DELHI POLICE LICENSING UNIT NO: F.2 (S.6) PRESS/2016
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July - 2022 | Volume-06 | Issue-07 |RNI NO : DELENG/2017/70663 | ₹315 Distributed in India,Singapore,Canada,Sri Lanka,Iran,Italy,Greece,Venezuela,Israel,UAE,SouthAfrica, Usa, Spain, Australia,Kazakhstan,Vietnam,Tunisia,Turkey,Bulgaria,Belgium,Brazil,Malaysia,New Zealand, Nigeria, Poland, And Russia
COVID-19 Wreaking Havoc Over the Maritime Industry
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CONTENT JULY 2022
VOL 06 ISSUE 07
AMIT KUMAR
O-7 CDR (RETD.) DR.EYAL PINKO (PHD)
Sea And Coast
Founder. CEO, Editor-in-Chief
Maritime Cyber And Security Senior Consultant.
07
08
MURAT BAKAL K Ships Technical Manager Marmara University, Technology Faculty, Mechanical Engineering Dpt. Lecturer. Amit Kumar Sea And Coast Founder. CEO, Editor-in-Chief
Editorial 04
ADVISORY BOARD
05
Name :- Ellie Mae Travill Rank :- Deck Cadet Company :- Princess Cruises
UNITED KINGDOM She @ Sea 06
10
News
EXCLUSIVE COLUMN
SHIPPING NEWS
11
PORTS NEWS
17
CRUISE INDUSTRY NEWS
21
MARINE TECHNOLOGY NEWS
25
OFFSHORE NEWS
29
SHIPBUILDING NEWS
33
INTERNATIONAL NEWS
39
NAVAL SECURITY NEWS
47
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JULY 2022 |03
INDIA Sea & Coast Maritime Magazine offers its readers insightful information about recent developments in the maritime industry, analysis of government policies
Website www.seaandcoast.in Email: info@seaandcoast.in
relating to maritime laws, and interaction with wellknown gures in the maritime community who share their personal experiences in the exclusive column of Sea & Coast Marine Magazine, and maritime newsletters from around the world that provide
Amit Kumar
information about maritime development in other
Founder. CEO, Editor-in-Chief
nations.
Assistant Editors
The foundation of international trade and the world economy is maritime transit. Around
Hulya Guler
80% of world trade by volume and more than 70% of world trade by value are transported by sea and are handled by ports all around the world. Without the operations conducted on seas
Jeannette Pérez Fernandez Captain.Ayse Asli Basak
and oceans, people's lives and economies would not be the same. India's maritime industry has reached new heights and boosted trade and commercial
Murat Bakal
activity over the past eight years, and the month of July has been a testament to the same -
Edward Mithamo Kinyua
India’s monthly merchandise export was valued at USD 37.94 billion, a 17% increase compared to 2021. The Commerce Ministry announced a ve-year foreign trade policy to boost exports and job development. India also plans to invest 15 crores in the expansion of
Graphic Designer Ramjeet
passenger trafc and has also pursued global bids for a nearly 6,000 crore expansion project at the Deendayal Port in Kandla, Gujarat, which will have a signicant positive impact on the
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economy. India’s Navy aircraft arrived at Hawaii for the biggest Maritime exercise in the world, the 28th Rim of the Pacic. Sri Lanka has been experiencing economic decline: There are shortages of food, fuel, cooking gas, medicines, cash, and other essential commodities as a result of a public debt crisis that has been made worse by the impact of the pandemic and the disruptions caused by Russia's invasion of Ukraine. During this crisis, India once again chose to offer the
Editorial
Beypore Port, the country's second-largest port in the state in terms of yearly cargo and
neighbouring country two ships of fuel and diesel. In view of the global maritime industry, Ukraine's Parliament is considering new mobilisation regulations that would exempt certain citizen groups from the general army draft. This legislation will allow Ukrainian seafarers to leave the country to carry out job contracts. The
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world's recoverable oil resources have decreased by 9%, increasing pressure on the planet's
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(PIL), a Singaporean container shipping company, has joined the World Shipping Council
energy security as per Rystad, an energy expert based in Oslo. Pacic International Lines (WSC). In the rst half of 2022, Korean shipbuilders received 9.79 million CGT worth $26.5
Note Views expressed in the articles are those of the authors and may not be shared by the editor or the members of the editorial board. Unsolicited material will not be returned.
billion, accounting for 45.5 per cent of the global total of 21.53 million CGT. This is an overview of our publication. We sincerely hope you nd our publication to be a trustworthy source of maritime news and information. Our goal is to meet the needs of our readers. We invite all of our valued readers to send us letters and emails via our ofcial email address to share your thoughts and suggest ways to improve our presentation without compromising the accuracy of facts.
Copyright No material published in the magazine should be reproduced or transmitted in any form or by any means, electronics and mechanical, including photocopy or digital device without prior written permission from the publisher
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We are grateful for your ongoing support of Sea & Coast.
Amit Kumar Founder. CEO, Editor-in-Chief
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ADVISORY BOARD
Admiral R K Dhowan (Retd). PVSM.AVSM.YSM,Chairman of Society for Aerospace Maritime and Defence Studies Former Chairman of National Maritime Foundation and Former Chief of the Naval Staff, (Indian Navy)
Lt. Gen. Arun Kumar Sahni, PVSM, UYSM, SM, VSM, Former General Ofcer Commanding in Chief, Indian Army.
Mr.Shekhar Dutt (IAS) Former Governor of Chhattisgarh, Former Dy National Security Advisor and Former Defence Secretary (Goverment Of India)
Admiral Jayanath Colombage RSP, VSV, USP, rcds, psc MSc (DS), MA (IS), Dip in IR, Dip in CR, FNI (Lond) is the 18th Commander of the Sri Lankan Navy
Commodore (Dr) Odakkal Johnson (Retd), PhD Former Director Maritime History Society, Maritime Scholar and Mentor
Colonel Rohit Dev (Retd) M.Sc. Operational Art & Strategic Thinking
Jillian Carson-Jackson M.ED, FNI, FRIN President, The Nautical Institute Director, GlobalMET Assistant Editor, Peer Reviewer, the Journal of Navigation
Cmde. Sujeet Samaddar, NM (Retd.) Hony Secy, Society for Aerospace Maritime and Defence Studies.
Dr.Malini V. Shankar, (IAS) Vice Chancellor Indian Maritime University Chairman of National Shipping Board, Former Director General of Shipping (Ministry Of Shipping) Goverment of India. Member, Board of Governors, World Maritime University,Malmo, Sweden
Dr. R K Tyagi Independent Director on the Board of Air India Limited Former President, Aeronautical Society of India Former CMD of the Hindustan AeronauticsLimited (HAL)
Rear Admiral Shekhar Mital (Retd), O-7 CDR (Retd.) Dr.Eyal Pinko (PHD) Maritime Cyber and Security Former Chairman & Managing Senior Consultant. Director of Goa Shipyard (Fastest Growing Shipyard)
Dr.Patrick Verhoeven Shri Ashish Wankhede Managing Director, International Deputy Director General of Shipping , Directorate General of Shipping, (Ministry of Association of Ports and Harbors Shipping ) Govt of India.
Mrs. Suneeti Bala India’s First female Merchant Navy Chief Engineer.
For the Latest news and analysis go to www.seaandcoast.in
Dr. (Cdr) Arnab Das Director of the Maritime Research Centre (MRC) Pune (India)
Captain Radhika Menon World’s First Woman Captain to Receive An IMO Award And India’s First female Merchant Navy Captain
Captain Nick Nash, Mnm Cmmar Frgs Frn Fni former President of NAUTICAL INSTITUTE Professional Admission for NI Mumbai Branch (RN / MN Cooperative)
JULY 2022 |05
UNITED KINGDOM
Sea And Coast |Volume-06|Issue-07
SHE @ SEA Name :- Ellie Mae Travill Rank :- Deck Cadet Company :- Princess Cruises Growing up around the water, going to sea was clearly what I was meant to do. Having done 1 year as a pre-cadet and now 2 years as a cadet, I am ready to face whichever challenge comes next. I’m 19years old and living my dreams. I’ve faced the wonders and challenges that most sailors will face on the daily. It’s all worth it. The places we get to travel to will always be breath-taking and the sunsets at the end of a hard day are so rewarding. I am the point of my cadetship now where I am starting to gain more responsibility, and this allows for me to be more involved with the vessel's operations. I enjoy life onboard as the crew are one big family. There’s always someone to help support you making each contract y by.
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EXCLUSIVE COLUMN
INDIA
AMIT KUMAR SEA AND COAST
FOUNDER. CEO, EDITOR-IN-CHIEF
DAY OF THE SEAFARER The Day of the Seafarer celebrates the 1.5 million seafarers who serve at sea around the world every single day. This day is observed every year on June 25th to value seafarers and their contributions. The ultimate aim of Day of the Seafarer is to raise awareness and bring to attention the importance of seafarers and how indispensable they are to all of us. This year, International Seafarers Day will honour the unique contributions that seafarers from all around the world have made to global commerce, the economy, and civil society as a whole. This campaign offers seafarers the ability to express what is currently on their minds, whether it is an ongoing crew change dilemma or the direction that technology is headed in. Although each seafarer's voyage is unique, they all encounter similar difculties. The Day of the Seafarers campaign for 2022, with the theme "Your voyage - then and now, share your adventure," aims to examine seafarer voyages, what they include, how they have changed over time, and what has remained at the core of seafarers' reality. This day is designated by the United Nations as a day of observance, a day for everyone to recognise the crucial part that seafarers play in our global society.
The original STCW was established to guarantee an international standard of competency and welfare for seafarers, for their safety. The convention's goal was to acknowledge the contribution that seafarers made to world society and the economy. The resolution calls on governments, shipping companies, businesses involved in maritime commerce, and others to support and promote maritime trade and seafarers on International Day of the Seafarer. The day promotes discussion about seafarers, seafaring, and the welfare of those involved in it on a global public and ofcial level. Interactive media related to the Day of the Seafarer have proven to be very popular around the world, including quizzes, interactive maps, videos, and photo galleries, as well as social media hashtags and discussions. The day intends to have activities both online and in ports and seafarer centres. The rst commemoration of this day took place in 2011 when the IMO (International Maritime Organization) asked everyone to express their support via social media. On the International Day of the Seafarer IMO asked people all over the world to say thank you to seafarers on Facebook, Twitter, YouTube, LinkedIn, or by writing an inspirational blog. Talking about the Day of the Seafarer, United Nations Secretary-General António Guterres said, “Seafarers worldwide have faced immense challenges stemming from the COVID-19 pandemic including contracts extended long beyond their expiry dates and maximum periods of service, and challenges related to vaccinations, medical care and shore leave. This year’s theme — “Your Voyage, Then and Now” — is an opportunity to recognize the vital role seafarers play, and look to the future. “Above all, this means listening to seafarers themselves. They know better than anyone their needs and what this industry needs to do to address key challenges. This includes the expansion of social protection, better working conditions, addressing the crew-change crisis, adopting new digital tools to enhance safety and efciency, and making this industry greener and more sustainable,” he continued.
The establishment of this day dates back more than a decade ago. An international convention held in Manila in 2010 approved a resolution that led to the creation of the Day of the Seafarer. The International Convention on Standards of Training, Certication, and Watchkeeping for Seafarers (STCW) was majorly revised to ensure the Day of the Seafarer was observed as part of this.
For the Latest news and analysis go to www.seaandcoast.in
JULY 2022 |07
EXCLUSIVE COLUMN
ISRAEL
O-7 CDR (RETD.) DR.EYAL PINKO (PHD) Maritime Cyber And Security Senior Consultant.
Lebanon launched three unmanned aerial vehicles toward Israel’s gas rigs On Saturday afternoon, July 2, 2022, three unmanned aerial vehicles (UAVs) were launched from Lebanon toward Israel's gas rigs. The UAVs were launched by Hezbollah's UAV unit; a unit that currently operates more than 2000 aircraft of various models. This unit has operational capabilities for long distances and for various missions, including intelligence gathering and attack. The UAVs ew at low altitudes, close to sea level, in an attempt to evade the Israeli aerial radars network. In addition, each UAV ew in a different trajectory rather than a unied structure to make their detection difcult. But Hezbollah's UAVs were detected and tracked by the Israeli air defence systems. The UAVs were also detected and identied by the Israeli Navy corvettes. It is also possible that Hezbollah's intentions to use the UAVs also came as a warning by the intelligence gathering units of the Israeli intelligence community (no approval was received from the IDF spokesman). An F-16 aircraft was launched at the UAVs, intercepting one of them. The Navy's Saar 5 corvette intercepted the two other UAVs using the "Barak 1" interceptor. The three UAVs were intercepted several dozen nautical miles from the "Shark" gas rig. The "Barak 1" system is an air defence system which was installed in the mid-1990s on Israeli naval ships, and its goal is to protect the vessels from ariel threats - bombs, anti-ship missiles, aeroplanes, helicopters, and unmanned aircraft. In addition, the "Barak 1" system can also protect vessels and marine installations in the protective vessel area.
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The "Barak 1" system was developed with joint and long-standing cooperation of the Navy, IAI, and Rafael (which began in the 1980s). The system has been sold worldwide to several countries, including India, Singapore, and Chile. During the Second Lebanese War, in July 2006, a Saar 5 ship, the INS "Spear," was hit by an Iranian/Chinese C-802 anti-ship missile launched by the Hezbollah naval unit from the Beirut area. Back then, the "Barak 1," which was installed onboard the INS "Spear," did not operate (about this event in another article). The current interception of two UAVs by the "Barak 1" system is the rst operational interception of the system since the completion of its development and installation on naval ships (from the late 1990s, as stated). The IDF spokesman said that in the IDF's assessment, the UAVs were unarmed and did not pose a threat. This assessment is based on the fact that no sub-explosions were caused after they were intercepted. The IDF estimated that the UAVs were ying toward the "Shark" rig that is not yet producing gas. According to the IDF, the UAVs' mission was to car r y out a psychological-effect operation. About two hours af ter the Israeli announcement of the UAVs interception, Hezbollah conrmed that the organization had launched "unarmed UAVs toward the disputed maritime area in the “Shark” gas eld to carry out an observation mission.”
The maritime conict between Israel and Lebanon The conict over the maritime border between Israel and Lebanon is long-standing. The disputed area for Israel is less than two per cent of the total area of its exclusive economic zone, and for the Lebanese, it is about three per cent. But the gas eld in the area is large, and both sides are interested in using it to their advantage. In 2012, Israel signalled to Lebanon that it was ready to divide the territorial rights in the area, in a ratio of 42:58 in favour of Lebanon. But the negotiations since 2000 under the US mediation have been stopped and renewed repeatedly and have not reached any agreement. To the displeasure of Lebanon, Israel is already planning to produce gas from a shark reservoir, which for its part, is in its territorial waters. The area in dispute between Israel and Lebanon is very small, relatively speaking. It is only 860 square kilometres of economic water, with a "Shark" gas eld at its end, it is an area under Israeli control. After several months of negotiations, in the last few weeks, a rig reached a "Shark" eld, through which the gas is expected to be extracted. The arrival of the rig re-ooded the old controversy. Lebanon reacted sharply to the continued development of the Israeli gas eld. The Lebanese president and prime minister appealed to the US, claiming that Israel was taking a one-sided snatch to take over the maritime area.
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EXCLUSIVE COLUMN Hezbollah's secretary-general, Nasrallah, also commented on the rig's arrival and, in his speech to the media, said that the organization had set itself the goal of preventing Israel from producing gas from "Shark". In addition, Nasrallah noted that Lebanon has all the rights and power to ght against Israel. The beginning of Israeli activity to produce gas from the "Shark" gas rig is at a time when the economic situation in Lebanon is in a severe crisis, including a shortage of fuel and energy in the country. Lebanon, in desperate need of gas for energy and as a source of income, is pinning its hopes on the "shark" gas eld to get it out of the economic mud and reduce the country's galloping ination.
Conclusions The offshore gas rigs, from which Israel derives most of its energy requirements, are not only a strategic asset for the State of Israel but are also a strategic target for Israel's rivals, with an emphasis on Iran, Hezbollah, and Hamas. In any future campaign against Hamas and Hezbollah, the gas rigs will be the target for the terror organizations' missiles and rockets. This is why the Israeli Navy was equipped with the "Magen" Saar 6 ships, made in Germany and designed to protect Israel's critical strategic infrastructure at sea and near the coast. The Israeli Navy conducts ongoing and regular operational activities to secure the rigs. This is an essential mission of the Navy, requiring the ability to operate for long terms near the rigs. This mission requires the Navy ships to have real-time target detection and a short interception time from the moment of detection capabilities. The Navy's air defence systems, "Barak 1" and "Barak 8", are a critical defence layer for the rigs' security.
ISRAEL The UAVs' interception event will be studied in the coming days by many navies around the world and will be leveraged by the Israeli defence industry to sell such systems to additional navies. It should be noted that this wasn't the rst operational incident of UAV interception using naval interceptor missiles. For example, last May, Russia reported the interception of Turkish UAVs in the service of Ukraine by its Black Sea Fleet ships, using Aerial defence systems. The event highlights the importance of aerial target detection over the sea, launched from Lebanon by the Air Force and Navy Air detection and control System. The Navy and the Air force cooperate in building in real-time the aerial picture. It seems that the air defence system, the readiness of the navy ships, and the operational coordination between the air force and the Navy operated at a high operational and technological level (in contrast to the INS "Spear" incident in the Second Lebanon War). The trajectory of the UAVs, as published by the IDF Spokesman indicates that contrary to his announcement that the UAVs tried to carry out a psychologicaleffect operation, it appears that the UAVs were on an intelligence-gathering mission and were trying to test the Israeli air detection systems capabilities and responses. At the same time, there is no doubt that the use of UAVs has a signicant and essential psychological effect, an effect that Hezbollah and Iran well understand.
Hezbollah and Iran see Hezbollah's UAV systems as a strategic array, with a range of operational capabilities for intelligence gathering, maritime picture building, targeting at sea and on land, and attack capabilities (whether through "suicide" or missiles launch). Iran and Hezbollah have learned many operational, technical, and logistical lessons from the campaigns in Syria, NagornoKarabakh, Libya, and Ukraine. In those campaigns, UAVs were widely used in various surveillance, detection, and attack missions. Therefore, it will be reasonable to assume that the use of Hezbollah's (and even Hamas) UAVs will increase, hence the threats to Israel from this direction. Lebanon (and Hezbollah) are in a desperate economic situation, with the L ebanese economy collapsing. Iran is limited in its ability to assist Lebanon, as it is also in a major nancial crisis while focusing on concluding the nuclear program negotiations and removing the economic sanctions. Iran needs some "breathing" these days and cannot help Lebanon. As the crisis in Lebanon worsens, Hezbollah is trying to assist in the efforts, but mainly trying to divert the public criticism that is heard (relatively quietly) against it and blame Israel for the situation. The economic crisis in Lebanon, the outbreak of negotiations with Israel, together with the continuation of work to produce gas from the "Shark" eld may cause Hezbollah to act again (and soon) against the Israeli gas rigs and not just against the "Shark" rig. This is the most sensitive period in which the Navy, Air Force, and the intelligence community are required not to rest on the "laurels" of intercepting the three UAVs but to be even more vigilant, focusing the air control and naval control system against a variety of threats and scenarios against Israel's strategic infrastructure at sea and on the coast, from north to south. Hezbollah can operate against Israel not only using UAVs but also using fast attack boats, unmanned surface and underwater vehicles, midget submarines, and other commando operations.
For the Latest news and analysis go to www.seaandcoast.in
JULY 2022 |09
EXCLUSIVE COLUMN
TURKEY
MURAT BAKAL K Ships Technical Manager Marmara University, Technology Faculty, Mechanical Engineering Dpt. Lecturer.
IMO's Latest Requirements For Shipping Sector The 4th IMO Green House Gas (GHG) Study was initiated at the 74th term meeting of the International Maritime Organization (IMO) Marine Environment Protection Committee (MEPC). The nal version of the study report was published by IMO on 29 July 2020. Key Findings The international shipping industry is responsible for approximately 2% of the world's anthropogenic greenhouse gas emissions. For this reason, it is important to reduce emissions gradually. This study shows that the international shipping industry is on track to meet the ambitious IMO target of reducing carbon intensity by at least 40% on average across the world eet by 2030 compared to 2008. An improvement in CO2 emissions per kilometer of 1 ton of cargo transported, for example, a 30% reduction was recorded between 2008 and 2018. The study shows that although there was a 40% increase in maritime trade in the same period, total greenhouse gas emissions in 2018 were almost 7% lower than in 2008 (international shipping emissions were approximately 5% lower). The study shows that the changes in the CO2 emissions of the shipping sector are independent of the growth in the maritime trade. However, the study's projections of future CO2 growth conrm that it will not be possible to meet the target of reducing total emissions by at least 50% by 2050 without the deployment of zerocarbon fuels and propulsion systems, regardless of commercial growth. This highlights the importance of accelerating the development of zero-carbon technologies and the need for governments to support the industry's $5 billion international maritime R&D program proposal. Study Background The study was conducted by a consortium led by CE Delft company to develop estimates of past emissions from the international shipping sector and to predict future emissions; 1. The inventory of GHG emissions arising from international maritime activities between 20122018,
2. The analysis of the carbon intensity of the international maritime sector from 2008 and 2012-2018, 3. Scenarios for international maritime emissions for the years 2018-2050 were created. The study report presents four metrics for carbon intensity: Energy Efciency Operational Indicator (EEOI, g CO2/t/nm), Annual Efciency Ratio (AER, g CO2/dwt/nm), Kat CO2 Emissions Per Distance Taken (DIST, kg CO2/nm), TIME (t CO2/hr). The following substances are included in the emission inventory: 1. Six gases initially addressed under the United Nations Framework Convention on Climate Change (UNFCCC) process: carbon dioxide (CO2), methane (CH4), nitrogen oxide (N2O), hydrouorocarbons (HFCs), peruorocarbons (PFCs) and sulfur hexauoride (SF6). 2. Other related substances: nitrogen oxides (NOx), nonmethane volatile organic compounds (NMVOCs), carbon monoxide (CO), particulate matter (PM) and sulfur oxides (SOx) 3. Cyan carbon (Black Carbon – BC). General Comments The study uses a different methodology compared to the previous study to calculate the proportion of total shipping emissions attributed to the international shipping sector (rather than domestic shipping), which is the subject of the greenhouse gas reduction targets set by the Initial Greenhouse Gas Strategy adopted in 2018. The study uses voyage-based allocation, which denes international emissions as those occurring on a voyage between two ports in different countries, while the alternative “ship-based” allocation denes emissions by ship types, according to the Third GHG Study (2014). Using this new methodology, an inventory of international maritime greenhouse gas emissions for the years 2008-2012 has not been calculated.
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Much of the work focuses on developments between 2012 and 2018, rather than in 2018, compared to 2008, the base year set by the IMO for the targets agreed in the GHG Initial Strategy. In conclusion, the Study highlights how emissions have increased from 2012 to now rather than remaining signicantly lower than in 2008. In other words, it draws attention to the empty part of the glass. The new method of determining international emissions has become controversial, especially for some governments with long coastlines, as emissions from ships during international voyages between two ports of call, previously accepted internationally, are now covered by national GHG reduction commitments under the Paris Agreement. Although the effect of this new methodology is to reduce the estimates of total greenhouse gas emissions for which the inter national shipping industr y is held responsible, some of the reduction percentages to be reected in international shipping are now attributed to the "domestic shipping" sector. It is estimated that total emissions from the maritime sector in 2018 were approximately 7% lower than in 2008, while international emissions were less than 5%. Notable Forecasts and Comments from the Fourth GHG Study Report Maritime Trade Growth The study estimates that total shipping trade doubled between 1999 and 2019. In addition, when trade is measured by transport services (ton-km), it is seen that maritime transport dominates, constituting 95% of the transport services provided. 2 Emissions Inventory It is recalled that the reduction targets set by the IMO Greenhouse Gas Strategy are based on international maritime emissions using the 2008 baseline. In this study, which separates domestic shipping from international emissions on a voyage basis, GHG emissions (measured in carbon dioxide equivalent, abbreviated as CO2e) in 2008 from international shipping activities; one metric ton is dened as the number of metric tons of CO2 emissions that have the same global warming potential as another greenhouse gas. tons (the corresponding value is 940 million tons of CO2e when the method in the Third IMO Greenhouse Gas Study is used.
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SHIPPING NEWS
SEAFARER JOURNEYS IN SPOTLIGHT FOR DAY OF THE SEAFARER 2022 Seafarers are sharing their maritime voyages across social media to mark the Day of the Seafarer 2022. The maritime world is changing, fast. Ships are now operating greener, with greater digitization, and with more diverse crews. As the lifeblood of the shipping industry, seafarers are at the heart of this evolution, implementing new regulations, learning new skills and adopting safer, more efcient working practices. As the world's merchant eet traverses the oceans, the crews onboard these ships continue their career journey. The International Maritime Organization (IMO) is focusing on seafarer's experiences, voyages and journeys as the theme of the 2022 Day of the Seafarer, drawing attention to how the onboard working environment continues to change. This focus aligns with UN Sustainable Development Goal 14: Conserve and sustainably use the oceans, seas and marine resources for sustainable development. This year's Day of the Seafarer theme - "Your voyage - then and now, share your journey" - invites seafarers across the globe to share images and information about what truly resonates with them – whether a positive experience or challenging circumstances. IMO Secretary-General Kitack Lim said: "Every seafarer's journey is unique. Yet many of the challenges and opportunities are shared. On this Day of the Seafarer, we can look to the future. Seafarer's voyages are changing – in the form of new technologies and equipment, increasing use of alternative fuels and further responsibilities for a greener and more sustainable future for the industry and for the marine environment."
The 2022 Day of the Seafarer campaign draws global attention to how the onboard working environment continues to change.
As a former seafarer himself, the Secretary-General is aware that maritime journeys can extend beyond being at sea to a career on land, and he encourages all seafarers – past and present – to be a part of the event. "I invite you to share photos from your rst voyage and your most recent voyage on social media. We want to see how far you have come in your journey and celebrate your progress." For the Latest news and analysis go to www.seaandcoast.in
JULY 2022 |11
SHIPPING NEWS Ongoing challenges IMO Secretary-General Lim added, "On the International Day of the Seafarer on June 25th, it is important that we all remember the challenges that seafarers have faced over the past two years and are still facing, including difculties to effect crew changes, lack of designation as key workers and inability to access medical care and vaccines.
Seafarers Your voyage - then and now, share your journey’
"I also remain concerned about the seizure of vessels engaged in legitimate trade outside established legal processes. I urge all Member States to use relevant diplomatic channels to resolve their differences so that international shipping and especially seafarers are not unduly impacted. As I have said in the past, seafarers and shipping should not become collateral victims of larger political issues. The welfare of seafarers and the need for international shipping to move freely and unhindered is critical to the continuous operation of global supply chains, for the benet of all peoples of the world." United Nations Secretary-General António Guterres said, "Seafarers worldwide have faced immense challenges stemming from the COVID-19 pandemic — including contracts extended long beyond their expiry dates and maximum periods of service, and challenges related to vaccinations, medical care and shore leave. This year’s theme — “Your Voyage, Then and Now” — is an opportunity to recognize the vital role seafarers play, and look to the future. "Above all, this means listening to seafarers themselves. They know better than anyone their needs and what this industry needs to do to address key challenges. This includes the expansion of social protection, better working conditions, addressing the crew-change crisis, adopting new digital tools to enhance safety and efciency, and making this industry greener and more sustainable," he continued. Read the full speech here.
Join the campaign: Ÿ
As in previous years, the 2022 Day of the Seafarer event will predominantly be held on social media to draw attention to the contribution that seafarers make to shipping and world trade.
Ÿ
Participants in the campaign can use the hashtag for 2022 '#SeafarerJourney' or the regular hashtag '#DayOfTheSeafarer' and join in the conversation.
Ÿ
Seafarers are invited to post two photos using the hashtags: one of their rst voyage and another of their most recent voyage. We would also like to know what has changed during your maritime voyage. Is shipping greener? Is the technology better? Are you more skilled? What have you learnt?
Ÿ
Supportive organizations, shipping companies and port organizations are also invited to show their appreciation for seafarers by resharing their posts or using the hashtags and discussing the importance of seafarer journeys.
Ÿ
Members of the public are encouraged to post about the many ways in which seafarer journeys benet their lives (e.g. bringing them food, electronics, medicines, etc.) using the same hashtags.
Photos and posts can be shared on Facebook, LinkedIn, Twitter and Instagram – and tagging the IMO will allow us to view and reshare some of the posts.
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SHIPPING NEWS
SEAFARERS YOUR VOYAGE - THEN AND NOW, SHARE YOUR JOURNEY’
THE SECRETARY-GENERAL MESSAGE ON THE INTERNATIONAL DAY OF THE SEAFARER 25 June 2022 This includes the expansion of social protection, better working conditions, addressing the crew-change crisis, adopting new digital tools to enhance safety and Their contribution is immeasurable. Ships transport a efciency, and making this industry greener and more remarkable 90 per cent of the world’s commodities — from grains and energy, to consumer goods and much sustainable. more. Without ships and the women and men who work On this International Day of the Seafarer, we renew our on them, economies would stall and people would starve. commitment to supporting seafarers everywhere, and Seafarers worldwide have faced immense challenges honouring the knowledge, professionalism and stemming from the COVID-19 pandemic — including experience they bring to this essential industry. contracts extended long beyond their expiry dates and maximum periods of service, and challenges related to vaccinations, medical care and shore leave.
THE WORLD COUNTS ON SEAFARERS.
This year’s theme — “Your Voyage, Then and Now” — is an opportunity to recognize the vital role seafarers play, and look to the future. Above all, this means listening to seafarers themselves. They know better than anyone their needs and what this industry needs to do to address key challenges.
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SHIPPING NEWS
Defense services welcome Central Government's new military recruitment scheme Agnipath His estranged rst cousin BJP MP Varun Gandhi questioned the short tenure of service which the Cabinet and service chiefs have eulogised as“transformative” . It is pertinent to note that our neighbour on the Eastern front, China conscripts a whopping 45 lakh youth annually whereas only 46,000 Agniveers will be inducted into the Armed Forces. ( Israeli conscripts and American volunteer soldier y are kept in reserve for future operations,whereas as mentioned in a paragraph above, all of the Indian recruits will A PIB HQ press note distributed to have to re-enrol after the contractual term. ) Mumbai media by Ministry of Defence representatives at a presser addressed by At the Mumbai press meet, Western Naval the Western Naval Command Chief Command Chief Singh explained that the bulk Ajendra Bahadur Singh states that of new entrants would be absorbed in the Army, and the rest divided between the Air Force and "The enrolment will be undertaken the the Navy. urban online centralised system for all three services with specialised rallies and While aggrieved youths lambast the short campus interviews from recognised service contractual scheme, some quarters technical institutes". have warned that unemployment could aggravate social tension. If Defence chiefs have uniformly welcomed the Agnipath, several veterans It may be noted in this regard that in the US, have criticised the new scheme. Soundinf post traumatic stress disorder a note of caution in his blog, Lieutenant General (Retired) P R Shankar, wrote, (also called: PTSD) and death by suicide is high "The Tour of Duty does not seem to be a for veterans. Also, many Israeli soldiers enjoy good idea. Proceed with caution." travelling to India ( especially Himachal and Goa) "to wash the army out of their hair."
By. Ronita Torcato
Senior Journalist, Accredited Govt of Maharashtra.
AGNIPATH :- Indian youth wants security, not short term uncertainty concludes Ronita Torcato in this summary of the new military recruitment scheme The top brass from the Defence services and captains of industry have welcomed the Central Government's new military recruitment scheme Agnipath even as Opposition parties slammed it and violent protests erupted across the nation. The scheme offers four-year military training ( aka Tour of Duty in an imitation of American nomenclature) to youth aged between 17.5 years and 21 years. New recruits will be known as 'Agniveers'. However,only 25%.will be retained "based on organisational requirements and policies promulgated by the armed forces from time to time" as a governmental media release puts it.
In Rashtriya Janata Dal leader Tejashwi Yadav's prognosis, law and order problems could ensue since "BJP and Sangh Parivar may exploit the s c h e m e t o p ro v i d e a r m s t r a i n i n g , a t gover nment expense, to its hate-lled supporters and fringe elements".
The remaining 75% will have to seek employment elsewhere with the Golden Handshake lumpsum of Rs 11.71 lakhs on completion of the four-year stint, or re-apply for regular enrolment in the military services. For the Central Government, this is a sound move to lay down the 'burden' of pensions and other entitlements. For industry, it entails access to, dare we say it, well trained security guards. That goes too, for the majoritarian Bharatiya Janata Party, whose ofce-bearer has actually gone on record saying as much! Thankfully, the bonus of a degree from the well-regarded Indira Gandhi National Open University ( IGNOU) on completion of four years of service will enhance employment prospects for youth enamoured with the decent wage, subsidised canteens, health services, gratuity, pension and above all, the prize social cachet that accompanies the Man ( and Woman ) in Uniform: RESPECT & ADMIRATION.
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O n Tw i t t e r, C o n g r e s s M e m b e r o f Parliament (MP) Rahul Gandhi termed it an “uncalled for” move which" reduces the operational effectiveness of our armed forces at a time when India is facing threats on two fronts.'
Recruitment in the new scheme will be on an “all India-all class” basis from technical institutes. Protesting youths have complained that the Agnipath scheme has been introduced in utter disregard of their having appeared for an examination and passed the requisite physical tests. Responding to a query from this correspondent, WNC chief Singh had said that the new scheme targeting skilled youth would not marginalise women or rural youth. Indeed, two days after the shocking rash of riots, Defence chiefs of staff told the media that females will get inducted as well. Air Marshal Manavendra Singh, Commanding-in-Chief, Headquarters Training Command, Indian Air Force, told.
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SHIPPING NEWS the press that Agniveers will be given preference in Central Armed Police Forces like CISF and Assam Ries once their term is over. Signicantly,the recruitment of 25,000 'Agniveers' and the process for recruitment of the remaining 15,000 will be kickstarted immediately instead of the next 6 months as was originally envisaged. Vice Chief of Army Staff Lt. General B S Raju told PTI that the recruitment drive will be in all of the 773 districts across the country. Concurring with the Cabinet, Lieutenant General Arvind Walia, Chief of Staff, Southern Command, described the new 'Agnipath' scheme as "transformational reform" for the Army and the nation as it aims to bring paradigm changes in the Army's human resource management.
On its part, the BJP-led government at the Centre has blamed recruiting cum training agencies for the unrest but failed to assuage the concerns of the protesters not to speak of the Opposition parties.
Speaking to reporters at the Southern Command headquarters, Lt General Walia said the scheme envisages the promotion of nationalism by offering skilled manpower and ensuring a more youthful prole of the Army.
Opposing the scheme, RLP leader and Nagaur MP Hanuman Beniwal had announced a protest on June 16 at all district headquarters of Rajasthan on the ground that "there is a strong resentment among youth against the Center for not holding army recruitment rallies for the last two years and not completing the process of recruitment rallies held earlier. "
"I wish to emphatically state that the Army will continue to retain its rich legacy, history, traditions, military values and culture - based on the principles of cohesiveness, camaraderie, and the core ethos of 'Naam, Namak and Nishan'", he said.
Senior Congress leader Bhupinder Singh Hooda and Leader of Opposition in the Haryana Assembly said "It has far-reaching consequences and these have not been fully considered while preparing this scheme. In the long run, the policy would have a detrimental impact on our national security... it seems the government is compromising with the security of the country with the intention of saving money and halving the strength of the armed forces," the former Haryana chief minister alleged.
"The dividends of short military service to the nation, society and the youth of the nation are immense.This includes the inculcation of patriotism, teamwork, enhancement of physical tness, ingrained loyalty for the country and availability of trained personnel to boost national security in times of external threats, internal threats and natural disasters," the Lt General said.
Hooda pointed out that youth have been rendered overage by the closure of Army recruitment for the past three years due to the Covid pandemic.
The Indian armed forces will not compromise with the quality of cadets while recruiting young 'Agniveers' under the newly launched Agnipath scheme for four years, asserted Air Marshal Manavendra Singh,Ofcer Commanding-inChief, Headquarters Training Command, Indian Air Force. Air Marshal Singh also told reporters, "There will be a total of 250 centres set up all over India in collaboration with the Centre for Development of Advanced Computing( C-DAC) our technology partners for the last couple of years". But sceptics are unconvinced. As a government ofcial said, "the defence establishment can train people for all kinds of specialisations,but can it truly inculcate values in impetuous youth which is unable to analyse and introspect? " Frighteningly, he predicted civil war.
He also said that regimental honour is integral to the tradition of the armed forces and recruits would lose their attachment to the emotional connect with the regiment.( Under the regular long service scheme, recruitment has been on the basis caste/community and regions and soldiers have served in regiments harking to Dogra, Punjab, J&K, Rajput, Maratha, Jat and Sikh.) As of writing, the Government is holding out the threat of punitive action to vandals: Agnipath aspirants must certify that ‘they were not part of protest or vandalism. It has announced a slew of measures ( see Box) which seems to have had a sobering effect. It has also swung into action against the owners of certain coaching classes on accusations of instigating the riots.
Defence and Home Ministries reserve 10 per cent posts in Coast Guard and Defence PSUs, CAPFs and Assam Ries for Agniveers. State governments announce preference for Agniveers in state police recruitment. Two-year age relaxation for recruitment of Agniveers for the rst year. MHA to give three years of age relaxation beyond the prescribed upper age limit to recruitments in CAPFs and Assam Ries. Employment opportunities in the Merchant Navy for Agniveers from the Indian Navy, six service avenues for induction announced. National Institute of Open Schooling to launch customized courses for 10th pass Agniveers and help them obtain 12th pass Certicate. Education Ministry to recognize in-service training received by Agniveers as credits for graduation. Customized Degree courses by IGNOU for Agniveers to enable them to pursue civilian careers. Agniveers to get Skill India certication while in service to help them pursue opportunities in entrepreneurship and civilian jobs. Public Sector Banks, Insurance Companies & Financial Institutions to support Agniveers through a suitable credit. (Compiled from agency, Newspapers and PIB Inputs) Pix of Western Naval Command chief Ajendra Bahadur Singh at the press meet at the Naval HQ in Mumbai.
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SHIPPING NEWS Support for South Africa to prevent stowaway cases and to ratify the FAL Convention
Stowaway cases are a human tragedy and hamper the economy of the country by increasing transport costs for import and exports ows. South African government, port and shipping industry representatives have attended a national seminar on the prevention of stowaways in Cape Town (27 to 29 June), organized by the IMO in collaboration with the Department of Transport of South Africa. Stowaway incidents cause considerable difculties for shipmasters, shipping companies, shipowners and ship operators in disembarking stowaways from ships into the care of appropriate authorities. Globally, the number of stowaway incidents in the year February 2020 to February 2021 was 364, with a total 1,050 stowaways, Costs were an estimated USD$8.9 million, according to the International Group of P&I Clubs. Participants in the seminar exchanged views on stowaway prevention and incidents and discussed the challenges and the further measures needed on board ships and at the main ports of South Africa in order to prevent and deal with stowaways incidents. Pragmatic solutions for ship owners, masters and crew on board ships are needed and the objective of all stakeholders is to come out with a holistic and integrated approach on risk management, port security and procedures to facilitate the disembarkation of stowaways. This will reduce the impact of stowaways incidents on trade and the economy of South Africa. Other attendees at the seminar included representatives from the main South African ports and from the United Nations Refugee Agency (UNHCR), International Organization for Migration (IOM), International Standardization Organization (ISO), BIMCO, the International Group of P&I Clubs, the Port Management Association of Eastern and Southern Africa (PMAESA), the United States Coast Guard, the Intergovernmental Standing Committee on Shipping (ISCOS), shipping companies (Maersk and MSC) and P&I correspondents in the country. 16|JULY 2022
An additional two-day national seminar follows on 30 June and 1 July with the main border agencies involved in the clearance of ships in South Africa, in order to gain further understanding of the provisions of the IMO Convention on Facilitation of international maritime trafc, and to support South Africa in its process to ratify the FAL Convention. The aim is to support government agencies in the implementation of the convention, which is now going through the formal process of ratication by South Africa. An additional two-day national seminar follows on 30 June and 1 July with the main border agencies involved in the clearance of ships in South Africa, in order to gain further understanding of the provisions of the IMO Convention on Facilitation of international maritime trafc, and to support South Africa in its process to ratify the FAL Convention. The aim is to support government agencies in the implementation of the convention, which is now going through the formal process of ratication by South Africa.
The minister visited to assess the support provided and interacted with the affected people. Shri Sonowal extended his heartfelt condolences to the families and next of kin of all those who lost their lives in these devastating ood. To assess the damage & destruction caused by these devastating ood, a Central team would be visiting soon, informed the Union Minister. After the visit, the team will prepare a report and submit it to the government for all possible support for people and provide assistance. Speaking after the visit to the ood relief camp Shri Sonowal said the ood situation in Assam is grim and the government is working towards providing relief & support to all the people affected in this ood. He said Prime Minister Shri Narendra Modi and Union Home Minister Shri Amit Shah have enquired about the situation on ground. He said they have expressed concer n at the fur y of this unfortunate natural calamity and assured all possible help from the centre.
Participants are being trained about the concept, practical planning and implementation of a Maritime Single Window for ship clearance, a mandatory requirement of the FAL Convention from 2024. Participants will discuss and identify the main challenges involved in digitalizing information exchange in the ship-shore interface. The national seminars are funded by IMO’s Integrated Technical Cooperation Programme (ITCP).
Shri Sarbananda Sonowal visits the Flood Relief Camp at Nagaon, Assam to assess support to affected people
The minister, while interacting with the ofcials, thanked all the staff for extending all possible support to the ood affected people & urged them to continue in that direction towards welfare of the people. The Minister further added that the team Assam under Chief Minister Shri Himanta Biswa Sarma are working hard to tackle the situation and he has been talking to the Chief Minister on a regular basis in this regard. The Union Minister also reviewed the ood situation on the either side of National Highway between Guwahati and Raha. The Minister was briefed about rescue and relief support provided in this region.
Union Minister of Ports, Shipping & Waterways and Ayush, Shri Sarbananda Sonowal today visited the relief camp set up at Phulaguri Higher Secondary School, Nagaon, Assam for ood affected people of the region.
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PORTS NEWS Dutch Utility Gets Ready to Distribute Hydrogen in North Sea Port Area
Dutch state-owned utility company Gasunie has started the construction of a national hydrogen network that forms part of a grand plan by the Netherlands to become a European hub for the zero-carbon energy source. Two years after the government unveiled the country’s strategy on green hydrogen - which will see it scale up the installed electrolysis capacity to 3 to 4 GW by 2030 - Gasunie announced that it has embarked on the implementation of a network of hydrogen pipelines that will link up the carbon-free hydrogen supply and demand. Approximately 85 percent of the national network will consist of recycled natural gas pipelines. Gasunie will develop and operate this shoreside grid. Due to the expected growth in offshore hydrogen production in the North Sea, the government will also decide if the state utility can also fulll the role of grid operator at sea. “We believe that hydrogen will play a major role as the energy carrier of the future. We now start the construction of the public hydrogen network in the Netherlands, which will be a great boost for the transition towards a more sustainable energy system,” said Han Fennema, Gasunie CEO. The hydrogen network is expected to connect the country’s seaports with the large industrial clusters, storage locations and neighboring countries like Ger many and Belgium, facilitating the growth of the hydrogen market in Europe. In May, Gasunie entered into a partnership with Belgian company Fluxys to work on the development of national hydrogen networks between the two countries. The networks would be interconnected in the North Sea Port area, which stretches from Ghent to Vlissingen and Terneuzen. It will be designed to supply hydrogen to companies in the 40-mile-long port area. In April, Gasunie, Rotterdam-based bulk products supplier HES International (HES) and Dutch storage specialist Vopak signed a deal to jointly develop an import terminal for green ammonia as a hydrogen carrier.
The Netherlands wants to leverage its substantial offshore wind potential in order to scale up carbon-free hydrogen for use in industrial production, transport fuel and energy storage, in line with its ambitions to attain net zero status by 2050.
Among the companies entering into the agreements for the port development projects is the Brazilian division of France’s Louis Dreyfus Company, a leading agriculture, food processing, international shipping, and nance group. Other companies participating in the privatization efforts for the ports include Logistics Port Terminal, Brazilian Company of Terminals and General Warehouses, Atem's Oil Distributor, Logistic Slabs, and Porto Guará Infrastructure.
According to Gasunie, industries are currently responsible for about 25 percent of national CO2 emissions. The use of hydrogen as feedstock and fuel can reduce emissions in industries and make a major contribution to the Netherlands' climate targets.
Minister of Infrastructure, Marcelo Sampaio, highlighted that the government has now completed 138 privatization contracts since 2019. He said the investments slated for the ports will make them more modern and productive, creating greater efciency for the entire supply chain.
Ammonia can be used as-is or can be stripped down into nitrogen and hydrogen, delivering useful H2 without the difculty of transporting it by sea.
Brazil Gets $2 Billion in Private Commitments to Modernize Ports
Brazil has secured agreements calling for approximately $2 billion in private investments to expand six of the country’s ports. It is the latest in a series of steps the government is taking to modernize port operations and expand the capabilities of the countr y’s seaports through privatization. The Ministry of Infrastructure entered into agreements for the construction of new terminals, in greeneld areas, in the ports of Santos, Santarém, Paranaguá, Manaus, and Ponta de Pedras. The projects will expand the range of services and the storage capacity of solid, liquid, and gaseous bulk, general, and containerized cargo. During a signing ceremony, the minister said these projects would create greater competitiveness for Brazilian trade in the international market. In addition, they will be new alternatives for logistics chains, increasing competition and, potentially, reducing operating costs. “Ports have become part of the solution to Brazil's problems,” said National Secretary of Ports and Waterway Transport, Mário Povia. “We are delivering efcient logistics to the port sector, thanks to the modern legislation we have today and the trust of the private sector.”
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The privatization of the ports is part of a broader strategy being implemented by the government designed to attract corporations to participate in enhancing Brazil’s infrastructure including the railways, airports, and highways, as well as the ports. The hope is that by offering concessions in which companies pay the government a fee to operate the facilities and commit to large investments to enhance the infrastructure Brazil will spur its lagging economy. The Financial Times reported that Brazil could secure more than $50 billion in commitments for 100 infrastructure projects by the end of 2022.
Stockholm and CMB.Tech Plan Hydrogen Fueling at New Port
In the latest effort to develop the infrastructure to support the use of hydrogen in the shipping industry, Ports of Stockholm and CMB.Tech have agreed to a strategic investment to make Stockholm Norvik Port Sweden’s most climatesmart and sustainable port. The Belgian company owned by the Saverys family is seeking to build a leadership position in offering hydrogen solutions for the shipping and transport sectors. The investment in hydrogen will encompass port operations and will also expand service offerings to shipping companies and haulage r ms, as well as other customers and collaboration partners. The goal is to have the rst hydrogen-fueled terminal truck in operation at Stockholm Norvik Port in 2023. JULY 2022 |17
PORTS NEWS “Hydrogen will play a crucial role in converting to fossil fuel-free transport, both on land and at sea. We are therefore extremely pleased to announce this partnership with CMB.TECH and this drive for hydrogen,” said Anna König Jerlmyr, Mayor of Stockholm. “This is entirely aligned with the ambitious environmental goals of Ports of Stockholm for operations to be fossil fuel-free by 2030.” According to the companies, the hydrogen project is one stage in the development to use more climate-smart fuels for overland transport and shipping. The rst phase will be focused on converting port vehicles to run on green hydrogen. The investment, however, also means the start of being able to offer customers and collaboration partners the possibility to convert to hydrogen, by building a hydrogen fueling station adjacent to the port. “This is the rst port in Sweden we have worked with, and we hope to be able to contribute with our knowledge and experience in converting from diesel to hydrogen,” said Alexander Saverys CEO of CMB.TECH. “Being able to enter into this partnership with Ports of Stockholm at the new freight port, Stockholm Norvik provides entirely new possibilities to further develop it as a climate-smart port.” Built as a replacement to the container terminal at Frihamnen in central Stockholm, work on the Norvik port began in September 2016 and the rst containership arrived at the port in May 2020. The new port includes both RoRo and container terminals. It provides deeper draughts, longer quays, and larger terminal areas with direct access to the region’s highways and railway. The port was declared fully open in December 2020 and is part of a long-term investment in the infrastructure designed to support growth in the greater Stockholm area.
Legislation Proposes Port Priority for Ships Carrying U.S. Exports
Looking to expand the emphasis on export shipping from U.S. ports, three members of the U.S. House of Representatives from California proposed new legislation that would require U.S. ports to emphasize exports by giving priority to carriers that demonstrate their predominance of export bookings versus carrying empty containers or departing with unused capacity. While clearing the way for the Ocean Shipping Reform Act of 2022 to become law last month by accepting the Senate version of the legislation, members of the U.S. House said they would seek additional legislation addressing points removed from the bill emphasizing exports. “Foreign exporters’ access to the American market and our consumers is a privilege, not a right. Cargo ships looking to ofoad foreign-made products and prot off West Coast ports must provide opportunities for American exports in retur n,” said Congressmen John Garamendi, one of the co-sponsors of the bill. Representatives Jim Costa and Mike Thompson joined in introducing the American Port Access Privileges Act. According to the co-sponsors of the legislation, the American Port Access Privileges Act would ensure fair trade for U.S. businesses and keep hard-won foreign markets accessible to California’s agricultural growers as well as other exporters. The bill calls for establishing a secondary berthing preference for ocean-going commercial vessels servicing multiple ports in the United States or with signicant cargo bookings of American exports. Priority they write should continue to be with the U.S. military as well as Jones Act, and other US-agged vessels and the bill also seeks to codify the current preferences in place at many major American ports for these segments. However, after those vessels, ships carrying exports should be prioritized.
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“Our legislation would put American exports at the front of the line at our ports to support American businesses and workers. Congress must restore fairness at our ports for American exporters to help reduce the United States’ longstanding trade imbalance with countries like China,” said Garamendi. To receive the port priorities, vessels would have to document that they have cargo booking for exports totaling either 51 percent of the vessel’s carrying capacity by weight or 51 percent of the vessel’s TEU capacity that would be loaded before calling at a foreign port. The cargo could be loaded in single or multiple U.S. ports, but foreign vessels calling at more than one U.S. port before departing for international ports would also be eligible for the priority berthing in U.S. ports. "Supply chain disruptions are hurting California farmers and exporters like never before," said Costa. "We need to remove bottlenecks and mitigate congestion at our ports to carry out American exports.” Not later than 90 days after the passage of the legislation, the Secretary of Transportation would be required to issue the denitions of preferential berthing. The U.S. Department of Transportation’s Bureau of Transportation Statistics would also be required to collect data on berthing and cargo practices at U.S. ports to evaluate ocean carriers’ practices for port calls and cargo bookings, as well as the impact of preferential berthing afforded under the bill. The “American Port Access Privileges Act” is endorsed by the Agriculture Transportation Coalition (AgTC), National Milk Producers Federation, and US Dairy Export Council.
Hundreds Injured, 13 Killed When Chlorin Tank is Dropped in Aqaba
A toxic cloud of chlorine gas was released in a loading accident Monday afternoon in the Jordanian port of Aqaba on the Red Sea. State media is reporting that 13 people died and at least 260 others were injured when the gas cylinder ruptured releasing the toxic chemical onto the ship and surrounding dock area.
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PORTS NEWS Major European Ports are Experiencing Congestion Challenges
Remarkably, there is sufcient labor deployed at London Gateway Port. The overall situation is at a good level despite the port having a busy vessel line-up. In many other parts of Europe, including Poland, Denmark, Sweden and Finland, limited trucking availability continues to hamper the movement of goods.
State media released the close circuit TV images of a normal day of operations in the port. A vessel was alongside loading about 20 tanks of liquied chlorine gas, which is used as a disinfectant and water purication agent. The canisters were being exported to Djibouti. Around 5:00 pm local time a truck can be seen alongside the ship with a shoreside crane lifting the canister. The truck drives away and another is preparing to come alongside when the tank suspended by the crane over the ship suddenly drops to the deck below. The toxic gas is pressurized and cooled for shipment and when the tank is punctured a cloud envelops the local area. People are seen running from the advancing cloud. Initial reports indicate that the crane lifting the tank malfunctioned. Some reports suggest that one of the main wires on the crane broke causing the release of the tank. The tank reportedly held 25 to 30 tons of chlorine. World Health Organization ofcials explained that chlorine is heavier than air so it hangs close to the ground and does not easily dissipate. Further, the gas does not explode but the cloud was driven by the release of the pressure in the tank. It is an irritant to the skin but can cause severe damage when inhaled. Civil Defense ofcials cordoned off areas of the port while broadcasting warnings to residents to remain indoors and close their windows as a precaution. They pointed out that the port area is not close to residences, however, with the wind possibly pushing the gas to the south they ordered a popular tourist beach near the port evacuated. Health ofcials reported that the hospitals in Aqaba were all full and that they were using emergency eld hospitals. State media is reporting as many as 199 people were taken to the hospitals and there were reports that some would be airlifted to the capital or other major facilities. Jordan’s Prime Minister traveled to the area and announced that an investigation would begin tomorrow headed by the Minister of the Interior. Operations were initially suspended across the port but late today port ofcials said operations were continuing. They however were ordering ships to remain away from the area of the accident.
Stockholm and CMB.Tech Plan Hydrogen Fueling at New Port While congestion maybe easing at key ports in US, the problem is far from over in ports in other parts of the world, especially Europe. In a market update last week, Hapag Lloyd in d ic ated th at it w ould in trod uc e congestion surcharges at two French ports. “The congestion at Le Havre and Fos- SurMer has reached critical levels. Therefore, a congestion surcharge is coming into effect, applicable for all import and export truck carrier haulage moves, for all container types,” read a statement by Hapag Lloyd. In addition, other major European terminals are also witnessing reduced productivity, primarily caused by labor shortages and port congestion. Although port operations at Antwerp remain stable, the upcoming holiday season could lead to reduced labor availability. The average yard utilization stands at 80 percent, an indication that most of the storage at the port is occupied. An almost similar situation is visible at Europe Container Terminals (ECT), Rotterdam where yard space is up to 85 percent full, while reefers are at 100 percent of the plug utilization. Long dwell times are also observed for transshipment and import cargo, though there is improvement in pick-up rates. At the Container Terminal Burchardkai (CTB) Hamburg, Germany, ongoing labor disputes are causing delays and container backlogs. Currently, the yard utilization stands at 83 percent, mainly due to longer port stay time and longer pick-up times for the imports. In Southampton Port, London, used yard space is at 81 percent, but the situation is manageable at reefer terminal, with only 65 percent of space utilized.
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In the latest effort to develop the infrastructure to support the use of hydrogen in the shipping industry, Ports of Stockholm and CMB.Tech have agreed to a strategic investment to make Stockholm Norvik Port Sweden’s most climatesmart and sustainable port. The Belgian company owned by the Saverys family is seeking to build a leadership position in offering hydrogen solutions for the shipping and transport sectors. The investment in hydrogen will encompass port operations and will also expand service offerings to shipping companies and haulage rms, as well as other customers and collaboration partners. The goal is to have the rst hydrogen-fueled terminal truck in operation at Stockholm Norvik Port in 2023. “Hydrogen will play a crucial role in converting to fossil fuel-free transport, both on land and at sea. We are therefore extremely pleased to announce this partnership with CMB.TECH and this drive for hydrogen,” said Anna König Jerlmyr, Mayor of Stockholm. “This is entirely aligned with the ambitious environmental goals of Ports of Stockholm for operations to be fossil fuel-free by 2030.” According to the companies, the hydrogen project is one stage in the development to use more climate-smart fuels for overland transport and shipping. The rst phase will be focused on converting port vehicles to run on green hydrogen. The investment, however, also means the start of being able to offer customers and collaboration partners the possibility to convert to hydrogen, by building a hydrogen fueling station adjacent to the port.
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PORTS NEWS “This is the rst port in Sweden we have worked with, and we hope to be able to contribute with our knowledge and experience in converting from diesel to hydrogen,” said Alexander Saverys CEO of CMB.TECH. “Being able to enter into this partnership with Ports of Stockholm at the new freight port, Stockholm Norvik provides entirely new possibilities to further develop it as a climate-smart port.” Built as a replacement to the container terminal at Frihamnen in central Stockholm, work on the Norvik port began in September 2016 and the rst containership arrived at the port in May 2020. The new port includes both RoRo and container terminals. It provides deeper draughts, longer quays, and larger terminal areas with direct access to the region’s highways and railway. The port was declared fully open in December 2020 and is part of a long-term investment in the infrastructure designed to support growth in the greater Stockholm area.
Shippers lobby Biden as dreaded West Coast port labor contract expiry looms
The contract covering workers at 29 ports stretching from California to Washington state has been on Biden’s radar for months and he took the unusual step of meeting with the ILWU and PMA in Los Angeles on June 10. That is because disruptions at the West Coast ocean trade gateways that handle almost 40% of U.S. imports could roil the nation’s battered supply chains, stoke ination and threaten a weakening economy. Work slowdown or stoppages at those ports could send transportation costs even higher, exacerbating pressure on a softening economy that is sinking Biden’s approval ratings. “We’ve never had a White House that is all over these negotiations the way they are now,” said Peter Tirschwell, vice president of maritime, trade & supply chain at S&P Global Market Intelligence.
The last West Coast port labor contract negotiation broke down in 2015 after nine months of talks. Dockworkers stopped work for eight days, a move that gummed up U.S. supply chains and siphoned an estimated $8 billion from the Southern California economy.
Groups representing industries from agriculture and apparel to trucking and toys requested that Biden work with the International Longshore and Warehouse Union (ILWU) and the Pacic Maritime Association (PMA) employer group to extend the current contract, commit to ongoing good-faith negotiations, and avoid any activity that would cause further disruptions. “We know the administration understands the economic signicance of these negotiations,” they wrote in a letter sent to Biden ahead of the contract expiration at 5 p.m. PDT Friday (0000 GMT Saturday).
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Manufacturing modern quay cranes to handle giant vessels at King A b d u l a z i z Po r t i n Dammam
The ILWU and PMA, which declined comment for this report, said in a rare joint statement on June 14 that they were not planning any work stoppages or lockouts that would worsen supply chain logjams. That matters because when the contract expires, so does its “no strike” clause, Tirschwell said.
More than 150 local, state and national trade associations implored U.S. President Joe Biden to push for a smooth and swift resolution to West Coast port labor talks ahead of late Friday’s expiration of the contract covering more than 22,000 workers.
Meanwhile, wary shippers are not taking any chances. They are routing cargo away from the West Coast to avoid potential labor-related slowdowns, particularly at the nation’s busiest seaport complex at Los Angeles/Long Beach that handle nearly $500 billion in cargo annually. That is driving up their costs and contributing to backups at ports in New York/New Jersey, Savannah and Houston.
History suggests that an extension is not likely. The union in November rejected a one-year contract extension, saying its members had already granted a three-year extension to the current contract. Automating the movement of containers at the ports, resulting in fewer jobs, appears to be a key issue in the talks, which have been ongoing since May. While both sides have not identied the issue specically, they have released dueling studies on the impact of automation and traded barbs in the media. In an interview with Reuters this week, U.S. Labor Secretary Marty Walsh said he checks in weekly with ILWU and the PMA. They “continually tell me that we’re in a good place. It’s moving forward,” Walsh said.
Under the supervision of the Saudi Ports Authority (Mawani), Saudi Global Ports (SGP) and Shanghai Zhenhua Heavy Industries Company Limited (ZPMC) have today signed an agreement to manufacture three state of the art quay cranes at King Abdulaziz Port in Dammam. The deal was signed by Chairman of the Board for Saudi Global Ports Abdulla Zamil, CEO of Saudi Global Ports Edward Tah; and Secretary of the Party Committee, Chairman and President of ZPMC Liu Cheng Yun and Senior Vice President and Executive Board Member of ZPMC Liu Qi Zhong. Witnesses of the signing included President of Saudi Ports Authority (“MAWANI”) Omar Hariri; Director-General of King Abdulaziz Port Captain Fahad Alamer; and Regional CEO of Middle East and South Asia and Head of Group Business Development of PSA International Wan Chee Foong. The agreement reects SGP’s commitment towards transforming King Abdulaziz Port in Dammam into a globally competitive and sustainable container hub in line with the commercial concession signed with Mawani worth SR7 billion. The modern crane equipment will have a minimum outreach of 25 rows, which enables the handling of next generation giant vessels at optimum efciency and scale.
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CRUISE INDUSTRY NEWS SGP is also assessing the possibilities to equip the cranes with remote operation and photovoltaic panels to harness solar energy to achieve sustainability and automation of port operations.
An Inside Look at the COVID-19 Outbreak Aboard the Zaandam
According to the authors, the operator maintained the cruise would be safe and suggested that Zaandam was ‘immune’ to the threat of COVID-19 - despite the fact that the company had been forced to deal with three other major outbreaks on its other vessels.
The President of Mawani stated on this occasion that the deal was a direct result of the Smart Ports initiative which was launched earlier this year to boost the competitive edge of Saudi ports and keep pace with a continuously evolving maritime industry, which calls for developing logistical performance and container ports in the Kingdom given its strategic position as a hub connecting three continents and its leading role in regional and global trade in line with the National Transport and Logistics Strategy (NTLS). Whereas the Chairman of the Board of Directors at SGP highlighted that his company continues to take bold steps to transform the Kingdom into a global logistics powerhouse in line with Saudi Vision 2030 objectives, along with achieving sustainability by looking at possibilities of harnessing renewable energy in future quay crane operations, supporting the Saudi Green Initiative, and participating in the global drive to combat climate change. Wan Chee Foong said: “PSA is pleased to have worked alongside Saudi Global Ports to develop the optimal design and specications of the quay cranes and support the rigorous evaluation p r o c e s s . P S A’ s c o m m i t m e n t t o t h e transformation of King Abdulaziz in Dammam into a leading port with long-term sustainability, automation, digitization and integrated supply chain goals will ensure Saudi Global Ports remain relevant and future-ready, realizing the Kingdom’s plans to become a global logistics hub.” Noting that King Abdulaziz Port in Dammam offers full-scale operational services with the help of state-of-the-art crane equipment capable of handling all kinds of cargo, with two modern container terminals, one chilled and frozen cargo terminal, two general cargo terminals, two cement terminals (one for Black Portland cement and Clinker and the other for White Portland Cement), one bulk grain terminal, one iron ore terminal, a ship-building yard, and oil and gas stations, along with a ship repairing facility consisting of two oating docks that can accommodate vessels of up to 215 meters in length. As King Abdulaziz Port in Dammam is considered the Kingdom’s largest port on the Arabian Gulf coast, where it enjoys a unique location as a gateway of global trade with 43 berths, a total area of 19 km2, and a throughput capacity of 105 million tons, while being connected by rail to the Riyadh Dry Port, thus simplifying transportation of goods to the Eastern and Central Regions of Saudi Arabia from countries around the world.
The cruise line had said the voyage that would take passengers on a three week cruise around the South American coastline would carry on as scheduled.
"Cabin Fever: The Harrowing Journey of a Cruise Ship at the Dawn of a Pandemic" gives the public a new inside view of the COVID outbreak aboard the Zaandam in the early days of the pandemic. Multiple countries refused the ship permission to berth, leaving the passengers stuck on board as the infection spread.
The narrative follows a retired American school superintendent on a dream vacation with his wife and an Argentine psychologist taking this trip to celebrate her sixty-fourth birthday with her husband. For the four, and everyone else, what was supposed to be a fun-lled voyage on a luxury cruise quickly transformed into something else.
Assembly Begins for Royal Caribbean's New LNG-Powered Utopia
Journalists Michael Smith and Jonathan Franklin detail the Zaandam's difcult voyage, which began just days before the world shut down in March 2020. When the ship departed on March 7, 2020 from Buenos Aires, Argentina, she was carrying 1,200 passengers - the majority of whom were Americans, Europeans and South Americans - and a crew of 600. Most of the passengers were over the age of 65. The ship made stops in Montevideo, Uruguay, and the Falkland Islands, and planned to conclude her voyage in San Antonio, Chile on March 21. But the cruise came to an end when South American governments began shutting the ship out due to coronavirus concerns. On March 22, the Zaandam's captain ordered passengers to stay in their cabins after dozens of people aboard began experiencing COVID-19 symptoms. After a dayslong ordeal, the Zaandam was eventually allowed to pass through the Pa n a m a C a n a l a n d d o c k i n Fo r t Lauderdale (after facing local opposition). A total of four passengers died during the cruise, although it was not conrmed whether or not each death occurred due to the virus. When the ship departed, there was concern about the virus, which had already killed and sickened passengers on other cruise ships. But that was oceans away, and escaping to sea at the ends of the earth for a few weeks seemed like it might be a good option.
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Assembly began today in Saint-Nazaire, France on the sixth cruise ship in Royal Caribbean International’s Oasis class. Named Utopia of the Seas, she will be the rst of the class to be fueled by LNG and is widely expected to be the largest cruise ship or one of the largest cruise ships ever built. At a ceremony conducted on July 1 at the shipyard in France, good luck coins were placed on the rst block of the new cruise ship. The ship’s rst sections, a 948-ton steel block, consisting of a portion of the bow with the thrusters and forward sections of the ship have been placed in the drydock with assembly now ofcially underway. In April 2022, Royal Caribbean marked the rst steel cut for the new vessel by announcing her name. “Today, we are celebrating with Royal Caribbean International an important tradition and milestone for Utopia of the Seas,” said Laurent Castaing, General Manager of Chantiers de l’Atlantique. “The construction of Utopia is an exciting opportunity for the Chantiers de l’Atlantique teams that are aiming to make this cruise ship one of the most environmentally friendly ships in the world equipped with new generation dual-fuel engines.”
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CRUISE INDUSTRY NEWS The sixth cruise ship of the Oasis class and the fourth to be built in France, Royal Caribbean elected to redesign the vessel before construction to incorporate the LNG-fueled power plant. Royal Caribbean Group is moving toward LNG, having rst ordered three cruise ships from Meyer Turku that will use the fuel as well as recently starting construction on a smaller, luxury cruise ship, the Silver Nova, for its Silversea Cruises brand that will also use LNG as its main fuel.
Seabourn Takes Delivery of Carnival’s First Expedition Cruise Ship
Seabourn Cruise Line took delivery of its rst expedition cruise ship, Seabourn Venture, today during an ofcial handover ceremony at the T. Mariotti shipyard in Genoa, Italy. Seabourn Venture is the rst of the line's two purposebuilt, ultra-luxury expedition ships and is the rst dedicated expedition ship in the Carnival Corporation eet. The world’s largest cruise company, Carnival looks to expand into the rapidly growing expedition segment with ships focusing on cruises in the polar regions. "Today is so incredibly special and important as we take ownership of our rst ultra-luxury expedition ship and welcome Seabourn Venture to the Seabourn family," said Josh Leibowitz President of Seabourn. "The Mariotti team has done a wonderful job in the building of the ship and bringing Adam Tihany's designs to life. Seabourn Venture will raise the bar in ultraluxury expedition travel.” The 23,000 gross ton cruise ship, and a sister ship still under construction in Italy, were designed and built to PC6 Polar Class standards with the ability to operate in diverse environments. According to the shipyard, the design features advanced maneuvering technology and stability to operate in the harsh polar regions. Each of the cruise ships is 558 feet long with accommodations for up to 260 passengers in 132 oceanfront veranda suites. Following the trend in expedition travel, amenities aboard the cruise ships are being enhanced to provide luxury travel to a segment that traditional was more focused on the destinations versus luxuries aboard its ships.
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The Seabourn Venture and her sister ship Seabourn Pursuit due to enter service in 2023, feature amenities including two gourmet restaurants, a bow lounge with large windows, an innity swimming pool, and a spa and tness center. The expedition programming will be led by a 26-person team of scientists, scholars, and naturalists, who will conduct educational programs on the ships’ Discovery Center and Expedition Lounge as well as to guide Zodiac cruises, hikes, nature walks, scuba diving, and snorkeling, among the ship’s shore programs. Passenger amenities supporting the expedition program include a ready room on the ships to prepare for shore excursions as well as a landing zone to board the two custom-built submarines, kayaks, and 24 zodiacs each ship carries.
Seabourn announced plans to enter the expedition market in 2018 and construction began in December 2019. The hull for both of the cruise ships was built at the CIMAR shipyard in San Giorgio di Nogaro, Italy, and each was later transferred to the T. Mariotti yard in Genoa for completion. The Seabourn Venture is a year behind schedule due to delays in construction in part due to the pandemic. The maiden voyage was rescheduled from April to July 2022 and just recently delayed a further two weeks to late July. The ship will cruise in Norway and Iceland before repositioning to South America and ultimately to Antarctica for the 2022-2023 season. The ships will expand both the cruise line and its parent company, Car nival Corporation, participating in the growing expedition market. In the past, Seabourn operated cruises to destinations such as the Antarctic, but lacked the purpose-built hardware. Their two new ships are part of a wave of new ships designed for this market segment. By 2023, 40 new cruise ships, with nearly 8,000 berths, are expected to enter service offering expedition cruises to exotic destinations.
Crystal Cruises to Resume Operation in 2023 Under New Owners
Crystal Cruises, one of the modern pioneers in luxury cruise travel, will survive its bankruptcy and liquidation that resulted from the nancial collapse of its parent company Genting Hong Kong. Crystal was forced to suspend operations at the end of January 2022 and earlier this month the Bahamas auctioned off the line’s two large cruise ships to settle debts. Heritage Group, a private equity group with investments in the travel and tourism sector led by billionaire Manfredi Lefebvre d'Ovidio, conrmed today that it has purchased Crystal Cruises and the two cruise ships through A&K Travel Group, a luxury travel company. Lefebvre d'Ovidio acquired 80 percent of A&K in May 2019 along with 20 percent which is owned by Geoffrey Kent, son of the founders of the company. The two ships will resume service in 2023 after undergoing extensive refurbishment and will operate under the revived Crystal Cruises brand that has also been acquired by A&K Travel Group. The cruise ships were reported sold last week by the Supreme Court in the Bahamas with the Crystal Symphony going for $25 million and the newer Crystal Serenity sold for $103 million. The brand name and other assets of the cruise line were acquired separately from the U.S.-based liquidators of the company. “I am thrilled to start this new chapter and to be back in an industry that has always had, and always will have a special place in my heart,” said Lefebvre d'Ovidio in a press release announcing the acquisition. “When the opportunity arose to acquire Crystal Cruises, I did not think about it twice.” Lefebvre d'Ovidio’s father a maritime lawyer, university professor, and entrepreneur had owned cargo ships and ferries in the Adriatic and in 1988 acquired a controlling interest in another pioneering cruise line, Sitmar, after the death of its founder Boris Vlasov. Sitmar was sold later that year to P&O to merge into Princess Cruises, but in the early 1990s working with industr y veteran Mauro Terrevazzi at V.Ships, the family launched Silversea Cruises and built the company by offering luxury cruises.
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CRUISE INDUSTRY NEWS
Fincantieri Starts Work on Its First LNG-Fueled Cruise Ship for TUI
Lefebvre d'Ovidio agreed to sell Silversea to Royal Caribbean Group in 2018 and completed the sale in 2020. Crystal Cruises was launched by Japan’s NYK in 1991 as a prestige product that would for 20 years be the leader in luxury cruising. The cruise line was sold to Genting Hong Kong in 2015 with elaborate plans to expand in the luxury niche with river and expedition cruises, private residences, and custom-built aircraft for air tours. The execution of the plan failed and by late 2021 Lefebvre d'Ovidio had already approached Genting Hong Kong about acquiring Crystal. “The idea of combining the unparalleled onboard service that Crystal Cruises is known for, with the extraordinar y tailor-made experiences Abercrombie & Kent has been successfully providing for our guests for the past 60 years, lls me with excitement, enthusiasm, and pride," said Geoffrey Kent, who becomes Co-Chairman of Crystal Cruises along with Lefebvre d'Ovidio, in addition to his role as A&K Travel Group Co-Chairman and, and Founder, Co-Chairman and CEO of Abercrombie & Kent. They announced that they would also be partnering with V.Ships Leisure for the operation of the cruise ships. Silversea Cruises had also partnered with V.Ships. Other segments of Crystal Cruises’ former operation are yet to be resolved. Rumors have linked Royal Caribbean Group and Silversea to Crystal’s luxury expedition cruise ship Crystal Endeavor which was completed last year by MV Werften. Crystal’s ve river cruise ships also continue to be for sale. Industry observers are saying that they expect A&K and Heritage Group to continue to make travel-related investments.
Work is getting underway in Italy with the rst steel cutting for the rst LNGpowered cruise to be built by Fincantieri and the rst for German cruise line TUI Cruises’ Mein Schiff operation. Fincantieri is catching up with competitors Meyer Werft and Meyer Turku which have been delivering LNG-fueled cruise ships for the past four years and Chantiers de l’Atlantique which recently completed sea trials for its rst LNG-fueled cruise ship construction while oating out its second LNG ship. Fincantieri said during the steel cutting ceremony at its sheet metal plant in San Giorgio di Nogaro, Italy that it plans to play an active role in building more sustainable ships and is researching further advancements. The cruise ship being built for the joint venture operation between TUI and Royal Caribbean Group is the rst of two LNG cruise ships on order for Mein Schiff and is in addition to LNG fueled cruise ships that will also shortly start construction at Fincantieri for Carnival Corporation’s Princess Cruises brand.
"With the project of this new class of ships for TUI Cruises, Fincantieri is contributing to the ecological transformation in the cruise industry,” said Luigi Matarazzo, General Manager of Fincantieri's Merchant Ships Division. “In the rst phase, a fuel with a low carbon footprint will be used to signicantly reduce greenhouse gas emissions. In the meantime, we are studying the possibility of running on biofuels, which will give further impetus to the decarbonization of the sector.” TUI is pursuing a multi-level strategy to achieve its goal of operating the rst climateneutral cruises by 2030. Meier said the goal was for the two LNG-fueled ships to convert to bio or E-LNG in the future. In addition, they will be equipped with improved catalytic converters (compliant with the Euro 6 standard) and a shore power connection. According to the cruise line, this will ensure almost emissionfree ship operation while in port which will be about 40 percent of the ship’s operating time. Additionally, the ships will be equipped with an even more efcient and innovative waste treatment system that can shred organic waste by means of thermal treatment. At the same time, TUI also started construction at Meyer Turku on Mein Schiff 7 which is designed to be the rst cruise ship capable of operating on methanol. At the beginning of construction on June 14, TUI announced that this ship would be capable of operating on biomethanol when the fuel becomes available. TUI Cruises already has one of the most modern and environmentally friendly cruise eets in the world. The cruise line reports that its ships which are all relatively newly built were designed to increase energy efciency and consume around 30 percent less fuel than ships of comparable size. In addition, they are equipped with a combined exhaust aftertreatment system consisting of an exhaust gas washer (scrubbers) and catalytic converters.
“The investment in LPG-powered ships is an important milestone on the way to emission-free and climate-neutral cruise,” said Wybcke Meier, CEO of TUI Cruises. ”LNG serves as a bridging technology here. In the future, we will use BIO LNG, which is generated either from biogenic sources or synthetically from renewable energy.” Each of the two new cruise ships will be around 160,000 gross tons, which will also make them the largest in the TUI cruise eet. The company plans to be operating a total of nine cruise ships when the second one is delivered from Fincantieri in 2026. The rst LNG cruise ship is scheduled to enter service in 2024. Both cruise ships will be built at the Monfalcone, Italy shipyard.
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CRUISE INDUSTRY NEWS
Fight Breaks Out Aboard Carnival Magic
Largest LNG-Powered Cruise Ship Completes Sea Trials
MSC Cruises and Chantiers de l’Atlantique marked key milestones in the development of LNG-powered cruise ships, conducting the sea trials for the shipbuilder’s rst LNG ship, which is also set to become the largest LNG cruise ship, and one of the world’s largest cruise ships. The MSC World Europa completed sea trials in the Atlantic last weekend as she prepares to enter service in November 2022. Measuring 1,092 feet in length, the new cruise ship will be approximately 205,700 gross tons, making the MSC class of LNG-fueled ships more than 10 percent larger than Carnival Corporation’s LNG cruise ship platform. The MSC World Europa is the rst ship in the news class and MSC’s rst LNG cruise ship. She will also be second in size to only Royal Caribbean International’s Oasis class. The MSC World Europa departed SaintNazaire, France on June 15 for four days of testing returning to the yard on June 18 to continue its outtting. The tests included measuring the performance of the ship’s engines, along with assessing its maneuverability, fuel consumption, safety systems, speed, and stopping distances. MSC is highlighting the broad range of new features incorporated into the design of the cruise ship ranging from restaurants and bars to passenger accommodations. Like the Oasis Class, it features an open-air promenade running 341 feet in length with ocean views. The cruise ship has 2,626 staterooms giving it maximum accommodations for 6,762 p a s s e n g e r s p l u s a p p ro x i m a t e l y 2 , 1 0 0 crewmembers. As a cruise company, MSC is making signicant investments in LNG and other technologies to reduce the environmental impact of its ships. The company reports that it is investing more than $3.14 billion in three LNG-powered cruise ships, including the MSC World Europa and a sister ship that will begin construction early next year at Chantiers de l’Atlantique. In addition, last weekend the yard also oated out the MSC Euribia, a sister ship in the Meraviglia Plus class that is also the rst being built to operate on LNG. 24|JULY 2022
“We are actively investing in research and development regarding LNG, including a pilot LNG-powered solid oxide fuel cell onboard MSC World Europa. If bio or synthetic LNG was available at scale today, both our newbuilds could operate with net zero emissions from the very rst day,” said Pierfrancesco Vago, Executive Chairman, Cruise Division of MSC Group. Both of the new LNG-powered ships will also feature selective catalytic reduction systems, shore-to-ship power connectivity, advanced wastewater treatment systems to comply with the Baltic standard, underwater radiated noise management systems to reduce potential noise and vibration impact on marine mammals, and a wide range of energy-efcient equipment and systems to optimize engine use. The MSC Euribia will feature an advanced onboard wastewater treatment system. All wastewater on board will be directed to the water treatment system so that no water leaves the ship without specic treatment that cleans the water to the highest standards. Other waste materials will be collected are sorted for recycling, and the line like others in the industry has signicantly reduced plastic waste by eliminating or replacing single-use plastic items. In addition, other systems on the MSC Euribia will include energy-saving equipment that maximizes efciency in areas including smart heating, ventilation, and air conditioning. The MSC Euribia is scheduled to enter service in June 2023.
The U.S. Coast Guard has to respond to a wide range of emergencies, but rarely does it get called in after a bar ght. That rare call came in on Tuesday from the giant cruise ship Carnival Magic, which was on her way back to New York City when a large-scale fracas broke out in her nightclub. At about 0520 hours the NYPD received a call reporting an altercation on board the Carnival Magic. The agency said that while she was sailing near the Verrazzano Narrows, an earlymorning party deteriorated into an all-out brawl. A group of 40-60 passengers joined into a physical altercation on the dance oor, all captured on video by a bystander at the bar. The footage shows a sole security guard, heavily outnumbered and radioing for backup. The Coast Guard dispatched a boat crew out of Staten Island to escort the Carnival Magic back to the pier, where she was met by ofcers of the New York City Police Department. "Last night while Carnival Magic was returning to New York, a number of guests were involved in an altercation in a nightclub," Carnival said in a statement. "Thankfully no serious injuries were reported and our onboard security team intervened. The ship arrived as scheduled this morning and shoreside law enforcement authorities were notied." An investigation is ongoing and no charges have been announced yet in the case. The correct jurisdiction would depend on the ship's position (international waters, territorial seas, New Jersey or New York state waters), and this would have bearing on any law enforcement effort.
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MARINE TECHNOLOGY NEWS
Havkraft inks deal to DNV approves Vale’s power sh farm using multi-fuel tank design its wave energy device in a ‘major’ advance for low-carbon fuels adoption
which include regulatory and infrastructure uncertainty in dening the optimal fuel”, said Vale’s Shipping Technical Manager, Rodrigo Bermelho. “It is a solution for the future, but one that could also impact existing ships, many of which have more than 20 years of service life ahead of them. Allied to other energy efciency technologies in progress at Vale, such as rotating sails and air lubrication, it allows us to have more efcient vessels with very low carbon emissions.” Investing in energy-efcient technologies In addition to adopting alternative fuels, the Brazilian company is actively investing in the energy-efcient technologies.
Norwegian company Havkraft has signed an agreement for a project that will use its wave energy technology to provide clean power to a sh farm offshore Norway. The contract has been signed with sh producer Svanøy Havbruk for the installation of a full-scale Havkraft N-Class wave power plant at Sandkvia, close to the island of Svanøy, in western Norway. This marks the start of commercialization of Havkraft’s oscillating water column (OWC) wave power plants, a technology expected to be competitive with any other energy source in its market segment nearshore. The project, supported by Sparebanken Vest and other unnamed partners, will be installed on site in 2023, according to Havkraft. It is expected to help Svanøy Havbruk decarbonize its operations and move away from using polluting diesel fuels. Havkraft has developed two types of OWC power plants – the rst being the Havkraft NClass which is tted for nearshore locations, while the second – dubbed Havkraft O-Class – is more suitable for offshore operations. Both products are based on the Havkraft Wave Energy Converter (H-WEC) and equipped with Bosch permanent magnet generators. To remind, in March 2021 Havkraft installed a multi-purpose Powerpier solution, designed to offer protection from waves while exploiting them to produce clean power, offshore the Norwegian town of Ålesund.
Brazilian mining company Vale has received approval in principle from the classication society DNV for its design incorporating multi-fuel tanks on iron ore carriers, developed as a result of the project seeking to adopt alternative, lower-carbon fuels for shipping.
Last year, Vale presented the rst ore carrier equipped with rotating sails and the rst Guaibamax ship with air lubrication installed as part of its Ecoshipping program.
Additionally, investments of up to $6 billion since 2020 to reduce Vale’s scopes 1 and 2 emissions by 33% by 2030 were also announced. The company has also committed to a 15% reduction in scope 3 emissions by 2035, related to the value chain, of which D N V p e r f o r m e d a n i n d e p e n d e n t shipping emissions are part, since the ships are assessment of the design to verify its not owned by the company. The targets are technical feasibility, indicating that, based aligned with the ambition of the Paris on this system, vessels chartered by the Agreement. mining company could be adapted to store fuels such as liqueed natural gas (LNG), Moreover, Vale has invested to incorporate methanol and ammonia in the future. efciency and environmental innovation in the According to Vale, the design, which was developed in partnership with Norwegian companies Brevik Engineering AS and Passer Marine, represents a major advance in the adoption of low-carbon fuels in the shipping industry. The multi-fuel tank design is part of the Ecoshipping program, developed by Vale to adopt new technologies and renew its eet with the aim of reducing carbon emissions from shipping.
shipping area. Since 2018, the company has been operating second-generation Valemaxes and, since 2019, Guaibamaxes, with capacities of 400,000 tons and 325,000 tons, respectively. These vessels are said to be among the most efcient in the world as they can reduce CO2 equivalent emissions by up to 41% compared to a Capesize ship, of 180,000 tons, built in 2011.
A preliminary study for ships of the Guaibamax category estimates that emissions reductions can range from 40% to 80% when powered by methanol and ammonia, or up to 23% in the case of LNG, Vale explained. Following the approval for the multi-fuel tank design, the company plans to develop a pilot project in the coming months for the implementation of this system on a Guaibamax. “The multi-fuel tank system removes some of the main barriers to the adoption of alternative fuels,
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JULY 2022 |25
MARINE TECHNOLOGY NEWS
Sembcorp Marine Delivers SeaQurrent looking to World's First Eighth-Gen strengthen TidalKite Drillship team.
A 1:10 scale TidalKite, rated at 50kW, has already been tested in 2019 in the Dutch Wadden Sea. Based on the obtained results, SeaQurrent started building the full-scale demonstrator for Ameland.
Orbital Marine seeking geotechnical engineering support for anchor design
Sembcorp Marine has delivered what it describes as the world's rst eighth-generation drillship, the Deepwater Atlas. The Deepwater Atlas is the rst in a series of two high-spec vessels for Transocean. It has a hookload capacity of three million pounds and can accommodate well control systems for 20,000 PSI-rated drilling, making it the rst of its kind. The rig is contracted for Chevron's Anchor project in the Gulf of Mexico - the rst deepwater high-pressure development to achieve FID. It will have dual 20,000 PSI blowout preventers for drilling in the extreme high pressure / high temperature conditions found tens of thousands of feet below the seabed, where no one has ever drilled for oil before. The design is capable of reaching a maximum depth of 40,000 feet, including up to 12,000 feet of water depth. “We are very pleased to achieve the delivery of Deepwater Atlas and to set many record rsts in the process. It gives us great pride to have designed and built for Transocean, the world’s rst eighth-generation drillship of the highest industry specication," said Sembcorp Marine head of rigs William Gu. It is not the rst attempt at a "20K" rig, but it is the rst to succeed. Maersk Drilling placed an order for BOP systems rated at 20,000 PSI in 2014 for BP's Project 20K; little news has emerged from the project since the start of the offshore downturn in 2015. The delivery is a milestone for Sembcorp Marine, which is in the home stretch of a merger deal with compatriot offshore yard Keppel O&M. Shareholders are set to vote on the proposal later this year.
Dutch tidal energy company SeaQurrent is looking to strengthen its team in order to help develop and market its TidalKite technology. After several years of development and testing, a full-scale, grid-connected TidalKite device will be demonstrated in the Dutch Wadden Sea, next to Ameland, this year. According to SeaQurrent, nal preparations for demonstrations are in full swing, but extra hands and skills are needed. Therefore, the Dutch company is looking for a controller, mechanical engineer, 3D CAD engineer, structural engineer, assemblage technicus, project developer, project manager for operations and a QHSE engineer. Interested candidates are free to apply by 30 June. “Successfully developing such a solution and bringing it to market still requires a lot of effort. We’re only at the beginning of our mission and we know that without a motivated, qualied and determined team we can never achieve this ambition. It’s the people who make a difference,” SeaQurrent stated. SeaQurrent started the development and building of its rst scale model of the TidalKite in 2016 and is currently building the fourth model, with full-scale components. TidalKite is anchored to a monopile with a tether and ies underwater across the current. The traction force generated by the kite is used to generate green electricity in the power take-off unit. The device consists of several rows of wings that are placed one behind the other, making it able to cover a large surface area in one movement and thus to ‘3D-harvest’ the largest possible amount of energy, SeaQurrent claims.
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Scottish tidal energy company Orbital Marine Power has issued a tender seeking geotechnical engineering support for anchor design for a range of possible future commercial sites. Specically, engineering support is required in the eld of drilled rock anchors as the company is looking to do a detailed assessment of pile sizing and what solutions are available on the market for a range of possible future commercial sites with various seabed conditions. As a result of the tender, Orbital Marine will award a contract with a duration of 12 months. The contract is subject to renewal which includes a possible extension of 50% more hours at the same hourly rate. According to the company, procurement is related to a project nanced by European Union funds. The tender is open for applications until 11 July 2022. Just recently, the Scottish company launched a £4 million ( 4.7 million) crowdfunding campaign on Abundance Investment platform to take its business to the next stage. The follow-up offer on Abundance is part of a substantial overall investment package, enabling the next phase of Orbital Marine’s business – the long-term commercial operation of the world’s most powerful tidal stream turbine off the coast of Orkney. The turbine has now been fully commissioned, and since July 2021 has been exporting predictable, low carbon electricity to the UK grid. It will be capable of generating enough renewable electricity to meet the needs of around 2,000 UK homes every year, for 15 years, saving over 30,000 tonnes of carbon.
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MARINE TECHNOLOGY NEWS
University of Rhode Island accepted into TEAMER program
The BTTS is expected to provide clients with the infrastructure and support needed for Technology Readiness Level (TRL) gated development for mid-scale prototype testing in a relevant open water environment. John Miller, executive director of MRECo, said: “The intellectual capital represented by the universities in New England provided much of the technology that powers today’s solar and wind generation. This infrastructure in New England coupled with TEAMER funding for testing will provide the same acceleration to marine renewables.”
More time and deliberation needed to nalise Keppel O&M and SembMarine merger talks The University of Rhode Island (URI) has been accepted into the U.S. Department of Energy’s Testing Expertise and Access for Marine Energy Research (TEAMER) program. TEAMER funding allows technology developers to conduct tests at URI’s Ocean Engineering Department facilities including its wave tank, wave-current ume, and acoustic tank. In addition to increasing collaborative R&D projects with experts and faculty members, URI students will be able to work directly with technology developers and gain experience that can be applied when they are ready to join the marine energy workforce. Clients who choose to use the facilities will not be charged as TEAMER reimburses URI’s fees directly. The wave tank is 30 meters long, 3.6 meters wide and 1.8 meters deep with a hinged, apper-style hydraulic wave maker at the end. It has 20 meters of adjustable beach for different shoaling proles and a 2 m/s towing carriage. It is used for a range of testing, including work on wave energy extraction, turbines (using towing carriage), acoustic measurement of surface waves, and wave-induced forcing on marine structures. The LabVIEW and MATLAB-based control system are capable of producing both regular and irregular waves in a wide array of wave heights and periods. Wave gauges, pressure sensors, and force transducers are available to use. The Marine Renewable Energy Collaborative of New England (MRECo) has announced its support to URI for the recent acceptance. MRECo’s Bourne Tidal Test Site (BTTS), located at the southern end of the Cape Cod Canal, has also been recommended for TEAMER acceptance, pending National Environmental Policy Act (NEPA) review. Once the review is completed, BTTS will provide an open water, closeto-shore, prototype testing facility for tidal and current energy devices and many types of marine sensors and underwater communication devices.
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Following last year’s announcement about an agreement to explore the combination of Keppel Offshore & Marine with Sembcorp Marine, signicant progress has been made in the process. However, more time and deliberation are needed to reach the nal agreement to which both companies are committed. As a reminder, the idea behind combining Keppel O&M and Sembcorp Marine, announced in June 2021, was a response to the dramatic changes in the sectors and with a view of accelerating the pivot towards new energy and decarbonisation solutions. The assumption was that the combined entity would be better positioned to capitalise on the energy transition including areas such as offshore wind and address the opportunities and challenges in the evolving and consolidating offshore & marine industry. Now, more than nine months later, the two players have provided an update on their discussions, noting that signicant progress has been made and that both remain committed to the proposed combination and are working towards a denitive agreement by 30 April 2022. The main points of progress include mutual due diligence, the transaction structure, exchange ratio and other related matters. The two companies reiterated that, as a response to the dramatic changes in the global offshore & marine engineering and energy sectors in recent years, the objective of the proposed combination is to create a stronger combined entity, leveraging respective strengths to realise synergies and deliver sustainable value over the long term for shareholders.
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MARINE TECHNOLOGY NEWS However, while both are devoting considerable resources to progressing the combination, more time and deliberation will be required to complete due diligence, reach a mutual agreement on the transaction terms, and nalise denitive legal documentation. When it comes to Keppel O&M’s planned sale of legacy completed and uncompleted rigs and associated receivables to a separate Asset Co, announced at the same time as the agreement with SembMarine, Keppel said that signicant progress has been made in this aspect as well. This Asset Co transaction and the proposed combination will be inter-conditional and are being pursued concurrently.
Bleutec’s proprietary Binary Marine Installation Solution (BMIS) would provide an alternative for heavy lift vessels in the offshore wind industry, and its end goal is a sector in which "very costly, highly specialized WTIVs are no longer required," the company says. The BMIS concept includes two construction vessels - a gantry-equipped "Piling Installation Vessel" for super-heavy monopiles (below) and a "WTIV-Light" reduced-cost crane ship (image at top) plus a standard-issue SOV for accommodations for the commissioning crew.
The two companies also reiterated that, while discussions are ongoing, there is no guarantee that denitive agreements will be executed. Moreover, any denitive agreements that the companies may agree upon will also be subject to conditions including relevant regulatory and shareholder approvals.
U.S. Startup Proposes "Light" WTIV Variant for Jones Act Market
A labor dispute nearly derailed up to half of Norway's gas production this week, just as the nation's oil rms were ramping up output to meet urgent European demand. Norway's government stepped in Tuesday to halt the strike and order the union back to work, citing the extreme impact that the shutdown would have on the energy market. The unique overhead gantry-based piling installation vessel (Bleutec / Penthus)
“The US offshore wind industry has been paralyzed by the perceived notion that a WTIV has to be constructed in a certain way and that is not feasible. NETSCo Engineers have been devoted to designing a bespoke WTIV, focusing on the design parameters that matter most and eliminating the nice to haves," said Jan Flores, principal at naval architecture rm NETSCo, which is working with Bleutec.
Bleutec's "WTIV-Light" turbine installation vessel (NETSCo / Bleutec)
Bleutec Industries, an American startup based in Texas, is launching a new effort to create a new form of Jones Act-compliant wind turbine installation. Only one U.S.-built wind turbine installation vessel (WTIV) is on order today. Since this will not be enough to meet demand, many developers are considering a hybrid solution: a U.S.-built feeder vessel plus foreign-built WTIV combination. If the wrinkles could be worked out, this would satisf y U.S. compliance requirements - without building more $450 million WTIVs in the United States. But this hybrid solution is controversial in some sectors of the U.S. maritime industry, and it depends on a supply of foreign-ag WTIVs. That supply is also limited - especially for larger vessels capable of installing modern turbines and these expensive, high-spec ships are in high demand worldwide.
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Norwegian Government Steps In to End Offshore Workers' Strike
The strike affected senior employees, managers and technical staff represented by the union Lederne. Last week, these critical offshore workers voted down a pay raise package of 4-4.5 percent - a deal which other offshore unions had already accepted - and opted to go on strike.
The labor action started Monday at three elds, Gudrun, Oseberg South and Oseberg East. On Wednesday, it would have expand to cover Aasta Hansteen, Heidrun, Kristin and Tyrihans. By the end of the week, the strike would have rolled out to Gullfaks C, Gullfaks A Bleutec has secured a working partnership and Sleipner, which will also force closure at with Dutch heavy-lift operator Penthus, Kvitebjoern, Utgard, Sigyn, Gugne and Gina which will provide experience in the sector. Krog. It has also hired on Shell's former global category manager for marine, Bo Jardine, By Wednesday, the nation's gas output would to lead its commercialization effort. The have dropped by nearly 300,000 boepd - about company says that a who's-who of marine 13 percent, according to industry association e n g i n e e r i n g a n d e q u i p m e n t Norwegian Oil and Gas. Oil output would have manufacturing rms have been consulted fallen by about 130,000 bpd the same day, restricting supply in an ultra-tight global on the project. market. If the planned rollout had been fully “Our goal is to provide the most cost- carried out through the end of the week, it effective offshore wind T&I solution that would have taken out more than half of integrates commissioning, operations and Norwegian gas production, NOG said. Europe maintenance activities and maximizes gets about 25 percent of its gas from Norway's local content," said Robin Bodtmann, CEO offshore sector, and with Russia cutting down of Bleutec Industries, in a statement its gas exports ahead of the winter heating season, European customers are more Monday. dependent on the Norwegian supply than ever. Norway's labor ministry stepped in Tuesday to put an end to the strike, and Lederne agreed to return to work. "The announced escalation is critical in today's situation, both with regards to the energy crisis and the geopolitical situation we are in with a war in Europe," Labour Minister Marte Mjos Persen said. For the Latest news and analysis go to www.seaandcoast.in
OFFSHORE NEWS "It is unjustiable to allow gas production to stop to such an extent that this strike in the next few days is estimated to lead to." It is the second time in weeks that Persen has been forced to step in and end a labor dispute. An aircraft technician strike in Norway grounded hundreds of ights in June, and Persen ultimately ordered a return to work, citing the hazard to healthcare patients who need air transport.
China Rescues 4, Recovers 12 Bodies in Search After Wind Ship Sinks
The initial distress signal was received at around 3:50 a.m. Saturday morning. It was daylight when the vessel broke into two pieces and began sinking. Rescue aircraft and patrol boats were dispatched and are being assisted by private shing vessels. Crewmembers reportedly had been ordered into their lifejackets but survivors plucked from the deck on Saturday said that their colleagues were being washed overboard and were attempting to cling to the rails of the sinking ship. Chinese ofcials reported that 38 ships were involved in the search efforts and they were also being assisted by the navy. Late on Saturday they announced that three people had been saved and today they added a fourth person saying he had been recovered by a navy ship. The Hong Kong Government Flying Service is leading the search efforts saying that it has dispatched its entire eet of aircraft. The search area has been widened to encompass approximately 700 square nautical miles. The bodies of the dead have been recovered up to 50 nm from the site where the vessel sunk in a position approximately 180 nm southwest of Hong Kong.
Chinese ofcials reported that the chances are growing slim for nding additional survivors from an engineering vessel that was supporting the offshore wind farms near Hong Kong when a typhoon ripped through the area on Saturday, July 2. In a press brieng late on July 4, the search and rescue coordinator said that four workers from the vessel had been rescued, but that 12 bodies have now been recovered and as many as 14 addition people remain unaccounted for while they are expanding the search area. Details about the vessel that was lost are scarce with local reporters questioning why the vessel had not been recalled from the site as the storm approached. The Fu Jing 001 was possibly an older vessel converted to support the wind farms. Reports indicated it was 669 feet long and tted with one or more cranes. It was operating near the offshore wind farms in Guangdong Province in southern China. Ofcials said the vessel had moved to a safe anchorage to ride out the approaching storm but early on Saturday it dragged its anchors and then broke the anchor chains. Winds at the time were being clocked at approximately 69 miles per hour with waves of three to four meters. The anchorage was approximately 18 nautical miles offshore from Guangdong. The storm intensied before hitting land late on Saturday. Ofcials are saying the anchorage was near the center of the storm as it approached land.
Search conditions at the site were being complicated by the high winds which ofcials said were making it difcult to estimate the ight times and fuel endurance for the helicopters. They also reported that the predominance of offshore wind turbines in the area was making it difcult for the helicopters and planes to get close to the surface during their search efforts.
White House Plan Offers Up to 11 Offshore Lease Sales - Or None at All
While the plan keeps a moratorium on leasing off the U.S. East Coast and the U.S. West Coast, it opens up the possibility of 10 lease sales in the Gulf of Mexico and one lease sale in Cook Inlet, Alaska over the span of the next ve years. At the same time, it also gives the administration an option to conduct no new leasing. The proposal marks the start of a public comment period; the last ve-year plan generated two million comments, and the latest is likely to generate high interest as well. “From Day One, President Biden and I have made clear our commitment to transition to a clean energy economy. Today, we put forward an opportunity for the American people to consider and provide input on the future of offshore oil and gas leasing. The time for the public to weigh in on our future is now," said Secretary of the Interior Deb Haaland in a statement. The White House is facing down an energy price spike greater than any seen in decades, and it is under tremendous pressure to deliver relief at the gasoline pump - especially in an election year. While the ve-year leasing plan will not affect oil prices in the near term, it is a signal that the administration has a willingness to discuss E&P. That willingness is cause for concern for climate activists, who have called for the president to stick to his original campaign promise. “It’s disappointing that President Biden is still considering new lease sales, but we’re encouraged that the president put forward a no-new-leasing option. The inevitable conclusion must be nalizing a program that ends new leasing for offshore drilling," said Oceana campaign director Diane Hoskins in a statement. "It’s ridiculous to sell more leases when oil companies are not even developing the leases they already have.” According to the American Petroleum Institute, the plan comes too late and does not do enough to guarantee more leases. For months, API has been urging the administration to complete its ve-year plan in order to ensure continuity; the previous administration's plan expired Thursday, guaranteeing that there will now be a monthslong gap while the plan is reviewed and nalized.
On Friday, the White House released its long-awaited proposal for the next veyear offshore leasing program, and the contents appear to walk back President Joe Biden's campaign pledge to halt further offshore oil and gas auctions. It has drawn criticism from both the energy industry and from environmental activists, as it proposes dueling options: no new leasing at all, or as many as 11 lease sales.
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"Because of their failure to act, the U.S. is now in the unprecedented position of having a substantial gap between programs for the rst time since this process began in the early 1980s, leaving U.S. producers at a signicant disadvantage on the global stage," said API SVP Frank Macchiarola in a statement.
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OFFSHORE NEWS “At a time when Americans are facing record high energy costs and the world is seeking American energy leadership, tonight’s announcement leaves open the possibility of no new offshore lease sales, the continuation of a policy that has gone on for far too long."
On the other side of the Black Sea, Turkey is pushing rapidly towards the development of the Sakarya gas eld, a large 540 bcm discovery that should be online before the end of 2023. The nd will help Turkey reduce its longstanding dependence on imported Russian gas.
Romanian Offshore Offshore Gas Giant Gas Field Starts Up QatarEnergy Signs On to Zero-Methane Despite War Risk Pledge
Despite war risk and lack of insurance, energy company Black Sea Oil & Gas SA has started up production at a new gas eld off the coast of Romania, the rm's CEO told multiple news outlets on Tuesday. BSOG's Midia project has been a long time coming. It draws on two elds discovered in 1995 and 2007, and it achieved FID in 2018. It incorporates one unmanned production platform and ve subsea wells at a position about 65 nm offshore. The site is in relatively close proximity to the Ukrainian border and the hotly-contested outpost on Snake Island. Russian forces seized the strategic site in the opening days of the war, and Ukrainian forces have repeatedly attacked Russian positions and the supply vessels that travel to and from. “We’re not in a war zone in Romania, but this clearly has an impact . . . We’ve had mines detected close to our platform, we have warships close and airplanes circling our platform," Black Sea Oil & Gas CEO Mark Beacom told Reuters and Bloomberg. "You can’t get insurance after the war started. We’re taking that risk." Romania has recently changed its offshore oil and gas laws to encourage more investment, eliminating existing requirements for a 40 perecnt domestic-supply set-aside and a high offshore production tax rate - until recently the highest in Europe. The nation has total estimated offshore gas reserves of about 200 bcm, and these resources are badly needed now that the European market is struggling to decouple from Russian energy suppliers. The next big project in planning, OMV's Neptun Deep, is up for nal investment decision next year. 30|JULY 2022
QatarEnergy, the world's largest LNG exporter as of May 2022, has joined an industry initiative to effectively eliminate methane leakage from its natural gas operations by 2030.
QatarEnergy - which owns the third-largest natural gas reserves in the world and exports more LNG than any other entity - announced Monday that it would join the initiative. The pledge would cover the offshore platforms of its Qatargas subsidiary. "We are reafrming Qatar’s priorities and commitments with regards to the climate change agenda, and its unwavering support to the global effort to reducing emissions, including methane," said His Excellency Saad Sherida al-Kaabi, Qatar's minister of energy and CEO of QatarEnergy. The news comes as the state-owned company invests billions in the capacity of its vast gas liquefaction terminals, with help from fellow signatory Eni. Just last week, QatarEnergy announced that it is selling Eni the quivalent of a three percent stake in its giant North Field East natural gas expansion project. North Field East will cost nearly $30 billion to bring online and should begin production in 2025, with ramp-up to 32 mtpa of output at full buildout.
Noble Agrees to Sell Rigs C l e a r i n g H u rd l e f o r Maersk Drilling Merger
Methane is a potent greenhouse gas, about 80 times more powerful than CO2 over a 20-year timeline. Human-generated methane emissions are responsible for roughly one quarter of current warming. Processed natural gas is effectively methane, plus a few percentage points of heavier molecules; leaky gas processing equipment, pipelines and wells are a leading source of methane emissions. These releases undercut the climatefriendly appeal of natural gas, which is widely viewed as a less-harmful alternative Offshore drilling contractor Noble Corporation has reached an agreement to sell ve of its jackto oil or coal. up rigs in a step designed to clear the way for the Different producers have much different company’s proposed merger with Maersk methane leak rates. Norway's release rate Drilling. News of the agreement came as UK from production is just half the global regulators said they were delaying a decision on average, while Russia's is so high that the the merger pending the transaction. In May, nation leads the world for overall methane the UK Competition and Markets Authority emissions. The producers in the OGCI said it would be willing to review and likely Aiming for Zero Methane Emissions accept the merger if the companies proceed Initiative all seek to effectively eliminate with the proposed remedies to their concerns, methane releases from their operations by which include the sale of several jack-up rigs. the end of the decade, and the signatories are some of the biggest names in the business. The founding members include Saudi Aramco, bp, Chevron, CNPC, Eni, E q u i n o r, E x x o n M o b i l , Occidental,?Petrobras, Repsol, Shell and TotalEnergies. Their objective is to "treat methane emissions as seriously as the industry already treats safety."
Noble and Maersk Drilling announced plans in November 2021 for a merger of equals that they said would create a leading company with the scale, capabilities, and resources to address the changing market. The companies said the combined operation would have one of the youngest eets in the industry and would be better suited to respond to the challenges for offshore drilling contractors serving the oil and gas industry.
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OFFSHORE NEWS The company had warned investors that it was likely that the competition review would require the possible sale of some of the combined assets. The U.K.’s Competition and Markets Authority conrmed its concerns over the potential for reduced competition if the proposed merger proceeded saying that the overlapping activities in the supply of jack-up rigs were likely to reduce completion and drive-up costs for the energy industry in the North Sea. Under the terms of the new agreement, a newly formed subsidiary of Shelf Drilling, a Dubai headquartered operator of drill rigs, has agreed to purchase ve jack-up rigs for $375 million from Noble. Founded in 2012, Shelf is a shallow water offshore drilling contractor with rig operations across the Middle East, Southeast Asia, India, West Africa, and the Mediterranean Included in the sale are the rigs Noble Hans Deul, Noble Sam Hartley, Noble Sam Turner, Noble Houston Colbert, and Noble Lloyd Noble and all related support and infrastructure. Noble expects the associated offshore and onshore staff to transfer with the rigs as well as associated drilling contracts for other the rigs, subject to the clients' consent. Noble, however, will charter the Noble Lloyd Noble after the transfer to complete its current drilling program due to end in the second quarter of 2023. The CMA had reported in May 2022 that “there are reasonable grounds for believing” that a sale to a suitable purchaser of the rigs together with sufcient supporting infrastructure might be accepted by the CMA to address its concerns related to the lessening of competition. Today, the CMA announced it was extending the deadline for its review because “it will not be possible to reach a decision on acceptance of the undertaking” by the July 6 deadline. Although the deadline was extended to September 1, the CMA reported that “there is a sufcient likelihood that it will be able to accept the undertaking before the end of the extended period.” Completion of the sale of the asset to Shelf Drilling requires the CMA approval and then the merger could proceed if the CMA agrees that the asset sale has addressed the competition concerns. Anticipating that the CMA will approve, Noble said today it currently expects to launch the planned exchange offer for shares of Maersk Drilling in August 2022. In addition to the CMA approval, completion of the merger requires acceptance by holders of at least 80 percent of Maersk Drilling shares.
Russia Shuts CPC Oil Terminal, Tightening Screws on EU's Energy Supply
Both sides of this exchange oppose Russia's actions in Ukraine. Courts in Russia typically operate in alignment with state interests, and the Primorsky District Court's decision to shut down the CPC loading terminal happens to apply economic pressure to both Kazakhstan and the EU when both are attempting to strengthen trade ties - all without hurting Russia's own exports, noted Bloomberg analyst Julian Lee. "The Caspian Pipeline Consortium acts within the legal framework of the Russian Federation and is forced to execute the court ruling. The ruling will be appealed in accordance with the procedure established by law," said CPC in a statement.
A court in Novorossiysk has decided to temporarily shut down the Caspian Pipeline Consortium's crude terminal on the Black Sea, which operates within Russian jurisdiction but gets almost all of its oil from Kazakhstan. The decision marks the third time since the start of the invasion of Ukraine that Russian authorities have reported a disruption at the facility, which had operated more or less continuously for the previous 20 years. Unusual storm damage to its single-point moorings occurred in March, and WWII-era UXO was suddenly discovered near its subsea pipelines June. The second disruption happened to occur several days after Kazakhstan's president said that he would not recognize two Russian-occupied territories in eastern Ukraine. These two incidents forced partial shutdowns at the CPC terminal, but at least one of three loading buoys remained in operation - until July 5, when a court shut the last one down on request from the Russian Federal Service for Supervision of Tr a n s p o r t ( R o s t r a s n a d z o r ) . T h e administrative suspension for alleged "documentary violations under the Oil Spill Response Plan" will last for 30 days. The full shutdown follows two days after Kazakh President Kassym-Jomart Tokayev said that his nation is ready to send more oil to Europe and "to use its hydrocarbon potential to stabilize the situation in the world and European markets." Tokayev's pledge does not align with Russian interests: European nations are working hard to phase out Russian oil purchases and nd reliable alternative suppliers - like Kazakhstan, a longtime trading partner. Kazakhstan exports 80 percent of its oil via the CPC's marine terminal in Novorossyisk; the majority goes to Europe. This has historically provided about six percent of the EU's total crude imports.
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Vattenfall wants to build world’s rst offshore hydrogen cluster in Netherlands
Vattenfall has submitted a bid in the Hollandse Kust West offshore wind tender in the Netherlands. According to the details of the company’s plan, unveiled on 5 July, the project Vattenfall proposes to build would see Netherlands becoming the home of the world’s rst offshore green hydrogen cluster. Vattenfall has led a proposal for both sites offered by the Dutch Government at the Hollandse Kust West (HKW) area: VI and VII. At HKW VII, the developer wants to integrate a 45 MW hydrogen cluster into an offshore wind farm, with three turbines equipped with electrolysers. The three turbines would accommodate containers, placed on special platforms and lled with electrolyser modules, transformers and batteries.
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OFFSHORE NEWS The hydrogen produced by the cluster would be transported via a pipeline to the Port of Rotterdam and fed into the hydrogen network there. The hydrogen will then be transported to users via a network of pipes – in the same way as with natural gas, according to Vattenfall.
NKT and MAATS ink Bourbon to deliver subsea service agreement services under deal with for 140-meter cable- Integrated Wind Solutions layer
The plan in the Netherlands builds upon the work Vattenfall is doing at its Aberdeen offshore wind farm, also known as the European Offshore Wind Deployment Centre (EOWDC), where the company is developing the world’s rst hydrogen-producing offshore wind turbine, with the electrolyser sited directly onto an existing operational turbine. In May, the company secured funding for this green hydrogen pilot project from the Scottish Government. Now, Vattenfall wants to use Hollandse Kust West as a springboard for taking the next step and connecting multiple hydrogen turbines. “We want to show that the next step is already within reach and that we can produce offshore hydrogen on a large scale”, said Daan van Eijkel, Vattenfall’s bid manager who prepared the bid for HKW VII. “Thanks to the ‘island mode’, hydrogen turbines will eventually be selfsufcient, so there will be no need to connect to the electricity grid”. Vattenfall is one of several developers that revealed their bids in the latest Dutch offshore wind tender, for which the winner will be announced this Autumn, and not the only one planning the integration with hydrogen production. The partnership between Shell and Eneco, as well as the one between Ørsted and TotalEnergies, and RWE have included green hydrogen production in their Hollandse Kust West proposals. However, Vattenfall is the only one announcing the development of an offshore hydrogen cluster comprising single wind turbines equipped with elecrolysers.
NKT has signed a three-year service framework agreement with MAATS for the cable lay equipment on board cable-laying vessel (CLV) NKT Victoria. According to MAATS, NKT made a shrewd investment in the Service and Support package as it had been contracted on a number of signicant and time-sensitive projects. Offshore vessel management company Remøy Management secured the agreement on behalf of NKT. The lay system has been working since the vessel was launched in 2017 and at that time it was the largest of its kind, MAATS said. To remind, NKT Victoria was christened on 4 May 2017 and directly went to sea for its maiden project laying the 113-kilometer HVDC cable connecting the Scottish regions Caithness and Moray. The cable-layer, built by Kleven Verft, features two turntables with a combined capacity of 9,000 tons, plus a 500-ton capacity bre-optic tank below deck. The 140-meter vessel underwent maintenance and a ve-year classication at Ulstein Verft at the end of last year. On 17 April, NKT Victoria began export cable installation activities at the Dogger Bank A offshore wind project in the UK.
Bourbon has entered into a strategic partnership with IWS Fleet, a wholly-owned subsidiary of Integrated Wind Solutions (IWS), under which it will be able to provide subsea services in the French offshore wind market, among other things. The primary aim of the partnership is to allow Bourbon to offer commissioning and maintenance services to the French offshore wind market by using IWS’s Skywalker class vessels. As part of the agreement, Bourbon will be able to provide complementary ROV, subsea engineering and survey services, while IWS, through its subsidiary ProCon Wind Energy, can provide relevant above-the-water services, such as balance of plant covering substations and transition pieces. The deal will also allow Bourbon to market and operate the IWS’s Skywalker class walk-towork commissioning service operation vessels (CSOVs) in France which, as IWS said, are purposely designed to support commissioning works during the construction of wind farms, both bottom-xed and oating, as well as support operations and maintenance during their lifetimes. The 90-meter long hybrid-powered Skywalker class CSOVs will be the rst in the industry capable of zero-emission operations, according to IWS. The ship management will be performed by the French afliate Bourbon Offshore Surf. “BOURBON is proud to join forces with IWS, a key player in the offshore wind industry. This partnership will enable our two companies to offer full, adapted, and innovative services in the French wind market,” said Rodolphe Bouchet, CEO of Bourbon Marine & Logistics. “In this sense, IWS was a natural choice as our expertise is complementary. This agreement also conrms BOURBON’s commitment to contribute to the growth of the renewable energy industry.”
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SHIPBUILDING NEWS IWS currently has four vessels under construction with the rst two being scheduled for delivery in the second and third quarters of 2023 while the remaining two are planned for delivery in the rst half of 2024. The company also holds options for ordering two additional Skywalker class vessels.
EPS Takes Delivery of First LNG Dual-Fuel Suezmax Tanker
According to William Zhou, Vice President of GSI, the delivery of this vessel along with the handover in a month’s time of two methanolfueled tankers for Proman Stena Bulk marks “a high watermark for the company in building state-of-the-art alternative-fueled ships.” Zhou highlighted that among the achievements for the Greenway is that the engine meets the IMO’s Tier III emissions standards in both gas and fuel modes. He said when the Greenway is propelled in LNG mode, it can reduce carbon dioxide emissions by about 23 percent, nitrogen oxide emissions by about 90 percent, and particulate matter and sulfur oxide emissions by 99 percent. The shipyard is one of the busiest owned by CSSC. They are reporting a current orderbook for more than 70 ships valued are more than $7.5 million. The shipyard has been working to build its expertise in dualfuel vessels, reporting that it has built or is building a total of 32 dualfuel ships. This includes two LNG propulsion ropax vessels, two LNG propulsion Suez tankers, 14 LNG propulsion LR2 tankers, eight LNG propulsion PCTCs, and six methanol propulsion MR tankers. The yard also reports that it opened a new Marine and Technology Research Center as its team explores methanol, ammonia, bio-methane, and hydrogen as alternative future fuels.
China’s Guangzhou Shipyard recently completed the delivery of the 158,000 dwt tanker Greenway to Singapore-based Eastern Pacic Shipping, marking several important milestones in the efforts to deploy next-generation greener vessels. According to the shipyard, the vessel, which is the rst Suezmax built by Guangzhou, is also the world’s rst Suezman LNG dual-fuel tanker. Eastern Pacic placed the order for the vessel along with a sister ship in December 2019 as part of its continuing effort to reduce the carbon emissions of its operations. The tanker, which measures 898 feet in length, was designed by CSSC’s in-house design institute and is outtted with the latest technologies.
The Greenway was delivered to EPS on June 28. She will be followed by a sister ship, Starway, scheduled for delivery in August 2022. After the delivery, the Greenway embarked on her maiden voyage to Malaysia for its rst LNG bunkering. The vessel was loaded with 1,500 MT of LNG at the Port of Pengerang on July 4, 2022. India’s Reliance Industries chartered the Greenway for her maiden voyage to carry a cargo of Ultra Low Sulphur Diesel which will be loaded at their terminal in Jamnagar. The vessel will then continue to trade in the spot market.
Smaller Containership Order Trend Continued by Pacic International
Among the features being highlighted is the MAN B&W dual-fuel engine. The power plant is equipped with a high-pressure LNG system with fuel gas piping designed for pressures up to 350bar and tested up to 525bar pressure. The tanker is also tted with a high-pressure selective catalytic reduction system. The power plant is designed to produce a service speed of 14.2 knots. Adding Greenway to EPS’ eet the company said will further strengthen its position at the forefront of the industry’s energy transition. With dual-fuel vessels across EPS’ three core segments of containerships, dry bulk carriers, and tankers, the company continues to use alternative marine fuels to lower its emissions today. The addition of the Suezmax also proves that having dual fuel tonnage across various vessel types and segments is achievable, viable, and sustainable.
Container shipping lines are continuing to expand their eet of smaller ships. While much of the attention goes to the ultra-large vessels setting new records as part of the emerging class of massive 24,000 TEU vessels, the industry has quietly been building the orderbook at the other end of the spectrum with smaller, more versatile vessels as well. The orderbook for containerships in the 8,000 TEU range is approaching 100 vessels. While some vessels will be used to replace older tonnage and upgrade from vessels under 6,000 TEU capacity, the new smaller vessels are also giving the industry the ability to maintain higher service frequency on routes and more port calls that are not able to support or facilitate the larger vessels.
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SHIPBUILDING NEWS The growth in the small ship orders has also given the container lines the ability to focus on vessels in the 15,000 to 18,000 TEU range, which is emerging as the sector with the greatest versatility, and the giant 24,000 TEU vessels which provide economies of scale for the long-haul, high-density routes.
U.S. Coast Guard Awards Next Offshore Patrol Cutter Series to Austal
“Despite accounting for only 7.2 percent of the combined trading eet, contracting has been very active in the 6,000 to 8,000 TEU size segment, now accounting for 10.8 percent of the total order book,” wrote Niels Rasmussen, Chief Shipping Editor of BIMCO in a June 2022 report. BIMCO highlights that orders for vessels in this size range reached nearly 40 percent of all contracting since October 2020, which is nearly double from a low of just over 18 percent of the orderbook in late 2020.
Major setback for Florida-based Eastern Shipbuilding Group
Further evidence of the trend was supplied with the announcement today at Singapore-based Pacic International Lines (PIL) has ordered four 8,000 TEU container vessels due for delivery in 2025 from China’s Yangzijiang Shipbuilding. “This is part of our ongoing efforts to optimize and renew our assets for greater operational efciency. The new vessels will complement our existing eet and support us in the enhancement of our connectivity to better meet the needs of our customers worldwide,” explained Lars Kastrup, CEO of PIL. The shipping company, which was renanced in March 2021 and recently named Kastrup as its new CEO, is working to recoup after years of nancial losses and nearly four years since it introduced its last new builds. In March 2022, PIL placed its rst new orders to build four 14,000 TEU LNG dual-fuel vessels.
Austal U.S. has been selected to build the U.S. Coast Guard's next set of 11 Offshore Patrol Cutters (OPCs). The $3 billion contract award comes as a disappointment for Eastern Shipbuilding Group, the Florida-based shipyard that worked on the design and built the rst four in the series.
The latest orders for the smaller capacity vessels continue the company’s efforts toward reducing its carbon footprint. They will LNG dual-fueled vessels and they also elected to make the vessel futureready. According to the company, these vessels will each be equipped with an ammonia-ready fuel tank that can immediately convert to the future fuel.
In 2016, Eastern Shipbuilding Group won a contract for the rst OPC hull and up to eight follow-on vessels, with potential to build up to 25 in total. The yard's bid of $420 million per unit helped it to win over higher-cost options from more established military shipbuilders, including Bath Ironworks and Bollinger.
‘We have identied LNG as a commercially viable transition fuel solution and the new vessels, which will once again be LNG dual-fuel and ammonia ready,” said Kastrup. He noted that the new vessels will also contribute toward achieving PIL’s decarbonization goal of attaining net-zero carbon emission by 2050.
However, in 2018 - just as ESG was set to begin construction on the rst vessel in the series - the Panama City region was hit by a severe Category Five hurricane. Given the damage to its facilities and surrounding community, ESG led for extraordinary relief to modify the contract's terms. The U.S. Coast Guard granted the request, but also said that it would shorten ESG's contract to four vessels and recompete the rest of the series. Over the last four years, ESG has rebuilt and expanded its yards, and it expects to christen the rst-in-class OPC this year. All of the remaining three in the modied contract are under construction. In the meantime, it also geared up to compete again for the rest of the series, investing nearly $50 million to turn its Nelson Street shipyard complex into a dedicated "OPC factory." It built a new fabrication facility to complete aluminum superstructure components, and it created a C5ISR test site so that technicians could try out the ship's electronics suite before installation. However, the U.S. Coast Guard ultimately decided to award the next contract to Alabama-based Austal USA, the builder of the Independence-class Littoral Combat Ship (LCS). The Australianowned yard has a long history in the construction of aluminum-hulled vessels, but it is transitioning to accommodate orders for steel-hulled ships as well. Its new steel shipbuilding facility was nance in part by a $50 million Defense Production Act (DPA) matching grant from the Pentagon. Austal's steel production line just opened in April 2022, and its rst two vessels will be a pair of Navajo-class salvage tugs recently awarded by the U.S. Navy. The OPC is a steel-hull / aluminum-superstructure ship, and it is the largest contract award for this construction method yet for Austal.
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SHIPBUILDING NEWS “The Coast Guard’s decision to select Austal USA to build its second round of Offshore Patrol Cutters highlights the world-class workforce and proven track record of the Mobile shipyard,” said Senator Richard Shelby, Alabama's senior senator and vice-chairman of the Senate Appropriations committee. “This is excellent news for the future of our Coast Guard and for shipbuilding in Alabama." If the opportunity emerges, Austal USA is also expected to compete for a "follow-yard" contract to build hulls for the U.S. Navy's Constellationclass frigate series, delivering in parallel with designer and shipbuilder Fincantieri Marinette Marine. A dual-shipyard procurement arrangement for the Constellation-class has been discussed in Navy budget planning documents, but a rm decision has not been formally announced.
Elaine Luria introduced an NDAA amendment to invest $175 million in the facility for improvements to its dock, drydock and capital equipment. Sen. Roger Wicker introduced a similar proposal in the "Unwavering Support for Our Coast Guard Act," which would have provided $350 million for the yard's restoration. Van Hollen and Cardin's bill contains the most ambitious funding level yet proposed. It includes $400 million for the construction of a oating drydock and implementation of the rst three phases of the Coast Guard's shipyard optimization plan, plus another $232 million to complete the plan's objectives. In addition to the drydock, this would include wharf improvements, environmental remediation, a new warehouse facility, a new travel lift and other improvements as needed.
Two Senators Seek Funding to Daewoo Cancels Second LNG Renovate Baltimore's Coast Carrier Order Linked to Guard Yard Sovcomot
Two Maryland senators are making another pass at funding the restoration of the Coast Guard Yard, a little-known public shipyard that provides ship repair to midsize government vessels from multiple agencies. Senators Chris Van Hollen and Ben Cardin (D-MD) are the latest to take a crack at restoring the yard's aging infrastructure. The Coast Guard Yard took its current form in World War II, and it is not laid out for modern operations. It lacks storage space, its production areas are not optimally arranged, and it is difcult to move oversize components around the facility (a real challenge for a shipyard). In addition, it lacks drydock capacity to handle the Coast Guard's new agship patrol vessel class, the National Security Cutter. That said, the yard does a lot for its small size and aging infrastructure. At any given time, it hosts an average of eight ships belonging to the Coast Guard, the other armed forces and a range of federal agencies. It also helps x up decommissioned ships for foreign military sale, and it houses the only Navy-certied heavy weapons shop in USCG service. The Coast Guard Yard's needs were not included in the Shipyard Act, an FY22 NDAA amendment that pays for repairs for the U.S. Navy's four public yards. The Navy's facilities need billions of dollars for modernization and repair; all face long-term challenges with delayed project completions and backlogs, and their high-prole problems have received the bulk of public attention. There have been previous attempts to make sure the Coast Guard Yard's repair priorities also get addressed. Last year, Rep. For the Latest news and analysis go to www.seaandcoast.in
South Korean shipbuilder Daewoo Shipbuilding and Marine Engineering (DSME) has canceled a second order for an LNG carrier as part of an order placed in 2020 with an unnamed European shipowner. The widely anticipated move followed a similar action in mid-May. The contact is believed to be part of the order DSME received from Russian state shipping company Sovcomot for three LNG carriers plus additional vessels to be operated by Japan’s Mitsui O.S.K. Lines as part of Russia’s planned expansion of its gas operations. In a stock exchange ling dated June 30, DSME reported, “As the ship owner did not pay the shipbuilding price for one LNG carrier within the due date, the company notied the contract termination. The contract has conditions that the shipowner must fulll, and if the conditions are not met, the contract may be canceled.” Without providing details, they reported that a deadline had been missed on the contract forcing the shipyard to cancel the order to protect its rights under the contract. The original contract was valued at nearly $850 million but reduced after the May cancelation of the rst vessel to approximately $520 million. The remaining third vessel of this contract is valued at $260 million, but the company warns that if conditions are not met, they may also cancel that vessel. Each vessel represented about four percent of the shipbuilder’s annual revenue. Sovcomot has been unable to proceed with payments since the spring of 2022 after western sanctions against the state-owned shipping company were tightened in the wake of the invasion of Ukraine.
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SHIPBUILDING NEWS Sovcomot remains in technical default on two interest payments on its Eurobonds saying that the agents were unable to accept the funds and that it was seeking alternatives to make the payments. The company, however, also sold vessels in the spring as western banks and nancial institutions were required to reduce their holdings as part of the sanctions. While DSME continues to report strong orders, the loss of the vessels nonetheless comes as a difcult blow to the company. It is facing mounting operating costs especially related to the price of steel. LNG carriers are a higher value vessel due to their more technical nature and provide greater contributions to the company’s prot versus other tankers and containerships. DSME did not announce when the next progress payments would be due for the third vessel, but it is anticipated that they will cancel that order and the entire contract at that time. The vessels ordered in October 2020 were due for delivery by July 31, 2023. It is unclear if the vessels for the Japanese operators will proceed. South Korea’s exposure to Russia extends beyond DSME. Rival shipbuilder Samsung Heavy Industries also is working in partnership with Russia’s Zvezda shipyard. In March 2022, Samsung reported that it had completed a delivery to Sovcomot without detailing how the payment had been received. The shipyard, however, has another tanker that is nearing delivery and three additional hulls on order.
Hyundai Plans Ship Repair Yard at Subic Bay for Philippine Navy
The Korea Development Bank along with Filipino investors were reported to be the largest debtors in the collapse. As of 2021, HHICPhil had a total of $1.3 billion in outstanding loans, including $400 million due to Philippine banks and $900 million in loans from South Korean lenders. After years of negotiations, the Philippines decided to split the facility into two operations, with the North Yard being converted into Naval Operating Base (NOB) Subic by the Department of National Defense. Opened last May, the facility is now a homeport for Philippine Navy ships. The North Yard spans around 100 hectares of the site's more than 280 hectares. The activation of NOB Subic ofcials said is in line with the Navy's scaled-up maritime operations to support the needed base services of the deep-draft vessels, including those being built by Hyundai for the Philippines. The new base will house select eet marine units, maintenance, and replenishment facilities that will enable the eet to sustain the operational requirements of the current and future navy vessels. According to defense ofcials, NOB Subic is a vital component in the Navy's modernization effort toward becoming a multi-capable naval force. Hyundai is the builder of the Philippine Navy's rst two missile frigates, and in December 2021 was also awarded a contract for the two anti-submarine corvettes as well as an offshore patrol vessel. The South Korean yard previously completed one corvette, which is now in service with the Philippine Navy, and another one is expected to be delivered shortly to the Philippines. Hyundai also has a lifetime service support contract with the Philippine Navy for the guided-missile frigates previously delivered to the navy. In March 2022, the Philippines reported that it had selected U.S.based equity investment rm Cerberus Management Capital with Agila Naval to operate the southern portion of the site as a commercial shipyard. Cerberus was to settle Hanjin’s outstanding debts and in turn assume the South Korean’s 50-year lease on the yard.
German Navy Bids to Acquire Rostock Shipyard
Philippine ofcials are reporting that South Korean shipbuilder Hyundai Heavy Industries is planning to establish a repair facility at the former Subic Bay shipyard. The yard would be located on a portion of the yard formerly operated by another South Korean shipbuilding company, Hanjin Heavy Industries, and would be at least initially dedicated to the repair and maintenance of vessels Hyundai is building for the Armed Forces of the Philippines. Secretary of the Department of National Defense for the Republic of the Philippines, Deln Lorenzana, discussed the plans with reporters during his last meeting before retirement. "They are planning to construct a maintenance depot here for all HHI-ordered ships," Lorenzana said meeting with reporters on Tuesday. Development of the new ship repair yard would be the latest step in the Philippines’ effort to restart operations at the site which closed due to nancial troubles more than three years ago. Hanjin had established a Philippine subsidiary, Hanjin Heavy Industries and ConstructionPhilippines, that was operating the yard but was hit hard by the downturn in international shipping in the mid-2010s. After struggling to nd new work, they laid off as many as 7,000 workers in December 2018, and the following month, HHIC-Phil sought court receivership. 36|JULY 2022
The German government conrmed that it has entered a bid to acquire the Rostock shipyard that formerly belong to the now defunct MV Werften group that nancially collapsed in January 2022 after it failed to win additional loans from the government and its banks. The insolvency liquidator for the group reports that bidding for the shipyard located in the former East Germany will be closing today.
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SHIPBUILDING NEWS The German Navy reportedly working with the Federal Agency for Real Estate Tasks and the Federal Ofce for Equipment, Information Technology and Use of the Bundeswehr, submitted a proposal to create a new maintenance and repair base in Rostock, where the naval command is also located. The new facility would be in addition to a facility in Wilhelmshaven in western Germany on the North Sea. Rostock is located in the east on the Baltic. The Department of Defense reportedly wants the new location to build its operational exibility and strength in the region.
HJ Shipbuilding bags $240M order for LNG-fueled boxship pair
Acquired by Genting Hong Kong in April 2016, the Rostock shipyard which has been in business for nearly 70 years was the largest site in the group with an area of approximately 170 acres. Before the acquisition, it had built general cargo, bulker, container, and Arctic ships, including the Stena Don service and survey drilling rig as well as three offshore converter platforms. Genting Hong Kong made signicant investments at the site including $80 million for a new building hall and an advanced laser-hybrid welding line. The building dock is over 1,000 feet long with 260 feet covered. Ships with a deadweight tonnage of up to 200,000 dwt can be built at the shipyard. MV Werften had been using the Rostock facility as the fabrication site for large portions of the Global Dream cruise ships. The 700-foot midbody section of the rst Global Dream cruise ship was built at Rostock and transferred to Wismar in November 2019. Fabrication of the rst sections of the second Global Dream cruise ship began in Rostock in September 2019 with the rst steel cut. A few sections of the vessel’s keel were underway when MV Werften suspended operations in March 2020 due to the pandemic. Christoph Morgen, the insolvency administrator for MV Werften, said they would close the bidding today for the Rostock location. He then plans to meet with the creditors’ committee to make a nal decision on the Rostock yard. It had been widely reported that the government wanted to acquire the site for the navy, but it is unclear if they received any other bids for the Rostock yard. Morgen also recently said that they would sell the components, including the engines for the second Global Dream cruise ship, and would offer the few blocks that had been underway at scrap prices. Germany’s Chancellor Olaf Scholz has announced plans to increase defense spending and expand the country’s military capacity in response to Russia’s invasion of Ukraine and the increased tensions, especially in Eastern Europe. Ofcials estimated the purchase of the Rostock yard could create up to 500 jobs which would be especially meaningful after the collapse of MV Werften.
South Korean shipbuilder HJ Shipbuilding & Construction (HJSC) has received an order to build two eco-friendly containerships for an undisclosed European shipowner. Under the deal, the company will construct two dual-fuel 7,700 TEU vessels capable of running on liqueed natural gas (LNG). The order also includes options for the construction of two more boxships of the same size. If all the options are exercised, HJSC’s orderbook this year will rise to a total of ten ships worth about KRW 800 billion ($650 million). To remind, in April this year, the shipbuilder revealed it developed a dual-fuel, LNG-fueled containership concept. The 7,700 TEU boxship design was approved by the British classication society Lloyd’s Register (LR). The LNG-powered containerships will measure 272 meters in length and will be able to travel at a speed of 22 knots. The storage tank will have a capacity of 6,100 cbm. The design incorporates a Mark Ill Flex membrane, which is often used in large-capacity fuel tanks. The Mark III membrane system, developed by French engineering company GTT, is a containment and insulation system, directly supported by the ship’s hull structure. The project was developed in accordance with the International Code of Safety for Ships using Gases or other Low ashpoint Fuels (IGF Code) which aims to minimize the risk to ships, their crews, and the environment, given the nature of the fuels involved. Furthermore, the design is expected to meet International Maritime Organisation’s (IMO) Energy Efciency Design Index (EEDI), The EEDI requires a minimum energy efciency level per capacity mile for different ship types and size segments. Since January 2013, following an initial two-year phase zero, new ship designs need to meet the reference level for their ship type. Pursuing its net-zero ambitions, on 31 March, HJ Shipbuilding secured a contract to build two 5,500 TEU boxships by receiving a $150 million contract from an unnamed European shipowner. The boxships, said to be near-identical to vessels ordered last October, will be eco-friendly with advanced hull form and high fuel efciency.
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SHIPBUILDING NEWS
China: Evergreen takes MOL, Tsuneishi, Mitsui E&S delivery of ‘world’s largest’ join forces on ammonia24,000 TEU containership powered liqueed gas carrier
Hudong–Zhonghua Shipbuilding, a subsidiary of China State Shipbuilding Corporation, has delivered ‘the world’s largest’ 24,000 TEU-class containership ordered by Taiwanese shipping rm Evergreen Group. The ship, named Ever Alot, was delivered on 22 June at the shipbuilder’s Changxing Shipbuilding Base and was scheduled to begin sea trials on 24 June. According to the Hudong-Zhonghua, the vessel was independently designed by the shipbuilder and features a total length of 399.99 metres, a width of 61.5 metres and a depth of 33.2 metres. Ever Alot, the rst ship jointly built by Hudong-Zhonghua and Evergreen Group, is currently the largest containership of this type in the world, the Chinese shipbuilder said. The vessel adopts the bulbous bow design combined with largediameter propellers and energy-saving ducts, which enables low energy consumption, green environmental protection and high efciency.
Japanese shipping company Mitsui O.S.K. Lines, Ltd. (MOL) and compatriot shipbuilders Tsuneishi Shipbuilding and Mitsui E&S Shipbuilding have launched a joint project aimed at developing and building an ocean-going liqueed gas carrier that will use ammonia as its main fuel. As explained, the vessel is envisioned as a mid-size ammonia/LPG carrier equipped with a main engine that can run mainly on ammonia, and targeting net zero carbon dioxide (CO2) emissions while underway by using some of its ammonia cargo as fuel. According to the trio, this ship type is in the mainstream of ammonia carriers used for international maritime ammonia transportation, therefore, the vessel will be able to call at major ammonia and LPG shipping and receiving ports around the world, meaning it can be used on a broad range of routes. The three companies continue to move toward the joint development and design of the ship, and plan delivery and introduction of the vessel around 2026 as the rst “net zero emission ocean-going vessel”.
At the end of March this year, Evergreen Group and HudongZhonghua signed the third contract for the construction of a 24,000 TEU-class ultra-large containership.
In line with trends toward decarbonisation, worldwide interest in ammonia fuel—which emits no CO2 during combustion—is growing as a next-generation clean energy source. So the move to strategically use ammonia as fuel has been accelerating in the maritime industry as well.
The rst contract was signed in 2019 when the Taiwanese owner ordered four 23,000 TEU boxships that were subsequently upgraded to 24,000 TEU and in June 2021, Evergreen returned with an order for two more identical sister vessels.
The three companies intend to offer clean ocean transport solutions with net zero-emission vessels and play their part in efforts to realize a decarbonized society, while anticipating and responding to rising demand for ocean transport of ammonia.
At the end of 2021, the rst in a series of six 24,000 TEU containerships was launched at Hudong-Zhonghua’s Changxing Shipbuilding Base.
Last year, MOL decided to re-enter the ammonia transport business after almost ve years of being absent from the trade. It also joined forces with compatriot Namura Shipbuilding and Mitsubishi Shipbuilding to develop a large-size ammonia carrier powered by ammonia fuel.
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INTERNATIONAL NEWS VIETNAM
MSC Proposes $6B Investment for Transshipment Terminal in Vietnam
MSC in conjunction with the Vietnam Maritime Corporation is proposing the construction of a massive new transshipment container terminal near Ho Chi Minh City. The project, which calls for a total investment of $6 billion over the next 18 years, would support MSC’s growth and provide an alternative to Singapore, which is currently the primary transshipment terminal in Asia. It would also be part of an effort to expand the capabilities of Vietnam’s ports. The proposed terminal would encompass more than 1,400 acres in the Can Gio District of Ho Chi Minh City. The plan proposed a facility that would have an annual capacity of between 10 and 15 million TEU. It would have more than 23,000 feet of wharf and the capability to handle ships up to 250,000 tons and with a capacity of 24,000 TEU. Studies for the new terminal were carried out by MSC working with Saigon Port and recently submitted to the government for approval. The central government is believed to be in favor of the plan as it would support efforts to make Vietnam a regional shipping hub. MSC signed a framework agreement for the new terminal with the government of Ho Chi Minh City. The Viet Nam Maritime Corporation reports that in 2021 approximately 23.9 million TEU passed through the country’s ports, including Ho Chi Minh City and Ba R?a–Vung Tau province in the south and Hai Phong City near Hanoi in the north. Currently, however, Vietnam has a ver y low volume of transshipments. The new MSC terminal would focus on transshipment with as much as 80 percent of its volume being international with just 20 percent focused on the domestic Vietnamese market. Under the proposal, construction would begin on the new terminal in 2024 and it would open in 2027. The project consists of a total of seven phases, which would be completed by 2040.
Maersk and CMA CGM have also recently invested in expanding facilities in the region. Both of the companies operate from the neighboring Cai Mep District. Those facilities can now handle vessels up to 214,000 tons.
Singaporean prosecutors contend that Hin Leong used falsied documents in order to obtain tens of millions of dollars in trade nancing, then failed to repay the money. By the time the rm's shaky nances nally fell apart, the business empire owed its creditors $3.5 billion - and only a fraction has been At the end of 2021, Vietnam’s Ministry of recovered since. Transport detailed plans to invest between approximately $6 and $8 billion by 2030 in The newly-launched SGTraDex platform could the next phase of port development. Their help prevent similar instances of fraud by focus is on developing the Hai Phong and digitalizing the transaction, ensuring security Cai Mep ports to international standards and efciency, its sponsors say. The ow data and expanding their capacity. from the physical bunker supplier's bunkering vessel is used to generate a proprietary digital Singapore at the same time has also been bunker delivery note, delivered automatically working to expand its capacity to maintain to multiple players in the transaction. The its leadership role in the region. A new banker can use the digital note to verify the t e r m i n a l d e s i g n e d t o s u p p o r t t h e authenticity of the transaction, making it transshipment trade has begun operations. harder for a supplier to falsify a trade by Singapore is expanding its capacity to manipulating the paper trail. The result is a handle up to 37.5 million TEU. More than fully digital transaction, with no manual data three-quarters of the trade is also entry. transshipments. The platfor m is proving popular: top Singaporean bunkering nancier UOB - which provides trade nance for about half of the local SINGAPORE market - is making it mandatory for its customers. Equatorial Marine Fuel, a large bunker supplier in Singapore, has tted one third of its bunkering vessels with systems to capture ow data and generate digital bunker delivery notes. SGTraDex is also automating sales invoices and orders for Equatorial Marine Fuel, and the reduction in paperwork is expected to save the company more than New Singaporean Venture 50,000 man-hours per year (when fully rolled D i g i t a l i z e s B u n k e r out).
Trading to Prevent Fraud
"Our success in signing up more than a quarter of all licensed bunker suppliers even before our ofcial launch today, is a testament to their hard work and dedication in helping us succeed. We urge other bunker suppliers who are still undecided to take advantage of our rst year no-fee usage to digitalize their processes as soon as possible," said Antoine Cadoux, the CEO of SGTraDex.
Singapore's public-private trade data partnership, SGTraDex, has launched an industry-backed initiative to digitalize bunkering transactions. The new trade platform went live on June 1 after a month of "soft-launch" testing. The initiative's objective is to use digitalization to head off any further oiltrading fraud scandals, like the high-prole failure of Hin Leong Trading in 2020. By building more transparency into transactions and making it hard to forge documents, the initiative seeks to attract more bankers back to the bunkering sector; many nancial rms have shied away from paper-dependent bunker transactions after the multibillion-dollar loss caused by Hin Leong's fraudulent trade nancing scheme.
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INTERNATIONAL NEWS AUSTRALIA
Woodside wins Bumi FPSO termination case as court dismisses appeal
As this was more than two years before the charter was scheduled to end, Bumi deemed the termination unlawful and decided to take legal action against the Australian company. A few days after Woodside terminated this deal, Bumi Armada’s subsidiary Armada Balnaves sent a counter-notice of termination to Woodside, reserving the right to claim damages for the breach of the contract.
RUSSIA
As Hunger Crisis Grows, Russia Attacks Grain Terminal in Mykolaiv
Days later, Bumi went further with this dispute by starting a court action against Woodside, stating that the damages for breach of contract would be quantied at a later stage and that it also wanted reimbursement for an additional sum of $66.2 million for work done and materials supplied pursuant to the contract, interest, costs, and other relief as the court deemed t. A $283.5 million claim disclosing the height of the damages was submitted to the Supreme Court of Western Australia in April 2016. Almost four years after this dispute was initiated, the Supreme Court of Western Australia ruled in favour of Woodside. The ruling, which came in late January 2020 following a trial held in February and March 2019, dismissed Bumi’s claim. In response to this, Bumi revealed in February 2020 that it intended to appeal this decision. After the Malaysian offshore services provider led this, the Western Australian Court of Appeal heard the appeal in July 2021. After hearing the appeal led by Malaysia’s Bumi Armada, the Supreme Court of Western Australia has ruled in favour of Australia’s energy giant Woodside in a dispute over the early termination of an FPSO charter. Woodside revealed on Friday that the Supreme Court of Western Australia has dismissed Bumi Armada’s appeal in regards to the court’s decision from 2020, which dismissed the Malaysian player’s claim for compensation following the termination of the charter for the FPSO Armada Claire. As a reminder, Bumi Armada inked a four-year deal, valued at approximately $357.5 million, with Apache to provide the FPSO Armada Claire for the Balnaves eld back in September 2011. The contract was set to expire in August 2018, however, it also contained options for four annual extensions.
In a judgment issued on Friday, the Court of Appeal has opted to bring this case to an end by ruling in favour of Woodside and dismissing Bumi’s appeal. When it comes to Woodside’s recent developments, it is worth noting that the Australian energy player completed the merger with BHP’s oil and gas portfolio earlier this month.
Russian forces have damaged a giant grain terminal complex at the port of Mykolaiv, Ukraine, Europe's top diplomat conrmed on Monday. "Another Russian missile strike contributing to the global food crisis. Russian forces have destroyed the second biggest grain terminal in Ukraine, in Mykolaiv," said Josep Borrell, the vice president of the European Commission and the EU's foreign policy chief. "In light of such reports, the disinformation spread by Putin deecting blame becomes ever more cynical." According to Ukraine's South Operational Command, the missile attack came from Russian aviation assets operating over the Black Sea. The command claimed that it shot down two cruise missiles, but others struck port facilities and grain storage silos. "The pseudo care for humanitarian corridors and the unblocking of ports is just a reason to gain access to Ukraine's maritime infrastructure," the command said in a statement.
After Woodside bought Apache’s 65 per cent interest in this eld in April 2015, the contract was novated to the company the following month. However, Woodside decided to terminate the charter for this FPSO in March 2016.
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INTERNATIONAL NEWS DENMARK
BRAZIL
Five-year job for Altrad o n To t a l E n e r g i e s ’ offshore assets
Brazil Steps Further Ahead in Offshore Wind With Five New Projects
The Nika-Tera port complex at Mykolaiv is a private terminal about 30 nm inland from the Black Sea on the Bug estuary. The port's silos have capacity for up to 500,000 tonnes of grain at a time, and it is equipped with three bulk loading machines to move up to 1,500 tonnes of grain per hour. In years past, it has handled up to six million tonnes of grain, soybeans and oilseeds annually. Ukraine has more than 20 million tonnes of grain stuck in silage due to the Russian naval blockade, and any damage to the port could slow exports - if and when UN negotiators can convince Russian President Vladimir Putin to allow commercial food shipping to resume. The Russian blockade is preventing Ukraine from earning export revenue on grain, but it is also creating a manmade hunger crisis in parts of Africa and the Middle East - a crisis that gives Russia more political leverage in negotiations with Ukraine's NATO allies. Russian diplomats have obliquely offered to lift the blockade and allow food to ow to the developing world, but on certain conditions, including sanctions relief for Russia. “The conict in Ukraine isn’t just increasing hunger conditions within the country or even within the region," said UN World Food Program spokesperson Steve Taravella, speaking with Fox News this week. "The number of people who are on the brink of famine is now about 48.9 million in 43 countries."
Support services provider Altrad has secured a multi-million-pound, veyear contract to support the fabric maintenance of Total Energies’ offshore assets in the North Sea off Denmark. The contract also includes an option of two additional, two-year extensions, Altrad said on Thursday.
Global offshore wind developer Corio Generation is expanding its footprint to South America with plans to build ve projects in Brazil.
The contract, which will become operational on 1 October 2022, adds to Altrad’s success earlier this month when it also secured the Integrity Recovery Project (IRP) for TotalEnergies in Denmark.
Taken together, they will have a combined capacity of more than ve gigawatts, adding to Brazil's 97.4 GW list of projects in planning.
Altrad’s Director of Business Development & Strategy, Peter Hughes, said, “We are delighted to have secured both these contracts with TotalEnergies, which builds upon our successful strategic relationship that spans back over several decades. We look forward to working collaboratively with TotalEnergies, whilst using our industry-leading skills and capabilities to enhance the per formance of these contracts, to be the best they can be.” As noted by the company, the award of these contracts will increase its offshore team numbers in Denmark. Jens Moerk, CEO of Altrad Services, added, “We are extremely pleased to have been awarded these contracts by TotalEnergies, which will be delivered in a value-enhancing manner – using a combination of our local resources and facilities – and the skills and experience of the wider Altrad organisation.”
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Corio, which is a portfolio company of Macquarie’s Green Investment Group (GIG), is partnering with Brazilian power generation company Servtec, which has been in the renewables sector for more than 20 years. Corio and Servtec intend to apply for leases for ve xed-bottom projects in the country’s northeastern, southeastern and southern maritime areas, ranging from about 500 MW to over 1.2 GW in installed capacity. The projects are the 1.2 GW Costa Nordeste wind farm off the north-eastern state of Ceara, 495 MW Vitoria wind farm off south-eastern state of Espirito Santo and the 1.2 GW Guarita. The others are the 1.2 GW Cassino and 1.1 GW Rio Grande wind farms, both off the southern state of Rio Grande do Sul. “Brazil is blessed with immense wind resources along its coastline, offering a vital new source of clean, affordable and reliable energy. We see a huge opportunity for harnessing Brazil’s ocean wind energy, bringing economic investment and green jobs to the country,” said Jonathan Cole, Corio Generation CEO.
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INTERNATIONAL NEWS The investment in Brazil comes soon after Corio announced plans for a giant 2.5 GW windfarm off the coast of Victoria, Australia, which would supply enough clean energy for around 1.6 million homes. Corio boasts a global portfolio of more than 20 GW of offshore wind projects in Australia, South Korea, Taiwan, Japan, Ireland and the United Kingdom. Brazil is rolling out plans to diversify renewable energy mix, with a focus on offshore wind. In a January decree, the federal government introduced a new regulatory framework for offshore wind, and it took effect in June. The country has favorable wind speeds along its coastline and is emerging as a major new growth market for offshore wind. Brazil wants to identify new sources of low-cost renewable energy, and it has to satisfy rising electricity demand in heavily populated coastal areas - an ideal combination for offshore wind demand. The Renewables Consulting Group's 2021 Global Offshore Wind Annual Market Report shows that Brazil is the epicenter of future offshore wind development - ahead of wellestablished countries like the United Kingdom, Vietnam, China and Taiwan.
ITALY
Italy Acquires Two FSRUs to Replace Russian Gas Imports
Italian energy company Snam completed agreements to acquire two LNG vessels from Golar that will become Italy’s rst FSRU units. In March, the Italian government said it had mandated Snam to begin negotiations to bring the FSRU capabilities to the country as part of its effort to decrease its dependence on Russian gas.
Under the agreement announced today, Snam will pay $350 million for the Golar Tundra, which was built in 2015 and can operate as either an FSRU or as it is currently sailing as an LNG carrier. Snam will take delivery of the vessel but lease it back to Golar for a limited period of time after the closing while Golar assists in the port preparation for the vessel. They expect it will start operations as an FSRU during the spring of 2023, making it Italy’s rst FSRU. “With the purchase of the Golar Tundra, Snam is taking a decisive step to enhance the security and diversication of Italy’s energy supplies,” said Stefano Venier, CEO of Snam. “The role of the new FSRU for the benet of our country will be essential: alone it will contribute to about 6.5 percent of domestic needs thus bringing the country’s regasication capacity to over 25 percent of the demand.” In March, Italy’s Ecological Transition Minister Roberto Cingolani predicted it would take up to three years for the country to fully replace Russian gas. Italy currently imports over 90 percent of its gas from Russia, but the minister said they were undertaking moves to diversify their energy supplies by increasing LNG imports from the United States, Qatar, and Mozambique. As part of the effort, he announced the mandate for Snam to establish the import terminals located close to existing pipelines and major industrial centers.
Snam plans to install the Golar Arctic in the port area of Portovesme, in Sardinia, as part of a project to supply the island with energy. Demand for FSRU units has been growing as Europe moves to build its energy independence from Russia. Italy follows the example set by the Netherlands and Germany both of which have contracted for multiple FSRUs starting later this year. Finland and Estonia jointly arranged for an FSRU which will supply both countries and provide additional capacity for others in Eastern Europe.
SPAIN
Spanish Police Find Cocaine in the Hull and Aboard CMA CGM Boxship
Snam said the plan for the Golar Tundra is to position it in central-northern Italy, close to the areas with the greatest gas consumption to maximize its regasication capacity. The vessel has a storage capacity of around 170,000 cubic meters of LNG and a continuous regasication capacity of 5 billion cubic meters per year.
Spanish authorities are working to determine the details of a cocaine smuggling operation after a series of discoveries aboard a CMA CGM containership that had arrived from Colombia. A f ter being thoroughly searched, the authorities released the vessel late today for it to proceed to its next port while they continue to “Today’s announced sale marks the second investigate the circumstances of their transaction between Golar and Snam for discoveries. two independent FSRU projects in Italy in a short period of time,” said Karl Fredrik Local media reports indicated that the police Staubo, CEO of Golar. “We are pleased to were targeting the CMA CGM Voltaire when the work with Snam for the successful start-up vessel arrived at the Port of Algeciras, Spain on of the LNG terminals, and to contribute to July 5. It is believed they had become aware of the potential of narcotics being smuggled Europe’s drive towards energy security." aboard the vessel last week after possibly being The companies in mid-May signed an tipped off by the crew aboard the containership. agreement for Snam to acquire the Local reports indicate that crew discovered the existing LNG carrier Golar Arctic. Snam is possibility that their vessel was being used to spending $286 million for the vessel that transport the illegal drugs. was built in 2003 and as part of the agreement, Golar will oversee the The 6,900 TEU containership had departed Colombia in late June proceeding to Spain. The conversion into an FSRU. containership, which is 80,228 dwt and The conversion is expected to take about registered in Malta, was scheduled to make its two years after which the vessel will have a rst stop in Spain before proceeding to Malta. storage capacity of up to 140,000 cubic meters.
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INTERNATIONAL NEWS
Unusually High North Sea Containership Congestion Threatens EU Trade
In a coordinated effort between the Guardia Civil, Policía Nacional y Aduanas, and customs authorities, the ofcers boarded the vessel shortly after it docked in Spain mid-day Tuesday. The police reported searching the vessel and discovering a hidden compartment saying it appears to have been sealed “in a peculiar way,” which raised their suspicions. Opening the compartment, they discovered 12 bags of packaged drugs. It was determined to be 417 kilos of cocaine. Reviewing the details of the case, the police said it was unusual to nd the drugs hidden in a compartment on the ship, suggesting that the plan was to drop them overboard at some point. They said typically most of the smuggling happens in containers being landed from the ships. They doubted that the drugs were originally destined for Algeciras. Media reports believed that they also took into custody a Colombian citizen who was possibly working on the ship or a stowaway. The reports suggested that the person was attempting to jump overboard. Spanish authorities returned to the CMA CGM Voltaire on Wednesday morning for a second inspection. During this visit, they also brought along divers to check the hull of the vessel and discovered additional packets of cocaine hidden in a sea chest. Reports indicate that approximately 300 additional kilos were found hidden in the hull of the containership. The authorities are continuing their investigation, but the CMA CGM Voltaire was permitted to proceed to Malta late today.
Global trade continues to show positive signs despite the concerns raised about world economies. However, with unusually long congestion in the North Sea, analysts at Germany’s ifW Kiel Institute for the World Economy fear that the problems rising from signicant congestion, high transportation costs, and the resulting supply chain issues could dampen the positive data in the latest report of the Kiel Trade Indicator. According to their analysis over two percent of global cargo capacity is at a standstill in the North Sea. They are warning that the ships can not be loaded and unloaded due to the unusually long congestion which is likely to have a future effect on trade results. According to the latest data update of the Kiel Trade Indicator, world trade is up 0.4 percent in June compared with the previous month (price and seasonally adjusted). Europe, however, is showing the weakest results with Germany experiencing a 2.5 percent increase in imports but a slight decline in exports. The EU overall also showed a slight decline in exports and a smaller gain for imports in the latest Kiel indicators. By comparison, both the United States and China, where port congestion has declined, continued to show stronger gains for both imports and exports. “An end to congestion in container shipping is currently not in sight,” said Vincent Stamer, head of Kiel Trade Indicator. “While long queues have also been observed off Shanghai in the past, for example, this is very unusual for the North Sea. For Germany and the EU, this primarily affects overseas trade, especially with Asia, from where, for example, consumer electronics, furniture, or textiles are delivered.” As an indicator of the potential impact on trade in Europe, the analysts highlighted a strong decline in volumes of imports on route from Asia to Europe.
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According to the most recent report for the Kiel Indicator, “there are currently more than 20 percent fewer containerships on the move than would be expected under normal circumstances.” They were looking at trafc on the Red Sea saying it is the most important trade route between Europe and Asia. The last time the gap was this large Stamer said was after the outbreak of the COVID-19 pandemic two years ago. “A decisive factor could be that the negative effects of the Shanghai lockdown are now becoming apparent due to the 40-day voyage from China to Europe. The containership congestion in the North Sea and an increasing importance of rail transport due to the New Belt and Road Initiative may also be reducing freight volumes in the Red Sea,” says Stamer. The latest report also highlights that freight volumes in Russia's ports now point quite clearly to an attempt to substitute European trade with Asian volumes. In the Baltic Sea port of St. Petersburg, where goods arrive from Europe, freight volumes have suffered a sustained slump. The other two largest container ports are more involved with Asian trade and are recovering somewhat. “However, imports from Asia have not yet been able to replace trade with Europe,“ says Stamer. The Kiel Trade Indicator estimates trade ows (imports and exports) of 75 countries and regions worldwide, the EU and world trade as a whole. The next updates will be on July 20 and then at the beginning of August with July trade data.
Shell to Build Europe’s L argest Renewable H y d ro g e n P l a n t i n Rotterdam
Shell has decided to proceed with the construction of a massive new hydrogen plant in Rotterdam, which is expected to become Europe’s largest renewable hydrogen plant when it starts operations in 2025, and will signicantly increase Shell’s hydrogen production. Known as Holland Hydrogen I, the facility will be located in the Port of Rotterdam drawing power from a newly launched offshore wind farm,
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INTERNATIONAL NEWS The company announced today that it has taken the nal investment decision to proceed with the plant which analysts are viewing as a pioneering move noting that not all the regulations are yet nalized for the emerging industry. Shell is also calling the project the largest in Europe, although it is likely to be rivaled by others also in the planning stages. The 200MW electrolyze will be constructed on the Tweede Maasvlakte in the port of Rotterdam and will produce up to 60,000 kilograms of renewable hydrogen per day. The renewable power for the electrolyze will come from the offshore wind farm Hollandse Kust Noord, which is partly owned by Shell, and is currently under development. “Holland Hydrogen I demonstrates how new energy solutions can work together to meet society’s need for cleaner energy,” said Anna Mascolo, Executive Vice President, Emerging Energy Solutions at Shell. “Renewable hydrogen will play a pivotal role in the energy system of the future and this project is an important step in helping hydrogen fulll that potential.” The renewable hydrogen produced will supply the Shell Energy and Chemicals Park Rotterdam, through the HyTransPort pipeline, a new hydrogen pipeline being developed through the Port of Rotterdam. The hydrogen will be used to replace some of the grey hydrogen usage in the renery. According to Shell, this will partially decarbonize the facility’s production of energy products like petrol and diesel and jet fuel. As heavy-duty trucks are coming to market and refueling networks grow, Shell believes that renewable hydrogen supply can also be directed to help in decarbonizing commercial road transport.
With Holland Hydrogen I, Shell aims to produce hydrogen using electricity that has been generated by the offshore wind park Hollandse Kust Noord. The nal determinations will be made pending EU legislation, but Shell is participating in the offshore wind farm as part of the Consortium CrossWind, which won the lease for the site in July 2020. The wind farm is to be located approximately 11 miles off the west coast of the Netherlands with an installed capacity of 759 MW. Eneco, which is leading the development, plans to incorporate batteries, solar power, and hydrogen storage to ensure a continuous power supply regardless of the wind situation. The development timeline calls for the wind farm to be operational in 2023. 44|JULY 2022
Shell’s ambition is to help build a global h y d ro g e n e c o n o m y b y d e v e l o p i n g opportunities in the production, storage, transport, and delivery of hydrogen to end customers. Holland Hydrogen I’s approval marks an important milestone on that journey not only for the Netherlands, as well as globally Shell said in announcing its decision to proceed with the project. The company says that it owns and operates around 10 percent of the global capacity of installed hydrogen electrolyzes, including a 20 MW electrolyze in China that produces around 3,000 tons of hydrogen annually and a 10 MW proton exchange membrane electrolyzer in Germany that can produce 1,300 tons of hydrogen a year.
MSC Orders Next-Gen Cruise Ships With LNG and Hydrogen Power
Under the terms of today’s agreement with Fincantieri, work will be suspended on the construction of Explora III and Explora IV, which were part of the original $2 billion 2019 order for four 63,000 gross ton cruise ships. MSC will pay an additional $120 million per ship for the redesign to accommodate the LNG plant. The company said that each ship will be lengthened by approximately 62 feet from the planned length of 813 feet to enable the installation of the new power plants. Delivery of the two cruise ships, which had been scheduled for 2024 and 2025, is being rescheduled to 2026 and 2027. MSC also ordered two additional cruise ships of the call, Explora V and Explora VI, which Fincantieri says will feature a new generation of liqueed natural gas engines that will tackle the issue of methane slip. In addition, the new ships will also be equipped with “industry-rst environmental technologies and solutions, including a containment system for liquid hydrogen that will enable them to use this promising low-carbon fuel.” Hydrogen fuel will power a six-megawatt fuel cell to produce power for the hotel operation and allow the vessels to run on “zero emissions” in port, with the engines turned off. The two newbuilds will come into service in 2027 and 2028. Pierfrancesco Vago, Executive Chairman of the Cruise Division of MSC Group is calling Explora, “the cruise ships of tomorrow utilizing today’s latest technologies and being ready to adapt to alternative energy solutions as they become available.” He cites LNG as the cleanest marine fuel currently available at scale while saying it will play a signicant role in climate change mitigation with the engines having the potential to reduce CO2emissions by up to 25 percent compared to standard marine fuels. MSC also looks to the future with the potential for the increasing availability of bio and synthetic forms of LNG.
MSC Group announced plans to expand its yet-to-be-launched luxury cruise brand Explora Journeys with two additional ships while also incorporating LNG power plants and hydrogen fuel cells into the design. MSC and Fincantieri signed a memorandum of agreement to increase the eet to six cruise ships with the rst two, Explora I and Explora II, currently under construction at the Monfalcone, Italy shipyard. All six ships in Explora Journeys’ eet will also be equipped with the latest environmental and The adoption of the new, greener marine technologies. This includes selective technologies, follows an emerging trend in catalytic reduction technology to enable a the cruise industry. MSC’s broad market reduction of nitrogen oxide emissions, shore contemporary cruise brand MSC Cruises power plug-in connectivity, and underwater converted the nal cruise ship of its noise management systems. Meraviglia-Plus class currently being built in France to an LNG-fueled power plant “This is the very rst major agreement for new while the company is also preparing for the construction after the pandemic emergency rst of its large LNG-fueled cruise ships and testies not only to the further growth of due for delivery later this year. Fincantieri our long-standing partnership with MSC, has also started construction on its rst which we thank, but also the condence of both LNG-fueled cruise ships for Germany’s Tui groups in the future of the cruise industry,” said Cruises and Princess Cruises while in Pierroberto Folgiero, who recently appointed Finland, Meyer Turku recently started Chief Executive Ofcer of Fincantieri. “These construction on the rst methanol-ready ships will allow us to implement cutting-edge cruise ship also being built for TUI Cruises. technologies aimed at signicantly improving Viking recently said that two of its future environmental per formance, laying the cruise ships due to launch in 2024 and foundations for further developments.” 2025 will also have a hybrid power plant with hydrogen fuel cells.
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INTERNATIONAL NEWS MSC announced its plans to launch a luxury cruise operation in late 2018 and conrmed the order for the four cruise ships with Fincantieri in 2019. The original design was for 461 suites, penthouses, and residences. The rst of the cruise ships, which is due to enter service in 2023, was oated out at the beginning of the month while assembly has also begun on the second cruise ship due for delivery in 2024. Explora said the redesign of the four additional vessels will also permit the cruise line to increase the number of residences and enlarge public areas aboard the newer ships.
US Sanctions More Companies and Ships Linked to Iranian Oil Trade
With the Iranian nuclear talks seemingly going nowhere along with efforts to improve the Iranian oil trade, the U.S. Department of the Treasury’s Ofce of Foreign Assets announced a new wave of sanctions on companies and individuals as well as two vessels all tired to the trade in Iranian oil. This comes as the U.S. also remains in a dispute with the Iranians via the Greek courts over an oil shipment on tankers that was sanctioned in February 2022. According to the announcement, the sanctions targeted an international network of individuals and entities spanning from Iran to Vietnam and Singapore that has used a web of Gulf-based front companies to facilitate the delivery and sale of hundreds of millions of dollars worth of Iranian petroleum and petrochemical products to East Asia. U.S. authorities said the network had conducted signicant transactions for the sale and transport of petroleum products from Iran, dating back to at least November 2018.
The latest round of sanctions centers around an Iranian-based oil company called Jam Petrochemical Company, which the U.S. accuses of orchestrating the export of hundreds of thousands of metric tons of petrochemical products, worth hundreds of millions of dollars, to companies throughout East Asia. They contend the use of front bank accounts and companies to obfuscate the shipment and sale of Iranian petrochemicals. The sanctions also included the company believed to have purchased the oil products, Edgar Commercial Solutions, as well as a Hong Kong-based front company, Lustro Industry Limited, to disguise its role in the bulk purchase of petrochemical products. Other front companies and entities involved in the transactions ranged from the UAE to Truong Phat Loc Shipping in Vietnam and Everwin Shipmanagement in Singapore. Two chemical tankers, BS Bravo and Summer 5 linked to Truong Phat Loc Shipping, were also added to the designated list of sanctioned entities. Iran has previously belittled the sanctions saying they are all show and have done little to slow the trade. However, in April the U.S. used the sanctions for its case in the Greek courts seeking to seize a cargo of crude on a shadowy tanker that claimed to move between Russian and Iranian ownership in a ploy to avoid EU sanctions. Greece detained the ship thinking it was Russian, but the U.S. won a court order to seize the oil saying it came from Iran and was aboard a sanctioned Russian-owned vessel. The tanker, now showing its identity as Lana remains anchored off Piraeus, Greece after spending nearly three months in detention anchored off a Greek island. The courts reversed an earlier decision and said the tanker was released with Iran saying it would reclaim the oil ofoaded by the United States to another tanker. The two tankers are near each other in the anchorage but so far it appears there has been no further transfer of the oil.
“While the United States is committed to achieving an agreement with Iran that seeks a mutual return to compliance with the Joint Comprehensive Plan of Action, we will continue to use all our authorities to enforce sanctions on the sale of Iranian petroleum and petrochemicals,” said Under Secretary of the Treasur y for Ter rorism and Financial Intelligence Brian E. Nelson.
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Disabled Bulker Portland Bay Brought to Berth After Three Day Ordeal
A nearly 60-hour ordeal came to an end on Wednesday afternoon as salvage tugs were able to successfully bring the disabled bulker Portland Bay into port in Australia. Authorities and government ofcials are praising the efforts of the tugboat crews and the coordinated effort of multiple organizations to save the vessel and the 21 crewmembers on board. After days of heavy weather along the southeast coast, authorities reported a break Wednesday morning which they believed provided a window of opportunity. The 28,446 dwt Portland Bay had remained at anchor approximately 1.2 nautical miles off Port Botany. Two tugs remained with the stricken bulker since they had been able to put her into a more sheltered area Monday night after efforts to tow it out to sea failed. Speaking to the Sydney Morning Herald, the crew of the rst tugboat sent to assist the bulker described the conditions they faced. The captain said he selected the best vessel in their eet but that they were tow boats not salvage tugs. Being the only one in the area, they had no choice but to attempt to assist their fellow seafarers. The tug, which had a captain, engineer, and a single deckhand, sailed out Monday morning into seas running nearly 30 feet with blowing, driving rain that limited their visibility. Before the tug reached the powerless bulker they had already heard on the radio that the helicopter crews had abandoned their rescue efforts due to the weather and high seas which made it impossible to hoist crewmembers up from the bulker. The tug captain told the Sydney Morning Herald that when he reached the vessel it was just a quarter of a mile from the reef and less than a mile from the cliffs at the Royal National Park. They wedged the tug alongside the bulker attempting to stop its drift with the captain reporting that were “9-second waves,” meaning It took the tug nine seconds to fall from the peak to the bottom of the wave. They later attempted to tow the bulker away from the reef while parting multiple towlines. They, however, kept her off the rocks until they were joined by two more tugs later Monday that could help to reposition the Portland Bay. JULY 2022 |45
INTERNATIONAL NEWS The Ports Authority of NSW reported Wednesday morning that with the break in the weather commercial shipping was resuming at Port Botany as well as Port Kembla and Sydney. The Australia Maritime Safety Authority then issued an order for the 555-foot-long bulker to be towed into port.
Report: Wakashio Left Route for Cellphone Signal More Than Once
At mid-day, the Ports Authority assisted in getting marine pilots out to the Portland Bay, but they pointed out the danger in attempting to board the bulker on the pilot's ladder in these weather conditions. They also transferred a marine engineer and a salvage expert to the bulker who assisted in a survey and nalizing the tow plan. With a more powerful salvage tug having arrived from Newcastle, the decision was made to raise the bulker’s anchors and tow her into port. The operation took several hours but by midafternoon, they were safely alongside. The 21 crew aboard the Portland Bay was uninjured but the engineer on the rst tug to assist did suffer a leg injury which the Sydney Morning Herald reports caused him to go to the hospital on Tuesday. “I would like to acknowledge the heroic efforts of the towage crews who worked day and night to keep all aboard MV Portland Bay safe,” said Captain Philip Holliday, CEO of the Ports Authority NSW. “The professionalism and skill of the mariners involved were on display for the world to see in truly atrocious conditions.” He also acknowledged that “The master of the MV Portland Bay’s actions contributed to the success of keeping the vessel and his crew safe as part of the difcult operation.” AMSA has now assumed responsibility for the next phase. They reported that two inspectors and a specialist lead investigator were boarding the Portland Bay at Port Botany. The vessel has been ordered to make necessary repairs and will be recertied by AMSA before it is permitted to depart. The vessel’s owners Pacic Basin, headquartered in Hong Kong, issued a statement thanking the Australians for their efforts in protecting the crewmembers. The company said it would continue to cooperate with the authorities and support the investigation into what caused the vessel to lose power.
Nearly two years after the Japanese bulker Wakashio went aground on Mauritius and created a disastrous fuel oil spill, the Japan Transport Safety Board has issued a preliminary report based on its investigation. While the events at the time of the ground are well known, the Japanese authority is looking broader at the voyage, the crew, and the interaction between the vessel and the owner and charterer in Japan. The investigation and trial of the captain and rst ofcer in Mauritius focused on the grounding and the events leading up to the accident. The captain and rst ofcer, who ultimately pleaded guilty and we released at the end of 2021, admitted to a birthday party during which alcohol was consumed, improper stafng on the bridge, and a lack of charting. The Wakashio, they admitted, had approached Mauritius on July 25, 2020, seeking to obtain cell signals from shore so that crewmembers could communicate with family and friends at home in Asia. The Japanese investigators are exploring broader issues, however, looking at the preparation of the voyage, crew training, and the vessel’s movements throughout the voyage. The summar y of their preliminary ndings adds new details as well as provides recommendations to prevent similar accidents in the future. Reviewing the AIS data from the voyage, they found that the deviation from the planned course was not an isolated event. The Wakashio departed Singapore on July 14 and on July 15 and again on July 16, the ship left its planned route.
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The vessel approached Sumatra Island in Indonesia and during interviews with the crew, they found that on previous voyages the vessel had also navigated close to shore to obtain cellphone signals. The captain of the Wakashio approved the decision to change course to approach Mauritius on July 23, two days before they approached the island. The original plan was to remain approximately ve nautical miles offshore, but the captain approved the course change knowing that the Wakashio did not have navigational charts for Mauritius meaning that the crew would be doing visual navigation and looking for possible obstacles. The company’s safety and operations manual for the vessel required that an additional person is on duty on the bridge with the navigator when a course change was being made but on July 25 the navigator was alone due to the birthday party. The manual was also not observed with the requirement to remain at least two nautical miles offshore. Tracing the voyage data they further found that the Wakashio was not on the assigned track at the time of the grounding. The preliminary report addresses the root cause, ie looking for the cellphone signals to make calls home, saying that high-speed data communication is possible from a ship with a at-rate system. They found that no such system was provided on the Wakashio, but that considering the pressures of working aboard ships such a system should be made available. Crew training is identied. The report calls for better education on the operating procedures and safety manual, especially for the new crew before they join the ship. Safety awareness and surveying of crews should be conducted.
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NAVAL SECURITY NEWS Crews also need to be familiar with the ECDIS (Electronic Chart Display and Information System) with increased training and awareness of failsafe systems. The crew also needs to be educated not to take unsafe actions such as approaching the shore for personal reasons.
“The quick response by the aircrew in Cordova helped these two get the help they needed,” said Chief Petty Ofcer Katie Brown, Sector Anchorage command duty ofcer. “It’s incredible these two people made it out okay, and the fact that they had communication equipment readily available really aided in our response time.”
They however also nd fault with the management of the vessel. They point out that there was no system that alerted the companies that the vessel was deviating from the planned course and of course that the vessel lacked proper charts. The report calls for steps including strengthening the support system from land and support from the shore-based safety operations center. They also cite the need for better communication between the vessel owner, which in this case was Nagashiki Shipping Co., and the charter, Mitsui O.S.K. Lines.
Last week, the U.S. Navy carried out a more challenging shoreside rescue for a badly-injured hiker at Colchuck Lake, an isolated backcountry destination about 70 miles to the east of Seattle.
Two years after the grounding, the island continues to experience the after-effects of the pollution. Yesterday, June 29, the National Center for Disaster Risk Reduction and Management on Mauritius reduced the restrictions saying people could resume sea activities such as swimming, surng, diving, and boat trips to Pointe-d’Esny and PointeJérôme. However, they continue to maintain a restricted radius of 300 meters off the lagoon at Pointe-d’Esny where the Wakashio broke up. The remains of the wreck were cleared earlier this year, but individuals continue to report nding bits of oil along the shoreline.
U.S. Coast Guard, Navy Keep in Practice With Shoreside Rescue Missions
On the evening of June 30, a Navy helicopter SAR crew out of Naval Air Station Whidbey Island was on a training ight when they received a request to evacuate a 28-year-old man who had sustained severe head injuries. After a refueling stop, they got under way at about 2225 hours and headed for Colchuk Lake, about 100 miles to the southeast of their home base. Working with the Chelan County Sheriff's ofce, they arranged for the injured hiker's group to mark their position with strobe lights. Two members of the helicopter's crew rappelled down about 150 feet away from the injured man's location, and they had him prepped and ready for medevac within 11 minutes. The patient was delivered to a hospital in Seattle by midnight. It was the 15th rescue mission that NAS Whidbey Island's threehelicopter SAR unit has carried out this year, including eight medevacs. It was also the second time that NAS Whidbey Island has dispatched a rescue helicopter to Colchuck Lake in recent years: in 2015, one of its aircrews carried out a challenging cliff rescue for a hiker who had gone over the edge in the area.
INS Satpura Arrives At Pearl Harbour In Hawaii To Participate In Rimpac-22
The U.S. Coast Guard and the U.S. Navy perform an important secondary role in shoreside search and rescue in the Northwest, where their long-distance SAR capabilities may be the only available option for remote, backcountry distress situations. There may not be heaving seas on these missions, but the stakes are often just as high. On Tuesday, the Coast Guard rescued two people after their plane crashed on Montague Island, at the entrance to Prince William Sound in Southeast Alaska. Coast Guard Sector Anchorage received a report at 1615 hours that a Super Cub bush plane with two people aboard had crashed on a beach on Montague Island. The two survivors were able to communicate with a friend using the InReach service. A Coast Guard helicopter crew based at Cordova arrived on scene within two and a half hours. The helicopter landed near the crash site, took aboard the two survivors and transported them safely back to Cordova. They were in stable condition with no reported injuries.
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INS Satpura entered Pearl Harbour in Hawaii Islands on 27 Jun 22 to participate in RIMPAC-22. INS Satpura and one P8I maritime patrol aircraft from the Indian Navy are participating in one of the largest multilateral Naval Exercises, the US Navy led biennial Rim of the Pacic (RIMPAC) exercise 2022. The exercise spanning over six weeks of intense operations and training is aimed at enhancing interoperability and to build trust among Navies of friendly foreign countries. 27 countries are participating in the current edition of the multi-dimensional exercise.
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NAVAL SECURITY NEWS On her departure from Safaga on 30 June 22, INS Kochi participated in a Maritime Partnership Exercise with the Egyptian Navy ships ENS Al Zubair and ENS Abu Ubadah (Lurssen Class Offshore Patrol Boats). The exercise comprised of Visit Board Search and Seizure (VBSS) drills, communication exercise, ag hoist drills and operational manoeuvres including ceremonial steampast.
Eastern Fleet Ships Visit Singapore
INS Satpura is an indigenously designed and built 6000-tonne guided missile stealth frigate equipped to seek and destroy adversary in air, surface and underwater. A frontline unit of Eastern Fleet based at Visakhapatnam, INS Satpura is currently on an extended operational deployment in the 75th year of India’s Independence.
INS Kochi Visits Safaga, Egypt As part of their deployment to South East Asia, Indian Naval Ships Sahyadri and Kadmatt under the Command of Rear Admiral Sanjay Bhalla, NM, Flag Ofcer Commanding Eastern Fleet, visited Singapore from 01 - 03 July 2022. INS Sahyadri is an indigenously built multi-role stealth Frigate and INS Kadmatt is an indigenously built ASW Corvette. During the visit, the IN crew participated in professional interactions with the Republic of Singapore Navy (RSN) towards enhancing mutual cooperation and interoperability. Social and informal exchanges, aimed at consolidation of ties and mutual understanding between the Navies were also undertaken. INS Kochi, Mission Deployed in the Red Sea visited Port Safaga, Egypt from 28 - 30 Jun 22. During the ship's visit, Rear Admiral Sameer Saxena, Flag Ofcer Commanding Western Fleet (FOCWF), along with Captain Himadri Bose, Commanding Ofcer, INS Kochi, called on Rear Admiral Mohamed Nabil Ibrahim Ahmed, Base Commander of Safaga Naval Base, Egyptian Navy. His Excellency Mr. Ajit Gupte, Ambassador of India to Egypt, also met Rear Admiral Sameer Saxena, FOCWF onboard INS Kochi.
The visit of IN ships helped enhance maritime co-operation and bolster India’s strong bonds of friendship with Singapore that would further contribute towards security and stability in the region. The ships’ visit also coincided with Singapore Armed Forces (SAF) Day. Rear Adm Sanjay Bhalla FOCEF visited the Kranji War Memorial in Singapore & paid tribute to men & women who laid down their lives in the line of duty during the Second World War.
Engagements between Indian Navy and Egyptian Navy personnel included a friendly football match at the Red Sea Navy Base, where RAdm Mohammed Nabil Ibrahim Ahmed, was the Chief Guest. Personnel from both the navies also carried out ship visits.
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NAVAL SECURITY NEWS ALH Squadron INAS 324 Commissioned At Visakhapatnam
Indian Navy's Ins Satpura And P8i Participate In The Rimpac Harbour Phase
Indian Naval Air Squadron 324 was commissioned into the Indian Navy in the presence of Vice Admiral Biswajit Dasgupta, AVSM, YSM, VSM Flag Ofcer Commanding-in-Chief, Eastern Naval Command at an impressive Commissioning Ceremony held at INS Dega, Visakhapatnam on 04 Jul 22. The unit is the rst Naval Squadron on the Eastern Seaboard operating the indigenously designed and built Advanced Light Helicopter (ALH) MK III (MR) helicopters. INAS 324 has been named "KESTRELS” which are birds of prey and have good sensory capabilities symbolising the envisaged role of the Aircraft and the Air Squadron. The Insignia of the Squadron depicts a ‘KESTREL’ searching over vast blue and white sea waves, which signies the integral Maritime Reconnaissance (MR) and Search and Rescue (SAR) role of the Squadron. ALH MK III helicopters are tted with state-of-the-art equipment which includes modern surveillance radar and electro-optical sensors. Induction of these ying machines is, in pursuance of the GOI initiative of Atma Nirbhar Bharat, as they have been developed and manufactured by Hindustan Aeronautics Limited (HAL).
Indian Navy's indigenous Frigate INS Satpura and P8I LRMRASW aircraft are at Pearl Harbour in Hawaii taking part in one of the largest multilateral Naval Exercises, the Rim of the Pacic exercise, also known as RIMPAC. While Satpura reached Hawaii on 27 Jun 22, the P8I aircraft arrived on 02 Jul 22. The harbour phase of the exercise saw participation in multiple symposiums, exercise planning discussions and sports competitions. The crew also visited the historic museum ship USS Missouri and paid homage to fallen soldiers who made the supreme sacrice during World War II at USS Arizona Memorial. INS Satpura and one P8I maritime patrol aircraft are participating in the exercise which spans over six weeks of intense operations and training aimed at enhancing interoperability and building trust among Navies of friendly foreign countries. 28 countries, 38 warships, 09 land forces, 31 unmanned systems, 170 aircraft and over 25,000 personnel are participating in the multidimensional exercise. The sea phase commences on 12 Jul 22 and will culminate with the closing ceremony on 04 Aug 22. Indian Navy's P8I LRMRASW aircraft arrived at AFB Hickam, Joint Base Pearl Harbour, Hawaii, USA to participate in the 28th edition of the biennial Rim of Pacic (RIMPAC-22), the world's largest international maritime exercise. The P8I Detachment led by Cdr Puneet Dabas was received by Wg Cdr Matt Stuckless (RAAF), Head of MPRA operations from Hickam aireld. P8I will be participating in coordinated multinational, multiplatform advanced Anti Submarine Warfare operations along with 20 MPRAs from seven participating nations.
In addition to their primarily roles of MR and SAR, these helicopters can also be deployed for Humanitarian Assistance and Disaster Relief(HADR) Operations as well as Special Operations with Marine Commandos. The helicopter also has an airborne Medical Intensive Care Unit (MICU) for use in the Air Ambulance role to facilitate the medical evacuation of critically ill patients. Addressing the gathering. Vice Admiral Biswajit Dasgupta stated that the commissioning of the rst ALH MK III Squadron in the Eastern Naval Command will enhance the surveillance capability on the Eastern Seaboard. INAS 324 is commanded by Cdr SS Dash, an accomplished and highly experienced ALH Qualied Flying Instructor with extensive operational experience. For the Latest news and analysis go to www.seaandcoast.in
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NAVAL SECURITY NEWS
Royal Navy Seizes Iranian Missile Components in HighSeas Intercepts
The Royal Navy has revealed two high-impact missions which have been kept under wraps for months. In January and February, the service collaborated with the U.S. Navy to interdict small boats laden with surface-to-air missiles and cruise-missile components. The cargoes were Iranian, and the boats were intercepted along routes typically used to trafc weapons to Yemen. These seizures add to the long-held belief among U.S. intelligence and defense ofcials that Iran is supplying sophisticated weaponry to Yemen's Houthi rebel faction. The seizures occurred on January 28 and February 25, both in the early hours of the morning. The frigate HMS Montrose’s helicopter was aloft and scanning for smuggling vessels when its crew spotted small boats moving at high speed away from the Iranian coast. On both occasions, the helicopter crew followed the vessels and spotted suspicious cargoes on deck.
“The UK is committed to upholding international law, from standing up to aggression in Europe to interdicting illegal shipments of weaponry that perpetuates instability in the Middle East,” said UK Minister for the Armed Forces James Heappey. “The UK will continue to work in support of an enduring peace in Yemen and is committed to international maritime security so that commercial shipping can transit safely without threat of disruption.” The U.S. Navy's 5th Fleet hopes to secure more high-value seizures like these through the use of a bounty payment program. For the rst time, it is now offering foreign nationals up to $100,000 for information leading to the seizure of narcotics or weapons.
Canadian Coast Guard Looks to Charter Interim Research Vessel Courtesy Royal Navy A team of Royal Marines approached the vessels using Montrose's small boats, and they conducted board, search and seizure operations. The U.S. Navy destroyer USS Gridley’s crew deployed an MH-60 Seahawk helicopter during the February interdiction to provide overwatch. In the course of the boarding operations, dozens of packages of advanced weaponry were discovered, seized and brought back to HMS Montrose. These suspicious components were shipped back to the UK for analysis. Among other items in the cargo, defense intelligence experts identied Iranian-made 351 cruise missiles and 358 surface-to-air missiles. According to the UK, the 351 (Quds-1) is a cruise missile with a range of up to 600 miles. Houthi rebels have often used this model to attack targets in Saudi Arabia, and it was also deployed for the deadly Houthi attack on Abu Dhabi in January. 50|JULY 2022
The Canadian Coast Guard has begun a search for a temporary replacement for its now retired Atlantic coast Offshore Oceanographic Science Vessel. According to a report from CBC, the government has already begun to charter vessels and is now developing a plan to meet its research needs after its oldest serving vessel, the 59-year-old CCGS Hudson, was forced into retirement by an engine failure in November 2021. A new vessel has been ordered for the Coast Guard but it is not expected to be delivered until 2025, barring construction delays. For the Latest news and analysis go to www.seaandcoast.in
NAVAL SECURITY NEWS The report indicates that the Canadian Coast Guard earlier this year paid the U.S.-based Woods Hole Oceanographic Institution nearly $4 million for a short-term charter. The vessel was used to complete climate monitoring surveys originally planned for the Hudson. Further, CBC reports that another charter is expected again to ll in this fall for scheduled research projects.
Indian Coast Guard Rescues Crew from Sinking Cargo Ship
The Canadian Coast Guard conrmed that it has issued a request for information. It is seeking a suitable vessel to conduct research for a ve-year period between 2023 and 2026. They are also asking for a further option for a two-year extension of the charter. The vessel would be based on the Canadian Atlantic coast. Experts pointed out to CBC that there may not be a suitable vessel available due to the specialized nature of the mission. They believe the Canadian Coast Guard made the request to explore its options for the interim period and develop contingency plans until its newly built vessel will be ready. The problem came about after the Coast Guard determined it was no longer practical to further extend the service of the Hudson. She had undergone a life extension ret in 2019 that was expected to keep her in service until at least 2024. However, in January 2022 the Coast Guard reported that “Due to the scale of the problem and the time and cost to repair it, combined with the costs associated with an upcoming period of regulatory compliance work, it has been determined that the ship is beyond economical repair and further investment would not allow it to return to reliable service.” The premature end to her planned career also called attention to Canada’s National Shipbuilding Strategy, which critics of the government say is years behind schedule and incurring massive cost overruns. Plans to replace the Hudson began in the early 2000s, but the order was not placed till February 2021. Despite reports that steel cutting is nally underway and long lead elements for the ship have been ordered, the project is already behind schedule. When the contract was announced they set a target date of 2024 for delivery, which has already slipped to 2025 and once the vessel is delivered it will require a period of time for commissioning before undertaking its rst missions. Faced with a shortage of icebreakers, the Canadian Coast Guard has turned to the secondhand market. In November 2021, it acquired its fourth icebreaker with this one being a commercial light icebreaker that will require a conversion before going on permanent assignment. The vessel was built in Romania and was coming from Turkmenistan. The Coast Guard previously acquired the three medium-sized icebreakers. Canada is not alone in seeking charters to bridge delays in its shipbuilding program. Last month, the U.S. Coast Guard also released a request for information seeking to identify U.S.-built commercial icebreakers that might be available for purchase. Currently, with only one heavy icebreaker, the 46-year-old Polar Star, the U.S. Coast Guard reported it was looking for a second vessel that would be available starting in 2023 or 2024. The U.S. Coast Guard ordered two nextgeneration vessels from Halter Marine, but the project is also behind schedule in part delayed by the pandemic and also a complicated design process. The U.S. is not expecting its two vessels until 2025 and 2026.
The Indian Coast Guard is hailing its efforts in what it calls a “prompt and swift Search and Rescue (SAR) Mission” saving the lives of 15 Syrian seafarers after they abandon their sinking cargo ship. They were all successfully recovered from lifeboats and lift rafts despite what the Coast Guard termed difcult conditions. The circumstances leading up to the rescue are confused with some reports suggesting the vessel, a 32-year-old general cargo ship sailing under the ag of Belize suffered a mechanical failure while other reports suggested it possibly was intentionally grounded. The Indian Coast Guard reported receiving a distress call on June 21 with the crew telling them that they were preparing to abandon the vessel named Princess Miral.
The 7,000 dwt general cargo ship had loaded a cargo of 8,000 tonnes of steel coil in China in May. It had stopped at the Port Klang anchorage at the beginning of June and earlier this week was located off the coast of India. It anchored north of New Mangalore, India on June 18 but later appears to have repositioned to the south of the port city. The vessel had been sailing to the Suez Canal where it was scheduled to transit at the beginning of July on its way to Lebanon. After grounding the vessel reported hull breaches which were causing ingress of water into the holds. Pictures released by the Indian Coast Guard however show the vessel sinking by the stern. Commander S B Venkatesh of the Indian Coast Guard told The Times of India, “In my 30 plus years in service, this was the darnedest mission undertaken in rescuing mariners. The successful operation reafrms the Coast Guard’s capabilities.” Two Indian Coast Guard vessels, the Vikram and Amartya were dispatched in response to the distress call. The crew was rescued from the boats and transferred to shore where they are currently being interviewed to determine more of the circumstances leading up to the emergency. It is unclear if the vessel remains aoat on a reef or if it went down after the rescue.
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NAVAL SECURITY NEWS
PADMA, the Centralised Pay System for Indian Coast Guard launched
This module has been developed under the aegis of Defense Accounts Department and will be operated by Pay Accounts Ofce Coast Guard, Noida. The launch marked the beginning of the Centralized Pay System (CPS), the foundation of which is being laid down by the Defence Accounts Department Headquarters to provide one stop pay accounting solutions for all organisations under the Ministry. The CGDA emphasized that the Government has campaigned for Digital India to ensure dedicated services and reduce manual intervention at every level & to promote E-Governance in a big way. Launch of PADMA will strengthen the Digital India concept. Also, it is an ‘Atmanirbhar Bharat’ initiative as the entire module has been designed and developed by Indian entrepreneurs assisted by domain experts.
Pay Roll Automation for Disbursement of Monthly Allowances (PADMA), an automated Pay & Allowances module for the Indian Coast Guard was inaugurated by Shri Rajnish Kumar, Controller General of Defence Accounts (CGDA), Ministry of Defence, on June 28, 2022. PADMA is an automated platform leveraging latest technology which will provide seamless and timely disbursal of Pay & Allowances to around 15,000 Indian Coast Guard personnel.
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laughter club Q. What do you do with a sick boat? A. Bring it to the dock! Boat puns are *ferry* funny! Here are some more corny jokes and puns that you can’t help but laugh at. Q. Why did the crab cross the beach? A. To get to the other tide! Q: Why don’t pirates shower before they walk the plank? A: Because they’ll just wash up on shore later. Q: Why is pirating so addictive? A: They say once ye lose yer rst hand, ye get hooked! Q: How do pirates know that they are pirates? A: They think, therefore they ARRRR!!!!! Q: What has 8 legs, 8 arms, and 8 eyes? A: 8 pirates. Q: What did the ocean say to the pirate? A: Nothing, it just waved.
Q: What’s the difference between a hungry pirate and a drunken pirate? A: One has a rumbling tummy, and the other’s a tumbling rummy. Q: Why does it take pirates so long to learn the alphabet? A: Because they can spend years at C. Q: Why did nobody want to play cards with the pirate? A: Because he was standing on the deck.
Why did two pirates get into an argument? Because they couldn't see aye to aye! How much did the pirate pay for his hook and his peg? An arm and a leg! What's the difference between a pirate and a raspberry farmer? The pirate buries his treasures, but the farmer treasures his berries. Why are maths teachers secretly pirates? Because they're always trying to nd X!
Q: What are the 10 letters of the pirate alphabet? A: I, I, R, and the seven C’s!
Why is being a pirate so addictive? Because once you lose your rst hand, you get hooked!
Q. What do you call a pirate who likes to skip school? A. Captain Hooky!
Why don't pirates take a bath before they walk the plank? Because they'll just wash up on shore later!
Q. What did the pirate say when he became an octogenarian? A. Aye matey years old!
How much did the pirate pay to get his ears pierced? A buck an ear! What's a pirate's favourite element? Arrrgon . . . or gold!
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