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Propulsion: Powering up your choices

The International Workboat Show in New Orleans, LA, offers the marine industry an ideal time to not only assess the current state of the industry, but also an opportunity to view some of the newest technologies, products, and services. With stricter emissions regulations coming into play in 2016 and operators strongly focused on efficiency and the bottom line, this year’s show saw a number of new power and propulsion technologies unveiled. GE Marine, for example, extended its EPA Tier 4 engine series to include 16- and 12-cylinder V-models, an 8-cylinder inline model, and a 6-cylinder inline model that is currently planned for development.

GE says the engine series meets the Environmental Protection Agency’s (EPA) Tier 4 emission standards without the use of urea after-treatment, while maintaining fuel efficiency and service intervals. In addition, the engines have a faster response time to load steps, and a Maximum Continuous Rating (MCR) that is 12 percent higher than their Tier 3 compliant predecessors. 

Coastal tug and barge operator Reinauer Transportation purchased two 12V250MDC Tier 4 diesel engines for its new Articulated Tug Barge (ATB) unit under construction at Senesco Marine in Kingstown, RI. One of the engines was displayed at GE’s booth at the Workboat Show.

“We chose the new GE Marine engines because we like their robust design and component configuration,” says Christian Reinauer. “The engine closely matches the footprint of our current vessel design. This limits the amount of re-engineering while meeting Tier 4 emissions requirements without the complications of urea after-treatment.”

GE’s Marine Product Manager Rob Van Solingen says the engines offer several advantages as compared with engines that use an SCR-based emission control system.

He says that the GE Tier 4 engines are less complex, allowing ship designers to develop engine rooms that make the most efficient use of space. This reduction in complexity also translates into improved labor efficiency at shipyards.

The engines also offer space and weight savings, since there is no large SCR reactor system in the exhaust piping of each engine nor any urea tank, dosing equipment, monitoring/control systems, and related piping, and air supply system required.

“Depending on size and urea quantities, space and weight savings of the engine and complete SCR system with all components and urea tanks can save up to 75% on each when compared to the GE T4 diesel engine,” says Van Solingen.

In addition, says Van Solingen, “The EGR system is designed to not require any special maintenance between the normal scheduled overhaul intervals for our engines.”

Other U.S.-based customers Harvey Gulf International Marine and Oceaneering have also ordered 12V250MDC Tier 4 engines to meet stricter EPA emissions standards. Two 12V250MDC Tier 4 diesel engines will power Harvey Gulf’s new Robert Allen designed Multi-Purpose Field Support Vessel, currently under construction at Eastern Shipbuilding Group in Panama City, FL.

Meanwhile, Oceaneering has ordered five 12V250MDC Tier 4 diesel engines for its new Inspection, Maintenance and Repair (IMR) vessel MSV Ocean Evolution under construction at BAE Systems in Mobile, AL.

NEW ENGINE FROM MAN
Also on display at the WorkBoat Show was a new inline six-cylinder diesel engine range for workboats, ferries, fishing trawlers, and pilot boats based on the MAN D2672 diesel engine from MAN Engines. Offered in a range of outputs from 323 kW to 588 kW (440 to 800 hp), the basic six-cylinder engine has been proven in a wide range of on- and off-road machinery since it was first introduced in 2007. Its robustness and reliability in workboats has also been demonstrated in extensive field trials over several thousand hours of use in ferries, pilot boats and high-speed catamarans.

The modern common rail injection system used in the D2676, with fuel pressures up to 1,800 bar, ensures high mean pressures and optimized combustion. This increases on-board comfort due to reduced vibration and noise emissions. The inclusion of a Miller or Atkinson camshaft has helped to achieve an average 10% reduction in fuel consumption compared to the engine’s predecessors.

As part of this improvement in fuel consumption, all engines also comply with the current strict EPA emissions.

The new MAN D2676 marine diesel engines replace the predecessor models D2866 and D2876.

The new D2676 engines also offer the wide torque plateau that is characteristic for MAN marine engines. The 323 kW (440 hp) power unit provides 1,950 Nm of torque between 1,200 and 1,600 rpm for heavy operations, while the 588 kW (800 hp) high-performance model manages to generate 2,700 Nm between 1,200 and 2,100 rpm for light operations. This ensures maximum torque over a broad engine speed range at the lowest specific fuel consumption.

SCANIA MAKES IN ROADS
Scania has been making inroads in the marine propulsion sector because of its compact, proven engine platforms. Some recent installations in the U.S. Gulf of Mexico include the high-speed crewboat Fourchon Runner, which is powered by quadruple Scania 16L engines for a total of 2,400 hp.

Naiad Inflatables recently delivered the Karankawa, a twin-screw pilot vessel for the Matagorda Bay Pilots of Texas.  The pilot boat has two Scania DI13 77M main engines, with Twin Disc MGX-5114A gears and ZF controls. It employs shaft propulsion with driveline components from H&H and Michigan Wheel propellers. The pilot boat has a top speed is 33 knots.

At the Workboat Show, Scania showcased its Tier 3 platform, including its 16-liter V8 and 13 liter inline engines.

Scania engines are all based on Scania’s new modular engine platform—well proven in the company’s truck and bus engines. Scania V8 engines are engineered to produce high power, while maintaining a size that is compatible for auxiliary equipment. The V design reduces the overall length of the engine and ancillaries can be effectively accommodated inside the footprint of the engine.

The output ratings for Scania’s newest Tier 3 version of the 16-liter marine propulsion engine range from 550 to 900 hp, with outputs between 550 to 1,000 hp available for use in international and exempt markets.

For auxiliary applications, the range for EPA Tier 3 is 468 kW – 553 kW, and the current range will continue to be offered between 430 kW – 596 kW for international and exempt markets. Scania also expects to see an increase in the output ratings of V8 engines used for keel-cooled applications.

The output ratings for Scania’s newest Tier 3 version of the 13-liter inline marine propulsion engine range from 250 – 675 hp, with outputs up to 750 hp available for use in international and exempt markets. For auxiliary applications the range for EPA Tier 3 is 269 kW – 426 kW.

Scania’s centrifugal oil cleaner effectively removes small particles from the lubrication oil, while reducing the size of the replaceable filter cartridge. The Scania saver ring, placed at the top of each cylinder liner, reduces carbon deposits on the edge of the piston crown and reduces cylinder liner wear.

In spite of higher performance and tighter emission levels, Scania has been able to increase maintenance and oil change intervals by 25% (now 500 hours) in comparison to its predecessor.

NEW CONCEPT: TWIN FINS
During a presentation for the trade press at the Workboat Show, Caterpillar highlighted the development of its Twin Fin Propulsion Systems. The initial Twin Fin Propulsion System was retrofitted on the seismic vessel Polarcus Naila at Shipdock in Amsterdam in March 2014.

“In the seismic business, seismic assets or the vessel is a huge workhorse,” says Peter Zickerman, Polarcus Executive Vice President. “About 85 percent of its lifetime, the vessel is under constant tow in various weather conditions. It is imperative that the reliability of the vessel and its propulsion system are top notch.”

The Twin Fin is designed for vessels that operate on a diesel-electric propulsion system. With thrusters, vessels can have more cargo capacity. With conventional propellers, operators benefit from added reliability and safety. Twin Fin offers the advantages of both. It offers higher thrust performance, reduced fuel consumption, and a better emissions profile.

According to Mattias Hansson, naval architect and sales manager at Caterpillar Propulsion, development of the Twin Fin Propulsion Systems started with the company’s partners in the third quarter of 2012 and a patent application was filed in the first half of 2013. Hansson points out that the Twin Fin Propulsion System also incorporates some green aspects, including, a water-lubricated stern tube, instead of an oil-lubricated system.

For the retrofit, the twin fins were prefabricated in about 15 days and readied for the Polarcus when she arrived at the shipyard.

“This new system provides an excellent course keeping stability for the ship—important for a scientific ship like this,” says Henning Kuhlmann, Managing Director, Becker Marine Systems. Becker Marine Systems supplied highly efficient flat rudders for the installation of the Twin Fins.

The payback period for the system is about three years based on fuel consumption savings, efficiency gains, improves environmental footprint, and improves reliability when operating in remote areas.

In the coastal market, Caterpillar is supplying two harbor tugs being built for Harley Marine Services, Seattle, WA, at Diversified Marine, Inc., Portland, OR.

Each of the Harley Marine tugs will be outfitted with Cat 3516 main engines—each rated at 2,575 hp at 1,600 rev/min—and two MTA 524-T azimuthing thrusters. The thrusters will have 95.5 in. diameter fixed-pitch propellers.

Cat Propulsion’s Emil Cerdier says the MTA-T thrusters deliver “excellence of economy and performance to the tug market.” The tugs will be delivered by Diversified Marine in 2017.

Z-DRIVES GO INLAND
While Z-drives are fairly commonplace in the tug market, they are a relatively new phenomena in the inland towboat market. While some were installed as early as the 1980s, Z-drives got a major boost in 2006, when Bill Stegbauer and Ed Shearer began exploring the use of alternative propulsion, including Z-drives in inland towboats. Stegbauer, then President of Southern Towing Co., eventually opted for a design that would use Z–drives in a series of 3,200 hp towboats.

There are now about two dozen towboats operating with Z-drives and more are under construction. One of the latest series of three 6,300 hp towboats designed by The Shearer Group that are being built at C&C Marine and Repair, Belle Chasse, LA, for SCF Marine Inc. As you might guess, Ed Shearer is the President of The Shearer Group.

The towboats will each have three Cummins QSK60-M diesel engines coupled to three Steerprop SP-25D z-drives. Cummins Mid-South is supplying the engines, while Karl Senner, LLC, Kenner, LA, is supplying the Z-drives.

The Z-drives were selected only after a through analysis. “We worked closely with the both the owner and the naval architect, but at the end of the day, the decision was up to the owner, SCF,” says Karl Senner.  “Tim Power and Myron McDonough were very diligent in the selection process, and we very much appreciate the in-depth approach and attention to detail.  We pride ourselves in offering robust products and superior support, factors that are critical while operating in the demanding environment of the inland waterways.  Steerprop units are designed for the longest time between overhauls on the market.  We have also been supporting inland operators since our company’s inception in 1967.  We are very excited about our relationship with SCF and we know it will continue for a long time to come.”

Steerprop SP25D Z-drives are designed for operating in harsh environments.  These specific drive units were selected and configured similar to that of ice-class applications.  Ice class design is Steerprop’s forte, having designed and supplied Z-drives on board three of the world’s largest mechanical Z-drive ice breakers build to date. 

These will be the first inland towboats in the U.S equipped with Steerprop Z-drives.  “The inland waterways have been a major focus of our business since 1967 for Reintjes gearboxes,” says Senner. “We pride ourselves in knowing what it takes to support the high demands of our inland customers, from sizing the appropriate equipment, to stocking spare parts, and providing quick service turnarounds. We are a family-owned and -operated company, flexible to respond to customer needs quickly and effectively.” 

“We are in discussions with multiple other inland projects, but not at liberty to discuss them at this point in time.”

Z-drives have begun to catch on with inland transportation operators because of the safety, operational efficiencies and fuel savings they offer. As operators of harbor tugs have long been aware, the Z-drive can deliver full thrust in any direction almost instantly, where as the conventional rudder set aft of the propeller and even the flanking rudders set ahead of the rudder as is the practice on many inland river towboats, will sacrifice time and power by the inefficient nature of the conventional drive and rudder system.

Due to the greatly improved maneuverability with Z-drives, tows do not need to slow down in turns and bends in the river. Trip times are reduced and require a lot less fuel. A study conducted by The Shearer Group, Inc. last year showed an average of 28% fuel savings and 11% trip time savings during a set of controlled experiments with unit tows when using Z-Drives instead of conventional shafts and rudders.

SCF Marine, Inc., St. Louis, MO, is part of SEACOR’s Inland River Services group. SCF Marine operates a fleet of hopper barges along the U.S. Inland River Waterways and South America, transporting agricultural, industrial, and project cargoes.

Thrustmaster of Texas, Inc., Houston, TX, says towboats with Z-drives are not significantly more expensive than conventional towboats. The initial cost of the Z-Drives is significantly offset by reduced construction costs and installation man-hours. Shipyards have reported that the cost of building Z-drive boats is actually less than building conventional boats.

One of the latest applications of Z-drive propulsion is in a fleeting boat by Carline Companies. Carline recently added the 68 by 34-foot towboat USS Cairo for barge fleeting on the lower Mississippi.

Designed by Christian Townsend of CT Marine and built by Raymond & Associates, the USS Cairo is fitted with two six-cylinder Tier 3 compliant Cummins QSK19 main engines turning Thrustmaster TH750MZ Z-drives with 57-inch propellers.

According to Thrustmaster of Texas, a Z-drive replaces the propeller, shaft, stern tube, marine gear, rudder and steering gear all with a single unit.  Z-drive azimuthing thrusters provide maximum thrust in any direction, independent of vessel speed, offering superior pinpoint maneuverability under all conditions. Rudders are completely eliminated. Rudder drag no longer exists. All of this can be done with a lot less power. A 1,500 hp Z-drive boat can replace a 2,000 hp conventional towboat and a 3,000 hp Z-drive boat can replace a 4,000 hp conventional towboat.

Kirby reports third quarter results

Consolidated revenues for the 2015 third quarter were $532.6 million compared with $680.7 million for the 2014 third quarter.

President and CEO David Grzebinski said the results were “largely in line with our expectations.”

“Demand across the majority of the products we carry in the inland marine transportation market remained stable with utilization in the 90% to 95% range,” he said. “Market pressure from inland tank barges shifting out of crude oil service led to continued modest pressure on contract renewal pricing. Spot prices were generally around contract price levels throughout the quarter. In the coastal marine transportation market, pricing for term contract renewals increased modestly. Our results also reflected the anticipated earnings impact from heavy coastal equipment shipyard activity.”

Mr. Grzebinski called market conditions in Kirby’s land-based diesel engine services business, as continuing to be challenging due to the decline in the price of crude oil and, consequently, the low utilization levels of the oilfield service industry pressure pumping fleet.

In the marine diesel engine services and power generation markets, results reflect continuing soft activity in the Gulf of Mexico oilfield service market, but otherwise stable levels of demand.

MARINE TRANSPORTATION

Marine transportation revenues for the 2015 third quarter were $418.3 million compared with $448.7 million for the 2014 third quarter. Operating income for the 2015 third quarter was $93.7 million compared with $112.1 million for the 2014 third quarter.

Kirby’s inland marine transportation business maintained tank barge utilization in the 90% to 95% range.

Demand for inland barge transportation of petrochemicals, refined products and black oil products, excluding crude oil, was consistent with the second quarter. Demand for barges moving crude oil and condensate during the quarter was lower both sequentially and year over year.

Operating conditions were challenging due to scheduled lock closures along the Gulf Intracoastal Waterway and high water conditions during the first part of the third quarter. Delays related to lock outages contributed to a 40% increase in delay days relative to the prior year quarter and a decline in ton miles. In addition to increased delay days, fuel prices, which were down 38% year-over-year, contributed to the year over year decline in revenue.

Demand in the coastal marine transportation market for the transportation of refined petroleum products, black oil, and petrochemicals was relatively stable, although demand for equipment for crude oil transportation declined sequentially and year over year.

Coastal fleet utilization remained in the 90% to 95% range and operating conditions were seasonally normal during the third quarter. A continued heavy shipyard schedule impacted operating results.

The marine transportation segment’s 2015 third quarter operating margin was 22.4% compared with 25.0% for the third quarter of 2014 as a result of higher labor costs, including pension, lower inland marine transportation rates, increased shipyard activity and higher depreciation expense in the coastal business, and the impact of fuel price escalators on inland marine affreightment contracts.

CASH FLOW

Kirby continued to generate strong cash flow during the 2015 first nine months with EBITDA of $437.5 million compared with $484.6 million for the 2014 first nine months. Operating cash flow was used in part to fund capital expenditures of $265.2 million for the 2015 first nine months, including $66.6 million for new inland tank barge and towboat construction, $75.2 million for progress payments on the construction of four new coastal articulated tank barge and tugboat units (“ATBs”), $3.4 million for progress payments on the construction of two 4900 horsepower coastal tugboats, $1.6 million for progress payments on the construction of a new coastal petrochemical barge and $118.4 million primarily for upgrades to existing inland and coastal fleets.

Additionally, Kirby spent $41.3 million to acquire six pressure barges in the first quarter and a total of $202.2 million on share repurchases in the first nine months of 2015.

Total debt as of September 30, 2015 was $810.4 million versus $716.7 million on December 31, 2014, and Kirby’s debt-to-capitalization ratio was 26.4%.

OUTLOOK

Mr. Grzebinski said, “Our earnings guidance range for the 2015 fourth quarter is $0.93 to $1.03 per share and we are revising our full year 2015 guidance range to $4.10 to $4.20 per share [down from the prior guidance of $4.10 to $4.35 per share]. In our inland marine transportation market, our fourth quarter outlook reflects continued modest pricing pressure. Utilization in Kirby’s inland fleet, however, is projected to remain in the 90% to 95% range. In our coastal marine transportation market, although we’ve seen some industry spot availability related to the uncertainty around crude supplies, we expect supply and demand to remain consistent with the first nine months of the year and Kirby’s fleet utilization to remain above 90%. Our guidance assumes normal fourth quarter operating conditions for both the inland and coastal marine transportation markets, including the winter cessation of most operations in Alaska.”

Mr. Grzebinski said demand is expected to remain weak in the land-based diesel engine services market and the offshore oil services portion of the marine diesel engine services market, but is expected to remain relatively stable in the marine and power generation markets.

CAPITAL SPENDING

Kirby expects 2015 capital spending to be in the $320 to $330 million range, an increase of $5 million from earlier capital spending guidance. Contributing to this is a shipbuilding contract entered into the quarter for a 35,000 barrel coastal petrochemical tank barge. The vessel will enter service under contract with an existing customer on delivery, expected in early 2017.

The capital spending guidance range includes approximately $70 million for the construction of 38 inland tank barges and three inland towboats, all expected to be delivered in 2015.The capital spending guidance range also includes approximately $100 million in progress payments on new coastal equipment, including two 185,000 barrel coastal ATBs, two 155,000 barrel coastal ATBs, two 4900 horsepower coastal tugboats and the new coastal petrochemical tank barge.The balance of $150 to $160 million is primarily for capital upgrades and improvements to existing inland and coastal marine equipment and facilities, as well as diesel engine services facilities.

Kirby gets what it expected

JULY 30, 2015 — “Our results for the second quarter were largely in line with our expectations,” commented President and CEO David Grzebinski as Houston headquartered tank barge Kirby Corporation (NYSE: KEX)

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