Matson raises $200 million
SEPTEMBER 15, 2016 — Jones Act operator Matson, Inc. (NYSE: MATX) yesterday reported the issuance of $200 million in privately placed 15-year final maturity senior unsecured notes. The notes will have a
SEPTEMBER 15, 2016 — Jones Act operator Matson, Inc. (NYSE: MATX) yesterday reported the issuance of $200 million in privately placed 15-year final maturity senior unsecured notes. The notes will have a
Independent commodity trader Trafigura Group, through its subsidiary Impala, is investing $1 billion in creating the infrastructure for a new multimodal supply chain in Colombia that can transport crude, naphtha, break-bulk cargo, containers, and oversized cargo up and down the country’s main waterway, the Magdalena River.
Impala Colombia currently operates a terminal in the seaport of Barranquilla, where the Caribbean Sea meets the Magdalena River. Some 630 kilometers south of Barranquilla on the Magdalena River, Impala is investing some $450 million in developing a new state-of-the-art inland river port in Barrancabermeja. The inland river port will have an oil terminal with six tanks that can store 120,000 bbls each and a general cargo and container terminal. The port will serve as an intermodal connection between river transport and truck transport. Impala’s fleet of barges will ship product to and from major crude oil production sites as well as major cities such as Bogotá or Medellin.
In addition, Barrancabermeja will also serve as a seaport with bills of lading possible to connect directly with international ports such as Rotterdam or Shanghai.
Part of Impala’s investment includes a fleet of new towboats and barges. Impala’s growing Colombian fleet includes at least 15 new towboats and 68 liquid barges and 45 dry cargo barges. The tank barges are double hulled, with vapor recovery systems for environmental responsibility and safety and can carry up to 10,000 barrels of oil.
This past summer, Eastern Shipbuilding, Panama City, FL, launched the Impala Soledad and Impala Puerto Salgar, the first two in a series of four inland river towboats for IWL River Inc., an affiliate of Impala Terminals Colombia.
Designed by CT Marine, the towboats are are being built to ABS Class Inland River Service. Eastern Shipbuilding expects to finish delivering the boats in 2017.
Impala Soledad and Impala Puerto Salgar along with the other sister vessels in the series, the Impala Mompox and Impala Catagallo, will each be 134 feet long, 42 feet wide, with a depth of 9 feet and minimal operational draft of 6 feet.
Each towboat will be triple screwed, with three Caterpillar 3512C main diesel engines, certified to IMO Tier II. Each will produce 1,280 hp at 1,600 rev/min for a total of 3,840 hp. Karl Senner, Kenner, LA, supplied the three Reinjtes WAF665 reduction gears.
The towboat’s auxiliary power is supplied by two Caterpillar C6.6 125 kW, 220-volt, 3-phase main generators.
The Panama flag vessel will be classed ABS +A1, Towing Vessel, River Service, +AMS, ABCU.
CT Marine also designed the towboats to have a retractable pilothouse. When fully raised, the pilothouse will have a 37 foot 6 inch eyelevel above the waterline. Towboats designed with retractable pilot houses can pass under low fixed bridges along their route. The deckhouse is confined to a single level and only the pilothouse is extended atop a hydraulic ram. When raised, the pilothouse provides excellent visibility for the master to see over top his tow.
NEW TOWBOAT FOR FMT
Another new towboat built with a retractable pilothouse was Florida Marine Transporters’ M/V Marty Cullinan. Built by Horizon Shipbuilding, Bayou La Batre, AL, the M/V Marty Cullinan has an ABS Load Line Certificate to operate in the waters between Chicago to Burns Harbor for fair weather voyages.
The 387 gt towboat is outfitted for service in areas with restricted overhead clearances and draft limitations. With the pilothouse fully retracted, the maximum air draft is 17 ft 8 in.
The 120 ft x 35 ft x 11 ft 6 in vessel is of all steel construction and powered by two Caterpillar 3512 engines, each rated at 2,011 hp at 1,600 rev/min with Twin Disc gears. The boat is outfitted with two 175 kV Tier 3 John Deer 6090 460 V gensets.
Sleeping accommodations and facilities are provided for eight persons and sound dampening systems have been implemented throughout the main deck house.
The towboat was built in 14 months. Project Manager Terry Freeman, who managed the construction of the vessel, said, “Our team exceeded all expectations with regard to the timely production and quality work on this build especially given the new design, ABS requirements and technical expertise required for the retractable pilot house.”
Jeff Brumfield, Senior Manager of Boat Construction and Engineering for FMT said, “We are thoroughly pleased with the boat, and when I talk to the Marty Cullinan crew they are quick to note that she is smooth and very quiet. The sound dampening package has exceeded our expectations.”
“We have worked hard to build one of the best boats on the river and we consider ourselves fortunate to have teamed with FMT and John J. Gilbert to do this,” said Travis Short, President of Horizon Shipbuilding. “Horizon has been building FMT boats for almost a decade and in that time we have been able to assemble a team of master craftsmen that produce a superior product. All the praise goes to those men and women in the yard, taking care to do the job right the first time while working safe, working hard and working together.”
Horizon has two more 120 ft FMT towboats, one standard and the other with a retractable pilothouse, in production with deliveries scheduled for this fall and the spring of 2017.
“LADY” KEEPS ON KEEPING ON
The M/V Lady Loren doesn’t have a retractable pilothouse, but does have a raised one that provides an eyelevel of 35 feet above the waterline. Back in 2008, LA Carriers built the pusher tug Lady Loren at Lockport Fabrication. At the launch, LA Carriers President Russell Plaisance explained that the boat was the result of five years of planning and a lifetime of maritime experience in the Gulf of Mexico. The 82 ft x 28 ft Lady Loren was the seventh boat in the LA Carriers fleet.
For Plaisance at the time, a key element of his business was diversification. “We do $10 million to $11 million [in gross revenue] per year including some business with the oil industry,” he said, “but we do a little of everything else as well. We barge pipe and we once even towed baseball dirt from Houston to Tampa Bay for spring training. This new boat has a contract to tow corn syrup from Memphis to Tampa Bay.”
Now eight years later, the corn syrup contract has dried up—the plant has been converted to other products. But LA Carriers’ diversity has kept the company healthy even during the current slump in the oil industry.
The Lady Loren, with both towing and pushing capabilities, is currently engaged moving a pair of hopper barges on a run between New Orleans and Tampa.
The Lady Loren is a triple-screw tug powered by three Cummins QSK19-M3 diesels rated at 660 hp each to give a total of 1,980 hp. The engines turn three 63 by 67-inch propellers in kort nozzles.
“The engines had 36,000 hours on them so I decided to rebuild the middle engine,” says Plaisance. “Without removing the engine, my crew, together with Cummins mechanics replaced the shaft bearings, pistons and rods, heads and injectors. When we looked at the wear on the parts that came out of the engine we realized that they could easily have given us another 4,000 hours with no risk of down time.”
As a result, he feels confident in leaving the rebuild of the two outside engines for another year by which time they will have a remarkable 40,000 hours each. Crediting Cummins quality, Plaisance also has a very proactive service and maintenance program on the engines. Oil is changed regularly, and injectors adjusted every 10,000 hours.
LA Carriers has changed some of the fleet in the eight years since the Lady Loren was first launched and they have several different engine makes among its seven boats. Plaisance is unreserved in his praise for the Cummins engines. “In future, if I have to replace an engine in one of my other tugs, it will be with Cummins,” he says.
When it came time to upgrade the autopilot system in four Victoria-Class long-range patrol submarines, Canada’s Department of National Defence (DND) assembled a consortium including three federal government departments—National Research Council of Canada (NRC), DND, and Defence Research and Development Canada (DRDC)—and L-3 MAPPS of Montreal, the contractor that is supplying the control and simulation solutions for the new system. The builds of HMCS Victoria, Windsor, Chicoutimi, and Corner Brook began in the mid-1980s, so the original autopilot system has become obsolescent. The submarines are transitioning from point-to-point wiring to modern digital data bus communications.
The system includes an operator console, computers, and electronic enclosures. The computers receive data on depth, course, speed, pitch, roll, and heading from transducers, calculate, and send values to the rudder and hydroplanes’ control surfaces. When engaged, the new autopilot system will automatically adjust and compensate for any disturbance that could affect the submarine’s set course through the water, advises DND, either on the surface or when submerged. The autopilot system is independent from the ballast control system.
Built in the UK for the Royal Navy, the diesel-electric-driven submarines were bought by the Canadian government in 1998, after the Royal Navy decided to convert to an all-nuclear fleet. The first vessel slated for conversion to the new autopilot system is HMCS Windsor. She measures 70.3 meters long by 7.6 meters across the beam, and has a maximum operational depth greater than 200 meters. Displacement is 2,220 tons surfaced and 2,439 tons submerged, and maximum submerged speed is 20 knots.
David Millan, Senior Research Council Officer at the National Research Council of Canada in St. John’s, Newfoundland, has worked on the autopilot replacement project since 2012. The first order of business was to help develop the specifications for the autopilot control system. Then, on behalf of DND, he and his team evaluated three proposals for providing the simulation and control solutions. L-3 MAPPS was awarded the contract. Millan was aboard HMCS Victoria for 10 days off Halifax to collect full-scale baseline data on the existing autopilot system. When the new system is installed, the baseline data will be used to gauge its performance. Next, DRDC provided a numerical model which Millan and his team modernized, added an external interface, and used to provide an independent evaluation of L-3 MAPPS’ autopilot algorithm software. They then simulated the interaction between the numerical submarine and the numerical autopilot to commands such as “Do a turning circle”, “Hold a straight line”, and “Change depth”, and observed the movements of the simulated submarine. There were criteria for each maneuver such as accuracy in meeting the set point and course keeping. They also combined maneuvers, such as both changing depth and turning. They recommended improvements, which were quickly addressed by L-3 MAPPS. Millan notes that the new autopilot system has “a very snazzy interface” which emulates the old one, even though the technology has changed from push buttons to touch screens.
NRC’s tow tank which is 200 meters long by 12 meters wide by 7 meters deep—the largest in Canada—is used to test ships, marine components, assemblies, and software in varying current, wave, wind, and water conditions. Millan and his fabrication team spent five months building a model submarine for testing. It is 4.5 meters long by 6 meters, 1.1 meter from keel to top of sail, and weighs 670 kilograms. The model is comprised of: the nose assembly, containing the forward hydroplane system; the mid-body assembly, an aluminum pressure housing for the control and communication systems, support electronics, batteries, and sensors; the aft water-tight housing for the propulsion, rudder and aft hydroplane systems; the sail section for antennas and positioning systems; and a ballasted keel.
Dr. Jim Millan, NRC Director of Research and Development, explains that according to Froude scaling laws, the 1-to-15-scale model submarine they built measures 1/15th of the real submarine in each dimension. The model’s weight and propulsion power are 1/3375th of the actual submarine; the speed is one-quarter of the actual vessel, and events in model-scale time happen four times faster than at full scale (e.g., it can turn around in ¼ of the time). The model’s maximum submerged speed is 2.6 meters per second, and maximum power is 11 kilowatts.
In 2014, one week was spent in initial testing and commissioning, and a second week was spent conducting 14 operational tank tests in calm water, and also with seas coming from the bow and stern, with various wave heights, and with three different boat speeds. The tests included surfacing, diving, maintaining depth, and snorkel depth in various wave fields. The data from the physical model was used to improve the numerical model, which will be used in submariner training and also to generate data to assist operators.
Dr. Francois Belanger, Project Engineer for L-3 MAPPS, and DND project manager Hans Pall were involved in the model testing. The model submarine was operated wirelessly. The autopilot algorithm running on a PC on the shore controlled the hydroplanes on the model submarine. “For a PhD, Dr. Belanger is an immensely practical fellow,” observes David Millan. “He was able to change the autopilot on the fly to reflect the analysis of each run. I haven’t seen that done before: improving the algorithm while running the model.” He added that the DND project manager saw the model testing as an opportunity to advance the autopilot’s capabilities as much as possible before testing at full scale. Model testing also enabled them to acquire data on boat maneuverability and hydrodynamic characterization, information that was not transferred to DND when the submarines were acquired.
The old autopilot system’s use was captain-dependent, notes David Millan. The autopilot controlled the hydroplanes, but operational preferences determined whether or not the captain adjusted them manually. “Submarines around a certain speed, enter a transition zone going from maintaining depth in one mode to another mode,” explains Millan. “As you go faster, the hydroplanes move in opposite directions” (compared to moving in the same direction when moving slower), which is why the helmsman may choose to manually take control. The intelligent algorithm in the new autopilot system allows for adaptability, depending on the speed and performance of the vessel. It should be able to feel the boat and how it’s performing—to the extent that a machine can—says Millan, and change control modes as required. “It’s hard to do that with the old-fashioned hard-wired system,” he adds. “I hope it will be used in all of the cases where it’s operationally applicable. It will reduce the load on the helmsman.”
Reflecting on the importance of ensuring the numerical model is accurate, Dr. Jim Millan says, “That data potentially becomes a life and death decision-making tool. Knowing the capabilities of your submarine and being informed of its maneuverability and ability to escape or avoid harm, that’s what it’s all about. That’s what we do for the Navy. It’s safety and performance.”
Factory acceptance testing of the new autopilot equipment sets is complete. Ten days of sea trials are planned for October 2016 to complete characterization of the Windsor before the new equipment set is installed in early 2017. Sea acceptance tests are planned for spring 2017.
SEPTEMBER 14, 2016 — BIMCO says that shipyards are falling victim to deteriorating conditions in the dry bulk, container and offshore markets, with 2016 looking to set the record for the lowest
The commercial fishery has been part of the lifeblood of Eastern Canada for more than five centuries. Adjacency to the fishing grounds was the initial catalyst for the settling of the near countless harbors, coves and inlets throughout the five provinces that border the rich, pristine waters of the North Atlantic. And while the technology and vessels used to prosecute the fishery has changed over the generations, the industry in Newfoundland and Labrador, Nova Scotia, New Brunswick, Prince Edward Island and Quebec is more valuable than it has ever been.
The seafood caught and produced in Eastern Canada is now worth nearly $2.4 billion (CDN landed value) annually.
According to the most recent statistics from the federal Department of Fisheries and Oceans (DFO), the value of all seafood produced in the five Eastern Canadian Provinces totals an impressive $2,387,424. This number is quite staggering when you think about it. Few industries in this region produce products that contribute this much to the economy and gross domestic product (GDP) in one year.
As one would expect, a wide variety of species contribute to the overall multi-billion dollar total. But it will come as no surprise to anyone associated with the fishery or seafood industry in Eastern Canada what group or species really drives the industry here — shellfish. This group of crustaceans accounts for an impressive $2.37 billion.
Lobster is king in Eastern Canada, with a value in excess of $942 million and shows no sign of slowing down. Lobster catch rates are increasing year-over-year. Combine this with record prices and you have the formula for a very valuable and sustainable fishery.
Next in order of economic importance is snow crab, contributing $534 million, followed closely by Northern shrimp at $369 million. Scallops round out the top four shellfish species at $178 million.
The seafood industry continues to be a strong employment driver in the region, responsible for more than 50,000 direct jobs – both seasonal and permanent – in the harvesting and processing sectors. This, of course, does not include the thousands of spin-off jobs associated with the fishery and millions of additional dollars pumped back into the Eastern Canadian economy.
While the fishing industry is producing literally billions of dollars in product each year, it is not without its challenges. In fact, few industries in Eastern Canada, if any, have faced the adversity the fishery has over the decades – including dwindling stocks, quota cuts, labor shortages, constant conflicts with the federal government and building competition from outside Canada. Those catching and producing seafood in this region have seen and experienced it all – but have always persevered.
Northern Cod Stocks
The biggest story coming out of the Eastern Canadian fishery as of late involves groundfish stocks – cod in particular.
In 1992 the Federal Government of Canada declared a moratorium on the Northern Cod fishery, which for hundreds of years had largely shaped the lives and communities of Canada’s Eastern coast. After it was discovered in the late 1980s that the Northern cod biomass had fallen to one per cent of its historical levels, the fishery was essentially shut down, ending the region’s 500-year dependence on Northern cod.
But cod is making a comeback.
A 2015 study into the state of Northern cod stocks off Newfoundland and Labrador confirmed a dramatic recovery for a species that became virtually commercially extinct in the 1990s — a confirmation that commercial fishermen have been documenting and commenting on for several years.
The study, co-authored by well-known and respected fisheries scientist George Rose, reported that the cod biomass has increased from tens of thousands of tonnes to more than 200,000 metric tonnes within the last decade and shows signs of continued growth. In fact, Canada’s federal Department of Fisheries and Oceans (DFO) recently reported that according to its research, the spawning stock biomass was actually in the range of 300,000 metric tonnes.
The news of the groundfish recovery has been met with optimism— so much so that DFO just announced in August of this year, the first expanded commercial Northern cod fishery in decades.
Another bright spot for the Eastern Canadian fishing industry is the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union. Once ratified in 2017, this free trade agreement will lead to the dropping of the punishing tariffs now applied to Canadian seafood exported to the member states of the EU. Not only will this agreement increase the profitability of Eastern Canadian seafood companies now shipping product overseas, but will open up a vast array of new, hungry markets, with an appetite for fresh, top quality Canadian seafood.
Shipbuilding Resurgence
When any industry is doing well and its participants are prospering, that good fortune has a tendency to spill over to related spin-off and supply companies – and the Eastern Canadian fishing industry is no exception.
One area that has seen a renewed revitalization in recent years is the region’s shipbuilding industry.
Many Eastern Canadian yards, that a decade ago were either shuttered or only producing a few vessels per year, have sprung back to life and are now at capacity – with many booked up to three-four years. New fishing vessels are in demand in Eastern Canada more than ever and the region’s naval architects and builders are just trying to keep up.
Rick Young is witnessing this growth and resurgence in shipbuilding first hand. Young is a Director and Owner of TriNav Marine Design and Marine Services International – two St. John’s, Newfoundland-based companies that design and provide in-depth technical assistance to the Eastern Canada shipbuilding and marine sectors.
“There was considerable vessel construction activity in Newfoundland and Labrador from 1995 to about 2005, mostly related to changes in the industry from harvesting groundfish to harvesting shellfish. Nova Scotia and the other Eastern Canadian provinces have seen a steady growth in vessel construction in the past five years or so due to strong market prices for lobster and also because much of the fleet was getting old and required replacement,” Young said.
He noted that fishermen have lobbied hard over the years and have been successful to have DFO change many of their vessel size restrictions.
“This has allowed fishermen to construct larger and safer vessels that can travel further offshore for longer periods of time, while increasing quality with such features as live wells and refrigerated sea water tanks.”
Now with the potential for a renewed groundfish fishery in the near future and continued strong prices for shellfish, fishermen are willing to invest further in newer and multi-purpose vessels, Young added.
“This will allow them to be more diversified, have a longer fishing season and be more profitable. Fishermen it seems, always find a way to adapt to the changes in the industry and persevere. We will be there with them side-by-side to help make this happen.”
The optimism expressed by industry leaders, such as Rick Young, seems to be contagious throughout the Eastern Canadian fishery.
After years of uncertainty, combined with the constant nattering of the naysayers mumbling about how the fishery will soon be no more, the industry is on the upswing – driven by positive factors that could help this still valuable business turn the corner and further increase in value.
Just as sure as the strong Northeast winds will continue to buffet the shores each year, those prosecuting the seafood industry in Eastern Canada will stand by their resolve and continue to produce the products that continue to drive the growth and evolution of this critically important, multi-billion dollar machine called the fishery.
ABOUT THE AUTHOR
Kerry Hann is the Managing Editor of The Navigator Magazine, the largest publication covering the marine and fishing industries in Eastern Canada. Hann, based in St. John’s, Newfoundland and Labrador, has been covering the North Atlantic fishery and other natural resources-based issues in various capacities for nearly 25 years.
SEPTEMBER 14, 2016 — Rolls-Royce Power Systems subsidiary L’Orange — well known for fuel injection and exhaust aftertreatment solutions — has added turbochargers to its products portfolio. The new turbocharger family is
The Great Lakes – St. Lawrence Seaway is one of the largest trade corridors in the world, spanning over 2,300 miles from the Gulf of St. Lawrence to Lake Superior. The system—primarily used for the shipping of traditional and new cargoes, such as mining products, steel, iron ore, dry bulk and grain—has an economic output of nearly $5 trillion, it sustains over 220,000 jobs in both Canada and the U.S.; produces $34 billion in business revenues and $3.6 billion in transportation cost savings; and provides competitive shipping and direct access to America’s heartland.
But anyone reading the latest trade reports coming out of the region would not be at fault for thinking the market is in a downturn. Sluggish traffic and a slide in iron ore cargoes for the steel industry and limestone shipments for the construction market grabbed the headlines in the local papers last month.
For the month of July, shipments of iron ore on the Great Lakes and St. Lawrence Seaway decreased by 15 percent when compared to July 2015 numbers. According to the Lake Carrier’s Association, which represents 14 American companies operating 56 U.S.-flag vessels on the Great Lakes, shipments were also down by more than 18% compared to the five-year average.
The Association went on to say that shipments from U.S. ports totaled 4.95 million tons in July, a decrease of nearly 14 percent compared to a year ago. Loadings at Canadian terminals dipped 23 percent to 643,000 tons. Year-to-date, the iron ore trade stands at 26.8 million tons, a decrease of 3 percent compared to the same period in 2015. Moreover, year-over-year, loadings at U.S. ports are down by 113,000 tons, while loadings from Canadian ports in the St. Lawrence Seaway are down 743,000 tons (21 percent).
Limestone didn’t fair any better. Shipments on the Great Lakes totaled 3,348,040 tons in July—a decrease of 18 percent compared to a year ago, and July loadings were down 14 percent below the month’s five-year average.
“We are about half-way through the 2016 navigation season and our overall cargo tonnage numbers are down by 11 percent,” says Betty Sutton, Administrator of the Saint Lawrence Seaway Development Corporation.
According to the Saint Lawrence Seaway Development Corporation, year-to-date cargo shipment from March 21, 2016 to July 31, 2016 were down 11 percent over the same period in 2015. The dry bulk category was down 13.4 percent (however, stone and potash were up), iron ore was down 28 percent and coal was down almost 13 percent.
The news isn’t all doom and gloom for commodities, however. “The lack of iron ore and coal has definitely been a contributing factor for this decrease; however traffic continues to be well above the five-year average, keeping our ports and their workforce busy,” says Sutton.
They don’t call the system the “Opportunity Belt” for nothing.
Ports in Minnesota and Ohio are in high demand through the push of agricultural products, such as corn and wheat. Meanwhile, ports in Chicago, Indiana and Wisconsin are benefiting from the movement of steel products and machinery, explains Sutton. Between March and July of this year, steel slabs, which would be categorized under general cargo, were up 214 percent over the same period in 2015, while other general cargo was up 74 percent.
The Port of Cleveland, for instance, has “seen steady growth” in month-to-month tonnage numbers during the 2016 season, says David S. Gutheil, Vice President, Maritime and Logistics. The rise in tonnage, goes hand-in-hand with the success of the Port’s Cleveland-Europe Express liner service. The service, launched by the port in 2014 with vessel partner the Spliethoff Group, directly moves cargo between the Great Lakes and Europe, offering customers savings on inland transits and shorter transit times between the U.S. and Europe.
Gutheil adds, that the Port is seeing “steady volumes of imported steel from Europe,” and an “increased interest in the project cargo market” from customers with a vested interest in moving cargo through the St. Lawrence Seaway.
To that end, the Port of Cleveland has invested in, and recently completed, the “construction of a new 21,000 square foot warehouse. This new facility,” explains Gutheil, was “partially funded through a grant secured through the Ohio Department of Development Logistics program, will be used for trans-load opportunities and increases our inside storage capacity to 320,000 square feet.”
The new warehouse is part of the Port’s ongoing infrastructure investment plan. Earlier this year, the Port commissioned two Liebherr 280 mobile harbor cranes. The cranes are expected to significantly increase the Port’s speed and efficiency.
Beyond the shipping of commodities, ports in the region are also seeing an uptick in tourism—leading to a proliferation in expansions and infrastructure investments.
Resurgence in cruise shipping
“In a time when the world’s industrial giants and cruise ships are all landing in the ports of the St. Lawrence, we have to utilize the strategic location of the Port of Québec to make it the marine destination of choice,” says Mario Girard, President and CEO of the Port of Québec. The deepwater port of the Port of Québec, which sits at the end of the St. Lawrence-Great Lakes trade route, is seeking to rebuild and enhance a number of areas around the port in the hopes of increasing both foot and vessel traffic. But the area likely to get the most buzz will be the expansion of the port’s cruise terminal.
With a resurgence in the cruise market in the Great Lakes region, ports such as the Port of Québec are looking to capitalize on the market, making large infrastructure investments to help meet growing vessel and passenger demand.
Over the last decade, the Port of Québec has seen cruise ship visitor numbers increase—from 55,000 in 2000 to 180,000 in 2014. Operating at full capacity, the Port of Québec will oversee a redesign and expansion of the Ross Gandreault Cruise Terminal and the installation of a mobile terminal at wharf 30 in the Estuary sector.
The hope is that the expansion, which will double the accommodation capacity at the Ross Gaudreault terminal and make way for larger ships, will enable the growth of the cruise market sector to continue, with the port capable of accommodating 400,000 passengers a year by 2025.
The $89.5 million project, called “Québec, A Destination of Choice of the St. Lawrence” will be completed over the next decade.
Meanwhile, over at Port Saint John, the second largest port by tonnage in Canada, cruise activity is expected to increase by 20% this year, with 64 ships calling at the port, bringing in 144,000 passengers and 57,700 crew members to the region, before the season’s end October 28th 2016. Cruise activity at the port represents a $25 million annual boost to New Brunswick’s economy.
Beyond the cruise sector, Port Saint John’s expansion is being driven by a steady increase in containerized cargo. Catering to a diverse cargo base, which includes dry and liquid bulk, break bulk, containers and cruise ships, the traditionally smaller container port is modernizing its facilities to maintain and support increases in both trade and business.
The port’s $205 million, seven-year, West Side Modernization Project—funded by the port, the Canadian federal government and the government of New Brunswick in three equal parts ($68.3 million each)—will see the upgrading and consolidation of the Rodney and Navy Island terminals, enabling the accommodation of larger vessels; and the installation of new operating systems and technology to help enhance cargo-handling capabilities.
Port Saint John says the project, which is slated for completion in seven years, builds on Canada’s commitment to drive economic growth in Atlantic Canada through trade and investment.
Linking the past and future
The Port of Montreal is in the midst of its latest modernization project. The port, which supports 16,000 jobs, generates $2.1 billion in economic spin-offs annually, and in 2015 handled 32 million tonnes of cargo and welcomed 91,000 cruise passengers and crew, will revamp its aging Alexandra Pier and Iberville Passenger Terminal. While the restoration is taking place, passengers will be welcomed at alternative cruise ship terminals, berths 34-35 and 36-37, located east of the Jacques-Cartier Bridge.
The goal is to have a majority of the project done in time to celebrate the 375th anniversary of the City of Montreal’s founding next year. The restoration project is intended to help integrate the pier and terminal into the urban fabric of Old Montreal, provide better access to the St. Lawrence river, and improve conditions to help meet growing cruise ship passenger demand.
“The Port of Montreal is a real treasure for the city, and remains one of our main economic assets,” says Montreal Mayor Denis Coderre. “The restored facilities of Alexandra Pier and Iberville Passenger Terminal will let us extend a magnificent welcome to the tourists and visitors who will come celebrate Montreal’s 375th anniversary with us in 2017.”
The total cost of the project is estimated at $78 million—with the Government of Quebec providing $20 million in funds through the Maritime Strategy – Tourism Component, and the City of Montreal providing an additional $15 million.
The project will include the reconstruction of the ground floor of the passenger terminal, construction of a new observation tower (its completion is expected in 2019), the lowering of the pier and installation of a public place, implementation of a port center, an upgrade to the parking area on the side of the secondary terminal, the addition of a green rooftop terrace, and the introduction of a main access entrance to the pier, further integrating the terminal into the surrounding area.
Anyone needing reassurance that the shipbuilding sector in the United States is alive and well need look no further than the Great Lakes. While yards along the U.S. Gulf reshuffle business strategies to help during the down oil market, yards along the Great Lakes continue to work on a number of projects, investing in infrastructure and leveraging partnerships to diversify portfolio offerings.
Perhaps the busiest group of all is Fincantieri Marine Group (FMG)—the U.S. subsidiary of one of the world’s largest shipbuilders in the world, Fincantieri. The Fincantieri Marine Group is comprised of three Great Lakes shipyards—Fincantieri Bay Shipbuilding (FBS), Fincantieri Marinette Marine (FMM), and Fincantieri ACE Marine (FAM).
Since acquiring the Wisconsin yards in 2008, Fincantieri has invested well over $100 million to build a shipbuilding group that will provide flexibility for its customers, and provide construction and repair services to both the government and commercial sectors.
Sturgeon Bay, WI-based Fincantieri Bay Shipbuilding (FBS), which is one of the last boat builders remaining in the Bay, has been essentially non-stop the last couple of years. The yard currently has numerous projects under various stages of construction with a backlog that extends through 2018. Most notably, the projects include newbuilds for one of the most active sectors in the country, the ATB market.
This past May, the yard delivered the Articulated Tug Barge (ATB) unit Barbara Carol Ann Moran and the 110,000 barrel ocean tank barge Louisiana to Moran Towing Corporation, New Canaan, CT. The unit was the third delivery to Moran under a 2014 contract.
The 5,300 HP, 121 ft ATB tug Barbara Carol Ann Moran is certified ABS Class +A-1 Towing Service, +AMS, and is equipped with state-of-the-art navigation and communications technology.
What made the delivery of the unit so impressive was that it was delivered on the exact day called for by the contract—emphasizing FBS’ high standards of meeting customer requirements, building a quality vessel and delivering on time.
Currently, FBS is under contract to construct two ATB tugs and two ocean going tank barges for Kirby Corporation; one ATB tug and one oceangoing tank barge for Plains All American Pipeline, LP; and one ATB tug and one oceangoing tank barge for AMA Capital Partners.
“We continue to be optimistic about the future of the industry we serve,” says, Todd Thayse, Fincantieri Bay Shipyard Vice President and General Manager.
To keep the momentum going, Fincantieri recently purchased the Palmer Johnson facility adjacent to the Bay Shipbuilding yard. Bay Shipbuilding has extensive expansion plans set for the 3-acre site, including the construction of new indoor Fabrication/Erection facilities, an indoor Blast and Coating building, outfitting shops and additional office facilities.
“This recent acquisition of the former Palmer Johnson facility has been well received by the industry and will allow us to pursue several new construction projects, which may include fishing vessels, ferries and landing crafts, while continuing to serve our core ATB market. These purpose-designed buildings will increase our overall output and capacity and improve our ability to meet critical schedules,” says Thayse.
“We will also be able to move more construction indoors which will allow FBS to further provide cost-effective solutions for our customers,” he added.
Indoor facilities will enable work to be ongoing for both newbuilds and repair work—especially during the winter months when Great Lakes fleet repairs are vital and time sensitive.
Earlier this year, FBS had 17 vessels at the yard undergoing winter repairs well into April. The vessels ranged from thousand-foot long bulk tankers, to medium-sized ships, to tugs and barges. Work included large-scale scheduled maintenance repairs, scrubber installations, repowering and structural steel renewal, in addition to electrical automation enhancement and ABS and U.S. Coast Guard inspections.
Additionally, Keylakes Shipping’s 768 ft bulk carrier John G. Munson is currently undergoing conversion at Bay Shipbuilding. The vessel is the tenth steam-to-diesel, or diesel-to-diesel repowering project that FBS has been awarded since 2009. The freighter, built in 1952 will undergo a complete repower at FBS. It is expected to undergo sea trials in 2018.
Meanwhile, FMG’s two other Great Lakes shipyards are busy constructing the next generation of warships for the U.S. Navy.
Earlier this summer, a keel laying ceremony was held at Fincantieri Marinette Marine, Marinette, WI, for the U.S. Navy’s 17th Littoral Combat Ship (LCS), the USS Indianapolis. The ship is one of six in various stages of construction at FMM, with an additional three ships in long-lead procurement. The yard has already delivered four LCS ships to the Navy—the USS Freedom (the lead ship in the Freedom variant), the USS Fort Worth, the USS Milwaukee and the USS Detroit.
The Lockheed Martin-led team is made up of Fincantieri Marinette Marine, along with naval architectural firm Gibbs & Cox, and more than 500 suppliers across 37 states. The U.S. Navy’s LCS construction program is divided between two groups—the Lockheed Martin team, building the Freedom variant, and the General Dynamics-led team, with Alabama-based Austal USA building the Independence class LCS.
Fincantieri Ace Marine, Green Bay, WI, also has a hand in producing the Freedom variant of the LCS. The yard, which specializes in the design and construction of high-speed coastal intercept and patrol vessels, most notably the builder of the Response Boat-Medium (RB-M) for the U.S. Coast Guard, produces the aluminum superstructures and additional aluminum components for the class.
To top off FMG’s three shipyards success, all three received the annual “Excellence in Safety” award from the Shipbuilders Council of America earlier this year. The award recognizes a shipyard’s commitment to safety, and the hard work and dedication put forth from shipyard employees.
The Great Lakes Group Eyes Expansion, Partners with Damen
FMG isn’t the only regional player seeking to further develop. This past June, the City of Cleveland authorized the sale of property adjacent to the Great Lakes Towing company headquarters. The acquisition of the property will enable the Great Lakes Shipyard, part of The Great Lakes Group, to operate at full capacity, all year round.
The expansion will include a 68,000 square foot facility that will accommodate a state-of-the-art 770-ton mobile Marine Travelift crane—the largest on the Great Lakes, and third largest in the world.
Great Lakes Group says that with the new facility in place, the Great Lakes Shipyard will be able to continuously provide all services for new vessel construction, as well as custom fabrication, ship maintenance and repairs.
Part of the services Great Lakes Shipyard will offer are those required for Subchapter M. Under Subchapter M regulations, towing vessels greater than 26 ft, or any vessel type moving dangerous or hazardous materials, must obtain a Certificate of Inspection documenting: Drydock inspection; Internal Structure Exam; Annual Inspection and Surveys; and Machinery and Electrical.
Just last month, the yard kicked off construction for the first Damen Stan Tug 1907 ICE. The tug is the first in a series of ten being built in compliance with the new Subchapter M regulations. The tugs are being built for The Great Lakes Towing Company (the Towing Company).
The tugs will measure 65 ft x 24 ft x 9 ft and will be powered by two MTU 8V4000 M54R engines generating 1,000 hp at 1,600 rev/min.
“This new construction program is further evidence of the innovative spirit the Towing Company has always embraced since its founding over 117 years ago, and reflects the commitment we have to our customers and the entire Great Lakes/St. Lawrence Seaway marine transportation industry,” says Joe Starck, President of the Towing Company.
Under the construction program two new harbor tugs will be introduced each year for the next five years—helping to stabilize operations and improve day-to-day business, assures Starck.
“The tugs,” he added, “will be ideal for the long-term sustainability of our harbor towing activities, and provide our customers with an even greater level of reliability, performance, and safety, across our entire Great Lakes service network.”
The Great Lakes Towing Company’s fleet provides ship assist, cargo transportation and logistics, ice breaking, and emergency assistance for every kind of vessel, barge and marine structure on the Great Lakes-St. Lawrence Seaway.
The Damen Stan Tug 1907 ICE are also the first tugs to be built in the U.S. under Damen’s Technical Cooperation program with Great Lakes Shipyard. The agreement, which was entered into at last year’s Workboat show, authorizes the Great Lakes Shipyard as an official builder of Damen designs for the next five years.
Burger Boat’s diverse portfolio
Since 1863 Burger Boat Company, Manitowoc, WI, has done everything in its power to meet the needs of its growing customer base. The boat builder, which has delivered countless vessel types in the range of 50 ft to 200 ft in length, implements what it calls a “lean” philosophy to its business practice, ensuring procedures are performed and completed on time, and vessels are delivered to customers on budget.
A builder of steel and aluminum vessels, Burger builds everything from yachts to passenger vessels, such as the 98 ft passenger vessel Chicago’s Classic Lady for Chicago’s First Lady Cruises—and patrol to research vessels, such as the 78 ft research vessel Arcticus which was delivered to the U.S. Geological Survey in 2014, just to name is a few.
Last year, Burger delivered a tour boat to Chicago-based Wendella Boats. The 340- passenger Lucia is an 89 ft steel vessel that was designed by Timothy Graul Marine Design, Sturgeon Bay, WI. The steel boat is certified USCG Subchapter K, and is powered by two Caterpillar C12 main engines and features two Northern Lights generators.
Most recently, Burger began construction on a custom 103 ft 6 in x 26 ft 5 in full displacement steel and aluminum Explorer Motor Yacht for an unnamed owner.
The expedition style motor yacht has a steel hull and aluminum superstructure. The vessel, designed by DeBasto Design, Miami, FL, will be launched Spring 2017. The ABS class yacht will be powered by two Cat C-18 ACERT main engines, and will be able to reach a cruising speed of 12 knots.
Fraser faces OSHA fine
Located in Superior Wisconsin, on the St. Louis Bay of Lake Superior, Fraser Shipyards, part of the Fraser Industries group which also includes boat builders Lake Assault Boats, provides full shipyard services from its sixty five acre site, featuring two dry docks and approximately 2,200 feet of berthing space. Since 1890, Fraser Shipyards has been a prominent fixture in the Twin Ports of Duluth and Superior, serving the Great Lakes shipping community. Most of its current 150 workers, 75 percent of which are structural welders, equipment operators, fitters and pipe fitters, are third generation employees for the company.
That kind of longevity and loyalty from workers can serve as a testament to Fraser’s commitment to the industry, the community and its employees, but recent findings have raised questions about the yard’s safety culture.
Last month, the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) announced that sampling results taken during a recent retrofit determined that 14 of Fraser Shipyards workers were exposed to heavy metals and had lead levels 20 times higher than the exposure limit.
According to OSHA’s Assistant Secretary of Labor, Dr. David Michaels, “Fraser Shipyards accepted a contract with a very low profit margin and penalties for delayed completion, but could not meet the schedule without endangering its workers.”
That contract, from Interlake Steamship Company, Middleburg Heights, OH, was for the modernization of the Herbert C. Jackson. OSHA stated in its report that Fraser Shipyards’ management was aware of the presence of lead and asbestos throughout the 1959 built vessel. The ship arrived at Fraser December 2015 for a six-month retrofit project and was required back in operation for the summer iron ore shipping season.
In a statement, James Farkas, President and Chief Operating Officer of Fraser Industries, said “We are a family-owned company that has been in Superior for 126 years. We see all of our employees, laborers and contractors as part of the family.”
He added, “We take the health and safety of our people and our community seriously. We acted to protect our people as soon as we learned of the problem. We have worked with all of our employees, laborers and contractors to ensure their health by bringing in medical experts, as well as the highest levels of testing, protective equipment and safe operating procedures. We strongly disagree with OSHA’s statement that any of the issues were caused or worsened by business or profit motivations.”
The agency cited 14 willful egregious health violations for each instance of overexposing a worker to lead, and cited five additional willful violations for failing to conduct monitoring to assess lead exposure and failing to implement a lead compliance or respiratory program.
Additionally, OSHA issued 10 serious violations to the company, and placed Fraser Shipyards in its Severe Violator Enforcement Program (SVEP). For companies on the list, mandatory follow-up inspections become the norm.
Since the findings, Fraser has taken steps to help mediate the matter, and protect its employees. According to a statement, as soon as the management learned of the high lead levels it halted work on the Herbert C. Jackson. Fraser Shipyards also went on to engage medical experts from the region’s two leading hospitals, and industrial safety experts from the International Brotherhood of Boilermakers union to advise the company and oversee health testing. And it purchased state-of-the-art safety gear and equipment to protect workers.
Additionally, Fraser engaged medical professionals, OSHA and union officials to develop and implement new safety procedures.
“We appreciate their responsiveness to getting this issue fixed and taking care our members,” said Mark Garrett, Director of Health and Safety Services for the International Brotherhood of Boilermakers, the union that represents workers at the yard. “We don’t get many employers that step up like they did. They were straightforward, asked for our help and put in place our recommendations for safety.”
In total, Fraser could face close to $1.4m in OSHA penalties.
As we pointed out in our Annual Yearbook & Maritime Review back in June, shipyards are struggling amid the downturn in the market, with newbuilding orders at their lowest levels since the 1980s. As further evidence, during the first half of 2016, orders for new ships worldwide dropped 65 percent as compared with the first half of last year, according to VesselsValue.
The leading ship valuation provider says that 689 newbuilds were ordered in the first half of 2015 as compared with a mere 239 this year.
As we mark the midway part of this year, VesselsValue also points out that $28.4 billion worth of vessels have been delivered this year, with another $43.8 billion worth still on the orderbooks and due for delivery in 2016. VesselsValue says that there a total of 2,518 vessels to be built in 2016, with 1,613 as yet undelivered by mid-year. Almost a third of the undelivered vessels are bulkers.
LPG tanker deliveries are on track for the year, with 50% of the 2016 orderbook having been delivered (worth $3.0 billion). However there is still 80% of the Offshore Support Vessel (OSV) orderbook still undelivered, valued at $5.5 billion. Overall, only 93 of the 500 OSVs on order were delivered to the fleet this year. VesselsValue Valuation Analysts say many of the undelivered vessels in underperforming markets are candidates for slippage: the vessel’s delivery date may be pushed back into the next few years.
The tanker outlook
Updating its Mid-Year Tanker Market Outlook, McQuilling Services says that 49 uncoated tankers were delivered at the end of July, representing “36% of our full-year expectations and supporting our original thoughts of a second half skew of tanker deliveries.” McQuilling Services sees the supply outlook over the next five years as a “tale of two halves.” It says the present year along with 2017 are projected to increase the DPP fleet as a whole by 3.6% and 5.7% on an average inventory basis. In total, we project 62 coated Aframaxes (LR2) and 46 coated Panamaxes (LR1) to join the fleet over 2016 and 2017, of which 27 have delivered as of August.
McQuilling Services says, “We anticipate that LR2 inventory will expand 10.7% and 9.9% in 2016 and 2017, respectively amid high deliveries and minimal deletions, while the MR product segment is to average only 1.0% growth through 2020. Overall, Clean Petroleum Products (CPP) growth will average 3.5% in 2016 before trending lower over the forecast period. The net fleet growth of the chemical fleet (IMO 2) is projected to expand by 13.5% in 2016, reducing to 3.4% in 2018 and below 2.0% in 2019 and 2020.
“We project spot rates for Dirty Petroleum Products (DPP) voyages to exhibit weakness in 2017 amid accelerating supply growth. TD3 freight rates will average WS 57 in 2017 before increasing to WS 71 by 2020. Floating storage economics may help stabilize the recent downturn in the market. Correspondingly, we anticipate VLCC TCE levels to average $33,800/day in 2017. Suezmax rates on TD20 are projected to average WS 66 in 2017, returning owners $15,300/day during the year. Aframax rates are likely to be elevated in the East with TD8 returning owners $19,600/day in 2017, following $22,300/day in 2016.”
According to McQuilling, CPP rates are likely to remain stable in 2017 due to increasing demand and decelerating supply. TC1 rates will average WS 108 in 2017, returning owners $19,200/day, while the LR1 trading the same voyage will generate earnings of $13,800/day. Gradually increasing freight rates through 2020 are projected. For MR owners, it is projected that vessels positioned in Asia will earn more than those in the West amid expanding refinery capacity in the East and slowing demand in the West. The TC2/TC14 triangulation will return owners $11,806/day in 2017.
Asset prices for secondhand DPP tankers will see losses continue into 2017 amid a weakening rate environment, while CPP values may see a slight uptick amid a more stable earnings outlook. Declining shipyard capacity and higher commodity prices may lead to a slight increase in newbuilding values next year.
Cruise market booming
The cruise ship market is booming, with orders for more than 60 cruise vessels valued at over $44 billion, including two 100-passenger coastal cruise ships being built at Nichols Brothers Boat Builders, Whidbey Island, WA, and two overnight cruise ships at Chesapeake Shipbuilding in Salisbury, MD. Chesapeake delivered the 185-passenger America to its sister company American Cruise Line in the first quarter of this year.
Matson orders two CONROs
In the U.S., orders for the first half of 2016 for new oceangoing ships for Jones Act trade have slowed, with shipyards working off their existing backlogs. The second half of the year started off with a bang as Matson Navigation awarded a $511 million contract to General Dynamics NASSCO, San Diego, CA, last month for two new LNG-Ready Container Roll-on/Roll-Off (CONRO) vessels that will have a capacity of 3,500 TEU. The two CONROs would be the 30th and 31st LNG-powered or LNG-Ready ships built, in operation, under construction or conversion for Jones Act service.
In the months following Hornblower’s selection by New York City as the operator of its new Citywide Ferry Service, speculation was rampant as to what shipyard or shipyards would be able to build the fleet of 19 ferries in less than a year’s time. Many of the traditional passenger-only ferry builders in the U.S. were fully booked or declined to tender an offer because of what one shipbuilder called “an impossible delivery schedule.”
When we broke the news in early July of the award of the boatbuilding contracts, the two Gulf Coast shipyards to emerge as the winners were Horizon Shipbuilding and Metal Shark Aluminum Boats. The selections caught many outside the marine industry by surprise because neither yard had built a passenger-only ferry to date.
One, Horizon Shipbuilding, is situated in Bayou La Batre, AL—the heart of the shrimp boat business. While the other, Metal Shark Aluminum Boats, is headquartered in Jeanerette, LA—known as “Sugar City” because of its local sugar cane crop and sugar processing mills.
While the selections might have raised some eyebrows among the general public, both yards have carved out impeccable reputations for meeting challenging production schedules for constructing boats and vessels in series for government and commercial customers. Both have a highly skilled, core workforce; both count the U.S. Navy and U.S. Coast Guard among their customers; and both are owned by confident, forward-thinking entrepreneurs.
Horizon Shipbuilding’s Travis Short
Travis Short, Owner and President of Horizon Shipbuilding, knows his shipyard can deliver. He points out that the shipyard built 40 vessels in a 20-month timeframe for a commercial offshore oil customer. Those boats, by the way, just so happen to be the same tonnage as the 149-passenger Citywide Ferry catamaran vessels.
He also cites a contract that Horizon Shipbuilding won to build ten 10,000-gallon-capacity oil barges after the Deepwater Horizon disaster. The barges were to be used in the cleanup in the Gulf and the shipyard had one month to deliver them.
“Our key people have been with us for a long time,” says Short. “They know how Horizon Shipbuilding operates. Building boats is what we do.”
The Gordhead Factor
A graduate of the University of Southern Alabama with a Bachelor of Science in Business Administration, Short started Horizon Shipbuilding in 1997 with his father, Travis Sr. While Short is fully confident in the ability of his core workforce, five years ago he felt that they could be more productive. “We weren’t doing poorly,” says Short, “but we just weren’t getting any better.” Short wanted to make improvements in workflow, reporting and resource management. That’s where he got the idea for Gordhead management software.
“We wanted to start by giving access to more information,” says Short. “With Gordhead, we created a software platform that brings together all of the information.”
Gordhead is an app that can be used on your mobile device. By using a modular-based system, it syncs with existing enterprise resource planning, scheduling and timekeeping software to provide project transparency and promote collaboration between production managers and workers.
“It’s all about better communication,” says Short. He says the use of Gordhead by management has allowed Horizon Shipbuilding to share information throughout the day on projects and do away with daily production meetings. Shorts says that what often holds up any production process is that someone is waiting on an answer before he can proceed with his work. “Gordhead wipes that out. It raises the level of communication, allowing the time for decision-making to get shorter. It gets rid of bottlenecks.” The software also allows greater transparency for an owner to check on the status of the construction of his vessel.
Cameron Clark, VP and GM, Hornblower NY, cited the use of Gordhead as one of the factors in selecting Horizon Shipbuilding as one of the builders for the NY Citywide Ferry project. Clark says the use of the Gordhead management software will allow Hornblower to stay connected with the team on the ground 24/7 and ensure the project stays on schedule.
Located about three miles from Mobile Bay, Horizon’s facility is made up of a West Yard and Main Yard, with nine steel buildings for steel and aluminum fabrication and construction. The construction and outfitting of modules and vessels is mainly performed in two 175 ft x 50 ft buildings. Horizon Shipbuilding also uses a huge 660-ton Travelift for the transfer and launch of vessels.
The key piece of the fabrication process is the ALLtra Model PG14-12 Shape Cutting Machine, which is a CNC-controlled gantry designed for cutting complex shapes for sheet or plate materials. It is capable of producing parts at high speeds and close tolerances and was used to cut precise jig patterns, allowing for innovative ways of rapid hull construction for the ferries. The machine is easily configured for plasma or oxy/fuel shape cutting processes and can be customized for special applications. Horizon’s application utilizes the Hypertherm HPR260 plasma cutter controlled by the Burny 10 LCD shape cutting motion controller using MTC ProNest 8 nesting software.
The current workforce at the shipyard is about 300, with about 125 of those dedicated to the New York ferry project.
The NYC Ferry Design
Designed by Incat Crowther, the new catamaran ferries will be 85 feet 3 inches long, with a beam of 26 feet 3 inches, and draft of 3 feet 4 inches. The ferries will also feature plenty of charging stations for the connected crowd, concessions, Wi-Fi and a space for up to 19 bicycles on board.
Each vessel will use two 803-hp EPA-compliant Tier 3 Baudouin 6M26.3 P3 main engines to help reduce diesel emissions and noise. Incat Crowther’s innovative hull design will help limit wake and maximize fuel efficiency, and the ferries will primarily be built out of aluminum further increasing fuel efficiency.
Each boat is expected to carry at least 149 passengers (some could have higher capacities). The vessel’s main deck will have seating for 123 passengers plus space for four wheelchairs and four strollers. The upper deck will seating capacity for 42 passengers.
“We are going to start out with a five-day-a-week schedule,” says Short, “and adjust if necessary. It is an ambitious schedule, but we’ll start delivering boats on their own bottoms starting in the early spring and finishing in the late spring.
“While these are the first catamaran ferries we’ve built,” he continues, “they are not the first passenger boats. We’ve delivered high-speed crewboats for Mexico and West Africa.”
Of course, the New York ferries aren’t the only game in town. Horizon also has five repair jobs in the yard, including river inland towboats, a research vessel, and 130 ft yacht.
It is also building two 100 ft x 40 ft escort tugs for McAllister Towing, New York, NY. Based on a design by Jensen Maritime, Seattle, WA, the steel-hulled tugs will be ABS classed and fitted with Caterpillar 3516E Tier 4-compliant main engines, driving Schottel SRP4000FP propulsion units. The tugs are to be delivered in early 2017.
Bold Plan, Bold Choice
New York Mayor Bill de Blasio’s plan to create the citywide ferry service—at a cost of $325 million—is a bold reimagining of the city’s future public transportation. The Mayor thinks that the ferry service when up and running would carry an estimated 4.5 million passengers in a year. All of the new ferries would be in service by mid-2017. At $2.75 per ride the ferry service would be affordable for the average New Yorker. The new citywide ferry service would be a crowning achievement for the Mayor just months before he stands for reelection in the fall of 2017.
Metal Shark’s Chris Allard
The choice of Metal Shark Aluminum Boats as the other shipyard to build the new ferries is a bold one, too. Metal Shark is owned by Chris Allard and Jimmy Gravois. A Long Island native, Allard joined American Marine Holdings after graduating from the prestigious Webb Institute. He later partnered with Gravois, owner of Gravois Aluminum Boats, to acquire Metal Shark in 2006.
Ten years later, Metal Shark has emerged as a premier builder of aluminum military craft for all of the branches of the U.S. military—Navy, Coast Guard, Air Force and the Army.
All of those boats are built at what Allard calls the Jeanerette “boat production facility” because it delivers almost a vessel on a daily basis. Back in 2011, Metal Shark grabbed headlines when it was awarded the contract to replace the U.S. Coast Guard’s aging Response Boat-Small (RB-S) fleet. The nearly $200 million contract of over 470 boats, was the largest of its kind ever awarded by the Coast Guard.
In 2014, Metal Shark took the next step in its growth with the acquisition of a 25-acre waterfront tract in Franklin, LA, a short drive from the company’s headquarters in Jeanerette. Located on the Charenton Canal, the Franklin yard, says, Allard, is designed for shipbuilding and provides direct access to the Gulf of Mexico. Recent deliveries include 90- and 75-foot catamarans and 60- and 50-foot catamarans. The Franklin yard has also built some 45-foot patrol boats.
Allard sees the New York City ferry contract as a springboard into growth into the commercial vessel market. “We’ve been primarily known as a military and government contractor,” says Allard. “This contract is part of a major company diversification.” In the coming months, Allard expects to announce a number of commercial contracts to build its largest vessels yet. The Franklin facility has enough capacity to build multiple vessels of 200 feet in length.
Engineering company at heart
“We are really an engineering company at heart,” says Allard. It says the company leverages technology, such as robotics, CNC cutting, bending, CAD software systems to stay focused on production efficiencies, controlling costs and producing quality products for the customer. These same engineering processes can be seen in the sheet metal, automotive, and aeronautical industries.
As for the New York City ferry contract, Allard says Metal Shark secured the business “the good, old fashioned way.” Allard says, “We’ve been working with Hornblower for more than two and a half years providing them the information and the tools they needed to secure the contract. We also showed them how we could replicate our building processes to construct the ferries.”
Metal Shark currently has about 200 workers between its two shipyards and might ramp up “a little,” says Allard. The company will also be able to shift some of the labor pool from one facility to the other based on project demand.
The Franklin yard is also benefitting from a Small Shipyard Grant from the U.S. Maritime Administration for $582,410, which will be used to acquire portable shelters and marine transporters.
“We were able to cut metal within 10 days of signing the contract,” he says. “We do most of our design work in-house with its naval architectural staff—but for the New York City ferry project, the design is owner-furnished from Hornblower. We are working on the same design as Horizon Shipbuilding in order to make the boats as absolutely identical as possible.”
According to Allard, Metal Shark (and Incat) are participating in a limited usage of Gordhead at Hornblower’s request for sending and receiving technical clarifications during the design phase of the project in order to minimize differences in interpretation of design clarifications by the two builders. He says that Metal Shark has its own advanced software, tools and processes for project management, engineering planning, production coordination and customer communications.