Russian Tanker on the Way to Nome, AK

From a US Coast Guard Press and Photo Release: o6 January 2012

Photo Release: Coast Guard icebreaker escorts tanker

BERING SEA - The Coast Guard Cutter Healy crew escorts the tanker Renda and crew from Dutch Harbor, Alaska, to Nome Jan. 5, 2011. The 420-foot Seattle-based Healy is currently the Coast Guard's only operating Polar Icebreaker. U.S. Coast Guard photo by Petty Officer 3rd Class Jonathan Lally. BERING SEA - A Coast Guard Air Station Kodiak HC-130 Hercules aircrew conducts an overflight of the Coast Guard Cutter Healy as it escorts the tanker Renda from Dutch Harbor, Alaska, to Nome Jan. 5, 2012. The Healy crew is scheduled to break a path in the ice near Nome so the Renda crew can deliver critical fuel supplies to the city. U.S. Coast Guard photo by Petty Officer 3rd Class Jonathan Lally. For more information contact Petty Officer 1st Class Sara Francis at 907-321-4501.

The Russians Are Coming to Nome, AK.

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

(04 January 2012)

(DUTCH HARBOR, Alaska) -- Coast Guard inspectors completed a port state control exam on the double-hulled ice-classed Russian tanker Renda today in Dutch Harbor.

"The tanker vessel Renda met all applicable federal laws and regulations and can operate in U.S. waters following the successful completion of a required Coast Guard port state control examination," said Rear Adm. Thomas Ostebo, commander District 17. "Our daily discussions will continue with our federal, state, local, tribal partners, and the marine industry to ensure the highest standards of safety and compliance are in place to mitigate risks to the people of Nome, the crews of the vessels, and the environment."

The Renda will be escorted by the Coast Guard Cutter Healy and is expected to arrive in Nome on Jan. 8, 2012 if on scene weather conditions permit safe passage.

The Healy will lead the Renda through 300 miles of ice to within a half mile of the harbor entrance. "Upon arrival, the Renda will transit the remaining distance to stable ice close to the harbor entrance to transfer fuel via hose under approved procedures," said Capt. Craig Lloyd, District 17 chief of response who is coordinating the mission. "University of Alaska personnel are in Nome to assist in determining the thickness of the ice outside the harbor entrance. Due to a large ridge of ice at the harbor entrance, the Renda is unable to enter the actual harbor."

The Secretary of the U.S. Department of Homeland Security approved a Jones Act Waiver Dec. 30, 2011 to Vitus Marine authorizing the foreign-flagged tanker to deliver gasoline from Dutch Harbor to Nome. Renda arrived in Dutch Harbor laden with diesel fuel that was on loaded in Asia. The Jones Act waiver was required since Renda could not load the gasoline cargo in Asia due to weather and scheduling constraints. The vessel is scheduled to take on additional cargo of gasoline in Dutch Harbor today.

The Healy's participation was contingent upon the following items: the Renda passed the port state control exam, there were no inordinate delays, the fuel transfer plans met federal and state requirements and on scene weather conditions permit safe passage.

Sitnasuak Native Corporation of Nome signed a contract with Vitus Marine LLC to deliver 1.3 million gallons of petroleum products to Nome via Renda around the second week of January. If successful, this will mark the first time that petroleum products have been delivered by sea to a Western Alaskan community through ice covered waters.

"This has been and continues to be a highly orchestrated effort between all stakeholders to ensure mission success" said Ostebo. "As we have done for more than 220 years, the Coast Guard is dedicated to ensuring the safe and secure transfer of maritime commerce. The Healy, our nation's only operating polar ice breaker, and its crew are committed to upholding our long history of service to the residents of Alaska."

The Healy is named after Capt. Mike Healy, an 19th century Coast Guard hero. As the commanding officer of numerous Coast Guard cutters, "Hell Roaring Mike", enforced federal law, provided search and rescue, and provided humanitarian assistance along Alaska's 20,000 mile coastline in the late 1800s. The cutter is 420-feet long and has extensive scientific capabilities. Homeported in Seattle, the cutter has a permanent crew of 80 and was originally scheduled to return home in mid December. The primary mission is scientific support but it is capable of other Coast Guard and defense operations such as search and rescue, domestic ice breaking, environmental protection and the enforcement of laws and treaties in the Polar Regions.

50-foot yachts destroyed in 2-alarm fire at Edmonds Marina

From KOMO news:
31 December 2011

EDMONDS, Wash. - Two 50-foot motor yachts were destroyed in a spectacular two-alarm fire at the Edmonds Marina early Saturday morning.

Fire crews responded to the scene just before 4 a.m. and found towering flames spewing from the two boats, lighting up the early morning sky.

The fire was called in by a janitor working in a nearby business.

"Two boats moored next to each other were engulfed in flames when firefighters arrived and flames were shooting 50 feet in the air," said Leslie Hynes of Snohomish County Fire District 1.

No one was aboard the burning boats, but a man and a woman staying overnight in another boat moored at the same dock had to be rescued by firefighters, Hynes said.

She said the burning boats were moored in the first two slips of the dock, and the flames cut off the couple's access to the shore.

"They were stuck at the far end of the dock in the smoke until they were rescued by the fire department boat," Hynes said.

The man and woman were taken to Swedish-Edmonds Hospital, where they were both treated for minor smoke inhalation and released a few hours later.

Firefighters from Lynnwood and Shoreline responded to assist Fire District 1. At the peak of the fire, about 40 firefighters were on the scene.

"The docks were very icy and slippery, which was a challenge for firefighters as they worked to put out the fire," Hynes said. "They used an overhead water stream from a ladder truck and firefighting foam to smother the flames."

It took firefighters about 30 minutes to get the fire under control, but crews continued to battle hot spots for about an hour as the boats smoldered and fuel ignited. One of the boats sank as the firefighting effort continued.

Damage to both yachts and the dock is expected to total more than $600,000.

Fire investigators are working to determine how the fire started. "The boat where the fire started sank and will have to be raised. Investigators do not expect to have a cause today," Hynes said.

As firefighters were putting out hot spots, crews from the Port of Edmonds set up containment booms. The state Department of Ecology is on the scene working to control and prevent environmental damage.

Nome is Waiting On Jones Act Waiver

I am finding myself getting "sucked in" to another political article. I find it unavoidable this time. I apologize to all of the people on the Left and Right that I may offend.

Several weeks ago, the Congress and the Senate unanimously passed the America's Cup Act of 2011 in order to allow the America's Cup World Series (ACWS) Event to take place in San Diego. (See our blog entry from 06 November 2011) from The noteworthy aspect of this was that Congress provided, essentially, a Jones Act Waiver to host the ACWS event in under 10 days. Nome has been trying to solve their Winter/Spring fuel problem for over a month now.

I find it interesting that our elected congressional officials were the "only ones" who could preserve the America's Cup event enabling jobs, an economic boost for San Diego and San Francisco. They did this in 10 days, yet a small town in Alaska can wait for a month to find out if they will freeze in February. I see that congress is very concerned with the welfare of all Americans. 10 days to pass a waiver that will create nearly 8000 jobs is impressive until you contrast it with the heating fuel and gasoline that will keep 5000 people warm during the coldest part of the year.

The point of this being, the America's Cup Act was completely and entirely one politician's PR stunt to put a feather in her cap for her (and her party's) re-election hopes. It was unnecessary, because the America's Cup Authority could have gotten the Jones Act Exemption the same way Nome, Alaska is getting it. Now, for every expedited exemption to the Jones Act gets to be run through Congress, which will continue to punch holes in a law that has been around since 1925.

For now, Nome, Alaska's well being (financial and otherwise), according to congress' inaction has been told its citizens are not as important as San Diego's.


The following is an Broadcast from Alaska Public Radio:

By Ben Matheson, KNOM - Nome | December 29, 2011 - 5:51 pm

Vitus Marine, the company contracted to help get fuel delivered to Nome, is hoping to hear back Friday on the status of the Jones Act waiver for the Russian tanker Renda. The waiver is necessary for the tanker to be able to load gasoline in Dutch Harbor. Mark Smith, CEO of Vitus Marine says the Defense Department and Maritime Administration have weighed in to Customs and Border Protection, who ultimately makes the decision. The waiver claims that Nome’s fuel is of indirect significance to national security. Alaska’s congressional delegation has sent a letter urging the government to approve the waiver.
Meanwhile, the tanker is headed towards port. Smith says the Renda was 340 miles southwest of Attu this morning. It’s expected to be in Dutch Harbor by the afternoon of Jan. 2.
Several question remain on the final routing and offloading of the fuel, but the regulatory pieces are starting to come together. On Tuesday, Vitus submitted its delivery plans to be approved by the state, filing an amendment to its oil discharge prevention and contingency plan to incorporate the cold weather considerations. The vessel support plan is unique as ice-capable tugs and spare barges will not be on hand – instead the Healy will assist, and land based tanks will provide space in the case of an emergency. The Renda itself is ice capable, but the state Department of Environmental Conservation is requiring the Healy’s participation.
The plan calls for the staging of skimmers, thousands of feet of boom, pumps, sorbent pads, tank trucks, and a bobcat. Vitus has contracted with the Chadux corporation to have spill response equipment on hand. There will be a spare 610,000 gallon tank available for emergency use even after the fuel is transferred.
John Kotula is the Manager of the Marine Vessels section for the Department of Environmental Conservation. He says the agency now is making sure that the plans and resources will be ready.
Additional logistics plans are in place for lighting and monitoring the transfer hose if it goes across the ice. The Renda will have extra environmental protection on board, plus three extra officers for a crew of 21. The document says Crowley has agreed to lend equipment in Nome should it be needed. And in addition to the Healy, the plan calls for the Coast Guard to supply a helicopter on shore, with C-130 support overhead, plus specialty personnel. Kotula says the state is in communication with private industry and government groups to make sure the pieces come together in the plan.
Vitus CEO Mark Smith says he’s confident in the plan. He says it’s based in part on what happens on the North Slope on a regular basis. The oil spill response plan is out for public review until Jan. 3.

Icebreaker Aids Stricken Fishing Vessel

27 December 2011
The Associated Press

WELLINGTON, New Zealand — A South Korean polar research ship on Monday reached a leaking Russian fishing vessel that has been stuck in the frigid waters off Antarctica for the past 10 days, New Zealand officials said.
The Sparta, with 32 crew on board, hit underwater ice on Dec. 16 that tore a 30-centimeter hole in its hull and caused it to list at 13 degrees. Several rescue ships had been hampered by heavy ice in the Ross Sea off the northern Antarctica coast before the icebreaker Araon finally pushed through and reached the Sparta on Monday, New Zealand Rescue Coordination Center spokeswoman Rosalie Neilson said.
The arrival was a relief to the crew, which had been desperately pumping out near-frozen sea water while awaiting rescue. At one point, more than half of those on board were forced onto life rafts.
The crew is made up of 15 Russians, 16 Indonesians and one Ukrainian.
A New Zealand air force cargo plane had previously made two parachute drops of pumps and hull patching gear that had helped keep the single-hulled Sparta from sinking.
The survival drama on the edge of the Antarctic ice shelf is taking place about 3,700 kilometers southeast of New Zealand.

Bonga Platform Closes After Nigeria's Worst Spill in a Decade

From Bloomberg Business News

21 December 2011

By Eduard Gismatullin and Elisha Bala-Gbogbo

Dec. 21 (Bloomberg) -- Royal Dutch Shell Plc, Europe’s largest oil company, shut its 200,000 barrel-a-day Bonga field off Nigeria after a leak during a tanker loading caused what may be the country’s worst offshore spill in more than a decade.

An export line from the field’s floating production, storage and offloading vessel was probably the cause of the leak, estimated at below 40,000 barrels of crude, Shell said in a statement today. The oil flow has been halted, it said.

“We’re aware of the incident and we’re working hard with Shell to contain the spill,” Idris Musa at the National Oil Spill Detection and Response Agency said today from the capital.

The leak is expected to be the worst since a January 1998 Exxon Mobil Corp. spill dumped an estimated 40,000 barrels into the sea from its Idoho platform, with slicks reported as far west as Lagos. Shell, the largest foreign oil producer in Nigeria, has been criticized by some local people and foreign groups for spills of crude from its onshore fields.

The Anglo-Dutch company, operating in Nigeria since 1937, says most spills occur because of pipeline sabotage and oil theft and it has set up a website to disclose data on leaks.

“Spill response procedures have been initiated and emergency control and spill risk procedures are up and running,” Tony Okonedo, a Shell spokesman, said by phone from Lagos, the commercial capital. Shell is sorry for the leak, Mutiu Sunmonu, its Nigerian chairman, said in the statement.

Shares Advance

Bonga, Nigeria’s first deepwater discovery, produces almost 10 percent of the country’s crude 120 kilometers (75 miles) off the coast. Shell planned to export five cargoes of 1 million barrels each of Bonga crude every month from December to February, loading programs obtained by Bloomberg News show.

Shell pared an advance of as much as 1.4 percent in London trading to close the day up 0.4 percent at 2,288 pence. Shell’s American depositary receipts climbed 0.4 percent to $71.79 at the close in in New York.

“They averted a potentially much more serious situation, they figured it out very quickly,” Fadel Gheit, an analyst at Oppenheimer & Co. in New York, said in a telephone interview today. “I think the market is recognizing the responsiveness of the company.”

Gheit, who has an “outperform” rating on Shell’s American depositary receipts and owns some, said he’s glad “sanity prevailed” on the stock market. While the amount of oil spilled is substantial, he said, this isn’t a “runaway field” like what BP Plc dealt with in the Gulf of Mexico last year.

Yesterday Shell said a Gulf of Mexico drilling operation will stop for weeks after spilling 319 barrels of drilling fluid.

--With assistance from Sherry Su in London and Edward Klump in Houston. Editors: Tony Barrett, Charles Siler
To contact the reporters on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net; Elisha Bala-Gbogbo in Abuja at ebalagbogbo@bloomberg.net
To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

Hawaii Superferries to become US Navy Property

From Marine Log
19 December 2011

As widely predicted, the two AustalUSA built former Hawaii Superferries, Huakai, and Alaka, are at last going to wind up under Navy control. Shipbuilding guru Tim Colton has found the following tucked away in the Defense Authorization Act of 2012:

SEC. 1026. TRANSFER OF CERTAIN HIGH-SPEED FERRIES TO THE NAVY.

(a) TRANSFER FROM MARAD AUTHORIZED.—The Secretary of the Navy may, subject to appropriations, from funds available for the Department of Defense for fiscal year 2012, provide to the Maritime Administration of the Department of Transportation an amount not to exceed $35,000,000 for the transfer by the Maritime Administration to the Department of the Navy of jurisdiction and control over the vessels as follows:

(1) M/V HUAKAI.

(2) M/V ALAKAI.

(b) USE AS DEPARTMENT OF DEFENSE SEALIFT VESSELS.—Each vessel transferred to the Department of the Navy under subsection (a) shall be administered as a Department of Defense sealift vessel (as such term is defined in section 2218(k)(2) of title 10, United States Code).

62 Million in Grants go to Port Improvement

From IFW-Logistics
20 December 2011


The US Department of Transportation (DoT) has announced $62 million in port-related grants as part of the third round of funding in its TIGER (Transportation Investment Generating Economic Recovery) programme.

Four of the 46 awards go directly to US port-related infrastructure, comprising around 12% of the total $511 million available for capital grants.

South Jersey Port received $18.5 million to repair the DelAir Bridge (pictured), which links the rail networks of Pennsylvania and New Jersey and enhances freight movement throughout the north-east.

Port of Long Beach got $17 million to improve tracks to two rail yards and relieve a rail chokepoint, improving efficiency, reducing the environmental impact of freight movements and enabling the port to move 35% of goods by on-dock rail by 2035.

Port of Jacksonville received $10 million for the Dames Point Intermodal Container Facility that will be used by CSX railroad.

In addition, Port of New Orleans received US$16 million, as previously reported in IFW.

A number of TIGER-funded projects also address key congestion points along main rail lines, inland port facilities and highway trade corridors, making a positive impact on freight mobility and the movement of goods to and from US seaports.

TIGER grants are awarded to transport projects that contribute to the long-term economic competitiveness of the US, improve existing transport facilities and systems, increase energy efficiency and reduce greenhouse gas emissions and improve safety.

In the first round of TIGER grant awards, port-related infrastructure projects received 8% of the original $1.5 billion. In the second round of grants, port-related infrastructure received 17%.

New LNG fuelled tanker first for inland waterways

From Marine Log
15 December 2011

The inland waterways of the Netherlands are now home to the 6,100 dwt Argonon, the world's first new LNG-fuelled tanker, following its delivery by the Dutch Shipyard Trico B.V.
Built to Lloyd's Register class, MT Argonon represents a significant milestone for the Deen Shipping subsidiary, Argonon Shipping B.V., in its pursuit of cleaner transport solutions for Europe. Lloyd’s Register helped the owners and regulators to identify their risks, meet regulatory requirements and overcome the technical challenges for the precedent-setting tanker.
"This has been a great project and it is a significant first," said Piet Mast, Lloyd’s Register's Marine Business Manager for Western Europe. "The nature of inland waterways traffic, which passes through or close to major population centers, makes LNG an attractive way to reduce harmful local emissions. We had to look carefully at the risks and worked closely with the owner and the regulators to ensure that they understood, and were comfortable with, the technical solutions that were developed."
The dual-fuel system is designed to burn an 80/20 mixture of natural gas and diesel, reducing SOx, NOx and particulate-matter emissions, as well as reducing the greenhouse gas emissions from tank to flue. The LNG is stored in a transport tank located on deck, supplied by Cryonorm Projects, based near Amsterdam.
"The inland shipping industry, as far as we know, is the safest and cleanest mode of transport. But, to keep this lead, we have to take a big step forward in environmental performance," said shipowner Gerard Deen. "I think that the dual-fuel principle is a way to reduce the emissions in our sector. Lloyd’s Register was very pragmatic in their approach to finding solutions to convert seagoing regulations into inland shipping rules regarding dual fuel."
Along with Lloyd’s Register, the Netherlands Shipping Inspectorate approved the vessel’s LNG system for operation in the Netherlands and the ship has taken on its first load of LNG bunker fuel. The next step is to secure the regulatory approvals from the Central Commission for Navigating on the Rhine and the UN-ECE ADN Safety Committee, to open the way for navigation beyond the Netherlands.
"The owners are to be congratulated for being pioneers," said Mast. "At Lloyd’s Register, we have been involved with LNG for a long time, so were able to provide support through the plan-approval and construction processes. We now look forward to supporting the ship through many years of ‘clean’ trading."
Argonon has entered service and will start operating with gas this week following some final, main-engine tests. Propulsion power for the 110-meter-long tanker is supplied by two, dual-fuel Caterpillar DF3512 engines, each providing 1,115 KW.
The ship has the capacity to transit from Rotterdam to Basel and back without bunkering.
"We are currently providing technical and regulatory guidance for 20 confirmed or proposed inland waterway applications that intend to use LNG as fuel," says Bas Joormann, West European Area Inland Waterway Product Manager for Lloyd’s Register. "There is a lot of interest, and for good reason. Inland waterways, like ferries in emission-control areas, are very suitable for LNG. But the regulatory regime is different. We're helping owners and governmental bodies to identify the risks and manage them to at least the level of safety provided by the existing fuel-management and combustion requirements."

Political Shenanigans

My posts are generally related specifically to the Marine Industry, so this is a modest one-time departure from that theme. Today, the congress passed a two month extension of the payroll tax cut, in addition to funding the government for the remainder of the governments fiscal year. There is an incredible amount of political grandstanding happening at the expense of the American people. 

I am currently unemployed, trying to survive on the income generated by this blog (which isn't easy.) I have been denied unemployment; I am a Veteran; and I have been dedicating 40 to 50 hours per week looking for a new career. No less than 9 times, I have been told by prospective employers that they were waiting to see what the tax implications are before taking on any new employees. 

So, to the American Congress, I would like to give a big (and yes, very sarcastic) "Thank You!" 

Perhaps the most stomach turning rhetoric I'm hearing is the push to create more jobs for the Veterans coming home from Iraq. Meanwhile, the Keystone Pipeline remains on hold; the payroll tax cut is temporarily extended for two moths; major shipping ports are in need of significant improvements; Inland waterways are in need of improvement; Schools are still a mess; and there is still no dramatic economic rebound from the  800 billion dollars in "shovel-ready" projects that were supposed to save us all. 

Businesses like stability, and our Congress is not providing that. Two months? Again, my sarcastic thank you. Thank you for giving business 2/3 of one fiscal quarter in stability and predictability.

So, what will I do? Well, I will continue looking for work. Hopefully, the new year will  yield more positive results.

Record Breaking Volumes for Port of Los Angeles

Fron IFW Freight and Logistics News Service
16 December 2011


The US port of Los Angeles has reported a record year for exports, buoyed by an all-time monthly high for goods shipped overseas in November, the second consecutive month of record export volumes.

LA exported 1.9 million containers in the first nine months of 2011, breaking the previous record of 1.8 million in full-year 2010.

And imports were 6.2% higher in November than in 2010.

The largest US container port said it was on course to export more than 2 million teu this year.

Exports reached the highest monthly volume in the port’s history last month, handling 195,877teu, 15% up on the previous November. And in October, the port handled 193,547teu, up 28% on October 2010.

Goods exported include raw materials, cotton and grains, as well as high-value goods, including computers, medical equipment and aerospace components.

The rise in export volumes from LA has been buoyed by the weak US dollar boosting demand for US goods, particularly in Asia. The stagnant domestic economy also has forced the country to find new income in foreign markets.

Last year, President Obama outlined a National Export Initiative, aiming to double exports through the nation’s seaports by the end of 2014 to boost the ailing domestic jobs market.

The US will focus on India, China, Brazil and other emerging markets with strong potential for growth.

Like the Railroads, but better.

From Professional Mariner
08 December 2011
(NASHVILLE, Tenn.) -- America's barge industry is entering the spotlight in an effort to win more federal dollars, National Public Radio reported. Waterborne infrastructure needs an estimated $8 billion worth of work. The industry said barge transportation is "like railroads but better." One critic argues that private business should pay for the improvements.    For the original NPR broadcast click here.

Navy Purchases Nearly Half Million Gallons of Biofuel

WASHINGTON, Dec 5, 2011 (GlobeNewswire via COMTEX) -- Dynamic Fuels, LLC, a joint venture between Tyson Foods, Inc. and Syntroleum Corporation, has been awarded a contract to supply the U.S. Navy with 450,000 gallons of renewable fuels. Solazyme, Inc., a renewable oil and bioproducts company, will help Dynamic Fuels fulfill the contract, which the Navy and the USDA report is the single largest purchase of biofuel in government history.
The contract involves supplying the Navy with 100,000 gallons of jet fuel (Hydro-treated Renewable JP- 5 or HRJ-5) and 350,000 gallons of marine distillate fuel (Hydro-Treated Renewable F-76 or HRD-76). The fuel will be used as part of the Navy's efforts to develop a "Green Strike Group" composed of vessels and ships powered by biofuel.
The Navy contract follows on the heels of both companies' involvement in historic commercial airline flights using biofuel. This includes Dynamic Fuels' renewable jet fuel work with KLM Royal Dutch Airlines, Finnair, Thomson Airways and Alaska Airlines, and Solazyme's recent flight and partnership with United Airlines, which includes a letter of intent to provide 20 million gallons a year starting in 2014.
The fuel for the Navy will be manufactured at Dynamic Fuel's Geismar, Louisiana, renewable fuels plant using U.S.-sourced yellow grease (used cooking oil) as well as Solazyme's tailored algal oil as feedstocks. The fuel will be delivered to the U.S. Navy in May 2012. The Dynamic Fuels plant, which has been in operation for more than a year, is designed to convert non-food feedstocks such as algal oil, animal fats, and greases into renewable fuels.
"This award clearly demonstrates that we're building momentum for the sale and use of our renewable fuels," said Jeff Bigger, director of the Dynamic Fuels LLC Management Committee. "We've previously provided the U.S. military with fuel for testing. We believe this contract confirms they recognize the performance and environmental advantages of our fuel since they're coming back for more and are asking for a much larger volume."
"This is an historic contract and we are proud to be teaming up with Dynamic Fuels to produce and deliver the advanced biofuel to the U.S. Navy to sail the Great Green Fleet. Dynamic Fuels has been a leader in next generation advanced biofuels technology and this partnership further solidifies the progress that both of our companies are making in bringing advanced renewable fuels to commercialization," said Jonathan Wolfson, CEO, Solazyme. "Solazyme is honored to be working with the U.S. Navy and DLA-Energy in driving forward the Navy's effort under Secretary Ray Mabus to source 50 percent of its energy from renewable sources by 2020."
To see video of operations at Dynamic Fuels, click on the following link:
http://www.youtube.com/watch?v=zsI1dov9Xbw
Photos of the facility can be seen by clicking:
http://www.flickr.com/photos/tysonfoods/sets/72157625319377772/ .
About Tyson Foods
Tyson Foods, Inc., founded in 1935 with headquarters in Springdale, Arkansas, is one of the world's largest processors and marketers of chicken, beef and pork, the second-largest food production company in the Fortune 500 and a member of the S&P 500. The company produces a wide variety of protein-based and prepared food products and is the recognized market leader in the retail and foodservice markets it serves. Tyson provides products and services to customers throughout the United States and more than 130 countries. The company has approximately 115,000 Team Members employed at more than 400 facilities and offices in the United States and around the world. Through its Core Values, Code of Conduct and Team Member Bill of Rights, Tyson strives to operate with integrity and trust and is committed to creating value for its shareholders, customers and Team Members. The company also strives to be faith-friendly, provide a safe work environment and serve as stewards of the animals, land and environment entrusted to it.
The Tyson Foods, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3224
About Syntroleum
Syntroleum Corporation owns the Syntroleum(R) Process for Fischer-Tropsch (FT) conversion of synthesis gas derived from biomass, coal, natural gas and other carbon-based feedstocks into liquid hydrocarbons, the Synfining(R) Process for upgrading FT liquid hydrocarbons into middle distillate products such as synthetic diesel and jet fuels, and the Bio-Synfining(R) technology for converting animal fat and vegetable oil feedstocks into middle distillate products such as renewable diesel and jet fuel using inedible fats and greases as feedstock. The 50/50 venture -- known as Dynamic Fuels -- was formed to construct and operate multiple renewable synthetic fuels facilities, with production on the first site beginning in 2010. The Company plans to use its portfolio of technologies to develop and participate in synthetic and renewable fuel projects. For additional information, visit the Company's web site at www.syntroleum.com
About Solazyme, Inc.
Solazyme, Inc. is a renewable oil and bioproducts company that transforms a range of low-cost plant-based sugars into high-value tailored oils. Headquartered in South San Francisco, Solazyme's renewable products can replace or enhance oils derived from the world's three existing sources -- petroleum, plants and animal fats. Initially, Solazyme is focused on commercializing its products into three target markets: (1) fuels and chemicals, (2) nutrition and (3) skin and personal care. Solazyme's oils and fuels provide compelling solutions to increasingly complex issues of fuel scarcity, energy security and environmental impact while fitting into the pre-existing multi-trillion dollar fuel infrastructure. For more information, please visit our website: http://www.solazyme.com
Solazyme(R), the Solazyme logo and other trademarks or service names are the trademarks of Solazyme, Inc.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Solazyme, including statements that involve risks and uncertainties concerning: the future manufacture and delivery of jet fuel by Solazyme and the timing of such delivery; the potential purchase of fuel by United Airlines; the timing of the delivery of fuel to the U.S. Navy and what that fuel will be used for; and Solazyme's future commercialization plans. When used in this press release, the words "will," "expects," "intends" and other similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such statement may be influenced by a variety of factors, many of which are beyond the control of Solazyme, that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this press release due to a number of risks and uncertainties. Potential risks and uncertainties include, among others: the ability of Solazyme and/or Dynamic Fuels to produce in-spec jet fuel at a commercially acceptable price; Solazyme's ability to access sufficient manufacturing capacity; and Solazyme's ability to maintain existing, and establish new, strategic business relationships. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of Solazyme.
In addition, please refer to the documents that Solazyme, Inc. files with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q, for a discussion of these and other risks. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. Solazyme is not under any duty to update any of the information in this press release.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Dynamic Fuels

The Russians Are Coming!

This is a nice follow up to our post on November 29th about the failed fuel delivery to Nome, Alaska. The Jones Act Actually gets in the way of a more economical solution. I will also be a historical event for the Nome and the State of Alaska.


By Laureli Kinneen, KNOM - Nome | December 5, 2011 - 1:28 pm 

Photo courtesy of Elaine Smiloff, Adak Harbormaster

A failed marine delivery of 1.6 million gallons of fuel due to November’s storm spurred the leadership at the Sitnasuak Native Corporation in Nome to get creative. They’re looking to Russian and Korean companies to keep fuel costs down in the Western Alaskan community.
Sitnasuak and a Russian shipping company may very well make history this month. Sitnasuak Native Corporation has signed a contract with Vitus Marine to deliver 1.5 million gallons of fuel to Nome – via marine tanker. The delivery in the double-hulled Ice Classed Russian tanker is scheduled for late December and will replace the 1.6 million gallons that was not delivered by Delta Western due to the November storm.
If the newly-planned delivery is successful, Sitnasuak Board Chairman Jason Evans says the voyage will mark the first time a marine fuel delivery is made to a Western Alaska community in winter.
Evans says, overall, while untraditional, the icebreaking option is significantly lower in costs than flying fuel to Nome. He says there are too many variables at this point for a specific number that consumers will eventually pay.
The Russian vessel, the Renda is currently in Vladivostok, Russia and will be inspected by the Coast Guard on Wednesday. The Jones Act states that a foreign vessel cannot carry cargo from the U.S. to the U.S., so the fuel will be purchased in Inchon Korea. Evans says there will be added costs to this mode of delivery.
When it comes to Delta Western – the company that did not deliver the original fuel purchase – Vice President Kirk Payne says he’s not sure what fair share means.
Payne says there are no lawyers involved and nothing has been filed. He says a dialogue continues between the two companies.
The double-hulled Ice-Class Russian tanker the Renda is certified to travel through four feet of ice and recently traveled through five feet of ice while delivering fuel to the Russian Far East. It’s unclear whether the Renda will dock at the inner or outer harbor once it arrives in Nome. The tanker has two kilometers of hose that could be put over the ice to the fuel depot.
The U.S. Coast Guard is getting approval for the U.S.’s only icebreaker – the Healy – to remain in the area until the delivery is made.

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.

___

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.