Page 1

arine oG M L

R e p o r t i n g o n M a r i n e B u s i n e s s & T e c h n o l o g y s i n c e 18 78

November 2016

Vigor Goes Extra Green Mile

Subchapter M: Safety to the Letter

Block Island: Winds of Change


Solid Next generation Harvey Stone delivers



AN INVESTMENT IN YOUR FLEET THAT PAYS FOR ITSELF Independently tested, high-performance hydrodynamic solutions help maximize power while reducing fuel consumption. Join Nautican at one of the many shows coming up: Nov. 1–5, 2016

Nov. 17–19, 2016

Nov. 30–Dec. 2, 2016

SNAME 2016 Maritime Convention, Booth 404

Pacific Marine Expo, Booth 1547

International WorkBoat Show, Booth 3315


New Look, More Coverage




R E P O R T I N G O N M A R I N E B U S I N E S S & T E C H N O L O G Y S I N C E 18 78

May 2016


EUROPE World’s First Methanol-Burning Tankers

Marine Log recently underwent a cover-to-cover redesign of its print and digital magazine. The redesign showcases a refreshed look, improved content flow, and expanded coverage of the maritime industry.

What’s New:


IN ANOTHER ALTERNATIVE fuel technology breakthrough, the world’s first three 50,000 dwt oceangoing tankers to burn methanol were recently named at christening ceremonies in South Korea and Japan. The 186m x 32.2m Lindanger was built by Hyundai Mipo Dockyard for Norwegian owner Westfal-Larsen. The Mari Jone and Taranaki Sun were both built by Japan’s Minaminippon Shipbuilding Co., Ltd. The three tankers are the first of seven that will be charted by Waterfront Shipping (WFS) to transport methanol worldwide. Two vessels will be owned by Westfal-Larsen, two owned by a joint venture between Marinvest/Skagerack Invest and WFS, and the remaining three by Mitsui OSK Lines

European R&D fuels industry innovation TOPIC HEAD El Faro’s Vdr Located

TOPIC HEAD Army To Add New Landing Craft

TOPIC HEAD Electrifying The Ferry Market

(MOL) lorem. The tankers are each equipped with the first-of-its kind MAN B&W two-stroke 6G50ME-9.3 ME-LGI dual-fuel, two-stroke engine that can run on methanol, fuel oil, marine diesel oil, or gas oil. The engine was developed by MAN Diesel & Turbo and is based on the company’s proven ME-series. “When operating on methanol, the MELGI significantly reduces emissions of CO2, NOx and Sox,” says Ole Grøne Senior Vice President, Head of Marketing and Sales, MAN Diesel & Turbo. “Additionally, any operational switch between methanol and other conventional fuels is seamless,” he adds lorem ipsem.

DSD Shipping To Pay For Violating Apps And Lying To Coast Guard NORWAY’S DSD SHIPPING will pay a penalty of $2.5 million after it was found guilty of obstruction of justice, violating the Act to Prevent Pollution from Ships (APPS), tampering with witnesses and conspiring to commit these offenses. Part of that penalty, $500,000, will be paid to Dauphin Island Sea Lab Foundation to help fund marine research and enhance coastal habitats in the Gulf of Mexico and Mobile Bay. The U.S. Department of Justice says that

evidence demonstrated at trial shows that DSD operated the 56,000 gross ton M/T Stavanger Blossom from 2010 to 2014 without an operable oily-water separator. According to documents, an internal corporate memorandum written by a vessel engineer on January 29, 2010 warned DSD that the pollution prevention equipment did not work—and should the problem not be rectified someday, someone might end up getting “caught for polluting.” The oily-water separator was never



• Expanded European coverage • New Wellness Column by Crowley Maritime focuses on employee health

rom optimized ship designs to performance monitoring and from improved maintenance to more effective voyage management, Europe’s maritime sector is pioneering a range of new technologies that are transforming all aspects of global ship operation. Soon, noon-day reporting from fallible human beings will be a thing of the past. From cradle to grave, a whole new approach to ship efficiency has been made possible by recent advances in IT and data processing. Now, a step change in “always-on” ship connectivity will allow maritime assets to be monitored and managed remotely right round the clock. As we reported in “Shipping’s space age future” (ML April 2016, p. 37), perhaps the most ambitious project on the go in Europe is the Rolls-Royce-led Advanced Autonomous Waterborne Applications

human error.” Finferries and dry bulk shipping company ESL Shipping Oy are the first ship operators to join the project, which aims to explore ways in which to combine existing communication technologies as effectively as possible for autonomous ship control. Inmarsat’s involvement is key. The London-listed communications company recently began the roll-out of its new Fleet Xpress service, seen by many as truly a light-bulb moment. Preparing the ground for rapid advances in smart ship operation and crew welfare, the new service now provides always-on high-speed broadband communication between maritime and offshore assets at sea, and shore-based managers. It is the first time that such a service has been available from a single operator. Fleet Xpress will also facilitate cloudbased applications from third parties

The 228-passenger Scenic Eclipse, set to debut in 2018, will be built at Uljanik in Croatia and feature two 3MW Azipods from ABB

As disruptive as the smart phone, the smart ship will revolutionize the landscape of ship design and operations.

Initiative (AAWAI) in which other maritime firms including DNV GL, Inmarsat, Deltamarin and NAPA are also involved. Other participants include top academics from various Finnish universities. At a project update meeting recently in Helsinki, Rolls-Royce President - Marine, Mikael Makinen declared: “Autonomous shipping is the future of the maritime industry. As disruptive as the smart phone, the smart ship will revolutionize the landscape of ship design and operations.” Delegates heard that the sensor technology is now sufficiently sound and commercially available so that algorithms required for robust decision-making— the vessel’s virtual captain—are not far away. Now the arrays of sensors are to be tested over the coming months on board Finferries’ 65-meter-long double-ended ferry, Stella. “Some of the distinct goals of this project are to make a difference in marine safety and energy efficiency,” Päivi Haikkola, Manager, R&D, Deltamarin Ltd., told Marine Log. “We want to mitigate

with smart systems to raise ship operating efficiency and improve the life-quality of seafarers. For the first time, big data can be used to improve asset management and maintenance. IT advances have also facilitated a new approach to ship design. Model basins and testing tanks still have their place, of course, but thousands of relatively high-speed computational iterations can measure the relative benefits of small design changes in a way that has not been possible before. Take the Finnish company Foreship, for example. Its capabilities in computational fluid dynamics (CFD) and the super-efficient hull forms which it has developed have propelled the company into a position as one of the top ship design consultants to global cruise lines, advising both on newbuilding plans, conversions and retrofits. In a couple of months, the first of two 4,700 dwt “EcoCoaster” cargo ships is due for delivery to Finland’s Meriaura Group from the Royal Bodewes yard in the Netherlands. Foreship carried out


TECHNOLOGIES New approaches to ship efficiency are now possible Photo Credit

• Quick new product highlights in new section, Marine Innovations

By Paul Bartlett, European contributor

18 Marine Log // November 2016

November 2016 // MARINE LOG 19



• Revamped navigation and recognizable icons to identify sections at a glance

How much does your company plan to spend on products, equipment or service in 2017 as compared with 2016? 41% OR MORE


21-40% MORE


11-20% MORE

1-10% MORE







JEANINE ACQUART Classified Sales T: 212-620-7211






10 %



Reduction in Spending

Increase in Scrapping

Reduction in Ordering

$14.8 bn (2015) + $7.1 bn (2016) = $21.8 bn spent

689 (2015) + 238 (2016) = 927 vessels

388 (2015) + 428 (2016) = 816 vessels

Source: VesselsValue

Recent Shipbuilding Contracts, North America Shipyard Bollinger Shipyards, Lockport, LA Eastern Shipbuilding, Panama City, FL Fincantieri Marine, Marinette, WI

4 Marine Log // November 2016

YOUNG-SEOH CHINN Korea & China JES Media International T: +822-481-3411



Source: Marine Log Shipbuilding Contracts

BRENDA HOMEWOOD Europe Alad Ltd. T: +44 (0) 1732 459683



VT Halter Marine, Pascagoula, MS

AMY LENNOX California & Canada T: 212-620-7221


0 Source: Baker Year

Horizon Shipbuilding, Bayou La Batre, AL

HEATHER BONATO U.S. East Coast, Midwest and West Coast T: 212-620-7225


Changing Behavior – Buying, Ordering And Scrapping Activity (H1 2015 VS. H1 2016)




Est. $

Est. Del.


Phase I design study

U.S. Navy



U.S. Navy



U.S. Navy




Phase I design study


Phase I design study


14 boats split with Metal Shark 149 PAX, 85 ft 4 in

Hornblower Inc




Phase I design study

U.S. Navy



Metal Shark, Jeanerette, LA

JEFF SUTLEY U.S. Gulf Coast & Mexico T: 212-620-7233



Source: Swell Media Group

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



SSN 08970491 USPS 576-910






55 Broad Street, 26th Floor, New York, N.Y. 10004 Tel: (212) 620-7200 Fax: (212) 633-1165 Website: E-mail:

Offshore Rigs Operating In US (on or about August 1 of respective year)


• Enhanced editorial environment to engage with readers and increase display ad visibility

ASA Seeks To Expand Its Reach Across The Americas

DUMMY TEXT HERE Ubli ius, pordit Cat. As inc mantem quam pulicibem audamdi cotiliam. Irmande modius hoste, Ti. It. Quidest rarivit, C. An iam territem abefacrei stabitem, Casdacri se facerfe rionst? Picae firis licasdacturo cut vis. Sciame et? An te aucerfex se inguli ta, tam ered diursul conte testruntio idicam tantia Sp. Vales consul ur. Ota, consus molto vasdam menaturs addum iam pereo et veresse ntique coentem ut fuit. Nu virmaxi mantem ignat, dem, serfec vius, cepote nessena tiliuscii consus Cupieni quosses in pesil hac videme tantil verei intemqu odientientem conlocas consimus nocupere etiquam prectu compermanum iaesidi caetrebus cum ta, niciis? Poerecum postricae tiquodicas potil.


• Improved visual flow, with more photographs, charts and graphs

repaired or replaced according to the Department of Justice. Instead, DSD operated the vessel illegally for the next 57 months until U.S. Coast Guard inspectors identified the problem in November 2014. Testimony at trial revealed that DSD illegally discharged about 20,000 gallons of oil-contaminated wastewater and plastic bags containing 270 gallons of sludge into the ocean during the last two-and-a-half months of the vessel’s operation. Evidence also showed that DSD lied about these.

6 Marine Log // November 2016


• Profiles of notable industry CEOs and Owners in new Bi-Monthly CEO Spotlight section

Four major container lines, CMA CGM, COSCO Container Lines, Evergreen Line and Orient Overseas Container Line, have signed a Memorandum of Understanding to form a new alliance that will enable each to offer competitive products and comprehensive service networks lorem ipsum epson. The partnering of the companies, called the Ocean Alliance, will begin operations in April 2017 with coverage of the Asia-Europe, Asia-Mediterranean, Asia-Red Sea, Asia-Middle East, Trans-Pacific, Asia-Nor th America East Coast and Trans-Atlantic trades for an initial period of five years. “This new partnership will allow each of its members to bring significantly improved services to its respective customers,” said the member carriers in a statement. “Shippers will have an attractive selection of frequent departures and direct calls to meet their supply chain needs, including access to a vast network with the largest number of sailings and port rotations connecting markets in Asia, Europe and the United States.” The Alliance’s fleet will be made up of over 350 containerships. “[A] Joint service cooperation is lorem ips. Iquate vendani que volesse nectotatem fugiaspieni tempossit et iscit esed et untibus quas.



t is an exciting time for the American Salvage Association (ASA). As most members are no doubt aware, we are actively promoting the upcoming training seminar that the ASA is co-sponsoring with the Organization of American States’ (OAS) Inter-American Committee on Ports (CIP). This seminar will target senior Port Authority representatives from the 35 mem-

call at 305-269- 1022. Please visit the American Salvage Association website ( for more information on this event and to view the list of invited speakers and attendees. Seating is limited at this workshop so register today. Concurrently, the leadership team and Membership Committee are aggressively

ASA is shifting from a U.S.-focused organization to one that supports the salvage industry throughout the Americas. ber states of the Americas and will be held in Miami from June 13 to 15, 2016. It will be the perfect opportunity to promote the improvement of salvage and wreck removal standards throughout the Americas. This event represents the first major product of our new relationship with OASCIP and we expect it will be the first of many such events. The ASA leadership team continues to be extremely pleased by the support of Jorge Durán, Chief of the Secretariat, Inter-American Committee on Ports (S/CIP), and his staff and it is an honor and pleasure to introduce Mr. Durán to our members lorem. Book online at the Hyatt House Miami Airport Hotel for the special room rate or

recruiting new members from Central and South America, the Caribbean Sea, and Canada and the response has been extremely positive thus far. Our membership base is expanding rapidly in direct support of our expanded mission in these regions. It is clearly a turning point in the ASA’s history.

U.S. East, Midwest and West Coasts Heather Bonato Regional Sales Manager T: (212) 620-7225 | F: (212) 633-1165 Email: California & Canada Amy Lennox Sales Associate T: (212) 620-7221 | F: (212) 633-1165 Email: EUROPE Neil Levett Managing Director Alad Ltd. T: +44 (0)1732 459683 Email: SCANDINAVIA Brenda Homewood Alad Ltd. T: +44 (0)1732 459683 Email: FRANCE Paul Thornhill Alad Ltd. T: +44 (0)1732 459683 Email: KOREA & CHINA Young-Seoh Chinn JES Media International T: +822-481-3411 | F: +822-481-3414 Email: CLASSIFIED SALES


President, American Salvage Assoc.

Jeanine Acquart Classified Advertising Sales T: (212) 620-7211 | F: (212) 633-1165 Email:

44 Marine Log // November 2016







4E  ditorial What’s new at Marine Log?


Offshore Wind Change in the Wind The first offshore wind project in U.S. will launch this fall


Shipyards Going the Extra Green Mile Vigor’s environmental initiatives are part of the corporate culture

8 Marine Innovations 10 W  ellness Column Getting the skinny on the “fatjacket” 12 Update

 ost effective transformers C • Revving up South Korean yards for business • U.S. Coast Guard shatters drug bust record • Rescue ship to aid refugees •

20 Inside Washington Lawmakers have to get busy before end of year 56 Newsmakers BC Ferries President named CEO of Interferry 57 Tech News

Rolls-Royce to deliver automatic crossing system to Fjord1

62 Classifieds 64 Marine Salvage CRISK initiative to continue, along with drive to expand membership

2 Marine Log // November 2016

Plus: Shipyards sharpen their pencils

37 41

Towboats Designed to Save Lives Historic disasters help pave the way for Subchapter M Profile An Interview with Citywide Ferry’s Sarah McDonald Sarah is the Special Projects Coordinator of Vessel Construction for the Citywide Ferry project


Finance MARAD Reboots CCF (Part II) Long-established Ropax operators can now take advantage of the program to build new vessels


Maintenance Lessons for the Fleet A shift to rotatable cutter boat maintenance pool pays off


Deck Machinery What’s on Deck? A look at the latest in deck machinery news and technology


Technology Going Deep A new hybrid ROV from WHOI could change the industry

Shutterstock/Al Mueller

6 Industry Insights

Full compliance. No performance compromise. Now you can better protect both your equipment and your waterways with Mobil SHC™ Aware™ — a full line of VGP-compliant lubricants. You’ve never seen gear oils, stern tube oils, hydraulic oils and greases that can maximize equipment life and extend dry dock intervals* like this. Learn more at

© 2015 Exxon Mobil Corporation. All rights reserved. All trademarks used herein are trademarks or registered trademarks of Exxon Mobil Corporation or one of its affiliates unless otherwise noted. *Equal to or beyond traditional lubricants.


MarineLoG NOVEMBER 2016 Vol. 121, NO. 11 ISSN 08970491 USPS 576-910 PRESIDENT Arthur J. McGinnis, Jr. PUBLISHER & EDITOR-IN-CHIEF John R. Snyder MANAGING EDITOR Shirley Del Valle CONTRIBUTING EDITOR Paul Bartlett

What’s New at Marine Log?


ver the last 12 months, we’ve been working to bring you a new Marine Log, with more insight into the people and products that make the marine business tick. That includes the launch of Shipbuilding Contracts, our exclusive web-based tracking system of shipbuilding information for North America, our new CEO Spotlight column, which provides a look at the industry’s thought leaders, and our media partnership with NASDAQ to increase our coverage of marine business finance through a dedicated newsfeed on So what’s new this month? How about a new bold, fresh design for the print and digital magazine? You’ll notice immediately a fresh take on news, additional images, and a vibrant color palette. Take a peek inside to read our coverage on the first offshore wind farm in the U.S., the insurance benefits of Subchapter M for the towing industry, and how Vigor shipyard is creating a green corporate culture. In addition, one of the new things you’ll find in this issue is Industry Insights, which will provide you with a quick overview of trends in the marine market through the use of key market indicators, surveys, tables, charts and graphs. You’ll also notice up front our new Marine Innovations section, which will give you a glimpse of new products, equipment,

and services that will make your operation more efficient, more productive, and maybe your job easier. In our new Wellness Column, contributed by Crowley’s Emily Reiblein, we’ll focus on employee health. While we often focus on best practices and technologies, we can sometimes neglect what makes the biggest difference in your operation—your mariners. You can find our fan favorite Maritime Trivia question on page 14. Over on our website, you’ll notice a new channel called Podcasts, which we launched in conjunction with SMM 2016. Take a listen to interviews about everything from big data to the future of ship design. If you are not a regular subscriber, I w o u l d w e l co m e yo u t o s i g n u p a t What’s behind these changes? They are all about continuing our mission of journalistic excellence. Our job is simple: We want to provide you with the information and market intelligence that makes your business better, safer and more profitable.


John R. Snyder Publisher & Editor

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 Publishing Corp, 55 Broad Street, 26th Floor, New York, NY 10004. Printed in the U.S.A. Periodicals postage paid at New York, NY and additional mailing offices. PRICING: Qualified individuals in the marine industry may request a free subscription. Non-qualified subscriptions Printed AND/ OR Digital Version: 1 year US $98.00; foreign $213.00; foreign, air mail $313.00. 2 years US $156.00; foreign $270.00; foreign, air mail $470.00. Single Copies are $29.00 each. Subscriptions must be paid for in U.S. funds only. COPYRIGHT © Simmons-Boardman Publishing Corporation 2016. All rights reserved. Contents may not be reproduced without permission. For reprint information contact: PARS International Corp., 102 W 38th St., 6th Floor, New York, N.Y. 10018 Phone (212) 221-9595 Fax (212) 221-9195. For Subscriptions, & address changes: Please call (800) 895-4389, (402) 346-4740, Fax (402) 346-3670, e-mail or write to: Marine Log Magazine, Simmons-Boardman Publishing Corp, PO Box 3135, Northbrook, IL 60062-2620. POSTMASTER: Send address changes to Marine Log Magazine, PO Box 3135, Northbrook, IL 60062-2620

4 Marine Log // November 2016

WEB EDITOR Nicholas Blenkey

SALES REPRESENTATIVE KOREA & CHINA Young-Seoh Chinn CLASSIFIED SALES Jeanine Acquart CONFERENCE DIRECTOR Michelle M. Zolkos CONFERENCE ASSISTANT Stephanie Rodriguez Simmons-Boardman Publishing CORP. 55 Broad Street, 26th Floor, New York, N.Y. 10004 Tel: (212) 620-7200 Fax: (212) 633-1165 Website: E-mail:



Real People Real Relationships Real Satisfaction

Who’s Building Your Boat? Join us Nov 30-Dec 2 at the International Workboat Show Booth #2837

Powered by

Management Software

INDUSTRY INSIGHTS WELCOME TO OUR NEW Industry Insights section, which provides a quick graphical overview of the current trends in the global marine marketplace. Some of this month’s insight: What are marine businesses spending plans in 2017? About 45 percent plan to spend more in 2017 than they did in 2016, according to the Marine Log 2016 Readership Survey. Is oil starting to turn the corner? The offshore rig count in the U.S. stood at 23 as of the first week of October of this year, down from 30 at the same time last year and 61 in 2014. The good news: Five more offshore rigs are working in October 2016 than there were in September.

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

How much does your company plan to spend on products, equipment, and services in 2017 as compared with 2016? 41%+ OR MORE

11-20% MORE






21-40% MORE

34 48


65 61

2014 1-10% MORE






30 23

0 Source: Swell Media Group/Marine Log Readership Survey, 2016








Source: Baker Hughes

Changing Behavior – Buying, Ordering and Scrapping Activity (H1 2015 VS. H1 2016) Secondhand Sales

Newbuilding Orders

Demolition Sales



10 %

Reduction in Spending

Reduction in Ordering

Increase in Scrapping

$14.8 bn (2015) + $7.1 bn (2016) = $21.8 bn spent

689 (2015) + 238 (2016) = 927 vessels

388 (2015) + 428 (2016) = 816 vessels

Source: VesselsValue

Recent Shipyard Contracts & Deliveries, North America Est. $




Chesapeake Shipbuilding, Salisbury, MD


ATB tugs, 3,000 hp

Vane Brothers


Conrad Shipyard, Orange, TX


Deck Barges

U.S. Army Corps of Engineers


ITB Marine Group, Richmond, BC, CAN


Pusher Tugs, 1,700 hp

ITB Marine


Gulf Island Shipyards, Houma, LA


Towboat, 180 ft

Marquette Transportation


JB Marine Service, St. Louis, MO


Towboat, 55 ft

Gateway Dredging & Contracting


North American Shipbuilding, Larose, LA


Escort Tugs, 70 bollard tons



North American Shipbuilding, Larose, LA


Escort Tugs, 80 bollard tons



North American Shipbuilding, Larose, LA


Escort Tugs, 150 bollard tons




Source: Marine Log Shipbuilding Contracts/

6 Marine Log // November 2016

Est. Del.

NUCLEAR SMUGGLERS, UKRAINIAN REBELS, AND A BEAUTIFUL ANTITERRORISM AGENT combine to present Dirk Pitt and his two children with the most dangerous challenge of their careers. START READING NOW AT PRH.COM/ODESSASEA




Audio available


Marine Innovations ABS Upping the Standards on Cybersecurity Classification society and technical services provider ABS has unveiled its CyberSafety series, the first comprehensive cybersecurity certification and optional notations for marine, offshore assets and facilities. The series is the industry’s first risk-based management program for asset owners to apply best practice approaches to cybersecurity, automated systems safety, data integrity and software verification. “Our unique approach to CyberSafety charts a new path, delivering wider and deeper classification services as technology evolves and becomes more sophisticated reaching far beyond simple compliance and directly to asset and facility security,” says ABS Chief Technology Officer Howard Fireman. “The ABS CyberSafety program provides the only actionable guidance for addressing and assessing cyber-enabled systems that emphasize human, systems and environmental safety.”

Enginei An Advanced Marine Fuel Management and Monitoring System for the Industry Enginei advanced technology fuel monitoring systems supply comprehensive fuel data analysis and reporting options to provide vessel owners and operators with detailed engine performance and other mission critical information. The system, which features a Geofencing capability, accurately records fuel consumption data by individual engines and remotely sends the information from the ship to shore-based offices. The system also provides a low cost method of measuring vessel emissions, including CO2, NOx and SOx profiles. The Enginei integrated fuel management system is compatible with all marine engine types and can be interfaced with new-build engine installation or retrofitted to operating vessels.

REINTJES New Down Angle Gearbox Series

ABS Photo: Shutterstock/deepadesigns

Gearbox specialist Reintjes’s new Down Angle gearbox series will help keep engine rooms small and noise emission down. Reintjes says that in designing the new series special attention was paid to the teeth design and contact pattern under load in order to reduce noise. Additionally, with a Down Angle gearbox installed, the engine room can be engineered in a space-saving design—since the engine can be installed horizontally, and the propeller shaft is sloped downwards by the inclination angle inside the gearbox. The series is comprised of WVSA 340, WVSA 740, and WVSA 1540 sizes. Its power range is available from 250 kW to 3,250 KW and a reduction ratio of 1.5 to 4.

8 Marine Log // November 2016

Marine Innovations Thordon Bearings SeaThigor Brings New Level of Redundancy for its COMPAC System As part of its plans to optimize its award-winning COMPAC seawater-lubricated propeller shaft bearing system, Thordon Bearings has unveiled the new SeaThigor forward seal. The new SeaThigor safety seal design incorporates a pneumatically activated inflatable element to stop water ingress along the shaft, allowing for the repair of the main seal while at sea, and for the shaft to turn at a lower speed so the vessel can safely return to port for primary seal repair of replacement. Providing a new level of redundancy to single screw or mission-critical vessels operating seawater-lubricated propeller shafts, SeaThigor can function as both a dynamic and static seal to provide water-tight integrity around a shaft, while allowing the propeller shaft to rotate in both directions across a range of shaft speeds. The seal is designed with an enclosed housing protecting the rotor components.

Viking Saatsea Digitalized Onboard Training Eases Compliance Headaches Shipowners and offshore operators now have a powerful new, digitalized tool for tackling the costs, delays and sheer hassle associated with traditional land-based training. Viking Saatsea is leading a wave of new, digitally enabled opportunities to enjoy full control and peace of mind in all the complexity of crew training. The Saatsea approach to designing its solutions is quickly moving onboard e-training and compliance management from being a “nice-to-have” to a “must-have” capability for ensuring safety compliance. Through an online training system with minimal bandwidth impact, master and crew can complete and register module-based theoretical and practical assignments, with immediate, up-to-date competency assessments for maritime and offshore inspections.



ORK Engines for prop ulsion Engines for auxilia ry applic Tailored ations transmis sions Type-app roved in strumen tation

Complete and Committed. THE SCANIA MARINE SOLUTION. Out there, confidence in performance, reliability and operating economy are the only things that count. With this in mind, we created the Scania marine solution: An array of flexible products paired with guidance and installation support from Scania. Whatever your specification, we will provide you with the optimal Scania marine solution. Power at work, every inch of the way.

November 2016 // Marine Log 9


Getting the Skinny on the “Fatjacket” may actually be less than the above. The biggest, long-term influx of sugars in the U.S. diet is from soda consumption (between 8-16 teaspoons for a 12 oz can). Following that, look at your labels, a single serving of instant “healthy” oatmeal from one of the country’s largest fast-food chains contains 32 grams of added sugar per serving. Take the grams and divide by 4 (4 grams per 1 teaspoon); and you have eaten 8 teaspoons of added sugar before 8 AM. What can we do…check labels!

1. Identify the Added Sugars

10 Marine Log // November 2016

linked to this increased glucose circulation. Moreover, if we have no “fatjacket” system, meaning our body does not know what to do with the excess glucose; we can be thin, but the thin body may suffer the diseases sooner in life, 20’s and 30’s, instead of 50’s and 60’s. The biggest question is “How much added sugars in our diet is too much?” The American Heart Association puts the sugar intake

Sugar, consumed in too high a dose, is a liver toxin, hormone disrupter, and general body annotator for a “normal” male at 9 added teaspoons a day, women at 6 added teaspoons, and children at 4 added teaspoons. Added teaspoons are those that are not inherent to a product, and are put in there to increase taste. The World Health Organization and U.S. Government have identified about the same level for someone with a normal metabolism, but here is the rub—most of us are not normal. Almost 70% of the U.S. population is overweight/obese, according to the CDC. One in four will die of heart disease, and upwards of 45% are already suffering from some level of diabetes/pre-diabetes, and/or metabolic syndrome. “Normal” is a fallacy, so the number

2. Check Dietary Fiber Content A good rule of thumb is the higher the fiber, the less the insulin spike from the pancreas. Fiber extends the length of time for sugars to digest.

3. Ween Down Your Sugar Intake The National Institute of Health has identified that sugars have an addictive property much like alcohol, drugs or tobacco (perhaps even stronger). You suffer from the same dopamine dump in the brain through repeated exposure to sugar, and thus, if you stop sugaring-up “cold turkey,” you many not feel very well for a bit. The good news is the symptoms of withdrawal diminish over time.

4. Move the Snack Table Put the cookies and candy in a draw or cabinet, and put easy-to-eat fruit, nuts, etc. out on the counter instead. Lower the temptation level and the ease with which we can put hands on addictive things that deteriorate us. Please remember that nothing in this column constitutes medical advice, it is for educational purposes only. For more insight, you can check out the University of California movie The Skinny On Obesity.

Emily Reiblein

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

Shutterstock/Marcos Mesa Sam Wordley


unching on a tray of cookies or cakes in the galley can be a very satisfying end to a long, tiring, hot shift. But that indulgence comes at a price. Sugar, consumed in too high a dose, is a liver toxin, hormone disrupter, and general body annotator. It takes us down piece-by-piece, until there is nothing left but a disease-ridden, overweight human being. Some of the latest science and research says when we consume sugary or sugar “producing” foods (high carbohydrate content), the body processes it into glucose. The glucose gets distributed around the body to power the brain, cells, muscles, organs, etc. When every bit of you is filled with energy, the pancreas releases insulin, and the excess energy is stored as fat for later use. It’s a brilliant system that gives humans the ability to sustain periods of nutritional uncertainty, famine, and starvation. But, what if we just keep adding more sugar to our system, and never burn off that stored energy? In short, we gain weight and start to get sick, too. Think of your fat cells as a lifejacket or life-saving “fatjacket,” only designed to save your life for a period of time. After bobbing around in adverse conditions, the jacket starts to deteriorate and becomes ineffective. Our insulin pumps can give out, hormone production can decrease in some critical areas like testosterone, and fat becomes like another organ and starts producing its own hormones, and triglycerides increase. Our organs, hormones and brain start to feel the effects of this systematic breakdown. There is every indication now, that heart disease, diabetes, pre-diabetes, metabolic syndrome and maybe even dementia, are all

Currently, it is not easy to see on a Nutrition Label, because “added sugars” are not identified. While that is changing, the only way to know now what is added is to compare products. For example, oatmeal has no sugar in its unadulterated form. If you read the label of oatmeal, and it states there are sugars in the product…you know they are added.


Electronic Chart Display

and Information System

Furuno is proud to have equipment featured on these Significant Boats: • Trident • Breeze • Thunder • Lightning • Squall • Cairo • Harvey Energy • Harvey Power • Arcticus • Michelle Sloan • Crown Point • Rick Calhoun • Molly Pitcher • Betsy Ross • Chandra B

Finally, an ECDIS designed for navigators by navigators! • 100% Furuno designed Linux software improves stability & reduces virus risk • Fully compliant IMO systems (19” & 23.1” LCD) or Black Box ECDIS with user supplied wide glass bridge monitors are available • Simple Ethernet connection to FAR2xx7 Radars, saving thousands over complex interface kits • Fast redraw & intuitive route creation • Easy auto-load function greatly simplifies chart loading & updating • USB Jump Drive on keyboard supports easy data import & export

FMD3200/3300 ECDIS

• 10 custom user profiles allow quick recall of user preferences

FAR2x x



• Screen capture function stores up to 100 ECDIS/Radar images • Customizable conning screens are provided as standard supply • Extra DVI-I output port for convenient connection to Voyage Data Recorder

Four customizable conning displays are available as standard supply

EXCLUSIVE: World’s first IMO ECDIS that directly interfaces with Furuno’s FAR2xx7 Radar Series! For more information on the New Furuno ECDIS, scan QR Code.

www.Fur November 2016 // MARINE LOG 11


BIZ NOTES Cost Effective


The world today moves fast— and in order to keep up businesses have to be ready to adapt and modify to stay afloat. To help shipbuilders, owners and operators keep up with the changing market, Ulstein Design & Solutions AS will offer shipowners a way to mobilize vessels for a new market within a few days. Runar Muren, Ulstein Design & Solutions AS says, “Traditional conversions are project-based and include a complete package of basic design and engineering.” By switching over to a modular approach, time at the yard, and away from operating, will be reduced. The customizable pre-manufactured modules can be quickly installed on

a ship, enabling the ship to quickly go back into service. Ulstein says that at mobilization, no extensive structural changes need to be done, and the modules and the mezzanine deck can easily be demounted when the mission is completed. Within a short time a platform supply vessel can reemerge as an offshore wind service/ accommodation vessel, subsea construction vessel, or a vessel for ROV services. And while initially, Ulstein developed the predefined modules for its own PX121 and PX105 ship designs, the company says it is branching out and developing conversion modules for other vessels, including nonUlstein designs.

OSG to split in two The Board of Directors at Overseas Shipholding Group, Inc. has given the go-ahead to separate OSG’s international and domestic businesses into t wo independent, publicly traded companies: Overseas Shipholding Group and International Seaways. “As two independent, industry-leading companies, OSG and International Seaways can drive more focused business strategies and benefit from enhanced operating and financial flexibility,” says Captain Ian T. Blackley, OSG’s President and CEO. “The separation will also present a unique opportunity for investors by creating two distinct and attractive investment profiles, which will allow each company to attract a broader base of shareholders.” International Seaways, which will trade under the symbol of INSW on the New Yor k Stock Exchange ( NYSE), will own and operate one of the largest fleets of international crude and product tankers worldwide. OSG, meanwhile, will maintain its OSG symbol on the NYSE, and will operate a fleet of U.S.flagged tankers and ATBs in the blue water Jones Act market.

Former NCIS Agent Sentenced to Prison in Fat Leonard Case Former Naval Criminal Investigative Service ( NCIS ) supervisory

special agent, John Bertrand Beliveau II, has been sentenced to 12 years in prison for his role in the Fat Leonard Affair. Beyond the prison sentence, Beliveau was also ordered to pay $20 million in restitution to the Navy. According to his plea agreement, Beliveau a d m i t te d t h a t i n exch a n g e f o r c a s h , luxury travel, and the services of prostitutes, he aided Leonard Glenn Francis, former CEO of Glenn Defense Marine Asia ( G D M A) , to p er p e tua te a m a s sive fraud scheme on the U.S. Navy by providing information that allowed Francis to avoid, stall, and thwart criminal 12 Marine Log // November 2016

investigation into misconduct by GDMA. Beliveau acknowledged that he regularly searched confidential NCIS databases for reports of investigations related to Francis and GDMA—the reports helped Francis avoid multiple criminal investigations by providing sensitive law enforcement information about ongoing investigations, the identities of those being investigated, information about witnesses, and particular aspects of GDMA’s billings that were of concern to the investigations. He went on to admit that he attempted to cover up his involvement by asking Francis to delete incriminating emails and deactivate an email account. Beliveau also admitted that he counseled Francis on

how to perpetuate his fraud scheme and evade detection. To date, a total of 16 individuals have been charged in connection with the GDMA corruption and fraud investigation. Including Beliveau, 11 of those are current or former U.S. Navy officials. Among them: Admiral Robert Gilbeau, Captain (ret.) Michael Brooks, Lt. Commander G e n t r y D e b o rd , Co m m a n d e r B o b by Pitts, Captain Daniel Dusek, Commander Michael Misiewicz, Lt. Commander Todd Malaki, Commander Jose Luis Sanchez, Petty Officer First Class Daniel Layug and Paul Simpkins, a former DoD civilian employee who oversaw contracting in Singapore.


aking the right “PROPULSION” and “POWER” investment is critical. Motor-Services Hugo Stamp, Inc. is here to help and as an authorized distributor for Baudouin, Nanni, FPT, and Alamarin-Jet, Visit MSHS we have the knowledge, inventory, and service teams available 24/7 Booth 1941 from offices in Florida, Louisiana, and Maine. For complete information on our products and services, call 954-763-3660 or toll free 800-622-6747 or visit

Int’l WorkBoat Show

New Orleans, Louisiana Nov. 30 - Dec. 2

Motor-Services Hugo Stamp, Inc. Authorized Distributor and Service Center



+1 954-763-3660




Foss’ Susan Hayman Picked by Obama for Board of Visitors President Obama has nominated Foss Maritime VP of HSQE & External Affairs, Susan Hayman to the United States Merchant Marine Academy’s (USMMA) Board of Visitors. This key administrative post is for a two-year term, commencing at the beginning of each Congress. The Board of Visitors provides oversight, advice and recommendations on matters relating to the USMMA. The Board is made up of Congressional representatives and Presidential appointees, including two alumni from USMMA. Hayman is a graduate of both USMMA and the Harvard Business School. After several years of sea-going experience,

Hayman held various key management positions within the maritime industry. She was called to Active Duty in the U.S. Navy in 2002 and began her career with Foss in 2006 as VP of HSQE. Over the years, Hayman has also presented on a number of Foss Maritime environmental initiatives, including the company’s efforts in hybrid propulsion. In a statement following his official nomination of this, and other key posts, President Obama said, “I am proud that such experience and committed individuals have agreed to serve the American people in these important roles. I look forward to working with them.”

MARITIME Trivia­– Question #43: How big was the eye of Typhon Carmen? The first sailor or lubber that correctly answers the Maritime Trivia question will receive a color J. Clary collector print. Email your guess to October’s trivia question: How many 1000-foot vessels ply the Great Lakes waters? Although there are 13 “footers” as they are called on the Great Lakes, there are SEVEN, 1,000-foot freighters, FIVE, 1,004-foot freighters and ONE 1,013-foot 6-inch vessel—the largest vessel sailing the Great Lakes.

World Class Systems Worldwide Support


1-800-762-0165 |


14 Marine Log // November 2016

M40C3 40kW @1800 RPM


Revving Up South Korean Yards for Business South Korea’s government isn’t

taking the latest slump in shipyard orders lightly. Yoo Il-ho, Deputy Prime Minister and Minister of Strategy and Finance, said that the government along with several public entities, will place orders for more than 250 ships, worth about 11 trillion won ($9.59 billion), with domestic shipyards by 2020. The orders are part of a plan to help stimulate the shipbuilding sector. The goal is to have shipbuilders adapt to the changing environment by shifting their focus to higher value-added ship services and provide fresh financing to help boost shipping companies’ competitiveness. One of the new strategies will be to rearrange the shipbuilders’ business portfolio “The government is aiming to privatize the shipbuilder in the end,” said Deputy Trade Minister Toh Kyung-hwan. “But before privatization, the company should normalize its management first, through disposing of under-performing businesses and improving more competitive sectors.” According to a report from the Yonhap news agency, restructuring efforts at Hyundai Heavy Industries Co., will include a spin

BIZ NOTES Louisiana Cat reaches milestone

South Korea plans to order 250 ships by 2020 off of its non-shipbuilding businesses. Additionally, Yonhap reports, that the country’s “Big Three” shipyards plan to reduce their workforces by 20,000 employees by 2018; and their combined docks will shrink to 24. The government also plans to create a new company in 2017 (yet unnamed) to take over containerships from ailing companies and lease them back to help shipping companies stay afloat.

Louisiana Cat, Reser ve, L A, has become the first Caterpillar dealership in the Americas to reach all requirements for training and technical sales and support to make it a Gold Level Dealer for the full line of Cat Propulsion equipment. The expansion of the marine product line—to include the entire marine propulsion systems package—will help maximize uptime, and reduce operating costs for offshore platform service and towing vessels, inland river cargo and transportation vessels, and fishing and government vessels. “We are excited to be the first dealer in the Americas to achieve this goal through qualification in a rigorous technical sales and support training over the last year and a half,” says Louisiana Cat’s Mike Jennings.

November 2016 // Marine Log 15


U.S. Coast Guard Shatters Drug Bust Record

Just call them the Drug Busters.

The U.S. Coast Guard and its interagency partners had a record-breaking year when it came to drug busting in FY 2016. The agency removed more than 416,600 pounds of cocaine worth over $5.6 billion from October 1, 2015 to September 30, 2016.

The previous record was held in 2008 when the agency removed 367,700 pounds of cocaine. “This impressive record not only reflects the extraordinary accomplishments of the men and women of the U.S. Coast Guard but the continued threat our nation faces

ur Drydock yo ship here!

from transnational criminal organizations determined to move drugs into our country by any means necessary,” says Homeland Security Secretary Jeh C. Johnson. During FY 2016, the Coast Guard also apprehended 585 suspected drug smugglers—breaking last year’s record of 503. Of the 585 apprehended, 465 were transferred to the U.S. for prosecution—breaking another service record. “These prosecutions erode and undermine the supply channels critical to the operations of drug kingpins who prey on our citizens with highly addictive drugs and spread violence throughout our hemisphere,” says VADM Fred Midgette, Commander, Coast Guard Pacific Area. “From 2002 to 2011, information obtained from suspects apprehended by the Coast Guard contributed to the arrest and extradition of more than 75 percent of drug kingpins.” Coast Guard partners include the Joint interagency Task Force South, Eleventh and Seventh Coast Guard Districts in Alameda and Miami, and numerous U.S. Attorneys’ Offices that coordinate the investigation and prosecution of drug smuggling cases.

Customer before company Employee before owner Family before self Safety above all Designed for:

Heavy Duty Naval Architecture Marine Engineering Salvage Engineering Marine Surveys


Stevedoring barge 300’ x 72’ · 6,000 psf deck Built by Conrad Shipyard for the Rhode Island Commerce Corp. and Port of Providence

16 Marine Log // November 2016 860.536.0009 Barges, Dry Docks, & Work Boat Design


Rescue Ship Vos Hestia to Provide Aid in Ongoing Refugee Crisis It is a daily fact that migrants and refugees are at risk of drowning as they make the perilous journey from North Africa to Europe— more than 3,000 people have drowned this year. And the journey will only become riskier as winter approaches. But thanks to the work of the charity, Save the Children, together with shipowner Vroon and classification society RINA Services, a specifically dedicated rescue ship has been classified to rescue those that run into difficulty when crossing the Mediterranean. In 2016, Save the Children began an ambitious project to use a vessel from the Dutch shipowner Vroon to save the lives of refugees crossing the Mediterranean Sea. International marine regulations state that a ship is to be classified according to her intended service. RINA has introduced in its classification rules the “Rescue” notation for cargo ships dedicated to rescuing refugees. In special search and rescue operations, the rescue capacity of the ship is to be maximized, prioritizing refugees reaching dry land safely rather than standard accommodation. The set of requirements are aimed at

The Vos Hestia’s first mission helped save 300 refugees

maximizing passenger carrying capacities while complying with international regulation. Compliance with these requirements allowed for the Vos Hestia to be classified with the new service notation “Rescue.” The 59 m Vos Hestia’s first rescue mission took place this past July, and assisted about

300 refugees from Nigeria, Guinea, Cote d’Ivoire, Mali, Ghana, Cameroon, Gambia, Senegal, Burkina Faso, Liberia and Sudan. There were about 55 women; four accompanied children; and 60 unaccompanied children, who are believed to be under age of 18, including a 12-year-old boy.

St. Johns Ship Building A Full-Service Ship Building & Repair Company eer g Carie s it Offerin n u t Oppor g irin Now H

560 Stokes Landing Rd. Palatka, FL 32177 Tel: 386.328.6054 Fax: 386.328.6046

November 2016 // Marine Log 17


Marad Awards $4.85 Million in Grants for Marine Highway Projects The U.S. Maritime Administration ( MARAD ) has awarded grants totaling

$4.85 million for six Marine Highway Projects through its Marine Highway Program. The goal of the program is to expand the use of navigable waterways within the U.S. —helping to relieve congestion and reduce emissions. The six projects being funded are:

Port of Baton Rouge & Port of New Orleans Container-onBarge Service A $1,758,595 grant for a new regularly scheduled container-on-barge service that supports exports moving from the Port of Baton Rouge to the Port of New Orleans. The new service is designed to collect empty



container in Memphis, TN, and transport them to Baton Rouge to meet demand for chemical industry exports.

Illinois Container-on-Barge Shuttle A $713,000 grant will help fund an 18-month demonstration project to provide shuttle service for agricultural customers moving containerized exports between south and northern Illinois to access the Union Pacific and BNSF rail ramps. The service will operate between the Illinois and Mississippi Rivers between Channahon and Granite City, IL, with an option to extend the container-on-barge service to the Gulf of Mexico ports in concert with related Marine Highway Designation.

James River Container Expansion The 64 Express is an existing container-onbarge service at the Port of Virginia that operates along the James River between Hampton Roads and Richmond, VA. The $476,748 will support development of new customers by expanding service to include moving refrigerated and frozen products on the barge.

New York Harbor and Containerand Trailer-on-Barge Service A $1,632,296 grant will support the New York Harbor Container- and Trailer-onBarge—an existing service that operates in New York Harbor between Red Hook Container Terminal in Brooklyn, NY, to Red Hook Barge Terminal in Newark, NJ. The grant will help purchase infrastructure that will support improved barge operations and the creation of a crane operator training center.

M-55/M-35 Container-on-Barge

CONNECTING TO THE FUTURE The new Wärtsilä Sea-Master system uses digital technology to maximize uptime and reduce lifecycle costs of vessel shaft lines, helping you connect the dots whatever the challenge. Read more at wärtsilä.com.

18 Marine Log // November 2016

A $96,000 grant will support planning efforts by the City of St. Louis Port Authority, Inland Rivers Por ts & Terminals, Mississippi River Cities & Towns Initiative, and Upper Mississippi River Basin Association on developing containerized shipping along the Mississippi River, between New Orleans, Minneapolis and Chicago.

M-495 Potomac River Commuter Ferry A $173,361 grant will support the planning efforts for the development of a new commuter ferry on the Potomac River. If developed, the service will reduce congestion on highways and interstates between Northern Virginia and Washington, DC.

What the Marine Industry has been waiting for… Has Arrived

Coast Guard Approved Thermoplastic Piping Systems from Spears®

Approval #164.141/45/0

Spears Manufacturing Company, the world’s largest U.S. thermoplastics manufacturer, is proud to announce United States Coast Guard approval of CPVC thermoplastic piping systems for shipbuilding and offshore platform use. Spears® offers the only thermoplastic piping solution made in the U.S.A. ®

Marine Drainage Systems 1-1/4" - 12"

Schedule 40 and 80 Industrial CPVC Pipe and Fittings 1/2" - 12"

CTS CPVC Hot and Cold Water Distribution System 1/2" - 2"

Applications include: • Potable Water Systems Certied by NSF® • Sea Water Desalinization • Ballast & Wastewater Treatment Systems • Excellent Flame, Smoke & Toxicity Rating • Black Water & Gray Water Systems • Longer Life & Lower Life-Cycle Costs vs. Metal Piping • Pressure, Vacuum & Drainage Service


Ship Building . . . Spears® offers unparalleled... • Product Quality • Product Availability • Customer and Technical Service • ASME B131.3 Bonder Training

. . . To

Mobile Offshore Drilling Units

Progressive Products From Spears® Innovation & Technology Since 1969

SPEARS® MANUFACTURING COMPANY • CORPORATE OFFICE 15853 Olden St., Sylmar, CA 91342 • PO Box 9203, Sylmar, CA 91392 (818) 364-1611 •

inside washington


The Marine Highway Program would also receive $5 million for grants from the Senate. There’s no funding for the program in the House version of the bill. There’s plenty of good news for aging public ferry systems in grant programs from the Federal Highway Administration and Federal Transit Administration. Under the FAST Act signed into law by President Obama in December 2015, as much as $80 million in grants will be available to build, refit or repair ferries and ferry terminals over each of the next five years. This past May, the Federal Transit Authority awarded states $59 million in grants to build new, upgrade or repair ferries and ferry terminals. And, as Clay Cook writes in “MARAD Reboots CCF, Part II,” in this issue, monies deposited in the Capital Construction Fund can now be used in the construction of Roll-On/Roll-Off Passenger vessels such as those being built for Washington State Ferries.

ECAP propeller by MMG

hen Amer icans go to the polls on November 8, they will not only be voting for a new President, but also shaping a new Congress, with 34 Senators and 435 Representatives on the ballot. Whether it is President-Elect Clinton or President-Elect Trump, when Congress does return during the lame duck session—the House is back November 14 and the Senate on November 15—they’ll have some important business to tackle. One issue that they’ll have to address right away is

the Continuing Resolution, which keeps the government running through December 9. They will also have to finish the 2017 budget. Among the maritime-related sections, there is $10 million authorized for the U.S. Maritime Administration’s Small Shipyard Grant program in the Senate bill. The program has been instrumental in spurring investment in U.S. shipyards to make them more efficient, productive and competitive and has been over-subscribed since it was first created. Shipyards have used the grants to add panel lines, welding equipment, cranes, etc. The Maritime Administration (MARAD) Title XI Ship Loan Guarantee program is also funded in the Senate version of the bill to the tune of $5 million, plus an additional amount for administrative expenses. That $5 million could be leveraged to go a long way, backing several newbuild projects at U.S. shipyards. House members aren’t so high on Title XI—they would rescind funding.

BATTERY POWERED VESSELS DNV GL is the world’s leading classification society and a recognized advisor for the maritime industry. Safeguarding life, property and the environment through new technology, the emerging new battery technology solution makes it possible to use stored energy for propulsion. With design ranging from hybrid solution to 100% pure configurations for safer, smarter and greener vessels. DNV GL can support you with:   

Classification  Verification  Environmental performance  Battery performance modeling Operational performance efficiency solutions  Enhanced LNG solutions  Greener DP operation Energy storage  Independent engineering

Learn more at

Learn more at


20 Marine Log // November 2016

Shutterstock/Orhan Cam

Lawmakers Have to Get Busy Before End of Year


DEMAND HYDE MARINE Trust the proven experience of Hyde Marine and the Hyde GUARDIAN® Gold – the industry’s most widely used ballast water treatment solution. +1.724.218.7001 I

Offshore Wind

Change in the Wind

Atlantic Pioneer, a crew transfer vessel, built by Blount Boats

First Offshore Wind Project in United States to Launch This Fall By Jonathan K. Waldron, Partner, Blank Rome LLP, and Joan M. Bondareff, Of Counsel, Blank Rome, LLP


l t h o u g h s ke p t i c s s a i d i t couldn’t happen, the first offshore wind project in the United States is scheduled to begin operation by the end of this year, bringing wind power to shore from waters off Block Island, Rhode Island. Bragging rights can go to Jeffrey Grybowski and his team at Deepwater Wind. The project may be relatively small—five turbines producing only 30 megawatts (MW) of wind and providing power to about 17,000 homes—but it is a giant step forward in the world of offshore wind in the United States. Credit can also go to Rhode Island for

22 Marine Log // November 2016

creating a State Ocean Management Plan identifying potential sites for offshore wind farms, and to the residents of Block Island, Rhode Island, who in large numbers supported the project, which will connect Block Island to the mainland and the grid for the first time. Power from the five turbines will be brought ashore by a large submarine cable, and purchased by National Grid. The price of power is expected to be somewhat higher than the average price of electricity in the United States overall. However—and most notably—the power will be clean and renewable compared to the diesel fuel that Block Islanders have previously

relied on, and it will reduce island electric rates by an estimated 40 percent as well as diversify Rhode Island’s power supply. Serious investors like D.E. Shaw also helped finance the estimated $300 million project, and it is subsidized by investment tax credits for offshore wind that Congress extended last year with a schedule for phasing out the subsidies over the new few years.

Impact of the Jones Act on Deepwater Wind Developers such as Deepwater Wind had to run the gamut of state and federal law and regulations, including the Jones Act.

Offshore Wind the Obama Administration’s Department of Interior (DOI) has awarded 11 commercial leases in federal waters along the Atlantic Seaboard, and is in the process of issuing leases in waters adjacent to other states. A lease sale is pending for the waters

utilities and other power purchasers to acquire 1,600 MW of wind energy by 2027. Procurement requests for this energy are expected to be issued in 2017. Companies that have lease sales in the region are the potential bidders for these contracts.

The future bodes well for U.S. shipyards, marine suppliers, and labor for future offshore wind projects. While Deepwater Wind is the first of its kind, many other projects are in the works along the Eastern seaboard.

off North Carolina, and one off the end of Long Island, New York, is possible by the end of the year. The DOI is also investigating the feasibility of floating wind farms off the coasts of Oregon and California as well as Hawaii; leases have already been awarded on the continental shelves of Massachusetts, Rhode Island, Delaware, Maryland, and Virginia.

New State Support for OSW Development

They were able to comply with the Jones Act by bringing the giant turbine nacelles from Europe on a jack-up installation vessel called the Brave Tern owned by Fred. Olsen Windcarrier. Smaller vessels transported other supplies to the wind platforms, and these were U.S.owned, built, and crewed.

The Future of Osw Leasing Looks Positive The future bodes well for U.S. shipyards, marine suppliers, and labor for future offshore wind projects. While Deepwater Wind is the first of its kind, many other projects are in the works along the Eastern Seaboard. Ten years from the “Smart from the Start Program” created under a 2005 amendment to the Outer Continental Shelf Lands Act,

Support from neighboring states is critical to the development of these larger offshore wind farms. While the DOI has leasing authority on the Outer Continental Shelf, the power must be fed ashore by gigantic cables to power states on land and eventually into the power grid. Earlier this year, New York State Governor Andrew Cuomo announced his commitment to renewable energy by establishing a goal of acquiring 50 percent of the state’s energy from renewable sources by 2030. The New York State Energy and Research Development Authority (NYSERDA), and its partner the Long Island Power Authority (LIPA), may also be interested in acquiring offshore wind from leases expected to be awarded later this year off the end of Long Island. (In July, NYSERDA requested that LIPA postpone consideration of offshore wind proposals until a statewide wind blueprint and clean energy standard were released.) Most of the energy to meet the state’s ambitious renewable energy goal is expected to come from offshore wind. A similar welcoming sign for offshore wind was established last month in Massachusetts when Governor Charlie Barker signed into law legislation that required

Europeans Arrive to Help U.S. Companies Another factor that has promoted the offshore wind industry in the United States is the entry of European companies experienced in the already well-developed industry in Europe. For example, DONG Energy, the largest developer of major wind farms in Europe, has acquired two leased areas, one off Massachusetts and one off the coast of New Jersey. U.S. Wind, a subsidiary of Italian energy firm Renexia, has purchased the lease off the coast of Maryland. Maryland has also supported offshore wind by enacting legislation establishing a system of ocean renewable energy credits (ORECs)—modeled on New Jersey legislation—while capping the price Maryland residents and businesses would have to pay. Copenhagen Infrastructure, another Danish company, just acquired a 100 percent interest from Offshore MW LLC in a leased area just south of Massachusetts. Both DONG Energy and Copenhagen Infrastructure are poised to participate in the upcoming Massachusetts utility tenders for offshore wind. Deepwater Wind is a success because of the persistence of its leadership team, the experience of its partners, and its supporters in the state. In summary, the success of this project amounts to a welcoming beacon for wind farms all along the Atlantic Seaboard, bringing clean, renewable energy to the grid and consumers.

Originally published by Blank Rome LLP in Mainbrace, September 2016 No. 4 November 2016 // Marine Log 23

Shipyards Alan Sprott, Vice President, Vigor, next to a Grattix box at Vigor that removes heavy metals in stormwater from roof runoff

Going The Extra

Green Mile

Vigor’s environmental initiatives are part of its corporate culture


he U.S. Pacific Northwest is known for its lush green forests, crisp rolling rivers and majestic snow-topped mountains. So how do you operate a shipbuilding, repair and conversion business in these pristine surroundings? “A key value of the organizational culture that we are cultivating is respect, which encompasses respect for the individual, respect for the community, and respect for the environment,” says Alan Sprott, Vice President, Vigor. “Our environmental initiatives are a way for Vigor to re-enforce this value throughout the organization by walking our talk,” he says. The Portland, OR-based shipyard group has 12 facilities in the Pacific Northwest and Alaska, employing some 2,500 workers. Vigor can handle just about any major ship repair—it operates one of the largest dry docks in North America—while churning out everything from steel deck barges to fireboats to Washington State’s largest class of car ferries. Within the last decade, Vigor has grown by leaps and bounds through a series of key mergers and acquisitions, with Oregon Iron 24 Marine Log // November 2016

Works, Alaska Ship & Dry Dock, Seward Ship’s Drydock, and Kvichak Marine all becoming part of the company. Sprott says that as a result of the growth, there has been a focus on “building the company’s culture as a way to integrate people from multiple organizations, and ultimately maximize the benefits of our growth.”

Walking the Talk Even though it was in full compliance with all federal, state and local environmental regulations, this past spring Vigor took the extra step of signing an agreement with Portland-based community activists Neighbors for Clean Air to lower even further odor and emission levels from its operations. Sprott says Vigor wanted to engage directly with the community on the issues, and the group Neighbors for Clean Air became its lead partner in this effort along with the University of Portland environmental science department. The results of the effort were a formal agreement identifying specific measures for Vigor to implement to reduce odors and toxic emissions associated with its operations.

Vigor agreed to discontinue the operation of a used oil processing plant causing nuisance odors, limit dry abrasive blasting activities to reduce particulate emissions, cold iron vessels at the shipyard, and only burn natural gas in facility boilers. “Vigor’s principle goal with regard to the environment is to act responsibly and practice good stewardship,” says Sprott. “This naturally leads to a reduced footprint. But it also results in lower costs, safer working conditions, higher productivity, improved community relations, reduced legacy liability, and better financial performance for the company.” Furthermore, Vigor currently has two habitat projects in the works at its Seattle and Portland facilities. In Seattle, Vigor is building a three-acre shallow water habitat in an unused area of the shipyard. The primary benefit of this project is to provide a vital resting place for juvenile salmon to acclimate to salt water before migrating to the sea. The second project, in Portland, is a collaborative effort with the University of Portland to establish micro-habitats in an industrial setting—in this case establishing a habitat for the Monarch butterfly.

Shipbuilding Contracts

2,000 Vessels. $69 Billion of Shipbuilding Contracts. One Exclusive Database. We do the work for you. We monitor shipyards around North America.

Subscribe Today and Save $100 with Code ML100*





Not available anywhere else from a single source; new – expanded data

Sort by keyword or a variety of data

Find shipbuilding orders and deliveries from around North America

From your laptop or mobile device

*Save $100 off annual subscriptions. Code expires March 31, 2017.

Shipyards Kirby’s 185-02 was built by Gunderson Marine, the ATB tug was built by Nichols Brothers

Compiled by Marine Log Staff

Shipyards Sharpen Their Pencils

Slump in offshore market pushes aggressive pricing for newbuilds


ith the slump in new exploration and development in the offshore oil and gas sector, shipyards along the U.S. Gulf Coast that have traditionally been focused on building and repairing vessels working in the oil patch have moved to diversify their portfolios and sharpened their pencils when it comes to pricing their bids. If you’re a vessel operator in need of new equipment this might be the right time to buy. One of those companies is Houston-based Kirby Corporation, which is one of the largest owners of coastal tank barges, with some 69 units in operation. It expects to spend a total of between $230 million and $250 million in capital investment this year. In recently announcing its third quarter results ended September 30, Kirby says that capital spending in 2016 includes about $10 million for the construction of seven inland tank barges, five of which are scheduled to deliver this year, and one inland towboat. About another $100 million in capital 26 Marine Log // November 2016

spending is for progress payments on new coastal equipment, including one 185,000 barrel coastal ATB, two 155,000 barrel coastal ATBs, two 4,900 hp coastal tugboats, and a new coastal petrochemical tank barge. Kirby says the balance of $120 million to $140 million “is primarily for capital

Yards have diversified portfolios & sharpened their pencils when it comes to pricing bids upgrades and improvements to existing inland and coastal marine equipment and facilities, as well as diesel engine services facilities.” Kirby has reportedly requested bids for the construction of as many as

eight tugs for its fleet. The low bidder, according to sources, was expected to be a Gulf Coast shipyard. Currently, two 155,000 bbl Articulated Tug Barges for Kirby are being built at Fincantieri Bay Shipbuilding in Sturgeon Bay, WI. Kirby reports that the two units cost about $65 million each and expects delivery of one in the second half of this year and the other in 2017. It is also building one 35,000 bbl petrochemical barge, which will join the Kirby Offshore Marine fleet in 2017, as well as two 4,900 hp tugs being built at Nichols Brothers Boat Builders, Whidbey Island, WA, for delivery next year. Nichols Brothers Boat Builders (NBBB) had delivered two powerful 10,000 hp ATB tugs, the Tina Pyne and Nancy Peterkin, to Kirby in the last 12 months. The two ATB tugs were part of an order backlog that will keep NBBB busy until mid 2018. Besides the two line haul tugs for Kirby, NBBB is also building two ATB tugs, two cruise ships and two superstructures for WETA high-speed ferries under construction or on order.

Viega MegaPress®

Keeping offshore support strong

Precision and safety are essential for ocean-based support vessels, drill ships, and oil platforms. Reducing time spent in repairs and labor expenses mean you can focus on doing your job and keeping your crew safe. But can you accomplish that when your work environment is floating on a volatile sea? With Viega, you can. • Only Viega offers the widest range of marine-approved press systems in the industry • No flame means no welding, hot work permits, chemists or gas freeing • Press connections can be made on live systems in seconds • Suitable for ASTM and DIN spec piping

For more information, call 800-976-9819 or visit T H E




P L U M B I N G ,







Get Internet at sea… at 30% savings



14 -time Awa r d W i n n e r

Give your business a competitive edge with

TracPhone Vip-series Advantage Bundles ®

All bundles include: • Award-winning TracPhone VIP-series SATCOM system • 5 GB/month at speeds up to 4 Mbps • Global connectivity • News delivered daily via IP-MobileCast

3 advanced SATCOM solutions starting

• Secure myKVH portal and management tools

as low as $1,399 per month

• Extended 5 year warranty and global support

Choose the bundle that’s right for you at:

Check out the Bundles!


*KVH is the world’s No. 1 maritime VSAT supplier as measured by vessels equipped with mini-VSAT Broadband service, according to NSR’s Maritime SATCOM Markets, 4th Edition, June 2016, and the COMSYS Maritime VSAT Report, 4th Edition, March 2015. ©2016 KVH Industries, Inc. KVH, TracPhone, myKVH, IP-MobileCast, and the unique light-colored dome with dark contrasting baseplate are trademarks of KVH Industries, Inc. mini-VSAT Broadband is a service mark of KVH Industries, Inc. Subject to change without notice.

Shipyards This month, NBBB will deliver a unique multi-purpose passenger cargo vessel for American Samoa. Called the M/V Manu’atele, the 140 ft x 38 ft vessel is certified as a USCG Subchapter T and Subchapter I vessel, and built to ABS load line, but not classed. NBBB CEO Gavin Higgins says the shipbuilder had to compete against a number of West Coast yards for the contract. Higgins says the Manu’atele is fully SOLAS compliant, carrying both life boats as well as life rafts, a full suite of navigation and communications, fire suits, etc. He says that the Manu’atele was the first vessel of her kind, so there were a number of regulatory and shipbuilding challenges that required close cooperation between the shipyard, the Coast Guard, naval architects Elliott Bay Design Group, and the owners. The Manu’atele will sail about 15 days to Hawaii, then another 15 days to American Samoa for her delivery. Higgins also says that the first of the two 100-passenger cruise vessels for Lindblad is “coming along nicely.” The hull and first two decks of superstructure are complete and NBBB anticipates completing all the steel before the end of the year. Jamestown Metal Marine is busy outfitting the first two decks.

Gunderson Marine Expands Outfitting and Topside Repair “We have been historically known for our strength in top quality hull construction on heavy lift deck barges,” says Rick Hunt, Director of Marine Project Development, Gunderson Marine. “However, recently we have expanded our capability and expertise in detailed installation of piping systems and topside outfitting.” That expertise can be traced to Portland, OR-based Gunderson Marine’s recent delivery of two 185,000 bbl oil/chemical ATB tank

Manu’atele is the first vessel of her kind

barges for Kirby Offshore Marine. “Our 1,200-foot outfitting dock is fully functional, served by two mobile whirly cranes and we have recently completed several topside repair projects, such as the addition of a 21-foot tall hopper bin and installation of a wood wear deck on the deck barge Sitka for the wood chip market,” he says. Another interesting project was the lashing and final outfitting of the riverboat Columbia Queen onto the deck barge Columbia Newark for its transit from Portland through the Panama Canal to New Orleans.

Marine Brakes That Work! Oil Shear Brakes for Marine Applications Totally Enclosed—Marine Duty No Adjustment—Ever! No Regular Maintenance Years of Maintenance Free Service

Ask About Hazardous Duty Brakes Cranes Dredges Travelifts Winches Hoists Anchors Mooring Loaders Trippers

Booth #1960 Force Control Industries, Inc. Fairfield, Ohio USA Phone: 513-868-0900

November 2016 // Marine Log 29

Shipyards by increasing automation in the production process to improve efficiency. “Our focus is on safety, integrity, innovation and quality to consistently deliver a product that exceeds our customer’s expectations.” Hunt points to recent capital investments at the yard that will help continue that goal. Those capital investments include: • Automated panel Sub-Arc Gantry; • Automated high-definition plasma CNC-controlled structural profile cutting machine; • The addition of another high-definition plasma burning machine with beveling, drilling, tapping capabilities; • Automated pipe bender; • Automated CNC-controlled press brake; and • Advances in efficiency gained by successful implementation of ShipConstructor with corporate ERP system. “Implementation of these automated processes allows numerous fabrication processes on our panel line to be repeatable, more efficient, and allows our crew of skilled tradesmen to focus on other value added areas of production,” says Hunt.

Edison Chouest and Damen will team up to build 13 escort tugs

Vane Brothers Fleet Expansion Continues On the new construction side, Gunderson Marine has a backlog that stretches into mid-2018, with orders for two 81,900 bbl ATB ocean tank barges and three 114,000 bbl oil spill recovery barges. The two ATB barges for Seattle-based Harley Marine Services, will be delivered in August 2017 and December 2017, respectively. The oil spill recovery barges will be delivered in December 2017, February 2018 and April 2018, respectively. “We are currently engaged in discussions with several of our customers to extend that backlog even further,” says Hunt. Gunderson Marine has been making some changes at the shipyard

Professional DNV GL Approved NMEA 0183 Interface

Another owner aggressively building is Vane Brothers, Baltimore, MD. Vane, which operates the largest number of coastal tank barges, now has three ongoing new construction programs for three different classes of tugs. In early September, it placed an order for three additional 3,000 hp tugs at Chesapeake Shipbuilding, Salisbury, MD, bringing the total number of tugs ordered at the yard to 20 since July 2008. A new class of Vane Brothers’ ATB tug was ordered from Conrad Orange, Orange, TX, this past summer. Designed by naval architect and marine engineering firm Castleman Maritime, LLC, Clear

Achieve Quietness Increase productivity and safety with Pyrotek thermal and acoustic insulation systems for marine applications. Our advanced technologies are tested, certified and backed by global resources with local support. • Vibration damping • Noise barriers and absorbers • Thermal control and fire protection • Mufflers, exhausts and panel systems

Several models – 30 years experience Custom made ”talker/sentence” Dealer Producer Marina Mile Business Park, Fort Lauderdale, Florida Phone: 954 583 5700 • Fax: 954 583 3699 Email:

30 Marine Log // November 2016

6419 Molde, Norway Phone: (+47) 71 20 24 00 E-mail: Visit us at SNAME, Pacific Marine Expo and the International WorkBoat Show

Shipyards Shores, TX, the Assateague Class, will be 110 ft x 38 ft x 17 ft, with delivery of the first in late 2017, followed by two more in 2018. The three tugs will be mated with three 800 Series 80,000 bbl tank barges being built by Conrad. Each tug will have a raised forecastle and admeasure less than 500 gross tons. Each tug will be powered by two Cummins QSK-60 diesels driving open propellers through Reintjes reduction gears. The tugs will connect to barges via a Beacon Finland JAK-700 coupling system. The M/V Delaware, the third of eight 4,200 hp tugs in the Elizabeth Anne Class, is expected to be delivered by St. Johns Ship Building, Palatka, FL, this winter. Four more of the 100 ft by 34 ft tugs will be delivered next year.

Vigor Delivers Fireboat; Eyes Longliner Market This past October, the San Francisco Fire Department received a major boost in its capability to fight fires along the waterfront when it commissioned St. Francis, a state-of-the-art 88 ft fireboat designed by Jensen Maritime and built by Portland-based Vigor. The fireboat can also play a critical role in saving lives and protecting property during natural disasters, such as earthquakes. The St. Francis has the capability to act as a mobile pumping station if the city’s water mains are knocked out. Such was the case in 1989, when the deadly Loma Prieta earthquake killed 63 people and caused $7 billion in damage. With a fire raging through San Francisco’s Marine District and the city’s water mains out, one of San Francisco’s fireboats acted as a pumping station, bringing water from the Bay to help firefighters save countless lives and homes. At the October 17 commissioning, San Francisco Mayor Ed Lee

The Harvey Stone was built by Eastern

tweeted that the “newly commissioned St. Francis adds to the fleet of emergency response vehicles that helps @sffdpio (San Francisco Fire Department) keep our City and residents safe.” The largest shipyard group in the Pacific Northwest, Vigor (see “Going the extra green mile” on page 24) has a diverse backlog, including three classes of ferries for operators in Washington State, California and Alaska. As we reported in “Go, North!” (in our October 2016 issue, p. 27), Vigor has unveiled a 144 ft x 33 ft 6 in freezer longliner design that it hopes will reel in some new orders for fishing vessels.

We Deliver.

Safety, quality, performance, and projects that are on-time and on-budget. We value your reputation as much as our own. Our reputation has been built over 2,000 vessels and our customer’s success. ATB’s, Deck, Tank, Dry Cargo, & Specialty Barges West Coast 800 253 4350 Gulf Coast 504 722 3526

November 2016 // Marine Log 31

Media Feature Planner 2017 / Editorial calendar JANUARY

CLOSING DATE: 12/15/16


• PROPULSION REPORT Engines, Propellers & Gears

Bonus Distribution


• CEO SPOTLIGHT Interview with a Leading Industry Voice

ASNE Day 2017, Feb. 14-16, Arlington, VA European Shipping Week 2017, Feb. 27-Mar. 3, Brussels, Belgium






Bonus Distribution

• COMMERCIAL FISHING Rebuilding the Fleet

Seatrade Cruise Global, Mar. 13-16, Fort Lauderdale, FL



CLOSING DATE: 02/17/17



Bonus Distribution


CMA Shipping 2017, Mar. 20-22, Stamford, CT

• COMMUNICATIONS Lowering Costs, Increasing Options

Gastech 2017, Apr. 4-7, Tokyo, Japan

• CEO SPOTLIGHT Interview with a Leading Industry Voice

Workboat Maintenance & Repair, April 4-6 , 2017, New Orleans, LA



CLOSING DATE: 03/16/17


•O  FFSHORE Energy report

Bonus Distribution

• Tugs & Barges Market Overview

OTC 2017, May 1-4, Houston, TX

• DECK TECH Cranes to Winches

Marine Log Tugs & Barges 2017, May 2017, TBD

• Inland Waterways

Inland Marine Expo, May 22-24, TBD

• TRAINING The Next Generation of Mariners


CLOSING DATE: 04/14/17


• European Tech Report

Bonus Distribution


Nor-shipping 2017, May 30-Jun. 2, Oslo, Norway


Electric & Marine Hybrid World Expo, Jun. 6-8, Amsterdam, The Netherlands

• Shipbuilder’s guide • CEO SPOTLIGHT Interview with a Leading Industry Voice • MARINE SALVAGE & SAFETY

Marine Maintenance World Expo & Conf., Jun. 6-8, Amsterdam, The Netherlands Marine Money Week, Jun. 2017, New York, NY


CLOSING DATE: 05/16/17 •A  nnual Yearbook & Maritime Review

Current Global Trends, Commercial & Naval Shipbuilding Statistics & Outlook • HULL & TANK COATINGS • PRODUCTS & SERVICES OF THE YEAR Innovative & Groundbreaking • iNLAND WATERWAYS

32 Marine Log // November 2016



CLOSING DATE: 06/15/17


• Maritime education & training guide • Gulf Coast headliner • MAINTENANCE & SHIP REPAIR • CEO SPOTLIGHT Interview with a Leading Industry Voice • MARINE SALVAGE & SAFETY


CLOSING DATE: 07/14/17


• ANNUAL GREEN ISSUE Focusing on Best Practices, Best Environmental Technology

Bonus Distribution

• PATROL BOAT GUIDE Highlighting the Latest Designs

Interferry 2017, Oct. 2017, Split, Croatia CFOA Conference 2017, TBD

• FERRY OUTLOOK Global Ferry Development • Inland Waterways


CLOSING DATE: 08/15/17


• Great Lakes & CANADA MARITIME MARKETS Regional Focus

Bonus Distribution


Danish Maritime Days, Oct. 2017, Copenhagen, Denmark SNAME Maritime Convention, TBD, Houston, TX Kormarine 2017, Oct. 24-27, Busan, Korea



CLOSING DATE: 09/15/17 • Ferry outlook report

Bonus Distribution


Europort 2017, Nov. 7-10, Rotterdam, The Netherlands




Pacific Marine Expo, November 2017, Seattle, WA

• PROPULSION REPORT Engines, Propellers & Gears



CLOSING DATE: 10/17/17


•a  nnual Offshore service vessel review

Bonus Distribution

• Workboats New Designs and Technology

International Workboat Show, TBA, New Orleans, LA

• DECK machinery review • CEO SPOTLIGHT Interview with a Leading Industry Voice • MARINE SALVAGE & SAFETY


CLOSING DATE: 11/16/17


• Voices of the Industry – Thought Leadership • Atlantic Coast MARITIME INDUSTRIES • THE BEST SHIPS OF 2017 Award-winning Vessels • Inland Waterways

November 2016 // Marine Log 33

Shipyards Eastern Shipbuilding Grabs Biggest Sugar Plum The biggest shipbuilding sugar plum of the season was plucked by Eastern Shipbuilding Group, Panama City, FL, when it was authorized by the U.S. Coast Guard to move ahead with the detail design of the first Offshore Patrol Cutter (OPC) this past October. Neither of the two other finalists for the OPC contract — GD Bath Iron Works and

Auxiliary Propulsion/ “Take Home” Capability

The Coast Guard plans to acquire 25 OPCs. The timing of the OPC couldn’t be better for Eastern Shipbuilding, which has been busy working off its enormous backlog of tugs, towboats, and sophisticated offshore vessels. One of those sophisticated offshore vessels was the M/V Harvey Stone (see this month’s cover), delivered this past summer to Harvey Gulf International Marine, LLC, New Orleans, LA. Built for Shell, the Harvey Stone is a unique Multi-Purpose Field Support Vessel (MPFSV), based on a 6400 Rampage design by Robert Allan, Ltd., Vancouver, BC, Canada. The 212 ft 7 in. x 59 ft 1 in. MPSV is a mighty little tug, with 121 tons bollard pull and a total of 9,374 hp. What makes it particularly noteworthy is its hybrid propulsion system. It has two GE Marine 12V250MDC IMO II, EPA Tier 4i marine diesel engines, each with Main PTI/PTO clutches, with two Reintjes LAF 3414p HL marine gears, and two 1,000 kW induction shaft motors/generators with a DC bus via bi-directional variable frequency drives. In early October, Eastern Shipbuilding’s Allanton, FL, shipyard launched the Ellis Island, the barge component of the Articulated Tug & Barge (ATB) hopper dredge it has under construction for Great Lakes Dredge & Dock Corporation. Great Lakes Dredge & Dock President David Simonelli, called the Ellis Island the “most efficient hopper dredge in the U.S. fleet.” The 433 ft x 92 ft Ellis Island has a hopper volume of 15,000 cubic yards. The vessel’s two 36-inch diameter drag arms are capable of mining sand from the ocean floor 122 feet below the water’s surface. The tug portion of the vessel, the Douglas Mackie, is expected to launch later this year. The shipyard expects to hold sea trials on the ATB vessel next March, and Great Lakes Dredge & Dock expects dredging operations to commence in the second quarter.

Effective Thrust in Currents

Blount Boats Aggressively Pursuing New Construction

Bollinger Shipyards—filed a protest with the Government Accountability Office within the required 10 days from announcement of the award. If BIW or Bollinger had filed a protest, the amounts of their bids would have been made public. The full Phase II award (valued at $110.29 million and with a potential value of $2.38 billion) includes options for production of the lead OPC and up to eight follow-on cutters.



HT Series

Low Submergence Requirement Small Hull Penetrations

JT Series

Waterjet Bow/Stern Thrusters Up to 2,200HP

34 Marine Log // November 2016

Proudly Made in the USA!

On the East Coast, the pace of work has slowed at Blount Boats, Warren, RI, following the deliver y of the 100 ft, 318-passenger M/V Skyview to Chicago’s Shoreline Sightseeing this past summer, and the delivery of the Atlantic Pioneer, the first U.S.-flagged Crew Transfer Vessel (CTV) for Atlantic Wind Transfer this past spring. “We’re aggressively pursuing new construction work,” says Julie Blount, Executive

Shipyards Vice President, Blount Boats. “We lost out in our bid for the Hornblower New York ferry project,” says Blount, “but we do have another undisclosed new construction project in the yard.” Blount also says that Blount Boats has been repairing 47 ft MLBs for the U.S. Coast Guard under three contracts. With Deepwater’s Block Island Wind Farm set to start commercial operations this month, Blount is optimistic that additional opportunities to build Crew Transfer Vessels such as the Atlantic Pioneer will arise. Blount Boats has a license agreement to build the entire portfolio of Isle of Wightbased South Boats IOW’s portfolio. The company is the leading designer and builder of CTVs for the European offshore wind farm market.

compliant eng ines using exhaust gas recirculation engines.

C&C Marine C&C Marine and Repair, Belle Chasse, LA, has completed a 200 ft x 35 ft x 12 ft double-skin tank barge, according to naval architectural and marine engineering firm The Shearer Group, Inc., Seabrook, TX, the contract designer for the barge. The double-skin tank barge, which is

the first in a series that will be built by C&C Marine, is a flush deck barge with externally framed tanks and certified as a Subchapter O, USCG, acid barge.

Progress on Citywide Ferries A series of new 85 ft, 150-passenger aluminum catamaran ferries are quickly taking shape at both Metal Shark Aluminum Boats, Jeanerette, LA, and Horizon Shipbuilding, Bayou LaBatre, AL, for New York City. The

Conrad Reels In Tug, Barge Contracts While it was one of the shipyards in the running to build the new Staten Island ferries for the NYDOT, Morgan City, LA-headquartered Conrad Shipyard has, over the last six months, been able to secure a mix of government and commercial newbuild contracts for tug and barge construction. Besides the contracts with Vane Brothers, Conrad also won orders to build two deck barges and one crane barge for the United States Army Corps of Engineers. On the commercial side, Conrad Shipyard has inked a deal with Seattle-based Harley Marine Services of Seattle, WA, for two 4,560 hp ATB tugs. The two new tugs will be 116-feet in length, will be powered by GE 6L250 Tier Four diesel engines rated at 2,280 hp engines, and were designed by naval architects Entech Design of New Orleans. Both vessels are scheduled for delivery in 2017. Me a nw h i l e , C o n r a d S h i p y a r d h a s grabbed another contract from a West Coast owner. Young Brothers, Limited, Hawaii’s largest inter-island cargo service provider, has signed a contract valued at nearly $80 million with Conrad Shipyard, Morgan City, LA, covering construction of four new tugs. The first tug will be delivered in the first quarter of 2018, and the fourth by the first quarter of 2019. The 6,000 hp, 123 ft x 36.5 ft tugs are designed to match with Young Brothers’ fleet of modern high capacity barges (delivered from 2007 to 2010). To be known as the Kapena Class, the tugs will be built to Damen Stan 3711 design and will be powered by General Electric, 8L250MDC, EPA Tier 4 emissions November 2016 // Marine Log 35

Shipyards boats will be operated by Hornblower NY for the new Citywide Ferry Service, which will add five new routes on the East River starting next summer. Last month, the hull of the Capt. Brian A. McAllister, the first of two 100 ft escort tugs for McAllister Towing & Transportation, was flipped and set on the shipbuilding ways at Horizon Shipbuilding. McAllister could build as many as four of the tugs. Prior to the flip, Horizon installed all

major pipe runs and manifolds, fabrication and installation of cable trays and bulkhead penetrations and fender installation. With the hull now set on the ways, Horizon will be able to set the pre-fabricated and outfitted superstructure. D e s i g n e d by Jen s en Ma r it ime , the 100 ft x 40 ft escort/rescue tugs are powered by two Caterpillar 3516E Tier 4 engines with Schottel SRP4000 FP azimuth thrusters. The package will produce a total of 6,770 hp and

80 metric tons of bollard pull. The tugs are classified ABS Maltese Cross A-1 Towing, Escort Service, FiFi 1 and Maltese Cross AMS. The Capt. Brian A. McAllister is scheduled for a spring 2017 delivery from the shipyard.

Chouest Orders 13 Escort Tugs This past July, The Alaska Journal reported that Edison Chouest Offshore (ECO) would add new vessels to its fleet when it takes over the oil tanker escort and spill response duties out of Valdez in July 2018. The newspaper quoted Linda Leary, President of Edison Chouest Alaska subsidiary Fairweather LLC as saying that ECO would take advantage of its in-house shipbuilding capabilities to execute its 10-year ship escortresponse vessel system, or SERVS, contract with Aleyska Pipeline Service Co. That came true in a big way last month, when ECO announced it would team with Damen Shipyards to build a total of 13 heavy duty mooring assistance and escort tugs. Based on proven Damen designs, the tugs would be deployed for two new contracts won by ECO.

ECO would take advantage of its in-house shipbuilding capabilities The first of these is a contract won by ECO earlier this year with a new Corpus Christi, TX, LNG export terminal. The agreement is for the supply of four escort tugs with a bollard pull of 80 tonnes, to operate at the terminal in Texas, which is currently under construction. The Damen tugs will be of the well proven escort/mooring ASD 3212 design. The other is for SERVS, which will require nine, high-powered escort tugs. Damen and ECO will work together to deliver four more ASD 3212 tugs with a bollard pull of 70 tonnes each and five of the most powerful ASD tugs ever built — the ASD 4517. With a bollard pull of more than 150 tonnes, the ASD 4517 is a joint Damen and ECO-developed escort tug specifically designed for Prince William Sound. The vessels will be built at ECO’s shipyards on the Gulf Coast and Damen’s support and expertise. 36 Marine Log // November 2016


Designed To

save lives

By Damon Vaughan, Senior Vice President, Tidal Marine

Shutterstock/Al Mueller

Subchapter M: Historic Disaster Paves Way to New Safety Standards


t was truly a nightmare. They were driving home from work, social events, and a football game when they lost their lives, plunging some 80 feet from a bridge into the dark, rough waters of a Texas waterway known as the Laguna Madre. The eight unsuspecting victims were driving across what is now the Queen Isabella Memorial Causeway, which connects South Padre Island to the Texas mainland. Three midsections of the bridge collapsed into the bay after a barge carrying a full load of steel struck a bridge column, according to the Houston Chronicle. The towboat guiding the barge lost control of the vessel, resulting in it colliding

with a bridge support pillar. The tragic accident led to years of back and forth over new safety recommendations for workboats. Finally, this past June, the U.S. Coast Guard issued a new regulation known as Subchapter M, which creates a comprehensive safety guide and sets compliance rules, standards, and oversight for towing vessels. With these news rules in effect, safety and preparation have been paramount this year for the owners and operators of brownwater vessels, particularly tug boats and towboats. In this article, we examine the history behind these new safety standards, what the November 2016 // MARINE LOG 37

The audience you want, The ROI you need. 98% of subscribers act on ads and articles seen in Marine Log

Reaching 117,880+ maritime professionals each month*

Sell to this unique audience exclusively through Marine Log Media The Marine Log brand connects you with decision-makers through the magazine, website, conferences, e-newsletters, iOS app, and social media. *2016 Marine Log Readership Survey, pass along readership

Towboats regulations mean for workboats, and the ultimate benefits to vessel owners and operators, their employees, and the industry as a whole.

Stopping History from Repeating Itself Accidents like the one described above played a major role in the rulemaking. In 2004, the U.S. Congress kicked off the initiative with a safety directive to the Secretary of Homeland Security concerning accident rates among these vessels. During the 11-year period leading up to 2013, accidents involving towboats led to 18 deaths and 37 injuries on average, annually. The cost of those fatalities was a whopping $165 million to the marine industry, according to the Federal Register notice containing the final rule. Property damage associated with those accidents cost the industry another $50 million, while related injuries totaled $25 million in expenses. In issuing Subchapter M, the U.S. Coast Guard referenced the bridge accident near South Padre Island, as well as a separate incident in Weber, OK, as devastating. During the morning rush hour on May 26, 2002, a 485-foot barge collided with the piling of a highway bridge over the Arkansas River, killing 14 people. The accident sent nine cars and trucks, including semis, tumbling 60 feet into the river, according to the New York Times. Witnesses attributed the accident to an incapacitated pilot of the towboat that was pushing the barge, who they said fell and blacked out just before the crash. The impact of the collision caused a 600-foot-long section of the four-lane highway to come crashing down into the river below. In both the South Padre Island and Arkansas River instances, crew on the vessels involved likely did not realize the severity of the collisions until it was too late. In both instances, cars and trucks continued to drive over the bridges, not realizing that sections of the bridge were no longer there to carry them safely across the waterways.


Booth #3154

Fortunately, in our society, we look to history to learn from our mistakes. The Coast Guard’s Subchapter M regulations may have been born out of tragedy, but these new safety standards will protect the lives of vessel owners, operators and innocent bystanders moving forward.

Subchapter M – The Ins and Outs Published June 20, 2016 by the U.S. Coast Guard, the Subchapter M regulation applies to all towing vessels operating in the U.S. that are greater than 26 feet in length, including those carrying oil or other hazardous materials. While the regulations are immediately effective, many parts are deferred for two years or after the vessel is issued a Certificate of Inspection from the Coast Guard. Any new vessel built after July 20, 2017 must receive a Certificate of Inspection before operating. A grandfather provision relieves some older vessels from meeting these requirements. The regulation lays out rules for inspection, as well as new guidelines for design, construction, equipment, and operations. For example, the Coast Guard will require new vessels to ensure they have upgraded propulsion systems, as well as revamped electrical, steering, and navigation systems. Basically, the rule requires towing vessel operators to undergo annual Coast Guard inspections or implement a Coast Guardapproved Towing Safety Management System (TSMS). The TSMS, when implemented properly, is intended to reduce accidents and equipment breakdowns. In fact, the Coast Guard encourages vessel operators to choose the TSMS option as they say it will improve safety and reduce costs. Further, the Coast Guard explained in documentation related to the rulemaking that those who choose the TSMS option will enjoy more flexibility in completing surveys and


International WorkBoat Show Visit us at Booth #2427 Photo courtesy of F/V Seabrooke Enterprises


Our Core Purpose... is to Create. (401) 253-4318 b r i s to l h a r b o rg ro u p . co m

R.W. Fernstrum is committed to providing long-lasting, quality cooling systems. Our sales and engineering team will work with you to custom design a solution that meets the needs of your vessel and operating conditions.


WEKA Boxcooler® 906.863.5553

November 2016 // Marine Log 39


audits, and shorter Coast Guard visits and exams. On the flip side, vessel owners and operators, who choose not to implement a TSMS will be subject to a more comprehensive Coast Guard inspection and follow up visits. The annual inspection fee is $1,030 per vessel. The American Waterway Operators call Subchapter M “the most important rulemaking ever to affect the tugboat and towboat industry.” The association encourages its members to implement the TSMS form of compliance because it will “promote continuous regulatory compliance and prevent accidents, but also provide vessel operators with maximum operational flexibility under the new requirements.” It’s up to the vessel owners and operators to choose which method of compliance works best for them. The TSMS certification could mean heavy work up front, but smooth sailing in terms of meeting compliance standards.

Benefits of Compliance Though the initial costs associated with this regulation and new burden on vessel owners and operators to get up to speed may seem onerous at first, there’s no doubt it will lead to many benefits for the

industry. Vessel operators, their employees, civilians, as well as the environment will experience reduced risk exposure to accidents, less congested waterways, fewer delays, fewer reports of business interruption, and fewer incidents of lost productivity. From an insurance perspective, the new rule brings benefits as well. As tugs and tow boats meet the new safety standards set by Subchapter M, their risk exposure will naturally decrease. This improved transparency into the condition and history of tugs and towboats on the waterways will help insurers in underwriting vessels by providing a more accurate assessment of their risk exposures. Further, vessel owners and operators can reduce their risk exposures even more meaningfully by tapping into the expertise of their insurer’s risk management units. Marine risk engineers are specially trained in safety and can offer suggestions to reduce any onboard risks to crew or the vessel. New regulations might mean increased work load and expense at the outset, but with Subchapter M, vessel owners and operators should focus on the benefits. This rulemaking came from tragedy and is ultimately designed to save lives. Compliance will improve safety for crew members and bystanders, and keep these vessels operating safely for many years to come.

About the Author: Damon Vaughan is a Senior Vice President at Tidal Marine, a commercial marine insurance program administered by Venture Insurance Programs. He has specialized in marine business, both primary and reinsurance for 20 years, working in London, Bermuda, and New York. Tidal covers a variety of commercial marine vessels including supply, utility, crew boats, tugs and barges.

40 Marine Log // November 2016

Shutterstock/Karla Caspari

Under Subchapter M, any towboat built after July 20, 2017 must have a COI to operate

PROFILE Once Sarah heard about the Citywide Ferry project, she knew she wanted to be a part of it




Department of Energy


By Shirley Del Valle, Managing Editor, Marine Log

itywide Ferry’s fleet of new ferries are currently under construction at Horizon Shipbuilding and Metal Shark Aluminum Boats. The project will see the construction and delivery of 19 ferries in less than two years. Marine Log Managing Editor Shirley Del Valle chats with Sarah McDonald, Special Projects Coordinator of vessel construction, charged for ensuring the new ferries are built on time and on budget.

SM: I am currently a special projects coordinator of vessel construction for Citywide Ferry. I am working with our project management team to ensure that the vessels are built according to the specification and will be delivered on time and within budget. One of my biggest duties is regarding the owner’s furnished equipment that we are responsible in supplying to the shipyards. Some of these items include the main engines, gears, generators, propellers, seats, and the lighting and sound systems.

SHIRLEY DEL VALLE: Tell us about your maritime background. What attracted you to the industry?

SD: As a woman in the industry I’m always interested in hearing the experiences of other women. What has the response been like within the industry and at the shipyard?

Sarah McDonald: The deep love I have for our country’s Navy is in my blood. I was born and raised in San Diego, CA. As I grew up in a “Navy Town,” there was no way to get my mind off of the water. I was raised listening to my father’s sea stories from his time in the Navy and was constantly fishing with him on the water. San Diego’s Naval fleet was (and still is) one of my biggest obsessions. I attended the California Maritime Academy and received my Bachelor’s degree in Mechanical Engineering. While in college, I worked at BAE Systems San Diego Ship Repair and found a new love for vessel construction, renovation, and repair. One of my instructor’s knew of my steady interest in the industry and introduced me to Hornblower and the Citywide Ferry project that was underway. I was automatically fascinated by the project and knew it was something that I so badly wanted to be a part of. SD: What role are you currently playing in the Citywide Ferry fleet’s construction?

SM: To be completely honest, I firmly believe that if I don’t allow myself to be afraid of being a woman in the industry that I won’t stick out. When I throw on my hardhat and steel toe shoes and I am walking around the yard, there is no place that I feel more comfortable. I so strongly respect how dedicated and how hard both yards are working. You have to truly give respect to earn it. I don’t allow myself to be labeled as “the girl in the yard”; I am Sarah McDonald from Citywide Ferry, nothing more and nothing less. The most rewarding part about this industry is the vast amount of opportunities that are available. The Hornblower team is proud to be bringing such needed service to New York. New York City isn’t just a place where we work; it’s also the place where we live. The Hornblower motto is to create amazing experiences and we are promising that the Citywide Ferry project will be no different. November 2016 // Marine Log 41

Profile “I don’t allow myself to be labeled as ‘the girl in the yard’...”

bring NYC a premier ferry service. The team is a very dedicated group that absolutely loves our industry and is working day and night to truly make a difference. SD: The project is not only exciting, but also a difficult task given the tight schedule. So far, how are the teams meeting the challenge? SM: The biggest challenge of this project is the tight schedule. These vessels are still being designed at the same time as they are being built. Hornblower is working with very talented naval architects and two well-respected yards. Having two yards work side by side on the same project is by no means “normal” for the competitive industry. Both yards have been working full force for a couple of months now and are on schedule. Hornblower cannot wait to introduce a better commute to the underserved communities. These boats will be cruising up and down the New York waterways in no time.

SM: The excitement that everybody has for this project is nothing like I’ve ever seen before. The workers are truly curious about the project and don’t just see it as another boat being built. People do their best work when they believe in what they are doing. It is so evident that this project will change the way New York City transportation operates. Workers from the yards are constantly talking about the vacations that they are going to take to NYC just so they’ll be able to see their work in action. The Citywide team is working relentlessly to

SD: And finally, what is the best advice you’ve ever received? What advice would you give to anyone wanting to enter the industry? SM: My father who would always tell me to “batten down the hatches and continue full steam ahead.” It’s a way of saying prepare for the upcoming storm and keep moving forward. He has always assured me that there was nothing too big that I couldn’t face head on. Advice I would give to someone wanting to enter the maritime industry: “If you want it...go get it.”

To stay up-to-date on the construction progress of Citywide Ferry’s new fleet visit




42 Marine Log // November 2016

Hornblower NY/Citywide Ferry Services

SD: This is a HUGE project, not only for the City of New York, but also for the shipyards building the ferries, Horizon and Metal Shark. Can you tell us a bit about the work you’re doing with them?



Reboots CCF

Part II

Ropax operators can now take advantage of the program to build new vessels

By H. Clayton Cook, Cook Maritime Finance Editor’s note: In “MARAD ‘reboots’ CCF for Ropax ferries” published last month (ML October 2016, p.20), we noted that the most immediate beneficiaries of changes in interpretation to the Capital Construction Fund might be the shipyards that build Ropax vessels for public owner-operators. This month, H. Clayton Cook writes about some important new CCF tax deferral opportunities for existing and new Jones Act operators.



s a shipyard, how would you like an interest-free loan? The Capital Construction Fund (CCF) Program allows a shipyard to defer the payment of federal and state income taxes on the profits on vessel sales and vessel leasing and associated investment income. The program provides what is in effect an interest-free loan of monies that would otherwise be used to pay current taxes in exchange for the shipyard’s promise to use these monies for the construction of vessels to be employed in U.S. foreign, U.S. non-contiguous, Great Lakes, U.S. offshore, and, since 2007, U.S. short sea services (“Qualifying Trades”). The tax deferral is accomplished under the terms of a CCF Program contract between the U.S. Maritime Administration (MARAD) and the shipyard participant lists vessels that are under construction or are contemplated for construction for which the taxes on profits will be deferred (“Eligible Vessels”) and lists the vessels for which the

monies will be used for the construction of vessels for operations in Qualifying Trades (“Qualified Vessels”). When a shipyard sells or leases a Qualified Vessel for which tax deferred monies have been used, the shipyard cost basis is reduced by this measure, and the shipyard profit will be increased by this amount. However, the shipyard will be able to defer this tax by depositing this profit, adding to the CCF working capital account for use in the construction of a vessel or vessels for Qualifying Trades. Any shipyard that meets MARAD U.S. citizenship standards and owns or leases at least one U.S.-built, U.S.-flagged vessel operated in U.S. domestic or foreign commerce is qualified to contract with MARAD to participate in the CCF Program. A CCF Agreement Participant can shelter the profits from the construction of almost all vessels built for U.S. citizens (including those for the U.S. Coast Guard and military). The participant can deposit the amount by which he wishes to reduce his current year’s taxable income (or for its income for any prior taxable year for which a final tax return has not yet been filed). For example, instead of writing a check to the U.S. Treasury for $4 million on March 15, 2017, a shipyard will be writing a check for $10 million to its Depository, $4 million of which will be an interest-free loan from the U.S. Treasury. And the shipyard will be able to use this $10 million, and the tax deferred earnings on this $10 million, to build a new vessel for the shipyard’s own account or for November 2016 // Marine Log 43











POSEIDON+ – Up to 150 m3 / 40,000 GPD – Semi or Fully Automatic Operation – MODBUS Interface – Certified HMI/PLC Touch Screen Control System – Engineered For Dependability And User-Friendly Access – Class 1 Div 2 Area Classification Available

Over 30 Years Of Innovating. (801) 906-8840 Toll Free (800) 850-0123

Please come visit us: PACIFIC MARINE EXPO NOV 17-19 | BOOTH #1205 THE INT’L WORKBOAT SHOW NOV 30-DEC 2 | BOOTH #3616 FCI Watermakers: “Nov/Dec 2016 Marine Log”; 2-1/8"w x 9 1/2h"

44 Marine Log // November 2016

that of a customer, or to provide construction period financing or equity for vessel leasing transactions.

How Can a Shipyard Benefit General Dynamics NASSCO’s use of the CCF Program for working capital, and the Sun Oil Company/Sun Shipbuilding & Drydock Company 1970’s CCF leasing transactions are good examples of the range of shipyard CCF use alternatives. I served as the principal tax counsel to NASSCO and to Sun in the initiation of their respective CCF Program Agreements— and I then advised Sun on Program issues for almost 20 years. I have not served as counsel for NASSCO or Sun since 2000. NASSCO entered the CCF Program in 1988 and continues in the program today with reportedly one of the largest working capital accounts. NASSCO

opened the CCF Program for shipyard participation. Sun addressed the problem with leasing structures that involved the Sun Ship sale of each vessel at delivery to a newly formed Sun affiliate leasing company that then offered the vessel under a demise charter to the vessel operator customer. The Sun Leasing company vessels were financed by Sun with CCF Program equity and Title XI long-term debt. MARAD approved Sun Leasing investments in Sun customer “Sunoco” high yield credit card receivables. Sun then made additional Sun Leasing equity investments to create a tax-sheltered CCF sinking fund that was sufficient to retire the Title XI debt at a discount of as much as 30 percent. This enabled Sun Leasing to offer demise charter rates of as much as 30 percent below what would otherwise have been possible. Sun Leasing was

The MARAD expansion of ‘qualified trades’ to Ropax services opens the CCF program for long-established domestic East Coast operations

has apparently been able to defer the payment of federal and California income taxes for most of its shipbuilding projects during this almost 30-year period. And, the portfolio of NASSCO contracts for non-contiguous (Alaska, Hawaii and Puerto Rico) c o nve r s i o n s a n d n e w b u i l d i n g p r o j ects has been sufficient to cause MARAD to allow NASSCO to continue in these Program accumulations. NASSCO would apparently have been able to finance most or all of its current non-contiguous trade project construction with CCF Program monies. This would have enabled NASSCO to structure paymenton-delivery or similar contracts providing advantages in price comparisons with competing shipyards. This could be of significant importance in reducing purchaser customer vessel financing costs, perhaps especially in situations in which MARAD Title XI financing guaranteed debt was being employed for the purchaser’s permanent financing. Sun Oil Company entered the CCF Program in the mid-1970s with a substantial U.S. Jones Act tanker fleet and Sun Shipbuilding & Drydock Company, a shipyard affiliate for which financing structures for vessels being built for non-contiguous trade services were needed. MARAD had not yet

always successful in placing the Sun Ship vessels in this fashion. A CCF Program tax sheltered sinking fund financing structure similar to that used in the Sun Leasing 1970s transactions, was developed for the U.S. Navy Strategic Sealift Financing studies in a National Shipbuilding Workshop Program during 2008. Copies of the accompanying computer model are available for CCF Program commercial use today.

Existing Services, AMH & DUV The MARAD expansion of “qualified trades” to Ropax service opens the CCF Program for long-established domestic East Coast operations. The Connecticut/ Long Island Ropax services across Long Island Sound between Bridgeport and Port Jefferson, and Bridgeport and Orient Point, and to the Connecticut, Massachusetts and Rhode Island Ropax services to Block Island, Martha’s Vineyard, and Nantucket have, because of this MARAD change now, become CCF qualified. These vessel owner-operators can now retain the monies that they have been using to pay federal and state taxes, to employ these monies to retire existing vessel debt, and purchase new vessels, and create working capital for

Finance construction period financing. The potential for owner-operator increased liquidity using these interest-free federal and state government loans appears enormous. This change also creates CCF owneroperator eligibility for the long-discussed America’s Marine Highway (AMH) and Dual Use Vessel (DUV) projects. This should encourage new-entry owner-operator Ropax services for the AMH I-95, I-5 and I-10 corridors. Also, and perhaps of equal importance, this change may attract CCF leasing company financing (of the sort that Sun used for Sun Ship) for this market. The introduction of these Sun CCF leasing structures should result in owner-lessors being able to meet rate-on-investment hurdle rates, while offering demise charter rates that would be 30 percent and 40 percent lower than those in standard leasing transactions. These demise rates will in turn enable operators (by passing on a portion of this savings) to achieve reductions in their customer charges to compete with highway and rail services in these transportation corridors.

About the author H. Clayton “Clay” Cook was the MARAD General Counsel who was responsible for the 1970 Act CCF Program implementation. His work with the program has included advice for both private sector clients (such as NASSCO and Sun) and U.S. Government projects (in work for MARAD itself and for the U.S. Navy). His work for the Navy’s National Shipbuilding Program (NSRP) 2008 Workshop lead to the issuance of U.S. Patent No: US 8,010,431 B 1. As a partner at Cadwalader Wickersham & Taft, and counsel at Fulbright & Jaworski LLP and Seward & Kissel, Clay has advised banks and financial institutions, shipyards, and vessel owners and charterers in the construction, ownership and financing of more than $4 billion in U.S.built vessels. Clay has assisted clients in vessel ownership and operations in the Jones Act coastwise and Great Lakes trades, and the U.S. fisheries, in work that has included Title XI and CCF program use in citizen and non-citizen vessel lease financings. He is retained by bank and leasing company owner-lessors, and by law firms, as special counsel for structuring and providing opinion advice on the two MARAD programs and citizenship requirements for the ownership and operation of vessels in the U.S. domestic trades. You can contact Clay at

Maximum View & Control Innovative bridge ergonomics AlphaBridge on the Robert Allan Ltd designed hybrid RotorTug© RT Evolution November 2016 // Marine Log 45


Lessons for the Fleet

Coast Guard Shift to Rotatable Cutter Boat Maintenance Pool Paying Dividends

highly-successful maintenance program piloted and subsequently expanded by the USCG over the past five years, offers lessons and opportunities for fleets operating small boats assigned to larger ships. Like many such fleets, each major USCG Cutter had traditionally been permanently assigned one or more Cutter Boats (CB-OTH). Because of other priorities, inadequate facilities and the fact that the cutter personnel rotate frequently, the USCG found it difficult and expensive to ensure cutter boats were ready to execute the USCG’s mission. To help overcome this challenge, the USCG Surface Forces Logistics Center (SFLC) Small Boat Product Line (SBPL) initiated a pilot program to demonstrate and test the value of a rotatable maintenance pool program. Initially tested with nine East Coast-based CB-OTH Mark IIIs for the pool, the pilot, led by BMT Designers & Planners (BMT), was a clear success, and was subsequently expanded nationwide to incorporate all East, West and Gulf Coast CB-OTH MK III & IVs under a small business contract with

46 Marine Log // November 2016

Marine Group Boat Works (MGBW). CB-OTHs are the primary asset used by the medium and high endurance cutters of the Coast Guard fleet to accomplish fisheries, migration and law enforcement boardings. From an operational perspective, if a cutter’s boarding boats are not working, then the cut-

A number of factors were negatively affecting reliability and maintenance costs ter cannot perform its mission. Historically, cutter crews were responsible for performing the maintenance on the boats they use to accomplish boardings. The Coast Guard recognized that there were a number of factors negatively affecting reliability and maintenance costs including:

1. The boats being used for boardings had become much more sophisticated with a greater number of systems onboard. As such, more time was required to better understand these systems so that they could be maintained effectively. In the 1980’s and 1990’s boats were very basic – simply a hull with a diesel engine, shaft and propeller system, mechanical-hydraulic steering and basic electrical system for navigational lights and a horn. In contrast, today’s CB-OTH has a secure HF and VHF communications, radar and navigation package, as well as interior communications system. The propulsion system is a diesel engine and outdrive, which is also accompanied by electro-hydraulic trim and mechanical-hydraulic steering systems. 2. Cutter crew members typically rotate every 2-3 years; with a more complex boat the crews could not as easily become experts in maintaining it. 3. Performing maintenance while the boat was in the cradle was considered to be unsafe, therefore making the impact of any failure more difficult to resolve. 4. A greater emphasis on work-life balance

USCG Photo / Petty Officer 2nd Class LaNola Stone


By Marty Oard, Chief of Logistics & Maintenance Support, BMT Designers & Planners

Maintenance for cutter crews resulted in fewer hours being available for the crew to accomplish maintenance when at the home port. One major concern regarding implementation of the prototype pooling program was resistance to cultural change. Historically, Coast Guard cutters operate independently and generally prefer to have as little oversight or interaction with shore support activities as possible. There was a real concern that resistance from the very cutters that the pool was intended to help might torpedo the entire project.

Coast Guard. In areas where failures were being experienced and no maintenance procedure existed, effective conditioned based maintenance procedures were created and implemented to correct the problem. Supply System Quality Assurance – the original equipment manufacturer (OEM) for the boat, the seats and several other components have unacceptably long lead times for certain repair parts on the CB-OTHs. When

possible, if OEM had outsourced a part which was a component of their system, the component supplier was contacted and parts were purchased directly. Additionally, modeling and simulation of the pooling process was conducted to determine the minimum stocking levels required. Given the fact that the lead time for receiving parts could often be quite long, this approach provided 100% confidence that parts would be on the shelf when required.

Prototype Project Prior to the prototype project being initiated, there were a total of 55 CB-OTHs. Eight of these boats were designated as spares and were stored at different bases at, or near the home ports of the medium and high endurance cutters that used the boats for boardings. Because the spare boats were not attached to a specific unit (cutter, base or other command), they were generally in very poor condition. The pool was initially given 3 MKII (fiberglass hull) and 3 MKIII (aluminum hull) spare CB-OTH boats to inspect, repair and test. Partly because of the condition of the boats and partly because the program personnel were still learning, it was taking approximately three months to complete repairs on the first set of boats. At the end of the prototype period, it was taking about two weeks to complete all boat repairs once all parts were on site and the cost of the inspection, repairs and testing had dropped by two thirds. Perhaps even more importantly, the casualty repair the Small Boat Product Line was experiencing on boats within the pool was 74% less than the boats that weren’t in the pool, the annual maintenance costs per boat had been reduced by 40% and the reliability of the boats had increased from 95% to 96.4%. This improvement in reliability and reduction in casualty costs and incidences was achieved through the implementation of quality assurance, knowledge management and failure reporting and corrective action system (FRACAS) programs designed to increase reliability. Repair Work Quality Assurance – for every work item accomplished, the supervisor of the personnel accomplishing the work was required to verify that the work was accomplished correctly. Additionally, the Coast Guard provided highly detailed maintenance procedure cards (MPC) that enabled accomplishment of each maintenance procedure in a more consistent way. If any maintenance procedures were found to not have enough detail, feedback on how to improve the MPC was provided to the


Aluminum, steel, small, medium or large the VIGOR.NET

Kvichak/Vigor team is MARINESALES@VIGOR.NET ready to build it for you.

November 2016 // MARINE LOG 47

Maintenance Knowledge Management – To reduce the likelihood of repetitive errors and reduce labor, the team took lessons learned and codified them in process, procedure and policy. For example: • The Coast Guard CB-OTH boat inspection list that was provided at the start of the program was significantly expanded to help identify deficiencies when the boats were initially inspected. Additionally, for every deficiency identified, a standardized repair was

then linked to it. This allowed for the same highly effective repair to be made each time.

of the program for trends to help eliminate systematic problems.

Failure Reporting and Casualty Action System (FRACAS) – Every discrepancy noted in the program was meticulously recorded, maintenance history reviewed, assessed for its root cause and a recommendation made as to how to prevent it recurring. All failures were recorded in a database and enabled an overall assessment

Communication and Transparency – There were two key areas where communication and transparency ensured the success of the program. A cloud-based, collaborative Microsoft SharePoint site was utilized to facilitate teamwork. The site was available to all key maintenance stakeholders within the Coast Guard Small Boat Product Line, BMT Designers & Planners and all key subcontractors. The status of each boat, its inspections, repairs and tests and associated costs could be found on this site. The Small Boat Product Line also did an excellent job of educating the cutters on the pooling processes and the role of the cutter in the process. Furthermore, the Atlantic Area (LANTAREA) Commander was kept up to date by the Small Boat Product Line of any problems with cutters not performing their role properly or mistreating the CB-OTH assigned to them for a patrol. Mistreatment was typically not intentional but as a result of poor understanding of the technical data and occasionally poor quality workmanship.

FIRM SUPPLY. FLEXIBLE SOLUTIONS. Backed by more than four decades of experience in liquefied natural gas (LNG) production and logistics, Pivotal LNG is the right partner for you. We are committed to advancing alternative fuels in the maritime industry and will design flexible LNG fueling solutions to meet your needs. | 713.300.5116 | Follow us on © 2016 Southern Company. All rights reserved. Do not reuse text or graphics without written permission. PLNG-14922

48 Marine Log // November 2016

Senior Management Support – As anticipated, there was initially some push back, however, resistance to pooling is no longer a challenge given the significantly improved material condition and reliability of the boats. An additional key factor in ensuring buy-in from the cutters was the support of the LANTAREA Commander. Late last year, the Coast Guard’s Small Boat Product Line awarded a nationwide contract to Marine Group Boat Works for inspection, repair and testing of MK II/III & IV CB-OTHs with 40% of the work being accomplished by contract and 60% of the work being accomplished by government industrial support organizations. With the addition of the MK IV boat, the size of the pool has expanded to just over 100 and the cutters boats are being delivered to include the Fast Response Cutter (FRC) in addition to medium and high endurance cutters. As is evidenced above, implementation of a rotatable pool for small boats has proven highly successful for the U.S. Coast Guard. However, well executed rotatable pools that focus on improving reliability can also be utilized in many other applications including, but not limited to engines, compressors, capstans and windlasses. Essentially, any piece of mission critical equipment that can be easily removed and repaired off site should be considered for a pooling program with the goal of improving reliability and reducing maintenance costs.

Deck Machinery



ON DECK? W hat vessel owners look for in deck machinery is ease of operation, safety, reliability and a wellproven product. Edison Chouset Offshore (ECO), for example, will use towing winches and auxiliary winches from Rolls-Royce, all based on low-pressure hydraulics for 13 new ECO tugs. The heavy duty mooring assistant and escort tugs, which are being built by Chouest at its Gulf Coast shipyards, will be deployed on two major projects. Four escort tugs will provide a bollard pull of 80 tonnes at a new Corpus Christi, TX, LNG export terminal under construction; the remaining nine tugs will be used on a 10-year ship escort-response vessel system (SERVS) contract with Alaska’s Aleyska Pipeline Service Co. Beginning July 2018, ECO will take over the ship escort-response duties in Valdez, AK. Five of the largest tugs, the ASD 4517 tugs, will be equipped with winches featuring dynamic towing capability in the full bollard pull range—a deviation from the norm on these vessel types which usually tow on static brake. The use of low-pressure hydraulic reduces the risk during a towing operation and reduces wear and tear on tow gear. The ASD 4517 tug is a joint Damen and ECO-developed escort tug with a bollard pull of more than 150 tonnes and designed for the challenging conditions on the Prince William Sound. The nine tugs being built for the SERVS contract will also feature Tow Pin Stern Roller units from Smith Berger, Seattle, WA. The roller unit can sustain 250 tons of line tension and features three individually raised and lowered towing pins, one hold down hook and a 14 inch diameter stern roller. The tow pins have a dedicated 5 hp electro-hydraulic power unit and are operated by a remote

Compiled by Marine Log Staff

control panel located in the wheelhouse. Smith Berger’s Towing Pins and Shark Jaws will also be featured on a series of Damen Stan 3711 tugs, currently being built at Conrad Shipyard for Hawaii’s Young Brothers Limited. Smith Berger says the units will enable safer towing operations, especially when the crew is connecting the towing bridle to the tow wire from the winch. The four 123 ft, 6,000 hp, Kapena class tugs will join the Young Brothers’ fleet starting 2018, with delivery of the first vessel slated for the first quarter, and the final vessel expected 12 months later.

Rolls-Royce to Supply Cruise Ships Rolls-Royce has also been tapped to provide deck machinery to three cruise ships that are under construction at Fincantieri’s Monfalcone and Ancona Shipyards in Italy. Two Viking Ocean Cruises ships will be equipped with three of Rolls-Royce’s latest electrically driven, pole change control, mooring winches. The winches have a 20 ton pull and two windlasses with a chain diameter of 78mm. The winch, says Rolls-Royce, is precise, easy to install and control, has low start-up costs, and is fast-starting in all environmental conditions. A ship under construction for Regent Cruises will be equipped with three electrically driven, frequency converter control, mooring winches. The winches will have a 25 ton pull and two windlasses with a chain diameter of 87 mm. Rolls-Royce says that a modular range of winches and anchor windlasses allow efficient and cost-effective tailor made systems to be built up from a range of standard mooring winches, anchor cable lifters, and warping heads to suit the vessel’s deck layout and requirements. November 2016 // MARINE LOG 49

DECK MACHINERY equipment was fitted on a vessel working in the Kashagan field, located in Kazakhstan’s zone on the Caspian Sea. The company also designed and manufactured a chain winch package to support operations on the Ichthys LNG project. The package will be used to pull the heaviest chains ever installed by a client with a diameter of 178mm. Additionally, ACE provided two 50 Tonne WLL twin Chainlifter Hydraulic winches along with a 576kW Containerized Safe Area Electric Hydraulic Power Unit and two 76kW Containerized Safe Area Electric HPU’s for the project.

Allied & Markey Team Up on Research Vessel

ACE Winches’ new 500te Linear Winch is in its final stages of testing

Ace Winches Debuts New Product

Photo Credit

Designer and manufacturer of winches and marine deck machinery, ACE Winches, announced the addition of its new 500te Linear Winch to its deck equipment lineup at a recent industry event. The unit, designed, engineered and manufactured at ACE Winches’ facilities in Aberdeenshire, UK, is currently in its final stages of FAT testing—and is expected to be available for hire early Spring 2017. ACE also recently supplied a 4-point mooring system to an unnamed Belgian company. ACE supplied its 30te hydraulic winches, a 35te hydraulic drum and Safe Area diesel hydraulic power units. The

Oregon-based Allied Systems Company and Markey Machinery are joining forces to provide deck machinery to a new state-of-the-art research vessel being built for the Ocean University of China (OUC). The ship will be among the world’s quietest, featuring a MaK 9 M 25 C and MaK 6 M 20 C generator set. The Chinese government is funding the ship’s construction. Under the contract, Markey will provide the R/V Dong Fang Hong 3 with a suite of all-electrically-driven equipment, including two CAST6-125 CTD Hydrographic winches with its Render/Recover, active heave compensation. The suite will also include one DETW-12 Geological Wire Rope Constant-Tension Traction winch with a single storage reel capable of holding up to 10,000 meters of fiber optic cable; and a DETW-1313 Synthetic Rope and Fiber Optic Cable Constant-Tension Traction Winch with dual storage reels. The reels are configured differently with one capable of handling 12,000 m of HMPE synthetic rope, while the other can hold 10,000 m of fiber optic cable. Both are capable of providing up to 20 metric tons of line pull at 2 meters/second.

50 Marine Log // November 2016

Seaspan Chair in Naval Architecture and Marine Engineering

THE NAVAL ARCHITECTURE and Marine Engineering (NAME) program at The University of British Columbia (Vancouver campus) seeks an outstanding individual for a tenure-track or tenured position at the Assistant, Associate, or Full Professor level, who will occupy a Seaspan Chair. The Seaspan Chairs are part of the $33 billion National Shipbuilding Strategy of the Government of Canada. The Chair will hold an appointment in one or more of the following Departments: Mechanical Engineering, Materials Engineering, and Civil Engineering. The starting date of the appointment will be September 2017, or as soon as possible thereafter. The new faculty member will complement our existing strength in NAME ( ca). We welcome applications from individuals who have expertise in any area relevant to NAME, and particularly encourage specialists in the disciplines of ship design, production, materials, and hydrodynamic and structural analysis. Candidates should be able to develop an outstanding research program, enhance further existing facilities, and lead a group of graduate students, technicians, and faculty members. Owing to the need for close cooperation with industry and government, a track record of successful industry experience would be a key asset. Applicants must either have demonstrated, or show potential for, excellence in research, teaching, and service. They will hold a Ph.D. degree or equivalent in Naval Architecture and/or Marine Engineering, Civil Engineering, Materials Engineering, Mechanical Engineering, or a closely related field, and will be expected to register as a Professional Engineer in British Columbia. Successful candidates will be required to apply for Natural Sciences and Engineering Research Council (NSERC) grants in partnership with Seaspan.

Further information on the employment environment in the Faculty of Applied Science is available at www. Applicants to faculty positions in UBC Applied Science are asked to complete the following equity survey The survey information will not be used to determine eligibility for employment, but will be collated to provide data that can assist us in understanding the diversity of our applicant pool and identifying potential barriers to the employment of designated equity group members. Your participation in the survey is voluntary and anonymous. You may self-identify in one or more of the designated equity groups. You may also decline to identify in any or all of the questions by choosing “not disclosed�. The University of British Columbia hires on the basis of merit and is strongly committed to equity and diversity within its community. We especially welcome applications from members of visible minority groups, women, Aboriginal persons, persons with disabilities, persons of minority sexual orientations and gender identities, and others with the skills and knowledge to productively engage with diverse communities. All qualified persons are encouraged to apply; however Canadians and permanent residents of Canada will be given priority. Applicants should submit a curriculum vitae, a statement (1-2 pages) of technical and teaching interests and accomplishments, and names and addresses (fax/e-mail included) of four referees. Applications should be submitted online at faculty.php. The closing date for applications is January 1, 2017. Please do not forward applications by e-mail.

JOB CODE: 24675 November 2016 // MARINE LOG 51

DECK MACHINERY Markey will also supply a DESF-05 Biology Winch with a 50 hp AC-variable frequency drive, an instrumented precision leader, and a Lebus shell equipped drum capable of handling up to 3,000 m of 8mm wire rope. Additionally, the R/V Dong Fang Hong 3 will be fitted with a next generation Markey control system that will integrate Allied’s CTD Launch and Recovery System (LARS). Allied will supply the research vessel with a TB80-70 crane with integrated HPU, a TK20-40 crane with integrated HPU, a side A-Frame, two TK70-70 cranes, a CTD Handling system, a Long Core Grapple system, and two HPU units to power them.

Rapp Marine Remains Busy It has been a busy few months for Rapp Marine Group. The company, one of the largest global suppliers of electric and hydraulic deck machinery for the fishing, research, offshore, and workboat industries, is in the process of delivering equipment for both the Polar Research Institute of China and Guangzhou Marine Geological Survey. Earlier this fall it won contracts to provide complete deck machinery for seven new fishing vessels (you can read more about that in our October 2016 issue, Tech News section); and most recently won a contract to supply deck machinery and handling systems to a new state-of-the-art Antarctic Icebreaker being built for the Australian government. The government signed the contract with DMS Maritime Pty Ltd. Damen Schelde Naval Shipbuilding will design and build the vessel with delivery expected for mid 2020. The 156 m ship, which will replace the aging Aurora Australis, will have an icebreaking capacity of 1.65 meters at 3 knots.



Macgregor Equipment Ordered for Vlocs, AHTSs FACTORY CERTIFIED TECHNICIAN


By building one of the industry’s largest teams of technicians, and a nationwide network of service centers, you get the maintenance expertise and performance that can come only from the very people who built your engine. We train to a higher standard because we’re driven to serve you better. Learn more at

52 Marine Log // November 2016


A new series of 400,000 dwt very large ore carriers (VLOCs), currently under construction at China’s Quingdao Beihai Shipbuilding Heavy Industries, will be equipped with MacGregor’s high-pressure hydraulically operated Pusnes deck machinery. The orders were booked in the third quarter. Beyond that, MacGregor recently won deck machinery orders for six 64m anchor handling tug supply (AHTS) vessels being built for a long-term charter in the Middle East for Saudi Aramco. The six sets being delivered include a 150-tonne anchor handling and towing winch, shark jaws, towing pins, auxiliary winches and ancillary equipment. MacGregor says the equipment will be delivered in stages, with work expected to start at the end of 2016 and the vessels scheduled for delivery third quarter 2017.



Deep How Nereid, a new hybrid ROV from Woods Hole Oceanographic Institution, could change the ROV industry

© Luis Lamar, Woods Hole Oceanographic Institute(WHOI)


new class of 2,500 meter capable hybrid ROV/AUV from Woods Hole Oceanographic Institution (WHOI) paves the way for a sea of change in ROV shipping requirements, lowering costs and extending mission capability. Nereid HT was developed for deepsea scientific and filming missions and WHOI is actively seeking partners who can apply these new technologies to a range of emerging applications. Operating a conventional light work class Remotely Operated Vehicle (ROV) commercially in the Oil and Gas sector currently costs around $65,000 per day in the North Sea, and $35,000 per day in the Gulf of Mexico, including the dynamic positioning (DP) support vessel, crew and a redundant second ROV. The latest technologies developed for cutting edge submersibles developed at WHOI may one day radically change those economics. The hybrid vehicle, Nereid, is both an ROV and an Autonomous Underwater Vehicle (AUV) and is best thought of as capable of operating on a spectrum anywhere between these two traditional classifications. Its inventor, Andy Bowen, principal developer and engineer on the project, has a 30 year history at WHOI working with groundbreaking robotic submersibles—he developed the Nereus, an 11 kilometer-capable hybrid ROV. “We had to solve a lot of difficult problems to operate the Nereus at 11 kilometers,” says Bowen. For example a lightweight tether cable was an operational necessity since traditional ROV solutions would have resulted in a massive and very costly system. “Other technologies that we have implemented on Nereid include the large amounts of rechargeable energy that can be stored aboard the vehicle, a refined

By Louise Murray manipulator design coupled with a power efficient hydraulic power unit, and highly efficient and effective electric propulsion, lighting and control systems,” he explains. Taken separately, these are all incremental advances in design, but when combined with the powerful software embedded in the Nereid HT, are transformational. One of the most advanced, versatile and cost effective unmanned submersibles in the world, Nereid HT was on an engineering cruise for the first time to 2,500 meters off the coast of Panama in August 2016. During these trials, the Nereid vehicle was operated with a lightweight reusable tether and via a WHOI optical modem as a tetherless ROV. Many of the innovative technologies seen in Nereid impact on the shipping end of ROV support and have the capacity to completely change the economics of deepsea ROV operations. The acoustic, optical and expendable tethering system is unique, and the innovative reusable tether cable is in the final stages of a U.S. Patent office application. The tether diminishes the need for a DP capability in the support ship, opening up deepsea ROV operations to a more diverse set of vessels. When operating with the lightweight reusable tether, the vehicle is deployed from a small electric winch, rather than a much larger winch and associated tether management system. Bowen estimates that the size and weight of the winch and cable are reduced by as much as 40% when compared to other deepsea light work class ROVs. A large contribution to that reduction is the fact that the vehicle is battery powered so the tether need not carry power to the vehicle, reducing its diameter. Battery power also does away with the requirement November 2016 // Marine Log 53

Nereid HT hybrid ROV and AUV underwater robot during engineering sea trials off Panama for specialized high voltage power supplies. Nereid HT is powered by rechargeable lithium ion batteries in a custom WHOI casing. They can be trickle charged and spent battery packs swapped over quickly—each with a 12- hour endurance. Bowen admits that for now, this places some limitations on the endurance of the robot. But the pace of change in battery technology improvement is now very rapid, going hand-in-hand with developments in electric car design. So he is confident that this will be less of a factor going forward as greater amounts of power can be stored onboard the vehicle. “More onboard power could enable extension of the vehicle’s capabilities eventually allowing it to take over some of the tasks normally reserved for heavy work class ROVs,” said Bowen. The tether also contributes to making launch and retrieval operations simpler and

54 Marine Log // November 2016

faster, and needing less crew intervention. The final 100 meters is specially designed to have varying density vs. length, so that the tether naturally forms an “S” shape without the need to externally add weight or floats. This gives the vehicle enough freedom from the ship, decoupling the Nereid from the ship’s movements, allowing more streamlined operations and may make missions in a higher sea state possible. This new tether design was used to successfully support ROV-type operations at 2,500 meters for the first time in Panama. The Dalio Foundation supported the vehicle development, and as part of its Dalio Ocean Initiative also made the expeditionary vessel Alucia available. The Alucia, a 55 meter vessel, originally built in 1974, was extensively refitted between 2008 and 2012 for its current science and filming role. “What we are trying to do onboard Alucia

is to give the ship, and others like her, the capability to access depths that would be impossible for a ship of this type using conventional technology — we are aiming for 5,000 meters using this novel, lightweight reusable umbilical system. It’s a much smaller diameter tether than would typically be used for ROVs of this size and capability.” said Bowen. When operating as a tetherless ROV WHOI’s new optical modem technology, provides the operators with real-time control, including full motion video uplinks and direct downlink control of thrusters, manipulators, etc. The optical modem introduces high-speed broadband capabilities to the deep ocean. The revolutionary WHOIdesigned system allows total control over the vehicle off tether. Norman Farr, Optical Engineer, WHOI, and designer of the system, says, “We can wirelessly control the untethered vehicle in autonomous mode while transmitting live video back to the pilot. Its very exciting to have a link that is just rock solid, one that you don’t really have to worry about, I feel that all of our work has paid off.” It took the team over five years to reduce the form factor of the modem to a workable size. The current modem operates using LEDs. The wavelength of light used is determined by the operating depth and levels of ambient light. Most of the time in the biologically productive coastal waters of Panama 50 meters was achieved. Earlier tests confirm that in clearer water conditions a range of up to 100 meters is to be expected. In Panama, bi-directional communications worked effectively at over 10 MB/s, technically speeds of 20 MB/s is possible permitting full HD video transmission live from the vehicle to the ship with no latency. Its highly portable control systems have also been designed so that a dedicated ROV control van is no longer needed. This usually

© Luis Lamar, Woods Hole Oceanographic Institute (WHOI)


Technology takes the form of a small container sitting on deck, but without the need for one, again more deck space is freed up or a smaller support ship can be used. The pilot’s basic control and drive footprint can be accommodated in a relatively small onboard space. As their abilities grow, smaller ROVs like the Nereid class are also increasingly being deployed by navies, coastguards, and ports around the world, including the U.S. Coast Guard, the U.S. Navy, and the Royal Navy. They have also been widely adopted by police departments and search and recovery teams. Hybrid ROV/AUV vehicles can be used for a huge variety of underwater tasks such as explosive ordnance disposal (EOD), meteorology, port security, mine countermeasures (MCM), oil and gas support, marine science, and maritime intelligence, surveillance, and reconnaissance. “As these technologies transfer out into the oil and gas sector, I can see there being a real impact on shipping costs, particularly in deepsea oil and gas locations like the Gulf of Mexico, Norway or West Africa, for infrastructure inspection and pipeline work,” says Subsea Engineer Satya Maganti, Fairfield Energy, Aberdeen, who commissions ROVs and support vessels in the North Sea. The technologies deployed in the Nereid HT will also have far reaching implications in the oceanographic science community as vehicles like it open up the deep ocean to more and more scientists as expedition and vessel costs fall. As the vehicles become more capable and ever more versatile, Bowen envisages a future where shipless systems prevail. “I can see a Nereid covering hundreds of kilometers under simple acoustic communications control, then at a work site linking to an optical modem, receiving instructions wirelessly, while working under the control of a human pilot. Or further ahead, actually residing on the seafloor, available to respond when needed, say to harvest data from an undersea observatory or provide timely intervention. The robot can then respond no matter what the sea conditions. Indeed, in locations like the high Arctic, shipless intervention might be an imperative.” Since many airborne drones already operate like this—flying to their operations site under little or no human control—WHOI’s advances in underwater robotics, autonomy and communications technology make it extremely likely that we will see these kind of missions under the surface of the ocean before too long. Small but highly capable hybrid vehicles like Nereid could be as common a vessel staple as the ship’s zodiac, ready to deploy at a moments notice.

Quality Commercial Vessels... Built by Burger to Your Requirements us


w 40 ho th t S t o a at Bo Bo 2, k or ec W -D 30 ov

e Se



uction sel Constr Under) Steel Explorer Ves

103’ (31m

Burger is recognized worldwide for quality custom vessels that provide years of dependable service. • Aluminum and Steel • Fast Supply Boats Fabrication • Wind Farm • Passenger Vessels Support Vessels • Research Vessels • Fishing Vessels • Fast Crew Boats • Other Vessels to 260' (80m)

New Construction | Vessel Haul-Out | Refit & Repair Services +1 920.686.5117 | | Proudly built in the USA

U.S. Coast Guard Response Boat - Small

U.S. Navy Force Protection Boat - Medium

Built for the World’s Most Demanding Operators. email: • Telephone: 337.364.0777

November 2016 // Marine Log 55


BC Ferries President Named New CEO of Interferry Mike Corrigan, current President and CEO of Canada’s BC Ferries, has been named the new CEO of Interferry. He will leave his post at BC Ferries March 31, 2017. Hendry Corporation lost one of its pivotal leaders. Aaron W. Hendry passed away peacefully in his home after a brave battle with pancreatic cancer. Hendry started his career at Hendry Corporation as a teenager in 1952 where he worked his way up through the ranks. He leaves behind a number of recognizable businesses in the Tampa Bay area including Gulf Marine Repair, Port Hendry Terminals, Hendry Marine Industries and Universal Environmental Solutions.

OSK-ShipTech A/S has named Jacob H. Thygesen its new CEO. Thygesen brings with him more than ten years of experience in ship design and the shipping industry, having previously held the position of Sales Director for Wärtsilä Ship Design, and prior to that, Managing Director of Wärtsilä Denmark. The Shipbuilders Council of America (SCA) has recognized U.S. Congressman Ander Crenshaw and MARAD Administrator Chip Jaenichen with maritime leadership awards. The awards recognize individuals from Congress and the Administration who have demonstrated exceptional leadership, dedication and support to the shipbuilding and repair industry.

Brad Mason has been named Vice President of Huntington Ingalls Industries’ (HII) Newport News Shipbuilding division and President of its AMSEC LLC subsidiary. He succeeds Harris Leonard, who will retire at the end of 2016. HII also announced the appointment of Mary Cullen to Vice President of Nuclear Propulsion at Newport News. Just days after three of its largest shareholders agreed to buy up to $125 million of its shares, Genco Shipping & Trading Limited announced the departure of Peter C. Georgiopolous as Chairman of the Board. Arthur L. Regan of Apollo Investment Consulting will step in as Interim Executive Chairman.

When it’s grim, you need Great


At Great American, we can make grim like it never happened. Contact us for cargo and hull coverage and a complete line of insurance products for the marine industry. Contact Cap’t Ed Wilmot,, (212) 510-0135. ©2015 Great American Insurance Company, an authorized insurer in all 50 states and D.C. Great American Insurance Group Tower, 301 E Fourth Street, Cincinnati, OH 45202

56 Marine Log // November 2016

Ocean Marine I

TECH NEWS Damen, TeamTec Partner on Innovative Bwts

Rolls-Royce to Deliver Automatic Crossing System to Fjord1 Rolls-Royce will supply an automatic crossing system to Norwegian ferry company Fjord1. The system, the first to be supplied by Rolls-Royce, will control two new double-ended battery ferries as they cross between Anda and Lote on the 1,330 km long E39 route connecting communities along the west coast of Norway. Construction on the two new ferries is to start this fall at the Tersan shipyard in Turkey, with delivery in 2017. As part of its agreement with the Norwegian government, Fjord1 must keep strict yearly limits on its battery-powered ferries. To that end, the automatic crossing system will help Fjord1 ensure consistent behavior during a vessel’s journey and help with energy consumption. The system will automatically control the vessel’s acceleration, deceleration, speed and track. Two energy efficient RollsRoyce Azipull thrusters respond adaptively to environmental conditions.

The system, developed by Rolls-Royce’s Ship Intelligence Program, “will help the customer meet their contractual need to ensure predictable energy consumption optimized for varying environmental conditions,” says Jann Peter Strand, Rolls-Royce, Product Manager, Automatic & Control — Marine. “It is a step on the road to realizing Rolls-Royce’s goal of remote and autonomous vessels.” The system will work in conjunction with a Captain who will maneuver the ferry manually a few meters from the dock. The Captain will then supervise the system and intervene should it be needed—and should the Captain be unable to take manual control, the system will stop at a safe distance from the quayside and stay positioned until further action can be taken. Rolls-Royce says that the next version of the system will allow for automatic berthing.

Damen Green Solutions has signed a letter of intent with Norwaybased TeamTec AS to supply the innovative Avitalis ballast water treatment system (BWTS). Under the agreement Damen will deliver the global sales, integration engineering installation and servicing capability for the system via its 32 yards around the world. The system, which is currently undergoing land-based testing for U.S. Coast Guard approval and shipboard testing for IMO approval, uses a combination of filtration and chemical treatment. The chemical used in the treatment process is Peraclean Ocean, developed by Germany’s Evonik Industries AB. The chemical has a broad anti-microbial spectrum making it effective even at low temperatures and rapidly decomposes into water, oxygen and acetic acid. The system works in a two-stage treatment process. The ballast water is first pumped through a 40 µ automatic self-cleaning filter, where more than 90% of the organisms ≥ 50 µ are filtered out and pumped back into the water. Peraclean Ocean is then injected into the ballast water and disinfection happens immediately. Avitalis is highly effective in water of any salinity, turbidity or temperature. It is anticipated that IMO type approval will be achieved in the first half of 2017, followed by full U.S. Coast Guard BWMS type approval later in the year.

November 2016 // Marine Log 57


Redefining the Towboat

The Carrousel Rave Tug (CRT), equipped with Voith Schneider Propellers (VSP) and currently under construction at Van der Velden Barkemeyer GmbH, will redefine the way tugboat operators apply motion and force and provide improved safety, increased agility and enhanced operational capabilities. The CRT features a specialized towing winch mounted on a ring – the Carrousel Towing System. This unique ring system rotates freely around the tug’s deckhouse, creating virtually limitless yaw angles and the ability to carry out maneuvers impossible with any other tugboat concept. Due to the design, the System virtually eliminates the risk of capsizing under a tow load. The System is paired with two VSPs, arranged in-line, allowing for a slender and highly efficient hull. The VSP is a unique system generating stepless thrust in all directions with precision and speed. Propulsion

58 Marine Log // November 2016

and steering are combined in one unit, allowing unmatched maneuvering capability and providing precise maneuvering capabilities even under adverse conditions. Combining these innovative systems in a single vessel, allows operators to maximize several key advantages: Increased flexibility : The two VSPs allow the tug to perform the rapid heading changes and tow adjustments that make the Carrousel System so unique in the industry. Increased agility: The System and the VSP allow the vessel to perform maneuvers without fluctuations of applied force. Arranged in-line, the VSPs allow for smooth and precise control of the tug-heading under all possible operating conditions. Increased safety: The CRT is capable of safe operations in close proximity to the bow of an assisted vessel, and can quickly sidestep from danger zones. The inline VSPs help ensure there is no undesired side thrust, setting the stage for safe and stable tugs. Increased efficiency: Braking and steering operations can be performed utilizing the hull forces rather than the propulsor forces. The result is lower fuel consumption and fewer emissions. The CRT’s general speed of action, and extreme braking and steering capabilities, also get vessels in and out of port faster, allowing for a more dense utilization of port infrastructure. In cooperation with Robert Allan Ltd. (RAL), the first two Carrousel RAVE Tugs are under construction by the Damen Shipyards Group through their subsidiary Van der Velden Barkemeyer GmbH for Novatug B.V., a subsidiary of Multraship Towage & Salvage. Delivery of the first vessel is scheduled for Summer 2017.

Stabilization Tech for Smaller Boats Seakeeper Inc., California, MD, will bring its marine stabilization exper tise to the small vessel market with the debut of its Seakeeper 3, specially designed for boats with lengths between 30 and 39 ft. The Seakeeper 3 is the company’s smallest and lightest Seakeeper unit yet and the first to run exclusively on 12-volt DC power with no need for a generator or AC input. “The Seakeeper 3 is an exciting next step in our ongoing goal to bring stabilization to the boating mainstream by offering our innovative technology on smaller and smaller vessels,” says Andrew Semprevivo, Seakeeper’s Vice President of Sales and Marketing. The Seakeeper 3 builds on innovations that began with the Seakeeper 5. The new unit is 25 percent smaller and 30 percent lighter than the Seakeeper 5 and features a newly designed touch screen control panel with an intuitive user inter face — allowing users to capture real-time per formance information —and is the lowest priced model in the Seakeeper product line. It also makes installation easy, in some cases requiring no major structural modifications. The Seakeeper 3 can be installed and ready to use in as little as two days. Orders for the Seakeeper 3 can be placed now, and the units will begin shipping in spring of next year.


Northern Lights & Hug Engineering Partner on Imo III Solution Manufacturer of marine generator sets, Seattlebased Northern Lights, Inc. (NLI) has partnered with Switzerland’s HUG Engineering, a producer of high quality after-treatment systems, to provide complete IMO III certified clean air power generation solutions. The partnership will enable customers to purchase Northern Lights’ line of marine generator sets and HUG’s selective catalytic NOx reduction (SCR) systems or particle filter (DPF) systems as one completely integrated solution. The IMO III Certified solution meets stringent performance and packaging requirements, and is available from Northern Lights units above 115kWe installed on vessels of over 500 grt. “Both companies are wide-scope, market-driven manufacturers, dedicated to engineering solutions for the marine industry,” said Brian Vesely, Vice President and General Manager, Northern Lights. “This collaboration marks a significant milestone in the ability for NLI and HUG to offer off-the-shelf solutions for these new IMO III requirements, which give customers an advantage when building or refitting a vessel under these new standards.”

Towing Pins OCIMF Roller Fairleads Guide Sheaves

Shark Jaws

Balanced Head Fairleads

Smith Berger Marine, Inc.

7915 10th Ave. S., Seattle, WA 98108 USA Tel. 206.764.4650 - Toll Free 888.726.1688 - Fax 206.764.4653 E-mail: - Web:

November 2016 // Marine Log 59

Ad Index Company

Page #


Page #



Marine Services


Blount Boats, Inc.


Metal Shark Aluminum Boats


Bouchard Transportation


Motor-Services Hugo Stamp Inc


Bristol Harbor Group




Burger Boats


Northern Lights


Coastal Marine Equipment




Detyens Shipyard


Panolin America




Penguin Random House (Putman Books)

Eastern Shipbuilding Group


Pivotal LNG



Pyrotek Inc.




Fairbanks Morse Engine


R.W. Fernstrum & Company


FCI Watermakers


Scandinavian Micro Systems


Force Control Industries


Scania USA Inc.

Furuno USA Inc.


Schuyler Rubber Company


Great American Insurance Group


Smith Berger Marine Inc.


Gunderson Marine


Spear Manufacturing


Hatton Marine


St. Johns Ship Building, Inc.




Tidal Marine Insurance


University of British Columbia



Horizon Shipbuilding Inc.


Horizon Shipbuilding Inc.


Viega LLC


Hyde Marine




Japan Radio Co., Ltd.




JMS Naval Architects




KVH Industries




Marine Art of J Clary




60 Marine Log // November 2016


Vanuatu Maritime Services

Port Vila with offices in New

adopted all appropriate IMO

Ltd (“VMSL”) is a privately

York, Tokyo, Pusan, Istanbul,

conventions. VMSL’s goal is

held company operating

Bangkok, Singapore, Hong

to provide quality service at

under contract to the Vanuatu

Kong, Shanghai and London.

low cost. It uses the services


The Vanuatu international

VMSL handles ship

and expertise of the IACS

ship registry is open to owners

classification societies and

registration, mortgage

of any nationality. Vessels

respected surveyors.

recordation, crew

flying the Vanuatu flag receive

documentation and regulatory

friendly treatment in ports

compliance. Currently its

throughout the world.

Central Registry Office has

VMSL is concerned with

about 700 vessels and over

maintaining high standards

3 Mgt operating worldwide.

of safety for its fleet and

Its corporate office is in

to this end Vanuatu has



PHONE: (212) 425 9600 FAX: (212) 425 9652


November 2016 // Marine Log 61


We Build the Ship First. Production Lofting Detail Design 3D Modeling St. John’s, NL | Vancouver, BC | New Orleans, LA


709.368.0669 | 504.287.4310 |

naval architects & marine engineers Quality Technical Services

Designed for:

2021 Dauphine Street • New Orleans, LA 70116 (800) 823-1324 (504) 945-8917

Heavy Duty Naval Architecture Marine Engineering Salvage Engineering Marine Surveys


Stevedoring barge 300’ x 72’ · 6,000 psf deck Built by Conrad Shipyard for the Rhode Island Commerce Corp. and Port of Providence 860.536.0009



M.A.C.E. Inc.

Barges, Dry Docks, & Work Boat Design

FT. LAUDERDALE - USA - WORLDWIDE PHONE: (954) 563-7071 FAX (954) 493-9559

Thickness - hardness crack determination Ultrasonic flaw detection Vibration - noise structural/modal analysis Field balancing Torque - torsional vibration analysis Predictive Maintenance IR - thermography measurements

GILBERT ASSOCIATES, INC. Naval Architects and Marine Engineers

350 Lincoln St. Suite 2501 Hingham, MA 02043

Website 62 Marine Log // November 2016

Telephone: 781 740-8193 Facsimile: 781 740-8197 E-mail address:



The Proven Formula for Brand Success The Right Audience + High-quality Editorial 813.654.9800 Naval Architecture Conceptual Designs Marine Engineering

Production Engineering Lofting & Nesting Tooling Design




Products & Services


Contact your sales rep at or call 212.620.7200

ABS Approved Ambient Environmental Testing Climate, Lighting, Noise & Vibration 1 Galleria Blvd. Ste 907 Metairie, LA 70001 Phone (504) 818-0377 x 33 Fax (504) 818-0447

abitabilaty Certification Testing MR Dec13 3 by 1.indd 1

Take your brand to the next level

MARINELOG.COM 30,000+ subscribers worldwide 86% make purchasing decisions 52% are involved in vessel operations


*2015 Verified Audit Report and 2016 Readership Survey

Contact: Jeanine Acquart Phone: 212/620-7211 Fax: 212/633-1165 Email: All Major Credit Cards Accepted


11/14/2013 3:58:18 PM

3/22/16 9:30 PM

Marine Yellow Pages

Get instant brand visibility with a free or enhanced listing. November 2016 // Marine Log 63

Marine Salvage

CRISK Initiative To Continue, Along With Drive To Expand Membership

MarineLoG SSN 08970491 USPS 576-910 A Simmons-Boardman Publication CORPORATE OFFICES 55 Broad Street, 26th Floor, New York, N.Y. 10004 Tel: (212) 620-7200 Fax: (212) 633-1165 Website: E-mail: ADVERTISING SALES AMERICAS U.S. Gulf Coast & Mexico Jeff Sutley National Sales Director T: (212) 620-7233 | F: (212) 633-1165 Email:


he American Salvage Association will close out a busy and productive 2016 with our annual meeting on November 1 in Tampa, in conjunction with the Clean Gulf Conference. There, the membership will meet to review the successes of the past year, as well as plot the way forward for 2017 and beyond. Our partnership with the CIP contin-

This might include identifying wrecks to be prioritized regarding recommended contaminant removal through a carefully planned salvage operation. The main purpose of the risk assessment is to identify those wrecks that present a risk and to eliminate or reduce the concerns about the other wrecks. The risk assessment process will provide officials

Photos by USCG

Building on the successes of 2016 will be a toppriority in 2017 ues to grow following our joint training seminar in June in Miami. Our membership drive has grown our numbers not only in the U.S., but also throughout the hemisphere, in keeping with our updated charter to expand our influence and bring best practices beyond U.S. waters. A major initiative that will continue to be implemented in 2017 will be the CRISK initiative. The ASA is currently working with its partners at OAS InterAmerican Committee on Por ts (CIP) to refine a plan of action for a wreck risk assessment for the Caribbean. The CRISK initiative would provide a means to qualitatively identify the highest risk wrecks and to quantify that risk to allow for the purposes of risk management. 64 Marine Log // November 2016

w i t h su b s ta n t ive da ta to ma ke we l l informed risk management decisions. Building upon the successes of 2016 will be a top priority for 2017. We will continue the implementation and study of the CRISK initiative, monitor the PREP guidelines on behalf of the membership and the industry at large and grow our membership and influence throughout the hemisphere.

U.S. East Coast, Midwest and West Coast Heather Bonato Regional Sales Manager T: (212) 620-7225 | F: (212) 633-1165 Email: California & Canada Amy Lennox Sales Associate T: (212) 620-7221 | F: (212) 633-1165 Email: EUROPE Neil Levett Managing Director Alad Ltd. T: +44 (0)1732 459683 Email: SCANDINAVIA Brenda Homewood Alad Ltd. T: +44 (0)1732 459683 Email: FRANCE Paul Thornhill Alad Ltd. T: +44 (0)1732 459683 Email: KOREA & CHINA Young-Seoh Chinn JES Media International T: +822-481-3411 | F: +822-481-3414 Email: CLASSIFIED SALES

Todd Schauer President, ASA

Jeanine Acquart Classified Advertising Sales T: (212) 620-7211 | F: (212) 633-1165 Email:



We are eager to serve you in 2017 and beyond!

Visit Us at Booth #2417 Nov 30 - Dec 2, 2016 in New Orleans

To add an ESG built vessel to your fleet, contact us at: Tel: 850-763-1900 ext 3216 Fax: 850-763-7904 Email:


2200 Nelson Street, Panama City, FL 32401 13300 Allanton Road, Panama City, FL 32404



Profile for Marine Log

November 2016 Marine Log  

November 2016 Marine Log  

Profile for marinelog