RESEARCH PROPOSAL - Multi-Mission Maritime Education Fleet - Rev. D

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RESEARCH PROPOSAL:

MULTI-MISSION MARITIME EDUCATION FLEET –

REPURPOSING OFFSHORE SERVICE VESSELS (OSVS) FOR USE AS TRAINING

VESSELS

For Submission to:

U.S. DEPARTMENT OF TRANSPORTATION

–––– OFFICE OF BUDGET AND MANAGEMENT

–––– TRANSPORTATION APPROPRIATIONS SUBCOMMITTEE

3 July 2016

Multi-Mission Maritime Education Fleet – Repurposing OSVs for Use as Training Vessels

(R)Evolution Consulting & Engineering Services 2 of 24 28 June 2016

DOCUMENT INFORMATION

REVISION HISTORY

Rev Date Description By Checked Approved

A 03/24/2016

Draft submitted for Department of Transportation, Office of Budget and Management, and Transportation Appropriations Subcommittee review & consideration

CNF CNF CNF

B 05/17/2016 Revised to reflect additional research; For wider industry consideration

CNF CNF CNF

C/D 06/28/2016 Revised to reflect additional research; For wider industry consideration

CNF

AMENDMENT RECORD

Revision Description of Changes

DISCLAIMER

This report is intended for the sole use of the person or company to whom it is addressed and no liability of any nature whatsoever shall be assumed to any other party in respect of its contents. As to the addressee, (R)EVOLUTION CONSULTING & ENGINEERING SERVICES, LLC (the Company) shall not be liable for any loss or damage whatsoever suffered by virtue of any act, omission or default (whether arising by negligence or otherwise) by the Company or any of its servants.



EXECUTIVE SUMMARY

The current market in the offshore industry is suffering from low oil prices resulting in poor demand for service vessels of all varieties. This has resulted in a “buyer’s market” for almost any type of vessel including platform supply, subsea construction, and assets as large as drillships and semisubmersibles.

In keeping with a sustainable approach to the maritime industry, repurposing unused vessels would be a laudable use of existing assets in which significant resources and energy have already been spent in design, manufacture, and maintenance. These vessels are on average 10 years old or less, far newer than the typical training vessel historically obtained from industry or the US government. The use of existing vessels would create a great opportunity for the State and Federal Maritime Academies and other learning institutions to upgrade their training vessels with up to date equipment and technology that is now standard across many sectors of the maritime industry.

With the creation and use of a pragmatic and modern fleet of vessels cadets, midshipmen, students, veterans, and trade technicians can learn, grow, and graduate with competence and an applicable level of experience that would prepare them as licensed mariners and leaders for service in the transportation and defense needs of the nation.

Responses, Comments, and Suggestions are Welcome

Any comments to the material contained herein are welcome and should be addressed to Chad N. Fuhrmann by email at [email protected] or by phone at (920) 750-8844.

This proposal is provided without any assumption of acceptance or expectation of funding. Rather, it is intended to provide an example of a potentially more cost effective, situationally adaptable, and commercially viable alternative to traditional attitudes.

Formal proposals outlining anticipated schedules, costs, and associated project concerns can be provided for each project phase described herein or as a comprehensive package.

NOTE: This proposal does not represent a comprehensive analysis of the market but only represents an initial investigation into the potential benefits of an alternative approach.

About (R)Evolution Consulting & Engineering Services, LLC

(R)Evolution Consulting & Engineering Services, LLC is an independent third party consulting organization providing diverse assurance services to the maritime industry. All services are guided by the core values of quality, trust, and integrity and in keeping with the Company’s core mission, “Protecting commercial viability through integrity assurance.”

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CONTENTS

1. SYNOPSIS ............................................................................................................................................... 5

1.1 Background ............................................................................................................................................... 5 1.2 Purpose ..................................................................................................................................................... 5 1.3 Scope of Report ........................................................................................................................................ 5

2. DEFINITIONS ........................................................................................................................................... 6

2.1 General ...................................................................................................................................................... 6 2.2 Industrial Mission ....................................................................................................................................... 6

3. A NEW HORIZON IN THE MARINE INDUSTRY ..................................................................................... 7

3.1 The Changing Face of the US Maritime Industry ...................................................................................... 7 3.2 Opportunity in the Modern Marine Market ................................................................................................. 7 3.3 Innovative Technologies ............................................................................................................................ 8 3.4 Diverse Training Platforms ........................................................................................................................ 8 3.5 Sustainable Approach ............................................................................................................................... 8 3.6 Shipyards & Conversions .......................................................................................................................... 9

4. MULTI-MISSION MARITIME EDUCATION FLEET – STRUCTURE & FUNCTION .............................. 10

4.1 Overview ................................................................................................................................................. 10 4.2 A Multipurpose Operational Fleet ............................................................................................................ 10 4.3 Maritime Training & Education Afloat ...................................................................................................... 10 4.4 Maritime Training & Education Ashore .................................................................................................... 11 4.5 Education, Research, & Awareness ........................................................................................................ 11 4.6 Crewing, Personnel, & Staff .................................................................................................................... 11 4.7 Vessel Management ................................................................................................................................ 12

5. GOVERNMENT PARTNERS ................................................................................................................. 13

5.1 Overview ................................................................................................................................................. 13 5.2 National Defense & Emergency Response ............................................................................................. 13 5.3 Environmental Response ........................................................................................................................ 13 5.4 Humanitarian Missions ............................................................................................................................ 14 5.5 Veteran Transition Programs .................................................................................................................. 14

6. INDUSTRY PARTNERS ......................................................................................................................... 15

6.1 Overview ................................................................................................................................................. 15 6.2 Commercial Entities ................................................................................................................................ 15 6.2.5 Academic Institutions .............................................................................................................................. 15

7. SUMMARY ............................................................................................................................................. 16

7.1 Challenges .............................................................................................................................................. 16 7.2 Unprecedented Opportunities ................................................................................................................. 17

APPENDIX A References ............................................................................................................................. 18 APPENDIX B Letter (Page 1) from Representatives Benishek & Crowley ...................................................... 20 APPENDIX C Letter to Secretary Foxx, Director Donovan, Chairman Diaz-Balart, & Ranking Member Price .. 22



1. SYNOPSIS

1.1 Background

1.1.1 Beginning in late 2014, efforts have been underway to secure government funding for new training vessels for the State Maritime Academies. State representatives such as the Honorable Joseph Crowley (NY) and the Honorable Daniel Benishek (MI) continued to carry this agenda forward through 2015 and into the current year, with the end goal of effecting the budgets for fiscal years 2017 through 2019.

1.1.2 Funding for new training vessels, officially listed as "Funding for National Security Multi-Mission Vessels" is already in process although not noted specifically in the fiscal year 2017 budget.

1.1.3 Since this effort began in 2014, the U.S. offshore oil and gas sector has experienced a significant decline in demand for its products and services, reflecting the international drop in oil prices. Consequently, utilization rates of offshore service vessels currently average 10% – 30% (depending on vessel type) lower than utilization rates of just two years ago.

1.1.4 Taking into account the number and type of vessels currently laid up in the Gulf of Mexico region and the need for new and relevant training platforms for the Nation’s maritime schools, the floating force of inactive Offshore Service Vessels presents a singularly exceptional opportunity. An opportunity for creating a diverse, Multi-Mission Maritime Education Fleet comprised of training vessels that are capable of both performing training and commercial functions and readily equipped with the modern technology that is standard across the maritime industry.

1.2 Purpose

1.2.1 This document represents a preliminary proposal for additional research and cost benefit analyses into the repurposing of idle Offshore Service Vessels for an adapted industrial mission of serving our maritime learning and research institutions as modern, state-of-the-art training facilities.

1.2.2 This proposal is offered as an alternative to committing significant funds to a more expensive – albeit seemingly easier – solution of funding the building of new vessels as purpose-built training platforms.

1.3 Scope of Report

1.3.1 This document will consist of two parts. The first part will provide the basic outline of a proposed Multi-Mission Maritime Education Fleet created from an existing fleet of Offshore Service Vessels. It will detail the benefits of developing such a fleet and address arguments against it that favor new build training vessels.

1.3.2 The second part of this report will consist of a preliminary research proposal for conducting a complete cost benefit analysis. Such an analysis would compare and contrast a newbuild program comprised of new vessels for each of the State and Federal Maritime Academies and comparing the results against an alternative program utilizing a repurposed fleet of existing Offshore Service Vessels for use as training vessels.



2. DEFINITIONS

2.1 General

2.1.1 The maritime industry uses terms that are unique to each sector. Effort was made to generalize these terms for better understanding. Where necessary uncommon terms, or expressions carrying distinctive meanings within the context of the industry have been defined.

2.1.2 The vessel types discussed within this document vary in size, tonnage, horsepower, and industrial mission (see below). All of these assets are referred to using the general term Offshore Service Vessels (OSVs) and are viewed from a common perspective of their use as modern training platforms for the maritime industry.

2.2 Industrial Mission

2.2.1 OSVs vary in capabilities and design intent. The specific design intent and/or operational capability of an OSV is referred to as its industrial mission.

2.2.2 Many vessels make up the diverse services available to the offshore industry. They are utilized throughout the offshore energy sectors to perform various support functions ranging from logistical support, transport, and rescue services to a variety of subsea construction services.

2.2.3 Additional information and explanation regarding OSVs and their industrial missions is included in subsequent sections.



3. A NEW HORIZON IN THE MARINE INDUSTRY

3.1 The Changing Face of the US Maritime Industry

3.1.1 Modern OSVs make up a growing sector of the U.S. maritime industry. The number of U.S. flagged, Jones Act eligible vessels currently numbers well over 1000, with the quantity of deep water, ocean going vessels accounting for less than twenty percent of that total.

Figure 1: US Flagged, Jones Act eligible, ocean going vessels (US DOT 2013).

Figure 2: US Flagged, Jones Act eligible OSVs (US DOT 2013).

3.1.2 A significantly larger portion of this number is made up of inland and offshore vessels. Hundreds of additional OSVs fly a variety of national flags but are owned and operated by U.S. companies.

3.1.3 Offshore Service Vessels provide a vital source of employment to U.S. mariners and serve in many critical roles in the offshore sector and beyond:

OSVs are efficient and vital components of the oil and gas industry. They provide logistical support for offshore drilling platforms-from logistics to rescue services.-and form a maritime-industry subsector that generates more than $25 billion in annual revenues. Many different types of vessels make up the OSV market, which is now at a low point caused by a plunge in oil prices and excess industry capacity (Offshore, 2016).

3.1.4 For well over a decade, the OSV sector of the industry has provided employment to thousands of people, including graduates of the six State Maritime Academies and the Federal Maritime Academy. Of the 1.5 million jobs provided by the greater marine industry, over 400,000 are located in the Gulf of Mexico region alone and dedicated to the support of the offshore industry (Quest Offshore, 2011).

3.1.5 With these numbers in mind, it is time to reconsider the mission and method of the Nation’s maritime education and training programs and shift focus to an area of the industry that continues to grow and evolve more quickly than the sectors that have traditionally been the focus of academies’ efforts to “…educate and graduate officers of exemplary character to serve our Nation’s maritime-transportation and defense needs.”

3.2 Opportunity in the Modern Marine Market

3.2.1 In response to low oil prices this same OSV fleet has seen a drastic drop in utilization across the sector, proportional to the equivalent utilization rate for drilling related assets. Further, and as noted in the Offshore analysis, the number of OSVs available to the offshore market has increased 38% since 2008 with the rig count increasing only 5%. These numbers translate into a drop of overall utilization of these vessels (depending on type) ranging from 10% – 30% lower than utilization rates of just two years prior.



3.2.2 The result is a surplus of OSVs – of every type – that are minimally used, being prepared for long lay-up periods (known as “cold stacking”) or considered for more drastic fates such as scrapping or sale and relocation to overseas markets.

3.2.3 As of this writing there are estimates of the number of laid up OSVs exceeding 1000 units globally:

…[T]here could be an oversupply of 600-700 units of PSVs, and 800 AHTS vessels, while global utilisation of offshore supply construction vessels (OSCVs) is down to just 40% (Offshore, 2016).

3.2.4 These inactive Offshore Service Vessels make up a floating force presenting a singularly exceptional opportunity. OSVs may be repurposed with the objective of creating a diverse, Multi-Mission Maritime Education Fleet comprised of training vessels that have been built in U.S. shipyards, are equipped with the modern technology that is standard across the maritime industry, and retain commercial viability.

3.3 Innovative Technologies

3.3.1 Offshore Service Vessels actively utilize technological advances that are prevalent across the modern marine industry, regardless of the sector. While classroom training can provide a basic understanding of technologies in use in the industry, OSVs will provide opportunities to interface with this equipment and technology as functional and installed systems on actual operating platforms.

3.3.2 Dynamic positioning and Electronic Chart Display & Information System (ECDIS) are active components of the modern OSV. These technologies are seeing increasing use in deep water vessels, as well. ECDIS and electronic charting are required on board virtually all vessels serving the United States.

3.3.3 The U.S. and global marine industries continue to research technology that promises to increase the dependency on automation. The vast majority of OSVs employ the current iteration of this automation in the form of dynamic positioning. The basis of this technology is the interfacing of vessel propulsion, navigation systems, and the human element. Whether for the stationary positioning of vessels alongside offshore platforms, for transiting between waypoints in autopilot mode, or simply assisting a vessel in maneuvering into and out of port facilities, DP technology has been in use on OSVs for decades and is continuing to see broader applications in the wider maritime industry.

3.4 Diverse Training Platforms

3.4.1 The varying types of vessels and industrial missions will provide an array of platforms that are well suited to being repurposed as training vessels. These vessels will comprise a diverse fleet providing a level of general industry relevant knowledge and proficiency development that will be required across many sectors of the maritime industry in the future, not just the sector for which the vessels were originally intended.

3.4.2 Suitable vessels of varying designs can be repurposed allowing State and Federal Maritime Academies (and other maritime-related schools and training facilities) to share multiple assets providing varied training on differing vessel types. While current training vessels serve to train cadets with a focus on the development of general of maritime skills, utilizing vessels designed and used for specific industrial missions will familiarize cadets with the modern function of vessels and equipment while still providing them with the necessary level of general nautical knowledge.

3.4.3 Taken together, the maritime education fleet will offer a wide variety of mission specific familiarization intended to provide a well-rounded perspective on the larger maritime industry. The Multi-Mission Maritime Education Fleet will be comprised of vessels designed to provide an array of services to the offshore industry and covering a wide range of industrial missions.

3.5 Sustainable Approach

3.5.1 The United States has committed itself to a sustainable approach to its overarching transportation network. From the Fiscal Year 2017 Budget of the U.S. Government –



As we look to the future, we must invest in a new, sustainable transportation system that speeds goods to market, expands Americans’ transportation options, builds resilient and connected communities, and integrates new technologies… into our infrastructure system.

3.5.2 Furthermore, the U.S. has been, for several years, dedicated to the sustainable development of its maritime industry. From the 2011 Americas Marine Highway Report to Congress –

The America’s Marine Highway Program envisioned by USDOT will… [work] to bring about a more diverse, energy-efficient, and climate-friendly transportation system through the creation and expansion of domestic water transportation services. The goal of the Program is to develop and expand these services in a self-sustaining, commercially-viable manner that also recognizes the public benefits… resulting from a more sustainable transportation system, improved safety, and additional sealift resources for national defense.

3.5.3 Vessels that have been provided to the State and Federal Maritime Academies currently range in age from 26 years (Maine Maritime) to 54 years (SUNY Maritime). These vessels are well maintained and in good overall condition for their age but are in need of significant updates – or outright replacement – to remain relevant to the industries they are intended to serve. They are equipped with outdated technology and are approaching or exceeding the extent of their useful service lives.

3.5.4 In short, the existing training vessels are not up to the industry standards for which the future leaders of the industry will be responsible after graduation.

3.5.5 The Offshore Service Vessels that currently comprise the offshore sector fleet are on average 10 years old or less. The use of existing vessels with decades of active service life remaining would greatly reduce maintenance costs and create an opportunity for State and Federal Maritime Academies to employ up to date equipment and technology that is now standard across many sectors of the maritime industry.

3.5.6 Some of the vessels that would make up the Multi-Mission Maritime Education Fleet could be received as donations from companies willing to sponsor the program. These supporting organizations would benefit in several ways, both short-term and long-term. Primarily, companies sponsoring such a program recognize the benefit of creating learning and training platforms dedicated to the development of the future leaders of the greater maritime industry.

3.6 Shipyards & Conversions

3.6.1 The critical infrastructure supporting the US Maritime Industry begins with the Nation’s shipyards and related services. These facilities provide the manpower, engineering, and ingenuity behind the modern maritime industry and maintaining existing assets including the current maritime training fleet.

3.6.2 It is fair to state that the adoption of a Multi-Mission Maritime Education Fleet could potentially result in reduced short-term revenue to the shipyards that would otherwise benefit considerably from contracts for government newbuild programs. However, participating shipyards would nonetheless benefit from programs for the conversion, upgrades, and maintenance required for these vessels over the long-term. As this fleet grows from an initial commitment to a fully functioning fleet in continuous operation (ideally), the required maintenance of such vessels will exceed those of the existing training fleet or of newbuild vessels that would lay relatively inactive for a majority of their service lives as training platforms.



4. MULTI-MISSION MARITIME EDUCATION FLEET – STRUCTURE & FUNCTION

4.1 Overview

4.1.1 The maritime industry in general, and the offshore sector of the industry specifically, play critical roles in the viable development of the U.S. transportation sector. In keeping with this approach toward a more sustainable industry, repurposing laid-up vessels that represent the modern offshore fleet is an efficient and organic method of leveraging existing U.S. resources for the growth and development of a national industry that is more complete, well rounded, and commercially viable.

4.1.2 Firsthand training and experience in manning, operating, and maintaining well-equipped, modern vessels will result in a larger pool of better trained officers available to maintain and lead the future marine industry. This experience, both on board and shoreside, will provide cadets and students with tangible experience and credentials beyond the limited deck/engine experience mixed with theoretical classroom training that comprises current vessel-based training regimes.

4.1.3 A diverse training fleet could be utilized and shared by all of the State Maritime Academies on a scheduled or rotational basis. With the oversight of faculty and the support of industry professionals, cadets can take on the responsibility of managing and directing vessel movements, operations, and day to day planning.

4.2 A Multipurpose Operational Fleet

4.2.1 If a variety of these vessels were selected and repurposed as training vessels, they would be able to serve as an operational fleet in every sense. The proposed size of such a fleet could vary from six (6) vessels (one per State Maritime Academy) to twelve (12) or more to accommodate the required numbers of cadets/students and to provide for geographical availability between Academy locations and project areas.

4.2.2 Where reasonably possible each of these vessels, though repurposed, will maintain a sufficient level of its intended design and industrial mission such as to remain commercially viable. The Multi-Mission Maritime Education Fleet can therefore serve a variety of purposes in the industry while still fulfilling their primary function as training platforms for the State and Federal Maritime Academies.

4.3 Maritime Training & Education Afloat

4.3.1 Cadets can serve as active crewmembers with responsibilities for the day-to-day management, execution, and maintenance of vessel operations under the supervision of experienced industry professionals and Academy/school staff.

4.3.2 These OSVs will serve as the primary training platforms for the future maritime offices of the industry. Vessels are outfitted with traditional navigational equipment as well as modern technological advancements including dynamic positioning systems, DGPS, ECDIS, GMDSS, and subsea survey/sonar equipment.

4.3.3 While the size and tonnage ratings of these vessels can vary (see Challenges, Sect. XXX), relevant experience in vessel handling and seamanship remain the same, if not even more applicable on these smaller vessels. As an example, OSVs maneuver in and out of port much more than larger, ocean-going vessels providing for frequent opportunities at maneuvering exercises.

4.3.4 Likewise, the horsepower requirements of these vessels vary widely with many vessels far exceeding the 4,000 horsepower minimum requirement for unlimited engineering licensure. Regardless, the engineering basics remain identical to larger vessels but with more opportunity to witness and participate in both routine and unscheduled maintenance activities.

4.3.5 Additional equipment installed on these vessels include cranes, advanced propulsion systems, and the associated mechanical, electro-mechanical, electronic, and hydraulic systems and subsystems required for their operation. Hands-on exercises and maintenance of this equipment provides invaluable experience that supplements theoretical knowledge and may not be available on ocean going vessels. This work can likewise be used to provide practical experience to both marine and non-marine technical training programs.



4.3.6 Finally, regardless of utilization as an educational platform in local areas or remotely located for commercial purposes, fleet vessels can function continuously as extensions of the Academy or academic institution they are serving. Classroom facilities may be located on board and staffed by dedicated instructors when serving as a dedicated training platform. If operating remotely (e.g. on a project site) vessels may be provided with modern communications to allow for instruction to continue on board regardless of location.

4.4 Maritime Training & Education Ashore

4.4.1 Practical experience will extend beyond the classroom into an industry environment as learners become active participants in the operations and management of individual vessels and the overall fleet. Not only would cadets be active on board the vessels but they – as well as non-sailing, maritime business and management students – can likewise develop applicable management skills through involvement in the detailed aspects of fleet management.

4.4.2 Cadets and students alike can be directly involved in fleet logistics moving vessels between the schools, scheduling maintenance and general upkeep, and communicating with Class and other maritime governing agencies regarding regulatory requirements such as surveys, inspections, and certificate renewals.

4.4.3 Program participants can likewise participate in marketing the vessel for commercial purposes. By facilitating the commercial applications of fleet assets operating expenses may be offset while at the same time developing a practical understanding of the business side of the marine industry.

4.5 Education, Research, & Awareness

4.5.1 As noted above, training and development programs can extend beyond curricula directly related to the maritime industry. With heavy reliance on shoreside technical capabilities, the modern marine industry is dependent on the technical expertise of service providers and technicians with familiarity in the systems employed on board. As a result, the use of OSVs as training platforms provides fantastic opportunities for technical/mechanical training involved in the installation and maintenance of the advanced software, electronics, and hydraulics installed on board.

4.5.2 In addition to being shared between the Maritime Academies and training institutions, assets can be extended to other learning and research institutions for use as floating laboratories, classrooms, and/or utilized as extensions of existing research fleets or as special purpose assets by the University-National Oceanographic Laboratory System (UNOLS), the National Science Foundations (NSF), the National Oceanic and Atmospheric Association (NOAA), or similar.

4.6 Crewing, Personnel, & Staff

4.6.1 Vessels could maintain the minimally required complement with full time industry personnel. Additional cadet and unlicensed billets may be filled by Academy cadets. Manning requirements will be dependent on the vessel’s Certificate of Inspection (COI) and determined by the purpose of the vessel’s mission at a given time (e.g. a specific commercial project or dedicated training cruise).

4.6.2 Vessel manning may be achieved by a number of means, singularly or combined. Personnel may be direct hire employees through a dedicated vessel management organization (discussed below) or employees of sponsoring companies. Additionally, vessel staff may be obtained on a voluntary basis with mariners providing their time and expertise as a means of obtaining necessary sea time for license upgrade, DPO certification, etc.

4.6.3 Additional staff may be provided through veteran’s transition programs as outlined above.

4.6.4 Staff required solely for education and training can be provided through cooperation between the State and Federal Maritime Academies. Industry organizations and equipment manufacturers/vendors with specialized expertise such as dynamic positioning may be willing to volunteer personnel or offer them at a reduced rate for training purposes.



4.6.5 Finally, companies, organizations, and institutions hiring/chartering vessels for specific projects may provide project personnel for specific operational training or familiarization.

4.7 Vessel Management

4.7.1 Vessel management may likewise be provided through a number of means, generally in direct cooperation with the Maritime Academies and learning institutions involved. Regardless of overall responsibility, participating cadets and students will receive direct experience in and responsibility for general management duties and accountability for all aspects of operations, maintenance, and vendor and service support.

4.7.2 Management may be provided by a single entity, either commercial, academic, governmental, or a combination thereof. Additionally, this organization could be a collaborative effort controlled by the Academies themselves or, alternatively, may be an independent organization operated on behalf of and in cooperation with the Academies.

4.7.3 Sponsoring companies may choose or offer to maintain responsibility for the vessel. These companies would then control the operating aspects of the vessel and may potentially be able to offer internships to students allowing them to participate in vessel or fleet management activities.



5. GOVERNMENT PARTNERS

5.1 Overview

5.1.1 In addition to its federal service as a maritime training platform, the Multi-Mission Maritime Education Fleet will likewise be at the disposal of the federal government as deemed necessary for purposes of national defense and emergency response. Many types of OSVs already serve the government in various capacities including serving as supply vessels for the U.S. military transferring specialized cargo from port to port and during underway replenishment operations at sea. Fleet vessels would be capable of serving in many other capacities as well.

5.1.2 Government bodies that could utilize the fleet’s capabilities would include:

U.S. Military / Military Sealift Command

National Oceanic and Atmospheric Administration (NOAA)

U.S. Coast Guard

5.2 National Defense & Emergency Response

5.2.1 To help maintain the Nation’s capability to project a global national security presence and provide immediate response to national and international emergencies, the Department of Defense (DOD) and Department of Transportation (DOT) operate several programs under the command of the Chief of Naval Operations to ensure adequate military sealift and support capabilities using a combination of government and commercial vessels. From the 2011 Americas Marine Highway Report to Congress –

The Maritime industry’s contributions to national defense go beyond the vital role of deploying and sustaining our troops, [through its] contribution to the maritime sector of our national defense industrial base…

5.2.2 If deemed appropriate, the Multi-Mission Maritime Education Fleet can serve as a vital and versatile segment of this service. The vessels comprising the fleet can function in active military support roles including, supply and logistics, underway replenishment (Hughes, 2009), deep sea salvage, underwater support, critical structural support, cargo operations, ROV/survey ops, among others.

5.2.3 Even if determined to be unsuitable for specific military support purposes vessels can serve as training platforms or provide employment to trained officers and unlicensed seamen, many of whom could in turn be available to crew government-owned sealift vessels in times of war or national emergency. From the 2011 Americas Marine Highway Report to Congress –

The availability of trained and experienced mariners to crew [Ready Reserve Fleet] and other vessels in time of emergency has a high value to the nation, especially given the length of time it takes to train a new worker… A robust Marine Highway fleet would provide an important source of mariners experienced at operating ships to meet sealift mobilization requirements. These mariners would not need to be supported at government expense but rather would be engaged in commercial activities until needed in times of national emergency.

5.3 Environmental Response

5.3.1 The US government (specifically the US Coast Guard) currently maintains relationships with for-profit and not-for-profit Oil Spill Removal Organizations (OSRO) tasked with providing oil spill response and environmental damage mitigation services.

5.3.2 In addition to the multiple training and commercial functions that the Multi-Mission Maritime Education Fleet may provide, fleet vessels can serve as a reactive and agile line of response in the event of an environmental disaster. Vessels may serve as actual spill response vessels, as floating command centers, etc.



5.4 Humanitarian Missions

5.4.1 As functional marine assets, these vessels can serve a greater purpose through disaster relief and other humanitarian missions. Outlined in the Budget of the US Government – Fiscal Year 2017, the United States is dedicated to serving humanity through global humanitarian efforts:

The United States has provided over $6 billion annually in humanitarian assistance for the past several years and continues to be the largest single humanitarian donor. Current trends show a greater number of people in need throughout the world due to more protracted crises and more extreme weather events. Meeting urgent humanitarian needs saves millions of lives and is integral to advancing the Administration’s long-term goals of assisting people in crisis and reducing extreme poverty.

5.4.2 In addition to its national defense capabilities the Multi-Mission Maritime Education Fleet would function not only as a means of projecting U.S. power but also serve as a visible model of the Nation’s charitable spirit and a tangible means of projecting our humanitarian capabilities in times of crisis.

5.4.3 Whether sponsored by government or civilian entities, charitable organizations may utilize fleet vessels and management assets for the purpose of logistics support. Vessels may assist organizations requiring delivery of goods, equipment, and personnel in response to disasters or for planned humanitarian relief missions.

5.4.4 Even in their simplest industrial mission functions as straightforward supply platforms, vessels can be used to support existing charitable and philanthropic efforts located around the world.

5.5 Veteran Transition Programs

5.5.1 Veterans with transferrable backgrounds in maritime, engineering, electronics, and other relevant skills can utilize the Multi-Mission Maritime Education Fleet as a means of obtaining practical industry training. Time on board could translate into all, or some, of the required sea time needed to acquire licensed or unlicensed qualifications and/or the requisite STCW credentials toward the same.

5.5.2 Veterans with directly transferrable skills and experience may even be used in paid positions on board vessels either as crewmembers or training staff, likewise obtaining sea time applicable to obtaining or upgrading maritime credentials.



6. INDUSTRY PARTNERS

6.1 Overview

6.1.1 At its core, the Multi-Mission Maritime Education Fleet is wholly dependent on its partners within the maritime industry and the government which it supports.

6.1.2 The primary mission of the fleet of vessels will be the education, training, and development of maritime personnel for the operation and management of vessels and maritime organizations. As envisioned, the Multi-Mission Maritime Education Fleet will be an entity supported by both government and commercial funding and will serve in support functions for both while maintaining focus on its primary mission.

6.2 Commercial Entities

6.2.1 As outlined above, the proposed fleet of vessels would continue to serve a multitude of commercial purposes depending on original industrial missions. Much like their function prior to repurposing as an educational fleet, these vessels would serve the needs of various commercial entities including energy majors and other clients and chartering organizations.

6.2.2 By design, the Multi-Mission Maritime Education Fleet will be comprised of vessels capable of providing an array of services to the offshore industry through a wide range of industrial missions. While simultaneously, gaining the practical firsthand training needed in seamanship, navigation, and engineering, students and cadets can become familiar with a wide array of commercial operations including, but not limited to:

Diving & ROV Support

Drilling & Exploration

Platform Supply & Logistics

Subsea Construction, Crane & Heavy Lift Operations, Cable & Pipe Laying

Accommodation & “Walk to Work”

Marine Research

6.2.3 In addition to serving as training and educational platforms, these vessels can continue to serve a wide array of commercial purposes. Although modified and repurposed, the individual vessels comprising the larger fleet will maintain, where possible, a sufficient level of their intended design and industrial mission such as to remain commercially viable. When not dedicated solely to training and education, these vessels can serve the offshore and greater marine market providing a wider range of experience to on board cadets while offsetting operating costs through commercial revenue.

6.2.4 The Multi-Mission Maritime Education Fleet can therefore serve a variety of purposes in the industry while still fulfilling their primary function as training platforms for the State and Federal Maritime Academies and offering a wide variety of mission specific familiarization intended to provide a well-rounded perspective on the larger maritime industry.

6.2.5 Academic Institutions

6.2.6 The State and Federal Maritime Academies will be the principal beneficiaries of the fleet. The vessels will serve as the extended learning campus afloat for midshipmen, cadets, and students seeking practical and theoretical training in the operations and management of a commercial vessel.

6.2.7 Learning institutions can likewise benefit from the floating education and research facilities provided by the fleet vessels. While not occupied to capacity by cadets and teaching staff, fleet vessels can serve as research facilities for non-maritime industry scientific and academic efforts.

6.2.8 Such amenities may be extended either through agreement between academic institutions and the Maritime Academy system, the U.S. government, or whatever form the fleet management entity may take. Alternatively, individual vessels may be provided to learning institutions as an additional commercial offering.

https://en.wikipedia.org/wiki/Crane_vessel

https://en.wikipedia.org/wiki/Research_vessel



7. SUMMARY

7.1 Challenges

7.1.1 Creating and developing a Multi-Mission Maritime Education Fleet represents a completely new concept and will require challenging models that have been long accepted as standard. Likewise, adopting the idea of a diverse and advanced fleet of training vessels will create challenges that need to be addressed directly. While some of these challenges may indicate flaws in the underlying concept many others will rather reveal deeper issues within the industry itself.

7.1.2 The focus of the overarching training structure of the maritime academies plays a critical role in early discussions and planning. Since their inception, academies have been focused on developing and producing mariners for deep draft, unlimited tonnage ships normally seen in the deep water sector. Consequently, the sea time credits the cadets earn during sea terms served within the fleet are generally geared towards obtaining an unlimited 3rd officer license.

7.1.3 Despite the decline in U.S. deep water shipping, the academies have continued to develop their training and development programs around this sector of the industry. Sea time on training vessels and merchant ships of unlimited tonnage was seen as taking priority over smaller vessels serving the coastal, inland, and offshore trades. Presumably, experience on unlimited tonnage vessels could be more easily transferred to smaller vessels versus the opposite direction.

7.1.4 To fulfill the needs of the industry and the nation, cadets will need to be trained and prepared for service in both the limited and unlimited tonnage markets. While the concept outlined herein calls for the modernization of the training fleet, it also upends the traditional model by downsizing the individual assets that make up the fleet.

7.1.5 Training and experience on smaller vessels would take precedence over the now outnumbered larger vessels. Sea time on training vessels of limited tonnage will then need to be supplemented with additional time and experience on a wider variety of merchant vessels to gain the necessary sea time for unlimited licensure.

7.1.6 In consideration of the type of vessel and the technology installed on board, the Multi-Mission Maritime Education Fleet would pose a unique challenge. Technology such as dynamic positioning, modern propulsion units, and control technology require skills that are in high demand and command a high market price. A venture such as what is proposed herein would therefore be dependent on industry stakeholders dedicated to training and developing the future leaders of the industry. Energy majors, vendors and manufacturers, regulatory bodies, and vessel owner/operators would have to be willing to provide knowledge, expertise, time, and of course, funding in support of this effort.

7.1.7 Insurers, underwriters, and banking institutions providing funding and coverages for both the vessels themselves and the potential commercial operations that they may be performing will play a critical role in the use and application of fleet vessels. The utilization of cadets as functioning members of operational vessels carries with it issues surrounding liability and guarantees. Likewise, vessel owner/operators (as applicable) and clients/charterers will need to be aware of the need for greater supervision and the potential limitations of personnel in both numbers and experience.

7.1.8 Generally, the Academies, colleges, and learning institutions are not set up for the type of business model this program would entail. Fleet logistics and planning may be better suited to a dedicated (perhaps independent) organization as noted previously. Alternatively, this model might be better served as a "school" in and of itself with independent funding to work with and through the Academies. Institutions outside of the maritime-focused Academies would need to immediately recognize the financial incentives and future benefits of such an undertaking before committing to be a part of this type of project.



7.2 Unprecedented Opportunities

7.2.1 Our industry and its future leaders require access to modern training facilities that reflect the technology they will be responsible for in the industry. Existing vessels can be repurposed while still providing business to US shipyards and, at the same time, providing a higher return on investment to students and taxpayers.

7.2.2 However, efforts toward developing such a fleet would not only require additional funding but would also call for a new approach to training the industry’s future leaders. The adoption of a more modern fleet may present a challenge but may simultaneously address the greater challenge historically faced by the deep water industry over the course of its gradual decline since the mid-twentieth century.

7.2.3 The U.S. maritime industry and the vessels that comprise it have changed and evolved on a global scale but the Nation’s training institutions have maintained a singularly focused approach. If suitable vessels of varying designs were repurposed the state and federal maritime schools could share these vessels. This would allow for varied training on differing vessel types and could potentially provide additional employment to qualified vessel personnel as the fleet transitions between school locations.

7.2.4 From a practical seamanship and vessel handling perspective, OSVs provide a particularly unique opportunity. These vessels generally require much more active use of traditional skills by virtue of their typical operating areas and functions – maneuvering frequently and in repeated close proximity to other marine assets and installations both in port and at sea. Likewise, vessels utilize modern navigational equipment that is now required throughout the industry, or being considered as such.

7.2.5 Engineering training and licensing would likewise need to be considered. However, the horsepower of many modern OSVs is on par with current STCW requirements for unlimited licensure. Additionally, the systems installed on OSVs are identical to those located on larger, ocean-going vessels though perhaps scaled down. The power and propulsion plants on these vessels and supporting auxiliary systems are more readily accessible for underway repair and maintenance and, under the correct shipboard or shoreside supervision would present greater opportunity for hands on experience.

7.2.6 A very unique aspect of this program involves the shoreside fleet management responsibilities that would be taken on by students pursuing maritime business degree paths. The Multi-Focus Maritime Education Fleet can offer such students a one-of-a-kind, firsthand understanding of the detailed aspects of fleet management by being directly involved in fleet logistics, moving vessels between the schools, scheduling maintenance and general upkeep, and by marketing the vessel for other commercial purposes.

7.2.7 When fully realized, the Multi-Mission Maritime Education Fleet would offer the industry a fully functioning fleet of mobile learning platforms capable of fulfilling multiple purposes and industrial missions while making use of existing assets. If developed with a proactive outlook and visionary philosophy such a fleet can serve the greater marine industry as functional learning platforms, training facilities, and commercial assets all while likewise providing a mobile and adaptable tool for the Nation’s defense needs.

7.2.8 Understanding and accepting the modern maritime industry, including all of its various facets, will allow the training institutions and their programs to evolve at a pace consistent with industry trends. With the creation and use of a pragmatic and modern fleet of vessels cadets can develop the competence and experience that will be required of licensed mariners and leaders in the transportation and defense needs of the nation.



APPENDIX A References



American Maritime Congress; Modern Merchant Marine; as found at www.americanmaritime.org/merchant/.

Burkenroad Reports; Hornbeck Offshore Stays Afloat as the Company Rides out the Storm; as found at www.freeman.tulane.edu/burkenroad/pdf/hos.pdf.

Chambers, Sam; More than 600 OSVs Laid Up; as found at http://splash247.com/more-than-600-osvs-laid-up/.

Crowley, Joseph; Crowley, Benishek Lead Bipartisan Push to Secure Funding for State Maritime Academies, 05 August 2015; as found at crowley.house.gov/press-release/crowley-benishek-lead-bipartisan-push-secure-funding-state-maritime-academies.

Hughes, Dr. Greg; Close-In Precision DP using Wave Feed Forward; as found at http://www.marin.nl/web/Publications/Publication-items/CloseIn-Precision-DP-using-Wave-Feed-Forward-STLVAST-Phase-2-3.htm.

IHS Energy; IHS Petrodata – Offshore Marine Monthly – January 2015, Vol. 31, No. 1; as found at www.ihs.com.

Navy League of the United Sates; Funding for National Security Multi-Mission Vessels; as found at cqrcengage.com/navyleague/.

O’Connell, Jack; Slowdown in the Gulf; Maritime Executive Magazine, November – December 2014; as found at www.maritime-executive.com/magazine/slowdown-in-the-gulf.

OCS Study; Analysis of the Oil Services Contract Industry in the Gulf of Mexico Region – BOEMRE 2011-001; as found at www.data.boem.gov/PI/PDFImages/ESPIS/4/5096.pdf.

Office of Management and Budget; Budget of the US Government – Fiscal Year 2017; as found at www.whitehouse.gov/sites/default/files/omb/budget/fy2017/assets/budget.pdf.

Offshore; Vessels, Rigs, & Surface Systems – released 13 January 2016; as found at www.offshore-mag.com/articles/print/volume-76/issue-1/departments/vessels-rigs-surface-systems/vessels-rigs-surface-systems.html.

Rigzone; Competitive Rig Fleet Utilization (through 14 January 2016); as found at www.rigzone.com/oil/data/rigutilization/.

Quest Offshore; United States Gulf of Mexico Oil and Natural Gas Industry Economic Impact Analysis (through 2013) – released July 2011; as found at http://www.eenews.net/assets/2011/07/11/document_pm_02.pdf.

Seatrade Maritime News; Offshore players call for increased scrapping to clear severe oversupply – February 2016; as found at http://www.seatrade-maritime.com/news/americas.

U.S. Energy Information Administration; Short-Term Energy Outlook – 08 March 2016; as found at www.eia.gov/forecasts/steo/report/prices.cfm.

U.S. Department of Transportation, Maritime Administration; Americas Marine Highway Report to Congress – April 2011; as found at www.marad.dot.gov/wp-content/uploads/pdf/MARAD_AMH_Report_to_Congress.pdf.

U.S. Department of Transportation, Maritime Administration; US Flag Vessels (as of 08 February 2016); as found at www.marad.dot.gov/wp-content/uploads/pdf/MAR620.US_.Flag_.Vessels.pdf.

http://www.americanmaritime.org/merchant/

http://www.freeman.tulane.edu/burkenroad/pdf/hos.pdf

http://splash247.com/more-than-600-osvs-laid-up/

http://crowley.house.gov/press-release/crowley-benishek-lead-bipartisan-push-secure-funding-state-maritime-academies

http://crowley.house.gov/press-release/crowley-benishek-lead-bipartisan-push-secure-funding-state-maritime-academies

http://www.marin.nl/web/Publications/Publication-items/CloseIn-Precision-DP-using-Wave-Feed-Forward-STLVAST-Phase-2-3.htm

http://www.marin.nl/web/Publications/Publication-items/CloseIn-Precision-DP-using-Wave-Feed-Forward-STLVAST-Phase-2-3.htm

http://www.ihs.com/

http://cqrcengage.com/navyleague/

http://www.maritime-executive.com/magazine/slowdown-in-the-gulf

http://www.data.boem.gov/PI/PDFImages/ESPIS/4/5096.pdf

http://www.whitehouse.gov/sites/default/files/omb/budget/fy2017/assets/budget.pdf

http://www.offshore-mag.com/articles/print/volume-76/issue-1/departments/vessels-rigs-surface-systems/vessels-rigs-surface-systems.html



http://www.rigzone.com/oil/data/rigutilization/

http://www.eenews.net/assets/2011/07/11/document_pm_02.pdf

http://www.seatrade-maritime.com/news/americas

http://www.eia.gov/forecasts/steo/report/prices.cfm

http://www.marad.dot.gov/wp-content/uploads/pdf/MARAD_AMH_Report_to_Congress.pdf

http://www.marad.dot.gov/wp-content/uploads/pdf/MAR620.US_.Flag_.Vessels.pdf



APPENDIX B Letter (Page 1) from Representatives Benishek & Crowley





APPENDIX C Letter to Secretary Foxx, Director Donovan, Chairman Diaz-Balart, & Ranking Member Price





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RESEARCH PROPOSAL - Multi-Mission Maritime Education Fleet - Rev. D

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