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June 2006 MARITIME REPORTER AND ENGINEERING NEWS
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20062006 AnnualAnnual WorldWorld YearbookYearbook MR JUNE2006 #1 (1-8).qxd 6/1/2006 1:17 PM Page 2
Out Here There's No Room For Excuses
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AFTER 300 YEARS OF MAKING SHIPS, WE’RE MAKING HISTORY.
There is unprecedented opportunity for the maritime industry in Louisiana: a clean sheet where GULF OPPORTUNITY our ship manufacturing strengths and strategic import and export position is being leveraged by one of the most aggressive business incentive programs in U.S. ZONE history. Over one-quarter of the nation’s transport BONUS DEPRECIATION ships are built in Louisiana, creating a broad TAX-EXEMPT BONDS maritime infrastructure that is primed for investment opportunities.
CONTACT DON PIERSON, CEcD, AT 225.342.0215 OR LOUISIANAFORWARD.COM.
P.O. Box 94185 • Baton Rouge, Louisiana 70804-9185
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Contents GOVERNMENT UPDATE MARITIME 18 Big Brother’s Watching REPORTER The TSA and USCG issued an NPRM for implementation of AND the Transportation Worker Identification Credential (TWIC) in ENGINEERING NEWS the maritime sector. TSA would collect worker's biographic NEW YORK information (including but not limited to ten fingerprints, 118 E. 25th St., New York, NY 10010 name, date of birth, address, telephone number, photo, Tel: (212) 477-6700; Fax: (212) 254-6271 employer, and job title). — by Dennis L. Bryant e-mail: [email protected] • Web: Internet: www.marinelink.com FLORIDA • 215 NW 3rd St., Boynton Beach, FL 33435 Tel: (561) 732-1659 Fax: (561) 732-6984 EYE ON THE NAVY Associate Publisher 20 Dedicated to Winning Gregory R. Trauthwein • [email protected] At a recent meeting in Washington, the Navy’s committment Associate Editor Jennifer Rabulan • [email protected] to maintain superiority of the high sea was reaffirmed, with Contributing Editors • new information on its focus on the coastal and riverine envi- Dennis L. Bryant, Senior Maritime Counsel, Holland & Knight Edward Lundquist ronments. — by Edward Lundquist Editorial Consultant James R. McCaul, president, International Maritime Associates 2006 WORLD YEARBOOK 2006 WORLD YEARBOOK ™™ PRODUCTION OCEANOCEAN GUARGUARDD Production Manager John Guzman • [email protected] 32 Southern Exposure Asst. Production Manager Irina Tabakina • [email protected]
As the Gulf of Mexico maritime industry continues to recover ADVERTISING SALES Foam Filled Marine Fenders from last year’s hurricanes, MR spoke with Donald “Boysie” Senior Vice President, Sales Rob Howard • [email protected] Buoy • Dredge Floats Bollinger to get his take on the current situation and future Tel: (561) 732-4368; Fax: (561) 732-6984 prospects. — by Greg Trauthwein Senior Vice President, Sales Marine Hardware Brett W. Keil • [email protected] Tel: (561) 732-1185; Fax: (561) 732-8414
38 $ in Shipbuilding Vice President of Sales ENGINEEREDENGINEERED FORFOR Lucia M. Annunziata • [email protected] Shipbuilding prices peaked a year ago, and Jørn Bakkelund of Classified Ad Sales EXCELLENCEEXCELLENCE R.S. Platou Economic Research a.s., weighs in with thoughts Dale L. Barnett • [email protected] Tel: (212) 477-6700 on their future direction. Sales Administration Manager Tina Veselov • [email protected]
40 Offshore: Going Deep Sales Assistant Rhoda Morgan • [email protected] Offshore oil and gas spending is proejcted to hit $247 billion Manager, Accounting Services by 2010, driven in part by the need to find resources in Esther Rothenberger • [email protected] increasingly deeper waters. Manager, Public Relations Mark O’Malley • [email protected]
Manager, Information Technology Services 42 Running Late Vladimir Bibik • [email protected]
As the containership niche continues to expand rapidly, a new CIRCULATION study finds that many carriers are having problems staying on Kathleen Hickey [email protected] schedule. PUBLISHER John E. O’Malley 44 Cruise Market Up John C. O'Malley • [email protected] Powered by a host of new cruise departure ports, North American passenger traffic is up 3.5 percent. International Sales Operations Managing Director, International Sales TONY STEIN 12, Braehead, Bo'ness, West Lothian EH51 OBZ, Scotland, U.K. 46 Piracy Tel: +44 (0) 1506 822240; Fax: +44 (0) 1506 828085
With an increasing number of brazen attacks closer to shore, Germany/Switzerland TONY STEIN • [email protected] legislators give more attention to the piracy problem. Tel: +44 (0) 1506 822240; Fax: +44 (0) 1506 828085 —by Chris Doane, Joe DiRenzo III & Capt. David Moskoff Japan KATSUHIRO ISHII Ace Media Service Inc., 12-6, 4-chome, Nishiike, Adachi-ku, Tokyo 121, 49 MCTF Stands Strong Japan, Tel: +81 3 5691 3335; Fax: + 81 3 5691 3336 MARINE FENDERS Now in its eleventh year, the Maritime Cabotage Task Force Korea JO, YOUNG SANG • [email protected] INTERNATIONAL, INC. continues to fight for the Jones Act, deeming it the foundation Business Communications, Inc., Rm 1232, Gwanghwamoon Officia Bldg. to domestic Maritime Policy. — by Philip M. Grill 163, 1-Ga, Shinmoon-Ro, Jongro-Gu, Seoul, Korea 110-999 909 MAHAR AVENUE • WILMINGTON, CA 90744 USA Tel: +82 2 739 7840; Fax: +82 2 732 3662
TEL: 310-834-7037• FAX: 310-834-7825 Scandinavia 52 Data & Statistics: The Year in www.marinefendersintl.com ROLAND PERSSON/[email protected] Numbers ÖRN MARKETING AB, Box 184, S-271 24 Ystad, Sweden [email protected] Tel: +46 411-184 00; Fax: +46 411 105 31 CHARLES E. KEIL, Vice President, International Operations 215 NW Third Street, Boynton Beach, FL 33435 Tel: +561-732-0312; Fax: +561-732-8063 24-hr Tel/Fax: +561-998-0313; Mobile Tel: +561-716-0338 e-mail: [email protected] Circle 265 on Reader Service Card
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People who know Crowley know it takes more than a little ice to break our spirit.
In the summer of 1975, Crowley Maritime Corporation was It was slow, arduous work, but all 160,000 tons of cargo about to embark on the biggest sealift in history. It was made it safely to their destination. also the year when Alaska would experience the worst This is just one example of the perseverance of Crowley arctic ice conditions of the century. 47 Crowley barges people. For over 50 years, we’ve been delivering much- were being cautiously towed from Anchorage up to the needed fuel and cargo to remote villages in Alaska. We North Slope for the Trans-Alaskan Pipeline project. Arctic pioneered a way to install five massive oil exploration ice usually retreats for six weeks every summer, platforms in the middle of Lake Maracaibo in but this year it never happened. The deter- Venezuela. And when Hurricane Georges mined fleet was forced to a standstill. devastated Puerto Rico in 1998, we got our Finally, after two months of waiting, the ice port facilities up and running the very next flows momentarily retreated. The Crowley day to bring in critical relief supplies. But crews immediately forged ahead. When the that’s just the tip of the iceberg. To find out Crowley. One exceptional ice began to close in once again, it took company – run by one dedicated more, call 1-800-564-9251. Or visit us at four tugs to force each barge through. family for over 100 years. www.mycrowley.com
Liner Shipping • Worldwide Logistics • Petroleum & Chemical Transportation • Alaska Fuel Sales & Distribution • Energy Support • Project Management • Ship Assist & Escort • Ship Management • Ocean Towing & Transportation • Salvage & Emergency Response © Crowley Maritime Corporation, 2005 CROWLEY is a registered trademark of Crowley Maritime Corporation Circle 222 on Reader Service Card MR JUNE2006 #1 (1-8).qxd 6/2/2006 2:00 PM Page 6
Online @ www.marinelink.com
www.MarineLink.com is updated twice every business day, and is distributed free to subscribers. To view breaking news, visit www.marinelink.com. To subscribe to the daily news, delivered directly to your e-mail, visit http://maritimetoday.com/Alerts/MaritimeAlert.aspx. Top Tankers 1Q Profit Rises SUBSCRIBE Greek oil shipping company Top Tankers Inc. said first- Subscribe to the print or electronic edition of quarter earnings rose sharply as the company increased the Maritime Reporter & Engineering News at www.marinelink.com/renewsubscr/Renew04/ size of its fleet under operation. Net income rose 59 percent subscribe.html, to $30.4m, or $1.06 per share, from $19.1m, or 69 cents per or e-mail Kathleen Hickey at share, in the year-ago period. The latest quarter included Bill Would Block LNG Tankers [email protected] charges of $3.2m, or 12 cents per share related to stock The House of Representatives on May 10 joined a grow- ing list of official bodies erecting hurdles in front of a pro- DAILY NEWS via E-MAIL options and financing. Revenue more than doubled to Twice every business day we provide breaking $101.7m from $47.3m last year. At the end of March, the posed liquefied natural gas terminal in Fall River, Mass. The news, tailored to your specification, delivered company operated 27 vessels, or 2.6 million dry-weight House unanimously approved legislation that would, in FREE directly to your e-mail. To subscribe visit tons, up sharply from 18 vessels (1.3 million dwt) last year. effect, block LNG tankers from sailing through Rhode http://maritimetoday.com/login.aspx Island waters to get to the terminal. Sponsored by Rep. Raymond E. Gallison Jr., D-Bristol, the bill would prevent POST & SEARCH JOBS Nakilat orders 10 LNG carriers Job listings are updated daily and help match Qatar Gas Transport Company says it has ordered 10 LNG any tanker from coming within 1,000 yards of any resi- employers with qualified employees. Post a dences, piers, docks, wharves or waterfront facilities position or keep abreast of new employment carriers from Korean shipbuilders Daewoo, Hyundai and opportunities at http://www.maritimejobs.com Samsung. Nakilat now has 16 LNG carriers on order at a cost of around $5bn. They will be chartered to Qatar Funding OKd for China LNG Project ADVERTISE Liquefied Gas Company from January 2009. Newbridge Capital LLC, one of Asia's largest private equi- MR offers a number of print and electronic ty funds, has signed an agreement to invest up to $200m in advertising packages. To see our editorial Xinjiang Guanghui's Liquefied Natural Gas project in calendar and advertising rates, visit Sevmash Starts Building Megayacht www.marinelink.com/AdvRates/Rates.asp The construction of the second oceanic mega-yacht of the China's northwestern Xinjiang region, an official with the A1331 class started at the Sevmash shipyard in Xinjiang Guanghui Group told XFN-Asia. Under the agree- SUBMIT EDITORIAL ment, Newbridge Capital will initially invest $33.8m for a MR invites you to submit company news and Severodvinsk, a shipyard spokesman told Itar-Tass. The 24.99 pct stake in Xinjiang Guanghui LNG project and has events for publication on-line and in print. Visit construction of the first yacht began last year to order of the http://www.marinelink.com/Story/PostStory.aspx Baltika Shipbuilding Company. Sevmash has technologi- the option to increase its share in the project to as much as cally prepared for batch production of large cruise vessels. 67 pct with an additional investment of $169m.
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Editor’s Note On the Cover alk to 10 different people and its likely MARITIME you’ll get 10 different opinions as to the “mood” and direction of the maritime and REPORTER T AND offshore oil and gas business in the coming few years. ENGINEERING NEWS As oil prices — and for that matter, prices for just www.marinelink.com ISSN-0025-3448 about everything — hold at historic highs, there is a USPS-016-750 feeling that the mythical bubble is going to burst, No. 6 Vol. 68 118 East 25th Street, New York, NY 10010 sending the economy into a withdrawal. In historical tel: (212) 477-6700; fax: (212) 254-6271
context, this is true, as markets in general seem to Founder: John J. O’Malley 1905 - 1980 eschew the ability to avoid roller coaster-esque peaks and troughs. Charles P. O’Malley 1928 - 2000 Maritime Reporter/Engineering News is published Last month I was in Copenhagen with diesel engine maker MAN B&W. The monthly by Maritime Activity Reports, Inc. Mailed at Periodicals Postage Rates at Waterbury, CT 06701 and company was holding a social and technical program for its licensees from On the Cover: Pictured on this month’s additional mailing offices. cover is production manager John Postmaster send notification (Form 3579) regarding around the globe, and invited us to participate in a separate program of discus- Guzman’s ode to the yearbook theme. undeliverable magazines to Maritime Most importantly, please note the High Reporter/Engineering News, 118 East 25th Street, sions regarding new technological developments (which will be published in the New York, NY 10010. School Yearbook phots of two MR staffers July 2006 edition in concert with our “Diesel Engine Buyer’s Guide”). Walking in the bottom lefthand corner, just left of Publications Mail Agreement No: 40024966 the mailing label: Lucia Annunziata and Return Undeliverable Canadian Addresses to Circulation Dept. of DPGM away with several thick manuals of information, there is one non-technical sta- Tina Veselov! 4960-2 Walker Road Windsor, ON N9A 6J3 tistic given that, to me, stands out above the rest. In 2001, the company 4 Online @ www.marinelink.com Publishers are not responsible for the safekeeping or 8 The Editorial Index announced an “unprecedented order intake for our MC brand engines,” quanti- return of editorial material. ©2005 Maritime Activity 20 Eye on the Navy Reports, Inc.
fied by a historically high orderbook. The company, at the time, projected a 36 Waterways Council Editorial All rights reserved. No part of this publication may be repro- 70 Buyer’s Directory duced or transmitted in any form or by any means mechani- modest but stable market. Fast forward five years, and the reality is very differ- cal, photocopying, recording or otherwise without the prior 72 Ad Index written permission of the publishers. ent. In the last five years more MC engine power has been sold than in any pre- 73 Classifieds Member vious period, and the backlog today is double that of the 2001 record backlog. In collecting material and data for this, our annual yearbook edition, I’ve kept Subscriptions: One full year (12 issues) $34.00 in U.S.; outside of U.S. $55.00 including postage this data in mind tried to avoid bold predictions to any particular niche’s rise or and handling. For subscription information, call demise. While data and analysis suggests a cooling shipbuilding market and a 212-477-6700; fax: (212) 254-6271; or e-mail: Business Publications [email protected] growing offshore business, keep in mind that in every market there are opportu- Audit of Circulation, Inc. nities: the trick is picking the good from the bad. Coming in Maritime Reporter & Engineering News
JULY 2006 The Satellite Communications Edition Training & Education • Maritime Security • 2006 Diesel Engine Buyer’s Guide • Latin America
August 2006 The Shipbuilding Technology Edition Repair & Conversion • Welding, Cutting & Machine Tools • Latin America
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G8-FR8002 Radar-MaritimeReporter1 1 5/17/06 1:47:23 PM MR JUNE2006 #1 (1-8).qxd 6/2/2006 2:01 PM Page 10
The Index
Aalborg Industries ...... 16 Disney Cruise Line ...... 45 Matson Navigation Company ...... 50 Shipnet ...... 15 ABS ...... 28 Dominion Exploration & Production ...... 54 Mediterranean Shipping ...... 43 Siemens ...... 12 Aker Philadelphia Shipyard ...... 10 DongYang & SungDong HI ...... 39 Metrobulk ...... 57 Silversea Cruises ...... 45 Aker Yards ...... 10 Douglas-Westwood ...... 40 Mitsubishi ...... 26 Solar Sailor ...... 12 Alfa Laval ...... 67 Dredging Contractors of America ...... 50 MSC Italian Cruises ...... 45 STX ...... 39 Alianca ...... 42 Drew Marine ...... 66 MTN ...... 16 Sycom Services ...... 41 American Maritime Officers ...... 50 Drewry ...... 43 New York Water Taxi ...... 30 Texas General Land Office ...... 15 American Shipping Corp...... 10 Electrochem Commercial Power ...... 41 NGV Tech Shipyard ...... 28 The American Waterway Operators ...... 50 American Shipping Group ...... 50 ESAB ...... 66 Nordcapital Holding ...... 10 Thordon Bearings ...... 66 Ameri-Force Craft Services ...... 41 Evergreen Group ...... 26 Norther Marine Management ...... 57 Transportation Institute ...... 50 Arlington Tankers ...... 57 ExxonMobil ...... 57 Northrop Grumman ...... 53 Trico Marine Services ...... 16 Blohm + Voss Repair ...... 17 Furuno ...... 66 Norwegian Cruise Line ...... 45 TSA ...... 18 Bollinger Gretna ...... 28 Gladding Hearn ...... 30 Oceania Cruises ...... 45 Twin Disc ...... 30 Bollinger Shipyards ...... 32 Gosfern ...... 16 OT Africa Line ...... 42 U.S. Naval Academy ...... 55 Boubon ...... 10 Hatsu Marine ...... 26,43 Overseas Shipholding Group ...... 10,50 U.S. Navy ...... 22 Bouchard Coastwise Management ...... 30 Hobart Bros...... 67 Petroleos de Venezuela ...... 57 USACE ...... 36 Brodosplit ...... 15 Holland America Line ...... 45 Princess Cruises ...... 45 USCG ...... 18,34 Bruntons Propellers ...... 30 Horizon Lines ...... 50 Propeller Club ...... 53 USCG ...... 54 Callenberg Engineering ...... 15 Hornblower Cruises & Events ...... 12 Qatar Gas Transport Co...... 57 Waterways Council Inc...... 36 Carnival Cruise Line ...... 15,45 Hyundai Heavy Industries ...... 10 Qatar Petroleum ...... 57 Windstar Cruises ...... 45 CAT Pumps ...... 67 IMB ...... 48 Quintana Maritime ...... 57 World Maritime University ...... 14 Celebrity Cruise Lines ...... 45 IMO ...... 46 R.S. Platou Shipbrokers ...... 38, 58,59 ZF ...... 28 China Shipbuilding Industry ...... 39 Incat Crowther ...... 30 Radisson Seven Seas Cruises ...... 45 Zurich Financial ...... 48 China Shipping Container Lines ...... 43 INTEC Engineering ...... 16 Rolls-Royce ...... 12 China Stat Shipbuilding ...... 57 Jiangsu Yangzijiang ...... 39 Royal Caribbean ...... 45 Clarkson ...... 10 Kawasaki ...... 39 Safmarine ...... 43 Concordia Maritime ...... 15,57 Kidde Fire Systems ...... 67 Samsung Heavy Industries ...... 10,39 Cosco ...... 39 Korea Maritime Transport ...... 42 Samsung Heavy Industries ...... 57 Costa Cruise Line ...... 45 Lake Carriers’ Association ...... 50 Sanford Ltd...... 46 Creative Systems Inc...... 67 Lloyd's Register ...... 28 Scott and English ...... 28 Crowley Maritime Corp...... 50 MACS Maritime Carrier ...... 42 Seabourn Cruise Line ...... 45 Crystal Cruises ...... 45 Maersk Line ...... 43 Seabulk Offshore ...... 16 Cummins ...... 14,28,30 MarAd ...... 44 Seacoat Technology ...... 66 Cunard Line ...... 45 Marine Dept. of Malaysia ...... 28 Seadream Yacht Club ...... 45 Daehan Shipbuilding ...... 38 Marinette Marine ...... 53 Seamobile Inc...... 16 Daewoo Shipbuilding & Marine Engineering ...... Maritime Cabotage Task Force ...... 49 Sevan Drilling ...... 12 10,38,39,57 Maritime Solutions ...... 67 Shanhaiguan Shipbuilding HI ...... 39 Dalian New Shipbuilding & HI ...... 39 Maritime Trades Department, AFL-CIO ...... 50 Shell Malaysia ...... 10 Delmas ...... 42 Matson ...... 42 Shipbuilders Council of America...... 50
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Extended air flow... TCA turbocharger
MAN B&W has more than 60 years of unprecedented experience in producing turbochargers with plain bearings and uncooled hot gas casings. Based on this knowledge, we developed our new and most efficient TCA turbocharger.
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MAN B&W Diesel a member of the MAN Group Circle 261 on Reader Service Card
MAN B&W Diesel AG · Stadtbachstrasse 1 · 86224 Augsburg · Germany · Telephone +49 8 21 322-0 · Fax +49 821 322-3382 · www.manbw.com
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News
Korean Shipbuilding ing March 31, compared with a loss of carry 6,200 TEU rose 24.6 percent to earnings loss of 141.5 billion won, but Profits Surge 88.95 billion won in the same period a $91 million per ship at the end of 2004 its prospects are also bright with Korean shipbuilders are enjoying good year earlier, Hyundai Heavy said in a from the beginning of 2004. increasing orders for costly LNG carri- financial times, with a combination of regulatory filing to the nation's financial Samsung Heavy Industries reported ers and offshore engineering facilities. historically high ship prices and steel watchdog, according to the report. that first-quarter net profit jumped 440 Korean shipyards ranked No. 1 price reductions, according to a report in Global ship prices for very large crude percent compared to a year ago, rising to through No. 7 in order backlogs as of the the Korean Herald. oil carriers rose 39 percent to $110 mil- 15.3 billion won on increased orders for end of April, a London-based market Hyundai Heavy Industries reported its lion per vessel at the end of 2004 from high value-added ships. researcher said last week. Hyundai fourth-consecutive quarterly profit. Net $79 million at the beginning of 2004, Daewoo Shipbuilding & Marine Heavy kept its spot as the world's No.1 income totaled 22.9 billion won, or Hyundai Heavy said in a statement. Engineering Co. fell short of Hyundai shipbuilder in order backlogs of 11.44 $24.4 million, in the three months end- Prices for container ships which can and Samsung in the first quarter with an million compensated gross tons, Clarkson Plc. said. Samsung Heavy overtook its rival Daewoo with an order backlog of 8.34 million CGTs.
Aker Philadelphia Begins Tanker Construction Aker Philadelphia Shipyard has start- ed production on the third vessel in the 10-ship product tanker build program initiated in April 2005. The third tanker vessel is scheduled to be completed in the fourth quarter of 2007. The first steel plates cut for the ship will be used in construction of the engine room of the 46,000-dwt product tanker. Upon com- pletion, the tankers will be owned by American Shipping Corporation, a sub- sidiary of Aker American Shipping, and bareboat chartered to Overseas Shipholding Group, Inc (OSG). ® Aker Yards to Build More PSV's for Nordcapital SM Aker Yards has confirmed an optional WE KNOW MARINE FINANCE. agreement with Nordcapital Holding GmbH & Cie. KG in Hamburg, Germany for the building of two The Marine Division of AIG Commercial Equipment Finance, Inc. provides loans and leases to Platform Supply Vessels. The contract value is approximately $47m. Delivery meet the unique needs of our domestic and international maritime customers. We offer is scheduled for summer and autumn 2008. the funds for new and used vessel acquisitions, capital improvements, vessel maintenance and Bourbon 1Q Revenues working capital secured by marine assets. From offshore energy and container, commodity and Up 21.5% Bourbon reported that first quarter passenger transportation to harbor services, inland transportation and construction, we have the 2006 revenues totaled 172.4 million euros, an increase of 21.5 percent com- capacity to handle our customers' long-term financing needs. The Marine Division combines pared with the same period in 2005. With the exception of the North Sea, the maritime experience with the financial strength and expertise of the AIG companies, the world’s offshore oil and gas marine services leading insurance and financial services organization. recorded strong growth, with revenues of 79.3 million euros at the end of March 2006, up +32.9 % (24.2% at con- For more information, please call us at 972-987-3720 stant exchange rates) compared with the or e-mail us at [email protected]. same period in 2005. Several scheduled maintenance programs were performed in the first quarter of 2006. The West Coast of Africa, and Nigeria in particu- lar, continued to generate a very strong ® Commercial Equipment Finance Marine Division performance. Operations are developing WE KNOW MONEY.® gradually in Asia with the delivery and commissioning of an Anchor Handling
Insurance and services provided by member companies of American International Group, Inc. Tug Supply vessel (AHTS 120 tons) for Shell Malaysia. Circle 204 on Reader Service Card
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53 MEDAIRECOMREPORTER
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News
The Towage & Salvage Division The Bulk Division recorded revenues slight decrease in freight rates despite a erate its growth in new zones (particu- reported revenue growth of 18.5 percent of 41.1 million euros at March 31, 2006, still favorable market. larly Southeast Asia). in the first quarter of 2006 against the down slightly as expected from the same The company forecasts positive trends backdrop of a strong market, particular- period in 2005. This change was driven for the coming year. In an offshore oil Siemens, Rolls-Royce ly in the international segment. The by the combination of two opposite and gas market that is still expected to Tech for New Rig assistance and salvage activity benefited trends over the period: an increase in the be very strong in 2006, Bourbon plans to Sevan Drilling Pte. Ltd., Singapore from the commissioning of the Abeille volume shipped, specially in the trade of diversify its client portfolio in its tradi- has signed an agreement with a consor- Bourbon and the Abeille Liberté. coal and iron ore in Far East; and a tional operating zones and should accel- tium consisting of Siemens and Rolls- Royce for deliveries to a new deepwater drilling rig. Siemens will deliver electri- cal, automation, telecom and control systems together with the rig's dynamic positioning systems. Rolls-Royce will deliver diesel generators and thrusters. The drilling rig is equipped to operate in rough climatic conditions, will operate at extreme depths and is expected to be ready for delivery during the first half of 2009. Sevan Drilling´s parent company, the Norwegian Sevan Marine ASA, has developed a new cylindrical platform, the "Sevan Stabilized Platform" (SSP), which combines excellent sea-going properties with reasonable building costs. The commissioned deepwater rig is based on the SSP concept. The new rig is classified as an offshore installa- tion and will be constructed and partly built in Norway.
Hybrid Ferries Planned for Alcatraz Tours Two hybrid ferries will carry visitors to Alcatraz under a new 10-year contract between the National Park Service and Hornblower Cruises and Events. The ferry operator reportedly committed to build two new hybrid-electric passenger vessels that maximize the use of solar and wind energy, with zero emissions at the wharf. The first will be built within two years, and the second by year five. The hybrid vessels in the winning pro- posal by Hornblower were designed by Solar Sailor and modeled on the Solar Sailor ferry in Sydney, Australia. Bluewater Network introduced the Solar Sailor concept to ferry planners on the Bay five years ago. The new ferries hold 600 passengers and operate at 12 to 15 knots. The vessels will be fitted with a large, rigid wing covered in solar panels that will capture sun and wind power. When conditions are right, the vessels will be able to sail back and forth. In extreme weather, the sail will automati- cally fold down flat above the deck like a roof. Much like a hybrid car, large bat- teries on board the vessels will store electricity generated by the diesel gener- ators and collected by solar panels. The electricity then powers the electric motors. While loading and unloading passen- gers, the diesel engines will be turned off and run solely on electricity. Circle 257 on Reader Service Card 12 Maritime Reporter & Engineering News MR JUNE2006 #2 (9-16).qxd 6/1/2006 1:23 PM Page 13
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News Rajang River Express Boats
The port city of Sibu, Sarawak - about 80 miles (130 kilometers) up from the South China Sea on the Rajang River of Malaysian Borneo - was built on the wealth of the timber industry. Now that industry is in decline and the town is earning a global reputation as a quality builder of tugs and offshore supply vessels. It is also here that a variety of fast river ferries is built. While some of these are built for export, others are used to take passengers up river from Sibu to the smaller towns, logging operations and longhouse villages that have no road access. Two of Capt. Ting Heng Sing's vessels, the Sri Jaya and Asian Vision, operate daily between Sibu and the up river towns of Song and Kapit. Along with about ten other vessels they depart on a scheduled basis from a city ferry dock that is built so as to provide shelter to the boarding passengers. Each boat makes one round trip daily with the first departure at 5:45 a.m. The 90 miles up river to Kapit takes three hours going up river with a brief stop at Song about half way. The trips back down river with the current takes about a half hour less. The Sir Jaya has seating for 90 passengers with 32 in first class and balance in economy. The brightly paint- ed white, yellow and red, 113 x 9.67 ft. hull is remi- niscent of a Boeing 737 minus the wings and tail. An 18-in. deck extends out from the hull. The little pilot cabin with its streamline windows is bare of electron- ics except for a compact radar set and a pair of DVD players (for showing movies to the passengers). The key to navigating a fast flowing muddy river, with no navigation buoys but full of driftwood, is a good local knowledge and keen eyes. Having spent their lives on allows the engine to be further aft and provides addi- the Rajang, Capt. Ting and his son Capt. Ting Kee tional lift. These boats are not only fast, but also high- Wong, who skippers the 103-passenger Asian Vision, ly maneuverable so as to avoid the heavy driftwood in have both. Power for both the Sri Jaya and the Asian the Rajang River. Vision is a single 1200 hp Cummins KTA38 M2 In addition to passengers, the express boats carry mounted well aft in each of the two all aluminum ves- general cargos of fresh vegetables, cans of paint, sacks sels' hulls. An extension of the hull's bottom plating
Obituary: Professor Günther Zade Professor Günther Zade, founding father and former Vice-Rector and Academic Dean of the World Maritime University (WMU) has died in Germany. He was 70. Professor Zade was involved with the design and establishment of the WMU prior to its opening in Malmö, Sweden, in July 1983 and he then dedicated his life and intellect to the creation and progressive development of the University. As Vice-Rector and Academic Dean of WMU, he contributed towards the well-being and academic achievement of the University and, more importantly, those of its students. Even after his retirement in 2001, he continued to serve WMU as a research fellow and became editor of the WMU Journal of Maritime Affairs. Zade grew up in East Germany and studied mathematics at Leipzig University. He embarked on a sea- faring career in the West German merchant marine in 1957, becoming a master mariner and subsequently com- pleting postgraduate studies in Nautical Studies and Education. From 1968 until 1983 he served at Bremen Hochschule für Nautik, as Lecturer, Professor, Vice-Rector and, finally, Rector. In 1982, the then Secretary-General of IMO, Dr. C.P. Srivastava, asked Professor Zade to assist in the design and establishment of WMU. Professor Zade was founding member, first chairman, and President of the International Maritime Lecturers' Association (IMLA) and played a leading role in many other international and national professional associa- tions such as the International Association of Institutes of Navigation (IAIN), the International Association of Maritime Universities (IAMU) and the German Institute of Navigation. He was a prolific researcher and author of many studies on the subjects of maritime education and training. To honor the memory of Professor Zade, WMU will establish the annual Günther Zade Lecture, to be held in connection with the annual meeting of the University's international Board of Governors. Distinguished experts from the international maritime education milieu will speak on issues of maritime education and train- ing, to which Professor Zade devoted his professional life.
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News
of cement and anything that might be form of its global customer base and ing market position." directing Callenberg's growth and needed up river. Most cargo is stowed shipping competence, is a great basis, expansion activities as a marine techni- on the rounded cabin top, tucked in but without adapting to tomorrows tech- Tal Anniversary cal support company, specializing in behind a windbreak and lashed to rails nology and changes, is worth nothing, " On May 19, Avi Tal, a 27 year veteran electrical, control, automation and provided for that purpose. Plastic cages said Tormod Haavi. "Our job is to fur- of the marine and cruise industry, cele- HVAC technologies.Prior to pursuing of live ducks and chickens go onto the ther build on this basis in order to main- brated his first year at the helm of his entrepreneurial career, he spent 13 small aft deck behind the engine room. tain and further develop ShipNet`s lead- Callenberg Engineering. He is busy years with Carnival Cruise Lines in sev- Passengers wanting to go further up the Rajang River from Kapit board slightly smaller 500 hp Cummins KTA19 M powered express boats. These boats will, except in the dry season, take Think of all the reasons you trust ACR. them another four or five hours upriver to Belaga. The narrowing river above Kapit, flows through a number of tricky spots including the notorious Pelagus Rapids.
Texas-Sized Offshore Wind Farm A proposal to build the biggest off- shore wind farm in the nation won approval from Texas state officials, the latest development in the fast-growing segment of the alternative-energy indus- try, the Washington Post reported.. Texas General Land Office, which man- ages state lands and mineral rights, said that it reached an agreement granting Superior Renewable Energy LLC the rights to 39,900 acres of submerged Now add one more. lands in the Gulf of Mexico, just off the (The RapidTrack S-VDR) coast of Padre Island and south of Baffin Bay. The big wind turbines, expected to number more than 100, will be erected as few as three and as many as eight miles offshore.
Concordia Orders Two Ships Concordia Maritime's and Brodosplit shipyard's boards have issued final approval of the newbuilding contract for vessels number seven and eight in Concordia Maritime's P-MAX-series. Estimated time for delivery is the 4Q 2009.
New CEO at ShipNet The first name in safety and survival is now the And its unique, float-free capsule is tough as nails, ShipNet named last word in IMO-mandated S-VDRs. just like ACR’s time-tested automatic EPIRBs. Tormod Haavi as its ACR’s brilliant new entry meets or exceeds all ACR also offers the world’s first type-approved government requirements. It is compact, easy to install and, combination S-VDR/ECDIS, another sound and simple way new Managing thanks to ACR’s vast worldwide service network, to save you money. To view ACR’s complete line of Director, succeeding easy to maintain with virtually zero downtime. The smart, efficient bridge-based products, including AIS, SSAS ECDIS Sven Erik Dølvik. RapidTrack saves significant retrieval time and and , visit www.acrelectronics.com expense compared to traditional hardened cases. and reap the benefits. Haavi will assume his new role from July 1, 2006. Haavi was ShipNet's Commercial Director until the end of 2000. During the years since he left ACR Electronics, Inc., 5757 Ravenswood Road, Fort Lauderdale, FL 33312, U.S.A. For information call (954) 981-3333 • e-mail: [email protected] • www.acrelectronics.com ShipNet, Haavi has worked as an inde- ACR Electronics, Inc. is registered by UL to ISO 9001: 2000 pendent management consultant. His projects, amongst others, have been This device has not been authorized as required by the Rules of the FCC. related to business development, merg- This device is not, and may not be offered for sale or lease, or sold or leased, until authorization is obtained. ers and acquisitions on an international level. "ShipNet`s unique asset in the Circle 202 on Reader Service Card June 2006 15 MR JUNE2006 #2 (9-16).qxd 6/2/2006 11:18 AM Page 16 Take Command of Your Career eral technical capacities, including four years as Vice President Marine and Technical Operations. Your experience may qualify you for a seagoing career Trico Appoints Francois with Military Sealift Command. Trico Marine Services appointed Larry D. Francois as Senior Vice President of Operations. Francois In the next several months, Military Sealift Command will be hiring served as President of Seabulk Offshore, a subsidiary Civilian Mariners for Federal employment. The following positions are in our of Seabulk International, Inc., for approximately three Deck, Engine and Medical Departments: years where he was responsible for its worldwide off- shore operations. 3rd Officer Deck Engineer Machinist 3rd Assistant Engineer Pumpman Intec Names Tam CSO Able Seaman Unlicensed Junior Engineer Christophe (Chris) Tam, Ph.D., was named INTEC Engineering's st Ordinary Seaman 1 Radio Electronics Technican chief strategy officer (CSO). Tam, Wiper 2nd Electrician an eight-year veteran of INTEC, Refrigeration Engineer Medical Services Officer has served as the company's presi- dent of North America operations If you are interested in a career that offers on-the-job training, since 2003. Tam's responsibilities advancement opportunities, steady pay and Federal benefits, visit our as chief strategy officer-a newly created position with Web site at www.sealiftcommand.com/MR or call 1-888-228-5509 to global impact-include strategy development, planning speak with a recruiter. and implementation with continued emphasis on tech- nology.
Aalborg Strengthens O&G Position Aalborg Industries signed a binding agreement to acquire the Australian company Gosfern Pty Ltd. Gosfern's core competence lies within combustion technology and related control and safety systems. The
® company has, over the past decade, developed a strong position as supplier to special vessels for the explo-
MSC IS AN EQUAL OPPORTUNITY EMPLOYER AND A DRUG-FREE WORKPLACE. ration, production and preprocessing of oil (FPS). With the acquisition of Gosfern, Aalborg Industries becomes a supplier of complete boiler plants with related combustion equipment, automation and safety Diamond/Sea-Glaze Closures: systems to the maritime oil and gas sector. Made to stand the test of time and sea Seamobile Acquires MTN SeaMobile, Inc. has acquired Maritime Diamond/Sea-Glaze Telecommunications Network, Inc. (MTN), a provider offers a wide product of satellite-based broadband communications and net- line of standard working services for the maritime industry. Terms of closures. DSG the agreement were not disclosed. "SeaMobile saw a specializes in fabricating custom strategic opportunity to combine the wireless and products to meet any satellite expertise of the world's leading maritime special or unusual communications companies to completely change the customer designs and way travelers communicate at sea," said William D. requirements. Marks, Chief Executive Officer of SeaMobile. With an in-house SeaMobile, a Seattle, Wash., based company, was machine shop, powder and wet painting founded in March 2005 by veterans of the wireless facility as well as a glass tempering oven, telecommunications and cable industries to provide DSG has full control of its production and wireless voice, data, Internet and other content and quality. communications related services for cruise lines, oil We invite inquiries regarding your individual and gas platforms, ferries, yachts, containerships, and needs and specifications. Please phone, government/military sectors. The company recently write, email or fax to us for product literature announced contracts with Silversea Cruises and and working CAD drawings Oceania Cruises and has since deployed wireless serv- ices on ships for both companies. SeaMobile's propri- 26995 Gloucester Way, Aldergrove BC, etary technology is a sophisticated IP/software based Canada V4W 3Y3 solution that works with any type of wireless phone Telephone 604.607.0091, (GSM, GPRS or CDMA) used by the customer when Fax 604.607. 0092 accessing the SeaMobile network at sea. This allows Toll Free International 800.770.0455 virtually anyone aboard any vessel at sea to use voice Email: [email protected] and data services available through their wireless home carrier, just as they would on land. Worldwide www.diamondseaglaz e .com roaming agreements established by SeaMobile provide transparent connectivity for wireless services and billing is provided by the home carrier. Circle 226 on Reader Service Card 16 Maritime Reporter & Engineering News MR JUNE2006 #3 (17-24).qxd 6/2/2006 11:43 AM Page 17
Queen Mary 2 Repaired at Blohm + Voss damaged propulsion unit was already On May 6, 2006, Queen Mary 2 was Southampton. The ship was docked to dismantled. A floating crane lifted the docked at Blohm + Voss Repair's dry dismantle one of two fixed propulsion unit for transport to the workshops of dock Elbe 17 with a 13 hours delay on units from the stern that was damaged Blohm + Voss Repair for inspection and the masterplan because of the weather when exiting Port Everglades earlier repairs, approximately 39 hours after conditions on her trip from New York to this year. On Monday afternoon, the being drydocked. The job was complet- ed after 56 hours.
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Government Update TWIC: This Time it is for Real
On May 22, 2006, the Transportation Security estimated to be between $8,900 and $11,900 per facil- Administration (TSA) and the US Coast Guard issued ity or vessel. Public meetings will be held in Newark, their long-awaited Notice of Proposed Rulemaking NJ (May 31); Tampa (June 1); St. Louis (June 6); and Dennis L. Bryant, Senior Maritime Counsel at the law firm of Holland & (NPRM) for implementation of the Transportation Long Beach (June 7). Written comments on the pro- Knight, Washington, D.C., is a con- Worker Identification Credential (TWIC) in the mar- posal must be submitted by July 6. Actually, by the tributing editor of MR/EN. itime sector. Under the proposal, TSA would collect time you read this article, the meetings will probably worker's biographic information (including but not have already been held, but there may still be time for stumbling block throughout the rulemaking and limited to ten fingerprints, name, date of birth, address, you to submit written comments. beyond. Another problem related to technology. No telephone number, photo, employer, and job title). All This rulemaking represents a major, if somewhat one knew what the TWIC should look like and what individuals (including US merchant mariners) with belated, step forward in the process which began with information it should include. Vigorous (and long- unescorted access to secure areas of port facilities and high hopes on the enactment of the Maritime winded) debate ensued. Some contended the cards vessels regulated under the Maritime Transportation Transportation Security Act (MTSA) in 2002. TSA, an should be as simple as possible, with the information Security Act would be required to have a TWIC. agency largely focused on the aviation industry, was made easily retrievable. Others contended that the Background checks would include a review of criminal somewhat out of its element trying to implement a cards should incorporate the latest technology, hold a history records, terrorist watch lists, immigration sta- major program in the maritime industry. significant amount of identifying information, and tus, and outstanding wants and warrants. The TWIC Problems arose almost immediately with regard to include sophisticated security measures to both protect would utilize Smart Card technology and include the data collection. The maritime unions feared a return to the information and preclude tampering. individual's photograph, name, and biometric informa- the port security cards of the 1950's, when some long- The technology debate was prolonged in part due to tion and would include multiple fraud protection meas- shore workers lost their jobs supposedly in the name of Congressional intervention. One Congressional ures. The program is expected to cover 750,000 indi- national security, but just as likely for being union Representative, in particular, wanted the TWIC to be viduals and would be funded by user fees (estimated to activists. The unions are also concerned with what manufactured in his home district. You can read all the be approximately $139 per person). Port facilities and criminal convictions and arrests would be considered details in an article that appeared on the front page of vessels would be required to implement TWIC into disqualifying. Their argument is that most criminal the May 14, 2006 edition of the New York Times, their existing access control systems and operations, acts that a person might have committed in the past do which will not be repeated here. Eventually, once the purchase and utilize card readers, and update their not indicate that the individual is disloyal or presents a Representative withdrew his objections, the TSA set- approved security plans. Implementation costs are threat to the security of the nation. This issue will be a tled on using Smart Card technology - which, while not leading edge, is fairly sophisticated.
What's next? One should expect the TWIC proposal to be finalized not long after the close of the comment period. Some objections will lead to changes from the initial propos- al, but most will be rejected. While collection of information from mariners, facil- ity employees and longshore workers will be relatively easy, collection, verification, and processing of such information from other persons needing TWICs will prove more difficult. This group is highly disparate, consisting of chandlers, vendors, truck drivers, railroad workers, company officials, union officials, the media, ministers, and even lawyers (the latter group may have scarlet L's imprinted on their cards). The biggest single problem to full implementation of the TWIC may, once again, be technology. To date, the TSA has not awarded a contract for production of the actual TWIC cards. It taxes one's faith in God, moth- erhood, and apple pie to belief that a government con- tract can be awarded and executed within the six- month timeframe that TSA envisions. In addition to the collection and collation of person- al information on over 750,000 individuals (which can't commence until after the rulemaking is finalized), there must be criminal record checks and terrorist checks on each person, as well as verification that each applicant is who he or she says they are. The TWIC cards will then have to be distributed. It must be hoped that few individuals will have changed jobs, locations, or qualifications during the interim between collection of the information and dissemination of the cards. Each maritime facility and ship will then have to obtain the equipment necessary to read the TWIC card. Circle 290 on Reader Service Card 18 Maritime Reporter & Engineering News MR JUNE2006 #3 (17-24).qxd 6/2/2006 11:47 AM Page 19
Government Update
I presume that this equipment will application process for the MMC by TSA. US merchant mariners would dual rulemaking. The TWIC has spent resemble the card reader at a bank's removing the requirement that mariners carry the TWIC for identification pur- four years in gestation and is not born automatic teller machine (ATM), but appear at least once at a Regional Exam poses and the MMC for qualification yet. But, the sonograms have now been without being mounted in a wall. The Center (REC). Instead, the information purposes. Public meetings regarding made available and everyone is hoping technology to develop a TWIC card previously submitted by the applicant at this rulemaking will be held in conjunc- for a healthy baby. As with most new- reader that is both portable and electron- the REC would be submitted to the TSA tion with those for the TWIC proposal. borns, one should expect some loud ically connected to the central database through the TWIC enrollment process Time and space do not allow for a full noises and some sleepless nights. Let us may prove very interesting. The facili- and shared with the Coast Guard by the exposition of all the issues raised by this hope that the new baby grows up fast. ties and ships will have to amend their security plans to incorporate this process. The rulemaking, as currently drafted, requires that security plans Adapt include different processes for each dif- ferent maritime security (MARSEC) Innovate level. The facilities and ships will then have to implement the TWIC security and process. It is unclear how foreign vessels, oper- Grow ating under security plans approved by their flag administrations, are to incor- porate these processes, if at all. The reg- ulations, as proposed, exempt foreign vessels entirely. It seems to be pre- sumed that, since foreign vessels are largely restricted to berthing at US facil- ities that are compliant with the USCG maritime security regulations, any indi- vidual boarding or disembarking from the ship will have to pass through the facility's security system. The rulemak- ing includes the following caveat: "Nothing in the proposed exemption [for foreign vessels] should affect the existing requirements that owners and operators have procedures in place for allowing seafarers to traverse facilities Industry for the purpose of completing crew changes or taking shore leave." leader Legacy security systems and security systems mandated by state or local pro- in new grams are not addressed in the rulemak- construction, ing. Florida, for example, has a sophis- ticated port security identification card conversion, program. How is that accounted for in the TWIC process? Do the two systems and operate independently or is there a way shiprepair to merge them? Are all the time, effort, and monies devoted to other security for over card systems to be written off? 100 years Merchant Mariner Credential On the same date that the TWIC pro- posal was officially unveiled, the US Coast Guard issued its 74-page Notice of Proposed Rulemaking (NPRM) regarding consolidation of merchant mariner qualification credentials. This proposal is to be read in conjunction with the TWIC proposal. This rulemak- ing would combine the individual Merchant Mariner's Document (MMD), Manitowoc Marine Group License, Certificate of Registry, and www.ManitowocMarine.com STCW Endorsement into a single 1600 Ely Street / Marinette, WI 54143 Merchant Mariner Credential (MMC), which will be endorsed to reflect a Phone: 715-735-9341 Ext. 6528 mariner's qualifications. The Coast Fax: 715-735-3516 Guard also proposes to streamline the Circle 263 on Reader Service Card June 2006 19 MR JUNE2006 #3 (17-24).qxd 6/2/2006 11:47 AM Page 20
Eye on the Navy
Navy
Edward Lundquist is a retired Navy captain and a senior technical direc- Dedicated to Winning tor with Anteon Corporation. Ships assigned to Combined Task Force One Five Zero (CTF-150) (U.S. Navy photo by Photographer's Mate 1st Class Bart Bauer)
Department of the Navy leaders recently provided an in his position for four months. In that time he has at Fort Suse Prison in Iraq, and other Sailors are reliev- update to representatives of the Navy and Marine been involved in a navy that is taking on new missions, ing Marines in providing security for the Haditha Dam. Corps Council at the Army Navy Country Club on May establishing new units in unique warfare areas, and "We are preparing for an uncertain future," he said. 3, 2006. The council is composed of 21 organizations building coalitions to meet the current threat. "We are not just facing a single enemy. We are dealing that support the Navy and Marine Corps, with a total Today the Navy is taking a leadership role with Task with a complex set of threats. membership of 500,000 constituents. Force Guantanamo and Task Force Horn of Africa; and Furthermore, Winter said, uncertainty is the nature of Secretary of the Navy Donald C. Winter has served Navy men and women are performing security duties these threats.
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Eye on the Navy
While reaffirming the Navy's commit- a shift in emphasis from blue water to ports the Navy's 30-year shipbuilding "We've put readiness dollars in, and ment to maintain superiority of the high green and brown water missions." plan. we know what we're getting out." The sea, or "blue" water, is now focusing on The Navy is not abandoning the blue Chief of Naval Operations Adm. Mike key to building the fleet of the future is the coastal and riverine environments. water, Winter said. The service is Mullen talked about his three priorities to balance capability with affordability, "Future operations will require a wide investing in both equipment and people of sustaining readiness, building a fleet Mullen said. In shaping the workforce range of capabilities and evolving focus. to raise the size of the force from 281 for the future and creating 21st century of the future, he said "we've got to get it Changes to our naval forces will include ships to 313, based on analysis that sup- leaders. right." The Navy's shipbuilding plan is sup- ported in the Quadrennial Defense Review (QDR). Beyond the questions of capability and affordability, Mullen also asks himself "if industry can build it." To keep cost growth in check, Mullen said, the Navy must stick to its plan. "We've got to give industry a shot at stability." "Leadership," he said, "more than anything else, is what can solve intractable problems." Mullen referred to the importance of the reserves. He stressed the impor- tance of creating a force where Navy people can leave active duty for a while, join the reserves, and potentially return to active duty later. "We've got to get to the point where you can leave and come back." Mullen also spoke about engaging with other naval forces to create what he calls the "1,000 ship navy." Partner nations are anxious to be engaged, he said. The U.S. Navy will acquire some smaller platforms, like LCS and Riverine craft, which can get into small- er ports and can operate with similar sized craft of other nations. Mullen recently met with six Navy Circle 277 on Reader Service Card commanders in the Pentagon as they prepare to assume command of half the www.siemens.com 2 Milltown Court, Union, NJ 07083, Phone: 908-851-2277, Fax; 908-851-6906 U.S.-led Provincial Reconstruction Teams (PRT) in Afghanistan. Each PRT will work directly with an Afghan Province, mentoring and assisting its relationships with towns and villages and with the national government. Sailors and officers are being trained at places like Ft. Jackson, South Carolina, and Ft Bragg in North Carolina, in preparation for Individual Augmentee assignments in the CENT- COM AOR to join combat support and combat service support units. About half are coming from the active forces, and half are being drawn from our Water Technologies reservists. Prevent Marine Growth in Sea Water Seabees are building border security Heat Exchangers & Piping Systems posts in Iraq along the Jordanian and Syrian borders. Sailors are also taking CHLOROPAC® electrochlorination units eliminate the extra costs and maintenance over the defenses of Iraq's Haditha Dam, time associated with live water systems. which provides the Iraqi people with a • Eliminate the fuel penalty associated with fouled heat exchangers third of their electricity, and relieving • Eliminate the need for back flushing and periodic cleaning the Marines of this duty. A Navy unit is • Eliminate the need to store chemicals also assuming responsibility of Fort on board Suse, the highest security prison in Iraq. • Eliminate premature deterioration of piping systems A Navy admiral has assumed com- Find out what 50 years of proven advancements USF-0040-R3 mand of Joint Task Force Guantanamo, can do for you. responsible for detainee operations and Circle 300 on Reader Service Card 22 Maritime Reporter & Engineering News MR JUNE2006 #3 (17-24).qxd 6/1/2006 1:24 PM Page 23
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Eye on the Navy
intelligence gathering at Camp Delta Adm. Shahid Iqbal. The multi-national mands of Combined Joint Task Force of the continental United States with there. task force is responsible for conducting Horn of Africa. 181 million people. This term "theater Rear Adm. Harry B. Harris assumed maritime security operations in the Gulf This task force is providing "theater security cooperation" includes civil mil- command from Army Maj. Gen. Jay of Oman, Gulf of Aden, the Red Sea and security cooperation" in this the trou- itary cooperation, humanitarian assis- Hood last month in April. the North Arabian Sea. The U.S. Navy is bled region, which includes Ethiopia, tance, military-to-military training, and Combined Task Force (CTF 150) is a part of this task force. Eritrea, Sudan, Somalia, Kenya and capacity building to improve regional now commanded by Pakistan navy Rear Navy Rear Adm. Richard Hunt com- Yemen. It is an area two-thirds the size security.
Detachment, reaches France on board USS Jupiter enlistment and appointment of women in the Naval Reserve. 1944 - Battle of the Philippine Sea begins ("The Marianas Turkey This Day in Navy History 1945 - Typhoon off Okinawa damages many U.S. Navy ships 1970 - After earthquake in Peru, USS Guam begins 11 days of Shoot") relief flights to transport medical teams and supplies, as well as June 6, 1944 - In Operation Overlord, Allied invasion fleet (over rescue victims June 20, 1813 - Fifteen U.S. gunboats engage 3 British ships in June 1, 1813 - HMS Shannon captures USS Chesapeake, Capt. 2700 ships and craft) land troops on Normandy beaches, the Hampton Roads, VA James Lawrence. As the mortally wounded Captain Lawrence was largest amphibious landing in history June 13, 1881 - USS Jeannette crushed in Arctic ice pack 1815 - Trials of Fulton I, built by Robert Fulton, are completed in carried below, he ordered "Tell the men to fire faster! Don't give New York. This ship would become the Navy's first steam-driven up the ship!" These words would live on in naval history. Oliver June 7, 1819 - LT John White on merchant ship Franklin, June 14, 1777 - John Paul Jones takes command of Ranger warship. Hazard Perry honored his dead friend Lawrence when he had the anchored off Vung Tau is first U.S. naval officer to visit Vietnam 1777 - Continental Congress adopts design of present U.S. Flag 1898 - U.S. forces occupied Guam, which became first colony of motto sewn onto the private battle flag flown during the Battle of 1917 - U.S. subchasers arrive at Corfu for anti-submarine patrols 1847 - Commodore Matthew Perry launches amphibious river U.S. in the Pacific. Lake Erie, 10 September 1813. 1942 - Battle of Midway ends with loss of USS Yorktown operations by Sailors and Marines on Tabasco River, Mexico 1913 - First fatal accident in Naval Aviation, ENS W. D. 1871 - RADM Rodgers lands in Korea with a party of Sailors and 1991 - Joint Task Force Sea Angel ends relief operations in 1940 - Franklin D. Roosevelt signs Naval Expansion Act to con- Billingsley killed at Annapolis, MD Marines and captures 5 forts to secure protection for U.S. citizens Bangladesh after Cyclone Marian struct ships to increase Navy's tonnage by 11 % 1934 - Commander in Chief, Asiatic Fleet Admiral Frank Upham after Americans were fired upon and murdered. 1985 - Steelworker Second Class Robert D. Stethem, USN of reports to CNO that based on analyses of Japanese radio traffic, 1939 - Director of the Naval Research Laboratory, Captain Hollis June 8, 1830 - Sloop-of-war Vincennes becomes first U.S. war- Underwater Construction Team ONE was killed by terrorist "any attack by (Japan) would be made without previous declara- M. Cooley, proposes research in atomic energy for future use in ship to circle the globe hijackers of TWA Flight 847. He later received a Bronze Star for tion of war or intentional warning." nuclear powered submarine 1880 - Congress authorizes the Office of Judge Advocate General his heroism. 1944 - Battle of Philippine Sea ends with Japanese losing 2 air- 1954 - First test of steam catapult from USS Hancock 1958 - Navy and Post Office deliver first official missile mail craft carriers and hundreds of aircraft. when USS Barbero (SS-317) fired Regulus II missile with 3000 June 15, 1944 - Fifth Fleet lands Marines on Saipan, under the June 2, 1941 - First aircraft escort vessel, USS Long Island letters 100 miles east of Jacksonville, FL to Mayport, FL. cover of naval gunfire, in conquest of Marianas June 21, 1898 - USS Charleston captures island of Guam from (ACG-1), commissioned, then reclassified as an auxiliary aircraft 1960 - Helicopters from USS Yorktown (CVS-10) rescue 54 crew- 1963 - Launching of combat store ship, Mars (AFS-1), first of Spain carrier (AVC-1) on 20 August and finally reclassified as an escort men of British SS Shunlee, grounded on Pratus Reef in South new class of underway replenishment ships 1945 - Okinawa declared secure after most costly naval campaign carrier (CVE-1) in July 1943. China Sea. 1991 - 2 battle groups and amphibious ships evacuate dependents in history. U.S. had 30 ships sunk and 223 damaged, mostly from 1990 - CDR Rosemary Mariner becomes first Navy women to and Air Force personnel from Clark Air Force Base after Mount kamikaze attacks, with 5000 dead and 5000 wounded, while the June 3, 1785 - Order to sell last ship remaining in Continental command fleet jet aircraft squadron. Pinatubo erupts in Philippines Japanese lost 100,000 dead Navy, frigate Alliance. No other Navy were ships authorized until 1794. June 9, 1882 - Establishment of Office of Naval Records of the June 16, 1898 - U.S. squadron bombards Santiago, Cuba June 22, 1807 - HMS Leopard attacks USS Chesapeake 1898 - Collier Merrimac sunk in channel leading to Santiago, War of the Rebellion (became part of Naval Historical Center) 1965 - Navy Department schedules reactivation of hospital ship 1865 - Confederate raider Shenandoah fires last shot of Civil War Cuba in unsuccessful attempt to trap Spanish fleet. The crew was 1942 - First Navy photograhic interpretation unit set up in the Repose (AH-16), first hospital ship activated for Vietnam Conflict in Bering Strait captured and later received the Medal of Honor. Atlanic. 1884 - Navy relief expedition under CDR Winfield S. Schley res- 1949 - Wesley A. Brown becomes the first African-American to 1959 - Launching of USS George Washington (SSBN-598), first June 17, 1833 - USS Delaware enters drydock at Gosport Navy cues LT A.W. Greely, USA, and 6 others from Ellesmere Island, graduate from the U.S. Naval Academy. nuclear powered fleet ballistic missile submarine, at Groton, CT Yard in Norfolk, VA, the first warship to enter a public drydock in where they were marooned for 3 years on Arctic island. the United States 1898 - ADM Sampson begins amphibious landing near Santiago, June 4, 1934 - USS Ranger, first ship designed from the keel up June 10, 1854 - U.S. Naval Academy at Annapolis, MD, holds 1870 - USS Mohican burns Mexican pirate ship Forward Cuba as a carrier, is commissioned at Norfolk, VA first formal graduation exercises. Previous classes graduated with- 1898 - Navy Hospital Corps established 1942 - Battle of Midway (4-6 June) begins; during battle, the 4 out ceremony. 1940 - Chief of Naval Operations asks Congress for money to June 23, 1933 - Commissioning of USS Macon, Navy's last diri- Japanese carriers which attacked Pearl Harbor are sunk; this deci- 1896 - Authorization of first experimental ship model tank build two-ocean Navy gible sive U.S. victory is a turning point in the Pacific war 1961 - Navy's first major low frequency radio station commis- 1944 - Hunter-killer group USS Guadalcanal captures German June 11, 1853 - Five Navy ships leave Norfolk, VA on 3 year June 18, 1812 - U.S. declares war on Great Britain for impress- sioned at Cutler, ME submarine, U-505 exploring expedition to survey the far Pacific ment of Sailors and interference with commerce 1972 - Navy helicopter squadron aids flood-stricken residents in 1927 - USS Memphis arrives at Washington, DC, with Charles 1942 - First African-American officer, Bernard W. Robinson, com- Wilkes-Barre, Scranton, and Pittstown area of PA June 5, 1794 - First officers of the U.S. Navy under the Lindbergh and his plane, Spirit of St. Louis, after his non-stop missioned in Naval Reserve Constitution are appointed. The first 6 captains appointed to flight across the Atlantic 1957 - CNO approves ship characteristics of the Fleet Ballistic June 24, 1833 - USS Constitution enters drydock at Charlestown superintend the construction of new ships were John Barry, Missile sumbarine Navy Yard, Boston, MA, for overhaul. The ship was saved from Samuel Nicholson, Silas Talbot, Joshua Barney, Richard Dale, and June 12, 1944 - Four U.S. Carrier Groups (15 carriers) begin scrapping after public support rallied to save the ship following Thomas Truxtun attack on Japanese positions in the Marianas. June 19, 1864 - USS Kearsarge sinks Confederate raider Alabama publication of Oliver Wendell Holmes' poem, "Old Ironsides." 1917 - First military unit sent to France, First Naval Aeronautical 1948 - The Women's Armed Forces Integration Act provides for off France 1926 - Office of Assistant SecNav set up to foster naval aeronau- tics; aircraft building increased 1948 - Berlin airlift initiated to offset the Soviet Union's blockade Complete Line of Corrosion Resistant Centrifugal Pumps access of U.S., France, and Great Britain to their sectors of Berlin. June 25, 1917 - Navy convoy of troopships carrying American Fybroc Expeditionary Forces arrives in France Fiberglass Reinforced (FRP) Thermoset Construction 1950 - North Korea invades South Korea beginning Korean Conflict BRINES SEAWATER WASTEWATER ACIDS CAUSTICS BLEACHES BRINES SEAWATER WASTEWATER June 26, 1884 - Congress authorizes commissioning of Naval Academy graduates as ensigns HORIZONTAL ANSI DRY PIT VERTICAL CANTILEVER CLOSE-COUPLED 1918 - Marine brigade captures Belleau Wood 1959 - Twenty-eight Naval vessels sail from Atlantic to Great Nineteen sizes VERTICAL SUMP SUMP CANTILEVER Lakes, marking the formal opening of Saint Lawrence Seaway to Capacities to Sixteen sizes Nineteen sizes Nineteen sizes Sixteen sizes seagoing ships. 5000 GPM Capacities to Capacities to Capacities to Capacities to 3 1962 - NAVFAC Cape Hatteras makes first Sound Surveillance (1140 m /hr) 1400 GPM 5000 GPM 5000 GPM 1400 GPM System (SOSUS) detection of a Soviet diesel submarine. Heads to (320 m3/hr) (1140 m3/hr) (1140 m3/hr) (320 m3/hr) 400 ft (125 m) Heads to Heads to 275 ft (85 m) Heads to Heads to 1973 - Navy Task Force 78 completes minesweeping of North Close-coupled 400 ft (125 m) Lengths (settings) 200 ft (65 m) 400 ft (125 m) Vietnamese ports. also available from 18" to 30' Split sleeve shaft June 27, 1813 - USS President anchors in Bergen, Norway bearing design 1950 - To support U.N. call to assist South Korea, Truman author- izes U.S. naval and air operations south of 38th Parallel, Korea
June 28, 1794 - Joshua Humphreys appointed master builder to SELF-PRIMING BRINES SEAWATER WASTEWATER ACIDS CAUSTICS BLEACHES build Navy ships at an annual salary of $2,000. Six sizes 1814 - USS Wasp captures HMS Reindeer Capacities to 1400 Materials Selection Markets 1865 - CSS Shenandoah captures 11 American whalers in one day GPM (320 m3/hr) 1970 - USS James Madison (SSBN-627) completes conversion to Heads to 300 ft (95 m) High quality vinyl ester resin (VR-1) for most corrosive applications Acid producers Fertilizers Pesticides Poseidon missile capability Close-coupled Special cure syatem (BPO-DMA) for bleach applications (NaOCl, H2O2) Aquaculture Marine/Navy Petrochemical also available Abrasion resistant material (VR-1A) for liquids with low concentration Aquariums/zoos Metal finishing Pharmaceutical June 29, 1925 - Ships and men from 11th and 12th Naval 21 ft (6.5 m) highly abrasive fines (TiO2, fly ash) Chemical process Mining Pulp and paper Districts assist in relief after earthquake at Santa Barbara , CA static lifts Synthetic veil for flouridic applications (HF, H2SiF6) Electric utilities Desalination/ Scrubbers/odor 1950 - Truman authorizes sea blockade of the Korean coast Electronics reverse osmosis control/WWTP High quality epoxy resin (EY-2) for aggressive chemicals/compounds and solvents 1950 - USS Juneau fires first naval shore bombardment of Korean Conflict
June 30, 1815 - USS Peacock takes HMS Nautilus, last action of Mag-Drive Sealless Toll Free 1-800-FYBROC-1 the War of 1812 Close-Coupled ANSI 1943 - Third Fleet Amphibious Force lands troops on Rendova Ask About Our Fybroc Division Island while naval gunfire silences Japanese artillery Multiple sizes 1951 - Naval Administration of Marianas ends 3/16” FRP containment can Pumps for Marine/Navy 700 Emlen Way, Telford, PA 18969 Capacities to 650 GPM (150 m3/hr) Heads to 300 ft (95 m) Applications (215) 723-8155, FAX: (215) 723-2197 Available in both VR-1 and EY-2 E-mail: [email protected] materials of construction www.fybroc.com
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Mitsubishi Launches 7,024-TEU Ever Spring Reviving the name of Evergreen's delivery in August 2006 and is sched- ten S-types being built for the Evergreen very first full containership, Chang uled to enter service on the WAE pendu- Group by Mitsubishi. Three have Kuo-Cheng (K C Chang), Evergreen lum service linking the West Coast of already been delivered to the Evergreen Group's Vice Group Chairman, North America with Asia and Northern Group's U.K. affiliate Hatsu Marine Ltd. launched the 7,024 TEU Ever Spring in Europe. and a fourth, Hatsu Smile, is due for Kobe, Japan, on May 17. She is due for Ever Spring is the fifth in a series of delivery at the beginning of June.
“With ILS, we are able to compete with our biggest competitors without making huge investments.” The Evergreen Group is taking deliv- ery of 18 large post-Panamax container- ships over the period 2005 to 2008 - ten S-types and eight 8,063 TEU C-types - “We signed up for the ILS e-marketplace because it offers us the allowing the Group companies to exposure of advertising, along with the lead generation of an upgrade existing services and phase out aggressive marketing campaign at a fraction of the cost. It pro- older vessels. In July 1975, the previous vides us with highly qualified leads and has introduced us to Ever Spring inaugurated the company's some significant customers that would never have known about first full container service when she us previously. With ILS, we are able to compete with our biggest sailed from Taiwan to the U.S. East competitors without making huge investments. The amount of Coast. The new S-type vessels are par- business ILS has delivered is worth a ten-year subscription.” ticularly noteworthy in that they incor- porate many new environmental fea- Ulrich Freudenberger, Managing Director at Inter Seas Services tures that go well beyond the require- and Trading GmbH, NORDERSTEDT, GERMANY ments of new and soon-to-be-introduced Ulrich Freudenberger and Maike Pabst, Managing Directors international requirements. "We should not wait for legislation to be introduced," said Dr. Chang. "We We’re proud to have kept Inter Seas Services and Trading GmbH steaming should use the latest technology as soon ahead. We thank them and all of our longstanding subscribers for letting us as it is available so as to minimize the be a part of their success. impact of container shipping operations both on marine life and on port commu-
Inventory Locator Service,® LLC nities." 1-800-233-3414 (North America) • 1-901-794-5000 (Worldwide) • 1-901-794-1760 (Fax) • [email protected] • www.ILSmart.com The S-class ships incorporate a dou- ble-skinned hull and all fuel tanks have Circle 248 on Reader Service Card been located within the transverse bulk- head spaces, thus minimizing the risk of oil pollution or fire as a result of ground- ing or collision. A high capacity oily water separator enables the oil content of waste water to be reduced below 15 ppm while much larger separator bilge oil and bilge oil holding tanks provide more storage capacity than normal, enabling the vessels to avoid any dis- charge when sailing in sensitive areas and to maximize the amount of waste that can be held for ultimate disposal in specialized shore facilities. Similar arrangements have been made for handling sewage and so-called grey water, including water from the cargo hold bilges, when the vessels are in port or close to shore. The main engines and generators incorporate low NOx technology while the ships are also able to switch to low sulfur fuels when sailing in restricted areas such as the Baltic Sea. Cold-ironing, the ability to shut down all shipboard generators while in port, switching to shore-based electricity sup- plies, is also a feature of the S-class ves- sels. So far, only the Port of Los Angeles has initiated an Alternative Maritime Circle 280 on Reader Service Card 26 Maritime Reporter & Engineering News MR JUNE2006 #4 (25-32).qxd 6/1/2006 1:30 PM Page 27
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Power (AMP) program that requires Lloyd's Register (LR) while those for beam of 42.8 m, the S-class vessels are Malaysian Made Buoy ships to shut down their diesel genera- operation by Evergreen Marine able to carry containers 17 rows across Tender tors while in port but Evergreen expects Corporation will be classed with the on deck and 15 rows across below deck. many more ports to follow LA's lead. American Bureau of Shipping (ABS). It They are 78,700 dwt on a service draft The Group estimates that the cost of has obtained LR's EP (environment pro- of 14.2 m. Each vessel has a single 10- meeting AMP requirements amounts to tection) notation for the Hatsu ships and cylinder Mitsubishi Sulzer 10RTA96C approximately $2m per vessel. the equivalent ABS ES (environment main engine developing 74,700 bhp Evergreen has chosen to class those S- safety) notation for the EIS vessels. (54,900 kW) to provide for a service class vessels allocated to Hatsu with With an overall length of 300 m and a speed of 25.3 knots.
The Marine Department of Malyasia is taking delivery of the 131.2 x 32.8 ft. (40 x 10 m) buoy tender Permata from the NGV Tech Shipyard near Port Kelang. With a raised foc'sle and low midships deck the vessel is equipped for servicing navigational aides. A large crane mounted forward will be used to deploy and retrieve the buoys. A shallow two meter draft combined with a pair of electrically powered spuds located on the stern quarters can be used to create a stable working platform in shallower harbor areas. A pair of keel-cooled Cummins KTA50 M2 engines, each rated for 1,875 hp (1,398 kW) @ 1950 rpm, supplied by Scott and English (Malaysia) provide main propulsion power for the vessel. Large deck mount- ed cooling fans pump ample air to the engine room. The engines turn fixed pitch open propellers through ZF W7000 gears. Accommodation is pro- vided for a crew of 17. Tankage includes Circle 289 on Reader Service Card about 42,000 liters of fuel and about 23,000 liters of potable water.
Bollinger Delivers OPA'90 Barges to Bouchard
Following the delivery of Bouchard's B. No. 280 from Bollinger Gretna and the delivery of the tug Rhea Bouchard from Bollinger Algiers, the ATB set sail for Texas and its first load of cargo bound for the U.S. West Coast. VIKING LIFE-SAVING EQUIPMENT (America) Inc. 1400 NW 159 St. · Suite 101 Bollinger Gretna, LLC, Harvey, La., Miami · FL 33169 · U.S.A. Tel: +1 (305) 614 5800 · Fax: +1 (305) 614 5810 delivered, B. No. 280, a double hull, e-mail: [email protected] 80,000 BBL oil tank barge built to meet www.viking-life.com COPSØ A/S the requirements of the Oil Pollution Act
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General Dynamics NASSCO and DSEC in Partnership to Build Jones Act Ships
General Dynamics NASSCO and DSEC of Busan, Korea, a wholly owned subsidiary of DSME (Daewoo Shipbuilding and Marine Engineering), have teamed to bring the very best in commercial ship designs and technology Double-hull Refined Product Carriers to U.S. Jones Act customers.
The initial offerings will be to the refined product carrier, containership and shuttle tanker markets. Containerships for Hawaii, Alaska, Puerto Rico
A leading commercial shipbuilder in the U.S., General Dynamics NASSCO has been designing and building ocean-going commercial ships since the early 1960s and will continue to Shuttle Tankers for Deepwater Gulf of Mexico provide low-cost offerings in the Jones Act market.
This collaboration will be a cornerstone U.S.-Korean partnership and will build upon both companies’ outstanding records as leaders in ship design and construction. 2798 Harbor Drive San Diego, CA 92113 www.nassco.com Circle 273 on Reader Service Card MR JUNE2006 #4 (25-32).qxd 6/2/2006 11:05 AM Page 30
of 1990 (OPA'90), to Bouchard 280 and the B. No. 233 barge is our con- this northern summer. The vessel will be Coastwise Management, Corp., firmation and commitment to our cus- absorbed into the current fleet. The 22 m Hicksville, N.Y. tomers of our dedication to providing boat will be certified to carry 149 pas- Following the delivery of the B. No. them with modern up-to-date equipment sengers with 99 passengers in the main 280, Bollinger announced the signing of and services." deck cabin and the remainder on the the sister ship, B. No. 282. The B. No. The B. No. 280 is a clean oil barge open upper deck. Like the previous ves- 282 will also be built at Bollinger measuring 399-ft. long, with a 74-ft. sels this one will have the same low Gretna, along with the previously beam and a depth of 28-ft. The barge is wake hulls and hospital grade mufflers and tour services around Manhattan and announced 110,000 BBL, B. No. 205, a coupled with an existing Bouchard tug, that are an element of NYWT's commit- surrounding areas. black oil barge measuring 430-ft. long, Rhea Bouchard, using the Intercon cou- ment to minimize the impact of its oper- with a 79-ft. beam and a depth of 34-ft. pler system. Bollinger Algiers retrofitted ation on the marine environment. The Main Particulars Design Type ...... 22m Catamaran Ferry Additionally, Bouchard has awarded the Rhea Bouchard with the Intercon vessels are also accessible to people Survey ...... USCG Sub Chapter T Bollinger a 35,000 BBL barge, B. No. system, regulatory recertification and with disabilities and will include Construction material . . . .Marine Grade Aluminium 233, which will be built at Bollinger completed a re-powering of the vessel. Gladding Hearn's Winterization Pack LOA ...... 72.1 ft. (22 m) LWL ...... 68.3 ft. (20.8 m) Marine Fabricators in Amelia, La. which features hull strengthening for BOA ...... 26.5 ft. (8.1 m) Morton S. Bouchard III, president and operation in slush ice, deck heating and Draft (approx) ...... 5.6 ft. (1.7 m) New York Waterways to Passengers ...... chief executive officer of Bouchard Take Another "Taxi" enhanced cabin insulation. The vessel Main Deck internal ...... 99 Affiliates, said "The delivery from Gladding Hearn and Incat Crowther will be fitted with a pair of Cummins Upper Deck external ...... 50 Bollinger of the first barge, as part of QSK19-M main engines each producing Fuel capacity ...... 1000 gallons are teaming to provide another vessel Fresh water capacity ...... 300 gallons our second phase construction program, for New York Water Taxi. Following the 800 bhp at 2,100 rpm, providing a serv- Deadweight ...... 16.12 tons places us right on schedule with our ice speed of 26 knots at full load. Main Engines ...... 2 x Cummins QSK 19-M introduction of the Seymour B Durst Power ...... 2 x 800BHP @ 2100rpm future outlook program. Signing with and the Sam Holmes, NYWT has New York Water Taxi's currently have Gearboxes ...... 2 x Twin Disc MGX-5145 Bollinger on the sister ship to the B. No. a fleet of 8 vessels running commuter Propulsion system .2 x 5 Bladed Bruntons Propellers ordered a third vessel due for delivery in Speed ...... 26 knots
Efficiency, • Graving docks for ships up to 750 ft Productivity, • Over 7,000 ft of pier space • Excellent machine shop and and Competitive mechanical capability Price has served • 12 years experience with UHP water blasting • 24/7 work week as our hallmark • Flexible cross-craft training for over 40 years.
Detyens Shipyards, Inc. Main Yard Cooper River Charleston, SC USA 1670 Drydock Ave. • North Charleston, SC 29405-2121 David Enman Sales and Marketing Tel (843) 308-8000 • Fax (843) 308-8059 Tel (904) 318-0909 • Fax (904) 519-8580 www.detyens.com E-mail [email protected]
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High seas. Howling winds. Driving rain. Now you can SLICE® right through it all.
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Gulf of Mexico Recovery A Conversation with Donald "Boysie" Bollinger
As the Gulf of Mexico recovers other areas. We needed to assess the from the devastation wrought by damages they had sustained to their liv- hurricane’s Katrina and Rita, ing arrangements and try to see what we MR had the chance to chat with could do to get them back into some type of home. We initiated a program one of the country’s leading mar- with the La. Department of Economic itime executives — Donald Development to get FEMA housing into “Boysie” Bollinger, CEO of plants and shipyards, in order to get the Bollinger Shipyards — to discuss workforce back home. Obviously, this the current status of building was not great, but at least we gave peo- boats in the region. ple a place to live and get back to work. That had some effect, but many had MR: How would you best describe relocated to other places and were not your management philosophy? ready to return. We then developed Bollinger: Generally, I like to find good housing for non displaced workers so people, set the vision and direction, and people who wanted to work from out- let them manage. Staying in touch with side the area, but not affected by the details is only necessary to make sure storms, could have a place to live. that we are on course. Additionally, we had to deal and be responsive with our customers that MR: What do you consider to be the wanted to know when they were going three of the most significant changes to get their equipment. Generally, they that have occurred within the mar- were wonderful and understanding what itime industry in the last five years? we had gone thru, worked with us and Bollinger: First and foremost, is the went out of their way to help. I'll never new technology constantly coming out forget those that helped us while suffer- to make the newer equipment more ing delays as a result of these terrible adaptable to today marine environment. storms. Additionally, the increased demand for new and converted equipment to deal MR: Can you give us an overview - a with the effects of OPA '90, and then the birds-eye assessment - as to where you increased activity levels in the oil and stand today in terms of recovery. gas business sectors around the world. Bollinger: Except for Gulf Repair in New Orleans east and Calcasieu in S.W. Louisiana, we are basically back to nor- MR: How has the industry changed purchase of five shipyards from Frieda MR: From your view, give us an mal. Some damage still exists, but we from when you began your career? Goldman Halter in 2000. It nearly dou- assessment of the damage to the are operating at 95% in the other yards. Bollinger: In the 70s and early 80s, the bled the size of our repair business and Louisiana Shipbuilding Industry as a Gulf Repair is operating in very difficult companies we dealt with were mostly put Bollinger in business with customers whole. circumstances and with two less dry- family owned and local. Since then, we had never worked with before. Bollinger: The biggest damage to the docks. We operated for 5 months by many have become part of larger com- industry is to our workforces. generating our own electricity. We still panies (or grown internally to larger MR: Now that nearly 9 months have Physically, most of Louisiana's ship- don't have water or sewer and have to companies) and have much more struc- passed, please give MR readers an building was spared major damage, but haul it in and out. tured management in place. assessment of the damage — physical- recovery to an increased market and Relationships are still extremely impor- ly and financially — inflicted by last repairing what damages we did have MR: From such devastation there is tant, but price and service drives most of year's hurricanes to your company. without our normal workforce is ongo- often a "silver lining" … can you our customer's actions. Bollinger: Physically, 12 of our 13 ship- ing and extremely difficult. comment to as how this natural disas- yards had damage and we lost 3 of our ter has perhaps made Bollinger MR: What would you say (so far) has drydocks. Texas City was the only one MR: Overall, what are the greatest Shipyards a stronger company? been the pinnacle of your career? that basically had no damage. Bollinger challenges in resuming "business as Bollinger: After we recover from the Bollinger: I'd say the first was winning Gulf Repair and Bollinger Calcasieu usual" at your shipbuilding and financial losses, I think our facilities will the USCG contract in 1984. This was at facilities were both destroyed - one by repair facilities? be better. We lost 3 drydocks totally and a time when the oil and gas support Katrina and one by Rita. The other Bollinger: People and housing — no we have to focus on their replacements. industry was beginning a downward spi- yards had various degrees of damage, question about it. The first thing we real- We may also have to relocate a shipyard ral. It kept us busy and profitable during but all recoverable. Financially, the jury ized after Katrina and Rita was that as a result of the closure of the MRGO some very difficult times, as well as is still out, but our losses will be in the housing for employees was going to be which will eliminate our deepwater establishing us as a quality government tens of millions of dollars. extremely challenging. We had lost access to Bollinger Gulf Repair. contractor. The second would be the almost 700 people that had evacuated to
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In the wake of the hurricanes, Bollinger counted people and housing as its greatest challenge in resu- Winning the Coast Guard contract in 1984 was a company highlight, as it kept the yards busy dur- ing business as usual. ing the oil and gas downturn, and established a good business relationship with a valued customer.
MR: Can you share with us a person- MR: What markets, by vessel niche, remain strong without much change. Training that workforce will remain a al story or two that best illustrates the do you see as being lucrative in the very high priority for our entire industry. resilience of your company/your peo- coming years? Which segments do MR: What do you consider to be the ple? you see on the decline? biggest challenges (ie. Legislation, Bollinger History: Bollinger: Communications became a Bollinger: We don't see any decline. technical demand, competition, etc.) Celebrating 60 Years to your company's continued success? huge issue right after Katrina. We were The strongest will be the oil and gas In 1946 Donald Bollinger had a dream Bollinger: able to get our management back service industry, the OPA '90 oil trans- We constantly are concerned to establish a business that would grow together quickly and under very difficult port market and the government mar- with any actions that could affect our slowly but surely to provide jobs for the condition since some of them had lost kets. We feel that the inland market will ability to get and sustain a workforce. area residents and provide security for their homes and we had to get them and the growing Bollinger family. Bollinger their families into housing and schools. Machine Shop and Shipyards was begun Through all of this, they were there, by Donald in a small wooden building dealing with all of the difficulties of try- constructed on the bayouside south of ing to get "Bollinger" back on line. Lockport, Louisiana on the banks of Bayou Lafourche. MR: What investments are Bollinger The work in the area consisted of Shipyards making today that are farming, small wooden and steel tugs, intended for the long-term health of fishing boats and general machine work. the company? With his brothers Ralph, a mechanic and Bollinger: New drydocks, improved George, a welder, along with brother-in- infrastructure and bulkheading, more law Pappy Boyd, Mr. Bud, Donald's focused hurricane preparedness will all father and Dick, the youngest brother, make Bollinger Shipyards a better com- who with his degree from L.S.U., pany. became president of Bollinger Shipyards, the dream became a reality. MR: What do you consider the top The beginning was humble and the priorities, project wise, for your com- guys worked hard. They soon earned a pany in the coming 12 to 24 months? reputation for their efficient service and Bollinger: Focusing on continuing to innovation in marine repair. It wasn't get a workforce back up and running, long after the Bollinger's got their little dealing with construction of new dry- business underway that the oilfield docks and facilities while our customers boom in South Louisiana started. The are demanding more and more of our demand for larger, more specialized ves- services. Locations for moving ship- sels, inland and offshore, helped their yards and building new ones. We will company grow by leaps and bounds. have our plate full. As the company grew, so did the fam- ilies. Many of the descendents of the MR: Briefly describe your outlook for founders found themselves assuming the business in 2006 and beyond? major roles in the evolution of the ship- Bollinger: We feel that the demand for yard business. They performed difficult our products and services will be very tasks and worked hard under the watch- strong. We are preparing ourselves to be ful eye of their predecessors. The young ready to assist our customers in their ones learned well and brought their own new construction, repair and conversion energies and talents to the business. needs. (Continued on page 65)
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2006WorldYearbook2006WorldYearbook2006WorldYearbook2006W Waterways System Must Remain a Priority By R. Barry Palmer, President and CEO, approved spending nearly $415m in fis- waterways system. This action under- Civil Works program. These actions by Waterways Council, Inc. cal year 2007 to complete critical Inland scores and improves upon President the Administration and the Committee Just last month, House Appropriators Waterway Trust Fund financed lock and Bush's highest-ever request in FY 2007 continue to demonstrate the important on Capitol Hill overwhelmingly dam projects on the Nation's inland for the U.S. Army Corps of Engineers contributions of America's inland navi- gation system to the nation's economy. The commitment of Energy & Water Development Subcommittee Chairman David Hobson to the efficient funding and prompt completion of the economi- cally important inland navigation proj- ects of the Army Corps of Engineers should be commended. The work of Ranking Minority Member Pete Visclosky and the Subcommittee mem- bers, and the efforts of Appropriations The NYS Thruway Committee Chairman Jerry Lewis and Authority/Canal Corporation is Committee Ranking Minority Member David Obey, who continue to provide seeking to retain a qualified strong, supportive leadership, should Naval Architecture/Engineering also be recognized. firm to provide design services Particularly during wartime the appro- for the design of a "Hopper priations process creates difficult choic- Configuration" Container es, but the action of the Committee sub- stantiates the goal of keeping the Nation Transport Barge. strong and economically competitive. Waterways Council advocates for the Interested firms should modernization of priority Inland contact Peter Weisbecker at Waterway Trust Fund financed projects (518) 471-5375 for a more and urges funding at the highest levels possible, in order for the benefits of lock complete description of the and dam investments to be fully real- requirements. ized. And while there are positive trends on the construction general side of waterways infrastructure work, there Circle 276 on Reader Service Card Circle 225 on Reader Service Card is much work that lies ahead on funding Operations and Maintenance (O&M) FIRE DEPARTMENT needs on the system. CITY OF NEW YORK In the 1990s an increasing amount of maintenance on the system was deferred. That deferred maintenance REQUEST FOR INFORMATION AND EXPRESSIONS became unfunded maintenance and the OF INTEREST FOR THE CONSTRUCTION OF FAST aging infrastructure, combined with a RESPONSE FIREBOATS Each day employers and job seekers meet online growing O&M backlog, has resulted to post and seek incredible career opportunities over the last five years in an average of The Fire Department of the City of New York is seek- in every conceivable maritime profession. Each 30 unscheduled shutdowns at lock sites ing informational proposals from qualified shipyards day MaritimeJobs.com receives more than for the construction of two (2) fast response fireboats. 2,600 visitors - that’s over 85,600 visitors per year. Tight O&M funding means The new 140 foot fireboats are designed, by Robert every month! Employers appreciate having in- maintenance and repair is done on that Allan Ltd., to specifically address the firefighting and stant, comprehensive access to an international "fix-as-fail" basis, while the list of major rescue needs of the greater New York harbor. The pool of the most skilled, qualified professionals in rehabilitations waiting for funding fireboats are designed for a response speed of 17.4 today’s industry. Job seekers love the fact that grows. This "fix-as-fail" policy is not knots, with a low-wake, 12 knot cruising speed. The good for the waterways industry, and it posting resumes is absolutely free of charge! pumping system is configured for marine fire incident is not good for the Nation. response, and to support land-based firefighters with One recent example, the Greenup lock a 50,000 gpm total pumping capacity. on the Ohio River was originally sched- uled to close for 18 days in 2003 for rou- A copy of the RFI may be obtained by writing to the tine maintenance, but took eight weeks NYC Fire Department to repair, forcing the use of the auxiliary 9 MetroTech Center, Room 5W13K, lock chamber which more than doubled Brooklyn, NY, 11201-5884 tows' processing times. The total delay Att: M. Budinska (718) 999-1234, or on line at during that outage was more than http://www.nyc.gov/fdny at "Contracting 27,000 hours, or the equivalent of delays Opportunities" link. Proposals are due by the associated with six years of normal close of business on July 13, 2006. operations. Following that closure, a survey was conducted of shippers and Circle 235 on Reader Service Card 36 Maritime Reporter & Engineering News MR JUNE2006 #5 (33-40).qxd 6/2/2006 11:15 AM Page 37
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carriers. Figures are available from six $1.1m in additional costs and lost sales investment in plant and equipment. This portation, even though we move 16.5 companies only, but aside from delay of $665,000. investment creates and maintains posi- percent of the total commodities. costs, costs to the shipping community Funding for O&M has remained flat tive economic growth and sustains fam- Our industry - and waterborne trans- were estimated at $28.7m. Delay costs for more than two decades. And while ily-wage jobs. The river system is a crit- portation - is generally out of sight, out were estimated to be about $13.2 mil- lock and dam facilities continue to age ical energy supply line, a facilitator of of mind. lion. The total costs associated with the as we apply a band-aid approach to exports, and an environmentally superi- But the inland waterways transporta- Greenup main chamber closure event for infrastructure problems, additional or mode of transport. For every dollar of tion system is truly what binds us togeth- these six companies alone were estimat- expenditures are needed to make the cur- investment in waterways priority proj- er in this country and allows us to turn ed to be about $41.9m. And those costs rent system more reliable. We must ects, between $7 and $13 is returned in on a light, eat our cereal in the morning, are ultimately passed to the consumer, commit to this issue now and stay the transportation benefits to the United and drive our car to work. It deserves who will begin to see higher costs for course to realize the many benefits of States. our support and our commitment to nur- electricity, chemical products, gasoline waterborne transportation and com- In 2004 more than 607 million tons of ture it, not neglect it. and food. merce. "building block" commodities moved on Waterways Council, Inc. is the nation- McAlpine Lock and Dam's unsched- Our Nation's inland waterways indus- America's inland navigational system. al public policy organization advocating uled closure in Summer 2004 took only try and inland rivers network is a world- These commodities keep America strong a modern and well-maintained national 10 days to repair, but severed navigation class system and the envy of all nations. and feed the world. system of ports and inland waterways. on the Ohio River at The river and its system of locks and Interestingly, though, in a $765b U.S. The group is supported by more than Jeffersonville/Louisville, KY. Towing dams - constructed in the 1930s and transportation market-with 87.7 percent 250 waterways carriers, shippers, port companies experienced traffic delays 1950s - are an economic generator that of that spent on the trucking industry- authorities, shipping associations and and idled equipment that cost an esti- has attracted and will continue to attract with only 1 percent of the total trans- waterways advocacy groups from all mated $2.7m, while shippers incurred billions of dollars in public and private portation dollars is spent on water trans- regions of the country.
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Which Direction Forward on World Shipbuilding Prices Owners of most types of tonnage were could boost its Chinese imports from the paid handsomely in the freight markets, current 10 percent to between 15 and 20 albeit not as handsomely as the year percent of imports. Total Chinese steel before. A modern VLCC earned on aver- exports to Korea have grown from one age $55,000 per day and rates for million tons in 2001 to an estimated five Capesize bulk carriers were $47,000. In million tons in 2005. However, Korean the container market, average charter steel plate still dominates in domestic rates for a 4,500 teu vessel were up by shipbuilding with only 30 percent $6,000 per day in 2005, but towards the imported, mainly from Japan. In an end of the year rates were significantly industry producing goods for the inter- lower than the peak in the summer. national market, a fluctuation in the cur- Following the same pattern, prelimi- rency of the producing country will nary estimates for ordering activity at affect profitability. In 2005 European yards competing for tonnage above and Japanese shipbuilders were helped 30,000 dwt show a decline in 2005 com- by a depreciation of their currencies as pared to the year before. Measured in both the euro and yen fell some 15 per- compensated gross tons (cgt), orders for cent against the dollar. Korean and tankers and bulk carriers dropped signif- Chinese builders were not as lucky as icantly, whereas new orders for contain- both won and yuan maintained their er tonnage stayed at a comparatively value against the dollar. The yuan did so high level. Ordering activity for LNG, in spite of the release from a long period LPG, car carriers and other types of ton- While China has made great strides in garnering market share, South Korea will not let its shipbuild- of being pegged to the dollar. nage were also in decline from the pre- ing dominance go so easily. South Korea is starting win the lion's share of new orders for complex vious year. In sum, the 55 million cgt of tonnage, such as the growing LNG business. Korean Yards Remain Aggressive new orders placed in 2005 was close to Korean yards were also in 2005 the our estimated delivery capacity at deliv- most aggressive and grabbed close to ery time. A balanced supply and demand half of all new orders, helped by their situation indicates a flat development in Activity by Country dominance in the LNG and LPG seg- terms of price. 2005 - in million cgt ments. They maintained their domi- Although newbuilding prices ended Region Tankers Bulkers Container Others Total nance in the tanker and container seg- the year at roughly the same level as at China 2.4 2.5 3.9 0.7 9.5 ments where they took about half of all the start of 2005, prices increased during Japan 2.5 3.1 1.6 4.2 11.4 orders. The Korean order book grew by S. Korea 5.8 0.3 8.3 10.3 24.7 the first half by 5 to 10 percent and Others 0.8 0.9 4.2 3.3 9.2 8 million cgt, representing 44 percent of reached its highest level since the early Total 11.5 6.8 18.0 18.5 54.7 all tonnage on order. In 2005, the 1990s. This can be explained by looking Korean yards delivered 23 percent more at ordering activity during the year. 2004 - in million cgt tonnage in terms of cgt than the previous Almost two-thirds of this year's order Region Tankers Bulkers Container Others Total year, thanks to a massive increase of volume was placed in the first half, China 2.9 2.0 3.3 1.0 9.3 container vessels and LNG carriers. This equaling an annualized rate of 72 mil- Japan 4.6 7.7 1.4 4.9 18.6 trend is likely to continue in Korea. S. Korea 6.8 0.0 9.4 12.7 29.2 lion cgt. Compared to an estimated Others 1.8 1.4 4.8 3.5 11.5 According to the order book, in two building capacity of 55 million cgt at Grand Total 16.0 11.5 19.0 22.1 68.6 years' time deliveries will have delivery date, this created an upward (Source: The Platou Report 2006) increased by close to 20 percent per pressure on newbuilding prices. By the year. During the recent order boom there third quarter, however, the annualized the order book, although this share combined capacity of 2.6 million mt has been a number of new Korean com- rate of new orders was well below the declined somewhat due to the increased were commissioned during the year, panies entering the shipbuilding market. building capacity and ended a 30 order book of other types of tonnage raising the total capacity for making This year Daehan Shipbuilding months' period of continued price such as LNG, LPG and Car Carriers. heavy plates by close to 10 percent. Our announced they started to build a new increases. price index for heavy steel plates peaked yard in Haenam, which will have two At the very end of the year renewed The Price of Steel in May 2005 at $667 per ton and ended drydocks, and aims to build the first ves- interest, particularly in tankers, resulted A significant part of the cost for a ship- the year 15 percent below at $575/mt. sel there in early 2007. in a small increase in prices for tonnage. builder is closely linked to the steel mar- At the end of the year, South Korean Driven by an endless search for lower As a result of the high ordering activity ket, which has been booming in the past shipyards announced they would com- costs and also due to the fact that some during the year, yards got more orders two years following the global econom- pensate the rise in steel prices by sourc- Korean block builders have taken steps than they delivered and thus increased ic upturn that created higher demand for ing more steel from China. Domestic to become independent newbuilding their order book. A 13 million cgt steel. However, the price increases for prices for heavy plates in China was yards, yards are seeking opportunities increase was noted, ending with an order steel plates used in shipbuilding culmi- reported at $475/mt towards the end of abroad. China has so far been the book of 154 million cgt, or about 2.5 nated in the middle of 2005, as addition- the year. Hyundai said they considered favorite country for outsourcing part of years of work. The three major seg- al Chinese production capacity entered buying a stake in a major Chinese steel the production. Daewoo reported plans ments, tankers, bulk carriers and con- the market. Two new facilities with a mill as part of this initiative, which to invest $100 million in the Sanndong tainer ships accounted for 70 percent of province. The new block factory will
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start production of 50,000 mt per year in 2007, with plans to expand to 300,000 mt by 2016. STX also announced plans to invest $100 million in a 30,000 mt per year hull-block facility in the Shandong province. Samsung said it has plans to invest in a second, 200,000 mt per year block factory in China as their first six year old facility in Ningbo is no longer able to meet their demand. Furthermore, two major Korean block builders, DongYang and SungDong H.I., are entering the newbuilding market. Other low cost countries have also become alternatives for outsourc- ing. Daewoo said they will develop a shipyard in the Philippines. The initial plan is to start up by building vessels up to Panamax size and the first newbuildings will be delivered in 2008. Hanjin Heavy Industries was also planning to invest $1 bill. to set up a 1 mill. square metres large shipyard in the Philippines. Initially, they plan to manufacture hatch and hull blocks from the middle of 2007. Once its workers have acquired shipbuilding experience, they will progress to constructing large ships up to VLCCs and post-Panamax container ships sizes.
China Chinese yards increased their market share by three percentage points in 2005. The most significant change was recorded in the dry bulk segment where they doubled their share and took one-third of all orders. During the year they increased deliveries by 30 percent. A 3.8 million cgt increase was noted in their order book, which by the end of the year repre- sented 14 percent of the overall order book. Circle 200 on Reader Service Card China's ambition to become a big shipbuilding nation is all well known. The country obviously has comparative advantages in terms of being a low cost area, but its ambitions in shipping also springs out of a huge need to import raw materials and export prod- ucts. Numerous new facilities have already been con- structed and more are set to follow. China Shipbuilding Industry Corp (CSIC), the northern ship- building group, announced plans for new a yard in the province of Heibei, dubbed Shanhaiguan Shipbuilding Heavy Industries. The CNY 2.6 billion, 700,000 sq. m. project will focus on containerships, bulk carriers, tankers and FPSOs and are set to start building its first vessel in 2008 with delivery 20 months later. Also, Dalian and Dalian New Shipbuilding & Heavy Industries merged at the end of 2005 after a 15-year separation, and the owner is plan- ning to expand the facilities further by adding two more VLCC-size dry docks. Jiangsu Yangzijiang got approval from the central government to build a new 96 x 500 m drydock directly across the Yangtze River from where it is currently situated. The yard said it had ambitions to build container ships of more than 4,000 TEU and would be able to deliver the first ship at the end of 2008. Nacks, a joint venture between Cosco and Kawasaki, got government approval to build a new 500-meter long CNY 2 billion drydock with first delivery in 2008. China also has plans to start building sophisticated tonnage, and the Shanghai based yard Hudong-Zhonghua Shipbuilding had at the end of 2005 received orders for a total of five LNG carriers. This year the yard launched its first LNG ves- sel.
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Offshore O&G Spend Forecast to Surge to $247 Billion by 2010
Daily offshore oil & gas production, Companies) as producing and explo- "The offshore market forces directing personnel acting in an environment of currently standing at around 43 million ration assets are acquired by smaller the industry towards new cost-cutting rapid technology advances" said barrels of oil equivalent (boe), is fore- companies that specialise in marginal technology and other commercial inno- Westwood. cast to grow to 53 million boe in 2010 field developments and in scavenging vations are strengthening. In this sphere and drive industry annual expenditure for tail-end production. the greatest challenges faced by technol- Low Cost Plays from $193 billion in 2006 to $248 bil- ogy developers remain problems related Disappeared lion by 2010, according to the "The Resource Limitations to the conversion of new products into On the other hand resource-limited World Offshore Oil and Gas Production However, a particular concern is that proven hardware, in particular the reti- growth is also of increasing concern said & Spend Forecast", a study on the over the next three years most sectors of cence by oil companies to introducing Dr Smith. "Besides the portfolios of a prospects for the offshore oil & gas the offshore industry will be equipment unproven equipment into a high technol- few NOCs operating in the Persian Gulf, industry published by Douglas- and people resource-constrained. "Day ogy project. New low-risk ways of prod- the low marginal cost oil plays have vir- Westwood and based on information in rates will remain high, especially for uct introduction are needed for both tually disappeared. the Energyfiles database. capital assets such as high specification technology developers and oil compa- Opportunities for finding and develop- Douglas-Westwood' managing direc- drilling rigs and other vessels. The expe- nies to field-prove new technology." ing large offshore oil fields with rela- tor John Westwood said "High oil & gas rienced personnel needed to design, In the light of growing offshore expen- tively benign sub-surface and reservoir prices over the period to 2010 will result build, and operate drilling and produc- diture another challenge that both the oil conditions are now rare. in continued strong growth in the off- tion equipment will also command a companies and their contractors is fac- Only the most demanding environ- shore oil & gas sector. Over the next five growing premium". ing is that of accessing human resources. ments in ultra-deep waters and Arctic years we expect annual capital expendi- However, it is noted that "new rigs "The 'skills shortage' may in time be regions are expected to offer new large ture to increase by 10 percent from just have already begun to enter the market addressed as new people enter the indus- scale opportunities by the end of the under $110 billion in 2006 to $120 bil- and are now serving to moderate day try attracted by higher salaries. But the period." lion in 2010, but the real star of the show rate growth. These restraints are rein- 'experience shortage' is far more chal- "Conversely, offshore gas still has will be the less glamorous operational forced by limits on opportunities in off- lenging and there exists a growing opportunities related to the advent of sector with a forecast growth of 53 per- shore regions available to private oil & potential for both technical and strategic new gas production and conversion cent, from $83 billion to $127 billion." gas companies." mistakes to be made by inexperienced technologies, the growth of gas markets Energyfiles director and report lead in the developing world, and pressures author Dr Michael R. Smith said "off- by all governments to eradicate gas flar- shore spends are increasing rapidly but Global Offshore O&G Spending - 2001-2010 ing. LNG projects and the beginnings of there are considerable differences across a GTL industry are kick-starting the the regions. The main causes for the dis- 300000 development of stranded gas fields that parities are an increasing shortage of have been lying fallow for many years lower cost prospects in all but the Africa & Mid. East Europe & the FSU and are also encouraging new explo- Persian Gulf and the limited availability 250000 The Americas ration drilling in gas-prone areas." of deep water sedimentary areas with The Asia Pacific Glo bal T o t al "What's more considerable growth is potential for oil and gas reserves outside forecast for all forms of deep water pro- 200000 those already identified in Brazil, the duction facilities, but especially floating Gulf of Mexico, West Africa and some production systems and subsea produc- other less prominent regions. 150000 tion and processing hardware. Nevertheless all markets will retain Subsea systems are also expected to ever-higher levels of operating expendi- attract an increasingly larger part of the ture. Overall, we expect West Africa to 100000 shallow water offshore spend as margin- show the greatest growth at nearly $13 al development programs escalate." billion." 50000 The report stresses that new activity in Future Oil Prices the mature offshore regions will increas- "The oil price rises of the last three ingly become dominated by existing and 0 new start-up small oil companies (along years have had a big effect on prices" with the relevant National Oil 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 said Dr. Smith.
Global Offshore O&G Spending — 2001-2010
Total Spend, $ million 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Africa & Mid. East 23066 25697 28764 31494 38413 47784 54369 58903 65035 71240 Europe & the FSU 34488 32925 33444 35701 42433 49672 50811 51837 54597 59973 The Americas 37533 37389 39064 42769 49744 57926 59442 62475 67587 73425 The Asia Pacific 21050 22807 23667 25561 32154 37508 36693 37376 39431 42846 Global Total 116136 118819 124939 135524 162744 192890 201315 210590 226650 247484
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2006WorldYearbook2006WorldYearbook2006WorldYearbook "The Energyfiles forecast for oil prices The report concludes that "offshore companies operating in the offshore seriously resource-limited and year-on- over the next five years is of erratic but production forecasts show that the exploration and production industry will year declines in global oil output will generally flat levels in 2006 as oil lengthy era of relatively low-cost oil and become increasingly vulnerable to out- begin. During the transition period, demand growth is forced down by high- gas sources has ended. Higher oil and side economic and political circum- whilst new transport fuels will have to er oil prices; as new non-OPEC produc- gas prices are here to stay - an oil price stances. The period from 2010 to 2015 is be developed, the world will need all the tion enters the market from the deep collapse could only be driven by a still expected to be "the time period offshore oil it can get." waters of West Africa, from the Gulf of world-scale economic and/or political when global oil production from all off- (Source: The World Offshore Oil and Mexico and from the Caspian Sea; and crisis that interrupts demand growth." shore and onshore sources, including Gas Production & Spend Forecast, as new LNG developments continue to As we move beyond 2010 the future of unconventional sources, will become Douglas-Westwood) replace oil use in Asia. Renewed oil price escalation is forecast after 2007 eventually leading to more cost inflation in the service sector. By 2010 the world will have entered a new, permanent energy capacity-constrained environ- ment waiting on real large-scale alterna- tives to oil in the transport sector."
Ameri-Force Craft Services Acquires SyCom Ameri-Force Craft Services Inc. has completed the acquisition of SyCom Services, Inc., a defense industry engi- neering and professional staffing servic- es firm. SyCom will operate as a wholly owned subsidiary of Ameri-Force Craft Services Inc. The SyCom Services acquisition is part of Ameri-Force's strat- egy to complement its existing position in the marine new construction and repair segment of the federal market with targeted growth in information technology, administration and engi- neering services. Ameri-Force Craft also announced that it has hired Beth Cahallan as the Virginia Branch Manager. Cahallan has more than 16 years experience in the contract labor support business in the Tidewater Virginia Marine and Industrial markets. She was the founder and owner operator of Alliance Staffing Services, a contract labor provider to the marine and indus- trial sector in Virginia. In addition to her hiring, Ameri-Force has gained the mar- ket share and employees of the former Alliance Staffing Services.
Electrochem Announces Record Quarter Electrochem Commercial Power announced a 24 percent increase in cumulative sales revenue during the first quarter ending March 30, 2006, com- pared to the same quarter in the prior year. "We're very pleased to see 2006 off to a great start," said Richard Fagan, Business Unit Controller, Greatbatch Ltd. "We are successfully executing our manufacturing strategy and our new product introductions remain on track." The revenue growth during the first quarter resulted from a rising demand for Electrochem lithium battery packs and cells from customers in various global markets including oil and gas, oceanography and seismic surveying. Circle 254 on Reader Service Card June 2006 41 MR JUNE2006 #6 (41-48).qxd 6/2/2006 11:50 AM Page 42
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Containership Survey Box Carriers Fall Short on Reliability
Despite claims that most container- on the tracking of 3,300 vessel arrivals ships operate on fixed-day weekly on 23 different east/west and schedules, more than 40 percent of ves- north/south trade routes. The continuous sels operated in liner services arrive one survey is an attempt to help shippers or more days late, according to a global plan their supply chains with realistic survey from Drewry Container Shipper expectations of delivery times and assist Insight. Drewry carried out what it them in the selection of liner carriers. believes is the liner shipping industry's The survey found relatively low aver- largest schedule reliability survey, based age schedule reliability levels overall
Liner/Carrier % of ships On-time Transit Time Transit Time arriving on arrival deviation from reliability scheduled day industry schedule industry rank (in days) rank
Top 3 carriers in on-time reliability Korea Maritime Transport (Korea) 91% 1 0.2 1 Alianca (Brazil) 90% 2 0.4 5 Matson (US) 83% 3 0.4 2
Bottom 3 carriers in on-time reliability Delmas (France) 0% 61 3.4 60 OT Africa Line (UK) 0% 62 3.4 61 MACS Maritime Carrier (Gerrmany) 0% 63 4.5 63 Drewry's survey of containershipping performance found that Matson was one of the (Source: Drewry Container Shipper Insight Q2 2006) world's most reliable carriers, arriving 'on-time' 83 percent of the time. PipePipe RepRepairair MadeMade EasyEasy !! ® Syntho-Glass , the ONLY water Navy sailor activated pipe repair system used onboard demonstrating the use of U.S. Navy and Coast Guard Vessels. Syntho-Glass® to the Royal The difference is in the results! Thai Navy.
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across the industry, but with stark varia- sider the schedule reliability levels of highest vessel schedule reliability: percentage of on-time vessel arrivals tions between the schedules of different different carriers and the varying levels transpacific, Asia/Indian (less than 40%) include: Europe/Africa, liner carriers. The current percentage of of delays of the trade route concerned. Subcontinent/Middle East, North North America/Africa and liner vessel calls arriving on time is 57 Quantified trade route and carrier-spe- America mainland/Hawaii/Guam and, Europe/Caribbean/Central America. percent, with 22 percent of all vessels cific schedule reliability information somewhat unexpectedly the South Transit time delays of up to four days arriving the day after the scheduled day, was not publicly available until now. American East and West Coasts trades are typical on some trade routes. 7 percent making it two days late and 12 According to Drewry's survey, the fol- to and from both Europe and North (Source: Drewry Shipping percent of vessels calling at the port of lowing routes experience some of the America. The routes with the lowest Consultants Ltd., www.drewry.co.uk) arrival three or more days late. Looking at individual carriers, their on-time arrival reliability percentages ranged between 0 percent for the least reliable shipping lines and 91 percent for the best performing carriers, over the December 2005-April 2006 period of the survey (see table, previous page). Among the major east/west carriers, the lines with the highest schedule relia- bility results are Safmarine, Hatsu Marine (part of Evergreen) and Maersk Line, according to the survey. The major east/west carriers with the lowest on- time schedule percentages are Mediterranean Shipping Co. and China Shipping Container Lines. "Of the 63 international liner carriers whose vessel schedule reliability we monitor, only 16 have on-time vessel arrivals of 60 percent or more," said Philip Damas, lead researcher on the Drewry Container Shipper Insight. "This indicates that a large section of the industry still does not operate with the sort of predictable, reliable schedules which most shippers need," he added. The low schedule reliability of some carriers can be partly explained by trade-specific conditions, such as port congestion in many African ports. However, the survey found that, within TO FIND THE FINEST the same trade route, schedule reliability “ scores also vary considerably, depend- ing on the individual service and indi- OCEANGOING VESSELS, vidual carrier. "In the transpacific trade, regarded as a market where shippers are very demand- SOMETIMES IT’ S BEST ing in terms of fast and reliable transit times, we found that seven West Coast of North America weekly services and TO HEAD UPSTREAM.” three East Coast of North America weekly services had on-time arrivals of - Duff Hughes, President, The Vane Brothers Company less than 30 percent," Damas said. Drewry contends that most liner carri- ers have not included in their weekly Jeffboat, strategically located on the Ohio River in Jeffersonville, Indiana, has been designing schedules sufficient buffer time for con- and constructing vessels for 67 years. Over 10,000 vessels to be exact, all created with heavier tingencies such as bad weather and port welds, wheelabrated steel and superior coatings. At Jeffboat, not only do you get a delays, and that some lines regard buffer time as too expensive. This was com- technologically advanced oceangoing vessel at reasonable labor cost, you also get a dedicated pounded in early 2006 by the switch of project team. So when you look to build an oceangoing vessel, just look to the Ohio. the vessels of P&O Nedlloyd from the Grand Alliance to Maersk, which dis- rupted the services of both. To protect the integrity of their supply chains, Drewry is urging shippers, before they use additional carriers or import from new sourcing areas, to con-
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Cruise Report Passenger Traffic Up 3.5 Percent in 2005 North American cruise passenger traffic increased by 3.5 percent in 2005, with more than 9.7 million passengers carried on 4,463 cruises by the 17 largest cruise lines, according to preliminary figures from the U.S. Maritime Administration (MarAd). Growth fig- ures were lower than in recent years, due in part to last year's hurricanes, but occupancy rates remained high, reaching nearly 110 percent. (Note: A double state- room with two passengers is considered 100 percent occupied. Since many double staterooms can accom- modate three or four people, occupancy can be more than 100 percent.)
Table 1: North American Cruise Statistics
Year Cruises Passengers Capacity Occup. Passenger Avg. % Nights Nights
2003 4,094 8,348,719 7,875,665 106.0 53,533,841 6.41 2004 4,465 9,418,317 8,724,434 108.0 61,627,535 6.54 2005 4,463 9,747,188 8,885,612 109.7 63,730,903 6.54
Table 4: North American Cruise Passengers, New Orleans and Other Ports
Year Qtr. New Orleans Other Ports Total
2003 1 79,319 1,949,491 2,028,810 2003 2 41,848 1,970,230 2,012,078 2003 3 75,122 2,105,903 2,181,025 2003 4 100,465 2,026,341 2,126,806 Annual 296,754 8,051,965 8,348,719
2004 1 114,966 2,190,160 2,305,126 2004 2 86,692 2,230,697 2,317,389 2004 3 77,096 2,359,974 2,437,070 2004 4 117,067 2,241,665 2,358,732 Annual 395,821 9,022,496 9,418,317
2005 1 142,589 2,402,254 2,544,843 2005 2 107,947 2,302,535 2,410,482 2005 3 57,858 2,365,638 2,423,496 2005 4 0 2,368,367 2,368,367 Annual 308,394 9,438,794 9,747,188
Ports that escaped hurricane damage last year showed the most dramatic growth in 2005: Los Angeles departures rose 41.5 percent; Honolulu grew 37.9 percent; and Jacksonville increased 20.5 percent. Even Galveston, TX, which was temporarily closed due to Hurricane Rita, showed 22.5 percent growth during 2005. New Orleans had been showing strong growth in the first two quarters, with departures up 23.7 percent over the same period in 2004, but after the devastation of Hurricane Katrina, New Orleans experienced a 22.2 percent decline for the year. The North American Cruise line market is highly concentrated, with the five largest lines accounting for 84.9 percent of the passenger-nights in 2005 (Table 2), up slightly from 83.9 percent in 2003. Over the last three years, each of these lines has registered growth in passenger-nights over the last 3 years. In addition, average cruise length has grown slightly over the past three years, from 6.4 to 6.5 nights.
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Table 2. North American Cruise Third and fourth quarter departures Passenger Nights by Cruise Line clearly showed the impact of last year's hurricanes (Table 4). While departures Cruise Line 2004 2005 from New Orleans fell sharply, the Carnival Cruise Line 17,276,524 17,738,690 Royal Caribbean 15,735,164 15,962,894 impact on overall departures was soft- Princess Cruises 7,730,667 8,316,412 ened by growth in departures from other Norwegian Cruise Line 6,086,050 7,187,735 Holland America Line 5,105,213 4,906,262 North American ports. Celebrity Cruise Lines 5,062,467 4,665,555 Disney Cruise Line 1,849,956 1,875,052 Costa Cruise Line 627,702 868,757 Cunard Line 809,055 802,394 3HIPOWNERS Crystal Cruises 385,177 392,029 MSC Italian Cruises 296,366 381,985 Radisson Seven Seas Cruises 371,658 372,825 #HARTERERS Oceania Cruises 80,088 87,482 Silversea Cruises 86,413 71,285 Seabourn Cruise Line 51,715 51,299 3HIPPERS Windstar Cruises 49,431 25,652 Seadream Yacht Club 23,889 24,595 Total 61,627,535 63,730,903 "ANKS
Miami, Port Canaveral and Fort 0) #LUBS Lauderdale accounted for 43 percent of passenger departures in 2005 (Table 3), (ULL 5NDERWRITERS down from 49 percent 2 years earlier. For the same period, U.S. West Coast 4RADING #OMPANIES ports registered a 64 percent increase in departures, increasing their combined 'OVERNMENTS share from 12 percent to 17 percent. Most notable among West Coast ports was Seattle with a 104 percent increase.
Ports that escaped hurricane damage last year showed the 4(% 0/7%2 /&