Coast Guard Detains Egyptian Cargo Vessel for Safety and Security Violations.

The following is a press release from the U.S. Coast Guard dated 01 NOV 2011.

(PORTLAND, Ore.) -- Coast Guard Sector Columbia River detained a foreign freight vessel for failure to comply with international and domestic regulations regarding safety, security, and environmental protection.

Early last week, while preparing to cross the Columbia River Bar, the 734-foot Egyptian cargo ship EDFU experienced a significant reduction in propulsion power. The vessel’s crew conducted an emergency anchoring operation until assist tugs could arrive on scene. Over the ensuing hours, the Coast Guard worked with the Columbia River Bar Pilots Association and local area response tugs to bring the vessel safely to berth in the Port of Astoria, Ore.

Shortly thereafter, Coast Guard inspectors from Marine Safety Unit Portland attended the ship in the Port of Astoria to investigate the loss of propulsion and ensure the vessel’s compliance with other safety and security regulations. While onboard, the inspectors discovered numerous deficiencies including cracked and deteriorated firefighting piping which prevented the ship’s crew from being able to respond to a fire aboard the ship. Furthermore, the vessel failed a critical security inspection and was not in compliance with its Security Plan. Capt. Bruce Jones, Commanding Officer of Sector Columbia River and Coast Guard Captain of the Port, issued an order detaining EDFU until all safety and security measures were corrected.

“EDFU’s failure to comply with numerous provisions of the SOLAS (Safety of Life At Sea) Convention, the ISPS (International Ship and Port Facility Security) Code and the ISM (International Safety Management) Code are unacceptable,” said Capt. Jones. “The economic vitality and security of our region depend upon the majority of maritime industry members who fully abide by U. S. and international safety, security and environmental standards. The Coast Guard remains committed to protecting our region by actively preventing and responding to any and all maritime threats.”

The ship has since come into full compliance with all security measures and has made substantial progress towards fully repairing the firefighting piping system and its associated components.

This case is an example of how the Coast Guard protects our nation’s maritime transportation system from substandard ships, and protects our ports and vital natural resources from accidental or intentional discharges of oil or hazardous material. The Coast Guard Captain of the Port will continue diligent oversight of all vessels subject to international and domestic laws and treaties to ensure they continue to comply with all applicable safety and security regulations in order to protect the people of our community, our environment, and our ports.

10000 Ships to Use LNG Propulsion by 2020?

This report comes from from MEC Intelligence. The impact of this suggests phenomenal growth (over 9000% growth) in LNG use for maritime propulsion. This growth over the next eight years could very well change the face of marine engineering.

LNG in marine propulsion: A Disruption to the Maritime Industry?

According a new forecast by MEC intelligence nearly 10,000 vessels could be adopting LNG propulsion by 2020 triggering a huge growth in the market. Companies in all aspects of the maritime value chain– oil majors, terminals, ports, bunker suppliers, service companies, component producers, vessel owners and charterers – need to rethink their offerings.”

A ground breaking report published by the maritime cleantech market insight firm MEC Intelligence estimates more than 5% of the world fleet will adopt LNG propulsion by 2020 a huge growth considering less than 100 vessels presently.

Best Option for Newbuilds

Strict environment regulations requiring the reduction of SOx, NOx to 0.1% in ECA zone in 2015 and 0.5% globally in 2020 will stimulate demand for technologies that can eliminate or reduce emissions from vessel exhausts. The key compliance options available are either adoption of new types of fuel – low sulphur MGO or LNG – or using scrubber technology on the existing HFO fuel.

The LNG propulsion technology will potentially gain massive traction in the new build segment owing to significantly lower operation costs leading to a lower total ownership cost over the ship’s lifecycle. The total ownership cost over ship’s lifecycle for a new build LNG propelled vessel (depending on vessel type and geography) is expected to be up to 40% lower as compared to that of a fuel oil and MGO propelled vessel.

The low cost are attributed to the abundant availability and competitive prices of LNG compared to crude. Even though, the price of LNG is expected to increase with the pickup in natural gas demand in power sector it is not likely to be significant considering the new supplies from unconventional gas reserves.

Further, considering the often more than 25 year long life cycle of vessels, LNG adoption makes the ship essentially future proof in terms of further regulatory driven emission reductions in SOx, NOx, and Particulate Matter approaching in the horizon.

Huge Long Term Impact Albeit a Slow Start

Better Economics combined with development of building capacity, recent advancements in engine and fuel gas technologies are leading to a pick-up in the interest in LNG propulsion. Although availability of infrastructure and standards is a limiting factor, yet, this is expected to be only a short term inhibitors. An analysis of the existing LNG supply and terminal infrastructure shows ample availability of the fuel to be able to supply and bunkering infrastructure can be developed rapidly to meet the growing fleet.

With the development of infrastructure and IMO ratifications the fleet is expected to reach up to 1,000 vessels by 2015 but pick up rapidly to grow up to 10 times in the subsequent five years as the technology, infrastructure, and economics stack equivocally in favour of LNG propulsion. However, in case infrastructure and regulation are delayed the penetration is estimated to be significant lower yet still significant.

Unique Opportunity to Differentiate and Shape the Market

The report concludes that the adoption of LNG in vessels will call for changes in all aspects of the value chain – oil majors, terminals, ports, bunker suppliers, service companies, components suppliers, owners and charterers – requiring companies to rethink their offerings and align to a new reality sooner or later. It is one of the unique times when companies can move fast to take advantage of a new technology to differentiate themselves in the largely ‘commodity’ market for equipment and services.

About MEC Intelligence

MEC Intelligence is a leading market insight firm focused on growth in the maritime, energy, and cleantech sectors. The company brings together its unique data assets, deep experience in supporting strategic and market business development, and broad industry knowledge to develop objective perspective on industry developments and identify growth opportunities for the entire maritime, energy, and cleantech ecosystem.