Saturday, August 05, 2023

Legislation Would Help Terminal Operators Buy Zero-Emission Cargo Equipment

container terminal — Legislation proposes tax incentives to help terminal operators invest in low-emission equipment (file photo)

A new bi-partisan bill was introduced in the U.S. House of Representatives designed to maximize investment in equipment and infrastructure used by the United States private marine terminal operators. The bill is designed to provide tax incentives that help support the terminals as they transition to lower-emission cargo handling equipment.

"Our legislation helps modernize the infrastructure at America's ports and harbors and strengthens our supply chains," said Congressman Mike Ezell of Mississippi who along with Congressman Troy Carter, Sr., of Louisiana are co-sponsoring the legislation. It specifically calls for expanding the Capital Construction Fund administered by the U.S. Maritime Administration (MARAD) to allow private marine terminal operators to use a tax-deferred account to purchase American-made cargo handling equipment.

The National Association of Waterfront Employers (NAWE) is supporting the legislation highlighting the critical need and costs private terminal operators will be facing in buying new near-zero and zero-emission cargo handling equipment. The trade association whose member companies are privately owned stevedores, marine terminal operators, and other waterfront-related employers, provided statements of support from its membership for the proposed legislation.

They point out that the terminal operators will require tens of billions of dollars in private capital to meet the pending requirements to reduce emissions from their operations. In addition to the required investments in new equipment, the association also highlights that the terminal operators will be required to prematurely retire existing, diesel-powered cargo handling equipment before the end of its expected life.

The Inflation Reduction Act created new Environmental Protection Agency programs to fund the purchase or installation of zero-emission cargo handling equipment, but it is largely only available to public port authorities or the state and regional, and local entities. NAWE highlights that a majority of the investments will be made by private marine terminal operators.

The legislation would make it possible for private terminal operators to defer tax on operational income and income from the sale of existing cargo handling equipment. The income would be deposited into a Capital Construction Fund approved by MARAD and could only be withdrawn on a tax-deferred basis for the purchase or construction of new cargo handling equipment. They point out that the bill does not include appropriation funds for the purchase of the equipment.

Last year, Congress expanded the use of Capital Construction Funds to make eligible the acquisition, construction, or reconstruction of vessels engaged in the U.S. coastwise trade, including all classes of vessels working in the domestic oil and gas industry and tugs and barges engaged in the transportation of U.S. agricultural cargoes on America’s inland waterways. The proposed legislative amendment, drafted in partnership with NAWE and its members, seeks to expand the program to include private marine terminal operators.

The bill’s sponsors said the change in the authorization would provide financial flexibility that will allow for the development and expansion of port infrastructure. The “Buy American” elements they said will also support the industry and create new jobs.

The legislation to add cargo handling equipment to the Capital Construction Fund program has been referred to the House Committee on Transportation and Infrastructure.

LITHUANIA

Port of Klaipeda Orders All-Electric Waste Tanker

Baltic waste tanker — Courtesy Port of Klaipeda / Baltic Workboats

The Port of Klaipeda, Lithuania has ordered a rare class of all-electric vessel: a battery-powered waste tanker.

In a newly-announced deal, Port of Klaipeda will pay Baltic Workboats AS and BLRT Grupp a total of $12 million for a new liquid waste vessel. The 140-foot vessel will have enough room in its tanks for 100,000 gallons of waste, and will be highly automated to support operations with a crew of only three. With about 2,000 kilowatt-hours of battery capacity, it will have about eight hours of operating time in between recharging periods.

BLRT Grupp will supply the design through its Western Baltic Engineering subsidiary, and its Western Baltija Shipbuilding unit will build the hull and most of the auxiliary systems.

“Our shipyard is delighted to be part of a consortium with Baltic Workboats to construct, paint and equip a waste collection vessel that will contribute to reducing the environmental impact in the harbor waters," said Ilja Andrusenko, head of marketing at Western Baltija Shipbuilding. "This will be the first all-electric engine vessel we construct."

Baltic Workboats will provide the design and installation of the electric propulsion system, as well as the interiors. Work on the design phase is already under way. “We have built hybrid and electric ferries and patrol vessels in the past and are excited to build our first tanker with fully electric propulsion – what makes us especially proud is that it will sail in one of the Baltic states," said Rimo Timm, Head of Sales at Baltic Workboats.

Delivery for this one-of-a-kind vessel is scheduled for mid-2025.

Port of Klaipeda is also expanding its facilities and deepening its harbor to accommodate the largest vessels in the Baltic, with support from the European Union. It is also working with Proman on plans for methanol bunkering, along with a possible methanol-to-power project for supplying electricity to shoreside consumers.

Report: FPSO for Mexico's Biggest Oilfield Shuts Down

Yuum — The FPSO Yúum K’ak’ Náab (BW Offshore file image)

Mexican state oil company Pemex has had to temporarily shut down loading from its largest FPSO, Yúum K’ak’ Náab, due to a leak from one of its hose trains, according to Bloomberg.

The FPSO is the busiest oil terminal in Mexico, and Pemex is working to offset the interruption. The company is reportedly restarting the single-point mooring terminal at Cayo Arcas to make up some of the capacity, and hopes to have Yúum K’ak’ Náab back online by the end of the week.

The FPSO Yúum K’ak’ Náab is an offloading terminal for the prolific Ku-Maloob-Zaap field complex, which is Pemex's most productive oil project. The network of platforms at the site put out about 700,000 barrels per day (bpd), equal to about 40 percent of Pemex's total production. The area has been in production for more than 40 years, and Pemex has invested heavily to sustain output from mature reservoirs using pressurized reinjection of nitrogen gas.

Yúum K’ak’ Náab started life as the ULCC Berge Enterprise and was purchased and converted for FPSO duty by BW Offshore. The floating terminal debuted at Ku-Maloob-Zaap in 2007, and was the first tanker-based FPSO in Mexico's offshore sector. It is designed to handle 600,000 bpd of oil production.

Pemex assumed ownership and management of the FPSO almost exactly one year ago. The unit was originally procured under a 15-year charter agreement, and the terms of the lease included a provision for Pemex to acquire and operate the FPSO at the end of the contract.

The shutdown is the latest in a string of spills and incidents for the company's offshore operations this year. In July, loading hoses at the Salina Cruz terminal were damaged in strong winds, forcing a shutdown. A fire and explosion at a gas platform in the Cantarell offshore field killed two people on July 7, and an oil slick estimated at about 150 square miles in size was detected in the same area. Pemex confirmed the spill but told media that it was much smaller than reported.

Ku-Maloob-Zaap has also had its fair share of casualties. In July 2021, a burst 12-inch subsea pipeline released a large volume of gas about 150 yards away from one of the field's many platforms. The gas ignited, forming a roiling "eye of fire" that captured the public's attention. The next month, a fire on Ku-Maloob-Zaap's platform complex killed at least six workers and injured six more.

Burnt-Out Fremantle Highway Arrives in Dutch Port

Fremantle Highway arriving in the Netherlands — Fremantle Highway was towed into the Dutch port of Eemshaven for salvage (Netherlands Coast Guard)

The burnt-out hulk of the car carrier Fremantle Highway arrived in the Dutch port of Eemshaven on Thursday afternoon, August 3, ending the 10-day salvage effort after the vessel caught fire on July 25 in the North Sea. The Rijkswaterstaat, the Netherland’s Ministry of Infrastructure and Water, reported the vessel is now moored ending its direct involvement in the salvage operation, although the investigation into the incident is just getting underway.

The decision was made on August 2 to move the hulk to port in part due to concerns about weather conditions and the continuing danger due to the large amount of oil aboard the vessel. The German Environmental Ministry, which was closely monitoring the situation, reports there are 1,600 tons of heavy fuel oil and 200 tons of marine diesel aboard.

The salvage team boarded the vessel again earlier this week after it was repositioned starting on Sunday to a location approximately 10 miles north of Schiermnonnikoog and Ameland in the Wadden Islands. The position had been selected as it was outside the shipping lanes and sheltered to protect the ship.

The ministry reported that the salvage team has now inspected most of the ship and that there are no indications that there is still fire burning on the ship. The temperature aboard the vessel had begun to decline late last week giving the crews their first indication that the fire was burning itself out.

Eemshaven was selected as it was the closest port at approximately 40 miles from the ship’s position. The authorities also highlighted that it has the infrastructure and facilities to accommodate the ship and the next phase of the salvage operation. The ship’s owner working with the private salvage company will be responsible for the operation going forward. Reports are that the cars, including some that are not damaged, will be removed before the fate of the ship is determined.

Salvage teams were aboard the vessel during the tow on Thursday. In addition, the rescue vessel Guardian from the Netherlands Coast Guard and the ministry’s oil response ship Arca accompanied the tow. The tow began at around 5:00 a.m. local time on August 3 and was reported completed by 3:30 p.m.

Teams will be inspecting the hulk of the 650-foot car carrier looking to determine the cause of the fire and its rapid spread. Speculation continues to center on the 498 electric vehicles aboard among the total of 3,894 vehicles reported by Japan’s K Line which was operating the ship under charter. Automakers Rolls-Royce, Mercedes, and BMW have all acknowledged they had cars aboard. The ship was reported to also be carrying secondhand cars. It was to make a stop in Egypt and transit the Suez Canal before proceeding to Singapore.

The environment minister for Germany’s Lower Saxony region, Christian Meyer, released a statement thanking the Netherlands’ authorities for their efforts. He is also calling for new precautions for ships carrying dangerous cargo. He wants the ships to sail further from the coast and the environmentally sensitive Wadden Sea.

Among the issues the investigators will be looking at was the rapid spread of the fire which made it impossible to use the ship’s lifeboats. Seven of the crewmembers ultimately jumped into the sea to be recovered by the Netherlands Coast Guard’s rescue boat. Reports indicate that the crewmember who died was among those jumping and the Coast Guard said crewmembers were being treated for broken bones in addition to burns and smoke inhalation.

The newspapers in the Netherlands are also questioning the response time of the privately contracted helicopters used by the Coast Guard. Some reports are saying it took nearly an hour for at least one of the helicopters to reach the stricken ship. The majority of the crew, who were all Indian citizens, however, were rescued by the helicopters.

BSU: Trainee Crushed by Steel Plates on Oldendorff Bulker

Germany's Federal Bureau of Maritime Casualty Investigation (BSU) has released an interim report on the fatal accident aboard the bulker Peter Oldendorff in Mukran, Germany last year.

On August 3, 2022, was alongside at a pier in Mukran for cargo operations. That morning, a trainee fitter was assigned to cut out some steel plate material for a project. The 10 foot by four foot piece of steel plate stock was stacked on its side in a corner of the steering gear compartment, along with a variety of other plates of different dimensions. The plate he needed weighed about 660 pounds, not including the weight of the other material in the pile. All were leaned up next to a rail and secured in an upright position with a steel cross strut of angle iron.

To start the task, the trainee - a 33-year-old Indian national - needed help to safely remove the piece of steel plate from the pile. He was assigned to set up his tools and wait for assistance from his crewmates. However, all of the members of the deck crew were busy with other tasks that morning.

At about 1000 hours, a trainee marine engineer went into the steering gear compartment and found the fitter crushed by the pile of plates. The victim's upper body had been pinned against an adjacent rack, and he was unconscious. The engineer tried to free him, but could not lift the massive pile of steel plates by himself. He returned to the engine control room and got three crewmembers to come with him to help. Together, the four of them managed to free the victim at about 1003. They began CPR immediately and sounded the general alarm to alert the crew and bring help.

A recreation of the accident scene (BSU)

The master coordinated the response and had the crew bring a stretcher. The crew carried the victim up to the main deck, where they continued attempts to revive him. An emergency physician arrived at 1018 and continued the effort until 1030, when the trainee was pronounced dead at the scene. He had never regained consciousness.

Germany's Water Police notified BSU of the casualty, and the agency dispatched a team of investigators. They boarded the ship the next day and began examining the scene and questioning the crew. There were no witnesses to describe the course of events, so the investigators decided to replicate the accident using a dummy.

The team found that once the piece of angle iron that secured the stack was removed, it was easy for the plates to fall over suddenly on their own, without further cause. The victim would have been trapped between the plates and the rack, with few if any chances to escape. The force would be likely to inflict fatal injuries from "massive crushing."

Peter Oldendorff is a 2012-built bulker flagged in Liberia. Its last two PSC inspections identified ISM Code deficiencies and issues with mechanical equipment.

India's Rice Export Shutdown Adds to Concerns About Global Grain Trade

Rice arrives in Dakar, Senegal. India is a major supplier to African rice import markets (File image courtesy Lemonblind / CC BY SA 4.0)

In an attempt to control inflation for domestic consumers and ensure adequate supplies, the government of India has banned the export of non-basmati rice, slashing shipment volume from the world's largest rice exporter overnight. It is the second time in a year that India's government has decided to shut down exports of a food commodity, following its wheat export ban in May 2022.

The global rice trade totals about 55 million tonnes per year, and India's exports account for 22 million tonnes of the total, including six million tonnes of lower-cost Indica white rice. Indica exports are now prohibited by the Indian government in order to preserve domestic stocks, and according to Indian outlet Mint, about 200,000 tonnes is now stuck at Indian seaports.

While India is in possession of about 40 million tonnes of stored rice - three times its target for a strategic reserve - it has had a hard time controlling domestic price increases. With elections on the way, and the local price of rice up 11 percent in a year, the Indian government has decided to ban Indica exports and keep extra supplies locally in a bid to reduce the cost of living, analysts told BBC. A second motivation may be to prepare for poor harvests ahead after a drier-than-usual monsoon season.

The sudden disappearance of Indian Indica rice shipments will contribute to food price inflation, according to the IMF. The agency estimates that the average price for all grains could rise by 15 percent over the span of 2023. Grain prices have already risen by nearly the same amount since June 2022, driven upwards by restrictions on Ukrainian wheat exports.

In some African nations, imported Indian rice accounts for a majority of the supply, and the decision to cut back has drawn criticism. Price hikes could put rice out of reach as an affordable staple for consumers in low-income countries. Food aid shipments from Indian government agencies are exempt, so some unpurchased amounts will continue to flow.

Nations in the Middle East may feel the effect most. India's top rice export market is Iran, followed by Saudi Arabia and the UAE. On Friday, the government of the UAE announced a similar ban on rice exports and re-exports in an attempt to preserve its own stocks. The UAE ordinarily gets the majority of its rice from India, and may experience price hikes of as much as 40 percent due to the ban, according to local media.

The good news, according to UN FAO consultant Fadel El-Zubi, is that the ban will likely not last long. El-Zubi told Arab News that the ban will be "short term" and will have less of an impact than the recent hikes in the wheat market.

Low-Sulfur Fuel Rules May Have Contributed to Record Ocean Temps

If efforts to reduce carbon emissions fail, there may be a backup plan: geoengineering, the controversial science of modifying the climate by artificial means. The options include fertilizing the ocean's phytoplankton with iron, installing space-based mirrors or speeding up the weathering of CO2-absorbing minerals at a vast scale. While most are untested and potentially risky, one of them - manmade cloud seeding with SOx - has been in testing since the Age of Steam, and shipping is giving researchers the means to evaluate it.

SOx emissions "seed" cloud droplets and make the air more reflective for as long as the droplets last. Bright white "ship tracks" seeded by sulfur dioxide from stack exhaust are a common demonstration of this effect, and can be seen in satellite photos of the North Atlantic. This added reflectivity has a localized cooling effect, which has long been recognized. Recent research suggests that the SOx from the stack exhaust may cause a cooling effect even when the "track" is too thin to be visible to the naked eye, and it may have a more substantial impact on temperature than previously thought.

Shipping has historically been a large-scale SOx emitter because of its high-sulfur fuel, but the HFO tap was turned off in 2020 by the IMO. This handed climate researchers a readymade, global-scale experiment to test out SOx geoengineering - by examining what happens when the SOx stops. The early results suggest that IMO2020 had a big effect, and may even have caused part of the extreme ocean warming observed this year, according to a recent report in Science.

Last week, the North Atlantic posted its highest average temperature on record, just shy of 77 degrees F. There is still a month to go in the summer season and the record will likely broken again before the year is out, according to the National Oceanic and Atmospheric Administration (NOAA). According to Tianle Yuan, an atmospheric physicist at NASA’s Goddard Space Flight Center, the disappearance of air pollutants from HFO might be partly to blame for the surge in water temperature in this region. With less sulfur in today's fuel, there is less SOx in exhaust; with less SOx, less reflective clouds form, leading to less cooling and more heating.

In a paper published last year, Yuan and his colleagues found that the IMO2020 fuel change cut cloud tracks in key shipping lanes by half. In a follow-up paper currently in review, they estimate that this has a substantial effect on warming, concentrated in areas with heavy shipping activity like the North Atlantic. The reduction in reflective cloud cover over this region, plus an unrelated reduction in reflective airborne dust levels, “can account for most of the warming observed” in the North Atlantic, Yuan told Science.

This has implications for future geoengineers. If reducing SOx causes more warming, the reverse should also be true, researchers say. “It suggests pretty strongly that if you wanted to do it on purpose, you could,” atmospheric scientist Michael Diamond told Science.

Video: Ukraine Damages Russian Warship in Attack on Black Sea Ports

Russian warship attacked — Image from video reportedly released by Ukraine's Security Service of the drone attack (Telegram)

Ukraine has severely damaged a Russian warship as it expands its attacks on Black Sea seaports. The attacks overnight increased and included the Russian naval base and the busy commercial port of Novorossiysk in the eastern Black Sea as well as the port of Feodosia to the west in the occupied portions of Crimea.

Images circulating on social media show a Russian amphibious Ropucha-class landing ship listing and apparently heavily damaged in the attack, although the Russian Defense Ministry insists the attacks were repelled on both ports. The vessel is being identified as the Olenegorsky Gornyay, built in Gdansk, Poland in 1976 and operating with a crew of approximately 100 sailors.

(Telegram)

Ukraine’s navy denied knowledge of the attack but accounts being attributed to Ukraine’s Security Service (SBU) said that the nighttime assault was carried out by a “maritime kamikaze drone.” They released a 30-second video showing the uncrewed vessel in the harbor and locking in on the silhouette of the warship. Reports said the drone was loaded with 450 kilos of TNT.

Daytime images from the port show the vessel listing to port. Other images show multiple tugs alongside with accounts saying they were attempting to move the damaged ship to shore. The Olenegorsky Gornyak was reportedly being used to move heavy cargo including military vehicles.

Russian news agency TASS reported that the authorities based in Sochi would be increasing security on the commercial seaport and had briefly suspended all ship movements. The commercial port handles oil shipments from the Caspian Pipeline Consortium which operates a terminal in the port as well as handling Russian agricultural products.

Separately, Ukraine’s southern military command confirmed that the port of Feodosia had also been targeted during the overnight attacks. Russia claims to have neutralized 13 Ukrainian drones that were attacking the port. The Ukrainian Navy said the port was targeted because the Russian Black Sea fleet uses a large oil storage facility in the port. They said based on the navy’s use of the port “we should continue to expect to see explosions there.”

Ukraine’s attacks on the eastern Black Sea ports come just days after Russia repeatedly attacked the port of Izmail, Ukraine’s largest seaport on the Danube, which was emerging as an outlet to restore limited grain shipments. Ukrainian media is today quoting a spokesperson for the southern military command that they are working to repurpose air defenses as well to strengthen the defense of the seaports with anti-missile assets capable of counteracting the Russian drones. They said there have been a total of seven attacks on the seaports since Russia in mid-July ended the Black Sea grain agreement with the United Nations and Turkey.

Self-unloading bulker

Hull Breach Causes Oil Spill from Great Lakes Freighter off Michigan

The U.S. Coast Guard along with state and local agencies was responding to a Great Lakes freighter that was leaking oil in Lake Michigan while anchored approximately 1.5 miles off the coast. Residents were briefly warned to stay away from the beaches, but in coordination with NOAA, the Coast Guard later said it was mapping the projected movement of the spill and that it was safe to go to the beaches. People were cautioned to remain on the lookout for possible diesel oil contamination.

The 50-year old laker Manitowoc, owned by Rand Logistics and operated by the group’s Grand River Navigation reported the oil spill to the U.S. Coast Guard Wednesday afternoon. The vessel registered in the U.S. is 19,800 dwt and 630 feet in length. The USCG reports it was told shortly after the ship left port the crew observed movement in the fuel gauges, indicating possible water ingress and a fuel leak.

The ship told the U.S. Coast Guard that it had determined it had a hull breach on its starboard side in the area of its diesel fuel tank. Within a few hours of the report, a USCG overflight spotted a red oil slick that was approximately 1.6 miles long and 200 yards wide projecting to the northeast from the vessel. NOAA determined that winds and currents were keeping the slick offshore. As of late on Thursday, 24-hours after the diesel was released, the USCG is reporting that a visible sheen two nautical miles long and approximately three-quarters of a nautical mile wide was still reported on the lake. The closest affected area is .8 nautical miles from shore.

The USCG deployed 400 feet of sorbent boom in an attempt to contain the slick, while the vessel reported it was lowering the fuel level in the tank to get it below the breach. At the same time, a crew was working to patch the breach with reports saying they initially had partially blocked the breach. Later reports are saying the breach has been plugged. As of Thursday, the USCG is confirming that the vessel is no longer leaking oil.

The current estimate is that the maximum fuel aboard is 45,175 gallons of diesel. They are currently working to determine how much was released into Lake Michigan. The vessel’s operators have retained a salvage company to aid in the recovery.

The self-unloading bulker remains anchored near Manistee, Michigan.

Video: Containership Runs Aground Becoming Tourist Attraction in India

Containership aground in India — People turning out along the river bank to see the containership which grounded this morning (Ministry of Ports)

An inbound containership heading toward India’s inland port near Kolkata caused excitement as it ran up on the river bank near a local tourist center. The Ministry of Ports, Shipping, and Waterways is reporting that there were no injuries but a lot of people turned out to see the spectacle of the ship stuck in the river mud.

The MTT Singapore is a 10,300 dwt containership operated as part of the regional service from MTT Shipping of Malaysia. The 27-year-old vessel has a capacity of 653 TEU although the ministry is reporting that only 338 containers are currently aboard. The vessel has a crew of 20 from the Philippines and Malaysia and is registered in Malaysia.

The vessel was heading inbound toward the port in eastern India near the border with Bangladesh. It was proceeding along the Hooghly River with a pilot aboard when the ministry reports it experienced a “steering failure.”

Some local reports are suggesting that the vessel was attempting to pass another ship on the river or possibly trying to avoid a collision when it veered from side to side before becoming firmly wedged into the river mud.

The ministry reports that it ordered the master to ensure the lashing on all the containers so that none of the boxes were lost overboard. No oil spill has been observed and tugs have been dispatched.

They expect to refloat the containership on high tide either Wednesday night or Thursday morning.

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