November 2009 - Marcon International, Inc.
Transcription
November 2009 - Marcon International, Inc.
Marcon International, Inc. P.O. Box 1170, 9 NW Front Street, Suite 201 Coupeville, WA 98239 U.S.A. Telephone (360) 678 8880 Fax (360) 678-8890 E Mail: info@marcon.com http://www.marcon.com Vessels and Barges for Sale or Charter Worldwide November 2009 Tug Market Report We have changed the date of October Tug Market Report to November to be more in-line with publication of various corporate quarterly reports used. Following is a breakdown of available anchor handling coastal, ocean and harbor tugs. Separate reports available on inland river pushboats and anchor handling tug supply vessels. Horsepower Mar 1996 Jan 1997 Jan 1998 Jan 1999 Jan 2000 Jan 2001 Jan 2002 Jan 2003 Jan 2004 Jan 2005 Jan 2006 Jan 2007 Jan 2008 Apr 2008 Jul 2008 Oct 2008 Jan 2009 Apr 2009 Aug 2009 Nov 2009 - Worldwide Nov 2009 - U.S. Nov 2009 - Foreign Avg. Age - Worldwide Avg. Age - U.S. Avg. Age - Foreign Charter - Worldwide Charter - U.S. Charter - Foreign Under 1,000 – 2,000 – 3,000 – 4,000 – 5,000 – 6,000 - 7,000 – 8,000 – 9,000 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Plus 4 5 5 5 7 8 6 6 12 9 8 7 1 2 2 2 2 6 3 3 0 3 1977 1977 10 1 9 4 2 2 1 2 2 4 5 3 2 1 0 1 2 3 2 3 3 4 4 2 2 1966 1958 1973 15 0 15 199 178 139 174 161 138 117 152 117 117 97 77 73 70 71 63 73 79 77 68 20 48 1970 1962 1973 23 6 17 163 59 65 159 83 65 142 72 46 143 83 81 145 72 62 133 81 72 134 85 67 176 96 71 140 77 67 141 71 69 125 90 66 114 97 68 118 105 58 110 92 55 88 89 59 84 87 59 94 95 76 108 102 81 122 109 102 128 110 116 32 29 26 96 81 90 1977 1981 1987 1961 1967 1967 1982 1986 1993 40 56 52 6 12 9 34 44 43 Up Since Last Report 18 19 14 35 27 34 38 40 29 28 21 25 19 21 24 27 29 34 43 44 10 34 1992 1973 1998 28 5 23 7 8 7 6 9 5 9 6 6 10 2 5 15 3 4 20 5 7 22 2 5 21 2 4 21 1 5 21 1 11 16 5 6 10 5 4 13 2 7 11 2 7 12 4 5 14 3 5 19 6 5 23 7 6 27 7 5 31 7 9 7 1 1 24 6 8 1992 1989 1980 1975 1977 1975 1997 1992 1980 27 7 23 2 2 13 25 5 10 Down Since Last Report Total 550 532 432 536 498 500 480 573 472 470 435 407 397 372 357 346 402 446 499 520 128 392 281 56 225 Market Overview Of the 9,475 vessels and 3,240 barges that Marcon currently tracks, 3,729 are tugs with 520 currently officially on the market for sale worldwide, up 4.2% since August. Of the tugs for sale, 37.0% of foreign and 96.1% of U.S. tugboats are direct from Owners. 123 or 23.7% of the tugs worldwide, primarily foreign flagged, were built within the last ten years, are newbuilding re-sales or currently under construction – compared to 20.8% at the last report. 59 (11.4%) are over fifty years of age and 3 tugs are 75 years of age or older. 28 have no age listed. The oldest tug Marcon currently has listed is a 85’, 750HP single screw tug located on the Canadian West Coast, which was built in 1912. This is balanced by 46 newbuildings up to 8,000HP range scheduled for delivery from 2009 through 2010. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 1 Marcon International, Inc. Tug Boat Market Report – November 2009 TUG ENGINE TYPES Fairbanks Morse Stork Werkspoor 3% Mitsubishi 2% 3% MWM 2% Other 22% Ruston 3% Deutz 4% GM 5% Yanmar 7% CAT 20% Niigata 9% Cummins 10% EMD 10% The majority of the tugs Marcon has listed for sale are in the U.S. with 123 tugs, closely followed by Europe with 105 tugs, 91 in Southeast Asia, 69 in the Far East, 35 “by arrangement”, 31 in the Mediterranean, 26 in the Mid East, 13 in the Caribbean, 11 in Canada, 10 in Africa, 5 in Latin America and 1 in the South Pacific. CAT diesels still power most the tugs with machinery in 97 or 20% of the tugs Marcon lists for sale, where the engine type is known. This is followed by 52 EMD powered, 51 Cummins and 24 General Motors / Detroit Diesel powered tugs. 10 tugs, generally older U.S. units, are powered by Fairbanks Morse. Niigata leads foreign manufacturers powering 45 tugs, followed by 34 Yanmar, 22 Deutz, 17 Ruston, 15 each Stork Werkspoor and Mitsubishi and 12 MWM powered tugs. 103 tugs are powered by machinery from various other manufacturers worldwide ranging from Akasaka to Waukesha. Conventional single and twin screw tugs are still the most prevalent with 274 twin and 140 single screw for sale worldwide. One tug is triple screw, 89 azimuthing and 16 are Voith Schneider tractors. Mar-09 Mar-08 Mar-07 Mar-06 Mar-05 Mar-04 Mar-03 Mar-02 Mar-01 Mar-00 Mar-99 Mar-98 Mar-97 Mar-96 Mar-95 The number of tugs which officially listed for sale has once again Tugs Listed For Sale by Marcon International, Inc. increased with 74 more tugs listed for sale worldwide since April of 600 this year. Both foreign and U.S. flag tugs have increased equally. 500 The biggest increase continues to be for those tugs for sale in the 400 3,000 – 3,999BHP range, which have seen an increase of 43.2% in the last seven months from 81 to 116 vessels. In addition there are, 300 no doubt, other tugs for sale that we do have information on plus 200 others are not officially on the market, but could be developed on a 100 private & confidential basis. Although the 520 tugs presently listed for sale have almost hit a seven year “peak” and will most likely 0 continue to grow through mid-2010, numbers are still below the volume of tugs for sale seen in the late 1990s and early 2000s. In Foreign US Total October 2002, Marcon had 553 tugs listed for sale worldwide, increasing to 573 in January 2003. This corresponded to the early 2000s recession following the dot.com bubble, th September 11 attacks on the Pentagon and World Trade Center, and accounting scandals. Will we “peak” out at that same level??? I do not know. 2002, like 2009, was a rough year with most operators reporting lower earnings and any positive news in financial reports due more to cost cutting efforts than increasing revenues. We still have a long way to go to achieve a recovery. “Asking” prices in January 2003 ranged from $271/BHP for tugs under 3,000BHP, $385/BHP for the 3-4,000BHP range and $502 for 4-5,000BHP tugs. It is difficult to provide an accurate comparison for “asking prices” today, as most Owners are not quoting firm prices. In 2002, Marcon Marcon Average Age & Price Per BHP sold five tugs averaging 36 years of age for $202/BHP. 40 $800 So far this year Marcon has sold 13 tugs. Excluding 35 $700 two laid-up tugs with ancient and inoperative machinery 30 $600 which sold for $1.00 and under per BHP, tugs sold by 25 $500 Marcon to-date this year have averaged 38 years of 20 $400 age and sold for $426/BHP. There are still situations 15 $300 though where the “right” piece of equipment in the 10 $200 “right” place and at the “right” time sells for a premium, 5 $100 but Buyers in that position are few and far between. 0 $0 Most operators still take a “wait and see” attitude on 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Average Age Actual Sales Price / BHP purchases, even when a tug or barge might be considered a bargain, unless they have a solid commitment and the vessel or barge can start immediately earning revenues. Vessel values across the board are expected to remain depressed through the remainder of 2009 and well into 2010, but there are few bargains out there for top quality equipment. A large gap remains between what a “willing seller” may let his tug go for and what a “willing buyer” is able to pay or can obtain financing for. 2 www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. Marcon International, Inc. Tug Boat Market Report – November 2009 Recent Marcon Tug & Barge Sales & Charters The laid-up 150’ x 33’, 4,500HP “David E” (AKA “Kristen Lee Hannah”, ex-Henry Foss, LT-815) was sold by creditors to Calumet River Fleeting of Chicago, Illinois. The tug was initially built in 1943 by Marietta Shipyard of West Virginia as the U.S. Army Transport Service steam tug “LT-815”, one of the largest class of army tugs designed for heavy ocean towing and trans-Atlantic convoy duty during World War II. She was purchased by Foss Maritime at a government sale in 1962 along with a sister-tug (photo at right) and began a two and a half year rebuilding at the Foss’ shipyard in Seattle. The Skinner steam uni-flow steam plant of abt. 1,200HP was replaced by a pair of 2,500HP slow-turning Nordberg FS138HS diesels driving a 132” diameter KaMeWa 4-blade controllable pitch prop and modern auxiliary equipment and navigational aids were installed to prepare the tug for longdistance ocean towing as the “Henry Foss”. When completed, the “Henry” and “Arthur” were reportedly the most powerful tugs in the U.S. For the next 15 years she made many tows for Foss in the Pacific from a navy battleship drydock (through Typhoon Jean) to oil rigs and drilling ships, lumber barges to and from the Hawaiian Islands and various Alaskan runs as far north as Prudhoe Bay where she once ended up icebound for two months awaiting an opening. After one last tow of a decommissioned heavy cruiser through a winter storm along the west coast, she was laid up the day after Christmas in 1979. The “Henry Foss”, along with her sister “Arthur Foss”, were purchased by Hannah Marine Corp. / Schmidt Oil in 1984 and sailed to the Great Lakes with the “Henry” being renamed “Kristin Lee”. The “Arthur Foss” was renamed “Mark” by Hannah Marine after her purchase and then sold in 1987 to Ocean Towing of the Cayman Islands, who renamed her “Atlantic Ranger” After a trip around the Cape of Good Hope the tug ended up in the mid-East. Marcon sold her from Mubarak Shipping of Dubai to Nordic Technical Development in 1999 who renamed her “Master Cody”. She was eventually scrapped in Southeast Asia a couple of years ago as the Tuvalu flagged “Glenn Pearl Harbor”. The 3,000BHP twin screw tug “Kay Lynne Hannah” (AKA “Rio Bravo”, ex-Gus Candies) was bought by Mobro Marine, as the highest bidder at the U.S. Marshal’s in Mobile, Alabama on 21st October. The 105’ x 29.5’ raised foc’stle bow ocean tug had been built by Houma Welders of Houma, Louisiana for Otto Candies, Inc. of Des Allemands, LA in 1973 and later owned and operated by Tidewater Marine of New Orleans. The tug was powered by a pair of EMD 12-645E2 diesels, 5:1 gears and 117” x 87” props on 11” shafts. Although previously classed ABS +A1 Ocean Towing, she had been laid up for years with all certificates expired at the time of the auction. The 3,200BHP, Bludworth linkage system fitted AT/B tug “Mark Hannah” (exChallenger, Gulf Challenger, Lead Horse), built in 1969 by Burton Shipyard of Port Arthur, Texas was sold by the U.S. Marshal at the Port of Oswego, New York on Wednesday 14th October to Occidental Petroleum, who previously had the unit on charter trading in calcium chloride. The 128’ x 32’ raised foc’stle bow tug is powered by a pair of EMD 16-645C diesels, Western 4.68:1 gears and twin 4-blade 115” x 91” props. The U.S. flag, 8,000dwt double hull, ice strengthened, ocean tank barge “Hannah 6301”,which was mated to the “Mark Hannah”, was purchased back at the auction by the creditors and remains for sale. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 3 Marcon International, Inc. Tug Boat Market Report – November 2009 Seven tugs from the former Hannah Marine fleet auctioned off by the U.S. Marshal th in Chicago on 18 August along with an inland river pushboat and seven double hull tank barges. The “Susan W. Hannah” (ex-Kings Challenger, IMT No.1, Lady Elda), a 121.5’ x 34.5’, 4,300BHP articulated pusher tug with a Bludworth coupling system was bought at auction by Port City Tug / Sand Products of Grosse Pointe Farms, Michigan. The twin screw “Susan W. Hannah” was built by Toche Boat Builders of Ocean Springs, Mississippi and in 1994 repowered from Brons diesels with a pair of turbo-charged EMD 12-645E5s. Tug worked for St. Marys Cement on the Lakes prior to being laid up and sold. Warner Petroleum Corp. / Fuel Boat Holdings of Clare, Michigan bid on and was awarded the 980BHP, 86’ twin screw tug “Hannah D. Hannah” (ex-Betty Gale) which had been built in 1955 by Sturgeon Bay Shipbuilding. Tug was powered by twin Cummins KT-2300s and fitted with a retractable pilothouse with a 10’ lift. Warner owns and operates four terminal facilities for liquid commodities located in the Detroit area, Upstate Michigan and Southern Lake Michigan. Warner transports fuels and liquid asphalt commodities throughout the Great Lakes, St. Lawrence Seaway and Inland River system. The 2,000HP, 100’ x 24’ single screw tug “Peggy D. Hannah” (ex-William A. Whitney) which was built in 1920 by Whitney Bros. Co. of Wisconsin was bought by Calumet River Fleeting of Chicago, Illinois. “Peggy” is powered by a single 2,000HP Fairbanks Morse 38D8-1/8 diesel and fitted with two manual barge winches and a single drum tow winch. Kindra Lake Towing of Chicago, Illinois purchased the 95’ x 29’ “Donald C. Hannah”, a 1962 built twin screw tug with a pair of EMD 12-567Cs totaling 2,400HP. She was originally built by Main Iron Works of Houma, Louisiana and rebuilt in 1975. Tug is fitted with a retractable pilothouse with a 17’ lift, a single push knee, barges winches and a tow winch. She is a good fit with Kindra’s fleet of three lake tugs and two river boats which have provided service on the Calumet River and Lake Michigan since 1992. Tug was renamed “Donald C”. The U.S. Marshal sold the 3,900BHP twin screw tug “Wilbur R Clark” (exPacific Victory, Petro Challenger, Marine Challenger, Polar Explorer, LTth 789) on 19 August 2009 on the U.S. Courthouse steps in Mobile, Alabama. The auction was well attended and tug sold for $1,500,000 to private interests. The 151.5’ x 33.0’ x 18.8’ depth tug was built by Marietta Mfg. in 1944 as the single screw, steam-powered U.S. Army tug “LT-789”. In 1975-76, she was repowered and completely rebuilt into a new vessel by Marine Power & Equipment of Seattle, Washington at their yard. The rebuild turned her into a modern twin screw tug, powered by a pair of EMD 16-645E2s, Lufkin 4.39:1 gears, 115” Coolidge stainless steel props and triple rudders. This gave “Marine Challenger” a light running speed of abt. 16kn, a 24,000 mile cruising range at 14kn and bollard pull of 41 tons. Towing gear consists of a single drum Almon Johnson winch with 2,000’ of 2” wire, hydraulic tow pins and two Patterson 65 ton electric face winches. After operating several years between the Puget Sound and Alaska for Forty-Niner Transportation as the “Petro Challenger” and Victory Marine / Jore Corp. as “Pacific Victory”, the tug sailed to the U.S. Gulf Coast to tow Jore’s 400’ x 105’ double deck, ocean ro/ro barge “American Trader”, previously purchased through Marcon. Hannah Marine purchased the “Pacific Victory” in the Spring of 2007, renaming her “Wilbur R Clark” with the intent of towing the 8,000dwt self-discharge cement barge “Hannah 7701”. Marcon acted as sole broker in the purchase. After delivery, the sixty-five year old tug spent the next eight months undergoing a total refit at a cost of approx. $2 million dollars. New buyers intend to use the tug towing large oil barges from the U.S. to West Africa. Marcon handled the marketing of the Marshal’s Sale for the Creditors. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 4 Marcon International, Inc. Tug Boat Market Report – November 2009 Crowley Maritime’s 7,200HP “Crusader” completed the 28 day tow of a 400’ x 100’ deck barge for private West Coast Canadian Buyers. The 136’ x 36.5’ tug is a McDermott built boat of Crowley’s “Invader” class, powered by a pair of EMD 20-645E5s developing a bollard pull of abt. 150,000lbs. Barge was built in 1982, by FMC in Portland, Oregon as a 149,000bbl, single-hull, petroleum barge. After the sale, the 16,200 dwt barge was first towed to Colombia where new Owners contracted with a local shipyard to quickly convert her into an ocean deck barge. She has a raked spoon bow with 10’ high breakWater forward, a clear flat deck and squared raked stern with twin towing skegs. The new Owner is completing final outfitting at in Vancouver, BC. Reportedly the tow from Colombia to Canada was one of those described as “boring is good”. The Panama Canal transit was uneventful and weather fantastic for most of the voyage, with the tow averaging over 9kn. Tug and tow got into the Northwesterlies off of the Baja Peninsula and pretty much had it on the bow for the rest of the voyage. This slowed the tug to 7kn to avoid pounding the empty barge. OSG Ship Management sold the very large, double hulled tank barge, “OSG 300” (ex-M-300, Maritrans 300, Coastal 101, Belcher 101), to Nigerian buyers for clean fuel storage and coastwise service. The barge was built under Title 11 subsidy for $15.5 million in 1979 by Galveston Shipbuilding for the then Miami Belcher Oil Company, who later was bought out by Coastal Corp. Coastal sold her to Maritrans in 2006, which later that year merged with OSG. In dirty oil service throughout her working history, the 245,000bbl barge was last engaged for many years lightering supertankers in Lower Delaware Bay. She was retired and towed to Tampa for cleaning and preparation for sale in October 2008. Main particulars are: 588’ x 93’ x 41’ molded depth and deadweight of 36,860 long tons. The deepnotched barge has generally worked in ATB configuration, although she has also been towed conventionally by winch and wire. Barge is classed ABS +A1 Tank Barge, Unrestricted Service. The barge’s new name is “HeydenBamidele”. This is the second U.S. oil barge Marcon sold to the same buyer. Marcon also arranged for her 5,500 – 6,000nm tow to from Tampa, Florida to Lagos with Smith Maritime of Green Cove Springs, Florida. Smith employed their triple screw, 5,100HP tug “Elsbeth II” to tow the barge. The shallow-draft tug was built by Smith Maritime in 1987 and is 110’ x 42’ x 16 depth and powered by three Wartsila 8R22 main engines rated at 1,700HP each, driving 96” x 95” fixed pitch props in kort nozzles. th “Elsbeth II” bunkered at Freeport, Grand Bahamas on 11 August, and after initially following the Gulf Stream north, sailing a modified Great Circle route across the mid-Atlantic, dodging Hurricane Bill and scheduled to arrive Lagos around the third or fourth week of September. The traditional single screw tug "Tito Neri Settimo" was sold by European owners to private buyers. The Italian flag vessel was built in 1985 by Cooperativa Ing. Tommasi Cantiere Navale S.r.l. and classed RINA 100 A 1.1, Motorship, Re, Tug, National Coastal. She measures 102.6' x 27' x 13.9' with a maximum draft of 11.9'. Tug is powered by a single Nohab (Wartsila) F38A diesel producing 2,068BHP at 825RPM, turning a single fixed pitch propeller in a kort nozzle. The tug is equipped with a 30 ton Seebeck hydraulic tow hook. She has berthing for up to ten crew in two single and two 4-man cabins. Marcon represented Sellers while Buyers were represented by Michael Vincent of the U.K. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 5 Marcon International, Inc. Tug Boat Market Report – November 2009 Once Again – A Record Number of Tugs Worldwide The number of tugs in the world once again hit a record number as of this report. While information in Lloyd’s Register only covers “sea-going” vessels over 100 gross register tons, there are many tugs th either under that tonnage or in inland service. According to Lloyd’s, as of November 10 , 2009, there were 13,949 “sea-going” tugs over 100GRT worldwide, up from 12,747 in October 2008. Total horsepower of this fleet is 36,467,619BHP. Even taking into account flags of convenience, the largest national fleet of tugs worldwide over 100GRT sails under Indonesian registry, with the United States in first place as far as horsepower. The U.S. operates 1,505 sea-going tugs over 100GRT, or 10.8% of the world market, totaling 4,747,005 horsepower (13.02% of global horsepower). The average age of tugs worldwide is 21 years with the U.S. flag “sea-going” fleet at 33 years. The registry with the youngest tug fleet is the British Virgin Islands with five 2009 built tugs from 5,000 - 8,000BHP. Top 50 “Sea-Going” Tug Fleets By Units As Of November 2009 According to Lloyd’s Register Flag Worldwide Indonesia USA Singapore Japan Unknown Korea, South Malaysia Panama Russia Italy India China, People's Republic Of United Kingdom Spain Brazil Canada Australia Turkey Netherlands United Arab Emirates St Vincent & The Grenadines Mexico Iran Egypt Saudi Arabia France Philippines Greece Ukraine Venezuela Germany Chinese Taipei Thailand Tuvalu Norway Cyprus Bahrain Honduras Chile Sweden Vietnam Belgium Finland Poland Portugal Bahamas Argentina Algeria Nigeria Peru TotalBHP 36,467,619 3,032,699 4,747,005 2,319,610 2,440,849 804,201 1,106,117 839,938 1,246,413 887,245 1,014,914 820,350 790,634 820,395 789,752 651,029 553,075 632,827 502,793 546,554 451,252 546,069 500,491 314,298 388,404 399,316 401,197 248,143 207,907 232,307 319,630 384,639 237,402 221,522 170,265 224,711 235,241 215,912 140,257 217,304 223,891 119,998 247,677 170,614 98,026 119,132 254,862 138,691 127,429 94,875 128,989 % 100.00% 8.32% 13.02% 6.36% 6.69% 2.21% 3.03% 2.30% 3.42% 2.43% 2.78% 2.25% 2.17% 2.25% 2.17% 1.79% 1.52% 1.74% 1.38% 1.50% 1.24% 1.50% 1.37% 0.86% 1.07% 1.09% 1.10% 0.68% 0.57% 0.64% 0.88% 1.05% 0.65% 0.61% 0.47% 0.62% 0.65% 0.59% 0.38% 0.60% 0.61% 0.33% 0.68% 0.47% 0.27% 0.33% 0.70% 0.38% 0.35% 0.26% 0.35% # Tugs 13,949 1,857 1,505 898 809 484 425 417 395 345 334 328 273 262 228 203 202 195 190 163 163 157 153 146 139 132 130 125 121 121 117 109 99 96 76 75 74 73 71 69 66 65 62 61 61 60 58 54 52 51 51 % 100.00% 13.31% 10.79% 6.44% 5.80% 3.47% 3.05% 2.99% 2.83% 2.47% 2.39% 2.35% 1.96% 1.88% 1.63% 1.46% 1.45% 1.40% 1.36% 1.17% 1.17% 1.13% 1.10% 1.05% 1.00% 0.95% 0.93% 0.90% 0.87% 0.87% 0.84% 0.78% 0.71% 0.69% 0.54% 0.54% 0.53% 0.52% 0.51% 0.49% 0.47% 0.47% 0.44% 0.44% 0.44% 0.43% 0.42% 0.39% 0.37% 0.37% 0.37% AvgBHP 2,614 1,633 3,154 2,583 3,017 1,662 2,603 2,014 3,155 2,572 3,039 2,501 2,896 3,131 3,464 3,207 2,738 3,245 2,646 3,353 2,768 3,478 3,271 2,153 2,794 3,025 3,086 1,985 1,718 1,920 2,732 3,529 2,398 2,308 2,240 2,996 3,179 2,958 1,975 3,149 3,392 1,846 3,995 2,797 1,607 1,986 4,394 2,568 2,451 1,860 2,529 www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. Avg Age 1988 1996 1977 2004 1993 1979 1986 1999 1985 1985 1984 1991 1986 1990 1990 1991 1973 1990 1991 1995 1993 1994 1985 1985 1983 1987 1985 1974 1972 1981 1979 1988 1986 1979 1996 1978 2000 1988 1969 1993 1966 1990 1993 1968 1975 1976 1998 1978 1985 1983 1990 6 Marcon International, Inc. Tug Boat Market Report – November 2009 Breakdown of U.S. “Sea-Going” Fleet Following is a breakdown of the U.S. sea-going tug fleet as of November 2009, according to Lloyd’s Register, by horsepower compared with last quarter. Note that Lloyd’s Registry has data on only 66 tugs under 999BHP. As most of the “under thousand horsepower” class tugs in the U.S. are below 100 gross register tons, they are generally not included in the Registry. In reality though, there are eight to nine hundred additional small tugboats in this horsepower range in U.S. coastal waters. Since the total number of U.S. flag tugs is down by 23 since the last report, it is interesting to take a look at the individual horsepower ranges and note where the changes occurred. The major changes are due to older units being dropped from the registry. Previously the oldest unit on the register was built in 1895, now the oldest unit is one built in 1902. U.S. Sea-Going Tug Fleet Over 100GRT ByBHP According to Lloyd’s Register as of Nov 2009 UnknownBHP Total # Under 999 10001999 20002999 30003999 40004999 50005999 60006999 70007999 80008999 9000 Plus 162 61 315 227 271 209 87 59 57 10 47 AvgBHP - 778 1,503 2,368 3,412 4,346 5,440 6,426 7,169 8,066 12,342 Avg LOA 88 80 89 97 107 108 118 114 139 137 139 Avg Beam 28 23 26 29 32 34 35 38 39 42 53 Avg Depth Avg Year Built 11 9 11 13 15 15 17 18 20 21 27 1976 1952 1964 1973 1978 1989 1986 1998 1981 1996 1998 Total 1,505 Previous U.S. Sea-Going Tug Fleet Over 100GRT ByBHP According to Lloyd’s Register as of Aug 2009 Unknown BHP Under 999 1000 1999 20002999 30003999 40004999 50005999 60006999 70007999 80008999 9000 Plus Total # 154 66 331 231 272 205 88 60 58 11 52 Avg LOA 88.7 80.4 89.0 96.7 106.6 107.9 119.4 113.8 138.8 136.1 139.9 Avg Beam 27.9 22.9 25.9 28.9 31.7 34.3 35.4 37.5 39.2 41.7 52.8 Avg Depth 11.3 8.9 11.0 13.2 14.9 15.1 17.6 17.7 19.8 21.0 26.1 Avg Year Built 1976 1951 1963 1973 1978 1988 1985 1998 1981 1996 1998 Total 1,528 All dimensions in feet and tenths Of the 1,505 U.S. flag tugs showing up in Lloyd’s Register as of November 2009, 401 or 32% are powered by EMDs, 337 (27%) by CATs, and 230 (19%) by General Motors / Detroit Diesels. Fairbanks still power 51 tugs or 4% of the fleet, mostly in older tugs. It should be noted that we have seen many EMDs showing up in Lloyd’s Register under the GM designation which may throw the statistics slightly. US Flag Tugs - Engine Types Wartsila 2% Alco 4% Cummins 3% Enterprise 2% Fairbanks Morse 4% EMD 32% Other 7% GM/DD 19% Caterpillar 27% Credit: LR-Fairplay SeaWeb 11/10/09 www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 7 Marcon International, Inc. Tug Boat Market Report – November 2009 New Construction, Shipyard and Conversion News According to “Fairplay”, as of 9 November 2009, there were 10,857 ships over 299GRT on the World Orderbook, down from 11,366 in August 2009. Of this number, there were 762 tugs or “towing / pushing” vessels (up from 752 in August 2009) plus 750 Offshore Supply Vessels and 166 designated as “Offshore – Other”. As data only covers vessels over 299GRT, I would not be surprised to find another 25% tugs below 299GRT that recorded that are still being built across the world from Argentina to Vietnam – and maybe even Zaire. Worldwide Tugs On Order Over 299 GRT 175 150 125 100 75 50 Greece Saudi Arabia Germany South Africa Argentina Netherlands Libya Ukraine Iran Peru Chile Serbia South Korea Canada Philippines UAE Cuba Italy India Egypt Russia Japan Vietnam Singapore Poland Romania US Brazil Spain Turkey Indonesia Malaysia 0 China (PRC) 25 Credit: Fairplay New buildings Online 11/09 th As of 9 November, of the 762 tugs under construction, China (PRC) led the order book with 174 (up 15) tugs being built. They are followed by Malaysia at 148 (down 10) tugs under construction; Turkey 49; Indonesia and Spain 48 each; USA 35; Brazil 29; Poland 25; Romania and Singapore 24 each; Japan 23; Vietnam 22; 13 in Egypt; 11 in Russia; Italy 10; India and the UAE 9 each; 8 each in Cuba; 7 each in Canada and the Philippines; Serbia and South Korea 6 each; 4 each in Chile, Iran and Peru; 3 each in Libya and Ukraine; Argentina, the Netherlands and South Africa 2 each; and Germany, Greece and Saudi Arabia with 1 each. Although new orders will continue to be placed and some delivery times will slip, we expect the total volume of tugs on the world orderbook to fall by the end of this year as existing contracts are completed and vessels delivered. Delivery Dates Worldwide Orderbook For Tugs Over 299 GRT 300 275 250 225 200 175 150 125 100 75 50 25 4Q 2012 3Q 2012 2Q 2012 1Q 2012 4Q 2011 3Q 2011 2Q 2011 1Q 2011 4Q 2010 3Q 2010 2Q 2010 1Q 2010 4Q 2009 3Q 2009 2Q 2009 0 Credit: Fairplay New building Online 11/09 www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 8 Marcon International, Inc. Tug Boat Market Report – November 2009 Although Caterpillar’s engine sales were down 35% during the third quarter of 2009 compared to a year ago, CAT power by far still leads propulsion in new sea-going tugs with engines in 227 tugs. This is followed by Cummins diesels in 110, Niigata 100, Mitsubishi 46, Wartsila 33, General Electric 31, Yanmar 26, MAN / MAN-B&W 19, ABC 17, MTU 8, MaK 5, Chinese Standard Type, Deutz and EMD 4 each, Daihatsu and General Motors/Detroit Diesel 3 each, and 2 in Guangzhou. Engines were not listed for 120 tugs. Only 42 tugs below 1,000BHP are shown as under construction. This is because most tugs of this horsepower range are under 299GRT. Summary of Engines Worldwide Tug Orderbook Over 299 GRT 250 225 200 175 150 125 100 75 50 25 Guangzhou GM/DD Daihatsu EMD Deutz Chinese Std Type Credit: Fairplay Newbuilding Online 11/09 MaK M.T.U. A.B.C. MAN-B&W Yanmar GE Wartsila Niigata Mitsubishi Cummins Unknown Caterpillar 0 Summary of Horsepower – Fairplay Worldwide Tug Orderbook Over 299GRT Tugs Under 1,000 – 2,000- 3,000- 4,000- 5,000- 6,000- 7,000- 8,000- 9,000- Over 1,000HP 1,999HP 2,999HP 3,999HP 4,999HP 5,999HP 6,999HP 7,999HP 8,999HP 9,999HP 10,000HP 42 92 143 219 77 72 12 3 10 0 3 Unk. Total 89 762 In October, Boluda Corporación Marítima of Valencia, Spain celebrated the launch of two identical tugboats, the “VB Titán” and “VB Tron”, both due to become part of the Boluda Towage and Salvage division. The official launch has taken place at the Boluda Shipyards’ shipyard premises where they have been working on the construction of these tugboats for around twelve months. Both tugs have been designed to take to sea at all times and, in addition to the usual towing, tugboat assistance and escort services for ships, these tugs will also provide fire fighting services for ships in danger, collect waste and carry out anti-pollution measures in the event of there being any fuel or oil leakages in the waters as well as transporting cargo on deck. Being twin tugs, “VB Titán” and “VB Tron” share the same technical features, as well as the same 32m length, 14m beam, 5.60m depth and 4.40m draught. Equipped with Voith Schneider propulsion systems powered by diesel engines gives the tugs a continuous power rating of 2,650 kW, a speed of 11.8 knots and a 70T pulling power. Boluda Shipyards will officially handover the twin tugs to the Boluda Towage and Salvage division in January 2010, when they will become part of the company’s extensive fleet. Boluda Towage and Salvage currently has a fleet of more than 200 tugs distributed over the majority of ports in Spain, France, Africa and America. The Boluda Corporación Marítima plans to continually invest in expanding the company’s fleet of tugs over the next few years. New construction rolls on at North American Fabricators of Houma, Louisiana. Under construction at this time is “Hull 264”, a 168’ x 52’ x 24’ Voith tractor tug, in addition to a 300’ x 60’ well stimulation vessel and “Hull 245”, the 280’ x 66’ x 23’ anchor handling tug supply vessel “Holiday”. The NAS drydock remained quite busy in the second quarter, successfully making nine lifts. The Fourchon drydock also had a very busy quarter with a total of 19 lifts. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 9 Marcon International, Inc. Tug Boat Market Report – November 2009 In August, the Hamburger based Fairplay Towage took delivery of the third newbuilding out of a series of 4 units from Spanish shipyard Astilleros Armon. “Fairplay X“ is the 6th tug of this name in Fairplay’s 104 years of history. The first “Fairplay X“ was built for Carl Tiedemann, Hamburg in 1910 and was scrapped in 1950. The second tug with this name was originally built for Wijsmuller, Ijmuiden in 1918 and was – after many years of service for Fairplay – scrapped 1965. The third “Fairplay X“ was launched on the Fairplay owned shipyard Theodor Buschmann in 1966, only to be sold to France one year later. Already 1967, Fairplay had another seagoing tug “Fairplay X” which was sold to England 20 years later and finally the fleet contained a “Fairplay X” as from 1999 which was bought second-hand from England and sold again in 2007 to England. This latest fleetaddition has, however, little in common with her predecessors. It belongs to the strongest tugs in Fairplay’s fleet and is built according to the latest standards by the Spanish yard Astilleros Armon in Navia, Spain. With an length overall of 25m and a width of 11.2m “Fairplay X” – as her already delivered sisters “Fairplay I / III”, as well as the “Fairplay XIV” still under construction, will primarily serve in the ports of Hamburg, Rotterdam and Antwerp. Two 8-cylinder ABC 8MDZC 4-stroke diesels with each 1,850kW at 1,000RPM generate the power for two Schottel SRP1515-rudder-propellers, producing a bollard pull of more than 70 tons and a free-running speed of 12kn. Two Scania 6-cylinder-diesel-engines with a power output of each 196kW generate on-board electricity. A Brusselles double-drum winch produces a break force of 1,800kN. Ships’ assistances will be performed primarily via the bow (Push & Pull). One of the double drums will carry a 90m Dyneema-Line whereas the other will carry conventional towing gear (52mm wires) either for port operation or sea-towages. For towage-jobs over the stern, the tow-wire is guided through a tunnel below the accommodations to the aft-deck. The extensive fendering around the entire ship is protecting the hull and especially designed for the “Push & Pull-Mode”. Designed for a 3-men-crew, the tugs each count a total of 6 bunks. Navigation- and communication equipment corresponds to the presently available technical standards. The tug is built according to Bureau Veritas with a class-notation: BV + Hull + Mach Tug unrestricted service + AUT UMS. Compared to the sister vessels “Fairplay I / III”, this tug’s hull has slightly been modified. With the assistance of the Fairplay-owned Buschmann-shipyard a skeg was developed which will further increase the course-stability when sailing backwards. At the same time as when Fairplay took delivery of “Fairplay X”, Astilleros Armon launched the “Fairplay XIV”, the last tug of this series. Keppel Singmarine Pte Ltd., the specialized shipbuilding arm of Keppel Offshore & Marine Limited, has delivered a Multi-purpose Duty Rescue Vessel on schedule to Lukoil-Kaliningradmorneft. Over the last four years, Lukoil has entrusted Keppel Singmarine with specialized shipbuilding projects such as Asia’s first icebreakers, two ice-class Anchor Handling Tug/Supply vessels and a Floating Storage and Offloading vessel, which is being completed by sister yard, Caspian Shipyard Company in the Caspian Sea. Jointly designed by Marine Technology Development (MTD), the ship design and development arm of Keppel O&M and its consultants, Robert Allan, “Kogalym” (Hull 317) is the fifth vessel Keppel Singmarine has delivered to Lukoil since 2003. Victor Velikov, Deputy General-Director of Lukoil said, “Heavy-duty support vessels such as ‘Kogalym’ are highly valuable in ensuring smooth offshore operations all year round in the unique weather conditions of the Caspian Sea….” Named after a key production region for Lukoil in western Siberia, the 60-tonne bollard pull, 65.0m x 15.0m x 6.2m “Kogalym” will be deployed in the Caspian Sea region to perform supply duty and rescue operations in temperatures as low as -20°C and ice thickness of up to 70 cm. Said Mr. Hoe Eng Hock, Executive Director of Keppel Singmarine, “Through the successful delivery of Kogalym and several other important projects, we have developed a good understanding of Lukoil’s operating requirements be it in the Caspian Sea or Arctic regions. In the process, we have also honed our expertise in designing, engineering and constructing advanced icecapable vessels.” The 892mtdw “Kogalym” is powered by a pair of MaK 8M25 4-stroke diesels developing a total of 7,178HP at 750RPM. She is classed with the Russian Maritime Register. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 10 Marcon International, Inc. Tug Boat Market Report – November 2009 th Although, as of 18 November, Fairplay only shows two 1,492HP tugs on Damen’s orderbook in the Netherlands scheduled for delivery from November through December 2009, they have over 50 more tugs under construction at various yards worldwide from China to Vietnam and South Africa to Poland. Tekom Leasing LLC has taken delivery of the new 4,023BHP Damen ASD Tug 2310 “Patriot” on behalf of end-user Odessa Sea Commercial Port. The 22.7 x 10.4m, Ukraine flag tug is powered by a pair of CAT 3512B TA HD+/C diesels total 3,000bkW (4,023BHP) and Rolls Royce US 205 Mk.1 2,200mm azimuthing thrusters. Bollard pull is abt. 47.0mt ahead and 45.3mt astern. Deck gear consists of a hydraulic split drum anchor / tow winch and Mampaey disc type 65 ton SWL tow hook. Air conditioned accommodations are provided for six persons with two cabins above the main deck and two double crew cabins below deck. Tug is classed BV I + Hull, +Mach Tug Unrestricted th Navigation. On 14 November, after a voyage of seven weeks “Patroit” successfully arrived in Odessa. This is the first new tug built in the past 27 years for Odessa Sea Commercial Port. The vessel was built by Damen Shipyards Changde in China. The second vessel will be delivered in January 2010. The 2,720BHP Damen Stan Tug 2208 “Galal Desouky” was delivered to the Egyptian Armarmet Authority in September. The 22.6m x 7.84m BV I +Hull, Mach classed tug is powered by CAT 3512B TAs, Reintjes WAF 665L 5.95:1 gears and Kaplan II fixed pitch props in 2,200mm Van de Giessen “Optima” kort nozzles with stainless steel inner rings. This develops a bollard pull of abt. 39.5mt ahead and a free running, trial speed of 11.9kn. Fit is fitted with a DMT electric anchor winch and capstan, a Heila 2.2 ton hydraulic crane, DMT hydraulic tow winch and a Mampaey Disc type 45 ton SWL tow hook. Rubber fenders are also fitted at bow and stern. Accommodations consist of a Captain’s cabin, a two Officers’ cabin and a crew cabin for 8 persons. Smit took delivery of the Damen ASD Tug 3213 “Smit Cheetah”. Tug was designed and equipped for towing, mooring, escort and fire fighting operations with hydraulically driven double drum escort winches fore & aft, 5 ton capstan, Heila deck crane, 100 ton SWL Mampaey tow hook and 126 ton SWL stern roller. Two 1,400m3/h fire pumps driven off the main engines supply two 1,200m3/h water/foam FiFi monitors. The 32.1 x 13.3 x 5.5m depth ASD tug is powered by twin CAT C280-8/MC main engines producing a total of 5,420BHP at 1,000RPM to Rolls Royce US-285 3,000mm controllable pitch azimuthing thrusters. This produces abt. 94.1mt and 89.2mt astern bollard pull ahead and a free running speed of abt. 14.3kn / 14.0kn ahead / astern. The Bahamas flagged “Smit Cheetah” is classed LR +100A1 Escort Tug [+] LMC UMS FiFi Ship 1 with Waterspray. Air conditioned accommodations are provided for 13 persons in 8 cabins with galley, mess/dayroom and sanitary facilities. th On August 18 , Clyde Marine Services Ltd. in the U.K., took delivery of their most powerful tug in their fleet so far, the '”CMS Buster”. Yard number 509641, a Damen Stan Tug 2208, left the Damen yard in Gorinchem with destination Greenock on the Clyde River in Scotland. Following the earlier deliveries from Damen to CMS, '”Battler”, a 20 tons bollard pull Stan Tug 1906 in 2004 and ”Bruiser”, a Stan Tug 1907 with 28 tons bollard pull in 2007, the “CMS Buster” is again more powerful with its 39 tons. The 22.8m x 7.8m x 3.7m depth tug is driven by twin CAT 3512B TA/B diesels developing a total of 2,720BHP at 1,600RPM, Reintjes WAF 664L 5.95:1 gears and Kaplan II fixed pitch props in 2,200mm Van de Giessen “Optima” kort nozzles. Towing gear consists of a hydraulically driven 10T pull at 10m/min tow winch aft, 45 ton Mampaey tow hook and 30 ton SWL stern roller. 11 www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. Marcon International, Inc. Tug Boat Market Report – November 2009 Over a period of only 5 years, Damen delivered 23 ASD Tugs 2810 to Smit. The th delivery of the “Smit Ebro”, on August 10 out of Damen Shipyards Galati, Romania, ended this impressive number. The Damen ASD Tug 2810, with its 60 tons of bollard pull, has become part of Smit’s image and reputation in many ports of the world. The deliveries have taken place out of Damen’s yards in Romania (16), Poland (2), Vietnam (2) and The Netherlands (3). Some of the tugs have been equipped and fitted out for a two man operation. Photo is the “Smit Elbe” with its bigger sister “Smit Mersey” assisting a tanker entering the Port of Rotterdam. Yemen Gulf of Aden Ports Corporation ordered Damen to build a new twin screw workboat for use in the Port of Aden. YGAPC executive chairman Mohammad Abdullah Mubarak and Damen’s sales director Martin de Bruijn signed nd the contract in Aden on 2 August 2009. The workboat will be of Damen’s proven Multi Cat 1908 type. Versatile and powerful and unique in Yemen, the Multi Cat 1908 is able to push and tow, to provide fuel and water transfer, to handle buoys and anchors on deck and to lift submerged objects of up to 20 tons. Damen is currently constructing another three units of the same design for Middle Eastern operators. Damen’s partner yard in the UAE will be constructing the Multi Cat 1908 for delivery in Aden by early 2010. Upon arrival, a service engineer will provide basic technical training to the Port’s staff. The Port of Aden has nine other Damen-built tugs & workboats in their fleet. Damen has been active in Yemen since the early 1980s, with other projects executed for the Port of Hodeidah and the Aden Refinery Company. Smit Shipping Singapore in June also took delivery of the Damen ASD Tug 2810 “Smit Guadeloupe”. This 4,930BHP towing, mooring & fire fighting tug measures 28.67 x 10.43m and is powered by twin CAT 3516TA HD/Cs and Rolls Royce US-205, 2,400mm thrusters providing a bollard pull of 60.5 tons ahead and 56.7 tons astern. The Bahamas flag tug is fitted with a DMT, hydraulic driven 30 ton at 11 m/min forward mounted anchor / towing winch, DMT capstan, Mampaey tow hook and DMT towing winch aft. D-fendering is provided at the sides and stern with cylinder and W-block bow fenders. Accommodations are provided for 8 persons. In June, the ASD Tug 3213 “Smit Panther” was delivered to Smit Shipping Singapore. The 32.14 x 13.29 tug is powered by CAT C280-8/MCs developing 7,268BHP at 1,000RPM to Rolls Royce US 285, 3,000mm CP azimuthing props. Bollard pull is abt. 94.7mt ahead and 88.9mt astern. Tug has a free running speed of abt. 14.3kn ahead and 14.0kn astern. The Bahamas flag tug is classed LR +100A1 Escort Tug [+] LMC UMS Fire Fighting Ship 1 with Waterspray. “Smit Panther” is fitted with a hydraulic 100 ton line pull, double drum escort winch, 5 ton electric capstan, Heila deck crane, aft hydraulic 80 tonne pull tow winch, Mampaey 100 ton SWL tow hook and 126 ton SWL stern roller. Accommodations are provided for 13. Mauritius Ports Authority took delivery of their new 5,600BHP, Damen ASD Tug 2411 “Da Patten” in June. This 24.5m x 10.7m x 4.6m tug is classed by Bureau Veritas for towing, mooring and firefighting ops. During her performance trials, “Da Patten” delivered a bollard pull of 68.6mt ahead and 63.7mt astern from her twin CAT 3516TA-HD/D diesels and Rolls Royce US-255 2,600mm thrusters. Tug is fitted with a Ridderinkhof, 150 ton brake, hydraulic split drum anchor handling / towing winch; Ridderinkhof capstan and Mampaey 100 ton SWL towing hook aft. Fendering is cylindrical and block fenders forward and “D” fendering on the sides and aft. A CAT 3406CT driven fire pump produces abt. 600m3/h at 10 bar to an Albach water/foam monitor. “Da Patten’s” four crew have air conditioned accommodations with the Captain’s cabin, Chief Engineer’s cabin and double crew cabin above the main deck, along with her galley, messroom and sanitary facilities. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 12 Marcon International, Inc. Tug Boat Market Report – November 2009 The Damen ASD Tug 2810 ice-classed tug “Stavr” was delivered to Silver Spear Shipping of Cyprus in July. The 28.7m x 10.4m x 4.6m tug is dual classed, both LR +100A1 Escort Tug Ice 1A FS [+] LMC UMS and RMRS KM *Arc4 AUT1 FFC WS. “Stavr” is powered by CAT 3516B-TA/B diesels producing a total of 4,200BHP to Rolls Royce US-255 2,400mm thrusters. This provides a bollard pull of abt. 48.7mt ahead and 47.2mt astern. Towing gear consists of a hydraulic DMT anchor / towing winch, electric capstan and a Mampaey 65 ton SWL disc type tow hook. Insulated and heated quarters are provided for 8 persons with 5 cabins above the waterline. st Although not technically a tug, on 1 June, 2009, the Swedish Coast Guard, Kustbevakningen, took delivery of the first of a series of three highly sophisticated 81.27m x 16.10m x 5.00m operational draft, Damen Multi-Purpose Vessels (MPV 8116). Named “KBV 001”, this first vessel was built by Damen Shipyards Galati, in a joint cooperation between Damen Schelde Naval Shipbuilding and Damen Shipyards Gorinchem, all three members of the Damen Shipyards Group. Whilst design and engineering, purchasing and project management were handled through DSNS, the building of the vessel itself was carried out at DSGa in Romania. Specialized companies, so called co-makers, have supported Damen in the building and finishing of the vessel, mainly through their respective Galati branches. All three Damen MPV 8116 vessels are of the multifunctional patrol and emergency response type. Considerable research went into the operational requirements for the vessels that are intended to reduce the risk of major marine pollution on the Baltic coastline of Sweden and the narrow but busy waters separating Sweden and Denmark. The primary role of the ships is to patrol the territorial waters of Sweden, engaged in general Coast Guard duties such as fishery, environmental and marine traffic control as well as to conduct search and rescue operations, including diving and the operation of ROVs. For emergency response duties in the harsh and relatively cold conditions of the Baltic, the vessels are equipped for emergency towing (110 tons bollard pull and strong enough to hold a 150.000 dwt tanker on station in a severe gale), salvage, fire fighting (Fi-Fi 1 notation), oil spill recovery and lightering operations. To support the above functionality the vessels are equipped with advanced and integrated automation, alarm and monitoring systems. The vessels have a diesel electric propulsion system with 6 diesel generators for power generation with a total power 8,674kW, providing flexibility, redundancy and reliability. Vessels are fitted with two azimuthing thrusters driven by 3,300kW electric motors and to add maneuverability have one retractable bow thruster and a resilient mounted tunnel thruster. Furthermore, vessels are fitted with double hulls and bottoms and are fully capable of navigating in ice (Ice Class “1A*”). The area of operation stretches to above the polar circle. Dynamic position systems further enhance their station keeping capabilities (maintain constant position and heading under Force 7 conditions). In order to minimize the environmental impact, the vessels are optimized for low fuel consumption in combination with extensive energy recovery from waste heat. The exhaust gas systems are equipped with special urea reactors to reduce NOx emissions. Firefighting is provided by two fire monitors each with 1,200m3/h capacity and a 600m3/h foam monitor. Two retractable oil booms are also fitted. All above qualities make these unique and highly sophisticated ships and technology leaders in a class of their own. “KBV 002” is scheduled for delivery in December 2009, with the third and even more complex “KBV 003” to follow in May 2010. Future Link Shipping Co. took delivery in May of the Damen ASD 2180 Ice tug “Sadko”. The 28.67 x 10.43 x 4.60m tug is classed LR +100A1 Escort Tug Ice 1A FS [+] LMC UMS / RMRS KM +Arc4 Aut1 FF3 WS and flagged out of Cyprus. “Sadko” is powered by a pair of CAT 3516TA/B diesels developing 4,200BHP at 1,600RPM with Rolls Royce US-255, 2,400mm azimuthing thrusters aft. Tug’s bollard pull is 48.5mt ahead and 45.5mt astern. Free running speed is abt. 12.8kn ahead and 12.4kn astern. Towing gear consists of a DMT hydraulically driven 18 ton line pull winch forward, DMT capstan and a Mampaey disc type 65 ton SWL tow hook. Insulated accommodations are provided for 8 crew in 5 cabins. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 13 Marcon International, Inc. Tug Boat Market Report – November 2009 Harms Bergung’s new 47.8m x 13.8m x 7.0m depth, AHT “Centaurus” (sister of AHT “Pegasus”) was christened in th Cuxhaven on 14 June. “Centaurus” is also, like her sister “Pegasus”, a reproduction of Harms’ already existing vessel AHT “Primus” and with 8,100BHP able to develop 104 tons of bollard pull. Tug was built by Mutzelfeldt Yard, Cuxhaven to a MAN Ferrostaal AG / Hitzler Werft design and is powered by twin MAK 9M25C main engines, Reintjes gears and 3,230mm controllable pitch props in HR nozzles plus a 400kW Jastram bow thruster and flap type high performance rudders. Vessel is fitted with 800kVA shaft generators and a 500kW / CAT 3412C 230/400vAC 50Hz generators. Towing gear consists of a Hatlapa AH 1.000 electrically driven waterfall winch with a capacity of 1,200m 70mm wire on main upper and lower drums, two 10T tugger winches, an 2.8 ton SWL hydraulic crane, 300 ton SWL fork / towing pins and 250 ton SWL 3.0m x 2.0m stern roller. Tankage consists of abt. 468m3 heavy fuel, 223m2 marine gas oil, 86m3 fresh water and 149m3 ballast. The air is a little cleaner at the Port of Los Angeles these days after the new and improved Crowley Maritime harbor class tug “Leader” re-entered the ship assist and escort fleet of vessels following an extensive repowering of the vessel's main engines and generators. The repower project, the first of four Crowley tug engine replacements, will help reduce emissions and lessen overall environmental impact and is part of a larger Port of Los Angeles emissions and air quality initiative requiring vessel operators to upgrade their engines to be Tier II emissions compliant by 2013. The repower will reduce particulate matter emissions by 3.24 tons and mono-nitrogen oxides by 109.52 tons per year for all four tugs combined. Repowering each tug costs Crowley more than $1 million and is largely being funded with a portion of a $4 million Port of Los Angeles Air Quality Mitigation Incentive Program air quality improvement grant. This project also benefits the neighboring Port of Long Beach, which has environmental goals and clean air quality initiatives that are closely aligned with those of the Port of Los Angeles. "The Port of Los Angeles is proud to work with Crowley and help provide funding for this important initiative," said Port of Los Angeles Executive Director Geraldine Knatz, Ph.D. "We are thrilled to see the first repowered Crowley tug operational here at the Port. It is this kind of partnership between public agencies and private business that is helping us meet our clean air action plan goals." Crowley partnered with Bay Ship and Yacht Co. to handle the engine repower project for the tugs “Leader”, “Admiral”, “Scout” and “Master”. The “Leader” was completed early in October and Crowley expects to re-introduce the fourth repowered vessel to the service in early 2010. "We are delighted to partner with the Port of Los Angeles in introducing lower emissions vessels and cannot stress enough how their commitment and generous financial support made this project possible," said Frosty Leonard, manager of marine operations for Crowley in California. "This engine repower project not only reduces emissions and improves air quality significantly, it also offers our customers more effective, efficient and environmentally sound service today instead of waiting until 2013." Crowley chose to replace the vessels' CAT 3516 main engines with CAT 3512 engines, and the CAT 3304 auxiliary engines with the new CAT model C4.4 generators, more than three years before the mandated compliance date. As an added bonus the engines although four cylinders smaller in size - have increased bollard pull for the vessel from 51 tons to 59 tons, further enhancing the vessel's effectiveness. "Bay Ship is extremely pleased to be an integral part of keeping Crowley's vessels working with minimal delays, while helping the Port of Los Angeles reduce emissions and improve the environment in which the vessels work," Ashton said. "Completing all this work took a tremendous amount of planning and coordination of all trades, including a tremendous amount of cooperation with Crowley. Bay Ship's abilities and the technical expertise of all the technical advisors, along with the complete cooperation of the senior management of Bay Ship helped to bring this project to fruition and allowed for project success. We now look forward to repowering the rest of the Los Angeles fleet, allowing the citizens of Los Angeles to breathe easier." 14 www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. Marcon International, Inc. Tug Boat Market Report – November 2009 Crowley Maritime Corporation christened the seventh of 10 new 185,000bbl ATB tank vessels that Crowley will take delivery of in 2010 and 2011. The vessels christened were the 10,728HP tug “Pride” and barge “650-7”. Crowley Petroleum Services will charter the VT Halter Marine-built ATB from Crowley’s vessel construction and naval architecture subsidiary, Vessel Management Services, and operate it for Marathon Petroleum under a time charter agreement. Crowley already has six, 185,000bbl and four 155,000bbl ATBs in the Jones Act trade. “This is the seventh in a series of 10 ATBs that will enter service over the next two years,” said Crowley. “The units have been well accepted by the industry and the demand for them dictates that we continue to build bigger and faster units. In addition to the remaining three 185,000-barrel, we will introduce our 750-series vessels which will carry 330,000 barrels in 2011.” An ATB has an articulated, or hinged, connection system between the tug and barge, which allows movement in one axis, or plane in the critical area of fore and aft pitch. Crowley and VT Halter Marine jointly designed the ATB tank vessel. The barge “650-7” was built at Halter's shipyard in Pascagoula, Mississippi, “Pride” at its shipyard in Moss Point. The new ATBs feature the latest systems technology and double-hull construction for maximum safety and reliability. Not only does the unit have the capability of transporting refined products, but it can also carry heated cargoes and easy chemicals, which require special arrangements of vents, stripping systems, pump components and tank coatings above that normally required for product carriers. All of Crowley’s ATBs are built under the ABS SafeHull program for environmental protection. This program puts the vessel design through an exhaustive review to identify structural loads and strengthen the vessel structure. The 650-Class barges will be 27,000dwt, 587’ in length, 74’ in breadth and 40’ in depth. The fully loaded draft will be 30’. There is an electric cargo pump in each of the 14 cargo tanks to assure maximum cargo integrity and segregation flexibility; two anchor windlasses and associated equipment to enable the vessel to accommodate offshore mooring operations; and a vacuum system with three retention tanks to easily handle cargo changes. There is also a dual mode inert gas system and vapor collection system for maximum safety. A layer of inert gas covers products in the tanks to make the atmosphere too lean for combustion. An enhanced mooring system features 1,000’ Spectra-type lines on split drums with a high-speed recovery rate of 100fpm. The tugs meet all SOLAS (Safety of Life at Sea) and ABS criteria, and have a foam capable fire monitor; twin fuel-efficient diesel engines; a noise reduction package; and other upgrades to increase crew comfort. The communication and navigation equipment is among the most technologically advanced in the industry today. The ATB fleet has moved hundred of millions of barrels of product with zero spills since the vessels entered service in 2002. Crowley also welcomed their newest 400’ by 105’, heavy-lift deck barge “455 7” to its fleet in September at a christening celebration at the Gunderson Marine shipyard in Portland, Ore. The barge is the fourth heavy-lift deck barge christened by Crowley this year and the seventh in a series of heavy-lift deck barges slated to be built and put into service by 2013. Crowley's heavy-lift 455 series deck barges with 25’ side shells provide both the capacity and deck strength needed to accommodate larger drilling and production units used for deepwater offshore energy exploration and development. They provide increased deck strength for loads up to 4,200psf. VT Halter Marine of Pascagoula, Mississippi has been awarded a second contract from OSG Ship Management, Inc. to undertake the outfitting and commissioning of a 350,000 barrel articulated tug barge unit (ATB). Work for this ATB will commence in November 2009 and is expected to complete by mid 2010. VT Halter Marine was contracted in April this year by OSG to undertake similar work on another 350,000 barrel ATB, expected to be delivered by the end of this year. Measuring 199.65m by 32m, these ATBs will be the largest ever built by VT Halter Marine. These state-of-the-art ATBs will be used to perform lightering services and will be equipped with specialized equipment to meet stringent vapor balancing regulations in the Delaware Bay, where the vessels will trade. VT Halter Marine has delivered in excess of nine ATBs to various customers over the last three years. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 15 Marcon International, Inc. Tug Boat Market Report – November 2009 Astilleros y Servicios Navales S.A. (ASENAVE) of Valdivia, Chile delivered the new 64m bollard pull ASD tug “Horcon” to Ultratug Remolcadores Ltda., part of Ultragas Navieras in June. The 32.5m x 10.5m x 4.9m depth / 4.2m draft tug is scheduled to be stationed at the new LNG terminal in Quintero, Chile. The Lloyd’s 100A1 class, 250dwt tug is powered by a pair of CAT 3516B diesels developing a total of 5,220HP to Schottel fixed pitch azimuthing drives. Free running speed is abt. 11kn. Tug is fitted with a JonRie Series 250 LNG escort winch with a 75 tonne line pull at 20m/min. Winch also features a dual windlass for 22mm chain, line date chart recorder, scope indicator, three tension meters and foot control. Several additional sister-vessels are on order from Asenave. Kotug International’s RT80-32 type rotor tug “RT Rob” made the trip from Japan to Bremerhavn, Germany on its own keel via the Panama Canal. The 32.0m x 12.3m x 5.4m “RT Rob” and sister-tug “RT Peter” were built by Niigata Shipbuilding and Repair, Inc. of Niigata, Japan, as Hulls No. 34 and No. 35 and classed LR +100A1 Tug, +LMC, UMS. The design of the “RT Rob” series is the innovative result of the close collaboration between designer KST BV in Rotterdam and operator Kotug International. “RT Rob” is the first delivery to Kotug of a fleet extension and replacement program that will continue until midst 2012. Having a bollard pull of over 85 tons over the stern as well as over the bow, the tug represents a new generation of Rotor® tugs designed for harbor and coastal towage. The tugs are powered by three Caterpillar 3512C engines of 1765kW each, via Twin disc 3000LD modulation clutches connected to three fixed pitch Schottel SRP1215 Azimuth rudder propellers. On the aft deck, a heavy duty side by side hydraulic Plimsoll towing winch is installed with a brake force of 200 tons. On the fore deck, a single drum winch of the same maker is installed, enabling “RT Rob” to assist ships over the stern, as well as over the bow. Electrical power is provided by two 150kW / CAT C9 400vAC 50Hz generators. The Rotor® tug, type RT-80-32 is specifically designed for harbor- and coastal berthing ops as well as coastal towing. Tugs are classed LRS + 100 A1, Tug + LMC, UMS with a range of trade of 100 miles, GMDSS area A2. The new Rotor® tugs are one of the first tugs who received the “Green Passport” statement of compliance under the IMO guidelines on ship recycling, issued by Lloyd’s. In close consultation with tug captains, an ergonomic wheelhouse was designed, allowing 360 degrees visibility from the operator’s position with all communication and navigation equipment within direct reach. Special care was given to the design of the accommodation, a comfortable furnished, light and wide interior with a luxury outlook was designed. Although “RT Rob” will be manned by only three persons, the design allows a maximum complement of eight. Three propulsion units and two tow winches generate full redundancy. Even if one engine or propulsion unit fails, towing can be continued with reduced (60%) power. “RT Peter” is enroute from Nantong, China for Singapore and thence on to Rotterdam with a newbuilding container feedership loaded with three inland waterway tankers. In June, Unie van Redding Sleepdienst / URS Belgie NV of Antwerp, Belgium took delivery of their latest newbuilding ASD tug - the “Union Koala” from the Turkish shipyard Dearsan Gemi Insaat ve Sanayii Kill in Tuzla as Hull 2056. “Union Koala” is a 65 tonne bollard pull, 32.02 x 11.61 x 5.37m depth, tug powered by a pair of CAT 3516HDs of 2,575HP each. She will join and strengthen the URS fleet in the Port of Antwerp. Her sister vessel the “Union Panda” was already delivered end of February. In 2007 URS received already two tugs of the Robert Allan “Rampart” design which are the “Union Kodiak” and “Union Grizzly”. Both tugs are also part of the URS fleet in Antwerp. Tug is classed by Bureau Veritas and registered under Belgium flag. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 16 Marcon International, Inc. Tug Boat Market Report – November 2009 Harvey Gulf International Marine, LLC of Harvey, Louisiana announced that, with the support of its majority owner, The Jordan Company, L.P., a New York based private equity firm with over $5 billion of capital under management, it will commit $200 million for construction of new vessels and acquisition of existing vessels. This capital will be used to support its worldwide expansion of services for Harvey Gulf’s deepwater operations. This commitment comes during a downturn in the marine and oilfield support industries and at a time when financing is difficult to obtain and expensive for all industries. According to Shane J. Guidry, CEO of Harvey Gulf, “We partnered with Jordan to ensure that Harvey Gulf has the resources to continue to provide the vessels and services that meet the requirements of our customers as they evolve. With Jordan’s support, Harvey Gulf can now explore opportunities worldwide that would not have otherwise been feasible.” The 7,200BHP, 40.65m x 12.7m x 6.9m AHT “Union Warrior”, which sailed from th Spain on 11 November, is expected to be delivered shortly to Unie van Redding Sleepdienst (URS) of Antwerp, Belgium by the Spanish shipyard Astilleros Armon S.A. of Navia, Spain. The Lloyd’s 100A1 class tug is powered by a pair of ABC 12VDZC 12 cylinder diesels producing 2,652kW (3,606HP) each at 1,000RPM to fixed pitch props which will give the tug a bollard pull in excess of 80 tons. “Union Warrior” is the first of four sister-tugs. The “Union Fighter”, “Union Boxer” and “Union Wrestler” will be delivered during 2010 through early 2011. Great Offshore Ltd. of Mumbai, an integrated offshore oilfield services provider, has taken delivery of the 30.0m x 9.5m x 4.7m newbuilding ASD tug “Polari”. The 30m x 9.5m x 4.7m tug is powered by a pair of Niigata 6L26HLX diesels developing 2,000BHP each at 750RPM. Tug is classed by Bureau Veritas. With the delivery of the 4,000HP “Polari”, Great Offshore’s fleet strength stands at 42 offshore vessels. Vane Brothers of Baltimore, MD has delivery of the new 100’’ x 34’ x 15’, 4,200 HP tug “Severn” from Thoma-Sea Shipyard of Houma, Louisiana; culminating in an unprecedented building program in terms of size and scope consisting of 15 tugboats over a five-year period. The project began in 2003 when it became obvious that Vane would need to increase horsepower in the tug fleet in order to handle their new fleet of double-hull petroleum barges to be constructed over the following decade. The tug is powered by a pair of CAT 3516s and fitted with kort nozzles. The “Severn” is dedicated to a 55,000bbl double hull tank barge in coastwise trade. Multraship has taken delivery of its multi-purpose ASD tug, “Multratug 18”, from the Vega Shipyard in Bandirma, Turkey. Tug is a sister to “Multratug 17”, delivered from the same yard in ‘08. “Multratug 18” is 35.7m, with a beam of 11.50m, and has a multi-role capability for harbor, escort and sea towage, as well as full firefighting and salvage roles. It has FiFi 1 fire-fighting, salvage, escort towage and oil recovery notations and is powered by two ABC diesels, delivering 70 tonnes bollard pull. “Multratug 18” has a double drum winch aft and single drum winch forward and a free running speed of 13.5kn. It is classed by RINA and is registered under the Netherlands flag. Multraship’s new tug is to start work straight away, on charter to specialist offshore contractor Geo@Sea for employment in Nordwind and Alpha Ventus wind-energy projects off Borkum and Eemshaven in the Netherlands. “Multratug 17” is currently undergoing its annual drydock survey in Rotterdam following a twelve-month charter to Offshore Marine Contractors working on the Robin Rigg project in the Irish Sea. Multraship managing director Leendert Muller says, “The arrival of ‘Multratug 18’ completes our immediate plans for boosting our towage service capability in the North Sea. There is an ongoing need for investment in new tonnage and services in the towage and salvage sector, and Multraship is committed to providing that.” www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 17 Marcon International, Inc. Tug Boat Market Report – November 2009 th As they approach their 120 year of continuous operation on the Mississippi River, Bisso Towing of New Orleans took delivery of their newbuilding U.S. flag “Michael S”, a 4,000HP ASD ship-assist tug from Main Iron Works of Houma, Louisiana. The 100' x 38' x 13.5' “Michael S” is powered by two Cat 3516B main engines, producing 2,000BHP each at 1,600RPM, which drive Ulstein-Aquamaster US205 MK2 Z-drives. The Z-drives feature 90.6" diameter x 82.4" pitch four blade stainless steel propellers set in stainless steel nozzles. Estimated bollard pull is 60 tons. Electrical service is provided by a pair of 99kW generators powered by John Deere engines. Deck equipment includes a Markey DYSF-42 hydraulic bow winch equipped with 500' of 8" circumference Plasma line and a Washington Chain and Supply RSRH100 100-ton quick release tow hook. Auxiliary equipment includes USCG-approved engine room monitoring and fire/smoke alarm systems, complete electronics package featuring Simrad Autopilot/GPS heading sensor, Furuno radar with chart plotter and Furuno depth meter, Oily/Water separator, sewage treatment plant and 500gpm fire monitor. Other features include sound proof insulation throughout crew quarters and engineer room, stainless steel deck bitts and bow staple, four bunk rooms with seven crew berths, and flat screen TVs and DVD players in all bunk rooms. “Michael S.” will carry a four man crew. Tug has an ABS International Loadline and has achieved ISM Safety Certification by ABS. The “Michael S.” is the third ASD tractor tug built for Bisso by Main Iron Works and further allows Bisso to lay claim to being the only ship-assist operator on the Mississippi River operating multiple ASD tractor tugs. The “Michael S.” brings the total number of ship-assist tugs operated by Bisso on the River to twelve. Bisso Towing has reached an agreement with Main Iron Works to begin construction of another 4,000HP ASD tractor tug. The as yet unnamed new tug will be an almost exact carbon copy of the “Michael S.” and construction is scheduled to commence in the first quarter of 2010 with delivery expected in mid-2011. "As the first company to introduce ASD tractor tugs on the Mississippi River back in 1999, we have always been the industry leader in introducing and operating the most advanced tugboat technology available" said Scott T. Slatten, President of Bisso Towboat Co. "These new z-drive tugs are our further commitment to providing our customers with the best equipment available, operated by the most highly trained, skilled and experienced mariners on the River." Utilizing resources and facilities of their extensive repair yard at Saatahip on the east side of the Gulf of Thailand near Pattaya, the Royal Thai Navy has built a tug for their own use. The 27.5m tug has a 8.5m beam and 4.15m molded depth. Designed by Singapore’s Khiam Chuan Marine Pte. Ltd., all materials for the vessel were purchased through the services of the Thai shipyard Sea Crest Marine Co. Ltd. This included a dedicated fire pump engine, two 69kW generator sets and two Cummins KTA38 M2 main engines. Each engine, generating 1,200HP, turns into ZF W4610 marine gears with 5.630:1 reduction. The crew accommodation is attractive and well outfitted with a small separate galley and a roomy comfortable mess with a flat screen TV. The wheelhouse is well laid out with the basic equipment required by a harbor tug. A compact helm indicator, supplied by the Japanese firm Saura Auto Pilot, is mounted on the well laid out and attractive console next to the bright chrome ZF control module. Controls for the Cummins main engines are mounted on either side of a compass binnacle, also supplied by Saura. Visibility forward to the combined anchor and hawser-handling winch is good with additional windows in the overhead for ship docking. H-bitts are provided on the after deck for towing. The tankage includes 107,000 liters of fuel and 30,000 liters of water. The 2,400HP give the boat a 27.5-ton bollard pull. The boat was built in nine smaller module blocks at the Saatahip shipyard and then transferred to the yard’s 237m long graving dock where a 90m section had been sectioned off. This allowed the tug to be assembled while freeing the balance of the dock for repair and maintenance projects. The Port at Saatahip is the home base for much of the Royal Thai Navy including the 1997-purchased 11,400-ton displacement Spanish-built vertical/short take off and landing (VSTOL) carrier “Chakri Naruebet”. While not such a spectacular resource as the carrier, the new tug will serve important functions in and around the Saatahip Port. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 18 Marcon International, Inc. Tug Boat Market Report – November 2009 In late February, the 32.0m x 13.2m x 5.55m depth RAstar 3200 Class tug “Monterrey” was delivered to Servicios Marítimos de Baja California, S. de R.L de C.V. of Mexico by Union Naval Valencia of Valencia, Spain. Servicios Marítimos de Baja is a joint venture between Moran Towing and Grupo Boluda of Spain. Tug is the first of four, expressly designed to work at the Costa Azul LNG terminal on the northwest coast of Mexico, at a terminal exposed to fully developed Pacific swells. Basic requirements stipulated that the tug and its winch must be able to sustain a line pull of 75 tonnes throughout the entire terminal approach in a +2 meter significant swell. The resulting winch is massive and extremely powerful; accordingly it dominated every aspect of vessel design. In addition, Owners required that the design be less than 500GRT, which put a cramp on intended vessel configuration. In order to cope with predominant sea conditions, Robert Allan chose to utilize the new RAstar hull form for best sea-keeping. The 500GRT constraint forced some minor modifications and forced a shortening of the foc’stle. The basic hull form reflects the proven double chine form that characterizes Robert Allan designs, with a sweeping "chine" stern. A large escort skeg is fitted forward which, in conjunction with a sponsoned hull shape, enhanced the indirect towing capability and provides enhanced roll stability. Tug is classed ABS +A1 Towage Service, Escort Vessel, Fi-Fi 1, +AMS, Unrestricted Service. On trials she performed exceptionally well, achieving a mean bollard pull of 82.5 tonnes, and a free-running speed of 14kn. Vessel has been outfitted to the highest standards for a crew of six. The main deck features generous cabins for Master and Chief Engineer, both with en-suite facilities and a spacious crew mess/lounge, served by a fully equipped galley. Lower deck contains two crew rooms, equipped for double occupancy sharing access to a common lavatory space. The remainder of the lower deck space is dedicated to stores and winch machinery. Wheelhouse is designed for maximum visibility with a single control station providing maximum visibility to both fore and aft deck working areas. Low noise levels throughout the accommodation and control spaces of the tug are achieved by utilizing advanced methods of isolating main propulsion machinery, as well as high-grade insulation and floating floor techniques. Propulsion for the “Monterrey” comprises a pair of MTU-16V4000 M71 diesels, each rated 2,465kW driving Rolls Royce model US255 fixed pitch Z-drive units in ASD configuration, through Lufkin MV1600S reduction gears and a hollow carbon-fiber intermediate shaft with no line bearings. This delivers a static Bollard Pull of 80 tonnes. The electrical plant comprises four diesel gensets, with a 460vAC 3Ph 60Hz. output. Two ship's service generators rated 125kW each are intended for normal operations. When the winch or Fi-Fi systems are operated one of the two large gensets, each rated 800kW are operated. Winch and Fi-Fi generators are configured for parallel operations. The ship service generators are configured for operation on one generator, with 2nd generator on standby, and the system is provided with an autostart capability that allows automatic start-up of the selected standby generator and connection to the dead bus in the event of a generator failure. Fire-fighting is to Fi-Fi 1 Class, using electrically-driven Nijhuis pumps and monitors. The most distinctive feature is the main hawser winch on the foredeck. The most obvious difference to a normal shiphandling tug winch is that this winch is a double drum waterfall configuration. This solution, proposed by Robert Allan to the manufacturer, put the drums in line, making escort operations through a single staple much easier. The Markey DESDF-48WF winch is claimed to be the most advanced high-performance electric hawser winch in the world. The 521kW winch features dual drums, each with a capacity of 200m 80mm UHMW-PE soft line in 7 plus layers for use against a bollard pull of 75mt. The massive winch was designed to perform close escort service in conditions up to Sea State 5 with 3m significant wave height and a 14 second wave period. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 19 Marcon International, Inc. Tug Boat Market Report – November 2009 Using Variable-Frequency electric drives, dynamic motor braking and water-cooled disc brakes, the “Monterrey’s” winch is capable of Asymmetric Render/Recover® operation that will maintain constant line tension under such rough sea conditions, adjustments which are nearly impossible for a man to achieve using lever controls. A single automatic level wind is situated to service both drums. The hawser winch is accompanied by a 7.5kW WEPC-14 anchor windlass and a 15kW CEP-60 Stern Capstan also by Markey Machinery. The aft deck is served by a Large H-Bitt, and a vertical capstan for general line-handling. Shiphandling fenders at the bow are two parallel rows of 900 x 450mm cylindrical fenders. 350 x 350mm hollow "D" fenders provide protection at the main and foc’stle deck sheer lines, and around the stern. “Sesok”, Crowley Maritime's newest triple-screw tug joined the fleet of Alaska river tugs last summer when it called on St. Mary's on the Yukon River to pick up its first barge. Soon thereafter, “Sesok” and her crew made stops along the Yukon River in Emmonak, Nome, Hooper Bay and Bethel to meet with Crowley personnel and villagers to celebrate the vessel's maiden voyage with barbecues. “Sesok” will continue to work the coast throughout the season. Jointly designed by Crowley and Diversified Marine, “Sesok”, which means "beluga whale" in the Inupiaq language, boasts 1,362HP and is equipped to safely propel petroleum / freight barges in river systems throughout Alaska. In April, Crowley took delivery of “Nachik”, “Sesok's” sister. "Even in the midst of tough economic times, Crowley continues to invest in vessels that not only provide the safest service but also help protect Alaska's natural resources," said Craig Tornga, VP Alaska's marine services. "Both ‘Sesok’ and ‘Nachik’ complement the company's existing fleet of river tugs and will provide improved service to our customers and communities in Western Alaska." Crowley's shallow draft tugs operate in Alaska's rivers and coastal regions where operations are challenging due to restricted drafts and lack of docking infrastructure. Tugs are designed to operate at a draft of 3.5’. The 36.65m x 13.60m x 5.00m Advance Voith Schneider Tractor Tug “Spinola” designed by Robert Allan Ltd. was delivered by Astilleros Armon S.A.’s Navia Yard in Gijon, Spain to Rimorchiatori Riuniti SpA of Genova, Italy. The Maltese flagged tug is powered by a pair of MaK 8M25 8 cylinder diesels providing a total of 7,180BHP at 750RPM and bollard pull of 81 tonnes. She is classed by RINA and fitted with a FiFi system Class1 and full oil recovery equipment on board to combat marine pollution. With her open stern, she is also able to handle small anchors for anchor handling activities. The VSP terminal escort tug will be located in Malta and will carry out both harbor towage services and salvage / off-port towage services. Rimorchiatori Riuniti became a majority shareholder of Tug Malta Ltd. in 2007. Catherwood Towing operates a fleet of tugs on the Fraser River in British Columbia, Canada. Owner Ernie Catherwood built the fleet over the years and has recently been repowering with Cummins engines. In the spring of 2009, Ernie Catherwood took delivery of his first new-build with Cummins KTA19 main engines from Sylte Shipyard Ltd. “Sea Imp IX” is 53.6’ overall with a hefty 22’ beam and 9.75’ draft. As were several of the boats already in the fleet, the new boat was built to a design by West Vancouver based A. G. MiIlwain who understands the demands of a yarding tug that is required to do some coastal work as well. With fuel tanks for 45,000 liters, the boat has the range for longer tows along the BC coast. With that in mind, it has accommodation for four crew members. As is the practice for tugs working around log booms, the new boat will have channel iron guards covering the exterior of the hull to protect the tug when working against heavy logs. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 20 Marcon International, Inc. Tug Boat Market Report – November 2009 Greenbay Marine Technologies of Singapore has delivered the new 49.50 x 15.00 x 6.57m ASD tug “Lamnalco Griffin” to Lamnalco Group. The Bureau Veritas classed tug is powered by a pair of Niigata 8L28HX diesels developing a total of 5,998HP at 750RPM and a bollard pull of abt. 80+ mt. JSC Pella Shipyard of Leningrad, Russia has launched the tugboat “Klasco-2”, the second tug for Klaipeda Stevedoring Company of Lithuania. The keel-laying of the second 28.8 x 9.5 x 4.9 azimuthing tug built under the order was carried out by Pella in May. The tugboat (Design 16609) will have power of 3,370kW and an ability to develop bollard pull of 55 tons. It will be equipped with both fore and after towing winches and an external fire-extinguishing installation. This year open JSC Pella plans to accomplish construction of the vessel and to deliver it to the customer ahead of time. The first tugboat “Klasco-1” was delivered to the customer Klaipeda Stevedoring in 2008 and has since successfully operated in the port over the course of one year. …… Sea trials of tugboat “Radomir” (project 16609) – the first of the four tugs to be delivered to Sovkomflot have been conducted successfully……In September, the third tug of the 90600 design completed her trials and has been prepared for delivery by Pella Shipyard of Leningrad, Russia to the fleet assistance group of the RF Navy (Russian Federation) for operation in the Arctic. The 25.5m x 8.8m x 4.6m azimuthing tug, having already got the full marks from specialists assigned by order of the Navy Commander In Chief during the IMDS-2009, was delivered to the fleet in advance of the terms stipulated by the contract. 90600 design tugs are intended for harbor, coastal and offshore towing and berthing operations, and other additional functions, such as fire fighting and oil spill response. The first of the series of harbor tugs built on order of the Ministry of Defense of the Russian Federation successfully passed the official tests and was delivered in July, while the third in the series was set afloat…..Tug “Ratibor”, the second out of four tugs of the 16609 design built against the order of Open JSC “Sovcomflot” has been launched at Pella’s Otradnoye Yard as Hull No. 615. Much like its predecessor “Radomir” the tug is equipped with a propulsion unit of capacity 3,000 kW and an effective external fire-fighting system, fitted with equipment from the leading world manufacturers. The 28.5m x 9.5m x 4.82m tug is powered by twin CAT 3516Bs developing 4,258BHP at 1,600RPM and classed under the Russian Maritime Register……Also during the same month, the tugboat “TAK-6” (Design 16609) with a bollard pull of 55 tons at the total capacity of two main engines CAT 3516 of 4,500HP was built and delivered by Pella Shipyard for operation at an earlier date agreed in the contract. The most modern equipment has been installed at the vessel and so it is able to carry out a wide range of functions. The ordering company is UAB Towmar Smit Baltic - subsidiary of one of the largest international cargo shipping companies, Smit International Overseas B.V. The “TAK-6” had completed her sea-trials during the first week of July……Also in July, Open JSC Pella concluded the contract with Primorsk Oil Terminal on delivery of the multifunction escort tugboat of new design “ПЕ-65” building of which has been actively proceeded at the present time. The propulsion system with total capacity of 4mW with Rolls-Royce US-255 azimuthing thrusters will allow developing bollard pull of 63 tons and holding force at escort up to 76 tons providing escort, piloting and canting of heavy-tonnage vessels with a displacement up to 150,000 tons. The tugboat is able to carry out a wide range of duties, such as breaking ice 0.8m. of width, rescue and firefighting operations, oil spill response, transportation of goods and so on……With sea-trials successfully over, the tugboat “Taymen” (Design 16609) was delivered to the client – Open JSC “Ust-Luga Company” during the end of July. It is the fourth vessel built for operation at the new and modern port. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 21 Marcon International, Inc. Tug Boat Market Report – November 2009 “Riverwijs Maryon” departed from Cheoy Lee’s Kowloon shipyard in late September, destined Fremantle, Australia and new Owners Riverside Marine Group / RiverWijs Dampier Pty. Ltd. The voyage was delayed by a typhoon in the South China Sea, close to the intended route, but under the vessel’s own power, the voyage took just under two weeks to complete. The 5,000HP tug was built to Lloyd’s Register class, with notation + 100A1 Tug, * IWS +LMC, UMS. As with Cheoy Lee’s Z-Tech tugs, and other RAmparts models in the series, the RAmparts 3000 is designed by Robert Allan Ltd. Propulsion is by two Niigata 6L28HXs driving Niigata ZP-41 azimuthing thrusters. As well as providing excellent maneuverability, the system provides a bollard pull of 65 tonnes and a max free running speed at full load of 12.5kn. Full height floor to ceiling windows all around the elevated wheelhouse provide the visibility required to operate this agile vessel. Kraaljeveld towing winches fore and aft and a 65 tonne Mampaey tow hook handle the towing lines. Other systems include a 1,400m3/h external FiFi system, deployed via two remote controlled monitors on the wheelhouse roof. External fire protection is also enhanced by a water curtain system that blankets the vessel when operating near fires. Tug is operated by a crew of up to 10, with accommodation on the main and lower deck forward..... Two weeks after the departure of the “Riverwijs Maryon”, “Riverwijs Karoline” set sail for Dampier Port in Western Australia. The remaining two vessels are scheduled for completion before the end of 2009. Identical to the first vessel, “Riverwijs Karoline” is also designed by Robert Allan and built to Lloyd’s + 100A1 Tug, * IWS +LMC, UMS class. Dimensions are 30.8m x 11.0m x 5.5m draft.....Completed several months ahead of schedule, the 27.4m x 11.5m x 5.1m “Star Commodore” was the latest Z-Tech 7000 tug delivery from Cheoy Lee to PSA Marine in Singapore in June. The new ZTech 7000 tugs are fitted with larger main engines, providing a bollard pull of 70 tonnes. Two CAT 3516B, 2,682HP diesels drive azimuthing Schottel rudder propellers. “Star Commodore” is the fourteenth Z-tech tug constructed for PSA Marine and will be the latest addition to their fleet of over 60 vessels. PSA Marine continues to be Cheoy Lee’s leading client for Cheoy Lee Z-Tech tugs. A total of twenty-six units have been delivered worldwide. As are all Z-Tech tugs, “Star Commodore” is classed to Lloyd’s Register. The lower deck houses six crew in three cabins. A further 2-man crew cabin is on the main deck as well as two single officer cabins, galley and crew mess. In May, Foss Rainier Shipyard launched the line-handling boat “Lucy Foss”, built to service Chevron’s El Segundo Moorings in Southern California. Noteworthy features included on the “Lucy Foss” include an easily deployable oil boom on an aft reel and mooring lines for ships on a forward reel. The extremely maneuverable boat has a wheelhouse designed for good visibility, especially looking down to the aft deck. By August “Lucy” was hard at work alongside the 678’ Liberian-flag tanker “Aliakmon”, which was set to deliver 360,000bbl of gasoil to Chevron’s El Segundo Refinery. “Lucy Foss” paid out four 300’ pennants to the tanker, to supplement six of its own, for a total of 10 lines, plus the ship’s two anchors, needed to secure it in the berth. Tractor tug “Brynn Foss” assisted the tanker into the horseshoeshaped system of buoys a mile and a half off the beach, and then held the ship in position while “Lucy Foss” ferried lines to the buoys. Once secure, the tanker began pumping its cargo through a pipeline along the ocean bottom, as the “Lucy” stood by. The boat is a significant upgrade from its predecessor, the “Keith K”. The old “line boat” as they are called, was not capable of carrying spare mooring lines, so they had to be ferried to the tankers in big buckets. “Lucy” also carries 1,000’ of containment boom, has state of the art navigation systems and built with comfortable accommodations for the crew. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 22 Marcon International, Inc. Tug Boat Market Report – November 2009 rd On Thursday 23 July 2009, Washburn & Doughty of East Booth Bay, Maine launched Hull 94, “Lois Ann L. Moran”, one year and twelve days after a devastating fire destroyed their main construction building. “Lois Ann L. Moran” is a 121’, Intercon ATB tug built for Moran Towing of New Canaan, th CT. The ABS +A1 classed tug emerged relatively undamaged from the 11 July 2008 fire. Washburn & Doughty was able to continue construction on it while their new building was built around the tug itself. “Lois” is powered by a pair of EMD 12-6456F7Bs developing a total of 5,100HP and a bollard pull of abt. 50mt. Four days later, Washburn & Doughty launched Hull 96, the “Catherine C. Moran”, a 98’, 500 ton, ASD tug, also for Moran. Construction on the 5,100HP “Catherine C. Moran” began shortly after the fire. The vessel was built outdoors through the winter in W&D’s East Yard, which necessitated a crane launch, which was the first for the shipyard. Donjon Marine of Hillsdale, New Jersey provided the 191’ x 101’, 1,000 ton lift capacity crane barge “Chesapeake 1000” for the launch. The “Catherine C.” has since joined Moran’s fleet and is in New Orleans supporting an LNG contract. Two more recent launchings at W&D were the 98’ Hull 95 “Lizzy B. Moran” (sister to the “Catherine C.”) plus Hull 97 “Loretta B. Moran”. International Transport Contractors of the Netherlands added to its fleet by taking on bareboat charter two new 70.7m x 16.0 m 7.2m depth AHTSs built November 2008 and May 2009 by Jiangsu Zenjiang Shipyard of China. The 10,800BHP, 136 tons bollard pull vessels were handed over in August in the Far East and are under full ITC control. The vessels were renamed in ITC tradition after “ocean winds” – “ ITC Cyclone” and “ITC Chinook”. Both will be flying Dutch flag, with homeport Amsterdam. “ITC Cyclone” and “ITC Chinook” are DP-2 for excellent station keeping with two CPPs and two bow thrusters of 625kW. With a clear deck of 570m2 and liquid, as well as dry bulk cargo, capacities, the vessels are ideally suited for rig and FPSO support. Both vessels have a FIFI-1 rating with 2,400m3 capacity. Vessels feature comfortable accommodation for 50 men including their own crew of 15-18 men. Two MaK 8M32C main engines totaling 10,800BHP result in a certified bollard pull of 136 tonnes. A waterfall double drum Brattvaag tow / anchor handling winch with capacities of 2,000m 76 mm wire, maximum pull of 300mt and static break of 450mt make the vessels suitable for deep water anchor handling, as well as long distance deep sea towing. The addition of two more offshore vessels underlines ITC strategy to diversify activities more into offshore support, next to its traditional core business of deep sea ocean towage. It also confirms ITC’s confidence in the capability of today’s offshore markets to return to previous levels. Cummins Inc. of Columbus, Indiana reported third quarter sales of $2.53 billion and net income of $95 million, down considerably from last year’s record third quarter results. However, Cummins significantly improved its profitability and cash position from the second quarter despite the global recession that continues to affect demand in most markets. Sales fell 31% and net income attributable to Cummins Inc. fell 59% compared to the same period last year. Compared to the second quarter, sales increased 4% on the strength of improving demand in China, India and Brazil and a short-term increase in on-highway engine and components sales in the United States. Those increases more than offset quarter-to-quarter sales declines in the Company’s Power Generation and Distribution businesses. Despite the modest increase in sales, net income attributable to Cummins rose 70%, EBIT increased 42% and Cummins improved its cash position by $152 million from the second quarter. Significantly improved profitability and cash position from second quarter largely result from lower spending, better utilization of manufacturing capacity and reduced inventory. “Given the continued weakness in many of our markets, the Company performed extremely well in the third quarter,” said Cummins Chairman and CEO Tim Solso. “The decisive actions we have taken over the past several months have allowed us to remain profitable, generate cash and invest in the Company’s future in the face of the worst recession in decades.” Compared to the same period a year ago, sales fell by at least 25% in all four of Cummins’ operating segments, with largest declines coming in the Power Generation and Engine segments. Third quarter sales for the Engine Segment were US$ 1.44 billion, down 37% from same period ‘08. Despite continued weakness in demand, all four segments were profitable in the third quarter. Cummins continues to invest in its most critical projects, especially those associated with launch of new emission-compliant products in 2010 and fuel economy improvements. Based on third quarter results and Cummins forecasts for the remainder of the year, Cummins is raising its sales and profit guidance for 2009. Cummins now expects 2009 sales to be slightly less than 30% lower than 2008. Previously, Cummins said it expected 2009 sales to be slightly more than 30% lower than last year. 23 www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. Marcon International, Inc. Tug Boat Market Report – November 2009 Caterpillar Inc.’s third-quarter sales and revenues of $7.298 billion were down 44% from $12.981 billion in the third quarter of 2008. On a geographic basis, EAME (Europe, Africa, Mid-East and Commonwealth of Independent States (CIS) sales for marine applications decreased 41% due to weak economic conditions, especially in container applications, combined with dealer efforts to reduce inventories. Marine application sales in Asia Pacific decreased 7% due to dealer efforts to reduce inventories, partially offset by a strong order backlog for workboat and general cargo vessels. “We are pleased with this quarter’s profit given the severe economic environment and with our sales well below end-user demand as dealers continue to aggressively draw down inventories,” said Chairman and CEO Jim Owens. “During the quarter, our primary focus continued to be on trough management and operational execution. We lowered production as dealers continued to cut inventories, we reduced costs, maintained positive price realization, lowered inventory, delivered positive operating cash flow and improved our financial position. ….” Third-quarter profit of $404 million was down $464 million from $868 million in the third quarter of 2008. The decline was primarily due to significantly lower sales volume. The negative impact of lower volume was partially offset by lower costs, a favorable effective tax rate, favorable price realization and pre-tax LIFO inventory decrement benefits. Manufacturing costs, selling, general and admin and research and development expenses were all significantly lower than a year ago. Favorable effective tax rate included $129 million of benefits related to prior year tax returns. Caterpillar has reduced inventory by about $2 billion since the end of 2008 and expects continued reduction through the remainder of the year. “We believe the third quarter marked the low point for Caterpillar sales and revenues in what has been the toughest recession since the 1930s. We are seeing encouraging signs that indicate a recovery may be underway,” Owens said. “However, the world economy is still facing significant challenges. There is uncertainty about the timing and strength of recovery.” Caterpillar expects 2009 sales and revenues of $32 to $33 billion. “Caterpillar’s improved profit outlook for 2009 is a clear demonstration of our ability to implement our economic trough plans, which we announced as part of our corporate strategy in 2005,” Owens said. “While we are still navigating through a very difficult environment in 2009, we see signs of improving economic conditions throughout most of the world.” Caterpillar expects the world economy to improve in 2010, with growth of about 3% - the highest growth rate since 2007. The preliminary outlook for 2010 sales and revenues is an increase of 10 to 25% from the midpoint of the 2009 outlook range, in part driven by the end of dealer inventory reductions which significantly impacted sales in 2009. “While 2010 will still be a difficult year, we expect improvement in our top line from the lows of 2009, and it’s critical that we manage on the way up as well as we did in the face of declining volume. As a result, we’ve already started planning for an upturn. When it comes, it can come quickly, and we, our dealers and our suppliers will be prepared,” Owens said. Caterpillar believes industrial production has improved in the vast majority of major economies, signaling an end to the world’s worst postwar recession. Central banks accelerated interest-rate reductions after the Lehman Brothers’ bankruptcy, and interest rates throughout the world are the lowest on record. For many developed economies, interest rates are lower than during the Great Depression. Central banks increased their balance sheets to increase liquidity in financial systems. Although banks are still holding much of this liquidity, some has moved into the public’s hands. Growth in the money supply accelerated in some of the larger economies. Governments introduced more than $3.5 trillion in multi-year stimulus programs with most of the expected impact in the last half of 2009 and into 2010. World economic growth should be positive in the last half of this year. However, the collapse in growth late last year and early this year means world output will be down slightly more than 2% for the full year, the worst decline in the postwar period. Asia/Pacific will be the strongest region for growth this year, an estimated 4%. China’s recovery stimulus returned its growth to almost 8% in the second quarter, and full-year growth should be nearly 8.5%. India and Indonesia also reacted quickly, and 2009 growth should average about 6% and 4%, respectively. Africa/Middle East should have marginal economic growth. Positives include improved access to credit, higher commodity prices and lower interest rates. The CIS economy, despite some signs of improvement, should shrink about 6% in 2009. Most Latin American economies are in recovery, led by a strong rebound in Brazil. However, a recession in Mexico will result in the regional economy declining an estimated 2 percent this year. Collectively, developing economies should grow almost 1.5% this year. Although growth is down from 5.5% in 2008, it is much better than the 3.5% decline expected in developed economies. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 24 Marcon International, Inc. Tug Boat Market Report – November 2009 The U.S. economy declined at less than a 1% rate in the second quarter despite record inventory reductions. A slowing in inventory reductions, some improvement in consumer spending, further gains from trade and more government spending likely pushed growth to 3% or better in the third quarter. Despite further growth in the fourth quarter, output will decline about 2.5% for the full year. The European economy declined about 1% the second quarter, and surveys suggest recovery started in the third quarter. However, earlier severe declines should leave output down 4% for the full year. The Japanese economy collapsed during the recession, with industrial production bottoming 37% below the best month in 2008. Recovery has started, but the Japanese economy will be down about 5% for the full year. With nine months of 2009 behind Caterpillar, they have tightened the full-year outlook for sales and revenues to a range of $32 to $33 billion. Caterpillar has implemented a wide variety of actions to weather this very severe recession, and as a result, they expect to be solidly profitable in 2009. Caterpillar expects an improvement in the 2009 profit outlook since the end of the second quarter. Led by developing economies, CAT expects that economic recovery will strengthen in 2010, with worldwide growth of about 3%. This rate of growth would be the best since 2007, but low by historic standards given the depth of the recession. Consumer prices are currently declining in the United States, €zone and Japan; inflation in the developed economies is the lowest since 1969. At the same time, unemployment is high and generally rising. As a result, Caterpillar assumes most central banks will maintain very low interest rates through at least mid 2010 and then raise rates cautiously in the second half. CAT projects the Federal Reserve will increase rates from about 0.15% to 1% by the end of 2010; the European Central Bank, from 1% to 2%. Many credit spreads are elevated, and businesses often struggle to obtain credit. Caterpillar assumes central banks will need to maintain expansive balance sheets throughout much of 2010 to further ease financial pressures. Stimulus programs should have maximum impacts in the first half of 2010. Some governments may expand programs to provide additional support. The severe recession left the world economy with vast amounts of unused capacity. As a result, inflation is unlikely to develop into a serious problem in 2010, no matter how fast the recovery. Economies are still struggling with continuing problems, which is normal in the early months of recovery. However, historical comparisons show that severe recessions give way to rapid recoveries. Caterpillar’s forecast assumes that developing economies will continue to outperform developed economies. Growth in the developing economies should be more than 5% in 2010, compared with about 2% in the developed economies. Improved world economic growth in 2010 should extend the ongoing recovery in commodity prices. CAT expects most commodity prices will be attractive for investment, and producers will increase both production and investment. Asia/Pacific will remain the fastest growing region, with about 6.5% growth. CAT expects almost 9% growth in China and 7% growth in India. High rates of growth should improve construction spending and investments in mining capacity. The economies of Latin America, Africa/Middle East and CIS should grow between 3 and 3.5% next year. Better growth should revive construction spending, and most economies will benefit from higher commodity prices. Caterpillar forecasts 3% growth in the U.S. economy, which is slower than past recoveries from severe recessions. Housing, highway construction and mining production should all improve. Nonresidential building construction will likely continue to decline. The economies of Europe and Japan, coming off steep declines in 2009, should grow 1 to 1.5% in 2010. Construction should improve slightly. Our major concern is that central banks will begin raising interest rates and reducing balance sheets too quickly. Economies likely will remain fragile well into 2010, and a renewed downturn would result in an even worse recession than the one just ended. Most central banks acknowledge this risk and indicate no hurry to tighten policies. As a result, CAT believes chances of renewed recession next year are low. Caterpillar forecasts an increase in sales and revenues in 2010 of 10 to 25% from the midpoint of the 2009 outlook range. A growing world economy, along with stronger demand for commodities and increased construction spending, will increase end-user demand for machinery. However, the level of recovery anticipated in CAT’s outlook for 2010 is slower than historical precedents. At the midpoint of the outlook range, Engines sales (including turbines) are expected to decline slightly from 2009. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 25 Marcon International, Inc. Tug Boat Market Report – November 2009 Wärtsilä is combining its ship design units into a single entity, to be known as Wärtsilä Ship Design. Units include recently acquired naval architect companies Vik-Sandvik of Norway, Conan Wu & Associates of Singapore and Schiffko of Germany, as well as Wartsila’s conceptual ship design unit in Finland. The new set up will generate a variety of new designs, from simple, low-cost, standard vessels to high-end, ground-breaking tonnage. Wärtsilä expects to increase its share of the ship design market, with the main focus a full design scope approach. “There will be close collaboration between our Ship Design unit, other parts of the Ship Power organization, and other Wärtsilä businesses. Our long term ambition is to create standard proven designs with predefined solutions, and to provide operational services with performance guarantees and fixed prices. This may also include extended services, such as yard selection and supervision support in the construction phase,” says Arne Birkeland, VP, Ship Design, Wärtsilä Ship Power. “We will gradually launch a series of designs developed as a result of the knowledge sharing between the different units, and these will be branded as Wärtsilä Ship Designs,” said Birkeland. “It is our goal to establish Wärtsilä as an independent ship design brand, which will become the customer’s first choice”. The expansion is in line in Wärtsilä’s strategy to strengthen its position as a total solutions provider. One of the first designs to be fully accredited as a Wärtsilä Ship Design is the “W Tug 80”. This is a compact, high performance escort tug of 35m, capable of carrying out ship assist duties at offshore terminals, as well as high-speed escorting, push-pull operations, and coastal towing. The “W Tug 80”, designed for 80 ton bollard pull, can attain a speed of 14.5 knots. Due to its compact size and two Wärtsilä steerable thrusters, the tug is highly maneuverable. The rounded bow profile with moderate flare is optimized for pushing and reduces the risk of slamming. A large skeg, combined with the forward hull shape, results in a steering force of 250 ton during escorting. It is powered by two 8-cylinder in-line Wärtsilä 26 engines, each rated at 2,600kW at 1,000RPM. A modular propulsion concept with various engine arrangements can be configured within the same basic design. The towage and escorting duties are served well with a forward 112T towing/anchor winch. A 91T towing winch is sited aft of the superstructure. The tug can be equipped for fire-fighting duties, and can operate 200 nautical miles from the coastline. Wartsila’s third quarter operating result was € 133 million, 11.4% of net sales. For the review period JanuarySeptember 2009, the operating result before nonrecurring expenses rose to € 419 million. Wärtsilä recognized € 6 million of nonrecurring expenses related to the adjustment measures taken within the Ship Power business in the second quarter. Ship contracting is currently substantially below the high levels of the past years. Despite signs of recovery indicated by fundamentals in the world economy, the shipping industry still faces problems with over supply within major vessel segments. Market activity during recent months has mainly been renegotiations of existing orders. There have been postponements in deliveries of existing vessel orders during the review period. The cancellation rate will probably not reach the level estimated at the beginning of the year but the market will still see considerable rescheduling of orders. Wärtsilä’s market share in medium speed main engines decreased from 40% at the end of the previous quarter to 31%. Market share in low speed main engines increased slightly to 13%. In auxiliary engines the market shares dropped to 4%. Market shares have become more sensitive to individual orders since the total contracting volume is low. Wartsila Group order intake for the third quarter totaled € 725 million, a decrease of 48%. The order intake for Ship Power totaled € 68 million, 85% below the corresponding period last year. During the quarter Wärtsilä Ship Power booked orders in the Merchant and Offshore segments, 49% and 3% of total order intake respectively. Navy orders represented 7% whereas Cruise & Ferry was 18%, Special vessels 17% and Ship design 6%. Third quarter order intake remained at the same level as second quarter ‘09 (€ 67 million second quarter ‘09). Maritime freight rates are still at low levels. The lower new building prices have attracted some owners to contract new vessels. The overall situation is still challenging and it is difficult to judge which direction the markets will take next. Wärtsilä’s activity in many segments of shipping is valuable as the weakness in some segments is likely to continue at least another two years. Despite risk of cancellations and nonrecurring restructuring items booked in the second quarter, the order book for ‘09 should support a 10-20% growth in net sales for ‘09, which would maintain profitability at last year’s good level. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 26 Marcon International, Inc. Tug Boat Market Report – November 2009 GE Transportation of Erie, Pennsylvania, a unit of General Electric, plans to build a stateof-the-art manufacturing plant for advanced storage batteries. The new battery business will be a part of GE Transportation and will serve rail, marine, mining, telecommunications and utility sectors. GE invested more than $150 million to develop advanced battery technologies, including a high energy-density sodium-based chemistry battery that will provide energy storage for a variety applications, including GE Transportation’s ecomaginationSM certified Evolution® Hybrid Locomotive, mining truck drive system and tug electrification. “We are very excited about the breakthrough in battery technology and the new production facility,” said Lorenzo Simonelli, President and CEO of GE Transportation. “This leading commercial-grade battery technology is essential in advancing our hybrid development programs and a vital step in the evolution of high-tech and green transportation solutions.” The new $100 million production facility will be located in upstate New York and will create 350 new manufacturing jobs. New York State partnered with GE in this project by pledging more than $15 million in incentives. GE also is in the process of filing an application for U.S. Department of Energy stimulus funding for this project. The facility, scheduled to be fully operational by mid-2011, will have the advantage of being in close proximity to GE Global Research in Niskayuna, where advances to the battery chemistry were developed. The batteries, which are a critical piece of energy storage systems, will rely heavily on new materials, new manufacturing technologies and intelligent controls. The U.S. Department of Transportation announced 70 grants totaling $98 million in American Recovery & Reinvestment Act (ARRA) funds that will be used to improve small shipyards throughout the U.S. The funds, awarded through the Maritime Administration’s Assistance to Small Shipyards program, will help create and preserve jobs, provide valuable employment training and make much needed improvements to shipyards across the country. The Small Shipyards Grant program provides up to 75% in ARRA funds for a project and requires the remainder be matched by the shipyard. Trinity Industries’ income was $23.2 million for third quarter ‘09. Net income for the same quarter ‘08 was $89.6 million. Results include an after tax charge of $243.3 million in the second quarter for the impairment of goodwill related to its rail businesses. Net income was $91.0 million, excluding the charge for impairment. Net income for the same period in ‘08 was $237.6 million. Revenues for third quarter ‘09 were $557.4 million compared with revenues of $1,154.6 million for the same quarter ‘08. “We continued to improve our liquidity position and strengthen our balance sheet during the third quarter,” said Timothy R. Wallace, Trinity's Chairman, CEO, and President. “Our unrestricted cash balance rose to $545.4 million at the end of the quarter from $440.9 million as of June 30, 2009. Our businesses remained highly focused on obtaining orders that extend their production lines and reducing costs as they right-sized their capacity.” Their Inland Barge Group received orders worth more than $110 million during third quarter ‘09 and had a backlog of approx. $347.7 million as of September 30, 2009 compared to approx. $669.0 million as of September 30, 2008. The Inland Barge Group’s operating profit for the three month period ended September 30, 2009 decreased to $ 26.7 million from $ 29.8 million for the same period last year as a result of fewer barges shipped. Meanwhile, in addition to layoffs in the Rail Group, Trinity is laying off at their Marine Products yard in Madisonville, Louisiana with plans to completely close the yard around end ‘09 after completion of eight barges now under construction. Trinity employs about 235 persons at the yard. Greenbrier, parent company of shipyard Gunderson Marine of Portland, Oregon, reported revenue for the third quarter of $244 million, down $138 million, or 36%, versus prior year's third quarter. Earnings before special impairment charges were $.6 million compared to net earnings of $8.1 million in the prior year's third quarter. Results include pre-tax special charges of $55.7 million ($51.1 million, net of tax) for impairment of a portion of goodwill. Results for the third quarter also include costs of $0.9 million pre-tax, related to severance costs associated with reductions in work force and interest rate swap breakage costs. Marine backlog as of May 31, 2009 was $145 million, compared to $173 million as of February 28, 2009. Approx. $20 million in marine backlog is scheduled for delivery in the remainder of fiscal year 2009. 27 www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. Marcon International, Inc. Tug Boat Market Report – November 2009 Schottel GmbH in Germany has secured the order from STX Europe to deliver the propulsion systems for three icebreaking tugs intended to operate in very shallow waters in the North Caspian Sea. Each tug will be equipped with three electrically driven Rudderpropellers of type SRP 2020 (pull version) especially ice strengthened above the class notation to perform ice milling in 60cm thick ice. The units will have a max. input power of 1,600kW at max. 1,200RPM. Additionally, two Schottel Pump-Jets of type SPJ 132 (550kW) will be installed in the bow of the vessels. Construction contracts for these three tugs, owned by JSC Circle Marine Invest., have been signed by STX Norway Offshore AS, a wholly owned subsidiary of STX Europe. Caspian Offshore Construction in Kazakhstan will operate the vessels which will be delivered in 2010 and 2011 in the Kashagan field of the northern Caspian Sea. "With Caspian Offshore Construction being a new customer to STX Europe, these contracts are of strategic importance to us. The Caspian Sea is of great interest to STX Europe, especially the Northern part where our ice breaking expertise is required" says Roy Reite, President for STX Europe's business area Offshore & Specialized Vessels. The tugs are designed by the STX Europe subsidiary Aker Arctic and will be built in STX RO Offshore Braila SA. They have a length of 65m and a beam of 16.4m and will have the Ice class notification 1A* Super, according to the Finnish-Swedish Ice classification rules. They are intended especially for pushing barges in open water and in ice conditions. The tugs are also intended for ice management operations in astern working mode for ice milling in ice rubbles reaching the sea bottom. Further, the vessels are designed and will be equipped for other operations like fire fighting, rescue operation and towing in shallow waters. Total value of the three contracts amounts to approximately NOK 750 million. "The Caspian icebreaker tugs are based on the first Aker Arctic DAS (TM) icebreakers, having operated for more than 10 years in the Kashagan oil development. They are also showing the good synergies between Aker Arctic and STX Europe", says Mikko Niini, President of Aker Arctic Technology Inc. Voith Turbo Marine has entered into a partnership with Ridderinkhof, manufacturer of winches from the Netherlands. When being quoted for a Voith Turbo propulsion system, customers of escort, terminal and harbor tugs or offshore vessels will also be offered a customized winch system. Voith Turbo Marine Engineering in Rostock has made it its goal to develop and design complete ships. Just recently, Voith presented the concept of a Voith Water Tractor (VWT) with a bollard pull of 70 tons. VWTs with such a high bollard pull are used for terminal, harbor, escort and offshore duties. The worldwide growing market for LNG terminals, which are set up further and further away from coastlines due to safety reasons, is a classic application area for such vessels. At such a distance from the coastline, the sea can be rough in heavy weather conditions, during which the LNG tankers have to be moored safely and reliably at so-called “Jetties”. Tugs take the LNG tankers in tow and maneuver them to the Jetties. To do this, the bollard pull has to be maintained within a certain power range. The Wave Winch from Ridderinkhof is an electrically powered winch system that automatically moves the rope between tug and tanker within this power range. Apart from the electrical driven Wave Winch, Ridderinkhof developed a hydraulically driven version, which is still in test phase. STX Europe AS reported an EBITDA result NOK 96 million for the third quarter of 2009, up from NOK 45 million in the corresponding period last year. Offshore & Specialized Vessels showed continued progress in the quarter with an EBITDA result of NOK 163 million, which was an improvement from the NOK -84 million in the corresponding period last year. During the third quarter STX Europe successfully delivered five vessels reflecting a continuous high level of activity and good operational performance. Order intake in the quarter was NOK 400 million, resulting in an order backlog at the end of the first nine months of 2009 of NOK 28,344 million comprising 54 vessels. The EBITDA margin for Offshore & Specialized Vessels was 5.9 percent for the third quarter of 2009, as compared with -3.1 percent in the same period of 2008 - reflecting improved operations and high activity level. The Norwegian Florø shipyard has a remaining orderbook of two vessels, where the last is scheduled for delivery in March 2010. In order to meet new demand, the yard will undergo restructuring and in the future specialize in service and maintenance of offshore and traditional commercial vessels. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 28 Marcon International, Inc. Tug Boat Market Report – November 2009 As of 31 October 2009, MarineLog and Tim Colton reported 45 tugs on the order books in the U.S. down from 53 in April 2009. Marcon does expect to see some additional orders for multiple tugs being placed in 2010. MarineLog and Colton’s latest breakdown of commercial shipbuilding contracts as of 31 October 2009. Shipbuilder Location Type Customer Yard # or Status Name Description Contract Delivery 5,360-hp 2009 C. & G. Boat Works Bayou La Batre AL Tug Moran Towing C. & G. Boat Works Bayou La Batre AL Tug Crescent Towing 2009 C. & G. Boat Works Bayou La Batre AL Tug Crescent Towing 2010 C. & G. Boat Works Bayou La Batre AL Tug Crescent Towing Chesapeake Shipbuilding Salisbury MD Tug Vane Brothers 93 3,000-hp 2009 Chesapeake Shipbuilding Salisbury MD Tug Vane Brothers 94 3,000-hp 2010 Chesapeake Shipbuilding Salisbury MD Tug Vane Brothers 95 3,000-hp 2010 Chesapeake Shipbuilding Salisbury MD Tug Vane Brothers 96 3,000-hp 2011 Dakota Creek Industries Anacortes WA ATB Tug Crowley Marine Legacy 16,320 hp 10-Nov 2010 Dakota Creek Industries Anacortes WA ATB Tug Crowley Marine Legend 16,320 hp Jun-11 Dakota Creek Industries Anacortes WA ATB Tug Crowley Marine Liberty 16,320 hp 12-Mar Derecktor Connecticut Bridgeport CT Escort Tug Boston Towing 2009 Derecktor Connecticut Bridgeport CT Escort Tug Boston Towing 2009 Eastern Shipbuilding Panama City FL AHT Harvey Gulf Marine Harvey Carrier 260 ft. Eastern Shipbuilding Panama City FL Tug E. N. Bisso Beverly B 96 ft. 2010 Eastern Shipbuilding Panama City FL Tug E. N. Bisso Elizabeth B 96 ft. 2010 Great Lakes Towing Cleveland OH Harbor Tug Tugz International 2,800-hp 2009 Main Iron Works Houma LA Tractor Tug Bisso Towboat 4,000 hp 11-Jun Martinac Shipbuilding Tacoma WA Tug Pacific Tugboat Services 3,620-hp 2009 Martinac Shipbuilding Tacoma WA Tug Pacific Tugboat Services 3,620-hp 2009 Martinac Shipbuilding Tacoma WA Tug Pacific Tugboat Services 3,620-hp 2010 Martinac Shipbuilding Tacoma WA Tug Seaspan International 6,000-hp 2009 Orange Shipbuilding Orange TX Harbor Tug Harbor Fuel Services Patti Shipyard Pensacola FL Tug Corps of Engineers 115 ft. 09-Dec Raymond & Associates Bayou La Batre AL Tug North Bank Towing 6,000 hp 2009 Raymond & Associates Bayou La Batre AL Tug North Bank Towing 6,000 hp 2009 Rozema Boat Works Mount Vernon WA Tug U.S. Navy 1215 65 ft. 09-Dec Rozema Boat Works Mount Vernon WA Tug U.S. Navy 1216 65 ft. 10-Dec SENESCO Kingstown RI ATB Tug Reinauer Transportation 204 884 Valiant 247 Seaspan Resolution Jun-10 2009 Freedom 09-Oct SENESCO Kingstown RI ATB Tug Reinauer Transportation 205 Thoma-Sea Boatbuilders Bourg LA Tug Vane Brothers 138 Patuxent 4,200-hp 10-Feb 2009 Thoma-Sea Boatbuilders Bourg LA Tug Vane Brothers 139 Severn 4,200-hp 2009 Peter F. Gellatly Thoma-Sea Boatbuilders Bourg LA Tug Gellatly & Criscione 141 4,200-hp 2009 Thoma-Sea Shipbuilders Lockport LA Tug Penn Maritime 110 4,000-hp 2009 Thoma-Sea Shipbuilders Lockport LA Tug Penn Maritime 111 4,000-hp 2009 VT Halter Marine Pascagoula MS ATB Tug Crowley Marine 1982 Achievement 9,280 hp 2H 2009 VT Halter Marine Pascagoula MS ATB Tug Crowley Marine 1983 Innovation 9,280 hp 1H 2010 VT Halter Marine Pascagoula MS ATB Tug Crowley Marine 1984 Vision 9,280 hp 2H 2010 Washburn & Doughty East Boothbay ME Tug Moran Towing 95 Catherine C. Moran 5,100 hp 2009 Washburn & Doughty East Boothbay ME Tug Moran Towing 96 Loretta B. Moran 5,100 hp 2009 Washburn & Doughty East Boothbay ME Tug Moran Towing 97 Lizzie B. Moran 5,100 hp 2010 Washburn & Doughty East Boothbay ME Tug Moran Towing 98 Washburn & Doughty East Boothbay ME Tug Suderman & Young Towing Washburn & Doughty East Boothbay ME Tug Bay-Houston Towing Western Towboat Seattle WA Tug Western Towboat 17 www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 5,100 hp 2010 6,000 hp 2010 6,000 hp 2010 4,200 hp 2009 29 Marcon International, Inc. Tug Boat Market Report – November 2009 The Economy and the Towing Industry World Bank economists say such economic vital signs as industrial production, trade, and foreign direct investment are picking up, though they’re at considerably lower levels than before the financial crisis. “Right now, we see this recovery as ongoing, as something that’s actually going to gain steam,” says Andrew Burns, lead economist in the World Bank’s Development Prospects Group. “We’ll start to see in 2010, 2011, growth rates that are lower than we’ve been used to over the last several years but nevertheless fairly steady. We’re looking at something in the range of 5 ½ % for developing countries in 2010.” But the gap between what the world can produce and what it is actually producing is expected to remain very large — about 6% of GDP for developing countries. Moreover, the higher borrowing costs and weakened financial system will likely reduce the long run potential output of developing countries by as much as 4% of their GDP. “That means unemployment is going to be a sustained problem for developing countries and for high-income countries, and it means that many of the very difficult transitions and structural changes that are currently taking place as we adapt to this slower growth and lower level of output will continue for some time,” says Burns. Many countries still feel the pain of the downturn. Developing country growth will probably be less than 2% in 2009, compared with about 8% in 2008. Several countries in Eastern Europe and Central Asia are struggling after being hit “probably worst of all” by the financial crisis. Economic growth across the region is expected to be a negative 6% in 2009, with several countries in the negative 10% range. Official unemployment has increased from 8.5 million to 11.5 million, but the actual number of unemployed may be much higher. Remittances have fallen by double digits, in some countries to half their 2008 levels. Foreign financing has shrunk. Foreign debt, mostly private, is a looming problem for the region. Other regions have also had to deal with more costly credit and shrinking export markets as a result of the financial crisis. Low-income countries are also worried that aid will slow down or go in reverse as donors face their own constraints at home, while the emerging BRIC countries—China, India and Brazil—are concerned about significant declines in their normal export markets, the U.S. and Europe. World trade has recovered a bit from its trough—a 35% decline—last spring. It’s now expected to decline overall by 10% this year. However, a large proportion of the trade recovery has been as a result of fiscal and monetary stimulus and restocking of inventory, says World Bank Trade Director Bernard Hoekman. “As governments start to pull that back, the big question is, is private sector demand going to pick up the slack?” After being hit hard by the global economic slump, Asia is rebounding fast, according to the International Monetary Fund in its “Regional Economic Outlook for the Asia and Pacific Region”. The region is outpacing other parts of the world, with the “green shoots” of recovery appearing earlier and taking firmer root than elsewhere. However Asia’s outlook remains closely tied to the global economy and the key behind Asia’s recovery was bounce back from the sudden stop in global trade and finance at the end-2008. This has fuelled a rapid recovery in exports, boosting industrial production and overall GDP, says the report. IMF forecasts suggest Asia will grow by 5¾ percent in 2010--far higher than the 1¼% predicted for G-7 economies but well short of the 6.6% average recorded for the region over the past decade. Given the region’s heavy dependence on exports, continued weak global demand would have a considerable impact on future growth. “Asia has boomed as America’s consumption outpaced its income. If over the coming decade, US consumption slows markedly, the impact on Asia’s growth could be sizeable,” the report warned. th In a 4 October statement, the IMF noted that countries in the Middle East region have experienced varying repercussions. Growth decelerated across the board, but more sharply in oil producing countries, due to the collapse in oil prices and cutbacks in production. Interlinkages with global financial markets were limited for the most part, but real estate and equity market corrections have exacerbated the downturn in some countries. After slowing to about 2¼% in 2009, growth is expected to pick up in 2010 but will depend on the pace of the global recovery. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 30 Marcon International, Inc. Tug Boat Market Report – November 2009 As far as the towing industry is concerned, it all comes down to trade and how long it will take to break the vicious cycle we are experiencing and get boats back to work. Rising unemployment means less money in circulation to purchase goods & services. While I do not believe in consuming for consuming sake, fewer purchases do lead to a decline in production and transport of raw and finished materials, which ends up with vessels worldwide laid up creating even more layoffs, rippling throughout the cycle once again. In the U.S., a good indicator is the Monthly Tonnage Indicator of cargoes carried on Internal U.S. Waterways. Appropriately 2009 is marked in red. From January through September ‘09, 338.7 million short tons were carried on internal U.S. Waterways, down 8.1% over the same period last year – plus domestic U.S. waterborne traffic was down 6.1% for calendar year ’08 compared to ’07. The U.S. Bureau of Transportation Statistics Freight Transportation Services Index declined in 10 of the past 14 months and in five of the nine months in 2009 despite three small consecutive monthly increases beginning in June. The Freight TSI measures month-to-month changes in freight shipments in ton-miles, combined into one index. The index measures output of the for-hire freight transport industry and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight. The September Freight TSI of 95.7 is a 2.3% increase from a low of 93.5 in May when the index was at its lowest in more than a decade. The unemployment rate in the U.S. rose to 10.2% in October. Nonfarm payroll employment continued a decline with loss of 190,000 more jobs. According to the U.S. Bureau of Labor, number of unemployed increased by 558,000 to 15.7 million as the rate rose to 10.2%, the highest since April 1983. Since the start of the recession in December ‘07, the number of unemployed has risen by 8.2 million, and the rate grown by 5.3%. Long-term unemployed (those jobless for 27 weeks & over) was little changed over the month at 5.6 million. 35.6% of unemployed have been jobless for 27 weeks or more. The civilian labor force participation rate was little changed over the month at 65.1%. The “official” employment-population ratio continued to decline in October, falling to 58.5%. Persons working part time for economic reasons (“involuntary part-time workers”) was little changed at 9.3 million. These individuals were working part time because their hours had been cut or they were unable to find a full-time job. About 2.4 million persons were “marginally attached” to the labor force in October, reflecting an increase of 736,000 from a year earlier. These individuals were not in the labor force, but wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey. Among “marginally attached”, were 808,000 discouraged workers, up from 484,000 a year earlier. Discouraged workers are persons not currently looking for work because they believe no jobs are available. The other 1.6 million persons marginally attached in October had not searched for work in the 4 weeks preceding the survey for reasons such as school or family responsibilities. Regardless of the reason, there are over 27.4 million persons either unemployed, “marginally attached” or “involuntary part time workers” which add up to about 17.8% of the U.S. Civilian labor force. These under- or un-employed people are not spending. About one in every five or six people over 16 years of age you meet on an “average” U.S. street may be under or un-employed. Even though the Dow Jones is happily bouncing around over 10,000 making investors happy, U.S. construction employment decreased by 62,000 in October and U.S. manufacturing continued to shed 61,000 jobs, with losses in durable and nondurable goods production. Employment in transportation and warehousing decreased by 18,000 and we expect layoffs to continue until mid-2010. Until the unemployment problem can be solved, there is no firm foundation for a stable and lasting recovery. There is no such thing as a “jobless recovery”. It is like having all your “bells & whistles” in the pilothouse when a storm at sea approaches and you are relying on the foundation of a rusted out hull below. There is no “quick-fix”. It can only be corrected one job at a time. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 31 Marcon International, Inc. Tug Boat Market Report – November 2009 Global unemployment closely mirrors the U.S. with the European Union (15 countries) reporting 9.3% in September with a number of individual countries, such as Spain and Latvia doubling that with 19.3% and 19.7%, respectively. In a previous market report we reported that France was expected to reach 10% in 2010 with no strong rebound expected soon. It is not quite 2010 yet, and in September, they had already hit 10%. The IMF’s July “World Economic Outlook” forecasts world trade volume (goods & services) to decline 12.2% during 2009 and to only grow by 1% during 2010. This decline in ‘09 and sluggish 1% recovery in 2010 has a major effect on shipping since an estimated 75% of world trade volume of goods is carried by sea. An indication is seen by reviewing throughput at ports and waterways. The European Liners Affairs Association reports that second quarter ‘09 volumes year-over-year for North American European routes were up 5% over the first quarter, but still 22% less than 2008. August was down 7% over July and 16% off the previous year. Containers shipped through the Port of Long Beach declined 21.7% and the grand total of tonnage in and outbound fell 16.5% in September, compared with the same month one year ago. Steel / breakbulk cargoes and lumber, though, showed a positive changes of 28.9% and 1.1%, respectively. Over the same months, total containers handled at the Port of Los Angeles were down 109,332 or 15.78% and it may take several years before they see the levels experienced in ‘06-’07 when 8.4-8.5 million TEUs were handled. Singapore’s container traffic fell 19.1% in September year-on-year and some 130 ships lie idle close off it shore. Total product throughput, including containers, at the Port of Le Havre in France was down 10.5% the first half of ‘09 compared to ’08 and total throughput at the Port of Rotterdam hopefully bottomed out with 185 million tonnes of goods handled in the first half of 2009, down 13.4% over the same period in 2008. Total tonnage through the St. Lawrence Seaway was down 31.7% for the first ten months of ‘09 compared to ‘08 as transits fell from 3.561 to 2,804. Iron ore shipments, continuing to reflect the state of the economy, were down 50.2%. The Seaway from th th Lake Ontario to Montreal is scheduled to close on 29 December and the Welland Canal on 30 December. Moore Stephens’ latest September 2009 “Shipping Confidence Survey Report” indicates an overall continuing rise in confidence in the shipping industry over the last three months. Richard Greiner, Partner, in Moore Stephens’ Shipping Industry Group, reports that on a sale of 1 to 10, overall confidence increased from 5.5 in May to 5.7 in August, although both are significantly lower than recorded in their first survey in May 2008. Owners, managers, charterers and brokers all exhibiting increased confidence with the shipping markets in which they operate. Increased confidence was most marked among brokers, rising from 4.9 to 5.6. The confidence level I reported generally stayed unchanged from the previous survey. After going through many previous ups and downs, I was confident before and still am that things will improve – but it will be a slow recovery and with volatility in the future as long as high unemployment worldwide continues. A number of respondents acknowledged that the start of a recovery was underway, and also recognized the opportunity which currently exists to buy vessels at historically low prices. “The shipping market has started to pick up this year after the effect of the global economic crises,” noted one respondent, while another commented, “The recovery of the global economy will result in strong demand for tonnage as delayed projects get up and running again.” Less optimistic comments included predictions that excessive tonnage oversupply would keep the lid on freight rates, and the catch-all observation, “Hoping for the best, getting ready for the worst.” Another respondent warned, “Because two newbuildings are being delivered for every vessel scrapped, the shipping market will not be able to pick up over the next three-to-four years. And it may deteriorate even further, with a number of owners forced into bankruptcy.” For the third survey in succession, respondents identified demand trends as the single most important factor likely to affect their business performance over the coming year, followed by competition and the cost and availability of finance. On a sale of 1 to 10, the likelihood of businesses making a major investment increased slightly to 5.1 from 5.0 in May and 45% of respondents, including Marcon, expect that finance costs will rise in the next twelve months compared to 46% in May 2009. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 32 Marcon International, Inc. Tug Boat Market Report – November 2009 Bunker Prices Worldwide Tug operators are once again budgeting more for fuel in their cost of doing business – at a time when every dollar counts. MDO (marine diesel) prices were up about US$ 30-40/mt in October compared to the September. If topping off tanks, you will now have to pay abt. $600.50/mt in Houston, $568.00 in Rotterdam and $593.50 in Singapore which is still much better than the peak during Summer 2008. Kirby Corp. of Houston, Texas reported paying an average of $1.89/gal. for their 215 towboats operating on U.S. inland waterways during third quarter 2009 vs. $3.99 during third quarter ’08, but prices are edging up. I doubt that we will see MDO again selling for US$ 1,200/mt in either 2009 or 2010, but it is anyone’s guess after that. A lot may depend more on the strength, or weakness, of the U.S. dollar than any major improvement in economic conditions or changes in supply and demand. According to the International Energy Agency th 9 October “Oil Market Report”, benchmark crude oil prices waxed and waned throughout September but continued to trade in the relatively narrow $65‐$75/bbl range seen over the past three months. Growing concerns over mounting distillate stocks and worries about the pace and depth of a global economic recovery added a downward bias, with prices ending lower by $1.65‐$4.90/bbl for the month. Oil prices tracked the upward swings in financial markets over the month but were frequently knocked off their perch by negative economic developments, including worsening unemployment data, and continued lackluster industrial and transportation. Full report is available on IEA’s website. The U.S. Energy Information Administration, in their November “Short-Term Energy Outlook” raised the forecast price of West Texas Intermediate (WTI) crude oil by $7 per barrel compared with the last Outlook, to average about $77/bbl this winter (October-March). The forecast for monthly average WTI prices rises to about $81/bbl by December 2010, assuming U.S. and world economic conditions continue to improve, particularly in Asia, where current growth has been stronger than expected. Sustained economic growth in China and other Asian countries is contributing to the beginnings of a rebound in world oil consumption, leading EIA to revise its expectations for world oil consumption upwards for the second consecutive month, with consumption growth increased by 0.15 million barrels per day (bbl/d) for both 2009 and 2010. China and other Asian countries outside of the OECD continue to lead a global economic and oil market turnaround. Although EIA expects oil consumption by OECD members to continue to show year-over-year declines for the fourth quarter of 2009, oil demand growth in the non-OECD countries during this period is expected to more than offset these losses, leading to the first growth in global oil consumption in 5 quarters. WTI oil futures prices for the December 2009 contract averaged $76/bbl in October on the New York Mercantile Exchange, almost $6/bbl above the prior month’s average for that contract. This was an increase of just over 8% for the month, with expectations of an economic recovery and higher oil consumption offsetting concerns about current high oil inventories. Expected price volatility in the crude oil markets has declined since last month’s Outlook, indicating the markets were slightly more comfortable with news of an economic turnaround led by Asia. For the 5 days ending November 5, the January 2010 WTI futures contract prices averaged just under $80/bbl. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 33 Marcon International, Inc. Tug Boat Market Report – November 2009 Recent News – North America Foss Maritime of Seattle, WA pioneered a new commercial route deep into Canada on the Columbia River in August, navigating through strong currents and shallow water to deliver a new 190-ton turbine for British Columbia’s largest hydro-electric dam. In 2002, Foss became the first to use the upper Columbia for commercial navigation by towing a 135-ton turbine from Coulee City to Trail, B.C. just north of the border. This summer’s trip was about 155 miles farther upriver. The voyage took a small convoy up Lake Roosevelt and then through the river to Northport. After crossing the border, the boats passed Waneta Dam, where the Pend Oreille river flows into the Columbia, then traveled stretches of the narrow river below, between and above the Arrow Lakes before arriving in Shelter Bay, where the turbine was unloaded at a ferry landing. Capt. Ed Haglund, former Foss manager in Coeur d’Alene, Idaho, oversaw the marine side of the operation. With Capt. Sam Landrum, also a former Foss Coeur d’Alene hand, Haglund made about 10 trips upriver to scout the route over the last four years. During this summer’s trip, Haglund said the former Foss tugs “Cougar” and “Pine Cat, now owned by him and Landrum, and the tug “River Chief”, owned by Columbia Navigation in Kettle Falls, fought through currents and rapids running up to 10 knots. Tug skippers were in direct communication with B.C. Hydro representatives, who made the trip possible by regulating the flow of water through three dams above several critical areas to manipulate and minimize currents. In one section of fast water just north of the border near Trail, Haglund said the speed on his tug went to zero. “We were wondering there for a minute, but we twisted the barge back and forth up through the rapid, and with all the boats and thrusters running full bore, we made her through.” Farther north, near Rock Island, the convoy hit a back eddy that carried them upstream at about eight knots over the bottom. “And as soon as you hit the current again, you have to put the coals to her,” Haglund declared. Later, B.C. Hydro helped the group through Tin Cup Rapids by increasing the flow of the Kootenay River. The Kootenay flows into the Columbia slightly downstream from the rapids, and increasing its volume had the effect of creating a dam, both deepening the water in the rapids and slowing it down. The journey into Canada was the last leg of a long trip for the turbine. It was manufactured in Brazil and arrived by ship in Vancouver, Wash., and Foss towed it aboard the barge “185 C-3” to Pasco with the tug “Lewiston”. From there, a Prime Mover moved it over land to Coulee City. Constellation Maritime, Foss’ Boston-based subsidiary assisted with construction of the second LNG terminal to be built off the Massachusetts coast in the last three years. The terminal under construction ten miles offshore is known as the Neptune Project. It is not far from another LNG mooring site, the Northeast Gateway Energy Bridge, which Constellation also helped build in ‘07. Customer for both jobs was Norway-based Advanced Production & Loading (APL), which markets and installs the buoy and anchoring systems used to moor the ships and offload product. Beginning in late June, Constellation used the conventional powered tug “Volans”, to make 16 trips to the site 20 miles from the company base to assist APL in attaching chains to sixteen anchors in about 200’ of water. The “suction anchors” weighing as much as 400 tons are inverted cans. After placement, a partial vacuum is created to pull them into the bottom mud. In mid-July, Constellation assigned tractor tugs “Leo” and “Orion” to help APL connect the first of the two 200-ton buoys, which look like space capsules, to its anchors. The heavy lift ship “Normand Clipper” placed the buoy in the water and handed off four 7” wires to each tug. The tugs held the wires in place while APL used a ROV to attach the wires to the anchor chains on the bottom. This was the first time APL has used a submersible to connect the cables to the anchors on the sea floor. In ‘07, they made the connection on the deck and lowered the whole thing to the bottom. Each tug was equipped with a steel structure to secure spreader bars holding the wires. The structures were designed and fabricated for the 2007 Gateway Energy Bridge project. “Leo” is a Dolphin-Class tug that had been under charter to Signet Maritime on the Gulf of Mexico. The charter agreement ended just in time for the tug to participate in the Neptune Project. The Neptune project is designed to accept specially built LNG ships called shuttle and regasification vessels. The submerged buoy is raised into the bottom of the tanker and serves both as an anchor and a conduit for gas to enter the sub-sea pipeline. LNG is re-gasified on board the ships before being injected through the terminal buoy into a 13-mile, 24” sub-sea pipeline built in 2008. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 34 Marcon International, Inc. Tug Boat Market Report – November 2009 The Foss team at the Red Dog Mine, in Alaska 106 miles above the Arctic Circle, is on track for a productive season. The weather has not been perfect, but by mid-August allowed the four tugs and two 275’ x 76’ specialized ore lightering barges to move 708,262 tons. Foss is in its th 20 season lightering the ore using the barges “Noatak” and “Kivalina” and the four tugs “Stacey Foss”, “Sandra Foss”, “Iver Foss” and “Jeffrey Foss” to transfer the ore from the mine’s shallow-water port to about 22 – 25 bulk carriers anchored offshore in deeper water. The estimated total for the season is 1,360,500 tons, which will not be a record but is the mine’s total annual production for 2009. The Red Dog Mine, in operation since 1989, is the world’s largest producer of zinc concentrate. After a 66-year career, the 522’ x 71.5’ x 24’ decommissioned ship “Hoyt S. Vandenberg” was sunk off the Florida Keys to create a new artificial reef. The “Vandenberg” had been a troop ship, a missile tracker, and even a featured player in a Hollywood movie. The ship was towed from Colonna's Shipyard in Norfolk, Virginia to Key West, Florida by Smith Maritime’s U.S. flag, 86’ x 41’, 4,350BHP triple screw tug “Elsbeth III” the end of April. Once in Key West, the ship sat for a month alongside the inner mole while final preparations were made for the sinking including cutting holes in the hull, placing the shaped explosive charges and rigging the anchor and chain to be deployed as a fivepoint mooring at the sink site. As Smith’s “Elsbeth III” was required to mobilize to Ensenada, Mexico for another tow, the 6,000HP, 110’ x 41’, triple screw “Elsbeth II” picked up the “Vandenberg” and towed her to the site of her sinking off of Florida. On May 27, just before 10:30 a.m. EDT, the "Vandenberg” literally settled into a new career as an artificial reef in the Florida Keys National Marine Sanctuary about seven miles south of Key West. Explosive charges set on the ship worked perfectly, and the ship sank upright to the bottom in less than two minutes. Divers soon reported within an hour that the new artificial reef was already attracting fish. The steamturbine driven “Vandenberg” had been donated by the U.S. Maritime Administration, which also contributed another $1.25 million to the project to prepare the vessel for reefing. The project required about $8.6 million and took almost exactly 13 years to complete from the time Key West resident Capt. Joe Weatherby picked the “Vandenberg” from a list of 400 ex-military ships to be reefed. Artificial reefs attract fish and sea life, which in turn attract divers. The artificial reef created by the sinking of the “Vandenberg” is also expected to help protect the fragile natural reefs off the Florida Keys. Weatherby, speaking to reporters soon after the sinking, said, "We hit a home run today. Everything was perfect." He estimated that the new artificial reef would generate $10-12 million a year for the economy of Key West, as well as creating 125 new jobs. The Florida Keys now have an arc of artificial reefs and shipwrecks running from Key Largo to Key West. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 35 Marcon International, Inc. Tug Boat Market Report – November 2009 Crowley Maritime tugboats used for ship assist and escort operations in the Port of Los Angeles have begun using newly installed shore-side electrical power when not on the job to cut fuel consumption and reduce carbon dioxide emissions. Previously, the tugs tied up at the dock needed to run their generators to provide electrical power. Crowley and the Port of Los Angeles completed this environmentally friendly initiative, also known as cold ironing, at Berth 86 this month. The port paid to run electrical power to the dock, and Crowley purchased and installed the electrical connections to the boats and transformers to take the voltage from 440 volts to 220 volts. Overall, Crowley expects to conserve fuel used by the generators daily in its Los Angeles operations, and consequently reduce carbon dioxide emissions by more than 486,180 pounds in the first year. According to the U.S. Environmental Protection Agency, each gallon of diesel fuel produces approximately 22.2 pounds of carbon dioxide emissions. Crowley already has cold ironing capabilities in Seattle, Jacksonville, Pennsauken and Puerto Rico. "We are very pleased to be a part of this important green initiative with the Port of Los Angeles," said Frosty Leonard, Crowley director of marine operations in California. "Using shore-side power is not only the environmentally friendly thing to do, it's just good business." As an added benefit, Leonard said shore-side power eliminates the constant noise from the engines that disrupts the crews' rest periods and provides engineers a quieter engine room in which to work. Hornbeck Offshore Services’ third quarter 2009 revenues decreased 17.4% to $90.1 million compared to $109.1 million for third quarter 2008. Operating income was $27.1 million, or 30.1% of revenues, for third quarter 2009 compared to $52.6 million, or 48.2% of revenues, for the prior-year quarter. Net income was $13.8 million, compared to $33.3 million for the year-ago quarter. The decrease was primarily due to a year-over-year decline in fleetwide average dayrates and utilization for Hornbeck's Upstream segment. Revenues from the Downstream segment of $16.4 million for third quarter 2009 decreased by $4.6 million, or 21.9%, compared to $21.0 million for the same period in 2008. Downstream revenues were unfavorably impacted by continued lower demand for Hornbeck's ocean-going tug and tank barge equipment, which was primarily driven by soft market conditions that resulted in stacking of all single-hulled tank barges on various dates since second quarter 2008. This decrease was partially offset by a $5.4 million contract cancellation payment recognized during the third quarter. Hornbeck's double-hulled tank barge average dayrates were $28,503 for third quarter 2009 compared to $22,642 for the same period in 2008. Excluding the contract cancellation fee revenue, double-hulled tank barge average dayrates would have been $18,852, which is roughly $3,790, or 16.7%, lower than the prior-year quarter. Utilization for the double-hull barge fleet was 67.6% for third quarter 2009 compared to 80.2% for the same period in 2008. The decrease in utilization was the result of the continued decline in market demand for double-hull equipment, particularly black-oil barges, driven by the current economic slowdown. This adverse effect of soft demand has been further exacerbated by incremental double-hull tank barge newbuild deliveries in the industry during the first nine months of 2009. In recognition of its actual results for the first nine months of ‘09 and its revised outlook on prevailing market conditions for the remainder of the ‘09 guidance period, Hornbeck now expects total EBITDA for the full-year 2009 to range between $185.0 million and $200.0 million. Hornbeck's forward earnings guidance assumes that current Upstream and Downstream market conditions remain constant. The 2009 Downstream guidance reflects an operating fleet comprised solely of nine double-hull tank barges and nine ocean tugs for the remainder of 2009. No. Tank Barges Fleet Cap. (bbl) Barge Size (bbl) Utilization Avg. Dayrate 30-Sep 9 884.6 98,291 67.60% $28,503 Hornbeck Tug & Tank Barge Quarterly Utilization and Day Rates 2009 2008 30-Jun 31-Mar 31-Dec 30-Sep 30-Jun 31-Mar 19.8 20 21 21 21 20.3 1,616.0 1,633.4 1,745.3 1,745.3 1,745.3 1,696.2 81,430 81,671 83,107 83,107 83,107 83,436 44.30% 56.70% 59.40% 53.70% 61.30% 85.60% $17,784 $18,695 $18,507 $20,283 $21,789 $19,059 31-Dec 19.5 1,647.4 83,787 87.10% $18,455 2007 30-Sep 18.4 1,573.4 84,332 91.00% $18,430 30-Jun 18 1,549.6 86,067 90.90% $17,772 Note: As of 9/30/09, above only includes the double-hulled tank barges. All single-hulled tank barges have been stacked and excluded from above computations. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 36 Marcon International, Inc. Tug Boat Market Report – November 2009 Kirby Corporation announced net earnings for the third quarter ended September 30, 2009 of $35.0 million, compared with net earnings of $41.8 million for the 2008 third quarter which included the impact of Hurricanes Gustav and Ike. Consolidated revenues for the 2009 third quarter were $272.2 million compared with $354.6 million reported for the 2008 third quarter. Joe Pyne, Kirby’s President and CEO, commented, “Despite a challenging economic environment, Kirby was able to perform well during the third quarter. While demand remained below prior year levels, we continued to see some improvement in Midwest petrochemical demand, driven by inventory rebuilding, and stable demand in the majority of our other markets. Unfortunately, lower industry barge utilization has kept pressure on barging rates and our revenues and operating results remain below prior year levels. Our diesel engine services segment’s marine and railroad service levels and direct parts sales were all under prior year levels due to weak transportation and offshore oil services markets, which encourage our customers to defer maintenance when they can. We intend to continue aggressively pursuing costs which can be removed from our businesses while remaining focused on our service levels and safety performance.” Marine transportation revenues and operating income for the 2009 third quarter decreased 21% and 11%, respectively, compared with the 2008 third quarter, a reflection of reduced demand across all four marine transportation markets, lower pricing, and lower diesel fuel costs associated with the pass through of diesel fuel to customers through fuel escalation and de-escalation clauses in term contracts. Operating conditions were favorable for the quarter with a 52% reduction in delay days when compared with the 2008 third quarter, which included delay days from Hurricanes Gustav and Ike. Petrochemical demand of more finished products into the Midwest continued to modestly improve and demand along the Gulf Coast stabilized when compared with the 2009 first half. Black oil and refined products demand was stable, but remained well below prior year levels. Agricultural chemical demand also remained weak as the fall Midwest inventory fill was well below prior year levels. The number of time charters, or day rate contracts, continued to decline during the quarter as customers returned equipment they did not need or became comfortable that their requirements could be filled in the spot market. The segment continued to downsize its towboat fleet during the 2009 third quarter, operating an average of 215 towboats compared with 255 operated during the 2008 third quarter, releasing chartered towboats and laying up Kirby owned towboats to balance its horsepower requirements with volume demand. Going forward, Kirby will continue to monitor its towboat requirements and downsize or increase its towboat fleet as market changes warrant. The marine transportation operating margin improved to 25.3% for the 2009 third quarter compared with 22.7% for the 2008 third quarter. The higher operating margin reflected lower fuel costs, the positive impact of the 2009 first quarter early retirements and staff reductions, more efficient operations at lower utilization rates, a continued reduction of the number of charter and Kirby owned towboats operated, lower insurance claim losses, and better weather and operating conditions compared with the 2008 corresponding period. For 2010, Kirby plans to take advantage of attractive construction prices for tank barges and build fifty 10,000bbl and five 30,000bbl tank barges. In early 2010, Kirby will take delivery of three tank barges that were delayed from 2009 and three towboats. New construction cost for 2010 is anticipated to total approx. $60 million. Kirby anticipates it will retire approximately 90 barges during 2009 and for 2010, based on current market demand, anticipates that retirements will exceed new construction capacity. Kirby will continue to review its overall capacity levels and make adjustments as the markets dictate. Commenting on the 2009 fourth quarter market conditions and guidance, Mr. Pyne said, “For the 2009 fourth quarter, our earnings guidance is $.57 to $.62 per share compared with $.72 per share for the 2008 fourth quarter. For the 2009 year, we are lowering our guidance to $2.37 to $2.42 per share compared with net earnings for the 2008 year of $2.91 per share. Our fourth quarter guidance reflects continued pressure on barge transportation rates and an increase in weather delay days associated with the fall and early winter season. We anticipate our diesel engine services business will continue to face challenges for the balance of 2009 as customers continue to defer maintenance due to reduced utilization of their equipment; however, we do believe we are near the bottom of this market and look for improved market conditions in 2010. Additionally, our petrochemical and refining customers appear to be more optimistic in their 2010 outlook.” Kirby Corporation, based in Houston, Texas, operates inland tank barges and towing vessels, transporting petrochemicals, black oil products, refined petroleum products and agricultural chemicals throughout the United States inland waterway system. Kirby also owns and operates four ocean-going barge and tug units transporting dry-bulk commodities in United States coastwise trade. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 37 Marcon International, Inc. Tug Boat Market Report – November 2009 K-Sea Transportation Partners L.P. announced operating results for its first fiscal quarter ended September 30, 2009. K-Sea reported an operating loss of $1.3 million, including an asset impairment charge of $5.9 million. Operating income, before asset impairment charges, was $4.6 million, a decrease of $5.3 million, or 54%, compared to the first fiscal quarter ended September 30, 2008. EBITDA for the first quarter of fiscal 2010 was $18.2 million, a decrease of $4.5 million, or 20%, compared to $22.7 million in the same quarter last year. President and CEO Timothy J. Casey said, “Upon management’s recommendation, our Board determined that our quarterly distribution would be $0.45 per unit based upon our operating results for the first fiscal quarter and our expectation that current market conditions may prevail for at least the next several quarters. The absence of any meaningful recovery in petroleum demand is causing further reductions in refinery utilization and thus further reductions in waterborne product movements, including a reduction in the number of new term charters. Single-hulled tonnage continues to be available at lower rates than in the same period last year for our barges that are not operating on period charters. We believe that the single-hulls, which are mandated to be phased out by 2014, are now commercially obsolete as customers are unwilling to accept this equipment, in light of the availability of double-hulled vessels…. Given the current and expected market conditions, we expect to phase out our single-hulls in the near-term. Our depreciation and amortization expense in the first fiscal quarter includes an asset impairment charge of $5.9 million in respect of our single-hull equipment. The early phase-out will result in a reduction of $1.4 million per year in our provision for maintenance capital expenditures and should therefore increase our annual distributable cash flow…. We remain optimistic about the long-term prospects for our Company. We mentioned this in August, but we want to stress again where K-Sea stands in the market for waterborne transportation of refined petroleum products. We focus on transporting cargoes in the range of 20,000 to 150,000 barrels; 28% of this capacity are single-hull units. As mentioned earlier, there has been a noticeable trend for customers to increasingly prefer double-hull units over single-hulls. If all barges currently contracted to be constructed are in fact built and placed into service, and if all existing single-hulls are removed from service, total capacity in this size range would decline by approximately 18%. As the largest operator of barges in this size range, our market position would be enhanced. Thus, we believe our modern fleet, broad geographic presence, blue chip customer base and team of highly skilled employees will enable K-Sea to emerge from the current economic downturn in an even stronger position in our market…. Regardless of the timing of the recovery in our markets, our results in our fourth fiscal quarter ending June 30, 2010 will reflect a positive impact of the upcoming delivery of our final two incremental newbuildings, the ‘DBL 185’ and the ‘DBL 106’. Both units will operate under longterm charters already fixed on terms that will be accretive to our results.” K-Sea Transportation Quarterly Supplemental Operating Statistics 2009 30-Sep Local Trade Avg. Daily Rate Net Utilization Coastwise Trade Avg. Daily Rate Net Utilization Total Fleet Avg. Daily Rate Net Utilization 30-Jun 2008 31-Mar 31-Dec 2007 30-Sep 30-Jun 31-Mar 31-Dec 30-Sep 30-Jun 31-Mar $7,210 80% $7,294 77% $8,067 80% $7,493 83% $7,219 81% $7,439 82% $7,185 81% $6,759 81% $6,904 76% $7,122 76% $6,765 82% $12,509 89% $13,862 85% $13,865 85% $13,151 91% $13,027 89% $14,129 88% $13,784 82% $13,556 89% $13,427 91% $13,048 87% $12,772 90% $10,791 $11,740 $11,979 $11,334 $11,093 $11,784 $11,399 $11,225 $10,902 $10,615 $10,226 86% 82% 84% 88% 87% 85% 81% 86% 85% 82% 87% For the three months ended September 30, 2009, K-Sea reported an operating loss of $1.3 million, a decrease of $11.2 million compared to $9.9 million of operating income for the three months ended September 30, 2008. The operating loss resulted from a $5.9 million asset impairment charge on its single-hull vessels. EBITDA decreased by $4.5 million, or 20%, to $18.2 million for the three months ended September 30, 2009, compared to $22.7 million for the three months ended September 30, 2008. The decrease in EBITDA resulted from a $5.2 million decrease in net voyage revenue, which is attributable to fewer working days for K-Sea’s single-hull vessels and a reduction in its average daily rate due to operating certain of its vessels, mainly single-hulls, under storage contracts in its waste water treatment facility at lower rates. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 38 Marcon International, Inc. Tug Boat Market Report – November 2009 Due to customer preference for double-hull vessels, K-Sea has taken a number of its single-hull vessels out of the market and have either retired or sold them, or utilized them as storage vessels. Additionally, other revenue decreased by $2.7 million mainly due to the expiration of time charter contracts on tugboats acquired in June 2008 and the current soft market to utilize those vessels, and the recognition of a $0.5 million gain in the first quarter of fiscal 2008 on the settlement of an early termination of a charter contract. This decrease was partially offset by a $1.6 million reduction in vessel operating expenses and a $1.0 million reduction in general and administrative expenses, substantially as a result of cost reduction efforts K-Sea implemented. Net loss for the three months ended September 30, 2009 was $5.2 million, a decrease of $9.1 million compared to net income of $3.9 million for the three months ended September 30, 2008. The decrease was primarily a result of the $4.5 million decrease in EBITDA and a $6.1 million increase in depreciation and amortization expense, offset by a $1.7 decrease in interest expense due to lower average debt balances and interest rates compared to the first quarter of fiscal 2008. Mr. Casey stated, “we are disappointed with our first quarter results and lower distribution rate. In response to an unexpected decrease in demand, and in addition to our constant focus on maximizing utilization and rates for our assets, we have stepped up our efforts to minimize costs and capital expenditures, without compromising the quality of service we deliver to our customers or the safety of our employees and the environment.” Reductions in refinery utilization, which worsened in the month of September with announced shutdowns, have adversely affected the demand for K-Sea’s tank vessels and charter rates as reflected by the reduced renewals of existing term charters and lower spot market rates. As is typical of its business, during the past several months longterm charters on 14% of its fleet's capacity expired. Despite ongoing negotiations with customers K-Sea was unable to obtain additional long-term charters, resulting in such vessels moving to the spot market. An increased availability of vessels in the spot market, combined with the aforementioned refinery shutdown announcements, has made it apparent that the reduced revenues experienced in the first quarter may continue in the near term. An additional 28% of K-Sea’s capacity has long-term charters that are due for renewal or extension over the remaining three quarters of fiscal 2010. A continuing or further economic downturn could negatively affect the terms or likelihood of charter renewals, ultimately resulting in the vessels operating in the spot market. The extent of such weakened demand and how long it may last is unknown. If K-Sea is unable to obtain additional long-term charters at acceptable rates, or if more of its vessels operate in the spot market, revenues may be reduced or subject to greater variability. It should be noted that K-Sea will be commencing operations of two new build vessels in December 2009 and May 2010 that are already chartered under seven year contracts. Seacor Holdings Inc. announced net income for the quarter ended September 30, 2009 was $26.3 million on operating revenues of $446.1 million. For the nine months ended September 30, 2009, net income attributable to SEACOR Holdings Inc. was $121.6 million on operating revenues of $1,234.8 million. For the quarter ended September 30, 2008, net income attributable to Seacor Holdings Inc. was $74.3 million on operating revenues of $437.6 million. For the nine months ended September 30, 2008, net income attributable to Seacor Holdings Inc. was $148.1 million on operating revenues of $1,201.0 million. Operating income for Seacor’s Harbor and Offshore Towing Services in the third quarter was $2.0 million on operating revenues of $15.6 million compared with operating income of $3.2 million on operating revenues of $16.2 million in the preceding quarter. The reduction in operating income was primarily due to fewer harbor jobs and higher drydocking and mobilization expenditures. Seacor's unfunded capital commitments as of September 30, 2009 consisted primarily of offshore marine vessels, helicopters, inland river dry cargo barges and an inland river towboat and totaled $123.1 million, of which $53.1 million is payable during 2009 and the balance payable through 2011. Of the total unfunded capital commitments, $20.7 million may be terminated without further liability other than the payment of liquidated damages of $3.0 million in the aggregate. As of September 30, 2009, Seacor held balances of cash, cash equivalents, restricted cash, marketable securities, construction reserve funds and title XI reserve funds totaling $993.2 million. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 39 Marcon International, Inc. Tug Boat Market Report – November 2009 Tidewater Inc. of New Orleans announced their second quarter net earnings for the period ended September 30, 2009, of $98.2 million on revenues of $295.5 million. Included in net earnings for the September 30, 2009 quarter is a $34.3 million tax benefit resulting from a favorable resolution of tax litigation. For the same quarter last year, net earnings were $95.4 million on revenues of $346.8 million. The immediately preceding quarter ended June 30, 2009, had net earnings of $44.5 million on revenues of $ 326.6 million. Included in net earnings for the June 30, 2009 quarter was a noncash charge totaling $48.6 million ($47.7 million after tax) related to the company’s Venezuelan operations. As a result of the seizure of vessels and certain other assets during the June quarter in Venezuela pursuant to a May 2009 Venezuelan law and the continued nonpayment of outstanding receivables from Petroleos de Venezuela, S.A. (PDVSA) and an affiliate of PDVSA, Tidewater recorded in the June 2009 quarter a $3.8 million charge equal to the net book value of the assets seized and a $44.8 million provision to fully reserve accounts receivable due from PDVSA-related entities. International-based vessel revenues decreased 11% or $32.7 million during the quarter ended September 30, 2009, respectively, as compared to the same period in fiscal 2009, primarily due to an approximate five percentage point decrease in total utilization rates on vessels operating in international markets. This trend generally reflects weaker demand for Tidewater’s vessels. For the same comparative period, average international day rates increased approximately 1% in part reflecting a change in the mix of vessels operating during the quarter ended September 30, 2009, as compared to the same period in fiscal 2009. In particular, leading edge day rates are generally declining across vessel classes; however, the impact of this decline on average day rate statistics is mitigated by Tidewater’s stacking of traditional vessels, which generally realize lower day rates than newer vessels. Additionally, Tidewater’s revenues decreased during the comparative periods because of the loss of revenue from its Venezuelan operations. During the quarter ended September 30, 2009, Tidewater’s Venezuelan operations contributed $0.6 million of revenues as compared to $16.2 million of revenues contributed during the quarter ended September 30, 2008. Quarterly Utilization and Average Day Rates for Tidewater Inc. 30-Sep 2009 30-Jun 31-Mar 31-Dec 30-Sep 30-Jun 31-Mar 31-Dec 2007 30-Sep 30-Jun Utilization Domestic Towing/Supply 32.20% 39.40% 42.30% 49.00% 48.00% 49.80% 46.20% 46.10% 56.60% 61.00% International Towing/Supply Offshore Tugs 71.10% 60.40% 74.10% 54.20% 74.60% 66.80% 76.00% 65.20% 75.70% 60.40% 77.20% 53.40% 76.70% 56.70% 79.20% 54.70% 76.90% 59.80% 77.40% 63.40% $9,623 $10,071 $12,402 $13,947 $12,867 $11,633 $9,863 $10,399 $11,856 $11,951 $12,428 $7,059 $12,518 $7,744 $12,787 $8,457 $12,745 $8,149 $12,375 $8,302 $11,660 $8,931 $11,117 $7,413 $10,455 $7,092 $10,080 $6,511 $9,478 $7,044 26 26 26 32 33 34 33 34 35 38 208 24 217 28 230 30 224 32 224 33 226 36 229 36 225 37 221 38 218 37 Avg. Day Rates Domestic Towing/Supply International Towing/Supply Offshore Tugs No. Vessels Domestic Towing/Supply International Towing/Supply Offshore Tugs 2008 Tidewater continued stacking and removing from its international-based active fleet vessels that could not find attractive charter hire contracts. At the beginning of the current fiscal year, Tidewater had 46 international-based stacked vessels. During the first half of fiscal 2010, Tidewater stacked 23 additional vessels, sold 19 vessels from the previously stacked vessel fleet, and returned to international service one vessel for a total of 49 international-based stacked vessels as of September 30, 2009. The stacked international-based vessels depressed international utilization rates during the comparative periods because the stacked vessels are considered available to work, and as such, are included in the calculation of utilization rates. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 40 Marcon International, Inc. Tug Boat Market Report – November 2009 Tidewater’s international-based offshore tugs had a decrease in revenues of approximately 38% or $5.7 million during the quarter ended September 30, 2009, as compared to the same period in fiscal 2009, due to an approximate 15% decrease in average day rates and a decrease in the number of offshore tugs operating in the international market because of vessel sales and the seizing of vessels by the Venezuelan government. Utilization rates on this same class of vessels, during the quarter ended September 30, 2009, were comparable to the utilization rates during the same period in fiscal 2009. Revenues on the offshore tugs decreased approximately 12%, or $1.2 million, during the quarter ended September 30, 2009 as compared to the quarter ended June 30, 2009, due to a 9% decrease in average day rates and three fewer offshore tug vessels operating in the international market during the current quarter due to vessel sales and the seizing of one vessel by the Venezuelan government. In response to the deteriorating Gulf of Mexico market conditions, Tidewater continued stacking and removing from its active fleet those vessels that could not find attractive charter hire contracts. At the beginning of the current fiscal year, the U.S. Gulf of Mexico had 15 stacked vessels. During the first half of fiscal 2010, Tidewater stacked 10 additional vessels and sold four vessels from the previously stacked vessel fleet for a total of 21 U.S.-based stacked vessels as of September 30, 2009. The depressed utilization rates in the current quarter and six- month period are reflective of the reduced demand for vessels in the U.S. Gulf of Mexico and the stacking of additional vessels. Tidewater’s U.S.-based towing supply/supply class of vessels had a decrease in revenue of approx. $11.3 million or 61% during the quarter ended September 30, 2009, as compared to the same period in fiscal 2009, due to an approximate 16 percentage point decrease in utilization rates and to an approx. 25% decrease in average day rates due to the transfer of vessels to international markets, vessel sales and weaker demand for Tidewater’s vessels in the U.S. GOM market. Revenues on Tidewater’s active U.S.-based towing supply/supply class of vessels decreased approximately $2.2 million, or 23%, during the quarter ended September 30, 2009 as compared to the quarter ended June 30, 2009, due to an approx. 4% decrease in average day rates and an approximate seven percentage point drop in utilization rates. U.S.-based operating profit decreased approximately $8.7 million or 88% during the quarter ended September 30, 2009, as compared to the same period during fiscal 2009, primarily due to lower revenues. Reductions in revenues were somewhat offset by an approximate 35% or $7.9 million decrease in vessel operating costs (primarily crew costs) during the comparative period and an approximate $1.4 million or 35% decrease in depreciation expense resulting from fewer vessels operating in the U.S. GOM market during the comparative period. Crew costs decreased approximately 44% or $6.5 million during the comparative period, due to the transfer of vessels to international markets, reductions in crew personnel and wage reductions on crews staffing the remaining active vessels. During the first half of fiscal 2010, Tidewater sold to third party operators or to scrap dealers 19 anchor handling towing supply vessels, 13 platform supply vessels, three crewboats and two offshore tugs. Four of the 37 vessels were sold from the U.S. GOM vessel fleet while 30 were sold from the international fleet. The remaining three vessels were sold from vessels previously withdrawn from service. Thirty-one vessels were sold to unaffiliated third-parties and six of the platform supply vessels were sold and leased back by subsidiaries of Tidewater during fiscal 2010. Also during the first half of fiscal of fiscal 2010, 15 of Tidewater’s vessels were nationalized by the Venezuelan government. During the first half of fiscal 2010, Tidewater took delivery of seven AHTSs, five PSVs, one crewboat and one offshore tug. The AHTS vessels were constructed at four different international shipyards for a total approx. cost of $137.3 million and varied in size from 5,001 to 15,000BHP. Four of the platform supply vessels are 240’, deepwater class vessels, while one platform supply vessel is a 230’ towing supply class vessel. The five PSVs were constructed at three different international shipyards for a total approx. cost of $96.3 million. The crewboat was constructed at an international shipyard and had a total approx. cost of $1.8 million. The offshore tug, which had a total approx. cost of $14.0 million, was also constructed at an international shipyard. At September 30, 2009, Tidewater is constructing 13 anchor handling towing supply vessels, varying in size from 5, to 13,600BHP, for a total capital commitment of approximately $248.0 million. Four different international shipyards are constructing the vessels. Two of the AHTS vessels are large, deepwater class vessels. Scheduled deliveries for the 13 vessels began in October 2009, with the last vessel scheduled for delivery in January 2012. As of September 30, 2009, Tidewater had expended $92.5 million for construction of these vessels. Tidewater is also committed to construction of one offshore tug for an aggregate cost of approx. $14.1 million. The offshore tug is being constructed at an international shipyard and is expected to be delivered to Tidewater in November of 2009. As of September 30, 2009, $11.3 million has been expended on the tug. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 41 Marcon International, Inc. Tug Boat Market Report – November 2009 Recent News – Latin America Fronape International, a subsidiary of Petrobras Transport S.A. has selected Fairmount Marine’s 200 ton bollard pull anchor handling tug “Fairmount Summit” for tow of the 275m x 48m, double hull, 150,939dwt Suezmax shuttle tanker “Nordic Brasilia” from Sao Sebastiao in Brasil to a destination in either Portugal or Spain. The 75m x 18m “Fairmount Summit” mobilized from West Africa to Brasil for the tow and was expected to depart Brasil around 20 – 25 October. The voyage was expected to take about 20 days, weather permitting…… The AHT “Fairmount Sherpa” was contracted by Signet Marine for the towage of the independent, deepwater, 243’ x 206’ jack-up rig “Offshore Vigilant” from Venezuela to Trinidad. “Fairmount Sherpa”, which was stationed at Jamaica, commenced mobilization early in October….French Accident Investigation Authority BEA chartered the “Fairmount Expedition” and “Fairmount Glacier” the beginning of June to search action for the “black box” of the French airliner that was lost over the Atlantic Ocean. The Fairmount sister vessels have a large aft deck suitable for all search equipment, supplied by Phoenix International, and ample accommodation facilities, necessary to house the search specialists as well as the French and U.S. Navies. Henk van den Berg, Fairmount’s CEO commented: "This order, with such a tragic background, gives all of us here at Fairmount, at sea and in the office, a very deep sense of commitment to assist in the process of unraveling what happened. As a subsidiary company of Louis Dreyfus Armateurs and with ongoing operations in Brazil and with many French and Brazilian friends and colleagues, we feel very much connected with the many victims of this disaster. I hope that our men at sea will quickly succeed with their mission."…..MODEC selected Fairmount for towage of the FPSO “Cuidade De Santos.” Following the award to Fairmount of the Aker/ BP's FPSO “Skarv Idun” and DSME/Total's “Pazflor” FPSO towage and installation projects, a third success in a row for Fairmount in the field of the ultra long distance towage projects was achieved in June with the signing of the towage contract with MODEC. This large FPSO was built in Dalian, China and is scheduled to depart about mid-November. Fairmount will deploy two vessels for this towage, which is expected to take approx. 70 days.The FPSO will be deployed in the Urugua field and will also gather production from the Tambau field. Both fields are in the Santos Basin and are being developed together. The fields are expected to include 12 wells that will begin operation in January 2010. The natural gas processed in the FPSO “Ciudade de Santos MV20” will be delivered through an 18 inch gas pipeline to the Mexilhão field 170km from Urugua. The FPSO will be capable of processing 350 million cubic feet per day of gas, 35,000 barrels of oil per day, and having a storage capacity of approx. 700,000 barrels. This is the fifth vessel MODEC will provide and operate in Brazil. It is the first FPSO that will process more gas than oil. The FPSO is planned to arrive in Brazil in the 4th quarter 2009 and will be installed in 1,300m water depth approx. 160km from Rio de Janeiro city. The contract is a 12 year lease with 3 one-year options. Towards the end of last May, Sudamericana Agencias Aereas’ (SAAM) 5,068BHP offshore tug “Águila III”, while on a voyage from Puerto Montt to Puerto Chacabuco, was instructed to go to the assistance of the 40.2m x 8.6m Uruguayan flagged factory fishing vessel “Maria Victoria II”, which had suffered engine problems in the northern Gulf of Penas with twelve crew on board. In order to save time while rendering the necessary assistance, the Chilean flagged tug proceeded through the Darwin Canal in 50kn winds and heavy seas. The next evening the “Águila III” came alongside the fishing vessel and began the tow in adverse weather conditions to Puerto Chacabuco, arriving mid-afternoon two days later. The 33.0m x 12.0m, ABS classed “Aguila III” was built in 2004 by Detroit Chile SA of Puerto Montt and is powered by a pair of CAT 3516B diesels driving twin fixed pitch props. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 42 Marcon International, Inc. Tug Boat Market Report – November 2009 Last 30th June, the 29.5m tugboat “Quetzalcoalt”, belonging to Boluda Corporación Marítima, carried out its first emergency operation in the fight against environmental pollution. The operation was undertaken in the waters of the port of Ensenada, Mexico, after an incident caused by a crane truck falling onto the deck of an old scrap boat, which caused an oil leak. The crane fell and the boat, moored in the port’s docking area, began filling with water and leaking the fuel that was stored in it, which led to a significant amount of oily waste spreading into the sea. The tug “Quetzalcoalt”, with an oil containment boom, took emergency action and minimized the environmental damage caused. Boluda Towage and Salvage specializes in port towing and salvage towing, as well as maritime salvage, tackling pollution and assistance in the open sea. The division has over 200 craft distributed in most ports in Spain, France, Africa, and America, and has established itself as world leader in the tugboat sector. Boluda Corporación Marítima has been providing service in Mexico since 1997, specifically in eight Pacific and Atlantic ports of Mexico. T&T Bisso Response of Houston, Texas successfully refloated the 277m x 40m, 67,557dwt, 5,762TEU container vessel “MSC Antares” th in Brazil after the vessel went aground on 28 June at Jurubaiba Island near the entry channel of the Itaguai Port at Rio de Janeiro. The T&T Bisso team lightered bunkers and chartered in Edison Chouest’s 7,000BHP, 64.4m, Brazilian flagged AHTS “Bremona” and 5,220BHP, 59.2m Vanuatu flagged AHTS “C-Spirit” plus one additional tug in the operation. After pumping the bunkers back to the vessel and conducting an underwater survey, the crew safely delivered the vessel and cargo to its owners with no damage to the environment. “This operation marks a major milestone for T&T Bisso as we continue to strengthen our position in the worldwide emergency response market,” said W.A. “Beau” Bisso IV, president and CEO. Recent News – Europe and Mediterranean The European Commission will be hosting a high-level conference on the future of their transportation system in Brussels on 20 November. This is the closing event of the public consultation the Commission launched last June regarding its Communication 'A sustainable future for transport'. The conference is meant to summarize contributions received from stakeholders and discuss concrete ideas that have emerged in the consultation process. The following comments are from a white paper published by the Directorate-General for Energy & Transport. Transport is the backbone of the European economy, accounting for about 7% of GDP and more than 5% of total employment in the EU. As a network industry, transport requires elements such as infrastructures, vehicles, equipment, and operational procedures to interact smoothly in order to move people and goods efficiently. The world population is expected to exceed 9 billion by 2050. This increase, by roughly a third from 6.8 billion people in 2009, will have a tremendous impact on global resources, making the goal of setting up a more sustainable transport system — one which uses fewer resources — all the more important. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 43 Marcon International, Inc. Tug Boat Market Report – November 2009 In the first quarter 2010 one of International Transport Contractors’ 12,000BHP “B-Wind” Class vessels will assist Saipem S.p.A.’s 152m x 70.5m semi-submersible pipelay vessel “Castoro Sei” during the Nord Stream project for a 26 month period in a high profile project which will be the link to the largest gas reserves in the world, benefitting the increase in Europe’s demand for natural gas. Nord Stream is a twin natural gas pipeline that will link Vyborg, Russia and Greifswald, Germany across the Baltic Sea. Each line is approx. 1,200km in length. Nord Stream AG is an international joint venture with partners Gazprom, BASF/Wintershall, EON Ruhrgas and Nederlandse Gasunie……As of September 2009 ITC’s 12,000BHP “Boulder” and “Bluster” will be engaged in the towage of Noble Drilling Inc.’s newly constructed semi-submersible drilling rig “Noble Danny Adkins” from Singapore to U.S. Gulf. The 13,600nm voyage will lead via the Cape of Good Hope. During the towage, the rig will assist using its thrusters. The cargo tanks of “Boulder” and “Bluster” have been adjusted to carry additional fuel from prenominated bunker ports and transfer fuel to the rig. Including assistance during the trials, the ITC vessels will be engaged for about 90-100 days. The “Noble Danny Adkins”, a Bingo 9000 design semi-submersible, is able to drill up to 37,000’ in 12,000’ of water. For ITC, it is a renewed acquaintance, as their “S-Wind” class tugs “Simoon” and “Suhaili” towed the bare hull from Dalian, China to Singapore in 2006. The sea-going tug, “Carangue”, is being replaced from 1st July by the “Bourbon Apsara”, an anchor handling vessel now operated by Les Abeilles, the Bourbon coastline protection service. “Bourbon Apsara” is chartered by the French Navy to protect the Mediterranean coastline under the maritime Prefect responsibility. Ready to sail within a period ranging from 40 minutes to 6 hours, her tasks will be identical to “Abeille Flandre” - preventing groundings, assisting and saving vessels in distress and combating pollution risks. Her crew, which previously operated on “Carangue”, has an excellent knowledge of the mission and the intervention area. The fleet operated by Les Abeilles still includes five oceangoing salvage tugs “Abeille Bourbon” (Brest), “Abeille Liberté” (Cherbourg), “Abeille Languedoc” (La Rochelle) and “Abeille Flandre” (Toulon). Three other vessels owned by Bourbon, the “Argonaute” and “Alcyon” are based in Brest and the “Ailette” in Toulon, also work on coastline protection. Diamond Offshore is mobilizing their 227.5’ x 197’ semi-submersible “Ocean Guardian” from Invergordon on the Cromarty Firth in the North Sea to the Falkland Islands to drill a minimum of four expletory wells for AGR / Desire in the North Falkland Basin beginning in early February 2010. The 15,300BHP, 173 ton bollard pull newbuilding AHTS “Maersk Traveller”, delivered by STX Norway Offshore in September 2009, is expected to begin the two month plus tow shortly. “Maersk Traveller” is the ninth in a series of ten 73.2m x 20.0m x 10.0m depth vessels being built by STX for Maersk Supply Service. She is powered by two MAN B&W 7L27/38 and two MAN B&W 8L27/38 producing a total of 15,300BHP to twin controllable pitch props in fixed kort nozzles. Towing gear consists of a triple drum Rolls-Royce SL400W3T towing / anchor handling winch with a capacity for 8,625m of 83mm wire on each drum and a maximum line pull of 400 tons. Vessel is also fitted with two 700 tonne Triplex shark jaws, two S-200 triplex guide pins, two 3.0m x 3.0m stern rollers and has two 260m3 chain lockers, each stowing abt. 1,200m 76mm chain. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 44 Marcon International, Inc. Tug Boat Market Report – November 2009 Multraship Salvage and Belgian salvage specialist URS Salvage & Maritime Contracting refloated the 25,654GRT oil tanker “Akti N” after the Liberian-flag vessel ran aground off the Dutch coast, close to Vlissingen Boulevard, a popular Dutch tourist attraction. Vessel was in ballast and inbound through the Wielingen Channel with a Belgian pilot on board, when it reportedly responded to a change of orders and swung onto Flushing Roads. The turn proved to be too tight and the vessel ended up on the beach at Vlissingen, at ebb-tide, at 2115 on June 10. After discounting initial plans to refloat the vessel under its own power by deballasting, the master signed a Lloyd’s Open Form with Multraship and URS, who refloated the vessel using six tugs, four connected to the grounded tanker and two pushing from the side. Leendert Muller, managing director of Multraship, says, “Once again we can see an example of the ability of the salvage industry to respond quickly to a maritime emergency, mobilizing extensive resources at short notice and working in close cooperation with the local authorities, who were on high alert because the incident occurred in a heavily populated area.”…..Multraship also successfully salved a sinking dredger off Kent, UK. The 67m Van Oord dipper dredge “Goliath” was towed to the Moerdijk area of Holland for further inspection. “Goliath” was under tow from The Netherlands to Ireland by Sea Contractors tug “Sea Alfa” when it began taking on water and sinking off the Kent coast. Multraship salvage specialists were called in and advised the master to beach the dredge between Deal and Kingsdown to prevent the vessel sinking. A full salvage spread was mobilized by Multraship on the tug “Viking” and by helicopter from Nieuwpoort. Working on site with added assistance of fast-response craft “Multraship Responder”, salvage divers conducted a thorough inspection. The sources of water ingress on both sides and via one vent cover were established and sealed. The dredge was pumped out, refloated and after a full diving inspection towed to Holland. “Goliath” was unmanned and had 130 tonnes of fuel aboard. There were no casualties and no spillages. Leendert Muller, managing director of Multraship, says, “We worked closely with the UK SOSREP organization and the MCA on this job, and we are pleased that the liaison went very smoothly and we were able to beach the craft to avoid the more difficult salvage, greater damage and potential pollution that would have occurred had it sank out at sea.”….. Multraship Salvage, working in close co-operation with Croatia-based diving specialist Hidroinžinjering, completed the deep-sea recovery of the fishing vessel “Marinero 1”, which sank in January 2009 off Komiža, Vis Island, Croatia. The 31.75m vessel sunk, as a result of circumstances which have not been established, in a water depth of 80m. An ROV inspection subsequently revealed that, although the vessel has suffered stern, rudder and propeller damage, there was no other visible damage. The ROV showed that the vessel was lying on a sandy bottom with a 20 degree portside list which would allow lifting slings to be positioned beneath it. Multraship signed a Wreckhire 99 agreement with the owner after close consultation with the insurers of the vessel, Croatia Osiguranje, following which preparations for recovery began in earnest. Multraship floating sheerlegs “Cormorant” was mobilized to Vis Island, a special rigging system designed for the combined use of deck tackle and an A frame, the diving team underwent a special training program, and all necessary specialist equipment was installed on board the “Cormorant”. The nineteen-strong salvage team began work and, under guidance of an ROV, the divers succeed in rigging slings underneath “Marinero 1” and connecting them to the deck tackle system of the “Cormorant”. The lift was performed in three stages and, after switching from the deck tackle to the main tackle in the A frame, “Marinero 1” was lifted to the surface. Having been patched and dried out, the “Marinero 1” was shortly thereafter considered safe afloat and was handed over to owners, who towed it into the port of Komiža. Leendert Muller, managing director of Multraship, says, “The challenging water depth of 80m was successfully overcome by well trained divers and an experienced salvage team. The combination of the skills of this team, the versatility of the floating sheerlegs ‘Cormorant’ in four-point mooring, and an ROV for the guidance of the divers, demonstrates very clearly that a deep-sea recovery operation can be both successful and economically viable.” www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 45 Marcon International, Inc. Tug Boat Market Report – November 2009 Muller Maritime Holding has acquired a 100% interest in Montis Mooring & Boat Service BV, the Netherlandsbased provider of boatman, helmsman and other related services to the shipping industry. The Muller Group owns and operates the towage and salvage specialist Multraship. Multraship managing director Leendert Muller says, “The acquisition of Montis Mooring & Boat Services is a good fit for both companies, and a logical part of the Muller Group’s commitment to strengthening resources in all areas of its activity. It is also good news for the shipping industry because it brings together the strengths of two specialist companies, both with a proven track record for high-quality responsive service and expertise. The end result is an improved service for the clients of both operators.” The structure of Montis Mooring & Boat Service will remain unchanged. The company will continue to operate under its own name, and its daily management will be transferred to the directors of the Muller Group. Foundation Hamburg Maritim has taken delivery of the 47-year-old Hamburg harbour tug “Fairplay VIII” from its previous owner Fairplay-Towage. Just after the 600BHP tug was moored at its new berth at Sandtorhafen, Hamburg’s new museum-port, Joerg Mainzer, Managing Director of Fairplay-Towage, handed one of the original brass-keys of the tug’s wheelhouse as well as the ship’s papers to Reinhard Wolf, Chairman of the Board of Foundation Hamburg Maritim. The tug, built in 1962 on the TheodorBuschmann-Yard which belongs to the Fairplay-Group since 1957, will forthwith be moored at Sandtorhafen and will be open for visitors. The Foundation also plans to operate the tug for tours with special guests, for example, on the famous annual “Hamburg Harbour Birthday”. The Foundation is presently looking for volunteers who shall forthwith be responsible for maintenance and operations. During the hand-over ceremony, Joerg Mainzer gave a short resume of the long history of this tug which sailed the entire 47 years under Fairplay’s flag. “We are happy, that a traditional harbour tug will not go the breakers but will forthwith serve as information source for tourists and interested groups on the tasks of harbour tugs in those days which are still very much the same in today’s modern times.” The oceangoing tug “Fairplay VIII” was built 1962 at the Theodor-Buschmann-Yard in Hamburg for Fairplay-Towage. Until 2002, the ship was predominantly operated in the Port of Hamburg, occasionally also as a salvage tug. Towards the end of the 90s, Fairplay changed its colour regime from the then traditional white/brown/black livery to today’s more modern blue/white Fairplay house-colours. The tug just passed its intermediate survey at its building yard Theodor-Buschmann where the new owner changed the colours back to the original style. When the ever-growing size of ocean-going ships calling the Port of Hamburg outgrew the 12 tons bollard-pull of “Fairplay VIII“, Fairplay-Towage re-positioned the tug to the German Baltic Port of Wismar. In Wismar she was active until mid May 2009. Like for the other traditional ships of the Foundation Hamburg Maritim such as the pilot-schooner “No. 5 Elbe”, the “SchaarnÖrn”, the “Johanna” or the cargo ship “Bleichen”, the Foundation intends to establish its own operational unit made-up by volunteers, which will ensure proper maintenance and the operational reliability of the tug. Foundation Hamburg Maritim was established in 2002 by the Hamburg Landesbank (today HSH Nordbank) on the initiative of the Hamburg Chamber of Commerce with the aim to preserve Hamburg’s maritime heritage. Next to historic ships and the Harbour-Museum, the Foundation is operating the Sandtorhafen, a revived port basin in Hamburg’s thriving new city quarters “HafenCity”. Three men were rescued from a sinking tug at Peterhead after their vessel capsized just outside the entrance to Peterhead Harbor in June. Aberdeen Coastguard was contacted by Peterhead Harbor Master at 4:41am reporting that a tug had capsized with three crew on board. Aberdeen Coastguard immediately requested the launch of Peterhead RNLI lifeboat and contacted all vessels in the area for assistance. Fortunately, a Harbor Pilot boat confirmed they had retrieved all three crew from the water and although cold, wet and shaken they were reported to be uninjured. The Dutch registered tug “Ysselstroom” remained floating partly submerged for a short while and the Peterhead RNLI lifeboat stood by. The vessel has now sunk in approx. 25m water depth. The 19.5m tug had been assisting a barge approx. 500m off the entrance to the harbor when the accident happened. The second quarter has seen Tsavliris Salvage Group continuing to work steadily. On Wednesday 6th May 2009, Tsavliris mobilized their 47m x 11.1m 6,200HP salvage tug “Megas Alexandros” (ex-Tito Neri) from her Piraeus salvage station, to the assistance of the Panamanian flagged 29,159dwt, 180m bulk carrier “Androniki” disabled about 10nm South of Ierapetra, Crete. The casualty was safely towed to Chalkis shipyard - arriving on 9th May 2009. 46 www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. Marcon International, Inc. Tug Boat Market Report – November 2009 Royal Boskalis Westminster N.V. and Smit Internationale N.V. have in principle reached agreement on a full merger of the two companies, whereby all the activities of Smit will be continued in the combined company. Boskalis and Smit aim to reach a transaction through a public offer in cash by Boskalis for all outstanding shares in Smit. The business combination will create a world class maritime service provider offering an excellent platform for further growth. Boskalis and Smit agreed that the existing business plans will serve as the basis for the further expansion and that further growth and development of all current activities will be supported. In view of the strong reputational and brand value, the activities of Smit will be continued under the Smit name operating out of the current head office in Rotterdam. Terminals activities of Smit and Boskalis’ associate Lamnalco will be integrated thereby creating the best positioned global leader in the maritime oil and gas terminal arena. These activities being part of the Group including Harbor Towage will create synergies in the area of exchanges, procurement and crewing of vessels. Peter Berdowski, CEO Boskalis commented “I am very enthusiastic about this merger. Combining our companies creates a Dutch maritime player of a global scale. The merger fits excellently with our strategy aimed at reinforcing and expanding our maritime services. I see significant opportunities for synergies between our companies complemented with a close competence and cultural fit. I support the strategy of Smit, which aligns and complements well with our strategy. Moreover, the merger offers an excellent platform for the further growth of our combined activities.” “Our discussions and shared vision have also made me enthusiastic for this merger. We are very thrilled with the support from Boskalis for the Smit strategy and its four divisions. This is a good basis for the further development of our combined activities. We have a clear agreement regarding the continuity of Smit’s identity and its strategy thereby securing the continuity of Smit’s activities. This merger offers an excellent opportunity for Smit” said Ben Vree, CEO of Smit. Boskalis and Smit are of the opinion that the merger is in the best interest of both companies. The strategic rationale of the transaction is supported by the Boards of both Boskalis and Smit. In light of the recent nature of discussions, the Board of Management and Supervisory Board of Smit will take a view on the level of the intended Offer at a later date. The Board of Management and Supervisory Board will review the level of the Offer in light of the current situation. The Supervisory Board has appointed RBS as its financial advisor. The large shareholders in Smit, Delta Lloyd Groep and Janivo Beleggingen have already confirmed an irrevocable undertaking to support and accept the intended offer, subject to customary offer conditions. Together with Boskalis’ own shareholding in Smit, this accounts for approximately 44% of the outstanding shares in Smit. Any direct implications for the workforce will be limited as a consequence of the complementary nature of the merger. Boskalis and Smit will make best efforts to avoid any forced redundancies. Looking ahead, the merger will lead to a stronger company with more opportunities for the personal development of its employees. Ben Vree, CEO of Smit will become a member of the Board of Management of the Group. Smit will also have a representative within the Supervisory Board of the new combination. In its new composition the Supervisory Board will in part ensure the agreements regarding the further growth and development of the Group activities are met. Boskalis and Smit strive to sign a merger protocol shortly and to obtain all the necessary approvals and statements from regulators and competition authorities as soon as possible and to complete the required recommendation and consultation procedures with the workers council and unions before launching a formal Offer. The transaction is expected to be fully completed in the first half of 2010. The completion is subject to satisfying a number of customary conditions (including approval from the competition authorities and complete the above mentioned recommendation and consultation procedures). The intended capital structure of the Group will continue to be strong. The financing of the Offer will consist of a combination of senior debt and approximately € 300 million of equity / junior debt. Part of the financing is expected to include the issuance of € 200 million new Boskalis shares. share issue will be supported by HAL Investments, as large shareholder in Boskalis, has indicated that they will partake in the share issue. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 47 Marcon International, Inc. Tug Boat Market Report – November 2009 Royal Boskalis Westminster N.V. realized a net profit of € 102.7 million in the first half of 2009. In the first half of 2008 Boskalis realized a net profit of € 110.0 million, excluding a non-recurring gain relating to the “W.D. Fairway” (€ 92.0 million). Boskalis benefited from a broad, well-filled order book in the first half of 2009, resulting in solid equipment utilization levels as well as good margins. Revenue increased to € 989 million, with growth being achieved in the home markets and the offshore activities within the Dredging & Earthmoving segment as well as in the Maritime Infrastructure segment. Included in the earnings are Boskalis’ share in Smit Internationale's first-half year result (€ 13.1 million) and a positive hedge result on the Port Rashid project (€ 7.2 million). The net order intake amounted to € 622 million in the first half of the year, bringing Boskalis' well-filled and broadly spread order book to € 3.0 billion. Peter Berdowski, CEO: “Despite difficult economic times we turned in a strong performance in the first half of the year. The utilization rate of our vessels was solid and revenue has remained robust. In addition, our margins on running projects are healthy, largely thanks to the selective contracting policy we have pursued in the past few years. This allowed us to start the year with an order book that was well filled and - above all - broadly spread. It is owing to this strong order book that we continue to have a positive outlook on the rest of 2009. The outlook for the period thereafter is less clear. In some market segments clients are adopting a more hesitant attitude to their investment decisions. On the other hand, we are seeing positive developments in offshore and in government infrastructural projects. For the coming years, we are anticipating a decline in volumes in the global dredging market. To prepare the company for this decline we have initiated a fleet rationalization program.” The global dredging and marine contracting market is driven by factors such as growth in world trade, the global population, energy consumption and the effects of climate change. All these factors have resulted in a period of unbridled growth in the past few years. Impacted by the global recession, these positive market conditions have changed drastically since September 2008. Although long-term structural growth factors for dredging and marine contracting remain positive, a great deal has changed for the short term. Commodity prices have decreased sharply and global trade is stagnating and these factors are affecting demand for products and services. Full-year revenue in 2009 is expected to be comparable to the level achieved in 2008. The Board expects the result in the second half of 2009 to be comparable to the result achieved in first half of the year. The level of investment will be around € 300 million in 2009. Boskalis is taking into account a drop in volumes in global dredging markets in the coming years. To prepare the company for this Boskalis has initiated a fleet rationalization program. Boskalis’ subsidiary Lamnalco has has been awarded a long-term oil services contract by Caspian Pipeline Consortium (CPC). Including indexation, the estimated contract value of Boskalis’ share is € 85 million and the 10-year contract is due to commence mid 2010. CPC operates the pipeline and related infrastructure linking the oil fields of West Kazakhstan with the Marine Terminal on the Russian Black Sea coast close to Novorossiysk. Crude oil export takes place through two Single Buoy Moorings located offshore. Lamnalco will provide a turnkey package of services for the complete operation as well as a permanent on-site dive team for SBM maintenance and comprehensive oil spill response services. This will involve the deployment of 15 modern vessels and the workforce will comprise approximately 170 mostly full-time staff ashore and afloat with the majority being sourced from the local area. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 48 Marcon International, Inc. Tug Boat Market Report – November 2009 Smit Internationale N.V. of Rotterdam in August reported a net profit for third quarter of € 75.1 million. The result includes a net contribution of € 10 million from the financial settlement of the “Thunderhorse” project. The net profit shows a decrease compared with the corresponding period in 2008. The decrease is caused mainly by a drop in revenues of the Harbor Towage and Transport & Heavy Lift Divisions. Ben Vree, SMIT’s CEO, comments, “Despite the current recession, we have proved capable of maintaining our financial results at a reasonable level, by reallocating harbor tug vessels to new areas. During the third quarter we saw a slight recovery in the number of towage movements. However, the cyclical activities of the Transport & Heavy Lift Division generated lower returns. The profit forecast for the whole of 2009 is still in line with our earlier announcements.” During the third quarter, Smit’s Harbor towage Division reported that the number of towage movements recovered slightly compared with the first half of 2009. However, the operating result of the group companies were below last year’s level, in particular owing to a drop in revenues in the ports in Europe and Canada. The joint ventures, on the other hand, recorded a substantial growth. The result of in particular the SMIT Rebras joint venture in Brazil showed sharp improvement. The joint venture’s construction programmed for 18 new tug vessels was completed, and 21 tugs are currently operational at 5 locations. The new joint venture in the Baltic, Towmar Smit Baltic, has also contributed to the results since May 2009 when three Smit tugs were brought into the joint venture. Tugs are being repositioned within the Harbor Towage and Terminals Divisions in order to improve the capacity utilization. In addition, cost-cutting measures have been implemented in order to maintain the level of the profit margins. The rise in the results of the Terminals activities continued during the third quarter of 2009. Both the group companies and the joint ventures realized sharp higher results than during the corresponding period in 2008. Two smaller contracts were concluded during the third quarter in India and Gabon. Also during the third quarter, the 25-year contract for an LNG terminal in Italy became operational. At this terminal the joint venture will deploy 4 tugs. The current terminal contract in Novorossiysk, Russia will not be renewed. The terminal operation in the Bahamas, which has included the operation of a bunker barge since last year, were scheduled to be expanded by an additional fourth tug in the second half of 2009. The 25 year contract for an LNG terminal in Italy had not started by mid-year due to delays in building the LNG terminal. However, the tugs that have been delivered were already on charter. It was expected at that time that the LNG terminal would become operational in the third quarter of 2009. The joint venture will operate four tugs for this terminal. Salvage Division’s workload during the third quarter of 2009 was greater than during the first six months of the year. The results for the period until 30 September are sharply higher than those for last year, owing to settlements for prior-year salvage operations. As reported previously the most important of these is the settlement for the “Thunderhorse” project from 2005 (net impact of € 10 million). Work on the “Pride Wyoming” in the Gulf of Mexico was completed. Until now the workload for the fourth quarter is below the historical average. Results for Smit’s Transport & Heavy Lift Division, involved in chartering barge rental, heavy transport, lift and towage, were slightly below the results for the first six months of the year, the primary reason being that the vessels operating on the spot market generated lower returns. As a result, the accumulated results for 2009 are below last year’s level. The long-term Transport contracts generate a stable cash flow. Capital employed for this activity increased due to the delivery of vessels and barges in the course of 2008 and the first half of 2009. Through 30th September 2009, 13 vessels were delivered at group companies and another 13 tugs at associated companies. A further 8 vessels (for both group and associated companies) are scheduled for completion during the remainder of this year. The net investments (including surveys of vessels) up to and including 30 September were approximately € 87 million. 49 www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. Marcon International, Inc. Tug Boat Market Report – November 2009 Donjon Marine, Co., Inc. of New Jersey completed work on the wreck removal and disposal of the remnants of “M/V Fedra” which, in October 2008, grounded and partially sank during a storm in abt. 20’ of water off the eastern side of Eurpa Point in Gibraltar. As a result of the grounding and pounding of the vessel due to sea conditions, she separated in two pieces at the forward end of No. 6 cargo hold. Vessel had seven cargo holds in total. The separated forward section was subsequently removed from the site, leaving the remaining stern section. Owners, in consultation with underwriters, called for competitive bids from the worldwide salvage community and Donjon was awarded the job. On May 25, 2009, Donjon commenced site operations and with support from local subcontractors, performed vessel remediation as well as precutting portions of the remaining deck house, stack and decking in preparation of the arrival of Donjon’s main th wreck removal flotilla and salvage crew. On May 8 , Donjon’s 400-ton capacity derrick barge “Columbia New York”, material barge “Witte 1404” and 7,000HP tug “Atlantic Salvor” arrived in Gibraltar. Donjon removed all of the superstructure, main deck forward of the engine room, all subsurface bottom and side shell forward of the engine room bulkhead forward, and the machinery in the engine room. The last work included removal of the shell of the engine room and final clean up of the work area once the main structure was removed. In addition Donjon removed thousands of gallons of fuel and related contaminates which remained in the hull from the initial clean up operation, thereby accomplishing one of the primary goals of the project to protect the waters off the coast of Gibraltar and surrounding area. The 67.5m x 14.5m Dutch flag salvage tug and Coast Guard ETV “Waker” was declared a total loss and sold for scrap in October to Scheepssloperij Nederland in Gravendeel after she suffered a serious th fire in the engine room on 7 September about five kilometers off Vlieland on the Dutch coast. Tug was owned by Svitzer Salvage BV and operated on behalf of the Netherlands Coast Guard. All twelve crew were safely evacuated from the vessel with no injuries reported. Immediately after the incident was reported, Svitzer Salvage mobilized a firefighting team, including two salvage fire fighting vessels. “Waker” was originally built in 1977 by Verolme Scheepswerf Heusden B.V. as the “Smit Houston” and in 1990 sold to Greenpeace as the “Solo” and converted to a pollution control and environmental research vessel. In 1995, the “Solo” was sold to SmitWijs, renamed “Waker” and placed on permanent salvage station at port of Den Helder. In 2007, the management of the vessel was handed over to Svitzer Salvage. The task of the “Waker” was to prevent calamities and with a wind force Beaufort 5 she was always at sea. The 9,200BHP / 16,000IHP “Waker” was powered by a pair of Stork-Werkspoor 6TM410 4,600HP diesels driving controllable pitch props in fixed kort nozzles producing a bollard pull of abt. 120 tonnes. Sister-tug is the “Hua An” (ex-Smitwijs New York, Smit New York), presently owned and operated by China Merchants Steam Navigation and Shanghai Salvage Company, presently in Las Palmas, Canary Islands. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 50 Marcon International, Inc. Tug Boat Market Report – November 2009 African News Hercules Offshore committed the tug “Fairmount Summit” to tow the independent leg cantilever jack-up rig “Hercules 185” from Walvis Bay, Namibia, to Luanda in June……In September, Fairmount Marine’s “Fairmount Alpine” delivered the SSDR “Pride South Seas” in Saldanha Bay. The 200 ton pull anchor handling tug “Fairmount Alpine” was contracted by repeat customer Pride International to move the non-self propelled, semi-submersible drilling rig from Cape Town to Saldanha Bay. Short in distance, but as important as any other tow, the convoy entered Saldanha Bay in the early morning after a short towage. On the 1st of August 2009, Svitzer Salvage was awarded a LOF contract for the grounded Hong Kong registered vessel "Long Charity". The "Long Charity" a 174,000dwt bulk carrier, fully loaded with iron ore, grounded in the mouth of Saldanha Bay, South Africa in heavy conditions after suffering an engine failure while trying to leave the port. Barge owners appointed Smit Salvage South Africa to remove a grounded barge near Knysna. The Singapore registered 33.00m x 9.76m, 3,200HP twin screw tug “Hako 18”, built 2008, was on passage from Maputo to Port Harcourt, Nigeria, towing the 35.11m x 12.19m x 2.44m “GTO XXIX” and 54.86m x 18.29m x 3.96m “GTO XXIV” barges when heavy weather was encountered. The barges were carrying construction equipment and were unmanned. There are no pollutants onboard. At approx. 0230 on the morning of 24th June the tow wire to the barge “GTO XXIV” parted. The Smit Amandla Marine tug “Pentow Skua” had been mobilized from Mossel Bay to assist the “Hako 18” some eight hours earlier. Despite the best efforts of the Master of the “Pentow Skua” to connect to the drifting barge this was not possible due to the adverse weather conditions. The barge grounded one mile west of the Knysna Heads on rocks known locally as “Three Sisters”. The weather conditions experienced at the time have led to the barge breaking up. There is at present wreckage on the beach and rocks in the vicinity. The owners of the barge were instructed, in terms of the Wreck and Salvage Act, to remove the wreck and all debris. The owners appointed Smit Salvage South Africa to discharge their obligations. Their representatives arrived in South Africa on Monday 29th June and have inspected the area before meeting with Smit and the South African Maritime Safety Association (SAMSA). SAMSA approved the wreck removal plan submitted by Smit. The area of the wreck is to be marked with red wreck marker buoys to warn water users of the presence of danger and a survey of the area is to be made by boat, divers and by foot in the area. Due to the inaccessibility and concerns over possible damage to the dunes and environment; debris will be removed from the seaward side of the location. Wreckage close to the surface will be cut down to avoid any possible future dangers to water users. Debris identified and where removed is to be recorded against the cargo manifest of the barges to measure the extent of the cleanup operation. Financial guarantees have to be put in place to cover the removal of debris that may come ashore in the future. The cleanup operation will commence as soon as the swell conditions in the area permit the safe operation of vessels. (Photo Credit: Andrew Aveley/NSRI Knysna). Security forces in Puntland have captured the Somali pirate Oman Hassan Osman, AKA “Baqalyo”, who was one of the ten pirates who hijacked and received US$ 4 million ransom after hijacking Micoperi’s 72.5m x 14.0m, 5,400HP tug supply boat “Buccaneer” (ex-Smit-Lloyd 72) while towing barge “Sealink Pacific 330” in April of this year. After four months captivity, the vessel and crew were freed in August. Micoperi purchased the vessel from Seacor the end of January. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 51 Marcon International, Inc. Tug Boat Market Report – November 2009 Asia, South Pacific and the Far East The first of June, Posh Semco’s 13,500BHP, 165T bollard pull AHT “Salviscount” towed Saipem’s 180m x 42m x 11.5m launch / cargo barge “S-45” loaded with 14,000mt NBCPP Topsides from Batam, Indonesia to North Belut Field in Natuna Sea, Indonesia. After arrived at the offshore field, the 75m x 18m “Salviscount” assisted with positioning of the barge into position through the pre-installed jacket and thereafter the Topsides were successfully installed by float over….. Seven pirates, in a small wooden boat armed with automatic weapons approached Posh Semco’s 68m, 12,000BHP ocean towing / salvage tug “Salviceroy” (built 2007) off the Nipa Transit Anchorage (Lat. 01 deg 08.0’N; Long. 103 deg 35.8’E) while underway towing Hyundai Heavy Industries’ 168.3m x 47.0m nd launch barge “HDB 1006” on 22 June. The crew immediately sounded the emergency alarm and retreated into the accommodation and locked themselves in, securing all access points to and from the deck. The Master reported the situation to Singapore port control and VTIS west. Three pirates did manage to board the “Salviceroy”, but gave up trying to enter the vessel after trying for about 10 minutes and sped off towards the south in their boat. No weapons were fired, the tug was not damaged, nothing stolen and the crew was unharmed. It was the second incident in the vicinity this year. On Monday 25th May 2009, Tsavliris Salvage Group mobilized the 7,000BHP, 72.7m Ice Class 1A Super salvage tug “Tsavliris Unity” (ex-Seaways 5, Deymos) from her Galle salvage station, to the assistance of the 149.8m, 7,450dwt Ro/Ro cargo ship M/V “Morning Sonata” which was disabled about 300nm east of Galle, Sri Lanka. The vessel was safely th towed to Colombo, where arrived on 29 May 2009. The 1984 built vessel has since been broken up in Chittagong, Bangladesh. In connection with the official visit to Denmark by H.E. the Vietnamese Prime Minister Mr. Nguyen Tan Dung, Svitzer and Saigon Shipping Joint Stock Company, established in 1981, signed a joint venture contract with a view to establish a new towage company in Vietnam in order to accommodate the strong port development taking place in the country. The joint venture will be named Svitzer Vietnam and will provide towage services to container terminals, container lines and other shipping operators in the Ba Ria, Vung Tau and Cai Mep area. Svitzer Vietnam will operate a number of Azimuth ASD tugs, which will be fully capable of handling all types and sizes of vessels calling Cai Mep. Svitzer Vietnam will recruit and train Vietnamese officers and crew in the operation of the ASD tugs. General Director of Saigon Shipping and vice chairman of the Vietnamese Shipowner’s Association Mr. Do Viet Trieu says: “We know that there is a current demand for towage services in and around Cai Mep provided by a company like Svitzer with solid experience in operating ASD tugs. We also know that the success of Cai Mep as an important Asian deep sea port is amongst others dependant on world class marine services being available to the customers of the port. Such demand is urgent as vessels of unprecedented size are already calling Cai Mep with several more to come in the very near future.” COSL/CNOOCS awarded the Svitzer-COESS Pool tug “De Hong” a long term charter in China. The duration of the charter contract will be 18 months, starting 29th July 2009. This fixture is a result of cooperation between Maersk Broker, Svitzer China Beijing, Shanghai Salvage and Svitzer Ocean Towage BV. The 308’ x 51’ x 27.6’ “De Hong” was built in 2000 by Donghai Shipyard in China and classed CSA 5/5 Tug OTS RCS ORS FiFi “1” ICB2 CSM. She is powered by a pair of Man B&W 8L40/54 4-stroke diesels developing a total of 15,678BHP at 520RPM and a bollard pull of abt. 185 tonnes. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 52 Marcon International, Inc. Tug Boat Market Report – November 2009 A new 37m, 4,000HP tug enroute from Shanghai towards Singapore lost its tow off of Vung Tau in rough seas on rd Monday 23 November off Con Dao Island. Vietnam’s Maritime Search & Rescue Co-Ordination Center rescued ten of the tug’s crew that evening and picked up the Captain the next morning. st At abt. 2100 hours on Saturday 21 November, the Philippines flag tug “Marinero” towing barge “Salvmar II” belonging to Cebu Barge and Tug Corp. were anchored taking shelter during stormy weather at 07 deg. 42.95’N; 122 deg. 06.51’E in Siocon Bay, Zamboanga Del Norte, Philippines. Nine heavily armed pirates approached the tug in three inflatable boats and kidnapped the Master, Chief Mate and Chief Engineer of the tug. In addition the pirates took GPS equipment, marine radio, crew’s mobile phones and some of the ship’s provisions. After the kidnapping, the 11 other crew whom were left on board moved the tug and barge to avoid other small boats with suspected armed groups approaching. Shipmasters, owners and operators were encouraged by the Philippine Coast Guard to maintain vigilance at all times and take precautionary measures when transiting the area especially during hours of darkness. This was the second such maritime incident that had occurred in the Zamboanga peninsula since January 2009 and the latest of kidnappings in Mindanao in past months. Unlike the piracy off Somalia which are more to do with profit, attacks in the Philippines are generally related to insurgency and politics. Featured ASD & Tractor Tugs For Charter / Employment Direct From Owners File: TG83114 Tug - Azimuthing - 114’ x 45.9’ x 19.68’ depth / 18.04’ loaded draft. Built: 2009 at Astilleros Gondan, Spain. Class: RINA C +Hull +Mach, Tug, Unrestricted Nav Aut-Ums, Oil Recovery Ship. FO: 301m3. Crane: 1 - 1.8T @ 18.3m. Winch: 1 - 250mt Brake; 1 - 420mt Brake; 2 -100T hook. Stern Roller. 2 x MAN 9L27/38 MCR total 8,300BHP. Schottel azimuthing props. Bowthruster. Bollard Pull: 110mt ahead / 103mt astern tested. Speed about 13.5kn tested. 2 – 3,749m3/h Fire pumps. FiFi2 2 – monitor (water) 3,600m3/hr, 1 – monitor (Foam) 600m3/hr. Quarters: 2-1, 2-2, 1-4. Passengers: 1-2; + 5 bunks. Class (cont): FiFi 2, Water Spraying, Salvage Tug, Escort Tug, IW, Sys-Neq 1. Steering BP 120mt at 10 knots. Two newbuild sister tugs may be developed for BBC. Europe. File: TG72128 / TG72127 Tugs - Azimuthing (2 each) - 128’ loa x 42’ beam x 19’ depth x 16.4’ loaded draft. Built: 2009 at Astilleros Armon, Spain. Foreign flag. GRT: 800. Class: BV I + Hull + Mach + AUT UMS, Tug, FI-FI1, Water Spraying, Unrestricted Navigation, Ice 1C. 50T deck cargo on 100m2 clear deck. FO: 438m3, FW: 63m3. Windlass: 2 Pull 10T, Brake 50T. Deck Crane PK32080 SWL 12.2m/2T. Winches: 1 - Stern winch; 1 - Bow winch. Wire Capacity: 1200m x 54mm / 400m x 54mm. Stern Roller. Main Engine(s): 2 x ABC total 7,200BHP at 1,000RPM. 2 - FPP Schottel SRP2020 prop(s). Range: 24 days. Bowthruster 200kW. Bollard Pull: 85T. Speed about 14kn. Genset(s): 2 - 310kW / Volvo; 1 - 116kW / Volvo. Class (cont): FiFi 2, Salvage Tug, Escort Tug, IW, Sys-Neq 1. Two sisters. Bollard pull 105mt guaranteed, 110mt expected. Steering BP 120mt at 10 knots. Delivered and tested at 110mt BP ahead, 103mt astern & 13.5kn full speed. Brusselle Winch Fore: Hydraulic driven combined anchor windlass towing winch Model M 255/ASLH200.59/1S-2-2. Split drum with 180m Dyneema. Pull 1st layer 800kn, Brake 2,000kn. Each Drum cap 54mm, 400m. Brusselle Winch Aft: Hydraulic driven waterfall anchor handling towing winch Model M 256 SLH250.123/2-1-1. Karmoy Hydraulic Towing Pins Type 130853 SWL 160T. Karmoy Shark Jaw SWL 200T. Inspection: Europe. Prompt. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 53 Marcon International, Inc. Tug Boat Market Report – November 2009 File: TG58106 / 107 Tugs - Azimuthing (2 each) - 106.6’ loa x 35.42’ beam x 18.36’ depth x 16.07’ loaded draft. Built: 2009. Foreign flag. GRT: 500. Class: Unrestricted Service; Salvage Tug; AUT - UMS; FiFi 1 - Water Spray System. FO: 190m3, FW: 42m3, BW: 44m3. Crane: 2T @ 6m. Winch: RaumaBrattvaag 162.5T brake; Warping head 6T. Wire Capacity: 800m x 52mm. Stern Roller. Main Engine(s): 2 x GE 7FDM12 total 5,842BHP at 1,000RPM. 2 - Aquamaster US 255 CPP prop(s). Bollard Pull: 80T. Speed about 14kn on 20T/d. Genset(s): 2 - 130kW / 380v / 50Hz; 1 - 44-55kW / 380v / 50Hz. Firefighting: 2 - monitors 1,200m3/hr @ 12 bar; Water spray system. Quarters: 10 (4-1, 1-2, 1-4). Air conditioned. Class (cont) FiFi 2, Water Spraying, Escort Tug, IW, Sys-Neq 1. Bollard pull 105mt guaranteed, 110mt expected. Steering BP 120mt at 10 knots. First sister delivered and tested at 110mt BP ahead, 103mt astern & 13.5kn full speed. Brusselle Winch Fore: Hydraulic driven combined anchor windlass towing winch Model M 255/ASLH200.59/1S2-2. Split drum with 180m Dyneema. Pull 1st layer 800kn, Brake 2,000kn. Each Drum cap 54mm x 400m.Brusselle Winch Aft: Hydraulic driven waterfall anchor handling towing winch Model M 256 SLH250.123/2-1-1. Karmoy Hydraulic Towing Pins Type 130853 SWL 160T. Karmoy Shark Jaw SWL 200T. File: TG55113 Tug - Azimuthing - 114.8’ loa x 36.7’ beam x 16.09’ loaded draft. Built: 2007 at Astilleros Armonnavia; Spain. Foreign flag. GRT: 498. Class: BV. FO: 435m3. Winch: Bow & Stern 130T (brake & tow hook). Main Engine(s): 2 x CAT total 5,511BHP. Schottel SRP 1515 prop(s). Bollard Pull: 71T. Speed about 14kn. Genset(s): 2 - 150kW / CAT. ASD open stern. Inspection: West Africa. Delivery: December 2009. File: TG52112 Tug - Azimuthing - 112.5’ loa x 36.1’ beam x 15.6’ depth x 17.22’ loaded draft. Built: 2001 at J.G. Hitzler; Germany. Italian flag. GRT: 470 NRT: 141. Class: RINA *100 - A1.1 - Nav. I.L.; Re Salv - FFQ-1, IAQ-1. FO: 1,260MT, FW: 45MT. Crane: 1 - 2T hydraulic. Winch: Hydraulic tow winches & tow hooks fore & aft. Wire Capacity: 800m x 82mm. Stern Roller. Main Engine(s): 2 x Wartsila 6L26A total 5,200BHP at 1,000RPM. Schottel 1515 prop(s). Endurance @ 8,000nm. Bowthruster 200kW. Bollard Pull: 60MT. Speed about 13.2kn on 11-12.5MT/d MGO. Genset(s): 2 - 101kW / Deutz; 1 - 47kW / Deutz. Firefighting: 2 – 1,300m3/hr pumps each supplying 2 monitors. Quarters: 10 berths. Air conditioned. Galley. Spare tow wire. Call for rates and availability. Inspection: Mid East. Delivery: Prompt. File: TG50084 / TG50083 Tug - Azimuthing (2 each) - 101’ loa x 36.7’ beam x 17.1’ depth x 18’ loaded draft. Built: 2009. Foreign flag. GRT: 381 NRT: 114. Class: LR +100A1 Ice Class 1A. FiFi 2. World Wide Trading. Deadweight: 200T. FO: 180m3. Crane: 590kg @ 12.4m. Winch: Ridderinkhof 150T brake. Wire Capacity: 762m x 51mm. Stern Roller. Main Engine(s): 2 x CAT 3516B total 5,000BHP at 1,600RPM. 2 - Rolls Royce Aquamaster prop(s). Bowthruster 150kW. Bollard Pull: 60T. Speed about 11-14kn. Genset(s): 2 - 165kW / CAT. Firefighting: FiFI 1: 2 – 2,400m3/hr monitors with water spray. Inspection: Canada East Coast / Baltic respectively. Delivery: 15 December 2009 / prompt respectively. File: TG50081 Tug - Azimuthing - 82’ loa x 36.73’ beam x 17.22’ depth x 14.59’ loaded draft. Built: 2009 at Armon S.A, Astilleros; Navia, Spain. Foreign flag. GRT: 308. Class: BV. Deadweight: 231T. Main Engine(s): 2 x ABC 8MDZC total 5,000BHP at 1,000RPM. 2 - Schottel prop(s). Bollard Pull: 64T. Speed about 12.3kn. Genset(s): 2 - 160kW / Scania D995M. ASD, open stern tug. Inspection: Baltic. Delivery: Prompt. File: TG49107 Tug - Azimuthing - 106.6’ loa / 95.2’ lbp x 36.9’ beam x 16.4’ depth x 16.4’ loaded draft. Built: 2002 at Damen Gorinchem; Netherlands. Croatian flag. GRT: 394 NRT: 118. Class: CRS - Croatian Register of Shipping; LR +100A1. Deadweight: 278mT. FO: 134.9mT Main Engine(s): 2 x Wartsila 6L26A total 4,976BHP. Schottel SRP 1515 CP prop(s). Bollard Pull @ 55T Astern 147HP. Bollard Pull: 60T. Speed about 13.6kn free on 670L/hr. Genset(s): 2 - 380vAC 50Hz. Firefighting / oil recovery tug. Open for long term time-charter or possible joint venture. Mediterranean. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 54 Marcon International, Inc. Tug Boat Market Report – November 2009 File: TG45114 Tug - Azimuthing - 114’ loa x 35.4’ beam x 18.69’ depth x 15.1’ light draft x 16.4’ loaded draft. Built: 1998 at C.N. San Domingo S.A; Vigo, Spain. Foreign flag. GRT: 496 NRT: 148. Class: GL + 100A5 ME “Tug” + MC E Aut. Deadweight: 288T. FO: 220m3. Winch: 2 Ulstein Brattvaag SL50 + Seebeck 55 mt tow hook. Wire Capacity: 1400/1400m. Main Engine(s): 2 x Deutz SBV8M628 total 4,500BHP. Schottel/SRP 1212 prop(s). Range @ 18 days Bowthruster. Bollard Pull: 55T. Speed about 13.5kn free. Genset(s): 1 - Deutz, 2 - MAN. Firefighting: (no FiFi). Tug periodically open employment. Call for information on rates and availability. Stern drive azimuthing tug fully equipped for harbor assistance, escorting, terminal ops, coastal towage & salvage. Inspection: Europe. Delivery: Prompt. File: TG45001 Tug - Azimuthing - 101.1’ loa / 87.3’ lbp x 33.5’ beam x 15.7’ depth x 15.4’ loaded draft. Built: 2001 at Damen, Shipyards; Gorinchem Holland. Polish flag. GRT: 313 NRT: 99. Class: PRS KM Tug L4 International. Crane: 1 - 6T. Winch: Fore & Aft Towing winches. Remote release tow hook aft. Main Engine(s): 2 x CAT 3516B total 4,500BHP. Aquamaster prop(s). Bollard Pull: 55T. Speed about 13.2kn max. Pump(s): 2 - 20m3/hr. Genset(s): 2 - 85kW, 50Hz AC. Firefighting: 2 - Foam monitors. Foam generator with capacity of 600m3/hr. Damen 3110 Class tug. Inspection: Baltic. Delivery: End of December 2009. File: TG44117 Tug - Azimuthing - 117’ loa / 109.5’ lbp x 35’ beam x 16’ depth. Built: 1995 at Nichols Bros., Freeland, WA. Rebuilt: 2009. U.S. flag. GRT: 149 NRT: 101. Class: ABS International Loadline (exp. May 2013). FO: 110,000g, LO: 2,400g, FW: 2,400g. Windlass: Nordic. Crane: 1 - N. American (4-37T2). Winch: D/D tow winch + Nordic bow winch (600’ of 10” spectra line). Wire Capacity: 2,000’ x 2”. Main Engine(s): 2 x CAT 3516B total 4,400BHP at 1,800RPM. Aquamaster 1701 (78” props) prop(s). Re-powered and Z-pellers rebuilt and upgraded 2009. Bollard Pull: 62T. Speed about 14.3kn. Genset(s): 2 - 90kW/CAT3304. Firefighting: 1-3,000gpm/GM12V71 fire pump. 2 monitors/Skum MK-150. Quarters: 9 in 5 cabins. Air conditioned. Galley. 19’ Zodiac (100HP) Full Schuyler fendering. 1 monitor aft and 1 forward. Deck mounted foam system. Available for charter. Previously chartered thru Marcon. Call for rates and availability. Interested in towing opportunities. Inspection: U.S. Northwest. File: TG40095 Tug - Azimuthing - 95.5’ loa / 87.7’ lbp x 32’ beam x 15.75’ depth x 11.5’ loaded draft. Built: 1996 at Trinity Marine; Lockport, LA. U.S. flag. GRT: 99 NRT: 63. Class: ABS +A1 Towing Service (FiFi), AMS, Ice Class C. Drydocked 3/09. Class up to date. Lt. Disp: 299 lt. FO: 34,359g, LO: 503g, FW: 1,775g, BW: 12,228g. Winch: Almon Johnson double forward (650) & single aft (650). Wire Capacity: 2,000’ x 2” aft. Main Engine(s): 2 x CAT 3516BTA total 4,000BHP at 1,600RPM. 2 - Ulstein 1650H 86” x 80” prop(s). Bollard Pull: 56.25ST. Speed about 14kn free. Genset(s): 1 - 99kW / CAT3406; 1 - 99kW / CAT3304. Firefighting: 3,000gpm fire pump PTO (2 monitors with foam). Radar: Y. GPS: Y. VHF: Y. Quarters: 8 crew. Jensen Maritime Design. Escort, FiFi, Oil Rec, Shipdocking, Harbor, Coastal & Ocean Tug. Inspection: Caribbean. File: TG40080 Tug - Azimuthing - 98.4’ loa x 32.2’ beam x 14.8’ depth x 11.5’ loaded draft. Built: 2003 at Guanghzou, China. Foreign flag. Class: LRS + 100 A1 Tug. Winch: 1 - 60T tow hook SWL; 1 - 10/90T winch. Main Engine(s): 2 x CAT 3512B total 4,000BHP. 2 - ASD Schottel prop(s). Bollard Pull: 54T. Periodically open for employment and tows of opportunity. Call for rates and availability. Inspection: South America. File: TG40079 Tug - Azimuthing - 100.1’ loa x 37.3’ beam x 14.7’ depth x 11.5’ loaded draft. Built: 2004 at Guanghzou, China. Foreign flag. GRT: 313 Class: LRS + 100 A1 Tug. Winch: 1 - Tow hook 60T SWL; 1 - Tow winch 10/90T. Wire Capacity: 600m x 44mm. Main Engine(s): 2 x CAT 3516B total 4,000BHP at 1,600RPM. 2 - Schottel prop(s). Bollard Pull: 52.2T. Periodically open for employment and tows of opportunity. Call for rates and availability. Inspection: Mexico East Coast. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 55 Marcon International, Inc. Tug Boat Market Report – November 2009 File: TG40078 Tug - Azimuthing - 100.1’ loa x 32.2’ beam x 14.7’ depth x 11.5’ loaded draft. Built: 2006 at Guanghzou, China. Foreign flag. GRT: 313. Class: LRS + 100 A1 Tug. Winch: 1 - Tow hook 60T SWL; 1 - Tow winch 10/90T. Wire Capacity: 600m x 44mm. Main Engine(s): 2 x CAT 3516B total 4,000BHP at 1,600RPM. 2 - Schottel prop(s). Bollard Pull: 57T. Periodically open for employment and tows of opportunity. South America. File: TG36145 Tug - Azimuthing - 98.2’ loa x 32.1’ beam x 15.7’ depth x 13.8’ loaded draft. Built: 2000 at Ang Sin Liu Shipyard; Singapore. Singapore flag. GRT: 292 NRT: 87. Class: LR +100A1 Tug +LMC (Unrestricted Service). Deadweight: 110T. FO: 150m3, FW: 25m3. Crane: Palfinger 1T @ 5m. Winch: Plimsoll hydraulic fore & aft 115T brake + hook aft. Wire Capacity: 900m x 44mm. Main Engine(s): 2 x Yanmar 8N21AEN total 3,600BHP. Schottel SRP1212 props. Bollard Pull: 46T. Speed about 12kn. Nijhuis HGT 1,400m3/h fire pump. Genset(s): 2-91kW/Cummins 6BT5.9D(M). Firefighting: 5.0m3 foam. 2 Skum 600m3/h foam water. Quarters: 2-2, 1-6 berth. Air conditioned. 3.0m3 dispersant. Southeast Asia. File: TG30091 Tug - Tractor - 91.41’ loa / 86.9’ lbp x 29.84’ beam x 12.62’ depth x 16.4’ light draft x 17.2’ loaded draft. Built: 1992 at Mutzelfeldtwerft Gmbh; Cuxhaven. German flag. GRT: 237 NRT: 71. Class: GL + 100 A5K E1 + MC E1 AUT. FO: 97m3. Winch: 1 - 80T Ulstein + 40T tow hook. Wire Capacity: 400m x 38mm. Main Engine(s): 2 x Deutz SBV6M628 total 3,100BHP. 2-Schottel 82.5” prop(s). Bollard Pull: 41.59T. Speed about 11.5kn. Genset(s): 2 - 34kW / Deutz 220 / 380vAC / 50Hz. Gyro: 1. Radar: 1. SSB: 1. VHF: 2. Quarters: 6. Schottel ASD tug equipped for harbor assistance, coastal towage. Open for employment. Inspection: Northern Europe. Delivery: Prompt. File: TG17069 Tug - Tractor - 86.8’ loa x 28.9’ beam x 15.74’ light draft x 17’ loaded draft. Built: 1974 at Max Sieghold Werft. Foreign flag. GRT: 179. Class: GL +100 A5 K E Tug. FO: 86m3. Winch: 1 - 90T 15T Brake + 30T Tow Hook. Main Engine(s): 2 x Deutz SBA6M528 total 1,740BHP. 2 - Schottel rudder prop(s). 12 day cruising range. Bollard Pull: 26MT. Speed about 11.6kn. Inspection: Baltic. Delivery: Prompt. Featured Tugs For Sale Direct From Owners File: TG52102 / TG52107 / TG52108 / TG52109 Tugs – ASD (3 – 4 each) - 105’ loa x 38.04’ beam x 17.58’ depth x 12.6’ loaded draft. Built: 2009 at China. Singapore flag. Class: ABS + A1 + AMS FiFi 1. FO: 193m3, FW: 43m3. 2 - 300kg anchor. 22mm chain/wire. Windlass: 1.5mt @ 10m/min capstan. Winch: 1 - 80mt brake; 1 - 70mt tow hook SWL. Wire Capacity: 130m x 52mm dia. Main Engine(s): 2 x Yanmar 6EY26 total 5,200BHP. 2 - CPP Kawasaki prop(s). Endurance: 5,100nm @ 12.5kn. Bollard Pull: 55 - 60T. Speed about 12.5kn. Pump(s): 1 – 1,430m3/hr (fire pump). Firefighting: FiFi-1: 2 monitors - water 1,200m3/hr / foam 600m3/hr. Quarters: 12 (2-1, 2-2, 2-3). Contact Marcon for further details and rate / price ideas. Southeast Asia. File TG44110 / HB39071 Twin Screw Tug / Coastal Self-Discharge Hopper 110’ x 34’ x 16’ depth with a draft of about 14 ft. Built 1999 by C&G Boat Works. Upper Pilot House. Tug works mostly in deep notch of barge. U.S. flag. ABS+A1, Towing Service, Great Lakes Service, + AMS. ABS Great Lakes Loadline. Fuel 70,000 gal. Smatco 66 DAW Double Drum tow winch. 2 x CAT3516B total 5,000BHP @ 1,600RPM. Re-powered in 2000. 7:1 gears. 99” Kaplan stainless steel props in 100” fixed korts. Four flanking rudders. Speed with barge in ballast abt. 10kn & 9kn loaded. Barge 390’ x 71’ x 27’ depth / loaded draft abt. 19.5’. Built 1957 by Todd Shipyards. Rebuilt & converted to present configuration in 1992. U.S. flag. ABS Great Lakes Loadline. Special Survey & drydocking due Mar 2012. Abt. 10,200dwt. 18 holds open top. Mostly in aggregate & rock service. Self-unloading rate abt. 1700 t/h. 150’ boom. Tug & barge connected with wires – not ATB/ITB. Owner prefers sale en-bloc, but will consider separate. US Great Lakes. 56 www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. Marcon International, Inc. Tug Boat Market Report – November 2009 TG40124 Twin Screw Tug 124’ x 31.5’ x 15.8’ depth / 15’ loaded draft. Built 1966 by Nolty Theriot, Golden Meadow, LA. Rebuilt in ‘07. US flag. GRT 180. ABS International Loadline (exp. Jun 2012). FO: 75,000g. 2 x EMD 16-645E total 3,900BHP. Re-powered in 1991. M/Es EPA “Tier 1” Certified. 4.07:1 gears. 96” x 112” stainless props in Nautican nozzles and quad-rudder system. Bollard Pull abt. 66 short tons. Speed abt. 16kn max free running. Almon Johnson single drum tow winch. Pendant drum & gypsy on stern. 2,600’ x 2.25” wire. Hydraulic tow pins. Windlass: McElroy 20HP. 2-85kW/John Deere 480v, 60Hz, AC generators. Full Nav / com gear. Quarters for 10 crew in air-conditioned accommodations. Inspection / delivery U.S. West Coast by arrangement through this office. File: TG39117 / TB70414 Twin Screw Tug / Double Hull Tank Barge 115' x 34' tug. Built 1982 at Bay Shipldg., Sturgeon Bay. U.S. flag. ABS +A1 Towing Service, Great Lakes, +AMS +ACCU (exp. June 2010). Fuel: 65,800g. Markey TDS-32 tow winch capacity 2,200’ x 2” wire. 2 x EMD 16-645E6 total 3,900BHP driving fixed pitch 120” props. 414' x 60' x 30' barge built 1982 by Bay Shipbldg. ABS +A1 Oil Barge Great Lakes. Ice “C”. About 10,150dwt. About 70,556bbl in 12 uncoiled, uncoated tanks. 2 segregations. Inert Gas. No vapor recovery. Double hull OPA '90 compliant. Barge notch-connected to tug via face wires. Tug & barge unit trading in US Great Lakes in fresh water service since delivered new. Gasoline & jet fuel trade. Exclusively in our hands for sale. File: TG34143 Tug - Single Screw - 143’ x 33.1’ x 16’. Built: 1945 at Marietta Mfg.; Point Pleasant, WV. Rebuilt: 2008. U.S. flag. GRT: 592.9. ABS Int’l Loadline (exp Mar 9, 2010). FO: 118,000g. Almon Johnson single drum tow winch + two Beebe face winches. 2 x Fairbanks Morse 38D8-1/8 total 3,400BHP. 4.25:1 gear. Genset(s): 2 – 100kW/GM6 - 71. Ice strengthened hull. Upper pilothouse. Operated mostly in fresh water. Fitted with JAK ATB linkage system. Mated with file TB51360, but can be sold separately. U.S. Great Lakes. File: TG33105 Ice Breaking Tug - Single Screw - 106.6’ loa / 95.8’ lbp x 31.16’ beam x 17.4’ depth x ‘ light draft x 15.74’ loaded draft. Built: 1972 at Asi-Verkstads, Sweden. GRT: 333 NRT: 100. Class: LR +100 A1 Tug Ice 1 + LMC. Ice Class 1A. Special Survey due April 2013. Crane: 9MT. Winch 930m x 38mm wire capacity. Main Engine: 1 x Ruston 12ATCM 3,360BHP. CPP prop. Bowthruster 250BHP. Bollard Pull: 33T. Genset(s): 2 - 99kW / Scania / 380vAC / 50Hz. Strong ice track record. Inspection: Northern Europe. File TG32166 Single Screw Ice-Breaking Tug 36.3m x 10.0m x 6.2m depth. Built 1970 at P. Hoivold Mek. Verksted; Norway. Panama flag. GRT: 515. DNV +1A Tug Ice 1A, EO. Special Survey due Jan 2013. FO: 280m3. 72mt SWL tow hook. Brattvaag 30 ton winch. 2T hyd. crane. 1 x Atlas MaK 8M551AK 3,200BHP / 4,000IHP, overhauled ‘08. Controllable pitch Hjelset 4-blade prop. Bollard pull abt. 34mt. Free running speed abt. 13.5-14kn max. Brunvoll 450HP bow thruster. 2115kW/Volvo & 1-12kW/Lister 220vAC 50Hz generators. Two fire monitors. 360m3 fire pump. Foam 10m3. 300m3/h fixed salvage pump + portable. Full com/navaids. 10 single & 1 double cabin. Owners advises tug in extremely good condition and insist vessel must be seen & tested to fully appreciate condition. Northern Europe. File TG32159 36m Utility Tug / Workboat 36.0m x 10.4 m x 5.0m depth. Built 2009 China. GRT Abt. 499. BV I Hull, Mach, Tug Unrestricted Nav, SOLAS. FO abt. 350m3. FW abt. 100m3. 40T double drum winch. Open stern with stern roller. 2 x Cummins KTA-50M2 total 3,200BHP. Bollard pull abt. 40 tonnes. Max. speed abt. 12 kn free running. Twin Disc 6:1 gears. Fixed pitch prop in korts. Bowthruster – 3.2mt thrust. 2-240kW / Cummins 415v, 50Hz AC generators. Full com / navaids. Accommodations for 16 in 6 cabins. Full A/C. Far East. Sister units may also be developed. Marcon has sale pending on newbuilding 190’ AHTS, DPS-1 units from same Owner. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 57 Marcon International, Inc. Tug Boat Market Report – November 2009 TG32122 Twin Screw Tug 122.3' / 118.3' x 29.5' x 14.8' / max draft 12.75'. Built 1976 at Robin Shipyard Pte.; Singapore. Singapore Flag. G/NRT 471/282. Class ABS +A1, Towing Service, +AMS. Exp. Nov 2010. Fuel Oil: 233T; Fresh Water 43T. Koyo KEW 20/10T @ 7/14M/min tow winch with capacity for 500M 50mm wire. Koyo KTS 40T hook. 2 x Niigata 8MG25BX total 3,200BHP @ 720RPM. Fixed pitch props in kort nozzles. Bollard pull abt. 35MT. Free Running speed abt. 9.5kn on 7.5T/day. Range 5,300 nautical miles. Endurance 31 days. 2 - 100KVA Yanmar 50Hz/3Ph generators. Diesel driven 150M3/h @ 80M fire pump. Full Navaids including GMDSS, SSB, VHF, Radar, Echo sounder Air conditioned accommodations for 14 persons. Prompt inspection / delivery Southeast Asia. File TG30061 Forward Mount Azimuthing Tug 28.85m x 10.36m x 3.81m depth / 5.40m max draft. Built 1981 by Omni Fabricators / Valley Shipbldg; Texas. Netherlands flag. GRT 272. ABS +A1 Towing, ACCU, +AMS, Unrestricted thru Jan 2013. FO 222,500L. Intercon SD150 tow winch 68T brake with 27T line pull. 2 x EMD 12-645E6 total 3,000BHP. Azimuthing drives forward with skeg aft. Double hull surrounds the engine room. Bollard pull abt. 45 tonnes. Max speed abt. 11.5kn. 2-99kW/GM6-71 440vAC 60Hz generators. Full com / navaids. Accommodations for six in 3-2 berth cabins. “As is, where is”. Europe File TG30029 / TG30088 / TG31088 Forward Mount Azimuthing Tugs (3 each) - 27.00 / 26.02 x 9.10 x 3.70m depth. Netherlands flag. GRT 250. Built 1988 / 1987 by Cant. Navale “Ferrari” S.p.A.; Italy. RINA +100-A-1.1 NAV S; RE. FO 43,300L. 2 x Deutz SBV6M 628 total 3,100HP. Twin Aquamaster US-1401 azimuthing drives forward with 2.0m fixed propellers. Skeg aft. Bollard pull abt. 45 tonnes. Service / Maximum speed abt. 10.7/12kn. 2-38kW/Deutz 220/380vAC 50Hz AC generators. Single drum 80 tonne brake tow winch. Tow hook. “Loop” shaped tow bitts. Remote 600m3/h foam-water fire monitor on mast. Full com / navaids. Bridge control of propulsion, winch, tow hook and FiFi monitor. Superstructures on anti-vibration elastic mountings. Good visibility from pilothouse. Accommodations for 6 in 2-1 and 2-2 person cabins. “As is, where is” Europe. Further details and price guidance on request. File TG28072 Twin Screw Tug 74.0’ x 30.0’ x 11.0’ full load draft. U.S. flag. GRT <100. FO abt. 25,340g. 2 x Cummins QSK 38 total 2,800BHP. High fuel efficiency, small environmental footprint. Meets or exceeds EPA Tier II emissions regs. 5.17:1 gears. 72.0” Kaplan props in Type 37 stainless steel lined korts. Endurance abt. 710 days. 2-65kW generators. 2,000gpm fire pump. Forward deckhouse-mount monitor. Full walk-around bridge deck. Traditionally laid out wheelhouse with 360° view. Designed for two man operation. Bridge control of engine room & winches. Air conditioned accommodations for 5– 6. Tug designed to fill niche between 2,400-3,200HP tug market for harbor work, fireboats and construction ops as well as coastal towing. ABS “ice-class” hull standard for sturdiness & icebreaking. Increased 5/8ths inch steel thickness & tighter framing in bow and stern ensures increase in the useful life of tug beyond the normal or statutory life. U.S. Great Lakes. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 58 Marcon International, Inc. Tug Boat Market Report – November 2009 File: TG23106 Twin Screw Line-Handling Tug 29.90 x 9.57m x 4.00m depth x 2.58m operating / 3.0m max draft. Built in 1993 by McTay Marine; U.K. GRT 269. ABS A1, AMS. Special Survey expected to be completed mid-Nov ‘09. Drydocking due Aug 2011. International Load Line. Abt. 121mtdw. FO: 51.9m3. FW: 24.6m3. BW: 30.0m3. Main deck wood sheathed. 30 ton SWL tow hook complete with quick release arrangement from bridge. 6mt line pull capstan. Stern roller. Tow pins. 19 ton/m crane with outreach of 12m. 8 man RIB workboat. 2 x CAT 3512TA total 2,350BHP. 2m fixed pitch outboard turning manganese bronze props in kort nozzles. Bollard pull abt. 33 tonnes. Service speed abt. 12kn. 2-75kW 380vAC 3Ph 50Hz generators. Induced foam system and 200m3/h @ 70m head fire pump. Lever operated fire monitor on top pilothouse. Rope guard pipe system with spaced nozzles for waterspray during firefighting. A/C accommodations for 13. Well elevated pilothouse with good visibility. Hydraulic steering. Wheelhouse protected by 4” Sch. 80 pipe rope arches. Balanced hinge mast. Originally designed & built as highly maneuverable in-shore line handling tug for tanker ops including mooring of tankers up to ULCC size at offshore SPM, inshore towing of tankers as required and maintenance support of offshore facilities in wave heights of 3m and wind force of Beaufort 7. Reportedly very good condition. West Africa. Further details, small scale drawing, survey status and price guidance on request. File: TG22599 Tug - Twin Screw - 100’ loa / 91.5’ lbp x 26.99’ beam x 13.75’ depth x 10’ loaded draft. Built: 1973 at Main Iron Works, LA. U.S. flag. GRT: 191. ABS Loadline. FO: 115.62MT. Winch: Double Drum (new). Main Engine(s): 2 x CAT D399 total 2,250BHP. CAT gears. FPP props. Gensets: 2 - 60kW. U.S. Gulf. TG20096 Twin Screw Tug 95.7' / 88.0' x 28.0' x 14.5' depth / max draft 11.25'. Built 1982 at Mipe Shipbuilding Pte Ltd.; Singapore. Singapore Flag. G/NRT 234/70. Class ABS +A1, Towing Service, +AMS, Exp. July 2012. Fuel Oil: 125T; Fresh Water 20T. 25 tonnes diesel hydraulic towing/anchor winch with capacity for 550m x 44mm dia tow wire. 2 x Stork Werkspoor FFHD 240 diesels total 2,000BHP @ 1,000RPM. Towmaster Design 6blade rudders with kort nozzles. Bollard pull 31mT. Free running speed 11kn on abt. 6.5mT/d. Range 6,300 miles. Endurance 24 days. 2 75kW/GM4-71N/415V/3Ph/50Hz generators. Full Navaids. Air conditioned accommodations for 12 persons. Units available for sale individually or enbloc. Prompt inspection / delivery Southeast Asia. File TG17005 Twin Screw Tug 85.0’ x 24.8’ x 10.2’ depth / abt. 8.0’ operating / 7.0’ min & 9.5’ max draft. Built 1964 by Equitable Equipment; Madisonville, LA; USA. Belize flag. G / NRT 144 / 43. Built to ABS, but class discontinued in 1997. Meets Caribbean safety codes. Tow hook, “H” bitt and capstan. No tow winch. 2 x CAT D398TA total 1,700BHP at 1,225RPM. Fixed pitch props. CAT 3192 3.95:1 gears. Rebuilt both port main engine and both gears / clutches in 2007. 2-40kW / CAT D320 and 1-27kW / Perkins 3 cyl. generators. Air conditioned crew’s quarters. Caribbean. File TG16093 / TG16132 Single Screw Tugs (2 each) 90' x 26.8' x 10.5' x 14.5' loaded draft. Built: 1967 at Bludworth Shipyard; Houston, TX. Rebuilt. U.S. flag. GRT: 138. FO: 30,054g. Hydraulic capstan. "H" bitts fore & aft. 1 x EMD 16645CL total 1,700BHP at 750RPM. Repowered 1991 and 1987 respectively. 4-blade stainless steel 96" x 66" prop on 11.5" shaft. Bollard Pull: 38,300lbs ahead, 29,300lbs astern. Speed about 12.5kn free. Genset(s): 2 - 60kW / GM6-71 208vAC 60Hz. Fire pump with 100gpm monitor on deck behind wheelhouse. U.S. Gulf Coast. TG16083 Twin Screw Tug 82.0' / 78.6' x 24.9' x 11.5' depth / max draft 9.18'. Built 1993 at Nam Cheong Dockyard Sdn. Bhd.; Miri. Singapore Flag. NKK NS +(TUG)/MNS* Last Special Survey / Drydock Aug. 2008. Fuel Oil: 106m3; Fresh Water: 17m3. El/hydraulic tow winch SMSHTW/SD-10/60, brake holding 60T. Tow hook 20T SWT with quick mechanical release. 2 x Cummins KT-38M total 1,600BHP. 4-blade fixed pitch props in kort nozzles. Free running speed abt. 9kn. Bollard pull abt. 21mT. 2-35kW Perkins generators. Full Navaids. Accommodations for 10 persons. Southeast Asia. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 59 Marcon International, Inc. Tug Boat Market Report – November 2009 File: TG13069 Tug - Twin Screw - 73’ x 24’ x 9.8’ depth. Built: 1979 at Service Machine, LA. Rebuilt: 2008. U.S. flag. GRT: 116. Unclassed. FO: 21,000g. Smatco single drum tow winch with pendant drum. Markey hydraulic capstan. Stern roller. 2 x Cummins QSK19M total 1,320BHP at 1,800RPM. Last Overhauled: 2008. TD527 5.17:1 gears. 61” x 54” 4 blade props on 6” shafts in kort nozzles. Repowered 2008 with Tier II (=200hrs in Nov 2009). Genset(s): 2 - 30kW / Northern lights (new ‘08). Call for price guidance. New tow pin assembly. Reportedly in very good condition. Inspection: U.S. West Coast. File: TG10064 Tug - Twin Screw - 64.5’ loa x 16.8’ beam x 7’ depth. Built: 1961 at Guntert & Zimmerman. U.S. flag. GRT: 50 NRT: 40. Class: Last haul out Sept 2009. FO: 4,600g, LO: 500g, FW: 1,000g. Winch: Hydraulic. Wire Capacity: 900’ x 1 1/8” wire. Main Engine(s): 1 x CAT 379DTA 510BHP. CAT3181 3:1 gear. Genset(s): 1 - 15kW / Cummins / single phase (new Feb ‘09). Radar: 2. GPS: Y. Fathometer: Y. VHF: 3. Steel hull construction. Hauled out Sept. 2009. New wheels, zincs, bottom paint. M/E valves adjusted, new injectors, rack adjustment (May ‘09). Hydraulic lines, tow winch, electronics (new 2007). Galley / bunks rebuilt 2008. Inspection: U.S. West Coast. File TG06045 Tug – Twin Screw 45.0’ x 12.5’ x 7.2’ depth x 5.5’ light / 6’ loaded draft. Built 1953 by National Steel and Shipbuilding; San Diego, CA. Former U.S. Army ST single screw tug operated by U.S. Army Corps. of Engineers and since converted to twin screw / twin rudder in 2007. U.S. Flag, GRT 27 / NRT 21. U.S. Coast Guard Towing Vessel Exam passed December 2008. FO abt. 800g diesel. Welded steel hull. 0.250-.290” shell plate on transverse and longitudinal framing. UT Readings from April 2007 were from .235-.255 inches near the garboard strake and from .275-.290 inches above the garboard strake. 2 x GM 6-110 diesels total 500BHP at 1,800RPM. Keel cooled. Allison 2.0:1 gears. Hynautic hydraulic steering. New 7kW / radiator cooled Kubota Model D905 generator installed in 2007. 12V DC electrical system. Three 8D 12VDC batteries. “H” bitt aft and two barge winches. Bow pud. Split rail pipe fendering. On deck hose station and fire monitor mounted on top of wheelhouse fed by 2” Viking fire pump driven by main engine PTO. 2 VHF radios. Magnetic compass (not installed); Raytheon Pathfinder Radar, Garmin GP-76 GPS. Searchlight. Hull reportedly in very good condition. Vessel is working in fresh water. Available for prompt inspection and delivery in Northern New York state by arrangement through this office. Further details on these and other tugs and barges are available on our website at www.marcon.com. www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. 60