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During the pre-SMM 2016 Press Conference on June 2, maritime economist Martin Stopford, Non-Executive President of Clarksons Research Services, said this year shipyards worldwide have experienced the lowest newbuilding orders since the 1980s. Stopford said orders of 14.2 million deadweight tons (dwt) were placed as of the end of April 2016. On an annualized basis that equates to 42 million dwt—the lowest annual rate since 1998 when orders were placed for 37 million dwt of ships. In stark contrast, the average number of ship orders since 2009 has been 94 million dwt.
Shipyards worldwide are expected to deliver about 103 million dwt of ships this year and 88.9 million dwt in 2017.
Stopford provided a perspective on the current weak shipping markets showing the average earnings of tankers, bulkers, containerships, and gas carriers have fallen to levels not see since 2003, according to the Clarksea Index. The average earnings per day in late May fell to $8,900 per day. In 2009, average earnings per day were at $22,000 per day.
There is clearly an overcapacity of ships. He pointed to declining trend in sea trade growth, which is projected at 2 percent this year.
SMART SHIPPING’s THE ANSWER
According to Stopford, one strategy to cope with these difficulties is Smart Shipping. The rapidly evolving information and communications technology (ICT) has enormous potential to improve fleet operations and transport productivity. It will play a crucial part in the survival strategy for shipping, said Stopford.
Stopford outlined the Smart Shipping Toolbox, which includes:
SHIPYARD CAPACITY SHRINKS
Shipyard capacity has been reduced by 20 percent with the closure of 581 “uneconomic” shipyards, but ordering levels for new ships are well below world capacity, says Stopford, so shipyards and marine equipment manufacturers are going to face a challenging year. In 2009, there were 992 active shipyards. Now, there are 423 active yards.
Based on the percentage of ship launches in the year by gross tonnage (GT), Chinese shipyards had 37 percent market share, Korea 35 percent, and Japan, 19 percent.
Korean shipbuilders have been particularly hit by the ordering slump. As we went to press, STX Offshore & Shipbuilding Co., filed for receivership. The shipbuilder could be liquidated or see its debt restructured, depending on what the court decides. STX Offshore & Shipbuilding has been under the control of creditors since 2013. The shipbuilder had losses in excess of 300 billion won last year, and 1.5 trillon won in 2014.
The top three shipbuilders in Korea, Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering, and Samsung Heavy Industries, have all been hurt by the drop in oil prices as oil majors have cut exploration and production expenditures. All three had repositioned themselves towards building higher valued vessels geared towards energy production after the fiscal crisis of 2008 amid competition from much lower cost Chinese shipyard rivals.
There is expected to be consolidation among Korea’s smaller shipyards.
As of mid-March, the Top Five Shipbuilder by Orderbook Value were: HHI, with $24.42 billion, Daewoo, $19.9 billion, China State Shipbuilding, $15.07 billion, Samsung, $10.47 billion, and Japan’s Imabari, with $9.89 billion.
Cruise ship order book swells to $40 billion
Cruise travel continues to grow and expand at a record pace. This year, 24 million passengers are expected to take a cruise vacation this year, up from 23 million in 2015, according to the Cruise Lines International Association (CLIA).
Cruise ship owners are deploying more ships to Australia, China, and Asia to tap into the pent up demand for cruise travel and ordering new ships to accommodate the growth. As of last year, there were 471 cruise ships in service, with 27 new ocean, river and specialty ships scheduled to be deployed this year.
Just last month, Royal Caribbean Cruises Ltd. signed a Memorandum of Understanding (MOU) with French shipbuilder STX France to build a fifth Oasis Class ship for delivery in the spring of 2021 for its Royal Caribbean brand, and two additional Edge-class ships, scheduled for delivery in the fall of each of 2021 and 2022, for its Celebrity Cruises brand.
STX France is completing the design phase of the first prototype 2,900-passenger Edge Class ship and is set to start production this fall for a delivery in fall 2018.
If confirmed, the new construction contracts with STX France would swell the global order book to 59 oceangoing cruise ships, with a total of 176,755 passenger berths. The value of the order book is in excess of $40 billion.
STX France says that, when finalized, the three orders will secure the shipyard’s order book through 2023. Overall, STX would have 12 cruise ships on order, tied with Germany’s Meyer Werft for second most to Italy’s Fincantieri, with 22 cruise ships on order. Meyer Werft’s Finnish yard, Meyer Werft Turku, has six ships on order, with the remainder of the order book divvied up between Germany’s Lloyd Werft, Croatia’s Uljanik and Brodosplit yards, and Japan’s Mitsubishi Heavy Industries.
Not included in those figures is what would be the first cruise ship built in Russia in decades. Last month, Aleksey Rakhmanov, President of Russia’s United Shipbuilding Corporation (USC), says the company was to start construction this year of a cruise ship for an unspecified customer. No further details were available.
The market for river cruise ships is just as strong, with 40 vessels on order. In the U.S., American Cruise Line, Guilford, CT, expects to take delivery of the 170-passenger coastal cruise ship American Constellation in April 2017. The ship is currently under construction at its sister company, Chesapeake Shipbuilding, Salisbury, MD.
Nichols Brothers Boat Builders, Whidbey Island, WA, won a $94.8 million contract to build two 100-passenger, 238 ft coastal cruise ships for Lindblad Expeditions Holdings, Inc. Set for delivery in the second quarter of 2017 and 2018, respectively, the ships will operate between Baja, Costa Rica, and Panama during the winter months and Alaska, Oregon, Washington and Canada in the summer months.
Shipping is a crucial contributor to the economies of the Nordic countries—Denmark, Finland, Norway, and Sweden—and the industry continues to be a magnet to attract bright young talent. The region’s ship operators maintain an edge over competitors from lower cost areas by investing in newer tonnage that can be operated efficiently and they are ready to take advantage of every benefit than can be reaped from advances in technology. And, in today’s regulatory climate, it doesn’t hurt that the ecologically conscious Nordic countries are an incubator for green technology.
If we take a look at the numbers of ships controlled from Scandinavia countries published by UNCTAD, the statistics can be misleading. While Finland doesn’t make UNCTAD’s cut of the top 35 shipping nations, the Finnish Shipowners Association says its membership consists of 21 companies operating 101 ships.
What these numbers don’t show is the number of ships chartered in by the region’s shipowners or their strengths in some key sectors. The obvious example of this is Maersk Group. It is the world’s second largest shipowner in terms of its owned fleet (720 vessels totaling 25.5 million gt) but the largest in terms of number of ships controlled (767 vessels totaling 31.7 million gt).
As of the third quarter of last year, the average age of ships in the Norwegian fleet of foreign-going vessels (under Norwegian and other flags) was 10.9 years. Indicating how Norwegians keep the fleet fresh: In the first nine month of last year, 57 newbuildings totaling 2.09 million dwt were added along with 38 pre-owned vessels totaling 818,000 dwt. Equally significantly, disposals and losses totaled 126 ships and 2,.29 million dwt.
The Danish fleet is also young, in gross tonnage terms, 31.9% is under five years old, 28.7% is 5-9 years old, 23% is 10-14 years old, 12.2% is 15-19 years old and just 4.1% is 20 years old or more.
Keeping fleets young means ordering ships. Breaking down 2015 world newbuilding orders by owner’s country of domicile, we find Norway coming in at number 8, ordering 188 vessels totaling 8.7 million dwt and Denmark in the 11th place placing orders for 131 ships totaling 7.2 million tons.
PARTNERING WITH SUPPLIERS
Wherever ships are built—and whoever is buying them—a large percentage of their value is likely to be equipment produced by companies based in the Nordic region, who benefit from a willingness by the region’s shipowners to partner in trialing of equipment aboard ship in real life, working conditions.
Historically, this loop used to also include shipyards, but with the shift of shipbuilding to Asia, this is less the case today. Last year’s Danish Maritime Days included a workshop on “Lack of yard presence in innovation supply chain — How can we as an industry enable improved technology uptake through earlier involvement with the yards?”
Nobody in the room had an instant answer. But there were anecdotal references to the dangers of sharing information too readily with Asian shipyards that see nothing wrong with putting one shipowner’s bright ideas into competitors’ ships.
What remains of the region’s shipbuilding industry is mostly focused on smaller, specialized tonnage, but it retains much of the infrastructure of earlier days including, the intellectual property found in classification societies, design houses, research institutions, model basins and similar facilities—creating ships on the drawing board, the computer and in models that will eventually come to life in full-scale steel in Asia.
Meantime, of course, some yards remain very much in business and winning orders.
DENMARK: MOVING BEYOND
With shipbuilding migrating to lower cost countries, the shipyard capacity in the region has shrunk considerably. For example, there are only a handful of yards in Denmark.
One of those is Fayard A/S in Munkebo. Located on the Odense fjord, it is a large, primarily ship repair, facility whose slogan is “Speed is all—Quality is everything.” It has four large graving docks, all served by high capacity cranes, and a 700 m working berth.
Dry Dock 3, measuring 315/415 m in length and 90 m in width, is the largest dock and is capable of undertaking simultaneous construction work on a variety of ships. Dry docks 1 and 2, may be smaller in size but are 280/303 m lengths and 44/45 m widths and are used for repair and maintenance work on ships. Dry docks 4, measuring 145 m x 30 m x 8 m, is primarily used for smaller vessels. Docks 1, 2 and 4 have modern dock gates and pumping systems that allow the yard to start working on a vessel with 3-4 hours of arrival. The dock gates open or close in just four minutes.
Karstensens Skibsvaerft A/S in Skagen currently has a labor force of around 250, and can build vessels up to 135 m in length. While most are fishing vessels, the yard has been building three Knud Rasmussen-class of offshore patrol vessels, the third of which is near completion using a hull built at Poland’s CRIST shipyard last April.
Orskov Yard A/S in Frederikshavn converts and repairs all types of vessels in facilities that include two graving docks two floating dry docks with a capacity of up to 215 m x 34 m. The yard employs 230 people and cooperates closely with a wide range of subcontractors to provide all-round, one-stop solutions.
Søby Værft AS in Søby Ærø offers ship repair services using three graving docks with capacities up to 115 m x 24 m x 6 m. It also undertakes newbuildings and one project it is getting set for is the EU-supported E-ferry project, aimed at bringing into service a 4.2 mWh battery capacity electrically powered, ICE class B, single ended, drive-through RO/RO passenger ferry with one continuous main deck for trailers and cars. It will use state-of-the-art electric only systems with an automated high power charging system.
The initial aim is to demonstrate an energy efficient and emission free ferry for passengers and vehicles in an operational viable setup on the Soeby-Fynshav and Soeby-Faaborg connections in the Danish part of the Baltic Sea. The longer term aim is to see 10 more E-ferries in operation in Europe and worldwide every year, reaching a total of 100 or more by 2030— saving 100,000-300,000 tonnes of CO2 annually.
SWEDEN: WHERE DID THE YARDS GO?
The Nordic country with the fewest surviving shipyards is Sweden, where the once gigantic industry has shrunk to the point that it apparently no longer supports a national shipbuilding association—so statistics on it are hard to come by.
Newbuilding is pretty much confined to Saab Kockums naval shipbuilding activities and a handful of small yards involved in smaller tonnage.
Two large repair facilities are still operational. Oresund Dry Docks, in Landskrona on the Øresund Strait beween Denmark and Sweden has facilities that include a 195 m x 35 m graving dock and a 165 m x 28 m floating dock. Damen Oskarshamnsvarvet, on the west coast, has facilities that include an 80 m x 15 m floating dock. Activities at Damen Shiprepair Götaverken in Gothenburg ended in 2014, due to “the depressed situation of the Scandinavian shipping market, the increased number of Baltic repair docks and the appreciation of the Swedish Krona (SEK).
Though Gothenburg no longer has a shipyard, it still has one of Europe’s best known towing tanks, operated by SSPA Sweden AB.
SSPA has the capability to perform most kinds of model testing in its facilities: the towing tank, the large cavitation tunnel and the seakeeping and maneuvering basin – Maritime Dynamics Laboratory, (MDL). Wind tunnel tests can be performed at external test facilities.
All test facilities at SSPA are designed for performing tests with large models, which have many advantages as scale effects are reduced and more reliable measurements can be performed.
NORWAY, HANGING IN THERE
For those interested in the preservation of Norwegian shipbuilding capability, a big question in the months ahead will be whether the Vard Group, a Fincantieri company, can continue to keep five Norwegian shipyards alive based on its previously successful strategy of supplying primarily the offshore oil and gas sector with specialized vessels designed and fitted out in Norway using hulls built in Romania.
In addition to its Norwegian yards, Vard has two yards in Romania, two in Brazil and one in Vietnam. Vard’s biggest recent headaches have included well-documented problems with its Brazilian activities and it has said that these are under review.
Outside of Brazil, Vard’s problems are those shared by all shipbuilders historically dependent on the oil and gas sector—getting enough orders to keep capacity occupied and diversifying into other sectors.
Its most recent order came in November and was for design and construction of what was described only as “one offshore vessel for an undisclosed international customer.” It is being designed by Vard Design in Ålesund, Norway. The hull will be constructed at Vard Braila in Romania and outfitting and delivery is scheduled from Vard Langsten in Norway in 2017.
That order followed contracts worth a total $100 million for the design and construction of two offshore subsea construction vessels for Dubai-based Topaz Energy and Marine. The hulls will be constructed at Vard Tulcea in Romania, with delivery scheduled from Vard Brattvaag in Norway.
In the fisheries sector, Vard last year secured an order from Brevik AS of Norway for a coastal fishing vessel, but, for this vessel, Vard Braila in Romania will undertake all stages of production.
Another fisheries order came from a Canadian client and was for a 79 m stern trawler of Rolls-Royce NVC 374 design. Vard Braila will build the hull and the vessel will be fitted out at Vard Aukra in Norway in the fourth quarter of 2016.
Thus far, Vard has either not been looking at the offshore wind sector or has been keeping very quiet about it. That’s not the case with other Norwegian shipbuilders.
A significant current project currently under way at the Ulstein shipyard is the fitting out of the first of two innovative offshore wind industry Service Operation Vessels (SOV) being built for Germany’s Bernhard Schulte Offshore GmbH that will be Ulstein’s first for the offshore wind industry — and the first to feature its innovative X-Stern which allows a vessel to be positioned with the stern faced towards the weather instead of the bow.
The hull of the first X-Stern SOV hull arrived at Ulstein’s Ulsteinvik shipyard in January and is scheduled for sea trials starting late spring. Starting this summer, the vessel will work at the Gemini wind farm in the Netherlands for Siemens Wind Power Service.
A project underway at Fjellstrand AS is another pointer to the growing attraction of offshore wind service opportunities in a depressed oil and gas market. It is converting a platform supply vessel it delivered only in April of last year into a wind farm support vessel.
Havyard Group established its credentials in the offshore wind sector with the delivery last February of the first of three Havyard 803 SOVs to Denmark’s Esvagt. In addition, Havyard has an order from Esvagt for aa design and equipment package for a Havyard 931 CCV crew change vessel that will be built at Spanish shipyard Astilleros Zamakona.
Late last year, Esvagt ordered a further Havyard SOV, aimed at a new niche for vessels of this kind, smaller wind farms. This Havyard 831 design is described as compact and efficient, but with ample capacity to transport service personnel and equipment. The first Havyard 831is also being built outside Norway, at the Cemre shipyard in Turkey.
Though design and equipment deals are obviously profitable for Havyard, that leaves shipyard capacity to be filled and another sector where it has been successful is the design and construction of large fish carriers. Last November Havyard was able to fill a gap in production of these vessels by using the covered building dock at its Leirvik shipyard for refit and refurbishment of two Faroese fishing trawlers.
Kleven, operates two shipyards—Myklebust Verft and Kleven Verft—and its orderbook includes a deep sea minerals exploration vessel and several fisheries vessel in among the AHTs and OCVs.
A recent contract came from Sølvtrans and is for delivery of a live fish carrier vessel for Myklebust Verft. This is Kleven’s second order from Sølvtrans for this type of vessel, both of which are being built to to Rolls-Royce NVC 387 design.
While ship designs are part of the stock in trade at Ulstein, Vard and Havyard, Kleven’s orderbook is pretty much a portfolio for Norwegian specialist ship design firms. The deep sea minerals vessel, which is on order for De Beers Marine Namibia, is being built to MT 6022 design from Marin Teknikk. This design is well proven in the offshore construction segment, but the De Beers ship will include a wide range of tailor made equipment and features.
A large pelagic midwater trawler/ purse seiner that Kleven is building for Gitte Henning AS in Skagen, Denmark, is based on a design from another well known independent design house, Salt Ship Design, which in October had 16 vessels of its design under construction at Norwegian and foreign shipyards.
“Unlike the current offshore market, fisheries and fish farming are doing very well and these segments represents an increasingly important market for Salt,” it said.
In addition to the independent design houses and shipyard design divisions, Norway is also the home of Rolls-Royce’s and Wärtsilä’s Ship Design divisions, which have absorbed various independents over the years. Having a ship design department makes all sorts of sense for both of them, as a ship design is the envelope for, quite literally, a boatload of equipment and systems.
FINLAND, BACK FROM THE BRINK?
In Finland, thanks largely to government support —including diplomatic efforts— a large part of the shipbuilding industry has emerged from the ashes of what was STX Finland.
Most importantly, with a lot of Finnish Government coaxing, Germany’s Meyer Werft has acquired the Turku shipyard, enabling it to continue as one of the world’s premier cruise ship yards.
Shipbuilding has also returned to the Rauma shipyard after STX announced its closure in 2013, with the site being sold to the local municipality. The shipyard reopened as Rauma Marine Constructions Oy (RMC) the following year and in December 2015 reported that it was to “receive a major infusion of capital for further growth from the government backed Finnish Industry Investment Ltd, and two investment companies, Finda and a fund managed by Taaleritehdas. That news came the day after the Finnish Ministry of Defense issued a Request For Information to kick off a long planned plan to build four new corvette size vessels.
The Rauma shipyard also has considerable expertise in the area of icebreaking vessels — which keeps what is now Arctech Helsinki Shipyard from having a monopoly in that area. When STX Finland ’s troubles threatened the survival of the Helsinki yard, Russia’s United Shipbuilding Company took a 50% stake in and subsequently took total ownership control and the yard’s orderbook primarily includes advanced icebreaking tonnage for Russian projects, though an icebreaker for the Finnish Transportation Authority is currently fitting out.
The other repository of Finnish icebreaking knowhow is ice-going vessel design and engineering specialist Aker Arctic, whose capabilities include ice model testing. Its largest shareholder is Finnish Industry Investment, which is also major stakeholder in the reborn Rauma yard.
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.
The 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.
NEW 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.
