Future Cost-Competitiveness of Hydro-Kinetic Turbines

Courtesy British High Commission in Canada

PUBLISHED MAY 28, 2023 10:37 PM BY HARRY VALENTINE

 

Some 10 years ago, a submerged hydro-kinetic turbine was installed in the swift current of a section of the St. Lawrence River, southwest of Montreal, Canada. The power authority of Quebec eventually discontinued the demonstration and declared that the technology was not cost competitive against conventional hydroelectric power generation when measured in terms of dollars per kilowatt-hour. The future of hydro-kinetic turbine technology depends on greater output at competitive cost against other renewable technologies.

Introduction

Cost-comparisons undertaken involving the repair and maintenance of machinery indicated that for ever $1.00 spent at a land location, some $10.00 to $100 was spent at an offshore floating surface location while $1,000 or more can be spent on technology submerged deep under water.

The history of hydro-kinetic turbines began some 4.000-years ago with water wheels that converted the kinetic energy of flowing river water to mechanical power. Early installations were located along a river bank, with the lower section of the water wheel being partially submerged in the flowing water that in turn caused the wheel to rotate.

During the 1980s, the quest for clean renewable energy led to tests involving underwater windmills or hydro-kinetic turbines, the result of fresh water having almost 850-times the density of air and ocean water having 870-times the density. Power output is a function of the mass flow rate of fluid through a turbine. As a result, hydro-kinetic turbines showed great promise as an alternative clean renewable energy technology. Most early builders of hydro-kinetic turbines installed the turbines on supporting frames that rested on the riverbed, as was the case southeast of Montreal and other locations internationally.

Turbine Installations

The installation of submerged turbines involved a boat or a ship equipped with an onboard crane carrying the turbines to the installation site, where the crane subsequently lowered each turbine assembly on to the riverbed or seabed. Maintenance of submerged turbines requires divers to work under water or a crane equipped vessel to retrieve the submerged turbine assembly to the surface, at considerable cost. Securing turbines to coastline structures or under floating technology that maintenance crews could board, reduces maintenance cost. Companies in Canada and Scotland are developing floating structures that carry turbines.

While the floating structure from Orbital Marine of Scotland carries 2-turbines of 1-megawatt each, the floating structure from Sustainable Marine of Canada carries 6-turbines. A competing floating structure from Big Moon of Canada carries a modern water wheel. All 3-technologies are designed to be towed from a coastal point of construction to an offshore point of installation, where mooring cables would secure the floating turbine assemblies.

Big Moon places the axle shaft and electrical generating equipment above water inside an enclosure. Orbital Marine and Sustainable Marine build the floating structures to allow maintenance crews access turbines and generating equipment.

Mobile Dry Dock

The semi-submersible ship known as a mobile dry dock can submerge under the hull of a stricken vessel before raising it above water. That technology could be adapted to carry large-scale floating ocean kinetic energy conversion technology upside down on its deck, from a shore-based construction or assembly site to a suitable offshore site before submerging to float the turbine assembly off its deck. The combination of ballast tanks, pontoons and crane cables would assist in rolling the turbine assembly over prior to it being floated on to the deck of a mobile dry dock.

Upon arrival at the installation site, cables would be attached to secure the floating turbine assembly in suitable tidal currents. Mobile dry dock technology allows greater flexibility in the future design of large-scale floating turbine assemblies that deliver high power output at competitive cost. The future market development for ocean conversion power technology depends on innovation that increases power output at competitive cost, with ease of access to machinery to perform routine maintenance and repair being essential. An expanded market for the technology would justify the cost of developing dedicated semi-submersible technology capable of carrying turbine assemblies.

River Turbines

Traditional river-based hydro-kinetic turbines involved a structure built along a river bank with an axle extending away from land and perpendicular to river flow. Such water wheels served communities over a period of centuries performing a variety of tasks. Big Moon of Canada is developing a modern water wheel capable of operating in powerful water currents. A floating structure may carry the water wheel at mid-stream while a coastal building may carry the water wheel next to the shore, to allow easy access for maintenance of electrical generating equipment and to the turbine.

The upstream side of bridge piers along fast flowing rivers provide cost-competitive locations to secure housings for vertical-axis hydro-kinetic turbines. While the bottom of the turbine housing might rest on the river floor, the bridge pier might also be able to carry the weight of the housing assembly. Exposing a sector of 120-degrees of water wheel circumference of a transverse-axis or vertical-axis water wheel to river current should provide competitive conversion efficiency to axial-flow turbines. There would be potential to stack vertical-axis water wheels or turbines on extended-length drive-shafts to increase power output at competitive cost.

Larger and Stronger Turbines

Over the past 20-years, submerged hydro-kinetic turbines from several different builders that were installed in different fast-flowing water currents underwent breakage of turbine blades and especially so in channels around Canada’s Bay of Fundy. Instead of extending turbine blades outward from a central axle, one turbine maker extends turbine blades inward from a rotating ring installed on a large-diameter tubular pipe housing. That design precedent provides a basis to the combine a central axle with a large-diameter tubular housing to potentially double total turbine blade radius, raising swept area and power output by a factor of four.

The future of hydro-kinetic turbine power conversion will depend on increasing power output at competitive cost. Development of large diameter turbine blades capable of sustained operation in severe currents would be essential. Earlier water wheel type hydro-kinetic turbines were susceptible to breakage incidents when operating in powerful water currents. If Big Moon of Canada is able to develop their modern water wheel to endure sustained operating in the severe currents of Bay of Fundy, scaled-up versions their technology would likely have future application in river-based installations and in offshore floating power generation operation.

While the most powerful floating twin turbine delivers 2-megawatts of power, future free-flow turbines would likely deliver far greater output. Much research is being undertaken on hydro-kinetic energy conversion and includes such concepts as underwater swooping kites that travel perpendicular to and at higher speed than surrounding water current.

Floating Vertical-axis Option

The option of a floating structure carrying twin counter-rotating vertical-axis turbines offer the potential of cost-competitive and efficiency power generation technology. An upstream deflector can expose a sector of 120-degrees of each turbine that moves downstream with the water current while shielding the area of turbine that moves upstream against the current, thereby reducing parasitic drag and raising efficiency. Vertical-axis operation allows electric generators and main upper bearings that carry the weight of each turbine, to be placed above water inside the floating structure and be easily access to maintenance crews.

An upper bearing based on a circular rail and tapered wheels could carry the weight of each stack of turbines or water wheels. The design would need to allow for hydraulic jacks to slightly raise each turbine so as to allow for periodic replacement of roller wheels. An oversized lower bearing with ceramic guides and rollers would carry side loads and periodically be replaced be divers or future remote-control technology. Competing floating systems that use axial flow turbines might need to tilt 90-degrees or roll over by 180-degrees to allow for maintenance to bearings and electrical generators.

Conclusions

While modern free-flow hydro-kinetic turbines show great potential to generate carbon-free electric power, there are very few locations internationally where such technology generates electric power for nearby markets. Development of modern versions of the technology to replace classical water wheels, has been ongoing for several decades. Severe water currents have actually destroyed several modern hydro-kinetic turbines in the severe currents that flow around Canada’s Bay of Fundy. The technology needs to deliver the combination of durability in severe weather conditions, high power output, ease of maintenance and cost-competitiveness against other renewable technologies over an extended service life.

The severe current conditions around the Bay of Fundy require that high-level innovation be applied to further develop hydro-kinetic turbine technology. There would likely be potential for such innovation to expand market application of hydro-kinetic technology in domestic Canadian service as well as international service.

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

 

Petchem Boom

Demand for petchem products is growing, both in the U.S. and abroad, benefiting ports – especially along the U.S. Gulf Coast

PUBLISHED MAY 28, 2023 11:25 PM BY TOM PETERS

 

(Article originally published in Mar/Apr 2023 edition.)

According to the U.S, Department of Energy, petrochemicals derived from oil and natural gas account for over 6,000 daily products and high-tech devices. The demand for such products is expected to grow with industry speculation suggesting a compound annual growth rate in petrochemicals of nearly five percent through 2026.

But growth in petchem demand also means the need for more oil and gas. That, in turn, offers a challenge to the petrochemical industry because of global pressures to reduce the use of carbon-emitting fuels and feedstocks like oil and gas. Many marine ports, which have a high concentration of petrochemical facilities on their properties, are part of the equation.

So the issue begs the question: Is there any discussion between the port community and petrochemical producers on the challenges of reducing the use of fossil fuels? According to Captain Bill Diehl, President of the Greater Houston Port Bureau, the topic is front and center.

“Houston is the Energy Capital of the World,” he says. “With 96 percent of all manufactured goods directly tied to the petrochemical industry, shifting to low-carbon energy and manufacturing is complicated and will take time. The best talent in the energy industry is concentrated in Houston, and the energy companies are prepared to lead the global transition to a low-carbon or no-carbon future. Our companies are investing in energy transition pragmatically while continuing to meet current demands.”

Seaboard Blue

As a sidenote and example of the use of “greener” fuels, the Port of Miami marked a milestone recently with the refueling of the container ship, MV Seaboard Blue, with liquefied natural gas (LNG) prior to its sailing to Honduras and Guatemala.

Seaboard Blue, with a 1,000-TEU (twenty-foot equivalent unit) capacity, was retrofitted in 2017 to run on both LNG and diesel fuel. The vessel was the world’s first container ship converted from conventional diesel propulsion to LNG and joined Miami-based Seaboard Marine’s North Central America service.

“Seaboard Marine’s adoption of greener sources of fuel is exemplary and a significant step toward our goal of keeping Miami-Dade a county on the cutting edge of sustainability,” noted Miami-Dade County Mayor Daniella Levine Cava in a release. “Together with our shore-to-power project that will soon become a reality, these investments continue to position PortMiami as an industry leader and help to ensure our community becomes future-ready.”

Eddie Gonzalez, President & CEO of Seaboard Marine, adds, “Seaboard Blue is a key new component of Seaboard’s fleet transformation. The recent purchase of this LNG-powered ship not only demonstrates Seaboard Marine’s ongoing commitment to sustainability but also to providing reliable service to our customers.”

Petchem Row

However, as the world ponders green fuel and climate issues, the wave of newly constructed oil, gas and petchem facilities continues unabated along the Texas and Louisiana coasts and inland as well, and the Port of Beaumont in southeast Texas is one of the ports reaping the benefits.

The port specializes in handling project cargo and has additional attributes that appeal to private companies looking to move large components to project sites along the Neches River, including its location at the terminus of the federally maintained channel, which means there’s limited vessel traffic moving in the areas surrounding the public docks and wharves, says Sade Chick, Director of Corporate Affairs. For these reasons, she adds, LNG facilities, refineries and chemical plants along the waterway rely on the Port of Beaumont to move the large pieces of cargo.

Chick says the largest projects being constructed in southeast Texas right now are for the export of liquefied natural gas as the U.S. takes the global lead in LNG exports. However, a new ethylene production plant is also under construction as well as a facility that will produce blue ammonia.

Another project involves Chevron Phillips Chemical. CPChem, a joint venture between Phillips 66 and Chevron, recently announced an $8.5 billion integrated polymers facility that will be built in partnership with QatarEnergy in the Golden Triangle region (Beaumont, Port Arthur and Orange) in Orange, Texas. A new company, Golden Triangle Polymers Company LLC, has been established to oversee the project.

When operational in 2026, the plant will include a 4.6 billion pounds per year ethane cracker and two 2.2 billion pounds per year high-density polyethylene units. An ethane cracker converts ethane into ethylene, which is used to produce polyethylene – the most widely produced plastic polymer used in the production of everything from durable goods like pipe for natural gas and water delivery to recreational products like kayaks and coolers. It’s also used in essential packaging applications to protect and preserve food and keep medical supplies sterile.

The project’s goal is to have 25 percent lower greenhouse gas emissions than similar facilities in the U.S. and Europe.

Another big international company operating near Beaumont – OCI Beaumont, owned and operated by Amsterdam-based chemicals manufacturer OCI N.V. – is planning to invest close to $5 billion to expand its East Texas complex. It plans to add a nitrogen-based fertilizer production facility and a renewable fuels plant to its existing 28-acre ammonia and methanol plant south of Beaumont on the Neches River. If the plans are finalized, OCI would spend $2.8 billion on the additional fertilizer production units.

The cargo generated by these projects for Port Beaumont doesn’t come without its challenges, says Ernest Bezdek, the port’s Director of Trade Development.

“Space is always the biggest challenge,” he explains. “Many of the industrial facilities require space to handle their cargo while preparations are being made at the construction site. The pandemic created some issues as the components were manufactured but site preparation and construction were delayed due to COVID-19. We’re just beginning to see some relief from the issues created by the delays. The future is bright. However, additional space is a priority not only for ports but for private industry as well.”

LyondellBasell, based in the Netherlands with its U.S. headquarters in Houston, is one of the largest plastics, chemical and refining companies in the world. It announced in March the startup of the world's largest propylene oxide (PO) and tertiary butyl alcohol (TBA) units. These new assets on the U.S. Gulf Coast in Channelview, Texas have an annual capacity of 470 thousand metric tons of PO and one million metric tons of TBA and its derivatives.

PO goes into making polyurethane foam, typically used to make mattresses, car and furniture seat cushions, insulation and a variety of other products. TBA is converted to produce two ether-based oxyfuels, methyl tertiary butyl ether (MTBE) and ethyl tertiary butyl ether (ETBE). Both MTBE and ETBE are high-octane fuel additives that help gasoline burn more efficiently.

Another project involving LyondellBasell was the signing of a long-term contract with Nexus Circular of Atlanta to supply LyondellBasell with approximately 24,000 tons of recycled plastic feedstock per year. The material will be produced at Nexus Circular's new advanced recycling facility, which will begin construction this year. The new facility will convert mixed plastic waste into recycled feedstock. LyondellBasell will use the recycled feedstock at its Channelview, Texas facility to produce new plastics that will be marketed under the CirculenRevive brand.

Nexus Circular is a commercial leader in advanced recycling with a proven proprietary technology and a leading process design that converts landfill-bound films and other hard-to-recycle plastics into high-quality liquids, which are then used to produce virgin-quality plastics.

#1 in Resins

Port Houston continues “to see increasing resin demand driving export-loaded containers up 31 percent above the same month last year,” says the port’s Executive Director, Roger Guenther. “We are the top resin port in the nation, and exports of container cargo with polymers and other petrochemical products remain strong. We continue to make the investments in our facilities to handle future growth.”

Port Houston exported 59 percent of all resins from the U.S. in 2022.

“New resin-packaging facilities continue to come online around the port,” notes Guenther, adding to Port Houston’s export volumes via its two container terminals, Barbours Cut and Bayport Container Terminals.

In addition, Packwell plans to build a new state-of-the-art resin-packaging facility on a site leased from Port Houston at the Bayport Industrial Complex. Packwell is a plastics bagging and logistics company established in Houston in 1986, and its packaging expertise involves bagging polymers of all categories.

Last year, the Houston Port Commission awarded more than $300 million in new capital projects, a new record supporting Port Houston’s continued investment in growth and infrastructure.

The fiscal year 2023 capital plans anticipate an Operating Capital Improvement Projects budget of $579 million and $99 million for Project 11, the expansion of the Houston Ship Channel. The dredge used for much of the work is the cleanest in the Americas, Guenther says. 

Halifax-based Tom Peters is the magazine’s ports columnist.

GREENWASHING

MSC Euribia Delivered as MSC Prepares for Net Zero Demonstration

MSC Eurbia during her sea trails (MSC Cruises)

PUBLISHED JUN 1, 2023 7:25 PM BY THE MARITIME EXECUTIVE

 

MSC Cruises took delivery on its newest cruise ship on May 31 promoting it as possibly the industry’s most environmentally advanced ship to date. The last ship of a previous class, the MSC Euribia incorporates new elements including the use of LNG as its primary fuel and advanced technologies as the company prepares to demonstrate the future with a four-day delivery voyage from France to Copenhagen. The voyage is being promoted as the world’s first net-zero greenhouse gas emissions trip for a cruise ship.

Built by Chantiers de Atlantique in Saint-Nazaire, France, the MSC Euribia is the fifth and final ship on order in the company’s Meraviglia class. At 184,011 gross tons, the cruise ship ranks among the largest in the world and joins a growing number of dual-fuel capable cruise ships. She is powered by four Wärtsilä engines (two 16V and two 12V) running on LNG or low-sulfur marine gasoil. 

The new cruise ship measures 1,086 feet in length. She has a passenger capacity of 6,334 and a crew of approximately 1,700. Among the systems, she was fitted with an advanced onboard wastewater treatment system, waste management, and a wide range of energy-saving equipment, including smart heating, ventilation, air conditioning, and lighting, to maximize efficiency.

The propulsion plant is designed to give her a maximum speed of 22.3 knots while also being energy efficient and reducing emissions. According to MSC, when in service, the vessel will emit up to 19 percent less greenhouse gas emissions per passenger per day than her sisterships which use conventional marine fuels. This amounts to 44 percent less greenhouse gas emissions per passenger per day than ships built only 10 years ago.

The MSC Euribia is scheduled to depart Saint-Nazaire on June 3 and will run a four-day mini cruise as she repositions to Copenhagen, where she will be christened and enter commercial service. To demonstrate the potential, the company purchased 400 tonnes of bio-LNG. They believe it will be the first time an ocean-going cruise ship has used a fuel that has a significant lifecycle emission reduction. 

Working with Nordic energy company Gasum, they have worked to ensure the entire supply chain is fully compliant with the EU’s Renewable Energy Directive. The batches of bio-LNG have been certified and the company will utilize a mass-balance system, which it says is the most environmentally efficient method of delivering the benefits of renewable biogas. In addition, the speed and itinerary of the Euribia’s voyage have been designed to optimize the configuration and loads of the engines to minimize fuel consumption. Engineers and specialists from MSC and the shipyard will be aboard to monitor and optimize the voyage and MSC will also be monitoring the operations from its shore-based center in London.

Pierfrancesco Vago, Executive Chairman of the Cruise Division of MSC Group, said “With the delivery of MSC Euribia, we have taken yet another huge step towards our net zero GHG emissions goal. Alongside her many best-in-class environmental innovations, MSC Euribia features a truly groundbreaking energy efficient design that will deliver huge reduction in GHG emissions throughout her lifetime.”

MSC reports the vessel has also been designed to adapt to future alternative energy options. The cruise line highlights it is working with fuel providers and others on developing drop-in sustainable fuels such as advanced biofuels and biogas. They are also exploring green methanol, synthetic e-fuels such as green hydrogen, and eLNG. The ship’s design can accommodate retrofits enabling the LNG-powered vessel to operate using green methanol in the future.

As MSC officially took delivery today, they also marked the next phase of construction on the company’s second World Class cruise ship. The ships are industry giants at 215,863 gross tons with accommodations for 6,700 passengers. The class is second in size only to Royal Caribbean International’s largest cruise ships. The first, MSC World Europa, entered service in late 2022, and today the company placed coins under the keel as the second ship of the class MSC World America begins assembly at Chantiers de l’Atlantique. This ship is due to enter service sailing from PortMiami in April 2025.
 

Baltic Eagle's Offshore Wind Farm Stops the Emission of 1M Tons of CO2

PUBLISHED JUN 1, 2023 3:53 PM BY THE MARITIME EXECUTIVE

 

[By: Sarens]

This installation, located in the north-east of the island of Rügen off the coast of Pomerania (Germany), will have 50 turbines of 9.53 MW, which will be able to generate power for more than 475,000 households in the region.

Sarens is directly involved in the construction of this wind farm, both in the German port of Sassnitz-Mukran, where is performing the marshalling of the transition pieces using the TP-Handler 2.0 device, and in Rostock, where the new Liebherr LR 12500-1.0 will lift the monopiles for their assembly in the transition pieces before loading them into vessels for transport to their final location.

The new Baltic Eagle offshore wind farm, located 30 km off the coast of Pomerania in Germany, on the north-east of the island of Rügen, will generate around 1.9 TWh of power, enough to supply more than 475,000 households in the area with renewable energy when commissioned by the end of 2024, avoiding the emission of around one million tons of CO2 into the atmosphere each year.

Sarens, world leader in heavy lifting, engineered transport and crane rental services, is playing a direct role in the installation of this wind farm, taking care of various logistical tasks of vital importance. In the Sassnitz-Mukran port, located in the north-east of Germany, Sarens is performing the marshalling of the transition pieces, using their state-of the-art TP-Handler 2.0 device. 

At the same time, Sarens has placed its new LR12500-1.0 crane, the first unit of this model delivered by the German manufacturer Liebherr, in the port of Rostock for the lifting of the 50 monopiles, fabricated by EEW. In order to carry out this lifting to over 90 meters, Sarens has also used an LR1800-1.0 crane to work in tandem with the new LR12500, enabling to lift the 1,400 tons monopiles into the water. 

Sarens has also assisted in the loading of the 4,400-ton substation to be used in Baltic Eagle, which was manufactured by Equans in Belgium. For this, the substation was loaded on a barge with the help of various SPMTs to later be secured with Sarens winches. Once the load was carried out on the barge, the substation had to be rotated to its unloading position, for which the assistance of tugboats and demarcation buoys was required, as well as auxiliary cranes, forklifts and linkspans. This way, Sarens was able to provide a fully integrated solution (except for barge supply) and was able to adapt to the challenging changes in the client's schedule.

Sarens' ability to be involved in different locations on this project, re-confirms its role as the strategic player for the offshore wind industry, being a one-stop-shop solution for the marshalling of the installation items for the project, which is a competitive advantage for the development of any project, regardless of its magnitude.tr

Sarens has extensive international experience in the assembly and maintenance of wind farms. It is/has participating/participated in installations such as Fécamp, Saint Nazaire,St Brieuc, Morray West, or more recently the Provence Grand Large.

Regarding the transport and installation of electrical substations for offshore wind farms, Sarens also has proven experience, as it was responsible for the logistical maneuvers required for the transport of a 2,922-ton substation in the port of Hoboken, in Antwerp (Belgium) to the Racebank wind farm, off Norfolk's coast.

The products and services herein described in this press release are not endorsed by The Maritime Executive.

KNOWING THE 1%

Wallem Group Celebrates its 120th Anniversary

GLOBALISM WAS THE 20TH CENTURY

John-Kaare Aune, Wallem Group CEO at the 120th anniversary event in Hong Kong

PUBLISHED JUN 1, 2023 7:38 PM BY THE MARITIME EXECUTIVE

 

[By: Wallem Group]

Wallem Group, a leading global maritime partner, is marking its 120th-anniversary year with a programme of events in Europe and Asia, during which the company will celebrate its rich history and look ahead to the future of shipping.

Established by Haakon J. Wallem in 1903 in Shanghai, China as shipbroking and chartering firm Wallem & Co., the company became the world’s first third-party ship manager in 1908 when it was appointed to manage sisterships SS Chingtufu and SS Tsinanfu, both employed in the coal trade on the Chinese coast.

Today, Wallem Group is established throughout Asia and in Europe, while its extensive portfolio incorporates ship and crew management, a range of technical and commercial services and ship agency – including project cargo and cruise ship agency.

Nigel Hill, Chairman of the Board at Wallem Group, commented: “I was lucky enough to be invited to Wallem’s 100th-anniversary celebration and recall being impressed by the company’s history. It is no mean feat to have survived the turmoil of the 20th century, world wars and financial crashes – and to still be thriving now during digital and technological revolution. Reaching 120 years in this industry is something to be proud of and well worth celebrating.”

Wallem inaugurated its state-of-the-art Maritime Training Centre in Manila, Philippines in 2022, featuring a full mission bridge simulator,  engine room simulator and liquid cargo handling simulators. The company’s sustained investment in high-quality crew training– in addition to its work promoting seafarer welfare – reflects its belief that, in the maritime industry, “the future is human.”

John-Kaare Aune, Wallem Group CEO, said: “Wallem’s 120th-anniversary year offers an opportunity to celebrate and reflect on the company’s long and diverse history, but it is equally important that we look towards the future. Despite the excitement surrounding autonomous vessels and automated processes, which undoubtedly have a significant role to play in shipping, the future of maritime is still very much human – and our commitment to seafarer training and welfare stems from this conviction.”

The first of Wallem’s 120th-anniversary events took place in Hong Kong in April with events in Oslo, Singapore, and Shanghai to follow in June, September, and December, respectively.

The products and services herein described in this press release are not endorsed by The Maritime Executive.

Svitzer Australia Reaches Tentative Deal in 4-Year Labor Dispute

Svitzer tugs moving a bulker into port (photo courtesy Port Authority of NSW)

PUBLISHED JUN 1, 2023 4:05 PM BY THE MARITIME EXECUTIVE

 

The long-running contract dispute between Svitzer and Australia’s maritime unions has reached a tentative agreement. Crews of the tugs operated by the Maersk group company have been working without a contract for four years while there had been repeated strikes, threats of lockouts, and government intervention to resolve the hard-fought negotiations.

“Svitzer can advise its customers and stakeholders that it has reached an “in-principle agreement” with the three maritime unions for a proposed, new National Towage Enterprise Agreement and we are now preparing for a vote on that agreement,” the company said in a statement issued today in Australia. “Svitzer has made a fair offer – and our hope is that this is reflected in a favorable vote,” the company said while also highlighting that an industrial action is not possible with an in-principle agreement in place and voting period to commence.

The agreement came as a six-month standstill agreement from Australia’s Fair Work Commission was due to expire raising the prospect of renew strikes and job actions. The unions had staged a series of rolling job actions around the ports in 2022 leading Svitzer to announce plans to lock-out its employees in November 2022. Fearing disruptions to Australia’s supply chain and economy, the Australian authorities intervened in the dispute preventing the lock-out or strikes while ordering a new round of negotiations.

The previous contract had been approved in 2016 and expired in 2019. The three unions consistently accused Svitzer of negotiating in bad faith saying the company had presented an unreasonable list of demands and had threatened to cut pay by 50 percent. The company argues that it had to remove restrictive work practices which were critical to the competitiveness of the business. Svitzer highlighted that there had been more than 75 bargaining sessions up to November 2022, as well as two conciliation sessions with the Fair Work Commission. There was also an independent mediation process that failed the company said.

In one month between October and November 2022, media reports calculated that had been over 250 labor actions resulting in nearly 2,000 hours of work stoppages either in the form of tugs sitting idle or crews refusing overtime assignments. Svitzer contended the unions staged over 1,100 job actions between October 2020 and 2022 saying that it has lost more than 130 jobs and work at three ports between December 2020 and September 2021 due to the union’s job actions.

After the previous tentative agreements failed, Svitzer had begun the process under Australia labor law to end the collective bargaining process. In an effort to call attention to the process, starting in August 2022 the unions renewed their job actions. The company pressed its demands saying that it needed certainty for its customers leading to the government intervention in November.

Svitzer announced in April 2023 that it would no longer pursue the its efforts to eliminate the enterprise agreement. The union declared it a major victory while observers believe it cleared the way for renewed negotiations overseen by mediators from the Fair Work Commission. Both sides had agreed to continue the talks and not pursue any industrial actions through May 31.

Government officially last fall emphasized the importance of getting a settlement. They estimated that a lockout would have stopped containerships coming in or out of 17 ports, representing 65 percent of total imports and A$1.1 billion (US$730 million) worth of goods that pass through the ports every day.

Voting on the proposed contract is scheduled to begin on June 8 and run through June 10. Svitzer says it is hopeful for a positive outcome among its nearly 600 employees and says it will report the results as quickly as possible after the voting concludes. The unions are yet to issue a public statement on the tentative agreement.
 

Report: Navy Amphib Pumped Fuel Overboard, Fouling Water Intake

USS Boxer (Navy file image)

PUBLISHED JUN 1, 2023 11:49 PM BY THE MARITIME EXECUTIVE

 

An intentional oil discharge can be risky for a ship's crew, resulting in possible fines or (in the United States) criminal penalties. But the crew of the USS Boxer put themselves and their shipmates at a far greater risk when they deliberately pumped fuel over the side in 2016, according to Military.com: they unknowingly contaminated the ship's drinking water supply. 

On March 15, 2016, USS Boxer conducted an underway replenishment with the fleet oiler USNS Wally Schirra in the Sea of Japan. She took on about 400,000 gallons of fuel. On the same day, according to Military.com's investigation, crewmembers were ordered to pump fuel over the side. The reasons were not clear, but may have had to do with fuel contamination. 

Boxer's crew followed orders and discharged an unspecified amount of fuel into the water. Typically, intentional oil discharges are conducted while under way, often at night or in bad weather. These factors minimize the odds of detection. However, the discharge from Boxer happened while the ship was stationary. The fuel was pumped overboard on one side of the ship, and on the other side, the water intakes for the evaporator were open and running. A substantial amount of diesel fuel was drawn into the intake and entered the water supply. 

If this were to occur aboard a commercial vessel on a voyage to a U.S. port, the ship could be detained on arrival for MARPOL violations, and the shipowner and the chief engineer could be charged with a criminal offense. Since Boxer is a warship, and warships are exempt from MARPOL, her crew did not need to worry about the same legal penalties - but some have been paying a steep price nonetheless. The taste of fuel in the water did not go away for days, former crewmembers told Military.com, and they had no choice but to drink and shower with it. Over the years since, some have complained of a range of medical ailments, including cancer (though proving a direct connection is difficult). 

The water-contamination event aboard USS Boxer is unusual in its details, but fuel in water is a relatively common issue, according to anecdotal reports from veterans. The Navy's big-deck amphibs and carriers - which carry substantial amounts of jet fuel - have a reputation for fuel in the drinking water. 

The most recent incident occurred aboard USS Nimitz last September while the carrier was operating off California. The crew reported a foul taste and smell in the drinking water, and 11 crewmembers fell ill with symptoms of fuel ingestion. The ship returned to port so that its water system could be flushed with municipal tap water. Four of the ship's tanks were found to have elevated levels of JP-5; an investigation determined that fuel-laden bilge water had leaked through a gasket on the tank top several years earlier but had not been detected until 2022. 

S. Korean Yards Turn to Guest Workers, But Some Decide to Walk Away

The reason for the departures, according to the union, is relatively low pay and difficult work - and under the circumstances, "the desertions are not surpising,"

Courtesy HD Hyundai

PUBLISHED JUN 1, 2023 10:38 PM BY THE MARITIME EXECUTIVE

 

In a scramble to fill vacant positions and build a slew of new shipbuilding orders, South Korea's Big Three have been hiring yard workers in from Thailand, Vietnam, the Philippines and other countries in Southeast Asia. The ranks of foreign guest workers in the yard, but there is one problem: a small number of them are walking away once they arrive in the country. 

Guest workers in South Korea are eligible for employment through the country's E-7 visa program. Similar to other nations' work-permit systems, the E-7 visa restricts the holder to a single employer. Nonetheless, the Big Three have reported some disappearances from the ranks of the newly recruited workers. In April, seven Thai workers departed the HD Hyundai yard after just a week on the job. Last fall, about 30 Vietnamese guest workers departed from HD Hyundai, along with another four at Hyundai Samho, according to the shipbuilders' union at HD Hyundai. Korean employers are required to inform immigration authorities of workers who depart and do not return. 

The reason for the departures, according to the union, is relatively low pay and difficult work - and under the circumstances, "the desertions are not surpising," the union said in a recent newsletter edition.

A spokesman for HD Hyundai told The Korea Times that this was not correct, and that some workers have left because of "personal matters." 

"We are providing various welfare benefits, including interpretation services, counseling, and customized diets to help the workers to adapt to their new environment," HD Hyundai said in a statement. 

Foreign workers are an increasing share of the Korean shipyard workforce. Most of the large yards source 10-20 percent of their outsourced (contract) workforce from foreign countries, according to BusinessKorea. Given the growing role of workers from Southeast Asia in the Korean shipbuilding industries, the Korean Confederation of Trade Unions (KCTU) metalworkers' union has decided to switch its policy from opposing migrant labor to organizing migrant labor. As a practical matter, one union leader told BusinessKorea, "the metal workers' union should not give them the cold shoulder but embrace them." 

The importance of guest workers may grow further with time. With the ongoing shipbuilding boom, South Korean yards are short about 2,000 workers, according to Korea JoongAng Daily. The working conditions are challenging, and the wages are "not particularly high," explained researcher Lee Kyung-woo of the Ulsan Research Institute. The tens of thousands of workers who were laid off during the downturn in 2016-18 are largely staying away and seeking other options, and it may take up to five years to return to stability and full staffing for the yards. 

Australia Convicts Master and Line for Pilot’s Injuries in Ladder Fall

Pilot fell and was injured AMSA says due to a poorly maintained ladder (AMSA)

PUBLISHED JUN 1, 2023 2:49 PM BY THE MARITIME EXECUTIVE

 

Australia as part of its focus on maritime safety reports it took the unusual step of prosecuting and securing a conviction related to injuries to a marine pilot. While rare, safety incidents do occur for marine pilots and in this instance, the Australian Maritime Safety Authority (AMSA) determined that the ship and shipping line contributed to the pilot’s injuries.

The Cyprus-flagged cargo ship AAL Dampier (18,700 dwt) was departing the Port of Fremantle, Australia on August 24, 2022. As the 488-foot vessel was underway and the pilot was disembarking, the marine pilot fell more than 20 feet from the ladder onto the deck of the pilot vessel, which was traveling alongside the ship. The pilot suffered serious injuries and was urgently transported by the pilot boat to a hospital for treatment.

Inspectors and specialist investigators from AMSA boarded the cargo ship which is owned by AAL Dampier Navigation Co. and they determined that the ropes on the pilot ladder had parted causing the pilot to fall. They seized a portion of the ropes, which they report were later found to be seriously defective and in poor condition. 

AMSA called the condition of the ladder and its ropes “shocking” saying that it believed the condition was likely due to inappropriate storage. They also cited ineffective inspection maintenance procedures of the ship.

“Marine pilots have a critical and high-risk job, even in the best of conditions, and it is imperative that vessels meet safety standards to prevent serious injury,” said AMSA Executive Director of Operations Michael Drake.

The safety authority decided to prosecute the shipping company and the master of the vessel. They secured the successful prosecution in the Perth Magistrates Court on May 23, 2023.

AAL Dampier Navigation Co. pled guilty to an offense related to marine safety for failing to ensure pilot transfer arrangements in place were in accordance with the relevant regulations. The company was fined A$30,500 (US$20,000).

The master of the vessel pled guilty to two offenses, one under safety and emergency rules for failing to ensure the disembarkation of a pilot was carried out in accordance with the relevant regulations, and the second under the Navigation Act 2012 for taking an unseaworthy vessel to sea. He was fined a total of A$5,500 (US$3,600).

“AMSA is a tough-but-fair regulator, and we will not hesitate to take action to prevent danger to human life, whether it be a pilot or mariner,” said Drake. He said he was pleased with the result of the prosecution and hoped a conviction would deter other vessels from compromising on marine pilot safety.