Thursday, June 15, 2000

Mosvold back in VLCC newbuilding market

Norway's Mosvold Shipping has signed an agreement with Samsung Heavy Industries for a 308,000 dwt VLCC for delivery in August 2002. The agreement includes an option for a second ship for delivery second half 2003. The contract price of the firm vessel is $72.5 million with 30% to be paid before delivery and the balance upon delivery. The agreement is subject to board approvals by the company and the shipyard as well as the terms of a shipbuilding contract. The shipbuilding contract must be completed by the parties within the middle of July this year. The option for the second vessel must be declared within four months after signing of the shipbuilding contract. The price for the option vessel is $74.1 million.

Mosvold intends set up a limited partnership, in which it will own a minority share, to own the shipbuilding contract and the option.

Mosvold and Samsung signed a similar agreement in April this year . It became firm at the end of May. A Norwegian limited partnership, 52.8% owned by Mosvold, was nominated as the owner of the vessel (first vessel) and the option (first option) The price of the first vessel is $72 million and of the first option $74.1 million. The first option must be declared within the second half of November 2000.

$127.8 million contract for Southwest Marine
Southwest Marine Inc., San Diego, Calif., is being awarded a $127,826,488 cost-plus-award-fee contract for the AGF 11, LPD 4, and LSD 36 class phased maintenance programs. Work will be performed in San Diego, Calif., and is expected to be completed by October 2005. Contract funds in the amount of $197,453 will expire at the end of the current fiscal year. This contract was competitively procured through the internet with two proposals solicited and two offers received. The Naval Sea Systems Command, Arlington, Va., is the contracting activity (N00024-00-C-8505).

Blast off coatings ... on your PC
It may sound like a computer game for coatings contractors, but the Paintblaster is actually a training and educational tool for specifiers and field personnel. Beta-1 Test is available free for limited time.

When old coatings are being removed, are you having difficulties training inspectors and field personnel on "brush off" or WJ-4, thorough or "commercial" cleaning or "30 percent coverage/staining" or WJ-3, very-thorough or "near-white" cleaning or "5 percentage coverage/staining" or WJ-2, and clean to bare substrate or "white metal" cleaning or WJ-1?

Do you have difficulties understanding the amount of time and productivity rates, it takes to achieve the different visible degrees of cleanliness and the economics of changing from one level of cleanliness to another?

In its BETA form, Paintblaster is an extremely simple program designed to simulate various degrees of coverage by paint left on the surface during the cleaning process. The program displays a clean but somewhat rough steel substrate at an approximately "1 to 1" scale on the monitor screen. You can "formulate" your paint in a separate window (the paint chip) until you achieve the color desired. You then "mix and apply" the paint to the steel surface. The coating takes on some of the
characteristics of the rough substrate simulating maintenance coatings over
rough steel.

The ACTION. You can "BLAST" the paint off. The effect is controlled by
selecting the maximum size of chip of paint you expect might come off in a
pass of blast media. Even through circular chips are used in this BETA
release, as the percent coverage approached fifty percent or less, the
resulting 'surface' look startlingly like many archive photographs of
partial removal of paint by water jetting or blasting,.

Future releases with more features are planned. Meantime, you can download PaintBlaster BETA-1 from

LNG come back
Pipelines giant Williams (NYSE:WMB ) has finalized its acquisition of Cove Point LNG Limited Partnership from affiliates of Columbia Energy Group for approximately $150 million. This sets the stage for the reopening of the Cove Point LNG import facility in Cove Point, Md, the largest of the four U.S. LNG import terminals built in the 1970's.

U.S. imports of LNG were up 90% last year. The CMS Energy Corp port and regasification terminal at Lake Charles, La., handled 27 incoming LNG cargoes last year compared with 17 in 1998 and has already received or contracted for 35 cargoes so far this year.

Cabot Corp. received 44 cargoes at its terminal near Boston last year, up from 18 in 1998, as shipments started from Trinidad and Tobago under a 20-year supply contract.. Import volumes through the terminal, which is running at 60-70% of capacity, are expected to grow 10%-20% this year.

While Williams is planning to reopen Cove Point, El PasoEl Paso is scheduled to reactivate the terminal at Elba Island, near Savannah, Ga.

LNG accounted for under 1 percent of total U.S. gas consumption last year, but some analysts believe it could reach 5 %-8% percent if the four plants were expanded.

Williams anticipates filing in the near future an application for authorization to provide LNG tanker discharging service, to recommission Cove Point's marine facilities and to construct new facilities including a new LNG storage tank. Williams plans to connect the Cove Point facility to its existing Transco pipeline.

No getting away from recycling
Some cruise lines offer you rock climbing at sea. Holland America Line offers you recycling. It says it is "the only line to place receptacles in staterooms for passengers to sort recyclable materials from trash." Holland America passengers are also encouraged to reuse bath towels, thus reducing the amount of water consumed by the laundry.

Cruise lines are coming under increasing environmental scrutiny. The subject will be high on the agenda at this year's Marine Log Maritime Legislation, Regulation and Policy conference in Washington D.C. on September 19 & 20.

Meantime, lines are keen to emphasize the steps that they are taking to demonstrate environmental good citizenship.

Holland America, for example, has a comprehensive fleetwide program which emphasizes waste reduction and recycling, compliance with all international environmental guidelines and a decision to incorporate cleaner-burning propulsion technology into its new ships. The line currently meets or exceeds all provisions of the international regulations governing the environmental management of marine operations.

Since announcing the placement of a firm order for what is now five additional 84,000-ton vessels with Italy's Fincantieri for delivery from 2002 - 2005, Holland America has confirmed the ships are being designed with a traditional diesel-electric power plant, as well as a gas-turbine unit to serve as a second power source. Gas-turbine technology reduces exhaust emissions and can be used together with the diesel-electric system when cruising in particularly sensitive areas such as Glacier Bay or the Baltic Sea.

In addition, the ships will be outfitted with the Azipod propulsion system, which is estimated to reduce consumption -- and thereby emissions -- by as much as 40 tons of fuel per week.

"Coupled with our comprehensive environmental programs, the new propulsion system will make our new ships among the cleanest operating in the industry," said Kirk Lanterman, chairman and CEO of Holland America Line. "Our commitment to environmental sensitivity and responsibility extends throughout the company."

Lanterman pointsout that though the decision was taken to include the gas-turbine system on the new ships, other alternatives would be considered if they would reduce emissions.

"Carnival Corporation and Holland America are collaborating with Wartsila NSD on 'project enviroengine,' a new technology that would create a smokeless diesel-electric system," he saiys. "If that technology proves to be viable, we would certainly consider using it in our newbuilds and possibly retrofitting our existing fleet."

Holland America has a history of embracing new environmental technologies.

A gray-water (water from showers and sinks) treatment plant currently is being tested aboard the Statendam. Although it is legal to discharge gray water under certain conditions, Holland America is seeking a treatment system that will render gray water virtually free of detergents and other substances before discharge. If the prototype proves successful, the line plans to install the unit on all of its ships.

The entire Holland America fleet also is equipped with on-board storage facilities that can treat and hold solid waste for up to 14 days.

A pioneer in on-board recycling, Holland America implemented a comprehensive recycling program in 1993. Currently glass, aluminum, white paper, wooden pallets, plastic buckets, cardboard, cooking oil and photographic silver are recycled. The line works with suppliers to reduce the amount of packaging materials coming onto the ships and specifies that in-cabin amenities be packaged in recyclable plastic.

Each Holland America ship has a staff of five crew who are responsible for processing, storing, recycling and disposing of the approximately eight tons of garbage generated on board each ship every seven days. As an incentive, proceeds from recycled materials are added to the shipboard crew benefit fund.

Even on Half Moon Cay, Holland America's private island in the Bahamas, great care was taken not to upset the natural ecology of the island. Only 2 percent of 2,400-acre Little San Salvador was developed to accommodate the line's shoreside facilities, and those facilities are designed to minimize environmental impacts on the island bird sanctuary.


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