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SHI delivers world’s first Very Large Ethane Carrier

NOVEMBER 10, 2016 — Classification society ABS confirms that the ABS-classed Ethane Crystal, the world’s first Very Large Ethane Carrier (VLEC), has been delivered to India’s Reliance Industries Ltd. by shipbuilder Samsung

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Survey predicts vessel operating costs will rise

NOVEMBER 1, 2016 — The latest survey by international accountant and shipping consultant Moore Stephens finds that vessel operating costs are expected to rise both this year and next, with repairs and

OP-ED: Freezing the Jones Act

 

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

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

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

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

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

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

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

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

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

Ferry Good Ambitions

Considered the “forgotten borough” by some New Yorkers, Staten Island is on the verge of making its presence known in the city that never sleeps. The borough is a 25-minute ferry ride from the lowest tip in Manhattan, the Staten Island Ferry terminal at Whitehall.

Staten Island’s plan for renewal includes a $1.2 billion investment that will see the construction of the New York Wheel at St. George—an impressive 630 ft tall observation wheel that will rival England’s infamous London Eye, and feature 36 pods with accommodations for 40 in each, on a 38 minute ride/revolution, giving passengers a spectacular view of New York Harbor. Alongside the New York Wheel, New York City’s first outlet mall, Empire Outlets, is currently being constructed at St. George. The mall will feature 350,000 square feet of retail, 100 different shops and a 190-room hotel. Both the New York Wheel and Empire Outlets are expected to be operational by 2018.

How will tourist, potential shoppers, and New Yorkers alike make their way to these new attractions? They’ll be taking the Staten Island Ferry of course. The fleet, currently comprised of nine ferries, carries 22 million passengers a year—second only to Washington State Ferries’ fleet which carries over 23 million passengers annually.

And come 2019, the Staten Island Ferry fleet will welcome a new class to its fleet—the Ollis Class ferries.

Designed by Seattle-based Elliott Bay Design Group, the Ollis Class will mix the new with a bit of the old, providing passengers with a faster, more efficient ride to help meet increased ridership demand.

Its design will give the 320 ft x 70 ft ferries a striking resemblance to the beloved John F. Kennedy—which was commissioned in 1965 and is one of the oldest ferries in the Staten Island Ferry fleet. The Kennedy is one of three-that will be retired once the new Ollis Class series is delivered—the S.I. Newhouse and Andrew J. Barberi, both commissioned in 1981 are the other two.

The new Ollis Class will be double-ended and have capacity for 4,500 passengers; and like the Kennedy, will feature plenty of open air space, enabling passengers to enjoy the harbor view. The ferries will be built to ABS class requirements and will be powered by Tier 4 EMD engines and Voith Schneider Propulsion Drives.

The first of the three ferries will be named in honor of U.S. Army Staff Sgt. Michael Ollis, a native Staten Islander who died while saving another soldier in Afghanistan. He was only 24 years old.

The Staff Sgt. Michael Ollis ferry is expected to begin operations in 2019, with vessels two and three following later in 2019 and 2020.

Building the Ollis Class
As we were going to press, yards were putting in their final bids for the ferry project.

Among the yards that have expressed interest in the Ollis Class—at least according to the 2015 Industry Day attendance—are Conrad Shipyard, Eastern Shipbuilding Group, Fincantieri Bay Shipbuilding, and Vigor. All are builders of a variety of vessel types including ferries.

Conrad Shipyard—which has won a number of newbuild contracts this year — has had its share of ferry projects in the past, and is looking to keep the momentum going.

As Dan Conrad, Conrad Shipyard’s Senior Vice President and Director, explains, “Conrad Shipyard has a great track record on deliveries to the Puerto Rico Maritime Authority, the Texas Department of Transportation, the State of North Carolina and the Alaska Marine Highway, among others.” And he assures that his team is committed to pursuing the ferry market for years to come.

Most recently, Conrad’s Conrad Aluminum, Amelia, LA, yard delivered the M/V Woodshole to the Steamship Authority. The 235 ft x 64 ft ferry was designed by Elliott Bay Design Group and has capacity for 384 passengers, 55 automobiles or 10 eighteen-wheel tractor-trailers.

Eastern Shipbuilding Group is said to have the inside track on building the Ollis Class ferries, according to our sources. It would be quite a month for the Panama City, FL-based shipyard, which recently secured the lucrative contract to build the OPC for the U.S. Coast Guard.

Meanwhile, Fincantieri’s recent expansion is helping it position its Bay Shipbuilding yard for larger projects that can be produced and worked on, year-round. The three-acre expansion will pave the way for additional covered fabrication and erection facilities, an indoor paint and coating building, and outfitting shop that will enable FBS to increase its pursuit of ferry projects.

“This expansion allows us to increase our capacity and positions us to pursue a number of new construction markets, including large passenger ferries,” said FBS Vice President and General Manager Todd Thayse. “Our experience in building ferries and other complex passenger vessels dates back to our origins almost a hundred years ago, and includes the New York Staten Island Ferry now operating (the Guy V. Molinari). We have the people, the experience, the facilities, and the global resources of Fincantieri to ensure that we can tackle the most challenging construction projects.”

As for the shipbuilding powerhouse in the Northwest, Vigor, it’s currently working on six ferry projects at the moment, including the final two vessels in Washington State Ferries’ new 144-car Olympic Class.

AlaskaDayFerry2“Vigor has deep expertise in the ferry market with successful, on-time and on-budget deliveries of car ferries, passenger only vessels and catamarans. Six ferries are currently under construction at our Washington and Alaska yards and we expect ferry construction to continue to be a focus in our business development efforts, leveraging our considerable experience,” said Corey Yraguen, Vigor Executive VP of Fabrication. 

Just last month the Chimacum, the third in the series was christened at Vigor’s Harbor Island yard. The fourth vessel in the series, the Suquamish, is currently under construction and scheduled for completion in 2018, with operations set to begin in 2019.

The 144-car ferries are the result of a combined effort from a consortium of Northwest based companies, including Nichols Brothers Boat Builders, Freeland, WA, which has been in charge of building the superstructures for the144-car ferries.

In other Vigor ferry news, Vigor’s Ballard Facility (formerly Kvichak Marine) is building two 400 passenger ferries for the Water Emergency Transportation Authority of San Francisco (WETA). The Incat Crowther designed ferries will travel 27 knots and are scheduled for delivery Summer 2017.

And Vigor’s Ketchikan yard in Alaska has taken up the task of constructing the highly anticipated 280 ft Day Boat ferries for the Alaska Marine Highway System. The ferries, designed by Elliott Bay Design Group, are scheduled to be completed Fall 2018.

Vigor’s Executive VP of Business Development, Keith Whittemore, will be discussing Vigor’s ferry projects and more at the Marine Log Ferries Conference & Expo November 3 & 4, 2016, Seattle, WA. Attendees of the event will also have the chance to tour Vigor’s Harbor Island yard after the conference’s conclusion. Learn more at www.marinelog.com/events

Route Extension?
Staten Island Borough President, James Oddo sparked additional interest in the Staten Island Ferry system when he requested the New York City Department of Transportation explore the feasibility of extending the Staten Island Ferry’s route north of the Whitehall Terminal, possibly extending the service into midtown.

While the idea sounds great in theory, and will certainly foster a sense of “transit equality” for Staten Islanders who have a grueling commute (just ask our Editor-in-Chief, John Snyder), the route extension could prove problematic as there is currently no operating terminal in place in midtown, with the right infrastructure to handle such large vessels.

CITYWideHullNew York’s Ferry Boom
Of course, the Staten Island Ferry isn’t the only New York City ferry operation making waves. Operated by Hornblower NY, Citywide Ferry Service’s new fleet of ferries are currently under construction at Louisiana-based Metal Shark Boats and Alabama’s Horizon Shipbuilding. The contract catapults both yards into new markets—propelling Metal Shark into the commercial market in a very big way, and introducing Horizon to the ferry market.

A large portion of the Incat Crowther-designed ferries are expected to be delivered in time for Citywide Ferry Service’s launch Summer 2017. The service, according to the New York City Economic Development Corporation is projected to make 4.6 million trips annually.

The 85 ft ferries will have capacity for 150 passengers, as well as space for bikes, strollers and wheelchairs. The Citywide Ferry Service is expected to add five new routes on the East River.

Meanwhile, another well-known ferry operator in New York harbor is upping its stake in the market. Seastreak says its “raising the bar in fast passenger ferry service” with the addition of a new, high-speed, 600-passenger, catamaran in 2017. The ferry will be the highest passenger capacity USCG K-class high speed ferry in the U.S.

The addition of the new ferry will help Seastreak meet growing passenger demand on the New Jersey to New York route.

SeastreakDesigned by Incat Crowther, the ferry, the first in Seastreak’s new Commodore class, will be 147 ft 8 in x 39 ft 5 in. The vessel was designed to provide Seastreak with an operational advantage. The ferry’s boarding arrangement will include large forward and aft side gates as well as an adjustable bow ramp. This will help facilitate turnaround times at terminals.

The first vessel in the series will be built at Gulf Craft Shipyard, Franklin, LA. Construction is to be completed by 3rd quarter 2017. Meanwhile, Seastreak expects a keel to be laid for a second Commodore class vessel before the end of 2016.

The Commodore Class ferry will be powered by four MTU 12V4000 M64 EPA Tier III main engines, each delivering 1,875 hp at 1,800 rev/min and driving Rolls-Royce KaMeWa 63S4 waterjets. The vessel will also feature LED lighting and an advance energy efficient HVAC system.

The ferry’s main deck will hold 234- passengers; mid deck will seat 271 passengers inside and 52 passengers outside; and the third deck features 160 exterior seats as well as the vessel’s wheelhouse.

Seastreak is also initiating the upgrades and repowering of several members of its current operating fleet. First one up will be the Seastreak New York, which is expected to enter into drydock this coming winter. At press time, the bids were out to multiple yards. The repowering project is expected to be completed by the end of the 1st quarter 2017.

Florida gets in the game
New York isn’t the only city getting its ferry action on. This month, service officially begins on the Cross-Bay Ferry system—connecting St. Petersburg and Tampa, Fl. The service is part of a pilot project intended to introduce residents and visitors to water transit services in the area. 

The route will be operated by the 98 ft twin-hull aluminum catamaran, Provincetown IV. The ferry was originally built for Bay State Cruise Company, Boston, MA, by Gladding-Hearn Shipbuilding, the Duclos Corporation, Somerset, MA. Designed by Incat Crowther, the 149-passenger ferry can operate at a top speed of up to 30 knots on the 50 minute route.

“We only have one vessel, and one crew, so we cannot do everything, but we do mean to showcase this technology to a lot of people and test ferry service in a variety of ways and markets,” said Ed Turanchik, policy advisor for the project.

Organizers of the project are testing the service on a variety of different market segments including tourist and local commuters, and the entertainment and sports markets. Learn more about the project at CrossBayFerry.com.

VDOT accepts ferry bids
Last month, the Virginia Department of Transportation was accepting bids for a new 70-vehicle ferry based on a design by Alion Science. The boat would be a replacement for the VDOT’s oldest ferry, the Virginia, built in 1936. Construction on the steel-hull ferry is to start this fall with completion in 2018.

Gladding Hearn delivers high-speed ferry
Gladding-Hearn Shipbuilding, the Duclos Corporation, recently delivered a new 493 –passenger, high-speed Incat Crowther designed ferry to Hy-Line Cruises, a division of Hyannis Harbor Tours, Inc., Hyannis, MA. 

The all-aluminum ferry is 153.5 ft x 35.5 ft and is powered by four Cummins QSK60-M, EPA Tier 3 diesel engines each delivering 2,200 bhp at 1,800 rev/min. Each engine will power a Hamilton HM721 waterjet through a Twin Disc MG61500SC horizontally-offset gearbox.

Incat Crowther says the ferry represents an evolutionary step from its previous designs built by Gladding-Hearn. According to the designer, the capacity increase had to fit within docking constraints, enforcing upper limits on both the length and beam of the vessel. To meet the requirements, it moved the wheelhouse to a third deck, freeing up the front end of the second deck for VIP passengers.

The restructuring shifted boarding arrangements, with the addition of a middeck boarding door and both forward and aft stairways improving passenger flow and turnaround times, says Incat.

The ferry will provide year-round service between Hyannis and Nantucket Island. It will top speeds of over 34 knots when fully loaded at a deadweight of more than 64 tonnes, said Peter Duclos, President of Gladding-Hearn.

The new ferry is also outfitted with a Naiad Dynamic trim-tab, ride-control system to help improve passenger comfort and safety. The system’s motion sensor measures the relative movement of the vessel and transmits a signal to the hydraulic device to counter the boat’s actions through the waves.

Europe’s Ferry Market
The European ferry market remains in the forefront of technology. The continent that gave the world emission-free, battery operated ferries, will now give forth, the world’s largest hybrid ferry.

Just last month, Norway’s Color Line reported that it would order the largest hybrid ferry ever built. The ferry, which will feature batteries charged via green electricity from dedicated shore side facilities, or recharged on onboard via the ship’s generators, would double the capacity of the vessel it will replace.

Tentatively named the “Color Hybrid, the ferry will be 160 m long and have capacity for 2,000 passengers and up to 500 cars. The ferry is expected to be put into service on the Sandefjord, Norway to Stromstad, Sweden route in 2020.

DAMENwaterbusAnd not to be outdone, Damen says its ready to launch its first composites-construction Water Bus. As we were going to press, the prototype was prepping to begin sea trials.

The Damen Water Bus is the first vessel for public transportation produced at Damen Shipyards, Antalya, Turkey. Its benefits are plentiful—the vessel, which features a slender hull, making it lighter than a traditional aluminum vessel, requires less fuel consumption, less maintenance, will suffer from no corrosion or fatigue problems. It can travel at speeds up to 21 knots and has capacity for 100 passengers.

Damen’s Design & Proposal Engineer, Fast Ferries, Marcel Elenbaas, explains that the Water Bus is built using high quality vacuum infusion technology that creates a “difficult to penetrate closed cell, epoxy sandwich structure.”

Damen says the vessel is ideal for highly congested urban areas, and is a simple and efficient way for using a city’s natural waterways system.

The Water Bus is equipped with two, forward facing, double-screw podded propulsion units—helping to reduce vibrations. Damen says the vessel can be easily adapted to customer specifications, and because of the nature of the composites’ production process, delivery to clients will be quick.