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Linking Post-Panamax boxes to Heartland via river

MARCH 30, 2017 — A new intermodal container terminal on the lower Mississippi River is being developed “from the ground up” that will accommodate both the largest Post-Panamax containerships and innovative new

OP-ED: Freezing the Jones Act

 

It was a nasty winter, even by Alaskan standards. The city of Nome, Alaska was in trouble.  A late November storm blocked a scheduled shipment and the city was running out of fuel.  In an Arctic winter, fuel is as precious as blood.  It powers more than cars and trucks, it runs generators to light up the 24 hours of darkness and it burns in boilers for heat when the outside temperatures regularly hit -50 degrees.  Without fuel, all human life stops; and Nome’s tanks were running dry.  The solution to the crisis lay in the belly of a Russian ice-strengthened tanker sailing just offshore.  The problem was that her cargo of life-sustaining gas and diesel was loaded in Dutch Harbor Alaska, and a U.S. law designed to protect domestic shipbuilding was preventing her from completing the mission.  Recognizing the urgency, Secretary of Homeland Security, Janet Napolitano, issued a one-time waiver of the Jones Act and the Renda steamed into Nome Harbor to deliver the fuel. 

As changes in Arctic continue to unfold, incidents such as the one in Nome will become more common.  In addition, the pace of change in Arctic has found the U.S. unprepared to assert her claims and to defend fragile ecosystems and populations.  The Nome incident illustrates a stark choice for the U.S.: change how the country protects its domestic shipbuilding, or cede the Arctic to its geopolitical rivals.    

The Jones Act requires that any ship carrying passengers or cargo between two U.S. ports must be built in the U.S., crewed by U.S. nationals, and owned by a U.S. company.  The Act dates back to the 1920’s but the idea of protecting a domestic shipbuilding industry from foreign competition is as old as the country itself. The First Congress of the United States levied heavy tariffs on goods delivered on foreign ships.  The Act serves that important role today; however, the economic reality is that Jones Act compliant ships are expensive to build and expensive to operate.  So to maximize profits, large ships in the international trade are flagged in countries with favorable laws and tax treatment.  Such “flags of convenience” create strange outcomes as cruise ships that pick up vacationers in Miami must first stop somewhere outside of the U.S. before discharging their passengers.  Foreign flagged tankers, loading crude in Valdez may take that crude to a foreign port where it is pumped ashore, modified slightly, then reloaded on to the same ship before that ship sets sail for a U.S. refinery.  

Opponents of the Jones Act point out the inefficiencies created when non-compliant vessels seek to skirt the law.  They argue that the trade protection measure makes coastwise shipping prohibitively expensive as shipbuilders in the U.S. must operate under more expensive environmental and labor regulations.  Similarly, the U.S. ownership requirement cuts off sources of capital to build those ships.  Without the Jones Act, the argument goes, we could use international competition and realize benefits and efficiencies of moving freight over water.  For example, we could put containers on barges that service coastal cities, thereby removing thousands of trucks from the already choked and crumbling interstate highways.  

Proponents of the Act cite jobs and national security interests.  During World War II the U.S. shipbuilding industry saved the world from fascism by building Liberty Ships faster than German submarines could sink them.  Today, the market for Jones Act compliant vessels supports thousands of good paying jobs and preserves skills that would desperately be needed should the world face a similar crisis.  The decline in domestic manufacturing under the auspices of free trade serve as a warning to those looking to open U.S. shipbuilding to foreign competition.

The Arctic presents a different problem.  As the ice recedes, human demands in the Arctic will increase.  Just this year, 1,000 passengers aboard the cruise ship Crystal Serenity sambaed and bunny hopped their way through the once impassable Northwest Passage.   As a result of increased economic activity, settlements in the Arctic will grow.  More people in the Arctic means more demand for ice class ships to resupply villages and outposts.  More shipping also means increased demand for search and rescue and spill response.  As demand for icebreakers and ice class ships increases, there are few Jones-Act certified ships to fill the need.  In contrast, countries such as Finland have an excess of icebreaker capacity.  Those ships, however, cannot operate between U.S. ports in the absence of a Jones Act waiver from the Department of Homeland Security.     

In addition to support for economic activity, presence in the Arctic is critical for political reasons.  Conditions in the Arctic are changing faster than most expected and wherever the ice recedes, it leaves behind a geopolitical vacuum.  As the ice pulls back from the shore, it will expose trillions of dollars in natural resources.  More importantly, it will uncover fragile and delicate ecosystems and leave indigenous populations exposed to potential exploitation.  Russia has already staked its claim to a vast undersea territory stretching almost to the North Pole.  In the last few years, Russia has been quietly rebuilding its fleet of Soviet era icebreakers.  Today, Russia has scores of ice class ships, six nuclear powered icebreakers, and three more heavy crushers on their way.  China, with no territory in the arctic, has two icebreakers with a third on the way.  The United States, a country with the world’s most powerful and well equipped military, has one heavy icebreaker, and it is 40 years old.  Congress has allocated funds for a second ship, but construction will not start until 2020 and the ship will not see ice until 2025.  Protection of the environment and native people in the Arctic will require a U.S. presence and a U.S. presence will require icebreakers now.    

Typical Jones Act problems involve competition between foreign and U.S. flagged ships.  But with little or no U.S. ships to fill the need, the Jones Act forces a choice between using a foreign flagged vessel or nothing at all.  As the situation in Nome demonstrated, that is not a choice when lives, the environment, or a critical national interest is at stake.  The current administration can fix this. The Secretary of Homeland Security, using executive authority, can and should grant a temporary waiver for all ice class vessels operating from the Aleutian Islands in the south to the Canadian border in the north and in all U.S. points above the Arctic Circle, until such time as an equivalent Jones Act compliant vessel becomes available.  Such a rule would allow the U.S. to immediately defend her geopolitical interests by freeing up the one available icebreaker.  While the waiver is in place, existing foreign vessels could develop and test markets for commercial shipping with ice breaking capabilities.  If it appears the market will bear the increased cost of a U.S. flagged ship providing those services, U.S. shipbuilders will build a ship and enter the market.  When the U.S. ships move in, the waiver is lifted and the U.S. will protect that market under existing law.  In this way, the rule would actually promote domestic shipbuilding by allowing other countries to highlight areas for growth while minimizing risks.  Such a rule would also encourage efficiency and innovation without compromising or threatening existing jobs. 

As President Lincoln said in his 1862 address to Congress “the dogmas of the past are inadequate to the stormy present.” The Arctic presents opportunities and challenges not seen by western countries since the days of Columbus.  In times of crisis, we can, and should, look critically upon institutions fostered in a different time and for a different reason.  The Secretary of Homeland Security recognized this crisis and granted a waiver for Nome.  The Secretary should now do the same for the rest of the Arctic.

Double-ended ferries: The art of design

“Legally, a ferry is the continuation or prolongation of a highway over a navigable stream.” This quote is from the first Transactions of the Society of Naval Architects and Marine Engineers (SNAME), published in 1893. Given the impact of ferries upon society, it should come as no surprise that they have been a topic of interest to many naval architects for many years. The Pacific Northwest region of the United States contains a mix of islands, rivers, peninsulas and lakes. Salt water and fresh water transportation routes have been a critical part of the economic development of the region beginning with the native peoples and continuing today. Since the arrival of the first settlers in the 1850’s, power-driven ferries have been a common sight, linking the various communities through the movement of goods and people.

What is a double-ended ferry and why choose this configuration? A double-ended ferry is one where vehicles are loaded on and off both ends of the vessel and the direction of travel switches so the bow becomes the stern. The greatest argument for a double-ended ferry is when the route is short such as a river crossing. The time to maneuver the vessel so it can back in to the dock becomes a significant portion of the overall time between departures. The maneuvering time also consumes additional fuel and imposes the risk, however small, of any maneuver going awry. Another advantage is that the vessel will have the same handling characteristics every time it enters or departs a terminal. With its propulsion at each end, the double-ended ferry has excellent stopping power and superior maneuverability, especially if using an azimuthing or cycloidal propulsion system. This all contributes to safety, a critical factor for any ferry.

The origins of Elliott Bay Design Group (EBDG) go back to the late 1920’s with the establishment of W.C. Nickum & Sons. The earliest ferry projects were to modify the double-ended ferries from the San Francisco Bay area that were made superfluous by the bridge building activities there in the 1930s. Since that time EBDG has worked on a wide variety of vessel sizes and propulsion types, to suit routes ranging from short river crossings to 20 nautical mile transits of exposed water.

EBDG Ferries

The typical ferry we have designed has a V hull amidships with a narrow, flat of bottom at baseline. The side shell flares outboard with one or two knuckles between the heavy guard at the deck edge and the bottom. This configuration produces surfaces that are fully developable which facilitates construction. Typically, the waterline beam is 80% of the maximum beam. This shape provides excellent reserve buoyancy for damage stability and adds waterplane area as the vessel heels, thus improving intact stability. Where there is a draft limit, we increase the width of the flat of bottom. At the ends the waterline shape typically narrows to a fine entrance. Because the waterline beam decreases more quickly than the beam at deck, the effect is to create substantial sponsons. These are located sufficiently far above the bow wave to avoid increased wetted surface as the bow wave increases with speed. The shape of these sponsons also needs to consider wave slamming in rough weather, so a compromise is sometimes required between calm water resistance and speed in waves. The lower part of the hull at the ends is fitted with a skeg to support the shaftline (with traditional shafting on centerline) and to support the hull in dry dock. The skeg shape and volume are critical to the shape of the bow wave, hence we carefully consider the section area shape, including skegs. In more recent projects we have seen greater emphasis on reducing hull resistance, especially for ferries that operate on route lengths of greater than 2 nautical miles. Over the 40 to 50 year life of a ferry, small reductions in drag can result in significant fuel savings, and of increasing importance, lower emissions. Through the use of computational fluid dynamics we can find a balance between low resistance and ease of construction.

The double-ended ferry lends itself to a wide variety of propulsion configurations. Historically, these have ranged from steam-driven, side paddlewheels to a cable ferry powered by horses on a treadmill. In more recent times, we have seen the diesel engine become the dominant power source with a variety of means of putting the power into the water. Clearly, there is no preferred approach that works for every ferry. As designers, we look for the machinery configuration that meets the owner’s performance requirements with the best balance between reliability, maintainability, fuel efficiency and operability. This search typically takes the form of a propulsion study where we work with the owner to establish weighting criteria for the various aspects of the propulsion system. Typically, an owner will have strong opinions on what equipment and what configuration works well for his operation.

We are also seeing more clients interested in different forms of propulsion to reduce their overall energy consumption and thus reduce their environmental footprint. Owners are willing to trade off the simplicity and reliability of traditional geared diesel propulsion for reduced energy consumption through use of hybrid propulsion with electric drives, batteries for energy storage, and smart control systems. We are also seeing increased interest in alternative fuels such as liquefied natural gas, biofuels, and even hydrogen.

This year EBDG developed a physics-based simulation tool to evaluate different propulsion technologies for different sizes of ferries operating on different types of routes. This tool calculates hull resistance, weights, fuel requirements, and hull characteristics in an iterative fashion until the basic parameters of weight and buoyancy are in balance. The outputs from the tool are estimates of capital and operating costs as well as carbon emissions. We can now work with ferry operators to assess the economics of using technology to reduce environmental impacts.

So, what has 50 years taught us? First is that there always will be opportunities to improve the art of double-ended ferry design. Some recent trends include:

  • Access paths for passengers with disabilities
  • Critical scrutiny of fire risk and improved design of both passive and active fire protection measures
  • More vehicle clearances to improve speed of loading and unloading
  • Large passenger cabins with accessible restrooms
  • Seating arrangements to suit both individuals and larger groups
  • Greater security for vital spaces such as the engine room and pilothouse
  • Changing technologies and environmental issues are challenging to evaluate without a disciplined approach using solid engineering.

MarAd “Reboots” CCF for RO/Pax Ferries

Signed into law by President George Bush in December 2007, the Energy Independence and Security Act of 2007 was to have achieved important, long-sought maritime sector objectives. A national Short Sea Transportation (SST) program was authorized and a detailed outline provided. The Secretary of Transportation was assigned the responsibility for the development a plan for SST implementation, and required to report to Congress by December 2008 on the progress made.

The 2007 Act mandated Secretarial action to create an environment that would attract private sector investment to finance SST requirements.  The original House version of the 2007 Act, as reported by the House Committee on Transportation and Infrastructure and passed by the House on January 18, 2007, addressed the need for government-assisted SST financing by extending the Maritime Administration (MARAD) capital construction fund (CCF) tax-deferral program to container and ro/ro services nationwide, and by authorizing $2 billion for the MARAD Title XI program use in attracting private sector financing for SST projects.

Mr. Oberstar and his Congressional co-sponsors of the original maritime sections of the 2007 Act were confident that with their proposals in place, the long-discussed use of U.S. waterways for the transportation of freight (in containers and trailers) and passengers, to mitigate landside highway congestion and reduce petroleum usage, and accomplish multiple other objectives, would be underway.

They were to be disappointed. The $2 billion of Title XI authorization was removed in the Senate. The Secretary’s report, required by December 2008, was not delivered until April 2011 and concluded that without “strong leadership from the federal government . . . the nation’s rivers and coastal waterways will continue to be underutilized for domestic container and trailer freight transportation” without tabling such leadership proposals. 

And, after the 2007 Act had become law, when U.S. ferry operators sought to include their vessels that carried passengers as well as ro/ro cargoes, so-called ro/pax vessels, for CCF program “qualified” withdrawals, MARAD refused to approve these withdrawals. MARAD advised CCF program applicants that Congress had intended the 2007 Act extension to apply for only to vessels in ro/ro services engaged in the carriage of freight, and that the carriage of passengers, in so-called ro/pax vessels, was a disqualification. And, CCF program applicants were told that a new Congressional enactment would be required to enable MARAD to include ro/ro vessels that included the carriage of passengers as “qualified” services.

Change of Policy
This MARAD interpretation has been withdrawn. MARAD will now include ro/ro vessels that also carry passengers, ro/pax vessels, as engaged in CCF program “qualified” services.  Owner and operator participants in the MARAD CCF program will be now able to use their CCF program deposits to purchase ro/pax vessels, and retire ro/pax vessel debt.  And, this will enable shipyards that are building ro/pax vessels to use their CCF program monies as working capital for construction financing for customers (or for their own accounts) and as equity in customer vessel leasing transactions.

The majority of U.S. vehicle ferry services are provided by vessels that carry vehicles and freight loaded by “wheeled transportation technology” and vehicle drivers and passengers being loaded in this same fashion, plus additional walk-on passengers. It was to facilitate the construction of these vessels that the CCF program qualifying service definition was being expanded. This MARAD change in interpretation gives full recognition to the CCF extension that Congress intended in 2007. It is of enormous practical importance. 

MARAD CCF Program & Importance
The MARAD CCF program allows participants to defer payment of federal and state income taxes on vessel operations and sales and associated investment income. It provides what is in-effect an interest-free loan of monies that a taxpayer would otherwise pay to settle current taxes in exchange for the taxpayer’s promise to use that money for the construction of vessels to be operated in qualifying services or the payment of exiting or later incurred vessel debt. MARAD currently lists 165 CCF program participants. These include owner-operators such as Crowley Maritime, Exxon Corporation, Matson Navigation and Tote, two shipyards NASSCO and Horizon Shipbuilding, and what are apparently three owner-lessors. As of 2012 year-end, MARAD recorded $2.3 billion of CCF program monies as on deposit. Many of the owner-operator participations date from the 1970s. NASSCO was the first CCF shipyard, entering the program in 1988, and remains a participant today. NASSCO has apparently been able to defer federal and California tax on the profits from almost all of its U.S. new-buildings, and to use these interest free borrowings as working capital in the construction of vessels for customers in the Alaska, Hawaii and Puerto Rico (non-contiguous) trades.  

This MARAD program change will allow commercial operators to defer tax and access their CCF monies as working capital for new ro/pax construction. The change will not directly benefit state and municipal owner-operators such as Washington State Ferries that do not need to defer taxation of current income. However, the CCF program can now be employed by the shipyards from which these owner-operators purchase their ro/pax vessels. These shipyards can use their CCF monies as a source of working capital to provide construction period financing, and equity for long term lease financing.  And owner-operators like WSF, may be able to obtain CCF program ro/pax long-term charter rates that will be 30 to 40 percent lower than the long-term charter rates that would otherwise be available.  This might become a factor in lease vs. purchase decisions for operators like WSF that have substantial fleet replacement needs.

The greatest number of immediate beneficiaries of this MARAD change will be the U.S. citizen shipyards that are engaged in, or are considering engaging in ro/pax vessel construction.    


Cook H Clayton
Mr. Cook was the MARAD General Counsel who was responsible for the 1970 Act CCF Program implementation. His work with the Program has included advice for both private sector clients and in U.S. Government projects (in work for MARAD itself and for the U.S. Navy) and is partially detailed at his www.CookMaritimeFinance.com website and in the site’s linked documents.  

If you would like a copy of his PowerPoint slide set on “Sheltering Shipyard Profits to Benefit Customers,” or of his descriptive memo hand-out “MARAD CCF: Shipyard Program Use” please email him at Cook@CookMaritimeFinance.com.  For more information on the Program, you can also contact Mr. Daniel Ladd, at MARAD’s “Office of Financial Approvals” at 202 366 5737 or Daniel.Ladd@dot.gov.

A follow-on article by Mr. Cook with examples of shipyard and owner-operator CCF Program use is scheduled for the MARINE LOG November issue.

Tugs & Barges: Evolving with the market

Engineering company GTT has more than 50 years’ experience in the design of membrane cargo containment systems, but one project underway right now in Orange, TX, is quite unique. That’s because it’s the first Liquefied Natural Gas (LNG) bunker transport barge in the United States.

One of 118 GTT projects currently underway worldwide, the tank barge is taking shape at Conrad Orange shipyard, Aziz Bamik, General Manager of GTT North America, told delegates at Marine Log Tugs & Barges 2016 Conference & Expo held last month in Seattle. While Conrad has decades of experience building all types of tank barges—dirty oil, products, chemicals, and LPG—this is the first time that it is building a vessel with one of GTT’s Mark III Flex membrane tank technology. Following a certification process, Conrad signed a license agreement with GTT back in January 2015 to construct the Mark III Flex.

Designed to operate in inland waterways, bays, harbors, and U.S. coastal waters, the new 2,200 m3 tank barge will be used to refuel TOTE’s two 3,100-TEU LNG-powered containerships. The barge will travel about a mile from its mooring facility to fuel the two Orca Class containerships, which operate out of the Port of Jacksonville, FL to San Juan, PR. The barge is designed not as an Articulated Tug Barge unit, but rather to be towed by hawser wire, pushed or maneuvered by hip, says Bamik.

In anticipation of increasing demand for LNG as a marine fuel, Bamik also mentioned to the conference audience that GTT North America was working with Conrad on a larger Articulated Tug Barge unit that will have a capacity of 4,800 m3, with two GTT Mark III Flex Cargo Containment System tanks. The 319 ft x 62 ft barge would have cold LNG delivery with onboard reliquefaction.

COMING DEMAND FOR LNG
The interest in LNG as a marine fuel seems to have waned in the U.S. with the drop in the price of oil. As of today, five vessels burn LNG as fuel in the Jones Act market. Besides TOTE’s two containerships, the Harvey Power, the third in a series of six dual fuel Platform Supply Vessels for Harvey Gulf International Marine, New Orleans, recently entered service in the Gulf of Mexico under charter for Shell. Next year, Crowley Maritime will take delivery of two Commitment Class Container Roll-on/Roll-Off (CONRO) ships for Puerto Rico. Those are being classed by DNV GL. All the other Jones Act LNG fuelled vessels are being built to ABS class.

Additional LNG Ready classed tonnage delivered or being built by General Dynamics NASSCO in San Diego and Philly Shipyard Inc. in Philadelphia could grow the LNG-fueled Jones Act fleet if converted in the future. TOTE is also converting its two Orcas Class RO/RO ships for Alaska service in Singapore.

Globally, there are about 77 gas-fueled vessels in operation and another 79 confirmed newbuildings as of March 2016, according to Anthony Teo, Technology and LNG Business Development Manager, North America, DNV GL. “There are about another 50 LNG Ready vessels have been contracted,” Teo told delegates. He said that DNV GL estimates there will be 360 LNG fuelled vessels in operation by 2020.

The widespread adoption of LNG as a fuel, Teo pointed out, was is being hindered by the lack of gas fuel bunkering facilities in ports.

A panel of naval architects, liquefied natural gas reliquefaction technology providers, and regulators discussed more in-depth the current hurdles hindering the expansion of the adoption of LNG as a marine fuel for the tugs and towboats in the Jones Act market.

Panelist Rafael Riva, Marine Business Development Manager, ECA, Lloyd’s Register pointed out that the technology was well proven in Europe. The first LNG tugs, for example, were built in Turkish shipyard Sanmar for Norway’s Bukser og Berging AS and have been in service for Statoil AS since 2014. The DNV GL class tugs are equipped with lean burn gas engines from Rolls-Royce and Rolls-Royce azimuthing thrusters.

The LNG powered propulsion systems does require more space. The Shearer Group’s Engineering Manager Joshua Sebastian, PE, mentioned the complexities of integrating the necessary fuel tank, piping, and control systems required to burn LNG on the smaller towboat platform. Sebastian’s company, naval architectural firm The Shearer Group, has been contracted for the conversion of a 65-foot-long conventional diesel-powered towboat to burn LNG.

LNG-powered tugs also require small volumes of fuel with a dedicated delivery solution. Fueling can be accomplished either via tanker trucks, shore LNG storage tanks, portable gas fuel tanks or ship to ship or barge to ship transfer.

Panelist John Dwyer, Officer in Charge, Marine Inspection/Chief, Inspection Division at USCG Sector Puget Sound, provided the regulatory view on the development of LNG as a marine fuel in the U.S.

The U.S. Coast Guard has issued a number of policy letters and guidance on the design and operation of ships using LNG as a marine fuel, as well as ships and facilities transferring LNG as fuel. The U.S. Coast Guard has addressed designs and facilities on a case-by-case basis.

Waller Marine’s Beau Berthelot pointed out that his company has worked on a number of refueling solutions. Waller Marine, for example, has been granted an Agreement in Principle (AIP) by ABS for a new liquefied natural gas (LNG) and regasification articulated tug barge concept. The vessel has the ability to load LNG from existing LNG terminals, liquefaction facilities or traditional LNG carriers and transport the LNG to existing tanks, traditional LNG carriers, trucks or marine vessels using LNG as a fuel. The barge also is equipped for regasification of LNG directly to a pipeline or to a power plant. An additional feature will be the use of natural gas as a fuel in the dual fuel engines of the tug to drive the tug-barge unit.

The benefit of the LNG Articulated Tug and Barge Regas Vessel (ATB RV) is that it allows LNG to be moved and delivered more efficiently on a small-scale basis in locations where large LNG infrastructure would be cumbersome, costly and time consuming.

Another possible solution for small footprint applications mentioned by panelists David Grucza, Director, Drilling and Marine U.S., Siemens, and Michael Walhof, Sales Director, Distributed LNG Solutions, Dresser-Rand, a Siemens company, was Dresser-Rand’s LNGo system is a modularized, portable natural gas liquefaction plant. This point-of-use production plant is a standardized product made up of four packaged skids: a power module, compressor module, process module and a conditioning module. The natural gas consumed powers the unit and is also used as the process refrigerant to eliminate complexity and maintenance.

SHIPYARDS CONTINUE TO BE BUSY
Meanwhile, U.S. shipyards continue to book orders for conventionally powered harbor tugs and Articulated Tug Barge (ATB) units. The continued orders for ATBs, in particular, are in response to transport refined products in the U.S.

Just last month, Gunderson Marine, Portland, OR, secured an order to build two 82,000 bbl, 430 foot-long oceangoing tank barges for Harley Marine Services, Inc., Seattle.  The tank barges will be part of an ATB unit.

Gunderson last built a barge for Harley Marine in 2009.  Construction on the barges will begin this year, with delivery of both vessels set for the second half of 2017. 

As of press time, Harley Marine Services was negotiating with a Gulf Coast shipyard for the construction of the ATB tugs that would be coupled to the tank barges being built by Gunderson.

Over the past nine months, Gunderson Marine has delivered two 578 ft ATB oceangoing barges for chemical and oil service for Kirby Offshore Marine.

For its tank barges, Kirby Offshore Marine took delivery of two 10,000 hp ATB tugs from Nichols Brothers Boat Builders, Whidbey Island, WA. Speaking at Marine Log Tugs & Barges 2016, Nichols Brothers Boat Builders President & CEO Gavin Higgins said that ATBs enjoy several cost advantages over coastal tankers when it comes to moving refined products. Crew costs are far less, nine crew vs. 18 crew. Additionally, ATBs are more ship shape, offering speed advantages over towed tank barges.

The shipyard has also signed a contract with Kirby for two line haul tugs, as well as two 8,000 hp ATB tugs based on a design by naval architect Robert Hill of Ocean Tug & Barge Engineering. The companion tank barges are being built by Vigor.

FINCANTIERI BAY SHIPBUILDING
Fincantieri Marine Group’s Fincantieri Bay Shipbuilding (FBS), Sturgeon Bay, WI, has delivered the Articulated Tug Barge unit (ATB) Barbara Carol Ann Moran and the 110,000-barrel ocean tank barge Louisiana to Moran Towing Corporation, New Canaan, CT.

The 5,300-HP, 121-foot ATB tug Barbara Carol Ann Moran is certified ABS Class +A-1 Towing Service, +AMS, and is equipped with state-of-the-art navigation and communications technology. The Louisiana is 468 ft x 78 ft.

The ATB unit will work the East Coast of the United States and the Gulf of Mexico.

This is the shipyard’s third delivery to Moran under a 2014 contract, with a tank barge delivered in May of 2015, and another ATB—the tug Leigh Ann Moran and tank barge Mississippi—delivered December 1, 2015.  

VANE BROTHERS SERIES AT ST. JOHNS
Vane Brothers, Baltimore, MD, continues to invest in new tonnage. It has a long running newbuild program at Chesapeake Shipbuilding in Salisbury, MD, where it is constructing a series of 3,000 hp ATB tugs and has now added the second of eight 4,200 horsepower tugboats from St. Johns Ship Building, Palatka, FL.

The new tug, Hudson, is the second of Vane’s Elizabeth Anne Class, under construction at St. Johns Ship Building. Lead vessel of the class, the Elizabeth Anne, was delivered in January, while the third in the series, the Baltimore, is set for completion this summer.

The new tug will be paired with the Double Skin 601, the first in a new series of 55,000 bbl barges and will be followed later this year by the Double Skin 602, both built by the Conrad Deepwater South Shipyard in Amelia, LA.

“Our ongoing fleet construction program ensures that we have state-of-the-art equipment available to service all of our customers’ needs with the utmost safety and efficiency,” says Vane Brothers President C. Duff Hughes.

Designed by Frank Basile, P.E., of Entech Designs, LLC, Vane Brothers’ Elizabeth Anne Class tugboats are close cousins to the Basile-designed Patapsco Class tugboats, 15 of which were produced between 2004 and 2009.

Measuring 100 feet long and 34 feet wide, with a hull depth of 15 feet, the model bow Hudson is powered by two Caterpillar 3516 Tier 3 engines, each generating 2,100 horsepower at 1,600 rev/min. Two John Deere PowerTech 4045, 99 kW generators deliver service power to the boat, while a third John Deere 4045 teamed with an Allison transmission drives the chain-driven Intercon DD200 towing winch. The Elizabeth Anne also has Reintjes marine gears supplied by Karl Senner, LLC, Kenner, LA.

The Hudson features the latest in solid-state, Simrad electronics and handsomely appointed, mahogany upper and lower pilothouses, as well as spacious accommodations for up to seven crew members.

Meanwhile, the Double Skin 601 is configured and outfitted in a nearly identical fashion to the most recent 55,000 bbl Vane Brothers barges that were delivered in 2015 by Indiana-based Jeffboat Shipyard. Like them, the Double Skin 601 is equipped with an 8,600 BTU thermal fluid heating system, vapor control system and cargo tanks coated with International Interline 994 Epoxy Novolac. However, the Double Skin 601 has a raised forecastle bow design, which provides additional reserve buoyancy.

The DS-601 and its sister, the DS-602, are both fitted with two fixed boom pedestal cranes each, Model F1-65, with a 65-foot boom length supplied by Techcrane International, Covington, LA.

Primarily tasked with towing petroleum barges engaged in the North Atlantic coastwise trade, the Hudson has joined the Elizabeth Anne among more than 20 vessels that are part of Vane’s Delta Fleet, based in Philadelphia. The DS-601 is also a new Delta Fleet member.

NEW TUG FOR SEA VISTA
In early April, BAE Systems Southeast Shipyards, Mobile, AL, launched the first of two 12,000 hp ATB tugs for Sea-Vista ATB, LLC.

One of the interesting features of the tug M/V Sea Power is that it has two independently controlled and operated hydro-dynamic Van der Velden Barke rudders. Independent Proportional Steering will allow the rudders to be actuated either independently or synchronized. The rudders were supplied by Dutch company Van der Velden Marine Systems (VDVMS) in conjunction with its U.S. representative Ships Machinery International, Inc. (SMI).

Van der Velden says that tank tests showed that rudder design was extremely effective for this type of vessel. This ATB tug will have enhanced maneuverability and excellent course keeping stability. The efficiency provided by this high technology rudder solution will result in significant savings over the life of the vessel.

The 43m x 14m ATB tug, with a draft of 6.75m, is designed by Seattle-based Guido Perla and Associates, Inc. (GPA). The tug’s power is supplied by two 4,640 kW main engines and three 250 kW main generators, with a standby emergency generator of 150 kW. The vessel uses a pin connector system between the tug and the barge and fully complies with ABS Under 90 m Rules, Maltese Cross A1 AMS ACCU Towing Vessel, SOLAS, USCG Subchapter I.

“We are pleased that our client selected this state of the art rudder system for their new vessel,” said SMI Vice President Arthur Dewey, and “we are confident that their faith in Van der Velden rudders will be rewarded over the long haul.” Van der Velden reports that the Sea Power is the only vessel of its kind in the U.S. at present time.

The tug will have exceptional maneuverability, with two independently controlled and operated hydrodynamic Van der Velden Barke rudders. Independent Proportional Steering will allow the rudders to be actuated either independently or synchronized.

Van der Velden has done a lot of work to facilitate the installation of these rudders into a hull and worked closely with Guido Perla Associates Inc. and BAE Systems to assure a smooth transition from initial design to final installation.

GPAI Chairman Guido Perla commented, “Van der Velden provided excellent technical support and on time delivery of design documents that helped us develop the engineering and design for the installation of their steering system. Their coordination with our staff was prompt and to the point. We appreciated their support.”

Van der Velden says that the key driver behind the Barke rudder is its innovative and sophisticated progressive high lift design, offering unsurpassed maneuvering and course-keeping performance, as well as smooth operational comfort. The progressively operating flap linkage system is contained in a fully enclosed, grease-lubricated Barke housing. This results in minimum wear on the linkage components and eliminates the problems caused by contact with floating objects.  

Another set of Barke high-lift rudders will be installed on a second ATB tug before this summer.

BARGE FOR PROVPORT
Conrad Shipyard, Amelia, LA, recently delivered a 300-foot long x 72-foot wide rake/box barge with a deck rating of over 6,000 pounds per square foot to ProvPort, Providence, RI, according to naval architect JMS Naval Architects, Mystic, CT. The crane barge design allows for the easy loading and unloading of cargo from ships to the dock or from ship to ship.

JMS Naval Architects, Mystic, CT, engineered and designed the crane barge for the State of Rhode Island that will be used for stevedoring operations at ProvPort Inc.

ProvPort is a nonprofit public-private partnership, formed in 1994, which owns and operates the municipal port of the City of Providence, RI. ProvPort is New England’s premier deep-water multimodal facility for international trade and domestic distribution and one of the busiest ports in America’s northeast.

JMS designed the barge to carry and operate the facility’s 440-ton Liebherr LHM 550 mobile harbor cranes. The barge is ABS classed A1 with notation “Deck Barge,” uninspected and unmanned. JMS also created the technical specification documents to utilize for the solicitation of shipyard bids and provided owner’s representative services during the construction of the barge at Conrad Industries.

The contract was funded by the State of Rhode Island’s Transportation Investments Generating Economic Recovery (TIGER) II grant program award managed by the Rhode Island Commerce Corporation. The grant was created by Congress in the 2010 Transportation Appropriations Act and allowed the purchase and installation of the barge and two high performance harbor cranes. The new stevedoring equipment will modernize and enhance the port’s ability to continue its existing bulk material operations while expanding its capabilities to accommodate container operations; thus alleviating demand on the Port of Boston—the only existing container port in New England. The new crane barge will be critical for the port which has relied on 30-year-old rented crane barges that have been prone to breakdowns and have been out service for prolonged periods. The crane barges are estimated to remove on average 1,000 trucks per week off the northeast corridor highway system—one of the most congested in the country.

NEW HARBOR TUGS FOR BAYDELTA, MCALLISTER
Jensen Maritime, Seattle, is designing tractor tugs for both U.S. East Coast and West operators. One is for Vessel Chartering LLC, a wholly owned dividsion of BayDelta Navigation. The new tug is powered by a pair of 3,385-horsepower Caterpillar 3516 EPA Tier 4 engines and is the third tugboat designed by Jensen Maritime with engines meeting EPA Tier 4 requirement.

The tug was designed without ballast tanks, eliminating the need for ballast water discharge and therefore ballast water treatment systems. To maintain proper trim, the vessel will transfer fuel, as necessary.

The tug is being built by JT Marine Inc. shipyard in Vancouver, WA, for delivery in second quarter 2017.

Jointly developed by Vessel Chartering and Jensen, the 110-ft x 40 ft tug has the ship assist and escort capabilities of smaller harbor tugs, while delivering the improved towing performance and increased range of larger ocean-going tugs.

The design offers the flexibility to support ship escorts, assists and towing, with the escort capability being enhanced to provide support for assisting the large, 18,000 TEU containerships expected to make an increasing number of West Coast port calls.

With an electrically powered, double drum tow winch aft by Rapp USA and an electrically powered hawser winch forward by Markey Machinery as deck machinery, the vessel will be capable of a 93-to-95 short-ton bollard pull. Both winches’ electrical power will remove any chance of a hydraulic oil spill on deck.

The tug is designed to carry up to 123,000 gallons of fuel, 4,300 gallons of fresh water, and up to 4,500 gallons of urea, which is used in the main engine exhaust Selective Catalyst Reduction (SCR) treatment system used to meet EPA Tier 4 emissions requirements.

On the East Coast, McAllister Towing, New York, NY, has contracted with Horizon Shipbuilding, Inc., Bayou La Batre, AL, to build it two new 100 ft x 40 ft new escort tugs.

The tugs will be powered by 3516E EPA Tier 4-compliant Caterpillar engines with Schottel SRP4000FP propulsion units producing 6,770 hp and 80 metric tons bollard pull.

The tugs will be the 31st and 32nd tractors and the first Tier IV tugs in McAllister’s fleet.

They will be ABS classed Maltese Cross A-1 Towing, Escort Service, FiFi 1 and Maltese Cross AMS.

The hull has been designed by Jensen Maritime for enhanced ship docking abilities in addition to direct and indirect escorting and the tugs have been designed and simulator tested to assist new Post-Panamax and Ultra-Large Vessels.

Towing machinery will include a Markey asymmetric render-recover winch on the bow and a Markey tow winch with a spool capacity of 2,500 ft of 2¼ in wire on the stern.

MARCON BROKER FOR NEW DESIGN TUG
Purple Water Ltd. has appointed Marcon International, Inc., Coupeville, WA, as exclusive broker to handle the shipyard licensing for construction of an innovative new tug in the Americas.

Called the Giano tug, the compact double-ended tug has a high displacement tunnel hull form, two large structural keels and a straight-line controllable pitch thruster configuration designed and built solely for ship handing.

With intuitive in-line handling controls, the tug can produce 55 tonnes (70 tonnes) of bollard thrust and pull in all directions at full power with true 360 degree maneuverability, while maintaining a 0 degree list – plus a side-stepping speed of 7 knots – from full ahead to full speed sideways in 10 seconds.

The tug works equally well from the bow or stern and is fitted with 75 tonne escort winches fore and aft.

The design is claimed to has the highest stability numbers of any escort tug afloat, not only in its own 24 m compact class, but also compared with the 32 m escort terminal class.

Two separate engine rooms, a separate generator room and a double hull with integral “W” heavy duty fendering and patented underwater fenders provide a high level of safety, and allow the tug the unique capacity to side thrust and push at full power without listing, while assisting vessels in confined spaces

The Gianotug design is patented over 40 countries.

After four years of research and development, the first tug of this class, is now available in Italy for shipowners and shipyards interested in licensing and building the design to inspect and experience a “hands-on” demonstration of the tug’s capabilities.

Built by Chinese shipbuilder Guangdong Bonny Fair Heavy Industry, the 25.75 m x 13.02 m x 5.20 m depth / 5.30 m Giano is powered by twin 1,678 kW CAT 3512C-HD diesels developing a total power of 4,562 HP at 1,800 RPM.

A Schottel SRP-3000 azimuthing drive with a controllable pitch prop is mounted in a straight line at each end, with the tunnel hull specifically designed to eliminate propeller interference.

Topside access and ultra-short shaft lines allow for main engine removal in a few hours.

The U.K. flagged Giano is classed LR +100A1, Escort Tug, FiFi-1 (2,400 cu.m/h) with water spray, Unrestricted – MCA WB Area 1 (up to 150 miles from safe haven). While this first vessel has a 55 tonnes bollard pull, the unified design allows for both 55 tonnes and 70 tonnes bollard pull versions to be built.

  • News

Subchapter M and the IRS

 

Countless Federal laws govern nearly every aspect of the inland waterways transportation industry, yet the convergence of the United States Coast Guard (USCG) Subchapter M impending Final Rule with Internal Revenue Services (IRS) Inland Waterways Excise Tax audit practices might have a more profound, far reaching impact then industry observers have as yet considered. Fortunately, it appears that taxpaying tow & barge operators may come out on top if they take full advantage of this unlikely Federal rulemaking interplay.

Background
The inland waterways constitute a 25,000 shallow-draft transportation system of which 12,000 miles are taxable Inland Waterways. This domestic waterborne transportation system is a prominent fixture in supporting key American industries such as: mining, agriculture, timber, petroleum and chemicals, cement, metal, and paper and allied products. Barging is a highly energy-efficient freighting solution that has historically been safe, congestion free, and creates a low impact land use and low pollution impact footprint. The movement of immense quantities of raw materials at low cost over long distances is the sustaining force of the waterways system. Stretching from Pennsylvania in the Northeast, to Texas in the Deep South, and Minnesota in the Heartland this “waterways highway” is a vital “import & export” network between states and an artery to foreign markets.

The economic impact in terms of product value transported between states on the inland waterways exceeds $100 billion annually. The 70,000 person inland waterways workforce underpins various industries of more than 800,000 workers. States along the inland waterways contribute 54 percent of the national population, 49 percent of GDP, 50 percent of Federal tax revenue, 56 percent of heavy manufacturing jobs, and 61 percent of agricultural jobs. Countless millions of payroll taxes are generated for Federal and State governments as a result of the inland waterways industry. The Inland Waterways Trust Fund has accrued in excess of $1.6 billion from fuel tax revenue since 1986 and is a catalyst for major construction and rehabilitation projects on the inland waterways.

Subchapter M is the result of the Coast Guard and Maritime Transportation Act of 2004 (CGMTA 2004) in which Congress authorized the Secretary of Homeland Security to create regulations for towing vessel safety management systems and hours of service for towing vessel personnel. The Towing Safety Advisory Committee (TSAC), a Federal Advisory committee to the United States Coast Guard comprised of a broad spectrum of interested parties in the inland waterways industry, established a working group to assist USCG in framing the rules required under CGTMA 2004. Over the course of six years TSAC conducted numerous public meetings that culminated in four TSAC reports submitted to USCG for review and revision. USCG published the Subchapter M Notice of Proposed Rulemaking (NPRM) in August 2011 and held four public hearings nationwide for public comment. Publication of the Sub Chapter M Final Rule is anticipated in 2016.

Objective Evidence
Objective evidence is best defined as documented statements of fact, other information or records, both quantitative and qualitative, related to the quality of an item or activity, based on observations, measurements, or verifiable tests.     

The 2011 NPRM publication set forth the U.S. Coast Guard’s intent to adopt “objective evidence” as a safety requirement through “…detailed processes, procedures, recordkeeping and auditing…” documented in “logbooks, non-conformity reports, and/or other reports of audits.”

The Internal Revenue Service applies accounting’s “Objective Evidence” standard when conducting audits of towing operators for compliance with the Inland Waterways Excise Tax as reported on IRS Form 720. A typical IRS Information Document Request (IDR) to an inland towing operator will include the vessel log, fuel purchases, maintenance records, machinery tech manuals, and fuel operating reports.

Workboat eLogs
Federal law details what entries must be made by watch officers in the vessel’s official logbook. TSAC, in a 2008 report to USCG, reinforced existing recordkeeping requirements for inland towing operators and expanded upon the increased recordkeeping burden Sub Chapter M rules will likely have from a watch officer perspective. Although Federal law does not require log entries related to geographic position, waterway conditions, or commercial activities, it does require the logging of pre-departure testing of steering & propulsion, safety items & drills, crew, and marine casualties. Log entries must be timely and are presumed accurate thus binding the vessel owner to those entries. Negating the binding effect in litigation is held to a rigorous test. The maintenance of a proper and accurate log cannot be over-emphasized as the consequences for poor onboard recordkeeping can be legally and financially catastrophic to a marine operator.

Appreciating the increased onboard recordkeeping burden Subchapter M posed, the U.S. Coast Guard provided for the automation of the onboard recordkeeping processes through definition of a towing vessel record, or workboat eLog, in Part A Section 136.110 of the NPRM. This definition allows any onboard recordkeeping or documentation of events required by Subchapter M to be “a book, notebook, or electronic record”. Thus, according to the NPRM, inland towing operators have the advantage of adopting workboat eLogs as a primary recordkeeping tool.

Workboat eLogs and Marine Enterprise Solutions
While the presence of an onboard workboat eLog offers considerable advantage to watch officers and onboard auditors, it is only through the integration of the eLog with a shoreside marine enterprise solution that its benefits can be fully realized. The ability to “push” onboard data shoreside for interrogation by various marine enterprise solution modules offers an unlimited variety of analytical models for decision makers to consider.

The two distinct audit report functions of safety (USCG) and accounting (IRS) are easily achievable within the framework of a mature, interfaced onboard/shoreside recordkeeping solution. Of course, affordability, scalability, ease of user interface, system stability, and system configurability play an irreversible role in the success of a mature marine enterprise solution. It should also be noted that the presence of Key Performance Indicator data pushed by eLogs to the marine enterprise solution and applied to an industry best practices regime can only improve asset utilization, workforce performance, and customer satisfaction.

Conclusion
The unintended opportunities facing inland waterway operators by opting into the Subchapter M onboard electronic recordkeeping options in lieu of manual recordkeeping are hard to contest. These options are greatly enhanced if the marine operator also elects to interface office accounting, safety, and personnel functions with the vessel as part of a shoreside marine enterprise solution.

Adopting a software architecture and infrastructure where the marine operator can satisfy the reporting requirements of a multitude of Federal agencies (USCG, USACOE, IRS, EPA) through a single electronic reporting system which also provides critical commercial data to the carrier, clients, vendors, and other interested third parties offers immeasurable value.

  • News

The Best Ships of 2015

1. ISLA BELLA, WORLD’S FIRST LNG-FUELED CONTAINERSHIP (pictured above)

TOTE Maritime’s 3,100-TEU containership Isla Bella was due to set sail for San Juan, PR, on November 24, marking the first time a ship in a Jones Act liner service will burn Liquefied Natural Gas (LNG) as a marine fuel.  When the 764-foot-long Isla Bella transited the Panama Canal back on October 30 on her way to the Port of Jacksonville, Panama Canal Administrator/CEO Jorge L. Quijano called her “a true engineering feat.”

Among the principal maritime stakeholders involved in the successful launch of the Isla Bella and her sister Perla del Caribe are: owner and operator TOTE, shipbuilder General Dynamics NASSCO, designer DSEC (Daewoo Shipbuilding and Marine Engineering’s ship design arm), engine licensee MAN Diesel & Turbo, classification society ABS, and regulator U.S. Coast Guard.

The two Marlin Class containerships were contracted by TOTE in December 2012 and are being built at a total cost of about $375 million.

The 764-ft Isla Bella is equipped with the world’s first dual-fuel slow-speed engine, an 8L70ME-GI built by Korea’s Doosan Engine, under license from MAN Diesel & Turbo. With a 3,100 TEU capacity, the LNG-powered Isla Bella reduces NOx emissions by 98 percent, SOx emissions by 97 percent and CO2 emissions by 76 percent. The technology makes the ship one of the world’s most environmentally friendly containerships afloat.

During LNG will allow the Marlin Class Isla Bella to be fully compliant with strict emissions regulations while operating in both the North American Emissions Control Area and the U.S. Caribbean ECA.

At the time of her delivery, Kevin Graney, Vice President and General Manager of General Dynamics NASSCO, said, “Successfully building and delivering the world’s first LNG-powered containership here in the United States for coastwise service demonstrates that commercial shipbuilders, and owners and operators, are leading the world in the introduction of cutting-edge, green technology in support of the Jones Act.”

The moment is bittersweet for TOTE as it unfolds within the shadow of the tragic loss of the SS El Faro with all hands aboard during Hurricane Joaquin on October 1. The ship’s crew of 28 and five Polish nationals onboard were lost. The U.S. Navy, working with the National Transportation Safety Board (NTSB), has located the ship in waters 15,000 feet deep near the Crooked Island in the Bahamas.

The Isla Bella will be joined by the Perla del Caribe in Puerto Rico cargo service in the first quarter of 2016.

 


 

2. OHIO, LNG-READY PRODUCT TANKER
The 330,000 bbl Ohio was became the first product tanker to be built with the future consideration for the future use of LNG as fuel when it was delivered earlier this year to Crowley Maritime Corp. by Aker Philadelphia Shipyard, Philadelphia, PA.

New OhioWebThe Ohio received American Bureau of Shipping’s (ABS) LNG-Ready Level 1 approval, meaning Crowley has the option to convert the tanker to Liquefied Natural Gas (LNG) propulsion in the future.

The Ohio along with her three ships being built at Aker Philadelphia are based on a proven Hyundai Mipo Dockyards (HMD) design which incorporates numerous fuel efficiency features, flexible cargo capability, and a slow-speed diesel engine built under license from MAN Diesel & Turbo. The 600 feet long Ohio 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.”


3. NEW MINI TANKER FOR NY HARBOR
Blount Boats, Inc., Warren, RI, delivered the Chandra B, a new mini-tanker for American Petroleum & Transport, Inc., Miller Place, NY. The 79 ft by 23 ft, double-hull bunkering tanker operates in New York Harbor and New Jersey supplying fuel to ferries, dinner boats, dredges, and other vessels.

ChandraBPropulsion power for the tanker is supplied by two EPA Tier 3-compliant Cummins Model QSL9, six-cylinder diesel engines rated at 330 hp at 1,800 rev/min with ZF Model W325 marine hydraulic gears that will have 4.91:1 reduction ratio. The self-propelled Chandra B is equipped with a 50 hp Wesmar hydraulic bow thruster, providing it with enhanced maneuverability.

Designed by Farrell & Norton Naval Architects, Newcastle, ME, the Chandra B is built to USCG Subchapter “D” specifications and is less than 100 gross tons. Farrell & Norton also designed one of the tank barges in American Petroleum & Transport’s fleet. The double-hull Chandra B will replace the 1979-built single hull Capt. Log in American Petroleum & Transport’s fleet.

American Petroleum & Transport (APT) has had to retire all of its single-hull tankers because of OPA 90 regulations.

APT vessels crisscross New York Harbor delivering ultra low sulfur diesel to clients such as Circle Line, New York Water Taxi, Great Lakes Dredge & Dock, and Sterling Equipment, as well as for the auxiliary engines of larger ships. The Chandra B has cargo fuel tankage is designed to hold a capacity of 56,450 gallons.

 


 

 4. SAKIGAKE, JAPAN’S FIRST LNG-POWERED TUG
This past year, NYK took delivery of Sakigake, Japan’s first LNG fueled tug. Built at NYK’s wholly owned subsidiary Keihin Dock Co’s Oppama shipyard, the 37.2 m x 10.2 m Sakigake is operated by Wing Maritime Service Corporation, mainly in the ports of Yokohama and Kawasaki. Wing Maritime also operates the hybrid tug Tsubasa.

Sakigake webThe Sakigake is equipped with two Niigata 6L28AHX-DF dual-fuel engines, each developing 1,618 kW. Propulsion is supplied by two Niigata Z-Pellers.

The DF engines can burn either LNG or diesel oil. The environmental advantages of operating on LNG as compared with conventionally powered tugs that use marine diesel oil is Sakigake emits about 30 percent less CO2, 80 percent less NOx, and no SOx.

While the project posed several challenges—the relatively small size and limited amount of space on the tug, and the large variation in engine power—Keihin Dock was able to achieve the desired level of environmental performance while maintaining the same hull form and steering performance of existing tugs. Keihin Dock worked closely with both Niigata Power Systems and Air Water Plant & Engineering Inc. to develop equipment for supplying LNG.

The project was supported by subsidies from Japan’s Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure and Transport. ClassNK also provided joint research support.

 


 

5. JS INEOS INSIGHT, FIRST ETHANE-POWERED SHIP

Emblazoned on the JS Ineos Insight’s hull is the phrase, “Shale Gas for Manufacturing.” Built specifically to transport shale gas from the U.S. to Europe, the JS Ineos Insight is the first of eight 180m x 26.6m ethane gas carriers built by China’s Sinopacific for Denmark’s Evergas.

 

JSINEOSINSIGHT 2Named on July 14, the JS Ineos Insight can not only carry ethane, LPG or LNG, but can also burn ethane, LNG and conventional diesel in its two Wartsila 50DF dual fuel engines.

The eight Ineos ships will transport over 800,000 tons of ethane gas at -90°C per annum across the Atlantic from the U.S. to Norway and Scotland.

Classed by Bureau Veritas, the Dragon vessels were originally designed as dual-fuel LNG/diesel-powered vessels, with two 1,000 m3 LNG tanks on deck powering two Wärtsilä 6L20 DF main engines with a total output of 2,112 kW and two shaft generators with a total output of 3,600 kW power. The vessels will initially transport ethane from the U.S, to the U.K. Ineos refineries, the ability to also burn ethane was added to allow use of the cargo gas as fuel. 

At the christening of the JS Ineos Insight and the JS Ineos Ingenuity, Ineos Chairman Jim Ratcliffe says, “Today is a landmark day for both Ineos and Europe. We have seen how U.S. shale gas revolutionized U.S. manufacturing and we believe these huge ships will help do the same for Europe. Ineos together with Evergas has commissioned eight brand new ships, accessed hundreds of miles of new pipeline and built two enormous terminals to get U.S. Shale gas to Europe. The scale of the whole project is truly breathtaking.”

According to Bureau Veritas Business Development Manager Martial Claudepierre, the ability to burn ethane and LNG as fuel in the Dragon Class ships “is a major step forward in the use of clean fuels.” He says that BV worked with Evergas and the Danish Maritime Authority to verify and ensure that the use of ethane is at least as safe as required by the IGC and will not impair the engine compliance with MARPOL Annex VI.  

According to Claudepierre, using ethane required extra engine room ventilation and additional gas detection, plus modifications to the main engines including a lower compression ratio, different turbocharger nozzles and de-rating of the engine to cope with the lower knocking resistance of ethane. “But,” he says, “The gains in not carrying an additional fuel and in environmental performance from being able to burn clean fuel throughout the voyage are significant.”


 

6. MARJORIE C, NEW JONES ACT CONRO
Capable of carrying up to 1,200 cars and 1,400 TEU of containers, the Combination Container and Roll-on/Roll-Off (ConRO) vessel Marjorie C entered Jones Act service this year between the U.S. West Coast and Hawaii.

honolulu 13231 webBuilt by VT Halter Marine, Pascagoula, MS, the Marjorie C was engineered from a proven design by Grimaldi at Croatia’s Uljanik Shipyard. The 692 ft x 106 ft ConRO has a draft of 31 ft, deadweight of 21,132.5 metric tons, with nine decks. It has a stern ramp capacity of 350 metric tons. The ship has a service speed of 21.5 knots.

The vessel’s design incorporates the highest level of operating efficiencies as well as reduced environmental impacts. The sister vessel, Jean Anne, was Pasha Hawaii’s first Jones Act vessel and has been serving the Hawaii/Mainland trade since March 2005. The Marjorie C entered into service this past May.

The ship is named in honor of Pasha Hawaii’s President and CEO George Pasha, IV’s grandmother, Marjorie Catherine Ryan.

“After more than three and a half years of planning and construction, we are pleased to unveil a ship that has been designed to not only accommodate the varying needs of our customers, but a vessel that minimizes our carbon footprint through extensive fuel consumption efficiencies and other green technologies,” said Pasha Hawaii’s President and CEO, George Pasha, IV. “With the addition of the Marjorie C we can now offer customers increased service and capacity between the West Coast and Hawaii trade lane on vessels providing superior reliability and cargo protection.”


7. NEIL ARMSTRONG, FIRST OF NEW CLASS OF RESEARCH VESSELS
This past Halloween, the first-of-class oceanographic research vessel R/V Neil Armstrong (AGOR 27) set sail from Dakota Creek Industries, Anacortes, WA, to San Francisco, CA, on its inaugural voyage. As we went to press, the Neil Armstong was waiting its turn to pass through the Panama Canal on its way north to the Woods Hole Oceanographic Institute in Woods Hole, MA. The ship will be operated by the Woods Hole Oceanographic Institution under a charter party agreement with Office of Naval Research (ONR).

Armstrong AerialsC00069.16Designed by Guido Perla & Associates, Inc., Seattle, WA and owned by the U.S. Navy, Neil Armstrong is 238 ft x 50 ft with a depth of 22 ft and draft of 15 ft. The first of two research vessels, the Neil Armstrong has four main 1,400 kW diesel generators, two 876 kW propulsion motors, and two controllable pitch propellers. The ship has a sustained speed of 12 knots and maximum speed of 12.8 knots.

The ship was classed by ABS Under 90 meter rules A1, Circle E, AMS, ACCU, NIBS, Ice Class D0, UWILD, 46 CFR Subchapter U, SOLAS (Oceanographic Vessels), MARPOL.

The Neil Armstrong’s sister vessel, the R/V Sally Ride (AGOR 28), is also under construction at Dakota Creek Industries.

During acceptance trials, Mike Kosar, Program Manager for the Support Ships, Boats and Craft office within the Program Executive Office (PEO), Ships, says, “The results of these tests and the outstanding fit, finish and quality of the vessel, stand as a testament to the preparation and effort of our entire shipbuilding team. It reflects the exceptionalism of AGOR 27’s namesake, Neil Armstrong.”

Neil Armstrong Class AGORS incorporate the latest technologies, including high-efficiency diesel engines, emissions controls for stack gasses, and new information technology tools both for monitoring shipboard systems and for communicating with the world. These ships will provide scientists with the tools and capabilities to support ongoing research including in the Atlantic, western Pacific and Indian Ocean regions across a wide variety of missions.

The lab areas include the main lab of 1,023 ft2, the wet area of 398 ft2, computer area of 311 ft2, and staging area bay of 303 ft2.

Neil Armstrong will be capable of assisting with integrated, interdisciplinary, general purpose oceanographic research in coastal and deep ocean areas. The vessel will operate with a crew of 20 with accommodations for 24 scientists.

 


 

8. BARZAN, FIRST OF NEW CLASS OF GAS READY BOXSHIPS
Recently named in a ceremony at shipbuilder Hyundai Samho Heavy Industries’ Mokpo, South Korea, shipyard, Barzan is the first in a series of six 18,800 TEU containerships ordered by Dubai headquartered United Arab Shipping Company (UASC). It is the first vessel to receive classification society DNV GL’s new GAS READY notation. Her five sister ships and eleven 15,000 TEU vessels of UASC’s newest eco-ship generation, will also receive the notation.

Barzan 3The ships have been designed and constructed to enable a quick and cost efficient retrofit to LNG fueling at a later stage. The GAS READY notation, with nominators (D, S, MEc, AEi) demonstrates that the vessel is in compliance with the gas fueled notation rules, that structural reinforcements to support the fuel containment system (LNG tank) have been verified (S), that the main engines installed can be converted to dual fuel (MEc ) and that the auxiliary engines installed can be operated on gas (AEi).

“We believe that this vessel, as well as the rest of the vessels in our new building program, demonstrates our commitment to technical innovation and eco-effectiveness,” says Jørn Hinge, President and CEO of UASC. “For UASC, achieving optimum efficiency levels is not a single initiative or project, it is a strategy and an ongoing commitment, and we will continue to work with DNV GL on the remaining newbuild vessels that have the lowest levels of CO2 output in their class.”

As well as being LNG ready, Barzan and her sister vessels incorporate several innovative energy saving methods, including a Siemens’ Siship SGM environmentally friendly drive and power generation system.

The Waste Heat Recovery System (WHRS) converts thermal energy from the exhaust gas from the main engines into electrical power to maximize the efficiency of the system.

The Barzan was expected to have an EEDI (Energy Efficiency Design Index) value that is close to 50 per cent less than the 2025 limit set by IMO, with a CO2 output per TEU that is more than 60 per cent lower than a 13,500 TEU vessel delivered just three years ago.

Barzan has been constructed to DNV GL class rules with the notations: 1A1 Container Carrier DG-P Shore Power E0 NAUT-OC HMON (A1,C1,G4) CLEAN BWM-T BIS TMON NAUTICUS (Newbuilding) GAS READY (D, S, MEc, AEi).

 


 

9. CROWN POINT, NEW GENERATION GREEN TUG
Tidewater Transportation and Terminals, Vancouver, WA, recently took delivery of the Crown Point, the first in a series of three 102 ft x 38 ft towboats being built at Vigor Industrial in Portland, OR.

CrownPointThe three towboats are the first new vessels to be built for the Tidewater fleet in 30 years, and are critical for the company to meet the anticipated rising customer demand on the Columbia-Snake River system. “The launching of the Crown Point, and the forthcoming Granite Point and Ryan Point vessels, marks an important step for Tidewater,” says Marc Schwartz, Maintenance & Engineering Manager at Tidewater. The vessels will strengthen our fleet, as well as reinforce Tidewater’s commitment to our customers, community, and environment.”

Tidewater operates the largest barge transportation and terminal network on the Columbia-Snake River system. The Crown Point joins the company’s current fleet of 16 vessels and 160 barges. Tidewater transports a wide range of cargo among a network of ports, terminals and grain elevators throughout the entire Columbia-Snake River system, which stretches some 465 miles of waterways. We also operate five strategically located terminals and five pipelines with key intermodal connections to railroads, highways and other pipelines.

Designed by CT Marine, Naval Architects and Marine Engineers of Edgecomb, ME, the Crown Point is an environmentally friendly tug with EPA Tier 3 compliant diesel engines that reduce air emissions and improve fuel efficiency. Main propulsion is supplied by two Caterpillar 3516C EPA Tier 3 certified diesel engines producing 2,240 bhp, each at 1,600 rev/min. The engines drive two 92 in. x 100 in. fixed pitch, stainless steel propellers through CT28 Kort Nozzles capable of a service speed of 8 knots. Operating in the Columbia River Gorge high winds, extreme currents and swells can be considered normal piloting conditions. That’s why the Crown Pount abd her sister towboats are fitted with an enhanced steering system using four steering and four flanking rudders was designed. The towboat has a wheelhouse with exceptional all-round visibility through full height windows, leading edge navigation and communications equipment, and enhanced accommodations for the captain and crew.

“During the last year and a half, a great deal of effort went into designing, engineering and building a towboat that would meet or exceed performance parameters,” explains Bruce Reed, Tidewater COO and Vice President. “With crew endurance being a priority, we employed Noise Control Engineers, Billerica, MA to develop a sound and vibration control package for the vessel. By incorporating Christie and Grey vibration control mounts and comprehensive acoustic insulation, noise levels register at less than 60 decibels in the accommodations during vessel operation.”

Other equipment onboard the Crown Point includes two C7.1, Tier 3 generators, rated at 480v, 200 kW at 1,800 rev/min.  The generators are controlled through an automatic transfer system that ensures the vessel will recover from a generator power loss in less than 30 seconds. Deck machinery includes seven Patterson WWP 65E-7.5, 65-ton electric deck winches, with pilothouse remote operation and local push button control stations on the main deck. Each winch has Samson 1 3/8” Turbo 75 Synthetic Line.
 
In order to use the newest technology and minimize power usage, variable frequency drives were used in all major rotating machinery applications and LED lighting was employed in both interior and exterior lighting applications. The vessel is fitted with a Kidde NOVEC 1230 fire suppression system. Centralized fire detection and alarms cover both the machinery spaces and accommodations.

 


 

10. MULTRATUG 28, A HYBRID TUG
This past year, Netherlands-based towage and salvage specialist Multraship took delivery of Multratug 28, a Damen ASD 2810 Hybrid tug built at Damen Shipyards Galaţi, in Romania, as part of a fleet expansion program.

ASD Tug 2810 Multratug 28Classed by Lloyd’s Register, the hybrid Multratug 28 is 28.67m x 10.43m, with a maximum draft of 4.9m. The propulsion system includes two MTU 16V4000M63R diesel engines with one MTU 12V 2000 M41B propulsion genset of 800 kvA, 440V-60Hz. The battery pack are two 120 kWh. Two Rolls Royce US205 azimuth thrusters provide propulsion. The tug has a bollard pull of 62 tons, diesel direct speed of 13 knots, diesel electric speed of 8 knots, and battery pack speed of 4 knots.

The ASD 2810 HYBRID is developed to save fuel by 30% and to reduce emissions by 50%. To achieve this the vessel is provided with a propulsion system that can operate diesel-direct, diesel-electric or fully-electric. Fully-electric sailing on the batteries, with zero emissions and extremely low noise levels, is possible for time periods of up to one hour at a speed of 4 knots.

In June 2014, the first Damen ASD 2810 Hybrid was delivered to Iskes Towage & Salvage. Being green does not mean sacrificing power, the Bernardus still has a bollard pull of 60 tonnes. The Bernardus operates in the Port of IJmuiden near Amsterdam, the Netherlands.

“This hybrid tug is a unique concept,” says Dinu Berariu, Project Manager at Damen Shipyards Galaţi. “It features a diesel-direct, diesel-electric and battery powered propulsion system. This hybrid configuration will enable Multraship to lower fuel costs by up to 30 percent and emissions by up to 60 percent.”

Headquartered in the harbor city of Terneuzen, Multraship operates in the ports around the Scheldt estuary, in Zeeland seaports and the Belgian ports of Ghent and Antwerp, as well as the Bulgarian port of Burgas on the Black Sea.

Multraship’s fleet expansion program stems from its increasing customer base in the offshore sectors as well as growing demand for harbor towage services.


11. VASCO DE GAMA, FIRST 18,000 TEU BOX SHIP FROM A CHINESE YARD
As we went to press, the world’s third largest containership company, CMA CGM Group, Marseilles, France, was closing in on the acquisition of Singapore-based NOL, the world’s fourth largest. It successful, privately held CMA CGM would leapfrog over MSC to become number two in the world.

CMACGM Vasco de GamaA big part of CMA CGM’s success is its investments in larger, more energy efficient tonnage to improve pricing and economies of scale. An excellent example is the CMA CGM Vasco De Gama delivered this summer to CMA CGM by China State Shipbuilding Corporation (CSSC).

With a length of 399 m and breadth of 54 m, the 18,000 TEU vessel is the largest containership in the CMA CGM Group and is the first 18,000 TEU containership to be built by a Chinese shipyard. CSSC is also building two more of the giant box ships, the CMA CGM Zheng He and CMA CGM Benjamin Franklin.

Flying the U.K. flag, CMA CGM Vasco De Gama is equipped with the latest environmental technologies including a latest generation main engine, a twisted leading edge rudder with bulb from Germany’s Becker Marine Systems and an optimized hull design. These innovations decrease the vessel’s CO2 emissions by 10% compared to the previous vessel generation. With an estimated emission of 37g of CO2/km for each container carried, the giant containership provides one of the world’s greenest goods transportation options.

The ship’s environmental footprint meets the 2025 energy efficiency regulations.

CMA CGM Vasco De Gama calls at 11 different countries on CMA CGM Group’s French Asia Line (FAL) service between Europe and Asia.

CMA CGM is also building three 20,600 TEU containerships—the largest yet built—at Korea’s Hanjin Heavy Industries. Those three ships will each have full spade twisted rudders (TLKSR) from Becker Marine Systems and Becker Twisted Fins. Both Becker products will make a significant contribution to the vessel’s efficiency improvement.

 


 

12. ESVAGT FROUDE, SPECIALIZED WIND FARM VESSEL
As of September this past year, Denmark’s ESVAGT had new owners; 3i Infrastructure and AMP Capital acquired the shares of A.P. Møller-Maersk Group and ESE-Holding. While ESVAGT’s primary market will continue to be oil and gas support and standby rescue in the North Sea, the company is broadening its portfolio with a push into the offshore wind energy market.

EsvagtFroude243This past summer, ESVAGT entered the offshore wind industry with the christening of the world’s first purpose-built Service Operation Vessels at Siemens AG in Rostock and Hamburg, Germany.

The Service Operation Vessels (SOV), Esvagt Froude and Esvagt Faraday are each 83.7m x 17.6m, with a draft of 6.5m. Both of the Danish-flag SOVs were built in Norway by Havyard Ship Technology and are based on a Havyard 832 SOV design. The SOVs both have diesel-electric propulsion and DC power systems, enabling optimized fuel and energy efficiency and crew comfort. The service speed is 14 knots.

The SOVs are essentially “service stations at sea,” offering technicians a safe, efficient platform for wind turbine maintenance. Using the ship’s DP system, the ship can connect to wind turbines via its Ampelmann A-type Walk-to-work hydraulic gangway system offering a stable, safe platform to connect to the wind turbine.

Each offers accommodations for 60 people. The vessels are designed to reduce the level of vibration and increase the level of comfort for everyone onboard.

“As a supplement to the “Walk-to-Work” gangway, we have equipped the Service Operation Vessels with the newly developed ESVAGT Safe Transfer Boats (STB 7 and STB 12),” says Søren Nørgaard Thomsen, Managing Director for ESVAGT. “They are designed in-house based on more than 20 years of experience in boat development and more than 100,000 boat transfers. These boats will in a safe manner provide the industry with additional efficiencies and cost reductions.”

Each of the ships carry ESVAGT STB 7B Safe Transfer Boat, ESVAGT STB 12A Safe Transport Boat, ESVAGT FRB 15C Fast Rescue Boat.

A third ESVAGT SOV is on order and under construction at Havyard for delivery in 2016. The third ESVAGT SOV will service the 400 MW Dudgeon Wind Farm off the East Coast of England in the fall of 2016.