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NTSB issues preliminary report on El Faro investigation

Both ships were built at Sun Shipbuilding & Dry Dock in Chester, PA. The El Faro was delivered in 1975 and the El Yunque in 1976

At a final on-scene briefing in Jacksoville, FL, on October 8,  NTSB Vice Chairman Bella Dinh-Zarr, stressed that the NTSB investigation is still at the fact gathering stage.

Yesterday, NTSB issued its preliminary report on its investigation.

The agency says the information in the report is preliminary and will be supplemented or corrected during the course of the investigation.

Following is the text of the preliminary report:

On Thursday, October 1, 2015, about 07:15 a.m. eastern daylight time, the US Coast Guard received distress alerts from the 737-foot-long roll-on/roll-off cargo ship El Faro. The US-flagged ship, owned by Sea Star Line, LLC, and operated by TOTE Services (TOTE), was 36 nautical miles northeast of Acklins and Crooked Islands, Bahamas, and close to the eye of Hurricane Joaquin. The ship was en route from Jacksonville, Florida, to San Juan, Puerto Rico, with a cargo of containers and vehicles. Just minutes before the distress alerts, the El Faro master had called TOTE’s designated person ashore and reported that the ship was experiencing some flooding. He said the crew had controlled the ingress of water but the ship was listing 15 degrees and had lost propulsion. The Coast Guard and TOTE were unable to reestablish communication with the ship.

Twenty-eight US crewmembers and five Polish workers were on board.

The Coast Guard deployed helicopters and search vessels to the ship’s last known position, but the search was hampered by hurricane-force conditions on scene. On Sunday, October 4, a damaged lifeboat, two damaged liferafts, and a deceased crewmember wearing an immersion suit were found. On Monday, October 5, a debris field and oil slick were found, and the Coast Guard determined that the El Faro was lost and declared the event a major marine casualty. The Coast Guard suspended the unsuccessful search for survivors at sundown on Wednesday, October 7.

On Tuesday, October 6, the National Transportation Safety Board launched a full team to Jacksonville to lead the federal investigation in cooperation with the Coast Guard, the American Bureau of Shipping (the El Faro’s classification society), and TOTE as parties. The US Navy Salvage and Diving division of the Naval Seas Systems Command was contracted to locate the sunken ship, assist in the sea floor documentation of the wreckage, and recover the voyage data recorder.

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Pacific Maritime: A vital maritime cluster

 “In the more than seven years that Shell has held leases in the Chukchi, it has only recently been allowed to complete a single well. What we have here is a case in which a company’s commercial efforts could not overcome a burdensome and often contradictory regulatory environment,” says Murkowski. “The Interior Department has made no effort to extend lease terms, as recommended by the National Petroleum Council. Instead, Interior placed significant limits on this season’s activities, which resulted in a drilling rig sitting idle, and is widely expected to issue additional regulations in the coming weeks that will make it even harder to drill. Add this all up, and it is clear that the federal regulatory environment—uncertain, ever-changing, and continuing to deteriorate—was a significant factor in Shell’s decision.”

Murkowski made the point that just because the U.S. has created a difficult environment for offshore drilling in the Arctic, it doesn’t mean other countries have. “Development in the Arctic is going to happen—if not here, then in Russia and Canada, and by non-Arctic nations,” says Murkowski. “I personally believe that America should lead the way. The Arctic is crucial to our entire nation’s future, and we can no longer rely solely on private companies to bring investments in science and infrastructure to the region. As the Arctic continues to open, we urgently need to accelerate our national security investments in icebreakers, ports, and other necessities.”

Some Congressional opponents of Arctic drilling applauded Shell’s move. Senator Jeff Merkley (D-OR) called offshore Arctic drilling “unacceptable” and irresponsible. Rep. Jared Huffman (D-CA) went so far as to introduce the Stop Arctic Ocean Drilling Act of 2015, which would prohibit new or renewed oil and gas leasing in the Arctic Ocean Planning Areas of the Outer Continental Shelf.

But this should probably be viewed more like a pause as opposed to a full stop. A more favorable regulatory environment for Arctic offshore drilling could develop if a Republican is in the White House in 2017 backed by a Republican-controlled Congress. Additionally, cheap oil and gas should also increase consumption and eventually lead to higher prices and make Arctic drilling more economically attractive.


 Shipyards, naval architects team on projects

Portland, OR, headquartered Vigor Industrial, the largest shipyard group in the Pacific Northwest with 12 facilities in Alaska, Washington, and Oregon, had bolstered its capabilities in anticipation of an increased workload. It added an 80,000-ton lifting capacity dry dock to enhance its ship repair and maintenance capabilities and merged with Kvichak Marine Industries, Seattle, WA, to add capabilities in new aluminum vessel construction. Vigor had supported Shell’s earlier efforts in Alaska, including the activation of the drilling barge Kulluk, and more recently repaired the damaged icebreaker Fennica.

Vigor is part of a vibrant Washington State maritime cluster that includes logistics and shipping, fishing and seafood, and shipbuilding and repair. According to a recent economic impact study, generated 148,000 direct and indirect jobs and directly creates $15.2 billion in gross business income and has a total impact of $30 billion on the state’s economy.

Back in March, Vigor “christened” its dry dock Vigourous with work on the cruise ship Norwegian Star and followed that up with repairs to the USNS John Glenn and USNS Montford Point. Now Vigor will turn its attention to completing the third Olympic Class 144-car ferry for Washington State Ferries and look forward to building the fourth in the series, which recently received $122 million in funding by the state legislature. There’s plenty of more coverage on the ferry market in this issue, including Seattle-based Elliott Bay Design Group’s support of ferry projects for the New York City Department of Transportation and Texas Department of Transportation.

Pacific Oct2nicholsSpecial launch system
Designed by Seattle-based naval architectural firm Guido Perla Associates, Inc., the144-car ferry is a joint construction effort between Vigor and neighboring Nichols Brothers Boat Builders, Whidbey Island, WA. Nichols Brothers Boat Builders has been contracted to build the superstructure for the first three Olympic Class ferries. Nichols Brothers Boat Builders has used a new track and dolly system developed by Engineered Heavy Service (EHS), Everett, WA, for transferring the ferry superstructures it on to a barge for transport to assembly with the hull at Vigor Fab in Seattle.

That same transfer system is pictured on this month’s cover, to launch the ATB tug Nancy Peterkin, the first of two 136 ft x 44 ft x 19 ft sister ATB tugs being built for Kirby Offshore Marine.

This past May, Gunderson Marine, Portland, OR, had launched the Kirby 185-01, a oil & chemical tank barge.

The Nancy Peterkin’s sister ATB tug, the Tina Pyne, is set for launch this December.

The EHS launch system moved the ATB from the shipyard to the launch ramp. General Construction provided two floating cranes to assist in the final lifting of the vessel, shuttling it to deeper water.

The vessel was towed to Everett, for lightship, stability testing and fuel transfer. Following this the tug will be towed to Nichols Brothers outfitting pier in Langley, WA, located across the Puget Sound from Everett, WA, for final outfitting, dock and sea trials before its final delivery.

Used for vessels greater than 1,000 tons, the new launch system significantly increases the displacement and draft of the vessels that Nichols Brothers can haul and launch in the future. Currently the shipbuilder is engineering to install ridged buoyancy tanks to the side of the launch frame, eliminating the need for the floating cranes in the future.

Nichols Brothers followed up the launch with the signing of a construction security agreement with Kirby Offshore Marine to build two new 120 ft x 35 ft x 19 ft-3 in tugs. Each tug will be powered by two Caterpillar 3516C, 2,447 bhp at 1,600 rev/min main engines with Reintjes reduction gears turning two NautiCAN fixed pitched propellers with fixed nozzles. Karl Senner, Inc., Kenner, LA, supplied the reduction gears for the vessel. These vessels will also have two C7.1 Caterpillar generators for electrical service. Selected deck machinery includes one TESD-34 Markey tow winch, one CEW-60 Markey electric capstan, and one Smith Berger Tow Pin.

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

Jensen Maritime Consultants, Seattle, the naval architectural and engineering arm of Crowley Maritime, will provide the ABS Class and functional design for the tugboats. These tugboats will carry an ABS loadline, compliant with USCG, as required at delivery.

Nichols Brothers is currently working on the second ATB Tug for Kirby Offshore Marine.

Nichols Brothers spokesperson Lacey Greene says the shipyard has just begun construction of the American Samoa 140 ft Multi-Purpose Cargo/Passenger Ferry, and next year will begin construction on the superstructure and final assembly of the WETA 400-passenger high speed catamarans.

“The vessel construction boom in the Pacific Northwest has impacted the economy in so many different ways,” says Greene. “Specific to our location our community is flourishing. Nichols Brothers is the largest private employer on Whidbey Island in Washington State and employs 300 men and women. We foresee the economic boom expanding even further; the tug market is strong in all aspects, from ATB tugs, tractor Tugs, to line tugs. We also see the passenger vessel industry sector thriving, and we predict additional passenger only high-speed ferries coming down the pipeline as well as leisure vessels.”


 Jensen Maritime is also providing construction management services for the Crowley product tankers under construction at Aker Philadelphia Shipyard. It’s also been busy working on developing LNG bunker barge concepts and recently received approval from ABS for a 452 ft-long ATB version.

Engineering consultant Art Anderson Associates, Bremerton, WA, has been increasing its staff and supporting the development of passenger-only ferry service in Puget Sound. Art Anderson’s Patrick R. Vasicek, PE, LEED AP, will be on hand at the Marine Log FERRIES 2015 Conference & Expo in Seattle to discuss, “An Exportable Life Cycle Assessment Tool for Determining Sustainable Visibility of Passenger-Only Ferry Routes and Systems.”

Ballast water treatment solution
Seattle-based naval architectural and engineering consultancy Glosten reports that Marine Systems Inc. (MSI) has delivered a pair of Ballast Treatment System Deck Modules, designed for tank barge and ship operations.

MSI turned to Glosten to develop the design in response to requests from vessel operators and the first of a kind modular ballast water treatment units combine expertise from Glosten, MSI and Alfa Laval, which provided PureBallast 3.1 treatment systems, Filtrex high efficiency filters, and expertise from hundreds of ballast water management system installations.

The resulting modules, built at the Foss Seattle Shipyard, complete with lighting, ventilation, and integrated controls, were shipped ready for “plug-and-play.”

Each Ballast Module packs a treatment capacity of 1,000 m3/hr within a 20-foot shipping container footprint and is ABS and U.S. Coast Guard approved for hazardous area installations.

Using the module reduces the technical demands on busy shipyards. Rather than juggling independent components and vendors, shipyards can instead focus on fabricating a few well-defined interfaces and foundation system. Each purchased module comes pre-approved by USCG and ABS, is fully tested prior to shipment, and includes integration support from MSI and Glosten engineers.

“The demands of the vessel operator drove this design,” says Kevin Reynolds, Principal at Glosten. “Doing this as a manufactured product ensures that we get it right, every time.”

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Get Green Financing

October 13, 2015 — Liberian Registry, EfficientShip Finance launch Eco-Upgrade Financing Initiative (Extended coverage from Marine Log’s October 2015 issue). To remain competitive with the new generation of Eco-ships, ship owners of

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

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

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

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

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

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

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

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

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

Asian owner opts for Optimar for BWTS retrofits

 

“This is a major contract, with a global leader in shipping,” says Optimarin CEO Tore Andersen. “Due to confidentiality clauses we can’t say who it is, but we can say that this firm, like many others we have reached frame agreements with, has chosen our system due to our unparalleled expertise in retrofitting and the reliable performance of our proven BWT solution.”

Optimarin says the contract was secured thanks to its retrofit expertise and market proven technology.

The first of the Optimarin units has already been installed, with two further systems following at the beginning of next year, and two more in spring 2016.

Goltens Green Technology, which entered into an agreement with Optimarin last year as a “preferred retrofit partner,” will manage all design and supervision from its Singapore office.

BWTS installation work will be performed at Chinese shipyards with Goltens using its proven retrofit process, employing precision 3D laser scanning and modeling as the basis for detailed design, prefabrication and streamlined system installation.

Goltens and Optimarin have joined forces on nearly 60 worldwide retrofit assignments so far and Mr. Andersen says this shared experience leads to fast-track, problem free installation, with most projects – where prefabrication and preparatory engineering work is completed – concluded within a week.

Optimarin, which fitted the world’s first commercial BWT system in 2000, has now fitted over 270 BWT systems worldwide, from an orderbook that has seen over 350 orders placed. The modular, reliable and easy to install and maintain nature of the system has made it, says Optimarin, the leading retrofit choice for vessels up to 60,000 dwt.

“Our solution combines simplicity with innovation, utilising a combination of automatic back flushing, self cleaning filters and UV irradiation to neutralise all organisms, bacteria and pathogens in ballast water,” Mr. Andersen comments. “We’ve been developing this technology for the past 21 years and that experience is a compelling proposition for owners and yards that, with the ratification of the IMO’s Ballast Water Management (BWM) convention on the horizon, need solutions that they can trust… and need them soon.

“This is particularly true in Asia,” he adds, “where we’re now working with shipowners of the stature of Pacific Radiance, Chellsea and EMAS, while winning newbuild contracts from yards such as ASL Shipyard, Jurong SY, Keppel Singmarine, China Merchant Heavy Industries and Oshima Shipbuilding.”The ten vessels, each requiring 1,000 cu.m/h system capacities, are managed from Hong Kong.

Optimarin recently completed work on extensive in-house testing facilities at its headquarters in Stavanger and its BWTS is currently undergoing a full program of USCG approval testing. It already has IMO approval, USCG AMS acceptance, and certification through DNV GL, BV, RMRS and CCS.

Marathon buys Aker Philly interest in four newbuilds

 

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

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

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

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

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

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

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

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TOTE unifies maritime companies’ branding

SEPTEMBER 17, 2015 — Jones Act operator TOTE today announced that its  operating companies — Sea Star Line, which serves Puerto Rico and the Caribbean, and Totem Ocean Trailer Express, serving the

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Diana gets $148 million loan from Royal Bank of Scotland

RBS is slowly closing up operations here,” Reuters quoted one source at RBS as saying. Be all that as it may, today Athens, Greece, headquartered Diana Containerships Inc. (NASDAQ:DCIX) said that on September 10 it\ signed a six year term loan facility with the Royal Bank of Scotland plc for up to $148 million, which will bear interest at the rate of 2.75% over LIBOR.

Yesterday, Diana completed a drawdown of $122.5 million, secured by the vessels m/v Sagitta, m/v Centaurus, m/v Pucon, m/v YM March, m/v Great, m/v YM Los Angeles, m/v YM New Jersey and m/v Rotterdam. The drawdown amount was used to voluntarily prepay in full the balance of $92.7 million of the existing revolving credit facility with RBS and to partially finance the acquisition cost of the m/v Rotterdam.

Separately, the company also announced that yesterday, through a separate wholly-owned subsidiary, it has agreed to extend the present time charter contract with Maersk Line A/S for one of its Panamax container vessels, the m/v Centaurus, for a period of minimum eleven months to maximum eighteen months. The new gross charter rate will be US$10,875 per day, minus a 5% commission paid to third parties. The new charter period will commence on October 2, 2015.

Centaurus is a 3,426 TEU container vessel built in 2010.

This employment is anticipated to generate approximately $3.59 million of gross revenue for the minimum scheduled period of the charter extension.Diana containerships Inc.’s fleet currently consists of 14 container vessels (5 Post-Panamax and 9 Panamax). It also expects to take delivery of one Post-Panamax container vessel by the end of November 2015.