Evergreen, NOL 2Q Profits Jump

Taiwan-based shipping giant Evergreen Marine has reported its first quarterly profit in nearly two years, leading the firm's stock to climb to it highest point since June, 2008.

The shipping line reported second quarter net profit of $129 million, compared to a loss of $62 million in second quarter 2009. The second quarter profits easily beat Wall Street estimates of $72 million.

Peter Tzeng, a Taipei-based analyst at Polaris Securities Co., told Bloomberg News, “It’s too good to be true, but it’s true. Demand for container shipping has returned to the levels before the global financial crisis.”

During Monday trading on the Taiwan Stock Exchange, Evergreen's stock jumped more than 2 percent on the news, climbing to its highest point since June 10, 2008.

As part of a 100-vessel plan, Evergreen Group, the parent of Evergreen Marine, ordered 10 new vessels last month.

Singapore-based Neptune Orient Lines, the parent of APL, also reported an earnings turnaround due to rising cargo volumes and higher freight rates.

NOL reported second quarter profit of $100 million, up from a $146.7 million loss in the second quarter of 2009.

The line also announced it had completed orders for two new 10,700-TEU vessels as part of a 12-vessel order with Daewoo Shipbuilding & Marine Engineering.

SoCal Ports Continue Box Volume Climb In July

The Southern California ports both reported more than 25 percent cargo volume growth during the month of July, continuing an upward trend that began in the first part of the year.

The Port of Long Beach handled a total of 587,881 TEUs in July, a 35.8 percent increase over the same month in 2009. The port also reported handling 293,878 TEUs of loaded inbound traffic, a 32.5 percent increase over the year ago period. Total loaded outbound volume during July was 126,177 TEUs, a 16.4 percent increase over July 2009.

Across San Pedro Harbor, the Port of Los Angeles moved a total of 730,745 TEUs in July, a 26.8 percent increase over the year-ago period. Port officials also reported total loaded inbound box volume climbed 21 percent for the month to 369,388 TEUs and total loaded outbound box moves were 146,368 TEUs, a 5.9 percent increase over July 2009.

Fast Ferries

By Chris Philips, Managing Editor

Alaska is not for the faint-hearted. Everyday life has unusual challenges, from 20 hours a day of darkness in the winter, to flocks of mosquitoes in the summer and crazy hormonal bull moose in the fall. Alaskans exposed to these challenges seem to thrive on the extraordinary, which explains the participants in the Iditarod and the Bering Sea Opilio crab fishery.

Another extraordinary Alaskan is the recently launched, 95-foot by 60-foot ferry M/V Susitna, for Alaska’s Matanuska-Susitna borough on Cook Inlet.

“We’re pretty proud of her,” says Doug Ward, director of shipyard development for Alaska Ship and Drydock (ASD), in Ketchikan, Alaska. “She’s an extremely unique ship.”

Built by ASD to a design by Seattle Naval Architecture firm Guido Perla and Associates, with guidance by the US Navy’s Office of Naval Research (ONR), the unusual ferry will connect Anchorage to Port MacKenzie in the Mat-Su Borough on a 3-mile route that will turn a 2½-hour drive into a 15-minute boat trip. The borough, known as Mat-Su, will own and operate the passenger-vehicle ferry and give the Navy data on its operation as a possible ship-to-shore transport vessel.

Susitna is powered by four MTU 12V 4000 diesel engines, driving four specially designed waterjets as well as two azimuthing thrusters. The ro/pax vessel has a capacity of 100 passengers and 20 vehicles.

What makes the Susitna so unique is its dual-purpose hull, which combines the speed and seakeeping capabilities of a SWATH (Small Waterplane Twin-Hull) vessel with the versatility of a landing craft. Where a conventional catamaran has a main deck, Susitna’s is missing. Instead the craft has two demi-hulls with fore and aft crossmembers, and an empty space where the deck should be. “It’s like a big open donut,” says Ward. The hole is filled with a cargo deck that can be raised or lowered to fit the needs of the boat. Raised, the cargo deck is out of the water, the demi-hulls submerge to their 12-foot design depth and the vessel operates like a SWATH- in other words, with the seakeeping capabilities of a much larger vessel. The buoyancy of the hulls remains under the water’s surface, offering a surprisingly smooth ride. In SWATH mode the vessel has a 12-foot draft.

Stop the ferry and lower the cargo deck – an operation accomplished via a carefully calibrated hydraulic system – and the draft is reduced to 4 feet. In this mode, the vessel can be driven up on the beach with her hull-mounted waterjets and cargo can be offloaded via a ramp like a conventional landing craft.

The Navy has invested more than $1 million in the integrated science package, which includes sensors to monitor the stresses and strains on the hull.

During the builder’s trials, which begin this month, the vessel is expected to reach 20 knots and produce a service speed of 17 knots.

Ward says that in spite of the fact the vessel is a testbed for the Navy, the Susitna was designed to be a ferry. Terminals on each side of the ferry’s route will allow her to stay in deep-draft mode, using her sharpened demi-hulls to full advantage. Because Cook Inlet freezes in the winter, the ferry also has ice cutting capability.

“The lower hull leading edge is 2-inch-thick high strength steel,” says Ward. The builder calls the concept an “ice knife.”

“The rounded bow goes under first tier sea ice up to two feet thick,” he says. The leading edge of the hull then lifts the ice and cuts it. “As far as we know the Susitna is the first ice strengthened twin hull vessel.”

One of the biggest challenges for the shipyard was the diverse material that went into the hulls of the boat. For example, the bottom of the demi-hulls is reinforced, and has five different grades of steel in seven different thicknesses. While the demi-hulls are steel, the cargo deck is aluminum, and was built by Latitude Marine Services in La Conner, Washington, along with the passenger compartments. Alaska Ship & Drydock, Inc. built the aluminum pilothouse.

Alaska Ship and Drydock is an independent corporation owned by the Alaska Industrial Development and Export Authority and supported by the local borough and city. Susitna is the yard’s third newbuild, following a 120-foot ro/ro ferry, Oral Freeman, built in 2001, and the Chevron Legacy, a floating fuel dock and grocery store built for the 2010 winter Olympics in Vancouver, BC.

Low Emissions

In the lower 48, Kvichak Marine Industries and Nichols Brothers Boat Builders have delivered M/V Taurus, their fourth high-speed, environmentally friendly ferry to the Water Emergency Transportation Authority (WETA) located in San Francisco.

WETA has mandated that their new passenger ferries integrate as much green technology as possible and that emissions be 85 percent cleaner than the current EPA emission standards for Tier II (2007) marine engines. They started with a sleek, low wake 118-foot catamaran hull, designed by Incat Crowther of Australia, to minimize shore erosion from wake and reduce fuel consumption.

The vessels are powered by a pair of Tier II-compliant, MTU 16V2000, 1,410 HP Diesel engines with Selective Catalytic Reduction (SCR) systems from Engine, Fuel & Emissions Engineering of California. SCR injects urea into the exhaust before it passes through a precious-metal catalyst, converting nitrogen oxide into harmless nitrogen and water.

In addition to minimal shore impact and low emissions, the passenger ferries showcase several additional green features, including custom exhaust systems minimize noise pollution on ship and shore, solar panels to augment the electrical system and a sonar system that allows the captain to detect and avoid whales and debris.

Taurus is the final boat of the four-boat contract.

On Whidbey Island, Washington, Ice Floe, LLC, (dba Nichols Brothers Boat Builders) recently completed a repower of the M/V Del Norte, for Golden Gate Ferries. Four new Tier 2-compliant MTU 12V4000M60 series engines and new main driveline components were installed, while the four MJP waterjets were rebuilt by Seattle-based Sound Propeller.

Following the refurbishment of the Del Norte, Nichols Bros. will address the refurbishment of two ferries purchased by Golden Gate from the State of Washington. Golden Gate Ferries purchased the two boats, originally built at Dakota Creek Industries in the late 1990s as the M/V Chinook and M/V Snohomish, in January 2009. The engines to be installed in the two boats will have emissions that are 20 percent cleaner than the required Tier 2 marine engines. Additionally, Golden Gate Ferries, in partnership with MTU/Detroit Diesel, will be conducting a bio-diesel pilot project with the two boats.

In addition to new propulsion systems, the interiors and exteriors of the vessels will be fully refurbished to like-new condition.

The Chinook will be completed first, and work on the M/V Napa (ex- Snohomish) will begin when work on the first vessel is complete. The work is expected to take approximately six months per vessel and a little more than a year in total.

Fifth Ferry Boat for USS Arizona Memorial

The US Navy accepted delivery of the fifth USS Arizona Memorial passenger ferry boat from Modutech Marine Inc. of Tacoma, Washington in late June. This vessel is one of six boats being procured to replace the existing ferries that have reached the end of their service life. The boats, procured for the National Park Service by the US Navy’s Program Executive Office (PEO) Ships, serve as a ferry service to shuttle visitors to and from the memorial, and continue to support the US Navy’s commitment to the National Park Service, as they tell the compelling stories of the Dec. 7, 1941, attack on Pearl Harbor.

The new 78-foot vessels are constructed of fiberglass and can accommodate up to 149 passengers and three crew members. The boats use a combination of clean fuel technology propulsion systems, including EPA Tier 2 compliant marine diesel engines, exhaust and fuel system treatments, and biodiesel fuel. This will significantly reduce the “carbon footprint” of the passenger service provided at the national memorial. The ferries also comply with applicable Federal Passenger Vessel Accessibility Guidelines, improving accessibility.

Golden Gate Ferries 40-Year Mark

Sunday, August 15th marks the 40th Anniversary of the Golden Gate Ferries. The service was inaugurated by the Golden Gate Bridge, Highway and Transportation District, which purchased the twin-engine, diesel-powered ferry M/V Point Loma, reconditioned and rechristened her the M/V Golden Gate and began service on August 15th, 1970.

Between 1972 and 1977, the District built three new gas turbine-powered aluminum ferries, each capable of carrying 715 passengers, designed by renowned Seattle Naval architects Philip F. Spaulding and Associates. The new boats were built by San Diego-based Campbell Industries, with the first of the series, the G/T Marin, beginning service between Larkspur and San Francisco on December 11, 1976.

Former PMM California editor, Wes Starratt, says Kaiser Aluminum provided the aluminum and developed the aluminum welding techniques that made the fast aluminum ferries possible.

In June of 2007, Bay Ship & Yacht completed a $6.5 million refitting of the Marin, including a complete remodeling of the boat. Structural modifications were required for new passenger seating, along with new interior bulkhead linings, carpet, and vinyl flooring, as well as overhead ceilings, ventilation, lighting, and exterior windows, plus new fresh water and sanitary systems, new generators and electrical systems, and a complete repainting of the vessel. New safety features included new fire boundary bulkheads on both decks, and new fire doors.

Panama Canal and Gulf State Port Authority Sign Partnership

The Panama Canal Authority has signed a first-ever partnership agreement with a Gulf State port authority as part of an effort to attract transpacific cargo to an all-water Asia-to-Gulf/East Coast route through an expanded canal which is set for completion in 2014.

Panama Canal Authority (PCA) Administrator/CEO Alberto Alemán Zubieta and Mississippi State Port Authority at Gulfport (MSPA) Executive Director/CEO Donald Allee announced the partnership by signing a five-year memorandum of understanding that will allow for joint marketing ventures, information sharing and technological exchange.

“Today’s MOU signing represents a great opportunity for Panama and Mississippi to build upon our existing offerings and trade relationship through a mutually beneficial alliance,” said PCA's Alemán Zubieta. “One of the primary tenets of the ACP is to continually look for creative approaches to boost trade flows and provide safe, reliable and efficient service to the international maritime community. This agreement is one way that we can help achieve this goal.”

The MSPA is an Enterprise Agency of the State of Mississippi and is responsible for the daily operations of the Port of Gulfport. Part of the mission of both the ACP and the Port is to further increase capacity and foster business development. In 2009, Panama was Mississippi ’s third largest trading partner, in terms of exports, after Canada and Mexico.

“For four decades, the Mississippi State Port Authority has focused on growth prospects in the Western Hemisphere, but the expanded Panama Canal will afford the Port of Gulfport new opportunities to be more competitive in shipping between North America and both Asia and the West Coast of South America,” said MSPA's Allee. “This agreement between the MSPA and the ACP will provide a framework for our two entities to work together to pursue new business opportunities that will result from an expanded Panama Canal.”

The Panama Canal is currently undergoing a $5.25 billion expansion project, which will double the waterway’s capacity and build a new lane of traffic through the construction of a new set of locks. Scheduled for completion in 2014, the expansion will allow more ships and the passage of longer and wider vessels through the Canal.
The canal is one of the major threats to West Coast discretionary cargo – that cargo which does not stay in West Coast port areas and heads mainly via rail to the Midwest or Eastern United States. In the Southern California ports of Long Beach and Los Angeles, nearly 50 percent of all cargo moving through the two ports each year is discretionary.

Vancouver USA Attracts Major Bulk Firm, Finalizes Steel Plant Deal

The Washington state Port of Vancouver has revealed that it is working on a deal with global mining firm BHP Billiton to develop a major new bulk export facility at the port.

The announcement came as Gov. Chris Gregoire visited the port on Wednesday and touted recent efforts by port officials to boost local jobs creation.

Port officials said a tentative agreement with the Melbourne, Australia-based BHP would see the development of a 30-acre to 40-acre potash fertilizer export facility at the port's 218-acre Terminal 5. The port, which has yet to determine the financial aspects of the plan, hopes to have the deal finalized and a lease agreement with BHP in place by early 2012. If completed as expected sometime in 2014, the facility would open in 2015, more than doubling the port's annual cargo tonnage.

During her visit, Gov. Gregoire also praised Tuesday's unanimous decision by the port's Board of Commissioners to sell 20 acres of port property to a Eugene, Ore.-based firm who wants to build a steel fabrication plant on the parcel.

The $5 million sale of surplus port property to private manufacturer Farwest Steel ran counter to normal port policy to lease port parcels, but commissioners said the economy outweighed such concerns. Farwest has said that the proposed plant would initially employ 100 workers with the potential to employ as many as 228 workers with an average salary of just over $40,000, plus benefits.

Farwest plans to spend between $20 million and $30 million to develop the plant.

Farwest officials said the firm plans to take advantage of the port's rail access and the new facility, when completed, is expected to receive 200 to 300 rail cars a year. The proposed 300,000 square foot facility, which in addition to manufacturing would also include distribution and office space, could be built and operational by late 2011 or early 2012.

Under the terms of the deal, the port can purchase back the 20-acre parcel is Farwest does not begin construction of the plant within 12 months, maintain 100 workers at the facility, keep the property in industrial use, or halts activity on the site.

Los Angeles Port to Revisit Battleship Museum Plan

The last of three San Pedro neighborhood councils has unanimously voted to support a historical group's plan to bring the World War II battleship USS Iowa to the Port of Los Angeles.

The San Pedro Northwest Neighborhood Council voted Monday to support the USS Iowa plan being floated by the non-profit Pacific Battleship Center.

The Navy continues to maintain the vessel in an "on hold" status as part of a government program that donates vessels to museum groups.

The USS Iowa, which saw service in World War II, Korea, and served again as part of the US Navy's "big stick" policy from 1984 to 1989, is the last remaining battleship in the world that has not been permanently placed as a floating museum.

Earlier this year, port officials rejected PBC's proposal to bring the battleship to San Pedro because it could complicate and interfere with an ongoing development of the port's public waterfront area. The port also rejected seven port-area locations identified by PBC as possible berths for the nearly 900-foot-long warship.

Port officials at the time also determined that the Navy had essentially promised the battleship to group trying to locate it in Vallejo near San Francisco.

In May, the Navy determined that the Vallejo proposal fell short and reopened bids to obtain the USS Iowa.

Los Angeles port officials, who still express reservations about site and funding issues, said last week they would revisit the proposal and conduct a cost benefit analysis. The analysis is expected to take several months.

PBC in the past has pointed to the nearly $500 million economic boost the city of San Diego has experienced since the aircraft carrier USS Midway opened on the city's waterfront as a floating carrier and naval aviation museum in 2004.

Approval of a 10-year lease from the port is needed before PBC can submit an application to the Navy to receive the USS Iowa. The Navy deadline is November 24.

Washington State Names 10 Finalists in Export-Boosting Fund Competition

The Washington State Community Economic Revitalization Board, or CERB, has selected 10 finalist projects that will compete for $3 million in loans and grants as part of Gov. Christine Gregoire's state export initiative.

Each of the finalists will receive a formal Request for Proposal from the new Export Assistance Program, a key component of the state export-boosting plan that seeks to meet President Barack Obama's call to double national export levels in five years.
All 10 finalists were selected from a field of 31 applicants by a review panel of CERB members and experts in the promotion of state exports. CERB is looking to boost programs that can achieve substantial, profitable results.

Completed RFP's are due by Aug. 23, 2010 and CERB is expected to make a final determination by September 2010.

The 10 projects selected to submit a full proposal for further consideration are:

City of Bellevue – $157,000 – Asia Target Markets Trade Development: Trade Promotion Strategy for China, Korea, and Japan using Search Engine Optimization and Social Media Platforms;

City of Bellevue – $70,000 – Insights on India: Educational Materials and Case Studies on Culture, Communications, Management and Negotiations related to Doing Business from Washington State with Companies in India;

Clark College/Association of Washington Business Institute – $840,750 – Exports Zone Resource Center/Green Building Material Manufacturing Pilot Program;

Highline Community College – $413,360 – T.R.A.D.E. Training-Ready to Advance Development of Exports: A Business Export Readiness Model;

Port of Clarkston – $100,000 – Snake River Boat Builders Export Program;

Tacoma Community College – $298,857 – Technical Assistance with Global Exporting: Creation of a Professional-Level Instructional Certificate Program in Global Exporting;

University of Washington – $1,560,000 – Building Export Competence in Washington State Businesses;

Washington State University/Small Business Development Centers – $1,291,097 – SBDC New-to-Export Initiative;

Western Washington University – $585,726 – Jump Start Washington Exports (JustWaEx);

World Trade Center Tacoma/Tacoma Community College – $248,000 – Export China Initiative.

tags: Washington state, exports