valve unit and a control and automation system. Each vessel will be fitted with a 290 m3 tank, enough fuel for about two weeks’ operation. ML

DRIVING TOWARDS DEEPWATER Ultra deepwater rig utilization was close to 100% utilization in 2011 and is expected to remain that way for this year, according to international ship broker RS Platou. This is not surprising considering that 50 to 60% of all offshore oil and gas was discovered in water depths of 3,000 ft or more during the period of 2005 to 2010, according to the Platou Report 2012. Back in 2000, nine countries reported oil discoveries in deepwater. Today, there are at least 18, with new entrants including Tanzania, Israel, Ghana, Greenland and Philippines. Utilization for newer jackup rigs (those built after 2000) was 94% this year as compared with 89% for jackups built before 2000. “We observed a definite change in contracting behavior of Super Majors with regards to older standard jackups,” says RS Platou. “As the jackup market

tightened, Super Majors elected not to redeploy older units to a large extent. Although Super Majors exposure to the jackup

fleet grew by 20 units in 2011. There were orders placed for 35 drillships and six semi-submersibles at yards in 2011.

Source: Transocean Ltd/Howard Weil 40th Annual Energy Conference

market is limited, it does indicate a burgeoning trend of older jackups being phased out by oil companies.” Renewal of the jackup fleet gained momentum in 2011, with 45 new orders placed. As for the floater market, the


Among the largest offshore drillers, Ensco has invested more than $1 billion in its jackup fleet and has committed over $700 million to build three ultra-premium ENSCO 120 series jackups. Its jackup rig utilization was at 90% at the end of last year. It

has one drillship, one semi and three jackups under construction. Ensco is the second largest offshore driller, with seven ultra deepwater drillships, 13 DP semi-submersibles, seven moored semi-submersibles and 49 premium jackup rigs. Noble Drilling Corporation has committed about $10 billion in capital since 2007 on additions to its fleet. It will be adding five drillships and six jackups in 2013, 2014 and 2015. It will be supplying the drillship Noble Discoverer for Shell’s operation in Alaska. It will execute a two-rig campaign in Alaska in 2012. The exploration success will stimulate additional opportunities in the Arctic. Meanwhile the world’s largest drilling company, Transocean Ltd., which has 138 vessels in its fleet, as depicted in the accompanying graph, has a contract revenue backlog of $21.4 billion that stretches into 2021.

BRAZIL: WAXING OPTIMISM continued from p. 41 zil and abroad, that reached an average 2,599,969 barrels of oil equivalent per day (boed). Output in Brazil averaged 2,346,477 boed and internationally stood at 253,492 boed. Of the total Brazilian output, oil amounted to 1,993,222 barrels/day and natural gas 56.163 million m3/day. In international fields, average oil production reached 151,077 barrels/day and natural gas 17.4 million m3/day. Maintenance shutdowns on platforms P-51 in Marlim Sul field, P-57 in Jubarte, and FPSO Brazil in Roncador, as well as the shutdown of the Campos Basin Frade field operated by Chevron, cut Brazilian output by 105,000 barrels/ day, amounting to 5% of last month’s figure (2,455,636 boed). The extended well test (EWT) has begun in the Campos Basin post-salt layer in Olivia field, between the Pampo and Espadarte fields. The reserves in this area were discovered after drilling

BW Pioneer operates in the Cascade and Chinook fields in the U.S. Gulf. Petrobras owns 100% of Cascade and 66.7% of Chinook, with TOTAL owning the remaining 33.3%

well 3-RJS-670 in May 2010, and recoverable volumes are estimated at 246 million barrels.

FIRST FPSO IN U.S. GULF This past year, Petrobras became the first company to deploy a floating pro-

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duction, storage and offloading (FPSO) platform in the U.S. Gulf of Mexico. Production startup in the Cascade field on FPSO BW Pioneer, moored some 250 km off the coast of Louisiana in the U.S. Gulf of Mexico, at a world recordbreaking water depth of 2,500 meters. The BW Pioneer, which is under contract until 2017, has an oil processing capacity of 80,000 barrels oil per day, gas export of 16 mmscfd and a storage capacity of 600,000 bbl. FAST SUPPLY BOAT FOR SIEM CONSUB Brazil’s Inace Shipyard recently delivered the Siem Carajas, a 50m fast supply vessel (FSV), to Siem Consub. Designed by Guido Perla & Associates, Seattle, WA, the 50-meter by 10-meter Siem Carajas is an all-aluminum vessel, with a large forward cargo shelter. There is also a large 28.5 by 7.8meter open after deck. Liquid capacities include: ships fuel 22 m3, cargo fuel oil 64.6 m3, ship’s potable water 17.4 m3, potable water cargo 65 m3. The vessel’s deck cargo capacity is 250 metric tons. The GPA FSV 150 design vessel has a maximum design speed, light boat, of 25 knots with a 21-knot service speed when 175 mt dwt. The Brazilian-flag FSV has a maximum deadweight of 350 mt. Propulsion for the Siem Carajas is supplied by four Cummins KTA50-M2, rated at 1,800 hp each at 1,900 rev/min, that drive 1.2-meter propellers through Twin Disc gears. A pair of Cumminspowered 99 kW generators meets the vessel’s electrical needs. The FSV also has two 150 hp tunnel thrusters. Established in the 1960s, Inace Shipyard, located in Fortaleza, Ceara State, Brazil, has a a diverse orderbook and is currently building tugs, crewboat, fast supply boats, yachts, patrol boats and oceanographic vessels. ML



B y D r . S a N D r a W h i t e h o u S e , P h . D.

how industry can benefit from Ocean policy

Edin Ramic/


merica relies on our marine transportation system—the network of navigable waterways, vessels, operators and ports that move people and products. That system, in turn, depends on many supporting industries, such as marine engineering, shipbuilding, engine manufacturing and repair, salvage, dredging and marine security. Maritime industries are essential to our nation’s economy. In 2010 alone, 77 percent of all U.S. imports arrived via our commercial ports, supporting more than 13 million American jobs. Communication and coordination are important assets to successful maritime businesses, and it’s no different for the federal agencies that oversee the management of the ocean. More than 20 different agencies address ocean activities. For decades, each ocean-use sector has been managed in its own administrative silo. The resulting regulatory thicket has created confusion for users and inefficiencies for permit applicants. The National Ocean Policy aims to address those problems by providing a way to coordinate the ocean-related programs of federal agencies—services like oceanic data collection, mapping and weather monitoring. The policy does not create any new regulations; rather, it seeks to reduce redundancies. “The commercial maritime industry applauds the effort to ensure that the use of the nation’s waters is well-coordinated and all interested persons are given the opportunity to participate,” says Joseph J. Cox, President & CEO of the Chamber of Shipping of America. “Our ships, and other users of the waterways, have experienced the benefits of traffic separation schemes and shipping safety fairways. We look forward to a continuing dialogue wherein the interests of the commercial transport industry, energy users, recreational users and others are fully discussed and appropriate solutions to issues are agreed.” Representatives of emerging oceandependent businesses are particularly aware of the need to fit in with existing uses. Wind farms are competing to use the same waters as shipping, commercial fishing and recreation, among others. In addition, many of these activities take place in environmentally sensitive areas JunE 2012 YEARBOOK MariNe log 47





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ALTERNATiVES ShipBuilding that provide valuable wildlife habitat. Many businesses anticipate these emerging uses will provide economic opportunities for established maritime industries. At Offshore Alternatives 2012, a conference produced by Marine Log, participants heard from wind and hydrokinetic developers about the prospects for future business opportunities, such as providing maintenance and support vessels to offshore projects. The National Ocean Policy is designed to manage emerging opportunities while stimulating job creation and economic growth—specifically guiding the federal agencies to support sustainable, safe, secure and productive uses and to respect and preserve maritime heritage. “Bringing all the government agencies together on ocean policy is long overdue,” said Jim Lanard, president of the Offshore Wind Development Coalition. “Everyone wants to get it right.” One aspect of the policy is smart ocean-use planning. Many groups have deemed it “a common sense approach” to ocean and coastal management. It encourages agencies to work together

BMt to provide WSV designs Industrial company BLRT Marketex has signed an agreement with BMT Nigel Gee (BMT), Southampton, UK, that will see the design consultancy firm provide the vessel designs for the BLRT Gruup AS subsidiary. Following the agreement, BMT got straight to work on four 24m highly flexible and high capacity Windfarm Support Vessels (WSV) that BLRT will be buidling for Englandbased Sure Wind Marine. The new DNV classed vessels are currently in the design phase. Construction is expected to begin later this year. A provider of reliable and flexible offshore vessels for Europe’s renewables industry, Sure Wind Marine, also has four 20m WSV’s under build contract with BLRT Marketex.

with states and tribes and with input from ocean users to map out which ocean areas are best suited for certain activities. If done right, supporters say, it provides a road map for development that gives industry more certainty and clarity about the permitting process, thus saving time and money. “Industries can co-exist in the same waters, but only if the sufficient coordination is in place. The National Ocean Policy provides that service,” William Moore, CEO of Deepwater Wind, said in an op-ed supporting the policy.

This planning involves compiling information about the environment and human uses in an area in order to create an ocean atlas, allowing everyone to see what’s going on and identify areas for emerging uses. The process also includes inviting stakeholders to ocean town hall meetings and other open forums that give everyone a say in decisions. Some states are already participating in planning similar to what’s outlined in the National Ocean Policy. One recent example is Rhode Island, where a proposed wind farm needed a site that fit smoothly with existing ocean uses while preserving ocean health. State and federal agencies worked together with input from stakeholders and the scientific community to create the Ocean Special Area Management Plan (OSAMP). Throughout the process, a number of actively involved maritime sector representatives—including marine pilots, port managers and ferry operators—brought vital information to the table and made their priorities known. As a result of this process, planners identified areas imporcontinued on p. 50

aBS concludes floating wind turbine feasibility study Houston-based classification society ABS has completed a study on the technical feasibility of floating wind turbines for the Bureau of Safety and Environmental Enforcement (BSEE). The goal of the study was to determine how floating structures and moorings would be affected by the interaction between the wind turbine, rotor, control system, floating platform and mooring/ cable system. Additionally, the study would reveal how different loading events could impact these systems. The project, awarded to ABS in December 2010 through BSEE’s Technology Assessment and Research (TA&R) Program, included a study on the technical viability of existing floating wind tur-

bines. The results of the study would later serve as the basis for identifying the critical technical challenges to deploying floating wind turbines on the U.S Outer Continental Shelf (OCS). “While hydrocarbons will be the dominant source of energy in the foreseeable future, there is a need to expand the world’s energy mix,” says Kenneth Richardson, ABS Executive Vice President, Energy Project Development. “ABS is pleased to be working with the BSEE to help determine the viability of offshore wind energy installations for the U.S.” Extensive case studies were conducted to evaluate the characteristic load conditions and global responses of three representative design concepts, including

a spar-type, a TLP-type and a column-stabilized (semisubmersible-type) floating support structure and their associated stationkeeping systems. Additionally, operational and extreme environmental conditions of the East, West and Gulf of Mexico coastal regions on the US OCS were applied in all of the case studies. After the research findings were presented in March, recommendations were made by a group of representatives from national registries, industry, government and academia, calling for further research on the simulation software, design and analysis methods, design standard development and hurricane wind modeling for floating offshore wind turbines. ML

AuguST 2002 MariNe log 19 JunE 2012 YEARBOOK MariNe log 49


ALTERNATiVES continued from p. 49 tant for navigation and infrastructure, such as dredged material disposal sites, excluding them from areas where offshore development (large-scale, smallscale or any portion of a proposed project) could be sited. “As Rhode Island’s public port, the Port of Davisville needs to serve a wide


range of maritime interests including international offshore sailing races, seafood cold storage, ro-ro operations for car imports and staging for offshore wind development,” says Evan H. Matthews, Director, Port of Davisville, Quonset Development Corporation. “We were deeply engaged in the OSAMP process. We felt we had a seat at the table and real input into developing the plan. I




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TA N K E R S believe we assisted maritime businesses and port users by providing greater certainty of process for in planning for future uses of our marine resources. Our experience was that that ports can benefit from smart ocean planning.” But in May, the U.S. House of Representatives voted mostly along party lines to block the National Ocean Policy by passing an amendment that says that no funds can go toward implementation of the policy. Some lawmakers expressed concern about the effect it could have on the way private sector industries currently do business. However, industry groups like Deepwater Wind who have actually participated in these planning efforts have been vocal in their support of the National Ocean Policy. They, along with others, question whether this ban, if is carried through the legislative process, may also put at risk existing, successful and widely supported programs because they are referenced in the policy and the draft implementation plan. For example, this could affect the ability of agencies to compile and share climate, water, wind, current and weather data as well as use computer models to analyze seasonal and extreme weather conditions. These are essential services to many existing users as well as those involved in the development of offshore renewable energy. The National Ocean Policy isn’t new. A very similar policy and a definition of the need for comprehensive, coordinated ocean planning was articulated by the U.S. Commission on Ocean Policy in 2004 under President George W. Bush. Like these past commissions, many people in maritime industries, new and existing alike, see it as a way to increase coordination and reduce conflict among ocean users and the agencies that oversee their work—thus, supporting the maritime sector and creating jobs. ML

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aBout the author Dr. Sandra Whitehouse, Ph.D. is a marine environmental policy advisor who has worked on initiatives in rhode island and on the federal level. Dr. Whitehouse is a former chair of rhode island’s coastal resources Management council. She is currently the team lead for ocean conservancy’s coastal and Marine Spatial Planning program.

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BARGES The workhorses  of the towing industry

Bouchard’s double-hull 80,000 bbl B. No. 284 in file photo


arges are the workhorses of the towing industry. They perform myriads of chores including cargo transport, pipelay, heavy-lift, waterdesalinization, power generation and offshore floating production and storage. Barges haul millions of tons of cargoes or otherwise work offshore and through the river systems and harbors of every continent in the world. Although there are no accurate records, I would not be surprised if there are at least 150,000 barges from the coast of Albania to Lake Kariba in Zimbabwe. Non-propelled barges range from under 10 ft to almost 1,000 ft in length. While usually built out of steel, Marcon has over the years listed and sold barges constructed of concrete, aluminum and, even, wood. At the top of the range of cargo barges are the 30,000dwt+ ocean tank barges, 40,000dwt+ Great Lakes bulk barges and the 25,000dwt+ submersible and launch barges for ocean transport of equipment, such as drill rigs, drydocks, floating storage & production units and project cargoes. The world’s largest launch/cargo barge designed for worldwide operation is Heerema’s 139,694 dwt, 852 ft x 207 ft x 52  MARINE LOG JunE 2012 YEARBOOK

34 ft H-851. Although H-851 may be the largest, she is not necessarily the longest. That distinction probably belongs to the 1973 built, self-unloading, 51,000 dwt, Great Lakes bulker Presque Isle which was built in two sections by different shipyards and is 974.5 ft x 104.6 ft x 45.7 ft depth. Combined with her 141 ft companion tug in the notch, the overall length is about 1,000 ft. Presque Isle was recently joined on the Lakes by the new 33,892 ltdw, 740 ft x 78 ft selfunloading bulk barge Lakes Contender and 10,000 hp tug Ken Boothe, Sr. christened in April 2012. Their overall combined length is about 825 ft. Runner-ups in length are Trailer Bridge’s 750 ft x 104 ft triple deck ro/ ro barges Jax-San Juan Bridge and San Juan-Jax Bridge operating in the Caribbean. Both were originally built in 1984 as 487 ft barges for the SeattleAlaska trade, sold to Trailer Bridge and stretched in 1996 when a 250 ft midbody section was added to each barge. They are followed by Great Lakes Marine Leasing’s 2000 built, 34,000 dwt, 740 ft x 78 ft Great Lakes bulk barge Great Lakes Trader with her 135,’ 11,000 bhp tug Joyce van Enkavort; and Crowley Maritime’s four 730 ft x 99.5 ft x

20 ft, triple deck ro/ro barges TMT Fortaleza, TMT Jacksonville, San Juan and Miami, all built as 400 ft deck barges and lengthened in the mid-80s. In the United States there are 24,179 freight barges, including deck and hopper, with an average age of 19 years and 4,512 tank barges (average age 22 years) documented with the U.S. Coast Guard, up from 22,895 freight (25 years age) and 4,065 tank barges (30 years) five years ago. These do not include thousands of undocumented barges. According to the U.S. Army Corps of Engineers there were 31,412 non-self-propelled barges with a cargo capacity of 59,255,348 short tons in the United States as of December 31, 2010. This excludes dredges, crane and other barges used in construction work. The oldest documented freight barge on record is a 185 ft x 48 ft barge built in 1902 out of Holland, MI, which is not surprising due to the cold, fresh water in the Lakes. The two oldest “tank barges” on record are a 170 ft x 29 ft barge built 1896 in New York and a 307 ft x 52 ft x 17 ft barge built 1898 in New Orleans. I doubt that they are still in tank service. There are likely older units still in service worldwide where records and build dates have been lost in the mists of time.

TUGS&BARGES Most barges are purpose-built for specific trade, although ships were periodically converted. During the late 1890’s and early 1900s many sailing ships were down-rigged and towed with coal, lumber or similar cargoes. After World War I and II surplus military ships proved to be popular conversion candidates with many 328 ft x 50 ft LSTs converted to haul bulk cargoes, containers and trailers on ocean routes, trading 40-50 years after their keels were laid. With double bottoms and wing-tanks, they were relatively inexpensive sources for hulls, but they also had their limitations. I towed a grain barge in the Hawaiian Islands that was like a water skier crossing our wake, almost passing the tug on one beam and then the other unless it was trimmed with 2-3 ft deeper draft aft, which was seldom the case. There is a 328 ft x 50 ft former LST barge built by Bethlehem Ship in 1943 converted to a self-discharge cement barge with a Sauerman drag unloading system still in service in Puget Sound today. Hundreds of cargo ships were also built and sold surplus at the end of World War II, with many sold

foreign, scrapped or converted. Through the 80s and 90s former T-2 tankers or C1, C2, C3, C4, Liberty or Victory ships regularly appeared on the market. One 324 ft x 68 ft x 25 ft, ABS ocean barge conversion ended up in the Pacific Northwest after a long, slow tow from the Gulf bringing a load of pipe bound for Alaska and only getting as far as Tacoma, WA. We were happy to see this barge eventually sold. Even though she had a lot of life left, both the Owner and Marcon spent more time explaining why not to buy her than actually marketing her. She would have been a good AT/B conversion with a deep notch, but at that time towing on the wire was the norm. Fuel consumption, even at the prices in the 80s, would have bankrupted a tug operator. There are more successful ship-toAT/B barge conversions today operating in the Great Lakes than anywhere else. One, which Marcon sold in 2005, was the Canadian, 594 ft x 72 ft self-unloading Sarah Spencer, converted in 1989 from the bulk carrier Captain E. V. Smith. She is fitted with a deep notch aft to mate with her 8,000 hp articulated tug and

can discharge her 22,105 tons of cargo at about 4,000 tons per hour. Purpose-built barges are also under construction worldwide with Southeast Asia and China delivering more 5,000dwt+ ocean classed deck barges than anywhere in the world. Marcon International currently tracks 3,557 barges worldwide with 616 officially for sale and 396 for charter, although others may be developed on a private and confidential basis. Historical data on another 7,678 barges is maintained in our archives. A day does not go by where Marcon does not receive at least one inquiry for a barge of some type. Even in today’s challenging economic conditions, good barges still hold their value and, depending on a client’s specific requirements, may prove to be difficult to locate. Since we opened our doors in 1981, Marcon International has sold 511 deck, tank, hopper, crane, accommodations, hover, pipelay and other miscellaneous barges worldwide. We expect to close sales shortly on four additional barges ranging from 180 ft to 400 ft in length. ML


Photograph by Stuart isett/Vigor




A S S O C I AT E E d I T O R


Full plate Shipyards across Washington State band together to build WSF’s 144 car ferry While the news of newbuild ferry contracts may have been relatively quiet for the first half of 2012, yards in the Pacific Northwest have managed to keep the construction din ferociously steady, thanks-in-part to the need for new, greener vessels and the availability of federal funding. The largest ferry operator in the United States, Washington State Ferries, is in the midst of replacing its aging fleet with brand new vessels that will increase passenger comfort, improve safety and minimize both operating costs and environmental impact. Its fleet currently consists of 23 ferries, of which nine vessels operating are between the ages of 40 and 65 years old. After the successful delivery of the Kennewick, the final vessel in its brand new 64-car series, late last year, WSF was able to move forward with its plans to build its long-anticipated 144-car ferry class. The 144-car ferry series, based on the 130-car Issaquah class, would be used to replace the Evergreen State Class ferries, the oldest vessels in the state’s fleet. Recently, Washington-based Vigor Industries’ subsidiary US Fab Shipyard inked a deal with WSF that would see the yard build the second 144-car ferry for the state operator. Construction on 54 MARINE LOG JunE 2012 YEARBOOK

the second ferry is set to begin later this year. The first vessel in the series is already in production. The deal regarding the second ferry’s construction is hardly a surprise, considering US Fab is under contract to design and build up to four 144-car ferries for WSF, but it remains good news for the region, with the vessels construction expected to generate up to 500 family wage jobs across the state of Washington. Similar to the process used for building the 64-car class ferry series, US Fab— the primary shipbuilder on the project—will assemble a team of subcontractors from the state to make the 144-car ferry a reality. The Build-in-Washington approach supports both job creation and job growth. The vessel will be built in parts with US Fab building the ferry’s hull at its Harbor Island shipyard in Seattle. Freeland, WA-based Nichols Brothers will be tasked with building the structure from the car deck level up. Jesse Engineering in Tacoma, WA, will construct the driveon, drive-off ends of the vessel. And, ultimately, it will all come together when the modules are put together in Seattle by US Fab. Vigor Industries’ subsidiary, Vigor Marine, Everett, WA, will provide the final outfitting. Designed to carry 1,500 passengers,

Above: The first metal plates for the 144 car ferry’s hull are lowered at Vigor’s Harbor Island shipyard in Seattle. The ferry will be built in sections by a consortium of shipyards in Washington State with US Fab serving as the primary shipbuilder

the 144-car ferries will measure 362 ft x 83 ft x 24.6 ft. The first 144-carry ferry is expected to go into service in 2014, followed by the second 144-car ferry in early 2015. ALASKA CLASS FERRY Just as Vigor announced the second 144-car ferry deal with WSF, its newest subsidiary, Alaska Ship and Drydock LLC (ASD) signed on to partner with the state of Alaska and Seattle-based Elliot Bay Design Group to design the new Alaska Class Ferry for the Alaska Marine Highway System (AMHS). The new ferry class is expected to replace members of AMHS’ aging 11-vessel fleet. Four of the vessels in the fleet were built before 1964. While the partnership doesn’t guarantee ASD the ferry’s build contract it does enable it to “to make a guaranteed maximum price proposal for the construction contract as the design nears completion,” explains Michael Neussl,

FERRiES ShipBuilding Alaska Department of Transportation & Public Facilities Deputy Commissioner for Marine Operations. GOVERNMENT FUNDED NEWBUILDS Presently, the U.S. Department of Transportation’s Federal Highway Administration (FHWA) is considering what states will share in the estimated $22.2 million made available in its FY2012 Ferry Boat Discretionary (FBD) grant program. Since there are no earmark projects for this year’s grants, the full $22.2 million in funds is available for distribution. The funds can cover up to 80% costs of projects. In the meantime, recipients of the FY2011 FBD grants are putting their awards to good use. Last year, the DoT FHWA awarded a total of $43,923,790 to 39 separate projects. As stated in our October 2011 feature “Funding ferries for the future,” of those 39 projects seven would be for the acquisition and construction of a new ferry. One particular project requiring funding was the much-needed replacement for the Martha S., the Keller ferry owned and operated by the Washington State Department of Transportation’s Eastern Region, Maintenance and Operations division. The vessel, in operation for 63 years, will be retired from her route on the Columbia River once the new ferry is delivered May 2013. Seattle-based Foss Maritime Company won the contract to build the new Keller ferry replacement, after the small

The 65 ft ferry for the Chemehuevi Transit Authority takes shape at Kvichak Marine Industries’ Seattle yard. The ferry will carry 150 passengers across Lake Havasu

yard beat out U.S. Fab and Oregon Iron Works with its $9,557,178 million bid. Foss will partner up with Washington State and the Confederated Tribes of the Colville Reservation to build the ferry, with pre-approved members of the Confederated Tribes taking part in the 116 ft vessel’s final assembly work. The ferry’s construction will occur at Foss’ Rainer, OR, yard, where, according to Foss, “the vessel’s aluminum hull and systems will be constructed and prefabricated, then sectioned into three modules.” Once the modules are completed the pieces will be shipped to the final assembly site, located at Crescent Bay on Lake Roosevelt, where assembly and testing will take place this fall.

But Foss isn’t the only yard in Seattle benefiting from the FBD Grant program. Construction is well underway on a 150-passenger, all-aluminum ferry for the Chemehuevi Transit Authority at Kvichak Marine Industries. As recipients of the FY2011 FBD award, the Chemehuevi Transit Authority received $2.9 million to fund the project. The 65 ft catamaran will be powered by twin MTU series 60 diesel engines, rated for 600 HP at 2,100 rev/min and fitted to ZF 550 marine gears. The vessel will operate, at a service speed of 20+ knots, on Lake Havasu between Lake Havasu City in Arizona and Havasu Landing in California. Delivery is expected to take place September 2012. ML

WSF announces RFP for LNG conversion of Issaquah class When news broke that the New York City Department of Transportation’s Staten Island Ferry would be converting one of its Austen class ferries over to LNG—the conversion is funded by a $2,340,000 award from the FY2011 FWHA FBD program—all eyes immediately turned to WSF to see whether the nation’s largest ferry operator would do the same. In 2011 Seattle-based The Glosten Associates completed a feasibility study for WSF that sited both the environmental and economic benefits of using LNG as a fuel. The study, at the time, focused on converting WSF’s 144car ferry design.

Today, WSF is considering converting its Issaquah class of ferries over to LNG propulsion. The switch to natural gas, according to WSF, would reduce CO2 by 20%, NOx by 90% and practically eliminate particulate matters and SOx emissions. Additionally, the fuel costs savings would be enormous for the ferry operator, with fuel costs savings anywhere between 40 to 50 percent when going from diesel to LNG. Last month the ferry operator announced a Request for Proposal (RFP) from consultants interested in assisting with the assessment of the possible conversion of its Issaquah class vessels to (solely)

L N G p ro pulsion. According to the WSDOT, WSF will “require a thorough s a f e t y and security assessment, the development of a risk management plan, and writing of an LNG operations manual that can be incorporated into WSF’s existing Safety Management System.” If WSF decides to proceed with the conversion to LNG, the six

Issaquah ferries, which carry 1,200 p a s s e nge r s, 124 vehicles and measure 328 ft x 78 ft x 16 ft , will each have to undergo a major retrofit. The retrofit would include the placing of LNG tanks on the top decks of the vessels between the exhaust stacks and the installation of associated cryogenic piping. RFP submissions must be in by July 11, 2012. ML



DUBAI, U.A.E. • OCTOBER 21-24, 2012 50% Off Delegate Fees – Sponsored by RTA* CONFERENCE HIGHLIGHTS

Conference Theme – The Dubai Debate: Global Ferry Development Legislative and Policy Updates Interferry’s First Conference in the Middle East Expanded Middle East Exhibition with 20 Additional Exhibit Stands Conference Venue – Grand Hyatt Dubai


ABB, Finland • Dr. Khalid Mohammed Al Zahed – President of Interferry, U.A.E. • Professor Alfred Baird – Edinburgh Napier University, UK • Steve Balleby – Revenue Technology Services, USA • Günther Becker – Chairman of Interferry, Germany • Klas Brogren – ShipPax Information, Sweden • Andreas Chrysostomou – IMO, Cyprus • Christos Chryssakis – DNV, Norway • Mike Corrigan – BC Ferries, Canada • Cruise Lines International Association, USA • Jeff Ellison – SeaLink Travel Group, Australia • Emirates SkyCargo, U.A.E. • Arnauld Filancia – Wärtsilä Corporation, Singapore • John Garner – P&O Ferries, UK • International Finance Corporation, USA • Vince Jenkins – Lloyd’s Register, UK • Dr. Florian Kluwe – Flensburger, Germany • Salvatore Lauro – Alialuro, Italy • Tim Mooney – Fire Island Ferries, USA • Jan-Eric Nilsson – Rederi AB Gotland, Sweden • Masanori Onzuka – Mitsubishi Heavy Industries, Japan • Alex Panagopulos – Arista Shipping, Greece • Johan Roos – Interferry, Belgium • Len Roueche – Interferry, Canada • Anders Rundberg – Carus, Finland • Vassilis Spitadakis – FORTHcrs, Greece • John Steen-Mikkelsen – Danske Faerger, Denmark • University of Southern California, USA • Wilco van der Linden – Wartsila, Finland • Bjorn-Johan Vartdal – DNV, Norway


Welcome & Opening Ceremony • Roads & Transport Authority of Dubai • Business Development & Future Trends • Alternate Fuels • Interferry • Information Technology • Opportunities in Developing Countries • Ship Design Innovation • Facing Future Challenges • Closing Ceremonies See conference details @

*RTA will subsidize the delegate fees for the first 250 delegates to register. Registration is now open.









Marina photo: Courtesy of Government of Dubai, Department of Tourism and Commerce Marketing.




While every care has been taken to present the most accurate information, our survey gathering system is far from perfect. We welcome your input. Please e-mail any changes to: Some contract values and contract completion dates are estimated. Information The InTernaTIonal Chamber ofbased ShIppIng on data as of about April 1, 2012. (*) Asterisk indicates first in series delivered. A “C” after a vessel type indicates a major conversion, (ICS) has elected masamichi overhaul morooka or refit. Additional commercial and government contracts are listed on our website,

Shipyard Contracts

as its new Chairman. Morooka succeeds Spyros m. polemis who stepped down from the post after six LOCATION years in office. QTy TyPE SHIPyARD PARTICULARS Shipyard Location Qty Type Particulars Owner Est. Value $ Mil





Alabama Shipyardwas named Mobile, AL of gl1 riverboat casino 38,000 ft2 casino Hollywood Park Casino 7/00 RECENT CONTRACTS John Walker head Crystal Taylor Kevin Kirby 35.0 masamichi morooka Allen Denton’s Marine, Inc. Marine Sitka,MA AK Investipassenger Allen Marine Tours 2.0 20004Q2012 Gladding-Hearn Somerset, 1 1 pilot boat catamaran 52 ft x 1678ftft Delta Launch Services noble Casualty Ingram barge KVIChaK ICS AllenMarine Marine, Inc. Sitka, passenger NYWaterway 2.0 2000 Kvichak Seattle, WAAK 1 1 work boat catamaran 31 ft 8 in78ftftx 11 ft 4 in Puget Sound Energy SUM2012 gation practice for the Americas region. AMFELS Brownsville, TX 1 1 work deepwater vessel 4000-ton deckload CalDiveSound International 100.0 1Q/01 Kvichak Marine Seattle, WA boat construction 37 ft 11 in Puget Energy SUM2012 Atlanticlead Marine, Jacksonville, FL 2 cruise ships 226 passenger Delta Queen Coastal Voyages 60.0 6/01 HeFab will a Inc. team of marine US Seattle, WA engineers, ferry dredge 144 cars250 ft Washington Ferries $138 BayShipyard Shipbuilding Sturgeon Bay, WI 1 1 car cutterhead Lake MichiganState Contractors 2000 2015 master mariners and naval architects Debra a. Colbert has 5,000 beenm3named Senior Greatgennaro pipoli the ManBay Shipbuilding Sturgeon Bay, WI 1 trailing suction hopper dredge Lakes Dredge & Dock was appointed 51.6 3Q/2001 Bender Shipbuilding the cause Mobile, AL extent1 MP deepwater vessel of the Waterways 340 ft Inc. 30.0 marine 2001Sinin determining and Vice President Council Torchaging Director for Imtech DELIVERIES Bender Shipbuilding Mobile,collisions, AL 1 offshore tug 150 ft Otto Candies, Inc. 5.0 8/00 of machinery damage, fires, Inc. (WCI). Colbert previously served as gapore. Pipoli has an extensive track Bender Shipbuilding Mobile, WA AL offshore tug 150ft,ft 26 knots OttoTechnologies Candies, Inc. 5.0 10/00 APR12 All American Marine Bellingham, 1 1 survey vessel 134 ft x 37 C&C groundings, and Director of Communications and MediaSEAJON years Blount Shipyard salvage Warren, RI harbor tug 55 ft stockrecord, 2000 DonJon Shipbuilding Erie,operations PA 1 1 ocean tug LLC having worked a number of APR12 Blount Shipyardincidents. Warren, RI oyster dredge at WCI. 90 ft serves as Pres-SEAJON Tallmadge Brothers 7/00 APR12 other marine Relations Sheton also with general electric (ge). DonJon Shipbuilding Erie, PA 1 1 ocean barge 34,000 LLC Blount Shipyard Warren, RI 1 sightseeing dinner boat 64 ft 10 in Chicago from the Lake, Ltd. 4/01 Kvichak Marine Seattle, WA 1 patrol boat ft 11 in x 14 ft 7 in Seattle Police Dept. APR12 ident ofbarge Colbert44Communications. Bollinger Marine Fabricators Amelia, LA 1 oceangoing 400 ft McDonough Marine Service 2/01 Bollinger Shipyards Lockport, LA 1 cement barge 295 ft Lone Star Industries 2000 The tanker owners’ association, InterKvichak marine Industries, Seattle, WA, Bollingerreports Shipyards that itsLockport, LA hp 8.0 3/01 tanko, council has11 towboat lance Camarena has8,000 joined cruise com- Riverway has Company appointed Kevin Kirby as its new PENDING CONTRACTS Bollinger Shipyards Lockport, LA utility vessel 166 ft Gilco Supply Boats, Inc. 8.0 10/00NOTES appointed Katharina Stanzel panies Kirby with him Bollinger Shipyards Lockport, LA to the utility vessel holland Gilcoproposal Supply Boats,manager. Inc. 8.0 5/01options Eastern Shipbuilding Panama City, FL 8 1 PSV 300america ft 166 ft line and Sea-Hornbeck Offshore $360.0 brings Shipyards Director Lockport, LA utility vesselas director, 145fttraining ft66in, in 23 cars Lytal22 Marine Operators 9/00 TBD 1 1 car ferry 115 ftfleet x 47 County del. end 2014 postBollinger of Managing of Intertanko. bourn and per-Wahkiakum years of experience in8.0the aluminum Bollinger Shipyards Lockport, LA utility vessel ft 6 in Plaisance MarineHighway 8.0 1/01 Ship TBD 1 1 car ferry 500 PAX,145 60 vehicles Alaska Marine Alaska Stanzel, who currently acts as WA Deputy formance management. boatbuilding industry. Brusco Tug & Barge Longview, 1 Z-Drive tug 3,600His hp responsibili- Diversified Marine, Portland, OR 5.0 4Q/00 & Drydock Conrad Shipyard boatwill include overseeing 110 ft 5.0 1Q/00 Managing Director, will Morgan step City, in LA to her1 liftties the deck and undisclosed Conrad Shipyard Morgan City, LA 1 lift boat 111 ft Global Marine 5.0 6/00general newConrad roleShipyard on July 1. engine fleet training team. braemar Technical Services appointed contractor Morgan City, LA 1 liquid mud barge 130 ft undisclosed 5.0 1Q/00 TBD Conrad Shipyards 20 vehicle/149 PAX WA DOT graeme Morgan City, LA 1 1 car dryferry dock 10,000 ton Conrad IndustriesTemple to the role 3.0 of Regional 4Q/00MAY13 TBD 49 140 PAX Townsend MAR/APR12 Dakota Creek Industries Anacortes, WA 1 1 ferry Prevention/Response Tug65 ft, ft, 10,192Executive hp Z-drives Port Crowley Marine Services 7/00 Nashville-based Ingram barge Company evan efstathiou was named Director for its Far East 8.0 region. Temple Derecktor Shipyards Mamaroneck, pilot boats 56 ft aluminum NY/NJ Hawaii Sandy Hook Pilots Association 12/00option VT Halter Marine Pascagoula, MS NY 1 2 Roll-On/Roll-Off 692 ft, 26,600 dwt Pasha Transport $137.0 2.0 has promoted Crystal Taylor to Senior Director of SpecTec america. He previwill be responsible for strengthening Eastern Shipbuilding GroupPascagoula, PanamaMS City, FL 24 1 PSVs Offshore Supply Vessel 97.2m, DP2 204 ft Naviera Tamaulipas 6/00options VT Halter Marine Hornbeck Offshore $1,080.07.0 Shipbuilding Houston, TX bargeworked in Veson 30,000 bbl Services surveyor network 3.0 6/00 ViceFirstWave/Newpark President and Controller. Taylor will1 tank ously nautical as the Blessey theMarine company’s in this Friede Goldman Halter Escatawpa, MS 2 auto/pax ferries 300 passengers/40 autos North Carolina DOT 10.8 7/00 succeed the retiring al oldham. Director of Client Services. region. Friede Goldman Halter Pearlington, MS 2 casino barges Harrah’s Entertainment 2Q/00 Friede Goldman Halter Gulfport, MS 30 inland deck barges 200 ft Ingram Industries 9.0 4Q/00 Friede Goldman Halter Gulfport, MS 1 oceangoing tank barge 370 ft, liquid sugar Express Marine 10.0 8/00 Friede Goldman Halter Pascagoula, MS 1 pure car truck carrier 579 ft Pasha Hawaii Transport Lines 70.0 sp/02 Friede Goldman Halter Pearlington, MS 1 self-unloading bulker 740 ft Great Lakes Marine Leasing 30.0 4/00 Friede Goldman Halter Lockport, LA 1 tugboat hull 150 ft Thoma-Sea Boat Builders 4.0 4Q/00 Friede Goldman Offshore Orange, TX 1 semi-submersible 7500 ft water depth ENSCO International 100.0 8/00 Friede Goldman Offshore Pascagoula, MS 2 semi-submersibles 5000 ft water depth Petrodrill Construction Inc. 186.8 12/01 Friede Goldman Offshore Pascagoula, MS 1 semisubmersible (C) Ilion Noble Drillling/FGII N/A N/A Friede Goldman Offshore Pascagoula, MS 2 semisubmersibles (C) Bingo 9000-12 Ocean Rig ASA (Norway) 313.0 12/00 Gladding-Hearn Shipbuilding Somerset, MA 1 fast ferry 143 ft Boston Harbor Cruises 5.0 2000 Gladding-Hearn Shipbuilding Somerset, MA 3 pilot boats 75 ft Charleston, Boston Pilots 6.0 2000 Gunderson, Inc. Portland, OR 3 railcar/deck cargo barges 420 ft Alaska Railbelt Marine, LLC 15.0 2000 Gunderson, Inc. Portland, OR 1 split hull hopper barge 1,700 yd3 capacity J.E. McAmis, Inc. 3.0 2000 Houma Fabricators Houma, LA 1 offshore tug 125 ft Harvey Gulf International 7.5 2000 Kody Marine, Inc. Harvey, LA 3 switchboats 1,500 hp LC Power 2.0 1Q/01 Kvichak Marine Industries Seattle, WA 1 catamaran 54 ft aluminum Maui Classic Voyages 0.8 7/00 Kvichak Marine Industries Seattle, WA 1 oil spill response vessel 38 ft Clean Sound Co-op 2000 Kvichak Marine Industries Seattle, WA 1 passenger shuttle 54 ft aluminum Atlantis Submarines 0.8 3Q/00 Kvichak Marine Industries Seattle, WA 1 patrol boat 38 ft aluminum Nassau County Police 0.5 12/00 Kvichak Marine Industries Seattle, WA 1 pilot boat 73 ft aluminum Columbia Bar Pilots 2.6 8/00 Kvichak Marine Industries Seattle, WA 1 whalewatch catamaran 65 ft aluminum Eco Adventures 0.9 3Q/00 Leevac Shipyards Jennings, LA 2 deepwater supply vessel 260 ft-280 ft Hornbeck Offshore Services 36.0 6/01 Leevac Shipyards Jennings, LA 1 riverboat casino 280 ft, 30,000 sq ft casino Hollywood Shreveport 36.0 10/00 LeTourneau Vicksburg, MS 1 jackup rig 400 ft depth Rowan Offshore 211.7 6/00 LeTourneau Vicksburg, MS 1 Super Gorilla XL 550 ft water depth Rowan Offshore 190.0 3Q/03 Litton Avondale Industries New Orleans, LA 3 Alaskan tankers 125,000 dwt ARCO Marine 496.0 4/01 Litton Ingalls Shipbuilding Pascagoula, MS 2 cruise ships 1,900 passenger American Classic Voyages 880.0 1/04 Litton Ingalls Shipbuilding Pascagoula, MS 3 multipurpose jackup vessels 180 ft water depth Searex, Inc. 21.9 2000 MARCO Seattle Seattle, WA 2 pilot boats 104 ft San Francisco Bar Pilots 8.0 1Q/01 Marine Builders Utica, IN 1 dinner cruise boat Winston Knauss 5.0 2000 Mark Steel Corporation Salt Lake City, UT 1 car passenger ferry 148 pax/26 auto Utah DOT 3.0 9/00 NASSCO San Diego, CA 2 RO/RO ships 839 ft TOTE 300.0 3Q/02 Nichols Brothers Boat Builders Whidbey Island, WA 1 dinner boat 800 passenger Argosy Cruises 8.0 6/00 Nichols Brothers Boat Builders Whidbey Island, WA 1 high-speed ferry 400 passenger Golden Gate Bridge, Hwy. 8.5 6/01 Nichols Brothers Boat Builders Whidbey Island, WA 1 high-speed ferry 379 passenger Catalina Express Lines 8.5 sp/01 Nichols Marine Ways Portland, OR 1 hydraulic pipeline dredge Manson Construction 10.2 N/A North American Shipbuilding Larose and Houma, LA1 AHTS 7,200 hpEdison Chouest Offshore 8.0 5/00 North American Shipbuilding Larose and Houma, LA1 Offshore Supply Vessel 190 ftChouest Offshore Ser vices3.5 5/00 North Florida Shipyards Jacksonville, FL 1 oil tanker 171 ft Marine Tankers Services, Ltd. 10.0 2000 Orange Shipbuilding Orange, TX 1 deck barge 200 ft undisclosed 2.0 2Q/00 Orange Shipbuilding Co., Inc. Orange, TX 1 deck barge 120 ft undisclosed 1.0 1Q/00 Patti Shipyard Pensacola, FL 2 offshore towing vessels 150 ft Harvey Gulf International 22.0 2000 Quality Shipyards Houma, LA 1 towboat 8000 hp Marquette Transportation 8.0 8/00 SEMCO Lafitte, LA 3 Multi-Purpose Vessels 156 ft x 103 ft Transocean Sedco Forex 15.0 2000 Swiftships, Inc. Morgan City, LA 2 crewboat 170 ft aluminum hull Candies Fleet 12.0 3Q/00


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$3,485.8 MILLION JUNE 2012 YEARBOOK marIne log 57


A “PURe” APPROAch TO POLLUTION cONTROL An impressive portfolio of solutions to shipboard environmental challenges from Sweden’s Alfa Laval addresses oily water, ballast water and SOx regulations as well as waste fuel recovery Alfa Laval’s PureBilge system is understood to be the first bilge water treatment to secure DnV’s new five ppm Type Approval Certificate, thereby supporting shipowners seeking the class society’s voluntary Clean Design notation. Current Marpol regulations stipulate that separated bilge water containing

The system has also earned the Us Coast Guard’s Certificate of Approval. PureBilge functions without chemicals, filters or membranes, and its performance is unaffected by sea heave, oil shock or high solids loading. In addition, no back-flushing is required. since its market release in June 2009, the system has

Alfa Laval’s PureDry system could yield 2% fuel savings

15 ppm or below can be discharged into international waters after treatment by oily water separators. Future legislation will be tougher, however, with limits likely to be reduced to requiring the limit to be reduced to five ppm as is already the case in the Great Lakes. DnV type approval was gained late last year for PureBilge 2005 and 5005 models, which handle up to 2.5 m3/h and 5 m3/h flows respectively.

consistently demonstrated results below five ppm. Although not mandatory yet for authorities, the 5 ppm system is attractive for owners and operators seeking a greener market profile, with early orders attracted from tanker and offshore operators. In another environmental sector, over 250 sales of its PureBallast ballast water treatment system have prompted Alfa Laval to claim a market share of around 22%.


Installations on new ships and retrofits have been made on board containerships, tankers and cruise ships, with customers including leading names such as Maersk, Mitsui OsK Lines, nYK, CMA CGM, Hamburg süd and Bernhard schulte. PureBallast is based on wallenius Advanced Oxidation Technology (AOT), which destroys micro-organisms by breaking down their cell membranes. The water first passes through a 50-micron filter that curbs the intake of organisms and sediment. One or more AOT units can be incorporated in an installation, depending on the volume of ballast water to be treated, the combinations handling flow rates from 250 to 2,500 m3/h. Meanwhile, Alfa Laval’s PuresOx exhaust gas cleaning system is offered as an alternative to switching to very low sulfur fuel in emissions Control Areas (eCA) and in european Union ports. The scrubber removes sulfur oxides from exhaust gas by “scrubbing” it with sea water or fresh water. Operators are thus able to continue running on heavy fuel oil rather than costlier distillates while still meeting the 0.1% sulfur fuel content due from January 1st, 2015. PuresOx can operate with either sea water or fresh water, the sea water capability yielding savings in caustic soda and fresh water consumption. In areas of low alkalinity water the system will switch to fresh water mode, whereby the water used for cleaning the exhaust gas is circulated in a closed system with no discharge to the environment. Alfa Laval’s high speed separation technology is applied to clean the efflu-

ent and ensure compliance with water discharge criteria, also reportedly generating the lowest quantity of sludge. The system is designed to vary the water flow according to the sulphur content of the fuel, and to minimize energy consumption by automatically adjusting the water flow to the engine power. A recent contract calls for Alfa Laval to supply a multiple-inlet PuresOx system for a spliethoff ship mainly deployed in the north european eCA. A combined engine rating of 28Mw dictates the largest marine scrubbing system so far contracted. Meanwhile, the latest addition to Alfa Laval’s program— PureDry—exploits an innovative high speed disc stack separator to recover re-usable fuel from waste oil and cut fuel costs by 2%. The recovered fuel oil is then returned to the bunker tank for re-use after normal shipboard treatment. The PureDry generation is said to represent a paradigm shift in high speed disc stack separator solids discharge design. There is no aperture in the bowl and no sensitive hydraulic system installed to actuate solids discharge. The innovation is a patented, spiral-shaped device, the XCavator, which transports the super-dry solids to the base of the machine for discharge into a container below. There are only two moving parts: the separator insert, including the XCavator, and the outer bowl shell, which move in the same direction but at different speeds, thus transporting the dry solids out of the machine. By Paul Bartlett, Contributing Editor



SIeMeNS TO POWeR MAeRSK’S TRIPLe-e cLASS when seeking out ecofriendly propulsion systems, Daewoo shipbuilding and Marine engineering turned to siemens. The south Korean shipbuilder awarded siemens Drive Technologies Division with a contract to supply it with eco-friendly propulsion and power generation systems for 20 Triple-e class containerships currently being built at the yard for the A.P. Moller-Maersk Group (Maersk Line). The 18,000 TeU vessels will be the largest in the world. siemens’ power generation systems will have a major role in enhancing and furthering the propulsion’s potential. The vessels will be equipped with a twin pro-

system pulsion system two slow with two slow running ultralong stroke engines driving separate separate propellers propellers sail that will sail two 3 Mw with two 3 Mw Generator Motors shaft Generator Motors acting as power gen(sGM) acting as power genunits. eration units. systems will feaThe systems will feabuilt-in waste Heat ture a built-in waste Heat Recovery system (wHR) that Recovery system (wHR) that will capture the engine’s exhaust gas. This captured gas will then be used to run the combined exhaust/gas steam turbine genset, gen-

erating electrical ing electrical energy. energy. siemens will also provide siemens will also provide its ecoMain Decision supits ecoMain Decision support system. The siemen’s eco Main Decision support system further promotes

the the optimizing of ing of the vessel’s energy balance and maintenance cycles.

VSTeP naUTiS simulator delivered to T.o.S. The nAUTIs tug trainer simulator has been successfully delivered to the Rotterdman headquarters of Transport & Offshore service (T.O.s.). The software, the latest in a new line of DnV certified Tug Handling simulators, was developed by maritime simulator and virtual training software developer VsTeP. The nAUTIs covers the simulation gamut, ranging from desktop trainers to 360- degree simulations. The simulator enables captains to experience the handling of tugs with different propulsion systems, ranging from conventional shaft propellers to AsD and tractor tugs. The system comes with an easy to use set of instructor tools to prepare and control maneuvering exercises, multi-tug opera-

tions and fine-tune ship maneuvering parameters. “The nAUTIs tug simulator provides us with a high fidelity simulator for our AsD Training Program,” says Ronald van der Kolk, Manager Division nautical & Technical at T.O.s. “we have selected the portable version of the nAUTIs tug simulator because the simulator will guarantee high quality, realistic tug handling training for our customers at any location worldwide.” JUne 2012 YeARBOOK marine log 59

Contracts ShipBuilding




While every care has been taken to present the most accurate information, our survey gathering system is far from perfect. We welcome your Shipyard Contracts input. Please e-mail any changes to: Some contract values and contract completion dates are estimated. Information REGULATION & IMPLEMENTATION AT A GLANCE based on data as of about May 1, 2012. (*) Asterisk indicates first in series delivered. A “C” after a vessel type indicates a major conversion, overhaul or refit. Additional commercial and government contracts are listed on our website,

Vessel Category

Ballast Water Capacity


Date Constructed

New Vessels All On or after Dec. 1, 2013 SHIPyARD Shipyard Location LOCATION TyPE Particulars Owner PARTICULARS Qty1,500 mQTy Type Est. Value $ Mil 3 Existing Vessels Less than Before Dec. 1, 2013 Alabama Shipyard RECENT CONTRACTS Allen Marine, Inc. Huntington Ingalls AllenMarine Marine, Inc. Senesco AMFELS Senesco Marine Atlantic Marine, Inc. Vigor/US Fab Bay Shipbuilding

Mobile, AL 1 riverboat casino 38,000 ft2 casino Sitka, AKMS m31 1 assault passenger 78 ft 1,500 – 5,000 Before Dec. 1,72013 Pascagoula, shipcatamaran LHA Sitka,RIAK passenger Kingston, 1 1 ASD tug catamaran 5,150 hp78 ft Brownsville, TX 1 1 dry deepwater vessel 4000-ton deckload Kingston, RI dock construction 420 ft, 7,300 lt cap Greater than 5,000 m23 cruise Jacksonville, FL shipsBefore Dec. 1, 2013 226 passenger Seattle, WA 1 auto ferry 362 ft 3 in x 83 ft 2 in Sturgeon Bay, WI 1 cutterhead dredge 250 ft

Vessel’s Compliance Date

On delivery OwNER/OPERATOR EST. $ MIL EST. DEL. Est. Del. First Scheduled Drydocking after Jan. 1, 2016 Hollywood Park Casino



Allen Marine Tours FirstU.S. Scheduled Drydocking after Jan.2.01, 2014 2000 JUN18 Navy $2,381.4

NYWaterway 2.0 2000 2013 McAllister Towing CalDive International 100.0 1Q/01 2013 Caddell Dry Dock First Delta Scheduled Drydocking Queen Coastal Voyages after Jan. 60.01, 2016 6/01 Washington Ferries Lake MichiganState Contractors 2000 FEB14

Bay Shipbuilding Sturgeon Bay, WI 1 trailing suction hopper dredge 5,000 m3 Great Lakes Dredge & Dock 51.6 3Q/2001 Bender Shipbuilding Mobile, AL 1 MP deepwater vessel 340 ft Torch Inc. 30.0 2001 DELIVERIES Bender Shipbuilding Mobile, AL 1 offshore tug 150 ft Otto Candies, Inc. 5.0 8/00 Bender Shipbuilding Mobile, AL 1 offshore tug 150 ft Otto Candies, Inc. 5.0 10/00 Bollinger Shipyards to theLockport, LA 1 FRC 145aftType x 25 ftApproval certif- U.S.(SAB Coast Guard $47 five BWM techMAY12 in are similar ones adopted by Guard has issued Study) listed only Blount Shipyard Warren, harbor13tug 55 ftft stock 2000 APR12 GD-NASSCO San Diego, CARI 1 1 T-AKE 689 ft x 106 U.S. Navy $412 the Convention through 2016; the new icate, AMS certification will no longer be nologies that met the IMO D-2 discharge Blount Shipyard Warren, RI 1 oyster dredge 90 ft Tallmadge Brothers 7/00 US Fab Portland, OR 1 covered barge 180 ft x 52 ft Georgia Pacific Consumer MAY12 Blount Shipyard Warren,isRI almost 1 possible sightseeing dinner boat ft 10 in the Coast Chicago from the Lake, construction implementation for vessels for64 which standard now adopted in4/01the Bollinger Marine Fabricators Amelia, LA 1 oceangoing barge 400 ft McDonough Marine Service 2/01 two years at 1 Guard Type Approved 295 system is deemed Lone Coast Guard Regulations: 1. De-oxygenBollinger apart, Shipyards with the Convention Lockport, LA cement barge ft Star Industries 2000 PENDING CONTRACTS Bollinger Lockport, LA towboat 8,000 hp 8.0 + chlorine 3/01NOTES January 1,Shipyards 2012 and the Coast Guard at 1 suitable. Title 46 CFR Part 162.060 Riverway ationCompany + cavitation; 2. Filtration TBD Bollinger Shipyards 6 1 car ferry 1,200 PAX (Convert to LNG) Washington StateInc. Ferries RFP by July 11 Lockport, LA utility vessel 166 ft Gilco Supply Boats, 8.0 10/00 December 1, 2013. sets out the requirements for submittals dioxide; 3. Filtration + UV; 4. Filtration Bollinger Shipyards Lockport, LA utility vessel 166 ft dwt Gilco Supply Boats, Inc. 5/01option VT Halter Marine Pascagoula, MS 1 1 Roll-On/Roll-Off 692 ft, 26,600 Pasha Hawaii Transport $137.0 8.0 For BWM equipment installed from Type Approval + Marine UV Offshore +Operators Ti O2; and 5.$1,080.0 Filtration + electro Bollinger Shipyards Lockport, LA prior utility vessel 145 ft 6 inby a foreign Hornbeck Lytal 8.0 9/00options VT Halter Marine Pascagoula, MS 24 1 PSVs 97.2m,testing DP2 Bollinger Shipyards Lockport, LAimple- 1 administration. utility vessel 145 ft 6 in Plaisance Marine 8.0 1/01 to the Coast Guard Regulations chlorination. Brusco Tug & Barge Longview, WA 1 Z-Drive tug 3,600 hp Diversified Marine, Portland, OR 5.0 4Q/00 mentation date, the Coast Guard may Once the Convention and RegulaConrad Shipyard Morgan City, LA 1 lift boat 110 ft undisclosed 5.0 1Q/00 Shipyard Morgan lift boat 111 ft Marine 5.0 6/00 issueConrad a five-year certificate forCity, theLA use 1 SELECTION AND INSTALLATION OF BWM SYSTEMS Global tions build dates requirements are taken Shipyard Morgan City, LA 1 liquid mud barge 130 ft 1Q/00 of anConrad Alternative Management System The vessel owner’s attention must undisclosed intoIndustries account, and a Coast 5.0 Guard system Conrad Shipyards Morgan City, LA 1 dry dock 10,000 ton Conrad 3.0 4Q/00 (AMS) to Creek foreign Type-Approved equip- 1 now turn to the of BWM sys- Crowley approval appears assured, Dakota Industries Anacortes, WA Prevention/Response Tug selection 140 ft, 10,192 hp Z-drives Marine Services 8.0 an owner’s 7/00 Shipyards Mamaroneck, NY pilot boats 56 ftthe aluminum Sandy Hook Pilots among Associationthese 2.0 alternatives 12/00 mentDerecktor that demonstrates equivalent per- 2 tems and the timing of installation. NY/NJ selection from Eastern Shipbuilding Group Panama City, FL 1 Offshore Supply Vessel 204 ft Naviera Tamaulipas 7.0 6/00 formance to thatShipbuilding with CoastHouston, Guard Science Advisory30,000 Board will Marine depend upon the circumstances FirstWave/Newpark TX Type- 1 The tank barge bbl Study that Blessey Services 3.0 6/00 of Friede Goldman Halter Escatawpa, auto/pax ferries passengers/40 DOT operation and10.8 7/00 Approved equipment. Once the MS Coast 2 was submitted to the 300 EPA in July autos 2011 North theCarolina vessel’s the configuraFriede Goldman Halter Pearlington, MS 2 casino barges Harrah’s Entertainment 2Q/00 Friede Goldman Halter Gulfport, MS 30 inland deck barges 200 ft Ingram Industries 9.0 4Q/00 Friede Goldman Halter Gulfport, MS 1 oceangoing tank barge 370 ft, liquid sugar Express Marine 10.0 8/00 Friede Goldman Halter Pascagoula, MS 1 pure car truck carrier 579 ft Pasha Hawaii Transport Lines 70.0 sp/02 Friede Goldman Halter Pearlington, MS 1 self-unloading bulker 740 ft Great Lakes Marine Leasing 30.0 4/00 Friede Goldman Halter Lockport, LA 1 tugboat hull 150 ft Thoma-Sea Boat Builders 4.0 4Q/00 Friede Goldman Offshore Orange, TX 1 semi-submersible 7500 ft water depth ENSCO International 100.0 8/00 Friede Goldman Offshore Pascagoula, MS 2 semi-submersibles 5000 ft water depth Petrodrill Construction Inc. 186.8 12/01 Friede Goldman Offshore Pascagoula, MS 1 semisubmersible (C) Ilion Noble Drillling/FGII N/A N/A Friede Goldman Offshore Pascagoula, MS 2 semisubmersibles (C) Bingo 9000-12 Ocean Rig ASA (Norway) 313.0 12/00 Gladding-Hearn Shipbuilding Somerset, MA 1 fast ferry 143 ft Boston Harbor Cruises 5.0 2000 Gladding-Hearn Shipbuilding Somerset, MA 3 pilot boats 75 ft Charleston, Boston Pilots 6.0 2000 Gunderson, Inc. Portland, OR 3 railcar/deck cargo barges 420 ft Alaska Railbelt Marine, LLC 15.0 2000 Gunderson, Inc. Portland, OR 1 split hull hopper barge 1,700 yd3 capacity J.E. McAmis, Inc. 3.0 2000 Houma Fabricators Houma, LA 1 offshore tug 125 ft Harvey Gulf International 7.5 2000 Kody Marine, Inc. Harvey, LA 3 switchboats 1,500 hp LC Power 2.0 1Q/01 Kvichak Marine Industries Seattle, WA 1 catamaran 54 ft aluminum Maui Classic Voyages 0.8 7/00 Kvichak Marine Industries Seattle, WA 1 oil spill response vessel 38 ft Clean Sound Co-op 2000 Kvichak Marine Industries Seattle, WA 1 passenger shuttle 54 ft aluminum Atlantis Submarines 0.8 3Q/00 Kvichak Marine Industries Seattle, WA 1 patrol boat 38 ft aluminum Nassau County Police 0.5 12/00 Kvichak Marine Industries Seattle, WA 1 pilot boat 73 ft aluminum Columbia Bar Pilots 2.6 8/00 Kvichak Marine Industries Seattle, WA 1 whalewatch catamaran 65 ft aluminum Eco Adventures 0.9 3Q/00 Leevac Shipyards Jennings, LA 2 deepwater supply vessel 260 ft-280 ft Hornbeck Offshore Services 36.0 6/01 Leevac the Shipyards Jennings, LA 1it’s riverboat casino 36.0 10/00 Find right people, whether shore-side or 280 ft, 30,000 sq ft casino Hollywood Shreveport LeTourneau Vicksburg, MS 1 jackup rig 400 ft depth Rowan Offshore 211.7 6/00 LeTourneau Vicksburg, MS 1 Super Gorilla XL 550 ft water depth Rowan Offshore 190.0 3Q/03 shipboard professionals by leveraging Litton Avondale Industries New Orleans, LA 3 Alaskan tankers 125,000 dwt ARCO Marine 496.0 4/01 Litton Ingalls Shipbuilding Pascagoula, MS 2 cruise ships 1,900 passenger American Classic Voyages 880.0 1/04 Litton Ingalls Shipbuilding Pascagoula, MS 3 multipurpose jackup vessels 180 ft water depth Searex, Inc. 21.9 2000 MARCO Seattle Seattle, WA 2 pilot boats 104 ft San Francisco Bar Pilots 8.0 1Q/01 Marine Builders Utica, IN 1 dinner cruise boat Winston Knauss 5.0 2000 Mark Steel Corporation Salt Lake City, UT 1 car passenger ferry 148 pax/26 auto Utah DOT 3.0 9/00 NASSCO San Diego, CA 2 RO/RO ships 839 ft TOTE 300.0 3Q/02 Nichols Brothers Boat Builders Whidbey Island, WA 1 dinner boat 800 passenger Argosy Cruises 8.0 6/00 Nichols Brothers Boat Builders Whidbey Island, WA 1 high-speed ferry 400 passenger Golden Gate Bridge, Hwy. 8.5 6/01 Nichols Brothers Boat Builders Whidbey Island, WA 1 high-speed ferry 379 passenger Catalina Express Lines 8.5 sp/01 Nichols Marine Ways Portland, OR 1 hydraulic pipeline dredge Manson Construction 10.2 N/A North American Shipbuilding Larose and Houma, LA1 AHTS 7,200 hpEdison Chouest Offshore 8.0 5/00 North American Shipbuilding Larose and Houma, LA1 Offshore Supply Vessel 190 ftChouest Offshore Ser vices3.5 5/00 North Florida Shipyards Jacksonville, FL 1 oil tanker 171 ft Marine Tankers Services, Ltd. 10.0 2000 Orange Shipbuilding Orange, TX 1 deck barge 200 ft undisclosed 2.0 2Q/00 Orange Shipbuilding Co., Inc. Orange, TX 1 deck barge 120 ft undisclosed 1.0 1Q/00 Patti Shipyard Pensacola, FL 2 offshore towing vessels 150 ft Harvey Gulf International 22.0 2000 Quality Shipyards Houma, LA 1 towboat 8000 hp Marquette Transportation 8.0 8/00 SEMCO Lafitte, LA 3 Multi-Purpose Vessels 156 ft x 103 ft Transocean Sedco Forex 15.0 2000 Swiftships, Inc. Morgan City, LA 2 crewboat 170 ft aluminum hull Candies Fleet 12.0 3Q/00



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December 2005 Vol. 110 No.12

June 2012 Vol. 117 No. 6



Craig shipbuilding: toledo & long BeacH For every U.S. shipyard that just had one name, one location and one owner, there seem to be at least three that had multiple names, locations and owners. Here is one belonging to the latter group. The shipyard in Toledo, OH, was started in 1888 by John Craig and his son, John F. Craig. The older Craig was born in New York City, the son of an immigrant Scottish shipyard worker. He began his shipbuilding career during the Civil War, working on ship conversions for the Navy, then started a shipyard in Gibraltar MI, called Linn & Craig, which built 24 Great Lakes cargo ships between 1869 and 1882. The site was limiting, however, and in 1883 Craig moved downstream to Trenton, MI, and started another new shipyard, this one called J. Craig & Sons, where he built 15 more ships between 1883 and 1889. Not satisfied with the labor force in Trenton, he moved yet again in 1889, taking over a repair yard called Toledo Dry Dock Company and renaming it Craig Shipbuilding Company. Here he built another 66 ships between 1890 and 1905. In 1906, Craig sold the business to The American Ship Building Company and retired. John Craig’s son, John F., however, was not yet through with shipbuilding. He moved to Long Beach, CA, taking 26 foremen and their families with him, and started yet another Craig Shipbuilding, on 43 acres on the west side of Channel B, where he was the Port of Long Beach’s first tenant. In 1913, however,

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after building 10 oceangoing boats for the Pacific coastal service, Craig sold the yard to the California Steamship Building Company. This company is listed as the builder of a lighthouse tender for the Coast Guard and five submarines for the Navy, and then the name changed to Long Beach Shipbuilding, although it is not clear if this represented a change of ownership or just a change of name. In any case, Long Beach Shipbuilding then built 14 West-class cargo ships for the U.S. Shipping Board. It survived after the war, primarily as a ship repair yard, but closed in the 1930s. However, it was not closed for long. In 1937, Consolidated Steel Corporation leased it and put it back to work while it built a wholly new yard in the Wilmington district of Los Angeles. The Long Beach yard built seven C1-Bs and two troopships for the U.S. Maritime Commission before reverting to its primary role as a repair facility called Long Beach Marine Repair. It remained active into the 1950s before being closed and returned to the Port of Long Beach. Meanwhile, back in Toledo, The American Ship Building Company, or AmShip, as it later became known, had consolidated almost all the major Great Lakes shipbuilders into a single company. Craig Shipbuilding became Toledo Shipbuilding and later AmShip Toledo. It continued to produce Great Lakes cargo ships, turning out another 33 ships before WWI and a series of 33 Lake-class freighters for the war effort. In the post-

war years, however, orders dried up and the yard concentrated on ship repair, although it was briefly reactivated during WWII to build the Coast Guard icebreakers Storis and Mackinaw. When AmShip finally ended its Great Lakes operations in 1985, Toledo was one of the three remaining shipyards. It then became the property of the ToledoLucas County Port Authority and is still in operation today as a repair yard, at its original location on Front Street at the foot of the appropriately named Craig Street. A curious sidebar to this saga involves the shipyards’ hull numbers. Craig’s Hull 1 was the first ship he built in Gibraltar and subsequent hull numbers continued through the ships built in Trenton and Toledo. When the yard was sold to AmShip, the new owners carried on this sequence, starting at Hull 107 and ending at Hull 200. Meanwhile, the new Craig Shipbuilding, out in Long Beach, also carried on the same sequence, also starting with Hull 107 but in this case ending at Hull 155. Tradition being such a strong influence in our industry, Consolidated Steel then continued from there, assigning Hull 156 to its first ship and continuing all the way to Hull 1519, in a series that also included all the ships built in its other yard, in Orange, TX. In the next edition of this column, we will look at Consolidated Steel. ML

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June 2012 Marine Log Magazine