The Information Authority for the Workboat • Offshore • Inland • Coastal Marine Markets

arine MARCH 2014 MNews www.marinelink.com

Optimize Your Fleet In the office + on board

Workboat Design The Future IncludesIncludes New Fuels

Shortsea Shipping Alive and well on thethe leftleft coast

Propulsion New build and Repower Solutions MN MAR14 C2, C3, C4.indd 1 2/21/2014 3:48:41 PM MN MAR14 Layout 1-17.indd 1 2/21/2014 3:14:05 PM CONTENTS

MarineNews March 2014 • Volume 25 Number 3

12 BY THE NUMBERS 8 Passenger Vessel Safety Record

INSIGHTS 12 Ben Billings President and CEO, Offshore Marine Service Association

FINANCE 18 Beating the Bye-Bye Bonus Blues A changing tax landscape doesn’t have to mean bad news – at least not just yet. By Richard J. Paine, Sr.

SHORTSEA SHIPPING 26 Real Marine Highways The Columbia/Snake River System defi nes shortsea shipping, and promises much, much more. By Sarah McCoy

FLEET OPTIMIZATION 30 Shelter from the Financial Storm Vessel operators seek protection by hedging fuel needs. It’s easier than you might think. By Susan Buchanan

PROPULSION 40 Repowering With a Purpose 26 Belgium Diesel Engine Manufacturer Provides Main Engine for Alaska Fishing Vessel.

BOATBUILDING 44 Short Seas in the Long Run Building for the possibility of shortsea shipping involves many variables. By Joe Hudspeth

VESSEL DESIGN 46 LNG Design: Necessity is the Mother of all Invention Jensen Maritime Consultants anticipates and meets demand in the burgeoning maritime LNG sectors. 46 By Joseph Keefe

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ISSN#1087-3864 USPS#013-952 arine -!2#( News WWWMARINELINKCOM Florida: 215 NW 3rd St., Boynton Beach, FL 33435 33 McAllister Avoids a Date M tel: (561) 732-4368; fax: (561) 732-6984 with the Drydock New York: 118 E. 25th St., New York, NY 10010 tel: (212) 477-6700; fax: (212) 254-6271 150-year old workboat www.marinelink.com operator McAllister Towing & Transportation is always PUBLISHER John C. O’Malley • [email protected] looking for ways to optimize fl eet operations. McAllister and Optimize Your Fleet Associate Publisher & Editorial Director  ,QWKHRIÀFHRQERDUG Greg Trauthwein • [email protected] mechanical pipe-joining systems :RUNERDW'HVLJQ manufacturer Victaulic recently 7KH)XWXUH,QFOXGHV1HZ)XHOV Editor teamed up to do just that. The 6KRUWVHD6KLSSLQJ Joseph Keefe • [email protected] $OLYHDQGZHOORQWKHOHIWFRDVW story starts on page 33. 3URSXOVLRQ Tel: 704-661-8475 1HZEXLOGDQG5HSRZHU6ROXWLRQV

Web Editor Eric Haun • [email protected] INSURANCE Contributing Writers Susan Buchanan • Lawrence R. DeMarcay, III • Joe Hudspeth • Randy O’Neill Know thy Contracts, and the Liability 24 PRODUCTION Production & Graphics Manager Nicole Ventimiglia • [email protected] Accompanying Them Interconnectivity can drive opportunity, but also SALES affects our businesses. Vice President, Sales & Marketing Rob Howard • [email protected] By Christopher Cooke

Advertising Sales Managers FLEET OPTIMIZATION National Sales Manager Terry Breese • [email protected] 33 McAllister Avoids a Date with the Drydock Tel: 561-732-1185 Fax: 561-732-8414 Unconventionally lowering costs, safely and Lucia Annunziata • [email protected] Frank Covella • [email protected] improving the bottom line. That’s the Victaulic way. Tel: 212-477-6700 Fax: 212-254-6271 Tel: 561-732-1659 Fax: 561-732-8063 By Dennis Love Mitch Engel • [email protected] Mike Kozlowski • [email protected] Tel: 561-732-0312 Fax: 561-732-8063 Tel: 561-733-2477 Fax: 561-732-9670 PROPULSION Dawn Trauthwein • [email protected] Jean Vertucci • [email protected] Tel: 631-472-2715 Fax: 631-868-3575 Tel: 212-477-6700 Fax: 212-254-6271 36 Gulf Coast Workboat Repowered with Managing Director, Intl. Sales Volvo Penta Diesels Paul Barrett • [email protected] Uwe Riemeyer • [email protected] Tel: +44 1268 711560 Tel: +49 202 27169 0 Volvo Penta’s impressive fuel consumption and perfor- Fax: +44 1268 711567 Fax: +49 202 27169 20 mance prompts repower job with D16 engine package.

Sales & Event Coordinator Michelle Howard • [email protected] 6 Editor’s Note

Classifi ed Sales 22 OP/ED: Infrastructure Funding &WRRDA (212) 477-6700 By Michael J. Toohey

CORPORATE STAFF 42 Boat of the Month: Alion, Robert Allan Design Manager, Public Relations Mark O’Malley • [email protected] High-Tech Research Vessel Manager, Info Tech Services Vladimir Bibik • [email protected] 49 TECH FILE: CIRCULATION Circulation Manager Kathleen Hickey • [email protected] CEACT Allows Operators to REACT 50 People & Company News TO SUBSCRIBE: 55 Products Subscriptions to Marine News (12 issues per year) for one year are available for $60.00; Two years (24 issues) for $95.00. 60 Classifi eds Send your check payable to: MarineNews, 118 E. 25th St., New York, NY 10010. 64 AD Index For more information email Kathleen Hickey at: [email protected] MarineNews ISSN#1087-3864 is published monthly, 12 times a year by Maritime Activity Reports, Inc., 118 East 25th Street, New York, N. Y. 10160-1062. The publisher POSTMASTER Time Value Expedite assumes no responsibility for any misprints or claims and actions taken by advertisers. The publisher reserves the right to refuse any advertising. Contents of this publication either in whole or in part may not be reproduced without the express permission of the publisher. POSTMASTER: Send address changes to MarineNews, 850 Montauk Hwy. #867 Bayport, NY 11705. MarineNews is published monthly by Maritime Activity Reports Inc. Periodicals Postage paid at New York, NY and additional mailing offi ces.

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ust back from shoveling eight inches of snow from my driveway (in Charlotte, NC), I am reminded that things don’t always go as planned. Actually, my 16 year old son did most of the Jwork, while I gave constructive advice (I AM the Editor, after all) based on years of experi- ence enduring much worse than this while growing up in Massachusetts. That dialogue might be slightly off topic but then again, maybe not. And, maybe I did do a little bit of planning, after all. The driveway got shoveled, didn’t it? The headliner for this edition of MarineNews is all about Fleet and Vessel Optimization. That said; optimizing the marine industry is about more than just equipment. Before any of that envi- ronmentally correct, high tech bells and whistles can be put into service, there has to be a plan and [email protected] a place for those workboat platforms to safely transit on their myriad missions. Therefore, it’s just as important to pay at least as much attention to infrastructure, waterway development and govern- ment policy as you do when it comes to selecting which fuel to use so as to achieve compliance with present and future emissions standards. Shortsea shipping and hope for the renewal of our critical locks and dams are both alive and well. Inside, you’ll fi nd out how, and why. In your spare time while taking a break from lobbying your elected offi cials for a more sensible Na- tional Maritime Strategy, a little prior planning on the business end of the equation can save you a ton of money on the back end. For example, Susan Buchanan takes us through the machinations of hedg- ing your fuel purchases as a way of protecting your bottom line against the unpredictable, wild swings of bunker pricing. Or, perhaps, avoiding a trip to the shipyard while accomplishing much needed re- pairs to critical equipment is more your style. Never fear: both case studies are included in this edition. Fleet optimization is a broad term that can mean many things. In my book, it’s also about the upfront vessel design that impacts so many aspects of the expected lifespan of a vessel. Those deci- sions involve expected service location, intended fi t-for-purpose missions, the environment and so much more. A look at today’s Jensen Maritime design portfolio – heavy on LNG power and logistics – brings that point home nicely. The story begins on page 46. As we put the fi nal touches on this March edition of MarineNews, the winter storm that has ravaged the nation, from the Deep South and on to many parts of the U.S. East Coast, is still rag- ing outside. Deeply impacting all manners of daily business, it’s a stark reminder for all maritime stakeholders that the best laid plans – in business, government or anywhere else – don’t always go as we would like. That’s the nature of operating workboats in a maritime environment. It’s why we optimize our operating environment, our equipment and our personnel. How that happens makes all the difference. Let’s get to work.

Download our Apps iPhone & Android Joseph Keefe, Editor, [email protected]

SUBSCRIBE Subscribe to the print or electronic edition of MarineNews at www.marinelink.com/renewsubscr/Renew04/subscribe.html or e-mail Kathleen Hickey at [email protected] DAILY NEWS via E-MAIL Twice every business day we provide breaking news, tailored to your specifi cation, delivered FREE directly to your e-mail. To subscribe visit http://maritimetoday.com/login.aspx POST & SEARCH JOBS Job listings are updated daily and help match employers with qualifi ed employees. Post a position or keep abreast of new employment opportunities at http://www.maritimejobs.com ADVERTISE MN offers a number of print and electronic advertising packages. To see our editorial calendar and advertising rates, visit www.marinelink.com/AdvRates/Rates.asp Online Resources

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MN MAR14 Layout 1-17.indd 6 2/21/2014 3:15:11 PM MN MAR14 Layout 1-17.indd 7 2/21/2014 3:15:57 PM BY THE NUMBERS Passenger Vessel Safety Record Defi es NTSB Hit List The National Transportation Safe- be completed no later than March emphasizes safety in any number ty Board (NTSB) recently released its 2006. These regulations substantial- of ways, including the development annual “Top 10 Most Wanted List” ly upgraded small passenger vessel and testing of its “Flagship” Safety of Transportation Improvements for lifesaving equipment requirements. Management System. The Coast 2014. New this year was the issue Since then, the defi ned weight Guard also says that fatalities and of passenger vessel safety. Between of passengers on these vessels has injuries on small passenger vessels 2000 and 2010, several accidents been adjusted to 185 pounds, fully “are very rare occurrences” and when involving passenger vessels occurred. 25 pounds more than the previous grouped by type of accident, “there Additionally, NTSB investigations benchmark of 160 pounds. Myriad are no trends and patterns.” But, “revealed in numerous cases that the other regulations also apply. don’t take their word for it. Instead, cause of an accident was not the fail- Not surprisingly, the Passenger look at the numbers: ure of the vessel but the lack of good Vessel Association (PVA), the voice Because a single major event has safety practices that led to the loss of of this diverse, but important sector a signifi cant impact on the statistics life and injuries.” of the domestic maritime industry, because of historically low fatality The domestic passenger vessel thinks that they have been painted rates in this sector, the NTSB’s own industry is highly regulated. Safety unfairly. So does the U.S. Coast numbers are particularly useful dis- regulations for small passenger ves- Guard’s Assistant Commandant for pelling any notions about unsafe sels took effect starting in 1996 for Prevention, Admiral Joseph Servi- operations. Of the 32,885 trans- new construction, with phased im- dio, who recently praised the PVA portation fatalities reported in 2010 plementation for existing vessels to for its strong safety record. PVA by the NTSB (Figure 1), just 733

Domestic Passenger Vessels at a Glance … 6,000: Number of small passenger vessels.

550: Number of vessel operators and associate members of the Passenger Vessel Association (PVA).

200 million: number of passengers carried annually.

447,150: Aggregate passenger capacity of the nation’s passenger vessel fl eet.

7 to 1,300: range of passenger capacities on board the PVA fl eet.

185: Coast Guard’s Assumed weight of each passenger in pounds (January 1 2012).

160: Previous assumed weight of passengers in pounds.

< 2: average of fatalities per year nationwide due to ferry vessel operations (Coast Guard data).

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drugs and alcohol and the other, highly regulated small passenger ves- sels (SPVs) of 100 tons or less with comprehensive chemical testing re- quirements – were compared. The drug test results that marine employ- ers submit to the Coast Guard were also compared. U.S. Documented small passenger vessels (SPV) – or in other words, the core of the PVA demograph- ics – and their crewmembers are among the most heavily regulated of all U.S. documented categories. Conversely, U.S. Documented com- mercial fi shing vessels (CFVs) are subject to the least amount of regula- tion. CFV’s are, however, subject to Post-Accident drug and alcohol test- ing – presenting a perfect contrast to SPV crewmembers for comparison. Figure 1 compares Post-Accident verifi ed positives for one or more drugs between CFVs and SPVs from 2003-2011. Each year, the positiv- ity rates of CFVs are higher than the positivity rates of SPVs by at least 32% and as much as 96%. SPV crewmembers averaged 77% fewer positive drug tests than CFV crew- members. Figure 2 compares Post- Accident alcohol test positivity rates between CFV and SPV crewmem- happened on the water and only 17 that there are bigger problems else- bers. With minimal variations, Post- attributable to passenger vessel ac- where. For example – and echoing a Accident alcohol test positivity rates cidents. That fi gure decreased even previous report made is these pages of SPVs were lower than CFVs by more in 2011 (Figure 2.). Finally, (October 2013) – the Coast Guard at least 14% and as much as 100%. the Coast Guard also asserts that the in 1988 implemented chemical test- SPV crewmembers averaged 73% majority of fatalities ( 83%) were ing to discourage drug and alcohol fewer positive alcohol tests than not related to operation of a vessel use by vessel personnel and enhance CFV crewmembers. but rather resulted from diving acci- safety. A recent study gauged the The safety record of domestic pas- dents, swimming, snorkeling or nat- effectiveness of this chemical test- senger vessels is very good. Arguably, ural causes. These non-vessel-related ing. Post-Accident drug and alcohol it is unrivaled by any other mode fatalities, says the Coast Guard, stem test results of crewmembers from in the modal transportation chains. from unregulated activities. two vessel categories – minimally NTSB oversight is a good thing. In Based on these numbers, it’s a curi- regulated commercial fi shing vessels this case, those resources are misdi- ous thing that the NTSB would tar- (CFVs) with no chemical testing re- rected to the detriment of other more get passenger vessels when it is clear quirements except for Post-Accident pressing issues lurking elsewhere.

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Senator Mary Landrieu and the Senate Homeland Security Committee, where he held various positions including Se- nior Policy Advisor, Legislative Director, and Staff Direc- tor, working on numerous maritime issues including the Jones Act, TWIC, Title XI, MTSA, vessel and port securi- ty, inspections, crewing, licensing, oil spill response, ballast water, notice of arrival, responder immunity, and Coast Guard missions and assets. In other words, his skill pack- age runs the full gamut of what OMSA members hold near and dear. A native of New Orleans, Billings today fi nds himself right at home at OMSA headquarters. Listen in as Ben Billings, he weighs in on the current state of industry, what could come next, and the important work that will precede it.

You assumed the helm at OMSA before the New Year President & CEO and now have a full quarter of work behind you. Give us your fi rst impressions of the offshore marine out- Offshore Marine look and current situation. This is an exciting time for the offshore marine indus- Service Association try. Production in the Gulf has returned to pre-Macondo levels, drilling rigs are coming back after years in exile, and Ben Billings serves as President & CEO of the Offshore service companies are growing their fl eets and commission- Marine Service Association (OMSA), a nationwide trade ing bigger, more sophisticated vessels to meet demand and association headquartered in New Orleans that represents expectations. U.S. shipyards entered into 111 contracts more than 200 member companies. OMSA’s membership last year for the construction of offshore oil and gas sup- includes approximately 100 fi rms operating more than port and dynamic positioning vessels and America in fact 1,200 vessels that provide transportation services to the is now a net exporter of these vessels, with over $500 mil- offshore oil and gas industry in the Gulf of Mexico and lion in OSVs sold internationally in 2012. A demanding around the world. It’s arguably a very good time to be at and rigorous safety culture has also resulted in some of the the helm of OMSA, with a resurgent U.S. Gulf of Mexi- best HSE statistics in the world. So, the market outlook co deepwater market, a red hot Gulf Coast boatbuilding and safety culture for workboats in the Gulf of Mexico is boom in progress and in general, a domestic energy situ- positive, which is good for our members, good for the Gulf ation the likes of which hasn’t been seen in decades. Nev- region, and good for the country. And while the signs are ertheless, he has his work cut out for him in many other positive and expectations are high, hyper-regulation has ways. That’s because Billings leads the association’s efforts become the new normal for this industry, so an organiza- to represents its members’ interests before Congress, feder- tion such as OMSA is needed now more than ever before. al agencies, the federal court system, foreign governments, the International Maritime Organization (IMO), and You bring to OMSA deep Washington, D.C. experi- state and local offi cials. OMSA also manages programs on ence from the legislative side of the equation. What Jones Act compliance, vessel security plans, safety orienta- can maritime organizations like OMSA do better to tion, environmental compliance, and operational training. communicate “the message” to our elected offi cials Even as the oil patch recovers, the pressure to relax and what is that “message”? certain aspects of the Jones Act continues. Fortunately, We need to proudly and unapologetically tell our story Billings knows his way around the Hill. Prior to joining – the story of the U.S. as a maritime nation, the benefi ts of OMSA, Billings worked in the United States Senate for a strong merchant marine fl eet as a source of national sov-

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ereignty and security, the job impact and economic impor- As a native of New Orleans, a Washington Insider and tance of the domestic maritime industry both nationally and someone with good familiarity to the local economy, locally, the dominant role of marine transportation in com- markets and the impact that the OMSA family can merce, the exceptional safety and environmental record of have on all of that, what’s your take on the coming the U.S. maritime fl eet, and the ongoing surge in domestic fi ve years? Are we headed in the right direction? marine manufacturing and job creation. Once they under- There’s a great deal of opportunity in the Gulf of Mexico stand the maritime industry and why it matters, we need for continued offshore supply service, the addition of U.S- to explain the absolutely critical role that our government fl ag capacity for installation and construction, and for plug plays in promoting this industry though construction loan and abandonment work on older wells. Beyond the Gulf guarantees and workforce training programs, taking a bal- and in the years ahead, I’m optimistic about the resump- anced approach toward regulation, and upholding the na- tion of lease sales in the Atlantic, new openings in Mexico’s tion’s coastwise shipping laws – whose origins date back to offshore market as a result of recent political developments, the framers of the Constitution – in order to create maritime a pathway forward to increase exploration in the Beaufort jobs here in the U.S. instead of allowing foreign-fl ag vessels and Chuckchi Seas off Alaska’s coast, and development of that don’t play by the same rules to take those jobs and weak- Brazil’s considerable offshore reserves. We’re also keeping en our nation’s economy and strategic defense capabilities. an eye on the Atlantic offshore wind market and potential transportation opportunities there. Opportunity abounds What’s the most pressing item on your plate and that for the domestic offshore marine industry, but regulatory of the OMSA family? effi ciency and enforcement of coastwise trade laws will Our members are struggling to keep pace with a never both be necessary to fully realize the economic benefi ts. ending tide of new and changing regulations. Compliance costs continue to grow, and smaller operators are forced to You’ve already said that among your priorities com- dedicate more time, effort, and manpower that they don’t ing into this job, proper enforcement of the Jones Act, sensible and effi cient regulatory regimes, and have available to government-mandated paperwork in- delivery of value-added services to OMSA’s member- stead of sales, marketing, safety, or business development. ship are at the top of the list. Talk about the Jones Act This frustration is not uncommon in the maritime indus- for a minute – is it under assault at the moment, or try, but it’s exacerbated among the offshore fl eet which is have we reached a “safe” place for the time-being? subjected to requirements that are written for other types The threat remains, but I’d like to believe we’re less of vessels and make no operational or economic sense for vulnerable now, thanks to industry’s sustained efforts to OSV’s, but are made applicable nonetheless. educate Congress and the administration about the im- portance of the Jones Act, dispel myths and exaggerations Increasingly, U.S. fl ag operators are entering the using economic data, and increase domestic vessel capac- highly specialized offshore marine construction game with new, built-for-purpose tonnage. This wasn’t ity to meet customer demand in a cost-effective manner. always the case. Is there enough sophisticated U.S. We work closely with the American Maritime Partnership fl ag tonnage to get the job done in the U.S. Gulf to- (AMP) on the outreach portion of this effort and appreci- day, or is the window still open for producers to ask ate their leadership. Unfounded criticisms may continue for waivers and bring in registered vessels? to arise, but I’m confi dent that an objective and holistic Market conditions and technological advancements are analysis of the Jones Act will reveal its value as a source part of the reason for this trend. At the same time, lax en- of economic strength to our nation, and our industry will forcement of coastwise laws in the past caused fl eet atro- always be prepared to demonstrate that fact. phy in the same manner that more consistent enforcement is now promoting growth. As energy development oppor- SEMS – the Safety and Environmental Management tunities in the Gulf become more numerous and complex, System which has altered the offshore work safety rules and training regime – is impacting your mem- the domestic marine industry is increasing and modern- bership. But how much, and more importantly, how izing tonnage to meet customer needs in a cost-effective much is it costing them? Is this new regulatory re- manner and creating good-paying U.S. jobs in the process. quirement worth the drag on the bottom line? This is a win-win situation, and it’s important that we con- The Deepwater Horizon accident caused unprecedented tinue translating advances in domestic energy production damage, and I think every American expected their gov- to economic growth in the domestic maritime industry. ernment and the drilling industry to investigate the causes

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and take reasonable steps to prevent another unmitigated has largely rebounded since 2010 despite some kinks in the blowout from occurring. The devil’s in the details though, process, moratoria elsewhere and the cancellation of 2010 and some SEMS requirements are more sensible than oth- lease sales in Alaska and the Atlantic continue to stymie ers. If practical measures can be taken to prevent a serious economic growth in other parts of the country. accident that is otherwise likely to occur, those actions are worth taking. When the risk is negligible – in terms of Your predecessor, Jim Adams, had to deal with many its probability or consequences – the requirement may be challenges. These included fi ghting the Administra- altogether unnecessary. Where the risk is signifi cant but tion’s offshore drilling moratorium, repealing the the prescribed remedy overly burdensome or extreme – Coast Guard’s fl awed Notice of Arrival regulation, and taking a leadership position in the American Maritime technologically, logistically, or fi nancially – the require- Partnership (AMP) to strengthen the U.S. maritime ment may need to be replaced. Offshore vessels are already industry, just to name a few. Tick off the three or four subject to BSEE’s SEMS requirements through a contrac- challenges that will immediately impact your tenure. tual relationship with the operators. Despite that fact, the Jim has done an incredible job, and I’ve learned a lot Coast Guard is considering a new rule that would establish from him during the course of our transition. Our orga- yet another SEMS regime and additional requirements for nization is in a better place now because of his efforts, but offshore vessels. This effort is both duplicative and unnec- new challenges in this business are always just around the essary and could result in millions of dollars in compliance corner. For one, our country’s energy transportation infra- costs without producing any real benefi ts for crewmem- structure is struggling to keep pace with new sources of sup- bers or the environment. It could even have the opposite ply and shipping routes. That is true in the pipeline, truck- intended effect, by reducing the focus on safety initiatives ing, rail, and marine sectors, and it’s critical that America’s and environmental consciousness, in favor of carrying out energy and transportation industries work together with new legal and administrative tasks instead. policymakers to address this challenge. In addition, foot-

The Bureau of Ocean Energy Management, Regula- dragging and hurdles to new offshore energy development tion and Enforcement (BOEM) controls the offshore outside the Gulf of Mexico are impeding economic growth. oil & gas lease permitting process. That process has Lastly, the breadth and confusing nature of STCW regula- fi nally reached a better pace in the wake of the Ma- tions published by the Coast Guard in December has left condo disaster. Is it moving fast enough? If not; why many in the offshore marine industry feeling baffl ed and not? And, what can we do to make that happen? overwhelmed. This is just a sample of the challenges we are The pace of permitting in shallow and deep water has focused on, but they loom large on the horizon. improved in the Gulf of Mexico since 2010. The Bureau of Safety and Environmental Enforcement (BSEE) ap- As you begin your tenure at OMSA, we fi nd ourselves proved 129 new wells last year, including 57 in deep wa- collectively in a place where, arguably, the domestic ter. By contrast, only 2 deep water permits were issued in boatbuilding climate has rebounded to its best posi- 2010. In March, the Bureau of Ocean Energy Management tion in more than three decades. What can we do col- lectively to continue that winning streak? (BOEM) will also be holding the 4th and 5th of 12 lease It’s an important story that needs to be told, and proper auctions planned for the Gulf of Mexico area as part of the enforcement of the Jones Act is paramount to sustaining this administration’s 2012-2017 plan. These are positive devel- trend. The shipbuilding surge demonstrates the ability of opments. I’m sure our customers who engage directly in the domestic yards to respond to market demand for Jones Act leasing and permitting processes with DoI have some excel- tonnage. It also represents an economic boon to the U.S. lent suggestions to improve them, and I believe that BSEE economy that would have been outsourced to foreign econo- is willing to listen. Admiral Jim Watson’s collaborative style mies if certain individuals had gotten their way. Instead, we of leadership at BSEE was widely appreciated within the are creating thousands of good-paying jobs here in the U.S., energy industry, and I believe they’re looking forward to training the next generation of skilled laborers and mariners continuing that relationship with Admiral Brian Salerno, for promising careers in the domestic trade, expanding the who replaced him last year. Despite marked improvements employment pipeline for our military veterans, and strength- in the Gulf of Mexico, I would be remiss if I failed to point ening America’s merchant marine. Increased access to private out the obvious fact that 86% of federal waters in the Unit- capital is important to building on this success along with ed States remain off-limits to energy development and the funding and reforms to MARAD’s Title XI programs. jobs it creates. So while the permitting process in the Gulf

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Beating the Bye-Bye Bonus Blues A changing tax landscape doesn’t have to mean bad news – at least not just yet. By Richard J. Paine, Sr.

For the past eleven years, with the MEETING THE BURDEN OF BONUS DEPRECIATION exception of 2006 and 2007, bonus In general, there are a number of requirements that would depreciation and increasing Section need to be met in order to take bonus depreciation in 2014: 179 tax deductions have been part of • The vessel has to have a recovery period of not more the federal tax landscape. Beginning than 20 years (and possibly less than 10) if qualifi ed as with the Bush administration’s Job “transportation property.” This covers typical Creation and Worker Assistance Act of commercial vessels. 2002, and renewed in some form every • The ship owner had to have entered into a written year since in every subsequent year, the binding contract to purchase the vessel prior to purposeful stimulation of demand for manufacturing and January 1, 2014. A written binding contract is a commerce was initiated designed to get the economy, man- contract that has enforceable economic penalties should ufacturing and job creation moving in a positive direction. the ship’s owner not purchase the equipment for whatever reason. A CHANGING LANDSCAPE • A signifi cant amount of the construction work needed Historically, bonus depreciation has had a signifi cant to have begun in 2013. This can be demonstrated by effect on construction of new vessels, allowing businesses progress as shown in the construction contract or to initially expense 30 percent, occasionally 100 percent through a 10 percent of cost safe harbor. A 10 percent and most recently 50 percent, plus the standard Modifi ed deposit would meet this test. Accelerated Cost Recovery System (MACRS) of the cost • Building time for the vessel has to be in excess of one year of newly built equipment. In the fi rst year of purchase, and carry a cost of over $1 million. this had a signifi cant effect on the building of new vessels. • The property must be new (original use beginning with Order books at most builders swelled as the incentives the taxpayer) and be placed into service during 2014. kicked in. Section 179 expensing for “new to you” assets ranged from a low of USD $20,000 in 2000 all the way to If all of the foregoing criteria are met, with the necessary $500,000 in 2013. qualifi cations satisfi ed, the ship owner may take 50 percent Then, in December of last year, the U.S. Senate rejected bonus depreciation in 2014 for 2013 business, provided legislation that would have continued bonus depreciation that the property is placed in service in 2014. The written and the higher limits on Section 179 expensing. So, at binding contract may be the hardest test to meet. The term midnight, December 31, bonus depreciation expired and “written binding contract” is defi ned by IRS regulations the Section 179 expensing fell from a $500,000 cap with to mean any contract that is enforceable under state law a $2 million investment ceiling to a $25,000 cap with a against the taxpayer and does not limit damages to a speci- $200,000 investment ceiling. Ouch. fi ed amount. For this purpose, damages are not considered As MarineNews went to press with this column, there limited if the contract contains a provision that limits dam- was little probability that these tax incentives will be re- ages to at least 5 percent or more of the total contract price. newed. That said; all is not lost – not yet, anyway. While on its last few gasps of breath, bonus depreciation can still MORE OPTIONS be applied as a tax strategy in 2014 for 2013 business con- In the event that your business has missed the window ducted in 2013 (IRS Regulation §1.168 [k]-1. Additional for bonus depreciation and expanded Section 179 expens- fi rst year depreciation deduction and Internal Revenue ing, or have has used up a signifi cant portion of its available Code Section § 168 Accelerated cost recovery system). depreciation, there still may be a way to reduce its tax bill.

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For example, if your business still has debt payments from a mortgage is $1,339,784.62. Since the business has already loan and is about halfway through the amortization period, depreciated most of the original cost under bonus plus it may be time to consult with your accountant and per- MACRS, a sale/leaseback for that amount may offer you form a cost/benefi t analysis of a sale/leaseback transaction. tax benefi ts from the amount of the rent you pay that is no In an operating lease, such as a bareboat charter, your longer available though the mortgage. rent payment is, in most cases, 100 percent deductible. In The sale of the vessel may create a taxable event whether a bareboat charter, the business does not own the equip- or not a business has claimed its legal depreciation. To ment; you rented it for a period of time. The business may calculate your basis, take what you paid for the asset, add- be offered an early buyout option (EBO) to exercise and it ing in any capital repairs or improvements, and then sub- may choose to buy the equipment at that time. If the busi- tract the depreciation. If a business sells it for more than ness chooses not to exercise the EBO, at the termination of the original price, the profi t will be subject to capital gains the charter it may have the option to purchase, re-charter it tax. The IRS also charges a tax, which varies depending on or return the equipment to the ship owner. what is being sold, on the difference between the depreci- In a loan, a business can deduct depreciation and inter- ated basis and the selling price. (Any gain on the sale is est, but not principal. If you used up most of your depre- taxed as ordinary income to the extent the business previ- ciation, either from aging or accelerated the depreciation ously took depreciation. Any gain above and beyond that, under bonus, the benefi t of ship ownership may decline. is taxed as capital gains). Let’s say that at the end of fi ve years on a $2,000,000 In the end, each individual situation will vary. De- ten-year loan, the principal balance remaining on the ship’s pending on the fi nancial condition of your business, ship ownership may be of diminished tax benefi t to you. One available option is to identify a fi nancing source that fi nds ownership attractive and consider selling your the vessel to them. As the asset will be new to them, the purchasing party will depreciate it and use that depreciation to reduce the amount of rent paid by the business. By having the business rent the vessel back from the purchasing party, they may be able to deduct the rent from your their taxes. Everybody ends up happy.

Richard J. Paine, Sr. is the National Finance Manager – Commercial Marine Group for TCF Equipment Finance, Inc. He can be reached at [email protected]. The perspective offered by Mr. Paine is based on his own expertise and not necessarily the view of TCF Equipment Finance. The author is neither an accountant nor a tax advisor. The foregoing information is in no way intended as tax or accounting advice. Make sure to seek your accountant’s advice, as each situation may differ.

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About Time By Michael J. Toohey

On January 17, 2014, Congress additional funds to navigation construction; $27 million averted another government shutdown added for navigation O&M; $128 million in additional with a “just in time” delivery of an Om- O&M funds for deep draft ports and an additional $42 nibus Appropriations bill. Thankfully, million for inland navigation; additional $40 million for some good news for the inland water- small ports O&M; and additional dredging funds of $5 ways also has arrived; Just in Time! million for Mississippi River Tributaries (MRT). The recent Consolidated Appropria- This is very welcome news to the inland waterways in- tions Act of 2014, or Omnibus bill, has dustry, whose lock and dam infrastructure is challenged brought a healthy funding level to the because of declining funding levels to modernize and U.S. Army Corps of Engineers. This new law contains the maintain it. Most of the inland waterways locks and dams FY 2014 Energy & Water Development and Related Agen- were built in the 1930s with a projected 50-year life span. cies Appropriations Act that funds the Corps’ Civil Works Today, of the nation’s 241 locks, 57% are 50 years or older, program. The total program funding level of $5.467 bil- while 26% exceed 70 years of age. lion represents a $749 million increase over the FY 2013 More good news came our way during the State of the post-sequester enacted level, and is a 15.9% increase rela- Union address on January 28 when President Obama tive to FY ‘13 funding levels. urged Congress to pass a Water Resources Reform and De- The Corps’ Operations & Maintenance (O&M) ac- velopment Act (WRRDA) this year, and connected the na- count received $2.86 billion, a 25% bump over FY ’13 tion’s waterways to jobs, saying, “Moreover, we can take the post-sequester levels, the highest appropriations level ever money we save from this transition to tax reform to create for O&M in an annual appropriations bill. jobs rebuilding our roads, upgrading our ports, unclogging Within the bill’s 4.4% increase – to $1.656 billion – for our commutes – because in today’s global economy, fi rst- the Construction account, Inland Waterways Trust Fund class jobs gravitate to fi rst-class infrastructure. We’ll need (IWTF) projects received a 28.6% increase over FY ‘13 Congress to protect more than 3 million jobs by fi nishing funding levels, a 46.3% increase over the Administration’s transportation and waterways bills this summer. That can FY ’14 proposed budget. The Trust Fund projects will get happen,” President Obama said during the speech. at least $81.5 million in additional undesignated funding The nation wins when the waterways transportation sys- above what was proposed in the FY ‘14 budget. The Corps tem is modernized in a way that is fair and equitable to our is tasked with deciding where to spend these amounts, and manufacturers, farmers and shippers because it can result in details will be made available when the Corps submits its the creation and sustainment of American jobs, increased work plan 45 days from enactment of the bill. $163 mil- exports, and billions of dollars injected into a still-lagging lion is provided for the Olmsted Lock and Dam project. U.S. economy. Failure to invest, however, risks America’s The legislation establishes a cost-sharing formula for competitive advantage in marketplaces around the globe. FY14 funds for Olmsted from the 50%-50% cost-share WCI continues to press Congress to pass a fi nal water to 75% General Funds and 25% Inland Waterways Trust resources bill that offers comprehensive capital investment Funds. The bill also authorizes up to four new starts to be to our nation’s inland waterways system. Both the Senate- selected from inland navigation, fl ood control and storm passed WRDA and House-passed WRRDA are strong bills damage prevention, and ecosystem restoration mission ar- that the Conference Committee should be able to recon- eas, only one of which may be an ecosystem project. The cile quickly to be signed into law. Corps has 45 days from enactment to select projects for America needs a WRRDA bill just in time. the new starts as well, with very specifi c guidance on use of the funds. With more than 30 years of federal Additionally, the legislation signifi cantly increases spend- government expertise, Mike Toohey ing for port and navigation channel improvements, with $1 serves as WCI’s President and CEO. billion from the Harbor Maintenance Trust Fund. Beyond specifi c project allocations, the bill provides $47 million in

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Know thy Contracts, and the Liability Accompanying Them ‘No man is an island.’ Today, the interconnectivity of business can drive opportunity, but those same interactions can signifi cantly affect us and our businesses.

Christopher Cooke, VP of General Liability, XL Group’s North America Marine business. Today’s marine businesses have to repair. At the end of the day, the marina’s insurance policy manage and prepare for the actions of was hit with a loss, and Charlie learned a lesson. “the other guy” as much as they have While not a tremendously big loss, it was a loss nonethe- to manage their own operations. While less, so being the good businessman that Charlie is, he re- businesses often ask their customers, vised is contract with his tenants to assure that they would tenants, and subcontractors to carry name the marina as an Additional Insured with a Waiver of insurance, they often do not carefully Subrogation, and that the marina would be provided with delve into insurance specifi cs to assure a Notice of Cancellation (NOC) should any of their insur- that gaps in insurance coverage don’t ances ever be cancelled or substantially changed. exist, that limits are adequate, or that they have the right coverage for their operations. PROBLEM SOLVED? Either way, Charlie felt good about his new contract. UNFORESEEN LIABILITY ISSUES Accidents happen but now, he felt more protected with To explain some unforeseen liability issues that may occur, his current contract and with the requirements he placed let’s create a hypothetical risk scenario about a marina owner on his restaurant tenant. And Charlie’s business, and his named Charlie Seashell, who was born and raised around the tenants’ operations, continued to grow. Barnacle Bill’s ob- water and was as salty as a clam. Charlie ran the Seashores tained a liquor license and that boosted its popularity, not Marina and over the years he built quite an operation and a only among the Seashore’s boating community but among strong reputation to go with it. The marina, like most busi- local community residents as well. Charlie also leased space nesses, catered to their customers, and in this case that was to some industrious young entrepreneurs who opened a jet- the recreational boat owner. To provide their customers with ski rental business on one of the fi nger piers at the marina. the best of marina experiences, Seashores Marina sub-let out Then on one fi ne sunny day as Charlie is standing in a 2,000 sq. ft. building to a four star restaurant called Bar- front of the marina offi ce he noticed a restaurant patron nacle Bills, and contracted out their boat fueling operations wobble out of the Barnacle Bills, pop a breath mint, and and their boat repair operations. Boat owners who rent slips wander over to the Jet Ski rental pier. Fifteen minutes later, at Seashores could entertain friends, fuel up for a fi shing trip he sees the same patron sitting on a jet ski waving thanking and have their boat maintenance handled right on site. the fuel attendant, and then pulls away from the fuel dock, Like most marina operators, Charlie required his tenants nozzle and all. The resulting accident sends 500 gallons of to provide him with Certifi cates of Insurance which name gasoline into the water, ignites the fuel dock, and sends the the marina as an Additional Insured. What’s important to jet skier head fi rst into the adjoining dock. Charlie goes note about Certifi cate of Insurance is that they just prove into immediately into action, deploying fi refi ghting equip- that the business has insurance coverage at the time that they ment, oil containment booms, and calling 911. Within a handed over the certifi cate. There are typically no further couple of hours the incident is well under control, and alerts or notifi cations if a tenant revises coverage or a policy Charlie with the knowledge that his marina is now safe, is terminated for any reason. Charlie, however, trusted his and that the solid contract he has with his tenants which tenants and did not think twice about it after the fact. includes a full indemnity provision, will provide the ma- One day, a restaurant patron slipped and fell in the park- rina with the protections needed. Or, did it? ing lot outside Barnacle Bills restaurant. The patron fi led a Turns out, however, in the excitement of obtaining a li- claim against the restaurant for personal injury, and while quor license, Barnacle Bill’s overlooked the fact that they they were at it, included Seashell Shores in the claim as might need Liquor Liability coverage to go along with it. In well. The restaurant’s insurer defended both the restaurant fact, like many Commercial General Liability (CGL) poli- and the marina, but after the claim was settled, the in- cies, Barnacle Bill’s CGL policy included Liquor Liability surance company subrogated the claim against the marina exclusion. Therefore, a smart move on their part would be that was responsible for keeping the parking lot in good to purchase a stand–alone Liquor Liability policy. A Liquor

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MN MAR14 Layout 18-31.indd 24 2/21/2014 3:22:30 PM Liability policy covers the legal liability imposed on a business that sells, dis- tributes or serves alcoholic beverages. A good deal of alcohol-related liability claims fi led against bars, taverns, and restaurants are a result of liquor-in- duced fi ghts or altercations, or water- craft accidents, in this case. That wasn’t the only gaping hole in Charlie’s tenant’s coverage. The fl edg- ling Jet Ski rental company had CGL policy but unbeknownst to Charlie, its policy included an Aircraft, Auto and Watercraft exclusion, leaving them with no insurance coverage to cover the patron’s claim. And wait, let’s not forget Charlie’s fueling station subcontractor who was equipped with a Marine General Liabil- ity (MGL) policy to cover his operations by the water. What he also had was an absolute pollution exclusion – therefore, he did not have fi nancial protection to cover the cost of the fuel spill cleanup.

LESSONS LEARNED Charlie learned a lot of lessons that day, and the marina’s insurance cover- age took a hit again as he was held liable for his tenant’s gaps in insurance cov- erage. Now Charlie is walking on egg shells until his next insurance renewal, as he knows that his continuing marina business is dependent on fi nding prop- er and affordable insurance coverage. Like Charlie, marine business owners need to review questionable contract terms with their insurance companies. Not only do they have to know they have the proper insurance to cover their operations in and out of the water, they also need to iden- tify what coverage(s) their tenants and contractors have and understand how the contracts that they have with each of these individual businesses may be able to impose some degree of fi nan- cial responsibility back on the marina. And, those caveats extend to all sorts of marine businesses.

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RealReal MarineMarine HighwaysHighways forfor RealReal IntermodalIntermodal SolutionsSolutions The Columbia/Snake River System defi nes shortsea shipping, and promises much, much more. By Sarah McCoy

ewiston, Idaho, is perhaps best known to tourists 700 feet. A typical barge on the system is 42’ wide and 274’ as the turnaround for a Columbia River cruise or long. Usually, towboats handle as many as four in a given Lthe jumping-off point for a trip to Hell’s Canyon, trip, and containers are a frequent cargo for these journeys. North America’s deepest gorge. For anyone transporting Barging also works well for transporting bulk commodities cargo, however, it’s known as the port farthest inland of like wheat, and the river system is a prime transportation any on the West Coast – a whopping 465 miles inland artery for agricultural commodities. The Pacifi c Northwest from the mouth of the Columbia River. Located close to ranks fi rst in the United States for wheat and barley ex- the border between Washington and Oregon, Lewiston, port. Beyond this, the Columbia/Snake River system leads Idaho’s only port, advertises itself as “strategically located” the West Coast for wood exports and is fi rst on the West at the far Eastern end of the extensive Columbia/Snake Coast for mineral bulks and second on the West Coast for River system. Even then, they may be selling themselves a automobile imports. little short. “We are an export heavy system, and play an important role in balancing the nation’s trade defi cit,” said Kristin America’s Marine Highway, West Coast Style Miera, Executive Director of the Pacifi c Northwest Wa- Ocean-going traffi c can range 145 miles up to the terways Association (PNWWA). The system is well estab- Bonneville Lock, 40 miles East of Portland, Oregon. From lished and the overall amount of cargo transported has re- there, a 14-foot channel goes to Lewiston, elevation about mained stable over the past ten years, said Miera. Annually,

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“We know that barging is good for the environment and for people. There are fewer spills associated with barging, and fewer accidents and fatalities. A typical 4-barge tow on the Columbia Snake River System is the equivalent of about 140 rail cars, or 538 trucks on the highway.”

– Kristin Miera, Executive Director of the Pacifi c Northwest Waterways Association

PNWWA says that ten million tons of commercial cargo Columbia. EGT’s facility is the fi rst export grain terminal valued at three billion dollars passes annually over this in- built in the U.S. in 25 years. land waterway. Including deep draft as well as well as inland cargo, the Barge Transport & amount of cargo moving on the entire Columbia/Snake Effi cient Agriculture Export River system in 2011 was 44 million short tons. Miera Miera emphasized the social positives of barge transport, added, “Please note that this is the number associated with “We know that barging is good for the environment and the deep draft as well as inland cargo. Some deep draft car- for people. There are fewer spills associated with barging, go does not originate from the inland system, and instead and fewer accidents and fatalities. A typical 4-barge tow arrives at the deep draft facilities via rail or truck.” on the Columbia Snake River System is the equivalent of The Port of Portland, through which almost all cargo about 140 rail cars, or 538 trucks on the highway.” He goes, reported a container total for 2013 as 178,451 TEU added, “We strongly support rail, trucking and barging – (twenty-foot equivalent units), Miera said. all three must be maintained and effi cient for cargo to fl ow. Half of all wheat exports arrive by barge. Twenty-fi ve Take away one entire mode, and there will be signifi cant grain elevators in this large farming region with its highly impacts to the other two.” developed river keep barge transportation very competi- At the far Eastern end of the river system, the region tive. In turn, low costs allow growers to price commodi- of rolling hills and deep soils known as “the Palouse” is ties at levels comfortable for export markets. In 2012, famous for its soft white wheat, which is used for crackers EGT, a state-of-the art grain export facility was opened and noodles in Asian countries. Farmers grow soft white in Longview, Washington, not far from the mouth of the wheat, peas, lentils and garbanzo beans, also known as

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“pulses.” As much as 80 percent of regional agriculture dock, the Port of Lewiston was working with U.S. and Ca- production is exported. Lewiston’s Port Manager David nadian companies and logistics fi rms to handle oversized Doeringsfeld said, “The majority of what we ship is paper cargo bound inland. For example, refi nery equipment has products manufactured by Clearwater Paper; peas and len- gone to the Kearl Oil Sands in Alberta, Canada. Wind gen- tils grown in the area; and container loads of wheat. Every- erators have made their way to the U.S. Midwest and parts thing we grow within a hundred miles radius is exported for coal-fi red electrical generation plants into Wyoming. overseas. The port allows us to cater to export markets.” Signifi cantly, Lewiston lies less than 800 miles by road “We move a lot of bulk grain shipments out of here. from the Sidney, Montana and Williston, North Dakota Bulk wheat shipments are the main commodities shipped area and may be a less-expensive alternative route to the on the Columbia/Snake River system. oil fi elds. In the past, shipments of pipe manufactured in These grain shipments are what allow containers on Asia have gone through the Panama Canal and then up barges to be cost effective. Because you’re moving these through Houston to oil producing areas. Lewiston and the grain barges up and down river all the time, it’s then cost Eastern Oregon ports of Umatilla and Morrow are looking effective to just tie in a container barge into that tow,” he for more oversize loads. said. Lewiston is versatile, as well. The long dock at the Port of Lewiston has also been used to send shipments downriv- Port of Lewiston: Expanded and Improved er. An Idaho company manufactured a load of 39 modular In the past, the Port of Lewiston had space for only one dorms and put them onto a 400-foot-long, 76-foot wide barge at a time at its dock, but after recent improvements, ocean going barge twice as big as most of the barges that two barges fi t comfortably. Now, said Doeringsfeld, “We’ll call on Lewiston. be able to load one while we’re unloading another. It also The barge took the dormitory parts all the way to opens up some ‘break bulk’ opportunities. Lewiston’s dock Seward, Alaska without stopping to switch to a bigger is 250-feet long and capable of handling any roll-on/roll off boat. They became a three-story dormitory for Alaska Vo- cargo allowed on area highways. Even before the expanded cational Technical College in Seward.

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Opportunities and (HMT) applies in the Northwest as through Canada and Mexico instead.” Impediments it does in other parts of the country. The bill replaces the HMT with the Oversize can mean as much as 24 PNWWA’s Meira describes it as a tax Maritime Goods Movement User Fee, feet wide, 20 feet high and 150 feet that “hampers short sea shipping be- which, they say, “would discourage long. The long dock is just as useful cause any landed cargo which is then shippers from diverting American- for moving anything else that needs loaded onto a short sea cargo is taxed bound goods through Canadian or to get to the oil fi elds, so shipments a second time. Hence, HMT discour- Mexican ports simply to avoid Ameri- might, said Doeringsfl ed, “also in- ages use of waterways for short sea can taxes that fund vital infrastructure clude compressors and pumps that voyages, forcing cargoes onto the rails investments and keep American ports would be a normal shipment on a and highways for purely economic competitive in the global economy.” tractor-trailer unit. You could have all reasons.” Separately, John McCalla, president different types of supplies.” He added, Federal lawmakers, especially those & CEO, Omega Morgan, specialists “We recognize that we have opportu- representing the Pacifi c Northwest, in large-scale moving operations, said, nities now with the exploration for oil haven’t been sitting on their hands. “The ports along the Columbia and in North Dakota and Alberta that will Senators Patti Murray and Maria Snake River continue to offer Omega provide a market for shipping on this Cantwell of Washington, in Septem- Morgan opportunities to ship right river system for years to come. We rec- ber of 2013 introduced “The Mari- sized cargo into the Midwest and ognize this opportunity.” time Goods Movement Act for the Canada. The outlook for 2014 and Nevertheless, there have been po- 21st Century” to replace what they beyond remains strong for continuing litical objections to moving the giant call the “outdated Harbor Mainte- use of the routes leading from those loads on a highway close to Lewis- nance Tax” which, they say, “currently ports.” That’s the quintessential defi - ton, Highway 12, which parallels a incentivizes shippers to bypass Ameri- nition of shortsea shipping: alive and Wild-and-Scenic-designated river. can ports and move U.S.-bound goods well on America’s West Coast. However, there is more than one route. Doeringsfeld said he is optimis- tic about future shipments. Kim B. Puzey, General Manager of the Port of Umatilla and current president of the PNWWA, said that his port has just replaced a crane built in 1940 and would also be interested in the over- sized loads. However, he said, it is hard to tell how many loads there might be. “It could just be a spike. For the port, it’s just a big, heavy piece of steel. The tar sands in Alberta, Canada are a big fi nd, just like the Baaken oil fi elds in North Dakota,” he said. “If there are protests, then they’ll just make a deci- sion to build them onsite. It works for their interests, then something chang- es, the price of fuel, there are all kinds of variables.”

HMT: The 600-Pound Gorilla in the Room The Harbor Maintenance Tax

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ome workboat operators defend themselves against between Maratha’s Vineyard, Nantucket and Cape Cod. higher diesel prices by buying futures contracts, while “Our vessel operator clients use ultra-low sulfur diesel Sothers purchase fuel at prices fi xed in advance from fuel,” Larkin explains, adding, “All vessels need to adhere their suppliers. Others, perhaps less-savvy and/or smaller to federal diesel-program regulations. But right now we companies, however, take their chances by buying in the have a patchwork quilt of federal and state regulations.” spot market. While some operators are uncertain about Low sulfur and ultra-low sulfur diesel, or ULSD, is be- their future fuel requirements and consumption, domes- ing phased in for non-road, locomotive and marine or tic ferry operators for the most part know exactly what NRLM engines from 2007 to 2014, according to the U.S. they’ll need in the year ahead. For these passenger vessel Environmental Protection Agency. Those changes, along and commuter ferry outfi ts, the need to protect themselves with new pollution-control technologies, will cut emis- against fuel spikes can lead to creative solutions – like, for sions from engines by over 90 percent, the agency says. example, ‘hedging’ when purchasing bunkers. It’s easier The changes will also cost operators money, as it is more than you might think. expensive to produce ULSD and the new hardware solu- tions also come at a premium. Options When it comes to defending your operating budgets and, Hedging, Fixed Price Contracts & at the same time, sparing paying passengers the pain of sud- Surcharges … Oh My! den fare increases, you do have options. In February, we ULSD prices rose to $3.15 a gallon last August and have asked Richard Larkin, president of Hedge Solutions, Inc. since eased a bit. Fuel prices remain volatile, but even now, about workboat operators and hedging. His Manchester, only a small percent of U.S. workboat operators hedge their NH-based fi rm provides risk management to fuel users, costs. “My fi nger in the wind guess is it’s less than 10 per- distributors and retailers. One client is The Steamship Au- cent,” Larkin said. “A lot of operators view hedging in futures thority in Massachusetts, the largest ferry service operating as mysterious, and it makes them nervous. We’re trying to (courtesy Authority) Steamship

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demystify it, to get them to use hedging contract is about to expire, the position cent years,” he said. “We started using as a way to control their budgets.” is moved into a more distant month. Hedge Solutions in 2009 after trying Larkin discussed the ways vessel op- Being unprotected against fuel price to do our hedging in house. We were erators can protect themselves against surges can hammer a fi rm. “A tugboat concerned when crude oil reached higher fuel. “The ones that hedge use company that isn’t hedged, or doesn’t $150 a barrel in 2008.” the Chicago Mercantile Exchange’s have a fuel surcharge, quotes someone The Authority knows about how (CME) Nymex ULSD futures contract a future job, then fuel prices go up,” much fuel it will need in the year for paper hedging, or else they’re facili- Larkin said. “An unhedged OSV op- ahead. “After working on our annual tating their hedging through fuel sup- erator quotes a job and fuel prices rise. budget each fall, we set our ticket pric- pliers with fi xed-price contracts,” he A ferry service that isn’t hedged may es in the winter for the next summer,” said. “They tend to buy further out on have to raise ticket prices at the last Lamson said. “We don’t use customer the calendar in the Nymex market and minute because of higher fuel.” surcharges. Customers start buying well into the future.” CME New York And surcharges don’t necessarily their ferry tickets for the summer ear- Harbor ULSD futures are traded in all work in the marine industry. “In some ly in the year.” As for the fuel it uses, calendar months, going out four years. cases, when a user tries to offset an in- The Steamship Authority switched “Vessel operators, like The Steam- crease in fuel prices with some kind of to ULSD fi ve or six years ago. “We’re ship Authority, are planning a year in surcharge, the surcharge isn’t enough,” long two Nymex contracts, so we’re advance,” Larkin said. “A user might he said. Then too, operators employ- about 90 percent hedged,” Steamship be long a futures contract, or buying ing a customer surcharge must decide Authority treasurer and comptroller call options, with the expectation of whether to remove it if diesel prices Robert Davis said. “Although hedg- buying physical diesel down the road.” retreat. For any vessel operator who re- ing has been a net cost to us in recent One CME Nymex contract is 42,000 lies on a surcharge, however, “there are years, we’re protected if something U.S. gallons or 1,000 U.S. barrels. ways to hedge it, and things you can happens to fuel prices on the upside. A user’s hedge plans might be made do to augment it,” Larkin said. It’s like having fi re or health insur- when the company decides its next ance; you’re covered during adversity.” annual budget. “We often meet with Fuel: Big Expense Meanwhile, at Washington State companies then,” Larkin explained. for Ferry Operators Ferries, the largest such service in “A company might draw up its annual Wayne Lamson, general manager the United States, fuel is the fastest- budget in the winter and will make its of The Steamship Authority, said the growing, operating expense. Fuel hedge plans a year in advance. They’re service’s biggest annual costs are wages accounted for over 29 percent of its looking at a price point, asking where and employee benefi ts, fuel and in- fi scal 2011 to 2013 costs, versus 12 risk exists for them. They look at fu- surance. “Fuel, including the cost of percent when the decade began. “In tures prices and try to plan around hedging, has accounted for 9 to 10 FY12 and FY13, we locked in prices them.” But given the market’s vola- percent of our annual expenses in re- in advance on 10.8 million gallons of tility, “timing-wise, one never knows when prices will be advantageous,” he added. For The Steamship Authority, he says, “we plan during their lowest volume months in the winter, before the high-volume summer months, which have the biggest impact on them,” Larkin said.

Hedging 101 Hedging in futures can be done a number of ways. “One approach is to use perpetual hedging twelve months forward, doing it on a rolling-forward basis,” Larkin said. When a futures

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fuel or about 50 percent of fuel consumed,” WSF deputy chief Jean Baker said. “We did this with our fuel supplier through fi xed-price physical contracts. The prices we paid were less than what we’d budgeted for those gallons.” Sav- ings, in this case, were considerable. Fuel used by WSF isn’t hedged in the futures market now. “We’re working to get fi nancial hedging contracts in place,” WSF spokeswoman Joy Goldenberg said. Lamson said The Steamship Authority will have another ULSD-fu- eled ferry built soon. When asked about LNG, he said it’s the vessel fuel of the future. “LNG is popular in Europe, and we’ll be considering it down the road,” he said. LNG is used to fuel ferries in Norway, Japan and Argentina.

“A lot of operators view hedging in futures Peace of Mind as mysterious, and it makes them nervous. Hedging strategies aren’t free, but buyers can choose from We’re trying to demystify it, to get them to use a wide range of brokers and/or consultants to get the job done. Larger operators with a bit more wherewithal might hedging as a way to control their budgets.” even get the job done in-house, if their operating budgets allow for that kind of staff expertise. For those who choose –Richard Larkin, President of Hedge Solutions, Inc. an outside service, Richard Larkin says, “Fees are all over the map and depend on the size of the hedge program, and on how many hours a broker or consultant assists on it,” Larkin said. “Fees usually come in anywhere from a quarter of a cent to a penny a gallon, depending on the work involved.” A vessel operator who negotiates a reasonable fee with a hedge manager and has a price-protection program in place has peace of mind if diesel prices suddenly spike. A ferry service that’s hedged doesn’t have to ask customers standing at the ticket counter to cough up higher fares. And, a pro- fessional boat delivery service can safely quote a fi xed price contract without worrying about a fuel increase eating the entire profi t margin. ECA’s, increasingly low sulfur bunkers and a dozen other variables can negatively impact your fuel purchasing power. Today, and for those employing hedge strategies, price doesn’t have to be one of them.

The Steamship Authority’s M/V Eagle ferry serves the Hyannis to Nantucket route.

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MN MAR14 Layout 32-49.indd 32 2/21/2014 3:24:50 PM FLEET OPTIMIZATION McAllister Avoids a Date with the Drydock Unconventionally lowering costs, safely and improving the bottom line. That’s the Victaulic way. By Dennis Love

In the towing segment of the marine industry, some- formed by McAllister, a bolted sleeve type coupling on the times it does seem that boats are under perpetual repair. A Robert’s engine cooling water supply line sprung a leak, and tugboat that’s tied up in maintenance and not able to work maintenance personnel needed a way to fi x it quickly, once is a lost revenue opportunity. As a result, limiting time and for all. It wasn’t the fi rst time that joint had leaked, out of service by performing repair and retrofi t services and if they tightened it as they had in the past, there was dockside is of critical importance. For example, McAllister no guarantee the seal—or for that matter, the coupling— Towing & Transportation was able to accomplish repairs would hold. The particular type of coupling used on that not just quickly, but at a lower cost and in a safer man- and other engine cooling water lines in the McAllister fl eet ner than conventional methods. That’s just one way that a is a non-restrained coupling, meaning there’s nothing to 150-year old workboat operator can optimize its fl eet op- hold the coupling in place on the joint. On another McAl- erations. It turns out that you can, too. lister tug, the same type of coupling slipped and started to fl ood the engine room. The McAllister Story In need of a better, long-term solution, port engineer You don’t stay in business for one and one-half centuries Carlo Parrotta investigated his options. Limiting the tug’s unless you continually fi nd new and better ways to run time out of service was the most important factor, so com- a more effi cient operation. Founded in 1864, McAllister plete replacement of the line wasn’t an option at the time. Towing & Transportation is one of the oldest and largest Parrotta explained, “I was considering welding the pipe. family-owned marine towing and transportation compa- But the problem was that I didn’t have the luxury to go into nies in the United States. The company operates a fl eet of the drydock. I didn’t have an extreme length of time to go more than 70 tugboats and barges in 17 locations along about the service.” Replacement with the same or a similar the eastern seaboard, from Portland, Maine, to San Juan, type of coupling was certainly an option, but would have Puerto Rico. Their mission mix runs the gamut from ship required a harness to be installed to prevent the coupling docking, general harbor towing, coastal towing and bulk from slipping. It also would have made it more diffi cult to transportation in each port. service the systems surrounding it. McAllister operates three tugs out of Baltimore, includ- In this case, Parrotta was familiar with mechanical pipe- ing the Robert E. McAllister, a harbor assist tractor tug. joining systems manufacturer Victaulic, having used its Built in 1969 by Peterson Builders of Sturgeon Bay, Wis- products in previous roles throughout his 25-year career in consin, the Robert was originally a United States Navy ves- the maritime industry, so he called the company to see if it sel, the USS Nanticoke (YTB-803). Launched on Decem- could supply a solution. Company representatives visited ber 14, 1969, she was eventually struck from the Naval the Robert to review the application and specs, and recom- Register in 1999, and, in 2002, sold through the Defense mended the Style 99 Plain End Roust-A-Bout Coupling to Reutilization and Marketing Service to Nix’s Mate Equip- replace the bolted sleeve couplings. ment Company of Salem, New Hampshire, where she was renamed as the Canal Protector. Meet the Style 99 McAllister later acquired and renamed the tug the Rob- The Style 99 is a rigid coupling that has integral hard- ert E. McAllister. In 2005, she was rebuilt. Two Caterpillar ened carbon steel “teeth” that bite into the outer diam- 3516B diesel engines replaced her single Fairbanks-Morse en- eter of each pipe-end, providing the steel-to-steel engage- gine, and the rudder and propeller were replaced with a pair ment Parrotta desired. Positive engagement of the pipe is of Schottel SRP 1012 Z-drives for a rated 4,000 horsepower. achieved when the bolts are torqued to specifi cation, as marked on the coupling housing. No special pipe prepara- A Quick Fix for Leaky Couplings tion—beyond ensuring a smooth, debris-free surface at the Not surprisingly, and despite all of the upgrades per- pipe-ends—is required prior to assembly.

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MN MAR14 Layout 32-49.indd 33 2/21/2014 3:25:28 PM The Style 99 has multiple IACS there was no need to clean the sur- type approvals and is Coast Guard rounding area of standing oil or oil approved. ABS type approvals cover vapors, no need for a fi re watch, and fresh water systems; sea water cool- no need for weld inspection. ing; ballast systems; vents, overfl ows Eliminating welding also meant and sounding pipes; potable water signifi cant cost savings. Instead of systems; and fi re main systems. Plain- paying a welder for an eight-hour day, end couplings such as the Style 99 are the cost was limited to the price of the advantageous for retrofi t and repair couplings, which was well within the services because there’s little upfront repair budget. In fact, the savings al- tooling cost. The lack of extensive lowed Parrotta to purchase more units pipe-end preparation means the cou- than he needed for the repair on the pling can be installed quickly, limiting Robert, and he’s now in the process downtime, which also met Parrotta’s of replacing—as time and opportu- needs. As a result, McAllister decided nity allow—the same bolted sleeve to move forward with the repair using couplings with Victaulic Style 99 cou- the Style 99 couplings. plings on other McAllister tugs. Fur- thermore, Parrotta is using the Style The Fix 99 coupling for other applications To complete the repair, the bolted where the cost savings are even more sleeve couplings were disassembled substantial, such as fuel oil vent lines. and removed, the pipe was pulled from the hangers, and the pipe-ends were Fleet Optimization Defi ned: cleaned of scaling, rust and paint where Safer, Cheaper Maintenance the new couplings would be installed. When a leak developed at the base The pipe was then repositioned and of a fuel oil tank vent line on the Rob- the Style 99 couplings were assembled ert E. McAllister, it potentially meant on the joints. The repair was complet- thousands of dollars in repair costs. ed dockside in just over an hour. The process could have involved Parrotta, who installed the cou- drydocking the boat, emptying the plings himself, remarked that the in- fuel tank, cleaning the tank, calling stallation process was very simple. It in a marine chemist to confi rm that did not require him to bring in a cer- it’s safe to weld, cutting the pipe and tifi ed welder and deal with the safety welding to complete the repair. In- hazards and other considerations stead, McAllister’s Parrotta was able to welding in the space would have cold-cut the pipe, cap the fuel end of posed. Avoiding hot works meant the pipe, and use a torch to remove

March 2014

MN MAR14 Layout 32-49.indd 34 2/21/2014 3:25:41 PM the remaining portion on the deck nance of the fuel oil vent mechanisms and install the new section of prefab- by cutting and rejoining the pipes with ricated pipe. Hot work was avoided Victaulic plain-end couplings. This by completing the on-board connec- allows personnel to remove the vent tions with the Style 99 couplings, and for servicing by simply loosening two all work was completed dockside. bolts and removing the coupling from “I saved myself several thousand the joint. Reinstallation is as quick as dollars on a marine chemist, several the initial installation. “It makes our thousand dollars on cleaning the job effortless,” said Parrotta, adding tanks, and the aggravation of waiting that he has completed this work on several years until the next drydock,” two of the three tugboats based in Parotta said, adding, “If you add all Baltimore, and is recommending it to these costs, I would have been, con- other McAllister port engineers. servatively, $15,000 in the hole—all that, just to weld a little hole. When Proven Performance = you’re doing all this, the boat is not Economy of Scale available for work. By doing it the way The Victaulic Style 99 Plain End we did, it was a fraction of the cost Roust-A-Bout Coupling has proven and it took us three hours to do it, advantageous for McAllister Towing compared to probably a week.” & Transportation in multiple ways, Parrotta adds that the fuel oil vent from reducing time out of service, to mechanisms are notoriously diffi cult limiting repair costs and safety hazards. to work with. Being above deck and Parrotta said of the solution: “My goal exposed to salt water, varying weath- is to do the job as effi ciently and safely er conditions and damage, the vents as possible, and with the least amount need constant maintenance as well as of stress and time. If I save time, I save testing to ensure proper function. The money for the company and reduce mechanisms don’t get serviced very of- the time the tug is not available to do ten—usually every four to fi ve years at its job. And it’s being done safely, and drydock time. During that time, the with a reliable product. I’m happy. threaded joints are susceptible to rust I’ve been using [Victaulic couplings] and are typically covered in multiple for years, and I’ve never had a prob- coats of paint, making the vents ex- lem.” Optimizing his fl eet – that’s job tremely diffi cult to remove. ONE for Parotta. For over 150 years, Based on the success of previous ap- McAllister has been coming up with plications of the Style 99 couplings, similar solutions to their operational Parrotta decided to ease future mainte- issues. So can you.

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MN MAR14 Layout 32-49.indd 35 2/21/2014 3:25:57 PM PROPULSION

Gulf Coast Workboat Repowered with Volvo Penta Diesels Based on impressive fuel consumption and performance results from the Volvo Penta engines installed in a new-construction pushboat, the operator decided to repower one of its older vessels with the same D16 engine package.

hen Volvo Penta supplied the main propulsion Since the vessel was commissioned, it has put more than system for the M/V Ted Kayser, a new 60-foot 6,000 hours of service on the engines. Documented aver- W pushboat christened at the end of 2012, it was age fuel consumption runs between 4.01-4.38 gallons per Allemand Industries, Inc., the Volvo Penta Regional Power hour per engine. According to Volvo Penta, and compared Center in Harvey, LA, that oversaw the installation. De- to other vessels performing the same work, the pushboat signed by Entech & Associates of Houma and constructed consumes about 180-200 fewer gallons daily, resulting in by Eymard Marine Construction and Repair of Harvey, fuel savings of about $1,000 per day. The annual savings M/V Ted Kayser today operates with two Volvo Penta D16 are easy to calculate. engines, each providing continuous 650 hp at 1800 RPM. The engines drive a pair of Rolls-Royce four-bladed stain- Volvo Penta Penetrates the Workboat Sector less steel propellers through Twin Disc MGX5222 5.04:1 Ron Huibers, president of Volvo Penta of the Americas, marine gears. told MarineNews in February, “We see tremendous growth

36 MN March 2014

MN MAR14 Layout 32-49.indd 36 2/21/2014 3:26:14 PM opportunities for Volvo Penta in the commercial marine sector. Our D16 engines, in particular, are designed specif- ically to meet the needs of heavy-duty displacement com- mercial vessels. In large measure, our success in the Gulf Coast workboat market is attributable to the great team at Allemand Industries, who provided outstanding technical support in specifying, installing, testing and fi ne-tuning the engines and controls.” For its part, Allemand Industries has been dedicated to the marine and industrial engine service-and-repair business for the last 30 years. Established in 1981 by the Allemand family, the fi rm maintains deep and long lasting business re- lationship with their customers. As a Power Center for Vol- vo Penta marine commercial engines, Allemand supports the states of Alabama, Arkansas, Louisiana, Mississippi, as well as the Gulf Coast and Red River Valley areas of Texas. David LeBlanc, product manager at Allemand, said, “The D16 engines are ideally suited for pushboats because their low-end torque enables the vessel to start pushing when the RPM reaches 1,100. The result is good momen- tum from the start at a lower RPM and better fuel econ- omy. The D16 is the only marine engine in its class with this unique torque curve.” The D16 is an inline six-cylinder with Volvo Penta’s Electronic Vessel Control (EVC) technology. The engine features a robust block with ladder frame, high-pressure unit injector system, four valves per cylinder, twin-entry turbo and charge air cooler. The heat exchanger is designed for reduced charge-air cooling temperature, which in com- bination with the injection system and Engine Manage- ment System further improves performance and drivabil- ity. According to Volvo Penta, this results in a very smooth running engine with world-class performance, low fuel consumption and reduced emissions.

Repeat Business, Proven Performance As a result of the positive experience with Volvo Penta engine packages supplied by Allemand Industries, the same operator decided to retrofi t a second vessel, M/V Shelley (pictured on previous page), with the same D16 engine packages. Beyond this, Allemand reports that the customer is looking at other vessels in the fl eet to repower, as well. Originally built in 1980, M/V Shelley is a 60 foot LOA, 26 foot beam workboat that draws 9.5 feet in draft. Alle- mand Industries removed the two existing Diesels, and in- stalled two Volvo Penta D16C-CMH engines, with Twin Disc MGX5222 marine transmissions, ratio 5.04:1, pack-

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MN MAR14 Layout 32-49.indd 37 2/21/2014 3:26:36 PM PROPULSION

Ron Huibers, president of Volvo Penta of the Americas

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38 MN March 2014

MN MAR14 Layout 32-49.indd 38 2/21/2014 3:26:51 PM PROPULSION

aged at the Allemand shop. another two boats. likely won’t be long until the Volvo Allemand’s LeBlanc told Marine- It hasn’t been that long since Volvo Penta brand makes its mark on the News, “The customer decision to Penta actively began to target the do- U.S. Gulf Coast, and beyond. When repower the second vessel with Volvo mestic workboat markets with their it does, the D16 inline six-cylinder Penta was based on the experience proven engine designs. Long success- with Volvo Penta’s Electronic Vessel with the D16 performance on the ful overseas in similar commercial Control (EVC) technology will no fi rst vessel, in terms of better low-end markets and best known here in the doubt be a big part of that equation. torque, quicker throttle response, re- high end recreational markets, it also liability/service and lower cost of op- eration.” He added, “The Volvo Penta D16 engine has defi nitely proven it- self on the river. Every fl eet operator is watching the vessels. We have had several operators contact us wanting to learn more about the product.”

Looking Ahead Volvo Penta Americas President Huibers says that Volvo Penta is mak- ing inroads in the U.S. workboat mar- ket. He pointed, as another example, to Zimco Marine, a commercial fi sh- ing fl eet based in Brownsville, Texas. Zimco turned to Volvo Penta to re- power two of its shrimp boats with D13 MH engines. Since July, the repowered vessels have put in more than 1,000 hours and have already recorded both fi nancial and perfor- mance benefi ts. The company calculates its fuel consumption reduction at more than 30 percent over its original engine package – a savings of nearly $40,000 per year, per engine. The shrimp boat captains say they can feel a difference at the helm, noting that the D13 works harder and more effi ciently at lower engine speeds. The Volvo engine was also found to have better acceleration and more torque at lower RPM — in ad- dition to being quieter, lighter and smaller. With all of these advantages in mind, the company has already placed an order through the local Volvo Penta dealer, Palmer Power in Houston, for replacement engines for

www.marinelink.com MN 39

MN MAR14 Layout 32-49.indd 39 2/21/2014 3:27:17 PM PROPULSION

Repowering With a Purpose

Belgium Diesel Engine Manufacturer Provides Main Engine for Alaska Fishing Vessel.

When the owners of the fi shing pollock trawler, Great Pacifi c decided they needed to purchase a new main engine to replace their MAN B&W Alpha 10V23L-VO they took a hard look at all the engine manufacturers currently on the market that could support their needs. “Our goal was to fi nd an engine that offers superior fuel and lube oil con- sumption; that had its EPA Tier III Certifi cation and had domestic parts and service.” When the investigation was over and the dust cleared, Alaska Boat Company was the proud owner of a 6DZC from Anglo Belgian Corporation Diesel (ABC Diesel), the fi rst time this engine was used to power a commercial fi shing boat in the United States.

The Basics on ABC “To be honest, I had never heard of ABC” said Chris Kline, General Manager of Alaska Boat Company, the owner the Great Pacifi c. “But once you start hearing of an all mechanical, EPA Tier III engine that out performs the competition … you start listening a little harder and you want to learn more about the option.” Kline listened and learned and found out that Anglo Belgian Corporation has been manufacturing diesel en- gines since 1912 and is headquartered in Gent, Belgium. The company has a century of engine-building expertise, founded in 1912 by a group of Belgian entrepreneurs soon after building the fi rst licensed Rudolf Diesel engine. With a reputation of building robust and simple engines, with low fuel and lubricating oil consumption it’s perhaps no surprise ABC has to its credit more than 1,750 installa- tions worldwide. The DZC engine that is installed in the Great Pacifi c can run on diesel, heavy fuel or bio fuels; as

40 MN March 2014

MN MAR14 Layout 32-49.indd 40 2/21/2014 3:27:39 PM PROPULSION

well as a dual fuel execution. Available in a 6 and 8-cylin- ramp is on centerline. The main deck has straight shear der inline or 12 and 16-cylinder vee confi guration, oper- with camber. There is a full width raised foc’sle forward. ating from 600 rpm to 1,000 rpm, the engine produces An aluminum house is attached to the steel foc’sle deck up to 5,435hp. All engines are individually tested at the with explosion bonded DuPont bi-metal connection. An factory with option of the presence of the client and pos- A-frame style mast is forward with a trawl gantry aft. sibility of all major classifi cations. “The beautiful thing about working on an ABC engine Foreign Built for Domestic Convenience is that everything is mechanical, which is ideal for a fi sh- TMPS is also ideal for Alaska Boat Company because of ing vessel and its crew,” stated Justin Roeser, Operations its West Coast, Seattle, WA location. TMPS also has a fa- Manager for Seattle-based Transmarine Propulsion Sys- cility in Tampa, Florida and both provide sales, fi eld service tems, Inc. (TMPS), ABC Diesel’s North American repre- and spare parts inventories to meet the urgent demands of sentative. “Everything is controlled by a mechanical com- customers. This alleviates the headaches and delays that ponent, which in the very near future this will no longer many customers encounter with foreign engine manufac- exist; wrenches will be swapped with laptops.” turing. Roeser adds, “We’re supplying foreign engines with better after sales than our domestic competition. Since we Engine Reliability a Must have to service various makes of engines every day, we have for Bering Sea Operations strategic partnerships with freight forwarders, warehousing The Great Pacifi c is one of six boats in a fl eet that is on a global level and are used to turning on a dime and managed by the Alaska Boat Company. The Great Pacifi c solving problems now for our customers worldwide.” predominately fi shes for Pollock in the Bering Sea and de- In this case, the installation was completed at the begin- livers her catch to Dutch Harbor. Fishing seasons are split ning of February at the owner’s own yard and the entire into A and B seasons. Fishing trips average from 2 to 4 alongside procedure took just two days, start to fi nish. To- days. When fi shing is good, especially in ‘A’ season when day, the vessel is already back in service, having left for the roe is ripe, it is imperative to turn the vessel around Alaska on February 8th. quickly to take advantage of these conditions. And, be- North American orders for the DZC engine are increas- cause the Great Pacifi c sails with a crew of just 5, simplic- ing with a power plant order of four 6-cylinder DZC en- ity of operation and a high degree of reliability from the gines and an additional two commercial vessels ordering a engineroom is imperitive. (6) six cylinder and an (8) eight cylinder DZC engine for The Great Pacifi c is an all welded steel hull with a raked their re-power, plus a new build with two (2) 12 cylinders bow with moderate fl are. The hull is single chined with dead on order which just completed testing at the factory. Due rise from the keel outboard. The bottom plating sweeps up to a high degree of customization, the DZC engine line is to a sloped transom and bulwarks. An eight foot wide stern fast becoming an attractive option for repowering projects.

www.marinelink.com MN 41

MN MAR14 Layout 32-49.indd 41 2/21/2014 3:27:51 PM BOAT OF THE MONTH Alion & Robert Allan Team up to Deliver High Tech Research Vessel

In the very near future, the new scientifi c Research Vessel vestigator at a ceremony in Singapore in September. Investigator will enter service for the Commonwealth Sci- The vessel will potentially raise the bar for science ves- entifi c and Industrial Research Organization (CSIRO), an sels – here and abroad – in a sector where research vessels agency of the Federal Government of Australia. Investiga- often emanate from platforms not originally designed for tor went to sea for her initial sea trials in December 2013. the purpose. Moreover, fi nancial constraints for research Once deployed, Investigator will be among the quietest and organizations, universities and other government efforts most capable research vessels in the world, serving multiple, often do not allow for the most environmentally correct diverse scientifi c roles in a geographical areas spanning one- equipment. Investigator changes that mindset. Described third the circumference of the globe. loosely as a combination of the large AGOR’s (23 & 24) The design was developed by RALion, a joint venture class built in 1990’s and the NOAA fi shery science vessels between Vancouver BC Naval Architects, Robert Allan built at Halter and Marinette, the vessel’s price tag was said Ltd, Alion Science and Technology of Alexandria, Virginia to be in the range of $125 million, the high end of what is and Alion Canada of Ottawa. The acoustic analysis, noise typically spent on this type of vessel. That said; Investiga- treatments and noise trial measurements were performed tor is a scientist’s dream platform, with virtually every bell by Noise Control Engineering of the US. The vessel was and whistle the research community could possibly want. launched on July 21st, 2013 and then offi cially named In- Investigator is classed by Lloyds Register of Shipping as a

INVESTIGATOR at a Glance: Length Overall: 93.9 meters Depth to Main Deck: 9.45 meters Speed: 15 knots, in Sea State 2 Beam: 18.5 meters Draft: 6.9 m (to bottom of sonar gondola) Range: 10,800 nautical miles Draft: 5.7 meters Complement: 60 (including scientists) Endurance: 60 days Sonar/Nav Package: Kongsberg Bow Thruster: Thrustmaster TH1500MLR Deck Equipment: Rapp-Hydema

42 MN March 2014

MN MAR14 Layout 32-49.indd 42 2/21/2014 3:28:24 PM Download complete catalog www.aluminumandstainless.com

Building an aluminum boat? Aluminum and Stainless, Inc. has all the metal.

+100A1, +LMC, UMS Ice 1C IWS, Investigator is fi tted out with a full MARINE EP, DP (AM) and DNV SILENT-R range of scientifi c laboratories, science ALUMINUM research vessel. and fi shing winches, coring equip- Designed to meet the underwater ra- ment, air and water sampling devices, 5086 5083 diated noise requirements of the DNV and acoustic systems. She is capable of a 5052 6061 “Silent R” notation up to 11 knots, this variety of oceanographic operations in 5456 capability allows the vessel to under- coastal and deep ocean areas, including take sensitive environmental research. the physical, chemical and biological Plate • Sheet • Rod • Bar A low radiated noise signature is criti- oceanography, environmental investi- Pipe • Tube • Shapes Weld Wire • Fittings cal for vessels engaged in fi sheries and gations, ocean engineering and marine marine mammal research to avoid dis- acoustics, coastal hydrographic survey, turbing the habitats they are studying. marine geology and geophysics, bathy- STAINLESS STEEL A low noise signature is also crucial to metric surveys and fi sheries research. 304L 316L 303 17-4 ensuring that the vessel’s large suite of An interesting feature is the vessel’s scientifi c survey sonars has the capabil- gondola and two retractable drop keels BOAT SHAFTS ity to reach the greatest depths of the to house the extensive scientifi c so- 17-4 condition H1150 world’s oceans. To meet this stringent nar and transducer suites, supplied by Two locations: underwater radiated noise level, a com- Kongsberg. The vessel is fi tted with a Lafayette, LA prehensive program of noise control stern ramp and towing gallows to sup- 800-252-9074 engineering and production practices port fi sheries research activities. was established. For example, all three The vessel potentially represents the New Orleans, LA MaK main diesel generators are double new benchmark for global research 800-562-9022 resiliently mounted on an isolation sys- vessels. With its Tier II engines, self tem engineered by NCE and RALion contained (zero discharge at sea) sew- and supplied by MaK. This mounting age treatment system and other green system is specifi cally designed to absorb features, it also sets a new standard for Aluminum and vibration. And, the Wartsila 5-bladed environmental stewardship, consis- Stainless, Inc. propellers have a unique blade shape tent with the mission of such a vessel. specially designed to be free of cavita- The vessel enters service, fully com- tion up to 12 knots. During the sea missioned, less than three years after Marine metals trial, Investigator was found to have award of the design and construction specialists exceeded all of her noise requirements, contract; a remarkable feat given the since 1969. including radiated, habitability, and size and complexity of this ship. structural vibration. www.alionscience.com / www.ral.ca Lafayette New Orleans www.marinelink.com

MN MAR14 Layout 32-49.indd 43 2/21/2014 3:28:37 PM BOATBUILDING Short Seas in the Long Run Building for the possibility of shortsea shipping involves many variables.

By Joe Hudspeth, Vice President of Business Development at All American Marine, Inc.

The novel concept of rebirthing short sea shipping on September 11th, and more recently during power outage into what it once was or could be, may remain just that, events and Super Storm Sandy that crippled subways and a novelty. It would be paramount to overcome the “my hindered key points of access. Similarly, out west in San way, on my terms” philosophy that so heavily drives traffi c Francisco, vessels came to the rescue when the Bay Bridge away from the seas and inland waterways and onto asphalt has experienced closures and when the local rail transit freeways that cannibalize natural resources. The plight of workers of B.A.R.T. went on strike. But, if these events fail road warriors may even further drive coastal commuting to convince, the environmental card can also be played. straight into Davy’s Locker with the rapidly expanding de- While those of us in commercial vessel construction are velopment of non-marine-use shore side infrastructure. very thankful for Senator Jones, we do understand that the The waterways may be unclogged of traffi c, but if they Jones Act does create some barriers against making marine offer little to no practical places for docking, the purpose transport economically feasible. Boat builders will make is diluted. Somehow, the concept of a working maritime the case that properly designed and constructed vessels will waterfront has, over time, become less appealing than the provide a certain level of cost savings that enables com- allure of highly profi table seaside condos and retail space. petiveness. In many cases, builders can provide contem- Transportation planners also fail to maintain a solid grasp porary designs that make marine transport faster, better, on the concept of intermodal transport. It typically takes cheaper, and even greener. The comparison has been made two to tango and when both people and freight are shipped that a gallon of diesel can move a ton of freight 155 miles they will likely still require land side transport to their fi nal over land, but the same gallon has the potential to move a destinations. This lack of vision or oversight recently forced ton of sea freight 576 miles. Yes there are some semantics a well known vessel operator to modify and lower the pilot that can be argued over direct land routes versus round- house superstructure of their vessels when the city’s plans for about waterways, but close examination of America’s Ma- a new low clearance bridge would essentially block his ves- rine Highway systems shows many of the defi ned water sels into a small section of a major river. Despite rationaliz- routes paralleling land based thoroughfares. ing the impact, the unaltered bridge plans prevailed. All of this is clearly a case of short sightedness, begging for change. FASTER While the initiative of the Marine Highways Program is Sometimes it takes a bit of high horsepower to make helping the cause, the potential of a working waterfront for the wheels of change move at the desired clip along the short sea shipping and ferrying is hardly tapped. In fact, it waterfront. In Manhattan, it is not uncommon to see the usually takes some sort of catastrophe for maritime appre- large fi nancial institutions chartering or negotiating service ciation to be granted. This has been a reoccurring case in contracts to help move their employees to work in a timely Manhattan, most notably with the maritime-assisted rescue fashion. Even Goldman Sachs purchased two fast passen-

High caliber corporations like Goldman Sachs and Google Built by All American Marine, the 83’ aluminum fast cat are sourcing vessels to fulfi ll their specifi c short sea ship- designed by Teknicraft Design is hydrofoil-assisted and ping needs and get their employees to work in a timely cruises at 27 knots. and productive fashion.

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ger catamarans to provide more frequent service on an ex- sources of our waterways properly utilized, vessel designs isting run between the two ports at the doorstep of their must be implemented that truly are environmentally skyscraping facilities in Jersey City and Battery Park. And friendly. Emission Control Area (ECA) zones and EPA Tier now, Google has dipped a toe into the marine industry by requirements for fuel burning engines are already steering recently chartering a high speed catamaran to shuttle their the course for ship design. Other Eco-Pioneers are thrust- employees to work from San Francisco; thereby eliminat- ing ahead with the implementation of LNG technology or ing productivity hold-ups caused by daily traffi c jams. hybrid solutions. And, the latest developments in low wake Productivity for such high tech charters not only means a hull designs and hull coatings are symbiotic with coastal fast boat, but one with a few amenities. Given their colorful marine habitats. While emphasizing green technology is logo, it seems fi tting to see Google employees boarding the important, simply getting individual cars and trucks off of vibrantly painted MV Triumphant for their chartered ferry the freeways and onto well-serviced and consolidated ma- demonstration runs. The 83’ aluminum fast cat designed rine routes can cut both fuel cost and pollutants, reduce by Teknicraft Design is hydrofoil-assisted and cruises at 27 road repair costs and drastically reduce highway congestion, knots to get the staff to work quickly and safely. Although all of which will produce immediate and tangible benefi ts. the vessel built by All American Marine was purpose built It works in Virginia – witness the I-64 Express between for Harbor Breeze Cruises whale watching tours in Long Richmond and Hampton Roads – between Connecticut Beach, California, the vessel features comfortable seating, and Long Island, and it can work anywhere else, as well. functional table space, and a full galley to satiate morning hunger or provide a refreshing beverage during the return SEA TRIALS voyage at sunset. While the traffi c-free commute can be A new era of short sea shipping may be coming ashore in enjoyed by employees and employer alike, it undoubtedly the near future, but without reform of the shortsea portion is the benefi t of a sophisticated wifi system that truly give of the harbor maintenance tax (HMT), it won’t come in Google a return on this short term short sea investment. the sectors which most stakeholders hope for. Instead, the coming birth of the U.S. offshore windfarm market may in BETTER fact necessitate a new short sea fl eet. Vessel designs for near coastal transport and trade do not Actually, the ideal design for windfarm support vessels have to follow prescriptions of the past, as Google has been closely mirrors practical characteristics needed for coastwise making a bit of splash with the current construction of their shipping. Fast, fuel effi cient, and stable, these Jones Act two mystery barges that are alleged to be fl oating product compliant vessels are designed to transport crew and cargo showcase stores. The deployable storefront is a very unique safely and effi ciently on coastwise routes less than 100 nauti- experience and could spawn an entirely new segment in the cal miles offshore. The hull design is shallow draft and most marine industry. Thinking this through a bit further, cruise support vessels even have their own cranes for moving cargo. ships also do quite well selling luxury items while afl oat, so While these vessels are designed for wind farm use, their con- there must be some underlying connection between the lull cept seems practical for other coastwise trade and it could be of an ocean wave, the salty sea air, and the propensity to just what is needed to give short sea shipping new life. part with lots of cash for the trendiest new widgets. The good news for American boatyards is that U.S. Equally impressive was the pioneering dream of Ex- builders are very competitive on price with their foreign poships to create a fl oating art gallery. In 2006, Nichols counterparts, specifi cally in the range of OSV-size vessels Brothers Boat Builders constructed the 228’ Seafair Grand and down. In terms of quality, the volume and dollar num- Luxe that transports a fi ne art collection in a self-propelled, bers represented by U.S. small vessel exports alone speaks ultra-posh show room up and down the eastern seaboard. for itself. There isn’t any reason why all windfarm support If this new side of the maritime industry takes off, it will vessels for domestic use cannot be built right here at home. help with recruiting and bringing new life into all sectors Today, short sea shipping remains as a largely untapped of our industry. Plus, ordering your morning latte from a resource for an island nation that is, nevertheless, experi- boat that pulls into the harbor on coffee breaks might just encing a miraculous rebound in virtually every other phase be the best way to go. of the maritime industry. How that could change depends on the usual political and commercial considerations that CHEAPER & GREENER impact every business decision. When it does, the domes- In order for the paradigm shift to occur and see the re- tic boatbuilding industry is ready to step up and deliver.

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MN MAR14 Layout 32-49.indd 45 2/21/2014 3:29:14 PM LNG VESSEL DESIGN LNG Design: Necessity is the Mother of all Invention Jensen Maritime Consultants – leveraging a unique porthole on the maritime industry – antici- pates and meets demand in the burgeoning maritime LNG sectors. Nevertheless, says Jensen’s Johan Sperling, it’s not rocket science. By Joseph Keefe

At the recent Passenger Vessel Association (PVA) annual the maritime industry needs infrastructure to move LNG. meeting held in Houston, Texas, Jensen Maritime Consul- Sperling explains, “Harvey Gulf, Tote, Crowley, and Matson tants had on display just a couple of their many design ef- have decided to spend a lot of money to build large vessels forts underway at the Crowley-owned design and engineer- that will burn LNG and gas. They have to get the gas to the ing shop. Naturally, those designs had the use or carriage of vessels. Meanwhile, there are very few groups are willing to LNG as their central theme. LNG, at least on this side of take the risk to help with the ‘chicken and egg’ question.” the pond, is still largely uncharted waters, but that’s hardly Sperling and Jensen nevertheless remain pragmatic. “First the case for Jensen. Already at the heart of many new initia- of all, it’s not rocket science. We’re not overly worried about tives, it is clear that Jensen will never be far from the LNG the technology itself and I don’t think that anyone else is, epicenter when it fi nally takes off here in North America. either. LNG has been around a long time. Vessels don’t burn LNG, they burn gas. And when it changes to gas, it expands, Early Engagement – Unique Perspective which can present a problem. You basically take LNG and Although owned by Crowley, Jensen’s client base is wide vaporize it, then it’s virtually the same system as compressed and includes all sizes and types of tonnage. That said; Jensen natural gas for over-the-road buses, dump trucks, etc. The Maritime Vice President Johan Sperling says that his fi rm has safety record is very, very good. But, that said, if you spill a unique view on the industry that, perhaps, some competi- LNG, all kinds of things can happen. LNG is cryogenic fl uid, tors do not. That window potentially provides a sharper look is extremely cold and causes myriad of considerations. So we at what could come next. Nevertheless, he says, business is design to meet those challenges. From our standpoint these business. “We have NDAs with all of our clients. We have a are the most challenging areas. The good news is that this has half dozen, each with somewhat different designs, including been done for a long time and it has been long documented Crowley. I’m sure you can imagine that everyone wants to be and we have in-house LNG experience here at Jensen.” fi rst, but at the same time do not want to tip off the competi- tors to what they are doing. At Jensen – and a lot of people Defi ning the Ideal Bunker Barge don’t realize this – 80 percent of our business is not Crowley- Jensen’s bunker barge designs are a closely guarded secret, related. So we have strict fi rewalls in place and we’re very good but Sperling said that Jensen would focus on two basic sizes at keeping promises to others about what we are doing.” – ranging from capacities of 2000 to 3000 cubic meters. He Ongoing in-house projects include the LNG bunker added, “If you look at all the carriers that are contemplat- barge, the LNG-powered tug, LNG powered ATB designs ing or have committed to building LNG tonnage, all of the and of course, the design work with the larger, faster and schedules are different. Some want to top off weekly, for environmentally-friendly liquefi ed natural gas (LNG)- example. Our designs satisfy most of the demands of what powered, combination container – Roll-On/Roll-Off a big ship operator could want. The bunker barge has to be (ConRo) ships. Already in the thick of LNG, Jensen will large enough to where it makes sense, but also small enough provide construction management and supervision in the that it is affordable and economical. Others may be build- shipyard throughout the building phase of the ConRo’s. ing bigger, some smaller. We’ve defi ned our range.” In terms of Jensen’s LNG tug design, the preliminary work was, to a certain extent, a leap of faith on the part Sticker Shock of Jensen. Sperling says, “We have contracts for clients, According to Sperling, the fi rst bunker barge has to be built but we started before we had those contracts and went out as economically as is possible. That’s because the fi rst mover in on a limb ourselves and decided to design something that the market will have a limited customer base, at least to start would attract those clients.” with. He insists, “If it’s too expensive, you’ll have to charge The LNG bunker barge was a different story because too much for bunkers,” adding, “Once you talk about LNG 46 MN March 2014

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equipment, the sticker shock is tremendous. In our case, we’re cial case approval situation. Both DNV and ABS are going looking at simple cryogenic tanks – cylindrical in construction to have to work with the Coast Guard. And, we will need to typically – that is proven technology. That’s the easiest way work with them, too. All of us – and the operators, includ- to get regulatory approvals. And, even though it is new for ing Crowley – are leading the charge to defi ne what needs to marine applications, you can point somewhere and say that it be done, and that comes with a lot of responsibility. So, it’s works. We’ll incorporate this into our bunker barge designs.” important that we do everything possible, from the outset.” Jensen’s philosophy is that there is enough risk in these new ventures without introducing unknown variables. Sperling Tug Propulsion: Dual Fuel or LNG? told MarineNews in February, “The Rule of thumb today: Jensen’s tug designs are all pure LNG models. Sperling says LNG equipment is about double the price of non-LNG com- there are very good reasons for that. “All of our harbor tug ponents. We’re talking about the equipment. Whoever moves designs are gas only. That’s because we know we’ll have read- fi rst takes the most risk because they are going to spend a lot of ily available fuel and the size of the engines currently avail- money and then the prices are going to drop. You don’t want able are appropriate to that size vessel. As it stands now, with to be fi rst and get it wrong. This has certainly changed but the rules and guidelines we’ve been given, we can’t put large the exponential cost jump is still there for LNG equipment.” tanks aboard a tugboat without making the tugboat twice as big the others. If that’s the case, the capital cost of the tugboat Risk – and Reward makes is uneconomical in comparison to conventional.” In the beginning, Jensen went forward with its LNG pio- Based on Jensen’s popular valor class design, their hard- neering efforts for several reasons. Sperling says, “It was a big working vessel will feature a 14-day endurance capability for risk – for a naval architect, time is money and we spent a lot harbor and escort work and will likely be outfi tted with an of R&D time on this. In this case, we felt the risk was low innovative LNG package, including two Rolls Royce model enough because we think it’s real enough that someone will US 255 Z-drives, driven by a pair of Bergen C26:33L6P eventually pay for it and that’s exactly what has happened.” gas engines. The storage tank will also be supplied by Rolls Jensen’s LNG design for tugboats got started in 2008. Royce (via Cryomar) and the vessel will be fi tted with a Since then, a lot of water has gone under the proverbial hawser winch forward and a capstan aft for line handling. bridge. Sperling adds, “The engine manufacturers are just now ready to do something. And, as you can see, the fi rst Head of the Class: who is it? LNG tug has just been delivered out of a shipyard in Turkey Jensen’s Sperling hedged a little when it came to declar- for service in Norway oil fi elds. As you’ve probably seen in ing who would be chosen to provide class on its designs. all those drawings – the LNG tanks were right underneath Although deep in the heart of ABS country, it is also true the house and accommodations. In the U.S. today, for safe- that DNV has more LNG experience abroad. Because of ty reasons, we are designing vessels that put the LNG tanks that, he added, “ABS is doing a great job of catching up somewhere else that is not in the same vertical zone as the and they are doing their very best to make sure that they accommodations. We have some constraints here that make get to keep the market for small tugs, bunker barges and it trickier for us and U.S. operators in general.” similar tonnages. I can’t tell you for sure that our designs or those of others are going to wind up being ABS. Right Design Aspects: uncharted waters now, it’s a race between the two of them. In most things, As design professionals move forward on the domestic whoever is fi rst stands a good chance of being the experts LNG front, they are fi nding that there are a lot of rules re- or they could be the goat. In this case, DNV is riding that lating to containment that are both published and unpub- North Sea wave that they helped pioneer.” lished. Sperling says in regard to the process, “As of today, there’s nothing offi cial that really ties us down. We need to Performance: Does LNG stack up to Diesel? do various things, and yes, we’ll get the approvals. It’s a spe- Jensen’s position on LNG tugs is that they have to make Jensen’s LNG Tug Specifi cations … at a glance LENGTH: 100' LNG CAPACITY: 13,500 gal warm (51 m3) HORSEPOWER: up to 6 BREADTH: 40 ENGINES: 2 x Bergen C26:33L8P @ 2896 HP SPEED: 12 kts speed DEPTH: 17 GENERATORS: 2 x John Deere @ 125 kW DIESEL OIL (aux.): 8 BOLLARD PULL: 160,000 lbs ASD THRUSTERS: 2 x Rolls Royce US 255 Propulsion: LNG only

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them equivalent or better to what’s out there now. Sperling traditional players in the infrastructure and bunker side of insists, “Otherwise, people will question it and it is not go- the business is very real. ing to happen. So, the goal is to be better. If you currently Sperling explains, “This is a game between LNG users have a 40-ton bollard-pull tug, you aren’t going to replace and LNG providers. And you know that some people have it with a 35-ton bollard-pull LNG tug. That’s simply not stuck their nose out and at some point are going to have to going to be acceptable to industry. LNG units will have to make sure that there is infrastructure – whether that’s Har- have the same or better: in terms of horsepower, bollard vey Gulf, Tote, Crowley, Matson – whoever you pick out pull, response time – everything.” there. They need the oil companies to provide them with LNG and they also need someone to move the LNG from SITREP LNG: cutting steel? the pipeline to the vessel. So there’s a question between Sperling is bullish on LNG in 2014, saying ““I wouldn’t the owners and the oil companies of who is going to fund be surprised if there is a keel laid in 2014. The reason is – what. We’re very close to having to make decisions.” and let’s just take Crowley as an example, since they are a LNG itself has an enviable track record in terms of safety, client of Jensen – if there are LNG ships being built, when environmental performance and delivering in the workboat they are delivered, we better have something in the water arena. No wonder it has arrived on the scene in North Amer- that can serve them. In order to do that, we’re going to have ica. For Jensen’s Johan Sperling, it is an exciting time as new to cut steel or order LNG equipment pretty soon. That in- concepts are brought forward. The same holds true of the volves the bunkering for those two ships. For the tugs, that’s Coast Guard and the classifi cation societies. Sperling adds, a little different. There isn’t a particular need that they have “Typically, when something new is proposed to the Coast to immediately go serve – it’s more about what risk do the Guard and even the class societies, they can often be critical owners want to take? People want to be fi rst in this arena of the idea, due to the increased risk. But, in the case of LNG, here, but they also don’t want to be fi rst and then lose. My they are open to new ideas that make sense. And for industry, gut feeling is that something is going to happen this year.” that’s very exciting. And for us engineers and designers, we get to put on our thinking caps and solve problems.” Wild Cards The LNG arena is new, exciting and bursting with great po- As the LNG arena unfolds in North America, the vari- tential to transform the transportation and energy landscape ables are many, the certainties few and the competition forever here in North America. LNG is here to stay. A lot of remains exciting. For that reason alone, the advent of non- work remains to be done. That said; it’s also not rocket science.

A Jensen Maritime depiction of one of its LNG Tug designs

An early, preliminary rendering of the Jensen-designed LNG bunker barge.

The scope of the Jensen LNG design portfolio is diverse and covers the full spectrum of workboats and ocean shipping.

48 MN March 2014

MN MAR14 Layout 32-49.indd 48 2/21/2014 3:30:11 PM TECH FILE CEACT Allows Operators to REACT How updated electronic navigation practices improve safety and effi ciency – and optimize cargo movement – on US inland waterways.

It was a cold winter night. Heavy gusts and snow did not helps preventing accidents on the western rivers, but also allow safe navigation and forced the ships on the upper Mis- in coastal waters covered by BSB or S-57 NOAA charts. sissippi to secure alongside the few remaining jetties. Safety Greg and his team identifi ed the requirement to ease is the key issue for all river transport companies but at the chart operations and included a convenient download same time effi ciency and timely delivery of valuable goods is button within CEACT which allows weekly updating of of utmost importance. It was 1999 and an American naviga- all river charts plus the new USACE buoy overlay at a fi n- tion pioneer – Greg Dunkle – had realized the potential of gertip providing the smallest data volume on the market. electronic chart systems. Tailored to fulfi ll the needs of river Today there are many navigation products in the mar- pilots, CEACT was born and for the fi rst time safety and ket which are being used by marine pilots, yachtsmen effi ciency could be optimized at the same time. and workboats. Some of these products are loaded with Founded in 1999, CEACT stands for Channel ECDIS, hundreds of options which make operation under extreme AIS & Course Trajectory and offers navigation software conditions diffi cult and may lead to errors. For CEACT specifi cally designed for professional towboats and work- and its users, ease of operation and high reliability with boat operations within the confi ned waterways of the US a proven downtime of only 8 hours per year (better than inland river system. The fi rst CEACT system was launched 99.9 percent availability!) are still an industry benchmark. in 2001 after two years of intense development effort. To- day, it is used by domestic barge companies and is addition- CEACT UPDATED ally utilized internationally on inland river systems in Latin The latest CEACT version has just been released and America and South East Asia. Notably, here in the United still helps keeping ships and barges moving; regardless how States, CEACT is today used by an oil major and Southern bad conditions may be. The new version includes a new Towing on their vessels. SevenCs GmbH is a software house interface for enhanced readability in all ambient condi- that develops software for the maritime navigation industry. tions, and more user friendliness in general. This helps the Its key products include portable pilot units and CEACT. river pilot to safely navigate and focus on the most rel- evant data which helps prevent accidents. The advanced OPTIMIZING OPERATIONS = SAFETY & EFFICIENCY chart rendering allows faster loading and display of the Real-time navigation and AIS target display provided respective chart which remarkably optimizes the applica- full situational awareness and allowed to avoid dangerous tion. Users will also benefi t from the fully automatic CPA situations before they occurred. But the main factor for function which includes different types of calculation for more effi ciency in the daily operation of CEACT was the rivers, channels and offshore. With extended support of innovative approach to consider the combined effects of BSB charts including head-up display CEACT becomes vessel propulsion, rudder, wind and water current – all dis- more powerful in remote areas not yet covered by ENCs. played in one easy to use “course trajectory” display. As an Together with the well-established and widely shared example, avoiding oversteer helps saving up to 10 percent Western River Chart package, weekly updates, and the of fuel consumption and allows for more effi cient vessel USACE´s buoy overlays, CEACT continues to signifi cant- operations in an increasingly competitive market. ly increase the safety on board. But safety of navigation also depends on accurate charts. www.ceact.com Together with the USACE, CEACT INC pushed the pro- duction of highly accurate inland vector charts in S-57 for- mat. The US Western River chart package is automatically loaded and updated inside CEACT. Delivered in small package SENC format via the only certifi ed value added reseller, CEACT still is the only inland ECDIS which re- lies on pre-tested offi cial data and not on unsafe RSS feeds. One more reason why CEACT is THE safety tool which

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Sobeck Jacquelin Propeck Rooney

St. Lawrence Seaway Welcomes Willard Names Jacquelin Director shore Operations, Marine Construc- Carter to Board of Marketing tion, and Casualty Response. Propeck The St. Lawrence Seaway Manage- Willard Marine, Inc. announced brings with him over forty-fi ve years of ment Corporation (SLSMC) has ap- the appointment of Karen Jacquelin multi-faceted experience in the com- pointed Gerald Carter to its Board for as director of marketing. Jacquelin mercial diving and maritime industry. a three-year term. He replaces Ralph will be responsible for leading Willard Mercier as the representative for the Marine’s product and brand market- Tru-Marine Announces Executive Québec Provincial Government. ing strategy, including all advertising, Appointment Carter is a past President of Canada public relations and event market- The Tru-Marine Group announced Steamship Lines Inc. (CSL), joining ing initiatives. She will be based out that Isaac Yohanan has joined as a CSL in the early 1990s as Director of of the company’s corporate offi ces in General Manager and Director of Information Systems. Anaheim, Calif. She brings 20 years Tru-Marine Houston LLC. Yohanan of business development experience to will be responsible for Tru-Marine’s Sobeck Named NOAA Fisheries Willard Marine. She holds a Bachelor business and service operation in the Assistant Administrator of Arts and Bachelor of Science from US and the Americas focusing on its Eileen Sobeck has been named as the University of Southern California. rapidly expanding presence in the ma- assistant administrator for NOAA rine and off-shore energy markets in Fisheries. Sobeck will oversee the Propeck Joins Global Diving North, South and Central America. management and conservation of rec- Global Diving & Salvage, Inc. A seasoned banking and maritime reational and commercial fi sheries, named John Propeck as General Man- executive, Yohanan brings 20 years of and the protection of marine mam- ager for their Gulf Coast regional of- experience to the job. mals, marine protected species, and fi ce. Based in Houston, Propeck will be coastal fi sheries habitat within the responsible for the development of new Port of Hueneme Achieves another First U.S. exclusive economic zone. Sobeck and ongoing business opportunities The Port of Hueneme Board of is a graduate of Stanford University within Global’s core service lines: Off- and Stanford Law School. Commissioners voted in offi cers for

Gerrard Fiorentino, inventor, entrepreneur and namesake of Fiorentino Para-Anchor died Sunday, Jan. 5 due to heart failure following a stroke late last year. The 89-year-old had a long and illustrious career in many facets of the marine industry. At 23, Fiorentino inadvertently invented the modern para-anchor while captaining his 65-foot tuna boat, Onward, off the coast of Mexico. In the 66 years that followed, he designed revolutionary commercial fi shing machinery and his para-anchor became a mainstream safety device awarded numerous patents and recognized by NASA. In 1995, Fiorentino moved into an advisory role at Fiorentino Para Anchor. To produce manufactured para-anchors that met the needs of more boats, the company moved into full-scale research, development and manu- Gerrard Fiorentino facturing mode. The result was the discovery of Fiorentino’s Para-Ring technology and Constant Rode Tension theory. These products have completely changed how boaters manage heavy weather emergencies. Mr. Fiorentino was interred with military honors Jan. 16th in Rancho Palos Verdes next to his wife, Kay. He is survived by a sister, Josephine, many nephews, nieces and godchildren.

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Blake Weinberg Soles Bernstein

2014 at their fi rst meeting of the year held January 13, 2014. At the meet- ing, Mary Anne Rooney received unanimous Board support and will be the port’s fi rst woman to take the of- fi ce of Board President. Commission- er Herrera was named Vice President and Commissioner Manuel Lopez was voted Secretary.

Larson Boat Group Names Blake VP Sales and Marketing Patrick J. Blake has been named Vice President of Sales and Marketing of Larson Boat Group (LBG). Blake comes to LBG with over 20 years of experience in the marine industry – the bulk of which is in sales manage- ment and business development. Mr. Blake worked for over 23 years in a variety of senior executive positions at Brunswick Corporation.

Canaveral Board Elects Weinberg as 2014 Chairman Thomas Weinberg will serve a sec- ond consecutive term as Chairman of the Canaveral Port Authority Board, accepting the job after a unanimous vote during the January Commission meeting. Weinberg began his Board tenure in January 2011 and was pre- viously Chief of Staff for former U.S. Sen. Mel Martinez and Deputy County Administrator for Orange County, Florida government.

Soles joins the Glosten Associates Peter Soles has joined The Glosten Associates as a Marine Consultant and

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Magar Matis de Vries & Schettle

will be supporting the fi rm’s ocean en- grams to foster a safety-focused culture lem Technical College in the Nether- gineering and marine logistics projects. throughout HB Rentals’ global opera- lands. Schettle graduated Magna Cum Prior to joining Glosten, Soles con- tions. Magar is a certifi ed safety profes- Laude from the University of Wiscon- tributed to marine projects through- sional (CSP), and received a Bachelor sin-Stout with a degree in Industrial out the Pacifi c Northwest and Alaska of Science and a Master of Science in Technology - Product Development. for over 13 years as a tug operator and engineering and technology manage- He also holds a degree from Century marine operations manager for two lo- ment from UL, as well as a doctorate in College in Mechanical Drafting. cal marine transportation companies. industrial engineering from the Univer- A licensed mariner, Soles is a graduate sity of Houston. W&O Makes Leaderships Changes of the University of Washington and W&O announcing several key Hoover Container Solutions Adds changes to the leadership team at the the University of Oregon. Matis to GoM Team company’s various offi ces. Hoover has named Matt Matis as PVA Elects 2014 President, Vince Rodomista, a graduate of director of sales for the Gulf of Mexico Offi cers and Board Members Kings Point with a degree in Marine region. Matis is based in Thibodeaux, During the PVA Annual Conven- Engineering and Marine Transporta- La., and will work closely with Hoover’s tion at MariTrends 2014, held January tion, joins W&O as General Man- facilities in Port Fourchon, New Iberia 18-21 in Houston, TX, the Passenger ager of the Houston branch. Craig and Scott, La. Matis will lead Hoover’s Vessel Association elected Terri Bern- Cabiro joins W&O the Greater Louisiana sales efforts with a focus on stein as PVA President for 2014. Also Houston Sales Manager. Debbie Gar- the offshore industry while managing elected to terms as PVA Offi cers for ner, Regional Manager at W&O, will several major customer accounts. Ma- 2014 were PVA Vice President Dave continue to oversee the growth and tis holds a bachelor’s degree from Nich- Anderson, and PVA Secretary Trea- expansion of W&O’s Gulf Region olls State University. surer Margo Marks. Captain Terri Ber- branches. Tony Calamia, a six-year nstein is Vice President of Operations Ellicott Dredge Enterprises (EDE) veteran of outside sales at W&O, of BB Riverboats in Newport, KY. The Announces Major Personnel was named Sales Manager for the family-owned business is the oldest riv- Additions New Orleans and Houma locations. erboat company in the Greater Cincin- Ellicott Dredge Enterprises has an- Johnny Lasseigne was promoted to nati, OH Region. BB Riverboats has nounced changes to its senior manage- Operations Manager at the Houma been a member of PVA since 1979. ment team. Gert de Vries has joined branch. The fi rm also announced new as Senior Director of Engineering, in leadership in its Charleston, Norfolk HB Rentals Names Magar as which capacity he will be supporting Director of HSE and Fort Lauderdale branches. Kyle the engineering departments of all HB Rentals, a Superior Energy Ser- Posey, Phil Jiannine and Charles Led- of Ellicott’s brands. Rob Schettle has vices company, has named Kristian ford, all longtime W&O employees, been promoted to General Manager Magar as director of health, safety and have been promoted to the position of at Ellicott’s subsidiary Liquid Waste environment (HSE), announced De- Branch Manager. Kyle Posey, a W&O Technology. He will now be respon- idre Toups, HB Rentals president. Based employee since 2004, will lead the sible for running the plant in New in Broussard, La., Magar’s responsibili- Charleston location. Charles Ledford Richmond, Wisconsin. Gert received ties include strengthening, promoting will now serve as Branch Manager of his degree in Naval Architecture/Ship- and developing new processes and pro- W&O’s Fort Lauderdale branch. Phil building Engineering from the Haar- Jiannine has been promoted to Branch 52 MN March 2014

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Venegas Quinn Wachel Thomas

Manager of the Norfolk location.

MTN Appoints Industry Veteran Santos Venegas MTN Communications (MTN) announces Santos Venegas has joined the company as general manager for its Oil and Gas Division. A 35-year industry veteran and respected con- sultant, Santos most recently served as managing director for Latin America at Harris CapRock.

Severn Trent Services Names Quinn COO, Water Purifi cation Severn Trent Services announced that Lawrence Quinn has been appointed to the position of chief operating offi cer for the company’s Water Purifi cation business. Quinn joined Severn Trent Services in July 2013 as vice president, Global Operations. Prior to joining Severn Trent Services, Quinn held the position of president and chief execu- tive offi cer of Alstom Power’s Turbines Business in Chattanooga, Tenn.

Wachel Joins Parsons Brinckerhoff William Wachel has been named a Senior Supervising Engineer, Ports and Marine, in the Houston offi ce of Parsons Brinckerhoff, a global infra- structure strategic consulting, engi- neering, and program/construction management organization. In his new position, Mr. Wachel will manage ports and marine projects throughout Texas and the Southeastern United States. Mr. Wachel comes to Parsons Brincker- hoff following 25 years with the Port of

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Boxer Shuster Dane III Great Lakes Stone Carrier Houston Authority. Wachel received a Both are champions of the effort to completion. Gulf Coast Shipyard ex- Bachelor of Science degree in civil engi- pass the Water Resources Reform and pects its fi rst vessel to be at the Port of neering from Texas A & M University. Development Act of 2013 (WRRDA). Gulfport in mid-March.

Thomas Joins Blank Rome HydroComp Celebrates 30 Years! Vigor set to buy Seward Ship’s Drydock Matthew J. Thomas has joined HydroComp, Inc. is celebrating 30 The owner of Seward Ship’s Dry- Blank Rome’s Washington, D.C. of- years in business. Hydrocomp began dock has signed a letter of intent to fi ce as a partner in the maritime, in- in 1984 to meet the specifi c needs of sell the assets of the Seward, Alaska, ternational trade, and public contracts naval architects and shipbuilders in the shipyard company to Vigor Industrial. group. Mr. Thomas has more than area of resistance and power predic- The two companies are currently ne- twenty years of experience in maritime tions. Thirty years later, HydroComp gotiating the terms of the potential and international trade regulation and has grown into a multi-faceted cor- sale and expect the sale to be fi nalized government affairs. Thomas is a mem- poration with clients from design to after satisfactory completion of envi- ber of the Connecticut Maritime Asso- construction to academia in over sixty ronmental, fi nancial and business due ciation, and a member and past Presi- countries. Founded in 1984 in New diligence and after Seward Ship’s Dry- dent of the Maritime Administrative Hampshire, USA by Jill Aaron (Man- dock, Vigor and the City of Seward Bar Association in Washington, D.C. aging Director) and Donald MacPher- reach a fi nal agreement on certain de- son (Technical Director), HydroComp tails of the agreement. Vigor will lever- Lawmakers Boxer, Shuster was a pioneer in the very specifi c area age its existing strong public/private Selected For AAPA’s 2014 ‘Port Person of Year’ Award of applied hydrodynamics. partnerships in Alaska to maximize U.S. Sen. Barbara Boxer (D-CA) opportunities for the Seward yard. Gulf Coast Shipyard Group Joins and U.S. Rep. Bill Shuster (R-PA) Port of Gulfport Harsh Winter Costs U.S. Great have been jointly selected to receive Gulf Coast Shipyard Group, Inc. Lakes Fleets; Seaway Finishes the American Association of Port Au- announced its expansion by signing a with Surge thorities’ (AAPA) 2014 “Port Person three-year lease with one-year options Weather, ice and cancelled cargos lim- of the Year” award. The bi-partisan with the Port of Gulfport. Specifi cally, ited U.S.-fl ag Great Lakes cargo move- nomination for AAPA’s most presti- Gulf Coast Shipyard Group will use ment to 7.1 million tons in December. gious annual award was submitted by 400 linear feet of dock space on the The fl eet’s year-end total slipped to 89.2 the California Association of Port Au- Port’s East Pier and 15,000 square feet million tons, down 0.4% compared to thorities (CAPA). Sen. Boxer is the of warehouse space to outfi t the dual 2012. Brutal weather also slashed ore current and fi rst female chair of the fuel liquefi ed natural gas (LNG) pow- shipments to just 4 million tons, also Senate Environment and Public Works ered vessels it is building for Harvey down 21% from last year. Separately, a Committee. Having served on the Gulf International Marine. surge in grain movements led to a strong House Transportation and Infrastruc- John Dane III, president of Gulf fi nish for the St. Lawrence Seaway. The ture Committee since being elected to Coast Shipyard Group said, “We Seaway closed for the season on Janu- Congress in 2001, Rep. Shuster now are pleased to work with the Port of ary 1, but a late harvest produced record chairs that committee, co-chairs the Gulfport and grow our business in grain volumes. 4.4 million tons of cargo Water Resources Development Con- Mississippi.” The Port of Gulfport is moved through the Seaway in Decem- ference Committee, and serves on the undergoing a $570 million restora- ber, exceeding the fi ve year December House Armed Services Committee. tion and is roughly 18 months from average by 20%. 54 MN March 2014

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Compact Genset for Pelco 360-Degree Camera Onboard Serenity for Situational Awareness Equipment noise is a thing of the Schneider Electric and Oncam past with a new Marine Exhaust Grandeye have partnered on the Systems G-19 water drop genera- Evolution 360-degree camera range, tor muffl er. The G-19 water drop Hyde Marine’s IMO providing unprecedented situational awareness. Pelco incorporates 360-de- muffl er accommodates gensets rated Type Approved Hyde from 30-85 kW; 105 kW units are gree technology and dewarping soft- available on request. The customiz- GUARDIAN Gold BWT ware to provide a camera range with able compact, low profi le, one-piece Hyde’s GUARDIAN Gold Ballast total situational awareness. The fea- design blends well into any engine Water Treatment System offers the ture allows users to go back in time to room setup and reduces engine room smallest footprint for easy installation view the scene and then pan, tilt and/ clutter meting nay application. and combines auto-backfl ushing fi l- or zoom (PTZ) within the 360-de- www.marine-exhaust.com tration with reliable UV disinfection gree image. Multiple users can view technology in a chemical free process. the same image simultaneously. UV treatment is unaffected by salin- www.pelco.com/panoramic ity or temperature, without produc- ing hazardous byproducts or increas- ing corrosion. Proven to exceed IMO D2 and USCG standards, 300+ sys- tems have been sold over ten years of onboard operating experience. www.hydemarine.com

Garmin GPS’s MAP Industrial Nanocoating 8000 Glass Helm-Series Saves Billions on FLIR Systems and Garmin Inter- Corrosion Costs national have integrated Garmin’s Advancements in nanotechnology GPSMAP 8000 Glass Helm-Series currently offer organizations with multifunction device and FLIR’s M cargo ships and industrial equipment and MD-Series thermal night vision Transas FleetView a long-term alternate to convention- cameras. Boaters can now access and Integrates al paints. Nanovere Technologies in- control FLIR’s thermal imaging using MeteoGroup Data troduces Nano-Clear for Industrial Garmin’s new multifunction displays. Transas Marine has integrated Me- Applications, designed to improve The GPSMAP 8000 Glass Helm-Se- teoGroup weather data in its Trans- corrosion resistance, abrasion resis- ries provides easy-to-use chart plotting as FleetView Online SSAS-tracking tance and prevent the underlying solutions and includes control of FLIR software. Utilization of weather ser- paint from UV degradation. Nano- Thermal Night Vision Systems, sonar, vice from the MeteoGroup in the Clear industrial coating restores, en- integrated autopilot, and engine data. FleetView Online (FVO) is a key hances and preserves newly painted www.FLIR.com advantage to Transas customers. or highly oxidized paint surfaces. FleetView Online weather interface www.nanocoatings.com provides current and 5-day fore- casted weather data over the entire chart folio, displaying sea condi- tions such as wind, waves and swell, current and other weather elements. www.transas.com

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Seall Passage Planner SCI Simulator Offers Strengthened with AIS One-on-One Training Feature With a new simulator in full opera- tion, SCI helps mariners complete Jargoon has announced that a new assessments previously only avail- interface to AIS Hub has been add- able in large class settings or in the ed to Seall Passage Planner (SPP). real world when exact conditions The versatile passage planning soft- could be met on the water. The ware which was launched in No- Hobart Stick Electrode simulator offers affordable one-on- vember 2013, provides AIS by us- Improves Control and Quality one assessments to help meet indi- ing the SPP Virtual AIS Radar. This Hobart Brothers Company’s Ho- vidualized training goals, obtaining allows quick access to vessel traffi c bart 610 stick electrode features a credentials for licenses, and radar within the coverage of the Hub’s concentric design, ensuring an even recertifi cation. For mariners apply- traffi c tracking service, and display coating along its entire length and ing for new jobs, it allows them to the collated data to the mariner consistent arc performance. Opera- demonstrate skills to the company. during passage planning. tors gain greater control and weld www.seamenschurch.org www.jargoon.co.uk quality as a result, along with reli- able weld penetration and arc stabil- ity. The stick electrode is designed for use in pipe welding applications, construction and shipbuilding, maintenance welding and general- purpose fabrication. www.HobartBrothers.com

Martek’s Network- InSinkErator McMurdo Group Connected ECDIS Penetrates Accelerates Integration Martek Marine’s one-of-a-kind Maritime of SAR Technologies iECDIS integrates a GSM modem, Industry The new global leader in end-to-end offering automatic download and search and rescue (SAR) and mari- InSinkErator’s food installation of charts, updates and time domain awareness (MDA) so- waste disposers are notices to mariners, reducing ad- lutions is McMurdo Group. Com- being installed across ministrative burdens associated with prised of Orolia’s former Positioning, various types of ship- CD updates. The GSM modem uses Tracking and Monitoring Division, ping vessels ranging mobile network signals to keep iEC- it combines Boatracs, Kannad, Mc- from cargo vessels to DIS up to date anywhere with mo- Murdo and Techno-Sciences into cruise ships, includ- bile signal, downloading the most the industry’s fi rst, single-vendor ing an ice breaking research vessel. recent piracy warnings and weather provider of end-to-end life-saving The newly installed SS-300 is ex- forecasts which can be instantly and tracking solutions including pected to help with recent guide- overlaid on the chart display itself. distress beacons, satellite connec- lines on proper food waste disposal www.martek-marine.com tivity infrastructure, monitoring / released by DNV. The SS-300 fa- positioning software and emergency cilitates processing and disposal of response management. food wastes to improve ship hygiene www.mcmurdogroup.com in line with the vessel’s environmen- tal responsibility. www.insinkerator.com

56 MN March 2014

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PPE Expands Endura Mean Green Range of Sealing Solutions Industrial Strength Precision Polymer Engineering (PPE) has developed EnDura E90SR, a new Cleaner & Degreaser EPDM elastomer material that pro- Mean Green Industrial Strength vides outstanding high temperature Cleaner & Degreaser is now available steam resistance. EnDura E90SR is in 275-gallon containers. This larger available as O-rings, T Seals and cus- size provides maximum value to tom-molded geometries and is used high-volume commercial and indus- in pumps, valves, turbines, geother- Dyena Vessel Monitoring trial users. Ideal for industrial process mal tools and drilling equipment. System (VMS) cleaning, dip tanks/soaking, indus- trial machinery and equipment repair Unlike traditional EPDM materials Dyena’s Vessel Monitoring System or rebuilding, Mean Green Industrial EnDura E90SR can withstand high (VMS) is a compact rugged unit that Strength Cleaner Degreaser has 40% temperatures (550˚F) and high pres- will store up to 10 years of data, pro- more cleaning ingredients to quickly sures, with excellent resistance to viding a detailed record of structural dissolve grease and grime. rapid gas decompression. events. Sampling at 2400 times per www.prepol.com www.meangreendegreaser.com/ second, the Dyena VMS continu- industrial-strength ously monitors the shock and vibra- tions received by the vessel structure and stores the data to the onboard solid state memory, alongside posi- tion, speed, heading and time. www.dyena.com

Ocean Safety gains VesselVanguard LR Authorization for Partners with Kadey- gas cylinder inspection Krogen Yachts Ocean Safety has received the EC VesselVanguard, the cloud-based Certifi cate of Authorization from maintenance management service, Lloyds Register, allowing the com- announced a new partnership with pany to carry out all in-house cer- Industry’s First Global trawler yacht manufacturer, Kadey- tifi cations of gas cylinders. Ocean Krogen Yachts. Adding value by Safety is now authorized to pressure Portable Satellite simplifying and streamlining yacht test many cylinders including com- Hotspot, Iridium GO! management, Kadey-Krogen vessels posite, welded steel, seamless steel Iridium Communications’ Iridium will be fully provisioned with a one- and aluminum gas. These cylinders GO! Is the fi rst portable satellite year VesselVanguard subscription, are used in many applications with- hotspot that connects to any smart- featuring a digital library of equip- in the commercial marine markets, phone, extending voice and data ment manuals, a customized main- including liferaft infl ation and fi re coverage when out of range of cel- tenance and inspection calendar for suppression systems. lular networks. Iridium GO! creates all onboard sys- www.oceansafety.com a satellite-backed Wi-Fi zone any- tems, and power- where on the planet, enabling up to ful functionality fi ve smartphones to make calls, get to track and over- their email, text and use some apps, see service tasks. even when terrestrial networks are www.vesselvan- non-existent, unreliable or costly. guard.com www.iridium.com

58 MN March 2014

MN MAR14 Layout 50-59.indd 58 2/21/2014 3:21:11 PM MN MAR14 Layout 50-59.indd 59 2/21/2014 3:22:11 PM Marine Marketplace Powered by www.maritimejobs.com Post Your Resume for Free • Energize Your Job Search @ MaritimeJobs.com

First Assistant Engineer Please apply to the URL provided or on our Bouchard Transportation Co., Inc. Job Location: USA, Panama City, FL website http://www.gryphonlc.com/Careers/ 9HVVHO&RRN fi rst-assistant-engineer/. Qualifications: A minimum of three years of related expe- --$ENDORSEMENT/RDINARY3EAMEN 47)# AND0ASSPORT rience is required. One must have excellent Hannah Cobine #OOKING%XPERIENCE YEARS PREFERABLYON4UGS communication, interpersonal, problem- Gryphon Technologies, LC solving, analytical, and organizational skills. 2088 S. Liberty Drive $VVW(QJLQHHU Suite 101 Qualifications: Applicants must be able to work well alone s$EGREEFROM-ERCHANT-ARINE!CADEMYORYEARS and as part of a team. Proven leadership Bloomington IN 47403 USA EXPERIENCEWORKINGONTUGSOFATLEAST (0 skills are a must. Security clearance or the Phone: 812-355-2415 s--$$$% TO (0 ability to obtain one is required. Candidate s34#7 s47)# will be required to complete a background/ Email: [email protected] drug screening. US Citizenship required. Web: https://home2.eease.adp.com/ 7DQNHUPDQ$%&DUJR0DWH Equal Opportunity Employer M/F/D/V. recruit/?id=10355152 Qualifications: s-INIMUMOFA!"4ANKERMAN0)#"!2'% s34#7 s47)# BARGES FOR RENT NEW PRODUCTS 3ENDALLRESUMESTO SHUVRQQHO#ERXFKDUGWUDQVSRUWFRP /R&AXTO

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POSITIONS AVAILABLE International Maritime Business Fa culty We buy barges, ships, and Engineering Faculty positions other marine vessels and structures for scrap. The Academy is located in Buzzards Bay at the mouth of We adhere to the highest the scenic Cape Cod Canal and is a ES&H standards. special mission college within the Serving the rivers and Massachusetts university college system. coasts of the U.S. For information about this AMELIA • BROWNSVILLE • HOUSTON positions and how to apply, visit the employment quick link • MOBILE • MORGAN CITY on our web page at www.maritime.edu. • NEW ORLEANS us.emrgroup.com Massachusetts Maritime Academy is an AA/EEO employer. Under-represented groups are encouraged to apply. CALL 800 - GO SCRAP

60 MN March 2014

Classified MN MAR14.indd 60 2/21/2014 3:35:37 PM Marine Marketplace

VESSELS FOR SALE / BARGES FOR RENT NEW PRODUCTS

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www.marinelink.com Marine News 61

Classified MN MAR14.indd 61 2/21/2014 3:36:18 PM Marine Marketplace

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Maritime License Training Two Prime Waterfront Company Properties in Port of BST, Unlimited Radar Observer, AB Mobile for Lease.* Master 100/200 Ton Near Coastal, AMTV TOAR, BRM, Advance Firefighting Contact William Harrison Medical Care Provider Full Mission Bridge Simulator 251-232-3810 or visit ALL COURSES NECESSARY TO GO 1600 OCEANS, QMED, DDE www.harrisonbrothers.com/land Contact Rich @ (904) 221-2393 *Subject to mutually agreed upon terms and conditions of a written lease. All Real Estate Brokers or Agents shall be Maritimelicensetraining.com considered agent of, and sole responsibility of, the Tenant.

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62 MN March 2014

Classified MN MAR14.indd 62 2/21/2014 3:36:36 PM Marine Marketplace

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www.marinelink.com Marine News 63

Classified MN MAR14.indd 63 2/21/2014 3:38:03 PM Index page MN MAR14:MN INDEX PAGE 2/24/2014 11:01 AM Page 1

ADVERTISER INDEX

Page Company Website Phone#

21 . . . . .AER Supply ...... www.aersupply.com ...... (281) 474-3276

38 . . . . .Ahead Sanitation ...... www.aheadtank.com ...... (337) 237-5011

29 . . . . .All American Marine ...... www.allamericanmarine.com ...... (360) 647-7602

43 . . . . .Aluminum and Stainless, Inc...... www.aluminumandstainless.com ...... (337) 837-4381

34 . . . . .Baier Marine ...... www.baiermarine.com ...... (800) 455-3917

39 . . . . .DeFelsko ...... www.defelsko.com ...... (315) 393-4450

C2 . . . . .DMW MARINE GROUP LLC ...... www.dmwmarinegroup.com ...... (610) 827-2032

39 . . . . .Environmental Solution, Inc ...... www.totalbiosolution.com ...... (919) 740-0546

37 . . . . .F&M MAFCO, Inc...... www.fmmafco.com ...... (513) 367-2151

25 . . . . .Gencorp Insurance Group ...... www.gencorp-ins.com ...... (401) 884-7800

35 . . . . .GP Link LLC ...... www.gplink.com ...... Visit us online

21 . . . . .Great American Insurance ...... www.GreatAmericanOcean.com ...... (212) 510-0135

37 . . . . .Hilliard Corp...... www.hilliardcorp.com ...... (607) 733-7121

7 ...... Hyde/Calgon ...... www.calgoncarbon.com ...... (412) 787-6700

C3 . . . . .J.A. MOODY INC ...... www.jamoody.com ...... (610) 647-3810

41 . . . . .JMS Naval Architects ...... www.jmsnet.com ...... (860) 536-0009

23 . . . . .Kidde-Fenwal, Inc ...... www.kiddefiresystems.com ...... (508) 881-2000

3 ...... Konrad Marine ...... www.konradmarine.com ...... (715) 386-4203

5 ...... KVH ...... www.kvh.com ...... (401) 847-3327

9 ...... Louisiana Cat ...... www.louisianacat.com ...... (866) 843-7440

53 . . . . .Mariner's House ...... www.marinershouse.org ...... (617) 227-3979

51 . . . . .McDonough Marine Services ...... www.mcdelevators.com ...... (504) 780-8100

11 . . . . .MTU ...... mtu-online.com ...... Visit us online

23 . . . . .Northern Lights ...... www.northern-lights.com ...... (800) 762-0165

C4 . . . . .R.W. Fernstrum ...... www.fernstrum.com ...... (906) 863-5553

31 . . . . .Rustibus ...... www.rustibus.com ...... (832) 203-7170

13 . . . . .Scott Safety ...... www.scottsafety.com ...... (704) 291-8300

59 . . . . .SMM- Media Barter ...... www.smm-hamburg.com ...... Please visit our website

57 . . . . .SNAME ...... www.sname.org ...... Visit us online

32 . . . . .Suny Maritime College ...... www.sunymaritime.edu ...... (718) 409-7341

27 . . . . .Tampa Yacht Manufacturing, LLC ...... www.tampa-yacht.com ...... (727) 954-3435

17 . . . . .TideWater Marine ...... www.tdw.com ...... (504) 568-1010

20 . . . . .Tutor Saliba ...... www.tutorsaliba.com ...... (818) 362-8391

15 . . . . .Volvo Penta Americas ...... www.volvopenta.com ...... Please visit our website

19 . . . . .Ward's Marine Electric ...... www.wardsmarine.com ...... (954) 523-2815

1 ...... William Munson Company ...... www.munsonboats.com ...... (360) 707-2752

The listings above are an editorial service provided for the convenience of our readers. If you are an advertiser and would like to update or modify any of the above information, please contact: [email protected]

64 MN March 2014 MN MAR14 C2, C3, C4.indd 2 2/21/2014 3:43:30 PM MN MAR14 C2, C3, C4.indd 3 2/21/2014 3:43:45 PM