WorkBoat February 2015

Z-Drive Towboat • RIBs • Monitoring Systems ®

IN BUSINESS ON THE COASTAL AND INLAND WATERS

FEBRUARY 2015

Full Steam

Passenger vessel operators had a good year and are expecting an even better one in 2015.

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ON THE COVER

®

FEBRUARY 2015 • VOLUME 72, NO. 2

The 140-passenger Island Queen in Miami. Photo courtesy of Island Queen Cruises

FEATURES 34 Cover Story: Smooth Ride Passenger vessel operators had a good year and expect an even better one in 2015.

40 Vessel Report: Inflatabilty To be a true RIB, it must have a round tube on top.

BOATS & GEAR 26 On the Ways Master Boat delivers new 201' OSVs to Harvey Gulf and Seacor Marine. BC Ferries starts construction on its first cable ferry. Workskiff to build up to 64 8-meter Surface Support Craft. Rodi Marine to build two more 175'-class DP-2 fast suppliers at Swiftships. Conrad lands $36.4 million contract for new Massachusetts passenger/vehicle ferry.

40

44 Nice Moves For Carline Companies, new Z-drive fleet towboat provides plenty of maneuverability to battle high water and river currents.

48 Fuel Watch Monitoring of fuel loads and consumption can aid in recordkeeping and spending less at the fuel dock.

AT A GLANCE 10 10 11 12 14 16 18

On the Water: Make sure your crews use the right knot.

Captain’s Table: It was another great WorkBoat Show.

OSV Day Rates: When will oil hit bottom?

WB Stock Index: Composite Index loses 4.7% in 2014.

Inland Insider: More fallout from low oil prices.

Insurance Watch: Insurance agents can be your advocate.

Legal Talk: A different take on a bounty claim.

NEWS LOG 20 20 22 22 25

Court reverses Bollinger cutter suit dismissal.

Corps project to cause river delays near Memphis, Tenn.

Upper Miss lock closing will cost jobs.

Chouest acquires Bollinger.

Diesel fuel prices continue to plummet.

www.workboat.com • FEBRUARY 2015 • WorkBoat

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44 DEPARTMENTS

4 Editor’s Watch

8 Mail Bag 52 Port of Call 67 Advertisers Index 68 WB Looks Back

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Low oil prices, more cargo

M

ost of you are probably tired of reading about the recent plunge in oil prices, unless it has to do with how much less you’re paying at the pump.

For the energy sector and offshore service vessel operators, it has been nothing but bad news lately. In early January, oil prices dipped below $50 bbl. with many industry pundits predicting a drop below $40. Day rates and utilization for OSVs and crewboats, especially older and smaller vessels that work the shelf, have dipped in recent months right along with the jackup rig count.

The longer oil prices remain depressed, the tougher it will be on OSV and crewboat operators. Also, some Gulf shipyards that primarily build OSVs and crewboats will suffer a bit, however the post-moratorium building frenzy was slowing down anyway.

But the workboat industry isn’t just about offshore oil and gas, though it’s certainly a big part of it. Lower fuel costs are good for the overall economy, and that’s good news for inland barge companies, passenger vessel operators and others in the workboat industry.

For inland operators, lower oil prices should lead to an increase in consumption that should translate into more demand for transportation. Lower energy prices will cut manufacturing costs and increase disposable income, which should boost spending Increased spending and lower fuel prices are two reasons the passenger vessel industry is optimistic about 2015.

Last year was a good one for the industry and passenger vessel operators predict an even better 2015. (See

David Krapf, Editor in Chief

our cover story on page 34.) For warm weather operators, the year has already got off on the right foot.

Both individual and corporate business is “starting off good,” said Capt.

Mike Simpson, co-owner and operations manager, Island Queen Cruises, Miami. He’s hoping for a 10% increase on the individual side and 15% corporate. “Companies are maybe reaching a little deeper into their pockets,” he said. Simpson believes that lower fuel prices could be a big positive on the individual side.

Low oil prices are not bad for everyone in our industry.

dkrapf@divcom.com

WORKBOAT® (ISSN 0043-8014) is published monthly by Diversified Business Communications and Diversified Publications, 121 Free St., P.O. Box 7438, Portland, ME 04112-7438. Editorial Office: P.O. Box 1348, Mandeville, LA 70470.

Annual Subscription Rates: U.S. $39; Canada $55; International $103. When available, extra copies of current issue are $4, all other issues and special issues are $5. For subscription customer service call (978) 671-0444. The publisher reserves the right to sell subscriptions to those who have purchasing power in the industry this publication serves. Periodicals postage paid at Portland, ME, and additional mailing offices. Circulation Office: 121 Free St., P.O. Box 7438, Portland, ME 04112-7438. From time to time, we make your name and address available to other companies whose products and services may interest you. If you prefer not to receive such mailings, please send a copy of your mailing label to: WorkBoat’s Mailing Preference Service, P.O. Box 7438, Portland, ME 04112. POSTMASTER: Send address changes to WORKBOAT, P.O. Box 1792, Lowell, MA 01853. Copyright 20 15

by Diversified Business Communications.

Printed in U.S.A.

www.workboat.com • FEBRUARY 2015 • WorkBoat

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REPOWERING SAVES FUEL. INCREASES PROFITS.

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Jerry Fraser jfraser@divcom.com

EDITOR IN CHIEF

David Krapf dkrapf@divcom.com

TECHNICAL EDITOR Bruce Buls bbuls@divcom.com

SENIOR EDITOR Ken Hocke khocke@divcom.com

ONLINE EDITOR Leslie Taylor ltaylor@divcom.com

CONTRIBUTING WRITERS Capt. Alan Bernstein • Michael Crowley • Dale K. DuPont • Pamela Glass • Max Hardberger • Kevin Horn • Joel Milton • Bill Pike • Kathy Bergren Smith

PRODUCTION DIRECTOR

ART DIRECTOR PRODUCTION ASSOCIATE

Doug Stewart

PRODUCTION ASSISTANT

Sokvonny Chhouk

PUBLISHING OFFICES

Jenn Bailey Dylan Andrews

Main Office: 121 Free St., P.O. Box 7438 • Portland, ME 04112-7438 • (207) 842-5608 • Fax: (207) 842-5609

Southern/Editorial Office: P.O. Box 1348 • Mandeville, LA 70470 • Fax: (985) 624-4801

Subscription Information: (978) 671-0444 • cs@e-circ.net General Information: (207) 842-5610

ADVERTISING

ADVERTISING COORDINATOR Wendy Jalbert 121 Free St., P.O. Box 7438 • Portland, ME 04112-7438 (207) 842-5616 • Fax: (207) 842-5611 wjalbert@divcom.com

EASTERN U.S. AND CANADA

EUROPEAN SALES Kristin Luke (207) 842-5635 • Fax: (207) 842-5611 kluke@divcom.com

WESTERN U.S. AND CANADA

PACIFIC RIM SALES Susan Chesney (206) 463-4819 • Fax: (206) 463-3342 schesney@divcom.com

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ATLANTIC / CENTRAL STATES Adam Shaw

ashaw@divcom.com (207) 842-5496 • Fax: (207) 842-5611 EXPOSITIONS (207) 842-5508 • Fax: (207) 842-5509 Producers of The International WorkBoat Show and Pacific Marine Expo www.workboatshow.com

EXPOSITION SALES DIRECTOR Chris Dimmerling (207) 842-5666 • Fax: (207) 842-5509 cdimmerling@divcom.com

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www.workboat.com • FEBRUARY 2015 • WorkBoat

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Pacific Marine Expo • Tug Market Report • Gulf Fuel Vessel ®

Question on airborne noise and vibration

I

’m trying to get my arms around the sidebar “Isolating noise and vibration” that appeared in the January issue along with the main story on gensets. (“Load Masters,” page 48.)

My first point is that Christie & Grey mounts would be the only proper ones for the marine environment. This sort of statement seems a bit of a stretch, though I don’t know all the exigencies of the marine environment. The second point would be the term “airborne” noise. What other way would noise be transmitted than through the air?

John Fischer Palatine, Ill.

Editor’s Note: Michael Crowley, who wrote the article, responds: Referring to “the only proper ones for the marine environment,” the sidebar doesn’t say that. Matt Coombs with Christie &

Grey said, “It’s a spring and rubber isolator. We are the only ones in the world to have perfected it in the marine market.” That’s a technology and product claim from the company. Airborne noise comes from a source and goes out in a straight line until it’s stopped by something, such as a bulkhead. Structural noise moves through a structure, then becomes airborne and you can hear it.

IN BUSINESS ON THE COASTAL AND INLAND WATERS

NOVEMBER 2014

Beleaguered

Washington State Ferries has been plagued with problems.

Foss tug tow of ferry was clever

I

liked the way the Foss tug secured its towline to the Washington state ferry Tacoma in the November 2014 WorkBoat cover photo. It was quite ingenious.

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On the Water Using the correct knot

W

By Joel Milton

Joel Milton works on towing vessels.

He can be reached at joelmilton@ yahoo.com.

hat knot to use? That’s often a very good question.

Maybe you need to tightly lash down supplies and stores prior to heading out to sea on a coastwise run, or hoist a drum of lube oil from the back deck up to the barge you tow. Perhaps your to-do list includes making up some new heaving lines with neatly finished bitter ends. Who hasn’t used or heard the old saying, “If you can’t tie a knot, tie a lot”? The truth is that it’s gotten people through many situations on a regular basis, although in an ugly and very un-seamanlike manner. Often, when it’s all over, a knife must be used to cut the handiwork apart and the line is wasted. This way of doing things is for hacks. Real seafarers need mad skills.

The practice of the practical art of marlinspike seamanship requires many things, including a solid and broad knowledge of many knots and splices, their strengths and weaknesses, and their

Captain’s Table My top five from the 2014

International WorkBoat Show

E

By Capt. Alan Bernstein

Alan Bernstein, owner of BB Riverboats in Cincinnati, is a licensed master and a former president of the Passenger Vessel Association. He can be reached at 859-292-2449 or abernstein@ bbriverboats.com.

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ach year at the International WorkBoat Show in New Orleans, I am overwhelmed by what I see and learn while there. Here are my top five favorites from the 2014 show: • The people. Everyone in the commercial marine industry attends the WorkBoat Show. It is amazing how many friends and colleagues I run into while walking the show floor. This year I finally realized why it takes me three days to get through the entire show. It’s because I constantly stop to talk to people. Many are vendors of products or services that my company, BB Riverboats, uses. Others are just good friends I have made over my a long career in the maritime industry.

• The incredible variety of exhibitors showcases everything that the maritime industry needs to operate efficiently and safely. I cannot think of one item you would not be able to see on the floor of the show. I viewed a variety of lifesaving equip-

most appropriate uses. On the most modern vessels, they’re used infrequently, but can nonetheless still be vital when they are truly needed. Stuff happens. So assuming you weren’t mentored by Sinbad and have stayed in practice, you need something to refer to and brush up with before the knife comes out. You need a book.

There are many choices, and keeping at least one book on your vessel as a reference for the whole crew is important. It’s unrealistic to expect the crew to acquire and maintain the skills to perform well when needed without such a reference book, especially when seldom-used but critical knots are required.

My new favorite book is “What Knot?” by Geoffrey Budworth and Richard Hopkins. As the title suggests, it's primarily about knots, although whippings and seizings are also covered, as well as basic 3-strand splicing. It’s lavishly illustrated with sharp, clear color photos, and it covers everything you are ever likely to need outside of splicing eyes in 8- or 12-strand line. One of these books should be on every galley table.

ment and products that I have been thinking about purchasing. I even saw a remote underwater robot that attendees could try out.

• The seminars and keynote addresses are always great. This year I learned about how international maritime standards might be impacting our domestic industry, received an update on Subchapter M, and listened to Captain Phillips tell his tale of being captured by pirates and his exciting rescue.

• I was pleased to see the show return to its traditional early December time slot. I like early December in New Orleans. It fits very nicely into my business operations schedule.

• I get a real feel for what is going on across the entire maritime industry. I also gain a greater understanding of the challenges and opportunities that exist industrywide. I enjoy talking to the boatbuilders, naval architects, engine manufacturers and others who are at the pulse of what is going on. This year, I sensed a strong enthusiasm and optimism for the future of the U.S. maritime industry.

The 2014 show was one of the best in recent memory. I hope to see you there next year. www.workboat.com • FEBRUARY 2015 • WorkBoat

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DECEMBER 2014 DAY RATES, FLEET UTILIZATION VESSEL TYPE

OSV Day Rates Where’s oil’s bottom?

By Bill Pike

I

n early January, oil prices dipped below $50 bbl., with some predicting a drop below $40. The problem continues to be that no one wants to blink.

As I wrote last month, everyone looks to OPEC, and specifically Saudi Arabia, expecting action to address the oil glut. But why should they? They have a strong historic precedent against cutting oil supply. The crises of the 1970s began when Saudi restricted production and exports, a move that backfired badly. The Saudi’s lost market share worldwide. To cut production now to raise prices would put Saudi and OPEC market share at substantial risk again. Therefore, unless the crisis worsens considerably, it is unlikely that OPEC will take unilateral action

AVERAGE DAY RATES NOV. '14

DEC. '14

UTILIZATION

DEC. '13 DEC. '14

DEC. '13

SUPPLY (DWT) to restrict 1,999 & below $15,283 $14,851 $11,736 89% 96% output any 2,000-2,999 $25,232 $23,153 $17,733 90% 100% time soon.

3,000-3,999 $31,500 $30,924 $30,654 96% 100% As a result, 4,000-4,999 $31,250 $31,250 $31,250 100% 100% U.S. shale 5,000 & above $39,756 $39,644 $40,317 100% 100% development CREWBOATS is faltering. A Under 170' $ 4,538 $ 4,827 $ 5,248 76% 85% recent Gen170' & over $ 8,523 $ 8,968 $ 7,195 79% 100% scape (a data SOURCE: WorkBoat survey of 32 offshore service vessel companies. and market analysis firm) projection forecasts that the U.S. oil rig When earnings are impacted, almost count will fall below 1,100 for the first nothing is sacred, including contracts. time in three years, landing at 1,073 While drilling and development obliin August. Overall, the rig count will gations will mostly be met offshore, drop by nearly 600 rigs in the next six service contracts will surely be revised. months, the company said. That figure As a service company, how can you may be conservative. say no to your customer base on which Most pundits say that the offshore your continued existence depends? The market, in particular the deepwater answer is, you can’t. market, is not in as much danger. They The current scenario has resulted in point to longer contracts and higha decrease in offshore service vessel dollar commitments. There is some day rates. The longer the oil price crisis logic in this, in the short term. Long lasts the worse the OSV day rate and term, however, things could head south. utilization decline will be.

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STOCK CHART

WorkBoat Composite Index Index loses 4.7% in 2014

T

he WorkBoat Composite Index ended the year on a down note, losing about 1.6%. For the month, losers topped winners 19-11. The Index gained 27% in 2013 and 12% in 2012.

But the 28-point drop in December contributed to 2014’s overall loss of 85 points, or 4.7%.

Taking an even bigger hit was the Philadelphia Oil Service Index. It was dragged down by plummeting oil prices and lost 25% in 2014. In 2013,

it gained 27% when it rode strong demand in the U.S. Gulf.

Despite this, operators were able to eke out a small gain in December.

Kirby, however, lost 16% in December. In its third-quarter earnings call in November when oil prices were still in the $70-$80-bbl. range, Kirby President and CEO David Grzebinski commented on the volatility in the oil markets.

“Due to the contractual nature of our marine businesses, brief fluctuations

INDEX NET PERCENT COMPARISONS 11/28/14 12/31/14 CHANGE CHANGE Operators 399.62 401.14 1.52 0.38 Suppliers 2814.37 2738.16 -76.21 -2.71 Shipyards 1634.06 1660.55 26.49 1.62 Workboat Composite 1741.99 1714.28 -27.71 -1.59 Oil Service Index 215.72 210.87 -4.85 -2.25 Dow Jones Industrials 17828.24 17823.07 -5.17 -0.03 Standard & Poors 500 2067.56 2058.90 -8.66 -0.42

For the complete up-to-date WorkBoat Stock Index, go to: www.workboat.com/ workboat-index.aspx

in pricing or in the oil price spreads ... they tend to have very little impact on us, either from a volume standpoint or a revenue standpoint,” Grzebinski said.

“Assuming oil prices remain at current levels, we don’t expect to see a significant decline in U.S. production, or for that matter the volume of that production that makes its way to water. If WTI were to remain below $70 to $80 a barrel for a sustained period, growth in the waterborne transport of crude oil could be muted.

“However, we believe lower domestic feedstock costs are likely to provide further economic incentives to proceed with announced plans to expand U.S. petrochemical capacity, which we see as a long-term positive for our marine business. And as a reminder, we still expect significant petrochemical capacity to come online between 2016 and 2018, which should be a positive for our marine business.” — David Krapf

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Whether you’re powering an offshore craft, a sea-worthy container vessel or an on-board generator set, you won’t find a better source for reliable marine engine power than Caterpillar. In addition to a wide selection of marine engines that range from 205 to more than 6,500 bhp, Louisiana Cat offers: • Factory trained technicians • Fully equipped facilities • Factory authorized warranty repairs • Performance analysis reports • Preventive maintenance programs • Electronic diagnostics • 24-hour emergency parts and service Call our toll free number below to learn more about our Caterpillar products and services.

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1/6/15 3:35 PM 7/17/2014 12:54:09 PM

Inland Insider More energy fallout from lower oil prices

A

s of Jan. 5, I was paying $1.89 a gallon for gasoline compared to about $3.30 a gallon six months ago.

This price reduction represents what might be the biggest and perhaps only “pay raise” (increase in disposable

income) some of us have seen since the recent recession.

However, this is but symbolic of an energy game changer for all of us.

A large part of the long-term sustained economic growth pattern in the good old days of the ‘90s and early 2000s was technology driven. Some of the frustration that has dogged the mostly weak U.S. economic recovery until recently have been the absence of major technological changes that would

boost productivity.

The good news is that the weak U.S. economic recovery appears to be ending, not because of traditional technological breakthroughs (or for that matter governBy Kevin Horn ment policies and programs) but because of an unanticipated real decline in the price of oil. This is having a domino effect on other energy prices related to oil.

For example, we have seen energy prices for natural gas liquids, key inputs to basic manufacturing such as plastics, heating homes, etc., decline 25% to 40% between Sept. 1 and Dec. 1. Consequently, basic energy inputs are considerably cheaper for manufacturers and consumers, analogous to the decline in retail gasoline prices.

For the U.S., the new regime of lower energy prices will cut across all sectors of society from the costs of manufacturing to consumer disposable income and spending. The prospects for sustained economic growth that were not envisioned more than six months ago are mind-boggling. This bodes well for the inland waterways.

Back when the U.S. economic doldrums persisted long after the recovery had been declared, the prescription for real economic growth from some energy dependent sectors was expressed as “drill baby drill.” That has happened in the private sector and the results speak for themselves.

The barge industry that promoted the nine-cent-a-gallon increase in the inland waterways fuel user fee that was recently signed into law did not give anything away. With fuel prices declining, there will be plenty of new wealth to be created.

Kevin Horn is a senior manager with GEC Inc., Delaplane, Va. He can be contacted at khorn@gecinc.com.

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www.workboat.com • FEBRUARY 2015 • WorkBoat

1/8/15 5:29 PM

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Insurance Watch

A vessel claim discussed

T

his column about a recent claim shows how an insurance agent can be your advocate.

Your agent can’t legally represent you but can serve as your claims advocate and explain coverage correctly to the insurance company’s claims representative. In this case it was important to help the claims person understand what the claim surveyor saw.

Here are the facts. A large horsepower passenger transport/cargo vessel had engine problems that required teardown of the engine and replacement of the intercooler and camshaft. The camshaft lobes were excessively worn shortly after engine replacement. The diesel engine had far more horsepower than

the engine being replaced. There were basically no other modifications done to the engine space. The new engine specifications called for a dramatic increase in venting to allow for more fresh cool air into the engine. This change was not made at the time of installation.

The owner was initially concerned that vessel performance was not up to his expectations. He sent regular oil samples in for analysis. He also went back repeatedly to his diesel mechanic looking for answers.

Finally all hell broke loose and the engine needed major work. At that point we were notified. We turned a claim in for “negligence of repairer” or “latent defect.” Both of these are perils insured against in what’s commonly called the Inchmaree clause of a commercial ocean marine hull policy.

The cause of the problems was the lack of fresh air getting to the engine. It was a classic case (and not uncommon)

of “negligence of repairer.” In his report, the claim surveyor noted that the proximate cause of the failure was just that.

By Gene The insurance McKeever company’s claims representative denied the claim, saying the installer had no duty to install it per the specs but to merely install the new engine.

As claim advocates, we explained that it’s not like changing a watch battery. The specs must be followed. We explained what the surveyor noted and why that pointed directly to coverage.

After being denied twice, we finally got through and the claim was paid in full.

Gene McKeever is a marine insurance agent with Allen Insurance and Financial. He can be reached at 800-4394311 or gmckeever@allenif.com

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Legal Talk Bounty claim under the Neutrality Act

I

’m fond of the maritime law of salvage with its “bounty” awarded to those snatching vessel and cargo from the cruel sea’s grasp.

It’s the only area of maritime law I know of where a bounty is awarded to

the winning party as opposed to, say, time and materials or a damages award.

But in a recent decision involving guns and boats and terrorism, the claimant was seeking a bounty in a situation that had nothing to do with salvage.

In July 2011, a doctor filed a claim in federal District Court asserting he’d informed the U.S. of vessels that had been “funded, furnished and fitted” by anti-Israel organizations in the U.S. These vessels, he claimed, were to be

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used by terrorist organizations targeting Israel. The doctor reasoned that because he’d informed the U.S. of these vessels John Fulweiler he was entitled to a bounty under something called the “Neutrality Act.” Critically important to the ultimate outcome, the doctor named the specific vessels and sought their forfeiture.

The Neutrality Act dates back to 1794. It prevents you from supplying a vessel to someone who intends to use it against another state with whom we’re friendly. When a vessel violates the Act, it’s forfeited with half going to the informer and the other half to the U.S. The District Court dismissed the complaint and didn’t believe the Act allowed the doctor to bring his own claim. But the doctor argued that because the Act contains a bounty provision and doesn’t forbid an individual from bringing a claim, the Court should imply the right for an individual to pursue a lawsuit seeking forfeiture and a bounty. The doctor's argument didn’t work at the District Court level or the Appellate Court.

The Appellate Court reasoned that the doctor didn’t have a right to pursue his own claim because an informer under the Neutrality Act only has a blurry and conditional interest in a bounty, which hinges on whether the U.S. pursues a forfeiture action. (Well, that’s not how the Act seems to read as it states such offending vessels “shall be forfeited.”) It seemed the courts were bothered by the doctor pursuing a forfeiture and resulting bounty against specific vessels.

If the U.S. had pursued the forfeiture against these vessels and the doctor was suing the U.S. for his share of the forfeiture, I’m certain the outcome would’ve been different.

John K. Fulweiler of Fulweiler LLC is a licensed mariner and maritime attorney.

He can be reached at john@fulweiler.com or 1-800-383-MAYDAY.

www.workboat.com • FEBRUARY 2015 • WorkBoat

1/8/15 5:29 PM

Mack Boring & Parts Co. Phone: (908) 964-0700 East Coast

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1/6/15 3:35 PM

FEBRUARY 2015

COMPILED AND EDITED BY KEN HOCKE, SENIOR EDITOR

NEWS LOG

NEWS BITTS

PUGET SOUND FERRY TO BE SCRAPPED

CORPS PROJECT TO AFFECT MISSISSIPPI BARGE TRAFFIC

Bruce Buls

T

T

he Kalakala, Puget Sound’s most famous ferry, was scheduled to be towed from its moorage in Tacoma, Wash., to a nearby graving dock and cut into scrap by the end of January.

The current owner, Karl Anderson, said he’s spent $500,000 keeping the old boat afloat and that the time had come to put her out of her misery, which will take another $500,000. The 276' art deco ferry shuttled vehicles and people between Seattle and Bremerton from 1935 to 1967. Numerous attempts to preserve the iconic vessel, which was towed back to Seattle from Kodiak, Alaska, where she housed a fish processing operation in the 1970s, have come up short. Anderson told the Tacoma News Tribune that he has contacted Kia Motors Corp. with an offer to use the scrap metal for a special model of car, including the name Kalakala (ka-LOCK-a-la).

Appeals court reverses Bollinger USCG cutter suit dismissal

A

federal appeals court has reversed the dismissal of a U.S. Justice Department lawsuit alleging Bollinger Shipyards lied about the hull strength of eight U.S. Coast Guard cutters the boatbuilder had lengthened.

The U.S. maintained the Lockport, La., yard submitted false data about the 110' Island-class patrol boats (WPBs) that were stretched to 123' in a project costing $80 million. The modified vessels, which Bollinger built originally, were ultimately deemed unseaworthy and taken out of service.

The government’s allegations were sufficient enough “to allow a fact finder to infer that [Bollinger] either knew 20

WB_Newslog_LINO.indd 20

that their statements were false or had a reckless disregard of their truth or falsity,” judges at the U.S. Court of Appeals for the Fifth Circuit, New Orleans, said in an opinion issued in late December.

In October 2013, U.S. District Judge Sarah Vance dismissed the suit, saying the government presented no facts that Bollinger deliberately lied. In its appeal, the U.S. argued that it clearly described the alleged fraud and offered ample data to support its allegations.

Bollinger wanted the false data results “high enough to avoid further Coast Guard scrutiny and ABS [American Bureau of Shipping] review of the

raffic flow will be disrupted over the next few months from mile 637 to mile 630 near Memphis, Tenn., as the Army Corps of Engineers widens a navigation channel at a narrow bend in the Mississippi River. The river will be closed daily from 6 a.m. until 6 p.m. Commercial barge tows will be allowed to pass each night and work will not start the next day until the queue is cleared, the Corps said. Officials expected to be able to pass some traffic during the day as the work progresses. The 90-day project began Jan. 5 and includes construction of six bendway weirs extending from the west bank out into the river.

“The channel width depends entirely on the current river stage,” spokesman Jim Pogue said. “Weir projects like this in other locations have widened the channel as much as 200 feet. We are hoping for a similar result here.” The contractor’s contact pilot on the M/V Sheryl will be monitoring marine channels 13, 16, and 72 or can be reached at 573-8037166. — D.K. DuPont

vessel’s structural integrity,” the U.S. said.

The appeals court said the lower court “erred by viewing the facts in the light most favorable to Bollinger and drawing inferences against the United States.”

Citing the original complaint, the judges said the yard submitted the highest of three calculations to the Coast Guard, while using the middle calculations in its internal documents.

“Finally, even after the Coast Guard expressed concern over the section modulus of 5,232 and Bollinger represented that it would have ABS review the calculation, Bollinger did not have ABS do so.”

www.workboat.com • FEBRUARY 2015 • WorkBoat

1/8/15 10:58 PM

Trio helped bring attention to World War II vessel restoration.

D

elta T. Systems president Lynn Oien posed outside of his company’s booth at the International WorkBoat Show in New Orleans in December. He was joined by Gwen, Dody and Meggie, the Victory Belles, to bring attention to the efforts of a group of volunteers to restore a Higgins Industries wooden torpedo boat, the PT-305. The boat originally left the Higgins dock in 1943. When the restoration is completed, the boat will become an interactive exhibit at the National WWII Museum in New Orleans.

www.workboat.com • FEBRUARY 2015 • WorkBoat

WB_Newslog_LINO.indd 21

Ken Hocke

Federal rules do not “require the United States to present its best case or even a particularly good case, only to state a plausible case,” the appeals court said in sending the case back to the lower court.

The court also said that because the Coast Guard continued paying Bollinger for the work after the first cutter’s failure was not a valid reason to dismiss the case at the time. That defense is “more proper at the summary judgment or trial stage.”

The U.S. filed suit in July 2011 under the False Claims Act, seeking $38.6 million in non-contract damages, which could be tripled to total nearly $120 million.

“Since it’s an open case, we’re not providing any comment at this time,” said a spokesman for Bollinger, which was recently acquired by Galliano, La.-based Edison Chouest Offshore.

Bollinger continues to build vessels for the Coast Guard.

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1/8/15 10:49 PM

NEWS BITTS When the suit was first filed, the yard said it had been “open and cooperative with the government” and tried to find a way to resolve the dispute outside of court, “but we are fully prepared to defend our good name aggressively in a court of law.” — Dale K. DuPont

Upper Mississippi lock closing may have consequences

C

losing the northernmost lock on the Mississippi River will mean fewer jobs and more costly truck traffic and likely have little impact on Asian carp travel plans.

Those and other conclusions about

everything from aesthetics to safety are contained in a just published U.S. Army Corps of Engineers, St. Paul (Minn.) District, draft environmental impact assessment of plans for the Upper St. Anthony Falls Lock.

The lock and dam at Mile Marker 853.9 in the Twin Cities is scheduled to close by June 10, 2015, thanks to a provision in the Water Resources Reform and Development Act (WRRDA) of 2014. Supporters of the move said it was to protect the waterway from voracious Asian carp. Others said it was a way to get rid of river-dependent businesses and redevelop the area.

The closure will mean a loss of an estimated 84 jobs. For the entire state economy, the number is not significant,

EDISON CHOUEST ACQUIRES BOLLINGER SHIPYARDS

G

alliano, La.-based Edison Chouest Offshore has acquired Bollinger Shipyards. In a prepared statement, Bollinger said that Ben Bordelon, who is now chairman, president and chief executive officer of the company, and ECO acquired all assets and stock of Bollinger. It is unknown what the new ownership percentage breakdown is.

Details of the purchase were not disclosed and Bollinger would not comment further. Calls to ECO were not returned. ECO, founded in 1960, operates a fleet of over 200 vessels, including PSVs, MPSVs, AHTSes, OSRVs, FSVs, and tractor tugs. It is the largest OSV operator in the U.S. Gulf, with approximately 36% of the market, according to IHS Petrodata. ECO also owns and operates four shipyards in the U.S. Gulf of Mexico, one in Brazil, and C-Port in Port Fourchon, La. C-Port is comprised of two terminals and 18 slips that are configured to transfer cargo and provide support services to OSVs. — David Krapf

the Corps report said, although “to those individuals affected, however, the loss of a job certainly would be substantial.”

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WB_Newslog_LINO.indd 22

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Shifting cargo from barge to truck will cost an additional $21.5 million through 2040, the Corps said, citing a Metropolitan Council study. Among the factors involved are “vehicle operating costs, additional highway travel time, the logistics costs of commodity delivery times, and safety and environmental costs of moving the various types of commodities through the state by truck.”

Barge traffic through the lock averaged 755,834 tons annually from 2010 to 2014. Major commodities moved through the lock include sand and gravel, coal, scrap metal and fertilizer.

Closing the lock is expected to add more than 21,000 truck trips a year to the highway system primarily during the workweek, the report said. “Sixty trucks are required to haul the same amount of bulk freight as a fully loaded barge (1,500 tons).”

The impact on Asian carp is less conclusive. Control of the invasive spe-

cies spreading up the inland waterways has sparked heated debate. “The closest location where actual reproduction of Asian carp has been documented is about 400 river miles downstream of [the Upper St. Anthony lock],” the report said. Carp expansion on the Upper Mississippi “has been relatively slow over the last 20 years,” and the chance for appreciable numbers below the lock that might lock through above it “appears to be low.” — D.K. DuPont

Bill authorizing USCG signed into law

O

ne of the final acts of the 2014 congressional session was passage of the Coast Guard authorization bill.

The bill funds Coast Guard activities for fiscal years 2015 and 2016.

The U.S. House of Representatives overwhelmingly approved the bipartisan legislation that authorizes the U.S.

'The closest location where actual reproduction of Asian carp has been documented is about 400 miles downstream of the Upper St. Anthony lock.'

Coast Guard and its missions, and the U.S. Senate did the same on Dec. 10. It was signed into law by the president on Dec. 18.

“The Howard Coble Coast Guard and Maritime Transportation Act gives our Coast Guard the necessary tools and support it needs to carry out its vital mission to protect Americans at sea and guard against illegal trafficking,” a group of bipartisan members of Congress said in a statement following congressional approval.

The new law does the following: • Authorizes the Coast Guard for fiscal year 2015;

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www.workboat.com • FEBRUARY 2015 • WorkBoat

1/8/15 10:59 PM

NEWS BITTS HARSH WINTER COST $700 MILLION IN 2014, GROUP SAYS

T

he 2014 winter storms that brought shipping on the Great Lakes to a virtual standstill cost the economy more than $700 million and nearly 4,000 jobs, according to the Lake Carriers’ Association (LCA). The group has called for the construction of a second heavy icebreaker to partner with the Coast Guard’s Mackinaw to keep the shipping lanes open in the harshest of conditions. U.S.-flag cargo movement between Dec. 1, 2013, and May 30, 2014, fell nearly 7 million tons compared the same period in 2012/2013, LCA said. At least two steelmakers had to curtail production and some power plants were extremely low on coal.

The limestone trade did not resume in earnest until well into April, and U.S.flag lakers suffered nearly $6 million in damage trying to resupply customers.

manner; • Provides new authorities the Coast Guard needs to prepare for its operations and for the safety of maritime transportation in the Arctic; • Encourages the Coast Guard to work with the private sector; • Enhances Congressional oversight; • Improves Coast Guard acquisition activities; • Works to reduce the Coast Guard’s excess property inventory;

• Requires development of a National Maritime Strategy; • Creates opportunities for veterans; • Reduces regulatory burdens to create jobs and encourage economic growth; and • Reforms the Federal Maritime Commission.

The measure passed the House by a 413-3 vote and passed the Senate by unanimous consent. — Ken Hocke

Y TL EN RED C RE LIVE DE

DIESEL FUEL PRICES CONTINUE TO FALL

D

iesel fuel prices fell 8 cents per gal. to $3.14 during the week ending Jan. 5 and fuel prices fell 47 cents per gal. over five weeks through Jan. 5, according to the USDA Grain Transportation Report. The Energy Information Administration reports that crude oil prices fell sharply in the fourth quarter of 2014 as robust global production exceeded demand. “After reaching monthly peaks of $112 per bbl. and $105 bbl. in June, crude oil benchmarks Brent and West Texas Intermediate (WTI) fell to $62 bbl. and $59 bbl. in December, respectively.

Brent prices fell below the five-year average in early September and WTI prices have been below the five-year average since early October. Domestic crude oil production increased 1.2 million bpd in 2014, up 16% from 2013.

At 8.6 million bpd, U.S. production is at the highest level in nearly 30 years,” the EIA said.

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1/8/15 10:59 PM

CONSTRUCTION ACTIVITY AT WORKBOAT YARDS

On TheWays

ON THE WAYS

Master Boat Builders

Master Boat delivers two new OSVs

New 201' OSV was built to carry additional methanol.

Compiled and edited by Bruce Buls, Technical Editor

26

WB_OTW_LINO.indd 26

I

n November, Master Boat Builders, Bayou La Batre, Ala., delivered the 201'×48'×16', DP-2 offshore service vessel Harvey Gladiator to Harvey Gulf International Marine, New Orleans.

Designed by the shipyard, the vessel was modified while under construction to carry 3,300 bbls. of methanol in four tanks, according to Andre Dubroc, Master Boat’s general manager.

Other capacities include 103,000 gals. fuel; 1,522 bbls. liquid mud; and 2,700 bbls. bulk mud in two tanks. The rear cargo deck measures 146'×40' and can carry up to 800 LT of deck freight.

Main propulsion comes from a pair of Caterpillar 3512C diesels, producing 1,911 hp at 1,600 rpm each. The Cats connect to Rolls-Royce Hung Chin 82"×70", 5-bladed propellers through Twin Disc MGX-5600 red slip clutch marine gears with 5.04:1 reduction ratios. The propulsion package gave the new OSV a sea-trial speed of 12 knots and an 11-knot speed loaded.

The boat was also fitted with three frequencydrive Omega 1160 450-hp channel thrusters.

Ship’s service power comes from twin Cat C32 parallel operation gensets, sparking 910 kW of electrical power each.

The EC-300DP controls are from Twin Disc, the Jastram split-rudder steering system was supplied by Gulf Coast Air & Hydraulics, the DP-2 system was manufactured by Kongsberg, the 114 cu. m/hr at 99.9% N2 nitrogen system is from Prism, and the electronics suite was supplied by New World Electronics.

The new OSV is ABS classed Maltese Cross A-1, AMS DPS-2 Offshore Support Vessel, Loadline under 100 GT and Coast Guard-certified, Subchapters L and I. The Harvey Gladiator and a sistership were originally part of a multiboat contract for Abdon Callais Offshore. Harvey Gulf purchased ACO’s assets in October 2013 for $460 million.

Master Boat Builders also delivered the third of six 201'×48'×18' OSVs to Seacor Marine in January. The yard designed the Seacor Brave and worked with Seacor on some other design details.

Dubroc said that the 2,031-DWT DP-2 Seacor www.workboat.com • FEBRUARY 2015 • WorkBoat

1/8/15 8:48 PM

Master Boat Builders

Brave has a lot of capacity for its size.

Tankage includes 5,000 bbls. of liquid mud; 4,500 cu. ft. bulk mud in four 1,500-cu.-ft. tanks; and 139,758 gals. fuel. The new OSV also has a 144'×38', 600-LT capacity cargo deck.

Main propulsion comes from twin Caterpillar 3512C Tier 3 diesel engines, each producing 1,911 hp at 1,600 rpm.

The Cats are connected to 82"×70", 5-bladed bronze propellers through Twin Disc MGX-5600 red slip clutch Latest 2,031-DWT OSV for Seacor. marine gears with 5.04:1 reduction ratios. The propulsion package produced a running speed of 12 knots (11 knots K-Pos DPS-2 system. The electronics with a full load) during sea trials. package was provided by New World The Seacor Brave has four SchotElectronics. tel thrusters — two STT 1FP, 600-hp Two parallel-operating Caterpillar electric, frequency-drive bowthrusters C32 gensets, rated at 910 kW each, and two STT 170FP, 300-hp electric, provide the Seacor Brave’s service frequency-drive stern thrusters. power.

Ahead Sanitation Systems.qxd 1/8/2009 The vessel has a Jastram split rudThe new OSV also carries a FiFi1 der steering system supplied by Gulf firefighting system driven by twin dediCoast Air & Hydraulics, Twin Disc cated Cat C32 diesels rated at 1,000 hp EC-300DP controls, and a Kongsberg each. “This is a full FiFi1 system that

encases the boat in water,” Dubroc said.

Accommodations include 37 berths for 36 offshore workers and crew.

The Seacor Brave is USCG certified, Subchapter L; ABS Maltese Cross A-1 classed; AMS; DPS-2 Offshore Support Vessel, Loadline under 1,600 1:32 PM Page 1 tons; ITC; SOLAS; IMO; ABS Maltese Cross Fire Fighting vessel Class 1.

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1/8/15 8:38 PM

On TheWays

BOATBUILDING BITTS

R

Elliott Bay Design Group

odi Marine Service, Lafayette, La., has signed a contract with Swiftships to build two additional 175'-class DP-2 fast supply vessels (FSVs) in support of its continued expansion into the oil and gas industry. The two additional vessels is an extension of the two-boat order made by Rodi Marine in 2013. Earlier this year Morgan City, La.-based Swiftships deliv-

New ferry for SSA will be built by Conrad.

ered Rodi Marine’s first newbuild, the Riley Claire, a 180'×30'×13'6", 7,200-hp DP-2 FSV. Top speed is 33 knots light and 25 knots loaded. The Riley Claire was part of a two-boat order. The second vessel, the 180' Mason G, was scheduled for delivery in January. The four FSVs will add to Rodi's existing fleet. The two new vessels are scheduled to be ready for operation by early to mid-2016.

In December, the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority (SSA) awarded a $36.4 million contract for the construction of a new passenger/vehicle ferry, the Woods Hole, to Conrad Shipyard, Morgan City, La. Conrad was the low bidder for the contract to build the 384-passenger, 55-vehicle, 235'×64'×18'6" ferry, designed by Elliott Bay Design Group. SSA, Woods Hole, Mass., also received a bid of $41 million from Eastern Shipbuilding Group, Panama City, Fla. As of Dec. 12, Conrad has a backlog of $170 million, compared to $135 million on Sept. 30 and $153 million on Dec. 31, 2013.

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www.workboat.com • FEBRUARY 2015 • WorkBoat

1/8/15 10:21 PM

The Maid of the Mist VI, an iconic passenger boat and flagship of the Maid of the Mist Steamship Co. at Niagara Falls, N.Y., is now running with new engines, thanks to a recent repowering by Lake Erie Ship Repair and Fabrication, Jefferson, Ohio. The original pair of 350-hp Volvo Penta engines was replaced with new 400-

Maid of the Mist

The Maid of the Mist VII at the base of Niagara Falls.

www.workboat.com • FEBRUARY 2015 • WorkBoat

WB_OTW_LINO.indd 29

hp Volvo Penta diesel engines. And because the new Tier 3 engines require more efficient cooling, that system had to be upgraded, as well. The old cable controls were also replaced with a fly-by-wire system.

Marine Group Boat Works, San Diego, was recently awarded three Navy contracts to build five small steel tugboats, six large steel workboats and 16 60' aluminum dive boats, for a total of 27 new vessels with a value over $45 million. Upon completion, the workboats will be delivered to Navy Base Yokohama, Japan, as well as Navy bases in the U.S. In a fourth separate Navy contract, Marine Group will dismantle and dispose of two 224' Avenger-class ships built in the mid-1980s — USS Avenger and USS Defender.

Jensen Maritime Consultants has designed an aluminum catamaran research vessel, currently out for bid, for King County Environmental Lab located in Seattle.

The vessel will operate in Puget Sound, the Strait of Juan de Fuca and the adjoining inland waterways around Washington state.

29

1/8/15 8:58 PM

On TheWays New 258' cable ferry for British Columbia

I

n late November, BC Ferries began work on a new cable ferry at Seaspan’s Vancouver Shipyards in North Vancouver, British Columbia.

The new 258'×56' vessel has room for 50 vehicles and 150 passengers, which is the same capacity as the

36-year-old, conventionally powered Quinitsa, which it will replace on the run between Buckley Bay and Denman Island on the eastern shore of Vancouver Island.

BC Ferries says the new cable ferry will be capable of a top speed of 8.5 knots with a normal service speed of 7.5 knots and it will save about $2 million per year in fuel and labor costs,

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BC Ferries

New cable ferry for British Columbia coming in summer 2015.

and over $80 million over the life of the boat compared to the Quinitsa. The Quinitsa is operated by a crew of six, while the new ferry will only require a crew of three.

With a crossing of 1,900 meters (1.2 miles), the cable ferry operation will be the longest of its kind in the world.

It will also be the first cable ferry operated by BC Ferries, although there are 65 others in operation in Canada, including several in British Columbia.

The new cable ferry will have two guide cables, one on each side, and one drive cable in the center, all 1 5/8" in diameter. All three cables are secured, under tension, at each end of the run.

The cables lie on the seabed and rise and fall with the ferry as it crosses.

9:50 AM The drive cable, also known as the traction cable, wraps around a bull wheel in the center of the boat. The bull wheel is turned by hydraulic motors powered by one of two 400-hp diesel engines. As the wheel turns, the cable stays stationary and the boat moves.

“It’s like a horizontal elevator,” said John Waterhouse, a naval architect at Elliott Bay Design Group, Seattle, which designed the ferry’s mechanical and electrical systems. EYE Marine Consultants, Dartmouth, Nova Scotia, is the primary naval architect for the project.

Waterhouse said that cable propulsion is very efficient. “You can move a cable ferry with about half the power that you need for a regular propeller boat because you’re not taking mechanical power and converting it to propeller thrust to move the boat,” he said. “Typically, propeller efficiency is 50 to 60 percent, but 100 percent of the mechanical power of the engine is being used to move the boat along the cable.”

The lack of propellers and rudders

www.workboat.com • FEBRUARY 2015 • WorkBoat

1/8/15 8:58 PM

Images for illustrative purpose only.

THE CALM BEFORE, DURING, AND AFTER THE

STORM

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1/6/15 3:35 PM

On TheWays

— Bruce Buls

Workskiff begins work on Navy support boats

W

orkskiff of Sedro Woolley, Wash., picked up its biggest Navy contract to date for up to 64 8-meter Surface Support Craft over five years. The new contract comes on the heels of six recently delivered Small Force Protection boats for the Navy.

“We’ve now established a good track record with the Navy,” said Bryce Clark at Workskiff, “starting with oil spill response boats and progressing to the Small Force Protection boats that we delivered last year. That is what pushed us forward in this bid process and allowed us to win this larger con-

tract.”

The 26' aluminum hulls are powered by twin Evinrude 250-hp outboards and protected by a foam-and-air hybrid collars from Wing Inflatables.

Topsides can vary from T-top open consoles to cabin variations. Sprint speed is 35 knots at full load, cruise speed is 25 knots at full load.

The Navy’s intended uses include diver and swimmer support, vessel and equipment towing, and SEAL deliveries.

Shockwave is supplying the shockmitigating seating.

While RIB-like in appearance with their Wing collars, Workskiff is calling these boats “collared fast boats,” or CFBs. “Because people see RIB boats as being for military or law enforcement operations, by calling it a collared fast boat, it opens us up to not just military

Workskiff

also reduces underwater drag, making the hull movement more efficient.

BC Ferries says it expects its one and only cable ferry to go into service in the summer.

Workskiff will soon deliver the first of what could be 64 8-meter boats for the Navy.

operations but to commercial applications and recreational applications as well for customers who are looking for those benefits from a collared boat,” said Clark, who shares management of the company with his father, Jeff.

Clark said they’re confident the Navy will buy all 64 boats over the five years.

“From our conversations with the Navy, we’re very confident they’re going to exercise the full capabilities of those options.”

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1/6/15 3:36 PM

Smooth Ride Operators enjoyed a good year last year and expect 2015 to be even better.

T

he Governor’s days are numbered.

The Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority (SSA) in Massachusetts recently ordered a $36.5 million replacement for the Governor, the oldest of its nine vessels. Built in 1954, the 242'×46'1"×12'7", 250-passenger/42-vehicle, steelhulled ferry operates only in the summer because it can’t run in rough weather.

“We bought it from the federal government as surplus property,” said general manager Wayne Lamson. The Governor worked in San Diego and Seattle, then for the Coast Guard in New York Harbor before joining the Steamship Authority’s fleet in 1998.

The vessel is pushing the age limit on ferries

and its 384-passenger replacement is one of several on order or out for bids in this busy segment of the passenger market.

“Where we’re seeing activity is the ferry boat side,” and not so much with dinner boats, harbor cruises or overnight vessels, said John Waterhouse, chief concept engineer, Elliott Bay Design Group (EBDG), Seattle, which designed the SSA’s new vessel. “People are looking to invest and build for the long run.”

A number of customers have asked about a ferry’s life expectancy. For most commercial operators, it’s 20-25 years of useful life, he said. But U.S. river or harbor ferries can last 40 to 60 years.

All American Marine Inc. also is seeing

Operators are optimistic about 2015 as the economy continues to pick up steam and corporate business improves.

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Shoreline Sightseeing

By Dale K. DuPont, Correspondent

1/7/15 1:33 PM

ROSY OUTLOOK FOR 2015 But the private sector is optimistic about the year ahead as the economy continues to pick up steam and corporate business gradually improves, and lower fuel prices help operators save money and passengers spend it. A few operators, such as New York’s Circle Line Sightseeing Cruises, are expecting new boats as part of ambitious growth plans.

For 2015, both individual and corporate business “seems to be starting off good,” said Capt. Mike Simpson, coowner and operations manager, Island Queen Cruises, Miami. He’s hoping for a 10% increase on the individual side and 15% corporate.

“Companies are maybe reaching a little deeper into their pockets,” he said.

Last year was “definitely a rebounding year,” even as the World Cup diverted a lot of travelers from Miami to Brazil.

Lower fuel prices “could be a very positive thing for our industry on the individual side,” he said. “This adds $10, $20 or $30 a week to somebody’s pocket.”

Fuel cost savings will be a big plus for Capt. Dan Wilk and his wife Denise, 25-year owners of Orcas Island Eclipse Charters, Orcas, Wash., which offers whale-watching tours.

They are repowering the 56' Orcas Express, built in 1974, with two Cummins QSMII Tier 3 660-hp engines.

They’re lighter than the current Detroit Diesel engines, so the Wilks hope to

Orcas Island Eclipse Charters

pent-up demand from the municipal and government sector for passenger ferries.

“We hope that continues into the future,” said Joe Hudspeth, vice president of business development for the Bellingham, Wash., company that’s building two 105'×33', 250-passenger aluminum catamarans for the King County Ferry District in Washington state.

The private sector has been a little slower to reenter the newbuild market, he said, with more demand from eco-tourism, harbor tours and whale watching than dinner boats.

Many operators are citing the benefits from lower fuel costs.

cut annual fuel costs by 20%.

Business has been up the past two years, and the company expects 2015 will be good as well. “We have a lot of repeat people,” Denise Wilk said, and they run online specials to attract new passengers.

Hudson River Cruises, Kingston, N.Y., is luring new customers, too.

They changed their lineup to appeal to a younger crowd with ladies nights and barbecue specials replacing murder mysteries.

“This year, we had good turnouts for both,” said Capt. Jeff Whitaker, operations manager. They also lowered fares and shortened sailing times for music cruises on the 103'4"×28'6"×7'2" Rip Van Winkle.

“Business is up. We had a good year,” he said. “It’s not back to where it was 10 or 11 years ago, but we had a good summer and a very good fall.”

And in 2015, “we’re looking forward to a better year yet.”

A Florida panhandle operator also switched gears. About 18 months ago the company got out of the dinner cruise business they’d been in for 40 years to concentrate on sightseeing and fishing outings, said Pam Anderson, who with her husband, Ken, owns the 60'4"×26'8"×6'2" Capt. Anderson III and are part owners of Capt. Anderson’s Marina in Panama City Beach.

The ecotour boats take passengers to see dolphins and nearby Shell Island.

The sightseeing business has been good for the company. “I think it’s going to continue getting bigger and better,” she said. The recession didn’t hit them as badly as other areas, since

www.workboat.com • FEBRUARY 2015 • WorkBoat

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they are a drive-to destination. But the BP oil spill “slammed the wedding business for the Lady Anderson” and it never fully recovered. The dinner boat’s final cruise was in 2013 and the 300-passenger boat was sold to Beauport Princess Cruiselines, Gloucester, Mass.

New York Cruise Lines Inc., owner and operator of Circle Line Sightseeing, last year named a new CEO and ordered three 165'×34' vessels from Gladding-Hearn Shipbuilding, Duclos Corporation, Somerset, Mass.

To be delivered starting in 2016, the 600-passenger vessels were designed

by DeJong & Lebet Inc., Jacksonville, Fla. The new vessels will have three decks instead of two, better sight lines and high-quality concessions, said chief executive Danny Boockvar, who said he was hired “to continue to innovate and grow Circle Line.” Boockvar’s ambitious plan is to double the number of passengers over the next five years from one million to two million. Circle Line, which turns 70 this year, is New York’s oldest and largest provider of scheduled and chartered sightseeing and special event cruises.

Boockvar said the company is still evaluating the fate of its older boats when the new ones enter service. Circle Line has six vessels in its fleet, plus The BEAST speedboat. Its sister company, World Yacht Dining Cruises, has two vessels.

“The dinner business is an area of focus,” he said. “We’ve been innovating.” Last year, the company launched the North River Lobster Company, 35

1/7/15 1:33 PM

Passenger Vessel Association

Q&A WITH ERIC CHRISTENSEN OF PVA Capt. Eric Christensen was named director of regulatory affairs and risk management for the Passenger Vessel Association (PVA) last spring after a 27-year Coast Guard career focused on marine safety programs. He discussed his new job with WorkBoat.

WorkBoat: How has your perspective on the industry changed?

Christensen: I think I had a pretty good handle on the industry having worked in marine safety programs. It was an easy transition to make to PVA from the Coast Guard.

People keep asking me what it’s like working for the other side. Safety has only one side. You’re either for it or against it. And both PVA and the Coast Guard are for it. I just consider myself playing for another team.”

WB: What’s your view of the regulatory environment in which passenEric Christensen ger vessels operate?

which Boockvar described as “one of the world’s first floating lobster shacks.” The vessel is getting a 20'×30' stern extension that will increase its length to 120'. The job should be completed in April at Mayship Repair Corp., Staten Island.

In Chicago, Shoreline Sightseeing is keeping its prices level. “I think we’ve reached a sweet spot,” said Matt Collopy, vice president and part owner of the 75-year-old company that runs 10 touring vessels and eight water taxis.

Shoreline’s sales grew in 2014, and they repowered and rewired several vessels. The company sees the potential to build a couple of more vessels in the next few years, he said. “The industry remains pretty strong, and we’re fortu-

BALLAST

Christensen: This is a highly regulated environment, and it has been a highly regulated environment since 1958 when small passenger vessel regulations were first promulgated. More and more the Coast Guard is getting things to do that aren’t their own doing like TWIC and the [Environmental Protection Agency’s] Small Vessel General Permit. Yet the Coast Guard is the one responsible for doing spot checks. Many passenger vessels operators are small businesses, so when it comes to regulations, where’s the balance between safety and cost/benefit? One of the things PVA is trying to do is have any regulatory body look at what the cumulative impacts are. Let’s add this up and see if there’s any time to sleep. Sometimes the Coast Guard has no choice when Congress says you must write a regulation. The balance is identifying where there is a need and at the same time what is that cost to small business and is it worth it. I’m hoping to be able to help them comply in a reasonable way. It’s not just cost.

It’s do you have the time to comply and still run your business?

— D.K. DuPont

nate we’re in a vibrant big urban area.”

But he said it’s become more and more difficult to run the business.

“Regulations are more stringent and difficult, compliance costs continue to go up.”

REGULATIONS One regulation hanging over operators is the Nontank Vessel Response Plan, which requires vessels 400 GT or more to have written plans for preventing and responding to oil spills.

“This is a major undertaking for our guys to get approved,” said Ed Welch, legislative director, Passenger Vessel Association, Alexandria, Va., noting that the passenger vessel industry doesn’t have a history of oil spills.

VESSEL DRAFT

FUELS

Vessels 79' or less just got a threeyear reprieve from complying with the Environmental Protection Agency’s (EPA) incidental wastewater discharge permit requirements. The EPA’s Small Vessel General Permit (sVGP) was scheduled to go into effect Dec. 19, but the exemption was included in the Coast Guard appropriations bill and signed into law Dec. 18.

A persistent challenge is a provision in the Americans with Disabilities Act (ADA) that deals with trained service animals. The law is very clear. However, it gets murky with people who say they have service animals, but the animals don’t meet the definition in federal regulations.

The law says that with one exception

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1/6/15 3:36 PM

New ferry for Massachusetts was designed

by Elliott Bay Design Group.

vandalism-resistant finishes, fabrics that don’t fade in sunlight and easy to clean materials.

EBDG designed SSA’s 384-passenger, 55-vehicle, 235'×64'×18'6", $36.5 million ferry, The Woods Hole, being built by Conrad Shipyard, Morgan City, La. Due out by May 2016, it will make 16 rather than 11-12 knots on yearround runs serving Martha’s Vineyard and Nantucket.

Photo, Billy Black

NEWBUILD FERRY PROJECTS Back-up systems and higher speeds are among the features ferry operators are looking for in newbuilds.

“Some customers are looking at diesel-electric configurations, so if they’re down a generator, they can still remain in operation,” said Waterhouse of EDBG. “Most ferry operators don’t necessarily have spare boats lying around.”

On the cosmetic side, operators want

Elliott Bay Design Group

only a dog can be considered to be a service animal, “and the dog must be trained to perform some kind of task for a disabled person,” Welch said. The tasks include helping someone to walk or retrieve items or recognize seizure symptoms. The exception is a trained miniature horse.

Emotional support animals don’t qualify, even though some people think they do. “It is a constant problem,” he said.

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Another Cape Cod operator, HyLine Cruises, Hyannis, Mass., is having a 157', 493-passenger, three-deck high-speed ferry built at GladdingHearn. The vessel, which will have a speed in the mid-30-knot range, is due for delivery in early 2016.

“High speed is the way people want to go now,” said Murray Scudder, vice president and principal of Hy-Line. As for business in general, 2014 ridership through October was up 5.6% over 2013, and, he said, we’re “looking for continued strong ridership in 2015.”

Other new ferry projects include: • The San Francisco Bay Area Water Emergency Transportation Authority (WETA) was expected to award a contract in February for two 135'×38'×6', 400-passenger, 50-bicycle, 27-knot aluminum catamaran ferries.

Delivery is expected in two years. They will replace the Encinal and Express II in WETA’s 12-vessel fleet, a spokesman said.

• The Massachusetts Bay Transportation Authority (MBTA) issued a request for bids in June for two 88'6"×29'6"×4'11", 150-passenger, 30-knot aluminum catamaran ferries for the Boston area. MBTA expects to award the contract early this year, a spokesman said. The new vessels will be additions to the fleet. MBTA owns two vessels and leases one.

• EBDG picked up more ferry work last summer when the New York City Department of Transportation chose the company to design a new class of ferries to operate between the boroughs of Staten Island and Manhattan.

www.workboat.com • FEBRUARY 2015 • WorkBoat

1/7/15 1:33 PM

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RIBs

Inflatability RIBs with air-filled tubes continue to fulfill critical missions.

By Bruce Buls, Technical Editor

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T

here must have been a time when the acronym for rigid inflatable boat, RIB, made sense, back when the boats were just U-shaped tubes held together by fabric floors and cross-tube seats. Without any air, you could roll the things up and stow them in bags.

That’s an inflatable boat.

On the other hand, a 30' aluminum hull with twin diesel-powered waterjets wrapped with a hybrid foam-and-air collar is also a “RIB.” Only it isn’t.

“To be a true RIB, you have to have a fully round tube on top of it,” said Richard Bryson, director of engineering at Willard Marine, one of the leading RIB manufacturers in the U.S. “With a RIB, you tend to have a deeper deadrise hull and so that tube is there for a reason, and part of it is

cushioning extreme impacts. When you’re launching off the top of a wave, that tube will help to cushion your descent back into the water.”

True RIBs are also less beamy than hard-sided boats, “so your narrower hull is giving you the seakeeping, but the tubes are helping with stability at rest when they’re immersed,” said Bryson.

“When you’re running, they’re helping to cushion the big waves.”

“A traditional rigid inflatable boat has a flotation tube that is actually part of the flotation of the boat,” said Perry Knudson at Armstrong Marine, an aluminum boatbuilder in Port Angeles, Wash.

“I think there’s a lot of confusion in the market about what a RIB actually is anymore. Sometimes we have people ask for a RIB and essentially what they want is a boat with a fender on it, something

Willard Marine

Willard Marine’s 7-meter RIB is a standard search-andrescue boat for many Navy ships.

www.workboat.com • FEBRUARY 2015 • WorkBoat

1/8/15 11:18 AM

The value of inflated tubes for buoyancy and shock-absorption is most evident when running in heightened sea states.

for protection against another vessel or at dockside. But the fender isn’t part of the boat’s buoyancy itself.”

For that application, Knudson and others say that hybrid collars with both foam and air are becoming more popular. “It just seems that the move in the marketplace is toward boats with fenders as opposed to boats with buoyant collars.”

That said, Knudson announced that Armstrong Marine is close to finalizing a partnership agreement to produce a new line of RIBs. “It’s interesting because RIBs were a big part of what we did 10 years ago, and it kind of died off a little bit. Then people started asking about inflatable collars, Wing [Inflatables] in particular, so we were getting back into them when we were approached by this other company, so we’re excited about the timing.”

Armstrong Marine is also currently constructing a 35'×12' monohull RIB for a client in the Caribbean. The new boat will be powered by a single 350hp Yanmar with outdrive and provide seating for 26 with a crew of two. “It will be used as a tour boat and for snorkeling and dive charters.” It will have inflatable Wing collars.

MILITARY RIBS By far the largest customer for RIBs

is the military, particularly the Navy and Coast Guard. Karen Jacquelin, director of marketing at Willard Marine, said that based on what they hear from the Navy, about 90% of their 7-meter

W

illard Marine has landed contracts to develop two new SOLAS fast rescue boats. The buyer is the National Oceanic and Atmospheric Administration.

Willard is the only U.S. manufacturer of SOLAS rescue boats and currently has two Coast Guard-approved models — the 490 SOLAS OB and the 670 SOLAS — both of which are RIBs. The 4.9-meter 490 is powered by a 40-hp outboard, and the 6.7-meter 670 is powered by a 230-hp diesel en-

gine and single waterjet.

The new fast-rescue boat (FRB) models will also be RIBs. One will be an outboardpowered 5.4-meter hull and the other will be a diesel/waterjet-powered 5.9 meter.

“So we just doubled our SOLAS product line,” said Karen Jacquelin, Willard’s marketing director.

All Willard SOLAS FRBs will have selfbailing, fiberglass hulls with international orange gel-coated hulls wrapped with orange-and-black tubes.

The SOLAS FRBs are also self-righting, so Willard equips the boats with an arch over the transom with a self-righting bag secured to the top. If the boat capsizes, the operator manually activates an inflator that fills the bag with air, which rights the boat.

SOLAS fast-rescue boats must meet a demanding — B. Buls set of specifications and are built to ABS standards.

www.workboat.com • FEBRUARY 2015 • WorkBoat

WB_VR_RIBs_LINO.indd 41

and 11-meter RIBs are from Willard Marine.

In November, the Navy awarded Willard a new five-year contract to provide two types of 7-meter RIBs for search-and-rescue missions. Both types will have fiberglass hulls, Wing polyurethane tubes and 254-hp Steyr engines with Bravo Two X MerCruiser sterndrives. The RIBs will also feature Briartek man-overboard indicator antennas and displays, as well as forward machine gun mounts. The first order under the new contract calls for 24 boats, the first of which will be delivered in March.

“This five-year contract will supply

SOLAS FAST-RESCUE RIBS

Willard Marine

Willard Marine

'A traditional rigid inflatable boat has a flotation tube that is actually part of the flotation of the boat.'

Perry Knudson Armstrong Marine

41

1/8/15 11:15 AM

RIBs 75 percent of all their 7-meter RIBs for shipboard use,” said Jacquelin. “And that’s why they want fiberglass hulls, because they don’t want metal that can interfere with radar or other electronic technology on their ships.”

Willard’s deep-V hulls, which are designed by C. Raymond Hunt Associates, the original developer of deep-V hulls, are routinely built from both composites and aluminum, depending on the customer’s preference.

Jacquelin noted that the new Navy contract is an example of a military trend called IDIQ (indefinite delivery, indefinite quantities).

“With IDIQs, you don’t know how many they’re going to order in what time frame,” she said. “They will often put an ‘up to’ number in a contract, like up to 50 in a year, that kind of thing.

But that doesn’t mean they’re going to order that many. You don’t know what they’re going to do. That changes everything for everybody. You may give

them a proposal for the ‘up to’ amount, for maybe 50, for example, and you cost them at that number, and they end up ordering 10. So it’s really changed the nature of manufacturing and how we look at our business. We now have to manage a bunch of ‘what-ifs,’ including the purchase of equipment from vendors” for unknown quantities.

“Repairs are also now being done on IDIQs,” said Jacquelin. “And because you get locked out if you’re not the winner, winning is crucial. It’s creating some tension.”

So even though Jacquelin reported that government RIB business has picked up over the past five years, Willard diversified recently with the acquisitions of Crystaliner and SeaArk Marine designs.

Crystaliner was a Southern California builder of fiberglass surf and rescue boats that closed its doors in 2012.

SeaArk Marine also stopped production of its aluminum workboats and

Willard Marine will manufacture SeaArk Marine‘s popular Commander and Dauntless series designs. patrol boats in 2012, but now Willard will build the popular Commander and Dauntless series designs, which greatly expands its product line.

Willard has also contracted with MilPro Marine, Grand Rapids, Mich., to represent all Willard vessels, including the SeaArk designs, in the Great Lakes, Midwest and Northeast.

MilPro has been in business for eight years and sells exclusively to military, law enforcement and government agencies.

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68' Z-Drive Towboat

Nice Moves

New Z-drive towboat gives company the extra maneuverability it needs.

The new 1,500-hp towboat is Carline’s first Z-drive.

Story and Photos by Ken Hocke, Senior Editor

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T

he process is called downstreaming. It involves positioning a towboat above a fleet of barges, then using the river’s current to move the vessel downstream, plucking the needed barge from the fleet.

Now imagine that it’s late April on the Lower Mississippi River, between Baton Rouge, La., and New Orleans. The water is high and the current is, as they say, “running.” This is the type of situation where vessels can sink and lives can be lost.

It can be dangerous. But the cargo in the barges is needed. The owners can’t wait until the water goes down and the current slows to get at their cargoes.

This is the very scenario that convinced Carline Companies, Gonzales, La., to build a new 1,500hp fleet towboat — one with a lot of maneuverability that can handle downstreaming no matter

what the conditions.

Carline offers fleeting services in Louisiana on the Lower Mississippi River at Burnside, Geismar and Plaquemine. And that’s where the company’s new 68'×34'×10' fleet towboat Cairo will be used.

(The company also offers continuous barge moves on the Mississippi River between Baton Rouge and New Orleans and between New Orleans and Houston on the Gulf Intracoastal Waterway.)

“This is the first boat that we’ve had built that is specifically for fleeting operations,” said Clay Harmon, Carline’s vice president. “We’ve always used some of our older linehaul boats as fleet boats, and they work fine. But this boat increases the efficiency in the fleet.” It also increases safety because it’s two Z-drives give the vessel added control. www.workboat.com • FEBRUARY 2015 • WorkBoat

1/7/15 1:26 PM

“I would say that the main difference between this boat and the other fleet boats is better maneuverability,” said Capt. John Michot, one of the Cairo’s pilots. “It’s definitely better.”

SPECIAL ORDER Carline contacted CT Marine, Portland, Maine, in late 2012 about designing a fleet boat with similar visibility in the wheelhouse that a CT-designed Parker Towing linehaul towboat had. A deal was struck at that year’s International WorkBoat Show in New Orleans.

“I think we were just going to design the wheelhouse at first,” said CT’s Christian Townsend. “Then we wound up designing the whole boat. It was the first Z-drive towboat for us. We had wanted to do one.”

The Cairo is the first Z-drive towboat for Carline and the first CT Marine design with Z-drive propulsion to be built.

The wheelhouse is octagonal, set as close to mid-ship as possible, and features floor-to-ceiling windows for a 360° view. “It’s as close to 360 degrees as we can get it,” said Townsend.

“It’s mainly for the captain to have a better line of sight, all around visibility,” said Harmon.

The challenge was to take a design that was already proven and put it into a much smaller package. “It was one of the more difficult boats for us to de-

Capt. John Michot prepares to back away from the dock.

sign, putting all that equipment, like the pumps, into a much smaller envelope,” said Townsend.

Harmon worked closely with CT Marine during the design process. “We were given a virtual tour of the boat,” he said. “It really gave us an opportunity to see what it would be like to walk into the different sections of the boat. It really helped.”

Townsend said the new towboat has the scantlings of a much larger boat.

“It’s way overbuilt,” he said. “I tried to put as many big boat attributes into this boat as we could. Stability wise, it’s a real bulldog fighter.”

Though the Cairo is a day boat and has no berths, the vessel has plenty of amenities, including a full galley, with large screen television on one wall, two heads and a training room.

“Yes, amenities definitely matter,” said Harmon. Each three-person crew works a 12-hour shift and goes home after each shift, working days one week and nights the next.

Finding young men and women coming out of high school to commit to the marine industry is not always easy, Harmon said, “but we’ve done pretty well with the people we have. To be able to tell them that in six years you can be a pilot and make some real good money helps. And they go home every day.”

MANEUVERS A pair of Thrustmaster of Texas TH750MZ Z-drives provide more control from the wheelhouse. The Cairo was specially built for fleet duty, nothing else. “There will be times when

The full galley is a welcome amenity for crews.

The towboat is outfitted with a pair of Thrustmaster TH750MZ Z-drives.

www.workboat.com • FEBRUARY 2015 • WorkBoat

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68' Z-Drive Towboat

'The main reason we went with the Z-drive boat was downstream safety because of high water.'

Clay Harmon Carline Companies [the pilot] has to have both hands on the controls,” said Harmon, “that’s why we had a foot mic [microphone switch] put in.

“That was Clay’s idea. I had never seen that before,” said Townsend. “It’s really a good idea. He’s been in the business a long time, and he has some good ideas. This boat is definitely his project.”

“The main reason we went with the Z-drive boat was downstream safety because of high water,” said Harmon.

“There are specific jobs that call for downstreaming in high water conditions.”

Rick Stinson, Thrustmaster’s Gulf Coast regional sales manager, said Z-drives give the operator more control in any conditions. “They knew that.

I think the reason they selected us is because we were the only U.S. manufacturer of Z-drives, and we offer parts support, reliable service and our products are built to ABS standards.”

CAIRO

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Years ago two of the knocks against Z-drives on the river were the amount of debris that could get sucked into the drives and the expense and downtime needed to get replacement parts. “We have $20 million in spare parts inventory at all times and we’re in Houston,” said Stinson. “Our drives have what we call a mechanical fuse that fires if something big like a towline or cable is ingested. Replacing a prop is easy enough. The fuse protects the bearings, gears, crankshaft, flywheel, like a shear pin on an outboard motor.”

Stinson said his numbers show aver-

SPECIFICATIONS

Builder: Raymond & Associates/Carline Companies Owner: Carline Companies Designer: CT Marine Mission: Fleeting/switch boat Length: 68' Beam: 34' Depth: 10' Draft: 8' Hull Material: Steel Steel Weight: 197 ST Lightship Weight: 292 ST Height of Eye: 33' Main Propulsion: (2) Cummins QSK19-M

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Increased visibility was a key element in the wheelhouse design of the Cairo.

Tier 2, 750 hp @ 1,800 rpm Z-Drives: (2) Thrustmaster TH750MZ, 57" propeller in nozzle Ship’s Service Power: (2) Cummins 6BTA, 85 kW, 1,800 rpm Capacities (gals.): Fuel, 16,819; potable water, 2,971; lube oil, 415; Z-drive oil, 415 Electronics: Furuno electronics suite Supplemental Equipment: Tank monitoring system, camera system, Palfinger knuckle boom crane Crew Capacity: 3 Certification: Built to ABS standards Delivery Date: December 2014

age fuel savings of 25% over comparable boats with rudders. “These drives eliminate the need for flanking rudders, and rudders rely on deflected thrust which uses a lot of power,” he said.

“You’re using your engines at higher rpms with rudders, burning more fuel.

Stinson said Thrustmaster has numbers that show that Z-drive boats are more efficient than conventional vessels. “What we’ve seen is a 1,500hp Z-drive can perform like a 2,000-hp conventional propulsion boat,” he said.

The Thrustmaster Z-drives connect to a pair of Cummins QSK19-M Tier 2 diesels, producing 750 hp at 1,800 rpm each. The Cairo’s capacities include 16,819 gals. of fuel; 2,971 gals. potable water; and 415 gals. each of engine lube oil and Z-drive lube oil.

“We were all curious about the boat, excited really,” said Capt. Michot. “It’s all been pretty smooth so far.”

Harmon said the crews are still learning. “They’ve all been sent to simulator school.”

One of Harmon’s favorite features of the boat is the technician’s room, which houses an impressive system of monitors. “Technicians can come in here and check the monitors for a complete history of, say, the amount of fuel the boat has used. All in all, the boat came out very well. We’re pleased.”

www.workboat.com • FEBRUARY 2015 • WorkBoat

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Monitoring Systems

Fuel Watch

Monitoring fuel usage has many benefits.

A

nalyzing fuel-burn is a critically important function, no matter what the current costs.

By determining the most cost-efficient engine speeds for any given situation, fuel expenses can be lowered dramatically.

Accurate and secure monitoring of fuel loads and consumption can also help prevent offshore theft. According to Brian Staton at Krill Systems, Bainbridge Island, Wash., many international offshore operators’ interest in fuel monitoring is “being driven by the reporting that’s needed for recordkeeping for the prevention of fuel theft.”

Staton said his customers are major oil and gas companies “that are struggling to get a baseline of their assets that they are paying OSVs to operate with.”

He said Krill’s clients in Latin America and South America have discovered that “it’s not uncommon that hundreds of thousands of gallons of fuel is being taken from them as they go out to service the rigs.”

Is that also true for the Gulf of Mexico? Staton couldn’t say either way, “but companies coming to us define their assets around the world. That includes the Gulf of Mexico. It’s not their priority.

Their priority is in faraway places.”

Washington State Ferries analyzed fuel consumption trends using equipment from Krill Systems.

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Bruce Buls

By Michael Crowley, Correspondent

www.workboat.com • FEBRUARY 2015 • WorkBoat

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The Krill vessel fuel management systems that go on offshore service vessels help oil companies understand where the fuel is going. It starts dockside with the monitoring system recording how much fuel goes into the boat.

“It records it, prints it and has it stamped by an official port authority,” said Staton. “Once on its job, [the vessel] goes to offshore rig number one and drops off 100,000 gallons of diesel and immediately that ticket is run, stamped and signed. Then it goes to rig number two and so on. ” When the OSV comes in to reload, bunker tickets and weekly fuel monitoring tickets show the fuel it received and how much was discharged at sea.

“It’s a full accountability,” Staton said.

“It shows if the assets are going to the right people and not being stripped from the vessel.” He added that manipulation of the information is very difficult to do.

Without this accountability, oil and gas companies have to rely on someone’s word, and the tickets weren’t necessarily showing what was being bunkered.

One company that Staton and Krill are working with has several hundred vessels throughout the world, managed by maybe half-a-dozen contractors. The company has talked with Krill about installing a fuel management system that would allow them to monitor all vessels at the corporate office. The contractors would have similar monitoring systems showing data only for their vessels. “That’s bunkering and fuel use, everything in real time,” said Staton.

Thus when the oil and gas company talks with a contractor, they are both looking at the same information and any discrepancies can be quickly resolved.

While that part of Krill’s business involves protecting fuel supplies, there’s also a market for reducing a vessel’s fuel usage to improve its efficiency.

A good example of that is Washington State Ferries’ 440' Jumbo-class ferries. WSF operators have had a routine of pushing against their cradles

for 40 minutes each morning to warm up the machinery. Krill’s monitoring system showed they only needed to do it for 10 minutes, which could save thousands of fuel dollars a year.

Then there’s the “jack-rabbit” start where ferries would leave the dock from a stationary position and go immediately to full throttle. “We did a fuel calculation and found there’s no reason to go from stationary to full throttle,” Staton said. “You could do it over a gradual period and get speed that’s needed and save thousands of dollars of fuel over a year.”

He estimated that the total operational savings from using a fuel monitoring system could be as much as $300,000 annually per Jumbo-class ferry.

Whatever purpose the fuel management system is intended to be used for, Staton emphasized the importance of three steps: collecting the data, reporting the data and producing it in an analytical form that can be immediately used without having to “crunch a lot of numbers.”

MONITORING FUEL TAXES Aside from looking at fuel consumption from individual and international perspectives, there are also regional benefits, as seen with FloScan Instrument’s latest fuel-monitoring software for riverboats.

It’s called geo-fencing, which is an addition to FloScan’s DataLog fuel monitoring software. DataLog, which has been available for the past couple of years, allows fuel-flow information from FloScan fuel computers to be displayed on a boat’s PC in real time.

It shows fuel consumption for the main engines and generators that the operator can monitor in the wheelhouse, as well as engine rpm, GPS coordinates, course over ground and speed over ground.

Displaying fuel consumption in real time allows the captain to identify the engine speed that’s most efficient.

“Fuel savings of up to 15 percent can be achieved with this feature,” said FloScan sales manager Joe Dydasco.

What’s new is geo-fencing, which

www.workboat.com • FEBRUARY 2015 • WorkBoat

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Interest in fuel monitoring from international offshore service vessel operators is ‘being driven by the reporting that’s needed for recordkeeping for the prevention of fuel theft.’

Brian Staton Krill Systems was introduced at the International WorkBoat Show in December. It is slated to be installed on a large towboat fleet that operates along the Mississippi River — about 55 towboats.

Towboats that operate on the Mississippi must pay a fuel usage tax on the fuel burned in the main engines.

“Essentially it’s a pollution tax,” said Dydasco. “The states are saying, ‘you burn X amount of gallons in our state, we want to hold you responsible for keeping the environment clean.’ ” Fuel consumption taxes are levied for the districts as boats pass through.

DataLog already records fuel consumption minute-by-minute and identifies where a boat is, all of which can be made available on a spreadsheet, but towboat operators wanted more.

“Towboat outfits asked if we couldn’t develop a feature for DataLog to identify when a boat enters a particular zone, identify how much fuel is consumed within the zone and stop recording when you exit the zone,” said Dydasco.

That’s geo-fencing, which is defined as software that uses global positioning systems (GPS) or radio frequency identification to define geographical areas — in this case sections of the Mississippi River.

Basically what FloScan did was create a grid using GPS coordinates to break the river up into districts or zones.

“You can have multiple zones, or map out the entire Mississippi River.

As far as I know, FloScan is the only one that’s got this,” said Dydasco.

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‘Fuel savings of up to 15 percent can be achived with this feature. As far as I know, FloScan is the only one that’s got this.’

Joe Dydasco FloScan Instrument

Monitoring Systems

FloScan

FloScan’s DataLog is now available with geo-fencing, which calculates fuel consumption in specific locations.

DataLog and geo-fencing can generate a fuel-burn report as often as needed. The data is recorded and can easily be turned into a spreadsheet.

Once the file is processed, it stays on the computer or can be uploaded to a company’s home office.

“This simplifies the record keep-

ing process,” Dydasco said. When reports are issued on how much fuel is consumed, “the fleets can go back to the accounting department and identify how much fuel is consumed in each state or local district.”

Whether it’s fuel usage, taxes or theft prevention, the need for vessel fuel management systems is strong enough that many vessel operators are putting it into newbuild contracts “so it’s ready for that application,” said Staton.

“Companies are starting to become more diligent in managing their resources. I see this as a trend.”

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LOOKS BACK FEBRUARY 1965

• Two identical bills that would require the Coast Guard inspection of towboats, the licensing of operators and the establishment of manning scales were introduced in the opening days of the 89th Congress. The bills would give the Coast Guard the authority to inspect all towing vessels 15 GT or more, or 26' or over in length. The regulations would be

written by the Coast Guard.

• Jeffboat Inc., the Jeffersonville, Ind., subsidiary of American Commercial Lines Inc., has been awarded a $1.7 million contract from Shell Oil to build a 175' seismic research vessel.

The 2,400-hp vessel will be powered by a pair of GM Electromotive diesel engines. The contract marks Jeffboat’s entry into the offshore service vessel construction sector.

FEBRUARY 1975 • The Los An-

geles Board of Harbor Commissioners has approved a contract with Standard Oil Company and Pauley Petroleum to engage in drilling operations in a 1,500-acre tract south of Terminal Island. The 30-year contract must be approved by the city council.

• Waterways taxes have moved closer the United States.” The amount of taxes to reality. On Nov. 26, President Ford paid by each barge company would gave his approval to a bill calling for a be based on tonnage carried, miles user tax on the barge and towing indus- traveled and the cost of maintaining try. The bill is designed to cut the 1975 the waterways traveled. The tax would federal deficit and add $100 million affect all major U.S. inland rivers and annually to the treasury. The proposed waterways.

Waterway User Tax Act would take effect April 1, 1975, and would tax carriers who transport “property by vessel over segments of the inland FEBRUARY 1985 waterways of • Tidewater Inc., the world’s second largest offshore service vessel operator, has rejected a takeover bid from investor Irwin L. Jacobs. Jacobs reportedly offered a price range of $25 to $28 per share. A Tidewater spokesman said that the company did not think the offer price reflected Tidewater’s value, and also rejected the bid because it was contingent on the successful comple68

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tion of an asset disposition program.

• Houston Natural Gas Corp. has completed the $39.75 million sale of Federal Barge Line Inc., United Barge Co. and Marine Equipment Co. to Midland Affiliated Co. In another merger deal, U.S. Steel Corp. sold the assets of its Ohio Barge Line and Mon Valley Transportation to Ingram Ohio Barge Co. for $81 million. www.workboat.com • FEBRUARY 2015 • WorkBoat

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