DECEMBER 18, 2015 — Shell Trading Rotterdam BV (Shell) has signed a time-charter agreement with Plouvier Transport NV and Intertrans Tankschiffahrt AG for 15 new inland dual-fuel barges, which will predominantly run
That other shoe has now dropped.
Maine’s U.S. Senators. Susan Collins, a senior member of the Defense Appropriations Committee, and Angus King, a member of the Senate Armed Services Committee, said today that the final omnibus spending bill includes $1 billion toward the construction of an additional DDG 51 destroyer that would “likely” be built at Bath Iron Works and would be in addition to those already included in the current multi-year procurement contract.
The following is the statement issued by the two senators — interestingly it contains no acknowledgement whatsoever that the funding was any kind of pre-arranged “done deal,” widely expected by defense industry insiders.
U.S. Senators Susan Collins, a senior member of the Defense Appropriations Committee, and Angus King, a member of the Senate Armed Services Committee, announced today that the final omnibus bill includes $1 billion toward the construction of an additional DDG-51 destroyer. This destroyer would likely be built at Bath Iron Works. This destroyer would be in addition to those already included in the current multi-year procurement contract. The omnibus bill will be considered by Congress later this week.
As a senior member of the Defense Appropriations Committee, Senator Collins requested the funding toward the additional DDG-51 to help meet combatant commander requirements for destroyers across the globe. Senator Collins successfully advocated for the inclusion of the $1 billion in funding in the Senate Defense Appropriations Bill. The House Defense Appropriations Bill, however, allocated no funding for this additional destroyer. Following weeks of negotiations between the House and Senate regarding the bill, the omnibus bill appropriates the full $1 billion in funding toward this additional ship, affirming the strategic importance of our Navy and shipbuilding programs.
“Our destroyers are the workhorses of the Navy, and I am proud of the highly skilled, hardworking men and women at Bath Iron Works who continue to deliver the highest quality ships for our nation’s sailors,” said Senator Collins. “The power of presence cannot be taken for granted or ignored, which is why the investments for this new destroyer funded by this bill are so necessary. In a time of serious budget constraints for our Defense Department, this important investment underscores the value and importance of our naval assets to the security and stability of our country. The equation is simple: fewer ships means less presence, less security at home, and less security around the world. I am so pleased that after many long hours of negotiations, this $1 billion in funding was included in the final omnibus bill.”
“Senator Collins is a relentless advocate for the hardworking men and women at Bath Iron Works, and I am thankful that she was able to secure additional funding for shipbuilding through her position on the Appropriations Committee,” said Senator King. “The funding for this additional ship is a major achievement for Maine and she deserves all the credit. There is no one I’d rather be working with on behalf of BIW, the State of Maine, and the men and women of our armed forces than Susan.”
Senators Collins and King work together in support of Bath Iron Works from their respective positions on the Appropriations and Armed Services Committees. As a member of Armed Services, Senator King works to ensure that critical shipbuilding funding is authorized through the National Defense Authorization Act, a yearly bill that authorizes funding and directs policy for the Department of Defense. And as a senior member of Appropriations, Senator Collins works to make sure the authorized funds are then actually appropriated to shipbuilding priorities. Through this joint effort, the Senators are able to prioritize shipbuilding throughout the funding process.
As of January 2015, the Navy had 279 ships, well short of the goal set by the Navy’s 30-year shipbuilding plan which calls for the United States to have 304 ships by 2020. This investment will help to grow the Navy’s shipbuilding capabilities at a time when the Navy fleet is in high demand to protect national security interests worldwide.
The ship was translated from the land level facility to the drydock which was slowly flooded until the ship was afloat.
“This is an exciting milestone and represents a significant amount of effort by our Navy and industry team to get the ship to this point” said Capt. Mark Vandroff, DDG 51 class program manager, Program Executive Office (PEO) Ships. “We’re looking forward to completing outfitting efforts, undergoing test and trials and delivering another highly-capable asset to our Fleet.”
“The last week of translating this quality ship across land and then launching it from our drydock is no small task, and our shipbuilders accomplished it in a very efficient manner,” said George Nungesser, Ingalls’ DDG 51 program manager. “All crafts and personnel making up this DDG shipbuilding crew have performed very well, and we were able to launch DDG 114 ahead of schedule. It’s a nice milestone to accomplish as we end the year.”
Ingalls has built and delivered 28 Arleigh Burke-class destroyers. There are currently four more under construction at Ingalls, including Ralph Johnson, which is scheduled to be christened in the spring of 2016.
John Finn (DDG 113) was christened in May and is expected to undergo sea trials in 2016. Paul Ignatius (DDG 117) celebrated her keel-authentication milestone in October and is expected to launch in the first half of 2017. Delbert D. Black (DDG 119) started construction in July and is scheduled for keel laying in the second quarter of 2016.
DDG 114 is named to honor Pfc. Ralph Henry Johnson, who was awarded the Medal of Honor for his heroic actions that saved others during the Vietnam War. Johnson shouted a warning to his fellow Marines and hurled himself on an explosive device, saving the life of one Marine and preventing the enemy from penetrating his sector of the patrol’s perimeter. Johnson died instantly. The Charleston, S.C., native had only been in Vietnam for two months and a few days when he was killed at the age of 20.
The highly capable Arleigh Burke-class destroyers are capable of simultaneously fighting air, surface and subsurface battles.
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UDS says the order is in line with its strategic plan to spearhead the development and operation of efficient, cost-effective diving and support vessels in the oil and gas industry.
Andy Warhol is planned to be delivered mid 2018 with the second vessel following at the end of 2018. Vessel number two is to be confirmed by end of April 2016.
Norway’s Marin Teknikk has entered into a contract with Wuchang Shipbuilding for delivery of design and engineering for both ships.
The vessels are being built to a newly developed MT6023 DSCV design, and will be equipped with an 18 men diving system for operations down to 300 m water depth.
The MT6023 DSCV has been developed for demanding operations worldwide. The vessel will have a length of 103 meters and a breadthof 23 meters, top class accommodations for 120 persons plus 18 divers, two heave compensated subsea cranes, one 150 ton offshore crane with depth capability to 3,000 m water depth, and one 20 ton offshore crane for operation down to 300 m water depth. In addition, it includes arrangement for two WROVs (unmanned remote operated submarines/robots) for operation down to 3000 meters water depth.
Marin Teknikk says it has designed a cost efficient and functional Diving & Construction vessel with high focus on safety for the crew/divers, and following up designing environment-friendly, modern and advanced multifunctional offshore vessels to compete in a market with very low oil and gas prices.
With more than 800 sq.m open work deck area with deck strength of 10 ton/sq.m and a smaller storage on top of dive hangar, the design creates a good platform for the vessels operation and function.
The vessels will be built according to DNV GL requirements, included the new SPS code; DNV GL + 1A1, EO, SPS, DYNPOS AUTR, DK(+), HELDK-SH, COMF-V(3), CLEAN DESIGN, DSV-SAT, DSV SURFACE, CRANE, ICE C, NAUT-OSV(A), BWM-T, REYCYCLABLE.
“I am pleased by the positive response by oil majors and major diving companies to the design of our diving support vessels, and it affirms our company is heading in the right direction to build quality and size-appropriate vessels catered for the market,” says UDS CEO Shel Hutton. “The current slowdown in the market allows us time to ensure our designs are optimized and customized for relevance in the oil and gas industry. I am thankful to our partners, and supporters, especially Marin Teknikk, DNV GL, and the shipyard, which have supported the company’s vision, and realizing our plans to build these vessels. With these vessels Ultra Deep follows up the company’s strategic focus, and will be a spear point in the market.”
With more than 20 years of engineering and maritime experience, Mr. McGee will oversee vessel design from preliminary conceptual design to complete Coast Guard and regulatory approvals.
Chesapeake Shipbuilding currently has on staff five naval architects and two engineers.
“McGee’s experience in various positions with the U.S. Coast Guard, including Hull Division Chief at the Marine Safety Center and former Officer in Charge, Marine Inspection, is a valuable asset we look forward to having on our team,” said Charles A. Robertson, President and CEO. “His rock solid reputation in the maritime industry will be critical for the retention and expansion of our customer base.”
Mr. McGee holds a bachelor’s degree in naval architecture and marine engineering from the U.S. Coast Guard Academy and a master’s of science in both naval architecture and marine engineering as well as aerospace engineering from the University of Michigan.
Chesapeake Shipbuilding designs and builds steel and aluminum commercial vessels primarily between 100 and 400 feet. The shipyard has upgraded its production capacity significantly in recent years, by acquiring additional land, building two new hull fabrication buildings and investing in additional automated equipment.
The industry was hit hard by the ending in 2007 of a subsidy scheme that had helped Indian shipyards edge up from the tenth place in the world shipbuilding league table (0.4% market share) in 2006, to fifth position (1.1% market share) in 2009. Since then, India has plunged to eleventh position (0.6% market share).
A plan for Indian yards to build three of nine LNG carriers required by state owned GAIL to import LNG from the U.S. has gone nowhere and yards have put all their focus on the defense sector.
India has been struggling to come up with a replacement for the previous scheme since 2008. Wednesday, the Cabinet approved a ten year, $600 million scheme
According to Indian business publication Mint, the financial assistance (it.s no longer called subsidy) to shipbuilders – both state-owned and private – will be for 10 years.
“The quantum of aid will come down by three percentage points every three years, starting with 20% for the first three years, 17% for the next three years, 14% for the next three years and 11% in the 10th year,” according to Mint.
The assistance will be given on the contract price or fair price, whichever is lower. The shipbuilding policy approved by the cabinet also includes granting tax incentives and infrastructure status for the shipbuilding and ship repair industry.
It further grants a so-called right of first refusal for Indian shipyards for government purchases, whereby local shipbuilders can take up state-funded contracts by matching the lowest price quoted by an overseas entity in a public auction.
The assistance will be given for all types of ships, though smaller boats and fishing vessels are not included in the scheme.
Both state-owned and private yards will get the assistance only after they construct and hand over to the ship to the buyer.
“Brent has been a key contributor to Bollinger’s success in leading our proposal and estimating efforts on the major governments programs the company has pursued over the years,” said President and CEO Ben Bordelon.
“His leadership and management skills will assist in guiding the continuous success of our engineering department.”Mr. Blackburn has over 16 years of experience in the U.S. shipbuilding and maritime industry. He joined Bollinger in 2004 working in various key engineering, estimating, and proposal roles mainly focusing on the company’s government programs.
Mr. Blackburn’s career began as a Project Engineer in Bollinger’s engineering group and he has risen steadily through the engineering and technical design departments. In 2014, he was promoted to Technical Manager, a position that solidified and proved his abilities, skills, and overall knowledge in managing projects and priorities.
In a stock exchange announcement, the company noted that in its FY2015 results it had reported experiencing schedule and margin pressure on Littoral Combat Ship (LCS) 6, the first that it is building as the prime contractor.
“Austal is building multiple LCS in parallel,” said the announcement, “with the impact of cost and schedule performance on LCS 6 continuing to impact LCS 8 and LCS 10 – both of which are in an advanced state of completion.
“Austal’s ability to apply lessons learnt and productivity enhancements from LCS 6 to vessels in advanced construction, namely LCS 8 and LCS 10, has been more limited than anticipated. As a result, FY2016 earnings from Austal’s U.S. shipyard are expected to be lower than in FY2015, with U.S. shipbuilding EBIT margin expected to be in the range of 4.5% to 6.5%. [Its U.S, shipbuilding EBIT margin was 5.2% in 2015 and 6.6% in 2014]
“Austal’s other major vessel program at its U.S. shipyard, the Expeditionary Fast Transport program (formerly called the Joint High Speed Vessel), has reached construction program maturity, with shipbuilding margin stable”.
Austal CEO Andrew Bellamy said that, while there were flow on effects from LCS 6 onto LCS 8 and 10, vessels at earlier stages of construction would benefit from the lessons learnt on LCS 6 to increase future US shipbuilding margin.
“The LCS program is maturing more slowly than we had expected, however we are working hard to manage the risks and expect an improvement across the program after delivery of LCS 10,” Mr. Bellamy said. “The ongoing strong performance of the US$1.6 billion Expeditionary Fast Transport program at our U.S. shipyard is a great illustration of the efficiencies we can deliver once a vessel program reaches the mature production phase and we are confident the LCS program will be no different.
“Austal has a strong balance sheet and is generating good cash flow, which is enabling further investment in the business during the 2016 financial year to best position the company to win additional contracts and service work to build our order book, revenue, and earnings into the future.”
The steel cutting ceremony took place at the shipyard December 4, with representatives from Shell and the shipbuilder in attendance.The new LNG bunker vessel will be based at the port of Rotterdam in the Netherlands, and will load from the new LNG break bulk terminal currently under construction by the Gas Access to Europe terminal. Once ready, it will deliver to LNG-fueled vessels in northwest Europe. The vessel is also seagoing and, therefore, able to bunker customers at other locations.
Shell says the vessel will be “pioneering in design.” It will have a capacity to carry 6,500 cu. m of LNG fuel and will be highly efficient and maneuverable. Featuring an innovative transfer system and sub cooler unit, it will be able to load from large or small terminals and able to bunker a wide variety of customer vessels.
Finland’s Containerships Ltd Oy will be the launch customer for the vessel’s services, after signing an LNG supply agreement with Shell on November 24.
As we reported earlier, Containerships Ltd Oy is to charter the two 1,400 TEU LNG fueled containerships currently being built for Nordic Hamburg Group at China’s Yangzhou Guoyu Shipyard .
The vessels will receive LNG fuel from Shell at the port of Rotterdam, after the LNG bunker vessel becomes operational in mid-2017.”This is a significant landmark in bringing this innovative LNG bunker vessel with cutting-edge technology to reality,” said Dr Grahaeme Henderson, Vice President of Shell Shipping & Maritime.
“I am delighted to be working with STX on this project and Shell is proud to be leading in the development of LNG fuel in shipping.””The supply agreement between Shell and Containerships is another example of the marine LNG fuel supply chain coming together,” says Lauran Wetemans, Shell’s General Manager Downstream LNG. “Working together with customers like Containerships is critical to encourage the use of LNG as a fuel in the marine sector, and we’re committed to helping make the transition to LNG.”
LNG bunker vessel
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According to defense media, BIW will get the additional destroyer under a “hull swap” agreement in a 2002 MOU between the Navy and its two largest shipbuilders that, among other things, reportedly included an agreement that, should a twelfth LPD be ordered,a fourth DDG 51-class ship or equivalent workload would be awarded to BIW.
Apparently, that’s likely to happen and that destroyer will be DDG 127, once Congress comes through with the funding.
However all that works out, the funds awarded Huntington Ingalls under the contract announced today will be used to purchase long-lead-time material and major equipment, including main engines, diesel generators, deck equipment, shafting, propellers, valves and other long-lead systems.
“This funding demonstrates the priority the Navy places on Ingalls getting started on this important ship,” said Ingalls Shipbuilding President Brian Cuccias. “Our shipbuilders have made great strides in the LPD program, and we are performing well. Building LPD 28 is key to maintaining a reliable supplier base and leverages our hot production line, enabling our team of shipbuilders to build this ship and future amphibious warships as efficiently and as affordably as possible.”
Ingalls’ 10th San Antonio-class LPD, John P. Murtha (LPD 26), was the most complete and lowest-cost LPD when launched, with many key systems finished months ahead of the shipyard’s historic best in the program.
Though LPD 28 will be substantially similar to its predecessors, it won’t have quite the same appearance. Gone will be the towering enclosed masts that had been built at HII’s now-closed Gulfport, MS Composites Center of Excellence facility, in their place will be open masts similar to those on the DDG 51 destroyers.
The 684-foot-long, 105-foot-wide LPD 17 class ships are used to embark and land Marines, their equipment and supplies ashore via air cushion or conventional landing craft and amphibious assault vehicles, augmented by helicopters or vertical takeoff and landing aircraft such as the MV-22 Osprey. The ships support a Marine Air Ground Task Force across the spectrum of operations, conducting amphibious and expeditionary missions of sea control and power projection to humanitarian assistance and disaster relief missions throughout the first half of the 21st century.
