It is the second fatal blaze at the shipyard in just a few months and there appear to be close parallels in the two incidents.
Two people died in an August 24 fire onboard an LPG tanker under construction at the yard and, in that fire too, another seven were injured.
Today’s fire, like the earlier one, was reportedly aboard a gas carrier and in both cases sparks from a welder’s torch were initially identified as the likely cause.
Now standalone business segments, they were previously embedded in other company business units.
Leading the new business units are industry veterans Mike Golonka, vice president, government services, and Wendy MacDonald, vice president, global ship management.
The Government Services provides bundled vessel management solutions for the United States Maritime Administration, Military Sealift Command, and other agencies; custodial services for vessels seized by U.S. Government agencies; naval architecture and marine engineering services; project management and salvage and dive operations; and many other services. The team combines the technical and professional capabilities of the company’s owned and managed fleets, under the direction of a team of tenured professionals, many of whom are mariners, to bring together best-in-class operations, engineering and contracting personnel.
The Global Ship Management group – which includes international partnership Crowley Accord and Seattle-based subsidiary Maritime Management Services, Inc. (MMS) – provides technical services and crew management as well as a broad range of back-office services to a variety of conventional vessel types such as tankers, container and general cargo, and Roll-on/Roll-off (Ro/Ro) vessels; along with specialized vessels such as deep-water pipe-layers, geotechnical and seismic research vessels; and offshore construction support vessels. With offices in the U.S., Mumbai, Goa, Hong Kong and Amsterdam, Crowley’s global ship management group, including Crowley Accord, manages over 60 vessels in the U.S. domestic and international markets. The company has developed longstanding working relationships with vendors, suppliers and major foreign and domestic labor organizations, allowing them to provide professional management services, with an emphasis on Crowley’s No. 1 core value, safety. The policies and procedures reflected in every aspect of Crowley’s management system are based on recognized ISO and ISM standards to ensure regulatory compliance.
“Establishing these two new business groups will help Crowley focus its services for its distinct customer bases,” said Crowley’s Todd Busch, senior vice president and general manager, technical services. “Crowley offers both industries extensive experience, a reputation for working safely and honestly, and relationships that matter. Customers can expect all of that to continue, with the added benefit of more targeted and improved customer service.”
Leading the Government Services group is Mike Golonka, who previously served as vice president, ship management. He will continue reporting to Mr. Busch, and remain based in the company’s headquarters in Jacksonville, FL. He and his team will develop and synchronize government services offerings across the Crowley portfolio and will further align the group with government contracting requirements, including time keeping, cost accounting and compliance with Federal Acquisition Requirement (FAR) clauses.
“Mike did a great job building the ship management business and establishing Crowley as a serious competitor for government contracts,” said Mr. Busch. “He has shown the commitment to the business and represents the company as a respected professional. This is represented in the recent award of the TAGOS / TAGM and ROCON contracts from Military Sealift Command, both very important contracts from the U.S. Government.”
Mr. Golonka, who graduated from Calhoon MEBA Engineering School and holds an unlimited chief engineer license, joined Crowley in 1987 and has served as senior port engineer, manager of ship operations, director of engineering and director of contract operations prior to his appointment to general manager in 2009. In that role, he coordinated all sales, marketing and operations activities for Crowley’s ship management group and its growing number of customers and vessels served. In 2011, he was awarded the company’s highest honor, the Thomas Crowley trophy, given to employees who have aligned themselves closely with Crowley’s values and displayed outstanding performance along with dedication, leadership, initiative and productivity. .
Ms. MacDonald, now leading the Global Ship Management group, is the former vice president of procurement. She remains based in Jacksonville and also reports to Mr. Busch. She is responsible for all sales, marketing, engineering and operations activities for Crowley’s commercial ship management group and its growing number of customers and vessels. She will also oversee the activities for Marine Management Services and Crowley-Accord Ship Management, based in India.
“Wendy’s operational experience, organizational skills and management will be a great benefit to the ship management group,” Mr. Busch said. “She has done an excellent job building teams, and partnering with our vendors. Wendy has supported the business for several years, so she understands much of the business needs and the customer expectations. In her 20-plus years with the company, she has shown a drive and passion for the maritime industry, which has led to her successes.”
Ms.MacDonald, who has a California Maritime Academy bachelor’s degree in business administration with a focus on marine transportation and intermodalism, joined Crowley in 1992 as a management trainee and has held various positions of increasing responsibility within the company’s container shipping organization, including manager of freight services for the Puerto Rico/Caribbean services group, manager of pricing for the Latin America services group, director of inland operations and most recently vice president of procurement.
The vessel is one of two sister vessels being built under a two vessel contract signed with Bouchard Transportation, Inc. 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, N.Y.
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,” said 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. We are pleased and proud to celebrate this important milestone in the life of any vessel, and we look forward to having these superb tugboats join the Bouchard Transportation fleet,” said Jack Prendergast, CEO, VT Halter Marine
ABB’s delivery will also include generators, main switchboards, a remote control system and distribution transformers.
One of the ships is for Carnival Corporation’s Holland America Line brand and will 99,500 gt, 2,650 passenger sister ship to Koningsdam, currently under construction at the Fincantieri shipyard. It will be delivered in fourth quarter 2018.The other is Carnival Cruise Line’s 3,954-passenger a sister ship to Carnival Vista. It is set for delivery for in first quarter 2018 and will be the line’s twenty-sixth ship
“We are pleased to continue our collaboration with Fincantieri, which is known as one of the world’s leading cruise ship builders. Longstanding customer relationships with leading shipyards such as Fincantieri are testament to our continued dedication to quality and customer value,” says Heikki Soljama, managing director for ABB’s Marine and Ports business.
The collaboration between ABB and Fincantieri spans over 25 years: ABB’s first electric propulsion delivery to Fincantieri was for a Carnival cruise ship in 1990. Since then, 14 ships built by Fincantieri have been equipped with ABB’s Azipod propulsion. Twenty-four of Carnival Corporation’s ships are equipped with Azipod propulsion.
Additionally, Multraship has also agreed a deal with Damen for a new state-of-the-art ASD 3212 tug as part of its planned fleet expansion
Construction of the CRTs will begin immediately. The hulls of the vessels will be built by German shipbuilder Theodor Buschmann GmbH in Hamburg, with final outfitting carried out by Damen Maaskant Shipyards in Stellendam, the Netherlands. Delivery of the Bureau Veritas-classed vessels is scheduled for first-quarter 2017.
The Carrousel towing system consists of a towing point on a straightforward steel ring, freely rotating around the superstructure of the tug. According to Novatug, a towing load simply cannot capsize a Carrousel tug and the tug’s own hull profile can safely be used for generating braking and/or steering forces, based on the lateral resistance of the hull through the water and given the kinetic energy present in the moving tow and/or the current.
In the CRT, this towing system is combined with the advantages of the RAVE Tug (Robert Allan Ltd. – Voith Escort) jointly developed by naval architectural consultancy Robert Allan Ltd. and Voith Turbo Marine. The unique characteristic of the concept is the longitudinal alignment of two Voith drives, delivering very precise and improved force generation characteristics.
The CRTs have an overall length of 32 m, and a bollard pull of minimum 70 tonnes. Propulsion is via two Voith thruster units and two ABC main engines of 2,650 kW operating at 1,000 rpm. Free running speed is over 14 knots at 5,300 kW.
The CRT’s combination of low operational costs, speed of action and enhanced control over the tow can provide major advantages over conventional tugs, for example by widening or even removing tidal and/or weather windows for certain ports.
Novatug will offer the Carrousel Rave tugs on the basis of long-term bareboat charters, basically a financial or operational lease construction, an arrangement proven in other capital-intensive industries such as aviation. Its customer for the first two units is its parent, Multraship.
Leendert Muller, managing director of Multraship, says, “Safety is always our overriding objective, and that it is why we have opted wholeheartedly to produce the Novatug CRT. This new tug design, for the first time, eliminates what has always been the most significant threat to safety in towing – the risk of capsizing under a tow load. The benefits in terms of efficiency and flexibility, meanwhile, are also enormous.”
Carrousel Rave Tug
ASD TUG
The new state-of-the-art ASD 3212 tug acquired by Multraship — the Dutch-flag, LR-registered Multratug 31 — was built at Damen Song Cam, Vietnam. A sister vessel to Multratugs 19, 29 and 30, it will operate mainly in the Western Scheldt area. It has a maximum bollard pull of 83.2 tonnes and a maximum speed of 15 knots.
The 453 gt vessel is powered by two Caterpillar 3516C engines and has two Rolls Royce Azimuth thrusters and a 2,800 mm-diameter controllable pitch propeller.The vessel’s deck layout features a hydraulically driven escort double drum winch forward and single drum aft, and a 25 mt deck crane. There are two one-man cabins, four two-man cabins, a mess room and galley.
Here’s how the CBO see things.
CBO says it estimates that the cost of the Navy’s 2016 shipbuilding plan—an average of about $20 billion per year (adjusted for inflation) over 30 years—would be $4 billion higher than the funding that the Navy has received in recent decades.
The Department of Defense (DoD) submitted the Navy’s 2016 shipbuilding plan for fiscal years 2016 to 2045 in April 2015. The $20 billion total annual cost of carrying out the 2016 plan over the next 30 years, CBO estimates—would be one-third more than the amount the Navy has received in Congressional appropriations for shipbuilding in recent decades.
The Navy’s 2016 shipbuilding plan, says CBO, is similar to its 2015 plan with respect to the goal for the total number of battle force ships, the number and types of ships the Navy would purchase, and the funding proposed to implement its plans.
The Navy Plans to Expand the Fleet to 308 Battle Force Ships
The Navy’s 2016 shipbuilding plan states that the service’s goal (in military parlance, its requirement) is to have 308 battle force ships, consisting of aircraft carriers, submarines, surface combatants, amphibious ships, combat logistics ships, and some support ships. The 2016 shipbuilding plan falls short of the goals for some types of ships in some years, although generally the shortfalls are smaller than they have been in previous years’ plans. The fleet today numbers 273 ships.Under the 2016 plan, the Navy would buy a total of 264 ships over the 2016–2045 period: 218 combat ships and 46 combat logistics and support ships.
Given the rate at which the Navy plans to retire ships from the fleet, says CBO the 2016 plan would not meet the inventory goal of 308 ships until 2022, but it would allow the Navy to maintain its inventory at least at that level through 2031. After that, in most years through 2045, the fleet would fall below 308 ships.
The size of the Navy does not depend on ship construction alone; the length of time that particular ships remain in the fleet affects the force structure as well. The CBO notes that the Navy often shows flexibility in its approach to retiring ships: A ship may be retired before the end of its service life to save money or may be kept beyond that span to maintain a desired force level. Generally, the Navy’s estimates of expected service life align with historical experience.
However, the Navy currently assumes a 35- or 40-year service life for its large surface combatants; in the past, few of those ships were in the fleet for longer than 30 years.
CBO Estimates That Spending for New Ships in the Navy’s Plan Would Average $18.4 Billion per Year
The Navy estimates that buying the new ships specified in the 2016 plan would cost $494 billion (in 2015 dollars) over 30 years—or an average of $16.5 billion per year—slightly less than the costs of the 2015 plan. Using its own models and assumptions, CBO estimates that the cost of new-ship construction in the Navy’s 2016 plan would total $552 billion over 30 years, or an average of $18.4 billion per year.
CBO’s estimates are higher because the Navy and CBO use different estimating methods and assumptions regarding future ships’ design and capabilities and treat growth in the costs of labor and materials for building ships differently.
CBO’s constant-dollar estimate is 8 percent higher than the Navy’s for the first 10 years of the plan, 12 percent higher for the following decade, and 17 percent higher for the final 10 years (see figure).
The difference widens over time in part because the Navy’s method of developing constant-dollar estimates (which differs from CBO’s method) does not account for the faster growth in the costs of labor and materials in the shipbuilding industry than in the economy as a whole and thus does not reflect the anticipated increase in inflation-adjusted costs of future purchases of ships with today’s capabilities.
Average Annual Costs of New-Ship Construction Under the Navy’s 2016 Plan
The Navy’s shipbuilding plan reports only the costs of new-ship construction.Other activities typically funded from the Navy’s budget accounts for ship construction—such as refueling nuclear-powered aircraft carriers or outfitting new ships with various small pieces of equipment after the ships are built and delivered—would add $1.7 billion to the Navy’s average annual shipbuilding costs under the 2016 plan, by CBO’s estimate. (Between 2010 and 2015, the cost of those other activities averaged $2.1 billion per year.) Including those extra costs would increase the average annual cost of the Navy’s 2016 plan to $20.2 billion per year, CBO estimates.
CBO’s estimate of the total cost of the Navy’s plan is 10 percent above the Navy’s estimate.
The Navy’s Shipbuilding Plan for the Next 30 Years Would Cost Almost One-Third More Than It Has Spent Over the Past 30 Years
If the Navy received the same amount of funding (in constant dollars) for new-ship construction in each of the next 30 years that it has received, on average, over the past three decades, the service would not be able to afford its 2016 plan.
CBO’s estimate of the $18.4 billion per year for new-ship construction in the Navy’s 2016 shipbuilding plan is 32 percent above the historical average annual funding of $13.9 billion (in 2015 dollars). And CBO’s estimate of $20.2 billion per year for the full cost of the plan is 28 percent higher than the $15.8 billion the Navy has spent, on average, annually over the past 30 years for all items in its shipbuilding accounts. If funding were to continue at the average for the past 30 years, under one possible approach to ship construction, the Navy would be able to build about 70 fewer battle force ships than it currently plans, CBO estimates.
Download the CBO report HERE
Pacific Drilling S.A. (NYSE:PACD) reports that it has exercised its right to rescind the construction contract for ultra-deepwater drillship Pacific Zonda “due to the failure by Samsung Heavy Industries (SHI) to timely deliver a vessel that substantially meets the criteria required for completion of the vessel in accordance with the construction contract and its specifications.”
Pacific Drilling says it made advance payments totaling approximately $181.1 million under the shipbuilding contract, and will be seeking a refund of the installment payments.
The company inked a contract for the drillship with Samsung Heavy on January 25, 2013 that provided for a delivery date of March 31, 2015.
The cancelation comes after the October 27 news that Fred Olsen Energy had canceled an semisubmersible drilling rig order at Hyundai Heavy Industries and the October 26 announcement that Transocean, Shell ans Daewoo Shipbuilding & Marine Engineering Co. (DSME) had agreed to push back the operating and delivery contracts of two newbuild ultra-deepwater drillships – the Deepwater Pontus and the Deepwater Poseidon – by 12 months each.
Consolidated revenues for the 2015 third quarter were $532.6 million compared with $680.7 million for the 2014 third quarter.
President and CEO David Grzebinski said the results were “largely in line with our expectations.”
“Demand across the majority of the products we carry in the inland marine transportation market remained stable with utilization in the 90% to 95% range,” he said. “Market pressure from inland tank barges shifting out of crude oil service led to continued modest pressure on contract renewal pricing. Spot prices were generally around contract price levels throughout the quarter. In the coastal marine transportation market, pricing for term contract renewals increased modestly. Our results also reflected the anticipated earnings impact from heavy coastal equipment shipyard activity.”
Mr. Grzebinski called market conditions in Kirby’s land-based diesel engine services business, as continuing to be challenging due to the decline in the price of crude oil and, consequently, the low utilization levels of the oilfield service industry pressure pumping fleet.
In the marine diesel engine services and power generation markets, results reflect continuing soft activity in the Gulf of Mexico oilfield service market, but otherwise stable levels of demand.
MARINE TRANSPORTATION
Marine transportation revenues for the 2015 third quarter were $418.3 million compared with $448.7 million for the 2014 third quarter. Operating income for the 2015 third quarter was $93.7 million compared with $112.1 million for the 2014 third quarter.
Kirby’s inland marine transportation business maintained tank barge utilization in the 90% to 95% range.
Demand for inland barge transportation of petrochemicals, refined products and black oil products, excluding crude oil, was consistent with the second quarter. Demand for barges moving crude oil and condensate during the quarter was lower both sequentially and year over year.
Operating conditions were challenging due to scheduled lock closures along the Gulf Intracoastal Waterway and high water conditions during the first part of the third quarter. Delays related to lock outages contributed to a 40% increase in delay days relative to the prior year quarter and a decline in ton miles. In addition to increased delay days, fuel prices, which were down 38% year-over-year, contributed to the year over year decline in revenue.
Demand in the coastal marine transportation market for the transportation of refined petroleum products, black oil, and petrochemicals was relatively stable, although demand for equipment for crude oil transportation declined sequentially and year over year.
Coastal fleet utilization remained in the 90% to 95% range and operating conditions were seasonally normal during the third quarter. A continued heavy shipyard schedule impacted operating results.
The marine transportation segment’s 2015 third quarter operating margin was 22.4% compared with 25.0% for the third quarter of 2014 as a result of higher labor costs, including pension, lower inland marine transportation rates, increased shipyard activity and higher depreciation expense in the coastal business, and the impact of fuel price escalators on inland marine affreightment contracts.
CASH FLOW
Kirby continued to generate strong cash flow during the 2015 first nine months with EBITDA of $437.5 million compared with $484.6 million for the 2014 first nine months. Operating cash flow was used in part to fund capital expenditures of $265.2 million for the 2015 first nine months, including $66.6 million for new inland tank barge and towboat construction, $75.2 million for progress payments on the construction of four new coastal articulated tank barge and tugboat units (“ATBs”), $3.4 million for progress payments on the construction of two 4900 horsepower coastal tugboats, $1.6 million for progress payments on the construction of a new coastal petrochemical barge and $118.4 million primarily for upgrades to existing inland and coastal fleets.
Additionally, Kirby spent $41.3 million to acquire six pressure barges in the first quarter and a total of $202.2 million on share repurchases in the first nine months of 2015.
Total debt as of September 30, 2015 was $810.4 million versus $716.7 million on December 31, 2014, and Kirby’s debt-to-capitalization ratio was 26.4%.
OUTLOOK
Mr. Grzebinski said, “Our earnings guidance range for the 2015 fourth quarter is $0.93 to $1.03 per share and we are revising our full year 2015 guidance range to $4.10 to $4.20 per share [down from the prior guidance of $4.10 to $4.35 per share]. In our inland marine transportation market, our fourth quarter outlook reflects continued modest pricing pressure. Utilization in Kirby’s inland fleet, however, is projected to remain in the 90% to 95% range. In our coastal marine transportation market, although we’ve seen some industry spot availability related to the uncertainty around crude supplies, we expect supply and demand to remain consistent with the first nine months of the year and Kirby’s fleet utilization to remain above 90%. Our guidance assumes normal fourth quarter operating conditions for both the inland and coastal marine transportation markets, including the winter cessation of most operations in Alaska.”
Mr. Grzebinski said demand is expected to remain weak in the land-based diesel engine services market and the offshore oil services portion of the marine diesel engine services market, but is expected to remain relatively stable in the marine and power generation markets.
CAPITAL SPENDING
Kirby expects 2015 capital spending to be in the $320 to $330 million range, an increase of $5 million from earlier capital spending guidance. Contributing to this is a shipbuilding contract entered into the quarter for a 35,000 barrel coastal petrochemical tank barge. The vessel will enter service under contract with an existing customer on delivery, expected in early 2017.
The capital spending guidance range includes approximately $70 million for the construction of 38 inland tank barges and three inland towboats, all expected to be delivered in 2015.The capital spending guidance range also includes approximately $100 million in progress payments on new coastal equipment, including two 185,000 barrel coastal ATBs, two 155,000 barrel coastal ATBs, two 4900 horsepower coastal tugboats and the new coastal petrochemical tank barge.The balance of $150 to $160 million is primarily for capital upgrades and improvements to existing inland and coastal marine equipment and facilities, as well as diesel engine services facilities.
OCTOBER 28, 2015 – Fincantieri has selected Intergraph Smart Yard to improve the execution of international large-scale cruise, military and merchant shipbuilding projects. Smart Yard is Intergraph’s flagship solution for a single,
The joint venture group comprises Braemar Engineering, Honghua Group EnTX and Jamestown Marine Metals.
The FSP system – a new flat-panel, semi-membrane, prismatic-shaped LNG tank-containment system Type B – uses new flat plate technology to overcome the issues associated with partial filling and sloshing. The system employs the ‘riction stir welding technique, used in the aerospace industry, for optimum integral strength.
FSP can be used in a wide range of applications: Floating Production and Storage (FPSO); Floating Storage Regasification Units (FSRU), LNG transportation and LNG marine fuel tanks. It can also be used as offshore storage.
The new Type B containment system has been designed to be constructed, outfitted, insulated and tested off hull and lifted complete onto the platform. The use of on shore construction facilities ensures the highest standards of quality care and repeatability.
In a joint statement, Chairman Zhang Mi, Chairman and President of Honghua Group, and Geoff Green, Managing Director of Braemar Engineering, said that “substantial progress has been made to date, and this is expected to continue going forward”.
They added that GDA and Tank Specific Approval are moving forward in parallel, and that approval, construction and test-completion of an initial tank is projected for March 2016.
