KVH Receives Innovation Award for The TracPhone V3

Press Release from KVH Industries

30 November 2011

 

MIDDLETOWN, RI — The TracPhone® V3 from KVH Industries, Inc., (Nasdaq: KVHI) created a stir in the maritime communications market when it was introduced in February 2011 due to its small size, fast data rates, and affordable service. Now it's been honored with two prestigious awards for those same features — the product was chosen for the "Spotlight on New Technology" at the Louisiana Gulf Coast Oil Expedition (LAGCOE) and received the Providence Business News' 2011 Innovation of the Year award at a ceremony in Rhode Island, where KVH's world headquarters is located.

"For years, mariners using satellite communications services at sea have struggled to avoid prohibitively high airtime bills. Several years ago, we saw an opportunity to help resolve this issue with modern technology that would reduce the size and cost of maritime satellite communications equipment, and we built our own spread spectrum satellite network to offer fast, affordable service on a global basis using a 24" antenna. In February of this year, we introduced the next generation of this unique, end-to-end hardware and service solution with the 14.5" TracPhone V3 antenna, bringing reliable satellite communications to a whole new population of mariners," explains Martin Kits van Heyningen, KVH's chief executive officer. "We're delighted that the benefits of our new product are being recognized with state and national awards."

KVH is known for its innovative approach to technology, especially in the maritime market. The mini-VSAT Broadband network's popularity with commercial mariners, like those who work in the oil and gas industry and attended KVH's Spotlight on Technology presentation at LAGCOE, is based on a long history of reliability and quality in all of KVH's products, from digital compasses to satellite TV systems to its global satellite communications service. That reputation has been good for business worldwide and for the economy in Rhode Island, where KVH got its start and where its world headquarters is located.

"Over the past several years, KVH has remained a bright spot in the Rhode Island economy," said Mark S. Murphy, editor of Providence Business News, as he presented the Innovation of the Year award. "KVH's innovative products mean that we can check e-mail, call home, manage our businesses, and even watch the Red Sox right from our boats."

The TracPhone V3 is licensed by the U.S. Federal Communications Commission (FCC) and includes a fully stabilized, 14.5" (37 cm) antenna that weighs just 25 pounds, a powerful ViaSat ArcLight® spread spectrum modem, and a sleek antenna control unit that are all fully integrated and configured for easy installation. ArcLight spread spectrum technology enables very small antennas like KVH's TracPhone V3 to receive satellite transmissions with the speed and reliability of older, 1-meter VSAT antennas that use the TDMA transmission schemes originally designed for terrestrial use. KVH's high-efficiency RingFire™ antenna design and dielectric feed rod technology combine to help the TracPhone V3 offer great performance, even in poor weather, and its rugged, lightweight design is perfect for use on leisure and commercial vessels as small as 30 feet.

With more than 1,500 antenna systems shipped and global coverage, KVH's mini-VSAT BroadbandSM network is the world's largest and fastest growing maritime Ku-band satellite communications network. A managed airtime network solution, it equips vessels with true broadband connections as well as Voice over IP (VoIP) telephone lines with optimized service and prioritization of applications.

About KVH Industries, Inc.

KVH Industries, Inc., is the leading provider of in-motion satellite TV and communication systems, having designed, manufactured, and sold more than 150,000 mobile satellite antennas for applications on vessels, vehicles, and aircraft. KVH's mission is to connect mobile customers around the globe with the same digital television entertainment, communications, and Internet services that they enjoy in their homes and offices. The company is based in Middletown, RI, with facilities in Illinois, Denmark, Norway, and Singapore.

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This release may contain certain forward-looking statements that involve risks and uncertainties. Forward-looking statements include, for example, the functionality, characteristics, quality and performance of KVH's products and technology; anticipated innovation and product development; and customer preferences, requirements and expectations. The actual results could differ materially. Factors that may cause such differences include, among others, those discussed in KVH's most recent Form 10-Q filed with the SEC. KVH does not assume any obligation to update its forward-looking statements to reflect new information or developments. KVH, TracPhone, and RingFire are trademarks of KVH Industries, Inc. "mini-VSAT Broadband" is a service mark of KVH Industries, Inc. All other trademarks are the property of their respective companies.

3rd Fast Response Cutter Launched Today

WASHINGTON — The Coast Guard announced Wednesday the launch of its third Sentinel-class, Fast Response Cutter, the William Flores, at Bollinger Shipyards, Lockport, La.
The launch of the William Flores into the waters of Bayou Lafourche marks a production milestone as the Fast Response Cutter readies for sea trials, delivery, crew training and eventual commissioning.
“The Coast Guard’s new Fast Response Cutters are national assets, unique to the United States and uniquely equipped to respond to all threats and all events in times of crisis,” said Cmdr. Chris O’Neil, chief of media relations for the U.S. Coast Guard. “The Sentinel-class Fast Response Cutters will be capable of speeds in excess of 28 knots and operating in seas up to 18-feet. Armed with a 25-mm chain gun and four, .50 caliber machine guns, the speed, stability and firepower of the Fast Response Cutter deliver tremendous lifesaving, law enforcement and homeland security capabilities in the same package. Like the Island-class patrol boats the Fast Response Cutters replace, the fleet of 58 Sentinel-class cutters will serve as the workhorses of America's littoral, maritime fleet.”
Seaman Apprentice William Flores, namesake of the cutter, posthumously received the Coast Guard Medal, the service’s highest award for heroism not involving combat, for his unselfish acts and sacrifice Jan. 28, 1980, following the collision between the Coast Guard Cutter Blackthorn and the tanker Capricorn. Flores and another crewmember threw life jackets to their shipmates who had jumped into the water. Later, when his companion abandoned ship as the Blackthorn began to submerge, Flores, who was less than a year out of boot camp, remained behind and used his belt to strap open the life jacket locker door, allowing additional life jackets to float to the surface. Even after most crewmembers abandoned ship, the 19-year-old Flores remained aboard Blackthorn to assist trapped shipmates and to comfort those who were injured and disoriented. Seaman Apprentice William Ray “Billy” Flores and 22 other Coast Guardsmen perished as the Blackthorn capsized and sank near the entrance of Tampa Bay, Fla. Twenty seven of his shipmates survived.
After commissioning, the William Flores will be homeported in Miami, with a crew of 24 to conduct alien migrant interdiction operations, port, waterways and coastal security patrols, search and rescue and national defense missions.
Named for enlisted Coast Guard heroes, Fast Response Cutters have an overall length of 154 feet, a beam of 26 feet and are capable of speeds in excess of 28 knots. The Fast Response Cutter also features a stern launch ramp for rapid and safe deployment of its 7.9-meter small boat. The William Flores is scheduled to be delivered and commissioned in 2012.
For more information about the Fast Response Cutter visit http://www.uscg.mil/acquisition/sentinel/default.asp or to learn more about the recapitalization of Coast Guard assets visit http://www.uscg.mil/acquisition/programs/pdf/CG9recap.pdf.

No Gas for Nome, Alaska

Article from the Alaska Dispatch
28 November 2011

Unleaded gasoline sells for $5.43 a gallon at the pump in Nome, but that price could skyrocket by this spring because a fuel barge with more than 1 million gallons didn't arrive as expected this fall in the remote Northwest Alaska community.
For Nome residents, the cancelled shipment, which petroleum distributor Delta Western blames on stormy weather and sea ice, brings back memories of a similar situation in another rural Alaska community.
In the spring of 2010, after a fuel barge couldn't reach the Interior town of McGrath, the distributor was forced to fly fuel in. Those costly flights pushed prices at the pump from $5.97 to $8.50 a gallon. Nome Mayor Denise Michels said her community of 3,600 isn't facing an emergency yet. But if Nome fuel stocks drop too low this spring, supplies would have to be flown in, which would raise prices at the pump.
Hopefully, Delta Western and Bonanza Fuel, the company that ordered the 1.6 million gallons of gasoline, diesel fuel and heating fuel, can reach an agreement that avoids passing costs onto Nome residents, said Michels. The companies are discussing the problem now, she said.
"They need to figure it out," Michels said.

The barge carrying the big fuel load couldn’t reach Nome, in part because of stormy weather, including the recent tempest in the Bering and Chukchi seas, said Kirk Payne, Delta Western vice president. Sea ice that has since enveloped the community, delivering the final blow. The barge won't reach Nome this winter, Payne said.
It's possible that costs related to the canceled barge shipment could be rolled into a state disaster declaration, said Scott Ruby, director of the state Division of Community and Regional Affairs.
Gov. Sean Parnell's Disaster Policy Cabinet meets on Wednesday to consider whether damage from the mid-November storm across a wide swath of western Alaska warrants a disaster declaration from the state. The cabinet will advise the governor, who makes the final call, Ruby said.
Nome has asked the state's emergency services division to determine whether a disaster declaration would cover the cost of higher fuel prices, said Michels. It might, but the city hopes Bonanza and Delta Western resolve the issue themselves.
One question is whether the weather was truly the problem, said Michels.
It was, said Payne. But Jason Evans, board chair of Bonanza parent company, Sitnasuak Native Corp., said Bonanza ordered the fuel in May, and the company has been awaiting its order for three months. "There's not been 90 days of extreme weather," Evans said, and other barges have reached Nome before ice surrounded it.

Contact Alex DeMarban at alex(at)alaskadispatch.com

Interferry says meeting low-sulfur deadline is "mission impossible"

I find this interesting in contrast with the study done by the Glosten Associates on the conversion of Washington State Ferries to LNG Propulsion. (Refer to our  21 November Blog Post.) I guess that the contrast comes from the economic hardships facing Europe versus our own here in the United States. I think this deadline hits them economically where we were three or four years ago. It will be interesting to see how they emerge from it.

From MarineLog News Article.
28 November 2011

The international trade association for the ferry industry, Interferry, claims that ferry operators in northern Europe face a "near-impossible" choice in trying to meet the 2015 deadline for ultra-low sulfur emissions from bunker fuel. It also says that the low-sulfur legislation will " percentprompt an environmentally damaging modal shift from short-sea to overland transport and pose severe financial implications for the overall European economy.

Under pending IMO and soon to be agreed European Union (EU) environmental requirements, vessels operating in the Baltic, North Sea and Channel Emission Control Areas (ECAs) will have to comply with a 0.1 percent limit on fuel sulfur content.

Interferry says that meeting the 2015 deadline is "mission impossible" because of "unsustainable cost increases."

The association argues that, despite the ferry industry's efforts to develop alternative technologies and feasible alternative fuels, abatement technologies and financial support will not be available or sufficient enough to avoid a modal shift from sea to road.

A "toolbox" of technical and financial solutions proposed by the European Commission (EC) suggests the use of clean LNG fuel or, for vessels that continue to run on heavy fuel oil, the use of scrubbers - exhaust gas cleaning systems. It also points operators towards EU funding initiatives and state aid.

Interferry says that these are not realistic options because:

• It is widely recognised in Europe that LNG is only an option for new vessels due to the prohibitive cost of converting existing vessels, and in any case the LNG fuel supply infrastructure is inadequate
• Scrubber technology is not a "miracle cure." Ferry operators have contributed financially and operationally to developing the technology and Interferry says it is a solution that seems to be able to remove sulfur particles from the exhaust gases on some ships. However, a new Interferry feasibility study covering 108 vessels from six leading operators reveals that scrubbers would not be technically or financially viable for 60 percent of the existing fleet. Furthermore, trial installations among association members have shown that it will not be possible to have scrubbers in operation in time for 2015 for the other 40 percent
• EU funding is virtually non-applicable as it applies largely to newbuilds and new routes – a low priority among operators who have invested heavily in new tonnage in recent years, and who now face a desperate economic climate that also reduces the likelihood of state aid

"There is no financial support for existing ferries, while LNG and scrubbers are not feasible," says Johan Roos, the association's executive director of EU and IMO affairs. "In effect, the toolbox is completely empty.

"Our only option is to use marine gas oil – technically straightforward but very costly and potentially counter-productive in environmental terms. Operators have warned that they will not be able to pass on the 70 percent or more fuel cost increase to customers with a choice of transport modes, which will inevitably push up to 50 percent of cargo off short-sea ships and back on to the road network."

Mr. Roos added that, apart from cost, availability is also an issue with MGO, stressing: "At the very least, the IMO must bring forward its availability review from 2018, as mandated in MARPOL Annex VI, to 2012 or 2013. It's also clear that the ongoing revision of the EU Directive must put provisions in place as to what should happen if low-sulfur fuel is simply not available to operators in 2015."

Interferry conducted the scrubber feasibility study among six Interferry members operating in the north European ECAs - Brittany Ferries, DFDS, Grimaldi Group, P&O Ferries, Stena Line and TT-Line.

The conclusion that more than half their existing ships could not be fitted with scrubbers was based on five critical parameters:
Vessel age and the consequent commercial viability of making a massive technical investment

• Stability reserves taking into account the weight of scrubber units and how high up the stack they would be fitted
• Deadweight reserves and the resulting impact on cargo capacity
• Casing – because many ferries have very limited void in the ideal stack casing location and would therefore need special scrubber casing that reduces cargo capacity
• Whether or not Selective Catalytic Reduction (SCR) technology was already fitted to reduce NOx emissions – if so, retrofitting wet exhaust scrubbers would be more challenging as these cool gases to below 100 degrees C compared with temperatures above 400 degrees C required by SCR

The detailed results are being offered to the European Maritime Safety Agency for independent audit and will also be made available to relevant authorities.

The EC toolbox was discussed in Helsinki on November 18 when senior personnel from Interferry members joined Mr. Roos at a special seminar organized by the Finnish Ministry of Transport & Communications and the Finnish Transport Safety Agency. Invited delegates also came from national authorities, shipowners' associations and equipment manufacturers.

Mr. Roos reports that at the meeting, where an EC representative and various national administrators also participated, it became obvious that current funding support programs are only allowed for new ships or new routes and are not available to address the "real problem"of safeguarding existing fleets and the routes they already service – offloading millions of trucks from the European road network every year.

November 28, 2011

Hornbeck Offshore orders 16 new OSVs from VT Halter, Eastern

From a Hornbeck Offshore Press Release
27 November 2011

COVINGTON, La., Nov. 17, 2011 /PRNewswire/ -- Hornbeck Offshore Services, Inc. (NYSE: HOS) announced today the execution of definitive contracts for the construction of sixteen high-specification offshore supply vessels ("OSV"), in connection with its latest newbuild construction program announced on November 7, 2011. This is the Company's eighth newbuild vessel program since its inception in 1997, and its fifth newbuild program involving state-of-the-art, technologically advanced new generation OSVs.
The Company has separately contracted with VT Halter Marine, Inc. of Pascagoula, Mississippi and with Eastern Shipbuilding Group, Inc. of Panama City, Florida for the construction at each yard of eight 300 class vessels with options to build additional such vessels should future market conditions warrant. The Company's first decision with respect to the exercise of options will need to be made in September 2012. Delivery dates for option vessels will be approximately 26 months following the option exercise. The aggregate cost of the first sixteen vessels under this program is expected to be approximately $720 million, excluding construction period interest. Construction costs will be funded with cash on-hand (including the net proceeds of the Company's recently completed equity offering), projected free cash flow from operations and, if necessary, available capacity under the Company's currently undrawn and recently expanded $300 million revolving credit facility.
VT Halter Marine will construct eight vessels based on the Super 320 design that it developed for Hornbeck Offshore. These DP2 OSVs are designed to have 6,200 long tons of deadweight capacity, approximately 20,900 bbls of liquid mud carrying capability, 11,863 sq. ft. of deck area and a fire-fighting class notation. The Super 320 design is based on a larger version of the HOS Coral, an existing 290 class DP-2 OSV which the Company has successfully operated since her delivery in early 2009. The Super 320 design has been developed with particular attention to the most stringent regulations for environmental stewardship, including a double-hull that eliminates any fuel storage adjacent to the sideshell, and propulsion machinery that meets the requirements of EPA Tier 3 for stack emissions.
The eight OSVs to be constructed by Eastern Shipbuilding Group will be DP-2 classed and consist of four vessels based on the STX Marine SV 300 design and four vessels based on the STX Marine SV 310 design. Features of the STX design include over 20,000 bbls of liquid mud carrying capacity and a fire-fighting class notation. In addition, the SV 300 design calls for 5,500 long tons of deadweight capacity and 10,976 sq. ft. of deck space, while the SV 310 design calls for 6,144 long tons of deadweight capacity and 11,536 sq. ft. of deck space. The STX designs meet the same environmental standards mentioned above for the Super 320 design and will also carry the ENVIRO class notation by the American Bureau of Shipping.
Based on the schedule of projected vessel in-service dates below, the Company expects to own and operate 56 and 67 new generation OSVs as of December 31, 2013 and 2014, respectively. These vessel additions result in a projected average new generation OSV fleet complement of 52.2 and 62.8 vessels for the fiscal years 2013 and 2014, respectively. Inclusive of the vessel deliveries referred to below, the aggregate cost of the Company's fifth OSV newbuild program is expected to be approximately $720 million, of which $44 million, $227 million, $348 million and $101 million is expected to be incurred in 2011, 2012, 2013 and 2014, respectively. The first sixteen OSVs under this newbuild program are expected to be placed in service in accordance with the schedule shown in the table below:

	2Q2013E	3Q2013	4Q2013	1Q2014	2Q2014	3Q2014	4Q2014
Estimated In-Service Dates:
300 design	1	1	1	1	-	-	-
310 design	-	-	-	1	1	1	1
320 design	-	-	2	2	3	1	-
	1	1	3	4	4	2	1

All of the above capital costs, anticipated periods of their incurrence and delivery date estimates for the contracted newbuild program are based on the latest available information and are subject to change. All of the figures set forth above represent expected cash outlays and do not include the allocation of construction period interest.
Hornbeck Offshore Services, Inc. is a leading provider of technologically advanced, new generation offshore supply vessels primarily in the U.S. Gulf of Mexico and Latin America, and is a leading short-haul transporter of petroleum products through its coastwise fleet of ocean-going tugs and tank barges primarily in the northeastern U.S. and the U.S. Gulf of Mexico. Hornbeck Offshore currently owns a fleet of 80 vessels primarily serving the energy industry.

Port of Los Angeles to participate in clean-ships program

The Following is a press release from the Port of Los Angeles.

(SAN PEDRO, Calif.) -- The Port of Los Angeles is working with the International Association of Ports and Harbors (IAPH) to develop incentive program strategies to participate in the Environmental Ship Index (ESI) Program starting in 2012.

ESI is an international web-based ship-rating system ports can use to promote clean ships by rewarding operators whose vessels exceed current environmental performance standards and regulations. Port staff presented an outline of the program to the Board of Harbor Commissioners last week and expects to submit recommendations for participation in the program to the Board by early 2012.

The announcement comes on the fifth anniversary of the Port's adoption of the Clean Air Action Plan (CAAP), a landmark pollution reduction initiative whose measures have helped to cut harmful air emissions from port-related sources in the San Pedro Bay by as much as 76 percent. The CAAP was designed as a blueprint for charting a permanent course for the Port of Los Angeles to operate the cleanest, most environmentally sustainable port. In 2010, the Port reaffirmed its commitment to the CAAP by expanding its programs and setting more aggressive targets with near-term goals through 2014 and long-term objectives through 2023.

"The Port of Los Angeles continues to be a world leader in combating pollution," said Los Angeles Mayor Antonio Villaraigosa. "We've had five years of extraordinary success with the Clean Air Action Plan and now we're looking at the next generation of strategies for running the cleanest possible port and improving air quality in Los Angeles and throughout Southern California."

"The Port of Los Angeles is looking forward to being part of these international standards and setting the stage for North American ports to follow suit and reward operators for greening their fleets," said Port of Los Angeles Executive Director Geraldine Knatz, Ph.D. and IAPH president. "As participation grows, the benefits increase for carriers and communities."

The Port of Los Angeles adopted the CAAP to help tackle harmful emissions in the South Coast Air Basin. After launching the CAAP in 2006, the Port has met or exceeded nearly all its goals for reducing air pollution from port-related sources. Ships remain the toughest challenge, as they are regulated by international convention and represent the single largest source of air pollution from port-related operations.

The ESI identifies voluntary engine, fuel and technology enhancements ships can use to exceed current environmental performance standards. The ESI targets primary pollutants, which include nitrogen oxides (NOx), sulfur oxides (SOx), and diesel particulate matter (DPM). The program also contains a component to help reduce greenhouse gases. The index was developed by some of the world's major ports collaborating under the World Ports Climate Initiative, a project of the IAPH.

Nine European ports in the Netherlands, Norway, Germany, Belgium and Italy have signed on to participate in the ESI and either have current programs or are in the process of developing programs to offer financial incentives to reward operators whose ships outperform environmental standards.

The Port of Los Angeles is America's premier port and has a strong commitment to developing innovative strategic and sustainable operations that benefit the economy as well as the quality of life for the region and the nation it serves. As the leading seaport in North America in terms of shipping container volume and cargo value, the Port supports more than 830,000 regional jobs and $35 billion in annual wages and tax revenues. A proprietary department of the City of Los Angeles, the Port is self-supporting and does not receive taxpayer dollars.

How Consumers and Communities Can Benefit From 'Buying Local'

From US News and World Report:

Comparison shopping between independent stores and chains is about overall value, not just price

By Rachel Koning Beals

October 28, 2011


Certainly, there are other retail realities. The existence of any business, chain or not, is often preferred over an abandoned storefront, and will better serve communities void of key supplies for everyday existence. While I happily patronize my local toy store, the reality is that big-box retailers that include a grocery section may just be the saviors for the vast "food deserts" across other parts of my home city, Chicago. There, zero grocery options, especially fresh food, exist for blocks on end.
Still, the risk of losing more independent businesses or even slowing their growth is only reenergizing the small-business community. Local and national campaigns that join efforts to raise awareness can boost results for indies.
A 2011 Independent Business Survey was conducted by the Institute for Local Self-Reliance and dozens of national and local business organizations. Respondents who participated in "Buy Local" campaigns reported an average gain in revenue of 5.6 percent, compared with a 2.1 percent revenue increase for those not involved in these campaigns. The survey gathered data from 2,768 independent, locally owned businesses during an eight-day period in January. It covered all 50 states and included a range of business types.
National campaigns are also gaining some traction. Nov. 26, 2011, the Saturday immediately after Thanksgiving and Black Friday, is designated as the second-annual Small Business Saturday holiday shopping promotion. An effort called Independent We Stand joined with American Express to create the national program in 2010 in response to small business owners' most pressing need: more demand for their products and services. Last year's inaugural program drove millions of dollars to Main Street merchants, the campaign says.
"Locally owned businesses reinvest in the local economy at a 60 percent higher rate than chains and Internet retailers, so Small Business Saturday shoppers will be revitalizing their economies while finding great deals at their favorite local merchants," says Bill Brunelle, project manager of Independent We Stand, in a news release.
For Milchen and other advocates, the fight is as much about preserving quality human interaction and a sense of community as it is about the bottom line.
For more on the Independent We Stand holiday promotion and other resources for the indie shopping movement, see below:

Independent We Stand: independentwestand.org
U.S. Chamber of Commerce Small Business Nation: uschambersmallbusinessnation.com
Civic Economics' Indie City Index 2011, a ranking of American Metropolitan Areas by the proportion of retail activity captured by independents: civiceconomics.com
American Independent Business Alliance: amiba.net
Institute for Local Self-Reliance: ilsr.org
Business Alliance for Local Living Economies: livingeconomies.org

Clipper Daisy diverts to rendezvous with sailboat and medevac man

The following is the text of a press release issued by the U.S. Coast Guard: 25 November 2011 (PORTSMOUTH, Va.) -- Crewmembers aboard two merchant ships responded to the Coast Guard’s call for assistance to medevac a Canadian man reportedly experiencing signs of a heart attack aboard his sailboat 170 miles southwest of Bermuda, Thursday. Watchstanders at the Coast Guard 5th District Command Center, internationally known as Rescue Coordination Center Norfolk, coordinated the rescue using the Automated Mutual–Assistance Vessel Rescue System after receiving notification from Nicole Gaudreault, an amateur radio operator from Montreal. The wife of the man experiencing the symptoms initially called Gaudreault stating she was a nurse and believed her husband needed to be medevaced. She also said they were aboard the Argo V, a 36-foot sailboat and were en route to St. Martin. Two AMVER vessel crews responded to the Coast Guard’s enhanced group call. A crewmember from aboard the merchant vessel Mary Ann Hudson stated they were approximately 120 miles from the Argo V, were willing to divert and the crewmember also said they had heart medication aboard. The crew of the Clipper Daisy also responded to the call for assistance saying they did not have heart medication but were willing to divert to the Argo V’s position to take the man aboard and transport him to Bermuda. The wife aboard Argo V altered her course to head toward Bermuda, but was unable to continue because of strong winds and 6-foot seas. The crew of the Clipper Daisy rendezvoused with the Argo V at approximately midnight Thursday and took the man aboard. The man is currently being transferred to Bermuda then to a local hospital. “This case is a prime example of the outstanding coordination using various tools in the search and rescue system to include amateur radio operators, AMVER system and Rescue Coordination Center Bermuda,” said Lt. Cmdr. James Klein, chief of the Rescue Coordination Center Norfolk.

Barge Breaks Lose, Runs Aground

From a US Coast Guard Press Release:
25 November 2011

MILWAUKEE — Personnel from U.S. Coast Guard Sector Lake Michigan are conducting a marine casualty investigation after a barge broke free while being towed by a tug and ran aground in Lake Michigan near Sheboygan, Wis., Nov. 24, 2011.

Marine investigators from Sector Lake Michigan arrived on scene on Friday Morning and are monitoring the situation until the barge can be re-floated and examined. The barge is reportedly carrying a cargo of rocks. There are no reports of pollution or environmental hazards.

U.S. Coast Guard photo.

MILWAUKEE — Personnel from U.S. Coast Guard Sector Lake Michigan are conducting a marine casualty investigation on a tug-and-barge, after a barge being towed broke free and ran aground in Lake Michigan near Sheboygan, Wis., Nov. 24, 2011.

The Coast Guard advises that people stand clear of the salvage area until the barge is free of the lake bottom.

The empty barge broke away from the tugboat Donald C during a routine transit toward Manitowoc, Wis., Thursday evening. The crew of the Donald C was unable to regain control of the barge because of rough seas and heavy winds.

Marine investigators from Sector Lake Michigan arrived on scene on Friday Morning and are monitoring the situation until the barge can be re-floated and examined. The barge is reportedly carrying a cargo of rocks. There are no reports of pollution or environmental hazards.

For more information contact Lt. Casey Steuer, Coast Guard Sector Lake Michigan, at 414-747-7151.

Multiple River Bars Closed in Oregon and Washington

Coast Guard says Columbia River is among the closures 
(11/25/2011)


The following is the text of a press release issued by the U.S. Coast Guard:

(SEATTLE) -- The Coast Guard Captain of the Port (COTP) Sector Columbia River, in Astoria, Ore., and the COTP Sector Puget Sound in Seattle issued the closure of multiple river bars within Oregon and Washington due to hazardous conditions Thursday. The bars at Quillayute River, Wash., Grays Harbor, Wash., and the Columbia River are closed.

The bar closure applies to all vessels and any request to transit the bars prior to reopening must be approved by the COTP, Sector Columbia River. Mariners may contact the Coast Guard on VHF-FM Channel 16 or Sector Columbia River by telephone at (503) 861-6211 or Coast Guard Sector Puget Sound at 206-217-6001 for further information or to request crossing.

The Coast Guard will re-evaluate the bar closure on an ongoing basis and will re-open the waterway as soon as the offshore weather improves.

The Coast Guard understands the effects these closures have on commerce and will make every effort to re-open these waterways as soon as they are considered safe for navigation.

Maritime Industry Urges Support for Cargo Preference

From the Seafarers InternationalUnion
22 November 2011

SIU Executive Vice President Augie Tellez and other maritime labor and company officials on Oct. 3 attended an open forum on an important program that greatly affects Seafarers and the industry at large. The multi-component program known as cargo preference stipulates that a certain percentage of U.S.-made or U.S.-funded items must be shipped on American vessels with American crews. The meeting was organized by the Maritime Administration (MarAd), whose stated goal was to open up the issue to public discussion.

Tellez (pictured below) and other speakers pointed out that cargo preference law enforcement is becoming increasingly more important to the maritime industry. With overseas conflicts starting to wind down, non-military cargo is going to become a more vital source of income for shipping companies and subsequently for merchant mariners.

“We in the maritime industry understand the critical need for our cargo preference laws, particularly those that affect food aid, our loan guarantee programs and other nondefense cargoes,” said Tellez. “As Operation Iraqi Freedom and Operation Enduring Freedom wind down after almost a decade, our industry needs to find cargo wherever it can, and we recognize we cannot continue to rely on the Pentagon for everything. Non-defense cargo is more important now than it has ever been.”

Maritime Trades Department, AFL-CIO (MTD) Executive Secretary-Treasurer Daniel Duncan was also on hand at the meeting expressing the department’s support for cargo preference laws.

“The MTD firmly believes that the nation’s series of cargo preference laws is a bedrock of the U.S.-flag maritime industry,” said Duncan. “These laws have played a vital role in ensuring that America has a strong domestic shipbuilding base and merchant marine. Cargo preference laws help create good-paying jobs for American workers, provide tax revenues at the local, state, and federal levels, and make sure America’s merchant marine is ready and available when needed for strategic sealift and other defense interests.”

The Marine Engineers’ Beneficial Association (MEBA) and the International Organization of Masters, Mates, and Pilots (MM&P) also jointly voiced their support for cargo preference laws and talked about the impact that they have on their respective memberships.

“There should be no question that, in order to grow and maintain the U.S. Merchant Marine, U.S.-flagged vessels should be used to the greatest extent possible when shipping government-impelled cargoes,” said William Doyle of MEBA. “Rigorous enforcement and oversight of cargo preference laws enables MarAd to fulfill its mission. Without oversight and enforcement from MarAd, the presence of the U.S.-flag fleet in the foreign trades would cease to exist, leaving a glaring hole in our national defense capabilities and negatively impacting our economy.”

Other speakers pointed out the economic importance the laws have on private shipowners and the costs that are deferred from the government because of them. Cargo preference laws, according to several presenters, provide an economically efficient way to bolster private industry and support jobs.

“Virtually every privately owned U.S.-flag vessel engaged in the foreign trade depends to some degree on cargo preference to remain economically viable,” said Bill Kenwell of Maersk Line, Limited on behalf of USA Maritime, an industry group consisting of shipowners, operators, and labor groups. “Indeed, absent cargo preference, it is no exaggeration at all to say that the U.S.-flag fleet in foreign commerce would disappear and the U.S. government would have to duplicate that sealift capability at enormous expense with government-owned vessels.”

In spite of these facts, however, many in the room were disappointed with MarAd’s efforts to enforce cargo preference laws. Even with revisions made by Congress that would bolster the programs, the agency’s efforts are still seen as lacking.

“If I had to sum up our feelings about MarAd’s performance when it comes to cargo preference matters in one word, that word would be frustration,” said Tellez, pointing to long vacancies in important MarAd positions and the lack of implementation of a three-year-old revision that punishes entities that don’t adhere to cargo preference rules.

Richard Berkowitz of the Transportation Institute, another maritime industry group composed of multiple sectors, agreed.

“Judging from the lengthy time it has taken to fill key management positions at MarAd related to cargo preference administration, it is difficult to believe that the administration’s role to ‘promote … the viability of the U.S. Merchant Marine’ is being taken with the earnestness and purpose needed to direct the government-impelled cargo so key to sustaining U.S. vessels in international trade lanes,” said Berkowitz.

Liberty Maritime Corporation CEO Philip Shapiro sent a letter to MarAd to throw his company’s support behind USA Maritime’s statements but added that the agency could be doing more in regards to cargo preference.

“Liberty Maritime would only like to add that it is imperative that the U.S. Maritime Administration place a high priority on cargo preference implementation and enforcement,” said Shapiro. “Congress has charged MarAd with ensuring that cargo preference achieves its objectives of supporting a strong and vibrant U.S.-flag Merchant Marine.”

In spite of some complaints, the SIU and others at the meeting reinforced their eagerness to work with the administration.

“The cargo preference laws work when they are properly enforced,” said Tellez. “They work when the resources needed to ensure that they’re being enforced are there. I am confident that MarAd can resolve these issues swiftly and I look forward to working with the agency in the future as we all strive to promot and protect our merchant marine.”

###

Wärtsilä completes unique conversion of vessel to LNG operation

We recently published an article on the conversion of Washington State Ferries to LNG propulsion. This seemed like an appropriate follow up for that article which was based on a study by the Glosten Associates.

Wärtsilä Corporation, Trade & Technical Press release, 23 November 2011

The product tanker ‘Bit Viking’ was the first vessel ever to undergo a conversion by Wärtsilä from heavy fuel oil to liquefied natural gas (LNG) operation. The conversion enables the ‘Bit Viking’ to qualify for lower nitrogen oxide (NOX) emission taxes under the Norwegian NOX fund scheme.

The unique fuel conversion of the product tanker ‘Bit Viking’, from heavy fuel oil to gas operation, has been finalised and in October the vessel was handed over to the customer, Tarbit Shipping. The re-commissioned vessel is operated by Statoil along the Norwegian coastline, and the conversion carried out by Wärtsilä enables it to qualify for lower NOX emission taxes under the Norwegian NOX fund scheme. The fund is a cooperative effort whereby participating companies may apply for financial support in return for introducing NOX reducing measures. Furthermore, liquefied natural gas (LNG) operation means lower carbon oxide emissions, and virtually no sulphur oxide or particle emissions whatsoever.

First marine dual fuel (DF) conversion

This is the first marine installation in the world to involve converting Wärtsilä 46 engines to Wärtsilä 50DF engines, and the first 50DF marine installation with mechanical propulsion. By operating on LNG, the ‘Bit Viking’ becomes one of the most environmental friendly product tankers in the world.

In August 2010, Wärtsilä announced that it had signed a turnkey project with Tarbit Shipping to convert the ‘Bit Viking’ to LNG operation. The scope of the conversion package from Wärtsilä included deck-mounted gas fuel systems, piping, two six-cylinder Wärtsilä 46 engines converted to Wärtsilä 50DF units with related control systems and all adjustments to the ship’s systems necessitated by the conversion. The vessel’s classification certificate was also updated. The engines are connected directly to the propeller shafts through a reduction gearbox, thus avoiding the electrical losses that are an unavoidable feature of diesel-electric configurations. This enables a significant improvement in propulsion efficiency, reduced fuel consumption, and corresponding reductions in emissions. This is the first LNG fuelled vessel to be classified by Germanischer Lloyd.

New LNG storage system

The ‘Bit Viking’ utilises Wärtsilä’s new LNGPac system, which enables the safe and convenient onboard storage of LNG. The two 500 cubic metre LNG storage tanks are mounted on the deck to facilitate bunkering operations and permit the bunkering of LNG at a rate of 430 cubic metres per hour. The storage tanks provide the vessel with 12 days of autonomous operation at 80 per cent load, with the option to switch to marine gas oil if an extended range is required. When visiting EU ports, which have a 0.1 per cent limit on sulphur emissions, the vessel operates on gas.

“Wärtsilä’s unique expertise and experience with dual fuel technology, as well as with fuel conversion projects, were the main reasons for us choosing them. We appreciate the technological efficiency of the Wärtsilä solutions and the expert way in which this conversion project has been handled. We are proud that the ‘Bit Viking’ is now one of the world’s most environmentally sustainable tankers in operation,” says Anders Hermansson, Technical Manager, Tarbit Shipping.

“This is a major step for Wärtsilä in consolidating its market leading position in LNG solutions for the shipping industry. The successful sea trials with this vessel provide yet further validation of the viability of LNG as the marine fuel of the future. We anticipate that this development will rapidly accelerate during the coming few years,” says Sören Karlsson, General Manager, Gas Applications, Ship Power Technology

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Every year, an estimated 4,000 pleasure vessels fall victim to either fire or explosion.

Of this number approximately 400 are either a total loss or are extremely costly to rebuild.

Blaze Hits 8 Boats on Lake Norman

... According to several reports, eight boats were involved in the fire. Four boats suffered major damage, according to fire officials at the scene. There are several reports that one boat sank. Fire investigators say they will question boat owners, in an effort to determine how the blaze might have started. One possibility being mentioned this morning is that a boat owner might have left a heater operating on a craft overnight.

Source: Charlotte Observer (Charlotte, NC)

 

Portable Electric Heater identified as heat source in a Multi-boat Fire

A fire that started by a portable electric heater on a boat docked in a covered marina spread to several other boats, fanned by high winds that impeded fire ground operations. The boats were moored at a wooden dock that had a wood frame and a metal roof overhang. The boat on which the fire started was at the end of a dock, several slips of which were occupied by other boats. The marina had no detection or sprinkler system and was closed for the night when the fire broke out.

Although a portable heater was identified as the heat source for the unintentional fire, the exact cause and the ignition sequence was unknown, The flames spread to the boat's interior and from there, to the roof overhang and several other boats before firefighters arrived.

Cautionary Tales from Other Boat Owners:

"My next door neighbor put a small electric space heater on his boat (an Islander 32) and set it to its lowest setting. As the weather got colder the heater cycled on-off until the extension cord melted and set the boat on fire. The fire gutted the entire inside of the boat until another neighbor saw the smoke and put the fire out. The boat was a total loss. It was 5 feet from my boat in the next slip. My neighbor scares me."
--Mike

"I used to use a light bulb in the winter until the cheapo housing slipped and the whole light came to rest on my holding tank. It was kind of scary to see the burnt marks in the ABS where the plastic had smoldered. I have no idea why the boat did not burn down. The plastic had obviously burned in places. You could not pay me to put a light bulb in my engine compartment now. They were not made for boats and are just too risky."
--Brett

Coast Guard closes Columbia River Bar due to hazardous weather

The following is the text of a press release issued by the U.S. Coast Guard:

22 November 2011

(SEATTLE) -- The Coast Guard Captain of the Port (COTP) Sector Columbia River, in Astoria, Ore., issued the closure of the Columbia River, Ore., bar entrance due to hazardous conditions at approximately 9 p.m., Monday.

The bar closure applies to all vessels and any request to transit the bars prior to reopening must be approved by the COTP, Sector Columbia River. Mariners may contact the Coast Guard on VHF-FM Channel 16 or Sector Columbia River by telephone at (503) 861-6211 for further information or to request crossing.

The Coast Guard will re-evaluate the bar closure on an ongoing basis and will re-open the waterway as soon as the offshore weather improves.

The bar is anticipated to re-open by 8 a.m., Wednesday, based on current weather predictions.

The Coast Guard understands the effects these closures have on commerce and will make every effort to re-open these waterways as soon as they are considered safe for navigation.

Alaska factory trawler to upgrade steam boiler plant

From Marine Log Article:
22 November 2011

Flekkefjord, Norway, based Parat Halvorsen AS has been awarded an order for an 8000 kg/h steam boiler plant to be installed in the factory trawler, Northern Hawk, which is owned by Coastal Villages Pollock, LLC.

Northern Hawk is a stern trawler, built by the shipyard Ulstein Hatlø in 1990. parat's delivery is a retrofit of the existing boiler plant, designed to meet the needs of the on-board fishmeal plant and vessel heating system. The new boiler plant will be delivered with the latest technology for burning fish oil.

Northern Hawk, whose homeport is Chevak, Alaska, will be docked in Seattle, Wash., in April of 2012 for the installation of the boiler plant, and for general maintenance and repair. Northern Hawk is a sophisticated commercial fishing vessel that operates in the waters of the Bering Sea harvesting Alaska pollock

Priority for standard private armed guards contract

From the Baltic and International Maritime Council (BIMCO)
21 November 2011


With the increasing use of armed guards on ships and the fear that second-rate security firms may take advantage of the piracy situation, BIMCO is forging ahead with the development of a standard contract for the employment of armed guards. The new contract, which will be drafted by a team of experts of shipowners, lawyers and underwriters, and with the assistance of the International Group of P&I Clubs, will require private security firms offering armed guards to follow the IMO Guidelines for owners on the used privately contracted armed security personnel on board ships (MSC Circular 1405). Of major importance is ensuring that security contractors have in place proper and sufficient public and employers’ liability insurance – which is a concern recently raised by the International Group of P&I Clubs. While much of the new BIMCO contract will deal with operational aspects of employing armed security guards, issues of liability and responsibility will be of prime importance.
New private maritime security firms are springing up almost daily to meet shipowners’ growing demands for their services for vessels operating in high risk areas. It is very important that this new sector is regulated and that harmonised terms are developed and agreed. BIMCO has given this project the highest priority so that the standard contract can be published as soon as possible – most likely within the next two months.

LNG use on Washington State Ferries Could Save Millions over Time.

An LNG-fuelled ferry would have significant environmental and economic benefits, according to a recently feasibility study for Washington State Ferries. Architectural and marine engineering firm, The Glosten Associates, recently completed the feasibility study for Washington State Ferries (WSF) on converting its 144-car ferry design to liquefied natural gas (LNG) propulsion. 

Glosten's study concluded that the conversion is both technically feasible and cost effective, although technical and regulatory challenges remain. The study examined design, economic, regulatory, and environmental issues. 

The operational savings for a single vessel are estimated to be between $900,000 and $1.25 million per year, after an upfront capital cost premium of $8.5 million to $10 million. Switching to natural gas fuel will significantly reduce emissions of nitrous oxides (NOx), sulfur oxides (SOx), particulate matter, and carbon dioxide (CO2). These greenhouse gases have been identified by the U.S. Environmental Protection Agency (EPA) as significant factors in harming human health, including respiratory illnesses, as well as damaging to the environment. 

Glosten’s design was formally reviewed by the United States Coast Guard (USCG). USCG provided extensive feedback as well as a written response, showing their willingness to work with owners early in developing a case-by-case design basis until official rules are developed. The USCG response provides WSF with a regulatory basis from which to advance the project design. This is an important result, as the lack of USCG regulations is often cited as a primary risk to vessel owners interested in reaping the benefits of LNG fuel conversion.

Overall, this looks very promising for the nation's largest ferry system to save on operating costs. The initial investment is pretty sizeable, however saving nearly a million dollars per year in fuel will do a lot to shrink the state budget. We think that this would be a great use of federal funds as opposed to some of the other job creation projects that have been touted - such as the high-speed rail project the current administration is pushing.

Click herefor the full Glosten Associates report.

Chevron Assumes Responsibility For Oil Spill. (What Spill?)

The article below from the Dow Jones Newswires  caught my attention this morning. I have actually been following this story for a couple of days now and realized I haven't seen this anywhere in the mainstream media. Why not? Granted this isn't the same as the horrific Deepwater Horizon spill in the Gulf of Mexico, however it is a spill nonetheless. Chevron is taking responsibility for it which is commendable. BP took responsibility for Deepwater Horizon, but they are vilified still today. (This is despite the fact several other companies have been found  to share the blame - which we don't hear about either.)

RIO DE JANEIRO (Dow Jones)–The Brazilian unit of major U.S. oil company Chevron Corp. (CVX) takes “full responsibility” for a leaking well bore that left a sheen of crude staining the Atlantic Ocean, a company official said Sunday.
“Any oil on the surface of the ocean is unacceptable to Chevron,” said George Buck, president of Chevron Brasil.
Chevron has plugged the appraisal well that was the primary source of the leaking crude, which traveled to the surface through a hole in the well bore after the rock wall of the well failed, Buck said.
Brazil’s National Petroleum Agency, or ANP, estimated the leak at between 200 and 330 barrels of crude per day, which was “in the ballpark,” Buck said. Another government estimate put the total volume of the spill at 5,000 to 8,000 barrels. Buck said that estimate was also “in the ballpark, perhaps high.”
Chevron has not used any chemical dispersants on the oil slick on the ocean’s surface, using only mechanical dispersion and collection, Buck said. He denied that Chevron was using sand on the sheen.
-By Jeff Fick, Dow Jones Newswires

Does anybody have any theories on why this environmental disaster isn't being covered? I would love to hear any input or theories.

Nation’s Third Littoral Combat Ship Successfully Completes Builder’s Trials

MARINETTE, Wisc., October 24th, 2011 — A Lockheed Martin [NYSE: LMT]-led industry team completed Builder’s Sea Trials for Fort Worth, the nation’s third littoral combat ship.

The trials – a coordinated effort between the U.S. Navy and the Lockheed Martin team including Marinette Marine Corporation (MMC) – were conducted in the waters of Green Bay and Lake Michigan. They included operational testing of the vessel’s propulsion, communications, navigation and mission systems, as well as all support systems.

“Successful completion of Builder’s Sea Trials means we are on track for the Navy’s Acceptance Trials, putting us a big step closer to getting the Navy the ships it needs,” said Joe North, vice president of littoral ship systems for Lockheed Martin’s Mission Systems and Sensors business. “We support the Navy’s effort to grow their fleet affordably and effectively.”

The rigorous trial period included maneuverability tests; high-speed runs; power and navigation system checks; rescue boat launch and recovery; and tracking exercises, as well as other ship and system evaluations.

Following the successful completion of Builder’s Sea Trials, Fort Worth returned to MMC to prepare for Acceptance Trials. LCS 3 will be delivered to the Navy next year and its home port will be San Diego, Calif.

Fort Worth, the second Freedom variant ship in the LCS program, was christened in December 2010. It is more than 96 percent complete and remains on cost and on schedule. LCS 3 is being constructed with 30 percent fewer production hours as a result of lessons learned from designing and building LCS 1, USS Freedom.

The team began construction on LCS 5, the future USS Milwaukee, in August.

Headquartered in Bethesda, Md., Lockheed Martin is a global security company that employs about 126,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation’s 2010 sales from continuing operations were $45.8 billion.

Pacific Drilling Raises $46 Million in IPO

LUXEMBOURG--(BUSINESS WIRE)-- Pacific Drilling S.A. (NYSE:PACD - News) (NOTC:PDSA) (“Pacific Drilling” or the “Company”) announced that yesterday it closed its previously announced initial public offering of shares of common stock at a price of $8.25 per share. Pacific Drilling sold a total of 6,000,000 shares, resulting in net proceeds of approximately $46 million after deducting underwriting discounts and commissions. The underwriters have been granted a 30-day over-allotment option to purchase up to an additional 900,000 common shares.
Morgan Stanley and Deutsche Bank Securities acted as joint book-running managers for the offering. DnB NOR Markets, Howard Weil Incorporated, Pareto Securities AS and Simmons & Company International acted as co-managers.
This offering was made solely by means of a prospectus, copies of which may be obtained by contacting: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, New York, NY 10014, telephone 1-866-718-1649 or by emailing prospectus@morganstanley.com or Deutsche Bank Securities Inc., Prospectus Department, Harborside Financial Center, 100 Plaza One, Jersey City, NJ 07311-3988, telephone 1-800-503-4611 or by emailing prospectus.cpdg@db.com.
A registration statement relating to this offering was declared effective by the Securities and Exchange Commission (“SEC”) on November 10, 2011. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Pacific Drilling
Pacific Drilling is an international ultra-deepwater offshore drilling company. Pacific Drilling’s fleet consists of six ultra-deepwater drillships. The Company currently operates three recently delivered drillships, expects delivery of its fourth drillship by end of 2011, and has two additional drillships on order at Samsung to be delivered in 2013.

Contact:

Pacific Drilling S.A.
Amy Roddy, Director, Investor Relations, 1-832-255-0502
Investor@pacificdrilling.com

US Navy Alternative Fuel Test Successfully Concluded

From NAVSEA
18 November 2011

The U.S. Navy successfully concluded its largest demonstration of shipboard alternative fuel use when the Self Defense Test Ship (SDTS) arrived at Naval Surface Warfare Center Port Hueneme, Calif., at 10:37 a.m. (PST), November 17 after a 17 hour transit from the Defense Fuel Supply Point at Naval Base Point Loma

The SDTS is a decommissioned Spruance-class destroyer, ex-Paul F. Foster (EDD 964). It has been reconfigured to provide the Navy with an at-sea, remotely controlled, engineering test and evaluation platform without the risk to personnel or operational assets.

The ship received approximately 20,000 gallons of a 50-50 blend of an algae-derived, hydro-processed algal oil and petroleum F-76 from the Defense Fuel Supply Point at Naval Base Point Loma, November 16.

"How can we have an impact?" asked Assistant Secretary of the Navy (Energy, Installations and Environment) Jackalyne Pfannenstiel at the demonstration's kick-off. "We can have an impact as a technology leader, highlighting and demonstrating the viability of biofuels as we are here today. This demo, the largest to date, is a major milestone for us. More than 50 percent of our fuel goes to maritime use. When this ship arrives in Port Hueneme, we will be a giant step closer to powering our Great Green Fleet and demonstrating progress toward a sustainable energy future."

Shortly after Assistant Secretary Pfannenstiel's remarks, the ship began its transit to Naval Surface Warfare Center Port Hueneme using the 50-50 blend. While EDD 964 has four LM 2500 main propulsion gas turbines and four 501-K17 ship service gas turbine generators, the ship only operated on one LM 2500 and two 501-K17s during the demonstration, so 100 percent of ship's propulsion power and 50 percent of service power came from the algal oil/F-76 fuel blend.

Meeting the Secretary of the Navy's call for a drop-in fuel replacement, no changes were required to the infrastructure of the ship or fueling pier for the SDTS test. The demonstration also marked the only at-sea operational test of alternative fuels in the LM 2500 – the engine found in most surface combatants – before the Green Strike Group demonstration in 2012.

"For the test, a baseline run was made on the ship's transit from Port Hueneme to San Diego using F-76 fuel," said Rick Kamin, Naval Fuels and Lubricants Cross Functional Team lead. "Using the 50-50 blend on the return run to Port Hueneme, the tested engines were assessed on their abilities to perform start sequences as well as motoring and purging operations noted in Engineering Operational Sequencing System procedures. We also collected data on compressor inlet temperature, engine speed, engine start time, fuel manifold pressure, turbine outlet temperature, turbine inlet temperature, ship service gas turbine generators power output, and gas turbine main engine shaft output."

"From our perspective as the ship's operators, there was absolutely no difference, whatsoever, in the operation or performance of the ship," said Naval Surface Warfare Center Port Hueneme Division's Mike Wolfe, underway project officer. "The fuel burned just like the traditional fuel we get from the Navy and have been burning for years. We could not tell the difference. The biggest success is that a Navy ship with engines identical to those in commissioned warships operated successfully on an overnight transit with the alternative fuel without a glitch in anything. Operationally, it was absolutely a success."

The alternative fuels effort supports the Navy's overall energy strategy to increase energy security and safeguard the environment. Recent and upcoming maritime vehicle alternative fuel testing include ongoing Yard Patrol boat demonstration at Naval Academy, Annapolis, Md., and a Landing Craft, Air-Cushioned vessel demonstration scheduled for early December at Naval Surface Warfare Center Panama City, Panama City, Fla.

Foss Maritime Awarded Washington State Ferry Newbuild Contract

WSF Director of Communications
17 November 2011

Washington State Department of Transportation (WSDOT), Seattle, WA, recently awarded a $9.6 million contract to Foss Maritime Co., Seattle, to build an all-aluminum, double-end, 20-car ferry to operate on Lake Roosevelt in Eastern Washington.
The new Keller Ferry vessel will have an overall length of 116 ft, beam of 45 ft 8 inches and molded draft of 7 ft. It will admeasure less than 100 gross tons and be built to conform with and certified to U.S. Coast Guard Subchapter T regulations. The ferry’s design and construction will be in accordance with ABS requirements, although it will not be ABS classed and the shipyard is not required to arrange onboard ABS inspection. ABS certificates will be required for certain pieces of equipment and the propulsion system vendor will be required to obtain ABS certification of the propulsion control system.

Building the ferry will also pose some unique challenges. The remote location of the Keller Ferry operation will require that the ferry be built in sections at Foss' Rainier, OR, facility and then transported about 350 miles across state and assembled on site at the ferry landing.

The new ferry, shown in the computer rendering at right, is being built to replace the 63-year-old Martha S. The Martha S. makes about 30 to 35 daily trips on a 1.25 mile route crossing the Columbia River between Lincoln and Ferry counties. The operation serves as a critical transportation link for nearby residents, school children, freight haulers and emergency services.
WSDOT said that the bid by Foss of $9,557,178 was nearly $250,000 less than the state’s estimate. Foss will deliver the new ferry in May 2013.

Hornbeck Executes Contracts for Newbuilds, $720 Million

From Marine Log
17 November 2011

Hornbeck Offshore Services, Inc. (NYSE: HOS) says it has executed definitive contracts for the construction of sixteen high-specification offshore supply vessels. Deliveries will take place between the second quarter of 2013 and fourth quarter of 2014.

VT Halter Marine, Inc. of Pascagoula, Mississippi and Eastern Shipbuilding Group, Inc. of Panama City, Fla, will each build eight 300 class vessels, with options to build additional vessels. Hornbeck's first decision with respect to the exercise of options will need to be made in September 2012. Delivery dates for option vessels will be approximately 26 months following the option exercise.

The total cost of the first sixteen vessels under this program is expected to be approximately $720 million, excluding construction period interest. Construction costs will be funded with cash on-hand (including the net proceeds of a recently completed equity offering), projected free cash flow from operations and, if necessary, available capacity under the Hornbeck currently undrawn and recently expanded $300 million revolving credit facility.

VT Halter Marine will construct eight vessels based on the Super 320 design that it has developed for Hornbeck Offshore. These DP2 OSVs are designed to have 6,200 long tons of deadweight capacity, approximately 20,900 bbls of liquid mud carrying capability, 11,863 sq. ft. of deck area and a fire-fighting class notation. The Super 320 design is based on a larger version of the HOS Coral, an existing 290 class DP-2 OSV which the company has successfully operated since her delivery in early 2009. The Super 320 design has been developed with particular attention to environmental regulations, including a double-hull that eliminates any fuel storage adjacent to the sideshell, and propulsion machinery that meets the requirements of EPA Tier 3 for stack emissions.

The eight OSVs to be constructed by Eastern Shipbuilding Group will be DP-2 classed. Four vessels will be based on the STX Marine SV 300 design and four will be based on the STX Marine SV 310 design. Features of the STX design include over 20,000 bbls of liquid mud carrying capacity and a fire-fighting class notation. The SV 300 design calls for 5,500 long tons of deadweight capacity and 10,976 sq. ft. of deck space, while the SV 310 design calls for 6,144 long tons of deadweight capacity and 11,536 sq. ft. of deck space. The STX designs meet the same environmental standards as the Super 320 design and will also carry the ENVIRO class notation by the American Bureau of Shipping.


November 17, 2011

General Maritime files for Chapter 11

From Marine Log

17 November 2011

 

Tanker operator General Maritime Corporation (NYSE: GMR) says it has filed for relief under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. Substantially all of the company's subsidiaries – with the exception of those in Portugal, Russia and Singapore as well as certain inactive subsidiaries– have also commenced Chapter 11 cases.

The company says the bankruptcy filing is necessary to implement a restructuring agreement reached with its key senior lenders, including its bank group, led by Nordea Bank Finland plc, New York Branch as administrative agent, as well as affiliates of Oaktree Capital Management, L.P.

General Maritime says the restructuring agreement and related equity commitment letter have the support of over two thirds of the company's obligations from its banks and Oaktree. Under terms of the agreements, Oaktree will provide a $175 million new equity investment in General Maritime and convert its prepetition secured debt to equity. Under the terms of the agreement, General Maritime expects to substantially reduce its funded indebtedness and enhance its liquidity profile. It says that operations are expected to continue without interruption.

In conjunction with the filing, General Maritime has received a commitment for up to $100 million in new debtor-in-possession (DIP) financing from a group of lenders led by Nordea as administrative agent. The initial amount of the DIP is $75 million, however, the credit facility contemplates that, if needed, the company will have access to another $25 million of future financing, subject to the applicable lenders' agreement, certain other conditions and further order of the Bankruptcy Court.

November 17, 2011