MARINE NEWS-JUNE 2010

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

InsightsKen CognevichPresident & Founder, Engine Monitoring Inc.

Tech FileBatteryPowerFor Maritime Use

MarineNews J U N E 2 0 1 0

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

CEO 6-Pack

The Leadership Edition

Hornbeck Cook Weakly Faber Carpenter Doyle

WE’RE MAKING WAVES BY REDUCING MAINTENANCE TIME AND COSTS

Face it. If your vessels are not in service, you’re not making money. And that’s why with Delo,

along with the people, industry expertise and technology behind it, you can count on

exceptional protection for your fleet. When it comes to maximizing engine life and managing

the bottom line, it’s no wonder fleets rely on Chevron’s advanced lubricants and coolants.

To find out more, visit chevronlubricants.com.

© 2007–2008 Chevron Products Company, San Ramon, CA. All rights reserved. All trademarks are the property of Chevron Intellectual Property LLC.

Power to propel both vessels and business.Since 1902, commercial mariners around the world have reliedon Scania engines to power their fishing boats, patrol boats,tug boats and ferries. No matter the application, Scania marineengines have earned a reputation for their robust performance,legendary durability and outstanding fuel economy.

Read more at www.scaniausa.com

Scania U.S.A., Inc.• San Antonio, TX • Phone 210.403.0007 • Fax 210.403.0211E-mail: [email protected] • Web site: www.scaniausa.com

Northeast / Great LakesMack Boring & Parts Co.

908-964-0700

Southeast / Gulf CoastCertified Diesel954-583-4465

NorthwestCascade Engine Center

206-764-3850

SouthwestBoatswain’s Locker

949-642-6800

DISTRIBUTORS

Scania engines - 12 or 16 literwith ratings from 300 to 800 hp

Scania U.S.A. Inc.

Distributed by:

8 TechFile Advancing Battery Technology10 Insights Ken Cognevich, President & Founder, Engine Monitoring14 BOM Hysucraft for Corps of Engineers24 Briefs In Memory of Don Sutherland

16 Finance What You & Your CFO Should Know• By Richard J. Paine, Sr., Marine-Finance.com

18 Salvage A Primer on Responder Immunity• By Jim Shirley, American Salvage Association

18 Legal How Effective Leadership Saved the Crew• By Lawrence R. DeMarcay, III, Fowler Rodriguez Valdes-Fauli

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Briefs

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44 BLOGS on MaritimeProfessional.com46 Market: Software Solutions48 People & Companies53 By the Numbers54 Directory 56 Technology Bits

June 2010 • Number 6 • Volume 19

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30 CEO Six-Pack MarineNews is proud to again present insights fromsome of the workboat industry’s most influential lead-ers, including:

• Todd Hornbeck• Harry Cook• James Weakly• Gary Faber• Jennifer Carpenter & • Margaret Kaigh Doyle

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POSTMASTER Time Value Expedite

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PUBLISHERJohn C. O’Malley • [email protected]

Associate Publisher & EditorGreg Trauthwein• [email protected]

Managing EditorRaina Clark • [email protected]

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

Randy O’Neill • Jim Shirley • Don Sutherland • Ken Wells

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

SALESVice President, Sales & Marketing

Rob Howard • [email protected] Administration & Office Manager Rhoda Morgan • [email protected]

Sales & Event Coordinator Michelle Howard • [email protected] Sales Manager Dale Barnett • [email protected]

tel: 212-477-6700

Advertising Sales ManagersPatrick Haley • [email protected] Jack Bond • [email protected]: 561-732-1185 Fax: 561-732-8414 Tel: 561-732-1659 Fax: 561-732-8063

Lucia Annunziata • [email protected] John W. Smith • [email protected]: 212-477-6700 Fax: 212-254-6271 Tel: 561-733-2477 Fax: 561-732-9670

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Tel/Fax: +44-1506-822240

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

CORPORATE STAFFManager, Accounting Services Esther Rothenberger • [email protected]

Manager, Public Relations Mark O’Malley • [email protected], Info Tech Services Vladimir Bibik • [email protected]

CIRCULATIONCirculation Manager Kathleen Hickey • [email protected]

Pictured on this monthcover are the six execu-tives featured inMarineNews’ signature“CEO Six-Pack”, theLeadership edition. Thisyear’s collection is partic-ularly noteworthy, given the financial hurdles of the past12 months. Turn to page 30 for the full story.

(In the background is Hornbeck Offshore’s “HOS IronHorse”)

On the CoverMarineNews

-Coming in Future EditionsJuly 2010

• TOWBOATS & PUSHBOATS• Salvage & Recovery• Diesel Engine Technical Guide

August 2010• CONSTRUCTION & REPAIR• Tugboats• Fire & Safety Products

September 2010• Offshore E&P• Government/Military Vessels• Training & Eduction

www.marinelink.com MN 5

editorialGulf States are preparing for the environmental and economic impact of the BP oil spill in

the face of the most uneasy uncertainty. As we go to print, no one can say when the flow of

oil will be stopped and how bad the damage will be. What we do know is that with every day

of uncertainty, the damage grows greater. My thoughts are especially with Louisiana, in the

immediate path of the spill and still recovering from Hurricane Katrina.

It seems that the timing of Louisiana’s crisis and the Coast Guard career of Admiral Thad

Allen are now forever linked. I had a great deal of respect of Adm. Allen following his lead-

ership of the agency’s response to Hurricane Katrina. The Coast Guard was the rare govern-

ment agency to surface from that disaster a hero. Following the hurricane, Adm. Allen was

brought in to be the Commandant of the Coast Guard and went on to gain much respect from the public for his abil-

ity to communicate and find common ground with civilian mariners and the general public. There are always dis-

agreements between the regulators and the regulated, but there can be little argument that Allen made many improve-

ments within the Coast Guard. I have also been struck by how much respect Allen garnered from his own people for

his open and often informal discussions with active duty Coast Guard personnel of all ranks, including those at the bot-

tom of the chain. I’m sure he’ll stand out as one of the best loved Coast Guard Commandants in history and definite-

ly the only one to be given such a great nickname. But as the “Thadmiral” was getting ready to step down as

Commandant, the Gulf was struck again, this time by the massive BP oil spill. Adm. Allen handed the reins to the new

Commandant, Adm. Robert Papp, but instead of retiring, Allen moved over to head the Coast Guard’s response to

Louisiana’s latest crisis.

Without a doubt, there will be a set of post-spill rules and regulations for the offshore industry. One hopes that these

rules will address the root causes of the spill. However, operators of offshore support vessels worry that they will be

swept into these new regulations. OMSA officials point out that the OSV market is already highly regulated. Policy

changes in exploration and production may well be needed, but we still depend on oil to run our country and pro-

duction must go on in the safest way possible while each of us reduces our daily use of energy, and while public policy

expands the exploration of alternative sources of energy.

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

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Raina Clark, Managing Editor, [email protected]

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

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tech fileAdvancing Technology:Corvus Lithium-Ion Battery

Richmond, B.C.-based Corvus Energy was created in2009 to combine the unique characteristics of LithiumPolymer technology with the marine industry’s growingdemand for power and need to reduce its carbon foot-print. According to Corvus Energy, the marine industryhas been unable to take full advantage of hybrid or fullelectric propulsion technology due to the large size andweight of traditional lead-acid batteries. Now CorvusEnergy says its lithium-ion batteries offer a smaller, lighterand more powerful alternative. In addition, the batterychemistry and management system allows these batteriesto last up to 10 times longer than lead-acid batteries.

Corvus Energy’s battery and management system isbeing used as the house power bank in the first BRAttclass training tug, a scaled down, 450 hp Z-drive tug cre-ated by Ron Burchett and Naval Architects Robert AllanLtd. Corvus Energy will also supply batteries for propul-sion power on a hybrid diesel-electric and an all electricversion of the BRAtt tug, both scheduled to be deliveredto the Western Maritime Institute in 2011.

Advantages of the Corvus Energy battery include the

safe cell chemistry combined with a sophisticated BMS.The battery has over 3,000 full cycles, up to a 20-yearworking life. The communication interface for the batteryincludes CanBus, SMBus and SPI Bus. The battery mod-ule can be integrated into existing applications or can beconfigured to meet power storage requirements from6.2kWh into the tens of thousands of kWh. Corvus bat-teries are completely sealed, 100% recyclable and sup-ported by the company’s lifetime warranty.

www.corvus-energy.com

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Battery Comparison TableChemistry Lead acid (AGM) Sodium nickel Lithium iron Corvus lithium

chloride phosphate NMC

Nominal Voltage 2.0V 2.58V 3.20V 3.70VMaximum Voltage 2.60V 2.9V 3.60V 4.20VMinimum Voltage 1.50V 2.0V 2.30V 2.75VEnergy Density 20Wh/kg 100Wh/kg 129Wh/kg 163Wh/kgPower Density 75Wh/l 150Wh/l 255Wh/l 320Wh/lCycle Life (100% DOD) 200 1000 >1500 >3000Internal Impedance >20 ohms 150 milliohms 3 milliohms 0.5 milliohmsCharge Efficiency 60% 85% 95% 99%Operating Temp -40° to 60° C 270° C -20° to 55° C -20° to 60° CSelf Discharge (20° C) About 4%/month none <3%/month <0.001%/monthCell Format Liquid filled box High temp box Cylindrical/prismatic LayeredManufacturing Foundry Partially automated Partially automated Fully automated

10 MN June 2010

MarineNews spoke with Ken Cognevich, President &CEO of Engine Monitoring, Inc. (EMI), about how hecame to found the company and what latest technologicaladvances are in store. EMI engineers and manufacturesvessel monitoring and control systems, serving the marineindustry for over 30 years now. The company recentlymoved into a new 24,000 sq ft facility near the NewOrleans International Airport.

How did you become involved in the industry?I’m a native of Venice, Louisiana, attended trade school

to become a draftsman, and worked at Chevron for sixyears. In 1965, I was drafted into the Army and continuedhoning my skills as a drafter. After two years of service, Ireturned to Louisiana and Chevron. While working forChevron, I received special permission to work for BakerCAC as a part time draftsman. I worked 80 hours a week

insightsKen CognevichPresident & Founder - Engine Monitoring, Inc.

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and was able to make ends meet.I started to work for small engineering firms doing all

types of drawings, including PC Boards and workinghands-on with production departments. Following that Iworked for an electronics manufacturing company forabout one year providing electronics for the marine indus-try. When the company decided to go in different direc-tions, I had three options: start my own business, join aunion, or have my wife go back to work teaching while Icontinued drafting for small engineering firms. At thatpoint I’d been married for five years with two small chil-dren and a new house. I knew Ingram Barge had a build-ing program and there were other opportunities withother companies who believed in my product and skills.So I decided to let my drive and determination kick in andbegan my own business, Engine Monitor, Inc. (EMI).

How has EMI most dramatically changed from itsinception to today?

When I started in the marine industry the most difficultobstacle was convincing customers to move from olderrelay technology to newer technology such as discretecomponents and circuit boards. At the time I worked withelectrical engineers drawing schematic and laying out PCBoards using two to one tape process by hand. Throughthe years, EMI has strived to use the latest technology,such as computers, PLC's, solid state devices advanced cir-cuit board designs. After 35 years I still can service all ofour existing equipment in the field. I know that the bigcorporations can’t say the same.

What has been the driver for this change?Technology and demand for speed and availability drives

the world we live in. I think small companies today stilloffer a value added, which is long term service, productsupport and quality. These have remained our core valuesat EMI. Our key employees also make a big difference inthe stability of EMI. We have over 110 years of knowledgejust in our upper management team. We value our cus-

tomers, employees and suppliers and do not alwayschange products just to save a dollar.

What advanced technology does your company provide?

In order to offer PLC solutions, EMI became a Siemensand WAGO Solution provider. EMI provides advancedcomponents such as digital rudder order indicators andmultiple interface solutions. And EMI became the firstcompany in the U.S. to design, program and manufacturea Dynamic Positioning System. EMI has continuallyadded products to our catalog to provide our customerswith a one source stop. We can provide just about every-thing you need on a vessel including steering, engine con-trols, automation, engine order telegraphs, shaft tachome-ters, engine tachometers, tank level indication, consoledesign and fabrication, dynamic positioning and an exten-sive inventory of sensors, switches and hydraulic compo-nents.

EMI's next advancement will be proving a DPS-2 sys-tem. This is an advancement of our original DPS-1 systemthat provides full redundancy requirements. EMI is alsodeveloping multiple circuit board designs that provideeasy to use interface and calibration, as well as touchscreen technology.

How is EMI investing in the future?Last year we added 15,000 square feet to our production

department. This additional work space allows us to pro-duce and test large integrated systems setup as one unit, asthey would be in the field. Another aspect of the addi-tional workspace is a completely new hydraulics manufac-turing department.

We will soon have our DPS-2 System to market as wellas our newly designed RAIs, EOTs, Shaft Tachs, etc. withtouch screen technology. We are also working on an inte-grated chair solution for the Pilot House. EMI is lookingto market our products for distribution in all of NorthAmerica as well as the International market.

And EMI became the first company in the U.S. to

design, program and manufacture a

Dynamic Positioning System

14 MN June 2010

For the Corps of Engineers

GeoShipyard Delivers Hysucraft The Redlinger and the Elton, both 60-ft Hysucraft

(hydrofoil supported catamarans), are survey vessel sisterships designed and built for the United States ArmyCorps of Engineers. They are serving the Portland Oregondistrict. Redlinger’s mission is in Portland along theColumbia River. Elton’s mission is in Astoria and out tothe Columbia Bar. These are survey boats that measurethe depths of the waterways and provide information tothe dredges, so they can keep the waterways clear for ship-ping. The hysucraft each have a moon pool aft of thesuperstructure to lower a purpose built strut and pod withmounted multi and single-beam transducers into thewater for surveying. There is no A frame or the need totow instruments behind the vessel. The vessels can surveyat up to 15 knots but typically their work is done at 10knots. They are designed by Viking Fast Craft Solutions,LLC of Staunton, Ill. and are built to meet the ABS high

speed rule and U.S. Coast Guard Subchapter T rules.

Specifications:Length, o.a. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59.8 ftBeam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23.5 ftDepth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9.3 ftDraft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3.5 ftHull/superstructure material . . . . . . . . . . . . . . . . .Marine aluminumMain propulsion . . . . . . . . . . .2x MTU Series 60, 825 hp @ 2300 rpmGears . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2x Twin Disc 4114AWater jets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2x Hamilton 403Generator . . . . . . . . . . . . . . . . . . . . . . . .2x Northern Lights, 12 kWSpeed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 knotsCruise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 knotsElectronics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .FurunoControls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Hamilton Blue ArrowSearch light . . . . . . . . . . . . . . . . . . . . . . . . . . . .2x Carlisle & FinchLighting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Imtra, LED, DCAnchor winch . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Kinematics, hyd.Fuel capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,200 galPotable water capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . .100 galCrew . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

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That glimmer on the horizon that you see is the firstindication of a return to some normalcy in the marinelending marketplace. But don’t confuse it with a full-fledged sunrise, it is far from that. It is merely a tease, aharbinger of things to come.

In preparation for better times, knowledge of some keyaspects of the marine money industry will prove to bepriceless to you as the finance marketplace improves.Whether you are your own CFO, or your CPA acts as one,or you employ a financial expert to help run your busi-ness, what you know and how current the information iswill enable you to make informed decisions about debt,equity, leasing and other financial issues.

Make sure that your financial house is in order. If yourrecord keeping reflects an unprofessional attempt toreport the financial condition of your business, you will beamong the last, if at all, to enjoy new capital being madeavailable to the industry. Your financial package shouldinclude: three years of financial statements (reviewed orbetter); your current personal financial statements; anupdated narrative about your business; recent valuationsurveys of your vessels, real world projections of anticipat-ed income for the next three years; vessel utilization sta-tistics, comparative day rates and a precise and logicalexplanation of what you have done during the downturnto keep your business afloat financially.

If your revenues have declined due to the ongoing reces-sion or for other reasons, no rational lender today (ortomorrow) will accept a simple or sugar-coated explana-tion. They will expect you to provide a detailed narrativeto quantify how you have addressed the issues opera-tionally and financially to weather this particular storm.Be prepared to discuss, in depth, the steps you have taken

to reduce overhead, retire or cold stack equipment, reviseyour rate structure, postpone or reevaluate your capexspending or readdress your debt picture. You should alsobe prepared to demonstrate how you have maintainedyour existing equipment to preserve its asset value. Themore relevant your presentation is to market realities, thestronger the case for your continued financial survival andability to service any new or refinanced liabilities you areseeking.

You and your CFO should determine your obligor riskrating (ORR) by comparing your four major financialratios with established standards used by Moody’s andStandard and Poors. The key ratios are: interest coverage,current ratio, debt to tangible net worth and cash cover-age. Lenders weigh each ratio to determine if you fall in orout of their credit comfort zone. How well you fare intheir rating system will determine who has an interest indoing business with you and what terms, rates and condi-tions they might offer. With your ORR in hand you andyour CFO should know the appropriate players for thefinancial products that you may need. As Sly and theFamily Stone said, “different strokes for different folks.”

Money comes from sources in all shapes and sizes:finance companies, banks, equity players, individualinvestors, hedge funds; cash-flow lenders, asset-basedlenders, fair market value lessors, etc. Collectively, callthem “lenders.” Move up or down the variable ORR scale,and you’ll find lenders whose appetite for risk and policiesfor mitigating risk vary as well. Once there were a greatmany lenders vying for your business. With the consoli-dation of many lenders (think of Safeco, CitiCapital andothers bought by GE Capital), the departure of many oth-ers (First National, Bombardier, Transamerica, CIT, Case)

columnsRichard J. Paine, Sr. is the President of Marine-Finance.Com, a maritime consulting firm specializingin the financing and leasing of commercial marinevessels and other equipment. He can be reached atrpaine@ marine-finance.com or 516-431-9285.

What You & Your CFO Should Know

16 MN June 2010

www.marinelink.com

and the withdrawal of even more from actively pursuingmarine lending, the pickings are slim. Before the crash,risk and rate seemed unrelated. At the time, very low rateloans to high risk borrowers were the norm and created anexpectation that cheap money would be around forever. Itwasn’t. Those days are over. Expect to pay interest ratesthat are closely related to the financial strength of yourbusiness, the nature of the transaction and the value ofyour assets. Make your debt service projections based oninterest rates, fees and other costs in line with today’s lend-ing market not those of a wishful three years ago.

Get to know who is knocking at your door. Knowing alender’s credit rating will work to your benefit. A highly-rated lender can borrow money more cheaply than onelower rated. Lower cost of capital means a loan can bemade to you at a lower rate while still making acceptableprofit margins. The lender’s core business (think about theinterest rate your savings accounts or CDs are paying)may also be a source of low cost funds. Rate should onlybe a part of your evaluation. Does your lender know yourassets? Does the lender require you establish a “relation-ship?” Will you have to buy other products? Will yourloan be sold to another bank or investor? What is the max-imum amount your lender will hold before selling? Who’swho means a lot when it’s your money.

Eventually a few of the old, familiar lenders will be backand there will be new ones who suddenly “discover”marine finance. As you educate yourself about your newlender, expect to educate your new lender as well. Veteranmarine finance pros are down to a precious few (attrition,layoff, retirement etc.) and your lender’s new calling offi-cer will probably be financing copiers in the morning, golfcarts in the afternoon and crewboats at cocktail time.Because our industry and its financing is a small, highly-nuanced and arcane discipline, your new best friend isgoing to need a lot of educating to become your advocate.Get ready to teach “Marine-Business 101” across yourboardroom table over and over again.

Get prepared for the dawn of a new age. Educate your-self, shop around. Instead of getting blank stares fromyour new calling officer, hire a qualified commercialmarine finance consultant, a CPA or CFO who really“gets it,” to represent your best interests in dealing withlenders who are just now getting back in the water ... justover the horizon.

18 MN June 2010

shirley

The term “responder immunity” is generally used in themaritime context to refer to provisions in the law that pro-tect those who respond to marine casualties from legal lia-bility for damages resulting as a consequence of theirefforts. It is meant to encourage those competent to do soto come to the assistance of those who have suffered casu-alties of one sort or another by relieving the responders ofconcern for the risk of claims arising from their highlydesirable good conduct. It does not protect them from lia-bility for damages that result from their gross negligenceor willful misconduct.

The law of marine salvage includes both a long-standingcommon law example and a comparatively recent statuto-ry example of responder immunity. The common lawexample is the provision that salvors will not be held liablefor damage caused to the vessels and cargoes to which theyrender salvage assistance except in two circumstances: (1)they will be liable if the damage caused was the result oftheir gross negligence or willful misconduct, and (2) theymay also be liable if the resulting damage is different innature or type from that to which the vessel and/or cargowas at risk of incurring as a consequence of the peril(s)from which they were being rescued. That law developedbefore the advent of legal liability for oil pollution, so itinvolved only damage sustained by the ship and/or cargothat was the subject of the salvage operation, and not thirdparty liability for oil spills. The more recent example ofresponder immunity arises from oil pollution legislation,and it unfortunately suffers from a lack of clarity becauseof the failure by regulation or otherwise to specificallyidentify salvors as parties protected from liability to thirdparties and others for oil spill damages resulting from theirefforts.

Although the concept of responder immunity has beenaround for a long time, the term itself has not. The termappears to have developed as a short cut reference to par-ticular provisions of the U. S. Oil Pollution Act of 1990(OPA-90) that state:

“(4) EXEMPTION FROM LIABILITY — (A) A per-

son is not liable for removal costs or damages which resultfrom actions taken or omitted to be taken in the course ofrendering care, assistance, or advice consistent with theNational Contingency Plan or as otherwise directed bythe President relating to a discharge or a substantial threatof a discharge of oil or a hazardous substance.

“(B) Subparagraph (A) does not apply —“(i) to a responsible party;“(ii) to a response under the Comprehensive

Environmental Response, Compensation, and LiabilityAct of 1980 (CERCLA);

“(iii) with respect to personal injury or wrongful death;“(iv) if the person is grossly negligent or engages in will-

ful misconduct.“(C) A responsible party is liable for any removal costs

and damages that another person is relieved of under sub-paragraph (A).

It would be well to remember that the term “responsibleparty” as used in OPA-90 usually refers to the owner ofthe vessel or facility that has spilled or threatens to spilloil. However, there is no specific identification in OPA-90of just what “person(s)” are protected by this responderimmunity provision. It has generally been accepted as agiven that it applies to oil spill response contractors whorespond to minimize the damage resulting from spills, andto clean up the spilled oil. Logically, it should also applyto the salvor whose job is, insofar as possible, to keep theoil in the ship. That, one would think, should be consid-ered the best possible protection of the environment.However, logic does not always reliably flow from legisla-tion, and professional salvors have long been concernedabout the provision’s lack of clarity. In the early 1990s anunsuccessful effort was made by the Salvage Committee ofthe U.S. Maritime Law Association to have salvors specif-ically identified in the National Contingency Plan as “per-sons” protected by that provision. The response receivedexplaining why “there was no need to specifically identifysalvors” as such persons did not add clarity.

Nonetheless, some relief was eventually forthcoming in

Jim Shirley is a Master Mariner, a former salvage master and retired mar-itime lawyer who specializes in maritime casualty and salvage matters. Henow serves as legal counsel to the American Salvage Association and asPrincipal Consultant in JTS Marine LLC. Contact him at jtsmarine@ verizon.netor 609-883-3522.

A Primer on Responder Immunity


the U.S. Coast Guard AuthorizationAct of 1998, which in essence afford-ed responder immunity protection tothose whose efforts resulted in a spillwhile they were “engaged in mechan-ical removal authorized by thePresident.” When that language isread in conjunction with the defini-tion of what constitutes “mechanicalremoval” in regulations promulgatedby the Coast Guard relative to controlof pollution by oil or hazardous sub-stances, it describes work that salvorsdo in the course of rescuing ships andtheir cargoes and bunkers. If thatinterpretation is supported by thecourts, salvors will not be held liablefor the consequences of spills theycause while rendering services tocasualties unless such spills resultfrom their gross negligence or willfulmisconduct. The bad news is, that hasnot been spelled out with sufficientspecificity to give salvors completecomfort. The good news is that, inso-far as this writer is aware, neither theU.S. nor any other entity in the U.S.has claimed against any salvor orother responder under OPA-90 basedon oil spilled as a result of their effortsin rendering assistance to a casualty.

The next problem with the respon-der immunity provision is that it pro-vides only limited protection. In thefirst place, it is limited to spills of oiland the 140 or so hazardous sub-stances that are covered by the FederalWater Pollution Control Act, and notto responses to spills under CERCLAor the Superfund Amendments andReauthorization Act of 1986. Also, itcontains the specific exclusions listedin section (4) (B). Perhaps moreimportant, it does not take intoaccount the risk of criminal liability.This is of particular concern becauseof the increased use of criminal sanc-tions in oil spills and other environ-mental matters in recent years. That

may leave the responder who is onsite to help mitigate a serious situa-tion with the same exposure as theresponsible party to the threat ofcriminal prosecution and penalties.Under certain provisions of U.S. law,criminal liability could be incurredeven when the responder was not

grossly negligent or engaged in willfulmisconduct, and perhaps even whenthe responder was completely with-out fault. That is, while the respondermay be protected from civil liabilityunder the statute, he may still be sub-ject to criminal liability.

(Continued on page 52)

20 MN June 2010

demarcay

Leadership in our industry, as with most industries, isusually defined by visible signs of success. For vessel own-ers and operators, these signs include expanding an oper-ation, creating new processes or designing and construct-ing new vessels that are able to perform their intendedoperations safer, faster, more efficiently and cheaper thanever before. Certainly, these industry leaders, and theirleadership skills, deserve a great amount of respect and allof the accolades they receive. Their leadership is vital tothe continued improvement and growth of our industryand is responsible for the improvements that we have allenjoyed.

However, there is a different type of leadership that,although it is much less obvious, is probably more impor-tant and can have a greater impact on the operation ofyour business, improve your bottom line, create opera-tional efficiencies and help you avoid potentially disas-trous legal liability. These leaders effectively communicatetheir management philosophies throughout their organi-zations and create a culture that embraces those beliefs.

As all marine operators know, our vessels and crewsoperate under a wide variety of conditions. Crews operatebeyond the office’s ability to directly manage them andthey work with and around equipment that is capable ofcausing significant damage to the crew, the vessel and theenvironment. As such, communicating an effective “cul-ture of safety” is the key to minimizing an operator’s lia-bility over the long run. This culture can only be createdthrough effective leadership.

For example, all companies tout the importance of safe-ty. However, there is a big difference between the levels ofcommitment to safety that can be seen in the field.Messages that are communicated by great leaders areunderstood and adopted by everyone in the companyfrom the executives in the home office to the employees in

the field. Executives and managers who are able to effec-tively communicate the culture of safety have done moreto support their companies and help them grow than anytechnical innovation could. These effective leaders are the“unsung heroes” of their companies and our industry.

As all companies communicate a message that safety isimportant, the difference between the companies thatcarry out this message in the field and the ones that donot, is effective leadership. This leadership must begin atthe top and disseminate through every level of the organ-ization. This message can be communicated through theusual channels including policies, seminars, safety alerts,and training. However, from my experience, the mosteffective way to get field personnel to understand thismessage is by having all employees in the company “buyinto” the program.

Transocean is an example of a company whose leadershave done a great job in creating a culture that emphasizessafety. The unfortunate disaster involving the DeepwaterHorizon is an example of the type of unexpected incidentthat can occur offshore. As our firm represents bothTransocean and BP, we are intimately familiar with theoperational and safety programs that each companyimplements. Of the drilling contractors, service compa-nies, operators, and boat companies that we work with,Transocean and BP have some of the most stringent andeffective safety programs in the industry. In fact, I believethat this safety culture is the reason that over 110 employ-ees were safely evacuated from the rig after the well blewout and the rig caught on fire.

Using Transocean as an example, every time I have beenon a Transocean rig, I have received a detailed safety brief-ing from the vessel’s officer in charge of safety. This typeof safety briefing is necessary and conducted by all vesselowners and operators in the industry. However,

Lawrence R. DeMarcay, III is a partner atFowler Rodriguez Valdes-Fauli in thefirm’s New Orleans, La. office. He can bereached at ldemarcay@ frvf-law.com or504-595-5122.

Leadership Saves Lives, Resources & Your Company:

How Effective Leadership Saved the Crew ofDeepwater Horizon

Transocean, based upon the vision ofits leaders, takes it to the next level.Every time I have had a meeting atone of Transocean’s offices inHouston, I have received a similarsafety briefing where I was told whatto do in the case of an emergency,where the emergency exits are andwhere my muster station was located.I find it hard to imagine that aroustabout working on a Transoceanrig does not believe that managementtakes safety seriously when the officestaff conducts safety briefings for allvisitors. This type of culture cannotbe generated through the use of“catch phrases” and public-relationscampaigns. This type of culture canonly be filtered down from the topand understood by all employees.This process can only be donethrough effective leadership.

The fact that this disaster occurredon a Transocean rig that was workingfor BP shows that highly trainedcrews with effective safety programsand state of the art equipment can-not prevent all incidents from hap-pening. However, the likelihood ofsuch a catastrophic event occurring ismuch less likely when leaders com-municate their message of safetyfrom the top to the bottom of theorganization.

Although all marine operators havesafety programs, safety managers,safety audits, and generally preachthe importance of safety, it is a rareoccasion that the workers in the fieldtruly understand and follow the prin-cipals. For example, we were recentlyinvolved with a case (on a defenseand indemnity basis for a companythat we do not regularly represent)where an employee was struck by apiece of equipment that the vessel’screw lost control of.


22 MN June 2010

snowden

Successful mission execution requires mitigating risk,solid decision making, process transparency, capturingexperience and history for future use, communicationand resource allocation. How can a dynamic organizationwith changing priorities and limited resources look aheadwhile ensuring the best decisions are made and experienceretained? With effective and consistent use of risk-baseddecision making tools. If you do not have tools or docu-mented processes, it is time to begin.

But we’ve always done it this wayWhy should the Coast Guard or any maritime organi-

zation use tools or document processes? It improves effi-ciency, conveys process transparency to stakeholders,increases overall safety, mitigates risks and ensures effec-tive mission execution. Additionally, when these process-es are developed with stakeholders at the grassroots level,this strengthens working relationships, reinforces theunderstanding of capabilities and limitations, fostersownership and increases adherence to the agreed process

By CDR Joseph H. Snowden, Chief of Prevention, U.S. Coast Guard Sector Detroit.CDR Snowden is the chief of prevention at USCG Sector Detroit. He has 19 years of experi-ence in marine safety. His previous tours include MSO Providence, MSU Houma, MSOMorgan City, MSO St. Louis, LANTAREA and MSD Quad Cities. He earned a Master ofScience degree from Troy State University in human resources management.

Risk-Based Decision Making Tools:

Aids to Make the Right Decision

MTSRU Vessel prioritization tool. MTSRU decision making process for natural disasters.

MTSRU decision making process for vessel, facility and infra-structure failures.

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or tool. A progressive organizationshould be constantly searching fornew ways to improve its effectiveness.As Winston Churchill said, “The pes-simist sees difficulty in every oppor-tunity. The optimist sees the opportu-nity in every difficulty.” The primaryfocus when developing risk-basedtools or documenting processes is tokeep it:• Simple—if a person does notunderstand or is intimidated by thetool, he or she is less likely to use it• Functional—the tool should beintuitive to the user• Purposeful—the user shouldunderstand the intent of the tool andhow the result will be utilized• Catalytic—the user will need totake action based on the results

Maritime Transportation Recovery Unitdecision making process

As technology evolves, threats shiftand the maritime operating environ-ment changes, so will risk evaluation,determination and mitigation. Afterobserving complex evolutions or sim-ple operations long enough, a persondiscovers the major elements of aprocess will remain the same eventhough details change depending oncircumstances. This was the casewhen I was able to capture keyprocesses involved in reopening awaterway by collaborating with U.S.and Canadian port stakeholders. TheMaritime Transportation RecoveryUnit (MTSRU) decision makingprocess helps determine when toreopen waterways closed due toevents such as a natural disaster; a ves-sel, facility or infrastructure incident;a response to a transportation securi-ty incident; or a hazardous materialrelease.

Vessel prioritization toolAt a Marine Transportation System

Recovery Unit working group, U.S.and Canadian stakeholders addressedchallenging questions: After a floodor marine casualty, how do you man-age the queue of vessels that increased

while you were addressing the crisis?When the waterway opens, will thepolicy be “first come, first served”?How do you address the needs andconcerns of nations that share a criti-cal connection waterway?

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24 MN June 2010

briefsIn Memory of

Don SutherlandBy Greg Trauthwein, Editor & Associate Publisher

It is with sadness that I report the passing on May 23,2010, of Don Sutherland, a long-tenured contributor toboth Maritime Reporter & Engineering News andMarineNews magazines. Having worked with Don fornearly a decade, I was privy to a media professional whowas not only passionate about the prose and images heprovided to us on a monthly basis starting in December2001, but a man who was intensely passionate about themaritime industry: the boats, the history, the burningissues of the day, but first and foremost, the unique per-sonalities, the strands that together weave the fabric that isthe core strength of the maritime market. Most everyonewho met or knew Don has a story to share, as, he houseda strong personality, a sharp wit and a keen sense ofhumor. He was a born communicator, with the uniquecapability to eloquently tell a story in 5,000 words when500 would suffice. But while he could write and talk atgreat length of varied topics, Don was first and foremost aprofessional photographer who provided a collection ofartistic images that told the ongoing tale of the workboatmarket — the boats and the people — that have gracedour pages for more than a decade. Don was, in fact, a dig-ital photography guru, making a career of rating andreporting on cameras. As much as the words, his imagestold the story, and if I ever had the audacity to remove oneof these critical bits from his work, he was never shy toshare his feelings. And while he took his craft seriouslyand brought new meaning to “stick to your guns,” he wasaffable and rather easily swayed, particularly after hashingit out over a peace offering of several dozen oysters andbeer. Most who know me know that I rarely rememberwhat I had for lunch, let alone the exact date of an eventthat happened nearly 10 years ago. But I will never forgetthat first edition that Don supplied text and images, for itis Don who actually found us after the terror attacks onNew York City on September 11, 2001, providing to theDecember 2001 edition of Maritime Reporter &

Engineering News words and haunting images that cap-tured not only the personal and structural destruction inlower Manhattan, but also the nerve and resolve of themaritime community’s response to help save lives, untan-gle an unthinkable mess, and start to build again. Thatstarted a nearly 10 year journey of “Don” stories that, inmy estimation, helped to capture essence and insights intothis industry, a unique spin that is rarely found in tradi-tional business-to-business publications. Only once in 10years did I actually assign a topic to Don, as he had freereign to find and report, living on a tugboat for two weeksin one instance, or his annual sojourns to cover a varietyof “Tug Round-Ups.” The one assignment I did hand outwas an open-ended ticket to New Orleans in the wake ofHurricane Katrina, where Don spent nearly a month col-lecting a dizzying array of images and stories on this vitalmaritime region’s response in the wake of natural devasta-tion; reporting on one hurricane while dodging the next,Hurricane Rita. Personally and professionally, DonSutherland will be sorely missed.

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New ULTRAJET UJ525 Launched

With a maximum input power of1,100 kW (1475 bhp) the newUltraJet UJ525 is the first UltraJetmodel to be fully designed usingSolidworks 3D capability. TheUltraJet UJ525 is designed for single,twin, triple or quad installations inboats up to 200 tonnes. The firstUltraJet UJ525 installations wereordered for a new 59 ft catamaranproject before the jet design had beenfinalized, but the jets were deliveredon time to meet the customer’srequirements. The UltraJet UJ525incorporates several improvementsincluding a redesigned reverse deflec-tor with improved flow characteris-tics to increase the reverse andmaneuvering thrust. This systemoffers features previously only avail-able on more expensive systemsincluding integration of dieselengine, throttles and waterjet man-agement functions into a single intu-itive control system. It incorporatessafety features and can also interfacewith autopilots. When requested,interceptors can be fitted to theUltraJets to provide fuel efficientsteering and to optimize the trim ofthe boat with varying loads.

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LARGEST RENTAL FLEET OF SPUD,

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• 16 Fleeting locations inland rivers,

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• Inland and Ocean towing services

BARGES 60’ TO 400’ LENGTH

26 MN June 2010

• Harley Barge Enters Service

Photo courtesy Elliott Bay Design Group

Elliott Bay Design Group LLC (EBDG) recentlyannounced the launch of the flagship vesselin its series of oil barge designs for HarleyMarine Services (HMS). With a length of 422ft and a beam of 76 ft, the Sixty Five Roseshas a capacity of 83,600 barrels. The vesselfeatures a cargo heating system; two hosehandling cranes, one of which is a jumbocrane for lifting offshore submarine hoseconnections and five hydraulic mooringwinches designed for offshore mooring sys-tems. The design also includes a vaporrecovery system with provisions for thefuture addition of a self-contained vapor pro-cessing unit aft of the machinery house. Thisself-contained system, developed and patent-ed by HMS, enables the vessel to load petro-leum products without the need for a shore-side connection. The design also providesfor the future addition of an ATB connectionsystem.

• SCI Gearing Up for the FutureThe Seamen’s Church Institute (SCI) signed acontract to purchase new equipment for itsCenter for Maritime Education in Houston,Texas, initiating a multiphase upgrade toSCI’s simulator technology located in one ofthe largest petrochemical complexes in theworld. The first phase of SCI’s technologyimprovement places the Houston simulatoron par with upgrades installed in 2009 atSCI’s Center for Maritime Education inPaducah, Ky. Subsequent upgrades to thetechnology will enable SCI’s computers tosimulate exercises in emergency prepared-ness, including environmental disasters andmaritime security drills. Initial installation ofnew equipment takes place later this yearduring a window of opportunity in SCI’s train-ing schedule.

briefsMoose Boats Delivers to Navy

Moose Boats has delivered the firsttwo M2-35 Patrol Boats to the U.S.Navy on its existing eight boat con-tract signed in September 2009.Moose Boats has constructed anddelivered 28 patrol boats for the U.S.Navy under five separate contracts.The M2-35 boats will be deployedfor harbor security in Norfolk Va.and used to detect, identify, warn,disable or defeat potential threats inthe vicinity of vulnerable U.S. Navalassets. The wide stable hull alongwith an all-weather cabin will accom-

modate a crew of four in comfort.The boats have a service speed of 30knots and a top speed of 38 knots.

Specifications:Length, o.a. . . . . . . . . . . . . . . . . . . . .35.5 ftLength, w.l. . . . . . . . . . . . . . . . . . . . .27.5 ftHull beam . . . . . . . . . . . . . . . . . . . . .13.5 ftDisplacement . . . . . . . . . . . .13,000 lbs (dry)Dead Rise (aft) . . . . . . . . . . . . . .15 degreesDraft (max) . . . . . . . . . . . . . . . . . . . . .3.2 ftPropulsion . . .Twin 250hp Yamaha outboardsEquipment . . . . . . .7 kW Westerbeke gen setFuel Capacity . . . . . . . . . . . . . . . . . .260 galGentex communicationsFuruno electronics suite16,000 BTU marine air conditioner

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Second Int’l Maritime eLearning ConferenceThe 2nd Annual International Maritime eLearning Conference will be

held from July 20 and 23 in Easton, Md. at the Calhoon MEBAEngineering School (CMES). Attendees will include shipping companyexecutives, maritime training institution administrators and educators aswell as private maritime education providers. CMES trains maritime officersfor certification to IMO standards, as regulated by our Port State Authority,the U.S. Coast Guard. The primary goal of the conference is to share thismethodology with the international maritime training community to pro-mote maritime distance learning worldwide. (http://conf10.cutwater.org)

Adm. Robert J. Papp, Jr., assumed command as the 24thcommandant of the Coast Guard on May 25, relievingAdm. Thad W. Allen during a military ceremony at FortLesley J. McNair in Washington, D. C. During the cere-mony, Secretary of Defense Robert Gates awarded Allenthe Defense Distinguished Service Medal. Secretary ofHomeland Security Janet Napolitano presided over thechange of command and awarded Allen the HomelandSecurity Distinguished Service Medal. While the ceremo-ny marks the end of his term as commandant, Allen willcontinue to serve as the National Incident Commanderfor the Deepwater Horizon oil spill, managing anunprecedented response effort. Papp reports to CoastGuard Headquarters from Portsmouth, Va., where heserved as commander of Coast Guard Atlantic Area since2008. In this position, he served as the operational com-mander for all Coast Guard missions from the Rocky

Mountains east to central Asia, covering more than half ofthe world including the recent Haitian earthquake disas-ter response, Coast Guard support to Operation IraqiFreedom and counter-drug operations in the Caribbean.


Papp Becomes Commandant, Allen Heads Response

28 MN June 2010

• Canada Invests in Ferries The Honorable Rob Merrifield, Minister ofState (Transport); Rob Crosbie, chair ofMarine Atlantic Inc.’s (MAI) board of direc-tors; and Wayne Follett, president and chiefexecutive officer of MAI, announced thatMarine Atlantic has reached an agreementwith Stena Group of Companies to chartertwo new vessels. The vessels will significant-ly improve MAI’s ability to provide on-time,reliable service and meet increasing trafficdemand between North Sydney, andNewfoundland and Labrador. Budget 2010provides $175m to Marine Atlantic Inc. overthe next two years to help renew its fleetand shore facilities and to improve the quali-ty and reliability of its services. The fundingwill allow MAI to charter two vessels fromStena to replace the aging M/V Caribou, andM/V Joseph and Clara Smallwood. The newvessels, built in 2006 and 2007, will bringabout significant cost savings and opera-tional efficiencies by lowering fuel costs andconsumption. The new charter agreement isconditional upon MAI obtaining all necessarygovernmental and other approvals as maybe required.

• Ribcrafts for James City County Police

Photo courtesy Ribcraft USA

Ribcraft delivered two 21.4-ft Ribcraft 6.5sto the James City County Police Departmentin James City, Va. The RIBs will be used bythe county police for rapid response, patrol,interdiction, boarding and dive team opera-tions. The RIBs feature Ribcraft's deep-v hull,full length lifting strakes, heavy duty multichambered Hypalon tubes with pressurerelief valves and high profile rubstrake.Powered by a single 150 hp Honda fourstroke engine, the boats will reach speeds inexcess of 45 knots.

briefsWorking in the Arctic

New King River Class Tugs

Foss Maritime and Cruz MarineLLC have partnered to launch thefirst of the King River class of tug: ashallow draft vessel designed specifi-cally for remote, extreme environ-ments like the north slope of Alaska,the Canadian Arctic and the RussianFar east. The Dana Cruz is poweredby three low-emission CaterpillarEPA Tier II engines. The tug wasdesigned by AG McIlwain with anABS Load Line and is 92 ft long and36 ft wide. Built to work in remote,shallow draft environments, theDana Cruz will be headed north tosupport the summer ice-free con-

struction season in Western Alaskaand the North Slope.

The tug's features include a work-ing draft of between 3.8 ft and 5.8 ft;a hull arrangement and strengthmembers to resist damages due tocontact with ice; holding tanks forsewage and oily water; fuel tank sep-arated from hull with voids for extramargin of safety; electric deck andtowing winches to eliminate theopportunity for a release of lubricantsto the environment; hospital gradeengine silencers; an aqua-drive anti-vibration system; and Infrared navi-gation.

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Kvichak-Built Yellow Rose for Houston PilotsKvichak Marine delivered P/V Yellow Rose to the

Houston Pilots on the Houston Ship Channel . Thevessel is designed to operate as a pilot launch trans-porting pilots to and from a shore side dock and theHouston Pilot’s SWATH, and to perform pilottransfers to commercial vessels. Designed byCamarc Design, UK, the all-aluminum vessel ispowered by twin Tier II Cummins QSK-38 enginesrated for 1,400 bhp each, which are coupled to ZF 4600 transmissions driv-ing twin Hamilton 651 waterjets.


30 MN June 2010

How did you weather 2009?Todd Hornbeck, Chairman of the Board, President &CEO, Hornbeck Offshore Services

Obviously the economic recession made 2009 a verychallenging year for our industry as we experienced a sub-stantial drop-off in market conditions. New generationoffshore supply vessel effective day rates were roughly halfof what they were at the end of 2008. Fortunately,Hornbeck Offshore commenced proactive cost cuttingmeasures early in the year. We stacked some of our small-er new generation vessels and nearly all of our conven-tional fleet. We also sold non-core vessel assets. By doingthis early, we were able to realize operating and generaland administrative savings of approximately $45 millionover 2008 calculated on a “same store” basis, without sac-rificing quality of service. In other words, had we notachieved these cost savings, our company-wide operatingmargin would have been about 12 percentage points lowerlast year. Furthermore, we were able to achieve these costsavings while continuing to execute our growth strategy.We were able to emerge from 2009 with a new generationvessel contract backlog of 56%, which was even better

than the prior year given we have a larger fleet.

Harry Cook, Editor of the Waterways Council'snewsletter, Capitol Currents

As a service industry, barge and towing and related busi-nesses are not really the masters of their own fate. Itdepends on the general economy ― the demand for goodsin the marketplace, which increasingly drives not only theU.S. domestic economy but that of much of the world aswell. U.S. households and industries alike stopped buyingin the volumes which had become almost customary,quickly shrinking markets for our corn, wheat, soybeans,coal, manufactured goods, and numerous other U.S.exports. Almost overnight, we lost many of our overseasmarkets, putting a damper on exports and, at the sametime, barge lines could no longer count on a large volumeof imports including steel, other manufactured goods andraw materials, resulting in further drops in river com-merce. The Army Corps of Engineers' WaterborneCommerce Statistics Center said inland waterways traffichas dropped steadily for the last four years ― from 550.2million tons in 2006 to 536.8 million tons in 2007, 492.4million tons in 2008, and 454.7 million tons in 2009.

Leaders Discuss Challenges, OpportunitiesMarineNews is again proud to deliver its annual “CEO Six Pack,”a series of insights from a diverse selection of leaders in theworkboat world. These key players in offshore, coastal andinland waterway operations offer their insights into current mar-ket conditions and the issues that shape the industry’s outlook.

CEO 6-Pack


Todd Hornbeck“We were able to emerge from 2009 with a new gener-ation vessel contract backlog of 56%, which was evenbetter than the prior year given we have a larger fleet.”

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CEO 6-Pack

This fall-off in domestic traffic was the product of theeconomic slump from which the barge and towing indus-try is just now beginning to show some signs of resur-gence. This rebound, albeit ever so slow, provides encour-agement to agricultural and energy sectors, in particular,with many forecasts anticipating a turn-around in exportsin the last half of 2010. The National Retail Federationhas already reported double-digit growth in imports inrecent months, over 2009, at the 10 major U.S. retail con-tainer ports.

James Weakley, President Lake Carrier’s Association2009 was a very difficult year for Great Lakes shipping.

The iron ore trade fell to its lowest level since 1938. U.S.-flag cargos likewise dropped to a volume not seen sincethe Great Depression ― 66.6 million tons. Every com-modity ― coal, limestone, cement ― slumped significantlyfrom 2008 and five-year averages. On the bright side, theU.S. Army Corps of Engineers continued to reduce thebacklog of sediment clogging our ports and channels; theyremoved some two million cubic yards. Also, inDecember, the U.S. Coast Guard transferred an ice-capa-ble vessel to help keep cargo moving during the ice season.The biggest business challenge facing LCA members is theproduction of raw materials ― iron ore for steel produc-tion, aggregate for construction, coal for power genera-tion. We need the rebound in steel production to contin-ue and to energize heavy manufacturing and constructionin general.

What was yo r company s silver lining emerging fromthe 2009 financial stormHornbeck, Hornbeck Offshore Services

We have been able to expand our international footprintand expect to end 2010 with eight new generation OSVsoperating on long-term charters in Brazil, five vesselsoperating in Mexico, and two vessels operating in theMiddle East. We made significant progress in completingour new build program by delivering nine new generationOSVs. We expect to deliver the sixteenth and final DP-2OSV under our current new build program later this year.We also placed in service two of our MPSVs, the HOS

Iron Horse and the HOS Centerline, in 2009. The HOSCenterline, a 370-ft Jones Act qualified DP-2 MPSV, isthe only vessel in the world to have received certificationsby the U.S. Coast Guard allowing operations as a supplyvessel, industrial/construction vessel, and as a petroleumand chemical tanker. This HOS 370 design, with an8,000 deadweight-ton capacity, represents the largest andmost diverse DP-2 classed offshore supply vessel availabletoday. The HOS Centerline’s sister-vessel, the HOSStrongline, also joined our MPSV fleet earlier this year.The HOS Iron Horse, the second 430 class DP-3 MPSV,was placed in service at the end of 2009. We also movedforward with the installation of a 100 ton active heave-compensated crane aboard the Iron Horse’s sister-vessel,the HOS Achiever, to complement her existing 300 tondeepwater winch and 160 ton pedestal crane.

The HOS Iron Horse served as the marine platform forthe deepest riserless well intervention ever completed andthe HOS Centerline completed her first well test inSubchapter D service, as well as providing “flotel” andcargo services. Also, the HOS Achiever completed 244continuous service days in the field supporting the com-missioning of Shell’s Perdido deepwater spar by providingaccommodations for nearly 300 offshore workers. Threeof our MPSVs assumed significant roles in the subsearesponse efforts related to containing the oil spill in theGulf of Mexico.

Gary Faber, President & COO, Foss MaritimeToday, as we enter the recovery, Foss Maritime is a

stronger company because we increased efficiencies byasking our people to rethink basic approaches to jobs andtake responsibility for their actions ― particularly in theareas of safety and the environment. We stayed true to ourcore values. I simply can’t emphasize that enough. Fossmarine operations ― which include the 659 employees ofFoss Maritime, Gulf Caribe and Constellation ― incurredonly six lost time incidents in 2009. That’s out of 1.8 mil-lion hours worked by our people.

Jennifer Carpenter, Senior VP, National Advocacy,American Waterways Operators

What stands out for me is that despite truly awful mar-ket conditions, AWO member companies stayed engaged

Harry Cook“The National Retail Federation has already reporteddouble-digit growth in imports in recent months, over

2009, at the 10 major U.S. retail container ports.”

Containers on a barge


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CEO 6-Pack

in their trade association and used a difficult year toachieve notable results. They worked through the CoastGuard-AWO Safety Partnership to launch a Towing VesselBridging Program to prepare for the forthcoming CoastGuard rules on inspection of towing vessels. They part-nered with the Army Corps of Engineers to develop a for-ward-looking 20-year plan to improve the reliability of theinland waterways infrastructure and ensure the necessaryfunding stream to maintain that infrastructure. They beatback attempts by the states of Illinois, New Jersey andCalifornia to impose vessel discharge requirements thatwould have halted barge transportation in those states.They joined forces with maritime labor unions and sup-porters on Capitol Hill to get legislation through theHouse of Representatives that would greatly reduce theburden of applying for a Transportation WorkerIdentification Credential. AWO member leaders alsodeveloped a new strategic plan to guide the association’swork for the next five years. The new plan, AWO 21, callsfor an ambitious effort to tell the industry’s positive storymore energetically and creatively. It seeks to renew andrefresh our commitment to leading the industry in marinesafety and environmental stewardship, and to reach newlevels of effectiveness is our advocacy with Congress, fed-eral agencies, and increasingly activist state governments.For a trade association, that level of member commitmentis extraordinary.

What is the o tlook for yo r market in 0 an beyonHornbeck, Hornbeck Offshore Services

We expect soft market conditions to continue through-out 2010. We have seen some positive trends such as uti-lization and pricing for new generation OSVs whichappears to have stabilized in the Gulf of Mexico. Therealso appears to be some slow, but steady improvement indrilling activity. However, the recent oil spill and corre-sponding drilling moratorium in the U.S. Gulf of Mexicoobviously creates some uncertainty, as does the upcominghurricane season. Furthermore, public pronouncementscoming from Washington lead us to believe that it is like-ly that our industry will experience increasing regulatorydemands and higher costs as a result of this very tragic dis-

aster. Accordingly, our focus remains on preserving andimproving our safety record, service excellence and oper-ating margins as we continue to position ourselves for therecovery. Our long-term outlook remains very bullish. Asthis down cycle continues, we believe a lot of the oldertonnage will be scrapped or permanently taken out of themarket, which will ultimately tighten supply as demandincreases during the recovery.

Faber, Foss MaritimeWe see opportunity. Foss traditionally has done well in

extreme environments. Alaska. The Russian Pacific. We’veentered into a joint venture with Cape Harrison Marine inNewfoundland and Labrador that will allow us to com-pete for business in the North Atlantic. And the needs ofthis market play to Foss’ core competencies: tanker escortand assist, marine logistics and oil field support services,and general towing and transportation.

Harry Cook, Capitol Currents In modern times, barges have been used to transport

huge NASA space vehicles, trains across New York harbor,Seamen's Church Institute chapels to meet incomingships, National Guard troops and equipment on maneu-vers, bridge segments and huge boilers, and new automo-biles on double-deck equipment. A barge’s primary role,however, is to move bulk cargoes, such as molten sulphurand super-cold anhydrous ammonia fertilizer, soybeansand grain, coal, petroleum and petroleum products,cement, aggregates, iron and steel, and numerous othercommodities and raw materials.

One of the more recent innovations was the introduc-tion of large-sized barges and special loading yards tomove wood chips from interior forestlands, particularly inthe Tennessee Valley, to coastal ports for export.Undoubtedly, the barge industry will continue to innovateto capture market share, attracting more and differentcommodities to the U.S. inland waterways system.

The movement of containers on barges along the coasts,either in shallow-draft intracoastal channels or in openwater, particularly between major ports like Houston-New Orleans, makes good sense. Watch for more "marinehighway" projects up inland rivers like the James Riverfrom Hampton Roads to Richmond, Va. In the final


James Weakley“The biggest business challenge facing LCA

members is the production of raw materials ― iron orefor steel pro ction, aggregate for constr ction,

coal for power generation.”

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analysis, however, the barge industry will probably survive― and profit ― by doing that which it does best: haulingbulk commodities at competitive rates, in a safe and envi-ronmentally friendly manner, and in massive quantitiesdelivered on schedule.

What legislative issue is most important to the industryright now?

Hornbeck, Hornbeck Offshore Services In July of last year, the U.S. Customs and Border

Protection (CBP) published its proposed modificationand revocation of previous ruling letters that it believedwere inconsistent with the Merchant Marine Act of 1920,or the “Jones Act.” On an average day, there are approxi-mately 40 to 50 foreign-flag vessels supporting energyactivities on the U.S. outer continental shelf (OCS).Those vessels could have been constructed in U.S. ship-yards, crewed by U.S. mariners, and owned and operatedby U.S. taxpayers. The Jones Act is intended to supportour national defense and commerce by ensuring the U.S.has a “merchant marine of the best equipped and mostsuitable types of vessels sufficient to carry the greater por-tion of its commerce and serve as naval or military auxil-iary in time of war or national emergency, ultimately to beowned and operated privately by citizens of the UnitedStates.” Oil companies were concerned whether thisaction by the CBP would limit access to critical equip-ment needed to execute planned activities and have adetrimental impact on further outer continental shelfdevelopment. CBP subsequently withdrew its proposedmodification and revocation of previous ruling letters, andreportedly is working with the Department of HomelandSecurity in the development of an advanced notice of pro-posed rulemaking to review and possibly address the useof foreign-flagged vessels on the OCS. It is important thatthe oil companies, U.S. shipyards, and U.S. vessel opera-tors work closely and cooperatively together and with theCBP to create a practical solution that addresses the pecu-liar requirements of OCS operations and also protects theJones Act. The solution cannot cripple ongoing offshore

operations, but it should promote domestic investment innew tonnage.

Faber, Foss MaritimeWe’re dealing with new regulations and rulemakings at

an ever-increasing pace, like the EPA’s engine rulemakingand Vessel General Permit. We’re also anticipating theUSCG rule bringing tugs and towboats into the realm ofinspected vessels. Because Foss has had an ABS certifiedSafety Management System we are well positioned tocome quickly into compliance with this rulemaking. Onthe legislative horizon I see maritime spatial planning or“ocean zoning.” This is where the issues of offshore alter-native energy projects, noise pollution, no discharge zonesand many others will culminate in what I hope is a mean-ingful dialogue between legislators and our industry. TheArctic and the prospect of ice diminished passage as earlyas 2013 is just one example of the need to have these dis-cussions with all maritime stakeholders.

Carpenter, American Waterways OperatorsTwo rise to the top of the list right now. The first is the

once-in-a-generation opportunity to improve the reliabil-ity of the inland waterways infrastructure and ensure thefunding necessary to support it, so that barge transporta-tion can continue to foster U.S. international competi-tiveness, economic growth, environmental protection andquality of life for Americans. In April, after more than ayear of hard work by Corps of Engineers and industryexperts, the Inland Waterways Users Board approved areport that lays out a 20-year plan for prioritizing projectsacross the entire system, recommends improvements tothe Corps’ project management and delivery processes sothat essential infrastructure is completed on time and onbudget, and recommends a practical and sustainable fund-ing mechanism to meet the system’s needs. It’s a responsi-ble and comprehensive approach to a multi-faceted chal-lenge that we’ve faced for a long time. Now, all waterwaysstakeholders need to come together to ensure that theserecommendations are implemented in legislation andAdministration policy. More than 200 organizations, ledby Waterways Council, Inc., the National WaterwaysConference, and AWO, have signed on as supporters of


Gary Faber“ n the legislative hori on see maritime spatial plan-ning or ocean oning. his is where the iss es of off-shore alternative energy pro ects, noise poll tion, no

ischarge ones an many others will c lminate in what hope is a meaningf l ialog e between legislators an

o r in stry.”

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the plan, representing a diverse array of waterways stake-holders, shippers, labor unions, and environmental organ-izations. These groups recognize the multi-billion-dollarbenefits of implementing the recommendations andenabling the inland waterways system to continue to serveour nation’s economic and environmental needs for yearsto come. We need Congress to include the recommenda-tions in a 2010 Water Resources Development Act, andwe need the Administration to incorporate them in Corpspolicy.

The second key issue is the regulation of vessel dis-charges ― everything from ballast water to sink and laun-dry waste to deck runoff. Since 2009, as the result of aNinth Circuit Court of Appeals decision, vessel dischargeshave been regulated under a Clean Water Act permittingprogram designed for fixed facilities, like farms and facto-ries. It’s like trying to force a square peg into a round hole― it just doesn’t work. The program requires individualstates to certify a federally issued permit, so vessel opera-tors face the untenable situation of complying with morethan 140 state and waterbody-specific requirementsimposed by 28 different states, Tribes, and territories. EPAcan’t solve the problem on its own; the agency is doing itsbest to play the bad hand it was dealt by the court. Theonly real solution is for Congress to pass legislation thatestablishes a new framework for the regulation of vesseldischarges ― one that sets tough, effective standards thatare consistent throughout the country and that preemptsstate regulation of vessel equipment and operations.House Transportation and Infrastructure CommitteeChairman James Oberstar (D-MN) and CongressmanFrank LoBiondo (R-NJ), the senior Republican on theCoast Guard and Maritime TransportationSubcommittee, have taken the lead in trying to solve thisproblem. AWO strongly supports their efforts to producebipartisan legislation that will protect water quality andkeep vital commerce moving safely and efficiently.

Margaret Kaigh Doyle, General Manager, Marine Response Alliance

The current stage of the USCG Final Rule on Salvageand Marine Firefighting is the result of over a decade ofdiscussions, proposed rulemakings, and public meetings.The rule stems from the language originally found in OPA

90 ― which recognized the need for vessel response plansand the necessary preplanning activities in a number ofareas, including salvage and marine firefighting. As ofFebruary 22, 2011, 33 CFR 155 will require plan holdersto identify salvage and marine firefighting resources solelyfor areas covered by the VRP. The final rule attempts toclarify the services that must be identified in VRPs andsets new response time requirements for plan holders andresponders. The MRA, along with other industry stake-holders, has taken a number of steps towards an improvedunderstanding of the new regulations. Compliance withthe SMFF regulations requires gathering quite a bit ofdata, and the efficacy of this data is a key component tothe preparation of salvage and firefighting plans that willnot only meet the current requirement, but ensure thatthe responders have all necessary information in the eventof an incident. We are evaluating our own coverage gapsand duplications and urging our clients to work with us sowe will both be ready come February.

Weakley, Lake Carrier’s Association We are working with the U.S. Coast Guard and others

to find solutions to ballast water introduction of non-indigenous species. We face unique challenges on theLakes. The systems being designed for the deep-sea tradesjust don’t work on our vessels. We can take on 16.4 mil-lion gallons of ballast at rates approaching 80,000 gallonsper minute. We also have to recognize that treating lakers’ballast is of limited value. Since the Great Lakes are inter-connected, an exotic will migrate independent of com-mercial navigation. That’s why we believe BestManagement Practices meant to limit the possible spreadof aquatic nuisance species are most appropriate for lakers.Treatment systems best belong on the oceangoing vesselsthat introduce exotics to the Lakes.

Other legislative issues include the need for a modernicebreaking fleet on the Lakes. We appreciate the U.S.Coast Guard transferring an East Coast icebreaker to theLakes for the winter, but the Senate must pass its legisla-tion approving construction of another heavy icebreaker.We need to bring an additional icebreaker in each winter,at least until the Coast Guard has rehabbed its vessels thatdate from the 1970s.

CEO 6-Pack


Jennifer Carpenter“ he new plan, W 2 , calls for an ambitio s

effort to tell the in stry s positive story more energetically an creatively.”

United Maritime Group’s vessel Sharon Dehart and the barge DorisGuenther with a load of salt on the Delaware River

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Cook, Capitol Currents The aging lock-and-dam infrastructure represents the

major problem facing waterway shippers and carriers. Thenumber of "unscheduled lock outages" is increasing.While most last only a few days, some of them close theprimary lock for many months, restricting river traffic toolder, much smaller auxiliary locks and forcing longqueues of barges to wait for as long as several days for pas-sage. For lock sites without auxiliary chambers, the clo-sures can interrupt supply chains and force diversions toother modes. The immediate problem on the shallow-draft inland navigation system is the lack of sufficientmatching funds in the Inland Waterways Trust Fund. Butthe real problem is years of neglect and deferred mainte-

nance due to limited appropriations. Meanwhile, manydeep-draft port and harbor channels including those onthe Great Lakes are silting in, requiring merchant ships tolight load. All the while, the Harbor Maintenance TrustFund is running a surplus exceeding $5 billion. Forobscure reasons, like budget "scoring" and masking thesize of the Federal deficit, government officials refuse tospend the shippers' own contributions to keep shippingchannels dredged to authorized depths and widths. Oncethe users pay their harbor-maintenance tax, the proceedsbecome federal revenues, and the Feds hold on to the pri-vate-sector contributions with a clinched fist, repudiatingthe concept of having a "dedicated revenue source" tofund maintenance needs.

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Margaret KaighDoyle

“… there have been many changes in the world of pollutionresponse. Just recently, for example, MRA partner Marine

Pollution Control Corporation (MPC) was awarded aresearch and development contract by the U.S. Coast

Guard in order to develop a system that uses a mannedsubmersible (or submarine) for the recovery of

heavy oil on the sea floor.” Phot

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What technology has most positively affecte yo rb sinessFaber, Foss Maritime

Our Green Assist hybrid tug, the Carolyn Dorothy, isthe first in the world. It’s working at the ports of LosAngeles and Long Beach. Over time, we hope to see thishybrid technology — and other green technologies —become industry norms rather than exceptions. I’d like tosee legislation bringing more funding to our industry todeploy new technologies, such as hybrid propulsion, thatprovide effective environmental solutions.

Doyle, Marine Response AllianceAs far as salvage, there have been so many technological

advancements that it is extremely difficult to pinpoint justone. When notified of a casualty today, our first actionsoften involve utilizing computer-based information suchas AIS or Google Earth. In this way, the advancements ininformation technology have revolutionized marine

response. New developments in the processing of infor-mation obtained during multi-beam surveys provide uswith better understanding of wrecks, which assists in thesafety of dive operations. The new portable survey class ofROV's enables us to quickly survey wrecks where, untilrecently, we were dependent on putting people in thewater. As costs come down on this equipment, we becomemore inclined to put the equipment into places and envi-ronments that would unsafe for divers.

Regarding efficiency, MRA member company TitanSalvage has developed a proven puller technology that hasquickly become standard inventory for our global com-petitors. Additionally, there have been many changes inthe world of pollution response. Just recently, for example,MRA partner Marine Pollution Control Corporation(MPC) was awarded a research and development contractby the U.S. Coast Guard in order to develop a system thatuses a manned submersible (or submarine) for the recov-ery of heavy oil on the sea floor.

CEO 6-Pack

Jim Bareksten, Director, Government Affairs, CHS, Inc.In response to the question “What are the biggest challenges facing your business right now?”, Bareksten replied:“Like all businesses, we focus on doing more with the resources we have and on making solid decisions when it

comes to growth, both within our current businesses and future expan-sion. In recent years, we have focused on creating a global footprint forour grain business. U.S. farmers can only supply grain customers aboutseven months of the year. In order to meet year-around demand of ourinternational customers, we have established origination ability in SouthAmerica, the Black Sea region of Europe and in Australia. This has ben-efited our producers by keeping them in the market 365 days a year andit has benefited our customers by guaranteeing them the grain they wantwhen and where they want it.”

CHS’s terminal in MyrtleGrove, La.

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Crowley Maritime christened theeighth of 10 new 185,000-barrelArticulated Tug-Barge (ATB) tankvessels that the company will takedelivery of by 2011. The vessels chris-tened were the tug Achievement andbarge 650-8. The vessel is scheduledto visit the port once a week as it car-ries petroleum products for MarathonOil Corporation. The vessel joinsother Crowley owned and/or man-aged vessels calling Tampa with loadsof ethanol, gasoline or diesel. Thenewest ATB, designed by Crowley'svessel construction and naval archi-tecture subsidiary, VesselManagement Services and built byVT Halter Marine in Miss., will beoperated by Crowley for MarathonOil Corporation under a time charteragreement. Crowley already hasseven, 185,000-barrel and four155,000-barrel ATBs in the Jones Acttrade and is currently having three,330,000-barrel ATBs built for deliv-ery by the end of 2012. The newATBs feature the latest systems tech-nology and double-hull construction.The unit has the capability of trans-porting refined products as well asheated cargoes and easy chemicals,

which require special arrangements ofvents, stripping systems, pump com-ponents and tank coatings above thatnormally required for product carri-ers. There is an electric cargo pumpin each of the 14 cargo tanks to assuremaximum cargo integrity and segre-gation flexibility, two anchor wind-

lasses and associated equipment toenable the vessel to accommodate off-shore mooring operations, and a vac-uum system with three retentiontanks to handle cargo changes. Thereis also a dual mode inert gas systemand vapor collection system for maxi-mum safety.

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Posted on MaritimeProfessional.com

This month 150 Old Salts plus advisors berthed forthe first time at the Capitol to tell Congress theirthoughts on the future of U.S. merchant marine policyand ways to keep maritime commerce healthy. Dubbedthe "Maritime Congressional Sail-In," the delegationyakked with congressional leaders and took aim on twopoints, the Harbor Maintenance Tax (HMT) and, indi-rectly, the Jones Act. (A less publicized reason for thevisit was to voice disquiet about the Executive Order onpiracy ransoms.) On the HMT, there are very few dis-senters that it should be substantially changed, replacedby a fairer measure or just dropped altogether. Short-seashipping is going nowhere until there is some action.

On the merchant marine, there is considerable debate.Sure, the nation needs such an institution, but the waythe Jones Act is being viewed is causing more problemsas the years go by. What's more, the Washington jam-boree was not exactly neutral as it was under the aus-pices of the International Organization of Masters,Mates and Pilots, an affiliate of the AFL-CIO. Tradeunions are naturally and automatically gung-ho aboutpractices such as the Jones Act, because they restrict thefree flow of labor and capital, raising the barriers toentry and inevitably leading to costs (wages) going up.

Excerpted from Martin Rushmere’s Blog on MaritimeProfessional.com

Old Salts Need to Broaden Vision

Just when you thought it was safe toassume that the Coast Guard hadindeed backed up its promises tostreamline and improve its marinercredentialing with real action, themaritime industry is once again push-ing back with claims that the processis moving in the wrong direction. In aletter dated May 6, 2010, the MaritimeInstitute of Technology & GraduateStudies (MITAGS) challenged NMCto amend certain policy changes andadditionally to address other failingsthat adversely affect mariner testingand credentialing. The new rift has the potential to undomore than a year of carefully orches-trated efforts at the Department ofHomeland Security to regain the trustof industry, mariners and the trainingfacilities that service them both. HowDHS responds to the latest round ofcriticism will almost certainly definewhat happens next.The Coast Guard’s ambitious central-ization plan for mariner credentialinglast year culminated in the creation oftheir gleaming, brand new National

Maritime Center (NMC) inMartinsberg, W.Va. When NMC effec-tively removed most of the authorityfrom local Regional Exam Centers(REC), the move was not initially wellreceived by a maritime communitywhich felt that it had been badlyserved in the previous decade. But,with service to the mariners clearlydeteriorating and anger buildingbecause of that metric, the CoastGuard knew it had to do something tochange direction.It was last September when the rockytransition finally appeared to be mov-ing in the right direction. A quarterlyMERPAC meeting provided the per-fect backdrop for NMC to show offtheir new digs, boast of virtually noapplication backload and a larger,much-improved medical branch. Themammoth, three story buildingappeared to house a tightly run opera-tion that was finally getting its armsaround the task at hand. Less thanseven months later, however, some inindustry remain unconvinced.The Coast Guard’s NMC is led by

Captain David C. Stalfort. Stalfort'svision to “bring the NMC into the 21stcentury by updating our technologyability to process credential in themost efficient and effective manner,”is today contradicted by new accusa-tions that policies at NMC “have a sig-nificant negative impact on marinersand ship operators.” Specifically, theMITAGS letter sent to the NMC’sMariner Training and AssessmentDivision — also copied to MERPAC,MESC and SOCP representation —complains of four primary failings:1. NMC policy requiring the removalof the training and assessment infor-mation from the course completioncertificate2. Removal of the approved ‘course byschool’ list from the NMC website3. Requirement to take 500 TonsOceans and 1,600 Near CoastalExams modules4. Errors in the NMC question data-base pool.

Coast Guard’s NMC in the Hot Seat Again

Mariner CredentialingJoin JoeOnlineThis is a shortexcerpt fromJoseph Keefe’srecent post.

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46 MN June 2010

In this edition of MarineNewswe spoke with executives fromMarineCFO and ABSNautical Systems about vesseland fleet management soft-ware. They provided theircommentary on the challengesin the market place, the latestdevelopments and what theoutlook is for 2010 andbeyond.

MarineCFO:Joe Galatas, President

Vessel operators are finding it difficult to keep up withthe ever growing streams of data needed to efficiently runa marine business. Whether it’s vessel maintenance anddiagnostics, crew certifications and credentialing, or rawcommercial and financial data, processing this into mean-ingful management information is a challenge. Havingone system that manages the entire enterprise eases thetechnical challenges and, in the end, lowest the cost oftechnical software solution for a workboat company.

It is now possible for marine companies to analyze datafrom vessels in real time instead of relying on stale, histor-ical data to make decisions. The pace of marine companiesinvesting in this technology is just beginning to pick up.

MarineCFO has a web-based version and an enterpriseversion. Depending on company size/requirements, eithercan be used for inland bulk transportation companies as

well as inland liquid transportation companies. Ourclients utilize MarineCFO to automate business processesall the way from the boat, straight through dispatch, per-sonnel, maintenance and finally financial reporting. Datais entered at the source and then can be utilized by otherson an as needed basis removing all duplicate data entry.All of MarineCFO’s solutions are based on a robust tech-nology platform that enables full customization.

Also, our original client was the OSV company, OttoCandies, therefore we have a long tenure of service to theOSV and offshore towing market. Our products arespecifically designed to deal with the communicationschallenges of being offshore and the desire to limit datatransactions, minimizing the cost of offshore communica-tions. The largest portion of MarineCFO’s budget is spenton product development. Our products are alwaysdesigned and developed in response to a real customerneed so we solve real problems faced by workboat compa-nies. 2010 is shaping up to be a record year with excellentworldwide response to our new web product for small tomid-sized fleets, MarineCFO Live! We have signed upclients in at least 10 countries and have new inquiriesevery day.

ABS Nautical Systems: Karen Hughey, President & COO

We continue to aggressively invest in product develop-ment. Thirty percent of our revenues are reinvested backinto customer-driven research and development. We arecontinuously enhancing NS5, our current suite of soft-ware products with additional functionalities and stabili-

Software Solutionsmarkets • software solutions

MarineCFOLive!

ABS Nautical System’s Joe Woods and Karen HugheyJoe Galatas, MarineCFO


ty. We also invest in our people. Weare growing our presence globally andhiring new talent around the world tomeet our customers’ evolving needs.While the recession has impacted themaritime industry causing manycompanies to cut back on theirspending, including IT projects, ABSNautical Systems has been very fortu-nate that we are well balanced in ourclient base between the marine, gov-ernment, offshore & energy andworkboat sectors. The ABS NewbuildInitiative has added more than oneclient per week since its inception andthe large global contracts that we havesigned have provided project workwell beyond 2010.

ABS Nautical Systems: Joe Woods, VP of Global Sales & Marketing

The hurdles for vessel operatorswhen implementing a fleet manage-ment system are proper buy-in fromthe crew, being fully committed todeploying and implementing thesolution, and doing the necessarytraining and re-training. ABSNautical Systems has been providingsolutions for over 25 years and withthe exception of a minor customiza-tion or configuration change, all ofour clients have essentially the sametools. Many of our customers are ableto achieve significant savings becauseof their commitment to implementthe NS5 software and to properlymanage the progress with senior man-agement fully behind the effort.There have been many new develop-ments to the NS5 software within thepast year. Some of the more signifi-cant ones surround the ABSNewbuild Initiative. ABS is providingspecific software modules free ofcharge to all of its clients that arebuilding or transferring their vesselsto ABS class as of January 1, 2009.

Because of this, we have seen a signif-icant uptick in new contracts withover 30 vessels per month takingadvantage of this offer. We’ve alsoseen several companies begin torelease funds again for IT solutions.

Owners and operators are looking

to use Hull Inspection and ConditionMonitoring tools more than ever. Tosupport this, we have provided toolsin our latest release that not onlytrack hull inspections as part of anoverall maintenance plan, but alsocondition monitoring tools.

48 MN June 2010

Cahill New Outreach DirectorMystic Seaport has named Sarah

Cahill its new director of museumeducation and outreach. She hasserved on the boards of the RhodeIsland Governor’s Urban EducationTask Force, The Community BoatingCenter in Providence and theProvidence After School Alliance.

Backhaus VP Ops at Sea Tow Sea Tow Services International has

promoted Robert Backhaus to VicePresident of Operations, along withtwo additions to its corporate staff:Christine de la Garza, Director ofMarketing, and Cindy M. McCaffery,Director of Sales and Training.

Stephens & Magill PromotedFoss Maritime has promoted Andy

Stephens to VP, Business andPlanning Development. Stephens,who joined the company in 1993,will also become chief of staff to FossMaritime COO and President GaryFaber. Also, Foss hired Mike Magill asVP, Technical Services. Magill willtake over responsibilities for Foss'shipyards, purchasing and engineer-ing departments.

Sobon CFO of Drew Marine Drew Marine USA, Inc. appointed

Walter Sobon as Senior VP and CFO.

Sobon joins Drew Marine fromConstar International a manufacturerof plastic containers, where he wasCFO. Sobon is a licensed CPA andholds a bachelor's degree in BusinessAdministration.

Black Appointed CFOThomas Black has been appointed

CFO of Globe Wireless. Previously,Black owned a consulting practice,was a financial partner in Tatum,LLC, and held multiple positionswith Tropical Shipping, includingSenior VP of Foreign Operations andCFO.

Penny Heads Biz DevelopmentACE Winches appointed Derek

Penny as head of group sales andbusiness development. Penny has 18years experience in the upstream anddownstream oil and gas and marineand naval defense markets. He joinsthe company from the subsea engi-neering company, SMD.

Samson Quantum-12 on BRAttSamson, provider of performance

cordage, equipped the prototypeBRAtt with Quantum-12, one ofSamson’s most popular towing lines.The BRAtt training tug is the resultof a collaboration between RonBurchett and Robert Allen Ltd. The

450 hp BRAtt features most of thesame technology and operating sys-tems as similar full-sized Z-drive tugs.

Signal Wins Power Barge Contract Signal International has been

awarded a $30m contract by WallerMarine Inc. of Houston, Texas, tobuild and support the outfitting oftwo 300 ft by 100 ft power barges.Each barge will have a single GE 7FAGas Turbine and 171 MW generator.Upon completion of the bargesWaller Marine will install and operatethe units in Venezuela. The bargeswill be built to ABS classification atSignal’s shipyard in Orange, Texas.Signal recently concluded a three-yeartransformation of the Orange fabrica-tion facility and shipyard.

Burger to Build Research VesselBurger Boat Company and the

Wisconsin Department of NaturalResources signed a contract for theconstruction of a 60-ft research vesselto support expanded study and surveywork of the Lake Michigan fisheries.Named after the fish genus thatincludes Lake Whitefish and LakeHerring, the new R/V Coregonus willbe capable of gill netting and allowingfisheries staff to continue the workdone on the previous research ship,the R/V Barney Devine.

BackhausCahill SobonStephens Black Penny

departments


ACB Security Boat ContractACB has been awarded a $37.7m,

five-year contract to provide the U.S.Coast Guard up to 80 TransportablePort Security Boats (TPSB). Thehigh-performance 32.8 ft vessels arepowered with Twin 315hp YanmarDiesels and Bravo X-1 outdrives andwill replace the Coast Guard’s currentaging inventory. The TPSB are capa-ble of conducting missions in as littleas 24 inches of water and can safelyoperate in 10 ft sea conditions.

Miller Boat Line “Green” Ferry Miller Boat Line has begun using a

10-20% biofuel mix in one of its pas-senger vessels, the William Market,and has plans to eventually use it inall four of its vessels. The biofuel, G2Diesel, provides 15% better fueleconomy than traditional diesel, bet-ter lubricity of the internal engineparts and leaves a cleaner wake. G2Diesel is made primarily from soy-bean oil and ethanol and is suppliedto Miller Boat Line by 11 GoodEnergy which uses locally-grown soy-beans.

Austal Designated Largest LocalManufacturer

The Mobile Area Chamber ofCommerce confirmed that Austaltopped the list of local manufacturersfor having the most employees.Austal’s U.S. facility now has 1,257full-time employees, up from justunder 900 in the beginning of theyear. Austal’s recruiting staff was chal-lenged in the beginning of the yearwith hiring 100 qualified applicants amonth and are predicted to continueto do so through June. Since January,Austal has added 370 new employees.The majority of the new-hires arefrom the Mobile/Baldwin Countycommunities, ranging in age from 18

to 64 years, including 35 veterans.

Bollinger Gets Safety AwardsBollinger Shipyards, Inc. has

received awards for Excellence inSafety, Improvements in Safety, andOccupational Safety from two indus-try groups. The Award for Excellencein Safety and the Award forImprovement in Safety for 2009 werepresented to Bollinger by theShipbuilders Council of America(SCA). The awards were received dur-ing the association’s April 26-28,2010 general membership meetingheld in Washington, D.C.

At The National Safety Council,South Louisiana Chapter 59thAnnual Clem BuckmanOccupational and Fleet SafetyAwards Banquet, Bollinger facilities

were presented three separate awardsfor safety. The chapter’s 2009 Awardof Honor was presented to 11Bollinger facilities: Bollinger Algiers,LLC; Bollinger Calcasieu, LLC;Bollinger Fourchon, LLC; BollingerShipyards Lockport – Repair;Bollinger Shipyards, Inc. –Corporate; Bollinger Texas City, LP;Bollinger Larose, LLC; BollingerMarine Fabricators, LLC; BollingerAmelia Repair, LLC; BollingerLockport – New Construction; andChand. The 2009 Award of Meritwas presented to two Bollinger facili-ties: Bollinger Morgan City, LLC;and Bollinger Quick Repair, LLC.The 2008-2009 Delta Safety SocietyMost Improved Award was presentedto Bollinger Algiers, LLC.

50 MN June 2010

people & companies

SCA Recognizes Austal USA

Austal USA received two awardsfrom the Shipbuilders Council ofAmerica (SCA) for commitment toimproving safety and health in theworkplace. Austal USA President andCOO, Joe Rella; Health, Safety andEnvironmental Manager ChrisBlankenfeld; and Vice President ofExternal Affairs, Bill Pfister attendedthe SCA General MembershipMeeting in Washington DC at theend of April where they were present-ed with the SCA Award forExcellence in Safety and the Awardfor Improvement in Safety. TheAward for Excellence in Safety is pre-sented to shipyards that complete allfour quarters of their survey and havean end-of-year total recordable indus-try rate (TRIR) that is below theaggregate SCA TRIR. Austal’s 2009TRIR was 56% below the SCATRIR. The Award for Improvementin Safety recognizes shipyards thatcomplete all four quarters of theirsurvey without a recordable fatalityand have reduced their TRIR by 10%or more over the year. Austal reducedtheir TRIR by 72% from the previousyear.

Sparrows to Increase U.S. Staff Sparrows Offshore, LLC (formerly

Energy Cranes, LLC), Houston-based offshore crane, fluid power andpipe-laying equipment specialist,signed contracts in 2010 worth morethan $8m. As a result, the company

plans to increase its U.S. workforceby six percent, creating onshore andoffshore jobs in the group's Houstonand Louisiana operating bases. Thenew contracts cover crane refurbish-ment for long-term rental projectsand new crane sales internationallyand in the Gulf of Mexico and havebeen awarded by customers includingShell, Chevron, Apache, Total,Superior Energy, Transocean, EOG,Nippon, Maritech, Northstar and K-Mesco.

T&T Bisso Teams up with CISPRI

T&T Bisso announced an exclusivecooperative services agreement withCook Inlet Spill Prevention andResponse (CISPRI). Based in Nikiski,Alaska, CISPRI is a comprehensivestandby oil spill response cooperativewhose mission is to provide immedi-ate response capability to its membercompanies. The agreement provides aunique platform for OPA 90 relatedsalvage, emergency lightering, fire-fighting and oil spill response servicesin Alaskan waters and furtherstrengthens the planning andresponse posture for tankers and non-tank vessels operating in the area. In2009, T&T Bisso deployed and per-manently stationed emergencyresponse resources with CISPRI toserve the Cook Inlet and Alaska areasand participated in equipmentdeployment exercises in KachemakBay to demonstrate response capabil-ities.

Sabine Surveyors Buy WorldMarine Associates

Sabine Surveyors, Ltd. recently pur-chased marine surveying companyWorld Marine Associates, headquar-tered in Houston, Texas. SabineSurveyors, Ltd. is a regional marinesurveying company serving the Gulfand East coasts of the U.S., providingservice to a worldwide client base.

Survival Craft Operation SimulatorVirtual Marine Technology (VMT)

lifeboat simulator, SurvivalQuest, hasbeen approved as a Class “S”Simulator by Det Norske Veritas(DNV). SurvivalQuest is a trainingsimulator designed to allow lifeboatcoxswains to practice for a variety ofemergency launch conditions.

Lighting Sandy Neck LighthouseTideland Signal worked with the

Sandy Neck Lighthouse Committee,supplying them with a new ML-300SolaChan and MaxiHALO-60 LEDlight source to bring the Sandy NeckLighthouse back to life. First con-structed in 1857, the Sandy NeckLighthouse is located on the SandyNeck Peninsula, just over eight milesaway from Cape Cod Canal, a majorartery for ocean tonnage.Decommissioned by the U.S. CoastGuard in 1932, a restoration commit-tee was formed in 2004 with the aimof restoring the lighthouse in time forits 150th birthday. The new opticthey chose was the ML-300 SolaChanassembly lit by Tideland’sMaxiHALO-60 LED light sourceand powered with a pedestal mount-ed solar and battery system.


By working and collaborating with stakeholders prior tothe crisis, you can identify acceptable and equitable stan-dards together. After the discussions, we were able to gath-er major concerns and essential elements to develop thevessel prioritization tool. To develop the tool, we consid-ered five elements to be ranked to establish vessel priority:

• cargo stability• impact to economy• vessel capabilities• impact to receiving facility• impact to securityThis tool allows a waterway management team or

marine transportation system recovery unit to quicklyidentify high-priority vessels so activity can be resumed inthe waterway in an orderly manner.

Risk-based tools in use

As demonstrated by these examples, risk-based tools and

documenting processes can be worth their weight in gold.They can quickly bring executive decision makers up tospeed and provide them with the right perspective tomake the right decision. These tools focus effort andrecourse based on quantitative methods that can be recre-ated and eliminate the gut check method of evaluation.They capture experience and knowledge that can be lostwhen decision makers leave due to a permanent change ofstation or retirement. They also serve as springboards togenerate discussion about primary elements or processesprior to action and serve to create a baseline or commonground for stakeholders with varying perspectives.Furthermore, inviting stakeholders to view these decisionmaking processes increases the transparency of theprocesses and stakeholders’ trust in them.

Excerpt reprinted with permission from Proceedings, Winter2009-10

Risk-Based Decision Making Tools:

Aids to Make the Right Decision(Continued from page 23)

52 MN June 2010

It is the operator’s policy that this type of equipment notbe used without the use of a secondary control mecha-nism. This message is supported by the company’s poli-cies, safety alerts, and preached during safety meetings.However, the equipment being used at the time of thisincident did not have the required secondary controlmechanism. All of the crew were deposed and, to a man,all testified that they were aware that the equipment didnot have a control mechanism, that it was company poli-cy not to use such equipment but they used it anywaybecause they were trying to get the job done. They appearto place expediency over safety on the vessel while thehome office was preaching safety first. I am sure that all ofyou have experienced similar situations within your oper-ation.

Contrast this situation with what I have found withcompanies that have effectively disseminated the messageregarding the importance of safety. In those companies,when crew members are interviewed, they consistentlystate that it is the company’s policy that any crew membercan shut down an operation, at any time, if they feel thatthe situation is unsafe. At that time, the crew will regroup,confer and determine the safest way to proceed with theoperation. None of these employees feel a need to disre-

gard safety rules for the sake of getting the job donebecause the company’s leaders have communicated thatsafety is important and the employees on the vessel under-stand and believe in that message. Although accidentswith these companies are not unavoidable, their “lossrecord” is significantly better due to the effective commu-nication of this message.

The improved “loss record” has a direct affect onimproving the company’s bottom line as well as continu-ing to improve moral for the employees. Both of thesecomponents allow a company to grow more effectivelyand prosper in these difficult times.

Although creating a culture of safety it is not a leadershipskill that will get you written up in the industry’s publica-tions, implementing an effective safety plan is one of themost important components required to effectively leadyour company. In fact, it may be impossible to grow youroperation without everyone buying in to the culture ofsafety. The effective communication of safety principlescan save the company significant time, resources, and has-sle by avoiding potential incidents. These companyresources can then be more effectively used to grow yourcompany and create the innovations that are so appreciat-ed in our community.

How Effective Leadership Saved the Crew ofDeepwater Horizon

(Continued from page 21)

Again, the good news is that this writer is unaware ofany criminal prosecution of such responders by theUnited States. Oil spill response contractors provide sev-eral lines of defense to oil pollution by capturing and con-taining the spilled oil, controlling the direction of its flowto protect the most critical environmental areas, cleaningthe areas where oil has landed, and engaging in remedia-tion of areas affected by the spilled oil. However, mostpeople agree that salvors provide the first line of defensebecause their efforts usually afford the best chance to pre-vent or minimize spills. Salvors and other responders actto prevent, minimize, or remedy environmental harm. Itwould seem no more than reasonable that they should

enjoy the protection of responder immunity for both civiland criminal liability in the absence of their gross negli-gence or willful misconduct.

Correction: In Shirley’s previous column, “Mediation ofMaritime Disputes,” in the April edition of MarineNews, onpage 19 the text incorrectly stated that “often the process willstart with mediation briefs, sometimes many briefs and replybriefs, from both sides.” The text should have read “mainbriefs and reply briefs.” We apologize for the error.

A Primer on Responder Immunity(Continued from page 19)


by the numbers

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

Offshore Rig Day RatesFloating Rigs Rig Type Rigs Working Total Rig Fleet Average Day RateDrillship < 4000' WD 7 rigs 9 rigs $175,300.00Drillship 4000'+ WD 33 rigs 42 rigs $423,251.91Semisub < 1500' WD 11 rigs 18 rigs $306,493.75Semisub 1500'+ WD 66 rigs 85 rigs $301,683.97Semisub 4000'+ WD 67 rigs 86 rigs $411,270.83

Jackup Rigs Rig Type Rigs Working Total Rig Fleet Average Day RateJackup IC < 250' WD 32 rigs 50 rigs $78,545.45Jackup IC < 250' WD 32 rigs 50 rigs $78,545.45Jackup IC 250' WD 43 rigs 65 rigs $96,303.24Jackup IC 300' WD 91 rigs 124 rigs $111,137.50Jackup IC 300'+ WD 108 rigs 137 rigs $151,919.88Jackup IS < 250' WD 5 rigs 7 rigs —Jackup IS 250' WD 8 rigs 10 rigs $137,000.00Jackup IS 300' WD 2 rigs 5 rigs $60,300.00Jackup IS 300'+ WD 3 rigs 3 rigs $55,000.00Jackup MC < 200' WD 2 rigs 16 rigs $28,000.00Jackup MC 200'+ WD 14 rigs 28 rigs $47,076.92Jackup MS < 200' WD 2 rigs 2 rigs —Jackup MS 200'+ WD 10 rigs 19 rigs $52,348.57

Other Offshore Rigs Rig Type Rigs Working Total Rig Fleet Average Day RateDrill Barge < 150' WD 17 rigs 38 rigs —Drill Barge 150'+ WD 7 rigs 10 rigs $77,000.00Inland Barge 34 rigs 76 rigs $49,921.43Platform Rig 145 rigs 250 rigs $37,338.45Submersible 1 rigs 6 rigs $35,500.00Tender 23 rigs 31 rigs $119,772.73

Source: Rigzone

Offshore Rig Fleet by Region

Region % No.

Africa – West 79.2% (42/53)Asia – SouthEast 76.5% (62/81)Europe - North Sea 87.5% (63/72)Mediterranean 72.2% (13/18)MidEast - Persian Gulf 73.7% (70/95)N. America – Mexico 87.5% (28/32)N. America - US GOM 80.7% (71/88)S. America – Brazil 84.2% (48/57)

Source: Rigzone

Offshore Rig Utilization by Type

Type % No.

Drill Barge 80.0% (8/10) Drillship 75.5% (37/49) Jackup 78.6% (286/364) Semisub 83.2% (139/167) Submersible 100.0% (1/1) Tender 79.3% (23/29)

Source: Rigzone

TSA SurchargeWest CoastDate $/MT ch/$ ch/%May 17 465.00 -15.00 -3.1May 10 480.00 -20.00 -4.0May 3 500.00 +4.00 +0.8Apr 26 496.00 +13.00 +2.7Apr 19 483.00 +0.50 +0.1Apr 12 482.50 +6.50 +1.4Apr 5 476.00 +2.50 +0.5Mar 29 473.50 +22.00 +4.9Mar 22 451.50 -11.00 -2.4Mar 15 462.50 -9.00 -1.9Mar 8 471.50 +4.50 +1.0Mar 1 467.00 +0.50 +0.1

East CoastDate $/MT ch/$ ch/%May 17 461.50 -17.50 -3.7May 10 479.00 -28.00 -5.5May 3 507.00 +5.50 +1.1Apr 26 501.50 +16.00 +3.3Apr 19 485.50 +1.50 +0.3Apr 12 484.00 +2.50 +0.5Apr 5 481.50 +7.00 +1.5Mar 29 474.50 +12.50 +2.7Mar 22 462.00 -6.50 -1.4Mar 15 468.50 -13.00 -2.7Mar 8 481.50 +6.50 +1.4Mar 1 475.00 -5.50 -1.1

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

Indicative World Steel Prices

Indicative prices ChangeSBB HRC world price $/t 734.875 -3SBB Rebar world price $/t 668.555 -5SBB World Price Tracker 253.781 +1Source: Steel Business Briefing

Bunker FuelPort IFO 380 IFO 180 MDO Del. DateCorpus Christi 460.00/0.00 480.00/-15.00 720.00/-5.00 D 2010-05-20Houston 422.00/-6.00 438.00/-1.00 — W 2010-05-20New Orleans 436.00/+8.00 446.00/+7.00 645.00/+7.00 W 2010-05-20

Source: BunkerIndex.com - http://www.bunkerworld.com/markets/prices

Port IFO380 IFO180 MGO MDO UpdatedNew York 414.00/-16.50 434.00/-15.50 — 652.50/-7.50 May 20Houston 417.50/-11.00 432.50/-9.50 — 635.0/-29.00 May 20Los Angeles 451.50/-7.50 487.50/+2.00 — Pending May 21

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

54 MN June 2010

Alaska Ship & Drydock, Inc.3801 Tongass Ave.Ketchikan, AK 99901 www.akship.com Doug Wardtel: 907-228-5302fax: 907-247-7200email: [email protected]: Full service ship building & repairProducts: Drydocking up to 10,000 long tons, 450ft LOA; New ship construction

All American Marine200 Harris Ave.Bellingham, WA 98225 www.allamericanmarine.com Joe Hudspethtel: 360-647-7602fax: 360-647-7607email: [email protected]: Builder of Teknicraft catamaransProducts: High speed passenger vessels, ferries,research vessels, work boats

Atlantic Marine8500 Heckscher Dr.Jacksonville, FL 32226 www.atlanticmarine.com tel: 904-251-3111email: [email protected]: Shipyard, Florida & AlabamaProducts: Ship repair, conversion, shipbuilding

AustalP.O. Box 1049Mobile, AL 36633 www.austal.com Dan Spiegeltel: 251-434-8000fax: 251-434-8001email: [email protected]: Austal’s U.S. facility, located in Mobile, Ala.has built and delivered eight vessels since itopened in 2001 and currently employs over 700shipyard staffProducts: Austal designs and manufactures high-speed aluminum vessels for the commercial & mili-tary market

BAE Systems Ship Repair

750 West Berkley Ave.Norfolk, VA 23523www.baesystems.com/ShipRepairtel: 301-838-6000Descr: BAE SystemsShip Repair is thelargest U.S provider ofnon-nuclear ship repair, maintenance and modern-ization. Our highly skilled employees ensure thatour customers get the service they need, at acompetitive rate and are underway in the shortesttime possible. With four repair facilities located onboth coasts of the U.S. and in Hawaii, we areready for any job big or small, from massive cruiseships and container vessels to mega-yachts andtugs.

Bayonne Dry Dock & Repair Corp.P.O. Box 240Bayonne, NJ 07002 www.BayonneDryDock.com

Michael Cranstontel: 201-823-9295fax: 201-823-9298email: [email protected]: Covering all areas of ship repair

Bollinger Shipyards, Inc.P. O. Box 250Lockport, LA 70374 www.bollingershipyards.com Robert A. Sochatel: 985-532-2554fax: 985-532-7225email: [email protected]: Shipbuilding & repair

Bradford Marine BahamasPO Box F-44867Freeport, GB Bahamaswww.bradford-grand-bahama.com Dan Romencetel: 242-352-7711fax: 242-352-7695email: [email protected]: Marine repair & construction facilityProducts: Yacht & ship repair, barge construction,towing, brokerage

C & C Boat Works LLC2617 Engineers Rd.Belle Chasse, LA 40059 www.ccmrepair.comAnthony Cibilichtel: 504-433-4350fax: 504-4332383email: [email protected]: New constructionProducts: Offshore supply vessels, deck & tankbarges

Canal Boats, Inc.1850 SE 17th St.Fort Lauderdale, FL 33316 www.watertaxi.com/canalboats Bob Bekofftel: 954-471-7538fax: 954-728-8417email: [email protected]: Builders of USCG certified vesselsProducts: Water taxis, low wake ferries, excursion& glass bottom boats

Campbell Transportation Co. / C & CMarine Maint.P.O. Box 124Charleroi, PA 15022 www.barges.us William Slitetel: 724-483-6556fax: 724-483-6562email: [email protected]: Full service repair facilities & floating dry-dockProducts: Dry cargo/liquid barge repair & cleaningoperations

CMS North America, Inc.4095 Karona Ct.Caledonia, MI 49316 www.cmsna.com Steve Hillistel: 616-698-9970fax: 616-698-9730email: [email protected]

Descr: Manufacturer of high-performance, largeenvelope, five-axis CNC machining centers forboat molds & fabrication of composites/aluminum

Conrad Industries1501 Front St.Morgan City, LA 70381 www.conradindustries.com Gary Lipelytel: 985-384-3060email: [email protected]: Conrad builds and repairs tugs, barges, lift-boats, offshore supply vessels, & ferries in steel &aluminum for the commercial and governmentmarkets at our four shipyards.

Cutting Edge Metal Processing363 South Royal St.Mobile, AL 36603 www.cuttingedgemetal.com Sam Tannertel: 251-431-6922fax: 251-431-6970email: [email protected]: Advanced technology in metal cutting, form-ing & coatingProducts: Steel processing

Halifax Shipyard and Shelburne ShipRepair3099 Barrington St.Halifax, NS B3K 5M7 Canadawww.irvingshipbuilding.com Donald Kerrtel: 902-440-5630fax: 902-492-5818email: [email protected]: Ship repair, conversion, new building

Horizon Shipbuilding, Inc.13980 Shell Belt RdBayou La Batre, AL 36509 www.horizonshipbuilding.com Travis R. Shorttel: 251-824-1660 ext 222fax: 251-824-1664email: [email protected]: Shipbuilding & repairProducts: Boats, crewboats, towboats, barges,supply vessels, tugs, repair, conversions, govern-ment vessels

Houston Ship Repair, Inc.16201 Wood Dr.Channel View, TX 77530 www.houstonshiprepair.com N.V.R. Sarmatel: 281-452-5841fax: 281-452-1087email: [email protected]: Topside ship repair & conversion, rig repair& conversionProducts: Authorized Repairers for Jowa Ab oilcontent monitors & Tsuji Cranes

Intercept Boats835 Plain St.Marshfield, MA 02050 www.interceptboats.com Robert Perettetel: 781-834-2628fax: 781-834-2626email: [email protected]: Boat manufacturing & repair

directory • shipyards

Products: Special ops craft, interceptors, cargoprotection vessels

Ironhead Marine Inc.2245 Front St.Toledo, OH 43605 www.ironheadfab.com Tony LaMantiatel: 419-690-0000email: [email protected]: Full service marine maintenance & repairs,construction, conversion & repoweringProducts: Fabrication of furnaces, stacks, convey-ors & tanks with two dry docks

MetalCraft Marine Inc.347 Wellington St.Kingston, on K7K 6N7 Canadawww.metalcraftmarine.com Emily Roantreetel: 613-542-1810fax: 613-542-6515email: [email protected]: Builders of high-speed aluminum patrol,fire/rescue & work boats

Midship Marine, Inc.1029 Destrehan Ave.Harvey, LA 70058 www.midshipmarine.net Randy Hinojosatel: 504-341-4359fax: 504-340-8997email: [email protected]: Aluminum vessel constructionProducts: Aluminum passenger ferries, crew /utilityvessels, catamarans, semisubmersibles

Patti Shipyard, Inc.306 South Pinewood Ln.Pensacola, FL 32507 www.pattibuilt.com Frank Patti Jr. / Ashley Stonetel: 850-453-1282fax: 850-453-8835email: [email protected]: New constructionProducts: Tugboats, offshore vessels, inland tow-boats, passenger vessels

SeaArk Marine, Inc.P.O. Box 210Monticello, AR 71657 www.seaark.com Ken McFalls, VP of Salestel: 870-367-9755fax: 870-367-2120email: [email protected]: All welded aluminum boat manufacturerProducts: Boats 17 ft to 65 ft

Theriault International LtdSuite 114, 9049 Commercial St.New Minas, N.S. B4N 5A4 Canada www.theriaultinternational.com C. Theriaulttel: 902-467-0239fax: 902-467-0326email: [email protected]: New builds, repairs, conversions, deckequipment, liferafts, wipers (rags), chandlery, etc.

Todd Pacific Shipyard1801 16th Ave. SW

Seattle, WA 98134 www.toddpacific.com Martin J Muniztel: 206-623-1635 ext 110fax: 206-442-8512email: [email protected]: Ship building / ship repair

Yarde Metals45 Newell St.Southington, CT 06489 www.yarde.com Rick Marcinczyktel: 860-406-6061fax: 860-406-6040email: [email protected]: Yarde Metals carries extensive inventory ofmarine grade aluminum alloys in 5083 & 5086; The5000 series is stocked in ASTM B 928 specifica-tion; Stocked in extra wide sheet and plate;

Aluminum alloys are also available in 6000 seriesProducts: Aluminum, stainless, carbon steel, brass& cooper

Zito CompaniesP.O. Box 10306Jefferson, LA 70181 www.a-zito.com Jack Wershbaletel: 504-835-8531fax: 504-833-3116email: [email protected]: Shipyard barge repair & fleeting services


56 MN June 2010

Marine Travelift Boat HoistsMarine Travelift currently

offers boat hoists that rangefrom 15 ton to 1,000 toncapacity. Just a few featuresinclude articulated pivot trun-nion, allowing the frame of thecrane to flex under uneven ter-rain without causing structuraldamage or risking the safety ofthe load; patented four-wheel

steering; and the Ackerman steering principal, providing atighter turning radius.

www.marinetravelift.com

Inclinometer System for ShipbuildingThe Columbia Model

D I - 1 0 - D F D - I RInclinometer System isparticularly useful in con-struction and shipbuild-ing. It is a unique differ-ential tilt measuringdevice which allows

matching the slope of two remotely located surfaces. Thereadout can be set to indicate the absolute tilt of eithersensor or the differential angle between them.

www.columbiaresearchlab.com

Hydrex Underwater Hull Cleaning Hydrex offers hull

cleaning on a worldwidebasis through a networkof underwater hull clean-ing stations. All Hydrexsystems are carefully con-structed to minimize theoccurrence of damage on

the underlying paint layers while still removing all types offouling.

www.hydrex.be/services.htm

MIG Guns for Light to Heavy-Duty ApplicationsTregaskiss’s Tough Gun MIG Guns and TGX MIG

Guns both feature Tregaskiss’ exclusive Tough LockRetaining Heads with Dual Taper Technology, a tapereddesign that locks the contact tip securely in place and

keeps it centered to provide consis-tent weld quality. Tough Gun MIGGuns are designed specifically forwelding on heavy-duty applica-tions, including those with extend-ed arc-on times and ones in harshor abusive environments.

www.tregaskiss.com/configurator

New XLNT-6 Welding WireHobart Brothers offers a new

flux-cored wire for heavyequipment repairs, structuralsteel, ship, barge and off-shoreconstruction applications. TheFabshield XLNT-6 wire hasbeen especially designed for flat and horizontal weldingand offers high impact strength at low temperatures. Italso helps improve productivity compared to welding withstick electrodes.

www.hobartbrothers.com

Weldcraft Torch Package Weldcraft offers the

WP-225 Modular Flex-Neck Torch Package. Thepackage has been designedfor shop use on water-cooled applications and itallows welding operatorsto customize a single torch into multiple configurations. Itis ideal for welding operators who encounter many differ-ent weld joints on a regular basis.

www.weldcraft.com

Sorensen SG Series Now Includes 800VDC ModelThe Sorensen SG Series

of programmable powersupplies has been expand-ed to include a 0-800Vdcoffering. This product istargeted to meet theemerging higher voltagerequirements of the hybrid vehicle component and PVinverter test markets. The SG is available with 5kW,10kW or 15kW in a 3U chassis.

www.programmablepower.com

technology bits


Cole Hersee Co. Smart Battery IsolatorCole Hersee Company introduced

its new Smart Battery Isolator48525 and 48530. Ideal for marineapplications, the smart battery isola-tor prevents loads on the auxiliarybattery from draining the startingbattery. The smart battery isolatorprovides a more flexible solutionthan traditional isolators, as it is not specific to an alter-nator type.

www.colehersee.com

New Nord-Lock NutNord-Lock recently

launched the Nord-LockWheel Nut, which is prima-rily focused to the truckingindustry, but has applica-

tions in the marine industry. The new nut eliminatesunintentional loosening of nuts and is based on patentedwedge-locking technology of Nord-Lock, which has beenused in millions of bolted applications for over 25 yearsworldwide.

www.nord-lock.com

New High-Flow Stainless Steel RegulatorsThe new 7375 and 7376

pressure regulators by CatPump are designed to meetthe demands of industrialapplications where continu-ous-duty, dependable per-formance is a must. Thesehigh flow regulators set system pressure, by-pass unusedliquid without interrupting system operation and protectpumps from exceeding set system pressure.

www.catpumps.com

JRC America Radar: New Technology on the RiverJRC America, in a joint development effort with Campbell

Transportation, introduced a new generation of the JMA-5200MKII and JMA-5300MKII, into the inland waterway market.In order to properly assess the effectiveness and performance ofthese products, evaluations were performed on actual shipboardenvironments, addressing the operators concerns of poor close-tar-get image quality and ghost echoes, primarily caused by barges andpower lines and riverbank outlines. The evaluations were performedon three vessels, the Bill Stile, the Georgetown and the Allegheny,in separate locations on the lower Ohio, Allegheny and KanawhaRivers. Operators commented on several benefits and featuresoffered on the JRC systems that surpassed their current capabilities.Most notable are barge icons allowing the tug to see the barges ontheir screen while navigating, notable echo quality — even in poorweather conditions, superior radar picture quality and the ability todisplay the radar screen in a portrait mode while featuring the stat-ue mile and rate of turn indicator on the display. Available June2010, the new generation of JMA-5200MKII/5300MKII are thefirst systems to be marketed exclusively to the inland waterway mar-ket. The JMA-5200/5300MK II is also equipped with the Constaview feature, offering in-house tornado technologythat uses three high-speed processors.

For more information, Email sales@ jrcamerica.com

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ices for repair and maintenance

projects. Perform inspections of vessels

for repair & maintenance standards, reg-

ulatory Compliance and AWO RCP pro-

gram. Perform emergency repairs

on vessels as required.

SKILLS AND ABILITIES:

- Computer skills: Word and Excel

- Knowledge of oil transportation and

marine industry.

- Knowledge of tugs and barge mainte-

nance systems and equipment.

- Ability to repair marine equipment on

site under adverse conditions.

- Ability to deal with others using cour-

tesy, tact, and good judgment.

- Maintain the confidentiality of all sensi-

tive communications.

- Ability to understand and execute com-

plex oral and written instructions.

- Ability to work independently with min-

imal or no guidance.

- Ability to get along with office staff and

vessel crewmembers.

- Must be physically fit enough to board

barges and tugs at sea and in port.

KNOWLEDGE OF:

Must be able to read, speak, write, type,

and understand English in person and

over the telephone.

Must be thoroughly familiar with tank

barge operations, ship operations, and

terminal/refinery operations.

EQUIPMENT AND MACHINERY USED:

- Required to work aboard boats and

barges using pike poles, heavy lines,

winches, mechanical tools for repairs.

- Computer

- Copier

- Fax Machine

WORK EXPERIENCE:

- Experience maintaining tugs and

barges.

- 3 years at sea on tankers or oil barges

or equivalent military experience.

- 3 years of increasingly responsible port

engineering experience in the maritime

industry.

EDUCATION / TRAINING:

- Four year college education in Mar-

itime field or related studies or equiva-

lent experience.

- U.S. Coast Guard license or U.S.

Coast Guard Tankerman endorsement

on a Merchant Mariner's Document.

- HAZWOPER (including Incident Com-

mand System) training within 90 days of

being hired.

- First Aid training.

- CPR training.

OTHER DUTIES:

- Perform related duties as assigned.

- Perform in the company Spill Manage-

ment team as assigned.

Human Resources

Harley Marine Services

910 SW Spokane Street

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

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

New York Harbor experience preferred.

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

Current and endorsement required; experience preferred.

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

VANE BROTHERSOver a Century of Maritime Excellence

Baltimore Norfolk Philadelphia

www.marinelink.com Marine News 59

60 MN June 2010

MaritimeJobs Powered by www.maritimejobs.com

Post Your Resume for Free • Energize Your Job Search @ MaritimeJobs.com

Vessels for Sale

WA 98134

Fax: 206-428-7194

Email: [email protected]

Web: http://harleymarine.com/jobs.html

Tug Mate

Job Location: USA, New YorkBouchard Transportation Co., Inc. has im-mediate openings for Tug Mates in theNortheast. All applicants must have a validUSCG license with towing endorsement,STCW, TWIC, passport and Northeast re-cency. GMDSS and ARPA a plus. Pleasedownload an application and send it in withcopies of your documents for immediateconsideration.Laurie LawrenceBouchard Transportation Co., Inc.58 South Service RoadSuite 150

Melville NY 11747 USAPhone: 631-390-4900Fax: 631-390-4966Email: [email protected]: http://www.bouchardtransport.com

Harbor Supervisor

Job Location: USA, Powhatan Point,

Ohio

The Ohio Valley Transloading Company,

located on the right descending bank of

the Ohio River at Mile Post 110.8, is ac-

cepting resumes for the position of Har-

bor Supervisor. Ideal candidates will be

responsible for supervising all loading of

barges, and all unloading of trains and

trucks in an efficient manner while en-

suring the safety of all personnel and

equipment. Candidates must be able to

communicate clearly and interface with

all river and railroad personnel. Candi-

dates may be required to operate harbor

tug boats at times. The sucessful candi-

date for this harbor position will require a

valid USCG license, with a Western

Rivers endorsement. Experience on the

Ohio River is a plus. Excellent benefits

and salary is commensurate with experi-

ence.

Paul B Piccolini

Murray Energy Corporation

56854 Pleasant Ridge Road

Alledonia OH 43902 USA

Phone: 740-926-1351

Fax: 740-926-1351

Email: [email protected]

Marine MarketplaceUS Coast Guard Approved

(STCW-95) Basic Safety Training

• Basic Safety Training• Medical PIC• Proficiency in Survival

Craft

• Tankerman PIC• Advance Firefighter• Vessel Security Officer

El Camino CollegeWorkplace Learning Resource Center

13430 Hawthorne Blvd. · Hawthorne, CA 90250Ten (10) minutes from LAX · Twenty (20) minutes from LA Harbor

Call for Information & Registration(310) 973-3171/47 • www.businessassist.org/wplrc/coast.html


Vessels for Sale

NEW PRODUCTS

NEW PRODUCTS

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

NEW PRODUCTS

Marine Marketplace

62 MN June 2010

Accurate tank soundings havenever been easier when one TANKTENDER monitors up to ten fueland water tanks. Reliable, non-elec-tric, medical grade components;accurate liquid levels; fast installa-tion! Only one small hole in tank top.Furnished as optional equipment bymany first class yacht builders.

Gig Harbor, WA USAwww.thetanktender.com

253-858-8481 Fax: 253-858-8486

Tank TenderThe original precision

tank measuring system!

��

��

��

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

www.checkline.comCHECK•LINE ®

CORROSION & WALLTHICKNESS GAUGE

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

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

Measuring Range 0.025 – 6.000 inches0.60 – 150.0 mm

FIV

E-YE

AR WARRANTY

• Many other models availableincluding—

THRU PAINTDATALOGGINGUNDERWATER

Call Toll Free 1-800-645-4330

Marine MarketplacePROFESSIONALS

BARGES FOR RENT


64 MN June 2010

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

ADVERTISER INDEX

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

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

5 AER SUPPLY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.aersupply.com (281) 474-3276

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

40 AMERIC CORPORATION . . . . . . . . . . . . . . . . . . . . . . . www.americ.com (800) 364-4642

21 BAIER MARINE . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.baiermarine.com (206) 709-1500

35 BOLLINGER SHIPYARD, INC. www.bollingershipyards.com (985) 532-2554

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

13 CHESAPEAKE SHIPBUILDING. . . . . . www.chesapeakeshipbuilding.com (800) 784-2979

C2 CHEVRON www.chevronlubricants.com Please visit us online

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

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

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

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

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

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

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

17 FLUORAMICS-TUFOIL DIVISION . . . . . . . . . . . . . . . . . . www.tufoil.com (800) 922-0075

5,29 GLOBAL MARINE POWER . . . . . . . . . . . www.globalmarinepower.com (713) 640-9300

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

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

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

7 INMARSAT . . . . . . . . . . . . . . . . . . . . . www.inmarsat.com/merchant150 Please visit us online

40 JMS Naval Architects & Salvage Engineers. . . . . . . . www.jmsnet.com (860) 536-0009

15 KOBELCO EAGLE MARINE, INC. . . . . . . . . . www.kobelco-eagle.com (212) 967-5575

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

47 MarineCFO Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.marineCFO.com (866) 962-7463

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

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

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

C3 OceanTechExpo . . . . . . . . . . . . . . . . . . . . . . . www.oceantechexpo.com (561) 732-4368

27 OP PRODUCTS, INC. . . . . . . . . . . . . . . . . . . . . www.opprofessional.com (800) 411-8801

27 QUALITY SHIPYARD . . . . . . . . . . . . . . . . . . . . . . . . . [email protected] (985) 876-4846

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

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

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

29 SENESCO MARINE . . . . . . . . . . . . . . . . . . . . . . www.senescomarine.com (401) 295-0373

49 SKOOKUM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.skookumco.com (503) 651-3175

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

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

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

41 WESTERN FIRE & SAFETY . . . . . . . . . . . www.westernfireandsafety.com (206) 782-7825

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