16th Volume, No. 67 1963 – “52 years tugboatman” – 2015 Dated 23 August 2015 BUYING, SALES, NEW BUILDING, RENAMING AND OTHER TUGS TOWING & OFFSHORE INDUSTRY NEWS TUGS & TOWING NEWS POINT TUPPER TOWING SECURES CONTRACT EXTENSION TO CONTINUE ITS TUG SERVICE AT NUSTAR’S TERMINAL IN POINT TUPPER, NOVA SCOTIA Point Tupper Towing has secured a long - term contract extension with San Antonio - based, NuStar Energy to continue its tug service at NuStar’s terminal in Point Tupper, Nova Scotia, the company said in its press release. Point Tupper Towing (PTT), a joint venture between Svitzer and Atlantic Towing Limited (ATL) will continue to provide tug services and marine terminal support at NuStar Energy’s Point Tupper facility. Since 2010, PTT has provided three tugs, Svitzer Bedford, Point Chebucto and Point Valiant to support NuStar’ s terminal operations. With the contract extension, these three tugs will remain in Point Tupper. The contract extension award is the result of a strong operations partnership that has developed between PTT and NuStar during the course of the initial five years. (Source: PortNews) Advertisement 1/25 16TH VOLUME, NO. 67 DATED 23 AUGUST 2015 VERY BUSY FIRST HALF YEAR WITH HISTORICALLY HIGH PROFIT FOR TUGBOAT OPERATOR/DREDGING COMPANY BOSKALIS Once again we can look back on a fantastic first half of the year with historically high EBITDA of half a billion euros. We are especially proud of the successful execution and swift realization of the Suez Canal project, which was on an unprecedented scale and had to be completed within an extremely short timeframe. Partly due to the Suez project the dredging fleet was kept busy plying the waterways in the first half of the year. The high fleet utilization made a strong contribution to the good result. The second half of the year will be a different story in terms of utilization in particular because we will have to catch up on vessel maintenance which will result in more expenses and less revenue. We also had a good first half in offshore, partly helped by the strong US dollar. The nature of our activities means that we are largely late-cyclical in offshore and thanks to our order book we were able to keep fleet utilization levels high. Nevertheless we too are increasingly experiencing volume and margin pressure in the short-term, capacity-driven activities. We expect a prolonged period of low energy prices and lean market conditions in the offshore oil and gas market, and are therefore tightening things up where necessary in terms of organization, fleet composition and capital expenditure." Market developments Boskalis responds to various global macro trends by providing creative and innovative all-round solutions in specific market segments. These trends include growth in the world's population and prosperity, which in turn leads to increasing global trade and energy consumption. In addition there are the irreversible effects of climate change. The extent to which these macro trends will continue to develop in the coming years will be strongly dependent on geopolitical stability and macroeconomic growth in particular. Positive investment decisions in relation to large maritime infrastructure projects, which generate a lot of work for Boskalis, are closely linked to this. We see a stable market with regard to large-scale maritime infrastructure projects, the developments in and around ports and large- scale infrastructure works in the Netherlands. The tender pipeline with capital dredging projects for the deepening and expansion of ports and waterways, land reclamation projects and tunnel developments is positive, and maintenance work in these markets has a strong recurring nature. In large ports the development of the number of 2/25 16TH VOLUME, NO. 67 DATED 23 AUGUST 2015 shipping movements and thus the demand for towage services looks likely to be stable in the coming years. In light of this, expectations are that conditions in the Dredging & Inland Infra and Towage segments will remain stable. In the offshore energy market there is a clear distinction between short and long-term developments. At present the short term is strongly affected by the low oil price, which is causing oil majors to postpone investment decisions relating to complex and costly offshore projects. In the long term, however, the demand for energy will continue to be driven by increasing prosperity and economic growth. In the near term, those activities aimed at the capacity-driven spot markets such as Marine and Subsea Services are expected to be impacted hardest. The picture at Marine Contracting and Subsea Contracting is more favorable, fueled by structural developments in offshore wind energy, the dismantling of old oil and gas rigs and new developments in the Middle East and surrounding LNG, such as in Western Canada. Boskalis expects to see a prolonged period of low energy prices and lean market conditions in the offshore oil and gas market and is tightening things up where necessary in terms of organization, fleet composition and capital expenditure. Outlook Current information suggests that no major changes are to be expected in the market environment for Dredging & Inland Infra and Towage in the second half of the year compared to the first half. Following an exceptionally busy first half year at Dredging, fleet utilization levels will come down in the second half, partly due to postponed vessel maintenance from the first half year. This will result in a lower operating margin. The outlook for Offshore Energy remains mixed. Long- term contracts and work already contracted are expected to provide an important degree of stability well into 2016, but the short-term related transport activities and subsea services are experiencing pressure on utilization levels and margins. Across the portfolio it remains crucial that we make every possible effort to maintain the level of the order book, whereby we are selective in taking on projects, with an acceptable risk profile. Based on the fleet schedule and work in the portfolio and barring unforeseen circumstances, the Board of Management expects a good second half of the year. Net profit for the full year 2015, including our stake in the result of joint ventures and associated companies, is not expected to approach the 2014 record result (EUR 490 million). The 2015 capital expenditure is expected to amount to EUR 225-250 million (from EUR 250-275 million), which will be financed from the company's own cash flow. (Press Release) Advertisement ALL ABOARD FOR SAIL AMSTERDAM! Ships of all types and sizes are taking to the North Sea Canal to join the celebration of the ninth edition of the SAIL Amsterdam event in Amsterdam, the Netherlands. Since its first edition in 1975, SAIL Amsterdam has grown to become the largest public event in the Netherlands and the largest free nautical event in the world. The event takes place every five years, gathering over 600 ships that navigate along the North Sea Canal before mooring in and around the IJhaven in Amsterdam. 3/25 16TH VOLUME, NO. 67 DATED 23 AUGUST 2015 The ninth edition of SAIL Amsterdam takes place from 19 to 23 August 2015. The first day of the maritime festival kicked off with a Sail-In Parade featuring various famous tall ships such as Belem from France, Atyla from Spain, Alexander von Humbdolt II from Germany along with Dutch navy ships and many more vessels smaller in size but equally spirited to join the fun. For all those not able to attend this year’s event here is a taste of what is going on at the moment on the canal. Enjoy!. You can watch the parade sail HERE During this Sail Amsterdam, a lot of tugs, like the famous Elbe (photo) and Holland and the steam tug Furie (photo), attended the parade. The 5 day event attracted on the first day during the Sail-In Parade 400,000 spectators. It is expected by the organizers that there a total of 2 million people will visit the event. (Source: World Maritime News; Photo below Sjaak van Minnen) TUGBOAT RB-366 OF PROJECT 90600 BUILT BY PELLA SHIPYARD FOR RF NAVY COMPLETES MOORING AND MANUFACTURE’S TESTS Tugboat RB-366 of project 90600 (hull No 943) built by Pella Shipyard (Leningrad Region) for RF Navy has successfully completed mooring and manufacture’s tests. According to shipyard’s press center, State Acceptance Committee starts its work on August 19. Upon completion of the state trials the tugboat will be delivered to the customer. RB-366 is to join the Baltic Fleet of RF Navy. The ship was launched on February 26, 2015. The tugboat is intended for towing and berthing operations in harbor, roadsteads and coastal areas which comply with R3 navigation area, refloating of ships and vessels, firefighting operations at floating and shore objects, oil spill response activities, cargo transportation, ice breaking and erosion operations. Technical information: Length max: 25,4 mtrs; Width max: 8,8 mtrs; Draught: 4,2 mtrs; Speed: 11,8 knots. Classificaion КМ Arc4 R3 Aut3 Tug by Russian Register of shipping. Propulsion system ВРК US 155, Rolls-Royce, FPP into nozzles. Powerplant 2*746 kW at 1800 r/min, Caterpillar С32. Deck equipment: bow electro-hydraulic 4/25 16TH VOLUME, NO. 67 DATED 23 AUGUST 2015 anchor-towing-mooring winch Fluidmecanica providing 10 t of bollard pull and 847 kN of brake holding force; 23 t towing hook SWL with quick release device. The tugboat is equipped with cargo crane РС 2300, Palfinger with lifting capacity of 150 kilos at the boom of 5m. In order to fulfil fire-fighting operations the tugboat is equipped with external firefighting system made by FFS (capacity is 800 m3/h, 2 water monitors, water curtains system).