BC Ferries to Institute Fuel Surcharge

By Mark Edward Nero

British Columbia-based BC Ferries says that due to current world fuel market conditions that affect the prices that BC Ferries must pay its diesel fuel suppliers, it will institute a 3.5 percent surcharge on the vast majority of its routes starting Jan. 17.

Two routes are being exempted from the surcharge increase: the Port Hardy-Prince Rupert and Prince Rupert–Haida Gwaii routes.

BC Ferries’ President and CEO Mike Corrigan said market pricing indicates that the price differential will continue throughout 2014.

“We are well aware that implementing a fuel surcharge is unpopular with our customers, and we are doing everything we can to keep our fuel costs as low as possible, including building new ships with LNG capability,” Corrigan said. “We have waited as long as we can to implement a surcharge, however we must act now as it is clear that fuel prices are unlikely to decline in the foreseeable future.”

In November 2013, BC Ferries’ monthly fuel prices reached a new high for the year; $1.09 per liter. The company says it has reduced its fuel consumption by 5.8 million liters since 2004, the cost of fuel in fiscal 2013 was $121 million, up from $50 million in fiscal 2004.

The company maintains that each one-cent per liter increase in the cost of diesel translates into a $1.2 million increase in company expenses.

Since 2004, BC Ferries has had fuel surcharges, fuel rebates and periods of time with neither, all based on the market price of diesel fuel.

BC Ferries is one of the largest ferry operators in the world, providing year-round vehicle and passenger service on 25 routes to 47 terminals, with a fleet of 35 vessels.

Port of Stockton Biorefinery Awarded Expansion Funding

By Mark Edward Nero

Community Fuels, a biofuel producer operating a biorefinery at the Port of Stockton, has been awarded a nearly $5 million grant from the California Energy Commission to support the facility’s expansion.

“Our initial construction was completed in 2008, and it is gratifying to win this sizable grant to contribute to the next phase of expansion, which was contemplated from the early days of the business,” Community Fuels corporate controller William Crooks said.

The biorefinery was specifically designed to allow for multiple phases of expansion, according to Community Fuels co-founder and CEO Lisa Mortenson.

“This important grant will enable our team to expand our production capabilities to meet the anticipated demand for low carbon fuels,” Mortenson said.

Community Fuels’ Port of Stockton biorefinery is one of the largest continuously operating advanced biorefineries in the Western US. Its customers include major oil companies, petroleum refiners and some of the nation’s largest bulk fuel distributors.

Its renewable fuel is used as a lubricity additive for diesel fuel. It also reduces emissions relative to petroleum diesel.

Port of Hueneme Gets $3 Million in Federal Funds

By Mark Edward Nero 

The Port of Hueneme will receive more than $3 million in federal grant funding for the purpose of infrastructure improvements and air emission reductions, the port revealed Dec. 26.

“This program will bring nearly $3 million of added funding, underscoring our significant role within our community and California’s economy,” Board of Harbor Commissioners President Jason Hodge said.

Most of the funding, which comes from a branch of the US Community Development Financial Institutions (CDFI) Fund, is expected to go toward the port’s development of state mandated shoreside power at terminals.

The shoreside power project, which would allow ships to cut their engines while at dock, is expected to cut diesel particulate matter by 92 percent, nitrous oxide by 98 percent, and carbon dioxide by 55 percent, according to the port.

The Port of Hueneme, which is run by the Oxnard Harbor District, is located in Ventura County, California, about 80 miles north of Los Angeles. It moves about $7 billion in goods annually.

In addition to the shoreside power project, funding from the grant is earmarked for support of a nonprofit project called FOOD Share, which has a goal of bringing millions of pounds of fresh, healthy and affordable food to underserved areas in Ventura County.

Keynote Speaker Named for LNG As Fuel Conference

By Mark Edward Nero

Anthony Chiarello, President and CEO of TOTE, is scheduled to provide luncheon remarks at the inaugural Pacific Maritime Magazine/USCG LNG As Fuel Conference, set for Jan. 29, at the Renaissance Seattle Hotel in downtown Seattle.

Chiarello is expected to discuss TOTE's LNG conversion project, and new LNG vessels destined for their Puerto Rican trade.

The event is an opportunity for the maritime industry to hear from the regulatory and policy making community on the anticipated national and local regulatory environment for LNG fueled vessels, LNG fuel bunkering operations and LNG maritime fueling facilities.

Those considering LNG as a fuel source, considering entering the market as a supplier, or are curious about LNG regulatory, policy and technical developments are invited to attend the conference.

The event, which begins with a 7:30 am breakfast, also includes sessions on vessel design, terminal design & operations and LNG operational aspects. In addition to Chiarello, other scheduled speakers include US Coast Guard Capt. Joe Raymond, who’ll give the opening remarks, and closing remarks from John Dwyer, Officer in Charge, Marine Inspection (OCMI) for the Puget Sound sector.

More information about the conference including the full agenda and registration information, can be found at http://seattlelngconf.com/index.php.

Port of Quincy Selling 200 Acres to Microsoft

By Mark Edward Nero

The Port of Quincy, Washington intends to sell about 200 acres of land to tech giant Microsoft for about $11 million, which would be one of the largest land deals in the port’s history.

The Port of Quincy announced in a statement that it would sell 60 acres it owns to Microsoft, plus resell an adjacent 142 acres owned by a private party that was recently annexed and now falls within city limits.

The pending sale, on which the port had been working for nearly a year, is expected to close in late January. Port commissioners announced it during their Dec. 23 meeting, following a public hearing to announce plans to sell the property. The sale will occur in two separate transactions.

First, Microsoft will pay $3.98 million for 60 acres the port already owns; the port is also buying 142 adjacent acres from Donald and Joyce Helsley for $6.63 million, and then selling it to Microsoft for $7.05 million, according to the purchase-and-sale agreement, which commissioners and Microsoft representatives have already signed.

The city of Quincy annexed the Helsley property into the city limits in mid-December.

The Quincy location would be the second for Microsoft, which built its first server farm on 75 acres of port property in 2007. However, the new development would be more than three times larger than the current property Microsoft owns locally.

“The impact to the area will be second-to-none,” port Commissioner Curt Morris said.

Construction on the new site is expected to begin this spring, according to the tech company, with the first phase completed by early 2015.

In most recent years, the port has attracted six server farms, which are digital warehouses that support Internet services. Along with Microsoft have come Yahoo!, Dell, Sabey, Vantage and Intuit.

The port says Quincy has been an attractive option for many of the companies partly because of low electrical costs.

New Assist Tug Docks at Grays Harbor Port

By Mark Edward Nero

The tractor tug Wynema Spirit arrived in late December at the Port of Grays Harbor, operated by Brusco Tug & Barge, the port’s ship-assist service provider.

The Wynema Spirit is a 78-foot by 31-foot ship-assist tug featuring twin Detroit Diesel 1,800 horsepower engines and Ulstein Z-drives. It is one of the more powerful tugboats of its size on the West Coast.

And in a first for Grays Harbor, the Wynema Spirit also has onboard fire-fighting capabilities. Its fire pump is capable of shooting 1,800 gallons of water per minute and up to 50 gallons of fire retardant per minute, according to Brusco.

The tug's azimuthing stern drives allow it to push or pull up to 101,000 pounds forward or backwards, a far greater bollard pull than the traditional tugs currently stationed on the harbor.

“We are extremely excited about the enhanced safety capabilities this brings to Grays Harbor,” port Executive Director Gary Nelson said in a prepared statement. “With vessel traffic projections expected to continue to increase, the Wynema Spirit’s features will be a benefit to our community and our customers.”

A second tractor tug, the Peter J, is being constructed for Brusco in Portland and is expected to join the Wynema Spirit on Grays Harbor in early spring 2014.

“The placement of the Wynema Spirit increases our capabilities on Grays Harbor to handle the larger vessels that are becoming the norm around the world,” vessel Capt. Kevin Campbell said.

WWL Extends Port of Hueneme Contract

By Mark Edward Nero

The Port of Hueneme and Norwegian/Swedish shipping and solutions company Wallenius Wilhelmsen Logistics have agreed to an extension of WWL’s contract that’s expected to keep the company at the port through the end of 2018.

News of the agreement came on the eve of WWL’s 26th anniversary as a tenant business at the Port of Hueneme.

“Wallenius Wilhelmsen Logistics is a vital long term community partner and a significant economic engine,” Harbor Board President Jason Hodge said. “Between the business it brings to the port, revenue contribution and local area workforce employment, WWL is a significant contributor to the port’s surrounding communities.”

Wallenius Wilhelmsen ships first began calling at the Port of Hueneme in late 1987. In 1991, WWL established Pacific Ro-Ro Stevedoring (Pac-Ro) to handle autos arriving at the port and Pacific Vehicle Processors (PVP) as part of a further expansion of the company’s logistics capabilities.

“WWL is pleased to continue its longstanding relationship with the port,” Len Mazzella, WWL America’s Vice President of West Coast Terminal Operations, said. “The Port of Hueneme represents a special part of our history as the first of WWL’s global hub ports offering ocean transportation, marine terminal and vehicle processing services.”