WorkBoat May 2016

Coast Guard Museum • Firefighting • Offshore Service Vessels ®

IN BUSINESS ON THE COASTAL AND INLAND WATERS

MAY 2016

Flatline When will the U.S. Gulf rebound?

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ON THE COVER

®

MAY 2016 • VOLUME 73, NO. 5

BP’s Mad Dog platform in the Gulf of Mexico.

Photo courtesy of BP

FEATURES 24 Focus: On Display The first Coast Guard museum in the U.S. targets 2020 for its opening date.

30 Vessel Report: Remodeling Some stacked OSVs could find non-traditional uses.

44 Cover Story: Murky Waters How much worse can business get in the U.S. Gulf?

BOATS & GEAR 36 On the Ways

30

Horizon Shipbuilding delivers Z-drive towboat to the Army Corps of Engineers. Another 1,350-hp towboat for Blessey Marine from Verret.

Blount delivers first U.S.-built crew transfer vessel to Atlantic Wind Transfers. JT Marine is building a new 110' tractor tug for Baydelta.

Rodriguez Boat Builders delivers new 2,000-hp towboat to Mid-River Terminals. 150' landing craft delivered to Avalon Freight Services by Diversified Marine.

52 Fire Wall When a fire starts, mariners need to know how to put it out.

AT A GLANCE 8 8 9 10 12 13 14

On the Water: Wrong assumptions ­— Part III. Captain’s Table: MERPAC and electronic charts.

OSV Day Rates: A sliver of hope offshore WB Stock Index: Workboat stocks gain 8%.

Inland Insider: Energy slide will hit brownwater too.

Insurance Watch: A little lagniappe from your premiums.

Legal Talk: Jones Act changes on the horizon?

52 DEPARTMENTS

NEWS LOG 16 16 17 17 18 18 20

New York tug probe to take several months.

Energy demand to increase, experts say.

Obama administration says no to East Coast drilling.

Hornblower lands New York City ferry contract.

New marine education facility opens in New Orleans.

BAE lets go 170 workers in Virginia.

Conrad reports lower earnings, but backlog grows.

www.workboat.com • MAY 2016 • WorkBoat

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2 Editor’s Watch

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Editor'sWatch

The cycle continues ...

T

wo years ago we sounded a word of caution in our annual report on the offshore market. Last year analyst Allen Brooks said the downturn looked extreme, and it would get worse and that a fundamental restructuring of the offshore energy industry may be in order.

As with many of his past predictions, Brooks may be proven correct once again.

In this year’s offshore cover story that begins on page 44, Bill Pike’s report contains plenty of bad news.

Operators describe how they intend to survive a market that, according to Wes Bordelon of Bordelon Marine, has been “decimated at all levels, shelf to deepwater.”

Laborde Marine’s Jimmy Skiles said it’s time to “pull the hatch over and hang in there.”

Matt Rigdon of Jackson Offshore Operators summed it up: “There are too many boats.”

What offshore service vessel operators want to know is when will the downturn end and how can they survive until it does?

At our OSV Summit in Houston in March, Brooks said that the “elephant in the room is debt.” The industry went crazy with cheap capital and now many companies are saddled with out-ofcontrol debt. E&P operators used the cheap money to go on a drilling and production spree that exceeded oil and gas demand, creating a big oversupply situation.

Now the retrenchment is in full force.

Those that have avoided bankruptcy have made big spending cuts and deferred offshore activity. This includes Chevron which halted two major de-

David Krapf, Editor in Chief

velopments in the ultradeepwater Gulf in February. Many feel that it will get worse before things improve.

But even Brooks is somewhat optimistic, although he sees the debt crisis getting worse through the rest of this year. He said that the cut in E&P spending and less access to capital means a reduction in development activity, which should eventually slow production, increase oil and gas prices, and lead to a resumption in spending.

And for the OSV market, this will mean fewer vessels, a more balanced market, and an increase in day rates.

So hang in there everyone.

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 16 Printed in U.S.A.

by Diversified Business Communications.

www.workboat.com • MAY 2016 • WorkBoat

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EDITOR IN CHIEF

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SENIOR EDITOR

Ken Hocke khocke@divcom.com

ASSOCIATE EDITOR

Kirk Moore kmoore@divcom.com

ONLINE EDITOR

Ashley Herriman aherriman@divcom.com

CONTRIBUTING WRITERS

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

PRODUCTION DIRECTOR

Jenn Stein

ART DIRECTOR

PUBLISHING OFFICES

Dylan Andrews

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

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

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www.workboat.com • MAY 2016 • WorkBoat

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recently released paper on the “six-on/six-off” watch system is little more than an opinion piece intended to serve the interests of operators in the inland tug and barge industry. (WorkBoat, March 2016, page 20, “Mariners need 7-to-8 hours of sleep.”)

The paper, “Enhancing Sleep Efficiency on Vessels in the Tug/Towboat/Barge Industry,” is the product of Northwestern University and was sponsored by the National Cooperative Freight Research Program (NCFRP).

It is interesting to note that the paper came out at the same time that the National Transportation Safety Board (NTSB) identified fatigue in the transportation industry as a high priority issue that needs to be addressed. The timing, methodology and conclusions appear to be an attempt to justify the current six-on/six-off watch system in

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the towing industry. The paper is not based on an objective scientific study but on the opinions of the stakeholders — company officials or employees — who have an interest in or are under pressure to shape the outcome.

Self-serving opinions combined with selected research papers on fatigue and sleep in a very different environment, such as astronauts in space, are used to justify inherently unsafe practices.

There is a serious credibility issue with the paper. It is essentially an advocacy position paper for the American Waterways Operators.

A counterpoint to the NCFRP paper is Project Horizon. In stark contrast to the views expressed in the NCFRP paper, Project Horizon researchers found substantial risks caused by fatigueinduced impairment of cognitive ability in the six-on/six-off watch system.

The NCFRP paper should be viewed in the context of the long-standing debate between regulators, companies

and seafarers over the endemic problem of fatigue-induced accidents in the 24/7 maritime transportation industry. All agree that fatigue is a big problem. The debate is over the possible solutions.

Because crewing costs money, companies argue that there is no need for additional crew. Their position is that the problem can be solved through “effective management” of available resources, such as the Fatigue Resource Management System (FRMS) advocated in the NCFRP paper.

They view the FRMS as a way to shift the responsibility for fatigue from the company to the watchstander. The NCFRP paper is just another example of companies attempting to influence the upcoming NTSB review of fatigue in the transportation industry.

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On the Water

Wrong assumptions — Part III

O

By Joel Milton

Joel Milton works on towing vessels.

He can be reached at joelmilton@ yahoo.com.

ne of the biggest assumptions that vessel operators and mariners generally make is that the broad collective we call “technology” is a source of endless, if at times expensive, “good.”

Technology is typically viewed as something that will improve on a more-or-less infinite arc upwards to the stars, or some other similar analogy. The primary reason for this belief is mostly cultural. We’ve always been taught that this is so, and that it’s the natural order of things.

I’ve gradually lost that narrative, because decades of experience have made me very skeptical of the view that technology promises endless improvement. We have a tendency to forget the failures and the many unfulfilled promises. And beyond that, can we even agree on what constitutes actual improvement?

Technology is neither good nor bad per se. It just is. Let’s call it indifferent. It comes in as many

Captain’s Table

MERPAC and electronic charts

A

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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t last month’s Merchant Marine Personnel Advisory Committee (MERPAC) meeting in Jacksonville, Fla., I was impressed by the dedication, knowledge, expertise and experience of the 19 people that serve on the committee.

MERPAC was founded in the 1960s to advise the government, through the Coast Guard, about training, qualification, licensing, certification and fitness issues of seamen in the merchant marine.

It was difficult to decide which of the MERPAC work groups to attend. The groups consider specific topics of importance to the maritime industry and are charged with reporting back to the full committee at the end of the day. I settled on attending the group that discussed electronic charts.

Electronic charts are replacing paper charts, and mariners have lots of questions about how the technology will work, how it will be used, and how accurate the charts will be. One question is how mariners in different operating environments will be trained. I feel that electronic charts training must be specific to your type of operation.

different flavors as there are human inventors and quality, subjective as that may be. It varies widely.

How we use and misuse it is what determines the outcomes we receive.

Part of this equation includes our belief system and technology’s place in it. When technology is worshipped unquestioningly like a god, it will lead you down the primrose path to trouble. It’s just a tool. And like all tools, the more it can do for you, the more it can do to you.

I don’t initially judge a given technology on any scale other than exactly what it can and cannot do for me right now. That is, how it performs in the operational environments that I inhabit, including, crucially, how it relates to and works with all other forms of technology that we’re already using.

We’re in the business of safe navigation. Does fill-in-the-blank-technology help, hamper or neither? And if it does help, to what degree and at what financial cost? Do we even recognize, let alone understand, the true costs of the associated and inevitable growth of complexity?

It’s well worth considering.

As a river operator I view electronic charts as guides, not as a primary source for navigation.

Looking out the window of the pilothouse is important for a river mariner, because he or she can see both banks of the river, mile markers, aids to navigation and other nearby vessels. Bluewater navigation requires a much different application of electronic charts. Thus, I feel that electronic charts are not as important on the rivers as they are at sea. So, will training requirements be geared toward the different marine environments? Will river mariners be required to participate in weeklong training courses that are really designed for bluewater applications?

I don’t have the answers to these questions, but mariners must be involved in these discussions. If we are not engaged, we can’t object when regulations and rules are not written to our satisfaction.

During the MERPAC meeting I was able to publicly express my concerns about training requirements for electronic charts.

All mariners need to pay attention to the work of MERPAC and other federal advisory committees, attend the meetings, and express their opinions.

www.workboat.com • MAY 2016 • WorkBoat

4/11/16 4:49 PM

OSV Day Rates A ray of hope offshore

By Bill Pike

I

t’s tough offshore. But if you don’t mind looking down the road a bit, there are some bright spots for the Gulf of Mexico. One of them is moving CO2 enhanced oil recovery (CO2 EOR) offshore.

For those unfamiliar with enhanced recovery methods, when oil ceases to flow on its own, we install secondary and tertiary recovery methods. Secondary methods include things like pumps and water floods. When these fade and fail to deliver acceptable volumes of oil, we turn to tertiary recovery.

CO2 EOR is becoming an increasingly popular tertiary recovery method.

It is a method in which we inject CO2, generally in alternating slugs with water, into the producing formation.

The CO2 is very good at releasing oil and sweeping it out of reservoirs. An additional benefit is that when the CO2 EOR program is over, most of the CO2 remains sequestered in the formation rather than adding to atmospheric greenhouse gas.

Three distinct resource targets exist in the Gulf of Mexico OCS for CO2 EOR: (1) mature shallow-water oil fields; (2) recently discovered deepwater oil fields; and (3) undiscovered oil fields, primarily in deepwater and ultradeepwater.

With next-generation CO2-EOR

technology, the offshore Gulf offers a substantial prize — nearly 15 billion bbls. of additional oil recovery and storage for 3.9 gigatonnes of CO2 (equal to 40 years of CO2 capture from 20-GW coal-fired power plants).

Here’s where you have to stretch your perspective a bit. The CO2 -EOR potential in the Gulf of Mexico is governed by three key factors: • The performance level of CO2EOR technologies, current and next generation; • The cost of CO2 delivered to the offshore oil field. The most recent study by DOE’s National Energy Technology Laboratory (NETL) uses $50/ metric ton (mt); and • The world oil price. NETL examined the CO2 EOR and CO2 storage potential using a price of $90 bbl. and a future, higher oil price of $135 bbl.

Sure, $90 and $135 oil seems ludicrous in today’s environment, but we will get back there some day. And when we do, NETL estimates that at $90 bbl. we will produce 810 million bbls. of additional Gulf oil and create demand for 310 million MT of CO2 .

At $135 oil, recovery would increase by 2.82 billion bbls.

Using next generation CO2-EOR technology, Gulf oil production will increase by 14.92 billion bbls. and CO2 demand will increase to 3.91 billion MT. At $135 oil, recovery would increase by 38.06 billion bbls.

We aren’t there yet, but just think what it will mean to this industry when we do.

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STOCK CHART

WorkBoat Composite Index Stocks jump 113 points

T

he WorkBoat Composite Index posted another monthly increase in March, gaining 113 points. The 7.8% jump follows last month’s gain of 1.24%. For the month, gainers topped losers by a ratio of 9-1.

Beaten-down oil service companies rebounded a bit in March. Superior Energy Services rose over 30%. The Houston-based company announced on March 31 that it was eliminating

its quarterly dividend and executives would take a 15% base salary cut.

“The elimination of our dividend is consistent with our goal of preserving cash during this downturn,” David Dunlap, president and CEO, said in a statement. “Also in line with this goal, our executive officers have all taken reduced base salaries. This downturn has been severe in extent and duration but we believe our cost reduction ef-

INDEX NET PERCENT COMPARISONS 2/29/16 3/31/16 CHANGE CHANGE Operators 287.81 319.46 31.65 11.00 Suppliers 2313.67 2493.51 179.84 7.77 Shipyards 1857.53 1931.39 73.86 3.98 Workboat Composite 1458.30 1571.27 112.97 7.75 PHLX Oil Service Index 144.40 158.98 14.58 10.10 Dow Jones Industrials 16516.50 17685.09 1168.59 7.08 Standard & Poors 500 1932.23 2059.74 127.51 6.60

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

forts will allow for improved financial performance when industry spending levels begin to increase.”

Gulfmark Offshore jumped 72%, or $2.58 in March, closing the month at 6.17. In the fourth quarter, the Houston-based offshore service vessel operator said it had reduced quarterly operating expenses by 28% from the third quarter, repaid the outstanding balance on its revolving credit facilities, negotiated a one-year delay in the delivery of one of its three vessels under construction, and sold the oldest vessel in its fleet. Gulfmark no longer has any vessels older than 20 years and only seven vessels that are older than 15 years.

“We continue to focus on optimizing our fleet to match demand trends, and I am optimistic that we can get as many vessels sold in 2016 as we did in 2015,” Quintin Kneen, president and CEO, told analysts in March. — David Krapf

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www.workboat.com • MAY 2016 • WorkBoat

4/11/16 4:52 PM

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4/5/16 1:57 PM

Inland Insider Energy sector downturn is affecting brownwater

T

he March 16 Wall Street Journal headline read “U.S. Coal Sector Faces Reckoning.” The story was about the likely debt restructuring or bankruptcy of Peabody Coal, once a stalwart of the U.S. coal producers. The headline could just as well read, “U.S. Energy Sectors Face Reckoning.”

U.S. production of oil and natural gas represents an important market for the brownwater barge and Gulf of Mexico bluewater offshore industries.

The oil and gas sectors are in a deep financial slide from overdevelopment and overproduction accompanied by substantial debt. Just as with the free fall of domestic coal prices, about 60% since 2011, there has been a steep decline in oil and natural gas prices.

This has potentially exposed creditors to very large losses. The extent of the losses in the oil and gas sector varies by geography and well productivity, causing huge variations in corporate valuations. Bonds of domestic oil producers currently trade at premiums (value higher than face value) to very large discounts, as low as one cent on the dollar.

In general the best performing oil and gas companies with junk bond ratings (bonds trading at a discount to face value) are in west Texas, Canada and parts of Oklahoma. The bonds of these companies are trading on average of about 80% of face value. Most other oil and gas junk bonds from other production regions are faring much worse, including offshore at about 25% of face value.

Implications for the offshore sector appear to be particularly grim. Current bond discounts indicate that there will not be much new investment offshore.

While production will remain high because of committed investments, expect a holding pattern for major deepBy Kevin Horn water exploration until prices return to historical levels.

The spillover effects on commercial marine-related companies ranging from barge operators to shipyards will be felt for some time. Like coal, the oil and gas sector will have to work off the debt through write-downs, restructurings, and bankruptcies, until sustained higher prices make new investment attractive.

The light at the end of this debt depression tunnel will be a train for many of these companies.

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 • MAY 2016 • WorkBoat

4/11/16 4:55 PM

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Legal Talk

Are changes in store for the Jones Act?

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he Jones Act governs many aspects of the maritime industry.

It is most commonly known in legal circles for its unique remedy of providing seamen the right to sue employers for money damages for injuries or ill-

nesses that result from the employer’s negligence.

However, the Jones Act has a less known but equally important part that pertains to marine commerce. It requires that all goods shipped between U.S. ports be carried by U.S.-built, -owned, -crewed and -operated vessels.

These original provisions were signed into law to promote U.S. shipbuilding, expand economic development and enhance national security.

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Many people now say that the protectionist underpinnings of the Act are outdated. There is a movement afoot in Congress to strip the U.S. ownership and crewing requirements from the Act. Proponents

By Daniel Hoerner of the change argue that these archaic tenets of the Jones Act are an obstacle to economic growth due to the higher costs of domestic labor.

Arguably, cheaper foreign-built and foreign-owned vessels whose crews come from outside the U.S. would make the cost of doing business cheaper domestically, thereby invigorating trade and lowering prices to the domestic consumer.

Opponents of revising the Jones Act emphasize the importance of a strong and viable U.S. shipbuilding industry and a protected labor force at home. Even national security could be undermined by stripping the “American made” mandate of the Jones Act, according to proponents of the current law.

Attempts to alter the Jones Act have become a divisive issue on Capitol Hill as well as in the marine industry.

It pits U.S. shipbuilders and merchant mariners against those in the broader manufacturing and transportation sectors.

Changes to the Jones Act have been debated for decades, and major amendments are unlikely in the near term.

However, the Jones Act and any effort to have it legislatively modified deserve close attention by anyone with a stake in the marine industry.

Daniel J. Hoerner is a maritime attorneywith Mouledoux, Bland, Legrand & Brackett LLC. He can be reached at 504595-3000 or dhoerner@mblb.com.

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NEWS LOG NEWS BITTS ENERGY DEMAND TO RISE, EXPERTS SAY

Coast Guard Sector New York

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The tug Specialist was raised from the Hudson River 12 days after its three crewmen died in a March 12 allision with an anchored construction barge.

N.Y. tug probe to take months, Coast Guard says

Coast Guard Sector New York

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t will take several months to complete an investigation into the March sinking of the tugboat Specialist and the deaths of its three crew at New York’s Tappan Zee bridge, Coast Guard officials said shortly after the vessel was raised from the Hudson River.

“This is a major marine casualty,” Lt. Cmdr. Eric Rivera, chief of investigations, Coast Guard Sector New York, said in a lengthy statement detailing steps ahead. “It is the total loss of a commercial vessel of more than 100

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gross tons. In addition, we have loss of life, which adds a layer of complexity.”

The 84'×26'×9', 2,400-hp Specialist, operated by New York Marine Towing Inc., was one of three tugs moving a tower crane barge downriver when its starboard side hit another barge anchored at the construction site of the new New York Thruway bridge and quickly sank.

Capt. Paul Amon, 62, of Bayville, N.J., Timothy Conklin, 29, of Westbury, N.Y., and Harry Hernandez, 56, of Staten Island, N.Y., all died.

Radio traffic just before the allision indicated the crew realized they were too close to the construction barge and needed to move left.

Coast Guard officials said those communicaThe 2,400-hp tugboat was one tions are being examined of three tugs that was moving a tower crane barge downriver. in the investigation, which will also include

orld demand for energy consumption will increase by 34% between now and 2035, according to oil giant BP. Mark Finley, BP’s chief U.S. economist, said at the LSU Center for Energy Studies’ recent “Energy Outlook 2035: The Global Energy Industry and Its Impact on Louisiana,” that “global economic growth drives energy demand” and BP sees the world’s GDP more than doubling over the next 20 years. The oil market will gradually rebalance, with consumption of liquid fuels driven by the increase in the number of vehicles in the world, from about 1.2 billion today to 2.4 billion by 2035. The fuel mix will change significantly with coal losing, renewables gaining and oil and gas combined holding steady, Finley said. As for the current state of the oil and gas industry, the situation now “is different than in the past,” said Allan Pulsipher, associate executive director and Marathon Oil Co. professor of Energy Policy at the LSU Center for Energy Studies.

“You have U.S. inshore production, Iran coming back into the market, and Iraq stumbling toward producing as much as it use to.” Pulsipher said demand is not there right now and that technology is having a negative effect on consumption. “We have improvement in efficiencies. It is now common for us to drive cars that get 25 miles to the gallon,” he said. “Demand just isn’t growing. China has the two children per household rule.

There’s also been an increase in technology in the developing world.”

— Ken Hocke

digital recordings and photographs from the tug’s last trip and witnesses.

In addition to crew on the two accompanying tugs, 14 construction workers were on the barge when the Specialist hit. www.workboat.com • MAY 2016 • WorkBoat

4/5/16 2:33 PM

The Coast Guard is getting help too from New York state, the National Transportation Safety Board and the Westchester (N.Y.) County Police Department.

“Westchester Police Department has played an important role in the Coast Guard investigation,” Rivera said, adding the Coast Guard was relying on local police handling, compiling and storing physical evidence.

The bridge project had previous mishaps with construction barges breaking loose on the river, and a 2013 accident when a 19' recreational boat ran into an anchored barge at night, killing two passengers. The operator in that case was under the influence of alcohol, and sentenced to two years in prison for manslaughter.

Lighting on the barges was an issue in that case, although the Coast Guard and state officials found the work zone was properly lit.

The construction zone has remained a tricky place for commercial operators to transit, and days before the Specialist accident the Coast Guard issued another advisory about the bridge project. The Coast Guard advised mariners to stick to the center 600' of the main channel, and maintain a distance of 1,000' or more from construction vessels.

as dominating the decision. Leasing opponents raised the danger of spills hitting beaches near East Coast population centers and crippling tourism and fishing.

“Current oil prices were not a material factor in this decision,” Jewell said in a conference call with reporters.

Longer-term prospects in the industry are part of BOEM planning, which looks at scenarios with oil priced from $40 to $160 bbl., Jewell said. With the increases in onshore U.S. production in recent years, withdrawing the Atlantic lease area from consideration will reduce projected supply by only 0.1%, Hopper said.

Industry advocates reacted angrily, charging the administration was foreclosing economic and energy security for narrow interests.

“The decision appeases extremists who seek to stop oil and natural gas production, which would increase the cost of energy for American consumers and close the door for years to creating new jobs, new investments and boosting energy security,” American Petroleum Institute President Jack Gerard said in a statement.

With gasoline prices at historic lows, the administration faced less political pressure to go forward with Atlantic leasing now. But Jewell acknowledged

another proposal could come back, in a different energy and political situation.

“A future administration could redo the five-year program and put it back in,” or Congress could attempt to force a lease sale, Jewell said. But restarting the planning and public process would be long and arduous, she added.

A week after the mid-Atlantic announcement, BOEM’s central Gulf of Mexico lease sale in New Orleans attracted $156 million in high bids, in what the agency said was the fourthlowest total in that area since 1983.

No bids were received in the Eastern Planning Area block, but 30 offshore energy companies bid on the central area, getting 128 tracts covering 693,962 acres. — K. Moore and Ashley Herriman

Hornblower Cruises awarded New York ferry contract

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hipyards will see substantial work as a result of a contract between New York City and Hornblower Cruises & Events Inc. to build 18 new 149-passenger catamaran fast ferries for publicly subsidized, citywide commuter service.

In the meantime, San Francisco-

— Kirk Moore

Obama administration nixes East Coast offshore leasing he Obama administration’s March 15 decision to pull the East Coast continental shelf out of oil and gas leasing plans came after months of pressure from Atlantic coastal communities and the tourism industry, coordinated in large part by regional and national environmental groups.

Interior Secretary Sally Jewell and Abigail Ross Hopper, director of the Bureau of Ocean Energy Management, indicated that opposition from Atlantic coastal communities, other ocean commercial interests, and Navy concerns

Kirk Moore

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The Hornblower tour boat John James Audubon in New York’s East River.

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NEWS BITTS based Hornblower will lease vessels to serve all six routes in the ambitious plan, which will use transit funding to maintain a one-way fare of $2.75, making the cost of ferry commuting on par with the subway.

The system is set to start in the summer of 2017 and be fully operational the following year.

The new boats must meet the highest air quality emissions standards, and will be equipped with public wi-fi,

NEW MARITIME TRAINING CENTER IN NEW ORLEANS OPENS

just like the latest high-end ferries that currently carry Wall Street workers.

New York City Mayor Bill de Blasio portrays the program as offering economic opportunity – and commuting equity – for workers in all five New York boroughs.

“For the price of a single subway ride, tens of thousands of New Yorkers are going to have a new public transit option linking them to jobs, education and opportunities across the city. It’s

I

n April, Delgado Community College opened its new $6.5 million, 19,000 sq. ft. state-of-the-art education facility as part of its Maritime and Industrial Training Center in New Orleans. “We’re bucking the trend of pulling back while the industry is down,” the center’s senior director, Rick Schwab, said. “We’re putting our money where our mouth is.

It’s a major investment, and everything was designed for the industry.” The center averages 8,000 to 10,000 students each year and hopes to increase that number to 12,000. Additions to the facility include three new Transas wheelhouse simulators, a larger fire field, classrooms that can now hold 100 people at a time, additional radar labs and conference center. New programs will include QMED (Qualified Member of Engine Department), engine resource management and confined space-competent person. “It took me 12 years to get this, but with the help of the Delgado administration and my instructors and support people, we got it done and we’re proud of it,” Schwab said.

— K. Hocke

BAE LAYOFFS AND TRANSFERS CONTINUE

B

AE Systems laid off 170 workers at its Norfolk, Va., shipyard in March – fewer than expected, but a continuing pattern since 2015 as the shipbuilder deals with less commercial and Navy work on the East Coast. The shipyard had announced in March that it planned to let go as many as 265 workers, but the cuts announced Wednesday affected 160 union and 10 salaried employees after the company was able to transfer some employees to West Coast locations, The Virginian-Pilot reported.

Still, BAE Systems warned another 200 employees that layoffs could occur again around April 30. The company’s Jacksonville, Fla., workforce went through the same process March 18, when 30 workers were laid off rather than the 300 who were warned in January. Layoff notices there were extended for another 180. — A. Herriman

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CONRAD EARNINGS DOWN, BUT BACKLOG GROWS ALMOST 20% onrad Industries Inc. reported that its 2015 fourth-quarter earnings were down more than 25% from 2014, but its backlog increased almost 20%. The Morgan City, La.-based shipbuilder saw net income of $10.6 million and earnings of $1.86 for the 12 months ended Dec. 31, 2015, compared to net income of $22.8 million and earnings of $3.84 for the same period in 2014. As of Dec. 31, Conrad had a backlog of $211.8 million, compared to $180.2 million at the end of 2014. “Our results for 2015 reflect the challenging operating environment, which negatively impacted both Conrad’s Morgan City, La., yard vessel construction and repair and conversion business segments,” Johnny Conrad, president and CEO, said in a statement. “Notwithstanding current market conditions, we have been pursuing a disciplined program to invest in improving our shipyards’ capacities and efficiencies, including at our newest yard, Deepwater South. In addition to investing in our business, over the last three fiscal years, we have returned $39 million in cash to shareholders through dividends and stock repurchases. Our board will continue to monitor market conditions and work with management to successfully navigate this business cycle as we have in the past.” — David Krapf

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going to be a commute like no other: fresh air, harbor views and a fast ride on the open water,” de Blasio said in announcing the contract award. “We are selecting an operator with an incredible track record providing service in our harbor.”

Commuter advocates are glad to see that pricing, which makes waterborne travel an option for workers who live as far away as Rockaway, Queens — a one-hour ride to the Wall Street landing — and lower-income residents, including some 15,000 who live in public housing within half a mile of ferry landings.

Hornblower New York has been working the city’s waterways for a decade, operating ferries, tour boats, charters and high-end luxury yachts.

With more than 450 employees, the company carries 13 million passengers a year, and expects to add 150 new employees with the ferry contract.

Other ferry operators who made

‘We cannot continue competing against free, we cannot continue to viably operate.’

Helena Durst and David Neil, New York Water Taxi co-presidents

bids were unhappy, none more than Brooklyn-based New York Water Taxi, which warned employees it would start winding down operations this October.

Among other factors, water taxi operators said they couldn’t compete against subsidized rates on the East River crossings, which would drop from $4 to $2.75 under the city plan.

New York Water Taxi carries about 1.5 million passengers annually.

“We cannot continue competing against free,” New York Water Taxi co-presidents Helena Durst and David Neil said in an e-mail to their 200 employees. If Hornblower has both the Statue of Liberty route and the citywide service, “we cannot continue to viably operate,” Durst and Neil wrote.

Ultimately the system will have 21 landings around the city, plus future routes from Coney Island and Staten Island. Some $55 million in public money is going to infrastructure up-

grades, including building 10 new ferry landings and rehabilitating six others.

The city is pledging $30 million in annual operating support over six years. Based on a projection of 4.6 million annual trips, the per-trip subsidy will be $6.60, “lower than the nearly $8 per trip subsidy on the Long Island Railroad or the nearly $15 per trip subsidy for express buses,” according to de Blasio’s office.

Another $10 million is set aside for startup costs including vessel upgrades and ticketing machines. — K. Moore

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Coast Guard Museum

On Display Nation’s first Coast Guard museum looks to open in 2020.

By Pamela Glass, Washington Correspondent

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t’s no secret that the Coast Guard is a unique organization with a multitude of missions: maritime security, marine safety, protecting natural resources, national defense and fishing enforcement. And it’s been at it for 225 years.

But unlike the other military services, the Coast Guard has never had a national museum dedicated to its history and to the contributions of the men and women who serve.

Here’s the scorecard: Of the 87 military museums, the Army has 56, the Air Force, 13, the Navy, 11, and the Marines, five. The Coast Guard has zero.

But beginning in 2020 or sooner, this could all change.

Plans are moving forward to build a National Coast Guard Museum on the waterfront in New

London, Conn., which is also home to the Coast Guard Academy. The city is also one of the original 10 homeports of the Coast Guard’s predecessor, the Revenue Cutter Service.

The Coast Guard “has not had the entire story brought together in one place where the public can appreciate the breadth, impact and contributions that the Coast Guard has made to our country, literally over the life of the United States,” Adm. Robert Papp Jr. (USCG-ret.), former commandant and board member of the National Coast Guard Museum Association, the private, non-profit group overseeing the project, said in a promotional video.

Such recognition is long overdue, the admiral said.

Rendering courtesy of Payette and Gauchet/Santos

The museum will use sophisticated visuals, helicopter simulators, multidimensional films and interactive exhibits to tell the Coast Guard story.

www.workboat.com • MAY 2016 • WorkBoat

4/5/16 2:05 PM

Rendering courtesy of Payette and Gauchet/Santos

SLOW START But the museum has not had an easy time getting traction.

Since being launched in 2001, the project has had to overcome bureaucratic and legal hurdles and forge cooperative agreements before it could get going in earnest.

The state of Connecticut had to approve spending $20 million for a pedestrian bridge, and the city of New London needed to agree to donate waterfront property. The national economy had to slide out of the recession so that fundraising could resume.

Congress had to pass a law designating a location for the museum, and, lastly, Congress passed legislation in December to allow the Coast Guard to spend

The museum’s glass walls will bring in light and color from the Thames River.

money on a “non-essential project” like a museum. This was an important signal to financial donors that the project has strong political support in Washington.

The museum will present the Coast Guard’s past, present and future. But while it will cull items from 214 loca-

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MERCHANT MARINE EXHIBIT OPENS AT WWII MUSEUM

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National WWII Museum

he U.S. Merchant Marine suffered the highest casualty rate among U.S. services during World War II, losing one out of every 26 mariners, a deadly duty exceeded only by the losses on Navy submarines.

Yet the Merchant Marine’s monumental sealift from 1942 to 1945 gets short shrift in most popular accounts of the war. That may change. The story has a new memorial at the National WWII Museum in New Orleans, where the recently opened LTJG Ralph E. Crump Merchant Marine Gallery tells the tale.

Named for its donor, a 1946 graduate of the U.S. Merchant Marine Academy at Kings Point, N.Y., the 940-square-foot exhibit opened in December, part of the museum’s massive “Road to Tokyo” exhibit about the fight in the Pacific against Japan.

The Merchant Marine exhibit at the National WWII Museum opened in December.

“Members of the Merchant Marine were an essential force for the Allied cause, often working together with the U.S. Navy or Coast Guard vessels to protect their precious cargo,” according to the museum description.

Video, artifacts and personal stories collected by the museum tell how U.S. mariners carried 7.3 million U.S. troops around the globe, and millions of tons of weapons and supplies for U.S. and Allied forces.

Marauding German submarines had an early upper hand in the battle of the Atlantic, in 1942 sinking ships in sight of East Coast beaches and infiltrating close to New York — right up to the last day of the U-boat campaign, when the 396' coal carrier Black Rock was torpedoed off Point Judith, R.I., with 12 crew killed. In the Pacific, Japanese destroyers and submarines preyed on the cargo ships supplying Marines and soldiers in island-by-island battles.

The full extent of civilian mariner casualties during the war has never been firmly established, due to varying recordkeeping and a lack of careful history as in other sea services. In his 1998 book “A Careless Word … A Needless Sinking,” Capt. Arthur R. Moore of USMMA compiled 6,847 deaths out of 243,000 mariners in service, but other estimates put the number as high as 9,521 including those who died as prisoners of war or succumbed to their wounds ashore.

— Kirk Moore, Associate Editor

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Coast Guard Museum sions that one of the challenges we face is to make sure we adequately capture 225 years of history without becoming a stuffy museum,” said Catherine W. Cook, a board member and former chief deputy leader of the Connecticut Senate.

To prevent that, the museum will be designed to tell the Coast Guard story using sophisticated visuals, helicopter

simulators, multidimensional films and interactive exhibits. Glass walls will bring in light and color from the Thames River. Gallagher & Associates, an internationally recognized museum planning and design firm, has been contracted to create the interior exhibits. The firm also provided comprehensive planning and design for the highly rated National WWII Museum

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in New Orleans and the Holocaust Museum in Washington. Payette, a top Boston-based architectural firm, is handling the building design.

The tall ship Eagle, the academy’s training vessel, will be docked at the waterfront outside, while Coast Guard aircraft will be parked on the rooftop.

The museum will have much to tell, from the Revenue Cutter Service and its “system of cutters” founded in 1790, to the life of lighthouse keepers, to the pilots of landing craft on D-Day. More recent events will be highlighted: The 2005 rescue of 24,000 people during Hurricane Katrina, mostly off the roofs of homes that had been flooded, and the 2012 rescue of crewmembers after the HMS Bounty sank off North Carolina during Hurricane Sandy.

There will also be human stories, such as how Signalman First Class Douglas Monro earned a Medal of Honor for his bravery at the Battle of Guadalcanal during World War II, putting his boats in the line of fire to permit Marines to evacuate.

The goal is to educate the public about 3:01 PM the Coast Guard’s work, and to excite a new generation to join the service. Broader visibility will also help the Coast Guard better argue for strong budgets in Washington, especially as it struggles to replace its icebreakers, Cook said.

FUNDRAISING Thanks to an infusion of funds, the project has moved from the concept to design phase. Supporters are now confident that the museum is on its way to reaching its $100 million fundraising goal and its target opening in 2020.

Almost $35 million has been raised so far, and the service’s 225th anniversary last summer and the recent release of “The Finest Hours,” a movie about a daring 1952 Coast Guard rescue off Cape Cod, have been successful fundraising flashpoints. An advanced screening of the movie in Houston in January, hosted by former President George H.W. Bush and golfer Arnold Palmer, who served in the Coast Guard, attracted more than 300 guests.

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www.workboat.com • MAY 2016 • WorkBoat

4/11/16 12:07 PM

National Coast Guard Museum Association Inc.

from all military services except the Coast Guard have been fixtures of the center since its inception.

On display will be the HH-52A Seaguard helicopter, tail number 1426. In 1979 the helicopter’s crew hoisted 22 survivors after a tanker and a freighter collided near Galveston, Texas.

Hampered by intense heat and fire, the dramatic rescue was considered one of the greatest in Coast Guard aviation history.

Over $4 million in pledges for the Coast Guard Museum were announced during a special advanced screening of Walt Disney’s production of “The Finest Hours” in Houston in January. Former President George H.W. Bush (seated), Boysie Bollinger (right), and other noted supporters from across the country attended the event.

Officials announced an additional $4 million in pledges at the event.

Donations have come largely from influential maritime companies that depend on Coast Guard services, as well as individuals associated with the Coast Guard or who support its missions.

Donald T. “Boysie” Bollinger, the former chairman and CEO of Louisiana-based Bollinger Shipyards Inc., which builds various types of Coast Guard cutters, has donated $1 million, the largest individual contribution to date. Other big donors include Eastern Shipbuilding Group in Panama City, Fla., ($250,000) and Cross Sound Ferry in New London ($100,000).

In addition, members of the American Waterways Operators have pledged close to $2 million for the project, citing the close relationship between the Coast Guard and the tug and barge industry. More commitments are expected.

A new national museum is not the only indication that the Coast Guard is finally getting the recognition it deserves.

The Udvar-Hazy Center in Chantilly, Va., part of the Smithsonian National Air and Space Museum in Washington, will for the first time display a Coast Guard aircraft among its aviation and space artifacts. Representative aircraft www.workboat.com • MAY 2016 • WorkBoat

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OSVs

Remodeling Some designers are looking into non-traditional uses of surplus OSVs.

By Ken Hocke, Senior Editor

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T

he U.S. offshore service vessel fleet has taken quite a hit over the last two years.

Boats are piled up in waterways around South Louisiana, an indication of how badly depressed the OSV market has become.

Yet OSVs are being built. According to WorkBoat’s Annual Construction Survey, published in March, there are 51 OSVs either under contract, under construction or delivered during the past 12 months.

IHS Petrodata Marine-Base analyst Richard Sanchez said his company has reported similar numbers — 23 platform-supply vessels delivered in 2015, three more PSVs delivered up to February 2016, and 22 more PSVs under construction/on order at U.S. shipyards. “My total since January 2015 comes to 49. However, I could be

missing vessels,” he said. “I have seen very few shipyard cancellations in the U.S.” Sanchez said the U.S. Gulf fleet of Jones Actqualified PSVs and anchor-handling tug/supply vessels numbers 407. “We believe there are 138 working term charters, 80 on the spot market and 189 warm and cold stacked. The recovery is too far away to predict how much attrition will occur,” he said. “The older shallow water vessels are the most likely to be retired from the Jones Act OSV fleet for lack of work. We have about 243 PSVs/ AHTSes in the shallow water sector (PSVs less than 2,999 dwt and AHTSes under 10,000 hp).”

In the long run, there is a major shift coming to the oil industry, driven by more competition and environmental pressure. “Fossil fuels are under attack like never before,” G. Allan Brooks, an

Damen Shipyards Group

Damen has developed a proposal to convert a PSV into a live fish carrier for the aquaculture industry.

www.workboat.com • MAY 2016 • WorkBoat

4/5/16 1:55 PM

ALTERNATIVES The offshore oil and gas industry in the Gulf will not look the same when the rebound finally comes. There is every reason to believe that the number of offshore service vessels available in the Gulf will far outnumber the demand for those vessels.

While no one could have predicted the depth of the plunge in utilization the industry is currently experiencing, savvy naval architects and marine engineers always take a longer view of the market.

“Good OSV designers keep this cyclical nature of the business in consideration,” Anil Raj, P.E., owner, Technology Associates Inc., said at the WorkBoat Regional Summit in Houston. “This makes the shareholder and financier feel more stable.”

Raj referred to a paper he presented almost 30 years ago, during the ‘80s offshore downturn. In it, he offered several alternative uses for OSVs. He said that some architects are looking at other uses for the heavyduty boats, with most of the options being one-offs. Thinking in terms not

Technology Associates

analyst with Houston-based PPHB said at the WorkBoat Regional Summit “OSV Outlook for 2016 and Beyond” in March.

www.workboat.com • MAY 2016 • WorkBoat

WB_VR_OSV_LINO.indd 31

One out-of-the-box use of an OSV would be as a car carrier.

normally thought of when it comes to OSVs is better than doing nothing.

Some possible alternative uses for OSVs include container vessels, military and search and rescue boats, yachts and excursion vessels, trawlers and seafood processors, research and survey vessels, and wind support vessels. “Waterborne transportation is the most cost effective and environmentally friendly mode of transport on a dollar per ton basis,” said Raj. “Economic recessions in one marine sector or geographic area of the world do not always mean it is the same everywhere. Marine vessels are mobile.”

One interesting idea would be converting an OSV into a boat/yacht transport vessel. Currently, there are no Jones Act vessels of this type available

for owners that want to move their yachts from U.S. port to U.S. port. For example, the yachts must first go to Mexico and be reloaded before heading to the next U.S. port.

To Raj’s point, Damen Shipyards Group is developing designs involving converting idle PSVs into vessels capable of taking on roles in alternative sectors such as aquaculture, shipping and defense.

“Our design teams have come up with workable ideas across several industries. For example, we can convert a laid up PSV into a profitable container feeder or, for naval operations, a logistic support vessel,” Damen’s sales manager, Remko Hottentot, said. “The possibilities are numerous. It will also be possible to transform a PSV into an

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OSVs accommodation and O&M vessel.”

One example of an already developed proposal is Damen’s live fish carrier for the aquaculture industry. “Here, the concept of using the existing PSV platform is ideal, yielding many advantages for live fish carrying situations,” said Hottentot.

As for OSVs being turned into yacht carriers, Vincent Petrella, executive director, Yacht Brokers of America, said that he doesn’t see much demand

FINANCIAL CONCERNS FOR OSV POWERHOUSE

for them in the domestic market.

“Most of our vessels are under 100 feet. If they don’t go on their own bottoms, they go by truck,” he said. “I don’t know what the numbers are in costs for something like [OSV yacht carriers], and those vessels would have to have their own loading capabilities.

These [yachts] are very sensitive in the way they’re chocked and handled in general.”

T

idewater Inc., New Orleans, has borrowed $600 million, the maximum amount available under its revolving credit facility, the company announced in March.

The funds will be used for general corporate purposes and to enhance the company’s liquidity position and financial flexibility.

“Like the entire energy services industry, Tidewater continues to face challenges arising from the decline in the level of offshore oil and gas drilling and development activity around the world,” Jeff Platt, Tidewater president and CEO, said in a statement. “Moreover, the uncertainty surrounding the future direction in oil and gas prices has resulted in our clients' continued reduction in their capital budgets, spending and activity levels.”

Tidewater announced in January that it would suspend its quarterly dividend and common stock repurchase program.

Platt said that suspension of the dividend and common stock repurchase program along with an operating system realignment were among steps taken to “enhance liquidity, reduce costs and reduce capital expenditures, all to best position the company for an eventual industry recovery.”

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WHAT TOMORROW BRINGS Many experts admit that they don’t have all the answers. A natural or manmade disaster, for example, could turn the OSV market around fairly quickly.

“We expect demand to remain flat to negative for two-to-three years,” said Sanchez. “We have predicted massive attrition in past down markets and have been utterly wrong. OSVs have proven to be very sticky in the market. The owners do not retire vessels because www.workboat.com • MAY 2016 • WorkBoat

4/5/16 1:54 PM

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In spite of the oversupply of OSVs on the market, some OSVs are still under construction.

analysts say it is good for market equilibrium.

“One destructive hurricane tearing through the oil patch could easily stir up IMR (inspection, maintenance and repair) work for hundreds of these vessels,” Sanchez continued. “Or another major oil spill could also create work for hundreds of these vessels. Predicting attrition is a mugs game.”

Bill Lind, vice president of operations at Vard Marine, was on the same Houston panel as Raj. He told those in attendance that his company’s clients tend to have long-range outlooks and are not easily spooked into excitability and panic. Another important attribute is adaptability.

“We don’t want to fool ourselves about what industry we’ve joined,” he said. “Diversity is essential to improve and survive.”

Going forward the industry would do better to maintain niche markets and scrap older, expensive tonnage, he said. Tomorrow’s OSV will have to be able to go farther offshore, spend more time on station, employ a fuel-efficient double chine and slow its speed.

“We believe the offshore oilfield will be back,” he said. “As a design firm, if you are not constantly looking at evolving, you are left behind.” www.workboat.com • MAY 2016 • WorkBoat

4/5/16 1:54 PM

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CONSTRUCTION ACTIVITY AT WORKBOAT YARDS

On TheWays

ON THE WAYS

Richard Dollison

Horizon-built towboat for the Corps

95' Corps towboat was commissioned in January.

E

arly this year, Horizon Shipbuilding, Bayou La Batre, Ala., delivered the 95'×43'×10' Z-drive towboat Dan Reeves to the Corps of Engineers Little Rock (Ark.) District.

The new boat is designed to comply with the proposed Coast Guard Subchapter M requirements, although the final rule has yet to be published.

“ABS was not involved with any review or certification regarding the proposed Subchapter M requirements,” said Timothy J. Keyser, the Corps’ chief, hull section, at the Marine Design Center. “The design and construction of the vessel incorporated systems, equipment and features to comply with the proposed Subchapter M rules. As an example, a bridge navigation watch alarm system (dead man system) was installed in the pilothouse, with alarms throughout the vessel.”

The towboat, which has accommodations for eight crew, is designed for maintenance and repair activities on the McClellan-Kerr Arkansas River Navigation System. The system includes 445 miles of navigational channels and 18 lock-and-dam structures. The majority of the maintenance and repairs require heavy lift capability and are inaccessible from land.

The Corps had the opportunity early in the project to tour 36

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and ride a Southern Towing Z-drive towboat. This allowed the Corps team to experience the full capabilities of Z-drive propulsion, gain a better understanding for design and operational considerations, and contribute directly to the decision to build a Z-drive towboat.

“The Corps designed the vessel with Z-drive propulsion for the increased maneuverability and increased effective horsepower,” said Keyser. “The vessel has to operate in restricted areas in and around locks, dams and river structures and maneuverability is paramount. The 2,600-hp Z-drive is comparable to a 3,000-hp conventional drive, and this will allow the boat to operate safely in high river flows.”

Two other important factors that were considered included the potential fuel savings from Z-drive efficiencies, and the ability to perform in-water repairs without drydocking the vessel. “The fuel savings is estimated be around 10% as compared to a 3,000-hp conventional drive,” said Keyser.

“Along with the savings associated with less installed engine horsepower, the directional thrust and efficiencies of the Z-drives provide further advantages. The Corps also optimized the propeller and nozzle for this vessel to maximize efficiency gains.”

Main propulsion comes from twin Caterpillar C32 www.workboat.com • MAY 2016 • WorkBoat

4/6/16 1:47 PM

WOSR “C” rated diesel engines, producing 1,300 hp each at 1,800 to 2,100 rpm, connected to two Thrustmaster TM1500MZ Z-drives with reduction ratios of 5.74:1. The Z-drives turn Hung Shen 4-bladed 67.75" props in nozzles. The Z-drive system has environmentally acceptable lubricants inside and the boat has the capability to operate as a zero discharge vessel.

With a draft of 8'6" and an air draft of 47'10", the Dan Reeves has a displacement of 657 LT. Capacities include 22,800 gals. of fuel; 7,500 gals. potable water; and 19,400 gals. ballast.

In the wheelhouse is a Furuno electronics suite and on deck are four Patterson WWP 65E-7.5 14 winches, a Rapp Marine 4,000-lb. capacity deck crane with a 10' radius and Schoelihorn-Albrecht inline, 10-hp, 14,000lb. line pull capacity capstan.

Ship’s service power comes from John Deere 6068AFM85 generator-

drive engines, sparking 150 kW of electrical power each.

The towboat will handle deck barges, construction barges, deck cargo barges, river dump scows, inspection barges and other floating plant.

— Ken Hocke

Verret completes another Blessey Marine towboat

T

he relationship between boatbuilder Verret Shipyard and Blessey Marine Services is a strong one. The Plaquemine, La.-based shipyard in late February delivered the 70'×30'×10'8" twin-screw towboat Capt. Troy Green to the Harahan, La.-based inland tank barge company.

Blessey’s 1,350-hp towboats, like the Capt. Troy Green, typically push tank barges between points along the Gulf Intracoastal Waterway from Corpus Christi, Texas, to Houston, to Baton Rouge, La., and east to Pensacola, Fla.

“Regarding design, we’re still building conventional drives, but we’re certainly aware of the Z-drives being built, and we’re listening to feedback from our peers on the pros and cons,” said Claude Mixon, Blessey's vice president boat construction and maintenance. “In any event, our building program is currently at a level that will just maintain our fleet size, while lowering our average boat age, though Blessey already operates one of the youngest fleets in the business.”

Sporting a draft of 8'6", the new 185-GRT towboat is powered by twin Cummins QSK19 diesel engines, producing 660 hp at 1,800 rpm each.

The engines turn Kahlenberg 4-bladed stainless steel 74"×58" wheels through Reintjes WAF-374 marine gears with 7.1:1 reduction ratios.

Capacities include 20,000 gals. of fuel and approximately 14,800 gals. potable water.

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On TheWays

BOATBUILDING BITTS

A

tlantic Wind Transfers, North Kingston, R.I., took delivery in April of the Atlantic Pioneer, the first U.S.-built crew transfer vessel (CTV) engineered specifically to service offshore wind turbines. Built by Blount Boats, Warren, R.I., the 70'6"×24'×4' aluminum catamaran is powered by a pair of MAN V-12-1200CR engines, each producing 1,200 hp at 2,100 rpm. The engines turn a pair of Hamilton Jet HM571 waterjets through ZF Marine 3050 gears. With a 15-ton capacity, the vessel will make about 30 knots when servicing

Atlantic Wind Transfers

First U.S.-built crew transfer vessel for the wind energy industry.

the 30-megawatt Deepwater Wind LLC power project now under construction off Block Island. Atlantic Wind Transfers, a subsidiary of Rhode Island Fast Ferry Inc., has a 20-year service agreement with Deepwater.

Blount built the boat under license from South Boat IOW, a British boatbuilder and primary supplier to the European wind industry. Blount CEO Marcia Blount said the shipyard is poised to fill CTV requirements for other, bigger East Coast wind ventures. — Kirk Moore JT Marine Shipyard, Vancouver, Wash., is building a new 110'×40' tractor tug for San Francisco-based Baydelta Navigation Ltd.’s Vessel Chartering LLC. Designed by Jensen Maritime, Seattle, the new tug will feature a fully electric double-drum tow winch driven by a single 100-hp motor. The winch can pull over 75 tons and utilizes pneumatic cylinders in place of hydraulics, keeping fluid off the deck. The brakes offer a force of 250 tons. The main drum has 2,500' of 2.5" steel wire and the storage drum has 2,200' of 2.25" steel wire. Both drums are equipped with level winds and can spool 90' of 3" chain on top of the steel wire.

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www.workboat.com • MAY 2016 • WorkBoat

4/8/16 10:47 AM

Bollinger Shipyards Inc.

Austal USA held a keel laying ceremony for the expeditionary fast transport vessel Yuma (EPF 8) in Mobile, Ala., in late March. The Yuma is the eighth EPF (formally the joint high-speed vessel, JHSV) built at Austal under the 10-ship, $1.6 billion contract awarded to the shipyard in 2008. Laying the keel is the formal recognition of the start of a ship’s construction. In addition, the U.S. Navy has modified Austal’s littoral combat ship (LCS) contract to include an 11th ship, LCS 26, the 13th Independence-variant LCS built by Austal.

Bollinger delivered another FRC in March

The shipyard’s LCS program continues to mature as the company prepares for delivery of the Montgomery (LCS 8) later this year. The Independence (LCS 2) and the Coronado (LCS 4) have already logged more than 86,000 and 23,000 nautical miles, respectively. Ten total ships, seven LCS and three EPF vessels, are currently under construction at Austal.

Bollinger Shipyards, Lockport, La., has delivered the 17th Coast Guard fast response cutter, the Donald Horsley. The Coast Guard took delivery on March 5 in Key West, Fla., and is planning a May commissioning ceremony in Puerto Rico, where the vessel and crew will be based. The 154'×25'×9'6" Sentinel-class cutter is assigned to the Coast Guard Seventh District. The FRCs are replacing the Coast Guard’s aging fleet of 1980s-era 110' Island-class patrol boats. Bollinger based its FRC design on the Damen Stan Patrol Boat 4708, obtaining a vessel with 28 knots flank speed. The cutter carries a 26' over-the-horizon long-range cutter boat with a stern launch and recovery system. — Ashley Herriman

/

www.workboat.com • MAY 2016 • WorkBoat

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4/6/16 1:47 PM

On TheWays

Blessey now has more than 80 towboats in its fleet.

sounder, SAT compass, intercom/PA, weather station, three Icom VHS and a DeHart swingmeter. On deck are two Patterson 40-ton electric winches.

Ancillary equipment includes a Blue Box voyage recording system, twin 500-watt Carlisle & Finch remote control xenon spotlights, and an Eagle fire detection system.

— K. Hocke

Rodriguez delivers new 2,000-hp towboat Blessey Marine Services

C

two Cummins QSB7-DM gensets, sparking 85 kW of electrical power each.

The wheelhouse has an air draft of 49'11" (mast up) and 43'11" (mast

down), an eye level of 33'6", and a custom hydraulic dual electro-hydraulic full follow up/non follow up steering system. The electronics suite features two Furuno radar, AIS, GPS, depth

oden, Ala.-based Rodriguez Boat Builders completed a new 70'×30' triple-screw, shallow-draft towboat in March for Mid-River Terminals, Osceola, Ark. Designed by Joey Rodriguez, the Dianna Lynn is a new design that features a conventional forward-house pusher configuration and the same propulsion package as Rodriguez’s popular lugger tugs. The lugger tugs feature an aft

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mounted deckhouse and a forward deck space for cargo. A single aft-mounted drum towing winch allows for towing or pushing if rigged with blocks.

For propulsion, there’s three in line, 660-hp 6-cylinder Cummins QSK19 engines. Each engine turns a 66" stainless steel propeller through ZF gears with 6:1 reduction ratios. The towboat has an eight-foot operating draft, and will be primarily involved in fleeting and harbor work.

The Dianna Lynn is the fourth boat in Mid-River’s fleet. All are Cummins powered. “We wanted the three engines for redundancy so that even if we lose an engine we still have over 1,200 horsepower,” Mid-River’s owner, Rick Ellis, said in a statement.

The wheelhouse has a full 360° view with large windows and is set atop two accommodation decks and a half deck that also serves for bridge electronics support, giving the towboat a 31' eyelevel. Steering and flanking rudders are

Rodriguez Boat Builders

On TheWays

70' towboat for Arkansas customer.

controlled by wheelhouse levers with mechanical shafts through the houses and connected to the hydraulic actuator valves in the upper engine room.

A set of push knees and deck winches facilitates barge work.

— K. Hocke

Diversified Marine delivers landing craft to California

I

n March, the 150'×50' Catalina Provider was delivered to Avalon Freight Services (AFS), San Pedro, Calif.

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www.workboat.com • MAY 2016 • WorkBoat

4/6/16 1:48 PM

Avalon Freight Services

New 150' landing craft for Avalon Freight Services.

land, Ore., the landing craft has 15'9" of clearance between the wheelhouse and the deck, enough room to fit the cabs of two trucks and part of their 40-foot containers. Up at the bow, the barge’s landing ramp, jutting up perpendicular to the water, is as tall as the wheelhouse.

Besides the two trucks and their containers, the Catalina Provider will hold four more rigs of the same size on the 4"-thick concrete wear deck, with space left over for smaller loads, as well as 12 passengers.

The new landing craft was designed

by Columbia-Sentinel Engineers in

Seattle for AFS, a partnership between Seattle-based Harley Marine and Catalina Express, Long Beach, Calif.

“Whatever makes [Catalina] island operate,” food, new furniture, etc., is transported by the Catalina Provider, said Kurt Redd, CEO at Diversified Marine. “Whatever goes out on the island, it will take it.”

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Murky Waters

A Chouest OSV next to the BP-operated Ensco DS3 drillship in the U.S. Gulf.

WB_CoverStory_LINO.indd 44

Photo courtesy of BP

How low can it go in the U.S. Gulf?

4/7/16 9:10 AM

By Bill Pike, Correspondent

Photo courtesy of BP

I

n March, 45 million acres of offshore leases in the Gulf of Mexico were put on the auction block. Thirty companies turned in 148 total bids.

Less than 700,000 acres were leased in what was one of the worst Central Gulf lease sales in the last two decades. It served as additional confirmation that the Gulf of Mexico oil and gas market is still in big trouble due to low oil and gas prices.

Ask anyone in the Gulf offshore service vessel industry how the market is these days and you better be prepared to duck or, at the very least, sit through a long diatribe littered with colorful language. In other words, it’s not good.

How bad is it? Well, that depends on the size of the vessel and the area where it works or, more accurately, would like to work.

“I think it’s fair to say that the OSV market has been decimated at all levels, shelf to deepwater,” said Wes Bordelon, president and CEO of Bordelon Marine LLC, Lockport, La. “Now is the time to pull the hatch over and hang in there,” added Jimmy Skiles, executive vice president at Laborde Marine, New Orleans.

The current, seriously deteriorated market conditions are the product of overly optimistic development spend-

OSV staging ports in the Gulf, such as Port Fourchon, La., seen here in better times, are becoming crowded with stacked boats.

ing prior to the oil price collapse that produced excesses in oil and gas production, and in the workboat industry, that cannot be sustained.

The result is a market defined by refinancing (when possible), bankruptcies, fleet reductions, and a stacked vessel count not seen in generations, or ever.

It’s simple, according to Matthew Rigdon, executive vice president and COO of Jackson Offshore Operators, New Orleans. “There are too many boats.”

The big question for OSV owners and operators are when is this going to end, how solid will the recovery be, and how can I survive?

UNDERSTANDING THE MARKET Oil and gas analyst G. Allen Brooks summed up the offshore market

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recently. “The elephant in the room is debt,” he said. “The entire industry has overreacted to low interest rates and cheap capital by running up sometimes unmanageable debt. Likewise, service industries have run up a lot of debt. In short, there was lots of cheap money.”

At the World Petrochemical Conference in Houston in March, Jamie Webster, vice president, crude oil markets at IHS Energy, noted that, “banks have always given a lot of money and always allowed these producers, since the dawn of the shale era, to spend more money than they bring in that year.”

Operators used this borrowed-money cash flow, both onshore and offshore, to go on a drilling and production spree that exceeded demand, filled storage, and created a glut on the international

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market. That scenario applied directly to the Gulf of Mexico’s booming, and expensive, deepwater play.

Then the bottom fell out.

In June 2014, WTI Cushing spot prices stood at $107 bbl. By midFebruary 2016, the price had dropped more than 75%, to approximately $26 bbl. The drop was almost solely the result of overproduction from the U.S. shale oil boom. At various points along the way, the price was also affected by slowing demand in China and parts of the rest of the world, and by threats of production ramp ups in the Middle East, especially in Iran after the easing of international sanctions.

New York-based consultants AlixPartners estimates that due to the low

6

price of oil, operators will face a $130 billion cash shortfall this year if prices again settle at the $30 bbl. level.

Fallout from the precipitous oil price decline began slowly but picked up speed. Bankruptcies in the oil and gas industry began in earnest in mid-2014.

A recent Deloitte Center for Energy Solutions report noted that 35 U.S. E&P companies filed for bankruptcy between July 1, 2014 and December 31, 2015. The majority of those filings (21 out of 35) occurred in the second half of 2015. The bankruptcies and financial instability continue.

Dallas-based law firm Haynes and Boone noted that as of March 7, nine producers have filed bankruptcy in 2016. The firm expects more bankrupt-

cy filings will occur during the year.

Those operators not facing financial ruin have taken damaging financial hits that have led to severe spending cuts and deferred activity. February began with news that Chevron had quashed its planned Buckskin and Moccasin developments in the ultradeepwater Gulf of Mexico. Chairman and CEO John Watson said that, considering alternatives, “we’ve got better places to put our money.”

Other Gulf operators have followed suit. BP has reduced production costs by 20% compared to 2013 and, by the end of the year, expects to rebid some 40% of its third-party spend, including a significant portion of well service contracts. In addition, it has shed some $13 billion in assets. The company is also considering postponing its $10 billion Mad Dog Phase 2 project in the Gulf of Mexico in an attempt to get lower bids.

OSV FLEET IN PERIL As a result, the OSV industry has taken a pounding. Oil and gas producers continue to use their leverage to drive down prices. This includes a change in oil company strategy.

Operators can now limit vessel charters because the market is flooded, not only because of low oil prices but also the

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rash of overbuilding that occurred over the last decade to service the growing deepwater market.

According to AlixPartners, “the mismatch in growth rates is explained like this: as of June 30, 2015, OSV inventory increased 38% from January 2008 to June 2015, whereas rig counts increased only 5%. Moreover, as of December 2015, rig usage is down 20% worldwide from the prior year across all six major global regions.”

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The oversupply that created downward pressure on day rates and utilization is exacerbated by continuing efficiency gains by offshore operators, according to Richard Sanchez, marine analyst at IHS Energy – Petrodata MarineBase, Houston. The result is a U.S. Gulf workboat fleet with a utilization rate for vessels under contract of just 36.4%, according to IHS. The shelf has been hit the hardest, with only five jackups working in

‘I think it’s fair to say that the OSV market has been decimated at all levels, shelf to deepwater.’

Wes Bordelon President and CEO Bordelon Marine the area. The shelf is the province of smaller vessels. As of mid-March, for PSVs in the under 1,999-dwt class, only 82 of 154 vessels were working, with the majority of those working in the spot market. Only 29 were on term contracts, representing an 18.8% utilization rate, according to IHS. The next largest class (2,000 – 2,999 dwt) reported similar figures. Of the 82 boats in the class, 55 were stacked, and only 18 were working term contracts, for a 22% utilization rate. For the 3,000 – 3,999 dwt and 4,000-plus dwt classes, term contract utilization rates stood at 42.3% and 79.2%, respectively, due to demand in deepwater.

Anchor-handling tug/supply vessels (AHTS) have been hit even harder.

Three classes of smaller AHTSes have no vessels working out of a total of 13 boats.

But the problem goes much deeper than vessel cuts. “The most unfortunate casualty will be the U.S. mariner,” said Bordelon of Bordelon Marine.

“We have spent the last two decades training and building up an outstanding class of experienced mariners in the Gulf of Mexico. Safety standards have advanced further than ever before.

Now, I fear that this downturn will once again force our good mariners to seek employment in other fields. And future mariners will choose a different path.

These are the untold casualties of a recessionary market, and it is a problem that will rear its ugly head later.”

The response to this crisis by OSV operators (those who have a chance to respond) has been mixed. An estimated 35 OSVs have moved to non-drilling jobs in the Gulf, mainly in production and plug and abandonment, according www.workboat.com • MAY 2016 • WorkBoat

4/7/16 9:10 AM

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to Sanchez. Those who cannot find alternative work are stacking vessels.

This is especially true of smaller vessels, many of whose day rates are at the boat’s operating break-even point ($3k to $4k) or below. Still, stacking at $23,000 to $25,000 per month is expensive.

Many boat owners have a significant part of their fleet stacked. These owners have “pulled in the reins on everything,” said Skiles of Laborde Marine. About 40% of Laborde’s fleet is stacked under regular maintenance.

Some operators, including Chouest and Tidewater, say they are using the slack time to perform maintenance and upgrades on stacked OSVs. Others, including Hornbeck Offshore Services and Harvey Gulf International Marine, are pivoting to more multipurpose specialized vessels. Specialized upgrades include larger cranes, floatel and ROV capabilities. The upgrades generally occur on vessels under con-

Number of vessels (AHTS/PSV)

FIGURE 1: Vessel-to-rig ratio, 2008-15

June 2015

-

Rigs-to-vessels factor

AHTS = anchor-handling-tug supply vessel, PSV = platform supply vessel Source: ODS-Petrodata and Tidewater presentations

struction, and can often delay delivery by a year or more, buying additional time for market improvements.

Bordelon Marine also launched a new line of specialized boats, the ultra light intervention vessel (ULIV). “The industry is seeing the benefits of the ULIV concept,” Bordelon said. “We are winning contracts, and I believe we will continue to find this success

through 2016.”

Despite all of these actions by OSV operators, the big question is still when the downturn will end and how solid the recovery will be?

While many might agree with Sanchez, who describes the outlook for market improvement as “sketchy,” or Skiles who said, “there is a lot more blood to be spilled,” a few are guard-

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edly optimistic.

One of those is Brooks, who believes that “the debt crisis will only get worse this year.” But he added that the current scenario has an upside. “Less spending and less access to cash means less oil and gas development activity which, in turn, slows production and drives up oil and gas prices, spurring spending once again,” he said. “For the OSV market, this means fewer vessels overbalancing the market which will drive up day rates.” The only hang up is the timing, according to Brooks. “Had the debt crisis happened in 2015, we might be seeing some recovery now. As it is, recovery will now be forced back to 2017 or 2018.”

Bordelon noted that the mantra should be “stay lean till ‘18.” But, like Brooks, he is cautiously optimistic noting that, “our industry will return. And when it does, the Gulf will be a more competitive and stable market.”

Timing is important. “If we see some

The ULIV Brandon Bordelon, (pictured) and its sistership Shelia Bordelon both entered service in 2015.

recovery within 18 months, the crisis could get only marginally worse,” said Jackson Offshore’s Rigdon. But if the recovery takes longer, he said, the situation could get much worse.

To fully recover, Rigdon said it would require at least 50 rigs drilling in the Gulf that would, in turn, require $65-bbl. oil. While that environment would certainly spur OSV demand, putting boats back in service that have

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been stacked for 24-to-30 months may present another dilemma due to crewing problems and equipment reactivations and upgrades (engines and electronics) in addition to drydocking and mandatory inspections.

This, Rigdon noted, may take longer and cost more than many expect, further delaying the return of portions of the OSV fleet.

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Firefighting Equipment

Fire Wall

Common sense and modern technology can prevent most onboard fires.

By Michael Crowley, Correspondent

52

WB_BG_Fire_LINO.indd 52

P

oor maintenance, electrical issues and sloppy housekeeping are three things that Doug Dillon cites as common causes of an onboard fire. Dillon is the executive director of the Tri-State Maritime Association in Camden, N.J., that, among other things, conducts hands-on training programs for mariners on how to put out fires.

The majority of fires start in the engine room, said Dillon, where it’s hot and a lot of flammable liquids are located. If a bearing overheats because it’s running in dirty oil, that could cause a problem. “If there’s a lot of oil around, it could cause ignition,” he said. “That’s a housekeeping issue.”

Another example of poor housekeeping involved a tug whose crew stored a lot of rags and other class-A combustible materials around the stack of the tug, Dillon said. “It gets very hot

there.” That’s where the fire started.

When a fire starts, it’s likely to quickly get out of control if the crew doesn’t know “their firefighting responsibility until they put the fire out,” said Dillon, “or have to call for additional resources.”

KNOW WHAT TO DO Not knowing what to do when there’s a fire usually leads to an unpleasant outcome. Take the case of the Marguerite L. Terral, a 3,000-hp towboat that was pushing 12 empty barges on the Mississippi River in 2012. As recounted in the National Transportation Safety Board’s “Safer Seas 2014, Lessons Learned From Marine Accident Investigations,” the Terral’s port engine caught fire. An alarm sounded in the wheelhouse and the towboat had a fixed fire suppression system for the engine

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Flame Guard USA

room, but flames prevented the CO2 system from being activated in one remote station. The fire suppression system could have been activated at another station but the crew didn’t attempt to do so.

An effort was made to control the fire with portable fire extinguishers, but that didn’t work because ventilation to the engine room allowed oxygen in to fuel the fire. The engine room doors weren’t closed.

Finally the crew evacuated the towboat for one of the barges. Only after local responders and the crew from another towboat arrived was the fire put out. Damage was an estimated $2.6 million.

The NTSB couldn’t determine the fire’s cause, but said, “contributing to the extent of the fire damage was the crew’s failure to set fire boundaries, shut down the ventilation, and use the onboard fire suppression equipment effectively.”

As a result of the fire, the Coast Guard issued Safety Alert 05-12, “Pres-

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WB_BG_Fire_LINO.indd 53

sure Switch Location for Fixed Fire Suppression Systems.” It emphasized that control switches for fire suppression systems should not be located in the space they are designed to protect.

The NTSB has warned the industry about “self-heating” and “fire ignition” materials onboard vessels of any type.

According to the NTSB, “selfheating is a process in which heat is created within a material through a biological or chemical process and without the application of an external heat source. If self-heating increases the temperature of the material above its ignition point with sufficient oxygen present, self-ignition can occur. Sufficient air must be present to sustain the combustion reaction, but not so much air that the heat is dissipated. Common examples of materials that can selfheat or self-ignite are linseed oil rags, coal dust, hay, wood chips, manure and latex.”

TOOL BOX Different kinds of workboats employ different types of firefighting systems.

No matter the system, it is only as good as the person operating it.

Today, a handy tool to have onboard if the boat doesn’t have an engine room fire suppression system or the fire starts in another compartment is Flame Guard USA’s X-Tinguish FST (fire suppression tool).

This is an improved version of Flame Guard’s DSPA-5, which is no longer available.

In a test at Fremont Maritime Services in Seattle, the DSPA-5 put out a simulated engineroom fire in seven seconds and a galley fire in six seconds, using the center’s vessel mock-up, the Fire Dragon.

The X-Tinguish FST “is absolutely as effective or more effective,” said Jim Mackey a partner at Flame Guard USA. “It works on the same premise as the DSPA-5 but with a lot of improvements.”

When there is a fire in an enclosed

’If there’s a lot of oil around, it could cause ignition.‘ Doug Dillon Executive Director Tri-State Maritime Association space, such as the engine room, open the door and while holding the X-Tinguish FST in one hand, pull the yellow pin with the other hand. Then toss the X-Tinguish FST into the room and shut the door. There’s an eight-second delay from the time you pull the pin until the X-Tinguish FST is activated. After that, the fire should go out within seconds.

The X-Tinguish FST is electronically activated. When you pull the pin, it closes the circuit. That’s a lot safer then the DSPA-5’s pyrotechnic igniter that came out as a 700° flame.

A feature that’s been added to the XTinguish FST since it was released last summer is an LED light in the handle.

“When the pin is pulled, the LED lights up to let the person know it’s activated,” said Mackey.

Figure that it can be very noisy with an onboard fire. When the X-Tinguish FST’s pin is pulled it’s accompanied by a “pop” sound. Conceivably you could pull the pin, get distracted, and forget that it was activated. But when the LED light goes on you know the X-Tinguish FST has been activated and you better toss it. The LED “takes the background noise out of it,” said Mackey.

The X-Tinguish FST is a powdered aerosol fire extinguishing system with particles that are less than the size of a red-blood cell. “At the molecular level it doesn’t allow oxygen to bond with the energy or heat,” said Mackey.

“Therefore, you can have a fire that will literally be put out in seconds.”

Yet the oxygen level in the space is not reduced.

When the fire is suppressed, it’s prevented from reigniting because the aerosol cloud stays buoyant in an enclosed space for up to an hour. Clean up should be minimal and machinery shouldn’t be damaged since the aerosol 53

4/5/16 1:38 PM

Firefighting Equipment is non-corrosive.

The X-Tinguish has enough fire suppressant material to cover about 5,300 cu. ft., approximately 1,500 cu. ft. more than the DSPA-5.

A key to quickly extinguishing a fire is to first know that there is one and then where it is. That requires a good detection system. Sea-Fire Marine recently came out with such a product, the Triton 2 Fire Detection Panel, a compact version of the company’s

Triton 8.

The Triton 2 can monitor up to 252 heat, smoke and flame sensors at once, what those in the fire detection business call addressable devices.

“The difference between addressable devices and non-addressable or conventional fire detection devices is that with addressable devices the control panel tells you exactly where the location is and which detector

The Triton 2 can monitor up to 252 heat, smoke and flame sensors.

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it is,” said Sea-Fire Marine’s president Ernie Ellis.

So you know if it’s smoke, flame or heat — as long as that type of device is in the space where the incident is taking place — and what part of the boat it’s in. Thus you know the type of incident you are dealing with before you get there.

The Triton 2 not only detects firerelated incidents, it will identify things that can lead to a fire such as insulation faults, short circuits and cable breakage. Plus it warns you if any of its sensors are malfunctioning.

Once an incident happens, an alarm goes off at the control panel. If the alarm is connected to a horn or strobe, which is, say, on deck or in the engine room, it will also go off. If you want to shut down a device in an area where you are working, you can do that.

Ellis said that the Triton 2 and Triton 8 are the only detection products like it for the marine market.

Put all those things together — a detection system, a fire-suppression system and a well-trained crew, and you’ve got a good chance to extinguish a fire before it gets out of control.

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ASSISTANT ENGINEER: Minimum Qualifications: - Degree from Maritime Academy or Chief Engineer unlimited preferred - STCW w/ security endorsement - TWIC, Passport BARGE TANKERMAN Minimum Qualifications: - AB rating, Tankerman PIC (BARGE) - STCW w/security endorsement, Passport, TWIC AB DECKHAND Preferred Qualifications: - Academy Graduates - 2+ years tug experience, STCW w/security endorsement, TWIC, Passport

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• • • • • • •

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Here is what Employment Dann Advertisers are saying about WorkBoat Classifieds “Intracoastal Marine, Inc. found our ad placed in WorkBoat Magazine to be very beneficial. We saw a marked increase in applications as well as the quality of the applicants. Intracoastal Marine, Inc. will most certainly choose this avenue of advertisement in the future when our needs arise.”

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the news and information To Apply Please Visit you need, when www.DannOceanTowing.com you need it.

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24/7 access to important industry resources.

Become a member today.

Please contact Adam Shaw (800) 842-5603 ashaw@divcom.com 56

WB16_Classifieds_May.indd 56

www.workboat.com • MAY 2016 • WorkBoat

4/6/16 11:54 AM

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www.workboat.com • MAY 2016 • WorkBoat

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57

253-858-8481 FAX 253-858-8486 www.TheTankTender.com WB16_Classifieds_May.indd 57

4/4/16 12:52 PM

PortofCall

Your Source For Employment, Equipment & Services MARINE GEAR & SUPPLIES

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Adam Shaw • 800-842-5603 • ashaw@divcom.com 58

WB16_Classifieds_May.indd 58

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www.workboat.com • MAY 2016 • WorkBoat

4/4/16 12:52 PM

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www.workboat.com • MAY 2016 • WorkBoat

WB16_Classifieds_May.indd 59

HEAVY DUTY VATS FOR FISHING, FARMING, BOATS AND TRUCKS.

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GILBERT ASSOCIATES, INC. Naval Architects and Marine Engineers 100 Drive, Suite 205,Hingham,MA Braintree, MA02043 02184 350Grossman Lincoln St.,Suite 2501, Tel:(781) 740-8193 | Fax:(781) 740-8197 E-mail:jgilbert@jwgainc.com www.jwgainc.com

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PortofCall

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60

WB16_Classifieds_May.indd 60

• QMED • Assistant Engineer & DDE • Chief Engineer

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www.workboat.com • MAY 2016 • WorkBoat

4/4/16 12:52 PM

To advertise send details to: classifieds@workboat.com or call: 1-800-842-5603 SERVICES

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•

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www.workboat.com • MAY 2016 • WorkBoat

WB16_Classifieds_May.indd 61

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PortofCall

62

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Your Source For Employment, Equipment & Services

www.workboat.com • MAY 2016 • WorkBoat

4/7/16 4:16 PM

To advertise send details to: classifieds@workboat.com or call: 1-800-842-5603 ADVERTISERS INDEX Advertiser

Page

Ahead Sanitation Systems Inc . . . . . . . . . . . . . . . . . . . 12 All American Marine . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Blount Boats Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Brunswick Commercial & Gov't Products . . . . . . . . . . . 47 CENTA Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 David Clark Company Inc . . . . . . . . . . . . . . . . . . . . . . 18 Duramax Marine LLC . . . . . . . . . . . . . . . . . . . . . . . CV3 Eastern Shipbuilding Group . . . . . . . . . . . . . . . . . . . . . 49 ExxonMobil Marine Fuels & Lubricants . . . . . . . . . . . . . 5 FCI Watermakers Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Federal Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Force Control Industries Inc . . . . . . . . . . . . . . . . . . . . . 26 Fremont Maritime Services . . . . . . . . . . . . . . . . . . . . . . 4 FROSCH International Travel . . . . . . . . . . . . . . . . . . . 40 Furuno USA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Great American Insurance Group . . . . . . . . . . . . . . . . 10 Hamburg Messe und Congress . . . . . . . . . . . . . . . . . . 23 Hamilton Marine Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Harris Electric Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Imtra Corp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 International WorkBoat Show . . . . . . . . . . . . . . . . . . . 54 Jackson Offshore Holdings LLC . . . . . . . . . . . . . . . . . . 7 Japan Radio Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . 15 JMS Naval Architects . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Karl Senner, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . CV4 Louisiana Cat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Marine Machining & Mfg . . . . . . . . . . . . . . . . . . . . . . . 12 Mast Products/E-LED Lighting Inc . . . . . . . . . . . . . . . . 42 McDermott Light & Signal . . . . . . . . . . . . . . . . . . . . . . 33

Advertiser

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www.workboat.com • MAY 2016 • WorkBoat

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Page

McNichols Company . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Metal Shark Aluminum Boats . . . . . . . . . . . . . . . . . . . 42 Motor-Services Hugo Stamp Inc . . . . . . . . . . . . . . . . . 21 MTU America Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Nabrico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Nautican . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Ocean Charting Services . . . . . . . . . . . . . . . . . . . . . . 45 Omnithruster Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Palfinger Marine GmbH . . . . . . . . . . . . . . . . . . . . . . . . 50 Panolin America Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Power Panels, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Renishaw Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Research Products/Blankenship . . . . . . . . . . . . . . . . . 34 R M Young Company . . . . . . . . . . . . . . . . . . . . . . . . . . 20 R W Fernstrum & Company . . . . . . . . . . . . . . . . . . . . . 13 Scania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CV2 Smith Berger Marine Inc . . . . . . . . . . . . . . . . . . . . . . . 38 Texas A&M Engineering Extension Service . . . . . . . . . 51 Thordon Bearings Inc . . . . . . . . . . . . . . . . . . . . . . . . . 19 TMS - LevelCom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Total / Lubmarine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Volvo Penta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 W & O . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Washington Chain & Supply Inc . . . . . . . . . . . . . . . . . 43 Waterways Journal Inc (The) . . . . . . . . . . . . . . . . . . . . 46 West Kentucky Community & Technical College . . . . 43 Xylem Inc./Flygt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Yanmar America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 ZF Marine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Utility Boats Work Boats Marine Engines Marine Gearboxes Shafts Propellers

From sunrise to sunset, the news and information you need, when you need it.

24/7 access to important industry resources.

Become a member today.

CALL FOR A COMPLETE LIST OF INVENTORY AND PRICING

Contact us at (985) 209-2236 or www.sea-sales.com

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LOOKS BACK MAY 1976

• Sen. James Buckley, R-N.Y., has introduced a bill which would impose a four-cents-a-gallon user tax on fuel used by commercial vessels on the inland waterways. Buckley also introduced legislation that would require major replacement projects proposed by the Corps of Engineers be submitted to Congress for approval. The bill would also

eliminate language that prohibits the imposition of tolls for use on the inland waterways.

• The government’s proposal to cut in half the replacement of Locks and Dam 26 at Alton, Ill., “is a classic example of planned obsolescence,” said James Randall, co-chairman of the National Committee on Locks and Dam 26.

“Limiting the transit capacity at one of the busiest intersections of the inland waterways MAY 1986 system is like building a

single runway to serve Chicago’s O’Hare Airport.” Randall added that “by the time construction is completed on the limited replacement, we will be already dangerously close to the 86-million-ton capacity that it could handle.”

• Zapata Gulf Marine Corp. gives Houston-based Zapata Gulf a completed the acquisition of Seahorse fleet of 423 vessels.

Inc.’s assets, including 92 offshore ser• The Mississippi Queen was revice vessels. The purchase is “one more launched in April after undergoing an step in the ongoing consolidation of the estimated $500,000 in repairs at Avonoilfield service industry,” said Kenneth dale Industries, New Orleans.

W. Waldorf, Zapata Gulf’s chairman and CEO. “The realities of today’s offshore marketplace favor the economies of scale and cost-effectiveness that can come with larger fleets.” The addition of MAY 1996 the Seahorse vessels • On the New Orleans waterfront in March, E.N. Bisso & Son Inc. held a triple christening for its newest tugs.

The threesome, the Capt. Bud Bisso, Jackie B. and Dee White, are all powered by twin GM-EMD 16-645 E6 diesels developing 2,100 hp each at 900 rpm.

• Gulf of Mexico offshore service vessel day rates are at all-time highs, 64

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topping even levels seen in the boom years of the late ‘70s and early ‘80s, according to several Louisiana operators.

“I’ve been in this business for 34 years and have never seen rates this high,” said Linwood Terrebonne, general manager at L&M Botruc Rental Inc. “It worries me that rates are rising so fast.

It may cause another round of overbuilding, like we saw in the 1980s.” www.workboat.com • MAY 2016 • WorkBoat

4/7/16 9:04 AM

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WEST COAST Karl Senner, LLC. Seattle, WA (425) 338-3344

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PADUCAH SERVICE FACILITY Karl Senner, LLC. 2401 Powell Street Paducah, KY

GULF COAST HEADQUARTERS Karl Senner, LLC. 25 W. Third St. Kenner, LA (504) 469-4000

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