FEBRUARY 14, 2016 —Philadelphia Gear Corp., King of Prussia, PA, is being awarded a firm-fixed-price contract for non-recurring engineering of main reduction gears for DDG 51 Arleigh Burke class guided missile destroyers.
FEBRUARY 12, 2016 — IJmuiden, Netherlands, based OSD (Offshore Ship Designers) has signed a contract for an IMT2001 Scientific Research Vessel for the Taiwanese Ocean Research Institute (TORI). The vessel will be
FEBRUARY 12, 2016 — The National Transportation Safety Board is to launch a second expedition to search for evidence in its investigation of the loss of the TOTE cargo ship El Faro,
As ships rely increasingly on broadband connectivity to improve operational efficiency and provide crew welfare, bandwidth management has become a critical need. On vessels today, broadband connectivity is needed for access to critical weather and navigational information as well as secure communications with fleet operations management. Real-time access to sea condition information, fleet and port data, and remote systems support capabilities can enhance crew safety, save fuel, reduce operational expenses, and ensure compliance with an ever-expanding array of regulations. Broadband connectivity is also the lifeline for seafarers — who consider communications with family and access to the Internet as must-haves for life onboard. If vessels want to attract and retain qualified crew, they need to provide connectivity. It all adds up to an emphasis on managing broadband data usage.
KVH has introduced the myKVH web portal to enable ship operators, fleet managers, and vessel officers to effectively manage onboard data usage. The tool is designed to provide the transparency and accountability that is essential for a ship to get the most value from its broadband data plan, which is typically based on a monthly allotment of airtime.
KVH introduced the myKVH web portal in October 2015 at the same time it introduced new airtime plans for its mini-VSAT Broadband service, which provides connectivity to thousands of vessels worldwide. The new airtime plans deliver data at maximum speeds on the mini-VSAT Broadband network at every price point. In some cases, the top downlink speed of 4 Mbps is 15 times faster than previous plans, while the cost has been reduced by one third. The new airtime plans feature monthly allotments of data in a wide range, giving fleet managers the ability to choose a data allotment that fits the vessels’ budget and needs.
With a vessel utilizing a monthly allotment of data, it becomes extremely important to be able have visibility into the amount of data being consumed. The myKVH web portal provides a single secure site with the tools to enable a ship operator to manage network usage by vessel or by individual crew members, allocate operational and crew data, and receive customized usage alerts by email and SMS text message. It is available for no additional cost to every customer using KVH’s mini-VSAT Broadband service. With the myKVH web portal, operators have a tool to proactively monitor bandwidth usage so that one runaway user can no longer compromise an entire vessel’s connectivity.
Secure, fleet-wide monitoring with map and grid displays is another benefit of the myKVH tool for onshore staff. The fleet-wide view shows IT managers and ship superintendents at a glance where their vessels are and the status of their mini-VSAT Broadband systems. It also enables them to view support cases across the entire fleet, maximizing the value of their KVH investment.
As the sophistication of maritime broadband communications grows, managing onboard data usage will become ever more important for every vessel. The myKVH web portal is designed for the visibility and accountability that fleet managers need to make the smartest use of connectivity.
DELIVERING RELIABLE HIGH-SPEED BROADBAND
This past December, Inmarsat achieved global commercial service for its high-speed broadband service Global Xpress. The service was formed by three Ka-band high-speed mobile broadband communications satellites launched from Kazakhstan over the last three years. A fourth satellite being built by Boeing in California will provide extra capacity when it launches later this year.
GX operates in the resilient Ka-band, while integrating seamlessly with Inmarsat’s L-band network to allow customers across aviation, maritime, enterprise and government sectors to have reliable and assured access to high-throughput communications.
With Cisco, Inmarsat has also developed the Inmarsat Service Enablement Platform (ISEP) and the Inmarsat Gateway, which will deliver a whole new world of innovative, content-rich applications – developed by our Certified Application Partners – tailored to meet GX users’ needs.
During the course of 2016, Inmarsat will be introducing a series of market-specific, high-speed connectivity services powered by Global Xpress.
Inmarsat has signed up several manufacturers and value-added resellers to distribute its Global Xpress services. Among the manufacturers on the maritime and offshore sector are Cobham, Intellian, JRC, and RigNet.
At last year’s International Workboat Show in New Orleans, Intellian displayed its GX60, a compact maritime stabilized terminal designed to use Inmarsat’s GX broadband service. Built and supplied with an Integrated GX modem, the GX60 installs easily and quickly delivers high-speed connectivity.
A real benefit of the GX60, explains Paul Comyns, Intellian’s Vice President Global Marketing, is its small size, integrated design, and intuitive user interface. It means operators can install and commission the terminal in relatively the same amount of time as a FleetBroadband system. It can also deliver speeds of up to 50 Mbps. The radome dimension is 90 cm x 103 cm and the antenna weighs about 132 lbs.
Also on display at the Workboat Show was Cobham SATCOM’s SAILOR 60 GX, a new super-light and compact Ka-band VSAT antenna. The new 60cm antenna system is designed for Inmarsat’s new Fleet Xpress service.
Weighing just 82 lbs/37 kg, the SAILOR 60 GX user terminal features one of the lightest Ka-band antennas and boasts leading radio performance to ensure a reliable link to the satellite and more availability of communication services. For workboats and offshore vessels with space restrictions a new SAILOR 60 GX combined with a SAILOR FleetBroadband system is the perfect on board hardware platform for Inmarsat’s game-changing new maritime multi-band satcom service.
A key advantage of SAILOR 60 GX’s small size and low weight is the ability to reduce installation time and costs, which could lead to better value monthly service subscriptions. It is also likely that vessels with existing FleetBroadband antennas will experience more value as they already have a core component of Fleet Xpress on board, making SAILOR the ideal companion for workboat operators aiming to achieve optimal ROI on maritime broadband.
SAILOR 60 GX will enable more workboats to operate smarter through harnessing the power of Inmarsat Fleet Xpress, by enabling significant data sharing capabilities and the drive towards smart operations. The optimal size/performance balance of SAILOR 60 GX is possible because Inmarsat Global Xpress satellites use spot beams instead of wide beams, so with advanced engineering and software design, antenna size is becoming less relevant and they can operate anywhere in the satellite footprint and provide a strong link.
The lightweight carbon fiber and aluminum SAILOR 60 GX comes pre-configured for Fleet Xpress and features ‘one touch commissioning’, meaning that during installation it can be online in seconds with no requirement to contact the Network Operations Center (NOC).
At 1,297 feet long, the MSC Zoe, along with her sister ships MSC Oliver and MSC Oscar are some of the largest container ships in the world. When she set sail this past summer on her inaugural voyage, the MSC Zoe was equipped with high-speed Marlink Maritime VSAT (Very Small Aperture Terminal) on board. Marlink VSAT services provide reliable connectivity for operational and crew communications on MSC Zoe and 130 other MSC ships. MSC uses a suite of integrated IT solutions designed to reduce network administration on board and provide easy access to communication services for crew, all enabled by the XChange communications management platform from Marlink.
Recently added to MSC Zoe’s communications solutions and being rolled-out across the MSC fleet is XChange Universal Remote Access (URA), a unique system that provides secure remote access to computers on board from the shore office. MSC is already experiencing higher uptime for IT systems across the fleet due to the improved remote maintenance and troubleshooting capabilities provided by URA. The system differs from standard remote access solutions, which are designed for specific terminals or protocols and require their own IP address. Since it is a universal access solution, MSC can use the same tool to access IT systems on MSC Zoe, its largest ship, as on any other ship regardless of age or type across its entire fleet.
XChange as standard also provides communication lines for MSC crews to easily stay in contact with their families and friends via email, internet and social media, while giving full control of access and costs to administrators on shore. For MSC, this functionality has been extended by XChange BYOD (Bring Your Own Device), a ready-to-use Wi-Fi solution and accompanying apps that provide voice and data access for crew using their own smartphones, tablets or laptops. By ensuring straightforward account administration and streamlining payment using pre-paid cards, XChange BYOD helps MSC to meet the requirement of its maritime professionals to access the Internet via Wi-Fi using their own devices.
Last year, General Dynamics NASSCO earned the bragging rights for building and delivering the world’s first LNG-fueled containership, the Isla Bella, to Jones Act operator TOTE Maritime. The San Diego shipbuilder capped off that technological achievement last month by delivering the 764 ft Perla del Caribe, sister ship to the Isla Bella, two months early.
The two ships were built under a contract signed by TOTE in December 2012. The investment by TOTE in the two ships was $375 million.
TOTE President and CEO Anthony Chiarello, says that the “Isla Bella is already serving the people and communities of Puerto Rico and we are excited to introduce the Perla Del Caribe into the trade next month.”
GD NASSCO designed the ships in partnership with DSEC, a subsidiary of Daewoo Shipbuilding & Marine Engineering (DSME), located in Busan, South Korea.
The design is based on proven containership-design standards and includes DSME’s patented LNG fuel-gas system and a MAN ME-GI dual fuel, slow-speed engine. The 8L70ME-GI engine was built by Korea’s Doosan Engine under license from MAN Diesel & Turbo.
Burning LNG will allow the Marlin Class ships to be fully compliant with strict emissions regulations while operating in both the North American Emissions Control Area and the U.S. Caribbean ECA.
The Isla Bella made its first trip from Jacksonville, FL, to San Juan, Puerto Rico, November 24.
On January 9, TOTE Maritime Puerto Rico successfully loaded LNG bunkers aboard the world’s first LNG powered containership, MV Isla Bella. Approximately 100,000 LNG gallons transported by 12 TOTE-owned LNG ISO containers were loaded on schedule. The bunkering was conducted under strict U.S. Coast Guard oversight while Isla Bella was also undergoing cargo operations.
The LNG was transferred from the ISO tank containers using a specially developed transfer skid developed by TOTE’s partner Applied Cryogenics Technologies (ACT) of Houston, TX. The transfer skid is designed to allow four ISO tanks to be transferred to Isla Bella at once, dramatically reducing transfer time.
The LNG was sourced by TOTE’s partner, JAX LNG, LLC, from AGL Resources’ LNG production facility in Macon, GA. Genox Transportation, a specialized LNG trucking partner of TOTE, transported the fuel to Jacksonville. Pivotal LNG, a subsidiary of AGL Resources, also provided transfer expertise to TOTE Maritime with its highly trained LNG experts, ensured the operation was conducted safely and in accordance with best industry practices.
Oversight of the operation both at shipside and on shore was provided by TOTE Services, Inc. (TSI), TOTE Maritime’s sister company that manages the vessels.
“We are very pleased with the results of this initial LNG bunker event and know that the use of LNG in our Marlin Class vessels will provide unprecedented environmental benefits both here in Jacksonville and in Puerto Rico,” says Tim Nolan, President of TOTE Maritime Puerto Rico. “We are indebted to USCG Sector Jacksonville for their diligent oversight and assistance that was invaluable and helped make this event a success. Our partners ACT, Pivotal LNG and Genox were also major components of our success. Our sister company, TSI, has developed significant expertise in LNG as a Maritime fuel and ensures that our vessels operate safely and efficiently using this environmentally superior fuel.”
Applied CryoTechnologies, Inc. (ACT) is the premier equipment supplier for cryogenics in North America. ACT is proud to be the first to market with this type of bunkering equipment for the marine industry. Leveraging ACT’s innovative style and unrivaled experience in LNG equipment is sure to bring success to any LNG fueling project.
Pivotal LNG brings liquefied natural gas to companies and industries throughout the United States through reliable, flexible and cost-effective solutions.
TOTE Maritime provides safe, reliable transportation at the fastest speed possible for the Puerto Rican and related Caribbean trades.
Meanwhile, Crowley Puerto Rico Services, Inc., Jacksonville, has selected Eagle LNG Partners as LNG supplier for the company’s new LNG-powered, Commitment Class ships, which will be delivered in 2017 for use in the U.S. mainland to Puerto Rico trade. To support Crowley’s LNG needs, Eagle LNG will build an LNG plant offering a capacity of 200,000 gallons per day (87,000 gallons per day initially) in Jacksonville. The state-of-the-art facility is slated to be operational by early 2017. The decision to partner with Eagle LNG was made by Crowley in part because of the companies’ shared commitment to the environment.
“Crowley is proud to take a leadership position in the industry’s shift to cleaner-burning, natural gas fuel solutions,” said Crowley’s John Hourihan, senior vice president and general manager, Puerto Rico services. “The partnership with Eagle LNG is an important first step in developing sustainable supply infrastructure to ensure these highly technical, environmentally friendly vessels operate to their full capability.”
“The marine sector represents a significant opportunity for LNG fueling in the U.S., and Eagle LNG is well-positioned to build the necessary infrastructure and provide the specialized logistics to facilitate this energy transformation,” said Dick Brown, CEO, Eagle LNG. “It takes companies like Crowley to lead that wave of change. Eagle LNG is proud to work with such a pioneering organization.”
“This project is an important investment in our community from both economic and environmental perspectives,” said Jacksonville Mayor Lenny Curry. “It clearly demonstrates the leadership role our region is playing in LNG development and progression, while strengthening our commitment to leaving a smaller footprint through cleaner-burning fuel.”
The supply agreement between Eagle LNG and Crowley will provide LNG fuel for the El Conqui and Taino, which are expected to be in service in the second quarter and fourth quarter of 2017 respectively. The Jones Act ships will replace Crowley’s towed triple-deck barge fleet, which has served the trade continuously and with distinction since the early 1970s. These new ships, will offer customers fast ocean transit times, while accommodating the company’s diverse equipment selection and cargo handling flexibility – benefits customers have enjoyed for nearly 60 years. The LNG plant is separate from the previously announced Eagle LNG Federal Energy Regulatory Commission (FERC) export terminal located along the St. Johns River, in Jacksonville, which will continue to focus on export markets in the Caribbean and Atlantic Basin.
DUAL FUEL BULKERS BUILT TO NEW DNV GL CLASS
ESL Shipping’s new dual-fuelled bulk carriers will not only be the first large LNG-fuelled bulkers, but the first vessels constructed to the new DNV GL rule set. Due for delivery in early 2018, the two highly efficient 25,600 dwt vessels are optimized for trading in the Baltic Sea region.
“It is fitting that the first vessels that will be constructed to the most forward looking set of classification rules are themselves at the cutting edge of maritime innovation,” says Knut Ørbeck-Nilssen, CEO of DNV GL – Maritime. “We have created these rules to be ready for the future and we have long pioneered the use of LNG as a ship fuel. To see these two come together in a double first for the industry is a remarkable moment. We look forward to working with ESL, Deltamarin, Sinotrans & CSC Qingshan Shipyard and all the project partners to make this project a success.”
“We are proud to be the world’s first shipyard applying the new and innovative DNV GL rules for a newbuilding, just two months after DNV GL has launched its new rules in October this year,” said Liu Guangyao, Deputy General Manager of Sinotrans & CSC at the Marintec China Trade Fair recently. “We appreciate the support that DNV GL has committed to provide on the project during both the design and construction phase, especially in a project with many advanced extra class notations. We are looking forward to a close cooperation and a successful delivery.”
Featuring the Deltamarin B.Delta26LNG design, the two highly efficient ships will feature dual-fuel main and auxiliary machinery, resulting in CO2 emissions per ton of cargo transported half that of present vessels. The bulk carriers will be built to the new DNV GL rules for general dry cargo ships with DNV GL ice class 1A and will have type C LNG tanks of approximately 400 m3 capacity enabling bunkering at several terminals within the Baltic region. The B.Delta26LNG has a shallow draft of maximum 10 m, an overall length of 160 m, and a breadth of 26 m.
“We are very excited to have been selected to take part in this ground breaking project,” says Morten Løvstad, Business Director Bulk Carriers at DNV GL. “Being asked to work with such an innovative team as the classification partner is a testament to the creativity and hard work that so many colleagues at DNV GL have invested in the new rule set. These vessels will set new standards for efficiency and environmental performance. They are an important step forward in showing how shipping can be a force for sustainability today and in the future.”
FIRST PURE LNG FERRY FOR GERMANY
Germany’s first LNG-fueled ferry, the MS Ostfriesland, has now been operating for AG Ems between Emden and Borkum Island on the ecologically sensitive Wadden Sea, since June 2015.
Originally built in 1985, the vessel was converted to dual fuel propulsion in a conversion that saw it fitted with a complete new aft end, construction of which got underway at German shipyard Brenn – und Verformungstechnik Bremen GmbH while the ship remained in service.
The new aft section, which extended the vessel’s length from 78.7 m to 93 m, houses the new machinery space and LNG fuel system/tank with the vessel now being propelled by two electrically powered Schottel STP Twin thrusters, each rated at 1,150 kW at 1,480 rpm.
While the prime movers are two 6-cylinder Wärtsilä 20DF dual-fuel generating sets, for navigating within harbors, the vessel uses two Mitsubishi auxiliary generators.
Switching to LNG fuel means providing against various unlikely malfunctions, such as an ignition failure resulting in an unburned mixture of gas and air in the exhaust. This could cause uncontrolled combustion and an increase in pressure the next time ignition takes place, putting a substantial strain on the pipe components.
To protect against this, the Mitsubishi auxiliary generators are protected by a Q-Rohr flameless venting system by German manufacturer Rembe GmbH that ensures that the reaction is vented directly at the exhaust.
Both the flame and the pressure are absorbed by the stainless steel mesh filter of the Q-Rohr, providing optimum protection for the pipe components and the environment.
Shipping is a crucial contributor to the economies of the Nordic countries—Denmark, Finland, Norway, and Sweden—and the industry continues to be a magnet to attract bright young talent. The region’s ship operators maintain an edge over competitors from lower cost areas by investing in newer tonnage that can be operated efficiently and they are ready to take advantage of every benefit than can be reaped from advances in technology. And, in today’s regulatory climate, it doesn’t hurt that the ecologically conscious Nordic countries are an incubator for green technology.
If we take a look at the numbers of ships controlled from Scandinavia countries published by UNCTAD, the statistics can be misleading. While Finland doesn’t make UNCTAD’s cut of the top 35 shipping nations, the Finnish Shipowners Association says its membership consists of 21 companies operating 101 ships.
What these numbers don’t show is the number of ships chartered in by the region’s shipowners or their strengths in some key sectors. The obvious example of this is Maersk Group. It is the world’s second largest shipowner in terms of its owned fleet (720 vessels totaling 25.5 million gt) but the largest in terms of number of ships controlled (767 vessels totaling 31.7 million gt).
As of the third quarter of last year, the average age of ships in the Norwegian fleet of foreign-going vessels (under Norwegian and other flags) was 10.9 years. Indicating how Norwegians keep the fleet fresh: In the first nine month of last year, 57 newbuildings totaling 2.09 million dwt were added along with 38 pre-owned vessels totaling 818,000 dwt. Equally significantly, disposals and losses totaled 126 ships and 2,.29 million dwt.
The Danish fleet is also young, in gross tonnage terms, 31.9% is under five years old, 28.7% is 5-9 years old, 23% is 10-14 years old, 12.2% is 15-19 years old and just 4.1% is 20 years old or more.
Keeping fleets young means ordering ships. Breaking down 2015 world newbuilding orders by owner’s country of domicile, we find Norway coming in at number 8, ordering 188 vessels totaling 8.7 million dwt and Denmark in the 11th place placing orders for 131 ships totaling 7.2 million tons.
PARTNERING WITH SUPPLIERS
Wherever ships are built—and whoever is buying them—a large percentage of their value is likely to be equipment produced by companies based in the Nordic region, who benefit from a willingness by the region’s shipowners to partner in trialing of equipment aboard ship in real life, working conditions.
Historically, this loop used to also include shipyards, but with the shift of shipbuilding to Asia, this is less the case today. Last year’s Danish Maritime Days included a workshop on “Lack of yard presence in innovation supply chain — How can we as an industry enable improved technology uptake through earlier involvement with the yards?”
Nobody in the room had an instant answer. But there were anecdotal references to the dangers of sharing information too readily with Asian shipyards that see nothing wrong with putting one shipowner’s bright ideas into competitors’ ships.
What remains of the region’s shipbuilding industry is mostly focused on smaller, specialized tonnage, but it retains much of the infrastructure of earlier days including, the intellectual property found in classification societies, design houses, research institutions, model basins and similar facilities—creating ships on the drawing board, the computer and in models that will eventually come to life in full-scale steel in Asia.
Meantime, of course, some yards remain very much in business and winning orders.
DENMARK: MOVING BEYOND
With shipbuilding migrating to lower cost countries, the shipyard capacity in the region has shrunk considerably. For example, there are only a handful of yards in Denmark.
One of those is Fayard A/S in Munkebo. Located on the Odense fjord, it is a large, primarily ship repair, facility whose slogan is “Speed is all—Quality is everything.” It has four large graving docks, all served by high capacity cranes, and a 700 m working berth.
Dry Dock 3, measuring 315/415 m in length and 90 m in width, is the largest dock and is capable of undertaking simultaneous construction work on a variety of ships. Dry docks 1 and 2, may be smaller in size but are 280/303 m lengths and 44/45 m widths and are used for repair and maintenance work on ships. Dry docks 4, measuring 145 m x 30 m x 8 m, is primarily used for smaller vessels. Docks 1, 2 and 4 have modern dock gates and pumping systems that allow the yard to start working on a vessel with 3-4 hours of arrival. The dock gates open or close in just four minutes.
Karstensens Skibsvaerft A/S in Skagen currently has a labor force of around 250, and can build vessels up to 135 m in length. While most are fishing vessels, the yard has been building three Knud Rasmussen-class of offshore patrol vessels, the third of which is near completion using a hull built at Poland’s CRIST shipyard last April.
Orskov Yard A/S in Frederikshavn converts and repairs all types of vessels in facilities that include two graving docks two floating dry docks with a capacity of up to 215 m x 34 m. The yard employs 230 people and cooperates closely with a wide range of subcontractors to provide all-round, one-stop solutions.
Søby Værft AS in Søby Ærø offers ship repair services using three graving docks with capacities up to 115 m x 24 m x 6 m. It also undertakes newbuildings and one project it is getting set for is the EU-supported E-ferry project, aimed at bringing into service a 4.2 mWh battery capacity electrically powered, ICE class B, single ended, drive-through RO/RO passenger ferry with one continuous main deck for trailers and cars. It will use state-of-the-art electric only systems with an automated high power charging system.
The initial aim is to demonstrate an energy efficient and emission free ferry for passengers and vehicles in an operational viable setup on the Soeby-Fynshav and Soeby-Faaborg connections in the Danish part of the Baltic Sea. The longer term aim is to see 10 more E-ferries in operation in Europe and worldwide every year, reaching a total of 100 or more by 2030— saving 100,000-300,000 tonnes of CO2 annually.
SWEDEN: WHERE DID THE YARDS GO?
The Nordic country with the fewest surviving shipyards is Sweden, where the once gigantic industry has shrunk to the point that it apparently no longer supports a national shipbuilding association—so statistics on it are hard to come by.
Newbuilding is pretty much confined to Saab Kockums naval shipbuilding activities and a handful of small yards involved in smaller tonnage.
Two large repair facilities are still operational. Oresund Dry Docks, in Landskrona on the Øresund Strait beween Denmark and Sweden has facilities that include a 195 m x 35 m graving dock and a 165 m x 28 m floating dock. Damen Oskarshamnsvarvet, on the west coast, has facilities that include an 80 m x 15 m floating dock. Activities at Damen Shiprepair Götaverken in Gothenburg ended in 2014, due to “the depressed situation of the Scandinavian shipping market, the increased number of Baltic repair docks and the appreciation of the Swedish Krona (SEK).
Though Gothenburg no longer has a shipyard, it still has one of Europe’s best known towing tanks, operated by SSPA Sweden AB.
SSPA has the capability to perform most kinds of model testing in its facilities: the towing tank, the large cavitation tunnel and the seakeeping and maneuvering basin – Maritime Dynamics Laboratory, (MDL). Wind tunnel tests can be performed at external test facilities.
All test facilities at SSPA are designed for performing tests with large models, which have many advantages as scale effects are reduced and more reliable measurements can be performed.
NORWAY, HANGING IN THERE
For those interested in the preservation of Norwegian shipbuilding capability, a big question in the months ahead will be whether the Vard Group, a Fincantieri company, can continue to keep five Norwegian shipyards alive based on its previously successful strategy of supplying primarily the offshore oil and gas sector with specialized vessels designed and fitted out in Norway using hulls built in Romania.
In addition to its Norwegian yards, Vard has two yards in Romania, two in Brazil and one in Vietnam. Vard’s biggest recent headaches have included well-documented problems with its Brazilian activities and it has said that these are under review.
Outside of Brazil, Vard’s problems are those shared by all shipbuilders historically dependent on the oil and gas sector—getting enough orders to keep capacity occupied and diversifying into other sectors.
Its most recent order came in November and was for design and construction of what was described only as “one offshore vessel for an undisclosed international customer.” It is being designed by Vard Design in Ålesund, Norway. The hull will be constructed at Vard Braila in Romania and outfitting and delivery is scheduled from Vard Langsten in Norway in 2017.
That order followed contracts worth a total $100 million for the design and construction of two offshore subsea construction vessels for Dubai-based Topaz Energy and Marine. The hulls will be constructed at Vard Tulcea in Romania, with delivery scheduled from Vard Brattvaag in Norway.
In the fisheries sector, Vard last year secured an order from Brevik AS of Norway for a coastal fishing vessel, but, for this vessel, Vard Braila in Romania will undertake all stages of production.
Another fisheries order came from a Canadian client and was for a 79 m stern trawler of Rolls-Royce NVC 374 design. Vard Braila will build the hull and the vessel will be fitted out at Vard Aukra in Norway in the fourth quarter of 2016.
Thus far, Vard has either not been looking at the offshore wind sector or has been keeping very quiet about it. That’s not the case with other Norwegian shipbuilders.
A significant current project currently under way at the Ulstein shipyard is the fitting out of the first of two innovative offshore wind industry Service Operation Vessels (SOV) being built for Germany’s Bernhard Schulte Offshore GmbH that will be Ulstein’s first for the offshore wind industry — and the first to feature its innovative X-Stern which allows a vessel to be positioned with the stern faced towards the weather instead of the bow.
The hull of the first X-Stern SOV hull arrived at Ulstein’s Ulsteinvik shipyard in January and is scheduled for sea trials starting late spring. Starting this summer, the vessel will work at the Gemini wind farm in the Netherlands for Siemens Wind Power Service.
A project underway at Fjellstrand AS is another pointer to the growing attraction of offshore wind service opportunities in a depressed oil and gas market. It is converting a platform supply vessel it delivered only in April of last year into a wind farm support vessel.
Havyard Group established its credentials in the offshore wind sector with the delivery last February of the first of three Havyard 803 SOVs to Denmark’s Esvagt. In addition, Havyard has an order from Esvagt for aa design and equipment package for a Havyard 931 CCV crew change vessel that will be built at Spanish shipyard Astilleros Zamakona.
Late last year, Esvagt ordered a further Havyard SOV, aimed at a new niche for vessels of this kind, smaller wind farms. This Havyard 831 design is described as compact and efficient, but with ample capacity to transport service personnel and equipment. The first Havyard 831is also being built outside Norway, at the Cemre shipyard in Turkey.
Though design and equipment deals are obviously profitable for Havyard, that leaves shipyard capacity to be filled and another sector where it has been successful is the design and construction of large fish carriers. Last November Havyard was able to fill a gap in production of these vessels by using the covered building dock at its Leirvik shipyard for refit and refurbishment of two Faroese fishing trawlers.
Kleven, operates two shipyards—Myklebust Verft and Kleven Verft—and its orderbook includes a deep sea minerals exploration vessel and several fisheries vessel in among the AHTs and OCVs.
A recent contract came from Sølvtrans and is for delivery of a live fish carrier vessel for Myklebust Verft. This is Kleven’s second order from Sølvtrans for this type of vessel, both of which are being built to to Rolls-Royce NVC 387 design.
While ship designs are part of the stock in trade at Ulstein, Vard and Havyard, Kleven’s orderbook is pretty much a portfolio for Norwegian specialist ship design firms. The deep sea minerals vessel, which is on order for De Beers Marine Namibia, is being built to MT 6022 design from Marin Teknikk. This design is well proven in the offshore construction segment, but the De Beers ship will include a wide range of tailor made equipment and features.
A large pelagic midwater trawler/ purse seiner that Kleven is building for Gitte Henning AS in Skagen, Denmark, is based on a design from another well known independent design house, Salt Ship Design, which in October had 16 vessels of its design under construction at Norwegian and foreign shipyards.
“Unlike the current offshore market, fisheries and fish farming are doing very well and these segments represents an increasingly important market for Salt,” it said.
In addition to the independent design houses and shipyard design divisions, Norway is also the home of Rolls-Royce’s and Wärtsilä’s Ship Design divisions, which have absorbed various independents over the years. Having a ship design department makes all sorts of sense for both of them, as a ship design is the envelope for, quite literally, a boatload of equipment and systems.
FINLAND, BACK FROM THE BRINK?
In Finland, thanks largely to government support —including diplomatic efforts— a large part of the shipbuilding industry has emerged from the ashes of what was STX Finland.
Most importantly, with a lot of Finnish Government coaxing, Germany’s Meyer Werft has acquired the Turku shipyard, enabling it to continue as one of the world’s premier cruise ship yards.
Shipbuilding has also returned to the Rauma shipyard after STX announced its closure in 2013, with the site being sold to the local municipality. The shipyard reopened as Rauma Marine Constructions Oy (RMC) the following year and in December 2015 reported that it was to “receive a major infusion of capital for further growth from the government backed Finnish Industry Investment Ltd, and two investment companies, Finda and a fund managed by Taaleritehdas. That news came the day after the Finnish Ministry of Defense issued a Request For Information to kick off a long planned plan to build four new corvette size vessels.
The Rauma shipyard also has considerable expertise in the area of icebreaking vessels — which keeps what is now Arctech Helsinki Shipyard from having a monopoly in that area. When STX Finland ’s troubles threatened the survival of the Helsinki yard, Russia’s United Shipbuilding Company took a 50% stake in and subsequently took total ownership control and the yard’s orderbook primarily includes advanced icebreaking tonnage for Russian projects, though an icebreaker for the Finnish Transportation Authority is currently fitting out.
The other repository of Finnish icebreaking knowhow is ice-going vessel design and engineering specialist Aker Arctic, whose capabilities include ice model testing. Its largest shareholder is Finnish Industry Investment, which is also major stakeholder in the reborn Rauma yard.
The cruise industry is seeing an increase in newbuild activity thanks to heightened demand from the Chinese market, and entrance into the ocean cruise market from a number of new enterprises. Beyond announcing its new social impact cruising brand, Fathom, Carnival Corporation & plc is increasing its stake in the Asian market announcing that four of its brands will operate out of the region.
Carnival sees China developing into “the world’s largest cruise market based on surging demand for cruise vacations,” according to Carnival. Under its current plan Carnival Corp. will serve the Chinese market with Carnival Cruise Line, AIDA Cruises, Costa Cruises (Costa Asia) and Princess Cruises.
The cruise giant ended 2015 by signing an agreement with Fincantieri S.p.A. to build four new ships, including two for Costa Asia for deployment in China. In total, Carnival Corporation has a total of 17 new ships on order and scheduled for delivery between 2016 and 2020.
Carnival Corp. isn’t alone in its Chinese ventures. Norwegian Cruise Line Holdings (NCLH) has also announced its entry into the China cruise market—with its first purpose-built customized cruise ship for its Norwegian Cruise Line brand. The ship is slated for entrance into the region in 2017.
The Breakaway Plus-class vessel will have capacity for 4,200 guests and will be “designed specifically for the China market with accommodations, cuisine and onboard experiences that cater to the unique vacation preferences of Chinese guests,” according to NCLH. Furthering its support of the company’s expansion efforts in China, NCLH opened a number of offices in the country in order to support all three of its brands growth in the region—Norwegian Cruise Line, Oceania Cruise and Regent Seven Seas Cruises.
Newcomers enter the market
Sir Richard Branson, founder of the Virgin Group, is no stranger to new ventures. The billionaire businessman has had his hands in everything from the record industry to telecommunications to airlines.
Extending his reach further into the transportation sector—the Virgin Group operates an international airline as well as trains in the UK—Branson and his group are now entering the oceangoing cruise market with the launch of Virgin Cruises—a joint venture with Bain Capital. The goal for Virgin Cruises is to “shake up the cruise industry and deliver a holiday that customers will absolutely love,” said Branson after the announcement of Virgin Cruises was made.
Leading Virgin Cruises is CEO Tom McAlpin who is no stranger to the cruise market having previously served as President of Disney Cruise Line.
Since its launch, Virgin Cruises has announced that it has signed an agreement with Fincantieri to build three mid-size 110,000- gross ton cruise ships, with delivery set for 2020 through 2022. The ships will each feature accommodations for 2,800 guests and 1,150 crew.
Virgin Cruises also announced that it has partnered with PortMiami, where the ships will homeport and depart from for seven-day itineraries to the Caribbean.
With the tag line of “Let’s Make Waves,” Virgin Cruises is offering its customers the unique opportunity to have a say in shaping the new cruise line. “Virgin is a customer-built brand that listens carefully to what customers want and then works hard to deliver for them,” said McAlpin. “We are committed to making waves in the cruise industry, and partnering with Fincantieri and PortMiami sets Virgin Cruises up to do just that.”
Meanwhile, a fairly recent newcomer to the ocean going cruise market, Viking Ocean Cruises, a spin off of the Viking River Cruises brand, took delivery of the Viking Star last year—the ship is the first in a series of three being built by Fincantieri for the brand. The two remaining ships, the Viking Sea and Viking Sky are scheduled for delivery in 2016 and 2017, respectively.
Lindblad orders two from Nichols Brothers
A merger deal completed last year between Lindblad Expeditions and Capitol Acquisition Corp. III has breathed new life into the Lindblad fleet. Linblad Expeditions, a long-time expedition partner of National Geographic, recently signed a deal with Nichols Brothers Boat Builders for the construction of two U.S.-flagged coastal vessels.
The vessels are to be built at a purchase price of $48 million and $46.8 million, respectively, and will be designed by Seattle-based Jensen Maritime, Crowley Maritime’s naval architecture and marine engineering arm.
“These new ships mark an exciting step in the long-term growth of the company and enable us to capitalize on the substantial demand for our expeditions,” said Sven Lindblad, President and CEO of Lindblad. The new ships also help mark an important milestone for Lindbland as it is “the 50th anniversary of the birth of expedition travel begun by my father, Lars-Eric Lindblad,” added Lindblad.
One of Lars-Eric’s ultimate goals was to create an experience for passengers that would take them to places no tourists had gone before—and with that trip produce experiences that would help establish an understanding and appreciation for those remote places.
These new ships, in particular, will conduct tours between Baja, Costa Rica and Panama during the winter months and southeast Alaska, Oregon, Washington and Canada during the summer months.
Shipbuilder Nichols Brothers Boat Builders is no stranger to working with the Lindblad brand. The shipyard built the operators current U.S.-flagged ships, the National Geographic Sea Lion and National Geographic Sea Bird, back in 1982.
The new 238 ft vessels, will be built with the same explorer spirit in mind, but will be “larger, more comfortable accommodations for 100 passengers,” says Gavin Higgins, Chief Executive Officer, Nichols Brothers Boat Builders (pictured).
The twin-screw diesel ships will include 50 cabins, an outdoor walkway around the entire sun deck, a fully equipped fitness room and Wellness spa; and a number of dining and entertainment facilities. Additionally, the ships public spaces will be designed to provide maximum viewing of the vessel’s surroundings.
The shipyard is hiring 40 additional workers to help work on the vessel, and making additional modifications to its launch system to accommodate the vessels’ length and capacity, says Higgins.
The new expedition cruise vessels will feature state-of-the-art expedition technology, including a remotely operated vehicle, video microscope, and a hydrophone and bow-cam designed for immediate bow deployment to hear and film marine life, such as whales and dolphins.
The ships will also be equipped with a state-of-the-art A/V system for high quality presentations, including National Geographic instruction.
Before the new ships are built, however, Jensen will provide a 3D model detailing all of the structural, electrical, mechanical and HVAC systems of vessels. The full-size 3D computer model will enable Lindblad to assess and confirm the vessels layout and will also help ensure the vessels’ safety, maintainability and constructability.
The first new ship is scheduled for delivery second quarter of 2017, followed by the second vessel in 2018.
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Visionary, consistent, and determined—these adjectives are just some of the many that can be used to describe Tara Russell, Founder and President of Fathom, a new cruise brand launched under the Carnival Corporation & plc umbrella. What makes Fathom unique is its mission of providing a new kind of cruising experience to those on board—what it calls “social impact travel.”
From its logo to its leader, Fathom is a brand with its heart set on cruising with a well-intended purpose: Making the world a better place. Russell, for her part, has years of practice in leading the way for social change. Throughout her 20 years of working in both the global and private sector—she’s worked for Nike, Intel and General Motors—Russell has founded (or co-founded) a number of organizations meant to make the world (and its people) better.
Before joining Carnival Corporation, she founded and served as CEO of Create Common Good, a non-profit that puts “love in action,” by providing foodservice job training and job placement assistance to those with difficulties in finding employment—this enables the individual to become self-sufficient and financially independent.
Prior to that, she co-founded Jitasa, a global social venture that provides financial services, predominately accounting and bookkeeping services, to the non-profit industry.
She also worked in Thailand for four years offering pro bono small business development training to non-governmental organizations (NGOs). During her stay in the country, she co-founded NightLight, an international organization that addresses the complex issues surrounding human trafficking and prostitution—this included helping women seek freedom from sexual exploitation in Thailand where a large number of the world’s sex trade takes place.
According to the U.S. Department of State’s 2015 Trafficking in Persons Report, there are “an estimated three to four million migrant workers in Thailand, most from Thailand’s neighboring countries.” Meanwhile, “Sex trafficking remains a significant problem in Thailand’s extensive sex trade—often in business establishments that cater to demand for commercial sex.” NightLight offers an outreach program of sorts, where it helps build support networks, provides intervention and assistance to those in need; and offers alternative job opportunities, training, and physical, spiritual and emotional development.
As for her approach and transition to Fathom, Russell explains, “Having worked in both the private sector at Fortune 50 companies and in the non-profit social impact space, I saw a real opportunity to bring the two together to create [an] authentic and enduring social impact.”
She adds, “The business leaders at Carnival Corporation shared my vision. So we worked together to find ways to harness the resources of the world’s largest cruise line and combine [it] with the talents and hearts of those working with social entities.”
The wheels started turning for Fathom during the summer of 2013 when CEO of Carnival Corporation Arnold Donald and Russell met. “The executive leadership of Carnival Corporation had been eager to find ways (where possible) to harness the scope and scale of the company’s global resources for social impact,” explains Russell. “As such, Carnival Corporation had been exploring unique opportunities—both tailored to individual brands and beyond—to integrate social impact into its operations.”
After their meeting in 2013, Russell and Donald spent the better part of 2014 “building the vision, designing the product, developing the impact travel concept, and testing and sizing the market.”
“Fathom’s vision,” explains Russell, is to “harness and leverage Carnival Corporation’s assets for the greatest possible transformative impact, globally. We will send 704 travelers on every trip—thousands of travelers a year—to communities in need, providing tremendous scale that will sustain several ongoing programs.
“This continuity of support—different travelers going to the same community on a regular basis—is what will make a major difference in the lives of people and communities,” adds Russell.
Going in deep
When Fathom was launched in June 2015, Carnival specifically chose the United Palace Theater in the Washington Heights area of Manhattan, NY, to announce the new brand to the world.
The setting for the launch was apropos as it was announced then that the Dominican Republic would be the first destination for Fathom’s impact travel. Washington Heights is a predominately Dominican neighborhood, with most of its residents moving to the area directly from the Dominican Republic.
The brand’s ship, the 704-passenger Adonia, will make its first trip to the Dominican Republic this coming April. Prior to joining Fathom, the 592 ft Adonia was the smallest ship in the P&O fleet. P&O is also a part of the Carnival Corporation brand.
Why the Dominican Republic? Fathom says that while the country is stunningly beautiful, it’s also a country very much in need. According to the U.S. Central Intelligence Agency’s (CIA) “The World Factbook,” 41.1% of the population in the Dominican Republic is living under the poverty line.
Fathom notes that the average household income is approximately $6,000 a year, more than three million Dominicans have no access to piped water, and education is incredibly underfunded—thus perpetuating the cycle of poverty with each new generation.
To see how Fathom could help, Russell explains that she and Donald met with “key Dominican Republic community leaders to understand the need and how best to leverage the existing infrastructure of local organizations to become involved in creating enduring impact in our first destination market.”
Among these key community leaders are Fathom’s “lead impact partners,” Entrena and the Instituto Dominicano de Desarrollo Integral, Inc. (IDDI). Entrena and IDDI helped Fathom “understand the specific needs in the northern region of the country and identified the areas of most need where Fathom travelers could provide meaningful, long-term and sustainable impact,” says Russell.
“We then collaborated with them to develop detailed projections regarding the scale of impact we intend to create together with our partners, our travelers and our communities.”
Entrena and IDDI are both already established organizations in the Dominican Republic. Entrena specializes in training, education and social entrepreneurship. Meanwhile IDDI’s primary objective is to contribute to the transformation of the human being, families and communities, so that they can live a productive and healthy life.
By partnering with entities such as these—that already have a system and structure in place—Fathom ensures that its travelers (the term it uses for its passengers) will be working within programs that are already making a difference in the region—and that the work will be continuous throughout the year—even as the travelers are different every week.
Fathom’s impact travel to the Dominican Republic is a seven-day experience, with three days working on the island.
Upon reaching the Dominican Republic, Fathom travelers will be immersed in a variety of projects—operated by Fathom’s local impact partners—focused on economic development, education and the environment.
Travelers will participate in activities such as supporting the reforestation efforts in the region, cultivating cacao plants, supporting local youths learn/practice English, and assisting local women’s cooperative in producing artisan chocolates—just to name a few.
Fathom projects that its impact travel work with its partners, travelers and communities could lead to higher English proficiency through Student English Learning—this will help with employment opportunities; greater access to high-quality recreational enrichment activities for students during the school day; an increase in local entrepreneurship; the planting of 20,000+ trees which will lead to more nutrient rich soil and higher agricultural yields; and access to cleaner water, with the production of ceramic water filters—5,000+ filters are expected to be generated each year.
The route to Cuba
Shortly after Fathom’s launch, it was announced that the brand named its second destination: Cuba.
The U.S. Department of the Treasury granted approval to Carnival Corporation back in July. Since then, Carnival has been in active discussions with the Cuban government, according to Russell.
Cuba has been closed off to U.S. travelers by sea for more than half a century. And while a number of operators are jumping on the Cuba (mostly ferry) bandwagon—Fathom promises an entirely soul-enriching experience for both its travelers and the Cuban people.
“The overarching objective of our visiting Cuba will be to connect to the heritage of that country through an immersive program that encourages cultural, artistic, and faith-based exchanges between American and Cuban citizens,” says Russell.
“In Cuba, the focus of our travel is defined by the Cuban Assets Control Regulations and authorized American travelers must engage in Cultural, artistic, religious and humanitarian exchanges with the Cuban people. There, we will collaborate with approved licensees or General licensees on initial itinerary development to ensure proper compliance is programmed and maintained throughout each voyage,” explains Russell.
According to Fathom, the itinerary in Cuba will include “diverse on-the-ground immersion experiences,” with activities including “engaging artists, experiencing the local food and music culture, meeting local Cuban business professionals, understanding micro-enterprise and the agricultural sector, connecting to the education system and youth.”
Pending approval from the Cuban government, Fathom could set out to Cuba as early as this May.
What comes next?
When asked what countries Fathom has next on its agenda, Russell says the goal for now is to focus on its work in the Dominican Republic and Cuba, ensure success in the regions, and establish long-term partners in each country.
Wherever Fathom goes, however, the goal will be the same: to leave that place and its people, better off.
“Ten years from now,” says Russell, “I’d love to believe that we have helped eradicate unemployment in the Dominican Republic and in many of the places that we visit. I want to believe we have helped to give children and youth the tools to fall in love with education, have helped to improve the environment and health outcomes that have been a part of making people generally healthier. My hope and intent is that the locations we [Fathom] travel to, flourish.”
Fathom is a cruise line intent on changing the world—its led by a woman who wears her heart on her sleeve, and is supported by a parent company that wants to have a positive impact on the global community. Fathom proves its purpose through its promises, through its partnerships and its actions. Even its logo is a reminder of its intention, take a glance at it and you’ll see what Fathom is all about—it “signifies open arms that embrace the world and serves as a reminder that the Fathom brand stands for love in action and transformative travel,” asserts Russell.
To join the movement and help create positive impact, visit www.fathom.org
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