Midnight Sun shares plunge on Zambian exploration licence setback

Staff Writer | August 29, 2024 | 

Drill core at Midnight Sun Mining’s Solwezi copper project in Zambia. Credit: Midnight Sun Mining

Midnight Sun Mining (TSXV: MMA) shares plunged on Thursday after it reported the Zambian government rejected a request to renew the company’s exploration licence for the Kazhiba target at its flagship Solwezi copper project.


The government, which on Thursday said it was forming a new company to control 30% of all the country’s mining projects, didn’t give a reason for the Kazhiba licence refusal, Midnight Sun said. The rights were instead given to another company, the Canadian junior added. It has suspended work on Kazhiba, but said it may appeal the government’s decision.

“While we are disappointed in the current situation, we do believe it will be rectified,” CEO Al Fabbro said in a release. “We are taking all possible steps to expedite a swift resolution so that we can resume our exploration at Kazhiba.”

Shares in Midnight Sun Mining fell 11% on Thursday in Toronto to close at C$0.355 apiece, valuing the company at C$58.7 million ($43.5 million).

Kazhiba is one of three licensed target areas on the company’s 506-sq.-km property that have had significant copper discoveries to date. It is underlain by a previously undiscovered basement dome similar to those at the Kansanshi mine held by First Quantum Minerals (TSX: FM) and Barrick Gold‘s (TSX: ABX; NYSE: GOLD) Lumwana mine, Midnight Sun said.

High-grade target

The Kazhiba project features the high-grade 22 zone, located 10 km from the western mine gate of First Quantum’s Kansanshi mine complex. This zone was discovered by follow-up shallow drilling in 2012 over a subtle copper anomaly with thick overburden, Midnight Sun said. One discovery hole intersected 11.3 metres of 5.71% copper near surface.

Midnight Sun had planned to further explore the target this year to define its copper oxide resources, as well as potential feed sources for the nearby Kansanshi mine under a cooperative exploration plan with First Quantum.

For this program, the company said it had submitted an application to renew the Kazhiba licence. It was due this year for a final three-year extension allowed under Zambian mining law.

No formal notice

Billionaire-backed KoBold, Midnight Sun team up for Zambia copper discovery

However, when Zambia’s mining licencing committee rejected the application in June, it didn’t deliver a formal notice to the company, and instead only published the decision on its website, Midnight Sun said, adding that it was unclear what company was instead awarded the exploration rights.

Meanwhile, Midnight Sun said its other two licences are unaffected by the government’s move. One covers the Dumbwa target, which is under an earn-in agreement with KoBold Metals, the high-profile startup backed by billionaires Bill Gates and Jeff Bezos. The other is the Kansanshi-style Mitu target, part of the cooperative exploration plan with First Quantum.

Exploration is to move forward as planned at Mitu, which represents a bigger target than Kazhiba and also hosts near-surface oxide copper. Previously, drilling at Mitu returned 11.6 metres at 3.44% copper.

US mineral projects close down government loans in fear of Trump

Reuters | August 29, 2024 |

Battery recycling plant in Rochester, New York. (Image courtesy of Li-Cycle.)

US miners and battery recyclers are rushing to close government loans worth billions of dollars before January out of concern that former President Donald Trump would, if reelected, block funding needed to boost American output of critical minerals for the energy transition.


Tumbling prices this year for lithium, nickel and other minerals, as well as lower-than-expected EV sales, have spooked private financiers and put the traditionally conservative mining industry in the unusual position of needing Washington’s support to grow and counter what the West sees as China’s market manipulations.

Under President Joe Biden, the US Department of Energy’s Loan Programs Office (LPO) has awarded nearly $25 billion in conditional loans to 21 companies, including Li-Cycle, ioneer, Lithium Americas, Redwood Materials and others planning to build facilities that recycle batteries or process lithium and other minerals for use in electric vehicles. Such conditional loans still need final approval, which takes time.

Solar companies, including South Korea’s Qcells, and hydrogen firms, including Plug Power, have also received conditional loans, yet their plans rely in part on domestic supply of critical minerals, thus making the funding for mines crucial for the US energy transition.

The average LPO loan is for $1 billion and each must be reviewed by the office and others across government – including engineers, financial experts and even Energy Secretary Jennifer Granholm – before funds are dispersed.

Given Trump’s pledge to “end the electric vehicle mandate” and plans laid out by former Trump administration officials in the Project 2025 document to shutter the LPO, mining companies and others are rushing to close the loans before Biden leaves office in five months. Some are likely to fall short given the short timeframe, according to interviews with more than two dozen industry executives, consultants, investors, analysts and policymakers.

Without those financial lifelines, all of the sources say, many domestic critical minerals projects could be frozen in the planning stage, a step that could cripple the Western EV supply chain as Beijing-linked rivals boost market share by flooding global markets with cheap supplies of metals.

One executive with a loan pending before the LPO said Trump was “a wild card,” so the company was keen to get its loan finalized before a new president takes office in January. The executive was one of five interviewed for this article who, along with other experts in the field, declined to be identified so as not to offend Trump, a Republican, or Vice President Kamala Harris, his Democratic rival in the Nov. 5 election.

Trump has tried to distance himself from Project 2025, although much of its energy-related portions were written by aides from his first term.

LPO staff members have told applicants they will be unable to finalize many outstanding loans before January given the need to closely scrutinize each project’s credit worthiness and other factors, with most loans by necessity falling to the next president to address, three sources with direct knowledge of the conversations said.

The Harris and Trump campaigns did not respond to requests for comment.

The US Department of Energy, which controls the LPO, said the loan program has “provided a bridge to bankability for American entrepreneurs and innovators for almost 20 years” and holds “responsible stewardship of taxpayer money” as a key priority.

“Federal programs like ours regularly continue across administration changes,” said an Energy Department spokesperson.

Harris, who cast the tie-breaking vote for the Inflation Reduction Act in 2022, is expected to continue many of the climate policies implemented by Biden, although her aides told Reuters she is being strategically ambiguous with energy proposals.

The LPO employs roughly 400 people, up from 90 when Biden and Harris took office in January 2021.

Trump issued only one LPO loan during his first term by lending to a Georgia nuclear project that had previously received loans under then President Barack Obama. The LPO was sidelined during the rest of Trump’s term, although his administration did update lending policies a month before leaving office to invite critical minerals projects to apply.

Much of the uncertainty with a Trump second term, according to the sources, centers on how he would implement funding portions of the IRA, which boosted LPO funding yet was opposed by Trump. While Trump couldn’t unilaterally close the LPO as it is congressionally funded, he could slow-walk the loan underwriting process to such a degree that applicants walk away.

Plug Power, which is building multiple US hydrogen plants, said it is working closely with the Energy Department to finalize its $1.66 billion loan. “Given the resilience of (Department of Energy) programs through previous administration changes, we remain confident that subsequent administrations will continue to support projects that have received prior conditional approval,” Andy Marsh, Plug Power’s CEO, told Reuters.
Mining projects

The LPO, which gave Tesla a $465 million loan in 2010 to stave off bankruptcy, has been meticulous in its loan review process under Biden, with more than two-thirds of applicants requiring help to navigate the complex credit review process that slows down the loan approval timeline, LPO chief Jigar Shah, told Reuters last year.

For US mining projects, any delay in funding could imperil plans to supply cathode and battery facilities, many of which are also in line for LPO funding.

In Nevada, ioneer is pushing to close a $700 million LPO loan for its Rhyolite Ridge lithium project, which is estimated to eclipse $1 billion in cost. And General Motors-backed Lithium Americas has begun work on its nearly $3 billion Thacker Pass lithium project, which Trump approved five days before leaving office. The bulk of the project’s funding will come from a $2.26 billion LPO loan that the company expects to close by December.

“We’re pleased that our project was supported by the Trump and Biden administrations,” said a spokesperson for Lithium Americas. “They both have expressed the importance of Thacker Pass in securing a domestic supply of critical minerals.”

Australia-based ioneer did not respond to requests for comment.

Recycling startups Li-Cycle and Redwood are also rushing to close LPO loans. Redwood was conditionally approved for a $2 billion loan that it expected to close last year, but the company is still waiting for funding.

Li-Cycle said it continues “to work closely with the US Department of Energy on key technical, financial and legal workstreams to advance towards definitive financing documentation for a loan.”

Representatives for Redwood and Qcells did not respond to requests for comment.

Another executive with a loan pending before the LPO said they believe Trump understands that EVs will grow in popularity, a stance echoed by some Republicans.

Yet whether Trump would see the value in using US industrial policy to support miners and others in a potential second term – or whether he will hew more toward Project 2025’s aims – is fueling anxiety among executives looking now to make decisions that will affect their companies for years.

A third executive with a pending loan said it was not clear whether Trump’s statements on the subject were “rhetoric or actual policy.”

(By Ernest Scheyder, Gram Slattery and Trevor Hunnicutt; Editing by Veronica Brown and Claudia Parsons)

ARTISANAL MINING

Toxic, deadly, cheap: Life for women gold miners in the Philippines

Reuters | August 29, 2024 | 

Families in small-scale gold mines in the Philippines. 

Credit: ILO Asia-Pacific | Flickr

It’s a man’s world mining gold in the Philippines – but it’s the women who come off worst.


Be it cooking toxic pans of mercury, scouring mud pools for cheap slivers of hope or sluicing the boggy soil – women do the hardest jobs and get paid the least.

One in three of the illegal mining workforce is female – and women are 90 times more at risk of dying on the job than men.

“There are a lot of women in the mines, but they are invisible,” Meggy Katigbak, an expert on small-scale gold mining, told the Thomson Reuters Foundation.

The work is illegal, makeshift – and doesn’t even pay well.

But they’ve been mining this way for centuries in Paracale, a colonial, coastal city whose name means ‘canal digger’ after gold-hungry colonial powers swooped in to make their fortunes.

They are still scouring – and dreaming big – today.

“Life here is hard, but my children give me strength to do this. They’re my life,” Christy Ortiz told the Thomson Reuters Foundation.

Like any other day, 44-year-old Ortiz rose at dawn, waking first to cook for her seven children, before setting out to hunt for gold in a homemade mine she had dug from rice paddies and filled with muddy water.

Ortiz and her husband practice compressor mining – the world’s most dangerous gold extraction method and one that is only found in her little corner of the Philippines.

Manila banned it in 2012 for its grave safety risks and health hazards – a matter of no care to the Ortiz family.

As Ortiz looked on, her husband dove 10 feet (3 m) under, breathing through a tube he had connected to a compressor, which pipes air underwater and is her family’s prized possession.

Ortiz paid 29,000 pesos ($515.92) for the machine, using money she had amassed through years of scrimping, carefully saving her state welfare grants: money only given to the country’s poorest.

While her husband waded underground for hours, filling buckets with dense soil, Ortiz performed all the above-ground rituals to extract whatever slivers of gold she could find.

With no protective equipment, she worked in the same white shirt and skirt that she wore at home.

There is little separating her work from home life.

“Sometimes I forget to eat breakfast, because I need to go straight to the mine after sending my kids to school,” said Ortiz.

Her feet soaked in muddy water, she mashed the soil and ran gloop through a sluice box made of wood and banana leaves, hoping the water might tease out even a sliver of gold.

Next Ortiz extracted the nuggets from a clag of soil and stones, using a traditional wooden tool, then cooked up the gold with mercury, a toxic metal used to separate gold from ore.

Her takings – one tiny piece of amber metal worth less than 200 pesos ($3.56) enough to get them through that day.

Luckier than yesterday, she said, when no gold came.

Ortiz said earnings ranged from zero to 1,000 pesos a day, so on lean days, Ortiz said she had to pull a double shift and go selling charcoal to the neighbours to feed her big family.

“I didn’t want to do this forever — I wanted to go back to my hometown,” said Ortiz, who lives more than 1,000 km from her birthplace. “But I didn’t want the people there to know that I’ve been struggling since I came here.”
Her health, her baby’s health

Some 15 million women work in the artisanal and small-scale gold mining (ASGM) sector globally, and an estimated 18,000 to 20,000 Filipino women and children take part in ASGM-related work.

Figures may be far higher in the absence of any official count, industry experts say, but all agree the work affects women’s health and earnings disproportionately.

Gender discrimination and disregard for health, safety and social protection limit the rights and economic opportunities of women miners, according to a 2023 report by the World Bank.

Women are often barred from the top jobs and do not get paid as much as men for the same work, according to the Bank, which analysed mining laws in 21 countries.

Deep-seated cultural bias can also get in the way of wider sectoral reform.

Filipino women struggle to access capital, even as their exposure to hazards has increased, the report said.

In Paracale, many families mix backyard digging with domestic life, forcing women to balance household chores and caring duties with risky gold panning and mercury mixing.

A field survey by the International Labour Organization (ILO) revealed that almost 73 percent of female Philippine respondents had handled mercury, often linked with pregnancy risks and birth abnormalities, such as cerebral palsy.

Janice Galero, who used to sluice, pan, and cook gold in Paracale, said high levels of mercury were still found in her blood seven years after she stopped mining.

Official tests carried out in 2022 to gauge the risks of mining showed mercury in a high number of women’s blood.

But a representative from planetGOLD, a United Nations-affiliated programme working to eliminate mercury from the supply chain in gold, said both the national Department of Health and the local government of Paracale had “agreed not to make the results public to avoid panic in the community”.

“The DOH made recommendations for the offices concerned and the local government…developed an action plan to address the issue,” said planetGOLD communications officer Dawn Po Quimque.

The DOH did not respond to requests for comments.

ASGM is the largest user and emitter of mercury in the world, according to the UN Environment Programme.

Mercury can damage the nervous system, kidneys, liver and immune system, but is widely used as it is cheap and effective.

Now a board member of a local mining association, Galero said she wants to raise awareness of the health risks of mercury as well as bring an end to all illegal mining in her town – an uphill task given so many locals depend on gold to survive.
Folklore and tradition

In the mountain town of Sagada in the Cordillera region, the country’s least populous area, women are banned from the mine tunnels during their menstrual period to avoid “bad luck”.

Yet women elders are also expected to lead Sagada rituals for a bountiful “harvest” in the mines, in a nod to women’s traditional, hallowed role in agriculture.

Eliza, a respected elder and among the first women allowed to work in the sector in the 1980s, said she was still barred from the tunnels and could only get work sluicing, shovelling rocks to hunt for missed nuggets or cooking meals for miners.

Men focus on mine work, whereas women were “jack of all trades” scrambling for odd jobs to feed the family, she said.

So Eliza works as a tour guide, raises pigs and sells homemade rice cake and sweet potato on weekends.

Gold extraction pays poorly for women such as Leny Lieo, who was hired in February to sluice gold, a task commonly reserved for Sagada women.

Lieo, 49, said she works an eight-hour day at the Fidelisan village mine and gets paid 300 pesos, lower than the daily minimum wage in her province.

She had no choice; rice farming no longer fed her family.

“At least here, I can earn money to buy makeup or lipstick,” she joked. “Money is important to me so my family can eat.”

Jobs like hers come without any health or social benefits – she is considered an add-on.

“I am not a miner because I’m a woman. Only men are considered miners,” said Lieo, picking up her second basin of soil for sluicing. “If you’re a regular worker, you have benefits. And your salary is higher.”

Yet some change is finally afoot in slow-to-budge mining, with activists seeing room for female leadership in the sector.

“We see female politicians, women who head local state offices… but we need more. We really need more push especially in places where women are being discriminated,” said Sagada municipal gender officer Gloria Pilamon-Langbayan.
Mining reforms

The World Bank is calling for new legislation to recognise women’s role in mining and is urging politicians to address the hazards that women miners in particular face.

Reform, though, is hard in a sector that is largely illegal and unregulated, despite producing 80% of the country’s annual gold reserves and supporting 2 million Filipinos.

In the Philippines, the industry is covered by the “People’s Small-Scale Mining Act of 1991”, which limits small-scale mining to manual labour and prohibits the use of heavy equipment.

New approach aims to detoxify artisanal gold mining

Many small-scale mines were outlawed in 2012 when the government mandated that locals instead set up mining cooperatives or certified associations.

About 100 mines have since won approval but the application process is tedious and resource-intensive, with fees as high as 2 million pesos.

Backyard digging, compressor mining and other informal gold mining operations remain rampant in Paracale, overtaking farming as the main source of income for locals.

More than half the town’s population of 60,000 is involved in mine work yet it only has one certified people’s mine.

“People would ask: ‘Why is Paracale not wealthy when it’s rich in gold?'” the town’s vice mayor Bernadette Asutilla told Context in an interview.

The reality on the ground had moved on from the laws, Asutilla said, since the old mines ran dry, forcing small-scale miners to dig deeper and work longer to earn a living.

Asutilla said this would require modern equipment or explosives – both prohibited by law.

“Mining has become a gamble in Paracale,” she said.

“With the resurgence of small-scale mining, we see that women are becoming more involved with mine work and occupying leadership roles,” the vice mayor said.

Back in Paracale, Shirley Suzara is a case in point.

Often buried in paperwork, the 51-year-old works from her Paracale home to improve access to capital and markets, checking that local operations are legal and promoting equal pay for men and women under her watch.

“We do not dive underground, but women are important in any aspect of [gold production],” said Suzara.

Katigbak, the sectoral expert who is working with mining communities on gender reforms, said it was baby steps – so far.

“Although women still do not have that much hand in decision making… we see that they are now finding their voice. But it takes a long time,” said Katigbak.

“We still have a long way to go.”

($1 = 56.2100 Philippine pesos)

(By Mariejo Ramos; Editing by Lyndsay Griffiths)

 

Zelim's Swift Man Overboard Recovery System Receives LR Type Approval

Above: Zelim’s SWIFT Man Overboard Recovery System and Zelim COO Stewart Gregory

Published Aug 29, 2024 11:38 AM by The Maritime Executive

 

[By: Zelim]

Zelim’s SWIFT man overboard recovery device has received full type approval from classification society Lloyd’s Register, paving the way for the maritime industry’s widespread use of the sea survival safety system.

A Certificate of Type Approval was presented to Zelim following the successful completion of extensive in-water performance tests at Fleetwood Testing Laboratory and Heavy Weather Sea Trials (Sea State 4).

The SWIFT Rapid Man Overboard Recovery system, a rescue conveyor that pulls to safety conscious and unconscious individuals from the sea in less than one minute, was successfully demonstrated in May 2023 at a windfarm offshore Ramsgate, in the Southern Bight of the North Sea.

During the three-day trials, the Zelim SWIFT recovered a test dummy two nautical miles offshore, in high sea states, and more than twenty times faster than it takes to save souls using conventional man overboard equipment.

“Type approval certification assures the global maritime and offshore industries that SWIFT is compliant with SOLAS and can be adopted as a primary means of man overboard recovery for ships and offshore installations,” said Zelim CEO, founder and innovator Sam Mayall.

Developed by operational SAR personnel, SWIFT is treadmill-like conveyor belt system of various sizes hinged to a rescue crafts’ stern or side. Once the rescue vessel nears the casualty, SWIFT is lowered into the water and the conveyor belt activated. Casualties are simply and quickly pulled free of the water upon traction with the conveyor belt system, which is powered by a 240v motor.

“Sea survival is hugely dependent on the time it takes to retrieve individuals from the water, but often high sea states make recovery difficult,” said Mayall. “When rescue vessels approach, many survivors do not have the strength to pull themselves to safety. It is staggering the number of souls lost that could have been saved.”

Industry reports indicate that only 17% to 25% of passengers that fall from cruiseships voyages survive. And of all the 308 man overboard incidents reported to the UK’s Marine Accident Investigation Board (MAIB) between 2015 and 2023, 40% lost their lives.

Zelim COO Stewart Gregory, a former Vice President for Innovation & New Product Development at Survitec, said: “The maritime and offshore industries now have a fully type approved certified system capable of rapidly rescuing people from the sea in all weather conditions. Lives lost to man overboard incidents could be reduced substantially if every rescue boat, crew boat, pilot boat or tender was equipped with SWIFT as a matter of course.”

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

Telemar Provides Safety & Navigation System Support Services to Italy’s GNV

he contracts will consolidate service of critical bridge navigation equipment to a single provider, saving time and manpower and reducing the risk of non-compliance.

Published Aug 28, 2024 12:50 PM by The Maritime Executive

 

[By: Telemar]

Telemar, the leading provider of smart maintenance and remote access technologies, has signed an agreement with GNV (Grandi Navi Veloci) to provide safety maintenance services on its growing fleet.

GNV has awarded Telemar a contract for management and maintenance of GMDSS and navigation safety installations on its newbuildings GNV Polaris, GNV Orion and GNV Virgo, constructed at CSSC shipyard Guangzhou. These new ships, which will boost ferry services in the Mediterranean and beyond, mark a new chapter in GNV’s commitment to excellence in maritime transportation.

The contracts will consolidate service of critical bridge navigation equipment to a single provider, saving time and manpower and reducing the risk of non-compliance as scheduled service will be planned to agreed timeframes rather than carried out on an ‘ad hoc’ basis.

Founded in 1992, part of MSC Group, GNV is one of the leading shipping companies operating in the coastal navigation and passenger transport sector in the world: with a fleet of 25 ships, the Company operates 31 lines in 7 countries, to and from Sardinia, Sicily, Spain, France, Albania, Tunisia, Morocco and Malta.

Telemar specialises in Smart Maintenance and management of bridge electronics, providing pro-active remote and in person support with the aim of reducing potential down-time and increasing vessel efficiency with a higher percentage of first-time fixes.

As well as creating a benefit for shipowners by streamlining troubleshooting wherever they are operating, Telemar can use the data collected to optimise asset lifecycles and deliver further efficiencies. This can be used to deliver more repairs remotely and increase first-time fixes for a more efficient service when its field engineers visit customer vessels.

“Telemar is grateful to GNV for the trust they have shown in the expertise of our people and our ability to manage these critical safety systems on their behalf,” said Mike Bauwens, CEO, Telemar. “These companies have a deserved reputation for quality and quality of care for people and cargo and we are focussed on upholding that reputation.”

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

 

Strategic Marine Delivers Two 42m Fast Crew Boats to ADNOC L&S

Published Aug 29, 2024 11:29 AM by The Maritime Executive

 

[By: Strategic Marine Group]

Strategic Marine is proud to announce the successful delivery of twoindustry leading 42m Fast Crew Boats (FCBs) to ADNOC L&S, reinforcing our commitment to supporting offshore operations with cutting-edge maritime solutions.

The 42m FCBs, meticulously crafted at Strategic Marine, represent the pinnacle of marine engineering and innovation. Designed to meet the rigorous demands of offshore operations, these vessels offer exceptional and industry leading performance, safety, and reliability. Equipped with advanced technology such as Gyro-stabilisation and hybrid systems for carbon reduction and increased efficiency , they are poised to set new benchmarks in the industry.

Key Features of the 42m FCBs:

• Superior Performance: Optimized hull design for enhanced speed and fuel efficiency.
• Hybrid System: Enable for reducing carbon emissions and increases overall efficiency.
• State-of-the-Art Technology: Advanced navigation and communication systems for precise operations.
• Crew Comfort: Ergonomically designed accommodations for improved comfort and safety.
• Eco-Friendly Initiatives: Incorporation of green technologies to minimize environmental impact.
• Gyro stabiliser: Dramatically reduce vessel rolling motion with gyro stabilizing torque.
• Upgraded HVAC system meeting geographical conditions
• Bespoke aft landing for specific operational requirements

Mr Mohamed Al Ali, Senior Vice President of Offshore Logistics for ADNOC L&S mentioned: “We are excited to receive these two class-leading vessels equipped with new technologies, and would like to thank Strategic Marine for this collaborative effort towards our similar goals of carbon reduction and enhanced operational safety catered for the maritime industry.”

Mr. Chan Eng Yew, CEO of Strategic Marine, commented on the delivery: "We are thrilled to deliver these cutting-edge Fast Crew Boats to ADNOC. These deliveries underscores our dedication to providing innovative solutions that enhance offshore operations."

Strategic Marine remains committed to driving innovation and excellence in maritime construction, supporting the global offshore industry with high-performance vessels.

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

 

Oregon’s Port of Portland Rescue Plan Calls for Doubling Container Volume

Portland Oregon presented its plan as part of the governor's aid package for the container operations (file photo)

Published Aug 27, 2024 6:40 PM by The Maritime Executive

 

The Port of Portland, Oregon’s only ocean-going seaport, submitted its revised comprehensive business plan to Governor Tina Kotek as part of the state’s promise to lead a rescue of the financially troubled container terminal operations. The operation is currently losing more than $12 million a year but with state aid, they envision doubling container volume over the next five to seven years as the operation reaches financial sustainability and provides a vital service to Oregon’s businesses.

Governor Kotek required the revised plan as part of her pledge to provide financial support to maintain the container service. With mounting financial losses and the collapse of negotiations for a private operator, port officials in April said they faced no choice but to suspend container operations as of October 1.  A month later, however, it reversed course after the governor promised to provide stop-gap funding and said she would include long-term investments and funding for channel maintenance in the state’s budget. In total, she is proposing $40 million in future support to the port for its container operations.

The port emphasizes the financial contribution it makes to the state and is a vital service to businesses primarily in the agricultural sector. Seafood, grain, animal feed, building supplies, tires, and more all move through the port. Many shippers prefer the nearby port versus sending their goods overroad to Washington state’s larger ports. However, like many smaller, regional ports, Portland found itself under pressure when the pandemic-induced shipping surge slowed.

The Port of Portland writes in its plan that it has sustained financial losses due to factors outside its control. It is more than 100 miles from the ocean and the Columbia River has limited depth to accommodate the largest vessels. In addition, it is a relatively small consumer market and port officials in the past said they were hurt by the loss of a rail service partner BNSF that had provided a connection to Seattle and Tacoma.

The port’s biggest problem however came from a long-running dispute between the International Longshore and Warehouse Union (ILWU) and then operator of T6 ICTSI. The operator ultimately ended its contract because of the jurisdictional labor dispute and the port assumed direct control of the terminal. The labor issues have been settled but it further chased away shippers.

The port calls for negotiating new rates with the container shipping companies and says it has negotiated labor efficiencies with ILWU and fee reductions with the terminal’s stevedores for containers. They are now working on a new marketing plan but admit that volume is the most critical factor. Next year they believe they can add 10 percent to the current volume of just around 600,000 TEU annually. That would contribute nearly $1 million to operating income. They project cutting losses to around $10 million annually.

The port however says it cannot sustain the operation without significant investment from the state. Governor Kotek promised $5 million in immediate operational support from the state’s Joint Emergency Board which is due to meet in September. The governor also promised $35 million in her budgets between 2025 and 2027 which would provide an additional $20 million in investment capital and $15 million for dredging and improvements in the river. However, the governor’s plan says as much as $70 million would be required for the river with the state seeking to renew grants from the federal government.

The port says it has subsidized the container operations despite significant financial losses over many years. The business plan addresses the governor’s concerns and they point out it has received strong support from the business community including importers and exporters and major businesses including supermarket operator Kroger and Columbia Sportswear. Labor representatives are also vowing to support the efforts to rescue the port’s container operations.

Terminal 6 has berths for five vessels and seven container cranes, including four Panamax cranes. The bulk of the port’s volume is in RoRo and bulk cargo which would not be impacted if the container operations do not continue. 

 

Second MARAD Training Ship Patriot State Completes Sea Trials

Empire State with cadets at the rail during her first training cruise (SUNY Maritime College)

Published Aug 28, 2024 7:29 PM by The Maritime Executive

 

 

The program creating a new fleet of modern training ships for the U.S. Merchant Marine marked its next key milestone today, August 28, with reports that the second MARAD vessel completed its sea trials. The Patriot State, which will be assigned to the Massachusetts Maritime Academy, returned to Philly Shipyard reports construction manager TOTE Services. 

The second ship of the class is due for delivery to MARAD this year and will be closely followed by the third vessel, State of Maine, which was launched in April 2024 and is currently fitting out. In June, Philly Shipyard highlighted the placement of the first of the two motors for the fourth vessel, Lone Star State. Each of the ships has two 4,500 kW motors driving a single shaft with a total of 9,000 kW. Work on the fifth and final vessel, Golden State, is also getting underway with the vessel for Texas scheduled for delivery in 2025 and for California in 2026.

“We’ve reached a historic milestone with the sea trials of the second NSMV, Patriot State, that will be used to train future cadets at the Massachusetts Maritime Academy,” said TOTE Services President Jeff Dixon. “We’re grateful for the widespread, bipartisan support the National Security Multi-Mission Vessel program has received to help make this significant investment in the U.S. maritime industry possible.”

The U.S. Maritime Administration hired TOTE Services in 2019 to oversee the construction project. The company was named Vessel Construction Manager, the first time the government used this approach for a newbuild program. TOTE selected Philly Shipyard and is managing the project for MARAD.

The five vessels are unique as they are the first custom-designed and built training ships for the U.S. state maritime academies which traditionally used obsolete commercial ships. Known as Multi-Mission Vessels (NSMV), each of the ships is approximately 8,500 dwt and 525 feet (160 meters) in length. They have total accommodations for up to 760 people and provide numerous instruction spaces, a full training bridge, RoRo capabilities, and modern equipment for the training program. They are also designed to support humanitarian and disaster relief missions in times of need with the capability to carry cargo and are outfitted with a helicopter landing area.

The first of the ships, Empire State for the SUNY (New York) Maritime College was delivered to MARAD by Philly Shipyard and TOTE Service on September 8, 2023. The vessel arrived at its homeport at Fort Schuyler in the Bronx and in January 2024 conducted its first training cruise. The ship carried 230 cadets and 100 crew, faculty, and staff for a trip that lasted most of January. Empire State sailed from New York to San Juan, Puerto Rico. Its return was briefly delayed by bad weather and a mechanical problem with one of the two propulsion drives.

The first full training cruise for Empire State departed in June 2024 and she made stops in Port Canaveral, Florida and Nassau in the Bahamas. However, at the beginning of July, as she was sailing toward Portsmouth in the UK, she experienced a problem with the redundant fuel system including her fuel oil purifiers. The ship was able to maintain operation without a loss of propulsion but the decision was made to remain in U.S. waters so that the construction manager, shipyard, and original equipment manufacturer could troubleshoot the problem and provide maintenance repair support.

The training cruise was completed at the beginning of August with SUNY Maritime College reporting Empire State had covered more than 10,000 nautical miles. The ship returned with 466 cadets as well as 31 legacy students and its teachers and staff. It spent a total of 51 days at sea.

Massachusetts Maritime completed the final training voyage of its 1967-built training ship Kennedy which was recently transferred as an interim replacement to Texas A&M Maritime Academy until its new training ship is delivered in 2025. Maine Maritime also completed the last training cruise of its 1990-built State of Maine and is awaiting the delivery of its new training ship. The ships represent a significant advancement for training in the U.S. Merchant Marine.

 

Incat to Double Shipbuilding Capacity with New Facility in Tasmania

Incat's new facility will operate as a satellite of the existing facility to construct hulls and decks for assembly at the current yard (Incat)

Published Aug 29, 2024 5:03 PM by The Maritime Executive

 

 

Tasmania-based shipbuilder Incat, a pioneer in aluminum catamarans, is doubling its production capacity with the acquisition of a second site located northwest of Hobart. The expansion is part of the company’s anticipated demand for sustainable shipping as it develops the world’s largest electric ferry.

The new facility is part of a planned major economic hub in Southern Tasmania. Incat reports it acquired a 12-hectare site as part of the 565-hectare Norske Skog Boyer Mill site in Boyer, Tasmania. The additional facility will permit Incat to double its workforce and production capacity and will include a 240 by 120 meter (790 by nearly 400 foot) production facility. It will give the company the capacity to build three large ships at one time and with nearly 30,000 square meters of undercover production area. Combined with the original facility, the new yard will mean Incat has around 100,000 square meters of production space.

“The new site, which already has the appropriate industrial zoning, will allow us to construct hulls and decks for our vessels at Boyer and then transport the structure down the River Derwent to our existing Prince of Wales Bay shipyard to be completed,” explained Stephen Casey, CEO of Incat. “This will streamline our vessel construction process and enhance our ability to produce multiple ships per year for the market.”

The company which delivered its first aluminum catamaran in 1990 highlights it has been at the forefront of maritime innovation for more than 40 years. They look at the expansion as a key part of a strategy to leverage their expertise over the next five to 10 years to develop the market for large electric ships. 

“I predict more than 1000 new sustainable ships will be needed to satisfy the global market over the next decade,” said Incat Chairman Robert Clifford. “Domestically there will be a need for more vessels in locations such as Sydney Harbor, and in Europe, there will be a need for much larger vessels of up to 170 meters in length with the capacity to carry up to 1000 passengers. Incat is one of the few shipyards in the world capable of constructing large, lightweight, electric ships to meet that demand.”

They expect to begin vessel construction at the new facility in 2026. Norske Skog Boyer Mill will use a portion of the area for its manufacturing of paper products including newsprint and magazine-grade stock. They also hope to attract new industries such as renewable energy and advanced manufacturing as part of the economic development of the region.

 THE JETSONS GO JET SURFING

USCG Clears Regent’s Wing-in-Ground Craft for Full-Scale Human Testing

Regent received USCG approval for testing of a full-scale prototype with humans onboard (Regent)

Published Aug 29, 2024 7:48 PM by The Maritime Executive

 

 

The application of wing-in-ground technology is a step closer to reality as the U.S. Coast Guard approved the application from Regent, a manufacturer of the craft, to test its full-scale prototype including with humans on board. This comes just two years ago Regent successfully proved its WIG approach called a Seaglider using a quarter-scale prototype.

Regent promotes the Seaglider as a sustainable form of maritime mobility combining the speed of an aircraft with the convenience of a boat. It can be used for coastal transportation replacing regional aircraft and as a new form of ferry. The concept has drawn strong interest from airlines with Japan Airlines and Lockheed Martin among the investors. Mitsui O.S.K. Lines became an investor and Brittany Ferries is exploring using the craft for its service across the English Channel.

The first design is for an all-electric 12-passenger vessel that can travel at 180 mph. It would have a range of 180 miles on a single charge of its batteries. The company also looks to a larger 100-passenger version as battery technology advances.

Because WIG crafts operate skimming the water and within one wingspan of the surface, U.S. law treats them as maritime vessels. As such, the regulation is led by the U.S. Coast Guard with technical support from the Federal Aviation Administration. 

“U.S. Coast Guard approval of REGENT’s Navigational Safety Risk Assessment marks a significant step in bringing us closer to seaglider prototype testing with humans on board,” said Ted Lester, VP, of Certification, Regent.

The company reports the USCG formally accepted its Navigation Safety Risk Assessment with no modifications. The assessment included a third-party risk analysis of navigational safety and a review of environmental concerns and economic impacts from testing. Regent says it consulted more than 20 local stakeholders, including the Rhode Island Department of Environmental Management, harbor masters, marine pilots, the U.S. Navy, the Federal Aviation Administration, sailing organizations, and environmental groups, to ensure their concerns were addressed.

After review at the sector, division, and national level, the U.S. Coast Guard issues its approval. The company believes this assessment and approval will also act as a model for future commercial seaglider approvals in other U.S. waterways and around the globe.

With the approval, Regent will proceed toward its full-scale prototype tests. They previously completed float, foil, and flight tests with the smaller prototype. They plan to start testing the full-scale version later this year with humans aboard. They are approved for Narragansett Bay and Rhode Island Sound. The first flight is planned for early next year.

Regent has previously said its target is to bring the first commercial model to market by mid-decade. The company reports over 600 orders valued at more than $9 billion from airline and ferry operators.