newsletter 039

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TTSR News

Deep Sea Vessel (DSV) "ALVIN" (built 1965) undertakes one of many dive surveys on the sunken wreck of the passenger steamship RMS "TITANIC" (built 1912) by the Harland and Wolff shipyard in Belfast, Ireland.

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T&T SHIPBUILDER & REPAIR NEWS www.tts-r.com ISSUE #039 – DECEMBER 2010. +1 (868) 384 - SHIP

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On November 2, 2010 the Honourable Minister of Labour & Small and Micro Enterprise Development invited our S&R LeaderSHIP to his Head Office located at the International Waterfront Centre, Port of Spain to hold a wide range of discussions pertaining to our Shipbuilding and Repair industry. Discussions centred on training, the establishment of our new shipyard at La Brea, south western Trinidad and the provision of apprenticeship training to persons wanting to enter the industry. We thank the Honourable Minister Errol Mc Leod MP, who is also a well known former industrial Labour Leader and his Senior Staff for taking the time to meet with us to share his vast industrial experience.

T&T SHIPBUILDING & REPAIR (S&R) CLUSTER

Diversifying our Economy, one Ship at a time©...

Hello S&R Stakeholders,

S&R LeaderSHIP meets Minister of Labour & Small and Micro Enterprise Development

Consul General for Panama participates in S&R Early Morning Edition Programme

On behalf of our Shipbuilding and Repair LeaderShip Team, Merry Christmas and many good wishes for a new year of happiness and prosperity.

Sincerely, T&T Shipbuilding and Repair Cluster. Wilfred de Gannes. Deputy Leader.

Señor Cesar Gomez, who is the Consul General for Panama based in Trinidad and Tobago, accepted our invitation to participate in a live televised interview held on December 14, 2010. He also has some twenty-nine (29) years of experience in different divisions of the Panama Canal Authority (ACP), including their shipyard operations. Our Early Morning Edition host Felipe Noguera, asked several industry relevant questions pertaining to the latest maritime initiatives at La Brea, Trinidad and in Panama and the region. To view this television interview available 24/7, please visit our Facebook I NEW LA BREA VISION website.

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WÄRTSILÄ STRENGTHENS MARKET LEADERSHIP WITH NEW LNG

POWERED PLATFORM SUPPLY VESSEL ORDER Wärtsilä, the marine industry’s leading solutions provider, has strengthened its position as the global leader in supplying design and propulsion solutions for Liquefied Natural Gas (LNG) Platform Supply Vessels (PSVs) with yet another important order.

The new Platform Supply Vessels (PSVs) for Eidesvik Offshore will include an integrated Wärtsilä gas power solution featuring the recently launched Wärtsilä 20DF engine.

Norwegian operator Eidesvik Offshore has placed an order for its fifth gas PSV. This latest order further demonstrates Eidesvik’s position as the world leader in environmental friendly gas powered PSVs. All Eidesvik’s gas PSVs, including this latest order, are designed by Wärtsilä and utilize Wärtsilä’s unique dual-fuel technology. In addition to the complete design of the vessel, Wärtsilä’s scope of supply for the new PSV includes the dual-fuel main engines and generating sets, the electrical power and propulsion system, integrated automation, and the power management system. The vessel will be fitted for use in arctic waters with ‘winterization’ and de-icing solutions, and is to be built at Kleven Verft in Norway.

Wärtsilä at the forefront in environmental vessel solutions

The new Wärtsilä VS 489 Gas PSV design represents a state-of-the-art vessel. It features outstanding energy efficiency, a unique hull form, fuel flexibility, and outstanding vessel performance in areas such as fuel economy and cargo capacity. The Eidesvik orders include a unique configuration of the gas electric propulsion system. This is based on a combination comprising the Low Loss Concept for Electric Propulsion, the Wärtsilä 34DF main engines, and the recently introduced Wärtsilä 20DF engine. The dual-fuel units enable, in addition to heavy fuel oil (HFO) and marine diesel oil (MDO), the use of gas as a main fuel for marine applications. Wärtsilä’s ability to offer total concept solutions that include the design of the


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vessel, the propulsion plant, electrics and automation, and a host of fuel saving and environmentally sustainable options, has given the company a notable competitive edge – particularly in the area of specialty vessels such as Gas PSVs.

The Wärtsilä 20DF completes a wide portfolio of dual-fuel engines

Picture of a Wärtsilä 20DF generating set

The Wärtsilä 20DF engine is the latest addition to the company’s complete portfolio of dual-fuel engines. This industry leading technology offers the marine sector numerous benefits, including the primary advantage of having the flexibility to utilize different fuels. At a time of uncertainty in the cost of liquid fuels, and as environmental legislation becomes increasingly stringent, this flexibility enables the use of cost-efficient and environmentally friendly LNG as the main fuel. In case of interruption to the gas supply, Wärtsilä DF engines automatically switch to diesel mode operation without any loss in speed or power output. Single fuel installations obviously lack this additional level of operational safety.

“The combination of our unique design capabilities, and the introduction of the Wärtsilä 20DF dual-fuel engine, means that the customer will have a highly efficient vessel to operate in all conditions. The energy efficiency, cargo capacity and overall performance are all outstanding,” commented Tor Henning Vestbøstad, Sales Manager, Wärtsilä Ship Design. Vestböstad also emphasises the company’s excellent collaboration with both Eidesvik and Kleven, which has been an important factor in the success of this project.

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EUROPEAN SHIPBUILDERS SUPPORT SHIP EMISSION REGULATIONS The Community of European Shipyards’ Associations (CESA) Technical Advisory Committee met at the European Maritime Safety Agency on a series of items related to reduction of emissions from ships. Top industry experts in a number of different technical fields provided detailed presentations mainly concerning different forms of air emission from ships including green house gas, SOx and NOx as well as noise. Issues related to anti-fouling paints were also raised. The exchange of information and views made clear that most objectives of the regulators are not only fully supported and constructively facilitated by CESA but that CESA demonstrated its various efforts to constructively contribute to solving the remaining technical issues related to the development of the Energy Efficiency Design Index. It appreciated EMSA’s work in this context, confirming some of the CESA’s earlier voiced concerns. While CESA fully subscribes to the clear preference for finding an international approach for the reduction of greenhouse gas emissions from ships, there is also the need to recognize substantial shortcomings of the EEDI concept implementation. The slow impact of the EEDI, the hypothetical rather than measured emission reduction, the threat of advocating under-powered ships and some flaws in the mathematical formula of the EEDI are reminders that the concept is a political compromise in the absence of any other mandatory instrument being politically achievable. On SOx and NOx, EMSA informed about its on-going review of all available studies on the impact of the new MARPOL Annex VI provisions. CESA tabled its new adopted position paper on the issue (see annexed) and confirmed its appreciation of the firm position expressed by the European Commission. Concerns regarding a possible modal backshift impact could be effectively addressed by investment in energy saving and in abatement technology. Furthermore, investment in gas-fueled ships provides substantial additional business opportunities. The precondition for the necessary investment decision is a reliable regulatory basis. Recent political statements suggesting a possible rewind of the regulatory requirement are considered not only unrealistic but also as detrimental to investment decisions. CESA encouraged EMSA to issue its report as soon as possible in order to counteract any perception of regulatory uncertainty. On the issue of noise on board of ships, CESA informed about the technical state of play. With regard to the regulatory development, CESA expressed the view that ambitious regulatory requirements are considered beneficial to European shipyards thanks to their technical edge over any global competitor. However, whatever rules are proposed still need to respect the practically possible, which is why the close dialogue of the regulators with the competent industry experts is considered essential to arrive at sound results. Noise emitted to the marine environment was also discussed. Industry is actively addressing this matter, which still requires substantial scientific research. On anti-fouling paints, CESA experts provided in-sight into the best available technology to mitigate risks related to paint applications. Also in this area, proper communication with


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regulators is considered essential in order to safeguard the continued availability of the required paint products for maritime applications. EMSA and CESA concurred in the view that the strengthened dialogue between the two organisations served mutual interests. It was agreed that such workshops would in future be conducted on a regular basis. CESA, the Community of European Shipyards’ Associations, represents directly more than 99% of the EU shipbuilding production with more than 300 shipyards producing, converting and maintaining merchant and naval ships and other floating objects. European shipyards supply more than 100,000 direct jobs for a highly skilled labour force, generating an annual turnover of €30 – 40 billion. CESA comprises 14 National Associations from the EU, Norway and Croatia.

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Bottom Line: It isn’t risky when you know what you are doing - just exciting.

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INDIAN SHIPYARDS SET FOR SMOOTH SAIL The Indian shipbuilding industry could witness good times once again following a significant rise in offshore activities and favourable policy changes.

While the boom in the offshore segment is expected to pump up order-books, certain favourable policy changes could help the Indian players compete with global players more effectively. “Globally favourable demand drivers – rise in oil prices, pick-up in demand from the US and Europe, rising upstream E&P expenditures and age profile of the fleet – are manifesting for the offshore segment, which is the core strength of most Indian shipyards,” Sanket Maheshwari, research analyst, ICICI Securities, wrote in a research note. Kejal Mehta, research analyst at Prabhudas Lilladher, said some revival has already been witnessed in the global offshore order-book in the last couple of months. “However, the Indian shipyard companies are yet to see this kind of revival, though they have been talking about increase in the number of enquiries. There may not be a major revival in the short term, but we could see something on those lines in the next few months,” said Mehta. The offshore segment contributes 50% to 60% to the total business of Indian shipyards. Out of these, ABG Shipyard and Bharati Shipyard are the ones ideally positioned for such orders.“We recently received orders worth Rs2,500 crore in the offshore segment. In the next two years we expect orders to double to around Rs5,000 crore from the offshore segment alone,” said Dhananjay Datar, CFO, ABG Shipyard. The company’s current order-book is at around Rs14,300 crore, with 60% of this from the offshore segment. Vijay Kumar, managing director, Bharati Shipyard, is also positive on expected orders from the offshore segment. “This would be speculative, but we are expecting orders in the range of around Rs1,000 crore to Rs1,500 crore from the offshore segment in the next two years.” The company’s total exposure in the offshore segment is around 65%, with an overall current order-book of above Rs5,000 crore. Both company officials believe defence and offshore would drive demand for Indian shipyards in the next couple of years. The ICICI Securities research note points out that shipyards may also witness some immediate triggers such as orders from Shipping Corporation of India, continued subsidy, new defence contracts and rig & tanker orders. Hence, pent-up demand, especially in offshore, is set to translate into new orders. SCI has a financial outlay for every year over the next three years of close to $1 billion. With the recent government decision to relax the pre-qualification clause for Indian shipyards, the local players are keen on these orders.


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While the clause relaxation would help, the companies have to be price competitive to bag these orders. “Even with the relaxation on the pre-qualification clause, it would be difficult for Indian shipyards to match prices with the global players like China. To match up to that price level, these companies will have to reduce margins,” said Mehta. If the central government decides to revive its subsidy policy for shipyards, that could further help companies to become cost competitive. However, there is still less clarity on whether the subsidy would be revived and if it is will it apply to domestic orders as well. Amid these positive changes, merchant shipbuilding may continue to remain under pressure. Merchant shipbuilding will take time to recover from the excesses in ‘07-08. This is especially true for dry bulk, wherein current order-books are expected to be less than 45% of the fleet, said the ICICI securities research note.

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MY FAVORITE MARITIME MOVIE

GHOST SHIP (2002) RATING – 5.3/10

A salvage crew working on a decaying luxury liner in the Bering sea discovers that the vessel is anything but deserted

To view ‘Ghost Ship’ trailer, please click: http://www.youtube.com/watch?v=owzxUFasqSs

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INTERNATIONAL NEWS

18,000 TEU Container Ships - Dec 18, 2010 There have been several reports in the recent press about an imminent order for several 18,000 TEU container ships for Maersk, to be built by Daewoo in Korea. So far no “order” has been confirmed and it may yet be some time until a ship of this size is ordered. One thing is certain, that it is not a question of “if”, but rather of “when.” MAN B&W published a detailed paper Propulsion Trends in Container Vessels in 2004 on the subject of how big ships will grow and concluded that the size of 18,000 TEU is the most likely ceiling. Estimated dimensions of such a ship would be 200,000 dwt, LOA 470 m, Beam 60 m and draft 15.7 m: a speed of 25.5 kts would require a propulsion power of 103,000 kW. This size of ship is sometimes referred to as Malacca-max as a draft of 21 m is the maximum permissible draft through the Malacca Strait.

Malacca-max ships will be restricted to ports it can visit where the infrastructure can take such large and deep vessels and have handling equipment to permit a rapid turnaround of cargo unloading and loading.

The paper postulated that propulsion of such large vessels could be achieved with a single screw powered by an 18 cylinder version of an existing 980 mm bore engine or a 14 cylinder version of a new 1080 mm bore engine. Limitations on casting capabilities to produce propellers of such a large diameter have or could be overcome.

Hempel opens new factory in Guangzhou - Dec 16, 2010

Hempel has opened a new, state-of-the-art manufacturing facility in Guangzhou, China. The new factory will help Hempel to meet the increasing demand for coatings in the region. The factory also includes a new research and development centre.

"This production facility showcases the most advanced technologies in coatings manufacturing", says Hempel CEO Pierre-Yves Jullien, who officially opened the new factory. "And our new R&D and in-house training centres in Guangzhou will boost innovation in the region and for Hempel worldwide". With 56,000 square meters of space, Hempel's newest and largest factory is expected to produce more than 42 million litres of coatings per year, with a maximum production capacity of 55 million litres. The Guangzhou factory replaces Hempel's oldest Chinese factory in Shekou, China, and employees have now moved to the new location. The factory uses the latest technology to recover materials and reduce the plant's carbon footprint. This includes an automatic batching system to reduce dust emissions and minimise the manual handling of powders and a recovery system to recycle solvents for future use.


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Caribbean carriers to introduce bunker rate hikes - Dec 15, 2010

The Caribbean Shipowners Association has announced that its member liner carriers will implement bunker surcharge hikes, effective from January 2, 2011.

The increases will be applied on top of present levels. They are as follows: US$30 per 20-foot container, $60 per 40-foot container, and $67.50 per container larger than 40 feet, reports the Asia Shipper.

It said the bunker surcharge hikes will apply to all southbound and northbound services between the United States and the Caribbean destinations of Anguilla, Antigua, Dominica, Grenada, Montserrat, Saba, St. Barths, St. Eustatius, St. Kitts & Nevis, St. Lucia, St. Maarten, St. Vincent, Trinidad, Jamaica, Guyana and Suriname.

Members of the Caribbean Shipowners Association are Bernuth, CMA CGM, Crowley, Seaboard Marine, Seafreight Line and Zim.

Panama Canal reopens after heavy rain - Dec 10, 2010

The Panama Canal reopened on December 9 after heavy rain forced its closure for 17 hours, said the Authority of the Panama Canal (ACP).

It was the first time Panama Canal traffic was suspended since the United States invasion in 1989.

"The Canal is now operating. The suspension was due to the strong rains in the Canal basin and other parts of the country," said ACP Administrator Alberto Aleman Zubieta.

Traffic through the Canal, which accounts for five percent of the world trade flow, was suspended December 8 due to heavy rains that left eight people dead and 1,500 others evacuated.

According to Zubieta, the Canal was temporarily shut because both Gatun and Alajuela dams, which provide water to the Canal, reached their historical maximum capacity.

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OCEAN SCIENCE GIANT ALVIN SET FOR UPGRADE Few research tools in the history of science can match the achievements of “ALVIN”, the US manned deep-submersible.

DSV “ALVIN” regularly undergoes a service but this latest upgrade should transform its capabilities

It was this 46-year-old vessel which discovered the hot volcanic vents on the ocean floor that transformed ideas about where and how life could exist. The sub is also famed for finding an H-bomb lost at sea and for making one of the first surveys of the Titanic. But this veteran of the abyss has been withdrawn from service this week as it gets ready for a major re-fit. “ALVIN” is to undergo a two-phase, US$40m (£26m) upgrade that will allow it eventually to stay down longer and to go deeper - much deeper than its current 4,500 metres (14,800 feet) limit. "Going to 4,500 metres means we can dive in about 68% of the ocean," explained Dr. Susan Humprhis from the Woods Hole Oceanographic Institution (WHOI). "When we go to 6,500m, we will have access to 98% of the ocean. That will make a huge difference; there is so much more to see down there," she told BBC News. Dr. Humphris has been speaking here in San Francisco at the American Geophysical Union (AGU) Fall Meeting, the world's largest annual gathering of Earth and planetary scientists.


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“ALVIN” made its first dive in 1965. Since then it has carried some 1,400 people on more than 4,500 dives. The vessel undergoes a big service every few years, but the latest will be its most significant to date. The key upgrade in the National Science

Foundation-funded work will be the integration of a new US$10 million titanium personnel sphere - the "cockpit" in which the pilot and two research passengers sit. Forged from giant ingots weighing 15.5 tonnes, this protective ball is 16.2 centimetres (6.4 inches) larger in diameter than Alvin's current sphere. Its walls are thicker, too, to cope with the greater pressures at 6,500 metres.

The new sphere will have five viewports instead of the existing three. These windows will provide larger and overlapping views, which will give researchers a much better idea of what is happening outside the sub.

The WHOI has brought a mock-up of the new sphere to the meeting to show the community what the finished cockpit will be like.

Other improvements in the first phase will include a new floatation foam, a new command-and-control system, better lighting and cameras, increased data-logging capabilities, and better interfaces with science instruments.

Not all its components will be changed in the first-phase re-fit, however, and it is only when all the sub's critical elements have been upgraded, including installing lithium-ion batteries for enhanced power, that “ALVIN” will be permitted to go to 6,500 metres. That could be in 2015.

The upgrade will start in January. When it returns to the water in 2012, “ALVIN”(built 1965) will be a lot more comfortable.


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Next-generation Alvin submersible.

"People don't realise that in many ways it's a lot more difficult taking people to the bottom of the ocean than out into space," explained Dr. Humphris. "When you go into space, you're going from one atmosphere of pressure to zero; when going to the bottom of the ocean, you're going from one atmosphere to 650 atmospheres. Alvin is our space shuttle, if you like."

The vessel is a research workhorse. Its final dive before the refit recently occurred when it went down into the Gulf of Mexico to inspect corals, to see how they might have been affected by the recent Deepwater Horizon oil well blowout.

Its greatest contribution to science, however, is unquestionably its discovery in 1977 of a system of hydrothermal vents off the Galapagos Islands.

Before its crew saw the vents' extraordinary array of animals thriving in the mineral-rich, hot waters gushing from cracks in volcanic rock, everyone assumed all the deepest places in the oceans would be like deserts - there would be no life.

Today, we know different, and at this year's AGU meeting, UK scientists have been presenting their discovery of vents at 5,000 metres, the deepest yet observed.

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This system was found in waters at a location known as the Mid-Cayman Rise just south of Cuba. It was explored by robotic vehicles; the Rise is beyond the current capabilities of the manned Alvin. But one of the discoverers, Dr. Bramley Murton from the National Oceanography Centre (NOC), knows Alvin from a dive he made in the vehicle 10 years ago, and said it would be "phenomenal" to take the upgraded sub to see the new the Mid-Cayman Rise system "face to face".

"These places are extraordinary," he told BBC News. "You see sights you can barely imagine - rocks covered in bacteria that fluoresce purple, green and blue, and very strange animals. It's a different world down there."

Dr. Humphris said Alvin scientists often get asked - as astronauts do - to defend the value of sending people to risky places when robots could do much of this work.

"My answer to that is simple," she said. "Watch a video of the Grand Canyon and then go there yourself; then you'll realise why we go to the bottom of the ocean with human-operated vehicles. It is this question of having an eye and brain actually looking in 3D at something. I think your whole perspective changes.

"There's a big difference between looking at something on a flat-screen TV and then going down and being there, and being able to see things within their environmental context."

Peter Girguis has no doubts about the need for a human-operated vehicle. The Harvard University researcher is chair of the deep-submergence science committee.

He told reporters here: "Eighty percent of our biosphere - that is 80% of the portion of our planet that is habitable by life - is deep ocean, deeper than 1,000 metres.

"Everything that we typically think of, the continents and all that, is a minority. “ALVIN” has been enabling us to study about two-thirds of that for many years now. The “ALVIN” upgrade promises to enable us to have a better capacity to go to deeper depths to study processes that we know are all interconnected.

"Our climate, the health of our ecosystems, the sustainability of our fisheries - all depend on processes that take place in the deep ocean."

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MARITIME INDUSTRY WEB LINKS

ABG SHIPYARD - www.abgindia.com/ CANTRX LIMITED - www.cantrexaluminium.com/ CARIBBEAN ANALYTICAL SERVICES LIMITED - www.casl-group.com/ CARIBBEAN SHIPOWNERS ASSOCIATION - www.caribbeanshipping.org/ CATERPILLAR LOCAL DEALERSHIP - www.tracmac.com/ CCN TV6 - www.tv6tnt.com/ COMMUNITY OF EUROPEAN SHIPYARDS’ ASSOC. - www.cesa-shipbuilding.org/ COMPREHENSIVE INSURANCE BROKERS - www.insurance.co.tt/ CONRADO BEACH RESORT LIMITED - www.conradotobago.com/ ENGINE TECH COMPANY LIMITED - www.man-mec.com/ HEMPEL - www.hempel.com/ LLOYDS REGISTER GROUP - www.lr.org/ MINISTRY OF LABOUR & SME DEVELOPMENT - www.molsmed.gov.tt/ MINISTRY OF TRADE & INDUSTRY - www.tradeind.gov.tt/ NEW LA BREA VISION - www.facebook.com/pages/New-La-Brea-Vision/132243123490889 NEW LA BREA VISION - www.issuu.com/newlabreavision/

PANAMA CANAL AUTHORITY (ACP) - www.pancanal.com/

PROTEC INTELLIGENCE SERVICES LIMITED - www.protec-tt.com/ T&T SHIPBUILDING & REPAIR - www.tts-r.com/ T&T SHIPBUILDING & REPAIR - www.flickr.com/photos/ttshipbuildingandrepair/sets/ T&T SHIPBUILDING & REPAIR - http://tt.linkedin.com/in/shipbuildingandrepair T&T SHIPBUILDING & REPAIR - www.youtube.com/user/degstt T&T SHIPBUILDING & REPAIR - www.issuu.com/shipbuildingandrepair WOODS HOLE OCEANOGRAPHIC INSTITUTION - www.whoi.edu/ ************************

Blue highlighted links indicate additional websites added in this month’s newsletter. Red highlighted links indicate Advertisers for the current issue.


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TRINIDAD AND TOBAGO SHIPBUILDER AND REPAIR NEWS PAST ISSUES

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FOR YOUR INFORMATION

To view TV6 Newscast ‘Country needs serious fixing,’ please click: http://www.facebook.com/pages/New-La-Brea-

Vision/132243123490889?v=app_2392950137#!/video/video.php?v=10150148148199325

************************ CONTACT INFORMATION

Mr. Wilfred de Gannes, Deputy Leader, T&T Shipbuilding and Repair Cluster, Post Office Box 2853, Chaguaramas, Trinidad and Tobago. Tel: +1(868) 753-6057 Tel: +1(868) 384-SHIP(7447) Fax:+1(868) 662-6326 E-mail: [email protected] Website: http://www.tts-r.com

Trinidad and Tobago Shipbuilder & Repair News is edited by T&T Shipbuilding and Repair Deputy

Leader Wilfred de Gannes, and published monthly by the Shipbuilding and Repair Development Company of Trinidad and Tobago Limited. This newsletter is available complimentary via email.

© All rights reserved. No part of this publication may be reproduced, stored in a retrieval system,

or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior permission of the publisher. Quotation(s) from the publication is

allowable with appropriate credit.

Minister of Trade and Industry appointed as a Special Liaison between Government & Business.

Following a meeting with the Downtown Owners Merchant Association (DOMA) concerning their fears about the speed of implementing government plans for the Trinidad and Tobago economy, the Honourable Prime Minister Kamla Persad-Bissessar has recently appointed the Honourable Minister of Trade and Industry, Stephen Cadiz MP, to act as a liaison with the local business community.

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newsletter 039

Documents

sr leadership

new shipyard

repair industry

new psv

latest order

repair cluster

repair leadership team

eidesviks gas psvs