DECEMBER 20, 2016 — Fullers Group, Auckland, New Zealand, has taken delivery of the 34 m Incat Crowther designed catamaran passenger ferry Korora from Q-West Boat Builders, Wanganjui, New Zealand. Korora is
Signed into law by President George Bush in December 2007, the Energy Independence and Security Act of 2007 was to have achieved important, long-sought maritime sector objectives. A national Short Sea Transportation (SST) program was authorized and a detailed outline provided. The Secretary of Transportation was assigned the responsibility for the development a plan for SST implementation, and required to report to Congress by December 2008 on the progress made.
The 2007 Act mandated Secretarial action to create an environment that would attract private sector investment to finance SST requirements. The original House version of the 2007 Act, as reported by the House Committee on Transportation and Infrastructure and passed by the House on January 18, 2007, addressed the need for government-assisted SST financing by extending the Maritime Administration (MARAD) capital construction fund (CCF) tax-deferral program to container and ro/ro services nationwide, and by authorizing $2 billion for the MARAD Title XI program use in attracting private sector financing for SST projects.
Mr. Oberstar and his Congressional co-sponsors of the original maritime sections of the 2007 Act were confident that with their proposals in place, the long-discussed use of U.S. waterways for the transportation of freight (in containers and trailers) and passengers, to mitigate landside highway congestion and reduce petroleum usage, and accomplish multiple other objectives, would be underway.
They were to be disappointed. The $2 billion of Title XI authorization was removed in the Senate. The Secretary’s report, required by December 2008, was not delivered until April 2011 and concluded that without “strong leadership from the federal government . . . the nation’s rivers and coastal waterways will continue to be underutilized for domestic container and trailer freight transportation” without tabling such leadership proposals.
And, after the 2007 Act had become law, when U.S. ferry operators sought to include their vessels that carried passengers as well as ro/ro cargoes, so-called ro/pax vessels, for CCF program “qualified” withdrawals, MARAD refused to approve these withdrawals. MARAD advised CCF program applicants that Congress had intended the 2007 Act extension to apply for only to vessels in ro/ro services engaged in the carriage of freight, and that the carriage of passengers, in so-called ro/pax vessels, was a disqualification. And, CCF program applicants were told that a new Congressional enactment would be required to enable MARAD to include ro/ro vessels that included the carriage of passengers as “qualified” services.
Change of Policy
This MARAD interpretation has been withdrawn. MARAD will now include ro/ro vessels that also carry passengers, ro/pax vessels, as engaged in CCF program “qualified” services. Owner and operator participants in the MARAD CCF program will be now able to use their CCF program deposits to purchase ro/pax vessels, and retire ro/pax vessel debt. And, this will enable shipyards that are building ro/pax vessels to use their CCF program monies as working capital for construction financing for customers (or for their own accounts) and as equity in customer vessel leasing transactions.
The majority of U.S. vehicle ferry services are provided by vessels that carry vehicles and freight loaded by “wheeled transportation technology” and vehicle drivers and passengers being loaded in this same fashion, plus additional walk-on passengers. It was to facilitate the construction of these vessels that the CCF program qualifying service definition was being expanded. This MARAD change in interpretation gives full recognition to the CCF extension that Congress intended in 2007. It is of enormous practical importance.
MARAD CCF Program & Importance
The MARAD CCF program allows participants to defer payment of federal and state income taxes on vessel operations and sales and associated investment income. It provides what is in-effect an interest-free loan of monies that a taxpayer would otherwise pay to settle current taxes in exchange for the taxpayer’s promise to use that money for the construction of vessels to be operated in qualifying services or the payment of exiting or later incurred vessel debt. MARAD currently lists 165 CCF program participants. These include owner-operators such as Crowley Maritime, Exxon Corporation, Matson Navigation and Tote, two shipyards NASSCO and Horizon Shipbuilding, and what are apparently three owner-lessors. As of 2012 year-end, MARAD recorded $2.3 billion of CCF program monies as on deposit. Many of the owner-operator participations date from the 1970s. NASSCO was the first CCF shipyard, entering the program in 1988, and remains a participant today. NASSCO has apparently been able to defer federal and California tax on the profits from almost all of its U.S. new-buildings, and to use these interest free borrowings as working capital in the construction of vessels for customers in the Alaska, Hawaii and Puerto Rico (non-contiguous) trades.
This MARAD program change will allow commercial operators to defer tax and access their CCF monies as working capital for new ro/pax construction. The change will not directly benefit state and municipal owner-operators such as Washington State Ferries that do not need to defer taxation of current income. However, the CCF program can now be employed by the shipyards from which these owner-operators purchase their ro/pax vessels. These shipyards can use their CCF monies as a source of working capital to provide construction period financing, and equity for long term lease financing. And owner-operators like WSF, may be able to obtain CCF program ro/pax long-term charter rates that will be 30 to 40 percent lower than the long-term charter rates that would otherwise be available. This might become a factor in lease vs. purchase decisions for operators like WSF that have substantial fleet replacement needs.
The greatest number of immediate beneficiaries of this MARAD change will be the U.S. citizen shipyards that are engaged in, or are considering engaging in ro/pax vessel construction.
Mr. Cook was the MARAD General Counsel who was responsible for the 1970 Act CCF Program implementation. His work with the Program has included advice for both private sector clients and in U.S. Government projects (in work for MARAD itself and for the U.S. Navy) and is partially detailed at his www.CookMaritimeFinance.com website and in the site’s linked documents.
If you would like a copy of his PowerPoint slide set on “Sheltering Shipyard Profits to Benefit Customers,” or of his descriptive memo hand-out “MARAD CCF: Shipyard Program Use” please email him at Cook@CookMaritimeFinance.com. For more information on the Program, you can also contact Mr. Daniel Ladd, at MARAD’s “Office of Financial Approvals” at 202 366 5737 or Daniel.Ladd@dot.gov.
A follow-on article by Mr. Cook with examples of shipyard and owner-operator CCF Program use is scheduled for the MARINE LOG November issue.
SEPTEMBER 4, 2016 — Isle of Wight, U.K., based aluminum high speed craft builder and luxury yacht specialist Shemara Refit LLP is rebranding its activities. Following delivery of the first high speed
“Anyone studying the growth of the city …cannot help but be struck by the fact that New York was first a port before it was anything else.” This William Bixby quote adorns the perimeter of South Street Seaport in New York. The city is one with a rich maritime history—operations on both the East and Hudson River have played a vital role in shaping the city and its people’s history—but its one often forgotten by most New Yorkers navigating their way through the hustle and bustle of the concrete jungle.
New York was originally the landmass south of Wall Street on the island of Manhattan, as time went on, however, New Yorkers began expanding out into the neighboring boroughs and eventually made their way to the suburbs. Today, Manhattan is still the city’s center with New Yorkers spending, on average, 40 minutes traveling to or from work each day, according to the New York Times —more than any other city in the United States. But one mode of transportation often not used by New Yorkers, are ferries operating on New York’s marine highway, the East River. Granted, most communities in the city’s five boroughs don’t have access to such ferry operations—except for Staten Island which has the government operated Staten Island Ferry, most ferry operations are private and confined to Manhattan and parts of Queens and Brooklyn—but that’s all about to change thanks to a partnership between the New York City Economic Development Corporation (NYCEDC) and Hornblower, Inc.
Hornblower is no stranger to New York, the company’s subsidiary Statue Cruises currently provides transportation to the Statue of Liberty National Monument and Ellis Island. Hornblower also debuted its New York Hornblower Hybrid, a ferry/luxury yacht, back in 2011.
Citywide Ferry
Promising a fast, frequent and convenient service operating year round, the Citywide Ferry will bring a total of six routes that, when combined, will cover over 60 miles of waterways. The creation of the service will help meet growing waterfront community demand, and help lighten the load for an already overworked, overcrowded, and outdated MTA subway system.
Hornblower will have the option to purchase at least 17 new ferries, as well as chartering already existing ferries to help meet the system’s demand. Our sources tell us Hornblower will likely contract up to three shipyards, which will each build three to four ferries in the first round of construction. One of the shipyards is believed to be Metal Shark Aluminum Boats, Jeanerette, LA. It recently received a Small Shipyard Grant from the Maritime Administration for its Franklin, LA, shipyard.
The city is providing the service with $55 million in infrastructure upgrades—this includes the building of ten new ferry landings and the repair/refitting of six others. Additionally, the city will provide $10 million for startup costs, such as vessel upgrades and ticketing machines and $30 million in operation support per year for a period of six years.
NY Waterway’s East River Ferry boats are also to be fully integrated into the Citywide Ferry fleet. The transition is expected to be complete by the summer of 2017.
The Citywide Ferry service will roll out in two phases. Phase one will initiate service to Astoria, South Brooklyn and Rockaway in 2017. Phase two to Soundview (Bronx) and Lower East Side will launch in 2018.
The catamaran ferries, which will be based on an Incat Crowther design, say our sources, will carry at least 149 passengers, will be fully accessible to those with disabilities, will be equipped with WiFi, and will operate using low emission engines and “Low Wake” technology. The ferries will offer passengers 360 degree views, and LED screens will be fitted on board displaying information and entertainment.
The ferries, like its Staten Island ferry counterpart, will also offer food and beverage options on board.
However, unlike the Staten Island Ferry, which is free, the Citywide Ferry will cost passengers $2.75, the same price as a New York City Metro Card swipe on the city busses or Subway system.
Passengers however will not be able to transfer from the train/bus to the Citywide Ferry—meaning the service won’t be fully integrated with the NYC mass transit system. However, free transfers will be available between ferries. The ferries will operate from 6:30 am to 10 pm, seven days a week.
Ferry Landings for Citywide Ferry
A total of 10 ferry landings—the barges were designed by Blancke Marine Services, Woodbury, NJ, and the topside outfit by project design manager McLaren Engineering—will be built for the service, and are expected to be ready in time for the service’s launch in 2017. The barges for the landings are being built at May Ship Repair on Staten Island.The ferry landings will be 35 ft wide by 90 ft long.
The landings are being fabricated for Soundview, Bronx; Astoria, Queens; East 62nd Street, Manhattan; Roosevelt Island (between Manhattan and Queens); Long Island City, Queens; Stuyvesant Cove in Manhattan; Grand Street (Lower East Side Manhattan); Red Hook, Brooklyn; Bay Ridge, Brooklyn; and the Rockaways.
According to NYCEDC, upon completion, the landings will be equipped with canopies and wide screens to provide passengers a sheltered space from inclement weather. Additionally, the barges will feature ticket machines and waiting areas, allowing for minimal upload impact at the landing sites, says the NYCEDC.
Helping the waterfront community
The Citywide Ferry system is projected to add 155 new jobs to the New York Harbor. Additionally, the company will participate in the City’s HireNYC program which will match qualified applicants from neighborhood-based WorkForce1 training centers, meaning that the folks working at the landings will be qualified people from the communities.
Crews are expected earn more than $15 an hour and will also receive a comprehensive benefits package.
Further exemplifying its desire to highlight and foster the growth of the city’s maritime tradition, NYCEDC has partnered with a number of federal, state and city agencies to launch the Waterfront Navigator—a website that will serve as an official source of information for businesses and waterfront property owners seeking to learn what tools are available to them. In addition, the website, WaterfrontNavigator.NYC, will help facilitate environmental permit applications for waterfront construction.
NYCEDC President Maria Torres-Springer says that the “one-stop” user friendly website is where regulatory agencies from the federal, state and local levels joined forces to create a resource for simplified permit planning.
Staten Island Ferry
One constant presence on the New York Harbor has been the Staten Island Ferry (or at least some incarnation of it). Formal service on the route between Manhattan and Staten Island was established in 1817 under the Richmond Turnpike Company when it began sailing the steam-powered Nautilus. Eventually, the City of New York took over the operation in 1905 when it ordered five new ferries for the route, each named after the city’s five boroughs: the Bronx, Brooklyn, Queens, Manhattan and Staten Island.
Since then, a number of new ferries have been built and retired for the now famous orange Staten Island fleet. Currently, the fleet is made up on nine ferries providing service to 22 million passengers a year. And with the population on the island growing, demand is high for a new series of ferries that provide faster, more efficient ride.
Earlier this year, New York City Mayor Bill de Blasio confirmed that the NYC Department of Transportation (NYC DOT), the agency that runs the Staten Island Ferry operation would be ordering three new ferries for the route. This would enable the operator to retire three of the older ferries in the fleet including the 51-year-old John F. Kennedy, commissioned in 1965. Additionally, the S.I. Newhouse and Andrew J. Barberi, both commissioned in 1981 will also be put out of service. The two hold the distinction of having the highest passenger capacities, with room for 6,000 passengers.
The three new 320 ft x 70 ft ferries are designed by Seattle-based Elliott Bay Design Group, and are expected to bare a striking resemblance to the beloved Kennedy, with lots of open-air space. The ferries will also be double-ended and have capacity for 4,500 passengers.
The ferries, which will be built to ABS class requirements, will be powered by Tier 4 EMD engines and Voith Schneider Propulsion drives.
Glosten Inc. will act as the Owner’s Representative [Team] providing all construction management and oversight on behalf of the NYCDOT.
Industry Day Reveals Interested Parties
At the New Staten Island 4500 Class Ferry Industry Day event held last September at the Whitehall Terminal, the NYC DOT laid out details on the Ollis class project as well as its target dates.
The city operator expects for bids to be due 90 days after it was advertised (sometime in the 3rd Quarter of 2016)—we should note that as we were going to print, the NYC DOT released the Request for Bids (RFB) for construction of the ferries; and expects to issue a Notice to Proceed (NIP) contract start by the 4th Quarter of 2016. The NYCDOT expects all three vessels to be completed within 1,460 consecutive calendar days following NIP.
Looking at the Industry Day’s attendance sheet, one could wager a guess on what yards will be bidding on the project. Conrad Shipyards, Dakota Creek Industries, Eastern Shipbuilding Group, Fincantieri Bay Shipbuilding, GD NASSCO, Leevac Shipyards, Vigor Industrial, and VT Halter Marine were all in attendance.
The first of the three new ferries, the Staff Sgt. Michael Ollis, is expected to begin operations in 2019. The ferry is named in honor of the late U.S. Army Staff Sgt. Michael Ollis, a native of the New Dorp area of Staten Island, who died while saving a Polish soldier in Afghanistan. He was only 24 years old at the time of his passing.
Vessels two and three in the Ollis Class are to be delivered later in 2019 and 2020.
FTA awards ferry grants, WETA expands
The Staten Island Ferry system will also get a boost from the U.S. Department of Transportation’s Federal Transit Administration (FTA). Under its Passenger Ferry Grant Program a total of ten projects received a combined $59 million in funding. Of that, $6 million will go to the NYC DOT, which will use part of the funds to replace the deck scows (barges) for the Staten Island Ferry Dockbuilding Unit as well as upgrade the Staten Island Ferry Maintenance Facility Ramps and Racks.
The San Francisco Bay Area Water Emergency Transportation Authority (WETA) was also a recipient of the FTA grants. Under the program, WETA will receive $4 million to expand berthing capacity at the Ferry Terminal from its current four berths to six, and the construction of three new ferry gates. According to WETA the expansion project is set to begin Summer 2017. WETA says the project will improve landside conditions at the Ferry Terminal by providing new amenities, such as weather-protected canopies, the construction of a new plaza area south of the Ferry building, the extension of pedestrian promenade areas and other public access improvements. The expansion will also enable WETA to stage emergency water transit services in the event of a regional transportation disruption or disaster.
“Improvements to the San Francisco Ferry Building ‘hub’ is a key element to expanding our services on the Bay, and validation of the important role ferry service will play in the future of the Bay Area’s transit infrastructure,” says Nina Rannells, Executive Director of WETA.
The improvements come at a time of growth for WETA. The ferry system in the Bay area has experienced a boost in ridership over the last few years and to help meet increasing passenger demands WETA has invested in both new ferries and is currently in the process of converting/refurbishing other members of the fleet.
Last April, the operator awarded Kvichak, a Vigor company, the contract to build two all-aluminum 400-passenger only ferries. The 135 ft x 38 ft catamarans, currently under construction—the hulls are being built by Kvichak and the superstructure is by Nichols Brothers Boat Builders, were designed by Australia’s Incat Crowther, and will be equipped with MTU 12V4000 M64+ EPA Tier III engines rated at 1,950 bhp at 1,830 rev/min. The engines, coupled to ZF7600 reduction gears, will enable the ferries to reach a top speed of 27 knots. Delivery of the ferries is expected to occur November 2016 and April 2017.
Beyond the newbuilds, WETA also has two of its existing ferries, the MV Intintoli and MV Gemini, undergoing upgrades at San Diego-based Marine Group Boat Works.
At press time, the MV Intintoli was nearly done undergoing a propulsion upgrade. Meanwhile, the MV Gemini is currently undergoing a minor refit to help improve vessel reliability and passenger amenities, according to WETA’s Ernest Sanchez. Among the improvement is the refurbishment of shafts, propellers and rudders, and the replacement of bearings; plus the overhaul of the Selective Catalyst Reduction System as well as the main engines, HVAC, electrical, plumbing, emission and fire and lifesaving safety systems.
The Gemini’s conversion from a Subchapter T to a Subchapter K ferry—means an increase in passenger capacity from 149 to 225 and an upgrade of the interior spaces. The MV Gemini project will be completed this summer.
WSF phases out older ferries
While New York City and San Francisco get ready to up the ferry ante, up in the Northwest, the largest ferry operator in the U.S., Washington State Ferries continues its newbuild program in the hopes of phasing out older members of its fleet and improving safety and efficiency. The ferry division of the Washington State Department of Transportation recently announced that construction has officially began on the state’s newest ferry, the Suquamish.
The keel was laid last month at Vigor’s Harbor Island Shipyard in Seattle, where Governor Jay Inslee, State Senator Christine Rolfes, and Suquamish Tribal Chairman Leonard Forsman struck ceremonial welds on to the keel—Inslee welded his granddaughter’s initials, Rolfes welded an orca whale, and Forsman welded a circle with a dot, an ancient design element found in the early Suquamish winter village.
The Suquamish is the fourth ferry in the Olympic Class, which was designed by Seattle-based Guido Perla & Associates, Inc., and is based on the Issaquah class design, WSF’s most versatile ferry. The Olympic class ferries each have capacity for 144 cars and 1,500 passengers.
While construction has officially started on the Suquamish, the third ferry in the class, the Chimacum, is about 75 percent complete. In April, Chimacum’s superstructure, built by Nichols Brothers Boat Builders, was joined to its hull at Vigor.
The Chimacum is expected to go into service on the Seattle/Bremerton route in 2017. WSF is expected to take delivery of the Suquamish in the Fall of 2018.
The total cost to build four Olympic Class ferries is $515.5 million.
The hope for WSF is to continue “investing in long-term ferry build programs” in order to keep up with increasing ridership numbers—WSF carries more than 23 million riders and 13 million cars, annually— in addition to replacing aging members of the fleet, said Matt Von Ruden, Director of vessels for WSF.
One of those aging vessels, the Hiyu was officially retired last month after nearly 50 years of service. Considered cute by many, it was even affectionately called “Baby Hiyu” by some, the ferry was tiny in size—only 162 ft long with a maximum capacity for 199 passengers and 34 vehicles—but lacked ADA accommodations and incurred high maintenance costs, rendering it obsolete.
“While the Hiyu was a good and dependable vessel, its tiny size means it is no longer the best option for moving passengers and commerce across the Puget Sound,” said Elizabeth Kosa, Washington State Ferries’ Chief of Staff. “The addition of modern, bigger and faster Olympic Class vessels to the fleet means its time to bid farewell to the Hiyu.”
Conrad christens MV Woods Hole for Steamship Authority
As we were going to press, the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority was prepping to take delivery of its newest ferry, the M/V Woods Hole.
Built by Conrad Shipyard, the ferry, was christened on May 20th at Conrad Aluminum, Amelia, LA. Called a “beauty” and a “perfect example of the ships built by Conrad…quality in every detail,” by Project Manager Thomas Rachal, the ferry features state-of-the-art technology, WiFi stations, a snack area, and oversized reclining leather seats for passenger comfort.
The M/V Woods Hole, designed by Seattle-based Elliott Bay Design Group (EBDG), is 235 ft x 64 ft with a maximum draft at 10 ft 6 inches. It has a passenger (plus crew) capacity of 384, car capacity of 55 and the freight-vehicle deck is designed to carry ten 100,000 lb tractor-trailers.
It features a highly shaped bulbous bow to help minimize wave and improve fuel efficiency. Further improving efficiency are Becker high-lift rudders, which, when working in combination with the controllable pitch propeller system and vectorable bow thruster provide the ferry with high maneuverability in a small area.
Powering the M/V Woods Hole are a pair of MTU 16V4000 EPA Tier 3 engines providing 2,680 hp connected to Hundested controllable pitch propellers, generating service speeds of 12 to 14 knots and sprint speeds of 16 knots.
The ferry is expected to go into service sometime this month providing service between Woods Hole and Martha’s Vineyard.
Alaska Class Ferries Get Named
Meanwhile, another EBDG-designed ferry series, the new Alaska Class ferries being built for the Alaska Marine Highway System have officially been named. Following a call to students from Alaska’s Governor Bill Walker to submit essays on what the ferries names should be, two students, seventh grader Malea Voran and 10th grader Taylor Thompson, won the naming rights.
The two new ferries will be named Tazlina, which Voran explained in her essay was an Ahtna Athabaskan name that means “swift river”, and the Hubbard, after the Hubbard Glacier, which Thompson says “surpasses all others (glaciers) in its beauty and magnificence. A ferry named after it would surely do the same.” The Hubbard Glacier has actually thickened over the years as opposed to melting like its other glacier counterparts, making it an anomaly to the science community.
The 280 ft ferries are being built in modules by Vigor’s Ketchikan Alaska Shipyard. Once the modules are complete—with pipes, electric cable raceways and other systems installed—they will be set in place and attached to the ships.
The two-day boat Alaska Class ferries will seat up to 300 passengers and carry 53 standard size vehicles. Delivery is expected from the yard in 2018.
Soon, noon-day reporting from fallible human beings will be a thing of the past. From cradle to grave, a whole new approach to ship efficiency has been made possible by recent advances in IT and data processing. Now, a step change in “always-on” ship connectivity will allow maritime assets to be monitored and managed remotely right round the clock.
As we reported in “Shipping’s Space Age Future” (ML April 2016, p. 37), perhaps the most ambitious project on the go in Europe is the Rolls-Royce-led Advanced Autonomous Waterborne Applications Initiative (AAWAI) in which other maritime firms including DNV GL, Inmarsat, Deltamarin and NAPA are also involved. Other participants include top academics from various Finnish universities.
At a project update meeting recently in Helsinki, Rolls-Royce President – Marine, Mikael Makinen declared: “Autonomous shipping is the future of the maritime industry. As disruptive as the smart phone, the smart ship will revolutionize the landscape of ship design and operations.”
Delegates heard that the sensor technology is now sufficiently sound and commercially available so that algorithms required for robust decision-making—the vessel’s virtual captain—are not far away. Now the arrays of sensors are to be tested over the coming months on board Finferries’ 65-meter-long double-ended ferry, Stella.
“Some of the distinct goals of this project are to make a difference in marine safety and energy efficiency,” Päivi Haikkola, Manager, R&D, Deltamarin Ltd., told Marine Log. “We want to mitigate human error.”
Finferries and dry bulk shipping company ESL Shipping Oy are the first ship operators to join the project, which aims to explore ways in which to combine existing communication technologies as effectively as possible for autonomous ship control. Inmarsat’s involvement is key.
The London-listed communications company recently began the roll-out of its new Fleet Xpress service, seen by many as truly a light-bulb moment. Preparing the ground for rapid advances in smart ship operation and crew welfare, the new service now provides always-on high-speed broadband communication between maritime and offshore assets at sea, and shore-based managers. It is the first time that such a service has been available from a single operator.
Fleet Xpress will also facilitate cloud-based applications from third parties with smart systems to raise ship operating efficiency and improve the life-quality of seafarers. For the first time, big data can be used to improve asset management and maintenance.
IT advances have also facilitated a new approach to ship design. Model basins and testing tanks still have their place, of course, but thousands of relatively high-speed computational iterations can measure the relative benefits of small design changes in a way that has not been possible before.
Take the Finnish company Foreship, for example. Its capabilities in computational fluid dynamics (CFD) and the super-efficient hull forms which it has developed have propelled the company into a position as one of the top ship design consultants to global cruise lines, advising both on newbuilding plans, conversions and retrofits.
In a couple of months, the first of two 4,700 dwt “EcoCoaster” cargo ships is due for delivery to Finland’s Meriaura Group from the Royal Bodewes yard in the Netherlands. Foreship carried out extensive hull optimization work and, as a result, these vessels will burn only about half of the fuel compared to an existing vessel of similar size and class.
Foreship worked with both the owner and Aker Arctic Technology on the ships which will be able to run on biofuel or marine gasoil. Meriaura plans to have at least half of its fleet – currently about 20 ships – based on EcoCoaster designs by 2020. Since ordering the 4,700 dwt units, work has been carried out on larger designs.
Also hailing from Finland is progressive ship design firm Deltamarin. Now a subsidiary of Singapore-listed AVIC International Maritime Holdings Limited and ultimate Chinese ownership, the company’s range of super-efficient B.delta bulk carriers spanning a size range from 28,000 dwt to 210,000 dwt has caught the attention of long-established dry bulk owners including heavyweights such as Algoma, Canada Steamship, Cosco, Louis Dreyfus Armateurs and Oldendorff.
Of course the catalyst for taking a fresh look at the hull forms which had not changed for decades was the spike in bunker prices. But although the oil price collapse means today’s fuels cost only a fraction of prices two or three years ago, the search for improved economy has developed a momentum of its own, and nowhere is this more obvious than amongst leading propulsion companies, many of which are to be found in Europe.
While big low-speed diesel manufacturers like MAN Diesel & Turbo and Wärtsilä have made huge strides in raising the fuel efficiency of large engines, it is among some of the smaller niche machinery providers where true design innovation is to be found. Electrical power, energy storage and the growing popularity of azimuth thrusters are fiercely fought-after markets. ABB, Rolls-Royce, Steerprop, and Wärtsilä all feature in a market popular with operators of cruise ships, workboats, offshore support vessels and dynamically positioned offshore units of various types.
ABB, for example, recently won a European Marine Engineering Award for its Azipod D electric propulsion system with a power range from 1.6MW to 7MW. Launched last year, the latest Azipod was designed to allow its use on a wider range of ship types. It incorporates various innovative features including a new hybrid cooling system which contributes to a requirement for 25% less installed power and similar fuel savings.
The first cruise ship with Azipod D will be the 16,800 gt Scenic Eclipse being built by Uljanik shipyard in Croatia. The Scenic Eclipse (pictured above) is being built to Polar Class 6 and will operate in the summer waters of the Polar regions when it is delivered in 2018. The 228-passenger ship will have two 3MW Azipods installed.
Meanwhile, ABB recently announced a deal to supply a new electrical power system based on its Onboard DC Grid system for a hybrid car ferry in Norway. Initially the vessel, for Torghatten Trafikkselskap will operate as a hybrid with two battery packs contributing to peak demand. However, the 60-car, 250-passenger vessel can be easily modified to become fully electric in due course by adding 16 battery packs and a shore connection.
For the cruise ship and offshore vessel markets, Wärtsilä recently unveiled the Wärtsilä WTT-40 transverse thruster, which features a 4,000 kW power level and a 3,400 mm diameter controllable pitch propeller. The thruster complies with the U.S. EPA’s latest VGP2013 regulations. It also features integrated hydraulics to save machinery room space and installation and commissioning time in the shipyard.
Meanwhile, last year Steerprop Ltd. landed orders for a total of ten SP25D units to serve as main propulsion for three inland towboats being built for SCF Marine at C&C Marine & Repair, Belle Chasse, LA. The propulsors will be delivered this summer to the shipyard by Karl Senner, LLC., Kenner, LA, the North American distributor for Steerprop. These will be the largest and highest horsepower inland towboats equipped with Z-drives built in North America to date, according to Chris Senner of Karl Senner, LLC. He adds, “It is imperative to consider the harsh conditions of the inland waterways and select a unit suited for the environment, which is why we propose the equivalent of an ice-class rated unit.”
A new generation of much more fuel and operationally efficient newbuilds, however, does nothing for the tens of thousands of existing vessels built before the new wave of design innovation began. But there are a range of initiatives in progress focused on enhancing existing ship efficiency.
Germany’s Becker Marine Systems is a leading light in energy-efficient retrofits and appendages. The company recently signed a deal with Abu Dhabi’s Adnatco to fit some 20 vessels with Becker Mewis Ducts (pictured at right). Rudder modifications and Becker Twisted Fins are also generating a steady pipeline of sales.
Walter Bauer, Sales Director, concedes that sales volume has reduced. But he says that this is partly a result of the dire state of the bulk carrier market. Tanker business, he says, is holding up well.
But what to do with almost-obsolete panamax container ships? Owing to beam constraints, they are generally long and relatively thin, and were mostly built in an era of cheap fuel and fast sailing speeds. They are not particularly efficient from a box-carrying point of view, but are in dire straits today, competing with larger ships and lower slot costs. There are more than 800 such vessels in the world fleet today and well over half are less than 10 years old. They are likely to prove increasingly unpopular with charterers.
Cargo access specialist MacGregor is one of several companies which offers capacity increasing conversions for container ships. By slicing a vessel in half lengthways, a newly constructed midship section can be inserted and stack heights raised by lifting the navigation bridge.
In a similar project, the capacity of the 4,860 TEU MSC Geneva, owned by Reederei NSB, was increased to 6,300 TEU. The five-month widening project, undertaken in close cooperation with Hamburg’s Technology GmbH, was completed at Huaran Dadong Dockyard in China. Through its subsidiary NSB Marine Solutions, Reederei NSB is now offering to assist in similar projects for third parties.
Last year, General Dynamics NASSCO earned the bragging rights for building and delivering the world’s first LNG-fueled containership, the Isla Bella, to Jones Act operator TOTE Maritime. The San Diego shipbuilder capped off that technological achievement last month by delivering the 764 ft Perla del Caribe, sister ship to the Isla Bella, two months early.
The two ships were built under a contract signed by TOTE in December 2012. The investment by TOTE in the two ships was $375 million.
TOTE President and CEO Anthony Chiarello, says that the “Isla Bella is already serving the people and communities of Puerto Rico and we are excited to introduce the Perla Del Caribe into the trade next month.”
GD NASSCO designed the ships in partnership with DSEC, a subsidiary of Daewoo Shipbuilding & Marine Engineering (DSME), located in Busan, South Korea.
The design is based on proven containership-design standards and includes DSME’s patented LNG fuel-gas system and a MAN ME-GI dual fuel, slow-speed engine. The 8L70ME-GI engine was built by Korea’s Doosan Engine under license from MAN Diesel & Turbo.
Burning LNG will allow the Marlin Class ships to be fully compliant with strict emissions regulations while operating in both the North American Emissions Control Area and the U.S. Caribbean ECA.
The Isla Bella made its first trip from Jacksonville, FL, to San Juan, Puerto Rico, November 24.
On January 9, TOTE Maritime Puerto Rico successfully loaded LNG bunkers aboard the world’s first LNG powered containership, MV Isla Bella. Approximately 100,000 LNG gallons transported by 12 TOTE-owned LNG ISO containers were loaded on schedule. The bunkering was conducted under strict U.S. Coast Guard oversight while Isla Bella was also undergoing cargo operations.
The LNG was transferred from the ISO tank containers using a specially developed transfer skid developed by TOTE’s partner Applied Cryogenics Technologies (ACT) of Houston, TX. The transfer skid is designed to allow four ISO tanks to be transferred to Isla Bella at once, dramatically reducing transfer time.
The LNG was sourced by TOTE’s partner, JAX LNG, LLC, from AGL Resources’ LNG production facility in Macon, GA. Genox Transportation, a specialized LNG trucking partner of TOTE, transported the fuel to Jacksonville. Pivotal LNG, a subsidiary of AGL Resources, also provided transfer expertise to TOTE Maritime with its highly trained LNG experts, ensured the operation was conducted safely and in accordance with best industry practices.
Oversight of the operation both at shipside and on shore was provided by TOTE Services, Inc. (TSI), TOTE Maritime’s sister company that manages the vessels.
“We are very pleased with the results of this initial LNG bunker event and know that the use of LNG in our Marlin Class vessels will provide unprecedented environmental benefits both here in Jacksonville and in Puerto Rico,” says Tim Nolan, President of TOTE Maritime Puerto Rico. “We are indebted to USCG Sector Jacksonville for their diligent oversight and assistance that was invaluable and helped make this event a success. Our partners ACT, Pivotal LNG and Genox were also major components of our success. Our sister company, TSI, has developed significant expertise in LNG as a Maritime fuel and ensures that our vessels operate safely and efficiently using this environmentally superior fuel.”
Applied CryoTechnologies, Inc. (ACT) is the premier equipment supplier for cryogenics in North America. ACT is proud to be the first to market with this type of bunkering equipment for the marine industry. Leveraging ACT’s innovative style and unrivaled experience in LNG equipment is sure to bring success to any LNG fueling project.
Pivotal LNG brings liquefied natural gas to companies and industries throughout the United States through reliable, flexible and cost-effective solutions.
TOTE Maritime provides safe, reliable transportation at the fastest speed possible for the Puerto Rican and related Caribbean trades.
Meanwhile, Crowley Puerto Rico Services, Inc., Jacksonville, has selected Eagle LNG Partners as LNG supplier for the company’s new LNG-powered, Commitment Class ships, which will be delivered in 2017 for use in the U.S. mainland to Puerto Rico trade. To support Crowley’s LNG needs, Eagle LNG will build an LNG plant offering a capacity of 200,000 gallons per day (87,000 gallons per day initially) in Jacksonville. The state-of-the-art facility is slated to be operational by early 2017. The decision to partner with Eagle LNG was made by Crowley in part because of the companies’ shared commitment to the environment.
“Crowley is proud to take a leadership position in the industry’s shift to cleaner-burning, natural gas fuel solutions,” said Crowley’s John Hourihan, senior vice president and general manager, Puerto Rico services. “The partnership with Eagle LNG is an important first step in developing sustainable supply infrastructure to ensure these highly technical, environmentally friendly vessels operate to their full capability.”
“The marine sector represents a significant opportunity for LNG fueling in the U.S., and Eagle LNG is well-positioned to build the necessary infrastructure and provide the specialized logistics to facilitate this energy transformation,” said Dick Brown, CEO, Eagle LNG. “It takes companies like Crowley to lead that wave of change. Eagle LNG is proud to work with such a pioneering organization.”
“This project is an important investment in our community from both economic and environmental perspectives,” said Jacksonville Mayor Lenny Curry. “It clearly demonstrates the leadership role our region is playing in LNG development and progression, while strengthening our commitment to leaving a smaller footprint through cleaner-burning fuel.”
The supply agreement between Eagle LNG and Crowley will provide LNG fuel for the El Conqui and Taino, which are expected to be in service in the second quarter and fourth quarter of 2017 respectively. The Jones Act ships will replace Crowley’s towed triple-deck barge fleet, which has served the trade continuously and with distinction since the early 1970s. These new ships, will offer customers fast ocean transit times, while accommodating the company’s diverse equipment selection and cargo handling flexibility – benefits customers have enjoyed for nearly 60 years. The LNG plant is separate from the previously announced Eagle LNG Federal Energy Regulatory Commission (FERC) export terminal located along the St. Johns River, in Jacksonville, which will continue to focus on export markets in the Caribbean and Atlantic Basin.
DUAL FUEL BULKERS BUILT TO NEW DNV GL CLASS
ESL Shipping’s new dual-fuelled bulk carriers will not only be the first large LNG-fuelled bulkers, but the first vessels constructed to the new DNV GL rule set. Due for delivery in early 2018, the two highly efficient 25,600 dwt vessels are optimized for trading in the Baltic Sea region.
“It is fitting that the first vessels that will be constructed to the most forward looking set of classification rules are themselves at the cutting edge of maritime innovation,” says Knut Ørbeck-Nilssen, CEO of DNV GL – Maritime. “We have created these rules to be ready for the future and we have long pioneered the use of LNG as a ship fuel. To see these two come together in a double first for the industry is a remarkable moment. We look forward to working with ESL, Deltamarin, Sinotrans & CSC Qingshan Shipyard and all the project partners to make this project a success.”
“We are proud to be the world’s first shipyard applying the new and innovative DNV GL rules for a newbuilding, just two months after DNV GL has launched its new rules in October this year,” said Liu Guangyao, Deputy General Manager of Sinotrans & CSC at the Marintec China Trade Fair recently. “We appreciate the support that DNV GL has committed to provide on the project during both the design and construction phase, especially in a project with many advanced extra class notations. We are looking forward to a close cooperation and a successful delivery.”
Featuring the Deltamarin B.Delta26LNG design, the two highly efficient ships will feature dual-fuel main and auxiliary machinery, resulting in CO2 emissions per ton of cargo transported half that of present vessels. The bulk carriers will be built to the new DNV GL rules for general dry cargo ships with DNV GL ice class 1A and will have type C LNG tanks of approximately 400 m3 capacity enabling bunkering at several terminals within the Baltic region. The B.Delta26LNG has a shallow draft of maximum 10 m, an overall length of 160 m, and a breadth of 26 m.
“We are very excited to have been selected to take part in this ground breaking project,” says Morten Løvstad, Business Director Bulk Carriers at DNV GL. “Being asked to work with such an innovative team as the classification partner is a testament to the creativity and hard work that so many colleagues at DNV GL have invested in the new rule set. These vessels will set new standards for efficiency and environmental performance. They are an important step forward in showing how shipping can be a force for sustainability today and in the future.”
FIRST PURE LNG FERRY FOR GERMANY
Germany’s first LNG-fueled ferry, the MS Ostfriesland, has now been operating for AG Ems between Emden and Borkum Island on the ecologically sensitive Wadden Sea, since June 2015.
Originally built in 1985, the vessel was converted to dual fuel propulsion in a conversion that saw it fitted with a complete new aft end, construction of which got underway at German shipyard Brenn – und Verformungstechnik Bremen GmbH while the ship remained in service.
The new aft section, which extended the vessel’s length from 78.7 m to 93 m, houses the new machinery space and LNG fuel system/tank with the vessel now being propelled by two electrically powered Schottel STP Twin thrusters, each rated at 1,150 kW at 1,480 rpm.
While the prime movers are two 6-cylinder Wärtsilä 20DF dual-fuel generating sets, for navigating within harbors, the vessel uses two Mitsubishi auxiliary generators.
Switching to LNG fuel means providing against various unlikely malfunctions, such as an ignition failure resulting in an unburned mixture of gas and air in the exhaust. This could cause uncontrolled combustion and an increase in pressure the next time ignition takes place, putting a substantial strain on the pipe components.
To protect against this, the Mitsubishi auxiliary generators are protected by a Q-Rohr flameless venting system by German manufacturer Rembe GmbH that ensures that the reaction is vented directly at the exhaust.
Both the flame and the pressure are absorbed by the stainless steel mesh filter of the Q-Rohr, providing optimum protection for the pipe components and the environment.
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.
Visionary, consistent, and determined—these adjectives are just some of the many that can be used to describe Tara Russell, Founder and President of Fathom, a new cruise brand launched under the Carnival Corporation & plc umbrella. What makes Fathom unique is its mission of providing a new kind of cruising experience to those on board—what it calls “social impact travel.”
From its logo to its leader, Fathom is a brand with its heart set on cruising with a well-intended purpose: Making the world a better place. Russell, for her part, has years of practice in leading the way for social change. Throughout her 20 years of working in both the global and private sector—she’s worked for Nike, Intel and General Motors—Russell has founded (or co-founded) a number of organizations meant to make the world (and its people) better.
Before joining Carnival Corporation, she founded and served as CEO of Create Common Good, a non-profit that puts “love in action,” by providing foodservice job training and job placement assistance to those with difficulties in finding employment—this enables the individual to become self-sufficient and financially independent.
Prior to that, she co-founded Jitasa, a global social venture that provides financial services, predominately accounting and bookkeeping services, to the non-profit industry.
She also worked in Thailand for four years offering pro bono small business development training to non-governmental organizations (NGOs). During her stay in the country, she co-founded NightLight, an international organization that addresses the complex issues surrounding human trafficking and prostitution—this included helping women seek freedom from sexual exploitation in Thailand where a large number of the world’s sex trade takes place.
According to the U.S. Department of State’s 2015 Trafficking in Persons Report, there are “an estimated three to four million migrant workers in Thailand, most from Thailand’s neighboring countries.” Meanwhile, “Sex trafficking remains a significant problem in Thailand’s extensive sex trade—often in business establishments that cater to demand for commercial sex.” NightLight offers an outreach program of sorts, where it helps build support networks, provides intervention and assistance to those in need; and offers alternative job opportunities, training, and physical, spiritual and emotional development.
As for her approach and transition to Fathom, Russell explains, “Having worked in both the private sector at Fortune 50 companies and in the non-profit social impact space, I saw a real opportunity to bring the two together to create [an] authentic and enduring social impact.”
She adds, “The business leaders at Carnival Corporation shared my vision. So we worked together to find ways to harness the resources of the world’s largest cruise line and combine [it] with the talents and hearts of those working with social entities.”
The wheels started turning for Fathom during the summer of 2013 when CEO of Carnival Corporation Arnold Donald and Russell met. “The executive leadership of Carnival Corporation had been eager to find ways (where possible) to harness the scope and scale of the company’s global resources for social impact,” explains Russell. “As such, Carnival Corporation had been exploring unique opportunities—both tailored to individual brands and beyond—to integrate social impact into its operations.”
After their meeting in 2013, Russell and Donald spent the better part of 2014 “building the vision, designing the product, developing the impact travel concept, and testing and sizing the market.”
“Fathom’s vision,” explains Russell, is to “harness and leverage Carnival Corporation’s assets for the greatest possible transformative impact, globally. We will send 704 travelers on every trip—thousands of travelers a year—to communities in need, providing tremendous scale that will sustain several ongoing programs.
“This continuity of support—different travelers going to the same community on a regular basis—is what will make a major difference in the lives of people and communities,” adds Russell.
Going in deep
When Fathom was launched in June 2015, Carnival specifically chose the United Palace Theater in the Washington Heights area of Manhattan, NY, to announce the new brand to the world.
The setting for the launch was apropos as it was announced then that the Dominican Republic would be the first destination for Fathom’s impact travel. Washington Heights is a predominately Dominican neighborhood, with most of its residents moving to the area directly from the Dominican Republic.
The brand’s ship, the 704-passenger Adonia, will make its first trip to the Dominican Republic this coming April. Prior to joining Fathom, the 592 ft Adonia was the smallest ship in the P&O fleet. P&O is also a part of the Carnival Corporation brand.
Why the Dominican Republic? Fathom says that while the country is stunningly beautiful, it’s also a country very much in need. According to the U.S. Central Intelligence Agency’s (CIA) “The World Factbook,” 41.1% of the population in the Dominican Republic is living under the poverty line.
Fathom notes that the average household income is approximately $6,000 a year, more than three million Dominicans have no access to piped water, and education is incredibly underfunded—thus perpetuating the cycle of poverty with each new generation.
To see how Fathom could help, Russell explains that she and Donald met with “key Dominican Republic community leaders to understand the need and how best to leverage the existing infrastructure of local organizations to become involved in creating enduring impact in our first destination market.”
Among these key community leaders are Fathom’s “lead impact partners,” Entrena and the Instituto Dominicano de Desarrollo Integral, Inc. (IDDI). Entrena and IDDI helped Fathom “understand the specific needs in the northern region of the country and identified the areas of most need where Fathom travelers could provide meaningful, long-term and sustainable impact,” says Russell.
“We then collaborated with them to develop detailed projections regarding the scale of impact we intend to create together with our partners, our travelers and our communities.”
Entrena and IDDI are both already established organizations in the Dominican Republic. Entrena specializes in training, education and social entrepreneurship. Meanwhile IDDI’s primary objective is to contribute to the transformation of the human being, families and communities, so that they can live a productive and healthy life.
By partnering with entities such as these—that already have a system and structure in place—Fathom ensures that its travelers (the term it uses for its passengers) will be working within programs that are already making a difference in the region—and that the work will be continuous throughout the year—even as the travelers are different every week.
Fathom’s impact travel to the Dominican Republic is a seven-day experience, with three days working on the island.
Upon reaching the Dominican Republic, Fathom travelers will be immersed in a variety of projects—operated by Fathom’s local impact partners—focused on economic development, education and the environment.
Travelers will participate in activities such as supporting the reforestation efforts in the region, cultivating cacao plants, supporting local youths learn/practice English, and assisting local women’s cooperative in producing artisan chocolates—just to name a few.
Fathom projects that its impact travel work with its partners, travelers and communities could lead to higher English proficiency through Student English Learning—this will help with employment opportunities; greater access to high-quality recreational enrichment activities for students during the school day; an increase in local entrepreneurship; the planting of 20,000+ trees which will lead to more nutrient rich soil and higher agricultural yields; and access to cleaner water, with the production of ceramic water filters—5,000+ filters are expected to be generated each year.
The route to Cuba
Shortly after Fathom’s launch, it was announced that the brand named its second destination: Cuba.
The U.S. Department of the Treasury granted approval to Carnival Corporation back in July. Since then, Carnival has been in active discussions with the Cuban government, according to Russell.
Cuba has been closed off to U.S. travelers by sea for more than half a century. And while a number of operators are jumping on the Cuba (mostly ferry) bandwagon—Fathom promises an entirely soul-enriching experience for both its travelers and the Cuban people.
“The overarching objective of our visiting Cuba will be to connect to the heritage of that country through an immersive program that encourages cultural, artistic, and faith-based exchanges between American and Cuban citizens,” says Russell.
“In Cuba, the focus of our travel is defined by the Cuban Assets Control Regulations and authorized American travelers must engage in Cultural, artistic, religious and humanitarian exchanges with the Cuban people. There, we will collaborate with approved licensees or General licensees on initial itinerary development to ensure proper compliance is programmed and maintained throughout each voyage,” explains Russell.
According to Fathom, the itinerary in Cuba will include “diverse on-the-ground immersion experiences,” with activities including “engaging artists, experiencing the local food and music culture, meeting local Cuban business professionals, understanding micro-enterprise and the agricultural sector, connecting to the education system and youth.”
Pending approval from the Cuban government, Fathom could set out to Cuba as early as this May.
What comes next?
When asked what countries Fathom has next on its agenda, Russell says the goal for now is to focus on its work in the Dominican Republic and Cuba, ensure success in the regions, and establish long-term partners in each country.
Wherever Fathom goes, however, the goal will be the same: to leave that place and its people, better off.
“Ten years from now,” says Russell, “I’d love to believe that we have helped eradicate unemployment in the Dominican Republic and in many of the places that we visit. I want to believe we have helped to give children and youth the tools to fall in love with education, have helped to improve the environment and health outcomes that have been a part of making people generally healthier. My hope and intent is that the locations we [Fathom] travel to, flourish.”
Fathom is a cruise line intent on changing the world—its led by a woman who wears her heart on her sleeve, and is supported by a parent company that wants to have a positive impact on the global community. Fathom proves its purpose through its promises, through its partnerships and its actions. Even its logo is a reminder of its intention, take a glance at it and you’ll see what Fathom is all about—it “signifies open arms that embrace the world and serves as a reminder that the Fathom brand stands for love in action and transformative travel,” asserts Russell.
To join the movement and help create positive impact, visit www.fathom.org
MARINE LOG recently had an opportunity to sit down with Lynne Griffith, the new Assistant Secretary of Washington State Ferries. In the fall of 2014, Griffith became the first woman to hold the position and is responsible for guiding the 1,900 employees that work at the iconic Washington State Ferries to meet their operational, budgetary, and safety goals.It’s no small task: Washington State Ferries is the largest ferry operation in the U.S., carrying about 22 million passengers annually and about 10 million vehicles between 20 different ports in and around Puget Sound.
Some of the key challenges Griffith faces are renewing the WSF fleet—which has an average age of about 35 years old— modernizing the system’s terminals, and investing in new IT systems to improve efficiency and communications with riders. Like most state-run agencies around the country, the Washington State Department of Transportation was hit hard by the recession, which means a loss of revenue and cuts to services across the board. About 70 percent of the ferry system’s operations are funded by the fare box. By comparison taxpayers in New York fund the entire cost of the Staten Island Ferry.
Although she doesn’t have a maritime background, Griffith is well suited for the role with 35 years in the transportation industry, including her role as CEO at Pierce Transit in Washington State, where she had to face similar budgetary constraints and operational challenges.“I’ve always been connected to public service or serving members of the public through transportation. It’s not quite like the movie, Trains, Planes, and Automobiles, but I’ve really done planes, trains, buses, and boats,” jokes Griffith.She started her professional career at 18 working at a small airline. “I used to dispatch airline equipment from parts of the network within the airline. It was just like dispatching buses or getting crews and vessels ready to go in the morning. There’s a very strong similarity in terms of the technical aspects of getting the mode of transportation ready to serve the public.”
Griffith was invited to participate in the selection for the new WSF head by the state Secretary of Transportation 2014. “But I said no. I couldn’t see the connection. I was getting ready to retire.” What changed Griffith’s mind were two high profile ferry incidents. The first was in July 2014 when the 2,500-passenger, 202-vehicle ferry Tacoma lost power on the Seattle-Bainbridge Island route, which caused lengthy delays for passengers crossing Puget Sound.The second occurred on August 15, 2014, when hundreds of Seahawks fans flocked to the ferry to attend a preseason game at CenturyLink Field. After setting sail for Seattle, the Cathlamet had to return to the Bremerton dock to unload 484 passengers because of fears of overloading. However, an official state inquiry ordered by Washington State Department of Transportation Secretary Lynn Peterson found that the vessel was not overloaded, but rather that the count was wrong due to a faulty counting device.
“After those incidents, it dawned on me that Washington State Ferries needed to focus on its operations. And that’s my background—operations. Whether it’s the airline industry or the transit industry, I have always been on the operating end.” Griffith knew she could help. She contacted the state and threw her name back into the hat.Hired back in September 2014, Griffith knew she had to quickly become deeply engaged in the organization in order to assess what exactly needed fixing. That meant learning what agents do at the terminal, deck hands on board, captains in the pilothouse and engineers in the engine room.
“That was the first smart thing I did. The willingness of employees to be candid and open with me really helped me understand what’s working, what’s not working, so that wherever I was going to apply to my leadership role in this organization, I was going to apply it to the right areas. They helped me tremendously to understand where the attention is needed.”As part of the learning process, she took ordinary seaman training. “That was a real eye opener in terms of just how tough their jobs are. They have to be prepared for everything from fire fighting to CPR.”
“As a leader, you have to understand what your employees do and how good they have to be at their jobs, and what their needs are.” Griffith says that insight provides her with the valuable raw knowledge to inform state legislators where funding is needed whether it is for training, maintenance or new hires.“It is hard to sell, that message, when you are in a distressed financial environment. Of course, everyone in the public sector has been grappling with that for a very long time. The recession is long over, but to rebuild that capacity … is a big climb up a very steep ladder,” she adds.
A high priority for Griffith has been a renewal of the aging fleet, as well as renovations to two of the system’s busiest terminals. Washington State Ferries signed a Notice to Proceed giving shipbuilder Vigor Industrial the go ahead to get started on work on the fourth vessel in the 144-vehicle capacity, Olympic Class ferry series and work will begin this month.
The new ferry is funded through the Connecting Washington transportation package, which is being paid for through a hike in state gasoline taxes.
WSF is building the Olympic Class ferries to replace some of the fleet’s oldest vessels. The Olympic Class design is based on the Issaquah class, the most versatile vessel in the WSF fleet.
Two of four are in service, the third will be complete in 2017 and the fourth is scheduled for completion in 2018. The first vessel, Tokitae, joined the Mukilteo/Clinton route in June 2014. The second, Samish, was put into service on the Anacortes/San Juans Island route in June 2015. Chimacum, the third ferry, will replace one of the older vessels on the Seattle/Bremerton route in 2017.
The budget to build the vessel is $122 million, and delivery is scheduled for mid-2018.“I actually think that the build program needs to move on beyond the Olympic Class. Right on the back of the group of new vessels, we have a whole group in our existing fleet that is going to hit 60 years old. We need to be thinking about how we are going to pursue those replacements. What are those vessels going to look like? Are they the same Olympic Class vessel or are they going to be different. We are going to have to think about the funds for those vessels, so we don’t have an interruption in the build program.”
“Technology changes so quickly. Do we need to build ferries that last 60 years or should they be something else? Vessels that are built to last 60 years are more expensive to construct. I don’t know what the answer is, but we have to open ourselves up to thinking about those things.” She notes that some of the older vessels will have to be retained as surge or back up capacity.
WSF, however, will have to compete with the Coast Guard, Navy, and a number of commercial operators for access to regional shipyards, whether it is for drydockings or dockside repairs. Griffith is working closely with Matt Von Ruden, the new Director of Vessels at WSF, on innovative ideas to improve operations.
“Anything from expanding engine room training to collaborating with our shipyard partners in finding solutions for getting our vessels in for inspection or for those big fixes.“Looking at it as a newcomer, I don’t think that replacing every terminal, building every new vessel or adding to the fleet is financially feasible right now. The mistake is that we report that we can do more and more and more without the funding dynamics changing.
“The public is never going to tolerate that much tax. So how can we be smart? What technology can we use? What practical design can we use that gives people what they need?“If you look at it differently and open up your mind—we’re already thinking about different types of fuel that could offer savings for the state if there would be a fuel spike again down the road, about how we can fix and modernize terminals instead of rebuilding at the maximum cost—we can get there with a balance of what the public thinks is acceptable and what we can afford.”
Griffith sees her port engineers, captains, deck hands, and mates as a valuable source of new ideas. “We have one staff chief who thought of an idea to save about $2 million per year just on his route.” That involved modifying operational practices as the ferry came into dock. Instead of using all engines before docking, using just three engines to slow the vessel as it approaches the dock, then two engines when docking. The practice cut the amount of fuel burned.
She also worked with the union to provide more transparency in the service’s Ferry Alerts. With more informative alerts, riders can now make better decisions on whether they should go to the dock or find alternate routes during service disruptions. “If we don’t give enough information, we just made an angry customer.” says Griffith.
While Washington State Ferries has shelved the idea of converting one of its older vessels to hybrid propulsion, it is moving ahead with the idea of burning Liquefied Natural Gas (LNG) as a marine fuel. Griffith would prefer incorporating the technology into a newbuild, but sees the benefits of converting an existing vessel to burn LNG.“There is a lot of apprehension about LNG. There have been questions about whether converting a vessel is practical. What I see is that our experts are going to learn something in that process. We will learn about logistics and how the vessels would be fueled so that, if we make a major investment in a new vessel, we would be a little bit smarter.”
Besides renewing its fleet, WSF also needs to attract new blood to its organization. Griffith points out that the average age of pilot house personnel is 65 and the average age of engine room personnel is 55. “We need a mentoring program right now before we lose the talent. We need to work with local maritime schools and conduct an outreach to local mariners.
“The state does not pay competitively to the private sector. We have to build a package of information to convey the idea of why they should come to work for us. Some of the key benefits of working at Washington State Ferries, however, is that employees have an improved quality of life; the ability to go home at night to their families and long-term security.”
MARINE LOG recently had an opportunity to sit down with Lynne Griffith, the new Assistant Secretary of Washington State Ferries. In the fall of 2014, Griffith became the first woman to hold the position and is responsible for guiding the 1,900 employees that work at the iconic Washington State Ferries to meet their operational, budgetary, and safety goals.It’s no small task: Washington State Ferries is the largest ferry operation in the U.S., carrying about 22 million passengers annually and about 10 million vehicles between 20 different ports in and around Puget Sound.
Some of the key challenges Griffith faces are renewing the WSF fleet—which has an average age of about 35 years old— modernizing the system’s terminals, and investing in new IT systems to improve efficiency and communications with riders. Like most state-run agencies around the country, the Washington State Department of Transportation was hit hard by the recession, which means a loss of revenue and cuts to services across the board. About 70 percent of the ferry system’s operations are funded by the fare box. By comparison taxpayers in New York fund the entire cost of the Staten Island Ferry.
Although she doesn’t have a maritime background, Griffith is well suited for the role with 35 years in the transportation industry, including her role as CEO at Pierce Transit in Washington State, where she had to face similar budgetary constraints and operational challenges.“I’ve always been connected to public service or serving members of the public through transportation. It’s not quite like the movie, Trains, Planes, and Automobiles, but I’ve really done planes, trains, buses, and boats,” jokes Griffith.She started her professional career at 18 working at a small airline. “I used to dispatch airline equipment from parts of the network within the airline. It was just like dispatching buses or getting crews and vessels ready to go in the morning. There’s a very strong similarity in terms of the technical aspects of getting the mode of transportation ready to serve the public.”
Griffith was invited to participate in the selection for the new WSF head by the state Secretary of Transportation 2014. “But I said no. I couldn’t see the connection. I was getting ready to retire.” What changed Griffith’s mind were two high profile ferry incidents. The first was in July 2014 when the 2,500-passenger, 202-vehicle ferry Tacoma lost power on the Seattle-Bainbridge Island route, which caused lengthy delays for passengers crossing Puget Sound.The second occurred on August 15, 2014, when hundreds of Seahawks fans flocked to the ferry to attend a preseason game at CenturyLink Field. After setting sail for Seattle, the Cathlamet had to return to the Bremerton dock to unload 484 passengers because of fears of overloading. However, an official state inquiry ordered by Washington State Department of Transportation Secretary Lynn Peterson found that the vessel was not overloaded, but rather that the count was wrong due to a faulty counting device.
“After those incidents, it dawned on me that Washington State Ferries needed to focus on its operations. And that’s my background—operations. Whether it’s the airline industry or the transit industry, I have always been on the operating end.” Griffith knew she could help. She contacted the state and threw her name back into the hat.Hired back in September 2014, Griffith knew she had to quickly become deeply engaged in the organization in order to assess what exactly needed fixing. That meant learning what agents do at the terminal, deck hands on board, captains in the pilothouse and engineers in the engine room.
“That was the first smart thing I did. The willingness of employees to be candid and open with me really helped me understand what’s working, what’s not working, so that wherever I was going to apply to my leadership role in this organization, I was going to apply it to the right areas. They helped me tremendously to understand where the attention is needed.”As part of the learning process, she took ordinary seaman training. “That was a real eye opener in terms of just how tough their jobs are. They have to be prepared for everything from fire fighting to CPR.”
“As a leader, you have to understand what your employees do and how good they have to be at their jobs, and what their needs are.” Griffith says that insight provides her with the valuable raw knowledge to inform state legislators where funding is needed whether it is for training, maintenance or new hires.“It is hard to sell, that message, when you are in a distressed financial environment. Of course, everyone in the public sector has been grappling with that for a very long time. The recession is long over, but to rebuild that capacity … is a big climb up a very steep ladder,” she adds.
A high priority for Griffith has been a renewal of the aging fleet, as well as renovations to two of the system’s busiest terminals. Washington State Ferries signed a Notice to Proceed giving shipbuilder Vigor Industrial the go ahead to get started on work on the fourth vessel in the 144-vehicle capacity, Olympic Class ferry series and work will begin this month.
The new ferry is funded through the Connecting Washington transportation package, which is being paid for through a hike in state gasoline taxes.
WSF is building the Olympic Class ferries to replace some of the fleet’s oldest vessels. The Olympic Class design is based on the Issaquah class, the most versatile vessel in the WSF fleet.
Two of four are in service, the third will be complete in 2017 and the fourth is scheduled for completion in 2018. The first vessel, Tokitae, joined the Mukilteo/Clinton route in June 2014. The second, Samish, was put into service on the Anacortes/San Juans Island route in June 2015. Chimacum, the third ferry, will replace one of the older vessels on the Seattle/Bremerton route in 2017.
The budget to build the vessel is $122 million, and delivery is scheduled for mid-2018.“I actually think that the build program needs to move on beyond the Olympic Class. Right on the back of the group of new vessels, we have a whole group in our existing fleet that is going to hit 60 years old. We need to be thinking about how we are going to pursue those replacements. What are those vessels going to look like? Are they the same Olympic Class vessel or are they going to be different. We are going to have to think about the funds for those vessels, so we don’t have an interruption in the build program.”
“Technology changes so quickly. Do we need to build ferries that last 60 years or should they be something else? Vessels that are built to last 60 years are more expensive to construct. I don’t know what the answer is, but we have to open ourselves up to thinking about those things.” She notes that some of the older vessels will have to be retained as surge or back up capacity.
WSF, however, will have to compete with the Coast Guard, Navy, and a number of commercial operators for access to regional shipyards, whether it is for drydockings or dockside repairs. Griffith is working closely with Matt Von Ruden, the new Director of Vessels at WSF, on innovative ideas to improve operations.
“Anything from expanding engine room training to collaborating with our shipyard partners in finding solutions for getting our vessels in for inspection or for those big fixes.“Looking at it as a newcomer, I don’t think that replacing every terminal, building every new vessel or adding to the fleet is financially feasible right now. The mistake is that we report that we can do more and more and more without the funding dynamics changing.
“The public is never going to tolerate that much tax. So how can we be smart? What technology can we use? What practical design can we use that gives people what they need?“If you look at it differently and open up your mind—we’re already thinking about different types of fuel that could offer savings for the state if there would be a fuel spike again down the road, about how we can fix and modernize terminals instead of rebuilding at the maximum cost—we can get there with a balance of what the public thinks is acceptable and what we can afford.”
Griffith sees her port engineers, captains, deck hands, and mates as a valuable source of new ideas. “We have one staff chief who thought of an idea to save about $2 million per year just on his route.” That involved modifying operational practices as the ferry came into dock. Instead of using all engines before docking, using just three engines to slow the vessel as it approaches the dock, then two engines when docking. The practice cut the amount of fuel burned.
She also worked with the union to provide more transparency in the service’s Ferry Alerts. With more informative alerts, riders can now make better decisions on whether they should go to the dock or find alternate routes during service disruptions. “If we don’t give enough information, we just made an angry customer.” says Griffith.
While Washington State Ferries has shelved the idea of converting one of its older vessels to hybrid propulsion, it is moving ahead with the idea of burning Liquefied Natural Gas (LNG) as a marine fuel. Griffith would prefer incorporating the technology into a newbuild, but sees the benefits of converting an existing vessel to burn LNG.“There is a lot of apprehension about LNG. There have been questions about whether converting a vessel is practical. What I see is that our experts are going to learn something in that process. We will learn about logistics and how the vessels would be fueled so that, if we make a major investment in a new vessel, we would be a little bit smarter.”
Besides renewing its fleet, WSF also needs to attract new blood to its organization. Griffith points out that the average age of pilot house personnel is 65 and the average age of engine room personnel is 55. “We need a mentoring program right now before we lose the talent. We need to work with local maritime schools and conduct an outreach to local mariners.
“The state does not pay competitively to the private sector. We have to build a package of information to convey the idea of why they should come to work for us. Some of the key benefits of working at Washington State Ferries, however, is that employees have an improved quality of life; the ability to go home at night to their families and long-term security.”
