MARINE NEWS (OCT 2012)

MarineNews O C T O B E R 2 0 1 0

W W W . M A R I N E L I N K . C O M

InsightsJim StarkGICA proactive to promoteIntracoastal waterway

InlandShow the $In Obama’s Plan, what’s init for the Rivers & Ports

2010

Yearbook

T H E I N F O R M A T I O N A U T H O R I T Y F O R T H E W O R K B O A T • O F F S H O R E • I N L A N D • C O A S T A L M A R I N E M A R K E T S

CONTENTS MarineNews October 2010 • Volume 21 Number 10

TechFile

8 InLine Thruster on JackUp VesselInnovative wind power installation

Blogs

10 Mariner Missions Front BurnerBy Joseph Keefe MERPAC fate still unknown

Insights

12 Jim Stark, GICABy Raina ClarkAdvancing Gulf Intracoastal waterway issues

Boat of the Month

16 M/V Stephenson IINew USACE Push Boat

Yearbook

26 Tug, Tow & BargeBy Raina Clark • Cautious optimism

29 OffshoreBy Quest Offshore • Momentum gaining

32 Passenger VesselsBy Jonathan Atkin • Opportunities opening

37 BoatbuildingBy Raina Clark • Mixed bag

Raina on the Rivers

42 Old Salts & New Cooks By Raina ClarkAssessing the impact of a failing inland infrastructure aboard the Thomas E. Erickson

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POSTMASTER Time Value Expedite

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PUBLISHERJohn C. O’Malley • [email protected]

Associate Publisher & EditorGreg Trauthwein• [email protected]

Managing EditorRaina Clark • [email protected]

Contributing WritersLawrence R. DeMarcay, III • Frederick B. Goldsmith • Matt Gresham •

Randy O’Neill • Jim Shirley • Ken Wells

PRODUCTIONProduction Manager Irina Tabakina • [email protected] Assistant Amanda O’Malley • [email protected]

SALESVice President, Sales & Marketing

Rob Howard • [email protected]

Sales Administration & Office Manager Rhoda Morgan • [email protected] & Event Coordinator Michelle Howard • [email protected] Sales Manager Dale Barnett • [email protected]

tel: 212-477-6700

Advertising Sales Managers

National Sales ManagerJack Bond • [email protected]

Tel: 561-732-1659 Fax: 561-732-8063

Lucia Annunziata • [email protected] Terry Breese • [email protected]: 212-477-6700 Fax: 212-254-6271 Tel: 561-732-1185 Fax: 561-732-8414

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Managing Director, Intl. SalesTony Stein • [email protected]

Tel/Fax: +44-1506-822240

Uwe Riemeyer • [email protected]: +49 202 27169 0 Fax: +49 202 27169 20

CORPORATE STAFFManager, Accounting Services Rhoda Morgan • [email protected]

Manager, Public Relations Mark O’Malley • [email protected], Marketing Jocelyn Redfern • [email protected]

Manager, Info Tech Services Vladimir Bibik • [email protected]

CIRCULATIONCirculation Manager Kathleen Hickey • [email protected]

MarineNews On the Cover

Which Direction?Ask 10 people theirviews on market condi-tions and you will get 20opinions. Coverage ofthe major workboat andoffshore markets starts on page 26.

Pictured is the OysterCreek, recently launched

by ChesapeakeShipbuilding for Vane

Brothers.

Legal Perspectives

18 The Moratorium is UnlawfulBy Larry DeMarcay

Salvage

22 Limitation of Shipowner LiabilityBy Jim Shirley

Inland Report

24 Where are the Rivers & Ports?By Cornel Martin

50 People & Company News54 Directory55 By the Numbers56 Products59 Classified64 Ad Index

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In October I finish a series of articles eminating from my eight day trip on inland towboats

on the Mississippi and Illinois Rivers. I want to give special thanks to all those who made

the trip possible, including key people at AEP River Operations, Marquette

Transportation and the Waterways Council, Inc. I am especially grateful to the crew of the

Theresa Wood for teaching me so much about life on the river and always being ready to

explain the workings of the boat and its tow. In the pages of this edition of MarineNews I

describe being held up on the Mississippi River by failing infrastructure and compare the sto-

ries of an old-time towboater with those of a mariners who just stepped aboard. Look for the

series, “A Day in the Life of a Towboater,” on our company’s online channels, such as Marinelink.com and

Maritimeprofessional.com, as well as in the pages of this and the last two editions of MarineNews.

October is also our 2010 Annual Yearbook edition, highlighting four main areas: tugs, towboats and barges; offshore;

passenger vessels; and vessel construction. All of these markets report a mixed bag of conditions. While the tug, tow

and barge markets tend to be relatively static, the passenger vessel market, especially in the New York / New Jersey area,

have some very encouraging trends to talk about as far as public interest in charters and ferry transportation. Builders

like All American Marine, who construct quite a few passenger vessels, continue to report strong interest in “green” pas-

senger vessel construction projects. While vessel construction has been in a down swing for some time, diversified com-

panies like Donjon Marine Co. demonstrated their optimism in that market by opening a new boatyard on the Great

Lakes. The offshore industry, which has been hit very hard, continues in limbo while it waits for a new legal framework

to drop from above. But industry analyst Quest Offshore Resources, Inc. described the long-term health for the off-

shore markets to be good, despite the current gloom.

SUBSCRIBESubscribe to the print or electronic edition of MarineNews at www.marinelink.com/renewsubscr/Renew04/subscribe.html or e-mail Kathleen Hickey at [email protected]

DAILY NEWS via E-MAILTwice every business day we provide breaking news, tailored to your specification, delivered FREE directly to your e-mail. To subscribe visit http://maritimetoday.com/login.aspx

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ADVERTISEMN offers a number of print and electronic advertising packages. To see our editorial calendar and advertising rates, visit www.marinelink.com/AdvRates/Rates.asp

Raina Clark, Managing Editor, [email protected]

Want to hear more from behind the editor’s desk? Visit the MarineNews Notes blog at www.MaritimeProfessional.com.

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EDITOR’S NOTE rainaclark@ marinelink.com

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TECH FILE

A 430-ft long, 128-ft wide jackup vessel for the erectionof wind power stations is being fitted with the currentlymost powerful Inline Thruster from Voith TurboAdvanced Propeller Technologies. The Inline Thruster israted at 1,500 kW and has an inner propeller diameter of2,300 millimeters.

The Voith Inline Thruster/Voith Inline Propulsor(VIT/VIP) series starts with type 240-10, which means:an inner propeller diameter of 240 millimeters at an out-put of 10 kW. Previously, the VIT/VIP 850-300 was themost powerful unit in this class. But the principle of a pro-peller drive with a permanently excited electric motorhoused in the hollow shaft and no maintenance require-

ments owing to sea water-lubricated bearings has alsoproven itself in larger vessels.

Currently under construction at the Chinese shipbuilderCosco Shipyard, the jackup vessel of the Danish shipown-er A2Sea is the best proof of this. For this reason, Voithwill also build significantly more powerful Voith InlineThrusters in the future.

In the jackup vessel, whose design originates from GustoMSC, the VIT supports the three Voith SchneiderPropellers (VSP) of the size 36R6ECR/285-2 as an addi-tional drive system. Voith will deliver the VIT by August2011. The launch of the vessel is scheduled for early 2012.

www.voithturbo.com/marine

For Jack-Up Vessel

High-PerformanceInline Thruster

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Posted on MaritimeProfessional.com

By federal law, the Naval Militia consists of theNaval Militia of the various states. Propertyof the Department of the Navy, includingvessels and armament, may be issued tothe various state Naval Militia if at least95% of the members of the unit receiv-ing the property are members of theU.S. Navy Reserve or the U.S. MarineCorps Reserve and the organization,administration, and training of the NavalMilitia conform to U.S. Navy standards.

The Naval Militia traces its history back to theRevolutionary War, when various colonies formed theirown Navies. The Commonwealth of Massachusetts reacti-vated its Naval Militia during the War of 1812. When theSpanish-American War started in 1898, fifteen Statesestablished Naval Militia. These were used to keep orderon the waterfront and to defend coastal areas. In Cubanwaters, the Naval Militia performed various scouting andblockading missions in support of the U.S. Navy. During

World War I, though, the U.S. Navy uti-lized the Naval Militia more as a source of

trained manpower than as independentunits to be mobilized. Naval Militia person-

nel were disbursed throughout the Fleet, losingtheir unique identity. Currently, seven states have

active Naval Militia: Alaska, New Jersey, New York, Ohio,South Carolina, Texas, and Virginia. Five states have NavalMilitia that are inactive: California, Connecticut, Georgia,Illinois, and Maryland. Personnel in the various NavalMilitia may be enlisted or commissioned into the U.S.Navy, Marine Corps, or Coast Guard at the rate or rankfor which they are qualified.

Posted on MaritimeProfessional.com by Dennis Bryant

The global maritime industry has a social networking, news and information portal to call its own:MaritimeProfessional.com. Log on and network with thousands of colleagues and potential business partners fromaround the globe, and keep up to date on critical maritime matters via our exclusive, insightful reports — includingsamples from last month found on the ensuing pages — from a global network of bloggers and industry insiders.

Naval Militia

Maritime Version of National Guard New York Naval Militia member Bharath Bhola, an

Aviation Boatswain Mate, pilots Patrol Boat 230during a joint operation with the New York

State Department of EnvironmentalConservation in the Hudson River.

(Photo by Master Sgt. Corine Lombardo)

Reducing Engine Noise At this year's CIMAC conference Wärtsilä presented a paper on noise reduction of medium speed engines. Changes

made to the crankcase covers and camshaft covers brought the emitted sound level down by approximately 6dB(A).A multi-layer sandwich solution applied to the turbocharger casing and charge air cooler reduced noise levels 5dB(A).Engine noise was reduced by placing an additional covering on top of the existing cylinder head valve covers. It is pro-posed that these optional parts will be available for current and future Wärtsilä medium speed engines providing anoise reduction of approximately 5dB(A). At this year's CIMAC conference Wärtsilä presented a paper following afive year research program on noise reduction of medium speed engines. The test engine used was a seven cylinder 32series engine of 3.5MW at 750 rpm with 320 mm bore and stroke of 400 mm. Changes made to the crankcase cov-ers and camshaft covers included replacing the one piece cast aluminum covers by a two piece cast aluminum framewith bonded and bolted 2mm steel cover plate, giving greater rigidity and reducing noise radiation that brought theemitted sound level down by approximately 6dB(A). A multi-layer sandwich solution of fireproof fabric, mineralwool, aluminum plate and finally more fireproof fabric applied to the turbocharger casing and charge air coolerreduced emitted noise levels from these parts by 5dB(A). Tests showed that 27% of engine noise emanates from thetop of the engine. Noise level from this area was reduced by placing an additional covering comprising a 2 mm vibro-acoustically treated steel plate with a 1mm corrugated micro-perforated plate on top of the existing cylinder headvalve covers. Posted on MaritimeProfessional.com by Keith Henderson on 9/19/2010

Coast Guard’s MarinerMissions on the FrontBurner Again

DHS OIG Reports provide a shallowvictory for USCG as another medicalcompetency hearing kicks off.MERPAC’s fate is still unknown asSOCP steps up to fill the void.American mariners might ask: Is thisprogress?

The final quarter of 2010 promises tobe a busy one for the U.S. CoastGuard’s National Maritime Center(NMC), its policy group inWashington and their overarching mis-sion of handling the documentationand credentialing of more than200,000 domestic mariners. Just oneday short of commencing autumn, theink is barely dry on two DHS reportsthat address (a) the Coast Guard's sys-tem for adjudicating suspension andrevocation matters and (b) allegationsof misconduct within the CoastGuard’s Administrative Law JudgeProgram.

Meanwhile, the fate of maritimeindustry’s Merchant Marine PersonnelAdvisory Committee (MERPAC) isstill up in the air at a time when it ismost sorely needed. How both situa-tions are navigated by the Coast Guard— and the reaction that effort elicitsfrom their domestic mariner con-stituents — will likely determine thetenor of the relationship between thetwo in the coming months and years.

An excerpt of a post onMaritimeProfessional.com

by Joseph Keefe on 9/22/2010

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MarineNews spoke with Jim Stark, Executive Director of theGulf Intracoastal Canal Association (GICA) about his back-ground in the industry, current projects on the canal, issuesfacing GICA’s nearly 250 members and his goals for theorganization.

What is your background and how did you came tobe Executive Director for GICA?

I spent 28 years in the Coast Guard. I’m a commissionedofficer and have served all over the country including aconsiderable amount of time on the Gulf Coast. I retiredin 2005 as the Chief of Staff for the Eighth Coast GuardDistrict which covers the 26 inland states, the entireinland waterways system as well as the Gulf Coast. Forthree years I was also the Commander of Coast GuardGroup Mobile, which oversaw much of the operations,navigation and safety on the intracoastal waterway in theMississippi, Alabama and Florida side of the Gulf.

After that, in the fall of 2005, I worked briefly as a gov-ernment liaison / operations manager with TitanMaritime out of Ft. Lauderdale following HurricaneKatrina. Shortly after that I was asked if I would considera job with FEMA and eventually I became the director forthe Louisiana Transitional Recovery Office in NewOrleans and then the Assistant Administrator for GulfCoast Recovery overseeing the efforts of FEMA’s longerterm recovery actions on the Gulf Coast.

After FEMA I took some time off and did some con-sulting work, most recently with the folks at BP on the oilspill in the Gulf. Although that was pretty limited, it didexpose me to some planning efforts and tools I’ve put togood use already with GICA in getting ready for the hur-ricane season.

I joined GICA on July 6 and immediately focused myefforts on planning for our 105th annual convention,which we concluded in August. The event was a two anda half day convention in New Orleans that broughttogether many of our members and several of our stake-holders, such as the Corps of Engineers, the Coast Guardand NOAA.

Now I’m starting to focus more directly on the missionof GICA which is to make sure the Gulf IntracoastalCanal is maintained, operated and improved so that it canprovide the most efficient, economical and environmen-

tally sound water transportation route in the country.

What infrastructure projects are impacting the GulfIntracoastal Canal right now?

The waterway runs from Apalachicola, Florida down toBrownsville, Texas and covers over 1,000 miles of water-way. It’s used by several industries. We serve the petro-chemical industries, refineries and farms and recreationuses the waterways quite a bit as well.

Right now the Corps is building some pretty substantialand impressive flood control structures on the IntracoastalCanal. Toward the East of New Orleans, the Inner HarborNavigation Canal surge barrier at Lake Borgne is beingbuilt and we work very closely with the Corps and theCoast Guard to ensure that barge traffic is not effectedwhile that construction goes on. The Inner HarborNavigation Canal lock has been authorized for replace-ment but no monies have yet been allocated.

Another very large flood control structure south of theHarvey Canal is called the West Closure Complex (closingoff surge coming from the Gulf of Mexico into the westbank of New Orleans in the event of a hurricane or large

Jim Stark Executive Director, Gulf Intracoastal Canal Association

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storm). This is a monumental undertaking by the Corpsthat has included the input of the industry, throughGICA, to make sure it’s sized correctly and navigationinterest are taken into account while it’s being built.

We also asked the State of Louisiana, the Office ofCoastal Protection and Restoration, to speak at the con-vention about their master plan for restoring the wetlandsand coastal region of Louisiana, which may have someimpact on navigation and our waterway. We thought itwould be a good idea to get out in front with those statepartners rather than finding out a year or two from nowthat their plan is going to impact the waterway.

One of the biggest challenges we face on the Gulf Coastis hurricanes and storms and surge. GICA also acts as aleader on the joint hurricane team that’s been set up withthe Corps, the Coast Guard and NOAA. Pre-storm, wework with all of our members and these government agen-cies to get out of the waterway and make sure we can findsafe-haven. After a storm passes we work closely with

those same partners to open up the waterway as quickly aspossible. It’s in all of our best interest to get that goingquickly because many industries depend on the com-modities shipped on the waterway.

Beyond representing members in these projects,what other goals do you have for GICA?

One of the things our members truly value is the flow ofinformation and much of my time is spent reviewing con-ditions on the waterway and making sure our membersare aware of trouble spots, like shoaling conditions,marine casualties or planned closures of the waterways.Getting that information out to our members and users ofthe waterways is important. One of the things I want todo is refine our system for accomplishing this and make itvery user friendly and comprehensive. This way peoplewon’t always have the information pushed at them, butthey can pull what they want, or tailor what informationthey need to see.

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A tow on the Gulf Intracoastal Canal

BOAT OF THE MONTH

The Jensen Maritime-designed river push boat, the M/VStephenson II, has been delivered to the U.S. Army Corpsof Engineers for use in Gascondale, Mo., in the Corps'Kansas City district. Jensen performed the functionaldesign and production lofting of the ABS Classed boat,which will provide operational support the district's oper-ations and maintenance mission on the lower MissouriRiver as well as for general construction and mitigationprojects. Patti Marine Enterprises Inc. (PME) ofPensacola, Fla., which built the vessel, hired Jensen to takethe Corps' design for a smaller and narrower boat and cre-ate the functional design and production lofting. Loftingessentially involves taking a vessel design and creating a

building kit for the shipyard, including assembly drawingsand directions for the cutting machines. This processhelps optimize building productivity and quality.

As a day boat and support vessel, the M/V StephensonII has no accommodations and no provisions for freshwater, although it does come equipped with an Incoletbrand of head as a small crew comfort. Noise and vibra-tion reduction of the exhaust system was important to theArmy Corps, which wanted no more than 20% transmis-sibility. Jensen designed the system to use cable-mountedsilencer isolators and pipe hangars, which greatly reducedthe amount of noise and vibration transferred to the crewareas.

M/V Stephenson II

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Jensen Maritime-Designed Push Boat for USACE

Specifications/Main Particulars:Length, o.a. . . . . . . . . . . . . . . . . . .58 ftBreadth, molded . . . . . . . . . . . . . . .22 ftDepth, molded . . . . . . . . . . . . . . . . .7 ftDraft, designed . . . . . . . . . . . . . . . . .4 ftDisplacement . . . . . . . . . . . . . . . . .80 LTMain engines . . . . . . . .2x Caterpillar C12Total installed power . . . . . . . . . .770 hpGenerators . . . . . . . . .1x Caterpillar C4.4Radars . . . . . . . . . . . . . . . . . . . .FurunoCrew capacity . . . . . . . . . . . . . . . . . . .3Heat exchangers . . . . . . . . . . .FernstrumFuel oil capacity . . . . . . . . . . . .1,200 gal


C & C Technologies of Lafayette,La. signed a contract with AllAmerican Marine of Bellingham,Wash. to construct a new 134-ft by37-ft aluminum catamaran for surveyoperations in the Gulf of Mexico. Thetwo companies have been developingthe design concept for the vessel fornearly two years. Teknicraft DesignLtd. of Auckland, New Zealand willprovide the engineering and navalarchitecture services for the design,which is expected to be launched anddelivered during the second half of2011. Caterpillar has been selected tosupply the prime movers, inclusive oftwin C32 ACERT engines and twinC18 ACERT engines. The propul-sion configuration will provide acruise speed of 20 knots with a totalof 2,153 bhp in each sponson. Thepairing of two different enginesallows for high speed transit to the

survey site using all four engines anda slower survey speed when usingonly the smaller engines. The C18sare coupled to ZF Marine gears withtrolling valves to provide an econom-ical speed range from three to 11knots.

AAM to Construct Advanced Survey Catamaran

Specifications/Main Particulars:Length, o.a. . . . . . . . . . . . . . . . . . . . . . . . . .134 ft Beam, extreme . . . . . . . . . . . . . . . . . . . . . . . .37 ftDraft, midship . . . . . . . . . . . . . . . . . . . . . . . .6.5 ftPropulsion engines2x Caterpillar C32 ACERT, 1,600 bhp/2300 rpm . . . .2x Caterpillar C18 ACERT, 553 bhp/2,100 rpm

Construction . . . . . . .5383 Marine grade aluminiumCruise speed . . . . . . . . . . . . . . . . . . .20 kts (laden)Propulsion . . . . . . .4x Fixed pitch, 5-blade propellersDeadweight . . . .65 metric tons inclusive of AUV vans

Capacities:Fuel, standard tankage . . . . . . . . . . . . . .6,600 galAdditional tankage . . . . . . . . . . . . . . . . . .4,400 galFresh water . . . . . . . . . . . . . . . . . . . . . . .3,700 galBlack water . . . . . . . . . . . . . . . . . . . . . . .1,100 galBallast water . . . . . . . . . . . . . . . . . . . . . .4,000 galDirty oil . . . . . . . . . . . . . . . . . . . . . . . . . . .150 galOily water . . . . . . . . . . . . . . . . . . . . . . . . . .10 galClean engine oil . . . . . . . . . . . . . . . . . . . . .175 galHydraulic system oil . . . . . . . . . . . . . . . . . . .80 galMaximum range (total tankage) . . . . . . . .3,800 nm, . . . . . . . . . . . . . . . . . . . . . . . . . . . . .plus reserves Cruising range . . . . . . . . . .1,650 nm, plus reservesScientists . . . . . . . . . . . . . .22 on extended missionComplement (max) . . . . . . . . . . . . . . . . . . . . . . .26Crew . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Overnight berths . . . . . . . . . . . . . . . . . . . . . . . .26Endurance . . . . . . . . . . . . . . . . . . . . . . . . .14 days

LEGAL PERSPECTIVES

In response to the oil spill in the Gulfof Mexico, the Department of Interior(DOI) issued a moratorium on alldeepwater drilling in the Gulf ofMexico and Pacific regions. Althoughonly a portion of our industry is direct-ly involved in the day-to-day work of

offshore drilling, the entire industry isbeing dramatically affected by this moratorium.Specifically, vessel owners and operators are watching theirvessels sit idle and charters and master service agreementsare being cancelled by well operators.

As the vessels currently available to the industry are notbeing utilized, the market to purchase, sell, or build newvessels has also collapsed. As orders for new vessels are notforthcoming, ship builders, repairers, and suppliers are allexperiencing a reduction in work.

Thus, based upon the trickle-down effect from the off-shore oil and gas exploration business, all aspects of themarine industry are significantly impacted by the issuanceof such a ban.

Although the Obama administration appears to be deadset on curtailing offshore oil and gas exploration, variouscompanies involved in oil and gas exploration have chal-lenged the legality of the drilling ban. This article providesa description of what has happened to date and the rea-sons why the drilling ban should be declared invalid.

With regard to the history of the drilling ban, on April20, 2010, a well blow-out and explosion occurred on a rigwhile it was working in the Gulf of Mexico, resulting inan oil spill. On April 30, 2010, President Obama directedthe Department of the Interior to conduct a review of theincident and issue a report with recommendations formaking oil and gas exploration safer. On May 27, 2010,in accordance with President Obama’s April 30th direc-tive, Secretary Kenneth Salazar issued a report entitled“Increased Safety Measures for Energy Development onthe Outer Continental Shelf ” (Safety Report). This reportidentified an initial set of safety measures that could beimplemented to improve the safety of offshore oil and gasdevelopment. The Safety Report included a three pageExecutive Summary written by Secretary Salazar. This

Executive Summary was written after the report was com-plete.

The Safety Report did not assess how to implement therecommended safety measures, how long it would take toimplement the measures, or whether any type of morato-rium was necessary.

Nonetheless, Secretary Salazar’s Executive Summary rec-ommended an “immediate halt to drilling operations onall 33 permitted wells, not including the relief wells cur-rently being drilled by BP, that are currently being drilledusing floating rigs in the Gulf of Mexico” so as to “allowfor implementation of the measures proposed” in theSafety Report. The Secretary instructed that drilling oper-ations should cease for at least a six month period.

The Executive Summary to the Safety Report stated thatthe recommendations in the report were peer reviewed byexperts identified by the National Academy ofEngineering. Although these experts did participate in apeer review of the Safety Report, they were not providedwith a copy of Secretary Salazar’s Executive Summary thatrecommended the drilling ban. In fact, eight experts whohad either peer reviewed or consulted on the drafting ofthe Safety Report stated that they did not agree with thesix month moratorium on drilling. These experts furtheradded that the moratorium would not reduce risk andwould have a lasting impact on the nation’s economy thatcould be greater than the oil spill. Furthermore, some ofthese experts also believed that the moratorium will makedeepwater drilling less safe in the long run.

On May 28, 2010, Secretary Salazar issued a one pagememorandum directing a six month suspension of pend-ing, current, or approved offshore drilling operations ofnew deepwater wells in the Gulf of Mexico and Pacific

Although the Obama administration appears to bedead set on curtailing offshore oil and gas exploration,various companies involved in oil and gas exploration

have challenged the legality of the drilling ban.

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Why the Drilling Moratorium is

Unlawful & Should be LiftedBy Larry DeMarcay


regions. On May 30, 2010, theBureau of Ocean EnergyManagement (BOEM), in accor-dance with Secretary Salazar’s direc-tion, issued a “Notice to Lessees andOperators of Federal Oil and GasLeases in the Outer Continental ShelfRegions of the Gulf of Mexico andthe Pacific to Implement theDirective to Impose a Moratorium onAll Drilling of Deepwater Wells,”NTL No. 2010-N04 (NTL-4). NTL-4 directed lessees and operators tocease drilling all new deepwater wellsand refrain from spudding any newdeepwater wells for at least sixmonths. It also notified lessees andoperators that no new permits wouldbe issued during this time.

On June 8, 2010, the BOEM issuedanother notice to lessees, NTL-5, inwhich the BOEM advised all lesseesof ten new safety measures that theymust comply with. These new regula-tions applied to all activities on theOuter Continental Shelf includingthe deepwater activities suspendedunder NTL-4 and shallow wateroperations that occur in less than 500feet of water. This NTL requiresoperators to provide specific informa-tion to the government prior to theissuance of a permit. However, thesehastily prepared regulations do notprovide enough information to allowoperators to comply with therequests. As such, operators are notable to obtain drilling permits for anyoffshore exploration because of thedifficulty of complying with thesenew regulations.

On June 22, 2010, a federal judgeenjoined the deepwater moratoriumfinding that the Department ofInterior may have failed to properlyreason through its decision makingprocess prior to issuing a blanket

moratorium with facts developedduring its 30-day review. Despite theclear pronouncement from theFederal Court, later that afternoon,Secretary Salazar issued a press releasestating that he would be issuing a sec-ond drilling moratorium in the com-

ing days.On July 12, 2010, Secretary Salazar

imposed a second moratorium andinstructed the BOEM to direct thesuspension of the drilling of wellsusing sub-sea blowout preventers(BOP) or surface BOPs on floating

LEGAL PERSPECTIVES

20 MN October 2010

facilities. Despite this small descriptive change, the seconddeepwater moratorium is materially identical to the firstone. The validity of this second drilling moratorium, theone that is currently in place, is currently being challengedin federal court in New Orleans.

Now that we have walked through how the drilling banaffects the entire industry and the drilling ban’s road toimplementation, we can turn to why the implementationof this ban is not lawful.

Specifically, the Administrative Procedures Act (APA)mandates that government issued regulations require thatdecisions be made after a reasoned decision makingprocess is complete, not before it has begun. The APA alsorequires that regulations be narrowly tailored to meet thedesired goal. Furthermore, the APA requires that theAdministration follow various notice and commentrequirements of the Administrative Procedures Act priorto issuing new substantive guidelines.

The APA requires federal agencies, before issuing a for-mal or informal rule, to take a hard look at the questionbefore it engages in a good faith, reasoned decision mak-ing process. However, before issuing the current deepwa-ter moratorium, the Department of the Interior did nosuch thing. Instead of gathering facts and then issuing adecision based upon those facts, the DOI did exactly theopposite; they made a decision to clone the first deepwa-ter moratorium and then attempted to gather evidence tojustify it.

In the aftermath of the court’s preliminary injunction onthe first moratorium, the Department of the Interior hadan opportunity to reconsider issuing a drilling ban, ingood faith and with an open mind, pursuant to therequirements of the APA. However, DOI decided andpublicly announced immediately after the first drillingban was halted, that a second moratorium would beissued. The DOI then started out in search of reasons tosupport the pre-ordained result. Thus, the second drillingban is arbitrary and capricious and should be set aside asit is not founded on any reasonable factual basis.

Additionally, the moratorium on offshore drilling coversall drilling activity in the Gulf of Mexico and Pacificregions. However, based upon the lessons learned on theMacondo well, the Department of the Interior could haveissued a drilling ban that was narrowly tailored and onlytook into account the offshore activities that the DOI

deemed to be most dangerous. Specifically, the SafetyReport provided a list of drilling activities that were lessdangerous. However, the drilling ban does not allow theseless dangerous activities to proceed. Specifically, the DOIfailed to accurately consider and adopt a moratorium thatcould have permitted the five categories of deepwater wellactivities that the government’s own experts recommend-ed be permitted under the moratorium. The Departmentof the Interior rejected these activities by stating that they“still pose an unacceptable level of risk at this time.” Thesegeneralized and conclusory justifications are not permissi-ble under the APA. Thus, the second drilling ban shouldbe held unlawful as it is not narrowly tailored to meet itsgoal.

Additionally, the APA requires federal agencies to issuenotice and provide a comment period ensuring that feder-al agencies have the benefit of the views of effected mem-bers of the industry before it undertakes new regulatoryrequirements. On June 8, 2010, without any advancenotice or opportunity for comment, the BOEM issuedNTL-5 that implemented certain safety measures outlinedin the Safety Report.

Because the safety measures imposed by NTL-5 arebinding, substantive requirements, they should have beenimposed only through the APA’s notice and comment rulemaking process. However, DOI used an informal letterthat was sent without any notice or input from the regu-lated community. As such, NTL-5 was promulgated with-out observance of the procedures required by law andshould be set aside as unlawful.

Although it is too early to tell how the courts will han-dle these issues, it is evident that the Administration seemsto be dead set on curtailing offshore drilling and that theyare willing to avoid prescribed rules when curtailing suchactivities. Due to the important ramifications to ourindustry, it is important for everyone to understand wherewe are with regard to the ban, how we got there, and thelegal issues involved in challenging the Administration’saction. The collective efforts of the industry, throughapplying legal, political, and public relations pressure areneeded to overturn this disastrous ban. MN

Lawrence R. DeMarcay, III is a partner at Fowler RodriguezValdes-Fauli in the firm’s New Orleans, La. office. He can bereached at [email protected] or 504-595-5122.

LEGAL PERSPECTIVES

22 MN October 2010

SALVAGE

In the wake of the Deepwater Horizoncasualty there have been a number ofproposals put before Congress for newlegislation or amendments to existinglegislation affecting vessel owners andoperators. Many of these relate to lia-bility for damages sustained as a resultof the casualty or the oil spill that fol-

lowed. Perhaps the oldest legislation to which amendmentand / or appeal is being sought is a statute passed in 1851to provide vessel owners with limited liability in respectclaims brought against them in certain circumstancesinvolving, amongst other things, marine casualties. Thisstatute is unique to the United States, but the concept ofallowing shipowners the right to limit their liability incasualty matters is not. Many countries, but not the U.S.,are parties to an international convention that allows forsuch limitation, though on terms quite different fromthose in the U.S. statute. Indeed, according to its legisla-tive history, the U.S. limitation act was enacted to encour-age investment in U.S. shipping by putting the UnitedStates on a par with other countries that already had suchlegislation.

U.S. courts have held that limitation of a shipowner’sliability is a procedural issue, and therefore the law of theforum governs. That is, if the matter is brought before aU.S. court, that court will apply U.S. law, i.e. the 1851statute, to the issue of limitation. There may at the sametime be legal issues in the case that the courts have held tobe substantive rather than procedural, and to those thecourt hearing the case may apply the law of some othernation, e.g. the law of the nation where the casualtyoccurred or that of the flag(s) of the vessel(s) involved inthe casualty. Therefore, for the purposes of this article,only the U.S. statute and the applicable civil proceduralrules will be discussed. Even so, limitation of shipowners’liability is a complex and heavily nuanced subject. Spaceconstraints allow no more than a brief overview of thesubject in this column.

Under U.S. law, there are two ways in which a shipown-er involved in a marine casualty may raise the limitationissue. It may raise limitation as a defense in a case broughtagainst it for damages arising out of the casualty, or it may

initiate a limitation action on its own. If there will likelybe more than a single claimant, especially if thoseclaimants might bring suit in different venues, then it willusually be to the advantage of the vessel owner to initiatea limitation proceeding. This may be commenced anytime after the casualty up to six months from the date ofreceipt of the first written claim. The vessel owner may beencouraged to file early in order to exercise its choice ofthe several venues permitted by the rules where the mattermay be heard. Once the limitation complaint has beenfiled, all claims against the vessel or its owner arising outof that casualty must be filed in or transferred to thataction, creating what is called a concursus of the claims.The court will in fact enjoin claims from being filed else-where.

A limitation action differs from a typical legal action inseveral respects in addition to the injunction and concur-sus. It involves more documents being filed along with thecomplaint, a posting of security in the amount of the lim-itation fund, notice being given to all prospectiveclaimants, and the “plaintiff ” being the party who willdefend against the claims asserted. The limitation fund iscomprised of the owner’s interest in the vessel at the endof the casualty voyage plus freight (or charter hire) earned.The vessel itself may be deposited with the court, but theowner will more likely post a bond or a P&I Club letterfor its value. Its value will be assessed according to expertappraisers, reduced by the amount it will cost to repair thevessel. Insurance proceeds received by the owner, eitherfor repair of the vessel or for its loss, are not included inthe limitation fund. If the vessel is a total loss, the limita-tion fund may consist only of the freight earned plus netscrap value, if any. An exception applies in cases involvingpersonal injury or death arising out of casualties on seago-ing vessels. For those claims, if the limitation fund of thevessel will be insufficient to pay all losses in full, then theportion applicable to personal injury or death claims willbe increased to an amount equal to $420 per gross ton ofthe vessel.

Once the complaint has been filed, prospectiveclaimants will be allowed an amount of time set by thecourt to file their claims, following which they will have tomake a more rigorous showing to be allowed to file,

Salvage Law Limitation of Shipowner’s LiabilityBy Jim Shirley

www.marinelink.com

including a showing that their late-filed claims will not prejudice thetimely filed claims. After all theclaimants have answered, the matterwill proceed in many respects likeother litigated matters. That is, theparties will engage in evidentiary dis-closure and discovery practice,motion practice seeking to limit theissues or for other purposes, engage-ment and discovery of expert witness-es, and then on through the trialitself, and perhaps on to appeal(s) inwhole or in part of the trial court’sdecision. However, there are somedifferences. The limitation complaintwill in fact be entitled a Complaintfor Exoneration From or Limitationof Liability. That is because the initialtrial burden will be on the claimantsto prove there was either an unsea-worthy condition or negligence onthe part of the shipowner’s vessel thatcaused the losses for which compen-sation is being sought. If that is notproved, then the shipowner will beexonerated from liability. If, on theother hand, the claimants meet thatburden, the burden shifts to theshipowner to prove it lacked “privityor knowledge” in respect of theunseaworthy condition or the negli-gence of the vessel. In the case of acorporate owner, except for liabilityfor personal injury or death, thatprivity or knowledge must exist at ahigh enough level in the organizationto reach firm management. In thecase of liability for personal injury ordeath on a seagoing vessel, the privityor knowledge of the Master of thevessel or the superintendent or man-aging agent at or prior to the com-mencement of the voyage will suffice.

If the vessel owner is found entitledto limit his liability, the limitationfund will be apportioned amongstthe claimants proportionately to theirclaims, with the proportion due per-sonal injury and / or death claimants,

if any, being increased as describedabove from other resources of theowner. If the vessel owner is foundnot entitled to limitation, it will berequired to pay the proved damagesas awarded by the court.

In the U.S. the only parties thatmay be entitled to limit their liabilitypursuant to the limitation statute arethe owner or bareboat charterer(owner pro hac vice) of the vessel.Also, not all claims are subject to lim-itation. The personal contract doc-trine excludes from limitation claimsarising under contracts in which thevessel owner has undertaken a per-sonal commitment, e.g most charterparties. That is why one will often seein towing contracts a disclaimer thatthe contract is a charter of the towingvessel or a personal contract. Also,pollution claims under the OilPollution Act of 1990 are not subjectto the limitation statute, but rather tothe separate limitation provisions setout in OPA 90 itself.

If the 1851 statute were to berepealed, many maritime law practi-tioners would be in favor of the U.S.ratifying the 1976 LimitationConvention to which most modernseafaring nations subscribe. Thatwould provide for broader limitationcoverage, while at the same timeestablishing substantial limitationfunds based on the vessel’s tonnagethat is not dependent on its post-casualty value. That would put theU.S. back on a par with other mod-ern maritime nations. MN

Jim Shirley is a Master Mariner, a for-mer salvage master and retired mar-itime lawyer who specializes in mar-itime casualty and salvage matters, andnow serves as legal counsel to theAmerican Salvage Association and asPrincipal Consultant in JTS MarineLLC. Contact him at [email protected] or (609) 883-3522.

24 MN October 2010

INLAND REPORT

Waterways Council, Inc. (WCI) andits more than 200 members were sur-prised and disappointed with PresidentObama’s announcement on September6 that he intends to ask Congress for atleast $50 billion in funding for infra-structure but made no mention of

waterways infrastructure projects.The White House press statement said, “The goals of

the infrastructure plan include: rebuilding 150,000 milesof roads; constructing and maintaining 4,000 miles ofrailways, enough to go coast-to-coast; shorter, high speedrail projects; and rehabilitating or reconstructing 150miles of airport runways, while also installing a next gen-eration air navigation system designed to reduce traveltimes and delays.”

Roads, rails and runways — why not rivers?WCI issued a press statement reacting to the Obama

announcement: “While the nation celebrated Labor Dayand all that the workforce has done to make Americagreat, the waterways transportation industry was left dis-appointed and puzzled about why the President’s

announcement earlier this week to fund at least $50 bil-lion in infrastructure projects over the long term does notinclude any waterways or port projects. Our inland water-ways not only support people who work on our rivers, butworkers in our agricultural community and the manyindustries who rely on our waterways for affordable trans-portation of their goods, both domestically and for worldmarkets. To not include and dismiss our nation’s mostenvironmentally sound, energy efficient and congestion-relieving mode of transportation, when its lock and daminfrastructure consistently earns a ‘D’ grade, is unreason-able and unacceptable.

“For all these reasons and more, the inland waterwaysindustry remains a solution for the future and its infra-

The waterways transportation industry was left disap-pointed and puzzled about why the President’s

announcement to fund at least $50 billion in infrastructure projects over the long term does not

include any waterways or port projects.

In Obama’s Plan,

Where are the Rivers & PortsBy Cornel Martin, President/CEO, Waterways Council, Inc.

One of the two miter gates of the auxiliary chamber close behind the M/V Sir Robert at Locks 27 in Granite City, Ill.

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structure is critical to maintain a modern and efficient sys-tem of transportation for cargoes like grain, petroleum,corn, coal, steel, and aggregates that the United States andthe world rely upon. In support of our nation’s labor force,our nation’s waterways have helped to make our countrygreat. It is time to stop dismissing waterways transporta-tion infrastructure and instead work together to keepAmerica moving.”

Given the climate in Congress and the reluctance toincrease the deficit, this plan may go nowhere in the end,but the absence of waterways infrastructure projects ascritical to receive funding is puzzling, discouraging andmore than frustrating.

Transportation on our nation’s rivers is simply the mostenergy efficient, congestion-relieving environmentallygreen way to move our critical commodities for domesticconsumption and export. One jumbo barge is equal to 70trucks on our already over-crowed highways. That means1,050 trucks on your commute home are equal to just one

typical barge movement on our waterways.Our nation became prosperous in large part because of

the existence of the rivers to budding ports and cities.Commerce on those waterway routes allows our agricul-ture industry to feed the world, our citizens to turn thelights on each day and heat their homes, our pharmaceu-tical companies to develop life-saving medicines fromchemical shipments, and our icy roads in winter to receivesalt so that cars and school buses can move safely. To notinclude locks and dams in infrastructure spending isshort-sighted to say the least. Leaving the waterways outof any equation is simply bad for America. MN

Cornel Martin is President and CEO of Waterways Council,Inc. (WCI), and can be reached [email protected] or 703-373-2261. WCI seeks toeducate decision-makers, the news media and the generalpublic about the importance of our nation’s inland waterwaysand the need to sustain and increase their reliability.

Visit us at www.mooseboats.com or call 1-866-GO MOOSE

No Nonsense Serious Boats

All boats are available onGSA Contract: GS-07F-0507M

INLAND REPORT

In MarineNews’ 2010 Yearbook edition we examinehow the past year has treated the tug, tow and barge, theoffshore and the passenger vessel markets, and we askindustry experts about the outlook for 2011. Whiletragedy struck the offshore markets and the recessioncontinues to impact many companies, business leadersalso have good news to share.

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In the tug, tow and barge market, both Donjon MarineCo. and Mobro Marine seemed to agree that diversifica-tion is a powerful asset when dealing with turbulent eco-nomic times. Donjon was originally founded to providemarine salvage and wreck removal but has continued tobranch out to related marine fields such as marine trans-portation, dredging, heavy lift stevedoring, demolition,scrap metal recycling and, most recently shipbuilding,when it added Donjon Shipbuilding LLC, in Erie, Pa.

John A Witte, Jr., Donjon’s Executive Vice President,said “Donjon’s business model has always been basedupon providing professional but related services so that ifone division is slow, one of the others can pick up theslack. To date, this approach has proven to be successful.”

He said that “as a result of our diversity, 2010 has beena good year. While all of our divisions had their slow peri-ods, overall, Donjon met our projections.” Witte said thecompany remains optimistic about 2011 and will contin-ue to rely on its flexibility and range of related marine

MarineNews YearbookTug, Towboat & Barge • by Raina Clark 2010

Donjon dredging operations.

services. “With the addition of Donjon Shipbuilding,Donjon is hopeful to take advantage of the repair and newconstruction needs of the Great Lakes marine communi-ty. While slow over the last few years, all indications arethat the Great Lakes marine needs are beginning to pick-up.” Mobro Marine, Inc. is a marine equipment compa-ny serving mainly U.S. contractors from the Southeastand Gulf Coast regions. These mainly consist of bridgebuilders, pile drivers and U.S. contractors working abroadand in the Caribbean.

Mobro Marine President John Rowland said “Businesshas steadily slowed down in the 2010 market, especially inour crane rental department.” However, he said his tugsand barges have maintained steady work and he foreseesan increase in business in all aspects of the company.Rowland pointed to emerging markets in the Caribbeanand opportunities in port expansions and construction.He said there is an increasing need for expansions of docksand piers to accommodate larger ships for both the cruiseindustry and foreign trade.

Regarding legislative issues that will impact the market,Witte said “The implementations of the pending modifi-cations to OPA-90 will have a significant impact not onlyon our salvage activities but the marine community as awhole. … We believe that the marine towing industry willalso face change as a result of increased manning oversightand equipment inspection requirements.” MN

MarineNews YearbookTug, Towboat & Barge • by Raina Clark 2010

Mobro Marine’s tugs, the American and the El Puma Grande prepare to tow a shadow boat for its trip to the Miami Boat Show (ashadow boat shadows the main yacht).

28 MN October 2010

Donjon heavy lift operations.

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Quest Offshore Resources, Inc., a data and strategicmarket intelligence company for the offshore industry,said that the global subsea industry appeared to regainmomentum through the first half of 2010 despite theregional turbulence in the U.S. Gulf of Mexico (GoM)created by the deepwater Macondo spill in April. NorthAmerica is expected to see a material decline in near-termawards as oil companies involved in exploration, appraisalor development drilling are currently in a holding pattern.However, Quest has seen forward movement on majorcapital projects like Chevron’s Jack & St. Malo and BigFoot projects, as well as Shell’s Mars B as specific oil com-panies are green lighting projects for sanction in the thirdand fourth quarters of 2010. These key project awards inthe early stages of the anticipated up-cycle will greatlybenefit a supply chain eager for work — particularly U.S.Gulf Coast fabrication yards.

The uncertainties surrounding the GoM have causedQuest to reduce the near-term demand for subsea equip-

ment as a result of delayed drilling and the increased riskthat will be associated with operating in the GoM and theinability or unwillingness of some of the smaller inde-pendents to participate. Quest believes that this event willincrease M&A activity as some of those smaller independ-ents re-evaluate their GoM assets and the larger oil com-panies keep their eyes peeled for valuable avenues toincrease their promising GoM portfolios. In an area where65% of historic subsea tree award activity has been fromindependent oil companies, near-term demand will obvi-ously be negatively affected as the area re-adjusts.

It will be vital for the GoM to maintain a universe ofcompanies that find value in marginal fields that have his-torically made-up the bulk of developments in the region.Without this bread-and-butter development activity, therecould be a permanent shift in the GoM’s developmentprofile with fewer, but perhaps larger opportunities for oilservice companies. In addition, some subsea demand hasshifted to the right as key projects currently at the end of


MarineNews YearbookOffshore • by Quest Offshore 2010

30 MN October 2010

our forecast period are presently contingent on appraisaldrilling and those campaigns are at a standstill. Reactions tothe moratorium from operators in the GoM are beginningto materialize, as well as those from governments worldwide.The Canadian Senate Committee on Energy, theEnvironment and Natural Resources has recently stated thatthere is no need for a moratorium on offshore drillingbecause the risk of accident is low. In Norway, the country’shead of the Petroleum Directorate has stated that there willprobably be delays in the awarding of licenses offshoreNorway. Also, the chief executive of Oil & Gas UK recent-ly made remarks against the European Union’s moratorium.As for the response from the offshore oil and gas Industry, inJuly International Oil Companies including Chevron,ExxonMobil, ConocoPhillips, and Shell announced a planto put together a rapid response system that will be availableto capture and contain oil in the event of a future underwa-ter well blowout in the deepwater GoM. The four compa-nies have committed $1b to fund the initial cost of the sys-tem, and will form a non-profit organization called theMarine Well Containment Company to operate this system.This level of material commitment to the GoM clearly com-municates the future importance of the region and its con-tribution to global demand across deepwater segments.

Outlook for Future DevelopmentsWhile the drilling moratorium has undoubtedly affected

offshore developments, many planned projects are still mov-ing forward. Prior to recent events, demand for floating pro-duction units was expected to finally make a recovery in theGoM, with three awards in 2010 (Chevron Jack St. MaloSemi, Big Foot and Shell Mars B TLP), leading to a sub-stantial recovery in awards. With the initial effects of thespill now being digested, it appears that it is likely that allthree of these units will still be awarded this year with therebeing some possibility of one slipping into 2011. The effectsof the spill on floating production are likely to be less severethan other market segments, as the operators active in theGoM FPS market are primarily major oil companies whoshould not be affected by any new liability requirements.

Assets In and Out of the GoMFollowing the tragedy of the Deepwater Horizon and the

resulting Macondo oil spill, many feared a large exodus ofdeepwater rigs would hamper operators’ future GoM plans.

MarineNews YearbookOffshore • by Quest Offshore

However, many operators appearpoised to wait out the moratoriumwith a view towards resumingdrilling schedules. With that inmind, there have been a few notablemovements of deepwater drillingassets. For instance, Murphy Oil hasmobilized one deepwater rig for-merly in the GoM to West Africa,and they have stated that if they cankeep their deepwater rig busy there,then they probably will not bring itback to the GoM. Currently theydo have the option to bring that rigback sometime in the second quar-ter of next year, but have stated thatthey would have to feel very com-fortable that they have all theapprovals necessary to get theirwork done. Plains Exploration &Production announced that theyhave studied their GoM operationsover the past few months and arenow planning to reduce GoM expo-sure and related capital spending.The company has set goals to secure$1b to $2b of value from its GoMassets through third party joint ven-tures and / or asset sales to supportcapital spending with operatingcash flow. Hess had only one oper-ating rig in the Gulf, the StenaForth. This rig left the Pony #3 wellin June as part of a pre-existingfarm-out agreement. Depending onthe results of the legislation inNovember, Hess may send the StenaForth to Ghana when she is sup-posed to return in the fourth quar-ter of this year. Statoil’s rigs are cur-rently still in the GoM area and, asof right now, they are looking atwhere these assets could bedeployed elsewhere which couldmean more exploration in areas out-

side the U.S. Currently, Statoil doesnot see any real reason to leave theGulf having stated that deepwateroffshore is part of their core businessand they see no reason to changecurrent strategy in the region.Super-majors Shell and Chevronwill not only maintain their currentfloating rig fleet in the GoM butalso plan to stay on track to bringmore deepwater rigs to the Gulffrom 2011 forward.

The Marine Construction MarketOf interest to the region’s demand

for marine construction assets is thenear-term loss in working vesseldays that will be required each year.Again, while 2010 and 2011 werenot poised to be significant years ofdemand for this market segment,the real impact will be felt in 2012through 2014, as many workingvessel days will be displaced to lateryears. However, the regions stillpresents a favorable opportunity forinstallation players going forward.

Acergy believes that there will be abacklog of activity in the GoM andthat an increase in the demand forthe types of services they providewill be seen in the near future. Thecompany also anticipates that deep-water projects due to be awardedover the next 12 months will likelybe delayed until 2012 or possiblylater. Soon-to-be merged partner,Subsea7, has other activities goingon in the IRM side of the businessthat still seem to be very buoyant.The company thinks the outcomeof the moratorium will have somebenefit to companies similar toSubsea7 and that there will beincreased IRM activities as a result.

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32 MN October 2010

MarineNews YearbookPassenger Vessels • by Jonathan Atkin 2010

“Securitay, Securitay — Molinari departing Whitehallbound for St. George.” Twenty-four hours a day, inNY/NJ harbor the VHF bridge-to-bridge Channel 13crackles a non-stop symphony of thousands of “securitycalls.” It is a veritable orchestration by captains of theStaten Island Ferry, dozens of water taxis crossing theNorth River or streaking up Buttermilk channel, tug boatsand barges, container ships coming ʻround Bergen Point,sea-going palaces leaving three cruise ship terminals aswell as dozens of passenger vessels, motor and sail, jostlingfor camera angles at the Statue of Liberty.

The Port of NY/NJ, is the nations third largest port.Henry Mahlmann, President of Sandy Hook Pilots saidrecently, “We are at the top of the food chain when itcomes to diversity, as this port shares its waterway with

everything from kayaks to cruise and container ships over1,000 feet on a daily basis, seamlessly.” Nearly 12,000deep draft ship arrivals and departures in the NY/NJregion share the same waters with passenger vessel opera-tors. As ferry traffic routes, dinner boats, charter vessels ofall persuasion and tug and barge transits expand, alongwith increased sailings by recreational vessels ranging frompaddlers to mega yachts, it is no wonder the USCG VesselTraffic Service annually handles over 408,000 vesselmovements in the port.

With AIS movements viewable on ones computer, theultra high maritime traffic in NY/NJ can be easily under-stood by the mariner and non mariner alike. The busyport hosts over 700 annual marine events, according toUSCG Sector NY. As if boat races, regattas, fireworks, and

Artist rendering of the Hornblower Hydrogen Hybrid (H3)

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parades were not enough, the RedBull air race, Macys fireworks, lastyears Quadricentennial of HenryHudsons visit, Fleet Week and thearrival of the USS New York, werehighlights in the port. Passenger ves-sels benefitted from increased oppor-tunities for charters, dinner cruises,sunset sailings and sightseeing for theevents.

The NY/NJ waterway has reached“unprecedented visibility” accordingto Tom Fox, founder and advisor toNew York Watertaxi. He cited fivegovernmental agencies that are seri-ously studying the growth and expan-sion of ferry service including theNYC Economic DevelopmentCommission, the Office ofEmergency Management, the PortAuthority of NY/NJ, NYC PlanningCommission, and the National Parks.Fox said he eagerly awaits NYCs EastRiver Ferry Service scheduled tobegin in 2011.

This year, the ferry eyes of the worldwere focused on New York/NewJersey port, as the InterferryConference came to New York, achange from Istanbul, a year ago. Toemphasize Foxs view, USCG SectorNY reports 60 million people utilizethe NY/NJ ferry system annually.Arthur E Imperatore Jr., NYWaterway President reported theregion is recovering and NYWaterway ferry ridership hasrebounded to 30,000 daily passengertrips. Imperatore stated, “NYWaterway has held the line on faresand taken other steps includingexpanded free bus service to addresscustomers’ price sensitivity.” Whilelooking forward to an improved

2011, Imperatore mentioned howvisibility of the New York harborincreased as customers on the 90Minute Harbor Tour remain interest-

ed in the details of the “Miracle onthe Hudson,” in which NY Waterwayferry crews rescued 143 of the 155passengers on Flight 1549, the most


MarineNews YearbookPassenger Vessels 2010

34 MN October 2010

MarineNews YearbookPassenger Vessels 2010successful marine rescue in aviation history.

Classic Harbor Lines Captain Sarah Greer, reported,“We didnt have a sunset cruise that didnt sell out thisyear,” with their two very visible schooners, Adirondack,Adirondack III and the motor yacht Manhattan. Last year,she lamented it wasn’t the economy as much as the weath-er impacting Classic Harbor Lines bottom-line. She looksforward to growth in 2011 as Scarano Boat Building ofAlbany, delivers a new classic 105 foot schooner, namedAmerica 2.0, harking back to the early Americas Cup ves-

sels. “It will be a tribute,” said Capt Greer “to AmericasCup, and a tribute to contemporary design as a ‘green ves-sel’ with electric propulsion, a freestanding carbon fiberrig and very up-to-date below the waterline configura-tion.” The new 75 pax schooner emphasizes Capt Greerscredo, “People like to sail.”

Mathias Chouraki, Sailtime NY and Luxury YachtPartners owner, echoed the popularity of sailing. His 2011plans will add two new 30-40 foot sailboats and two 70-80 foot motor yachts. “Customers are ready to spend

NY Water taxi in Red Hook serving the IKEA store.

36 MN October 2010

MarineNews YearbookPassenger Vessels 2010money again,” Chouraki commented, “More and morepeople are now aware of our waterfront not simply assomething to see from their apartment window or land-scaped promenade but how easy it is to charter a boat inManhattan and enjoy this wonderful resource.”

The resource has also not been taken for granted byStatue Cruises (Hornblower). The national impact, result-ing from the wide reporting of the Statue of Libertyscrown reopening increased their bookings. “Our EllisIsland and the Statue of Liberty ferries are the clydesdalesof the operation,” according to Hornblower corporatepublic relations spokesperson, Tegan Firth. She reportedStatue cruises is expanding their dinner boat and explor-ing new charter markets. Currently, at DerecktorShipbuilding in Connecticut, the Hornblower HydrogenHybrid vessel dubbed H3 is taking shape. Scheduled to besplashed April 2011, the design features wind turbinesand solar power. Upgrading their entire fleet, all their ves-sels will be re-engined with Tier II power plants. Firthechoed the USCGs statistics regarding marine events bymentioning the upcoming 125th anniversary of the Statueof Libertys dedication in NY Harbor.

The Port of NY/NJ is busy and operators look forwardto a robust 2011. The variety of vessel traffic is growing.Passenger vessel operators are part of the intense maritimeactivity. “The fact that the system operates efficiently andsafely is a testament to the culture of safety and best prac-tices followed by the ports stakeholders” said Robert H.Pouch, Deputy Commander, Operations NYNM/New

York Division of Military and Naval Affairs.Sandy Hook Pilots President Mahlmann emphasizes

how the harbor community shares the NY/NJ waters withdiverse stakeholders, and the need for situational aware-ness on the part of all operators. In spite of the wonders ofAIS, GPS, VTS, Integrated Bridge Systems and I NAVapps on cell phones, Mahlmann succinctly counsels:“Look out the [expletive deleted] window!” MN

NY Harbor, Little Lady ferry traverses North River with theEmpire State building in background


MarineNews YearbookBoatyards • by Raina Clark 2010

In the vessel construction market, small boat builder AllAmerican Marine of Bellingham, Wash., and RIB builderWing Inflatables of Arcata, Calif. both reported a satisfac-tory 2010 in their niche markets, with good reasons to beoptimistic about 2011. Bollinger Shipyards, a majorbuilder in the offshore market also had a good 2010, butis bracing for the impact of the drilling moratorium goinginto 2011. Meanwhile, new yard, Argosy Boat Company,of Pierre Part, La., is still working to establish itself as adiesel-electric, Z-drive towboat builder.

Wing Inflatables builds sponsons for rigid inflatableboats (RIBs) whose missions range from disaster relief andprotecting the U.S. fleet to whale watching excursions.President Bill Wing said “Wing Inflatables has beensteadily growing and 2010 will end well.” The companyexpects stable growth in its core sponson business and haslaunched its newest product, the P-4.7 Combat RubberRaiding Craft (CRRC). The CRRC is used in littoraloperations and can be broken down, folded up and trans-ported.

“As fuel prices continue to rise, we believe more andmore agencies will consider RIBs or inflatable alternativesin lieu of totally rigid constructed boats. The weight sav-ings translates into lower fuel consumption and loweroperating expense,” Wing said. “In boarding situations,RIBs are particularly well-suited because they allow con-tact with the subject vessel without inflicting or incurringdamage and they offer shock mitigation, and flotation ofcourse.”

Above:Production on the floorof All American Marine’sfacilities in Bellingham,Wash.

Right:All American MarinePresident Matt Mullet

All American Marine (AAM)President Matt Mullett said “Westarted 2010 with an encouragingbacklog and the new contracts werecently signed will ensure a steadyworkload lasting well into 2011.”AAM specializes in the constructionof custom aluminum catamarans andmonohulls for survey, research, ferry,patrol, eco-tour, fishing and diveapplications.

“We went back to our roots and arein the process of building severalBristol Bay sternpicker fishing boatsthis year. Our founding partnerworked with our naval architect(Teknicraft Design, Ltd.) to offer anewly engineered design for thisniche market. The fishery hasrebounded, prices are up, buyers arepaying a premium for fish that haveonly been refrigerated and the matu-ration of capital construction fundsare sparking strong interest in newfishing vessel construction.”

There are other interesting high-lights in vessel construction, Mulletsaid. “I have been a bit surprised bythe number of contacts we havemade this year who are looking tostart up new passenger vessel service.Economic hardships and environ-mental concerns may finally be push-ing commuters harder to seriouslyconsider waterborne transit as aviable option.”

Also Mullet said “One market seg-ment that seems to remain isolatedfrom the effects of the recession is theoceanographic survey and researchvessel market. We are speculatingthat the demand for these specializedvessels will only grow as the planningof offshore wind farms commencesand regulations are implemented in

38 MN October 2010

MarineNews YearbookBoatyards 2010

Artist rendition of the USCG's Sentinel Class 154-ft Patrol Boats currently under construction at Bollinger Shipyards.

(Pho

to c

ourt

esy

Bolli

nger

Shi

pyar

ds)

Matt Mullett“I have been a bit surprised by the number of contacts we have made thisyear who are looking to start up new passenger vessel service. ”

the offshore oil fields.”On the other end of the spectrum,

Bollinger Shipyards builds offshoreoil field support vessels and fast mili-tary patrol boats among other typesof vessels and has 12 shipyardsbetween New Orleans and Houston.Benjamin G. Bordelon, ExecutiveVice President, Repair, at BollingerShipyards said “Coming off of adown market in 2009 we finished theyear on a high note with the award ofthree options on our USCG SentinelClass Patrol Boat program. Bollingerentered 2010 with optimism as theoil and gas market showed signs ofrebound.”

“Our new construction backlog wasfairly constant in 2010. We deliveredOPA'90 tank barges to BouchardTransportation and K-SeaTransportation, and multiple DP IIclassed OSV’s. Our backlog wassolidified when we announced theaward of the next generation tugs forCrowley as well as several other bargecontracts. Our workforce will remainstrong for the remainder of 2010.”However, Bordelon said, “As for2011, we are prepared to go througha down market for the majority of ourbusiness segments. The current deep-water drilling moratorium is creatinguncertainty in the market and hascreated a situation that makes it near-ly impossible for companies to makeany future plans. We are also seeingthat the de facto moratorium in theshallow waters is playing a similar rolefor that market.”

From a fledgling yard’s perspective,Dave Reidt of Argosy Boat Companysaid “2010 has been a really difficultyear for us as we spent over 18months finding sufficient funding for

our new yard. As a new start up ship-yard it is difficult to secure customersin such a depressed market. 2011 willbe substantially better, especially

when we prove our fuel savings arenot just speculation, they are real.”Argosy Boat Company builds diesel-electric powered inland river tow-


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Subbase Drydock, Inc. of St. Thomas, USVI

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Love City Car Ferries, Inc. of St. John, USVI

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Borinken Towing & Salvage, LLC of St. Croix, USVI

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MarineNews YearbookBoatyards 2010

40 MN October 2010

MarineNews YearbookBoatyards

In September, the Congressional Shipbuilding Caucushosted a meeting with the Commandant of the CoastGuard, Adm. Robert J. Papp, to discuss the Coast Guard’sship force structure needs, its missions, future threats andthe U.S. shipbuilding industry. Admiral Papp conveyedthe difficulty the Coast Guard has in keeping its majorprograms funded sufficiently. The Admiral discussed spe-cific programs such as the National Security Cutter(NSC), the Fast Response Cutter (FRC) and the OffshorePatrol Cutter (OPC). The Admiral acknowledged that thefleet has grown far too old, citing the High EnduranceCutter (HEC), which has an average age of 41 yearsdespite a life expectancy of 20 years. He called theOffshore Patrol Cutter his “pet project,” and that heintends to make sure this class of cutters is well on its wayin production during his tenure as Commandant. Whilefewer OPCs will be built than the class they will replace,he assured the audience that they will be much more capa-ble. He emphasized that the Coast Guard needs to keepworking to increase its acquisition budget.

The NSC consumes half the entire acquisition budget of$1.4b, making it extremely difficult to include all theitems the Coast Guard needs to meet its various missions.Moreover, the Office of Management and Budget man-dates that the Coast Guard buy each vessel in whole in onefiscal year. One option Adm. Papp proposed was to workfor more flexibility in its acquisitions by spreading fund-ing for vessels over multi years as is the Navy’s practice. Headded that Secretary of Homeland Security JanetNapolitano has opened discussion with OMB regardingthis approach. Underscoring the fiscal constraints on theCoast Guard is its polar icebreaker fleet, which theAdmiral stated is a program that clearly needs attention.Although the USCGC Healy is operating in the Arctic,there is currently no heavy duty icebreaker capabilityavailable to the Coast Guard, and the Admiral added thatthe Antarctic region cannot be overlooked. There is cur-rently no projection for new icebreakers in the budget andwhile Congress added $57m to overhaul the Polar Star, adecision has to be made regarding the future of this fleet.

Coast Guard Commandant on Ship Budget

Above:Wing Inflatables President Bill Wing.

Left:Wing Inflatables Factory in Arcata, Calif.

(Photo courtesy Wing Inflatables)


2010boats with Z-Drive azimuththrusters. “We stay focused on 1,200hp to 6,000 hp vessels for the Inlandwaterways. Our new unique designwill save operators at least 30% perday in fuel cost.”

The yard’s plan is to get in on anemerging market. “Diesel electricand Z- dive technology will drive thenext round of new vessels,” Reidtsaid. “Things change very slowly inour market but the time has comefor more aggressive build strategiesand use of ‘green’ technology. Thenext big market we feel is going to beLNG barges.”

Reidt also believes that changingCoast Guard rules for inspected ves-sels will create a strong need forrefurbishing and repairs of olderboats. But he doesn’t think much ofhow the government in general hassupported the maritime industry.

“MARAD is totally unavailable forthe little guy,” Reidt said. “Our gov-ernment talks a great game aboutthings like the Great MarineHighway Initiative, which to datehas done nothing but line politi-cians’ pockets. The investment inour water borne systems and theirvessels would return more benefits,such as immediate increases in highpaying blue collar jobs, thousands ofconstruction jobs fixing the deterio-rated condition of our locks anddams, than anything else inCongress.”

“Without barges and towboats,”he said “a single loaf of bread couldcost over $55 just to get the grain toa mill to turn it into bread.”

MN

42 MN October 2010

I left the Theresa Wood and her tow at Lock 10 inGutenberg, Wis. on the upper Mississippi River. My AEPRiver Operations contact, Sharon Tharp, who had pickedme up at the St. Louis airport and delivered me to the boatfive days earlier, was again waiting by the company SUV.By afternoon we had driven to Pekin, Ill. to meet theThomas E. Erickson, which I would ride down the IllinoisRiver until I was once again on the Mississippi.

Even though Pekin is a small, blue-collar town, the kindof town Bruce Springsteen would sing about, finding thetug company that was to deliver me to the Thomas E.Erickson wasn’t easy. After driving up and down one of theroads running along the banks of the Illinois River, westopped at a gas station to ask for directions. One mantold us he had no idea about any tug company, but weshould speak to his friend who knew every person and

A Day in the Life of a Towboater ... Part III:

Old SaltsLast August MarineNews’ Raina Clark began the story of her eight day trip on the Mississippi and Illinois Riverson the towboats Theresa Wood and Thomas E. Erickson, both chartered by AEP River Operations and owned

by Marquette Transportation. To date we’ve examined the working lives of the crew, how the relationshipbetween the boats and the lock facilities has changed since 9/11, a river boat captain who built his crew into a

tightly knit team and the uniqueness of the Upper Mississippi. In this final installment, we relay the experience ofa first time towboater, the tales of a salty captain and being held up on the river waiting on failing infrastructure.

Story & Photos by Raina Clark

& NewCooks

A view of the Issaquena as the Thomas E. Ericksonheld its position alongside and waited in a line-up oftowing vessels to pass through the Melvin Price Locks.


business Pekin had seen in the last 30years. His friend in turn told us, “I’velived I this town my whole life and I’venever heard of a tug boat company.”

It wasn’t surprising, considering howunaware the general population is ofmaritime commerce, even in its ownbackyard. We finally found the com-pany behind a non-descript chain linkfence hung with black and white DHSnotices. We’d already passed it twiceand I decided Joe Q. Public could beforgiven for not knowing the tug boatcompany even existed. Ultimately,however, the search was in vain. Wewere told the tug would not be able todeliver me to the towboat after all.Security reasons.

Plan B was to wait further up riverwhere crew members from theThomas E. Erickson picked me up ina flat bottomed skiff. Little was saidduring my first 24 hours on the boat.If I was unsure of what to do withmyself, with no specific responsibilityother than to observe life on a tow-boat, the crew was even less sure ofwhat to do with me. I spent the nextmorning wandering the decks with mycamera and seeing few crewmembersuntil after lunch when I visited thegalley. Sheila Prince, the cook, gave mea smile and asked if I was hungry witha sweet Tennessee drawl. Even thoughthe crew had already eaten and she wassurely on her break, she started listing

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the dishes she’d prepared since that morning: I ate whileSheila told me about the crew.

Almost everyone aboard was relief crew, including her-self, filling in for the regulars who were taking their timeoff. They were a very quiet bunch, keeping to themselves,she told me. But the regulars she had met when she firstcame aboard were just as loud as the crew I’d met on theTheresa Wood, “always laughing and carrying on and teas-ing each other.”

I understood then why my first day on the Thomas E.Erickson was nothing like my introduction to the TheresaWood. It was the difference between a regular group oftowboaters and a crew in transition; a group of people

who knew what to expect from each other and their jobsand one that has yet to chart it all out.

Sheila was brand new herself, just finishing up her firsttrip on a towboat. Her husband, a preacher in Tennessee,had become very sick with diabetes. They knew she wouldneed to find a way to be self-supporting as his illness pro-gressed, so she applied for a cook position with MarquetteTransportation, listing her qualifications as cooking forher family and working at a kindergarten. She was terri-fied at first, she said, especially of the Thomas E.Erickson’s relief captain.

“I was scared to death of John when I first came on,”Sheila said. Captain John Towns looked to her likeYosemite Sam with his great long beard and gruff appear-ance. Although the boat was a far cry from her kinder-

garten, the job wasn’t much different than cooking for herfamily. And, she said, “John is really a very nice man.”After a couple days of eating Sheila’s cooking, Towns said-he would have requested her as regular cook if he was aregular captain.

Unlike Sheila, Captain Towns has been on the riverssince 1971. He started when minimum wage was 90 centsan hour and came out on the river for $17.50 a day. Upin the pilothouse, on the last day of my trip, he told mehe was born and raised in Southern Illinois and was in theArmy for four years and the National Guard out ofPaducah for another six. He traveled the world with themilitary and has driven the outer rim of Australia and allthrough Alaska on bikes (of the Harley Davidson persua-

Relief cook Sheila Prince in thegalley of the Thomas E. Erickson.

Relief Captain John Towns in the pilothouse of the Thomas E. Erickson.

44 MN October 2010

Captain Towns had been told there would be 12 boatswaiting to get through the Melvin Price Locks ahead of

us and we were in for a 16 hour delay. Each boatwould have to break its tow to get through the 600-ftchamber because the 1,200-ft chamber was down.

Twenty-four hours later the Thomas E. Erickson heldits position alongside the Issaquena,

another Marquette Transportation towboat, at the edgeof the river, still waiting to get through the lock.

Now we were told the 600-ft lock was also down.

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sion). In an almost Forest Gump turn of events, in 1969Towns said he ended up at the most famous hippy eventin history while he was on R&R from the Army. He was17 years old and went to visit a friend who told him therewould be lots girls hanging around his farming communi-ty.

“When I got there,” Towns said, “no one was around.My friend’s grandmother said everyone went to this fielddown the way. So we went to find the girls.” And that’show John Towns went to Woodstock.

After the military, Towns’ first trip on a towboat was 56days long, “back when they’d let you ride as long as you’dstay on,” he said. “When I got off I said ‘if this is tow-boatin’ they can go to hell.’” But he was 21 years old andafter a couple weeks back home he was broke.

“They called me again and I said, ‘Yeah, I’ll go out onemore time.’” Towns smiled, holding up one browned andsun-freckled finger. Here he is today, looking forward toretirement and taking on relief work when he’s not at bikerallies.

The Thomas E. Erickson eventually took me back to thesame stretch of the Mississippi where I’d boarded theTheresa Wood, several days earlier. Captain Towns hadbeen told there would be 12 boats waiting to get throughthe Melvin Price Locks ahead of us and we were in for a16 hour delay. Each boat would have to break its tow toget through the 600-ft chamber because the 1,200-ftchamber was down.

Twenty-four hours later the Thomas E. Erickson held itsposition alongside the Issaquena, another MarquetteTransportation towboat, at the edge of the river, still wait-ing to get through the lock. Now we were told the 600-ftlock was also down. Delays at the lock are common place,

but before the Melvin Price Locks replaced Lock 26, it waseven worse, Towns said. Lock 26 only had one chamberand Towns once waited 35 days to get through.

“All the crew did was sooge and chip and paint,” he said.It may have been painfully boring for the crew, but

preparing to go through Lock 26 turned the pilots’ hairgray. The lock was built at such a place on the river thatvessels had to flank (turn and slide sideways with the cur-rent) just before lining up to go through.

“It was hell getting through there,” Towns said. My plan to travel through the locks was eventually

scrapped. Sharon drove to where the boat was holdingposition near a highway paralleling the river. Looking outfor Sharon’s car I stood on the deck with Sheila who wasalso waiting to be picked up. A crew van was due to takeher to the company’s office where her husband wouldmeet her and take her the rest of the way home. Sheilawouldn’t be to the office for several more hours, but herhusband, who couldn’t wait at home any longer, hadalready started driving to meet her.

I crossed the tows of the Thomas E. Erickson and theIssaquena and was ferried across a stretch of shallow waterin a little skiff and finally climbed up a rock embankmentto Sharon’s waiting car. The relief mate who pulled theskiff across with a rope told me he’s gotten off boats inmany more creative ways. It reminded me of the storiesCaptain Rusty of the Theresa Wood told me about wear-ing plastic garbage bags around his legs to hike throughmuck between a skiff and shore. When it’s your time to gohome, he told me, you do what you have to do.

I’d been home for a month when I got a call from Sheila.“You’ll never guess where I am,” she said. I figured she wasdone with her two weeks off and already in the middle of

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her second trip. “They put me on the Theresa Wood,” shesaid. “Captain Rusty asked me to come on regular.”

“That’s really great news!” I told her, happy for both herand the rest of the crew on the Theresa Wood. I could seethem enjoying all the twice-baked potatoes, pork chops,

steak and eggs, fresh pies and big chocolate cakes theycould eat, and Captain Rusty with his tender grilledchicken breast on a bed of fresh greens. A good crew is asecond family and I know Sheila and the rest of the crewof the Theresa Wood are looking out for each other. MN

Raina’s RideThe crew of the Issaquena andthe Thomas E. Erickson lower a

skiff to ferry Raina to her road-side pick-up.

48 MN October 2010

MetalCraft MarineDelivers FireStorm 70

MetalCraft Marine of Kingston,Ontario & Clayton, N.Y. delivered anew CBRNE FireStorm 70 to

Jacksonville Fire/Rescue, Fla. The$4.7m dollar vessel was purchasedwith a 2008 Port Security Grant.

Specifications/Main Particulars:Length, o.a. . . . . . . . . . . . . . .70 ft, flush deckBeam, o.a . . . . . . . . . . . . . . . . . . . . . .22.8 ftDraft . . . . . . . . . . . . . . . . . . . . . . . . . . .3.5 ftSpeed . . . . . . . . . . . . . . . . .41 kts fully loadedEngine . . . . . .Quad Caterpillar C18 @ 1015 hp Jets . . . . . . . . . . . . . . . .Quad Hamilton HJ403Pumps4x Hale 8 FKF pumps producing over14,000 gpm at 150 psiMonitors1x Remote Stang, 2x remote Elkhart and2x manual Elkhart’s

NY Power Authority’sHavasu II Christened

The New York Power Authority’snewly constructed pedestal cranebarge was christened at Great LakesShipyard, Cleveland, Ohio. Thebarge will be used for deploymentand retrieval of an ice boom placedacross the Niagara River at Buffalo,N.Y. to prevent ice from blocking thehydro-electric water intakes of theNew York Power Authority. BristolHarbor Group Inc., Bristol, R.I.,designed the barge and acted as itsrepresentatives during construction.

Specifications:Length, o.a. . . . . . . . . . . . . . . . . . . . . . .80 ftBeam . . . . . . . . . . . . . . . . . . . . . . . . . . .34 ftDepth . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 ftDesign draft . . . . . . . . . . . . . . . . . . . . . .2.5 ftDisplacement . . . . . . . . . . . . . . . . .124 LT(est)Watertight door . . .1x Nabrico, DF-605-2460LPSpuds and Spud Wells . . . . . . . . . . .4x customCrane . . . . . . . . . . . . . . . . . .1x TEREX, HC-80Winches .E&K, Eagle 3 drum model 600 winchesBilge alarm system . . . . . .1x Julian McDermottBilge alarm sensors 10x Gems Sensors, LS-270

Another Truckable Tugfrom Mid America

Mid America Shipyards LLC, ofFort Smith, Ark., has delivered anoth-


er of its truckable tug boats. The ves-sel has been shipped to a project inup-state New York. This tug boat wasconstructed in 30 working dayswhich was done in half the time ofMid America’s last tugs. The J-KRABis the seventh vessel to leave the yardso far this year. John Deere 6081'sgive the vessel 660 hp.

Specifications:Length . . . . . . . . . . . . . . . . . . . . . . . . .25.5 ftBeam . . . . . . . . . . . . . . . . . . . . . . . . . . .14 ftHull depth . . . . . . . . . . . . . . . . . . . . . . . . .5 ftMax draft . . . . . . . . . . . . . . . . . . . . . . . .3.3 ftPropulsion . . . . . . . . . . . . . . . . . . .Twin screwTwin disc transmissions . . . . . . . . . . .5075 SCPropellers . . . . . . . . . . . . . . . . . . . . . . . .34 inPropeller Shafts . . . . . . . . . .3 in stainless steelVessel weight . . . . . . . . . . .Approx. 41,000 lbs

Tug Boat Oyster Creek

Chesapeake Shipbuilding launchedthe new tug boat Oyster Creek. TheOyster Creek is the fifth of six tug-boats that Chesapeake is building forVane Brothers of Baltimore, Md. Thetug will now go into its outfittingstages. Each of the six tugs are 94 ft

long and have a 32 ft beam. They areequipped with a single drumhydraulic winch from JonRie of N.J.and twin Caterpillar 3512 mainengines capable of producing a com-bined 3,000 hp. The Oyster Creekwas designed by naval architectEntech & Associates Inc. andChesapeake Shipbuilding Corp.

Specifications/Main Particulars:Length . . . . . . . . . . . . . . . . . . . . . . . . . .94 ftBeam, molded . . . . . . . . . . . . . . . . . . . . .32 ftDraft . . . . . . . . . . . . . . . . . . . . . . . . . .11.5 ftDepth, molded . . . . . . . . . . . . . . . . . . .13.3 ftTowing winch . . . . .JonRie Intertech Series 500Construction . . . . . . . . . . . . . . . .Welded steelDisplacement . . . . . .331 Long Tons (light ship)Main engines . . . . . . . . . .2x Caterpillar 3512C, . . . . . . . . .1,500 hp each at 1,800 rpm, Tier II

Generator . . . . . . .2x John Deere 6068, 99 kWShafts . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 inPropellers . . . . . . . . . .2x 4-blade 87 in x 63 in, Steering . . . . . . . . . . . . . . . . . .Huber elec/hydSewage . . . . . . . . .Owens Kleen Tank Model B

SeaArk Delivers Vessel to National Park ServiceSeaArk Marine, Inc. has delivered a 42-ft Dauntless class vessel to

Cumberland Island National Seashore in St. Mary’s, Ga. The vessel,Loggerhead, is tasked with transporting park rangers, personnel and lightequipment from St. Mary’s to Cumberland Island and jurisdictional waterswithin the Park Service. The SeaArk 42-ft Dauntless is constructed of all-welded marine grade aluminum. The design incorporates a two-man pilot-house and a 20-passenger aft crew cabin. The Loggerhead will be replacingthe current service vessel, General Greene, also built by SeaArk Marine.

Specifications/Main Particulars:Length, o.a. . . . . . . . . . . . . . . . . . . . . . .42 ftLength, w.l. . . . . . . . . . . . . . . . . . . . . . .38 ftBeam . . . . . . . . . . . . . . . . . . . . . . . . . . .14 ftDraft hull, max . . . . . . . . . . . . . . . . . . . . .4 ftDead rise . . . . . . . . . . . . . . . . . . .22 degreesDisplacement . . . . . . . . . . . . . . . .28,601 lbsFuel . . . . . . . . . . . . . . . . . . . . . . . . . .500 galSpeed, max . . . . . . . . . . . . . . . . . . . . .33 ktsSpeed, service . . . . . . . . . . . . . . . . . . .30 ktsRange . . . . . . . . . . . . . . . . . . . . . .300 milesMain engines . . . .Twin-C-9 Caterpillar dieselsMarine gears . . . . . . . . . . . . . . . . . .Twin discNavigation equipment . . . . . . . . . . . . .FurunoRadios . . . . . . . . . . . . . . . . . . . . . . . . .ICOMGenerator . . . . . . . . . . . . . . .Northern LightsHVAC . . . . . . . . . . . . . . . . . . . . . . .Cruise Air

50 MN October 2010

Bruno Appointed Chairman ofMarine Board, NRC

Dr. Michael Bruno, Dean of theSchaefer School of Engineering andScience at Stevens Institute ofTechnology, has been selected asChairman of the Marine Board,under the auspices of theTransportation Research Board(TRB) and the National ResearchCouncil (NRC).

Macklin Ops Manager, Cosalt Wind Energy

Cosalt Wind Energy has appointedAdrian Macklin as its new OperationsManager. Macklin first joined Cosaltin 2001 as Manager of the Grimsbybranch and was promoted to NorthEast Area Manager.

Hahne Heads Resolve’s New Orleans Base

Resolve Marine Group has opened aNew Orleans base of operations at643 Magazine St., Suite 304, headedby former Coast GuardsmenMatthew Hahne. Hahne joins thecompany as Director of RegulatoryAffairs and will focus on OPA-90implementation, offshore immediateresponse regulations and tank bargeresponse, among other marine servic-es for tanker, cargo and other largecommercial vessels.

President of Childress MarineLaunches Foundation

Don Childress announced the

launch of The Childress Foundationand Research Group, Inc. Based inGulf Shores, Ala., The ChildressFoundation and Research Group'smission is to protect our marine envi-ronment by building awareness andpromoting public engagement toaddress environmental issues.Childress is the President of ChildressMarine, Inc. which builds and repairsvessels subject to U.S. Coast Guardinspection.

Reeves Joins Robert Allan Ltd.Henry Reeve, P.E. (BASc, UBC

Mech 95, Masters, NA and OffshoreEngineering, Berkley ’97) has joinedRobert Allan Ltd. as a Senior NavalArchitect. Reeve’s areas of expertiseinclude hydrodynamics and motions,mooring, resistance predictions, sta-bility (ship and offshore), model test-ing, CFD analysis, regulatory andclassification issues and vessel survey.

Godwin Pumps Mourns Loss ofJoseph Abbott, Jr.

Godwin Pumps, worldwide manu-facturer and supplier of the Dri-Prime automatic self-priming pump,shared the news of the passing ofJoseph L. Abbott, Jr., the company’sNational Sales Manager. Joining theGodwin Pumps team in 1989,Abbott brought sales and manufac-turing expertise to the company fromthe sewer rehabilitation industry.Abbott helped build Godwin’s distri-

bution network throughout theUnited States and Canada, managedproduct pricing and oversaw bids.

Bouchard Transportation Hires Zash

Bouchard Transportation Co., Inc.announced that Matt Zash has joinedits team in the capacity of BusinessDevelopment / Sales. Zash joinsBouchard after graduating fromDuke University in 2006 with a bach-elor’s degree in Economics andHofstra University in 2008 with amaster’s degree in Education.

Small Promoted at Bay Diesel & Generator

Bay Diesel & Generator promotedJohn Small to the position of InsideSales Coordinator. Small will supportall of Bay Diesel & Generator's salesstaff in the marine, industrial andpower generation markets. Servicingthe Mid-Atlantic States, Small will bebased out of the Bay Diesel &Generator office at 809 Granby St.,Norfolk, Va.

New St. Lawrence Seaway BoardMembers & CEO

The St. Lawrence SeawayManagement Corporationannounced the following recentchanges to its Board of Directors. IanMacGregor assumed the position ofChair of the Board on August 18,2010. MacGregor replaces Guy

Dr. Bruno Macklin Hahne Childress

PEOPLE & COMPANY NEWS

Reeve Abbott

Véronneau, who recently left theBoard after serving as Chair for thepast four years. MacGregor is a direc-tor of Seaway Marine Transport andChairman of Golden Star ResourcesLtd. David L. Muir, FCA joined theBoard of Directors in May 2010 asthe representative of the FederalGovernment. Muir is Senior VP,Collins Barrow Ottawa ManagementConsultants Inc. Jonathan Bambergerjoined the Board of Directors onAugust 28th as the industry represen-tative for the Corporation’s “OtherMembers.” Bamberger is President,Redpath Sugar Ltd., based inToronto, and Vice President,Commodities, American SugarRefining Inc. The St. LawrenceSeaway Management Corporationalso announced the appointment,effective November 1, 2010, ofTerence F. Bowles as President andChief Executive Officer to replaceDick Corfe who has served in theposition since 2003. Bowles served asPresident and CEO of the Iron OreCompany of Canada from 2001 untilearly 2010.

Second Sentinel-Class CutterContract Option Awarded

The Coast Guard awarded a$166.1m contract option to BollingerShipyards of Lockport, La., onSeptember 14 to begin production offour Sentinel-class Fast ResponseCutters (FRCs). This option award

brings the total number of FRCsunder contract with Bollinger toeight with a current contract value of$410.7m. The current FRC contractcontains options for up to 34 cuttersand is worth up to $1.5b if all optionsare exercised.

ACL to Expand Warehouse SpaceAmerican Commercial Lines Inc.

(ACL) has entered into an industrial

development agreement with CNWResources of Naperville, Ill., aprovider of metallurgical, chemicaland foundry products. Under theindustrial development agreement,ACL will construct a new warehouseat its barge terminal in Lemont, Ill.,located 25 miles southwest ofChicago, to store and transport prod-uct for CNW. The new multi-pur-pose warehouse will significantly


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Zash Small Second Sentinel-Class Cutter ACL expands warehouse space

52 MN October 2010

increase the indoor storage capacity ofthe company's Lemont terminal.ACL's existing 48,000 sq ft climate-controlled warehouse in Lemont is inits third year of operation. As a resultof the new industrial developmentagreement with CNW, ACL will add20,000 sq ft of new indoor storagecapacity in Lemont.

Towboat Emission ReductionProgram Complete

On September 24, officials ofIngram Barge Company and theMississippi River Corridor –Tennessee (MRCT) announced theresults of an air emissions reductionprogram for towboats operating onthe Mississippi River. Funding forthis effort was awarded to MRCT bythe U.S. Environmental ProtectionAgency as part of the Clean DieselEmerging Technologies Program. Thediesel oxidation catalyst (DOC) unitswere manufactured byEnvironmental Solutions WorldwideInc., a retrofit technology provider.Testing of the units was performed byEmisstar, an energy and emissionsconsultancy. Ingram participated inthe program by retrofitting six tow-boats in its inland marine fleet with aunique DOC and closed crank case

emission control system. The devicefits inside the exhaust system of atowboat engine and reduces theamount of pollution resulting fromburning diesel fuel.

Rapp Hydema Winches for AlaskaResearch Vessel

Rapp Hydema NW has beenawarded a major contract for supplyof a complete suite of winches includ-ing oceanographic traction, hydro-graphic and CTD winches, two stor-age reels, side-handling boom, con-trol systems and other equipment forthe Alaska Regional Research Vessel(ARRV). The vessel is being built atMarinette Marine Shipyard. In addi-tion, Rapp was awarded integrativeservices as Scientific HandlingServices Integrator (SHSI) for theproject. The vessel is to be operatedby the University of Alaska-Fairbanks.

Furuno: Multi-Million Dollar USCG Contract

Furuno USA, Inc. has been award-ed a multi-year, multi-million dollarU.S. Coast Guard contract. The con-tract is for the replacement of up to200 aging Radars on the USCGCutter Fleet. The Cutter Fleet con-sists of a variety of vessels including,


Markey Machinery DEPCF-42Winch for Offshore Tug

Markey Machinery Company ofSeattle, Wash. recently delivered amodel DEPCF-42 40HP ElectricRender/Recover Winch to EasternShipbuilding for installation on thenew Bisso Offshore tug, Beverly B.This hawser winch features capaci-ty for 500 ft of 8-in soft-line,proven Render/Recover capabilityto 180 ft/min. line-speed and abrake that will hold 150 tons. Allelectric controls and a line-tensiondisplay system with data-loggingrounds out the system. A Markeytype CEW-60 2-Speed ElectricCapstan on the stern is providedfor general line-handling.



87-ft coastal patrol boats, 140-ft icebreaking tugs, 160-ft inland buoytenders, 225-ft seagoing buoy tendersand 399-ft nuclear icebreakers. Eachof these vessels will receive replace-ment IMO Radars that consist of sin-gle or multiple Black Box Radarprocessors, a 6.5-ft open array anten-na and single or multiple displays.

Jo-Kell Ranked Among FastestGrowing Companies

Jo-Kell Inc., an electrical distribu-tion and engineering company, hasearned a position on the 2010 Inc.5000 annual ranking of the fastest-growing private companies inAmerica. As an Inc. 5000 honoree,Jo-Kell shares a pedigree with suchnotable alumni as Inuit, Zappos,Under Armour, Microsoft, Visaamong others.

Ellicott Dredges 125th Anniversary

Ellicott Dredges, founded in 1885,celebrated its 125th anniversary bytaking a dinner cruise around the Portof Baltimore aboard the turn of thecentury paddlewheel riverboat TheBlack-Eyed Susan. Almost 150 peoplecelebrated Ellicott's 125th anniver-sary including employees, customers,board members, investors and gov-ernment officials. Ellicott's President,Peter Bowe, attributed Ellicott'slongevity to four factors: buildinggood products, serving customerswell, having good people and man-

agement and having adequate capitalto back it all up.

ACMA Relocates Corp. OfficeAlan C. McClure Associates

(ACMA), a naval architecture andengineering firm, recently relocatedits corporate office to 2929 Briarpark,Suite 220, Houston, Texas 77042.The company’s new headquartersoccupies 6000+ sq ft and includes anexpanded drafting area as well as aroom dedicated to housing the com-pany’s extensive computer systemsthat provide specialized analysis in-house and that can be accessed fromremote locations.

Donjon-SMIT Relocates OfficesDonjon-SMIT, an OPA-90

alliance, has moved its principle officeto 909 North Washington St., Suite300, Alexandria, Va. 22314. The relo-cation to larger facilities will supportadditional staff required to meet the

new U.S. Coast Guard Salvage andMarine Firefighting regulations. Allphone numbers, including the emer-gency number, remain the same. Thenumber is (703) 299-0081.

TRAC Ecological ProductsRepresented by PAC West

TRAC Ecological Products hasappointed Pac-West Marketing torepresent its product line in the west-ern U.S. and British Columbia.Marine growth and scale build-up aremajor causes of water-cooled equip-ment failure. Traditional methods ofcleaning (such as mechanical brush-ing or harsh acids) can damage equip-ment and are potentially harmful tothe user and the environment. TRACEcological has developed a line ofsafe, biodegradable chemicals thatefficiently and economically dissolvescale, barnacles, zebra mussels, calci-um, rust, lime and other mineraldeposits that can reduce water flow.

STIDD Seats On 2010 ISS Design Award Finalist Ergonomic seating from STIDD Systems is installed on the Miss Lisa and

Sycara IV, finalists for International Superyacht Society (ISS) 2010International Design Awards. The 92-ft Miss Lisa from Citadel Yachts is afinalist for an ISS award in the “Best Power” category for superyachts from24 to 40 meters and 151-ft Sycara IV from the Burger Boat Company is afinalist in the “Best Power” category for superyachts from 40 to 60 meters.

54 MN October 2010

3D Measure Inc.19 Loyola Terrace, Newport, RI www.3dmeasure.com Andrew Williams • tel: 401-848-4575email: [email protected] hull laser scanning

Allswater Marine1111 Bedford Highway, Halifax, NS B4A1B9Canadawww.allswater.com C. MacEachern • tel: 902-444-7447 Ext. 154email: [email protected] provides comprehensive marine engi-neering services to the marine and offshore indus-tries

Autoship Systems CorporationSuite 1451, United Kingdom Building409 Granville St.Vancouver, BC V6C 1T2 Canada www.autoship.com Kal Uppal • tel: 604-254-4171email: [email protected] full line of marine CAD/CAM software assistsnaval architects and builders in the design andconstruction of vessels from yachts and pleasurecraft to large ships

Bray Yacht Design & Research Ltd.P.O. Box 75175, White Rock, BC V4B 5L4 Canadawww.brayyachtdesign.bc.ca Patrick Bray • tel: 604-531-8569email: [email protected] architectsProducts: Research, commercial design, yachtdesign

C. Raymond Hunt Associates5 Dover St., New Bedford, MA 02740www.huntdesigns.comtel: 508-717-0600email: [email protected]. Raymond Hunt Associates offers a full range ofdesign, naval architecture and engineering servic-es to the marine industry, commercial and militaryoperators, private clients and manufacturers

DLBA Robotics, Ltd.1320 Yacht Dr., Chesapeake, VA 23320 www.dlbarobotics.com Doug Blount • tel: 757-543-1300email: [email protected] CAD/CAM to provide CNC machined cast-ing patterns and large composite patterns

Entech & Associates Inc.P.O. Box 1470, Houma, LA 70361www.entech-associates.comFrank J. Basile P.E. • tel: 985-868-5524email: [email protected] architecture and marine design

HydroComp, Inc.13 Jenkins Court, Durham, NH 03824www.hydrocompinc.comtel: 603-868-3344email: [email protected] provides naval architects and shipbuilders with resistance and propulsion analysissolutions of the highest technical excellence

Jensen Maritime Consultants, Inc.1102 SW Massachusetts St., Seattle, WA 98134

www.jensenmaritime.comtel: 206-284-1274email: [email protected] architecture & marine engineering firm

JMS Naval Architects & Salvage Engineers34 Water St., Mystic, CT 06355www.jmsnet.comtel: 860-536-0009email: [email protected]: A specialty maritime engineering firm withexpertise in naval architecture, marine engineer-ing, shipboard operations, salvage engineeringand marine science

Kubotek USA2 Mount Royal Ave., Marlborough, MA 01752 www.kubotekusa.com Dan Baar • tel: 508-229-2020email: [email protected] based 3D engineering software tools.

Lay, Pitman, and Associates, Inc.13891 Atlantic Blvd., Jacksonville, FL 32225 www.laypitman.com Matt Pitman • tel: 904-221-7447email: [email protected] architect, marine design & engineering firm

Maintech Maintenance Inc.1795 N. Fry Rd., Katy, TX 77449 www.maintech-usa.com Rob Peters • tel: 832-242-4283email: [email protected] CMMS, inventory control, tracking

NEi Software5555 Garden Grove Blvd., Westminster, CA 92683 www.nenastran.comDave Buckman • tel: 714-899-1220 Ext. 205email: [email protected] Nastran, FEMAP, NEi Fusion, NEi Explicit,MAESTRO

Robert Allan Ltd.230-1639 2nd Ave., W Vancouver, BC V6J 1H3,

Canadawww.ral.catel: +1-604-736-9466email [email protected] Robert Allan Ltd. is Canada's most senior privatelyowned consulting naval architectural firm, estab-lished in Vancouver, BC in 1930

Simerics, Inc.303 Williams Ave., Ste 123, Huntsville, AL 35801 www.simerics.com Tom Colbey • tel: 256-489-1480email: [email protected] is a CAE software developer providingfluid flow analysis solutions for the fluid pumps andmotors industry

ShipConstructor Software Inc.#304 - 3960 Quadra St., Victoria, BC V8X 4A3,Canadawww.ShipConstructor.com Tracy Coghlin • tel: 250-479-3638email: [email protected] is a leader in CAD/CAM softwarefor the shipbuilding and offshore industries

Spatial Integrated Systems, Inc.2815 Rouse Road Ext., Kinston, NC 28504 www.sisinc.org Ken Ferguson • tel: 252-522-1456 Ext. 103email: [email protected] products and services

Think3, Inc.7723 Tylers Place Blvd., Suite 106, Cincinnati, OH www.think3.com John Collins • tel: 312-480-0076email: [email protected] Engineering, ThinkDesignProfessional, TD PLM

Timothy Graul Marine Design211 North Third Ave., Sturgeon Bay, WI 54235tel: 920-743-5092 email: [email protected] www.timgraul.comNaval architects & marine engineers

DIRECTORY: CAD/CAM SOFTWARE & DESIGN

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Offshore Rig Day RatesFloating Rigs Rig Type Rigs Working Total Rig Fleet Average Day RateDrillship < 4000' WD 6 rigs 8 rigs $237,900.00Drillship 4000'+ WD 35 rigs 45 rigs $420,324.13Semisub < 1500' WD 10 rigs 18 rigs $300,278.57Semisub 1500'+ WD 67 rigs 85 rigs $311,396.89Semisub 4000'+ WD 74 rigs 90 rigs $397,858.97

Jackup Rigs Rig Type Rigs Working Total Rig Fleet Average Day RateJackup IC < 250' WD 35 rigs 52 rigs $84,708.33Jackup IC 250' WD 39 rigs 65 rigs $98,574.84Jackup IC 300' WD 86 rigs 124 rigs $108,101.69Jackup IC 300'+ WD 111 rigs 142 rigs $143,495.57Jackup IS < 250' WD 5 rigs 7 rigs —Jackup IS 250' WD 8 rigs 10 rigs $137,000.00Jackup IS 300' WD 2 rigs 5 rigs $60,300.00Jackup IS 300'+ WD 0 rigs 3 rigs —Jackup MC < 200' WD 3 rigs 16 rigs $30,333.33Jackup MC 200'+ WD 12 rigs 28 rigs $48,666.67Jackup MS < 200' WD 2 rigs 2 rigs —Jackup MS 200'+ WD 4 rigs 19 rigs $77,813.33

Other Offshore Rigs Rig Type Rigs Working Total Rig Fleet Average Day RateDrill Barge < 150' WD 18 rigs 39 rigs —Drill Barge 150'+ WD 6 rigs 9 rigs $77,000.00Inland Barge 39 rigs 74 rigs $45,243.75Platform Rig 147 rigs 250 rigs $44,463.33Submersible 0 rigs 6 rigs —Tender 24 rigs 32 rigs $117,780.00

Source: Rigzone

Offshore Rig Fleet by Region

Region % No.

Africa – West 87.0% (47/54)Asia – SouthEast 83.5% (71/85)Europe - North Sea 90.1% (64/71)Mediterranean 52.4% (11/21)MidEast - Persian Gulf 78.4% (76/97)N. America – Mexico 66.7% (22/33)N. America - US GOM 63.8% (51/80)S. America – Brazil 83.9% (52/62)

Source: Rigzone

Offshore Rig Utilization by Type

Type % No.

Drill Barge 80.0% (8/10) Drillship 76.5% (39/51) Jackup 77.5% (274/363) Semisub 85.1% (143/168) Submersible 0.0% (0/1) Tender 80.0% (24/30)

Bunker FuelPort IFO 380 IFO 180 MDO Del. DateCorpus Christi 460.00 495.00 720.00 D 2010-09-24Houston 435.00 460.00 — W 2010-09-24

Source: BunkerIndex.com - http://www.bunkerworld.com/markets/pricesPort IFO380 IFO180 MGO MDO Barge UpdatedNew York 455.00 476.00 — 722.50 $7.50 Sep 24Houston 438.50 468.00 — 692.50 $7.00 Sep 24Los Angeles 443.00 470.50 703.00 712.50 $5.80 Sep 24

Source: Bunkerworld.com - http://www.bunkerworld.com/markets/surcharges/tsa#

TSA SurchargeWest CoastDate $/MT ch/$ ch/%Sep 20 452.50 -1.50 -0.3Sep 13 454.00 -2.00 -0.4Sep 6 456.00 +12.50 +2.8Aug 30 443.50 +1.00 +0.2Aug 23 442.50 -3.00 -0.7Aug 16 445.50 -24.50 -5.2Aug 9 470.00 +4.50 +1.0Aug 2 465.50 +1.50 +0.3July 26 464.00 +14.00 +3.1July 19 450.00 +9.00 +2.0July 12 441.00 +11.00 +2.6July 5 430.00 -24.00 -5.3

East CoastDate $/MT ch/$ ch/%Sep 20 459.00 -1.00 -0.2Sep 13 460.00 +1.50 +0.3Sep 6 458.50 +4.00 +0.9Aug 30 454.50 +6.00 +1.3Aug 23 448.50 -3.00 -0.7Aug 16 451.50 -15.50 -3.3Aug 9 467.00 +4.50 +1.0Aug 2 462.50 +6.00 +1.3July 26 456.50 +6.00 +1.3July 19 450.50 +6.00 +1.3July 12 444.50 +16.50 +3.9July 5 428.00 -24.00 -5.3Source: Bunkerworld.comhttp://www.bunkerworld.com/markets/surcharges/tsa#

Indicative World Steel Prices

Indicative prices ChangeSBB HRC world price $/t 684.846 +20SBB Rebar world price $/t 637.756 +31SBB World Price Tracker 237.461 +6

Source: Steel Business Briefinghttp://www.steelbb.com/steelprices/

Source: Charts courtesy of Waterborne Commerce Statistics Center, New Orleans, La.(http://www.iwr.usace.army.mil/ndc/wcsc/wcsc.htm)

BY THE NUMBERS


56 MN October 2010

Hydrocomp

Autohydro from AutoshipAutohydro is a complete hydrostatics and stability calcu-lations program for naval architects, ship designers andmarine engineers. A true floating simulator, Autohydroreports the reaction of the model to various conditionssuch as a loading configuration, a damage situation, con-ditions involving outside forces, wind or high speed turn-ing momentum or some combination of these. Autohydrocan also be used to obtain hull form characteristics andcapacities. Vessel attitude is displayed graphically and intext on the screen. Report information, text and graphs,can be shown on the screen, edited, printed, saved orexported to other Windows applications.

http://cadcam.autoship.com

PropElements from HydroCompPropElements is a new software product fromHydroComp for detail propeller design and analysis.PropElements provides the ability to uniquely capture theperformance of a particular propeller on a particular ves-sel and provides a measure of technical scrutiny that hasbeen absent. Naval architects can work in partnershipwith propeller manufacturers to insure that a proposedcustom or semi-custom propeller design will perform asspecified.

www.hydrocompinc.com

ShipConstructor 2011 ReleasedShipConstructor Software Inc. has releasedShipConstructor 2011, the newest version of the compa-ny’s AutoCAD-based CAD/CAM application. Multiplehierarchies can now be used to generate production out-put as well as analysis. To ensure that the ShipConstructor

SQL database is always optimized for maximum perform-ance, ShipConstructor 2011 now provides a simplemethod for scheduling database maintenance operationsincluding the cleanup of unused data, compacting of data-base files and the re-building of database indexes. Theproject revisions dialog has also been enhanced to make iteasier to localize and examine project revision history.

www.shipconstructor.com

Foran in Acergy Havila ProjectForan was the CAD/CAM system used to engineer theAcergy Havila Project, a new Diving Support Vessel builtafter the agreement between Acergy and Havila Shipping.As there were many companies involved in the project,different subcontractors have acquired the new FCMmodule, which is a Foran solution developed by Sener forvisualization and checking purposes. The Acergy Havilawill have high transit speed, an ice-class hull and class-3dynamic positioning. The ship has been nominated forthe Ship of the Year award in Norway 2010.

Aveva’s New 64-Bit VersionsAveva Group plc, provider of engineering design andinformation management solutions for the plant, powerand marine industries, announced the release of the first64-bit versions of its powerful visualization and designcommunication technologies. This enables designers totake advantage of the increased processing power of thelatest 64-bit computers to create highly detailed and easi-ly navigable 3D design visualizations of even bigger andmore complex capital projects.

www.aveva.com

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Aveva’s 64-Bit Versions


Miller’s Filtair SWX Series Fume ExtractorsMiller’s new Filtair SWX Series space-saving wall-mount-ed welding fume extractors are available in either the self-cleaning SWX-S model or the disposable filter SWX-Dmodel. SWX-Series extractors can be fastened to a varietyof wall surfaces, allowing companies to improve air quali-ty and protect employees without cluttering their shopfloors. The SWX-Series uses surface-loading nanofiber fil-ters designed specifically to capture the 95% of sub-micron particles found in welding fumes, including hexa-valent chromium and manganese.

www.MillerWelds.com

Weldcraft Gas LensesWeldcraft offers multiple styles of precision-machined gaslenses to optimize shielding gas coverage and help ensureconsistent, quality TIG welding performance. With stylesavailable for both its WP Series and Crafter Series air andwater-cooled TIG torches, Weldcraft’s gas lenses providesuperior current capacity, while effectively dissipating heatfor longer, trouble-free performance. Weldcraft offersthree main styles of gas lenses: standard size, large diame-ter and “stubby” to fit TIG torches with 10N or 13Nseries front-end parts.

www.weldcraft.com

ESAB’s Origo MIG Family of WeldersESAB Welding & Cutting Products introduced the OrigoMIG family of welders. Origo MIG 320, 410 and 510 are230/460 V 3 ph 60 Hz step-switched power sources formedium (320) to heavy-duty (410 and 510) MIG weld-ing.

www.esabna.com

NEW DPC 2000 Documenting Process CalibratorThe new DPC 2000 from E-Instruments International isa documenting process calibrator with accuracy up to0.015%. The DPC 2000 measures and simulates: DCvoltage, DC current, 13 types of thermocouples, 13 typesof RTDs, frequency, loop supply (24V), pressure andsource pulse trains.

www.e-inst.com

Marine Panel Mount Computer Shock TestedComark Corporation announced that its 12-inch marinepanel mount display with integrated computer and touch-screen options has passed the MIL-901D Grade A light-weight shock test. Testing was conducted at Sypris Test &Measurement Labs in Wayne, N.J. and consisted of mul-tiple hits from a 400 lb. hammer dropped from a heightof one ft, three ft, and five ft in three axis. TheMDU12PC is available with both standard brightness andsunlight readable versions, up to 1000 NITs. Other fea-tures include a touchscreen interface, Core 2 Duo pro-cessing and multiple storage options.

www.comarkcorp.com

Horn Machine Tools 2010 Elite Series Tube BendersHorn Machine Tools, Inc. introduced the 2010 EliteSeries of tube bending machines with capacities rangingfrom 1-1/4 in. to 10 in. The Elite Series offers a 50%reduction in set-up time, user-friendly features, extendedservice intervals and faster bending speeds. The series fea-tures 12 models of heavy-duty tube benders, extendedservice intervals and a new main drive motor with higherhp for faster open/close and bending speeds.

www.HornMachineTools.com

Miller’s Filtair SWX

Horn Tube Benders

ESAB’s Origo MIG Family

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Production Manager

Job Location: Bahamas, FreeportPosition Summary Manage all aspects of Production in theshipyard and all jobs from the time it isturned over by commercial to completion.Work closely with Project Managers to en-sure timely job completion and accuracy.Manage Production workers and TradeManagers to ensure the jobs are properlystaffed. Overall responsibility for budgetand schedule adherence.Responsibilities of the Position:These shall include but not be limited to thefollowingPlan and schedule JobsManage supervisors of all skilled Labor Ensure the review of all job specificationsand Variation ordersResponsible for tracking productionprogress and ensuring that productionschedules are adhered to and dead linesare met.Maintain an adequate skilled workforce tomeet the shipyards needs by workingclosely with Human Resources for the hir-ing and training of the labor force.Submit to Senior Management and reporton Monday, Wednesday and Friday a pro-duction report including progress on eachjob, percentage complete, estimated totalvalue for each job, including estimatedgross profitCoordinate efforts with other personnel in-volved in production, estimating, engineer-ing, purchasing and project management.Reviews project proposals to ascertaintime frame, funding limitations and to de-termine methods and procedures for ac-complishment of the project.Confers with staff to outline the projectplans, designate personnel who will have re-

sponsibilities for the project, and establishscope of authority.Required skillsExcellent interpersonal and communicationskills, both oral and written Must have excellent leadership skills and beable to motivate staff to achieve goals Must be a self starter with the ability thinkindependently and use good judgment in re-solving issues with minimal supervision.Must be able to function effectively in a fast-paced environment.Must possess a positive attitude and is aTeam player.Must have a willingness to learn new skillsand grow with the companyFluency in multiple languages is highly de-sirableDemonstrated knowledge of all aspects ofthe repair and refitting of ships is required.Must be proficient in computers and have aworking knowledge of standard software.Minimum Qualifications College degree preferred but not required,Technical training is required Minimum 15 years experience in a supervi-sory role in a shipyard requiredBryan SpencerSpencer ServicesP.O. Box 25187Colorado Springs CO 80936 USAPhone: 719-522-1077Fax: 719-522-1095Email: [email protected]

Broker

Job Location: USA, Coupeville, WA30 year-old international shipbrokeragespecializing in the sale, charter and ap-praisal of workboats is expanding and seek-ing to immediately hire another broker. Thisis a commission-based position with a basestipend for the broker’s introductory period.Successful applicant must relocate to Whid-bey Island, Washington, USA.Position Skills:• Three to four years experience in operat-ing and/or surveying commercial work-

www.marinelink.com Marine News 59

is recruiting qualified candidates for positions on our brand new state-of-the-art marine transport vessels operating along the Northeastern Atlantic Seaboard. We offer highly favorable work schedules – 2 weeks on – 2 weeks off, as well as excellent opportunities for career advancement.

Must possess a valid Master of Towing Vessels near coastal or greater endorsement.

New York Harbor experience preferred.

Chief engineers for Coastal and Inland tugboats. Must possess a valid (Designated Duty Engineers) license or greater. Valid (Merchant Marine Document) required. Two years engine room experience required.

Current and endorsement required; experience preferred.

If you have the skills and experience for any of our open positions, please contact our at or fax your resumé to

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Post Your Resume for Free • Energize Your Job Search @ MaritimeJobs.comboats plus formal training or be a licensedmarine officer.• Self motivated with a high level of initiativeand a sense of urgency.• Effective communication and organiza-tional skills, flexibility, adaptability, commonsense, patience, sense of humor andstrong attention to detail and service orien-tations are essential.

• MS Office suite of products (Word, Exceland Outlook) and database managementtools proficiency strongly recommended.• Must have full entitlement to work in theUSA and to obtain a TWIC card.No phone calls, please. Only preselectedcandidates will be interviewed.Pat HernandezMarcon International Inc

PO Box 11709 NW Front St Ste 201Coupeville WA 98239 USAFax: 360-678-8890Email: [email protected]: http://www.marcon.com

60 MN October 2010

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COMPASS ENTERPRISES, INC.PO BOX 512 BRONX, NY 10462

Pressure Washers up to 7000psiElectric – Diesel – Gasoline – Hot - Cold Continuous Duty – We customizewww.watercannon.com1-800-786-9274

62 MN October 2010

NEW PRODUCTS

Marine Marketplace

ELECTROMATIC Equipment Co., Inc.600 Oakland Ave., Cedarhurst, NY 11516 Tel. (516) 295-4300 • FAX (516) 295-4399

www.checkline.comCHECK•LINE ®

CORROSION & WALLTHICKNESS GAUGE

The TI-25M measures wall & corrosion thickness on allmetals, ceramics, glass and most rigid plastics from only one side—ultrasonically!

Ideal for ships’ hulls and bulkheads, storage tanks, metal plates, pipes, more.

Measuring Range 0.025 – 6.000 inches0.60 – 150.0 mm

FIV

E-YE

AR WARRANTY

• Many other models availableincluding—

THRU PAINTDATALOGGINGUNDERWATER

Call Toll Free 1-800-645-4330

PROFESSIONALS

Marine MarketplacePROFESSIONALS

BARGES FOR RENT


NAVAL ARCHITECTS,MARINE, MECHANICAL & ELECTRICAL ENGINEERS

701 Fifth Avenue, Suite 1200 Phone: 206-768-1515 Seattle, WA 98104 http://www.gpai.com

Ideas Engineered Into Reality

GUIDO PERLA & ASSOCIATES, INC.

64 MN October 2010

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

ADVERTISER INDEX

Page# Advertiser Website Phone# Page# Advertiser Website Phone#

23 ABS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.eagle.org (281) 877-5861

29 ACT 2 TECHNOLOGIES. . . . . . . . . . . . . . . . . . . . . . . . www.act2tech.org (954) 791-1812

5 AER SUPPLY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.aersupply.com (800) 767-7606

49 AHEAD SANITATION . . . . . . . . . . . . . . . . . . . . . . . . www.aheadtank.com (337) 237-5011

43 ALL AMERICAN MARINE . . . . . . . . . . . . . www.allamericanmarine.com (360) 647-7602

17 ARGOSY BOAT COMPANY . . . . . . . . . . . . . . . . . www.argosyboat.com (636) 236-8872

31 BAIER MARINE. . . . . . . . . . . . . . . . . . . . . . . . . . . . www.baiermarine.com (800) 455-3917

45 BREAX BAY CRAFT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Please call us at (337) 229-4246

36 BYRNE RENTALS & SALES, LLC. . . . . . . . . . . . www.byrnerentals.com 800-99-BYRNE

33 CENTA CORPORATION. . . . . . . . . . . . . . . . . . . . . . www.centa.info (630) 236-3500

3 CITGO PETROLEUM . . . . . . . . . . . . . . . . . www.clarionlubricants.com Please visit our website

45 ClearSpan Fabric Structures . . . . . . . . . . . . . . . . . . www.ClearSpan.com (866) 643-1010

15 CRANESMART SYSTEMS INC.. . . . . . . . . . . . . . . www.cranesmart.com (888) 562-3222

13 DAMEN SHIPYARD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.damen.nl 31 (0) 183-63-9174

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

41 DONJON MARINE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.donjon.com (908) 964-8812

45 FLOSCAN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.floscan.com (206) 524-6625

37 GENCORP INSURANCE GROUP. . . . . . [email protected] (800) 232-0582

C3 GENERAL PROPULSION. . . . . . . . . . . . . . . . [email protected] (956) 781-8989

5,27 GLOBAL MARINE POWER . . . . . . . . . . . www.globalmarinepower.com (713) 640-9300

35 GREAT AMERICAN INSURANCE . . . . www.GreatAmericanOcean.com (212) 510-0135

47 HARCO MANUFACTURING CO.. . . . . www.harcomanufacturing.com (800) 394-7571

39 INDEPENDENCE BANK . . . . . . . . . . . . www.Independence-Bank.com (401) 471-6318

7 INMARSAT . . . . . . . . . . . . . . . . . . . . www.inmarsat.com/merchant150 Please visit our website

54 KEMEL USA INC.. . . . . . . . . . . . . . . . . . . . . . . . www.kobelco-eagle.com (212) 967-5575

35 KOBELT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.kobelt.com (604) 590-7313

9 KVH INDUSTRIES, INC.. . . . . . . . . . . . . . . . . www.kvh.com/marinenews (401) 847-3327

19 LLEBROC INDUSTRIES . . . . . . . . . . . . . . . . . . . . . . www.helmchair.com (800) 284-5771

48 MARINERS HOUSE . . . . . . . . . . . . . . . . . . . . . . www.marinershouse.org (617) 227-3979

43 McDonough Marine Service. . . . . . . . . . . www.McDonoughmarine.com (504) 780-8100

41 METAL SHARK ALUMINUM BOATS . . . . . www.metalsharkboats.com (337) 364-0777

25 MOOSE BOATS . . . . . . . . . . . . . . . . . . . . . . . . . . . www.mooseboats.com (866) -Go Moose

38 NABRICO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.nabrico-marine.com (615) 442-1300

21 PENNECON ENERGY . . . . . . . . . . . . . . . . . . . www.pennecon.com (709) 726-3490

11 PORT SUPPLY- WEST MARINE . . . . . . . . . . . . . . . . www.portsupply.com (800) 621-6885

C4 R.W. FERNSTRUM & C0. INC. . . . . . . . . . . . . . . . . . . www.fernstrum.com (906) 863-5553

1 SCANIA USA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.scaniausa.com (210) 403-0007

21 SeaArk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.seaark.com (870) 367-9755

58 SNAME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.sname.org (561) 732-4368

47 SUNY MARITIME COLLEGE www.sunymaritime.edu (718) 409-7341

C2 TUFLEX RUBBER PRODUCTS LLC. . . . . . . . . . . . . . . . . www.tuflex.com (800) 770-6008

45 Tutor-Saliba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Please call us at (818) 362-8391

1800 HP

10M Powered With Two 420 HP Cummins Diesel ViaHamilton Water Jets w/ 3 Axle Trailer............Like New - $79,900

MARINE NEWS (OCT 2012)

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