ME-GI for first Crowley ConRo passes milestone test

The engine is the first of two 8S70ME-C8.2-GI units for delivery to VT Halter Marine, Pascagoula, MS, for installation in the two 2,400 TEU ConRo ships it is building for Crowley Maritime Corporation.

The vessels will be two of the world’s first LNG-powered ConRo ships, with container Lift-on/Lift-off (LO/LO) and vehicle Roll-on/Roll-off (RO/RO) loading. Designed to travel at speeds up to 22 knots, they will be 219.5 m long, 32.3 m wide and have a deep draft of 10 m. In addition to carrying 2,400 TEU of containers they will be able to carry nearly 400 vehicles in an enclosed Roll-on/Roll-off garage.

Crowley ordered the ME-GI engines, along with three MAN 9L28/32DF auxiliary engines for each vessel, in early-2014. The company selected the high-pressure, Diesel-cycle ME-GI engines because of their high efficiency and power concentration. The ME-GI’s ability to avoid derating, and its negligible methane slip, also contributed to its selection.

Crowley reports that the newbuildings will reduce the amount of CO2 emissions attributable to each container by approximately 38%.

The ships will meet or exceed all regulatory requirements and will have the CLEAN notation, which requires limitation of operational emissions and discharges, as well as the Green Passport, both issued by DNV GL.

The ME-GI engine

The ME-GI engine is the culmination of many years’ work, and gives shipowners and operators the option of utilizing fuel or gas depending on relative price and availability, as well as environmental considerations.

The ME-GI uses high-pressure gas injection that allows it to maintain the numerous positive attributes of MAN B&W low-speed engines that have made them the default choice of the maritime community. The ME-GI is not affected by the multiple de-ratings, fuel-quality adjustments or large methane-slip issues that have been seen with other dual-fuel solutions.

MAN Diesel & Turbo sees significant opportunities ahead for gas-fueled tonnage as fuel prices rise and exhaust emission limits tighten. Research indicates that the ME-GI engine delivers significant reductions in CO2, NOx and SOx emissions. Its negligible methane slip makes it even more environmentally friendly

An ME-LGI counterpart that uses LPG, methanol and other liquid gases is also available, and has already been ordered.
Factory Acceptance Test attendees pictured in front of the ME-GI engine at MES’s Tamano Works

American Club sets up Cyprus based hull insurer

The American Club says the investment will allow further expansion into the global hull & machinery segment, enabling it to offer high quality insurance services and innovative customer solutions.

American Hellenic will be a Cyprus-based and licensed, Solvency II compliant, wholly-owned American Club subsidiary. It will be managed from Piraeus, Cyprus and New York, utilizing the expertise of long-standing professionals in the marine insurance market and will be serviced through specialists in offices located in seven global shipping hubs with the ability to provide local market know-how and service to its customers, and to communicate in eleven languages.

The American Club will now be able to continue offering first class marine protection and indemnity cover while also, through American Hellenic, offering an expanded product line of marine insurance including hull & machinery, war risk, and mortgagee interest insurance.

The American Club’s Board voted unanimously for the initiative, which Chairman of the Board, Arnold Witte, called “an historic moment in the club’s long history.”

He noted that it was “sparked by the idea of Board member Angelos Kostakos” and was a unique opportunity to prudently expand the club’s market footprint.”

“American Hellenic is an investment in the American Club’s future and is yet a further step in expanding and diversifying the club’s product line,” said Vincent Solarino, President and COO of Shipowners Claims Bureau, Inc., managers of the American Club. “It is part of the club’s overarching plan to significantly increase its revenue across a growing range of product lines, its tonnage across all lines, andexpand its market presence, while increasing its S&P rating.”

Joe Hughes, Chairman and CEO of the American Club’s Managers, said: “This is one of the most significant developments in the American Club’s recent history. The transaction proceeded with the close and active cooperation of the Board of Directors of the American Club. I am certain that American Hellenic will prove to be a powerful force of growing energy within the international marine insurance industry.”

 

Maersk 19,600 TEU giants to have waste heat recovery

 

DSME has placed an order with Mitsubishi Heavy Industries Marine Machinery & Engine Co., Ltd. (MHI-MME) to supply the ships with its proprietary system for generating electric power by maximizing recovery and utilization of exhaust gas waste energy from marine diesel engines.

The systems ordered for the Maersk newbuildings takes the total number of MHI-MME’s WHRS units ordered to 87 since the system’s market introduction in 2010. Maersk has thus far been the biggest customer the system, with 69 units ordered for installation in four series of ships, including its 18,300 TEU Triple-E vessels.

The WHRS is MHI-MME’s best-selling product and the company holds a greater than 90% share of the WHRS global market.

The schematic below shows the principles of the system.

Image of WHRS

 

Singapore takes another step toward LNG bunkering

This week the MPA took another step toward the planned early 2017 launch of the LNG Bunkering Pilot Program (LBPP) which is aimed at developing Singapore as a key LNG bunkering hub in Asia.

The Port of Singapore is inviting interested companies to tap into Singapore $12 million available from the MPA’s Maritime Innovation & Technology Fund for the building of LNG-fueled vessels. The MPA will provide up to Singapore $2 million (about US$ 1.4 million) per vessel, capped at two successful funding applications per company.

Companies must be incorporated in Singapore, and the funded vessels must be flagged under the Singapore Registry or licensed for activity in Port of Singapore for a period of at least five years.

MPA has been collaborating closely with partner agencies, industry stakeholders and technical experts, to develop LNG bunkering standards, procedures and infrastructures.  On July 28 it announced its Request for Proposal (RFP) for interested parties to apply for an LNG bunker supplier license allowing the them to supply LNG bunkers to vessels in the Port of Singapore.

Survey shows shipowners still watching the purse strings

Though there were variations in different sizes and types of ships, industry wide all categories of expenditure were down on those for the previous 12-month period.

“This is the third successive year-on-year reduction in overall operating cost,” says Moore Stephens partner Richard Greiner. “This comes as something of a surprise, and is contrary to earlier forecasts. Shipping is clearly watching the pennies, and it may also be the case that more competitive pricing for goods and services has had a part to play in holding down expenditure. Beyond that, as always, the impact of exchange rate changes cannot be determined readily.

“By far the biggest reduction in operating costs, for example, was seen this time in the Stores category. This can be largely explained by the knock-on effect which the fall in oil prices has had on lube oil costs. Such ‘benefits’ do not come often to any industry, and are usually not without a downside, as has been the case in shipping.

“Crew costs were down, albeit marginally, for the first time in recent memory. This could be an indication of a higher level of idle tonnage during the period under review, but is nevertheless welcome news for an industry which has seen crew cost increases of more than 20% at their peak.

“Expenditure on repairs and maintenance was also marginally down on 2013, possibly attributable in part to weak steel prices and in part to the fact that poor freight rates arguably do not encourage owners and operators to engage in anything but the most essential repairs and maintenance. It is to be hoped that there is not a future price to be paid in this respect in terms of either safety or performance.

“The bill for insurance coverage was also down, which will come as little or no surprise in view of the high level of competition in the insurance market, which is arguably even fiercer than that in the shipping industry.

“A third successive annual fall in operating costs must be good news for an industry already facing serious financial challenges and preparing to meet still more. But a bigger-picture view provides an insight into just how much operating costs have increased in recent years. OpCost is now in its fifteenth year of publication. At year-end 2001, the average daily operating cost for a Panamax Bulk Carrier was $3,565. In 2014, it was $6,046. For a Handysize Product Tanker, the comparable figures were $4,164 and $7,931

.”The challenge for shipping is how to build the cost of operation into freight rates in a way which allows for a reasonable profit margin in an industry which is driven by competition and characterized by overtonnaging. Given that, over the next few years, annual seaborne trade is projected to grow at a reasonable rate, and that the cost of regulatory compliance is likely to increase significantly, one would expect operating costs to rise over the same period. Two things are certain. Firstly, the business of operating ships will remain a costly undertaking. Secondly, the impetus for higher freight rates will not come from the shipping industry’s customers.”

The 2015 edition of OpCost is available online. Running cost information is obtained on a confidential basis from clients of Moore Stephens, and from other shipowners and ship managers who submit data for inclusion. OpCost 2015 is available free to owners who submit their data for inclusion. Alternately, it can be purchased.

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Saga Cruises orders 1,000 passenger newbuild at Meyer

The dock is presently used for block construction and by reopening it the shipyard will be able to deliver three cruise ships, including the Saga newbuild. The cruise line’s memorandum of agreement with Meyer has an option for a second vessel for 2021 delivery.

The Meyer Werft ship will be Saga Cruises’ first newbuild.  Catering for passengers in the 50+ age group, the cruise line currently has two ships, the 446-passenger Saga Pearl II and the 706-passenger Saga Sapphire, both built in 1981. According to Daily Telegraph, demand for sailings on the ships is extremely high: they carried around 25,000 passengers last year, with a 75 per cent repeat passenger rate.

The new ship will be 234 m long by 30.8 m wide and will have 540 cabins, all with balconies and with about 15% designed for passenger cruising solo.

“This is an important milestone in the future of Saga Cruises,” said the line’s CEO, Robin Shaw. “We are happy to develop this vessel, tailored to our individual needs, and we’re delighted to be working with Meyer Werft, a recognized leader in cruise ship construction.”

Crowley takes delivery of first LNG-ready Jones Act tanker

Crowley says the delivery is momentous not only for Crowley, but also for the industry because it is the first time a product tanker has been constructed with consideration for the future use of LNG as fuel. The remaining three ships in the series have planned deliveries through 2016.

The ships are based on a proven Hyundai Mipo Dockyards (HMD) design which incorporates numerous fuel efficiency features, flexible cargo capability, and meets the latest regulatory requirements. The vessel is 600 feet long and is capable of carrying crude oil or refined petroleum products.

Crowley’s Seattle-based, naval architecture and marine engineering subsidiary Jensen Maritime is providing construction management services for the product tankers. Jensen now has an on-site office and personnel at the Philadelphia shipyard to ensure strong working relationships with shipyard staff and a seamless construction and delivery program.

“We are excited to offer our customers cutting-edge technology available in these new tankers, which not only embraces operational excellence and top safety, but also offers the potential to be powered by environmentally friendly LNG in the future,” said Crowley’s Rob Grune, senior vice president and general manager, petroleum and chemical transportation. “Adding these new Jones Act tankers to our fleet allows us to continue providing our customers with diverse and modern equipment to transport their petroleum and chemical products in a safe and reliable manner.”

“We are proud to have Crowley as a repeat customer at the shipyard and to deliver another quality tanker to them. This vessel continues our strong history of building ships here in Philadelphia,” said Aker Philadelphia President and CEO Steinar Nerbovik.

MSE swoops on gas specialist TGE Marine

 

TGE Marine is a leading provider of engineering services for the design and supply of gas carriers, fuel gas systems and offshore units. Its deliver turnkey solutions for engineering, design, procurement and construction supervision (EPCS) of marine gas handling and storage systems as well as vessel designs. It specalizes in the containment and handling of cryogenically stored gases and is a market leader in the ethylene carrier and small LNG carrier segment.

It is a pioneer in LNG fuel gas systems and LNG bunkering. Most of its customers are commercial shipyards that build gas carriers.

MES says that with the demand for small-to-medium sized carriers for LNG, ethane and ethylene gas, and LPG expected to increase it is currently engaged in the development and sale of medium sized multi-gas carriers. And with the increasing focus on environmentally friendly marine fuel, it has been engaging in the development and sale of electronically-controlled dual fuel gas injection diesel engines (ME-GI) and high-pressure compressors for fuel gas supply systems that can use not just heavy oil, but also natural gas as fuel.

The technology and the engineering and construction knowhow and strong customer bases at both MES and TGE are expected to be highly compatible with each other and, by bringing all of this together, MES believes the two companies will be able to establish an excellent market position in the global small-to-medium sized gas carrier market and offer high value-added solutions to their customers. Furthermore, MES offering its core gas fuel products, such as engines and high-pressure compressors, is expected to produce significant synergies with TGE’s fuel gas supply system.

Panama Canal Authority issues update on leaks in new lock

ACP says that it has now been told by contractot Grupo Unidos por el Canal, S.A. (GUPC) that the localized seepage found in the concrete sill between the lower and middle chamber of the Canal’s expanded Pacific Lock was the result of insufficient steel reinforcement in the area that was subjected to stress from extreme condition testing.

After careful examination of all the other sills in both lock complexes, GUPC stated that in addition to reinforcing the sill that presented the issue, it would also reinforce the first and second sill in the Cocoli Locks and the first three sills in the Atlantic-facing Agua Clara Locks as a preventative measure, though these sills have not presented any issue.

ACP said that GUPC also verbally indicated that the completion date for the Expansion Project will remain April 2016, as planned; however, the ACP is awaiting formal confirmation from GUPC, in the form of a comprehensive report which should also include the root cause of the detected filtrations.

ACP says that its contract with GUPC clearly states that the group is responsible for all corrections that may be required. The contractor has an obligation to ensure the long-term performance on all aspects of the construction of the locks and to complete the Expansion Project following the quality standards established in the contract.

ACP says it “will continue to assess the situation and communicate next steps.”

Willard takes new Mission Pro 730 RHIB on U.S. tour

The nearly 24 foot long and 9-foot wide RHIB is designed with a deep-V hull for maximum stability in the roughest sea conditions, and delivers 300 horsepower from twin 150 Mercury four-stroke engines.

The 40-ounce polyurethane WING inflatable collar has reinforced rub-strakes to reduce risk of boat damage upon boarding and stability during weight shifts.

For protection from the elements, there is an aluminum T-top over the ergonomic center console, which features cup holders, a weather-protected laptop compartment, and an aft-folding windscreen that is safe and convenient for one-person crews

Willard Marine designed the Mission Pro 730 based on the 7-meter RHIB it has provided to the U.S. Navy for 35 years.

Interviews with law enforcement and first responder professionals underscored the need for a durable vessel that would withstand the test of time and lower the total cost of ownership, which is what the Navy and other military branches have required of Willard Marine for decades.

As requested in these interviews, the Mission Pro 730 also provides substantial dry storage and multiple options like tow-posts, gun lockers, communications gear, electronics packages, boat colors and graphics.

“For 35 years, Willard Marine has built strong, dependable vessels for American and international militaries around the world,” said Ulrich Gottschling, president of Willard Marine. “We are proud to offer first response professionals a genuine mission-proven boat like the Mission Pro 730 that they can depend on for optimum performance and minimal maintenance year after year.”

Built to USCG and ABYC specification standards, the Mission Pro 730 can be customized to an agency’s unique mission requirements and performance specifications.

Willard Marine is the exclusive builder of commercial vessels originally designed by SeaArk Marine and Crystaliner. Based in California with facilities in Maryland and Virginia, Willard Marine is ISO 9001:2008 certified and the sole American manufacturer of SOLAS rescue boats. 

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