SEPTEMBER 23, 2017—Food and aid cargo are already arriving at Crowley Maritime Corporation’s Isla Grande terminal in San Juan, Puerto Rico, following the devastation of Hurricane Maria. Hurricane Maria, one of the
APRIL 4, 2017 — On January 18, the Customs and Border Protection Agency (CBP) announced proposed modifications and revocations to around 30 identified rulings, as well as additional unidentified rulings, related to
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.
JUNE 9, 2016 — The Port of Long Beach yesterday officially welcomed into service the first of two advanced new fireboats. Named Protector, the vessel was dedicated in memory of Donald Domenic
Oil and gas E&P generates billions of dollars worth of business annually for shipyards in the form of newbuilds, conversions, and ongoing repairs and maintenance. With the downturn in oil, however, much of that business has dried up and forced shipyards that depend on the oil patch to rethink their strategy. Many are repositioning themselves to pursue other markets or are undertaking capital investments in their facilities to be more efficient and competitive.
There’s no better example than VARD Holdings, one of the world’s largest shipbuilding groups, whose portfolio is heavily focused on offshore oil and gas. Amid losses of NOK1.29 billion (about $148 million) VARD said last month it would preserve its core expertise and skilled employee base and use its existing shipyard capacity until an eventual recovery in its core market. Among the areas it was pursuing were the offshore wind and aquaculture markets. It will also work more closely with its major shareholder, Fincantieri, to support the cruise vessel and offshore patrol vessel sectors.
NORTH AMERICAN SHIPYARDS INVEST, DIVERSIFY
While operators in the Gulf of Mexico have cold stacked many of their vessels, Galliano, LA-based Edison Chouest Offshore, one of the world’s largest offshore support vessels operators, announced last month that it would invest $68 million in opening a new shipyard in the Port of Gulfport, MS. The shipyard, called TopShip, LLC, will operate at the former Huntington Ingalls Composite Facility, which was acquired by the Port of Gulf Port last March.
The new yard was made possible through an incentive package from the Mississippi Development Authority that would help bring TopShip to the port and create over 1,000 jobs, according to Jonathan Daniels, Executive Director and CEO of the Mississippi State Port Authority—the job creation would prove a significant boost to the local economy.
Lawmakers approved an $11 million package through the Mississippi Major Economic Impact Authority—with $10 million going to discretionary funds and $1 million allocated for workforce training. Additionally, the Port has said it would provide $25 million in Katrina-CDBG funds for infrastructure improvements.
ECO already operates shipyards in the U.S. and one in Brazil: North American Shipbuilding, Larose, LA, LaShip, Houma, LA, Tampa Ship, Tampa FL, Navship in Brazil, and Gulf Ship which is also in Gulfport. Most of ECO’s fleet has been constructed at one of its yards.
Having been born in Mississippi, Gary Chouest, ECO President and CEO expressed his gratitude towards the state for the opportunity to provide quality service to its customers, and help the community thrive.
“We are indeed excited about the opportunities to grow TopShip in a business friendly state, one where we can reach out into the community to recruit various skill sets, developing a quality workforce that will allow TopShip not only to compete locally, but also globally,” said Chouest. “With the help of the state of Mississippi, we will modify our TopShip facility to become one of the safest and most efficient shipyards in the nation, building Chouest pride for our employees.”
Mississippi’s VT Halter Marine, too, has seen how investing in its facilities can help business. Over the last 10 years, VT Halter has invested over $100 million to upgrade its three facilities in Mississippi. This includes expanding beyond the newbuild business with a $13 million investment in a new drydock and repair facility back in 2015, the addition of a blast and paint facility; and the purchase of a 76,000 ft2 climate-controlled warehouse.
The investments have not only allowed growth into the repair business, but also made VT Halter Marine more efficient in its newbuild projects, enabling it to meet the growing demands of the increasingly popular Articulated Tug and Barge (ATB) market. Most recently, VT Halter completed the second of two 250,000 bbl ATB units for Bouchard Transportation (see this month’s CEO Spotlight); and currently is preparing the delivery of the second of two 130 ft, 6,000 hp ABS class ocean towing ATB tugs for Bouchard.
VT Halter Marine is also currently building two 2,400 TEU LNG-powered combination ConRo ships for Crowley Maritime Corporation’s liner services group. El Coquí and Taíno will operate in the Jones Act trade between Florida and Puerto Rico and will offer a 38% reduction in CO2 emissions per container. The ships will be delivered by VT Halter Marine in 2017.
Another yard that has benefited from the use of Liquefied Natural Gas (LNG) as a marine fuel is Conrad Industries. The last few years has seen Conrad Industries, Inc., Morgan City, LA shifting its business approach and diversifying its portfolio—among the shipbuilder’s offerings, it builds tugs, ferries, ocean tank barges, liftboats and specialty barges. In 2015 the yard’s orderbook received a much-needed boost with new construction contracts, including the history-making construction of the first LNG bunker barge for the North American market.
Currently under construction at Conrad’s Orange Shipyard, Orange, TX, the 2,200 m3 capacity bunker barge is being built for WesPac Midstream LLC. Designed by Bristol Harbor Group, Inc., Bristol, RI, and built to ABS class, the barge when delivered later this year will serve TOTE’s Marlin class containerships—Isla Bella and Perla del Caribe, both built at General Dynamics NASSCO. Those LNG-fueled ships are already operating in the Jacksonville to Puerto Rico trade.
It was also certified by GTT to construct the special LNG containment system on the LNG transport bunker barge.
The shipbuilder has also broadened its offerings further with the expansion of its Deepwater South facility in Amelia, LA. The 52-acre site has enabled Conrad to build large articulated barge units. Currently there are eight tank barges under construction at Deepwater South—ranging from 55,000 bbl to 83,000 bbl capacity.
Conrad says that Deepwater South will undergo a wide range of improvements this year including the addition of a new fabrication and assembly building—which will allow for the uninterrupted construction of hull modules year round; and a new Panel Line Building—expected to begin operations this April. The Panel Line Building will be equipped with an automated welding system, a stiffener fitting gantry to automate the fit-up of stiffeners on the panels, and an 8-headed automated stiffener welder—allowing for the shipyard to process 350 tons of steel per week.
THREE NEW FAB BAYS
C&C Marine and Repair, Belle Chasse, LA, is focusing on increasing efficiencies to maintain its competitive advantage. The yard recently added three new fabrication bays giving C & C an additional 115,000 ft2 for the construction of boats and barges; and a fabrication area of 230,000 ft2.
Over the next few months, the yard plans to order two additional transporters (it currently has two capable of moving 600 tons) with a capacity of 830 tons, bringing the total capacity of its transporters to 1,430 tons. This, says New Construction Manager Matthew J. Dobson, will create new opportunities for the yard, and enable C & C to begin taking orders for the fabrication of new 30,000-barrel barges and allow it to transport larger vessels to land for repair projects and paint jobs.
The yard currently has 29 new construction vessels under contract including three 6,600 hp towboats, one 280 ft PSV, one 270 ft cutter head barge, sixteen tank barges and eight deck barges of various sizes.
EXPANDING INTO LARGER VESSELS
Back in 2014, Metal Shark Boats, Jeanerette, LA, was already a successful builder of aluminum vessels, but it had its sights on the construction of vessels up to 90 ft in length and larger, as well as expansion of its portfolio to include steel. It also signed a technology agreement with Damen that would allow it to build offshore patrol boats up to 165 ft in length.
With the development of the new shipyard in Franklin, LA, Metal Shark, now employs 230 workers between its boat yards, and is among the busiest boatbuilders in the U.S., currently producing a number of 38 ft, 45 ft and 55 ft Defiant class vessels and constructing large orders for the U.S. Coast Guard, U.S. Navy and multiple agencies across the U.S. It also delivered a sophisticated 75 ft multiple purpose port security fire boat to the Port of South Louisiana.
EYE ON THE CARIBBEAN MARKET
For St. Johns Ship Building, diversification of its portfolio and the markets it reaches will propel its next evolution. The small shipyard, which has been under private ownership since 2006, recently delivered the first Elizabeth Anne class of towing vessels to the Vane Brothers Company. The tug is the first in a series of eight the Palatka, FL-based yard is building for the operator. At press time the second vessel was in the water and the third was about to be launched.
St. Johns Ship Building’s yard sits along the St. Johns River—giving it the unique advantage of being on the East Coast with access to both the Gulf of Mexico and the Caribbean—and its because of its location St. Johns has been able to produce such a diverse portfolio. From OSVs to tugs (a new market for the builder), to coast guard vessels and cargo ships, St. Johns’ 100 acre facility and its 150 employees are at the ready to take on any project.
St. Johns Ship Building President Steven Ganoe says that because the yard doesn’t solely rely on the oil and gas market it has been able to keep business steady during the downturn in the oil and gas market.
Ganoe says the shipyard is keeping tabs on the Caribbean market to see how it develops in the wake of the easing of restrictions on Cuba travel—and determine how St. Johns can help meet any growing demand in that specific market. In the meantime, the shipbuilder continues to make improvements to its facility—having recently added an 18,000 ft2 assembly shop and a Messer CNC 80 ft table to help make production more efficient.
REBORN AS WORLD MARINE
Earlier this year it was announced that World Marine LLC—owned by the Teachers’ Retirement System of Alabama and the Employees’ Retirement System of Alabama—had bought all of Signal International’s assets including its full service and heavy fabrication facilities in Mobile, AL and Pascagoula, MS.
According to the Chapter 11 plan of liquidation, World Marine is seeking to become a leader in the ship repair and ship construction market.
World Marine assures that its experienced team—led by Dick Marler—can handle all types of vessels, but the company will place a high focus on new construction, and the repair and conversion of ocean going vessels and offshore drilling rigs—serving the energy, government and commercial marine markets.
World Marine’s construction and repair facilities include three drydocks—a 22,000-ton Panamax class, a 4,200-ton, and a 20,000 MT heavy lift. The company says its future plans include pursuing the emerging LNG market for the construction of bunker barges and transfer vessels.
NEW DRYDOCK AT COLONNA’S
A decade after the American Civil War ended, Colonna’s Shipyard was founded by Charles J. Colonna. Now, 140 years later, the yard continues to operate and develop with the times.
The shipyard currently occupies over 100 acres of land in the Berkley section of Norfolk, VA, and has water access to over 3,000 ft of vessel berthing space and a lift capacity to accommodate vessels up to 850 long.
Colonna’s is also home to the largest Travel lift in the U.S.—with a capacity of 1,000 metric tons.
As part of its future improvement plans, Colonna’s expects to purchase an additional 25 acres across the street from its main entrance, and add a new floating dry dock.
A few months ago, the Governor of Virginia, Terry McAuliffe, announced that the yard would undergo a significant expansion, with Colonna’s investing over $30 million to expand its operations in the City of Norfolk. The expansion would include a new larger drydock, dredging and improvement work to the channel and bulkhead work, and the creation of 51 jobs to the area.
The new floating drydock, which will be named the Charles J., will have a lifting capacity of 11,500 metric tons, an overall length of 595 ft and an inside width of 108 ft. The Charles J. is expected to be fully operational in early 2017 and will accommodate a variety of vessel types including ferries, tugs, barges, containerships, OSVs and several type of government vessels.
Colonna’s CEO Tom Godfrey, said the capital investments would “allow Colonna’s to continue to provide quality services to both commercial and government customers throughout the region.”
NEW DRYDOCKS, AT BAE, DETYENS, BAY SHIPBUILDING
Meanwhile, South Carolina-based Detyens Shipyards recently took delivery of its new floating drydock. Built by Corn Island Shipyard, Grandview, IN, the 400 ft x 108 ft drydock will enable the yard to provide a more cost-effective service to smaller tonnage vessels.
According to Detyens, in the past, smaller vessels would have to piggy back in the yard’s larger graving dock—now with the addition of the smaller dock, it can provide drydock services to vessels up to 11,000 DWT. The new dock sits along the yard’s F Pier, which recently underwent upgrades that included the addition of shipyard services, additional lighting, and dredging of 30 ft.
On the U.S. West Coast, BAE Systems is investing $100 million to build and install a second, larger drydock at its San Diego shipyard. Currently under construction in China, the 950 ft drydock will have a lifting capacity of 55,000 long tons and is expected to support the expansion of the Navy ships homeported in San Diego, which are expected to increase by 20 from 60 to 80 by 2020, according to BAE’s Director of Communications, Karl Johnson. BAE Systems is among the leading providers of maintenance and modernization services of the U.S. Navy.
Portland, OR, Vigor Industrial has been aggressively growing its business through the acquisition and merger with several other regional shipyards, including Kvichak Marine Industries, Seattle, WA.
In 2014, Vigor’s Portland yard began operating its new $50 million drydock, the Vigorous. It has been consistently booked since, supporting hundreds of jobs and attracting work that could not have previously be performed in the region, according to Vigor’s Athena Maris.
Vigorous, with a lifting capacity of 80,000 long tons, is 960 ft long with an inside width of 186 ft and has taken on several repair work projects including the repair work on cruise vessels, and most recently, this past summer, on repair the hull of the multipurpose icebreaker on charter for Shell, the MSV Fennica.
The addition of Vigorous at the Portland yard, enabled Vigor to also reinvest in some of its existing assets. Specifically, Vigor was able to upgrade and transfer one of Portland’s drydocks to its Seattle facility. In Seattle, the drydock Vigilant will be used to perform repair work on the recently awarded Structural Enhancement Drydock Availability (SEDA) Projects. There, the U.S. Coast Guard cutters Bertholf and Waesche will both undergo significant structural enhancement work, system upgrades and maintenance.
Beyond that Vigor is placing capital investments efforts on its environmental stewardship—this includes working on a comprehensive storm water management system at its Portland facility and a shallow-water estuary to help increase the survival of young salmon and steelhead trout on their way to the ocean at its Seattle facility.
On the Great Lakes, Fincantieri Bay Shipbuilding (FBS) parent, Fincantieri Marine Group (FMG), has invested more than $33 million in capital improvements to increase manufacturing capabilities at its facility in Sturgeon Bay, WI. FMG is currently in negotiations to acquire additional property adjacent to the shipyard to further expand its serial production capabilities.
FBS has completed its new Pipe/Outfitting Building & New Welding Center and added a new floating dry dock that has a total lift capacity of 7,000 long tons. The versatile dry dock can be sectioned off, with a 216 ft section and a 432 ft section.
It has completed the expansion of its Fabrication Building and has added a new Beveling Plasma Burning Machine, 200-ton Yard Transporter, IMG Micro Panel Line, and 1000-ton CNC Press.
Back in 2012, FBS added a 45 ft x 47 ft “megadoor” to the south end of its Fabrication Building 311 to allow larger vessels to be built indoors and moved outside for launching and a Manitowoc 300-ton capacity Model 2250 Crawler Crane.
FBS employs 600 to 800 full-time shipyard professionals and expands its workforce to 1,100 to 1,200 using temporary and contract workers during the Winter Fleet repair season.
FBS currently has under construction six tugs and seven barges of ATB design. Accompanying photo shows the ATB tug Barbara Carol Ann Moran and the ocean tank barge Louisiana at the shipyard. As we reported back on February 22, the shipyard has 14 vessels undergoing a wide range of repairs and repowerings for the Great Lakes Winter Fleet.
SAN DIEGO BOATBUILDER GETS BIGGER, GREENER
Vigor, however, isn’t the only shipbuilder looking to help the environment. San Diego based Marine Group Boat Works will soon break ground on a $1.5 million green initiative that will see the yard install a solar panel system compliant with the state of California’s Solar Initiatives.
The addition of solar power comes during one of the company’s most exciting periods, says Marine Group Boat Works’ (MGBW) Leah Yam. MGBW, which has two yards in San Diego and one in San Jose del Cabo, Mexico, recently completed a $2.5 million renovation to its deepwater floating docks system, and will install the final set of docks this spring—making it fully ready for in-water repairs on vessels up to 420 ft in length.
Among MGBW’s most recent repair and retrofit projects is the $19 million refurbishment of the Golden Gate ferry M.S. San Francisco and the conversion of two high-speed aluminum Sub Chapter K San Francisco ferries for the Water Emergency Transportations Authority.
Beyond its repair business, MGBW is also making a dent in the new construction market. Since launching its new construction division in 2008, the shipyard has increased its employee numbers by about 195%, employing 185 workers. Currently, MGBW has five 60 ft aluminum dive boats under construction for the U.S. Navy—the contract calls for the construction of 16; and most recently delivered the first in a series of steel workboats to Japan—two additional boats are on their way, and twelve are on the production schedule, says Yam.
CANADIAN YARDS INVEST FOR NSPS
The end of 2014 saw the completion of Seaspan’s Shipyard Modernization project. Funded entirely by the shipyard, the $155 million project helped transform Seaspan’s Vancouver Shipyards into one of the most modern yards in Canada.
The two-year project included the addition of four new fabrication buildings—housing a sub assembly shop; panel shop with panel line; block assembly shop; pre-outfitting shop; paint and blast shop; and Canada’s largest (300 tonne) permanent gantry crane.
The expansion was integral to meeting the newbuild project requirements for the Canadian Coast Guard and the Royal Canadian Navy.
Vancouver Shipyards is currently building the first Offshore Fisheries Science Vessel (OFSV) under the National Shipbuilding Procurement Strategy (NSPS) for the Canadian Coast Guard. The 208 ft x 52.5 ft OFSV will help support scientific and ecosystem research critical to the economic viability and health of the region’s marine environment. At press time, 30 of the 37 blocks of the OFSV were under construction.
Seaspan also invested an additional $15 million at its Victoria Shipyards, upgrading its facilities with the addition of a new operation center that, according to Seaspan, would help support testing, trails and commissioning new federal vessels.
At press time, there were nine vessels undergoing refits and drydock work at one of Seaspan’s yards—including the 94 ft Canadian Coast Guard vessel Siyay with is undergoing a nine-month midlife modernization refit.
Keeping the future in mind, Seaspan is also investing in its workforce. Seaspan employs 1,500 employees across its three shipyards—Vancouver Shipyards, Vancouver Drydock, and Victoria Shipyards.
In 2015, the shipbuilder received a Canada Jobs Grant to develop e-learning tools for its expanding workforce—the goal of the funding was/is to help ensure workers have a common understanding of the shipbuilding processes, practices, and protocols.
Seaspan also recently announced that it plans to invest $2 million over the next seven years to help support teaching and research in the University of British Columbia’s naval architecture and marine engineering programs.
At Irving Shipbuilding, Halifax, NS, Canada, the company’s $330 million capital investment plan is already paying dividends. Last September, it marked the start of production of the HMCS Harry DeWolf, the first Arctic Offshore Patrol ship (AOPS) for Canada.
The ship is the first of up to 21 vessels that will renew Canada’s combatant fleet over the next 30 years under the NSPS. Irving Shipbuilding has built more than 80% of Canada’s current combatant ships.
Current direct employment at Marine Fabricators in Dartmouth and the Halifax Shipyard is about 900. Over the next two years, the workforce at both sites is expected to rise to 1,600, with over 1000 directly employed on AOPS production. In addition, total employment at Irving Shipbuilding (all operations) is forecasted to rise to over 2,500 direct employees at peak production of the larger Canadian Surface Combatant vessels that will replace Canada’s current fleet of Halifax Class frigates.
To date, the modernization at Irving Shipbuilding and the AOPS contract have resulted in over $1 billion in spending commitments.
Meanwhile, one of the oldest shipyards in North America, Chantier Davie Canada Inc., Levis, Quebec, has taken its first steps in the Resolve-Class Auxiliary Oiler Replenishment ship project. The project involves the conversion of a containership into an Auxiliary Oiler Replenishment Ship that will be delivered to the Canadian Royal Navy in 2017.
It also recently completed the refit of four of Canada’s heaviest icebreakers, as well as a bulk carrier and is a pioneer in the construction of LNG-fueled ferries.
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.
NOVEMBER 20, 2014 — Colonna’s Shipyard, Inc., Norfolk, VA, and Austal USA LLC, Mobile, AL, have both been given citations by the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA)
SEPTEMBER 9, 2013 — The U.S. Merchant Marine Academy (USMMA), Kings Point, NY, today welcomed 237 “plebe candidates” of the Class of 2017 into the Regiment of Midshipmen as they took the
JUNE 21, 2013 — The German Shipowners’ Association (VDR) says that, starting immediately, private security firms operating in Germany and abroad can apply for approval with the German Federal Office of Economics
FEBRUARY 4, 2013 — Prospects of a strike halting container traffic at U.S. ports on the East and Gulf coasts look to be receding. Federal Mediation and Conciliation Service Director George H.
