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e C T rents a 9/17/08 1:39:14 PM v cur ttack e I ft any C wi thin r s g ne y C y ar t ll ’s most he n I rld viol co R ta wo ent w nflue a C ru e ater nce u U b h s. So of t t s t tho he i M It e se At c P . at wait la a O e g ing nt l c i a ic L n v t s , P m A ie a om a i R c n e ci le C ns m fa fic , U o e ra a w R c th wa n e R no p y d EN s l p I e T ha he o nd a IS it o rt ia rn A nd t w n t FR E, a s i O h IGID FORC u ll c e on w e tr ly o a us re r n t of ho r s. captains w y I le t f s fe s e a ls b n o o u t re th s e po h n a s z ib a ili rd ty s for al life l m . Wh o. ar ich is why we d ine rs f ace along the way.

JEPPESEN.COM

Jeppesen—A Boeing Company MR-A-BRND-1-09_08_MARNWS.indd 1 MN#10 C2 C3 & C4.qxd 9/18/2008 11:30 AM Page 1 Page AM 11:30 9/18/2008 & C4.qxd C3 C2 MN#10 MN#10 (1-16).qxd 9/25/2008 1:54 PM Page 1 MN#10 (1-16) REPLACEMENT.qxd 10/2/2008 11:02 AM Page 2

contents October 2008 • Number 10 • Volume 17

Briefs

8 Tech File Porsche to Design Megayacht 8 pg 10 Insights Matt Mullett, Managing Partner All American Marine 8 12 Boat of the Month Foss Hybrid Tug • Columns • 18 Legal: Marine Insurance • What do you really need? • By Lawrence R. DeMarcay, III 22 20 O&G: The Next Best Time is Now • The time to have planted the tree was 10 years ago • By Don G. Briggs 18 22 Cummings: Spill Presents Troubling Portrait Spill prompts Coast Guard to begin a targeted enforcement campaign. • • By Congressman Elijah E. Cummings • Features • 24 Superyacht Market Stays Strong • The vibrant market exhibits definite trends and growing pains. 24 24 • by Roger Marshall, U.S. Editor, The Yacht Report •

32 “Overnight Success” • Trininty boasts growth and a United States Olympian. • by Matt Gresham • 38 A Tale of Tugs of Two Cities • Even in economic peril, there was a good turnout for two tugfests. • by Don Sutherland •

•

Departments • 52 44 People & Companies 44 49 By the Numbers 50 Technology Bits • 55 Directory: Software •

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MarineNews On the Cover ISSN#1087-3864 USPS#013-952 Florida: 215 NW 3rd St., Boynton Beach, FL 33435 tel: (561) 732-4368; fax: (561) 732-6984 New York: 118 E. 25th St., New York, NY 10010 tel: (212) 477-6700; fax: (212) 254-6271 Pictured on this www.marinelink.com month’s cover is John Publisher John C. O’Malley • [email protected] Dane III president and Associate Publisher & Editor Greg Trauthwein• [email protected] CEO of New Orleans- based Trinity Yachts Managing Editor Jennifer Rabulan • [email protected] LLC. Dane, who compet- Contributing Writers Don Sutherland • Matt Gresham • Raina O. Clark ed in the 2008 Frederick B. Goldsmith • Richard Paine • Ken Wells Randy O’Neill • Lawrence R. DeMarcay, III Olympics as the oldest Don G. Briggs • Kevin Gilheany United States Olympian, sailed the ADVERTISING Star class keelboat.

Director of Sales Rob Howard • [email protected]

Vice President of Sales Lucia Annunziata • [email protected] Tel: 212-477-6700 Fax: 212-254-6271

Advertising Sales Managers Scott Good • [email protected] Patrick Haley • [email protected] Coming in Future Editions Tel: 561-733-2477 Fax: 561-732-8063 Tel: 561-732-1185 Fax: 561-732-8414

Dawn Trauthwein • [email protected] Tel/Fax: 631-868-3575 Novemer 2008 Managing Director, Intl. Sales Tony Stein • [email protected] Tel/Fax: +44-1506-822240 WORKBOAT SHOW EDITION

Classified Advertising Sales • Maritime Security

Marine Marketplace Dale Barnett • [email protected] • Monitoring & Control Systems Tel: 212-477-6700 Fax: 212-254-6271 • Ribs & Patrol Craft

Advertising Sales Administration

Sales Administration Manager Tina Veselov • [email protected] Marketing Administration Kami Accursio • [email protected] December 2008 PRODUCTION Great Boats of 2008 Production Manager Irina Tabakina • [email protected] • Training & Education: Simulartors

Manager, Information Technology Vladimir Bibik • [email protected] • Bilge, Ballast & Wastewater Systems

Manager, Accounting Services Esther Rothenberger • [email protected]

Manager, Public Relations Mark O’Malley • [email protected] Circulation Manager Kathleen Hickey • [email protected] Coming in 2009! Read the entire 2009 Editorial Plan for TO SUBSCRIBE: MarineNews on page 35. Subscriptions to Marine News (12 issues per year) for one year are available for $29.00; Two years (24 issues) for $44.00. Send your check payable to: MarineNews, 118 E. 25th St., New York, NY 10010. For more information call Rhoda Morgan at: (212) 477-6700; fax: (212) 254-6271; [email protected] MarineNews is published monthly, 12 times a year by Maritime Activity Reports, Inc., 118 East 25th Street, New York, N.Y.10160-1062. The publisher assumes no responsibil- ity 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 POSTMASTER Time Value Expedite not be reproduced without the express permission of the publisher.

POSTMASTER: Send address changes to MarineNews,118 East 25th Street, New York, N.Y.10160-1062. MarineNews is published monthly by Maritime Activity Reports Inc. Periodicals Postage paid at New York, NY and additional mailing offices. Canada Post International Publications Mail Product (Canadian Distribution) Sales Agreement No. 0970700. Printed in U.S.A.

4 MN October 2008 MN#10 (1-16).qxd 9/29/2008 10:17 AM Page 5

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editorial

An Olympic Tale to Tell

love a good story, and having served the information- al needs of the maritime industry for more than 16 Iyears, it never ceases to amaze me where you can find them. Last month, as we were finishing production of the 115th Anniversary Edition for the Society of Naval Architects & Marine Engineers, I was sitting in Phil Kimball’s office at SNAME headquarters in New Jersey when he relayed to me an article he read about John Dane — head of Trinity Yachts — and his participation in the 2008 Summer Olympics, at 58 the oldest ever to compete from the U.S. Interest picqued, we set Matt Gresham on a course to track down Dane and get some insights on the Olympic experience ... and to also explore the business at hand at Trinity Yachts, one of the county’s most progressive builders of luxury yachts! (see report starting on page 30). Despite a historic economic meltdown, the market for Gregory R. Trauthwein large, luxurious yachts continues to expand, just not as Editor & Associate Publisher rapidly as it had two years ago, according to a contributed tel: 212- 477-6700 report by Roger Marshall, U.S. Editor, The Yacht Report, Email: [email protected]

which you can read starting on page 24. SUBSCRIBE Subscribe to the print or electronic edition of MarineNews at www.marinelink.com/renew- At press time Congress was balking at a $700 billion subscr/Renew04/subscribe.html or e-mail Kathleen Hickey at [email protected]

bailout of Wall Street, and with the stock market and oil DAILY NEWS via E-MAIL Twice every business day we provide breaking news, tailored to your specification, deliv- prices falling, it’s anybody’s guess as to what this market ered FREE directly to your e-mail. To subscribe visit http://maritimetoday.com/login.aspx

will look like next week, let alone next year. POST & SEARCH JOBS Job listings are updated daily and help match employers with qualified employees. Post a For now, enjoy these two reports, which provide some position or keep abreast of new employment opportunities at valuable insights to both sides of the market. 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

6 MN October 2008 MN#10 (1-16).qxd 9/29/2008 10:17 AM Page 7

NOTHING’S MORE BEAUTIFUL THAN A NEW YORK STOCK RISE ... EXCEPT OF COURSE A SINGAPORE SUNSET. MN#10 (1-16) REPLACEMENT.qxd 10/1/2008 2:55 PM Page 8

Please submit your ‘tech file’ nominations to Jennifer Rabulan at tech file [email protected]

Porsche to Design Megayacht

Porsche Design Group and the Singapore-based yacht maran, over 135 ft. in length, to be sold under the Royal builder, Royal Falcon Fleet, have signed a design and mar- Falcon Fleet brand. keting agreement. Under this agreement Porsche Design Porsche Design will design both the hull exterior and the will design luxury catamarans and megayachts for Royal interior of the mega yacht. Royal Falcon Fleet has engaged Falcon Fleet on an exclusive basis. Porsche Design will also Kockums and Incat Crowther for the engineering and the develop a marketing concept for the yachts. naval architect of the project. The collaborative project will be to design a motor cata- www.porsche-design.com

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STANDARD OF EXCELLENCE

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CLOCKWISE FROM TOP LEFT DAMEN FAST FERRY 4212 DAMEN ATD TUG 2412 DAMEN ASD TUG 2411 DAMEN ASD TUG 2810 DAMEN FAST FERRY 3209 DAMEN FAST CREW SUPPLIER 5009

DAMEN SHIPYARDS GORINCHEM Member of the DAMEN SHIPYARDS GROUP

Industrieterrein Avelingen West 20 P.O. Box 1 phone +31 (0)183 63 92 67 [email protected] 4202 MS Gorinchem 4200 AA Gorinchem fax +31 (0)183 63 77 62 www.damen.nl The Netherlands MN#10 (1-16) REPLACEMENT.qxd 10/1/2008 2:56 PM Page 10

Please submit your ‘insights’ nominations to Jennifer Rabulan at insights [email protected]

Matt Mullett, Managing Partner All American Marine

Please discuss your full background information, such as your roots, education and career history. I was born and raised on a farm in Corvallis, Oregon. I received my undergraduate degree in Chemistry from Eastern Oregon University, I hold a Master of Management degree from Willamette University and have specialized in assisting successful entrepreneurs with transforming their companies to professional managed entities in order to seize the market potential of their product or service. I spent 10 years in the consulting business. I have 8.5 years in health care. I spent two years leading a turn around in the kayak business. I have assist- ed in the sale of two these business to publicly-held cor- porations and stayed on in a GM/CEO capacity. I joined All American Marine in 1999. The first three months were spent evaluating the company and its market poten- tial. Early in 2000, I was appointed as the CEO. Beginning in 2003, I became the Managing Partner, as we moved into an expanded facility

What do you consider to be the three of the most sig- nificant changes that have occurred within the maritime industry in the last five years? Nearly every sector of the maritime industry hasn't had the capacity to keep up with demand. Demand has been strong: in the Gulf Coast oil market; patrol boats for your career that has had the biggest impact to improve Homeland Security; domestic tourism has been very efficiency? strong post 9-11 with a strong demand for ecotour vessels, The acceptance of lightweight catamarans by North etc. Major "capacity" problem has been the availability of America operators — specifically proven designs. I'd like skilled crafts people to perform the work. Soaring fuel to think that our New Zealand designed Teknicraft cata- costs is a significant change: on one hand, this will con- marans with a unique hull shape and equipped with tinue to drive business towards the offshore oil markets. hydrofoils is on the technical cutting edge and with a Operators are faced with decisions to replace their aging 30%+ fuel savings over other catamarans (50% over fleets with the latest fuel efficient technology monohulls) will continue to experience a growing recep- tivity in the years ahead. If you were forced to choose just one, what would you name as the most significant technical advance during What investments are your company making today that

(Continued on page 13)

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Please submit your BOM nominations to Jennifer Rabulan at [email protected] boat of the month Foss Hybrid Tug in Construction in Rainier

In construction at Foss' Rainier Shipyard in Rainier, Oregon, the Hybrid Tug combines batteries, gen- erators and main engines to reduce air pollution and offer greater fuel econ- omy. The technology used is flexible and can be used to convert other stan- dard tugs. Traditional harbor tugs are designed for maximum bollard pull but have a duty cycle that uses full power for only short periods of time. This means higher fuel consumption and inefficient combustion. The Foss Hybrid delivers only the power need- ed through the most efficient combi- sharing the propulsion load between fall 2008. The tug design was award- nation of power sources. The Hybrid the diesel and electrical sources and ed the EPA's 2008 Clean Air Power Management System opti- lowers maintenance costs. Excellence Award for Clean Air mizes power sources - engines, batter- The Hybrid Tug was developed for Technology. ies and generators to run only when Foss' harbor ship assist work. Design needed for maximum efficiency. The by Robert Allan LTD, systems inte- hybrid realizes better fuel economy by gration and hybrid propulsion system design by Aspin Kemp and Associates (AKA) and their affiliate Xeropoint; shipbuilding by Foss. Technical Specifications The Hybrid Tug is scheduled to be Class ...... Dolphin Dimensions ...... 73 ft. 4 in. delivered to Southern California Breadth ...... 43 ft. where it will work in the Los Angeles Depth ...... 12 ft. and Long Beach ports. Together, Operating Draft ...... 15 ft. Tonnage ...... 144 grt these ports handle over 40 percent of ...... 98 nrt all containerized cargo coming into Propulsion ...... Rolls Royce US205 or leaving the United States...... Azimuthing Stern Drives Foss has contracted with Lloyd's Main Engines . . Cummins QSK50 Tier 2 (x2) Auxiliary Power Sources Register North America, Inc. to . . Cummins QSM11 Diesel Generators (x2) obtain a Green Passport certification ...... 1 Gel Lead Acid Battery Pack for the low emission Hybrid Tug. The Horsepower ...... 5,080 Bollard pull ...... 124,000 lbs. ahead vessel, which will be the first tug in 122,000 lbs. astern North America with a Green Passport Fuel Capacity ...... 9,500 gallons certification, is scheduled to begin Fresh Water ...... 500 gallons operation in southern California in Bow Winch ...... Markey DEPGF-42

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(Continued from page 10) are intended for the long-term health of the company? rial costs. We are investing in a CNC router cutter to cut our alu- minum plate, boat launching equipment and aluminum Briefly describe your outlook for the business in 2008 welding/fabrication apprentice program. and beyond? I believe AAM is well positioned to seize a growing por- How have industry and/or customer demands and tion of the market that is looking for a state-of-the-art changes significantly affected the service offerings of lightweight/medium to high-speed catamarans. Gulf your company? coast shipyards will remain busy meeting the needs of off- AAM has made a strategic decision to focus its efforts on shore drilling demands as long as a barrel of crude oil cost-effective vessels for the ecotour, passenger ferry, remains relatively high. Patrol boat builders will eventual- research vessel and workboat markets. We believe that the ly be forced to diversify in order to survive demand for cost-effective, excellent passenger comfort, great seakeeping and low-wake vessels will remain high. What do you consider to be the biggest challenges to Contrarily, we suspect that the demand for patrol boats, your company's continued success? driven by Homeland Security requirements, over time will A big challenge is economic instability: We are seeing be substantially reduced as Federal budgets get tighter and numerous customers choosing to delay their plans to the market becomes saturated. acquire 2nd, 3rd, or 4th vessels — with a "wait and see" attitude until things "stabilize." Other challenges include What do you consider the top priorities for your compa- the inability to estimate material costs on future projects ny in the coming 12 to 24 months? due to soaring inflation and devaluation of the U.S. dol- Continue our quest to build boats "faster, better and lar, and the federal budget significantly curtailed for addi- cheaper," especially in the wake of potential soaring mate- tional research boats.

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briefs Bollinger Awarded Contract for FRCs for vessels Coast Guard Second Superferry Launched

The second of two high speed vehicle-pas- Artist's concept drawing of the Bollinger built Fast Response senger catamarans for Hawaii Superferry Cutter "Sentinel" Class for the United States Coast Guard. has been launched at Austal USA. With a service speed of 40 knots and the capacity Bollinger has been selected to Class Patrol Boats, with the 75th to transport 866 passengers and 282 cars, the high speed catamaran joins sis- design and construct up to 34 Fast patrol boat being delivered next year. ter vessel Alakai, which was delivered to Response Cutters "Sentinel" Class That hull design was also based on a Hawaii Superferry last year as the largest (FRC) for the Coast Guard. The successful Damen design." Bollinger aluminum catamaran ever built in the U.S. While sharing a similar specification to its FRC, a new generation of USCG said that he believes the contract will sister vessel, the 371 ft. high speed ferry patrol boats, is a replacement for the bring a half billion dollars worth of is fitted with a 65-ft. stern quarter, bi- Coast Guard Island Class cutters that business to maritime suppliers. fold ramp, for use in austere ports with- out shore-side loading facilities. The Bollinger built almost a quarter cen- The Bollinger FRC measures 153.5 hydraulically operated aluminum ramp tury ago. x 25.5 x 8.5 ft. and is powered by two has a clear width of 14 ft. and is Bollinger CEO and Chairman of Tier II diesel engines rated at 5760 designed for 46 ton trucks. Powered by four MTU 20V 8000 M70s, the Board, Donald "Boysie" Brake hp. The vessel will accommo- the vessel continues Austal's association Bollinger, said that the program, date a crew of 22for up to five days at with MTU 8000 Series engines. Delivering which is expected to last for approxi- sea. The cutter's missions will up to 12,200 bhp (9100 kW) of continuous power, MTU's Series 8000 is designed for mately ten years, could result in the include search and rescue, drug and fuel efficiency--less than 190g/kWh, construction of 34 Coast Guard cut- illegal migrant interdiction, home- while achieving IMO MARPOL NOx emis- ters that will provide employment for land security and maritime defense. sion certification. Upon completion of the latest Hawaii approximately 500 people in the It will have a top speed over 28 knots. Superferry, Austal will have installed a Bollinger organization. Operational capabilities and crew total of 24 MTU 8000 Series diesel The Bollinger design is based on a comfort are features that have been engines, proven in operation on six Austal vessels over the past four years. parent craft concept using a modern designed into the cutter. It has an Sea trials of the second Hawaii Superferry hull form that was originally devel- extensive electronics suite to provide will be completed in November and December, however the contractual deliv- oped by Damen Shipyards in the command and control along with ery date is not until March of 2009. Netherlands. "We have had an excel- sophisticated communications sys- lent relationship with Damen for the tems. last ten years." said Bollinger. We are At the peak of production Bollinger currently completing another con- will be delivering a new cutter every tract for the USCG, Marine Protector eight weeks.

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USCG Raises COFR Amounts

By Dennis Bryant, Senior Counsel, making. place subject to the jurisdiction of the Holland & Knight LLP Prior to 2006, there were three sets of United States was required to establish On September 17, the US Coast liability limits: (1) tank vessels greater and maintain with the Coast Guard evi- Guard issued a final rule increasing the than 3,000 gross tons; (2) tank vessels dence of financial responsibility suffi- levels of financial responsibility that of 3,000 gross tons or less; and (3) any cient to meet the maximum amount of must be demonstrated by owners and other vessel. The owner or operator of liability under OPA 90. operators of certain vessels operating any vessel over 300 gross tons (except The 2006 statutory change divided on waters subject to the jurisdiction of for a non-self-propelled vessel that does tank vessels into four groups, rather the United States. The applicable not carry oil as cargo or fuel) using any than two, and raised the limits of liabil- amounts of the Certificates of Financial Responsibility (COFRs) are being increased to be consistent with recent statutory increases in the limits of lia- bility. The regulatory amendment is Liability 101. worded so as to account for future man- dated increases in liability limits. The amendments also implement changes in the Coast Guard's adminis- tration of the COFR program and clari- fy the current rule. Among other things, this amendment eliminates the require- ment that the original of the COFR be carried onboard the vessel and increas- es the fees for obtaining COFRs. The changes come into effect on October 17 and vessels subject to the COFR requirement must have COFRs in the new appropriate amount not later than January 15, 2009. Following the 2004 oil spill from the tanker ATHOS I in the Delaware River, Congress re-examined the limits of lia- bility for oil spills. It concluded that the limits established in the Oil Pollution Act of 1990 (OPA 90) were too low for today's environment. Thus, as part of the Coast Guard and Maritime Transportation Act of 2006, it raised those limits, particularly for single-hull Don’t miss a thing with a state-of-the-art NVTi Vision System. tankers. The higher liability limits Lost cargo and flotsam – expensive realities came into effect on October 9, 2006 for for those who work on the water. Chances tank vessels and on July 11, 2006 for all are you either want it back or want a course that bears safely away: Thermal, low lux, other vessels. and daylight cameras combined with radar The increase in liability limits did not, tracking, AIS tracking, object tracking, and 2-axis stabilization provide the situational

though, automatically change the finan- awareness you need to reduce costs and x 7.5”(h) cial responsibility requirements, which save lives. The difference in safety is night and day. are addressed in a separate section of OPA 90 and have their own set of regu- www.nvti-usa.com/mn +1 972.554.3944 lations. It is those COFR regulations that were changed by this recent rule- CLIENT: NVTi JOB #: 19187 PUBLICATION: Marine News DUE DATE: 6/13/08 SPECS: 4c, Trim: 4.5”(w)

www.marinelink.com MN 15 MN#10 (1-16) REPLACEMENT.qxd 10/1/2008 3:04 PM Page 16

briefs

vessels ity for all vessels. In an effort to the COFR amounts will henceforth ACB Launches Line of LEV encourage the accelerated phase-out of keep pace with adjustments in the lim- single hull tank vessels, the amendment its of liability. established relatively low limits of lia- Speaking of inflation, the rulemaking bility for double-hull tank vessels and also provides for an increase in the cost higher limits of liability for tank vessels of obtaining a COFR. The cost per without qualifying double-hulls. application is being increased from The table to the right summarizes $150 to $200. The cost per certification the original and amended limits. is being increased from $80 to $100. The majority of vessel owners and In order to account for a separate operators obtained oil spill liability statutory amendment that eliminated ACB has introduced the new LEVs with insurance coverage at the new, higher certain passive owners from personal multiple engine configurations in 23, 26 or 30 ft.--in a full cabin or center console level shortly after the 2006 amendment liability for oil spills, the rulemaking model. The 50+ mph vessels are single- was enacted. Because the COFR regu- also changes the definition of owner. operator friendly and offer mission criti- lation was not changed, the old COFRs Henceforth, the term owner, for purpos- cal safety features, such as 360 degree remained in effect and those owners es of the COFR requirement, will not unobstructed visibility, strategically placed lighting designed to eliminate and operators who only obtained insur- include "a person, who, without partici- night blinding, integrated dry storage ance coverage at the old COFR amount pating in the management of the vessel, lockers, dedicated Mobile Data Link were personally at risk for the differ- holds indicia of ownership primarily to System storage, and an air/foam hybrid ence if there had been an oil spill with protect the owner's security interest in fendering system. The first two LEVs were recently delivered to the Port of cost and damages exceeding the old the vessel." Miami/Dade, Fla., purchased with funding COFR amount. That potential gap Finally, in recognition of the informa- from the Department of Homeland between coverage and liability is being tion age, the Coast Guard is eliminating Security. These vessels will be operated eliminated by this rulemaking. the requirement that the vessel have on by marine patrol officers of the Florida Wildlife Conservation Commission to pro- The change in limits of liability (and board the original of the COFR certifi- vide marine security 24/7 for the port. now the COFR amount) is intended in cate. Improved technology now allows large measure to account for inflation in each Coast Guard unit to view the ves- Linda Moran Delivered the period between 1990 and today. To sel's financial responsibility status elec- prevent such effective erosion of liabil- tronically and its boarding officers will ity and coverage from occurring in the not be tasked with viewing the COFR future, the 2006 amendment provides upon boarding the vessel. Likewise, it for periodic adjustments of the limits of is one less record that the vessel will liability. This rulemaking provides that have to retain and preserve.

August 15, 2008 was a milestone for If the vessel is a. . . The original limit of liability limit And the amended was the greater of. . . limits of liability Washburn & Doughty as the Linda Moran are the greater of. . . left the shipyard. Linda Moran is the first vessel delivered by the shipyard since a Tank vessel greater than 3,000 gross tons $1,200 per gross ton or $10,000,000 $3,000 per gross ton with a single hull, double sides only, or $22,000,000. fire on July 11, 2008 destroyed the com- or double bottom only pany's main construction building. The Linda Moran was tied to the compa- Tank vessel less than or equal to 3,000 $1,200 per gross ton or $2,000,000 $3,000 per gross ton ny's barge when the fire broke out. Due gross tons with a single hull, double sides or $6,000,000. to light winds and local lobstermen who only, or double bottom only towed the vessel away from the barge, the Linda Moran survived undamaged. Tank vessel greater than 3,000 gross tons $1,200 per gross ton or $10,000,000 $1,900 per gross ton The Linda is a 121 x 36 x 18-ft. Intercon with a double hull or $16,000,000. tug owned by the Moran Towing Corporation of New Canaan, Ct.. The ves- Tank vessel less than or equal to 3,000 $1,200 per gross ton or $2,000,000 $1,900 per gross ton gross tons with a double hull or $4,000,000. sel is surveyed by the American Bureau of Shipping and complies with applicable SOLAS regulations. Linda Moran was Any vessel other than a tank vessel $600 per gross ton or $500,000 $950 per gross ton or $800,000. designed by Ocean Tug & Barge Engineering Corp. 16 MN October 2008 MN#10 (17-32).qxd 9/18/2008 11:35 AM Page 17 MN#10 (17-32) REPLACEMENT.qxd 10/1/2008 3:05 PM Page 18

columns Marine Insurance - What Do You Really Need?

Lawrence R. DeMarcay, III is a partner important issues to be aware of. Some policies have at Fowler Rodriguez Valdes-Fauli in the deductibles, or deductible-like provisions, which create a firm's New Orleans, Louisiana office. minimum amount of damage before the insurer pays on He can be reached at 504-595-5122 or the policy. A deductable in a marine policy works just as [email protected] it would with any other insurance policy. An insured must pay a certain amount themselves, and the insurer will cover any amount above that to repair the injury. As one of the most ancient forms of insurance, marine However, some policies use a different provision called a insurance has taken on many shapes and forms in this franchise. A franchise is a minimum amount of damage modern world. In order to make informed decisions that must be incurred before the insurer covers the loss - when procuring marine insurance, it is important to know but then the full amount of damage, including the fran- the basics of what types of insurance are available to vessel chise, is covered, up to the policy limit. These deductibles owners as well as what each type of policy covers. and franchises protect insurers from liability for the nor- Marine insurance protects vessel and cargo owners from mal wear and tear a vessel suffers due to its everyday use. losses sustained as a result of "the Perils of the Sea." Perils Two other important clauses to be aware of in hull poli- are extraordinary actions causing damage to a vessel or her cies are Inchmaree Clauses and Sue and Labor Clauses. cargo. Typically, this definition also includes accidents or An Inchmaree Clause covers latent defects in the hull and mishaps in navigation which are not anticipatable. Some machinery. This protects the buyer of a vessel from common examples of perils are: collision, foundering, injuries caused by flaws in the design, or in the manufac- stranding, fire, barratry (an act of the Master against the turing of the vessel, which may take time to reveal them- vessel or her cargo), hitting ice or rocks, or even waves selves but can be the cause of an accident or injury. Sue from a passing ship. Most insurance policies also cover and Labor Clauses dictate that a vessel owner is required losses due to theft. As such, it is important to clarify with to take necessary measures to repair the vessel after dam- your insurer whether or not your policy covers clandestine age occurs. If the repairs are successful, the owner is com- theft or pilferage. pensated for the reasonable costs of the repairs. If the Marine insurance can be separated into three categories: repairs are unsuccessful, the insurer must pay for both the hull and protection and indemnity coverage, cargo cover- total loss of the vessel, and the repair costs the owner age, and marine liability coverage. Hull coverage protects incurred in attempting to save the vessel from further the vessel itself and its machinery. These policies typical- injury. While it may sound counterintuitive for insurers ly cover physical damage, salvage costs and also provide to do this, it forces vessel owners to attempt to salvage a collision liability - also known as a "running down clause". damaged vessel before the insurer becomes liable for the Protection and indemnity coverage, also called "P & I" total loss of the insured vessel. coverage, covers bodily injuries and property damage If you are purchasing a vessel that has the potential to caused by a vessel. It not only covers collision liability not fluctuate in price, or could be costly to replace, some included in a "running down clause," but also covers other insurers allow vessel owners to purchased "Increased Hull important potential liabilities. Essentially, while P & I Cover" or "Hull Interest" policies. These policies allow an policies insure the vessel owner's incurred liability, it is owner to take out a policy for an amount greater than the important to find out what exactly is and is not covered by fair market value of the vessel. This protects an owner the policy in order to make an informed decision about against fluctuations in price throughout the year, while what additional coverage you need to purchase. also providing the owner with money that may be needed When looking to obtain hull insurance, there are some 18 MN October 2008 MN#10 (17-32) REPLACEMENT.qxd 10/1/2008 3:06 PM Page 19

to cover administrative costs incurred while procuring a inland in the course of its transport. replacement vessel. As you can see, marine liability policies are tailored to Cargo insurance covers goods on vessels in transport. It address the specific needs of vessel operators. While you is usually obtained shipment by shipment, but can also be may or may not need certain coverage, it is important to purchased for a set period of time. Cargo policies can be know that they exist so that you can make an informed separated into three types of coverage: "all risk policies," choice when purchasing insurance. In addition to this "with average policies," and "free from particular average basic hull, cargo and P&I coverage, many insurers have policies." specialty policies for stevdore liability, wharfinger liability, "All risk" policies offer the most protection, covering all terminal operator's liability, ship repairer's liability, ship losses attributable to external causes. Though called "all builder's liability, charterer's liability, etc. and cover dif- risk" policies, misconduct and fraud normally prevent ferent exposures specifically related to the nature of each recovery. Additionally, insurers can also specify addition- industry. al risks not to be included in the coverage. In addition to these traditional marine policies, many "With average" policies provide that, unless a stated per- insurers are beginning to offer what is called a "Marine centage of the insured's cargo is lost due to injury, the General Liability" policy. These policies combine a tradi- insured is not entitled to coverage. An "average" is just tional "Commercial General Liability" policy with other another word for a partial loss. In an effort to protect coverage specific to the marine industry, such as P & I themselves from losses sustained due to the inherent sus- coverage, or different legal liability coverage. While these ceptibility of the goods, and/or the nature of shipping relatively new policies address the unique needs of vessel goods on vessels, insurers came up with the "average." For operators, it is important to watch out for insurers limit- example, when shipping glassware or when shipping per- ing the policy coverage which you would normally expect ishable goods, some will break and some will perish - but from a Commercial General Liability policy. So, while a not due to a peril at sea. This average, or partial loss, is Marine General Liability may look and feel like it is pro- also called a "trade loss." If more than the assigned per- viding typical Commercial General Liability coverage, it centage is damaged, the inference is that a peril at sea may in fact have many limitations on the insurer's possi- caused the loss - not the cargo's inherent susceptibility to ble exposure to liability. injury. It is important to note that the required percent- For the cautious vessel owner, many insurers provide age acts as a franchise, and not a deductable. If the loss is excess insurance policies. Excess insurance is also known greater than the assigned percentage, the insured is com- as an Umbrella policy, and in the marine market may also pensated for the entire loss, because it is inferred the loss be referred to as a "Bumbershoot Policy." These policies is due to a covered peril at sea. provide higher limits for primary liability coverage, such In plain language, "free from particular average" (FPA) as general liability, P & I, legal liability, etc. Once the pri- coverage provides that an insured is not covered for a par- mary coverage is exhausted, the excess insurance policy tial loss to his insured cargo unless it results from some steps in and provides coverage. enumerated event, occasion, or peril. These policies pro- While this article is by no means an exhaustive explana- vide less protection for cargo by only covering partial loss- tion of the intricacies of marine insurance, it aims to es if, and when, certain perils or events occur. Some FPA inform vessel owners about some of the common policies policies require the loss to be a direct result of the enu- available, and what to be aware of when obtaining insur- merated cause, while some only require that an event ance. Due to the increasing cost of insurance and the pay- occurs, followed by a subsequent injury. It is important to ment of claims, this is an area where a little knowledge can talk to your broker about which provision your policy go a long way towards maintaining the profitability of contains. your fleet. If cargo will be going from a warehouse to another ware- house, or other inland destination, you may consider making sure your policy contains a "warehouse to ware- house" clause, which insures the cargo while being trans- Lawrence R. DeMarcay, III is a partner at Fowler Rodriguez ported, moved, or loaded from, or onto, land. Depending Valdes-Fauli in the firm's New Orleans, Louisiana office. He on the carrier, this may also be called a "shore clause," and can be reached at 504-595-5122 or ldemarcay@frvf- is made for anyone knowing their cargo will be moved law.com. www.marinelink.com MN 19 MN#10 (17-32) REPLACEMENT.qxd 10/1/2008 5:00 PM Page 20

briggs

The Time to Have Planted the Tree was 10 Years Ago ...... The Next Best Time is Today

Don G. Briggs, President of the demand growth is 2%. That would add approximately Louisiana Oil & Gas Association (LOGA), another 2 million barrels per day. The world will have to an independent oil and gas association discover 8 million new barrels of oil next year to meet representing exploration, producing and decline and growth. That is equivalent to discovering the service sector companies operating in Louisiana. Email: [email protected] total production of the United States and Mexico. The US, having only 5 percent of the world's popula- tion, consumes 25 percent of the world's daily oil pro- If you were to ask me what single issue concerns me the duction. Our production is 5.1m barrels of crude of oil most, I would tell you, I am most concerned that the per day but we consume 22m barrels per day, therefore we American public is not aware of what they are about to be must import the balance. The US has only 2.5 percent of faced with. It is also concerning to me when I see Russia, the world's proven oil reserves. the world's largest oil producing country, awash with oil What is wrong with this picture? We are the only coun- revenues, reach out to Saudi Arabia and the OPEC try in the world that has 85% of its natural resources off nations, hinting of a possible alliance with the oil cartel. limits for exploration and development. I have said it Combined, they would control over 50% of the world's before and I am saying it again, it is time to lift the mora- oil production. torium on exploration to the Outer Continental Shelf off Oil is finite, meaning it depletes. Today, the world's the lower 48 states. crude oil depletion rate according to some experts is close The MMS (Mineral Management Services) conservative to 10%. It's important to understand that Gawhar, the estimate of US domestic crude oil "Undiscovered largest oil field in the world in Saudi Arabia, is in a decline Technically Recoverable" is 86 billion barrels. Fifty nine rate of 8%, and Cantarell, the second largest oilfield in the percent of that is in the Gulf of Mexico. The conservative world belonging to Mexico, is in a 10% decline. estimate of "Undiscovered Technically Recoverable Let's assume the current world crude oil production is at Natural Gas" is 420 trillion cubic feet. Fifty six percent is 86 million barrels per day. Using a very conservative in the Gulf of Mexico. decline rate of 7%, the world would have to discover a Opponents to lifting the "Moratorium" accuse industry new 6 million barrels per day next year to stay even with of hoarding idle oil and gases leases and say industry is not current world supplies. Let's also assume world oil producing on 60 million leased acres. Opponents propose a policy of "use it or loose it". The fact is we already have a "use it or lose it" clause in our federal oil and gas leases which states that if no production is established within ten years, the lease is relinquished. Since August of 2007, 10 million acres have been leased in the GOM at a cost of $7b to industry. Of the 40 mil- lion acres currently under lease in the Gulf of Mexico, 10 million acres is acreage turned back to MMS and leased again to industry. The undiscovered technically recoverable oil and natural gas in Gulf of Mexico is not the long-term solution to our nation's energy problems, but the bridge that will provide energy security until the "new fuel" of the future is devel- oped. Reprinted with premission from www.loga.la Source: EIA/Annual Energy Review 2007

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cummings Cummings: Oil Spill Presents Troubling Portrait

Congressman Elijah E. Cummings (D- gent or that its managers felt that there was little risk of MD) represents Maryland's 7th being caught while operating without properly licensed Congressional District. He is the personnel. Chairman of the House Subcommittee Given widespread claims in the towing industry that the on Coast Guard and Maritime Transportation. operation of towing vessels by improperly licensed per- sonnel and violations of the 12-hour rule are common, it may even be that companies look upon the fines that they I convened the Subcommittee on Coast Guard and may incur for such violations as simply the "cost of doing Maritime Transportation on September 16 to examine the business." If that is the case, it is unacceptable, and it recent oil spill in New Orleans, as well as the broader demands more rigorous enforcement of existing laws and issues of safety in the towing vessel industry that were regulations-if not the strengthening of penalties for the highlighted by the accident that led to that spill. violation of these provisions. The July 23rd spill occurred when a towing vessel At the time of the accident on July 23rd, the towing ves- pushed a tank barge into the path of an on-coming tanker. sel Mel Oliver was chartered by its owner, American The towing vessel involved in the casualty, the Mel Oliver, Commercial Lines (ACL), to DRD under a bareboat char- was not being operated at the time of the collision by a ter and then hired back by ACL under a fully found char- properly licensed master. Instead, it was being operated ter. This arrangement appears to have been designed to by a person holding only an apprentice mate's license who enable ACL to operate its vessel at the cheapest possible was not authorized to operate a towing vessel without the costs - by shifting maintenance responsibilities and, more presence of a licensed master in the wheel house. importantly, the costs of hiring of crew members, onto DRD towing, the firm operating the Mel Oliver, has a DRD, a firm that was obviously ill-prepared to meet these history of operating vessels without properly licensed per- responsibilities but with which ACL had nonetheless done sonnel. Less than two weeks before the incident involving business for a decade. the Mel Oliver, DRD was apparently illegally operating ACL's representative testified during our hearing that the towing vessel Ruby E with a person holding only the the firm had a process for vetting the companies to which apprentice mate's license when the vessel sank. DRD it chartered its boats; however, ACL's representative also Towing has also been cited by the Coast Guard for oper- testified that the firm was unaware of past instances in ating towing vessels without properly licensed personnel which DRD operated towing vessels without properly on several previous occasions. licensed personnel. This suggests that ACL's vetting DRD was a member of the American Waterways process was inadequate - perhaps because there appear to Operators (AWO) at the time of the collision between the be few standards either in law or in AWO's Responsible barge being pushed by the Mel Oliver and the tank vessel Carrier Program regarding the specific issues that should and also at the time of the sinking of the Ruby E. be vetted before charter agreements are concluded. However, in May, the firm failed the safety audit that While the facts surrounding the July 23rd accident pres- AWO requires as a condition of membership in its associ- ent a troubling portrait of the towing industry, unlike in ation. The audit is the cornerstone of the program AWO many instances in which problems are prevalent within a terms the "Responsible Carrier Program," which it argues given industry, the Coast Guard appears to have all of the is designed to ensure safety in the towing industry. authority it needs to deal with many of these issues. The fact that DRD could sink one towing vessel and The Coast Guard has had the authority since 2004 to set then, less than two weeks later, cause a major collision hours-of-service limits on towing vessels but has not exer- with another towing vessel when neither was being oper- cised this authority despite widespread agreement that ated with properly licensed personnel - after having been human factors - and particularly fatigue - are among the cited on previous occasions for such violations - suggests most prevalent of all causes of casualties on towing vessels. to the Subcommittee that either this firm was truly negli- Similarly, Congress passed a law in 2004 finally bringing

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Super Yachts Where is the Yacht Market Going? By Roger Marshall, U.S. Editor, The Yacht Report nized by investment backers who are looking carefully at The superyacht market is still expanding, although not moving into the industry. Investments in infrastructure as fast as it was two years ago. Most major builders are improvements are accelerating as businesses like reporting a three to four year waiting list, but some cracks International Global Yachting (IGY) push into marina are appearing, especially in the American market. Orders development worldwide. With more than 40 marinas placed two to four years ago in a strong economy are hit- already under the IGY label, this company has more proj- ting the launching ways, and new orders are following ects underway. them albeit at a slightly slower rate. In many ways this Some of the trends that have developed over the last year slight slowdown is good news in that it eases pressure on or so are; a definite trend toward larger and larger yachts, subcontractors, builders, and new-build managers, who a large expansion of the refit industry, a few hiccups in have been stretched almost to their limits over the last two financing yards and yachts, finding competent crew, and years. going green. Does that mean that the market is shrinking? Not real- These trends appear to indicate that the industry is ly. According to figures given at the last Global strong and vibrant, but not without its growing pains. In Superyacht Forum in Amsterdam, less than 5 percent of talking to many builders it is apparent that the market has the people with enough disposable income to purchase a not yet reached its saturation point and that the special- superyacht actually own one, so there is tremendous mar- ized yacht building market will continue to grow even as ket potential. That this potential is there has been recog- the economy slows.

The superyacht Lady Houra coming into the MonacoYacht Show.

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The Size of the Fleet has fallen from a high of 238 in 2006 to 188 in 2008. In The superyacht fleet has been expanding quite rapidly the 40m to 50m range, expansion continues from 101 over the last fifteen years. The Yacht Report uses 30 yachts in 2006 to 113 yachts on order in 113. meters (100 ft.) as the lower limit of the superyacht fleet, It should be noted, however, that many of the new which puts the total number of yachts at about 4,500. builds are for former owners, who are trading up from Other magazines use 24 meters (80 ft.) as the lower limit, smaller yachts and are prepared to wait the three or four giving a fleet size of around 7,000 yachts. According to years for a new vessel. This appears to indicate that the The Yacht Report the fleet order book is still expanding industry is one that would benefit from a good marketing from a base of 81 yachts on order in 1998 to 445 on order and branding program to potential buyers. by the end of 2007. Sailing yachts com- prised 52 of these vessels, while 393 were motor yachts. Of this fleet, 253 yachts were delivered worldwide in 2007. (2008 figures are not available yet.) quality • reliability • guaranteed An interesting trend is that the num- ber of yachts over 50 meters in length have increased dramatically. From a low of 24 in 1999 to only 61 in 2004, the order book now shows 144 yachts over 50 meters being built worldwide. While this trend has been developing, the order book for yachts 30 to 40 meters

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The Refit Business Another problem arises when foreign yachts look at The refit business is also expanding dramatically. To see doing a major refit in America. At first glance it would why, look back to the early 1990s when the boom started. appear that a low dollar would attract a lot of refit busi- Now there are more than 4,500 yachts larger than 100 ft. ness in the United States, but extensive governmental (or over 30 meters). These yachts are repainted every three restrictions are placed on foreign crews, plus the costs of to five years, re-engined every three to seven years depend- getting across the Atlantic are moderately high. For exam- ing on regulations and usage, refitted after being sold ple, for a 50 meter yacht the cost of coming across on often every three to five years, and hauled every one to Dockwise Yacht Transport can range from $250,000 to three years. Typically, a repaint job costs about as much as more than $600,000 depending on the time of year. This new engines and is done more often. expense can be worthwhile for a yacht with an American With the fleet expanding by around 200 to 300 yachts crew that will charter in the Caribbean before or after- each year, there is a lot of refit work to go around. But the ward the refit, but it may not be cost effective for yachts major drawback has been that not many yards can haul that plan to return to Europe after the work is done or yachts of 500 tons or 50 meters. Consequently, yards such that have a large foreign crew. as Merrill-Stevens in Miami, Rybovich in Stewart, Is it Super- mega- or giga-yacht? Cracks or Hiccups? Florida, and other yards in Incidentally, the terms megayacht and superyacht have While the overall trend is the south of France, Italy, gradually become identical in usage. Originally, a toward larger yachts and and Spain have made signif- megayacht was a vessel larger than a maxiyacht, which expansion across the board, icant upgrades to their facil- was around 85 ft. The upper limit of a megayacht was there have been a few hic- ities in order to be able to taken to be about 120 feet, with the term superyacht cups. Broward Yachts in Ft. refit these yachts. used for vessels from 120 to 200 ft. Today, the largest Lauderdale has temporarily yachts in the world may be upwards of 400 ft. long - some call them gigayachts.

An alloy hulled new yacht under construction in Wisconsin. This vessel is one of the many new yachts underway in a booming industry.

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stopped building when a financial investment deal soured. Zealand, America, and Europe, but today crews from According to Dan Goodstadt, Vice President of most countries of the world are working aboard large Marketing, the company has other investors in the wings, yachts. and after it has its financing straightened out, it will reopen the production line. Going Green Derecktor Bridgeport went into voluntary Chapter 11 Another trend in the large yacht industry is that of going after becoming involved in a dispute with an owner who "green" with new regulations concerning emissions, pol- was building the largest catamaran in the world at 145 ft. lution, and bottom paint. Many very large yachts are fol- The owner alleges late delivery and cost overruns and has lowing cruise ship trends in that they are using diesel-elec- pursued litigation against the company. To protect the tric motors to drive azimuthing pod systems, thus trend- 85.6m yacht under build at the yard and several other ing toward an all-electric yacht. Smaller yachts are follow- commercial projects, Derecktor entered Chapter 11 while ing this trend, but not yet on a large scale. There is a def- the litigation is being settled. Incidentally, it is not unusu- inite interest from owners on going green, but yachts have al for leading-edge projects such as this giant catamaran to not yet gone to the extent of the Orcelle solar-powered run late or to become more costly than expected. This is ship project from Wallenius Wilhemson Logistics. often part of the price of pushing the edges of the enve- A Final Note lope to their limits. It is interesting to see the expansion of the number of yachts, followed by wholesale restructuring of the infra- Finding Crew structure to accommodate the yachts. The industry is now With the general expansion of the superyacht market, at the stage where there are many peripheral industries the building of much larger vessels, and the practice on attempting to attach themselves to the boom. A typical some boats of using two crews, the need for experienced example, is that the Monaco and Ft. Lauderdale boat crew is constantly increasing. Training schools are flat out shows both dedicated to superyachts, are seeing greater trying to find new people to enter the industry. Originally, competition as newer show operators try to move upscale crews came from maritime countries such as the UK, New to the large yacht industry.

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Trinity Yachts “Overnight Success”

By Matt Gresham Dane said in mid-September of the 164-foot Norwegian Founded in 1988 as a division of Halter Marine Group, Queen. "We've grown from doing about two boats a year Trinity Yachts LLC delivered its first luxury vessel - a 97- to six or eight boats a year, depending on the size and footer - in 1990. complexity. We laugh that we are a 20-year overnight suc- Since then, the yacht-builder has delivered one or two cess." boats a year, focusing on quality over quantity. In 2000, Today, Trinity has contracts for 24 yachts to be built Trinity's President and CEO John Dane III retired as vice between its yards in Gulfport, Miss. and New Orleans, chairman, president and chief operating officer of La., shipyards - more linear feet of custom luxury super- Trinity's combined parent company Friede Goldman yachts under construction than any other shipbuilder in Halter Inc. and acquired Trinity with fellow Friede the world. Goldman colleagues Felix Sabates and Billy Smith. Dane said Trinity's growing reputation, combined with The rest, some would say, is boat building history. a soft dollar has helped sales. "We're getting ready to deliver number 42 next week," "The weak dollar makes it look like our boats are on sale

Norwegian Queen in the fabrication yard.

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to foreign investors. The strong Euro said. "We've re-roofed and walled 80 stone in March, when it delivered its and weak dollar really makes the pric- percent of all of the buildings and lift- first vessel built entirely at the New ing look attractive," Dane said. ed all of the electrical services 13 feet Orleans facility since Hurricane Price is not the first consideration and replaced all the equipment that Katrina - the second-largest sport-fish by buyers considering luxury vessels went underwater - a $10 million super-yacht in the world - the 122- priced between $30 million and more investment on top of the purchase foot Mary P. than $90 million. price." At the yacht's christening, Trinity "The brand and reputation has The yacht builder struck a mile- Vice President Billy Smith III stated: grown worldwide, where owners and brokers want to buy a Trinity," Dane said. "We were previously in a catego- ry where people would say 'let's go look at a 160-footer.' Now, they say 'let's go look at a Trinity.'" Quality and value is what Dane says keeps customers coming back to Trinity. "Forty percent of our backlog is for 360. repeat customers," he said, referring to the 6 million-man-hour, 24-vessel backlog. "The difference between Trinity Yachts and others is the differ- ence between a Mercedes and a Yugo - there are different service levels and At Hayata, we offer stainless steel cable ties warranty. We use the analogy that people buy a Rolex not to keep time, and banding with 360º of coating, for ultimate but because it's jewelry. In any luxury brand, quality, appearance and resale corrosion resistance. It’s just another reason value all come into play." Arriving at the "top of the moun- why Hayata is the strongest around. tain" wasn't easy, Dane says. Hurricane Katrina devastated Trinity's facilities in 2005 and dis- placed most of its employees for months. Following the storm, Trinity officials made a commitment to rebuild and grow the company's 42- acre, 500,000 square-foot covered production facility along the 214-360-7708 Industrial Canal in New Orleans. 877-785-8437 To begin, Trinity purchased the for- merly leased space from the Port of hayata.com New Orleans. "At that point, we wanted to be able to put in all of the improvements and repair all of the Katrina damage and we didn't want to make that kind of investment in a leased facility," he

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A plush pilot house

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"This is a very proud moment for everyone involved in building these great yachts. Since Katrina, there has been a lot of hard work and hundreds of thousands of hours invested in these yachts, but it is also an investment into a wonderful city with a rich history as we continue to expand and add employees." Trinity currently employs 300 people at its New Orleans facility and 650 in Gulfport, with a need for about 100 more electricians, pipefitters and welders at each. Recently, Hurricane Gustav made landfall slightly to the west of New Orleans. Improvements to the City's levee system and emergency preparedness plans aided a quick Billy Smith Felix Sabates recovery and helped protect Trinity's assets, as they were able to return to full operation just three days after the storm. "We are very relieved not to have had to go through the Trinity Yachts By The Numbers

headaches of Katrina again," said Sabates, Trinity's chair- Gulfport, Miss Facility: man. "The experience of weathering Hurricane Katrina 50 acres • 650,000 Square Feet of Covered Production Space three years ago was invaluable and I have to say a word of 650 Employees thanks to our employees who executed our new and New Orleans Facility: improved emergency plans for such future issues. Once 42 Acres • 500,000 Square Feet of Covered Production Space these were implemented, we had a very good starting 300 Employees On the Web: www.trinityyachts.com point with which to get the two Trinity shipyards back in full operation quickly." Trinity Yachts On Order Sabates added Trinity's growth plans for the coming year Name Length Hull Launch are on track, which includes adding new builds and (ft.) Type Date employees at both yards. Housed at Trinity's facilities are Norwegian Queen 164 Aluminum Tri-Deck 2008 Mary P 122 Aluminum Sport Fish 2008 Naval architects, marine engineers, estimators, purchasers, Anjilis 161 Aluminum Tri-Deck 2008 production control managers, program managers, produc- Unbridled 191 Aluminum Tri-Deck 2008 tion personnel and administration, enabling Trinity to Big City 141 Aluminum Tri-Deck 2008 Wheels 164 Aluminum Tri-Deck 2008 design, engineer, construct and deliver true custom yachts T040 196 St. Hull & Alum Tri-Deck 2009 under one roof. T045 190 Aluminum Tri-Deck 2009 Mine Games 196 Aluminum Tri-Deck 2009 "We are truly a custom builder," Dane said. "We have Blind Date 161 Aluminum Tri-Deck 2009 two or three really unique yachts we're negotiating with Big Zip 142 Aluminum Tri-Deck 2009 clients to build now, which would be pretty stunning if we Lady Linda 186 Aluminum Tri-Deck 2009 Carpe Diem 189 Aluminum Tri-Deck 2009 get to build them. T054 164 Aluminum Tri-Deck 2009 Prior to Hurricane Katrina, Dane said most buyers were Mia Elise 164 Aluminum Tri-Deck 2010 T052 164 Aluminum Tri-Deck 2010 from the United States or Canada. However, due to the Imagine 164 Aluminum Tri-Deck 2010 changing economy, the majority of buyers now come from New Horizon 242 St Hull & Alum Quad Deck 2010 the Middle East, South America and Europe. T056 164 Aluminum Tri-Deck 2010 T057 164 Aluminum Tri-Deck 2011 "There's never a dull moment with the creativity or T058 164 Aluminum Tri-Deck 2011 imagination our owners have," Dane said. "There are T059 208 Aluminum Tri-Deck 2010 T060 164 Aluminum Tri-Deck 2011 intricate laser cut stone packages that cost in excess of T061 167 Aluminum Tri-Deck 2012 $500,000 that get a lot of the 'wow' factor. Lighting and entertainment systems are up there. Really, with the imag- ination and the wallets of some of our clients these boats International Yacht Collection. IYC sells and purchases can be pretty spectacular." variety of yachts, including Trinity brands, and is heavily About a year ago, Trinity also branched out into yacht involved in yacht management. brokerage by acquiring Fort Lauderdale, Fla.-based "It broadened our business profile," Dane said.

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Yacht Builder Realizes Olympic Dream

By Matt Gresham Motor yachts powered by roaring diesel engines with more than 4,500 horsepower fuel John Dane III's profes- sional career at Trinity Yachts. However, steady ocean breezes and the calm sounds of the Gulf of Mexico prove to satisfy his soul and his competitive ambitions. "I build power boats to feed my family and race sail- boats for pleasure and enjoyment," Dane said recently, just back from the 2008 Olympics in Beijing, where he competed as the oldest United States Olympian at 58. Dane sailed the Star class keelboat, a two-man opera- tion, with his son-in-law Austin Sperry. An avid sailor since the age of 10, the New Orleans native began his journey at summer camps at Southern Yacht Club, racing Fish class boats on Lake Pontchartrain. "I actually took up sailing because of golf," Dane joked. "My father played golf and the more he played the worse he scored. One day he came home frustrated and told my mother he had to find something else to do. She suggest- after three races we were in first place. The winds picked ed we take up sailing and the rest is history. He became a up later in the regatta and our decision proved to be club champion and I became an All-American." detrimental to our finish." The sport became a passion for Dane after a second- The pair finished 11th in the end, but the experience place finish in the 1968 Olympic trial to a fellow New was priceless for Dane, especially due to his elder status. Orleanian. It certainly wet my appetite and made me "On a number of occasions people would look at me realize I had enough talent to do it because we were so and ask to speak to the helmsman of the U.S. team," close," Dane remembered. "It motivated me to try some Dane said. "And I'd have to explain I'm the competitor, more." not the coach." So are the 2012 London games in Dane's A graduate of Tulane University with a Ph.D. in Civil future? "No. I told some people at 58 and going to the Engineering, Dane was a three-time All-American sailor gym at 5 a.m. five days a week, there's probably not at Tulane and earned the Intercollegiate Sailor of the Year enough Advil in the world to get me through to London," award in 1968. Dane's seventh Olympic trial proved to be he joked. "It's a strenuous sport and at the Olympic level, the charm. Along with Sperry, who met Dane's daughter, it's a lot of work. Out of 16 competitors, really only three Sally, in 1999 at a regatta on the Mississippi coast, the of us had careers outside of sailing. The sport is very pro- pair earned a spot on the 2008 Olympic team. The pair fessional." trained together for the last three years and realized the But Dane will likely still be found sailing recreationally significance of their efforts August 8, standing inside the and at times competitively on Lake Pontchartrain or in tunnel of the "Bird's Nest," awaiting the opening cere- Pass Christian, Miss. "I've done it," he said of the monies. "It was obviously very thrilling and an emotion- Olympics. "It was my dream and my goal and I am happy al moment to be standing in the tunnel and to hear all the to get back to a more normal life with my family and chants of 'USA' and to see the crowd," Dane said. "I got business." Dane's day job is serving as president and CEO goose bumps. It was an unbelievable moment." of New Orleans-based Trinity Yachts LLC and majority The competition was tough among the 16 competitors owner of Gulfport, Miss.-based United States Marine in the Star class, Dane said. To garner an edge, the pair Inc., which builds high-tech patrol boats for the U.S. decided on a "light-air" strategy (low wind speeds). Navy and international militaries. "Of course, there will "Our decision was based on a 20-year history of weath- be a little sailing on the local level for fun," Dane said. er forecasts," he said. "We rigged the boat for light air and

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-!2).%.%73 2009 EDITORIAL CALENDAR

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Feature: CEO SIX PACK Feature: PASSENGER VESSEL ANNUAL Industry Leaders outline trends and challenges Market: U.S. COAST GUARD REPORT Market: BARGE BUILDING REPORT Product/ Product/ Directory: WELDING CUTTING & MACHINE TOOLS Directory: COATINGS & CORROSION CONTROL

BONUS DISTRIBUTION PVA Maritrends * 2010

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Tugboats A Tale of Tugs of Two Cities

By Don Sutherland worst of times -- or anyway, pretty bad times. It was the best of times set in the worst of times. To Well sure, the times could get worse, and maybe the everyone's surprise, turnout was way up at two big mar- message was, when the going gets tough, go out and face itime events, the New York tugboat races in one city, and it. That seems to be something tugboats do anyway, gen- the Waterford Tugboat Roundup in another. Merely four erally on a large scale in difficult settings, sometimes at days and 150 miles apart, the two tugfests form the epoch peril. Maybe times of economic peril get the same treat- sometimes referred to as National New York State ment. Oh, the price of fuel is up 300 per cent? Let's party. Tugboat Week. During the Sixteenth annual New York Tugboat Commencing on Sunday, August 31 for the morning Challenge, staged on the North River between the 79th and early afternoon, picking-up the following Friday Street Boat Basin and Pier 84, echoes of our pretty bad through the weekend, the two events shared more than times rose like tombstones from both shores. These are just record numbers. They also shared boats, at least three the monoliths people live in, on former sites of piers peo- of which showed-up at both. So much activity and cele- ple worked on. Some forces sympathetic to that transition bration was way unexpected, coming as it did during the were now in collapse, their imaginary world taking lives as

Pier 84, N.R., possibly the first in Manhattan with its own grassy knoll and forest, also has bollards. With tugs thoughtful- ly fendered, it served public interest with close-up views of a New York success story — its growing towing industry. (Photo: Don Sutherland)

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it pancaked. As a shot in the arm, when upliftance is needed, it can sometimes be good to go and be bois- terous. So the tugs came out to play. 1937-built Bushey canaller Rock gardens and all, Manhattan Chancellor, with her house retracted, sported new paint has become inhospitable, mostly by as part of restoration by the intention, to working watercraft in Waterford Maritime Historical general. Sometimes the edges of piers Society. (Photo: Don Sutherland) are designed all wiggly, or otherwise raise concerns over the topic of dock- ing. The powers in charge of Pier 84, the Hudson River Park Trust, allowed their concerns to be satisfied. For the second year in a row they made their facility available to the Working Harbor Committee, organizers of the event. Everyone is grateful, of course, and applauds the flexibility of all, but it seems an oddity there should be concerns in the first place. You'd think an island would bend over backwards to build sturdy piers. The goods they receive, after all, arrive by water at the lowest economic and environmental cost. The benefits of a robust maritime industry came up in a number of contexts, as National New York State Tugboat Week unfolded.

Official Tugboat Upstate in the Town of Waterford, they're a little less bashful about their connection to tugboats. They acquired one all their own, the tug Buffalo, built on and for the Canal system in the mid-1920s, and they're keeping it much as the Big Apple keeps Central Park -- something attractive and charming and informa- tive in its way, which makes everyone glad it's around. The bulkhead at Waterford is, of course, officially the first few hundred feet of the man- made Erie Canal. Next begins the Waterford Flight, at Lock 2. Canal director Carmella R. Mantello gave a brief talk during the Roundup, commenting on the great work ethic of the Canal's history. The

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Aboard Port Albany Ventures' tug Empire, Joe Hubbard and John Anderson are snapped with son and grandson, respectively. That's a grandpa? Something about tugboating must keep a bro young. (Photo: Don Sutherland)

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cultural side of maritime preservation has gathered three of these historic boats place educational missions momentum upstate. One nearby reminder of that ethic high on their agendas. was the 1937 tug Chancellor, a Bushey restoration project In order to discuss educational matters, you need a place in the care of the Waterford Maritime Historical Society, to sit down out of the rain. It poured on Saturday. This sporting new paint as a step in its restoration. purpose was served by the covered wooden barge raised Just downstream of the Roundup was the 1921-vintage long ago by Steve Trueman. It was the sole venue through- Day Peckinpaugh, a first-of-her-kind, last-of-her-kind, out the Roundup for presentations and formal discussions built-for-the-canal bulker, now owned and in restoration and a fair amount of singing. The Francis Turecamo, a tug by the New York State Museum. built for canalwork, delivers the barge where needed. Meantime, few vessels evoke history better than Canal The Matton shipyard in Cohoes, across the way from Corp.'s own fleet, the "Empire State Navy." Meticulously Waterford, itself has long been discussed as a museum site, maintained, pushing 60 years old at the youngest, about formalizing an historical locus around the first locks of the eighty at the oldest, they do the grunt work of the canal. canal. This year's Roundup participants included the Governor Cleveland, a 1927-built icebreaker, and the Grand Erie, Playing Hardball Canal Corps ' only pushboat. The 1901 tug Urger is The historically inclined would think it a wonderland, if Canal Corp.'s ambassador, and was one of the participants they could follow Friday's parade from Albany to at both cities this year. Waterford. The first hint of history would be USS Slater, The tug Cornell, built in 1949 for the Lehigh Valley a 1944-built destroyer escort, now a museum at Albany. Rail Road, was another to appear at both. The 1930-built Also starting at Albany would be tugs that are classics, W.O. Decker also attended both, the last running wood- though hardly museum pieces -- the Cheyenne from Port en tug in the east, operating for Manhattan's South Street Albany Ventures, and the Troy-based Margot from New Seaport, declared "Tug of the Year" at Waterford ' 08. All York State Marine Highway. Both have been spied in

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K-Sea's mighty Maryland, which scored high on all counts other- wise, seems to be bested in the push-off by the company's Ross Sea, the overall winner at the N.Y. Tug Races. (Photo: Don Sutherland)

places like Norfolk, or way up toward the Lakes, or all over New York Harbor and the Kills -- they too are ven- erable, but more to the point, tools in the hands of their owners. Besides that, they're picturesque. Quite possibly Ms. Mantello has plenty to work with, where cultural and tourist attractions are concerned. Downstate at the Races, the speeches were more hard- headed. The Coast Guard's Commander David M. Flaherty gave his impression of tugboat behavior, based on videotapes of a recent incident — a ship coming down Newark Bay and, in the Commander's words, T-boning a dredge in pilot error. The tapes revealed, the Commander recounted, that the tugs foresaw the impending incident, and preemptively moved to moderate the results. Those same tugs carry monitors that can fight sizeable fires, as proved many times over recent history. That's something to think about as evermore residences crowd the shore. It's no slur to say that the city's own fireboats can use the help. Their bravery and effectiveness are legend of their own, but fireboats between missions return to their stations. Tugs on their missions just happen to be passing, sometimes, when things go wrong ashore. The month of September holds a special reminder in New York, of the role mariners have played in the very worst times. From the New York City Economic Development Corp., a talk was given by Venetia Lannon on essential connections between the city's well-being and that of its mariners. EDC has already issued reports warning of shortages ahead for a growing, essential industry -- not enough docks and drydocks, for instance. The two grand events of National New York State Tugboat Week symbolized the importance of well-round- ed support for maritime operations. For example, at least five boats bound for the events had problems of various degrees -- one blew an engine and couldn't come at all, another blew a shaft bearing on the way, one more lost power temporarily during the race, another Waterford- bound had problems with steering control, and one hit sand in what should have been the channel. Tugs are industrial-strength, but they're complex machines that do tough things, frequently improvisional. Sometimes they need fixing. They always need clear channels, a budgetary embarrassment even before the pretty bad times struck. So nobody expected twenty-seven boats to show-up, twenty-five of which completed the race. The command decision was to split the race into two heats, because one 40 MN October 2008 MN#10 (33-48).qxd 10/1/2008 3:35 PM Page 41

Waterford's pride, the 1920s- vintage Tug Buffalo in town colors, under her own power at last. Repairs were exten- sive, water having leaked into her crankcase, according to engineer Nobby Peers. She led the parade alongside Canal Corp's mascot, the 1901 Urger. (Photo: Don Sutherland)

race twenty-five boats wide, while possibly feasible, Oxman and Dorothy Elizabeth) came-in within thirteen should probably be thought-through first. seconds of the first-placer (the Dorothy, as usual, was first- A question we can't answer has to do with fuel sur- place in her class). With timing so compact, someone is charges. Would boats on the east side of the race, in New bound to see something different than the judges did. York waters, have to pay that, where those on the west "We may start having a camera take a finish line shot next side, in New Jersey waters, would not? For zero net gain year," says Capt. John Doswell, executive director of the to the public at large (the surcharge apparently is Working Harbor Committee. While headlines and brag- deductible from Federal taxes), the boat owners spend ging rights are important enough, Capt. Doswell notes time and money keeping and preparing and finally pre- there are things more important. When one of the tugs in senting their records. This keeps the price of delivered the first heat had a temporary breakdown, "Sea Lion, goods down? which was ready to race in the second heat, instead towed the stalled vessel back to pier 84," Capt. Doswell tells us. Photo Finish? Well … This put Sea Lion out of the competition, but "We should The Army Corps' Hayward, flying the event's biggest have had a prize for that act of seamanship and profes- flag, appeared unexpectedly but was quickly impressed sionalism." Our tugs of two cities tell many tales, includ- into service as the finish line. The race judges judged from ing indifference to adversity. They tell of ways to improve Launch 5, an ex-NYPD boat, using eyeballs more than conditions, by reducing costs and environmental impact. instrumentation. And things were close — the first three They portray ways to make cities safer, as auxiliary forces boats (K-Sea's Ross Sea and Maryland, and Rosemary of early responders. They tell of numerous ways to pro- McAllister) crossing the line within a six-second span. The mote the best of times, one of these days, given half a fourth and fifth to finish (Vinik Mariine's Charles chance.

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The turnout was so large — 28 vessels showed-up altogether — that the race had to be staged in two heats. As seen from the Ross Sea, part of the first set ambles up to the start line. (Photo: Don Sutherland)

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departments

Neil Armstrong Billy Jahn

Armstrong Named VP Operations, Congestion Mitigation; the Office of effective immediately. In this posi- ESAB Canada Marine Highway and Passenger tion, Haigler will provide leadership Neil Armstrong has been promoted Services; the Office of Deepwater and direction for Albemarle's dealer to the role of Vice President, Ports and Offshore Activities; the network and marketing efforts, both Operations, for ESAB Canada. In his Office of Shipper and Carrier domestic and abroad. new role, Neil will oversee relations Outreach; and the agency's nation- for key distributor accounts, market- wide Gateway offices in New York, USMI Lends Helping Hand To Coast Guard After Gustav ing, service, supply chain and general Miami, St. Louis, Houston, San United States Marine, Inc (USMI), operations. Francisco, Chicago, New Orleans, a small business that designs and Seattle, Los Angeles, and Norfolk, Va. Northrop Grumman Appoints New builds fast patrol and other special Lesnick joined the Maritime CFO to AMSEC Subsidiary operations craft for the U.S. military, Administration in 1995 as a special Billy Jahn, business manager and is leasing the U.S. Coast Guard facil- assistant to the maritime administra- chief financial officer for AMSEC ity space in the aftermath of extensive tor and, prior to this promotion, LLC., a subsidiary of Northrop flooding from Hurricane Gustav of served as director of the agency's Grumman within its Shipbuilding the Coast Guard Station at Gulfport, Office of Deepwater Ports and sector and a full-service provider of MS. USMI has provided office and Offshore Activities. As such, he was engineering, logistics and technical parking space, dock usage, fuel and responsible for overseeing the author- support services. Jahn joined AMSEC electricity, and property for location ization, construction, and operation in 2002. He served as controller and of temporary housing for up to 70 of offshore liquefied natural gas has worked in positions of increasing Coast Guard personnel now working (LNG) and oil receiving facilities in responsibility in financial planning, at USMI's facilities. capital budgeting, management of the United States. He also provided financial and accounting, and gov- oversight to the Direct Surplus MMA Offers Free Online Course ernmental accounting functions. Federal Property Port Massachusetts Maritime Academy Conveyance/Land Redevelopment was recently awarded a grant from the MarAd Appoints Lesnick Program, a conveyance program that National Fish and Wildlife The Maritime Administration has transfers surplus federal real property Foundation's "Seafarer's appointed H. Keith Lesnick its new to state and local public entities for Environmental Education Fund" to Associate Administrator for port-expansion purposes. develop and launch the Academy's Intermodal Systems Development. first online courses. The grant allows In his new role as associate adminis- Haigler Joins Albemarle the program to initially be offered trator, Lesnick will provide leadership Albemarle Boats announced the free to students, representing a sav- and oversight to the Office of promotion of Ted Haigler to the posi- ings of over $3000 for each student Infrastructure Development and tion of director - sales and marketing, when compared with a traditional

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15-credit course cost. The Academy's Department of Marine Safety and Environmental Protection will overee this online certificate program, called Pollution Compliance for Seafarers. The Massachusetts Department of Higher Education approved the offer- ing and the program was also reviewed by the U.S. Coast Guard. Students can begin enrolling now, with all tuition paid by the grant for the first two cohorts. To earn the cer- tificate, students will complete a sequence of five, three-credit courses designed to raise environmental awareness within the maritime indus- try, both at sea and ashore: • Ecological Consequences of Marine • Pollution • Marine Pollution and Vessel • Engineering Systems • Marine Pollution and Deck Operations • Legal Issues in Marine Pollution • Public Relations, Pollution, and the Maritime Industry The goal of the program is to pro- mote environmental awareness in the ASBESTOS maritime industry, increasing seafar- ers' awareness of the destructive con- If you or a family member has been diagnosed with sequences of ship-based pollution. It MESOTHELIOMA and has been exposed to asbestos, will also provide them with effective means for detecting, preventing, and you may be entitled to receive money damages from reporting pollution sources. In the manufacturer. assuming this proactive stance toward For information, call a critical environmental issue, Massachusetts Maritime Academy is 1-888-ForTheInjured helping to change attitudes toward regulation compliance and reduce (888) 367-8434 ship-based pollution throughout the or visit world's oceans. ForTheInjured.com Massachusetts Maritime Academy is collaborating with the Seamen's Church Institute (SCI) of New York to reach a broader sector of the mar- itime industry. The Academy will assist SCI with the development of informational brochures for mariners on the subject of marine pollution 474460 Offices: Palm Beach Gardens, Stuart & Miramar

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people & companies

and compliance. These brochures will type approved by DNV. Chart sub- speed of 35 M/M, double braking be distributed by SCI's port chaplains scribers can download the software system with capacity of 120Tonns during brief presentations to foreign application from and the capacity to spool 200M of seafarers visiting U.S. ports. www.c-map.no 75mm soft line. Email to [email protected] JonRie Receives Multi Tug Order DRS Wins $22.3m Navy Contract Jeppesen Improves JonRie InterTech received a multi DRS Technologies, Inc. announced Chart Updating Service tug order for LNG Winches from that it received a $22.3m contract Jeppesen Marine has launched a Asenav Ship Building in Valdivia, from the U.S. Naval Sea Systems new updating service that can trans- Chile. The Asenav designed tugs are Command to design, produce and mit "Notices to Mariners", new under construction for Ultra Tug of deliver Repair Station Console sys- charts and new chart editions to ships Santiago, Chile. The ASDs will sup- tems for the DDG Modernization at sea, all via a high-speed Internet port the LNG terminal at Quintero, Backfit program. The development connection. The service, called C- Chile and boast a 64tonn Bollard and installation of these systems will MAP Updating Service Online+, Rating, are 32.5 M in length and automate and integrate shipboard applies to Jeppesen Marine's C-MAP have a beam of 11 M and feature a damage control communications Professional+ and C-MAP ENC full Fi-Fi system and forward which increase the survivability of chart database subscribers. thrusters for station keeping. battle-damaged ships. The key to this new updating serv- The tugs also feature JonRie Series ice is Jeppesen's unique distribution 250 LNG Escort Winches on their Hydroid Sale Completed format, called C-MAP CM-93/3 and bows with a line pull of 75 Tons, line Axia Capital Partners, LP,

TUTOR-SALIBA CORPORATION Contact: James Foster 818-362-8391

EM1068 Official # 534891 - 1021 net/Gross

Tons - Built 1928 in Oakland CA. LOA 258.5'

- Beam 38' - Depth 12'. Flat Deck Barge, riv-

eted steel construction, raked bow and stern.

6" asphalt wear deck with 3' steel fenced

sides running port and starboard. Barge is

also outfitted with 2 Clyde two drum waterfall

winches. $300,000.00.

EM1163 - 125' x 34' x 9' Flat Deck Barge s/n

1065170 c/w 12 hatches, 4 bitts, 6 kevels, 25

degree raked bow/stern, stern w/skaggs.

$125,000.00.

46 MN October 2008 MN#10 (33-48).qxd 10/1/2008 3:40 PM Page 47

LARGESTLARGEST RENTALRENTAL FLEETFLEET OFOF SPUD,SPUD, announced that it has completed the DECKDECK ANDAND MATERIALMATERIAL BARGESBARGES sale of the assets and business of Hydroid, LLC (Hydroid) to Kongsberg Maritime, AS, a division of Kongsberg Gruppen, for approxi- mately $80m and an earn-out based on Hydroid's 2008 and 2009 operat- ing performance. Hydroid is a manufacturer and sup- plier of Autonomous Underwater Vehicles (AUV) for military and com- BARGES 60’ TO 400’ LENGTH mercial markets worldwide. The • 16 Fleeting locations inland rivers, company was established in 2001 to Gulf, East and West Coast • Inland and Ocean towing services manufacture, support and further develop the REMUS Autonomous Vehicle Technology, originally devel- oped and licensed through an exclu- sive license with the Woods Hole New Orleans Norfolk Houston (504) 780-8100 (757) 545-0100 (281) 452-5887 Oceanographic Institution. Axia Fax (504) 780-8200 Fax (757) 545-8004 Fax (281) 452-9682 invested in Hydroid in December www.mcdonoughmarine.com 2005 when Hydroid's revenues www.mcdonoughmarine.com approximated $7.5m. Hydroid's 2007 sales approximated $20m and is QNix® Keyless COATING THICKNESS GAUGE projecting strong revenue growth in LED Marine Lighting RUST NEVER SLEEPS the coming years. Hydroid is head- RUST NEVER SLEEPS quartered in Pocasset, MA.

NAVSEA Awards Contracts General Dynamics Information Technology, has been awarded three Seaport-e task orders by the Naval Sea Systems Command (NAVSEA) Naval Surface Warfare Center, Carderock Division (NSWCCD), in Philadelphia. The contracts have a total potential value of $26.7 million if all options are exercised. R Navigation Lights Under the contracts, General R Piers & Bulkheads Dynamics will provide information technology (IT) engineering and pro- R Bridges fessional services for the Smart R Outdoor Structures Carrier program and additional R Custom Available Wireless Dual Probe (no disturbing cables for more Safety) NSWCCD initiatives. NAVSEA TM Fe 200 Mil / NFe 80 mil -USB Interface for online measurement & established the Smart Carrier pro- data transfer to PC- 3 year Warranty O G M Free Certificate of Calibration gram to harness new technologies and AUTOMATION USA INC Orca Green Marine Technology processes to reduce sailor workload 1685 Baltimore Pike Gettysburg, PA 17325 and operational costs, and improve ph (512) 266-8226 * fax (512) 233-0595 800-678-4370 • Fax: 717-334-0238 www.automation-usa.com quality of life on Navy aircraft carri- www.orcagreen.com email: [email protected]

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people & companies

ers. General Dynamics is working opportunity to reduce emissions from 5.17:1 ratios for the 660 hp per side with NSWCCD to support Smart vessels. Critics say that cold ironing engines. Once the Tarus is back in Carrier modernization operations simply shifts emissions from one service it is planned to drydock the that include testing and installation source to another, and creates as tug to tweak the props to maximize of new machinery control monitoring many problems as it may solve. performance with the new engines. systems (MCMS) including Distributed Data and Control Westar Chooses Cummins Conrad Reports Impact Networks (DDCN) and Navigation With a diverse fleet of 18 tugs, eight Conrad Industries, Inc. announced and Ship Control Systems (NCDS). water taxis and 20 barges; San the impacts of Hurricanes Gustav and General Dynamics is also providing Francisco's Westar Marine Services is Ike. Johnny Conrad, President and additional NSWCCD operations one of San Francisco Bay's premier CEO said "Unfortunately, Hurricane with engineering, system analysis and construction support companies. Its Ike did not spare our Orange employ- program support for navigation and tug fleet will be 50% Cummins-pow- ees from loss and damage. Our integrated bridge control systems that ered when their boat Taurus goes Orange facility has sustained minor include antenna, sail, radar, back in service. While the fleet wind and water damage to our build- microwave and electrical systems. includes a range of Cummins engines ings that can be repaired. Our equip- from 14 to 38 liter models, the cur- ment and jobs in progress were not Environmental Study Launched rent repower will install a pair of Tier damaged. We do not have an estimate The U.S. Maritime Administration 2 compliant Cummins QSK19M of the costs to clean up and repair our is putting up $150,000 for a collabo- engines for a total of 1320 hp at 1800 facility but do not anticipate them to rative partnership with the Port of rpm. The Taurus is 75 x 24-ft. model be significant. Many of our employ- New Bedford to see if having ships bow tug that is kept busy on a variety ees have been temporarily displaced use shore-generated electricity while of jobs around San Francisco Bay and because Orange and the surrounding in port cuts down on air pollution. offshore the west coast. Not only will areas sustained major water damage Air emissions from ships are an the repower extend the service life of and power outages. " important environmental concern, the vessel it will significantly reduce especially in port cities. The use of emissions. Westar's Rich Smith MMS Reports on Ike Damage Assessments shore power, also called "cold iron- reports that they were able to keep the Minerals Management Service ing," has been offered as a possible boat's Twin Disc MG527 gears with (MMS) reports that as of September 15, 2008, 28 of the 3,800 offshore oil Clean Seal Celebrates 30 and gas production platforms in the Clean Seal celebrated its 30th year on October 1, 2008. Started in 1978 by Gulf of Mexico have been destroyed Juanita Moore, the company has seen continuous growth in the marketing by Hurricane Ike. Several other plat- of extruded rubber sealant products. "The growth has required us to move forms have been reported as signifi- into larger facilities three times since 1978, according to Vice President, cantly damaged; information on General Manager Bill Dawson. Dawson has been with the company since its those facilities is being compiled and organization. Clean Seal received the ISO9000:2001 in early 2002. will be released in the near term. In the Fall of 2000, the family owned business moved into a large 72,000 Initial estimates are that the square feet facility located at 20900 West Ireland Road in South Bend. The destroyed production platforms pro- Moore family continues to operate the business. duced a total of 11,000 barrels of oil Clean Seal, Inc. is a national manufacturer and distributor of weather strip- per day and 82 million cubic feet of ping materials to the transportation, appliance, boating and recreational gas per day. (See table below.) The vehicle industries. Clean Seal custom manufacturers a variety of shapes and damage has been reported through sizes of sealants for their customers. The company stocks EPDM, Neoprene, over flights by MMS, the oil and gas Silicone, Nitrile and Dual Durometer extrusions for Just in Time Delivery. industry and the U.S. Coast Guard. www.cleanseal.com

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by the numbers

Recent GOM Drilling Permits Offshore Rig Day Rates These are the most recent Gulf of Mexico drilling plans filed Floating Rigs with the MMS. Rig Type Rigs Working Total Rig Fleet Average Day Rate Drillship < 4000' WD 8 rigs 11 rigs $260,300.00 Date/ Water Drillship 4000'+ WD 26 rigs 30 rigs $345,976.92 Operator Block Depth Semisub < 1500' WD 15 rigs 23 rigs $276,245.45 Semisub 1500'+ WD 75 rigs 86 rigs $294,388.57 8/28/2008 Semisub 4000'+ WD 51 rigs 64 rigs $325,941.82 Royal Production Company, Inc. BA 502 111 ft

8/22/2008 Jackup Rigs Shell Offshore Inc. MC 765 3,544 ft Rig Type Rigs Working Total Rig Fleet Average Day Rate Jackup IC < 250' WD 38 rigs 48 rigs $114,921.05 8/21/2008 Jackup IC 250' WD 51 rigs 63 rigs $125,760.00 Energy Resource Technology GOM, Inc. SS 224 147 ft Jackup IC 300' WD 113 rigs 121 rigs $154,705.81 Jackup IC 300'+ WD 96 rigs 104 rigs $183,373.88 8/21/2008 Jackup IS < 250' WD 4 rigs 7 rigs $79,000.00 LLOG Exploration Offshore, Inc. MP 107 63 ft Jackup IS 250' WD 9 rigs 11 rigs $98,500.00 Jackup IS 300' WD 5 rigs 5 rigs $87,666.67 8/20/2008 Jackup IS 300'+ WD 3 rigs 3 rigs $131,666.67 Bayou Bend Offshore, Ltd. WC 244 69 ft Jackup MC < 200' WD 7 rigs 16 rigs $62,333.33 Jackup MC 200'+ WD 26 rigs 29 rigs $85,569.27 8/20/2008 Jackup MS < 200' WD 2 rigs 3 rigs -- Apache Corporation VR 141 80 ft Jackup MS 200'+ WD 17 rigs 22 rigs $73,274.29 8/20/2008 Apache Corporation GA 283 65 ft Other Offshore Rigs Rig Type Rigs Working Total Rig Fleet Average Day Rate 8/19/2008 Drill Barge < 150' WD 21 rigs 38 rigs $30,000.00 El Paso E&P Company, L.P. WC 498 159 ft Drill Barge 150'+ WD 8 rigs 10 rigs $77,000.00 Inland Barge 54 rigs 89 rigs $43,569.23 8/19/2008 Platform Rig 169 rigs 252 rigs $38,359.89 W & T Offshore, Inc. MP 283 305 ft Submersible 4 rigs 7 rigs $65,250.00 Tender 25 rigs 28 rigs $99,447.83 8/15/2008 ConocoPhillips Company GB 783 4,674 ft Source: Rigzone

Most Recent GOM Drilling Permits Source: Rigzone These are the most recent Gulf of Mexico drilling plans filed with the MMS.

Date/ Plan Water Date/ Plan Water Operator Type Block Depth Operator Type Block Depth

Offshore Rig Utilization by Type 8/28/2008 8/14/2008 Helis Oil & Gas Company, L.L.C. EP EW 1010 2,080 ft Tana Exploration Company LLCEP SS 276 181 ft Drill Barge 81.8% (9/11) 8/27/2008 8/14/2008 Drillship 84.2% (32/38) Tarpon Operating & Development, L.L.C. DOCD 171 ft Tengasco, Inc. DOCD CA 27 7 ft

Jackup 90.0% (341/379) 8/26/2008 8/14/2008 BP Exploration & Production Inc. DOCD MC 129 5,711 ft Woodside Energy (USA) Inc. EP MC 347 7,213 ft Semisub 83.1% (133/160) 8/21/2008 8/12/2008 Submersible 66.7% (4/6) Eni US Operating Co. Inc. DOCD MP 281 315 ft GoMex Energy Offshore, Ltd.DOCD VR 282 187 ft

Tender 96.2% (25/26) 8/19/2008 Shell Offshore Inc. EP VK 783 1,690 ft

Source: Rigzone 8/18/2008 Petsec Energy Inc. EP VK 740 1,211 ft Source: Rigzone

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technology bits

Drum-Mates Flir Systems Drum-Mates released its QuickView Graphic Line Card, to help more easily determine equip- ment availability. Marine companies and organizations looking to upgrade or improve equipment capabilities can find a wide array of items for pro- cessing liquids and powders in drums or totes, whether heating, mixing, pumping or pouring. [email protected].

Flir Systems planned an October 1 release of its next-generation Voyager gyro-stabilized multi-sensor thermal imaging system, the Voyager II. Boasting features such as Radar Slaving and Internet Remote Control, the Voyager II is designed to expand the utility of the system and address customer requests for added functionality. The Voyager II's Radar Slaving feature allows operators to automatically direct the imager to a chosen radar return, eliminating the need for manual camera control leav- ing them free to concentrate on vessel operation. At the heart of the Voyager II multi-camera system are two infrared cameras: a wide-angle camera that provides a continuous, broad overview of a vessel's surroundings, and a telephoto camera that allows boaters to zoom in on objects at long ranges. It also has a color video cam- era that is actually two cameras in one: a daylight camera that provides images in bright sunlight, and a low- light camera that automatically adjusts to allow boaters to see in the half-light of dusk or dawn. www.flir.com

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JonRie InterTech FPM. The winch also features an JonRie received a multi tug order independent drive level wind so the for LNG Winches from Asenav Ship speed can be adjusted to hold the Building in Valdivia, Chile. The cable to the flange for an even spool. Asenav designed tugs are under con- Also featured is an integral H-Bitt, struction for Ultra Tug of Santiago, HPU and Controls. Chile. The ASDs will support the www.marinewinch.com LNG terminal at Quintero, Chile and boast a 64 ton bollard rating, are New Winch Line 32.5 m in length and have a beam of J.K. Fabrication has a complete line A new line of aluminum direct drive 11 m and feature a full FiFi system of single drum hydraulic anchor series winch is now being offered. and forward thrusters for station winches, constructed in galvanized The design is not unproven, as two keeping. steel, stainless steel and aluminum. major marine manufacturers with The tugs also feature JonRie Series 250 LNG Escort Winches on their 10HP Electrically driven bows with a line pull of 75 tons, line Hydraulic Variable-volume speed of 35 mm, double braking sys- tem with capacity of 120 tons and the capacity to spool 200 m of 75 mm Power soft line. Unit 0-13 GPM 3,000 PSI

Limited Offer! $ Buy direct from Only 1850 Mfr! SAVE 50% Specify Stock No. HVPU1013-BL The winch system is powered by a Automatically delivers ONLY the 110 kW HPU and its controls fea- precise amount of oil needed to efficiently operate the hydraulic tures a full render full recover system, circuit that powers high-torque marine equipment! Pressure compensation pump automatically varies GPM from the hand slip brake system, independent drive wheel setting so maximum PSI is always maintained at minimal level wind with pilot house control, flow by increasing and decreasing GPM. Puts an end to overloads on deck controls, joystick/foot winch and energy waste. Ideal for low pressure fast approach and speed and direction controls and a return AND high pressure slow feed applications. Unit has real time tension telemetry hawser an extra-ordinary aircraft-style hydraulic pump that’s directly cou- pled to a 10 HP, 1800RPM electric motor rated 230/460 V, 60 Hz, 3 data logging system. ph. The 30 gal. JIC type reservoir comes with suction filter, oil level JonRie InterTech also announced it gauge, filler breather, 3/4" NPT ports and clean-out cover. Compact has installed its 500 Hydraulic size 36"x24"x32"H. Approx 400 lbs. FOB Chicago Towing Winch and Series 416 FULL purchase price BACK less trans- 1-YEAR GUARANTEE portation cost if unsuitable in ANY way! Capstan on the New ASD Harry Brautigam for Electrica SA of Order Now! Call 1-312-829-1365 Fax 1-312-829-9679 or use our secured website Honduras. www.hydraulicbargains.com The Winch boasts a line pull of 311 N. MORGAN ST. Dept 6940 ROBERTS ELECTRIC CO. CHICAGO IL 60607-1381 82,000 lbs. and a line speed of 30

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technology bits

combined years of proven design and The neck grip shields the operator's performance for 135 years are no hand or forearm from the heat of the longer producing these winches. This neck, and the high temperature sili- new line incorporates the best design cone rubber provides better control and features of two proven designs. and increased accuracy compared to J.K. Fabrication will be manufactur- the metallic neck tube. ing four new models. This new line of Bernard's new Neck Coupler allows winches will be offered in 12, 14, 16 customers to join two or more Q- and 18 in. Gun or S-Gun necks consecutively, www.jkfabrication.com avoiding the costs and production delays of ordering a custom neck for Bernard applications with difficult-to-access To improve operator comfort and weld joints. access to difficult-to-reach joints, [email protected] Bernard Welding Equipment has introduced a new MIG gun Neck Hawe Hydraulics Grip and Neck Coupler. Hawe Hydraulics, a supplier of con- to two gallons — in using less fluid, Constructed of a high temperature trols to the mobile and industrial this environmentally-friendly solu- silicone rubber tube that slides onto markets, offers its newly redesigned tion creates less waste and requires all Bernard Q-Gun and S-Gun necks, KA compact power unit for intermit- less expense. the new Neck Grip reduces fatigue tent service. Ideal for a wide range of Designed to meet a wide range of and increases operator control for machine tool, high pressure and needs, the modular KA is available welders who prefer to rest the neck of clamping applications, the KA serves with single and 3-phase motors, in their Q-Gun or S-Gun on their hand as a compact power supply that deliv- single or dual stage pump versions, or forearm while welding. ers operating pressures up to 10,000 and can work with an array of valves psi (700 bar). (directly mountable) and accessories. Hawe's KA power unit combines a Vertical and horizontal installation is pump, electric motor and tank in one possible, and turnkey solutions and unit, offering both minimal use of customized versions are available by space and easy mobility. request. The KA has reservoir capacities up [email protected]

OceanView Night Vision Camera VEI's OceanView Apollo Night Vision Camera is featured on the new flagship Viking 82 Convertible. The Apollo features dual camera configuration - featuring simultaneously viewable independent Infra- Red Thermal & Ultra Low-Lux Imaging Sensors. The Thermal Imager allows for safe operation in total darkness. The Low Light .00015 Lux, camera amplifies even barely discernable light to render a crisp detailed picture in adverse navigational conditions. It features saltwater and corrosion resistant construction with rugged triple-primed marine grade aluminum housing. Email: [email protected]

52 MN October 2008

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ﺷﻤﺎرﻩ :١۵

Email: [email protected] ٨۴٩٣٢١٣٨