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Atlantic Coast: A time of renewal

If you were at a seaport along the U.S. Eastern Seaboard, more than likely you would be able to spot the distinctive blue “V” logo of the Vane Brothers Company on at least one tug in the harbor. The privately held marine transportation company has been serving the U.S. East Coast for more than 100 years, now handling chemical and petroleum products on its double-skin tank barges in seven ports from New York to Jacksonville, FL.

Under the steady guidance of C. Duff Hughes, the third generation of the Hughes family at the helm of the company, Vane Brothers, headquartered in Baltimore, MD, has been aggressively growing its fleet of 120 tugs and barges. Since 2008, Vane Brothers has been adding a series of 3,000-hp, Sassafras Class Articulated Tug Barge (ATB) tugs. Just last month, Vane Bros. ordered the 15th, 16th, and 17th of the class, all of which have been ordered from and built by Chesapeake Shipbuilding in Salisbury on the Eastern Shore of Maryland.

VaneFort SchuylerThe latest in the series delivered by Chesapeake Shipbuilding is the Fort Schuyler, the eleventh in the class. Its sister tug, the Kings Point, was delivered in April this year.

The tugs have been very popular with the company’s crews. Vane Brothers Senior Port Captain Jim Demske, says, “The crews on these tugs particularly like the high quality of the tugs’ construction and layout. The ergonomic arrangement of the pilothouses and engine rooms contribute comfort and safety. The power from the Caterpillar engines and the performance from the Twin Disc reduction gears all contribute to the great handling of these tugs, which is especially appealing to the operators. The new Simrad Solid State Halo radars and touch-screen electronics are some of the finest in the industry and also make life on these tugs better.”

Measuring 94 feet long and 32 feet wide with a hull depth of 13 feet, the Fort Schuyler is similar in most respects to the previous 10 tugs built for Vane by the shipyard.

The vessel is equipped with twin Caterpillar 3512 Tier 3 main engines producing a combined 3,000 horsepower, and operates with a single-drum hydraulic towing winch from JonRie Intertech, Manahawkin, NJ.

“Soft-core” panels and heavy, fire-rated doors are used throughout the boats, offering the crew a safer and quieter living environment.

“Vane Brothers and Chesapeake Shipbuilding continue to have a very strong relationship,” says Demske. “The next tug to be launched in coming weeks will be the Fort McHenry, followed by the Fishing Creek.” Demske says the names of the other tugs have yet to be announced.

The Fort Schuyler, like the Kings Point, has joined Vane Brothers’ fleet based in New York. The two vessels are named for the campuses of SUNY Maritime College in Fort Schuyler, NY, and the U.S. Merchant Marine Academy in Kings Point, NY.

In addition to the 3,000-hp tugs coming from Chesapeake Shipbuilding, there are two 4,200-hp tugs under construction at St. Johns Ship Building in Palatka, FL, for delivery in 2016, with two more under contract.

VANE ADDS NEW BARGES, TOO
According to Vane Brothers, three 35,000-barrel barges and four 55,000-barrel barges (including the 509A asphalt barge) have been delivered in the last 10 months, with another 55,000-barrel barge expected before the end of the year. These have come primarily from Conrad Shipyards in Orange, TX, and Amelia, LA, as well as Jeffboat in Jeffersonville, IN.

New and current mariners at Vane have a variety of training opportunities available to them, both formal and informal. According to Vane Brothers spokesman Blaise Willig, the company has supported many vessel-based employees this year as they receive instruction to help them be more effective at their current jobs and contribute to their future advancement. Vane is a Partner Company in the Workboat Academy’s Workboat Program. And, as a result of Person in Charge (PIC) Barge training this year at the Maritime Institute of Technology and Graduate Studies (MITAGS) in Linthicum Heights, MD, former Vane Deckhands have become highly qualified Tankermen now assigned to Vane barges. Vane’s training efforts and commitment to promoting from within help to ensure that its vessels are manned with professionals who meet and surpass the highest standards in the industry.

NEW ATB TUG LAUNCHED FOR BOUCHARD

Early last month, the Moss Point Marine shipyard of VT Halter Marine, Inc., launched the M/V Morton S. Bouchard a 6,000hp, twin-screw Articulated Tug Barge (ATB) tug for Bouchard Transportation, Inc., Melville, NY.

The ATB tug is one of two sister vessels being built under a two-vessel contract signed in August 2014. Morton S. Bouchard and sister vessel Frederick E. Bouchard each measure 130 feet by 38 feet by 22 feet and is classed by ABS as +A1 Ocean Towing, Dual Mode ATB, USCG Subchapter C. On completion, both tugs will be equipped with an Intercon Coupler System. Deliveries are expected in January and May 2016, respectively. The vessels will enter into Bouchard Transportation’s fleet service in New York, NY.

This most recent launch follows the September launch from the Moss Point shipyard of another ATB tug for Bouchard, the 10,000 hp M/V Donna J. Bouchard.

Also equipped with an Intercon Coupler, Donna J. Bouchard, is classed by ABS as +A1 Towing Vessel, Dual Mode ATB, USCG Subchapter M. She will be paired with barge B.No.272, which is currently under construction at VT Halter Marine’s Pascagoula, MS, shipyard to comprise the second ATB unit built for Bouchard Transportation as part of its major expansion program.

“Bouchard Transportation Co. Inc. is happy to announce yet another successful launching of a state of the art ATB tug built by VT Halter Marine. The launching of the M/V Morton S. Bouchard Jr. is a special event within the Bouchard Family, for the vessel is named after the father of President/CEO, Morton S. Bouchard III, who wanted his father’s name to always remain on the waterfront for which he dedicated his entire fife to. The original tug, Morton S. Bouchard Jr., which was also built by Halter, was earlier renamed as The Bouchard Boys and continues to operate with Bouchard Fleet,” says Morton S. Bouchard III President and CEO, Bouchard Transportation.

“The successful launching of both vessels, the M/V Morton S. Bouchard Jr. today and the M/V Donna J. Bouchard in September is an indication of the commitment to the continued relationship with Bouchard Transportation,” says Jack Prendergast, CEO, VT Halter Marine.

MoranNEW ATB TUG FOR MORAN
Moran Towing has newbuild programs underway at Washburn & Doughty shipyard in East Boothbay, ME, and Fincantieri’s Bay Shipbuilding in Stugeon Bay, WI. Its newest ATB tug, Leigh Ann Moran, recently completed her sea trials in Sturgeon Bay. The 121 ft x 36 ft tug was christened in late September by her namesake, Leigh Ann Engibous, wife of long-time Chevron employee Bill Engibous.

Also under contract at Bay Shipbuilding are the 121 ft x 36 ft ATB tug Barbara Carol Ann Moran and a 110,000 bbl double-skin tank barge, which are due for delivery in the second quarter of next year.

Meanwhile, Washburn & Doughty have contracts for six 6,000 hp Z-drive harbor tugs for the New Canaan, CT-based tug company.

MCALLISTER PUBLISHES 150th ANNIVERSARY BOOK
Last year, McAllister Towing & Transportation Co., New York, NY, celebrated its 150th anniversary of providing marine transportation, towing and harbor services. The beautifully bound hard cover book recounts the history of the five generations of the McAllister family and the tugboat business. The company was founded by James McAllister, who arrived in New York City following a shipwreck and soon bought his first sail lighter in 1864. From those humble beginnings, the distinctive red and white striped funnels of McAllister tugs can be seen from Portland, ME, to San Juan, PR.

McAllister currently has one ABS-classed 5,000-hp Z-drive reverse tractor tug on order at Eastern Shipbuilding Group, Panama City, FL. The word on the street is that the company is in serious discussions with another shipyard regarding the construction of at least two other harbor tugs.

Eastern Shipbuilding also recently launched the H. Douglas M, the first in a series of four 5,150 hp escort tugs for Bay-Houston Towing. The 80 ft x 38 ft tug is based on a Z-Tech 2400 Class design by Robert Allan Ltd. Delivery of the escort tug is scheduled for early 2016.

The same design is being built by Eastern Shipbuilding for a series of four tugs for Suderman & Young. G&H Towing is the owners’ onsite representative and agent during the engineering, construction, and delivery for both Bay-Houston and Suderman & Young Towing.

WIND FARM VESSEL TAKES SHAPE
In Warren, RI, the first U.S.-flag wind farm vessel is taking shape at Blount Boats, Inc. Blount Boats President Marcia Blount says the 21-meter aluminum catamaran will be ready for delivery in April 2016.

Rhode Island Fast Ferry will operate the boat for Block Island Wind Farm in Rhode Island. The five turbine wind farm, the first commercial wind farm in the U.S., is expected to be up and running by the fourth quarter of next year.

The catamaran is a Crew Transfer Vessel (CTV) based on a design licensed from South Boats (IOW), Isle of Wight, the U.K., one of the leading designers and manufacturers of wind farm vessels in Europe. South Boats IOW has designed and built some 85 CTV’s for the European offshore wind sector.

Blount Boats is eyeing the progress of offshore wind energy closely, says Marcia Blount.

Blount Boats also is building a passenger vessel for Chicago’s Shoreline Sightseeing. Shoreline Sightseeing provides guided architecture tours on the Chicago River, as well as classic tours on Lake Michigan and “Brew Cruises” and wine-tasting cruises.

NEW BOATS FOR CIRCLE LINE
About a 20-minute ride from Warren, RI, is the shipyard of Gladding-Hearn Shipbuilding, a Duclos Corporation in Somerset, MA. Known for their construction of aluminum, multi-hull vessels based on IncatCrowther designs, the Massachusetts shipbuilder is actually building three all-steel 600-passenger vessels for Circle Line Sightseeing Yachts, Inc., New York, NY. The 165 ft x 34 ft were designed by DeJong & Lebet, Jacksonville, FL. Those boats are due for delivery in the spring.

It’s also building a 493-passenger ferry for Hy-Line Cruises due for delivery in 2016.

One of the latest deliveries from Gladding-Hearn is the Manatee, a 28-knot Chesapeake Class launch and the first in a new generation of the popular, mid-size pilot boats for the Tampa Bay Pilots Association.

The boat continues a successful partnership between Gladding-Hearn and C. Raymond Hunt Associates, Inc., New Bedford, MA.

The Somerset, MA, shipyard introduced the Chesapeake Class pilot boat in 2003. Since then, 15 have been delivered to pilot associations throughout the U.S.

The latest improvements incorporate the performance benefits of Volvo Penta’s IPS2 inboard propulsion system.

“The IPS2 system was created to improve the performance and the arrangement of planning hulls like our pilot boats,” says Peter Duclos, the shipyard’s president. “This new generation of Chesapeake launches, named Chesapeake Class MKII, is equipped with the IPS2 pods, which provide what pilots have been asking for: higher speeds, lower fuel consumption, and more comfort.”

With a deep-V hull designed by C. Raymond Hunt & Associates, the all-aluminum pilot boat measures 52.7 ft overall, with a 16.8-ft beam and a 4.5-ft draft.

It is powered by two Volvo Penta D11, six cylinder, EPA Tier 3 diesel engines, each producing 503 bhp at 2,250 rev/min. Each engine is connected to a Volvo Penta IPS propulsion pod, which is fitted with dual forward-facing, counter-rotating propellers and integrated exhaust system, and Volvo Penta’s integrated EPS electronic steering and control system.

The EPS control system and three-axis joystick increases the boat’s overall maneuverability alongside a ship and when docking, says Duclos.

The financial incentive for the Tampa Bay pilots to optimize fuel economy, vessel handling and comfort led the shipyard to install a Humphree Interceptor automatic trim- optimization system.

“The combination of the Volvo Penta IPS system and the Humphree interceptors gives the pilots higher speeds and improved comfort, while burning 25 percent less fuel than similar Chesapeake Class launches,” says Duclos.

Key design changes to the Chesapeake Class MKII include positioning the wheelhouse aft of amidships to improve comfort and provide for a larger foredeck.

With the pods close-coupled to the engines, the engine room is located well aft of the wheelhouse with easy access to machinery through a deck hatch.

This new generation of pilot boats is also designed to accept a gyro-stabilization system, designed to reduce vessel roll.

MIX OF REPAIR AT DETYENS
This past year, there has been a good mix of commercial and government repair at Detyens Shipyards, Inc., Charleston, SC, according to the company’s Bradley Kerr. “We have recently completed work on two German owned-container vessels, a pair of casino vessels and have the usual tugs and barge units, dredge vessel and other similar harbor barges are rolling through.  We also have recently won MSC contracts on the Button and Spearhead as well as the Atlantis from Woods Hole.”

The largest commercial ship repair yard on the U.S. East Coast, Detyens also recently finished repairs on the USCG Elm and will begin work on the NOAA vessel Gordon Gunter soon. The Dredge Wheeler is also in the shipyard.

This past spring and summer, Detyens dry docked the ferries 28,460 gt M/V Highlanders and 18,523 gt M/V Leif Ericson for Marine Atlantic, Inc., St John’s, Newfoundland, Canada.

FERRY REPOWER AT CADDELL
Over the next five years, the Delaware River and Bay Authority, owner and operator of the Cape May-Lewes Ferry, plans to repower its entire fleet with cleaner burning, more fuel efficient Tier 3-compliant diesel engines.

The first of those ferries, the Delaware, arrived at Caddell Dry Dock on Staten Island, NY, on November 2 to begin the four- to five-month repower project in conjunction with its regulatory required five-year drydocking.

According to James Gillespie, Chief Port Engineer for the Cape May Lewes ferry, the Delaware is expected to return to service in April of 2016. The dry-docking is expected to cost $3.5 million.

“We’re excited to begin our vessel repowering program,” says Heath Gehrke, Director of Operations for the Cape May-Lewes Ferry. “These new engines not only burn less fuel and are more efficient, but emissions are reduced by nearly 40 percent. By undertaking this effort, we can significantly extend the useful life of our fleet and provide a cleaner environment in the communities we serve.”

Gehrke also notes that the ferry expects to save about $130,000 per year in maintenance costs associated with old engines and that the new clean diesel engines have the capability to be converted to operate on natural gas in the future.

The existing Fairbanks Morse engines are overhauled and rebuilt every 10,000 hours of usage compared to every 30,000 hours for the new EMD (Electro-Motive Division) engines. The engines were purchased from Marine Systems Inc. at a cost of $1.8 million.

While at the shipyard, the vessel will have other modifications and improvements completed, including the installation of a new gray water recovery system, new stainless steel railings and new propeller shaft seal system; installation of a new keel cooler system for main engine and generator cooling; and the bow thruster system will be overhauled.

To further assist the University of Delaware’s water research efforts on the Delaware Bay, the SeaKeeper seawater monitoring system, which collects water quality data while a vessel transits the Delaware Bay, will be installed on the MV Delaware.

During a ceremony held at the Lewes Ferry terminal in December 2014, U.S. EPA Regional Administrator Shawn M. Garvin announced the award of a Diesel Emission Reduction Act (DERA) grant of $970,000 to help facilitate the project. The Delaware River and Bay Authority (DRBA) sought the grant funding through the National Clean Diesel Assistance Program, which focuses on reducing emissions at ports under the Diesel Emission Reduction Act (DERA).

The M/V Delaware is currently equipped with two Fairbanks Morse 38D8-1/8 propulsion engines with a power rating of 2,060 horsepower each. More than 40 years old, these workhorse engines are approaching 100,000 operating hours or the equivalent of 1.5 million miles. In addition, because the engines are no longer built, spare parts are both difficult to find and expensive.

Within the next five years, the Authority plans to repower the other vessels in the Cape May – Lewes Ferry fleet: the MV New Jersey and MV Cape Henlopen.

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Building the Future

 

Over the past 18 months, fluctuations in oil prices have caused serious disruptions within the oil and gas marine sector. While some tanker operators received a boost earlier this year due to the fall in oil prices, other sectors are struggling to cover their operating costs, resulting in rigs standing idle and transport vessels being kept in dock.

But it’s not just in oil and gas. Whether it’s exploring deep waters offshore, sailing in a luxury cruise liner, or transporting liquefied natural gas (LNG), marine operators are all seeking to lower their operating expenses. In this market, the two most important things for improving stability are strongly interlinked: minimizing costs and increasing efficiency.

In my view, there are six things that should be considered to unlock the cost savings and efficiency in the marine sector in the years ahead.

Reducing fuel consumption
According to the 2015 “The New Climate Economy” report, fuel represents 50 percent or more of a ship’s operating costs. Being able to drive down fuel consumption is important for reducing costs within the industry while also reducing the environmental impact.

Maintaining the position of a ship can be a fuel-hungry process. Many of today’s ships are the size of several football fields combined. To maintain a predetermined course or position, counteracting the effects of displacing forces such as wind, current, and wave action, is no easy task. Dynamic Positioning (DP) systems provide mariner-focused solutions to put operators back in control. They predict future motion and update a vessel’s thrust demands to prevent movement beyond the operator’s defined area. Among the various benefits of this technology is the ability to minimize fuel burn and machinery wear in situations where tight position holding isn’t essential through the use of a dedicated energy-efficient (EE) mode.

Energy efficiency is improved because fewer corrections are required as thrusters, propellers and rudders control the vessel position, delivering expected fuel savings of up to 10 percent, reducing NOx emissions by up to 20 percent and lowering equipment maintenance requirements. It helps to deliver additional operational savings while meeting increasingly rigorous environmental regulations.  

Upgrading propulsion systems for reduced footprint, increased space for cargo and reduced fuel requirements
Bigger is not always better. A recent GE study revealed that careful system design could reduce the installed power requirement in a ship by up to 25% compared to the baseline, meaning the vessel requires fewer or smaller engines, translating into CAPEX savings, reduced fuel costs and increased payload within the hull.

Gas turbine propulsion system solutions can also free up space to carry more revenue-generating cargo and meet current emissions limits. For offshore support vessels, modern electric propulsion systems can further generate fuel efficiency savings of 5 to 10 percent when compared to traditional mechanical systems. These fuel-flexible gas turbines range from 4.5 megawatts to 52 megawatts and are excellent prime movers for mechanical drive, hybrid or all electric propulsion systems, all the while reducing operational costs.

Electric propulsion systems have also been deployed in various merchant marine vessels. The first electrically propelled LNG carriers in China are being built with a dual-fuel, diesel-electric power plant. Set to be completed in 2016 and 2017, these vessels will benefit from using reliable and cost-efficient power and propulsion solutions combining induction-based technology with a Power pulse Width Modulation (PWM) converter.

As new and innovative technology continues to hit the market, improved propulsion systems are reducing costs, increasing space available for cargo or other commercial activity, and reducing fuel consumption.

Addressing the skills shortage through training and remote vessel monitoring
As with many other technology and engineering sectors, there is a feeling in the marine industry that a skill shortage is already upon us. There are two ways in which the sector is addressing this.

First, better training and availability of engineering experts already in the industry. Training gives us confidence in handling whatever challenges are thrown at us. We have been extending the scope of our Marine Services Training Centers at locations around the world. Strategically placed global training centers are a requirement for building a strong knowledge base around vessel operators, and provide local support wherever it is needed. Indeed, drives, automation services and DP training take place worldwide to ensure that vessel operators are able to run equipment at the optimum level irrespective of the level of deep technical knowledge available across a fleet.

Second, new Industrial-Internet powered predictive systems on board vessels can anticipate system failures, limiting the need for emergency maintenance as systems can be repaired before an issue emerges. Modern ships are designed to empower operators and give them a comprehensive performance measurement of individual assets, fleets or the business as a whole. Analytics and insight delivered via a single, unified portal makes remote machine and systems information available for live status and productivity support, saving time and cost, and are importantly reducing the need for on-board specialists as onshore teams are able to predict issues before they arise and deploy specialists only when necessary.

Meeting the requirements of more stringent environmental regulations
While dealing with fluctuations in oil prices, operators have also had to tackle increasingly stringent environmental regulations and reduced emissions targets.

The context of environmental regulations is increasingly stringent: we are seeing Emission Control Area (ECA) zones emerge with very strict requirements for emissions. These regulations are increasingly widespread and are part of the “new normal” for the marine sector.

As such, a whole range of innovations is needed here. For example, new engine technology eliminates the need for a selective catalytic reduction system (SCR) for exhaust gas after-treatment and for storing or using urea aboard a vessel. As a result it preserves valuable cargo and tank space and reduces emissions by an estimated 70 percent.  

A new application of a proven gas turbine-based power and propulsion system that’s been used in cruise ships—the Combined Gas turbine Electric and Steam (COGES) system—addresses the same issues of environmental regulatory compliance. This compact, lightweight combined cycle power plant provides power for electric drive propulsion systems, leaves more room for cargo, and meets IMO Tier III and US EPA Tier 4 regulations today, with no exhaust treatment or methane slip. While methane slip is not regulated today, many operators are concerned that it will be in the future, since methane is 21 times as damaging as CO2 from a greenhouse gas perspective.

As increasing efficiencies becomes more important in today’s volatile market, vessel operators must look at every aspect of their operating model to ensure these are met to drive long term profitability.

A new approach to financing that will enable projects and strengthen operators’ financial capabilities
Instead of taking on the full risk of vessel design and development costs themselves at the beginning of a project, operators are partnering with strategic suppliers to share the capital outlays needed to construct ships. To support vessel operators in this volatile market, a similar approach can also be taken beyond the initial construction of the ship to ensure that vessel operators have cash flexibility for operating costs and strengthened long-term financial capability beyond construction. This new approach to financing, both at the initial construction phase and later during operations, will enable the project, as well as strengthen operators’ financial capabilities, to help deliver a more cost-effective future.

Increasing innovative manufacturing techniques, cutting downtime in manufacturing docks
It is not just system design that can reduce costs; the actual implementation time of a new system is also critical. For example, many modular offshore systems are now pre-assembled at the factory to reduce installation time when deployed in dock or at sea. In one case, everything, including all electronics, controls and other auxiliary skids come pre-assembled and tested, increasing installation speed by up to 30 percent. This means less time in dock for shipbuilding or upgrade, which helps cut costs further.

Final Thoughts
In conclusion, these six areas for driving cost savings and efficiency are crucial to the future of the marine industry. More efficient and effective propulsion, power and positioning systems are driving down costs and driving up productivity.

The emergence of multi-fuel, low-emission vessels are giving operators flexibility, cost-control and helping them achieve compliance with environmental regulations. At the same time, data analytics and vessel management software is giving operators better reliability and control over maintenance costs at sea and in dock, even as more sophisticated systems are reducing the environmental strain caused by the sector.

What’s really important however is to realize that these issues can’t be solved in isolation: a whole-vessel strategy is necessary to compete and thrive in today’s global marine space.

Norwegians square up to offshore challenge

A growing number of laid-up OSVs and sweeping job cuts in Norway’s offshore sector present major challenges to the owners and operators of some of the most sophisticated offshore vessels in the world. Numbers change on a regular basis but, by mid-October, about 70 offshore vessels of various types were laid up, and more would be idle in the coming days, analysts predicted.

The Norwegian economy is, of course, heavily dependent on offshore energy but in good times, the country has been prudent with proceeds. Its sovereign wealth fund is the largest in the world. And the Norwegians are used to riding the peaks and troughs of energy prices with pragmatism. Adjusting to downturns is painful in the short run, but part of life.

Norway’s west coast offshore cluster, located around Aalesund and Fosnavåg, is home to a bunch of blue-chip names involved in every stage of servicing North Sea energy companies. According to Per Erik Dalen, Chief Executive of Campus Aalesund—an educational hub at the center of the cluster—the region is home to no fewer than 13 ship design firms, 20 ship operators and 169 equipment suppliers.

DeBeers KlevenVessels currently under construction include a deep-sea mining vessel for De Beers at Kleven Shipyard in Ulsteinvik and what ABB claims to be the most sophisticated cable layer, also contracted at Kleven, for high-voltage cable installation. Across the bay, ship design and offshore builder Ulstein has just launched the design for a new multi-function vessel specifically targeting energy firms seeking to cut CAPEX and OPEX.

The company’s S182, a shallow vessel aimed at the South East Asia, Middle East and African markets, is designed as a platform which can be adapted for a range of offshore functions including cable laying, construction, shallow-water installation, pipe- and cable-laying and dive support. Without mission equipment, the vessel is likely to cost about $45 million, less than 40% of the company’s high-end HX102 unit designed for deep water and harsh conditions.

Meanwhile, Island Offshore – another company within the cluster partly owned by Edison Chouest – lifted subjects on a contract with Kawasaki Heavy Industries earlier this year to build a Rolls-Royce-designed combined well intervention and top-hole drilling vessel capable of a range of subsea and well functions. The UT 777 vessel has DP3, ice-class and the highest level of comfort notation.

Some might question the decision to go ahead on such a vessel at this time, but Managing Director Håvard Ulstein is confident that the decision to proceed, despite the current market, is the right one.

“This vessel will be a significant contributor to our service range and to Island Offshore as a company. We have great confidence in this project,” he says. Delivery is scheduled for 2018 or 2019 by which time many analysts believe oil prices will have rebounded.

At a recent workboat conference in Abu Dhabi, Synergy Offshore’s Chief Executive Fazel Fazelbhoy went so far as to predict oil prices could bounce back far sooner than expected, perhaps even hitting $200 a barrel within the next two years. He proposed a number of arguments, including the fact that today’s 1.5 million b/d crude surplus could easily be offset by depletion rates and cutbacks in E&P spending much sooner than expected.

Campus Aalesund’s Dalen is more cautious but nevertheless positive about the outlook, pointing out that the downturn has had little impact on innovation. The offshore energy sector may be having a tough time at the moment, he concedes, but in a longer timeframe, about 70% of the earth’s surface is ocean, 80% of it is more than 800 meters deep, and roughly nine-tenths remains unexplored.

He concedes that low oil prices are having a greater impact on the North Sea and other regions of relatively high-cost production than, say, the shallow and benign waters of the Arabian Gulf. But when oil prices rebound—whenever that may be—tomorrow’s oil and gas lies in regions characterised by the “four d’s” – deep, distant, difficult and dangerous. Norwegian expertise will be in constant demand.

Bucking the trend
Coming from two separate fishing families, life partners Rita Christina Sævik and Espen Ervik, have developed a unique business model in sharp contrast to those of offshore vessel operators nearby in Fosnavåg on Norway’s west coast. The small tight-knit community in and around the coastal town was traditionally reliant on fishing but has become a centre for offshore innovation focused on the harsh environment of the North Sea.

Today, Aalesund, Fosnavåg and Ulsteinvik are key centres at the heart of the country’s west coast offshore cluster. The cluster includes OSV heavyweights such as Bourbon Offshore, Farstad, Havila, Olympic Shipping, Rem Offshore, Remøy Shipping and Solstad.

But the collapse in oil prices is having a dire impact on many companies’ operations. Although they believe the downturn is temporary, it means laying up boats and laying off seafarers. This is a major challenge in such an offshore-oriented community.

While more OSVs head for lay-up, however, Rita and Espen’s business is thriving. Their antecedents were fishing folk, and both had fishing in their blood. When Rita became MD of her father’s company, Kings Cross AS, in 2005, the pair put their heads together to develop a new business.

Eighteen months later, Ervik & Sævik was set up and work began on the design of an up-to-the-minute fishing vessel capable of working all year round, despite increasingly restrictive fishing quotas. Thus the Christina E took shape.

She is a fishing vessel with a unique selling point. When she’s not landing catches of blue whiting, capelin, herring and mackerel from some of the world’s roughest seas during about five months of the year, the dynamically positioned vessel is deployed on sophisticated offshore operations including seismic work, subsea installation and ROV surveys.

Designed by Vik & Sandvik, with input from SINTEF, equipment supplier MMC and Norwegian state energy firm Statoil, the Christina E was built in Denmark with support from Norway’s NOx Fund. The vessel incorporates latest fishing technologies which enable large volumes of fish to be caught and kept in optimal conditions on board to get the highest prices at auction.

October was the middle of the mackerel fishing season. “We are happy with the prices and the feedback from buyers is very positive regarding quality,” says Rita. But she explains that the ship’s economics would not stack up without working in the offshore sector for up to seven months each year.

Statoil is a repeat charterer, having taken the Christina E on hire in both 2012 and 2013, and for 19 days so far this year. For the rest of the offshore season this year, the vessel has been working for ORG Geophysical as she did exclusively in 2014.

So how do Fosnavåg’s OSV owners view the Ervik & Sævik operation?

“Fosnavåg is a little place and everybody knows each other,” Rita explains. “We have very good contact and a strong marine sector. Since we are a little company compared to the others, I don’t think they see me as a competitor.”

With a strong fishing heritage, it is no surprise that Rita and Espen are diligent about working conditions. Tommy Nielsen, for example, is one of two chefs head-hunted by Rita from fine restaurants. Nielsen himself is a chef and a sommelier.

“Usually, those who cook on board are called stewards,” says Rita. “We are proud to call them chefs.”

Fine food and good living conditions are popular with charterers’ personnel. “All the charterers are very satisfied with the ship and the crew. We have ROV people who have been on board five times and charterers like Statoil and ORG Geophysical take the ship several times,” Rita comments.

So will the Christina E have a sister?

“Our plan is to develop the company in either offshore (another ship) or in fishery (buy more quotas),” Rita explains. “This will depend on how the market develops. Do not say never about something!”

Change is in the air
In the current challenging offshore oil and gas sector, offshore support vessel owners are looking for every opportunity to keep their vessels working, even if it means converting them for other markets.

Ship Design FjellstrandA good example is the Platform Supply Vessel Vestland Cygnus, which is poised to find a new life in the offshore wind market. Delivered this past April by the Fjellstrand Shipyard in Norway, the Vestland Cygnus went to work on a time charter to Apache North Sea Ltd. for a firm 60 days, followed by 30 optional days for work in the U.K. sector of the North Sea.

Now, Norway’s Vestland Offshore says the Fjellstrand AS has been awarded a contract worth around NOK 150 million (about $18 million) to convert the Vestland Cygnus into a wind farm support vessel.

The PSV will be fitted with a 134-person accommodations module, a 100 tonne/40 m offshore crane and a new walkway system for boarding of wind turbines. Additionally 1.2 m sponsons will be added on either side of the vessel.

The converted vessel will have SPS (special purpose ship) class notation.

The design for the conversion is being supplied by Wärtsilä, which provided the original design for the vessel and also supplied a complete electric propulsion system based on the Wärtsilä Low Loss concept with four Wärtsilä 20 engines, as well as an integrated automation system.

“We have developed several concepts for wind farm service vessels, both for newbuilds and conversion projects, and our design is very suitable for this vessel’s new operational profile. We have also worked closely with the Fjellstrand yard for many years on numerous projects and the cooperation between our companies is excellent,” says Ove Wilhelmsen, Managing Director, Wärtsilä Ship Design, Norway.

“The new design will enable the transportation and accommodation of a high number of people. It is important that the vessel has very good stability, even in the most challenging sea and weather conditions, so that personnel can safely board rigs or wind mills. We are confident that the Wärtsilä design meets all our requirements,” says Hans Martin Gravdal, owner of Vestland Cygnus.

Following completion of the rebuild project by the shipyard, the Vestland Cygnus will transport service personnel to and from wind farms.

The conversion will be completed by June 2016.