Aker Philly cuts steel for two more Kinder Morgan tankers

Construction on the two Jones Act vessels officially began in the shipyard’s fabrication shop when guest of honor Pennsylvania Lieutenant Governor Mike Stack pushed the button on the shipyard’s plasma cutting machine. The first steel plates that were cut will later become part of the engine room.

At the ceremony, the shipbuilder’s President and CEOI, Steinar Nerbovik, said: “With construction underway on these two product tankers, we celebrate the capstone of an exciting eight tanker series that is part of Philadelphia’s contribution to the energy landscape of this country. The 1,100 men and women working at the shipyard will be busy for years to come completing these tankers and the other vessels we have under contract.”

“We are very pleased to be working with the Aker Philadelphia Shipyard on the construction of four, LNG-conversion-ready tankers, and the start of construction of these two vessels marks a milestone for our expanding fleet,” said Robert Kurz, Vice President of Kinder Morgan Terminals and President of APT. “There continues to be a strong demand for domestic marine transportation of petroleum products and crude oil, and these tankers will provide Kinder Morgan with additional new tonnage to better service our customers.”
The next generation 50,000 dwt product tanker is based on a proven Hyundai Mipo Dockyards (HMD) design that incorporates numerous fuel efficiency features, flexible cargo capability, and the latest regulatory requirements. When completed, each of the 600-foot tankers will have a carrying capacity of 14.5 million gallons to transport crude oil or refined products.

Also under construction at the shipyard are three 50,000 dwt product tankers for Crowley with planned deliveries through 2016, the first two 50,000 dwt tankers for APT with planned deliveries in 2016 and 2017, and two containerships for Matson Navigation Company, Inc. with planned deliveries in 2018.

NNS switches its steam plant from HFO to gas

 The plant generates low-pressure steam to heat many of the shipyard’s facilities, to provide process heat and to support hotel services—including hot water, food preparation and galley services—to the ships undergoing construction and overhaul.

“We started researching and evaluating alternative options about four years ago with the goal of implementation by 2016,” said Bill Cash-Robertson, a Newport News Shipbuilding environmental engineer. “Not only does the conversion to natural gas make good business sense, it’s more efficient, it’s cleaner, and it’s safer to operate.”

The old system, which included three 70-year-old boilers, burned about 6 million gallons of heavy fuel oil last year, costing the shipyard about $15 million.

Plant Engineering Supervisor Ken Allmon, a member of the shipyard’s energy management team, said the new system will reduce greenhouse gases by 30 percent and save the shipyard several million dollars per year in lower utility costs.”The team is proud of our work to overcome technical challenges and implement a solution that is a win for everybody,” he said.

Will Koeck, the project’s construction engineer, said one challenge was to safely remove and install large boilers in a plant that had to continue operating during the conversion. “We met the challenge with careful coordination and planning, and we had the first new boiler in place making steam in December 2014,” he said.

Aker Philadelphia cuts steel for Matson 3,600 TEU box ships

In 2013, Matson subsidiary Matson Navigation Company, Inc. signed a contract with Aker Philadelphia Shipyard Inc. (APSI) to build the two new ships for a price of $418 million for the pair (see earlier story). Since signing the contracts, engineering, planning and procurement work have been underway.

The shipbuilder is expected to deliver the ships in the third and fourth quarters of 2018.

The 850-foot long, 3,600 TEU vessels will be Matson’s largest ships and the largest Jones Act containerships ever constructed. Despite their size, they are designed to accommodate future needs by being able to navigate safely into some of Hawaii’s smaller ports.

They will also be faster, designed to operate at speeds in excess of 23 knots, helping ensure timely delivery of goods in Hawaii.

The new vessels will incorporate a number of “green ship technology” features including a more fuel efficient hull design, dual fuel engines that can be adapted to use liquefied natural gas (LNG), environmentally safe double hull fuel tanks and fresh water ballast systems.

“These new ships are the future for Hawaii shipping and will bring a new level of efficiency and effectiveness to our service,” said Matt Cox, president and CEO, Matson. “The substantial investment in new technology underscores Matson’s long-term commitment to Hawaii and our desire to serve the islands in the best, most environmentally friendly way into the future.”

The first ships to be delivered by Aker Philadelphia were four Jones Act containerships for Matson delivered between 2003 and 2006.

“We are excited to partner with Matson again and return to our construction roots building containerships,” said Aker Philadelphia President and CEO Steinar Nerbovik. “It’s an exciting time to be a shipbuilder as we embark on simultaneously building containerships and product tankers, fulfilling our commitments to customers and shareholders.”

BAE San Diego books Navy awards worth $104.25 million

The awards are for work on the USS Milius (DDG 69) and USS Cape St. George (CG 71).

The Milius award is a $53,633,494 modification to previously awarded, cost-plus-award-fee, cost-plus-incentive-fee contract (N00024-11-C-4408) for the ship’s fiscal 2015 extended selected restricted availability.

An extended selected restricted availability includes the planning and execution of depot-level maintenance, alterations, modernizations, and modifications that will update and improve the ship’s military and technical capabilities.

Work will be performed in San Diego, and is expected to be completed by December 2016.

Fiscal 2015 other procurement (Navy) funding in the amount of $33,527,206; and fiscal 2015 operations and maintenance (Navy) funding in the amount of $20,106,288 will be obligated at time of award. Contract funds in the amount of $20,106,288 will expire at the end of the current fiscal year.

The shipyard’s award for the Cape St. George is a $50,625,133 modification to previously awarded cost-plus-award-fee, incentive-fee contract (N00024-11-C-4400) for the ship’s fiscal 2015 extended drydocking selected restricted availability.

An extended drydocking selected restricted availability includes the planning and execution of depot-level maintenance, alterations and modifications that will update and improve the ship’s military and technical capabilities.

This modification includes options which, if exercised, would bring the cumulative value to $51,016,432.

Work will be performed in San Diego, and is expected to be completed by September 2016.

Fiscal 2015 operations and maintenance (Navy) funding in the amount of $48,059,799; working capital funding in the amount of $2,392,527; and fiscal 2015 other procurement (Navy) funding in the amount of $172,807 will be obligated at time of award.

Contract funds in the amount of $48,059,799 will expire at the end of the current fiscal year.
The Southwest Regional Maintenance Center, San Diego, is the contracting activity for both awards.

Austal gets $13.9 million to prep LCS 6 for shock trials

They will be the first littoral combat ships to undergo these trials, though DOT&E had tried hard to impose them on earlier ships in the two series. The trials are not quite a deliberate attempt to blow up a ship, but they come pretty close to it.

Yesterday, the Pentagon announced Independence class shipbuilder Austal USA, Mobile, AL, was awarded a $13,398,209 cost-plus-award-fee order to provide all supplies, services, labor and material in support of what it calls the  pre-shock trials emergent availability for PCU Jackson (LCS 6).  

The order is for execution of LCS 6’s emergent availability to be conducted prior to full ship shock trials.
Efforts under the work will include program management, test plan and integrated master schedule development, and work package execution and testing.  The work will be performed in Mayport, FL, and is expected to be completed by June 2016.  

Fiscal Year 2015 Shipbuilding and Conversion Navy (SCN) funding in the amount of $9,131,542; and Fiscal Year 2010 SCN funding in the amount of $1,611,449, will be obligated at time of award and will not expire at the end of the current fiscal year.  

The Supervisor of Shipbuilding, Conversion, and Repair Gulf Coast, Pascagoula, Mississippi, is the contracting activity.

Indiana shipyard faces $119,700 in OSHA penalties

SEPTEMBER 29, 2015 — Corn Island Shipyard Inc., Grandview, IN, faces proposed penalties of $119,700 after a March 2015 Occupational Safety and Health Administration (OSHA) inspection. The inspection was a follow-up to

BAE Hawaii gets two Navy contracts worth $52.84 million

Yesterday, the ship repairer was awarded a $13,705,115 modification to previously awarded contract (N00024-14-C-4412) for fiscal 2015 and 2016 ship inter-availability planning that will see it provide administration, continuous maintenance planning and program management for continuous maintenance availabilities, emergent availabilities and windows of opportunity. Work will be performed at Pearl Harbor, Hawaii, and is expected to be completed by August 2016. Fiscal 2015 operations and maintenance (Navy) funding in the amount of $9,133,057 will be obligated at time of award and will expire at the end of the current fiscal year.

Today it got a a $39,144,842 modification to previously awarded contract N00024-14-C-4412 for scheduled drydocking selected restricted availability (DSRA) of USS Halsey (DDG 97). The scheduled DSRA is the opportunity in the ship’s life cycle primarily to conduct repair and alteration to systems and hull not available when the ship is waterborne. Work will again be performed in Pearl Harbor, Hawaii, and is expected to be completed by July 2016. Fiscal 2015 operations and maintenance (Navy) funding in the amount of $39,144,842 will be obligated at time of award and will expire at the end of the current fiscal year.

Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility, Pearl Harbor, Hawaii, is the contracting activity for both contracts.

Kirby back at Nichols for two twin screw tugboats

The two tugs just ordered will each be powered by twin Caterpillar 3516C engines delivering 2,447 bhp at 1,600 rpm with Reintjes reduction gears turning two NautiCAN fixed pitched propellers with fixed nozzles. The vessels will also have two C7.1 Caterpillar generators for electrical service.

Deck machinery includes one TESD-34 Markey tow winch, one CEW-60 Markey electric capstan, and one Smith Berger Tow Pin.

Keels will be laid for both vessels this fall with delivery of the first vessel from the shipyard scheduled for May 2017 and the second vessel scheduled for delivery in November 2017.

The tugboats will carry an ABS loadline, and will be compliant with USCG regulationsJensen Maritime Consultants of Seattle WA, will provide the ABS Class and functional design for the tugboats. , as required at delivery.

Marathon buys Aker Philly interest in four newbuilds

 

This follows last month’s news that Kinder Morgan, Inc. (NYSE: KMI) had agreed the four Jones Act tankers building for the shipyard’s wholly-owned U.S. subsidiary, Philly Tankers LLC.

Marathon’s buy-out of APSI’s interest in the Crowley joint venture with respect to each vessel will occur on its delivery from the shipyard. Deliveries of all four vessels are expected to occur from Q3 2015 to Q3 2016. APSI expects to recognize a pre-tax gain of approximately $10 million per vessel from the transaction.

APSI will make an investment in the vessels during their construction, but will no longer maintain the previously planned long-term investment in the vessels post-delivery, which was expected to be approximately $110 million in the aggregate.

“This transaction is an important part of AKPS’s plan to divest its shipping investments and realize the value created for shareholders,” said Kristian Rokke, Chairman of AKPS. “We are proud of what we have accomplished together with Crowley under the joint-venture and look forward to serving both Crowley and Marathon Petroleum as shipbuilders into the future.”

All four of the vessels subject to the transaction are under construction. APSI has also begun construction of the first two of four additional 50,000 dwt tankers for a subsidiary of Kinder Morgan, Inc., which are planned to be delivered between November 2016 and November 2017.

The shipyard also has contracts for two 3,600 TEU containerships for Matson Navigation Company, Inc., which are planned to be delivered in 2018.

On July 16, 2015, the company announced that it intends to change its name to Philly Shipyard by the end of the year, pending shareholder approval.

VIDEO: Crowley’s LNG fueled ConRo now 25% complete

 

First steel for the ship was cut in October 2014 and it is now 25 percent complete.

“Week by week, we have watched the pair of Commitment Class ships begin to take shape,” said John Hourihan, senior vice president and general manager, Puerto Rico/Caribbean liner services. “It’s been incredible to watch. Once fully constructed, these new vessels will embody superior technology and construction and, while we are anxious to get them into service for our partners in Puerto Rico, we are thrilled that they are coming together on schedule.”

“The entire team at VT Halter Marine is pleased and proud to be partnered with Crowley in the construction of these magnificent ships,” said VT Halter Marine President and CEO Jack Prendergast. “It is a pleasure to see the hard work of the Crowley/Halter team come to fruition.”

The ships will be 219.5 meters long, 32.3 meters wide (beam), have a deep draft of 10 meters, and an approximate deadweight capacity of 26,500 metric tons.Cargo capacity will be approximately 2,400 TEUs (20-foot-equivalent-units), with additional space for nearly 400 vehicles in an enclosed Roll-on/Roll-off garage.

Each ship will be powered by an MAN B&W 8S70ME-GI8.2 main engine and three MAN 9L28/32DF auxiliary engines fueled by LNG.

The ship design is provided by Wärtsilä Ship Design in conjunction with Crowley subsidiary Jensen Maritime, a leading Seattle-based naval architecture and marine engineering firm.

The Commitment Class, 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. El Coquí and Taíno are scheduled for delivery second and fourth quarter 2017 respectively.

Designing, building and operating LNG-powered vessels is in line with Crowley’s overall EcoStewardship positioning and growth strategy. The company formed an LNG services group earlier this year to bring together the company’s extensive resources to provide LNG vessel design and construction management; transportation; product sales and distribution, and full-scale, project management solutions.

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