tug boat market report - july 2007 .pdf

Marcon International, Inc. Vessels and Barges for Sale or Charter Worldwide

1 www.marcon.com

Details believed correct, not guaranteed. Offered subject to availability.

P.O. Box 1170, 9 NW Front Street, Suite 201 Coupeville, WA 98239 U.S.A. Telephone (360) 678 8880 Fax (360) 678-8890 E Mail: [email protected] http://www.marcon.com

July 2007

Tug Market Report Following is a breakdown of available anchor handling coastal, ocean and harbor tugs. Separate reports available on inland river pushboats and anchor handling tug supply vessels.

Horsepower

Under

1,000

1,000 –

2,000

2,000 –

3,000

3,000 –

4,000

4,000 –

5,000

5,000 –

6,000

6,000 -

7,000

7,000 –

8,000

8,000 –

9,000

9,000

Plus

Total

Mar 1996 199 163 59 65 18 7 8 7 4 4 550

Jan 1997 178 159 83 65 19 6 9 5 5 2 532

Jan 1998 139 142 72 46 14 9 6 6 5 2 432

Jan 1999 174 143 83 81 35 10 2 5 5 1 536

Jan 2000 161 145 72 62 27 15 3 4 7 2 498

Jan 2001 138 133 81 72 34 20 5 7 8 2 500

Jan 2002 117 134 85 67 38 22 2 5 6 4 480

Jan 2003 152 176 96 71 40 21 2 4 6 5 573

Jan 2004 117 140 77 67 29 21 1 5 12 3 472

Jan 2005 117 141 71 69 28 21 1 11 9 2 470

Jan 2006 97 125 90 66 21 16 5 6 8 1 435

Apr 2006 95 117 95 71 28 10 5 5 6 1 433

Jul 2006 - 88 125 105 77 25 15 5 6 7 1 454

Oct 2006 88 124 108 78 26 12 5 6 8 1 456

Jan 2007 77 114 97 68 25 10 5 4 7 0 407

Apr 2007 69 101 82 61 25 14 4 3 4 0 363

Jul 2007 - Worldwide 81 121 108 57 24 14 5 4 3 1 418

Jul 2007 - U.S. 27 25 20 10 5 3 0 0 1 0 91

Jul 2007 - Foreign 54 96 88 47 19 11 5 4 2 1 327

Avg. Age - Worldwide 1971 1977 1986 1984 1986 1987 1985 1982 1976 1977

Avg. Age - U.S. 1964 1957 1957 1962 1965 1970 - - 1975 -

Avg. Age - Foreign 1976 1983 1993 1989 1992 1992 1985 1982 1976 1977

Charter - Worldwide 31 43 44 21 18 11 2 12 7 3 192

Charter - U.S. 9 4 4 2 5 3 1 8 0 0 36

Charter - Foreign 22 39 40 19 13 8 1 4 7 3 156

Market Overview Of the 7,946 vessels and 2,842 barges that Marcon currently tracks, 3,127 are tugs with 418 currently officially on the market for sale worldwide. Of the tugs for sale, 40.06% of foreign and 96.70% of U.S. tugboats are direct from Owners. 108 or 25.84% of the tugs worldwide, primarily foreign flagged, were built within the last ten years or are newbuilding re-sales or currently under construction – compared to 20.94% at the last report. 54 (12.92%) are over fifty years of age and 4 tugs are 75 years of age or older. 28 have no age listed. As always, in addition to tugs officially on the market for sale or charter, there are always a few which may be developed on a private and confidential basis which are not shown in the tables or graphs. The oldest tug we currently have listed is a 65’ x 17.5’, 900HP single screw tug located in the Great Lakes built of riveted steel in 1903. This is balanced by 33 newbuildings scheduled for delivery 2007-2008.

Marcon International, Inc. Tug Boat Market Report – July 2007

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2

Tugs Listed For Sale by Marcon International, Inc.

0

100

200

300

400

500

600

700Mar-95

Mar-96

Mar-97

Mar-98

Mar-99

Mar-00

Mar-01

Mar-02

Mar-03

Mar-04

Mar-05

Mar-06

Mar-07

Foreign US Total

Conventional single and twin screw tugs are still the most prevalent with 220 twin and 132 single screw listed for sale worldwide. 5 tugs are triple screw, 45 are azimuthing, 13 are Voith Schneider tractor tugs, plus we have 1 quad screw tug. The majority of the tugs Marcon has listed for sale are located in Southeast Asia with 111 tugs, followed by the United States with 85 tugs, 63 in Europe, 48 in the Far East, 36 in the Mid East, 22 in the Mediterranean, 13 in the Caribbean, 12 in Canada, 4 in Latin America, 3 in the South Pacific and 2 each in Africa and by arrangement. CAT diesels still power most of the tugs listed for sale with machinery in 65 or 17% of the tugs Marcon lists for sale, where engine type is known. This is followed by 36 in Cummins, EMD’s in 30, and 22 in General Motors / Detroit Diesels. 12 tugs, generally older U.S. units, are powered by Fairbanks Morse. Yanmar leads foreign manufacturers powering 28 tugs, followed by 23 Niigata, 18 Deutz, and 15 Wartsila powered tugs. 124 tugs are powered by machinery from various other manufacturers.

The final negotiated sales price for all vessels and barges sold in 2006 through Marcon averaged 94.49% of the asking price. The first six months of 2007 sales averaged 95.32%. So far in 2007 Marcon has sold 8 tugs totaling 34,300BHP including two 3,300BHP newbuildings ASDs scheduled for delivery November 2007 and January 2008 respectively. As I write this Tug Market Report, it is interesting to take note not only of all the tugs currently under construction worldwide, but the mergers, acquistions and shifting back and forth of tug fleets – both in the U.S. and abroad.

TUG ENGINE TYPES

Other

33%

Cummins

10%

EMD

8%

Yanmar

8%

Niigata

6%

GM

6%

Deutz

5%

CAT

17%

Fairbanks

Morse

3%Wartsila

4%


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Recent Marcon Tug Sales & Charters Marcon is pleased to announce the short-term charter of the twin screw tug "Coastal Sun" (ex-Dauntless, ex-E.B. McNaughton). She is well known on the U.S. West, Gulf and East Coasts, and will be working in the U.S. Gulf region engaged in ocean towing for the Charterer. Classed ABS+A1 Towing Service, +AMS for Unrestricted Service, she had her last five year Special Survey completed in Summer 2006. Designed by Schuller and Allan of Houston, Texas to tow the 17,999dwt self-discharge urea barge “Hawaii” (which later sold by Marcon to New Zealand), she was built in 1970 by Gulfport Shipbuilding of Orange, TX and underwent major rebuilding in both 2000 and 2006. Dimensions are 122' x 34' x 17.5' depth, drawing about 15' loaded. The vessel is powered by twin Fairbanks-Morse 12-38D8-1/8 main engines totaling 4,400BHP @ 825 rpm. Main engines drive 120" x 108" open wheels on 10.75" shafts via Lufkin 4.48:1 reduction gears. She is also fitted with shaft brakes and we found at sea trials her forward to reverse time to be relatively quick for a direct-reversing tug. She is fitted with a single drum Burrard HJ-

5/GM6-71 diesel powered tow winch with 2,800' of 2.25" wire and packs 126,000 gallons of fuel for long haul towing. The tug remains available for long term charter or outright sale. As brokers working directly with the Owner, we strongly encourage interested parties to contact our office to discuss possible terms, conditions and price or rate ideas. Marcon acted as sole broker in this charter and has also brokered the tug twice previously in its lifetime – once from Hilo Transportation as the “E.B. McNaughton” on a long-term charter towing military cargoes for APL in the Far East and later as the “Dauntless” from Crowley Maritime to East Coast buyers during the mid -1990's.

Dawn Services of Gretna, LA purchased the ocean deck barge “U-738” “from Andrie, Inc. of Muskegon, MI. The barge, to be renamed “Dawn 181”, was built in 1981 by Maxon Marine, Tell City, IN. Principal dimensions are 180’ x 54’ x 12’. Barge has spent most of its life in fresh water, mainly on the Great Lakes where she was employed hauling building materials such as rock, sand and gravel. Dawn Services has taken delivery of the barge on the Upper Mississippi River near LaCrosse, WI where it will be picked up by a towboat and towed south to New Orleans. Dawn intends to make the barge available for charter, possible in support of wreck removal work in the still-battered Gulf Coast. Marcon International acted as sole broker in the sale.

The U.S. flag, 40,000bbl, 6,023dwt single skin ocean tank barge “Nu'uanu” (ex-Trinity, ex-Belcher 33) has been sold to foreign buyers. The 260' x 64' x 19.3' barge was built by Bludworth Shipyard in Houston, Texas in 1976 and fitted with ten cargo tanks, two gear type 11" discharge pumps, one 10" deepwell Byron Jackson pump, and a vapor recovery system. She has double rakes with towing skegs aft and a semi-V bottom with spoon bow. Originally built for caustic soda trade, her last cargoes were black oil. Barge is being taken out of U.S. registry, but will continue in petroleum service. Marcon acted as sole broker and

has sold about 10 vessels and barges to or from Seller over the years. Three ocean deck barges were sold on a private and confidential basis. Marcon acted as sole broker. Several other sales and charters are pending plus a number of other tugs and barges now being inspected.


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New Construction, Shipyard and Conversion News Coming up with statistics on newbuildings in today’s market is like trying to hit a moving target. I had to keep looking carefully at the dates, and almost the times, when I checked the data. According to “Fairplay”, as of 18

th July 2007,

there were 9,717 ships over 299GRT on the World Orderbook. Lloyd’s Register-Fairplay believes that this number could pass 10,000 newbuildings sometime this month, for the first time in recorded history. Of the 9,717 ships recorded on order as of 18

th July, 548 are tugs or “towing / pushing” vessels (up even from 546 the last week of June and

definitely up from 493 in April), 647 are Offshore Supply Vessels and 144 are designated as “Offshore – Other”. As this data only covers those vessels over 299GRT, I would not be surprised to find another 25%, or 130 plus, tugs below 299GRT that are not recorded being built across the world from Argentina to Vietnam. As of the last week in June, of the 546 tugs under construction, Netherlands still lead the order book with a total of 111 (up 9) tugs being built. They are followed by Malaysia at 74 and China (PRC) at 65 tugs under construction; Spain 55; U.S. 48; Turkey 44; Indonesia 34; Singapore 29; Japan and Russia tied with 12; Egypt 11; India 8; Italy 7; Brazil 6; U.A.E. 5; Canada, Germany and the Philippines 4; Iran 2 and Argentina, Norway, Peru, Poland, Ukraine, U.K. and Vietnam 1 each. 84 of the tugs are scheduled for delivery in December 2007 vs. 110 at the time of the last report in April – which seems a bit more realistic. We would not be surprised to see this number slip even further with some end-year 2007 deliveries actually coming on line throughout Spring 2008.

Delivery Dates Worldwide Orderbook

For Tugs Over 299 GRT

0

10

20

30

40

50

60

70

80

90

100

Jan 2007

Mar 2007

May 2007

Jul 2007

Sep 2007

Nov 2007

Jan 2008

Mar 2008

May 2008

Jul 2008

Sep 2008

Nov 2008

Jan 2009

Mar 2009

May 2009

Jul 2009

Sep 2009

Nov 2009

Jan 2010

Mar 2010

May 2010

Jul 2010

Credit: Fairplay New building Online 06/07

Worldwide Tugs On Order Over 299 GRT

0

20

40

60

80

100

120

Netherlands

Malaysia

China (PRC)

Spain

Ukraine

Turkey

Indonesia

Singapore

Japan

Russia

Egypt

India

Italy

Brazil

U.K.

Canada

Chile

Germ

any

Philippines

Iran

Argentina

Norway

Peru

Poland

U.A.E.

U.S.

Vietnam

Credit: Fairplay New buildings Online 06/07


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CAT power by far still lead propulsion packages with engines in 185 tugs followed by Niigatas in 46, Yanmar 33, Cummins 31, Wartsila 30, ABC 15, Mitsubishi 12, EMD and MAN-B&W 11 each, MaK and Bergen 10, MTU 7, Deutz and General Electric 6, General Motors / Detroit Diesel 5, Daihatsu 3, and De Industrie 1.

Summary of Engines Worldwide Tug Orderbook Over 299 GRT

0

20

40

60

80

100

120

140

160

180

200

CAT

Unknown

Niigata

Yanmar

Cummins

Wartsila

ABC

Mitsubishi

EMD

MAN/MAN-B&W

MAK

Bergen

MTU

Deutz

General Electric

GM/DD

Daihatsu

De Industrie

Credit: Fairplay New building Online 06/07

As per our last quarterly market report, most of the tugs over 299GRT being built worldwide are still in the 3 – 4,000HP category with 129 tugs, or 30.4% of those tugs where the horsepower is listed. If I had to take a guess, I would say that over half of the 3 – 4,000HP tugs being built are ASD propulsion. Only 17 tugs are shown under 1,000BHP, but this is most likely because most of the tugs being built in this horsepower range will be under 299GRT. 23.6% under construction are in the 2,000 – 2,999BHP range. The highest horsepower tugs are two 65m, 13,800BHP and two impressive 74,3m, 18,000BHP anchor handling tugs built by Muetzelfeldwerft in Cuxhaven, Germany for Harms Bergung (Owners spec sheets show as 19,000BHP / 220mt pull and 24,500BHP / 280mt pull respectively). Harms 200tbp AHT “Magnus” was delivered in September 2006 and is on contract to Shell U.K. The AHT “Taurus” was delivered in April 2007 and already on contract to BP U.K. Delivery schedules for the 220tbp AHT “Janus” is in September 2007, 220tbp AHT “Ursus” December 2007, 280tbp AHT “Uranus” June 2008, 280tbp AHT “Orcus” August 2008, 100tbp AHT “Centaurus” March 2009 and 100tbp “Pegasus” March 2009.

Summary of Horsepower – Fairplay Worldwide Tug Orderbook Over 299GRT

Under

1,000HP

1,000 –

1,999HP

2,000-

2,999HP

3,000-

3,999HP

4,000-

4,999HP

5,000-

5,999HP

6,000-

6,999HP

7,000-

7,999HP

8,000-

8,999HP

9,000-

9,999HP

Over

10,000HP

Unk. Total

Tugs 17 63 100 129 56 30 8 5 8 1 7 122 546

MarineLog and Colton’s latest breakdown of current commercial shipbuilding contracts shows 62 tugs up to 16,500BHP on order in the U.S., down from 64 at the time of the April Market Report. The majority of tugs on order in the U.S. are shipdocking / terminal escort tugs or ATBs with relatively few conventional ocean or coastal tugs under construction. Marcon expects this level of activity in the U.S. to continue for the near future with sizes and horsepowers likely to increase to over 15,000HP.


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In our last newsletter, Jack Gaston used the word “frenzy” in describing the level of tug building worldwide. While I definitely understand where he is coming from and do not have a better choice for words at the moment, I do not believe that “frenzy” may best describe the tug market. “Merriam-Webster’s On-Line Dictionary” defines “frenzy” as “1 a : a temporary madness b : a violent mental or emotional agitation; 2 : intense usually wild and often disorderly compulsive or agitated activity <a shopping frenzy>”. We are not seeing a “temporary madness”, “violent mental or emotional agitation” (except when an owner finds out the shipyard is delaying his delivery), or a “wild and disorderly compulsive or agitated activity” in ordering tugs. The newbuilding “flurry” we see is due to a number of factors that normally do not all come into play at the same time. One U.S. operator currently building both docking and ATB tugs likened the situation to a “Perfect Storm”. Congested ports worldwide are requiring higher horsepower, more maneuverable docking tugs to handle the increasing size of container ships, car carriers and tankers in sometimes tighter quarters than in the past. New and expanding LNG and oil terminals require specialized escort tugs not available on the second-hand market. New and larger OPA’90 double skin tank barges in the U.S. require higher horsepower tugs to handle them. Finding crews to operate an existing busy fleet, much less the additional vessels required, is becoming a critical issue, so new designs need to be able to operate with much lower manning than the past. If you mix all of this into a pot and stir in an “over-aged” fleet and relatively “inexpensive” worldwide financing you can begin to see less “madness” and more rational reasons for the surge in newbuildings. That is not to say that we could face another downturn in the future – we always seem to be moving between periods of feast or famine and the cycles between the peaks and the valleys seem to be shortening. Just a note of caution - ten years ago this month was start of the so-called financial “Asian Flu”.

On March 12, 2007, Washburn & Doughty Associates, Inc. of East Boothbay, Maine delivered the “Eleanor F. Moran”, a 92’x32’, 5100 HP, Z-Drive Firefighting Tug, to Moran Towing. The vessel is operating at the port of Norfolk, Virginia. “Eleanor F. Moran” is classed ABS �A1 Towing, �AMS, with Escort Notation, Towing Service, �A1 Fire Fighting Vessel, Class 1. The Firefighting 1 classification requires two monitors to each produce 5,280gpm for a distance of 394’ at a height of 148’, as well as a deluge system and the ability to sustain firefighting operations for a minimum of 24 consecutive hours. FiFi 1 equipment includes two CAT 3412C engines rated at 900 HP @ 2,100 RPM and Nijhuis HGTFI-1-250.500 pumps located in the engine room. Pumps supply two FFS model IM/FFS-1200LB electric

FiFi 1 monitors mounted on the aft upper deck. Controls are in the pilothouse and locally at the monitors. The firefighting system also includes a deluge sprinkler system and eight fire stations located on the main deck. Tug is powered by two EMD 12-645F7B main engines that each produce 2,550HP @ 900RPM, completed by Schottel SRP 1215 FP Z-Drives with 2400mm stainless steel props. “Eleanor F. Moran” is equipped with John Deere model 6068TFM76, Tier 2 emissions certified marine engines providing 99KW, 120/208 VAC, 3 phase power. One generator is normally on-line while the other is on standby. In the event that the on-line generator fails, the standby generator will automatically start and go on-line while the failed generator will automatically shut down. A Markey type DEPC-48 electric hawser winch forward and a Markey model CEWC 60 electric stern hawser capstan installed aft. Sides and stern of the main deck are fitted with Duramax 12”x14” rubber “D” fender. The bow utilizes Viking 16” soft loop on the lower portion and Schuyler cylindrical rubber on the upper portion. Accommodations are located in the deckhouse and include a mess/galley, two two-man staterooms, two one-man staterooms, two heads and an assortment of lockers. Boston Towing and Transportation, a division of Reinauer Transportation has been awarded a 20 year contract by Suez Energy N.A. LLC to support their Neptune Offshore LNG Terminal. This contract includes the construction and operation of two additional vessels, a 128’, 5,400HP, controllable pitch azimuthing drive, FiFi 1 Offshore Support Vessel based in Gloucester, Ma, as well as a 101’, 5,400HP, controllable pitch Z Drive, FiFi 1 tug that will operate in the harbor, plus acting as backup to the larger offshore vessel. This will increase BTT's fleet to four tractor tugs in addition to eight other conventional tugs. BTT has contracted with Robert Allan Ltd. of Vancouver B.C. to design both vessels. These tugs will be the first in the U.S. to incorporate controllable pitch propellers with the Z Drives. This gives the vessels an infinite degree of maneuverability, and also allows the FiFi Class One fire pumps to be driven off the main engines, saving weight and cost by eliminating the fire pump engines found on all other FiFi Class 1 vessels. Both tugs will be equipped with bow and stern winches and will be capable of remaining on station throughout all LNG discharge operations. The larger tug will be able to self-load up to three containers for cargo operations, while the smaller tug will be rigged to handle one container.


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Last May, Conrad Industries, Inc. of Morgan City, LA signed six contracts for the construction of seven vessels and a record current backlog of approximately $97.0 million compared to $84.5 million at December 31, 2006. Bay-Houston Towing Co. and Suderman & Young Towing for which Conrad is currently constructing two tugs at their Orange Shipbuilding facility, have exercised options for two additional 98’, Z-Tech 7500 Class Terminal/Escort Tugs, sister vessels for the others under construction. The other contracts included two additional 214’x42’x12’ 8,500 bbl. double skin tank barges Settoon Towing, one 120’x30’x7’ deck barge, one 50’x30’x7’ deck barge and one 100’x30’x7’ spud barge for two other customers. Johnny Conrad, President and CEO stated, “The Bay-Houston Towing and Suderman & Young Towing tugs will follow in sequence after the other two tugs under construction at Orange Shipbuilding, with all four vessels scheduled to be delivered between 2008 and 2009. We are very appreciative of the new business we have been awarded, in addition to the options that were exercised, another vote of confidence in our Company’s ability.”

In July, Suderman & Young Towing completed sea-trials of their new Z-Tech tug “Thor”. Tug is reportedly the first of its kind in the western hemisphere, with only four other Z-Tech tugs to-date operating in the world. With 6,300HP there is virtually identical bollard pull and speed performance ahead and astern. The stern is more rounded and has a strong sheer, to ensure good sea-keeping and sea-going capabilities when operating in tractor mode. The deep underwater hull provides the excellent stability

proven in other Robert Allan designs. Unlike previous tug designs the wheelhouse is more centrally located for greater visibility and clearance with the ship in tow and the main working forward deck is larger and flatter than usual for increased crew safety. The Z-Tech concept was originally designed for and is being promoted by PSA Marine of Singapore. This is a good example of trends in tug design over the years – from steam tug to Z-Tech. In the late 1800’s Charles Suderman and Ben Dolson began stevedoring operations in Galveston. With the purchase of the first steam tug “Louise”, Suderman and Dolson began to shift deck barges that were used extensively at the time to handle cargo. As the need for towing services grew, the “Louise” soon began assisting ships in Galveston harbor. In 1916, John Young purchased Dolson’s portion of the company, adding six tugs to the fleet including the first “modern” diesel tug vessel to operate on the Texas Gulf Coast. In 2001, S&Y merged and combined fleets with Intracoastal Towing and Transportation Company. Boston’s newest and most powerful harbor tug has been christened, crewed up and has started serving customers of Constellation Maritime. Tug “Leo” is a 78’, 5,000HP Dolphin-Class vessel built at Foss Rainier Shipyard in Oregon. The brand new ASD tug arrived in Boston on March 7 along with the “Orion” (ex-America), a 3,000HP, 95’ x 32’ Voith-tractor built in 1982 by Mid Coast Marine and formerly in service for Foss on the Columbia River. “These tugs are extremely well suited for the Boston Harbor not only because of their horsepower but because of their maneuverability,” said Marc Villa, Constellation president. “We operate in some very confined areas, and tractors will make a huge

difference for us.” Constellation deck and engine room personnel have been working with Foss trainers in Boston and Long Beach, Calif., to become familiar with operation and maintenance of the vessels. Massachusetts State Commissioned Harbor Pilots also have joined training sessions to learn how to best use the tugs. “A lot of people have a tendency to use tractors like conventional tugs, and learning how to operate them effectively is a trick that requires training,” Villa said. “We have expert people in the Foss organization who can help us with that.” Constellation was acquired last year by Foss Maritime.


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On 19th May 2007, representatives of Marcon International attended the launching of the new 128’ x 35’ twin screw Sause Bros. 3,750BHP tug “Cochise” at J.M. Martinac Shipbuilding Corp. in Tacoma, WA. The vessel is scheduled to be completed by mid-summer 2007. Her sister-tug “Mikiona” departed from Tacoma on 9

th February for Coos Bay, OR

and then immediately onto their first run with the 87,000bbl, 380’ x 76’ x 31.32’ double skin ocean tank barge “Monterey Bay” which was built in 2006 by Gunderson Marine of Portland, OR. San Francisco was their first stop for a load of cargo. The “Monterey Bay” and “Mikiona” are the first new tug and barge combo to be put into service together in Sause Bros. history. According to Capt. Rusty Green, “She sails like a dream.” “Monterey Bay” was the sixth in a series of seven “Bay” class double hull tank barges and the seventh hull built and

awaiting outfitting at Owner’s shipyard in Coos Bay, OR. Three of the barges are for crude and black oils and have two huge pumps. Four are for clean products such as gasoline, lube oil, diesel, jet fuel and Av-gas. The clean barges have four pumps and a complicated system of piping and block valves to allow many different cargoes to be hauled at once. The double-hulled tanks are constructed with ribs and floor longitudinals below the tank bottoms to give the cargo tanks a smooth floor. The tanks are sloped 10” to the center of the barge and the 10” suction pipes are located in slumps, or wells that extend below the tank floor that allow the tanks to be pumped to nearly the last drop. The clean oil barges have small vacuum pipes to each

sump, pump, well and pipe system that allow the systems to be completely stripped before changing the type of cargo to be hauled. Work on Sause’s 120’ x 34’ “Tecumseh” has been progressing slowly following its arrival in Coos Bay from the Gulf of Mexico. With work on “Mikiona” and “Monterey Bay” completed, the 120’, 3,500HP “Tecumseh” (ex-El Gato Grande, ex-Gulf Thor) moved to center stage and was scheduled to enter service the latter part of May. Structural work to meet ABS standards began while the vessel was in the Gulf. A completely refurbished Markey tow winch replaced the tug’s existing unit, and a new winch drive engine was installed in the tug’s fidley to power the hydraulic winch. Work on the controllable pitch propeller systems, B&W Alpha 12V23LVO main engines and reductions gears is complete. …… Sause Bros. has also committed to the construction of a 438’ x 105’ x 25’ deck cargo barge for the Hawaiian trade. Model testing for the new-low prismatic hull design was carried out in Sweden in early 2006. The barge is designed to carry 17,000 deadweight tons of deck cargo to the Islands at 12 knots, towed behind a 5,000HP tug. The Manitowoc Company of Manitowoc, Wis reported outstanding results for quarter end March 31, 2007, setting records again for net sales, earnings per share and backlog. Net sales totaled $862.1 million, an increase of 36% from first quarter of 2006. "Building on our outstanding performance in 2006, our first-quarter 2007 results significantly eclipsed those from the first-quarter of 2006 and are solidly positioning us for yet another stellar year," said Terry D. Growcock, Manitowoc's chairman and CEO. "Driven primarily by our industry-leading Crane segment, we are well on the way to exceeding our 2007 target of delivering a 50% increase in Economic Value-Added(R) and our 2007 sales and profit objectives in all three segments. Our Crane segment continues to build momentum, as witnessed by the growth in both backlog and operating margin," Growcock said. "…. The fine performance in our Marine segment is being overshadowed by larger government contract issues, yet this group is far more than a single project. Its strong backlog of repeat projects and new business prospects, in both the military and commercial sectors, points toward several years of solid contributions."

Revenues for the Marine segment during first quarter 2007 rose 33% to $82.3 million from $61.9 million the first quarter 2006. Operating earnings for the Marine segment were $5.5 million the first quarter 2007 compared to $3.7 million the first quarter of 2006. The improved operating margin was driven primarily by improved contributions from Manitowoc’s backlog of commercial projects and a strong winter repair season.


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Damen Shipyards has signed a contract with ASTINAVE (Ecuador) for the delivery of a complete material package of a Damen Stan Tug 1405 to be assembled at their premises in Guayaquil. The tugboat is destined for SUINSA to assist coastal tankers at their berthing station. The vessel will enter in service in August 2008…..…In June Allan R. Singh Contractors of Trinidad and Tobago signed a contract for a Damen Stan Tug 2208 to be delivered in spring 2008. Allan R. Singh Contactors is the first privately owned operator in Trinidad to decide for new building. Until now operators in Trinidad were only making use of second hand equipment. This next Damen Stan Tug 2208 will be the third vessel of this design to be delivered to the Island after the earlier two deliveries to state-owned National

Energy Corporation, the “NEC Pride” (May 2007) and “NEC Spirit” (July 2007)…..…Bourbon Offshore and Damen Shipyards Gorinchem signed a contract for the construction and delivery of four Damen ASD Tugs 3213. This very powerful ASD Tug is the latest development from Damen and the top of the range with a bollard of in excess of 83 metric tons. The tugs are well equipped and designed for both offshore and terminal operations including fire-fighting equipment based on Fi-Fi I requirements. The delivery of the first two vessels is scheduled for July 2009 and the remaining two vessels will be delivered in December 2009…..…On Friday June 15

th in the tug base of Svitzer Australia the

name giving of two new Damen built ASD Tugs 2411 took place. The two tugs "Svitzer Colmslie" and "Svitzer Newstead". had just recently arrived safely after their journey from Haiphong, Vietnam. The names of both tugs originate from areas in and around Brisbane. These two tugs are the first new built tugs ever delivered by Damen to Svitzer. On June 6 a cooperation agreement was signed by and between Damen Shipyards Gorinchem and Song Thu Company in Danang, Vietnam. The agreement comprises an intense form of cooperation between the two companies for the next five years. Damen guarantees Song Thu sufficient orders to utilize the new building capacity of Song Thu Company to the maximum level, while taking into consideration domestic orders for Song Thu. Both companies have a successful history of cooperation due to the joint building of a 46 m Salvage Tug for the Vietnam Marine Police. Several ships are currently under construction at the yard, such as four Damen ASD Tugs 2411 for export and 1 Damen Multi Purpose Vessel 5212 for domestic use…..… Smit and Damen Shipyards Gorinchem signed a contract for four Damen ASD Tugs 3213. The 80 tons bollard pull ASD Tug 3213 is a new type harbor towage and terminal tug and was recently developed by Damen and Smit. Delivery of the first two vessels is scheduled for mid July 2009. The remaining two vessels will be delivered in December 2009. The new tugs are the first in a new standard series of 80-100 tons bollard pull for SMIT…..…Another recent newbuilding from Damen is the “Marineco Toomai” built for MarineCo UK Ltd. of Edinburgh. This 26m x 9m x 3.60m depth / 2.5m draft shallow draft multi-purpose tug is powered by two CAT 3508

1,200HP diesels providing a bollard pull of approx. 30 tonnes with twin screws in Optima kort nozzles. She is also fitted with a 160HP bow thruster, deck crane, 40 tonne deck winch with warping head, stern anchor handling roller, fuel & water transfer and a full remote control bridge with fly bridge which offers the Captain far greater visibility and enhanced handling of the vessel. Accommodation is provided for 8 persons in five cabins with the Captain and Chief Engineer both having single cabins whilst all of the accommodation will have natural light throughout. The bridge will have a "Captain remote control system" to enable the Captain to pilot the vessel from any part of the bridge. The vessel will be fitted with a larger hydraulic system than previous models which will enhance the bow thruster and winch

capability. There will also be two manual towing pins on the stern with the addition of a gob eye and button rollers. Tank capacities include 98.5m3 transferable fuel oil, 54.6m3 transferable fresh water.


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Irving Shipbuilding Inc. of Canada, announced a contract to build three escort tugs for Atlantic Reyser for LNG terminal ops. Like all Irving’s previous tugs, the new vessels will be based upon the Robert Allan hull. Irving’s East Isle Shipyard previously built a number of tugs for escort operations in Saint John, NB and Caucedo LNG terminal in the Dominican Republic. More recently, experience in operation and design has been gained in escort work in Halifax harbor, handling post Panamax containerships. This experience culminated in the new escort variant of the popular design of which 29 have now been ordered. From an operational standpoint, these reverse tractor tugs are designed specifically for LNG escort and ship assist. Superstructure has been moved even further aft to allow for optimal positioning of the forward winch for indirect towing. Forward deck sports a frequency controlled high tension render-recover winch with 142mt line pull, 222mt brake. Forward staple is lined with stainless steel and a stainless steel bulwark top extends around the bow area. Measuring 30.8m x 11.14m x 5.5m draft, the LR-class tugs will be powered by CAT 3516B-HD series II main engines developing 1,999 kW each at 1,600 rpm, coupled to Rolls-Royce Aquamaster US255 Z drives with 2.8m diameter fixed pitch props. A bollard pull of about 72 tonnes is expected. Bow is heavily fendered by three rows of cylindrical fenders, complemented by “D” fenders aft and tires along the sides. Below the waterline, a large “escort” keel forward provides effective indirect towing capability and enhanced course keeping, especially when running astern. Auxiliary power will be provided by two 250kW / CAT C9 gensets. For emergency towing over the stern, a 75mt tow hook is fitted. Two remote-controlled FiFi monitors capable of a discharge rate of 1,200 m3/h will be fitted forward of the house. Monitors will be supplied by a pump of 2,700 m3/h capacity, driven off the port main engine. FiFi is further enhanced by a water curtain of 300m3/hr and a deck manifold for supplying a shore based installations. Comfortable accommodations for up to 5 will be provided, and the new tugs will be designed for exceptionally low noise levels, using features developed in Irving’s recent series built for Nordane Shipping. All three tugs are to delivered by August 2008.

Shortly after successfully completing the first winter’s operation of their recent newbuild “Ocean K. Rusby”, Groupe Ocean of Quebec returned to Irving for a second Ice 1A tug. “Ocean Raymond Lemay” is designed to operate in the heavy ice conditions of the St. Lawrence River, providing ship assist, escort and towing services. Irving worked closely with Groupe Ocean and supplier of the consoles and electronics package to modify the bridge and aft end design to enhance side and rear visibility using the same Virtual Reality technology the yard used to develop their OPTI-Max harbor tug design. Measuring 30.8m x 11.14m x 5.5m draft, the LR-class tug is powered by CAT 3516B HD diesels, each developing 2,500hp at 1,600 rpm. Rolls-Royce Aquamaster US255 Z drives with 2.4m CP props are installed, providing a maximum bollard pull of almost 60mt. Auxiliary power is provided by two CAT C9 gensets developing 165kW each. For towing and anchor-handling, a set of

200mm tow pins is installed in conjunction with a 150mt aft tow winch and stern roller. The frequency-controlled aft winch is single drum complete with spooling gear, capable of storing 762m 51mm wire. The 150mt Ridderinkhof electric line handling winch on the raised foredeck is capable of storing 400’ of 3 ¼ Spectra line. A slightly raised foc’stle provides enhanced performance in a swell without compromising ability to get close under overhanging bows & sterns and a curved deck edge allows the tug to be easily driven away

from a ship’s side. Comfortable accommodations for 7 are provided, with 1 single cabin and 3 double cabins. Two remote-controlled FiFi monitors capable of a discharge of 1,200 m3/h each are fitted aft and above the wheelhouse. Monitors are supplied by a dedicated pump of 2,700 m3/h capacity, driven off the front end of the port main engine. A water curtain of 300m3/hr is also supplied, or alternatively foam can also be supplied at 300m3/hr. Below the waterline, tug is fitted with a large “escort” keel forward to provide effective indirect towing capability and enhance course keeping, especially when running astern. Bilge keels have also been fitted for improved ship motions. The forward end of the skeg has been fitted with an ice-stop, designed to prevent the hull riding up onto the ice. The aft end is fitted with two ice diverters to prevent large pieces of ice from damaging the z drives.


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Tugz International, owner of the “Z Class”, 4,000hp multipurpose U.S. flag reverse tractor tugs designed by Jensen Maritime Consultants, Seattle, is introducing a new Jensen designed tug to fill the niche between the 2,000 - 3,000 hp tug market for harbor work, fireboats, and construction operations as well as for coastal towing. The newly designed “Handysize” Class describes the new tug design as just the right size, just the right power, environmentally sound, fuel efficient and versatile enough to accomplish most tug jobs at the lowest operating cost, “when bigger is just too big, and smaller is more than enough.” This series of tugs will be built at Tugz’s affiliate Great Lakes Shipyard, Cleveland, Ohio. “There is a real market need and we have had serious inquiries”, said Ronald C. Rasmus, President of the Group. “Studies have shown that there are more than 1,500 U.S. flag tugs over 30 years old in the less than 3,000 HP range that will need to be replaced over the next few years. Owners of this handysize range are looking for a low cost, fuel efficient, versatile workhorse, and our new “Handysize” Class tug design just fits the need.” Two tugs are now under construction with deliveries November 2007 and April 2008. The tugs are available as ASDs or as nozzled twin-screw conventional models for those operators whose work application makes the Z-drive unnecessary and too expensive. Some operators believe that the conventional tugs will work better in ice and in debris-filled, low, and muddy waters. The new tug has some very interesting features in its design to minimize operating costs. Using an ABS “ice-class” hull standard for sturdiness and icebreaking, if applicable, the increased 5/8ths inch steel thickness and tighter framing in the bow and stern ensures an increase in the useful life of the tug beyond the normal or statutory life. The tug meets all USCG regulatory requirements and built to Loadline and ABS standards. Because the tug is less than 79’ and less than 100 gross tons though, Loadline Certificate is not required; only one Licensed Operator is required – other crewing at Owner’s discretion; crew not required to hold AB or OS ratings; and Merchant Mariner Documents are not required for crew other than for Licensed Operator. The tug is designed for two man operation with bridge control of engine room and deck winches; High fuel efficiency; Smaller environmental footprint and meeting or exceeding EPA Tier II emissions regulations. Measuring 74.0’ (22.6m) in length with molded beam of 30.0’ (9.1m) and a maximum draft of 11.0’(3.3m) the tug attains a bollard pull of 36 short tons (72,000 pounds est.) and a free running speed of 12.0 knots from a pair of Cummins QSK 38 diesels each developing 1,400 hp at 1,800 revolutions/ minute. These turn 72.0” diameter Kaplan type propellers inside Type 37 stainless steel lined nozzles and Twin Disk MG 540 with 5.17:1 ratios. A pair of 65kW generator sets provides the electrical needs while the standard 2,000 gpm fire pumps, which feeds a single forward deckhouse-mounted monitor, is driven off one of the generators. Additional fire monitors and foam capability for a fireboat version of the tug are available as an option. Keel coolers provide a saltwater-free engine room. Ahead of a well insulated forward bulkhead are two twin-bunk crew cabins and a laundry. On the main deck, a single cabin for the captain is located on the starboard side of the deckhouse opposite the mess room, and a toilet/shower room is located

portside aft. All the accommodations are air conditioned. There is a full walk-around bridge deck with steps up from main deck, fore and aft. One central door aft and internal staircase gives access to the traditionally laid out wheelhouse. Eleven windows and three lower windows forward provide 360° view. The exhaust casings are cut off a waist height to ensure good visibility. Amongst an impressive array of wheelhouse electronics is a pair of radar units, a GPS, autopilot, compass, and an optional Techsol engine room monitoring and alarm system. A unique feature of the design is that the steel structure and deck have been strengthened to accommodate a range of customer requirements which can be installed at the time of construction or later, without need of performing major steel work. These options include a forward hawser winch, an aft towing winch, and a knuckle boom crane. The tug is designed for seven-day endurance for coastal service and the tank capacities include 21,600 gallons of fuel and 1,800 gallons of potable water.


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As of January 2007 all new-built vessels for service in US waters are required to be powered with engines that meet US Environmental Protection Agency’s Tier 2 emission standards. It has been a significant engineering and logistics challenge for the nation’s engine manufacturers to meet the deadline. Although Tier 2 is a requirement for all new vessels, at Olympic Tug and Barge, owners, Harley Marine Services, are installing a pair of Tier 2 compliant engines in the 1970 Halter built tug “Lela Joy” (ex-Janet R, Willamette Champion, Modoc). A pair of aging two-cycle engines were pulled from the 85’ tug and replaced with Cummins new QSK38-M engines. The new engines each produce 1,200HP continuous duty at 1,800 RPM. The upgrade ensures not only Tier 2 emissions compliance but also quieter operation, better fuel economy, smoother power delivery and better idle stability. The modular common rail fuel

system features a simplified design that provides constant high injection pressure regardless of engine speed or load conditions. Benefits include significantly reduced noise and vibration for quiet operation, idle stability and improved low-end torque. Among other design improvements of the new engines, the triple-wall water-cooled exhaust manifold features an air gap between exhaust gas and jacket water to maintain thermal efficiency while cooling engine surface temperatures. Design is fabricated single piece construction that eliminates potential exhaust leakage. In addition to the re-power, “Lela Joy” underwent a major refit at Portland’s Diversified Marine Inc. This included extensive steel replacement and other upgrades.

Multraship of Terneuzen, Netherlands has bought two newbuilding ASD tugs for delivery October 2007 and April 2008. The two multi-purpose tugs will be rated around 70 tonne bollard pull and are currently under construction at the Vega Denizcilik Sanayi Ve Tic. Ltd. shipyard in Turkey. “Demand for reliable towage services in the North Sea is strong and we are pleased that we will be able to expand our fleet of modern tugs by buying these two new vessels for early delivery,” says Leendert Muller, managing director. “We also have two Carrousel tugs building for us in Malaysia, set for 2008/9 delivery, which will together with these two new multi purpose vessels give our River Scheldt-based fleet a substantial boost to capacity. It is very important for us to be able to deploy good fire fighting, salvage and oil pollution combating capacity rapidly in the busy Scheldt area.” Both tugs will be 35.7m loa, 12m beam and will have a multi-role capability for harbor, escort and sea towage and also full firefighting and salvage roles. They will have FF1 fire fighting, Escort towage and Oil recovery notations. The first vessel will have two Caterpillar Engines, the second two ABC engines, delivering around 70 tonnes bollard pull through Z drive CP propellers. The vessels will have a double winch aft and a single winch forward and a free running speed of around 13 knots.

PKL AS of Tallin, operating tugs in both Estonia and Latvia, is taking delivery of their new 63mt bollard pull ASD tug “Castor” in the Ukraine in September of this year. The 31.5m x 12.1m x 5.63m escort tug is powered by a pair of CAT 3516B diesels with Aquamaster CPP azimuthing props aft and fitted with fore and aft winches, workboat and crane. “Castor” is a sister tug to PKL’s “Eridan” which was built in 2004. PKL was founded in 1992 in Tallinn, Estonia after 19 former harbor fleet vessels were chartered from the Port of Tallinn. Delivery of their new tug “Castor” is part of their first modernization and renewal program started in 1999 with the purchase of a tractor tug. Since then, nine new ASD tugs from 35 – 63 tons bollard pull have been delivered to PKL as the oldest tugs were replaced with new.


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ASL Marine Holdings Ltd. of Singapore has secured new shipbuilding contracts worth S$102 million from European clients. The contracts are for one 90m DP-2 Subsea Operation Vessel, two Rotor Tugs and two Self-propelled Split Hopper Barges. The two Rotor Tugs are repeat orders from a customer. The Group’s shipbuilding order book stood at S$382 million as at 31 December 2006. Including these new contracts, the Group has subsequently won an aggregate S$382 million in shipbuilding contracts. The Subsea Operation Vessel and the two Self-propelled Split Hopper Barges are expected to be completed in 2009. The two Rotor Tugs are expected to be completed in 2010. Kooren Shipbuilding and Trading B.V. sold two of their 28.3m x 12m, RT-80r class to Unterweser Reederei GmbH of Bremen, Germany. These Rotor® tugs are to be built at ASL Shipyard Pte in Singapore. The tugs will have a bollard pull capacity of 80 metric tons each. The high bollard pull, exceptional maneuvering capabilities and comparable low draft, has been a decisive factor of placing this order with KST. Delivery will be between December 2008 and February 2009. Unterweser Reederei GmbH also has the option for 1 + 1 RT-80r class additional tug(s) during the building period. Both tugs will be powered by three ABC –8 DZC engines of min. 1,700 kW each at 1,000 rpm. The three azimuth thrusters will be Schottel SRP 1215 CP type in 19A nozzles. The tugs will be classed by Germanischer Lloyd and will fly the German Flag, All tugs will be equipped with fire fighting, foam and spray capabilities in line with the required FF1 notation.

Hamburg’s Fairplay Towage is naming its latest newbuilding “Fairplay III”. In Fairplay’s 102 years of history this name is appearing for the fourth time. The first “Fairplay III” was built for Carl Tiedemann, Hamburg in 1897, taken over by Fairplay in the early 1900reds and scrapped in 1953. The second tug with this name was built for Hapag in 1900, taken over and renamed by Fairplay in 1951 and finally sold for scrap in 1963 The third “Fairplay III” was built by Theodor Buschmann (still a 100% Fairplay subsidiary) in 1963. She belonged to a series of 6 sister-tugs. In 2002 this last “Fairplay III” was sold. This latest addition has, however, little in common with predecessors. It is the strongest Fairplay tug and built according to the latest standards by Astilleros Armon in Navia, Spain. With

an LOA of 25m and width of 11,2m “Fairplay III” and sister “Fairplay I”, presently under construction, will primarily serve in the Ports of Rotterdam resp. Hamburg. Two 8-cylinder ABC 8MDZC 4-stroke engines with each 1850KW at 1000 RPM generate power for Schottel SRP1515-rudder-props, producing a bollard pull of more than 70 tons and a free-running speed of 12kn. Two Scania 6-cylinder-diesels with a output of each 196kw generate required on-board electricity. A Brusselles double-drum winch produces a breakforce of 1,800kN. Ships’ assistances will be performed primarily via the bow (Push & Pull). One of the double drums will carry a 90m Dyneema-Line whereas the other will carry conventional towing gear (52mm wires) either for port operation or sea-towages. For towage-jobs over the stern the tow-wire is guided through a tunnel below the accommodation to the aft-deck. Extensive fendering around the entire ship protects the hull and especially designed for the “Push & Pull-Mode”. Designed for a 3-man-crew the tugs each count a total of 6 bunks. Tugs are built according under Bureau Veritas +Hull +Mach Tug unrestricted service +AUT UMS. The sister vessel “Fairplay I” will be delivered to Fairplay in September. URS Antwerp, in which Fairplay holds a 50% participation, will receive two identical sisters for the Port of Zeebrugge. Fairplay still has two other tugs with Armon on order. Delivery is scheduled for summer and winter 2008. These tugs will develop a bollard pull of over 80 tons and will primarily be employed in offshore-services. Fairplay Towage operates a fleet of harbor and offshore tugs, stationed in Hamburg, Rotterdam and the German Baltic. Two deepsea tugs are employed in worldwide trade. Further Fairplay operates through its subsidiary BBB Schlepp-und Hafendienst in Rostock a fleet of work-pontoons. With 50% participation in URS Antwerp and take-over of the Polish “Project Zegluga”, based in Szczecin, both in 2004, the activity-portfolio of Fairplay Towage has been steadily enlarged over the last years.


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Representatives of Marcon attended the launching of the 6,850BHP ASD tanker escort / ship assist tug “Delta Billie” at Nichols Bros. Boat Builders in Freeland, WA (15 minutes from our office) earlier this month. The 100’ x 40’ x 16’ ASD tug, along with a sister tug still under construction, is being built for BayDelta Maritime of San Francisco. Tugs designed by Jensen Marine of Seattle, WA and powered by a pair of Tier 1 compliant CAT 3516C diesels driving Rolls Royce US255 fixed pitch drives. Increased horsepower is complimented by a heavy skeg for ship assist / escort work in the “indirect” mode. Firefighting is provided by two 900gpm fire pumps and monitors. Markey hawser winches are fitted forward with JonRie tow

winches aft for high-seas towing. Generators are two 215kW / CAT C-9 and one 27kW standby/harbor unit. Although normal harbor crew will consist of four, accommodations are provided for a total of ten persons for coastal runs. Two similar tugs are also on order by Minette Bay Shipdocking of Prince Rupert, British Columbia and expected to be delivered around the end of this or beginning of next year. The Minette Bay tugs are also powered by CAT 3516Cs, but with Niigata ZP-41 drives instead of Rolls-Royce drives and are fitted with a full ABS FiFi 1 firefighting system with two 6,000gpm pumps and a deluge system

Latest breakdown of Current Commercial Shipbldg. Contracts from MarineLog and Colton Co.

Shipbuilder Location Type of Vessel Customer

Yard # or

Contract

Status

Name Description

Contract

Price

($mm)

Delivery

Bender Shipbuilding Mobile AL Tug OSG America 7800 12,000 hp 2007





Bender Shipbuilding Mobile AL Tug OSG America Firm 12,000 hp 2009



Chesapeake Shipblding Salisbury MD Tug Vane Brothers Firm 3,000-hp

Chesapeake Shipblding Salisbury MD Tug Vane Brothers Firm 3,000-hp

Chiasson Welding Larose LA Tug Brice Construction Firm 84-ft. 2007

Colle Towing Pascagoula MS Tug Colle Towing Firm John Colle 78 ft., 4,000-hp 2007

Eastern Shipbuilding Panama City FL AHT Harvey Gulf Marine 883 Harvey War Horse II 16,500-hp Nov-07

Eastern Shipbuilding Panama City FL Tug Seabulk International 894 Buccaneer 96 ft., 5,000 hp Sep-07

Eastern Shipbuilding Panama City FL Tug E. N. Bisso & Son Firm Josephine Ann 96 ft., 4,000 hp Oct-07

Eastern Shipbuilding Panama City FL Tug McAllister Bros. Firm Andrew McAllister 6,000 hp Jan-08

Eastern Shipbuilding Panama City FL Tug McAllister Bros. Firm Rosemary McAllister 6,000 hp May-08

Eastern Shipbuilding Panama City FL ATB Tug U. S. Shipping Firm 3Q 2008

Eastern Shipbuilding Panama City FL ATB Tug U. S. Shipping Firm 4Q 2008

Erie Shipbuilding Erie PA Icebreaking Tug Undisclosed 130 ft.



Foss Shipyards Seattle WA Tug AMNAV Firm Freedom 78 ft., 5,080-hp Sep-07

Foss Shipyards Seattle WA Tug AMNAV Firm America 78 ft., 5,080-hp Jan-08

Gladding-Hearn Sbldg. Somerset MA Tug Wilmington Tug Firm Madeline 80-ft., 4720-bhp Jan-08

Lockport Fabrication Lockport LA Tug Russell Plaisance 5 84-ft. 2007

Main Iron Works Houma LA Tug Bay-Houston Towing 423 Wesley A 98 ft., 6,300 hp 2007

Main Iron Works Houma LA Tug Bisso Towboat Firm 100 ft., 4,300 hp Late 2007

Main Iron Works Houma LA Tug Harbor Docking Firm 6,140 hp 2008

Main Iron Works Houma LA Tug Harbor Docking Firm 6,140 hp 2008

Martinac Shipbuilding Tacoma WA Tug Sause Bros. Firm Cochise 3,750-hp Mar-07

Martinac Shipbuilding Tacoma WA Tug Signet Maritime Firm Signet America 6,220-hp 9.0 Nov-07

Martinac Shipbuilding Tacoma WA Tug Signet Maritime Firm Signet Stars & Stripes 6,220-hp 9.0 Feb-08

Nichols Bros. Freeland WA Tug Bay Delta Marine Firm Delta Billie 100 ft. Jun-07

Nichols Bros. Freeland WA Tug Bay Delta Marine Firm Delta Cathryn 100 ft. Sep-07


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Nichols Bros. Freeland WA Tug Minette Bay 152 100 ft. Dec-07

Orange Shipbuilding Orange TX Escort Tug Bay-Houston Towing 391 98-ft., 7,500 hp 2008

Orange Shipbuilding Orange TX Escort Tug Suderman & Young 392 98-ft., 7,500 hp 2008

Orange Shipbuilding Orange TX Escort Tug Bay-Houston Towing 98-ft., 7,500 hp 2009

Orange Shipbuilding Orange TX Escort Tug Suderman & Young 98-ft., 7,500 hp 2009

Patti Shipyard Pensacola FL Tug Express Marine 167 102 ft., 3,000-hp Aug-07

Rodriguez Shipbuilding Bayou La Batre Tug Garber Bros. Towing 250 75 ft. Jul-07

Rodriguez Shipbuilding Bayou La Batre Tug Dann Marine Towing 251 Atlantic Coast 3,000 hp Jul-07

Rodriguez Shipbuilding Bayou La Batre Tug B. & B. Marine 252 66 ft. Sep-07

Rodriguez Shipbuilding Bayou La Batre Tug Branko, Inc. 253 70 ft. Sep-07

Thoma-Sea Shipbuilders Lockport LA Tug Penn Maritime Firm 116-ft., 4,000-hp Dec-07

VT Halter Marine Pascagoula MS Tug Crowley Marine Firm Resolve 9,280 hp 1H 2007

VT Halter Marine Pascagoula MS Tug Crowley Marine Firm Commitment 9,280 hp 2H 2007

VT Halter Marine Pascagoula MS Tug Crowley Marine Firm Courage 9,280 hp 1H 2008

VT Halter Marine Pascagoula MS Tug Crowley Marine Firm Integrity 9,280 hp 2H 2008

VT Halter Marine Pascagoula MS Tug Crowley Marine Firm Pride 9,280 hp 1H 2009

VT Halter Marine Pascagoula MS Tug Crowley Marine Firm Achievement 9,280 hp 2H 2009

VT Halter Marine Pascagoula MS Tug Crowley Marine Firm Innovation 9,280 hp 1H 2010

VT Halter Marine Pascagoula MS Tug Crowley Marine Firm Vision 9,280 hp 2H 2010

Washburn & Doughty East Boothbay ME ATB Tug Moran Towing Firm Patti R. Moran 5,100 hp May-08

Washburn & Doughty East Boothbay ME Tug Moran Towing Firm 92 ft., 5,100 hp Mar-08

Washburn & Doughty East Boothbay ME Tug Moran Towing Firm 92 ft., 5,100 hp Jun-08

Washburn & Doughty East Boothbay ME Tug Moran Towing Firm 92 ft., 5,100 hp Sep-08

Washburn & Doughty East Boothbay ME Tug Moran Towing Firm 92 ft., 5,100 hp Dec-08

Washburn & Doughty East Boothbay ME Tug Moran Towing Firm 92 ft., 5,100 hp Mar-09

Washburn & Doughty East Boothbay ME Tug Moran Towing Firm 92 ft., 5,100 hp Jun-09

Western Towboat Seattle WA Tug Western Towboat Firm Alaska Titan 120 ft., 4,200 hp 2007

Recent News – North America Three Moran Towing Corp. tugs, the 3,000HP “Margaret Moran”, 3,900HP “Brendan Turecamo” and 3,900HP “Turecamo Boys” safely pulled the grounded South Korean 99,051mtdw Aframax tanker “White Sea” from the Ambrose shipping channel's sandy bottom at 1820 on 16

th July during high tide after 121,000 barrels

of the 556,000 barrels of low sulfur fuel oil cargo was lightered to Bouchard Transportation’s 467’x 80’, 138,000bbl black oil barge “B. No. 230” earlier. The 243m x 38m x 22.3m depth “White Sea” proceeded under its own power with the three tugs assisting it to Stapleton Anchorage, off Staten Island where divers conducted another hull survey.

The U.S. Coast Guard continues its investigation and has issued a Captain of the Port Order prohibiting the ship from departing until a satisfactory inspection by the classification society. "Several factors contributed to this successful outcome," said Lt. j.g. Kathryn Campagnini, U.S. Coast Guard Sector New York Command Duty Officer. "The sandy bottom, the ship's double-hull design, and the mild sea state were key in helping avert a potential spill. After lightering the 120,000 barrels of fuel to enhance buoyancy, three tugs successfully assisted in refloating the “White Sea”. This is about as good an ending as you can expect." The “White Sea” was enroute to Singapore from Bayonne, New Jersey with 556,000bbl of low sulfur fuel oil when it lost steering and ran aground by Buoy 14 in the Ambrose shipping channel, four miles north of Sandy Hook, N.J. The ship suffered breaches to two ballast water tanks, but the product compartments inside the double-hulled ship remain intact. The “White Sea”, built in 1991 by Hyundai Heavy Industries, is owned by the Singapore-based Tanker Pacific Management on a time charter to United Arab Emirates-based Westport Shipping Services.


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Mergers and acquisitions continue in the U.S., like across the world. Moran Towing purchased River Parishes of New Orleans with their fleet of eight tugs. Measured by ship calls and tonnage, business at the Port of New Orleans is now actually exceeding pre-Hurricane Katrina levels. Cruise ships returned to the port in 2006, and rising import volumes of basic commodities like steel, coffee and natural rubber have fueled significant growth in freight operations. Situated at the gateway to the Mississippi River — one of five sister ports along the river that collectively handle the most cargo tonnage of any U.S. port — New Orleans is a hub in an extensive, intermodal transportation network that includes six primary rail routes and key port facilities for some of the nation's largest industries. In addition to commodities and industrial goods, the five Lower Mississippi ports receive much of the grain produced in the American heartland. Moran's River Parishes Company division operates along a 250-mile stretch of the Lower Mississippi, between the Southwest Pass Seabuoy and the Port of Baton Rouge.

J. Ray McDermott, S.A., a subsidiary of McDermott International, Inc. signed an agreement to purchase substantially all of the assets of Secunda International, including 14 harsh-weather, multi-functional vessels, with capabilities which include subsea construction, pipelay, cable lay and dive support, as well as its shore base operations. Of the 14 vessels to be acquired, eight are equipped with dynamic positioning. Purchase price is approx. $260 million. Secunda has owned and operated construction, installation and support vessels for 24 years, operating in the U.S. and Mexican Gulf of Mexico, North Sea and offshore Canadian markets. As the purchased vessels conclude their existing charter contracts, J. Ray intends to integrate certain of these assets in its current and

potential markets to expand overall project capabilities, improve resource flexibility and provide additional services for customers. Earlier this month, J. Ray chartered one of the purchased vessels to deploy to its currently active Asia Pacific market. “Secunda’s assets, and more importantly its people, will be a complementary and strategic addition to J. Ray’s offshore capabilities,” said Bob Deason, President and COO of J. Ray. “With Secunda, J. Ray strengthens its traditional offshore construction business, increases the number of activities which can be self-performed, enhances our ability to utilize existing marine assets for higher value activities and additionally, supports its growing subsea development activities.” J. Ray’s acquisition is contingent upon obtaining regulatory approval in Canada and the U.S., and final due diligence. Transaction is expected to close early in the 2007 third quarter. J. Ray McDermott, S.A. and its subsidiaries provide engineering, construction, procurement, installation and project management services to offshore oil and gas developments worldwide. Over the years Marcon International has sold a number of vessels either to or on behalf of Secunda including the “Ryan Leet” (ex-Abeille Provence) shown above. Trailer Bridge, Inc. of Jacksonville, FL total revenue for quarter end March 31, 2007 was $26.8 million, an increase of 6.2% from first quarter 2006. Higher revenues were driven by increases in southbound car volume and specialized shipments along with increases in northbound container volume. Jacksonville-San Juan deployed vessel capacity utilization during the first quarter was 80.3% to Puerto Rico and 24.6% from Puerto Rico. Operating income was $3.8 million the first quarter 2007, compared with $0.5 million the first quarter 2006 which was burdened with $3.1 million of drydocking costs. First quarter ‘07 net income rose $3.1 million to $1.3 million from a net loss of $1.8 million the year earlier. Trailer Bridge provides integrated trucking and marine freight service to and from all points in the lower 48 states and Puerto Rico.

Seacor Holdings net income for first quarter end March 31, 2007 was $38.2 million on operating revenues of $310.8 million. For the first quarter2006, net income was $50.1 million on operating revenues of $305.9 million. For the preceding quarter ended December 31, 2006, net income was $58.4 million on operating revenues of $337.2 million. Marine Transportation Services reported an operating loss the first quarter of $1.6 million on operating revenues of $30.6 million compared to operating income of $2.2 million on operating revenues of $34.4 million the preceding quarter. First quarter operating results were significantly affected by three vessels off-hire for various periods. Two vessels were undergoing conversion to a double-hull. The remaining vessel was off-

hire while undergoing survey and repairs prior to commencing a multi-year bareboat charter.


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California State Governor Arnold Schwarzenegger issued formal disapproval to U.S. Maritime Administrator Sean T. Connaughton for licensing the BHP “Cabrillo Port” LNG deepwater port planned for construction off the coast of Ventura County, CA. The Governor did however make it clear that he supports the state’s need for an increased LNG supply. Excerpts from the Governor’s letter follow: “While I believe strongly that California needs to expand its access to natural gas resources, specifically Liquefied Natural Gas (LNG), I am disapproving this application based on my review of the Environmental Impact Report/Environmental Impact Statement (EIR/EIS) that are required by state and federal law, respectively. Specifically, the Cabrillo Port LNG project as proposed would result in significant and unmitigated impacts to California’s air quality and marine life. California policy agencies have determined that California needs LNG. More than 40% of the electricity in California is generated using natural gas as a fuel. California consciously chose natural gas as a fuel source to meet the demands of a growing population and booming economy due to its clean environmental footprint compared with coal and other fossil fuels. LNG is important to California’s energy future, and I believe an offshore LNG facility can be constructed along the coast that meets California’s stringent environmental standards. Although I strongly support building an offshore LNG facility in California, based on the unmitigated and significant environmental impacts associated with Cabrillo Port LNG’s proposed project, I disapprove this application.” The Maritime Administration has issued six deepwater port LNG licenses to date and is currently reviewing eight applications. (Three applications are proposed off the coast of California.) The 1

st U.S. Court of Appeals reversed a lower court ruling striking down

three important aspects of the Massachusetts Oil Spill Prevention Act of 2004 and ordered a new hearing. The Act, passed after a barge struck a rocky ledge in Buzzards Bay in 2004, provided one provision that effective January 1, 2005, no tank vessel (including tank barges) carrying 6,000 or more barrels of oil shall enter or transit any area of special interest within Massachusetts waters (Buzzards Bay, Vineyard Sound and Mount Hope Bay) unless accompanied by a tugboat escort or DEP has authorized a waiver of this requirement due to a showing of exigent circumstances by the transiting vessel. In January 2005, the United States brought suit in U.S. District Court claiming that the following provisions of the Massachusetts Oil Spill Act are preempted by Federal law: state pilotage requirements, personnel and manning requirements, tank vessel design requirements, drug and alcohol testing provisions, tugboat escort provisions, mandatory vessel routing requirements, and the certificate of financial assurance requirement. In July 2006, the U.S. District Court held that the challenged provisions of Oil Spill Act are preempted and unconstitutional under the Supremacy Clause of the U.S. Constitution, and three of the main provisions of the law were tossed out by a federal court judge. The lower court is scheduled to reconsider the case. As of June 13

th, two more ships will soon be leaving the James River Reserve Fleet in Newport News, VA., and towed

to recycling yards, under contracts announced by the U.S. Department of Transportation’s Maritime Administration. The “State”, which was first launched as the “President Jackson”, was awarded to Bay Bridge Enterprises of Chesapeake, Va., which will recycle the ship at a cost of $851,194 to the U.S. Government. The “Cape Clear” will be dismantled at Esco Marine in Brownsville, Texas, at a cost of $537,726. Under terms of both contracts, the ships must leave the fleet site within 30 days. When they depart, they will be the 58

th and 59

th ships to leave James River since January 2001. After

their departure, there will be 43 ships slated for disposal left at the site. When the “State” was first launched as a passenger ship in 1950, it was considered a prime example of futuristic streamline design. The ship was taken over by the Navy and served as a troop transport named USNS “Barrett”. While the “State” has been in

the James River site, it has occasionally been used by army units as a platform for exercises. The “Cape Clear” is a freighter built in 1963. The Maritime Administration is currently not accepting new proposals for the dismantling and recycling of obsolete ships in foreign countries. The Chairman of Able UK announced in May that Able renegotiated its contract with the U.S. Maritime Administration for the recycling of vessels from the US Reserve Fleet at the company’s TERRC (Teesside Environmental Reclamation and Recycling Centre) facility at Graythorp, U.K. Able UK will not receive the nine other vessels scheduled to come to TERRC under the original terms of the contract but will still purchase the two part built ships and recycle the four ships which have been berthed at TERRC since November 2003.


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K-Sea Transportation Partners L.P. for the three months ended March 31, 2007, reported operating income of $7.6 million, an increase of $3.5 million, or 86%, compared to $4.1 million of operating income for the three months ended March 31, 2006. This year-over-year increase resulted from the continuing expansion of K-Seas’ fleet barrel-carrying capacity, including the addition of six new tank barges since January 2006. These results were also positively impacted by continued strong rates and vessel utilization, partially offset by increases of $1.3 million in depreciation and amortization due to the expanded fleet, and $0.9 million in general and administrative expenses in support of the Company's growth. Earnings before interest, taxes, depreciation, amortization, and loss on reduction of debt increased by $4.8 million, or 43%, to $16.0 million for the three months ended March 31, 2007, compared to $11.2 million for the three months ended March 31, 2006. Net income for the three months ended March 31, 2007 was $4.0 million compared to net income of $1.2 million for the three months ended March 31, 2006, an increase of $2.8 million. The fiscal 2007 third quarter benefited from the $3.5 million increase in operating income, offset by a $0.7 million increase in interest expense resulting from higher debt balances incurred to finance vessel acquisitions in connection with K-Seas’ fleet expansion program over the past year, and higher interest rates.

President and CEO Tim Casey said "Our operating results for the fiscal 2007 third quarter were strong, with operating income, EBITDA, and net income per unit all significantly higher than last year. We expect our results to be strengthened further by our ongoing fleet expansion. We took delivery of another new 28,000 barrel tank barge in January, and a 100,000 barrel tank barge in March. In April, we purchased two additional tugboats, bringing the total to five acquired tugs this fiscal year, as part of a program to reduce operating costs and improve efficiency. We have seven additional tank barges under construction which are scheduled for delivery at intervals of every few months between now and the end of calendar 2008. In light of our results and expectations, our Board of Directors, as reported

above, approved a two cent per unit increase in our quarterly distribution. At our current annualized rate of $2.72 per unit, K-Sea's distribution is over 13% higher than at this time last year. We remain optimistic about continuing our growth for the balance of this year and in fiscal 2008."

K-Sea Transportation Quarterly Supplemental Operating Statistics

2007 2006 2005 2004

31 Mar 31 Dec 30-Sep 30-Jun 31-Mar 31-Dec 30-Sep 30-Jun 31-Mar 31-Dec 30-Sep

Local Trade

Avg. Daily Rate $6,765 $6,644 $6,888 $6,328 $5,645 $5,436 $5,454 $5,433 $5,232 $5,491 $5,583

Net Utilization 82% 84% 74% 71% 80% 80% 76% 78% 83% 81% 74%

Coastwise Trade

Avg. Daily Rate $12,772 $11,971 $11,744 $12,038 $11,422 $11,454 $13,367 $12,121 $11,091 $10,612 $11,603

Net Utilization 90% 92% 91% 88% 88% 93% 91% 92% 92% 85% 92%

Total Fleet

Avg. Daily Rate $10,226 $9.765 $9,797 $9,699 $8,909 $8,823 $9.66 $8,914 $8,264 $8,462 $9,329

Net Utilization 87% 89% 83% 80% 84% 87% 84% 84% 87% 83% 84%

Average daily rate is equal to the net voyage revenue earned by a group of tank vessels during the period, divided by the number of days worked by that group of tank vessels during the period. Net utilization is equal to the total number of days worked by a group of tank vessels during the period, divided by total calendar days for that group of tank vessels during the period.

K-Sea Transportation Partners signed a contract to build four 50,000bbl tank barges at Jeffboat, the manufacturing division of American Commercial Lines. Total value of the contract is approx. $40 million, and construction will start the first quarter of calendar 2009. The first vessel is scheduled for delivery in December 2009, with an additional vessel delivered every three months thereafter. The contract also includes an option for up to four more comparable barges.


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K-Sea acquired Smith Maritime, Ltd. of Honolulu and Sirius Maritime of Seattle. Smith is controlled by Gordon Smith, also one of three owners of Sirius and who will join the management of K-Sea. Total purchase price is approx. $205 million. Transactions are to be completed in July or early August, subject to customary closing conditions, and are expected to be immediately accretive to K-Sea's distributable cash flow. On a combined basis, these operations include eleven petroleum tank barges and ten tugs, aggregating 777,000bbl capacity, of which 670,000bbl, or 86%, are double-hull. The addition of these tank barges represent a 22% increase in the barrel-carrying capacity of the K-Sea fleet to about 4.3 million barrels. Total price consists of approx. $195 million in cash and assumed debt, plus K-Sea common units valued at approx. $10 million. K-Sea expects to initially finance the cash portion of the purchase price through additional borrowings, which it expects to refinance in due course. Over the years, Marcon handled the sales or purchases of close to a dozen vessels and barges for both Smith Maritime and Sirius including the 135’, 5,750BHP tug “Sirius” (ex-Sea Valiant, ex-Pacific Victory, ex-Cecile B) pictured above. K-Sea also took delivery last week of another new, 28,000bbl double hulled tank barge, which is part of its fleet expansion and upgrade program. Including the recently announced extension of this program, ten more double hulled tank barges, totaling 524,000 barrels of additional capacity, are scheduled to be delivered before the end of calendar 2010, at which time K-Sea's total barrel-carrying capacity of over 4.8 million barrels will have more than doubled from its capacity at the time of K-Sea’s initial public offering in January 2004. By the end of calendar 2010, K-Sea’s fleet should be more than 80% double hulled, depending on the rate of retirement of the remaining single hull vessels. Tim Casey, President and CEO, said, "We look forward to welcoming Gordon Smith, Bob Dorn and Wayne Sundberg, along with the other employees of Smith and Sirius, to our Company. Together, we look forward to continuing to build a high quality marine transportation operation. The management of Smith and Sirius have built impressive operating teams which will significantly increase our growth potential. This expansion further increases our barrel-carrying capacity which, we believe, strengthens our position as a provider of refined petroleum products transportation services in the U.S. and enhances our ability to provide safe, reliable, and efficient service to our customers. In addition to expanding service to existing customers, the acquisition of Smith and Sirius also brings new customers into K-Sea's coverage. In light of our growth and expectations for continued development, our management, as indicated above, will recommend that our Board of Directors approve a two cent per unit increase in our quarterly distribution in respect of the quarter ending June 30. We look forward to integrating the Smith and Sirius operations into K-Sea and are optimistic about continuing our growth into the future." Gordon Smith, President of Smith Maritime, stated, "We are excited to become part of the K-Sea Transportation Partners L.P. group of companies. Throughout the years Smith Maritime has endeavored to become the leading tank barge operator in the Hawaiian Islands, greatly enhancing our fleet with new double hull barges, as well as working to become one of the safest and most reliable transporters of petroleum products in the U.S. We believe that merging with K-Sea will bring greater opportunities for both our loyal employees as well as our customers in our continued growth and expansion." Robert Dorn and Wayne Sundberg of Sirius Maritime jointly stated, "We are very pleased to become part of K-Sea Transportation Partners L.P., a company whose business and culture closely resembles our own. We are excited about the opportunities that this transaction provides to our employees and to our customers, and look forward to continuing to strive for safe and efficient marine transportation of petroleum products while working in the K-Sea family of companies."

K-Sea also welcomes River Associates of Philadelphia as an addition to the K-Sea family. River Associates, located at the Philadelphia Naval Business Center, stores and delivers fuel and lube oil as well as providing delivery and launch services. River Associates was started in 1961 and located on Pier 9 North in Philadelphia until the fall of 1996 when it moved to the Philadelphia Naval Business Center. It operates a 20,000ft

2 warehouse where it stores bulk and

packaged lubricants. The company later expanded into delivery of potable water and ship stores. It since added delivery of diesel fuel to vessels as well. Future plans include relocating within the Navy Yard to Schuylkill River where K-Sea will obtain a new warehouse and more dock space. River Associates fleet is composed of 3 tugs, 1 launch, 5 barges, and 3 trucks. The three tugs include “Captain Connor”, “Jimmy III”, and “Scotia Sea”. “Captain Connor” is 61’ powered by a CAT D398. “Jimmy III” is 43’, built in 1969 in Jacksonville, Florida and powered by a single 400HP CAT 343. The third tug is a 55’ push boat “Scotia Sea”, powered by two GM12V71’s. With these tugs River Associates makes deliveries to other vessels in the Delaware River and connecting areas.


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Hornbeck Offshore Services, Inc. first quarter 2007 revenues were $68.1 million, up 11.5% from $61.1 million for the first quarter of 2006. Operating income was $26.3 million, or 38.6% of revenues, for the first quarter of 2007 compared to $24.5 million, or 40.1% of revenues, for the prior-year quarter. EBITDA for the first quarter of 2007 of $33.5 million exceeded the high-end of Hornbeck’s first quarter 2007 guidance range of $25.0 million to $30.0 million. Net income for the first quarter of 2007 was $17.5 million compared to $14.9 million in the year-ago quarter. Revenues from the tug – tank barge segment were $26.9 million for the first quarter of 2007, an increase of $4.3 million, or 19.0%, over $22.6 million for the same period in 2006. Fleetwide average TTB dayrates of $17,680 were

$2,909, or 19.7%, higher than the $14,771 achieved during the same period in 2006. These increases in revenues and average dayrates are primarily related to a change in contract mix to time charters from a significant contract of affreightment that expired at the end of March 2006 and a full-quarter contribution from the “Energy 8701”, a previously retired single-hulled tank barge that was placed back into service in early October 2006. Utilization in the TTB segment for the first quarter of 2007 was 94.2% compared to 93.7% in the prior-year quarter. TTB operating income increased from $6.1 million for the first quarter of 2006 to $8.0 million this quarter, an increase of $1.9 million or 31.1%. As of January 1, 2007, Hornbeck modified its assumptions for estimated salvage values for marine equipment. The Company's property, plant and equipment are recorded at cost. Depreciation and amortization of equipment and leasehold improvements are computed using the straight-line method based on the estimated useful lives and salvage values of the related assets. Salvage values for marine equipment are now estimated to range between 5% and 25% of the originally recorded cost, depending on vessel type. For the three months ended March 31, 2007, this change in estimated salvage values resulted in an increase in operating income and net income of approx. $1.6 million and $1.0 million respectively. Hornbeck expects that current tug/tank barge market conditions will remain constant through the second quarter of 2007. Fleetwide average tug/barge dayrates are generally anticipated to be in the $16,000 to $18,000 range and fleetwide TTB utilization is anticipated to be in the low-90% range during the 2007 guidance periods. Current guidance for 2007 assumes a partial-year contribution from three 60,000-barrel tank barges to be delivered under Hornbeck’s TTB newbuild program #2. Hornbeck still expects the aggregate operating expenses of its current fleet (excluding the incremental impact of any new vessels to be delivered) to increase in 2007 by about 20% to 25% above its 2006 results. Hornbeck’s second TTB newbuild program currently includes three 60,000-barrel double-hulled tank barges that are under construction at a domestic shipyard and four ocean-going tugs being retrofitted at another domestic shipyard. These vessels are expected to be delivered on various dates throughout 2007. Based on current contracts and internal estimates, the aggregate total cost of this program, before construction period interest, is still expected to be approximately $70.0 million. Since the inception of this program, Hornbeck has incurred approximately $34.7 million of project costs, with $15.3 million incurred during the first quarter of 2007.

Hornbeck Tugs & Tank Barges Quarterly Utilization and Day Rates

2007 2006 2005 2004

31 Mar 31 Dec 30-Sep 30-Jun 31-Mar 31-Dec 30-Sep 30-Jun 31-Mar 31-Dec 30-Sep 30-Jun

No. Tank Barges 18.0 18 17 17.5 18 16.1 14.9 14 13.3 16 16 16

Fleet Cap. (Mbbl) 1.55 1.54 1.46 1.4721 1.4825 1.1257 1.111 1.013 0.923 1.156 1.156 1.156

Barge Size (bbl) 86,068 85,448 85,881 83,374 82,363 75,381 74,078 72,357 65,929 72.271 72,271 72,271

Utilization 94.2% 92.4% 94.10% 90.50% 93.70% 92.90% 83.90% 85.40% 85.50% 82.10% 76.00% 79.90%

Avg. Dayrate $17,680 $16,799 $22,419 $18,420 $14,771 $15,098 $12,809 $12,673 $13,192 $12,642 $11,151 $10,842


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Foss Maritime of Seattle in March of this year towed a large and unwieldy steel caisson from the Columbia River to Puget Sound Naval Shipyard, successfully and safely completing an ocean job unlike any previously accomplished by the company. The caisson, which will be a door on a graving dock used to service warships, floats much like a barge on its side. It measures 127’ long, 23’ wide, 48’ high and drew 34’ of water during the tow. “The big unknown was how this object would actually tow, both in the Columbia River and in the open ocean” said Mike Walker, Columbia Snake River regional operations manager. “The design would dictate that it would dive from side to side.” Another concern was that without ballast, the caisson might roll onto its

side and be unable to right itself. “To make things even more interesting, we also knew that if full of ballast, it would most likely sink,” Walker said. The caisson was designed by Elliott Bay Design Group of Seattle and built at Oregon Iron Works in Portland. The designers came up with a plan to stabilize the caisson for towing by filling its aft ballast tank and half-filling the midships tank. Supervisor of Vessel Rigging and Supply Joel Altus configured the towing gear for the job. A test tow from the shipyard on Swan Island was successful, with the “Howard Olsen” in the lead, and the “Joseph T” trailing to control the stern of the caisson and guard against possible sheer. So the two tugs and their cargo proceeded out the river, up the coast and into Puget Sound, picking up a Navy pilot at the entrance to Rich Passage, near the Navy yard. “This was a very delicate, high profile tow,” Walker said. “According to the surveyor, they could find no record of any tow company ever towing this kind of object in the open ocean for such a long distance, let alone with a trailing tug made fast on the stern.” Walker said the crews “did a fantastic job from the get go,” delivering the caisson to Bremerton with no damage, “not even a scrape of paint.” The lead tug was set up to tow with 2,000’ of two-inch wire, and the stern tug was set up with nine-inch plasma towing bridles with two-and-a-quarter-inch wire pennants. The bridles were married to 60’ of five-inch plasma line, which was married to 600’ of nine-inch nylon line. Washington State commissioned 136’ rescue tug “Gladiator” at Neah Bay in May finished up a busy 2006-07 season with a last-minute assist escorting a tanker experiencing a partial failure of its primary steering system. The 795’ “Sanko Dynasty” was filled with crude oil and was headed from Singapore to Anacortes. Upon completion of this assist, the tug stopped providing rescue service until next fall. The 7,200BHP tug, “Gladiator”, under contract from Crowley Maritime from Jan.1 through May 3, 2007, and the “Barbara Foss”, previously under contract from Foss Maritime from Nov. 1 through Dec. 31, 2006, have responded to five incidents to help prevent disabled ships traveling through the Strait of Juan de Fuca and the outer coast from drifting onto rocks and spilling oil. The state-funded rescue tug service started in 1999 at Neah Bay and has been used a total of 34 times since being stationed at the western end of the Strait of Juan de Fuca, one of the busiest vessel traffic areas in the Pacific Northwest. The pristine area includes the Olympic Coast National Marine Sanctuary, the Olympic National Park and tribal areas. Under the contract, Crowley Maritime provided rescue tug service for $8,500 a day plus fuel. State lawmakers gave Ecology $1.4 million with the goal of providing about 200 days of rescue tug service for the 2006-07 winter season. State funding for the rescue tug has run out this season but the Legislature has funded a Neah Bay rescue tug for the 2007-08 winter

season. State funding, however, is not guaranteed after next season. "The many times that a rescue tug has been called into service illustrated how critical this service is for protecting our environment," said Dale Jensen, who oversees Ecology's spills program. "Any time a ship loses propulsion, steering or power, it runs the risk of running onto shore and springing a leak. That can happen to a ship at any time of the year." A major spill would damage Washington's fishing and shellfish industries, further endanger salmon runs, kill birds and marine mammals, ruin public beaches, and dampen tourism. Winter storms present a higher risk of oil spills from the more than 5,200 tankers and cargo ships traveling through the Strait each year. Cargo ships can carry more than 2 million

gallons of fuel oil, and oil barges or tankers can carry up to 40 million gallons of oil. Photo courtesy of Capt. Harry Gardner III.


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U.S. Shipping Partners of Edison, NJ net income for the first quarter ‘07 was $5.7 million compared to $4.2 million for first quarter ‘06. Operating income (excluding $3.5 million contract settlement paid to the Partnership) was $6.9 million compared to $5.6 million in the same period in 2006. Earnings Before Interest, Taxes, Depreciation and Amortization increased by $6.2 million to $19.5 million from $13.3 million for the comparable period in 2006. The increase was primarily due to an increase in operating income of $4.8 million combined with an increase in depreciation and amortization of $1.4 million. Revenues for the quarter increased $5.0 million to $42.1 million from $37.0 million for the same quarter of 2006. The increase was due to the addition of the “Sea Venture”, placed in service in June 2006 and contributed approx. $3.5 million in revenues during the quarter ended March 31, 2007, combined with an increase in charter rates of approx. 3% and an increase in number of days worked which together contributed an additional $1.5 million of revenues. The increase in revenues was partially offset by an increase in vessel operating expenses of $1.3 million and depreciation and amortization expense of $1.4 million, primarily related to the addition of “Sea Venture”. U.S. Shipping’s first ATB, the parcel barge “Chemical Transporter” and pusher tug “Freeport” is nearing completion. Engine commissioning on the “Freeport” began in early May with sea trials scheduled to commence mid May. Final systems testing and regulatory certification are expected to be completed immediately following the tug's arrival in Baltimore, where it will be joined together with the barge. Launch of the “Chemical Transporter” was scheduled to occur in late May. Following final commissioning and testing of cargo systems and regulatory certification and sea trials, the completed ATB was expected to enter the Partnership's chemical service in mid June. This ATB unit is already fully covered with contracts of affreightment. The estimated final delivered cost of the ATB unit is currently expected to approximate $86.0 million - $88.0 million. Delays and cost overruns associated with this ATB unit are primarily attributable to various breaches of contract by the original builder. U.S. Shipping believes it has valid claims which, if recovered, will reduce this gross amount. U.S. Shipping is currently pursuing a sale and leaseback of this ATB, which if completed will allow us to finance the construction of the fifth ATB of the series, if we proceed with the construction of that unit. The decision whether to proceed with the construction of the fifth ATB unit needs to be made by June 18, 2007. The Partnership's ability to complete the first ATB on the above estimates of both timing and cost are dependent on a number of factors, some of which are beyond our control, including the availability and cost of needed equipment and labor as well as weather conditions. As a result of the delay in the delivery of, and the increased cost of constructing, the first ATB, the Partnership probably will not be able to meet certain of its current financial covenant requirements under its senior credit facility in the second half of the year. The Partnership believes that the lenders under the senior credit facility will modify the financial covenants so that the Partnership will remain in compliance with such covenants, although there can be no assurance of this. The Partnership was in compliance with all its financial covenants at the end of the first quarter of 2007. Any further delay in delivery of the ATB and/or increase in the cost of completion could adversely affect our business. Paul Gridley, Chairman and CEO, stated, "We are pleased with the first quarter's financial and operational results and we are optimistic that the fundamental trends in our business are moving in a positive direction. Utilization of our vessels was over 99% and both revenues and operating income increased over last year. We believe that growth in our business is currently being limited only by our vessel capacity. The first ATB unit is near completion and its delivery during the second quarter will increase our capacity and allow us to grow our business further."

Quarter Ending Year Ending 31 Dec

2007 2006 2006 2005 2006 2005

31 Mar 31 Dec 31 Mar 31 Dec

Total Fleet Vessel Days 900 920 810 815 3,490 2,999

Days Worked 893 816 790 693 3,233 2,852

Drydocking Days 0 98 0 122 219 132

Net Utilization 99% 89% 98% 85% 93% 95%

Avg. Time Charter Equivalent $38,796 $37,377 $37,599 $37,209 $37,928 $37,631


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Normally we put news about Semco Pte. Ltd. of Singapore and their tugs in the Southeast Asia section of the market report, vs. the Americas. At 1330hr, 19th May 2007 though, Semco’s 218’ x 47.2’, 6,600BHP salvage tug “Salvaliant” whilst en-route to Port Fourchon, intercepted a distress message from US Coast Guard requesting for any vessel in the vicinity to provide assistance to the distressed fishing vessel “Capt Glenn”. The 70’ long vessel was drifting with 3 personnel on board and some 84 miles northwest of “Salvaliant” position. Capt Mike Sapatinan, master of “Salvaliant” acted without any hesitation, altered course and on full speed headed towards the distressed fishing vessel and finally arrived at the “Capt Glenn” location at 0000hr, 20th May 2007. Upon going alongside “Salvaliant” crew

immediately boarded to ensure that the 3 crew members were safe and provided for, before towing it to back to Port Fourchon. At 0550hr, 22nd May 2007, the tow finally arrived at Port Fourchon, and “Capt Glenn” thereafter berthed safely alongside the wharves. A special commendation was given by US Coast Guard to Capt Mike Sapatinan and his crew for their assistance and professionalism in the rescue of “Capt Glenn”.

Recent News – Europe and Mediterranean 1st of May International Transporter Contractors’ 8,440BHP, 55m x 11.7m tug “Suhaili” started her contract with Saipem towing Saipem’s 100m x 30m x 7m launch / cargo barge “Castoro 9” from Rotterdam to Pointe Noire and then towing the barge in Congolese waters to perform the services required for the Awa Paloukou and Ikalou projects. Both projects will be installed at the same time by the same spread. The Awa Paloukou project concerns the installation of one platform and 36 km of sealine between Djemo Jetty and the new platform. The Ikalou project will involve the installation of two tripod platforms, 2 sealines between new and existing platforms and 2 electric cables. After the 30m tug “HT Blade” caught fire 2 miles northest of Cromer, U.K.; twelve members of the Maritime Incident Response Group (MIRG National Response), comprising specially trained Fire Fighters from Suffolk Fire and Rescue Service, boarded the tug to prepare the vessel to be towed into port on 24

th June. The tugs “Grey Salvor” and “Grey

Vixen” arrived on scene to tow the casualty tug to Lowestoft. The fire occurred in the engine room and the tug had 3 crew aboard at the time. Yarmouth Coastguard had tasked Coastguard Rescue teams from Lowestoft, Cromer and Felixstowe; as well as requesting the launch of the Cromer RNLI lifeboat to the scene. A Rescue helicopter from RAF Wattisham transported the MIRG crew to the scene. The crew was safely taken aboard the Cromer all weather lifeboat. The lifeboat and a cargo vessel “RMS Riga” doused the casualty tug with water. The Yarmouth Maritime Rescue Coordination Centre reported that extensive boundary cooling took place around the casualty tug, and temperature steadily dropped. Supplies were taken out to the crews by the Cromer RNLI Inshore Lifeboat.

After two years of collaboration in operating the semi-submersible barge “Gavea Lifter”, Louis Dreyfus Armateurs of France decided to strengthen its services to the offshore industry and acquired Fairmount Marine B.V. of the Netherlands. Fairmount now operates five modern 200mt bollard pull ocean tugs, all delivered after 2005, as well as two semi-submersible barges capable of lifting 50,000 tons. The fifth tug “Fairmount Expedition” was christened in May at the Niigata Shipyard in Japan. With the assistance of the Louis Dreyfus Armateurs group, Fairmount intends to further develop its activities and activities. Negotiations with shipyards are now in progress for ordering two new semi-submersible barges and several tugs of abt. 280mt bollard pull. Louis Dreyfus Armateurs (LDA) is a worldwide

specialist of bulk transportation and logistics, with a fleet of 30 bulkers plus floating cranes, barges and tugs. LDA is a subsidiary of the Louis Dreyfus Group, a family-owned company settled in 1851 which employs over 12,000 persons in more than 40 countries and a global turnover in excess of US$ 30 billion.


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Fairmount has also been busy with a number of tows. Prosafe awarded Fairmount the towage of the MSV “Regalia” from Luanda, Angola to Bergen, Norway. The towage will commence early November this year and is expected to take 45 days. MSV “Regalia” is a semi-submersible multi-service vessel with facilities for accommodating 380 personnel. The vessel measures 96m x 92m and has a transit displacement of 15,250 tonnes. MSV “Regalia” is the flagship in the fleet. She was built in 1985 at the GVA yard in Sweden to an enhanced GVA 3000 design. NMD3 station keeping together with an eight (8) point wire mooring system allows the MSV “Regalia” to provide exceptional station keeping in all environments………Immediately after redelivery of the “Fairmount Alpine” by GSF, Fairmount turned her north to tow the “Songa Neptune” from a position near the Gabon boarder to Angola………Last month Edison Gas awarded Fairmount the contract for towage of the Pentagone type drilling rig “Zagreb 1”. “Fairmount Alpine” was scheduled to pick up the tow the middle of July off Malabo and tow the rig to a position off Abidjan, Ivory Coast.

As part of its Horizon 2010 strategy plan, in which the lion’s share of investment is in offshore oil and gas marine services, Bourbon Group announced the intention of Grupo Boluda Corporacion Maritima to purchase the harbor towage activity of Les Abeilles. The acquisition plan is an opportunity for Les Abeilles to grow and expand its harbor towage operations. The size and international presence of harbor towage operators have become decisive factors for success in a market in which many cases of consolidation have been observed in recent months. The acquisition would therefore be totally relevant in view of the companies’ complementary geographical fields of operation, added to the reputation of the buyer, who has clearly demonstrated

his intention to invest and become a major player in harbor towage. The plan concerns harbor towage only, and does not include protection of the French coastline by vessels chartered by the French navy and carried out by Les Abeilles International which will still be part of Bourbon. The project is currently under review by the staff of the companies concerned. Bourbon port towage operations are carried out by Les Abeilles in the leading ports and terminals in France, Indian Ocean and along the African coastline. With a regularly renewed fleet of 66 tugs, the company boasts a workforce of over 1,000. Les Abeilles was established in 1864 and as of as of end-December 2006, the overall Towage & Salvage Division posted revenues of 130 million euros. Grupo Boluda Corporación Marítima is a European holding company boasting a growing portfolio which specializes in maritime services. In addition to harbor towage the group is also present in sea container transport and ship building. Boasting a fleet of 127 modern tugs located in ports in Spain and Latin America (Mexico, Panama, Venezuela, Argentina, Uruguay and the Dominican Republic), the group has a workforce of 3,000 and posted turnover in 2006 of EUR 490 million. The origins of the Boluda Group go back to the year 1920, when Vicente Boluda Marí founded a company in Valencia for the rendering of towing services in the Port of Valencia. With the development and subsequent consolidation of the company in that port, the company’s activity started to grow and spread out to the most important neighboring ports, until it acquired a major presence along the entire Spanish Mediterranean coast. Specifically, the ports in which we initially performed our maritime towing services were Valencia, Castellón, Cartagena and Tarragona. In May, Ms. Charo Coll, Director of Chartering for the Offshore Division of Grupo Boluda Corporación Marítima was appointed the new president of the European Tugowners Association. The association, founded in 1963 is comprised of 90% of the tug owners that operate in Europe. Founded in 1963, the Association has 78 full members plus 10 associate members. Ms. Coll replaces Andrew Dalrimple of Adsteam U.K. in the position.


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Bourbon’s revenues the first quarter 2007 totaled 200.1 million euros, up +18.1% over the same period in 2006 (+25.7% at constant exchange rates). Most of the increase came from their offshore division, while the Towage & Salvage Division reported 31.1 million euros in revenues, down 4.4% from the 32.5 million euros earned first quarter

‘06. Of that 31.1 million euros, 25.9 million was earned in France (down from 27.9 million) and 5.2 million euros was earned from the international market, up from 4.6 million first quarter 2006. Towage operations were negatively impacted by the strike in the Autonomous Port of Marseilles, with 1 million euros lost revenues for Les Abeilles Marseille Fos, or -15% for the first quarter 2007, which should be partially offset in the second quarter of 2007. Bourbon also suffered a 33% decline in revenues in the Port of Le Havre, due to the arrival of Société Nouvelle de Remorquage du Havreb (SNRH), subsidiary of Kotug. In the first quarter of 2007, as in 2006, the division did benefit from strong activity in African ports driven by the offshore oil sector in the region.

Towage & Salvage Revenues in Millions of Euros

2007 2006

Q1 Q3 Q1

France 25.9 26.9 27.9

International 5.2 4.6 4.2

Total 31.1 31.5 32.5

After having successfully completed a five-month salvage operation, Greece’s Tsavliris Salvage Group safely delivered the 26,530dwt, Cypriot flagged handy-sized bulk carrier “Golden Sky” to her owner Grossline Shipping on the 4th of May 2007, and the LOF/SCOPIC contract was terminated. The 167.2m x 26.0m x 13.3m depth “Golden Sky” had run hard aground five miles off Ventspils in January 2007 and experts previously argued that the operation, which took place in harsh, sub-zero conditions and the continued bad weather, would prove “impossible”. “Golden Sky” was built in 1985 in Japan.

Smit Internationale N.V. in mid-June bought a share of 50% in Ocean Marine Services in Egypt. Together with its partner for 25 years (the Shilbaya Group) seven work vessels will be deployed on term charters for the Egyptian petroleum industry. The shareholders consisted of the Shilbaya Group (33-1/3%), Seacor Marine ( 33-1/3% ) and Swire Pacific Offshore (33-1/3% ). ………Smit and her partner Octomar Serviços Marítimos Lda also were awarded a contract for BP’s Greater Plutonio Development, Block 18, offshore Angola. A new build floating production, storage and offloading (fpso) vessel will be moored at a water depth of 1,310 meters. Amongst others, the contract consists of the following services: berthing and unberthing of export tankers, fire-fighting, oil spill control and

safety standby, pilotage, mooring and loading supervision, inspection, repair and maintenance of the offloading hoses and buoy. A new build offloading support tug, a workboat and a mooring assist vessel will be deployed……… In line with Smit’s strive to focus on its core activities Smit has also announced that it sold its inland river operation in Gabon to Ortec Marine. The sale involves seven tugs and seven barges. The personnel engaged in this operation will continue their employment with Ortec Marine. Concurrent with its strategy SMIT retains its terminal operation in Gabon.


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On 18th July 2007 Messrs Rimorchiatori Malta Ltd, recently incorporated by Rimorchiatori Riuniti Spa, purchased the Malta Government’s shares of Tug Malta Ltd. acquiring the full control of the company. The Maltese Government sold their shares in Tug Malta, amounting to 73.7% of the company, for Lm 10.6 million (€24.7 million). The privatization process began in September 2006, and 12 companies expressed interest in buying Tug Malta. The level of service which Tug Malta offers to the local harbors is secured by recent reforms and regulated by newly revised legislation. The Government felt that introduction of a strategic investor would allow Tug Malta to grow in a next phase of development. Tug Malta was initially nationalized out of the private companies that used to run the service prior to 1980. Up to the late eighties, the Grand

Harbor was the only shipping harbor in use and as such Tug Malta had all its tug fleet stationed there. However, in 1989, with the development of the Malta Freeport, the company had to invest in additional tugs in order to be able to offer an efficient service to tug users in the southern port. Acquisition of Tug Malta will provide the Rimorchiatori Group with an excellent opportunity to come back to a market that they abandoned several years ago. This was said by Giovanni Delle Piane, President of Rimorchiatori Riuniti S.P.A during the signing ceremony of the Share Sale Agreement. “It is our aim is to have another success story here in Malta”, he added. Mr. Delle Piane, in his speech said that Rimorchiatori Riuniti S.P.A is strongly committed to invest and develop the three sectors of harbor towage, offshore towage and international shipping and they have a sound financial situation that will enable us to do this. He added that in fact, acquiring Tug Malta shall enable them to develop two of the three sectors where we are present the harbor activity and the offshore activity. Delle Piane emphasized that due to the central position of Malta in the Mediterranean Sea, the outlook for the off-port towage, including salvage emergency and anti pollution activities on the route between Gibraltar and the Suez Channel is also very encouraging due to the increasingly growing traffic. He added that as far as the offshore activities are concerned. These activities include assistance to oil rigs and sub sea construction in Northern African countries, which show a great deal of potential. According to recent studies, demand for specialized vessels like AHTS and PSV from local and international oil companies will increase rapidly. Due to the ideal position of Malta, it should be able to provide vessels at a very competitive price, having the advantage of cost savings for mobilization and demobilization, as compared to a relative remote location such as Genoa. Rimorchiatori Riuniti plans to invest over 22 million euros in two new tugs, and shall also purchase equipment in order to upgrade some of the existing tugs in order to make them more versatile. Apart from the investment in Tug Malta, Rimorchiatori Riuniti also plans to update and train existing seafarers of Tug Malta in order to achieve the necessary qualifications to perform the new activities outside of the Maltese coast. Rimorchiatori Riuniti will also develop local commercial functions within the network of the group to acquire new orders and it shall also develop the offshore activity by means of two high sea vessels that will be chartered from the parent company and employed in assistance to oil rigs located off the coasts of North African countries such as Libya and Tunisia. Mr. Delle Piane also announced

that the holding company Rimorchiatori Malta Ltd. that was recently incorporated for the purpose of acquiring the shares of Tug Malta is willing to invest even further, beyond the commitments and undertakings they have made with the Maltese government. In fact he said that “we intend to form a subsidiary that will acquire a new built off-shore vessel, for a value of approximately 40 million Euros that will become the flag ship of the whole group. In fact this vessel is currently one of the most powerful vessels ever seen in the Mediterranean, and is currently being built by a Spanish yard “Armon S.A.”. This is proof of our willingness to develop and invest further in your beautiful island, Malta.” Rimorchiatori Riuniti has been operating tugs since 1922.


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The U.S. National Maritime Intelligence Center advises that piracy has resumed in the international shipping lanes off the East Coast of Somalia. Vessels report being fired upon approx. 190nm off the Somali Coast in the vicinity of 01° 20’N, 049° 00E by gunmen in small white speedboats armed with machine guns and rocket propelled grenades. Given the distance from shore these recent attacks have occurred and poor weather conditions typical for this time of year, the Office of Naval Intelligence assesses pirates are likely utilizing a larger merchant vessel as a mother-ship to launch their small-boat attacks. The International Maritime Bureau has increased their recommended transit distance from 75nm to 200nm for vessels not calling on Somali ports. ONI further advises vessels to stay at least 50nm away from the position 01° 02’N, 048° 10E until the mother-ship threat can be evaluated. All vessels are advised to remain at least 200nm from the East Coast of Somalia. All merchant vessels transiting the coast of Somalia, no matter how far offshore, should increase anti-piracy precautions and maintain a heightened state of vigilance. Pirates are reported to have used previously hijacked ships as bases for further attacks. Another reported pirate tactic has been to issue a false distress call to lure a ship close inshore. Therefore, caution should be taken when responding to distress calls keeping in mind it may be a tactic to lure a vessel into a trap. Victimized vessels report two to three 6 – 9m speedboats with 3 to 6 armed men per vessel armed with AK-47s and shoulder launched rockets, opening fire on their vessels in broad daylight in order to intimidate them into stopping. To date, vessels that increase speed and take evasive maneuvers avoid boarding while those that slow down are boarded, taken to the Somali coastline, and released after successful ransom payment, often after protracted negotiations of as much as 11 weeks. The 1,563dwt, 61.6m x 10.3m Danish general cargo ship “Danica White” which was hijacked by Somali pirates earlier this month has run out of food and fresh water and the

generator operating the fresh-watermaker has broken down. The vessel and her crew were carrying building materials from Dubai to Kenya. After “Danica White” was captured, a U.S. Navy warship destroyed three small speedboats being towed behind the ship, but was forced to abandon the chase after it entered Somali territorial waters. Three other ships are being held by Somali pirates and one Taiwanese sailor was killed after his vessel’s owners refused ransom demands. Reportedly the Somali pirates are now demanding payment of US$ 1,500,000 to release the “Danica White” and crew. “Danica White” is anchored along with the other three hijacked vessels between Hardheere and Hobiyo, about 400km north of Mogadishu.

Hamburg-based Fairplay-Towage bareboated the offshore-tug “Zeus“ from the Slovenia tugowner Adria Tow, Koper and re-named her “Fairplay-28“. The Voith-tractor “Fairplay-28“, built by Spanish shipyard Astilleros Armon in December 2006 is replacing “Fairplay-27“, which after 1 year’s charter has been redelivered to her owners Bugsier og Berging, Oslo where she will start a terminal contract for Statoil Hammerfest (Snøhvit-Project). “Fairplay-28“ has already been re-painted in the typical blue Fairplay-colors and will start her duties in the North Sea within the Euro-Tug-Pools. Euro-Tugs BV, a Joint Venture between Fairplay Towage and URS Antwerpen, specializes in offshore services as well as coastal and worldwide towages. Tug will be based in Rotterdam and also available for harbor work, especially in Europoort. The Slovenian-flagged “Zeus//Fairplay-28” is

34,5m x 11,6m with a draft of 6,1 to 7.2m. Tug is classed BV I +Hull +Mach – Tug FiFi1 Water Spray – unrestricted Navigation +AUT –UMS-Recol. Two MAK 8M25 engines with each 2,640kW and Voith propulsion 32R5/250-2 drives provide a bollard pull of 73,5t and free running speed of 14kn. A Hatlapa Escort winch with 700m 52mmØ tow-wire, Karmoy towing pins, CAT auxiliary engines (306 KVA) and a Palfinger crane are the main components of this strong offshore tug. An allround fendering serves especially safe harbor and offshore-work. A Kvaerner FiFi1-installation produces 1400cbm water or a water/foam mixture per hour and per fire-fighting monitor.


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A new international convention on wreck removal has been adopted in Kenya. The Nairobi International Convention on the Removal of Wrecks, 2007, will provide the legal basis for States to remove, or have removed, shipwrecks that may have the potential to affect adversely the safety of lives, goods and property at sea, as well as the marine environment. The convention was adopted by a five-day Diplomatic Conference - held in the United Nations Office at Nairobi under the auspices of the International Maritime Organization, the United Nation’s specialized agency with responsibility for safety and security at sea and prevention of marine pollution from ships. The Convention will fill a gap in the existing international legal framework, by providing the first set of uniform international rules aimed at ensuring the prompt and effective removal of wrecks located beyond the territorial sea. The new Convention also includes an optional clause enabling States Parties to apply certain provisions to their territory, including their territorial sea. Although the incidence of marine casualties has decreased dramatically in recent years, mainly thanks to the work of IMO and the persistent efforts of Governments and industry to enhance safety in shipping operations, the number of abandoned wrecks, estimated at almost thirteen hundred worldwide, has reportedly increased and, as a result, the problems they cause to coastal States and shipping in general have, if anything, become more acute. These problems are three-fold: first, and depending on its location, a wreck may constitute a hazard to navigation, potentially endangering other vessels and their crews; second, and of equal concern, depending on the nature of the cargo, is the potential for a wreck to cause substantial damage to the marine and coastal environments; and third, in an age where goods and services are becoming increasingly expensive, is the issue of the costs involved in the marking and removal of hazardous wrecks. The convention attempts to resolve all of these and other, related, issues. IMO Secretary-General Mitropoulos urged IMO Member States to ratify the Convention as soon as possible. "The work of IMO and its membership on this subject does not stop with the signing of the Final Act. Our efforts should turn immediately to the task of bringing the Convention into force at the earliest possible date and, thereafter, to promoting its uniform and effective implementation," he said.

Southeast Asia, South Pacific and the Far East 27th June 2007, the “T” shape barge “Samsung TCB2” towed by Semco Pte. Ltd.’s project vessels “Salviscount”, “Salveritas” and “Salviceroy” and escorted by “Salvanguard”, safely arrived at PA-B site, offshore Sakhalin, Russia. The newly built 28,000-tonne structure was towed some 3,000 km on a 190m long and 92m wide barge specially built for this purpose. Upon arrival, “Salveritas” commenced on site assistance in positioning the T barge in mating operations and float over the topsides on to the Concrete Gravity Base structure legs, which was installed on a site some 12 km offshore North-Eastern Sakhalin in 2005, for setting the platform into the position. On 5th July 2007, the topside float-over was successfully completed. This marks the completion of the world biggest topside offshore installation. PA-B is an integrated oil and gas platform equipped with a drilling unit and

designed to extract oil and associated gas from Piltun Feature of Piltun-Astokhskoye Field. The PA-B platform was purpose-designed for year-round operation in a severe climate and is capable of withstanding heavy wave, ice and seismic impacts. The PA-B, similar to Lunskoye-A, has pendulum bearings installed at the top of each leg to protect the structure from earthquakes……..In May, Semco’s two 157tbp 68m x 16.4m 12,000BHP newbuildings; “Salveritas” and “Salviceroy”, commenced towage of the 280,000dwt 310m x 60m x 29m depth, ConocoPhillips

China Bohai FPSO Hull from Shanghai, China for Singapore. Aside from the towage, Semco also provided riding crew and ballasting assistance on the FPSO. Semco is contracted to ConocoPhillips China for the towage of the largest FPSO hull ever built in China, with the whole journey from Shanghai to Singapore expected to take just about 14 days. On arrival in Singapore, the installation of the topsides module, weighing approx. 35,000 tonnes, will be executed by SMOE to be conducted at their yard in Sembawang. The completed FPSO will return to the Bohai Field after the completion of the integration program. The unit is expected to have a processing capacity of abt. 190,000bpd of oil with 510,000bbl of fluid handled per day.


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The heavily grounded “Pasha Bulker” was successfully refloated by Svitzer Salvage. The vessel had run aground during extreme weather conditions near Newcastle, Australia, about a month ago. Preparations for this salvage took about a month and included laying out ground tackles, preparing the vessel for the use of regaining buoyancy techniques and oil transfer to reduce chances on pollution. In the meantime the vessel was ballasted down, inclusive of filling up holds, to allow her to survive further storms. All preparations were aimed at a refloating period starting on the 28th of June, whereby the attempt itself was divided in two stages: pulling the bow to sea and subsequently, after internal movement of the centre of gravity more forward, refloating the vessel to sea. The first attempt succeeded in turning the vessel lightly but considerable swell and breakers resulted in two of the three tug wires breaking and one of the three ground tackles parting. Spare gear was moved in from Svitzer Salvage

warehouses in Singapore to be able to re-rig the systems and two days later a second attempt was executed. The Svitzer Salvage team then succeeded in the first goal: turning the bow to sea. Over the following 24 hours the centre of gravity was moved forward to provide extra lift to the stern and as finally the vessel was successfully refloated cheers could be heard from the deck of the ship as it moved into deeper waters where divers inspected the hull for damage before towing her into port for hand-over to the Japanese Owners. Tugs involved were the 62 tonne bollard pull z-peller “Keera”, 49 tonne bollard pull Voith tractor “Wickham”, 47 tonne bollard pull z-peller “Woona” and the 64,3m, 2006 built, 7,000BHP anchor handler “Pacific Responder”.

Featured Tugs For Sale or Charter Direct From Owners File TG56137 Twin Screw Tug 136.5’ / 127.4’ x 40.0’ x 19.5’ depth x abt. 17’ light / 18’ draft at loadline. Conventional raised foc’stle bow twin screw tug with upper pilothouse. Upper / Lower Eyelevel 56’ / 29’ at loadline draft. Highest fixed point abt. 83’ at loadline draft. Built 1978/9 by Main Iron Works; Bayou Blue, LA. U.S. flag. G / NRT 161.24 / 109.00. ABS +A1 Towing Service, Unrestricted. FO 173,194g. Markey single drum TDSS-36 tow winch with 2,000’ 2.25” wire. 2 x EMD 16-645E7B total 5,600BHP at 900RPM. Falk 3548 5.275:1 gears. Four blade stainless steel 126” x 128.82” props in fixed kort nozzles. 2-100kW Delco / GM8V71 generators. Accommodations for total 13 in 6-2 and 1-1 man rooms. Full nav / com aids including 4 radars, 4 VHFs, 2 SSBs, 2 GPSs, 2 Gyros and Satcom. Tug offered exclusively in our hands for time charter U.S, Gulf Coast range (between New Orleans and Tampa, TBD) during the September 1 - 15 window. The tug will be open for domestic or international towing for a period of about 3 months (approximately thru to the beginning of December). Tug is not for sale, only charter. Further details and rate ideas available on request.

TG20131 Twin Screw Tug 94.5’ x 27.6’ x 12.5’ depth / 9.8’ draft. Built 1999 by Mawei; Fuzhou, China. Classed BV I 3/3 E +Tug Deep Sea, Unrestricted Navigation. Solas Fifi. Foreign flag. G / NRT 231 / 69. Abt. 498mtdw. FO 170mT. FW 40mT. 40 ton SWL tow hook and 40 ton electric/hydraulic single drum tow winch with capacity 400m 42mm wire. Stern roller. 2 x Cummins KTA38M total 2,000BHP at 1,800RPM. Fixed pitch props in kort nozzles. Bollard pull abt. 31mt. Speed abt. 11.5kn free running. 2-65kW 400vAC 50Hz generators. Full navaids. Barge working with 3,500dwt ocean tank barge TB25033. Marcon has sold other tugs belonging to these Owners. Southeast Asia.


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TG44122 Twin Screw Tug 121.5’ x 34.2’ x 17.5’ depth. U.S. flag. G/NRT 198/134. Designed by Schuller & Allan of Houston, TX. Built 1970 by Gulfport Shipbuilding, Port Arthur, TX. Totally rebuilt 2000. Extensive steel work in way of all ballast tanks, chain locker, deck plate, etc. completed at Main Iron Works in 2000. Additional steel work in 2006. Class ABS +A1, Towing Services, +AMS. ABS International Loadline. Special survey passed April ‘06 and due July 2010. FO 102,547g. FW 7,060g. 2 x Fairbanks Morse 12-38D8-1/8 total 4,400BHP at 825RPM. Direct reversing. Lufkin reduction gears. All shaft seals replaced in ‘06. Main engines totally rebuilt in 2000 including 3 of 4 crank shafts renewed. Both reduction gear boxes overhauled. Shafts, wheels & rudders pulled and re-worked. All packing glands, rudder bearings, etc. renewed. 2-125kW/GM6-71 450vAC 3Ph 60Hz generators. One generator engine rebuilt in 2000, one in 2006. Single drum Burrard Iron Works towing winch with 2,500’ x 2.25” wire new in 2006. Tow winch rebuilt in 2006 with 2 new winch motors installed in 2000. “Texas bar” also installed. Anchor windlass overhauled in 2000. 2,000# anchor & 105 fathoms of 1.25” stud link chain

new in 2006. New bow rubber installed in 2000. All valves & vents replaced new on deck in ‘06. All air controls renewed. Deck machinery hydraulically powered & supplied by independent GM6-71 driven pump (in addition 50HP electric driven hydraulic pump fitted). Stern roller 21” dia. x 60” long new in 2000. Wagner hydraulic ram-helm pump steering with two electric hydraulic & manual pumps rebuilt 2000. Steering hydraulic cylinders, valves and hoses all rebuilt/replaced in ‘06. 2 radars, 4 VHFs, 2 GPS, fathometer, AREA 3 GMDSS Suite, gyro/magnetic compasses and autopilot, Doppler speed log, AIS, SSAS, SART, EPIRB and Integrated electronic chart display. Communications include Inmarsat C, Sat Phone. Ten berths in six staterooms with four

bathrooms. Completely air conditioned with exception of machinery space. Sale “as is, where is” with delivery US East Coast. Price on request. For a direct reversing vessel, she has a quick respond time (@6-7 seconds from forward to astern), and reportedly good handling boat. Marcon has brokered this boat so far twice in its life. File TG14076 Twin Screw Tug 75.0’ x 22.6’ x 12.0’ depth x abt. 11.0’ laden draft. Built 1963 by Albina Eng. & Mach., Portland, OR. Last Drydocked 2003. US Flag. G/NRT 97/21. FO 18,000g. 2 x CATD398 total 1,500BHP. Twin Disc 4:1 Gears. 74”x50” fixed pitch props on 6.5” shafts. Open wheel. New engine room installation after sinking in 1997. PME rebuilt in 2005 and now 2,000h since overhaul. SME 18,000h since last overhaul. Markey Single Drum electric tow winch with about 1,500’ 1.5” wire. Electric Capstan forward. Two Beebe electric barge winches aft with fairleads. 20kW/GM3-71 & 20kW/Northern Lights generators. Full nav/com aids including AIS, 2 radars, GPS, VHF, etc. US$ 650,000 delivery “as is, where is” US West Coast. Brokers invite best cash offers to test, after inspection. Tug currently working in fresh water.

File TG40021 Twin Screw Tug 125.3’ x 29.52’ x 15.1’ depth x 12’ draft. Built 1965 by New Iberia Shipbldg., New Iberia, Louisiana. Flag US, GRT 176, NRT 75 (ITC - 350G / 105N). ABS Loadline through 04 May 2008. Annual Loadline Survey #4 due 05 May 2007. FO 75,403g (at 100% including 2-940g day tanks). LO 3,262g. Slop oil 2,721g. Fresh Water 1,436g + watermaker. 2 x Fairbanks Morse 10-38D8-1/8 total 4,000bhp at 750RPM. Falk 3:1 reverse reduction gears driving two 92” x 54” fixed pitch open props. 2–100kW/GM8V71 440vAC 60Hz generators new in 1992. Enclosed double drum Markey TESD-28 winch with 2,000' x 2" wire capacity. Vertical capstan port side aft. “H” bitts fore & aft. Bow winch. Rubber bow pud and

tire fendering. Gyro, VHF, Radar, Auto Pilot, Echo sounder. Fully operational. Inspection / delivery U.S. Gulf Coast by arrangement through this office. Price ideas, further details and photographs available on request.


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File TG57146 Twin Screw Tug 136.2’ / 127.2’ x 36.5’ x 19.2’ depth x abt. 17’ light / 20’ loaded draft. Built 1968 by J.R. McDermott; Amelia, LA. U.S. flag. G / NRT 194 / 132. ITC. 538 / 161. Classed ABS +A1, Towing Service, +AMS. Unrestricted Service. Annual Hull Survey 5 due 30 April 2007. Annual Mach Survey 5 due 30 April 2007. Drydocking Survey due 29 April 2007. FO abt. 155,000g. FW abt. 15,000g. LO abt. 3,300g. 2 x EMD 16-645E5 total 5,750BHP at 900RPM. Falk 4.345:1 gears. 5-blade 120” x 99” 5-blade stainless steel open props. Bollard pull abt. 135,000lbs. ahead and abt. 95,000lbs. astern. Markey TDSDW 36 double drum tow winch with capacity for 2,200’ 2.25” and 2,600’ 2.125” wire. 2-60kW CAT D3304 generators. Full com / navaids including 2 radars, GPS, fathometer, VHF, SSB, gyro and autopilot. Inspection / delivery

strictly “as is, where is” U.S. Gulf Coast by arrangement though this office. Further details, owner’s brochure, small scale outboard profile, ABS Safenet, price guidance and comments on condition available on request from this office. As brokers only, we invite your best firm cash, prompt offers for Owner’s immediate consideration. Marcon has sold approx. 80 vessels and barges either to or from this Owner over the years.

TG60160 / TG80160 Twin Screw Tugs 160.8' x 41.75' x 18.1'. Built 1976 at Schichau-Unterweser; Germany. LR +100A4 E3 tug + LMC. Abt. 550mtdw. 200T cargo on 59’ x 42.6' clear deck. Fuel Oil: 425 MT Water: 190MT Foam: 95MT. Double Drum hydraulic winch; 2-10T tuggers & 100T hook . Wire capacity 1,300m & 1,300m 56mm. 200T SWL stern roller. 2 x MAK 9M453AK total 6,000BHP with bollard pull of 44.5 MT and 2 x MAK 12M453M total 8,000BHP with bollard pull of 68.2mt respectively. Esserwiesse VP props in fixed kort nozzles. Bowthruster. 3-175kW Kaick / CAT 440vAC 60Hz generators. 2 – 1,200m3/h fire pumps and 4-1,000m3/h monitors. Full navigational and communications / electronics. Quarters for 10 crew and 8 passengers. Fully air-conditioned. For sale outside of Arabian Gulf. FiFi 1.

TG21102 Twin Screw Tug 99.5' x 31' x 17.0’. Built 1976 at Slocum Iron Works, Mobile, AL. U.S. flag, but tug previously flagged out of US Registry and no longer may engage in US Coastwise Trade as defined by the US Jones Act. Raised foc’stle bow. G/NRT 98/67. ABS Load Line. FO 77,000g. FW 17,000g. 2 x EMD 8-645 total 1,950BHP. Falk gears. 4-blade 84”x49” props. 2-75kW/GM 6-71 generators. Smatco Double Drum 55 DAT-1700 tow winch driven by GM6-71. Capacity 3,000' x 1.50" wire. Stern roller. 2-2 and 2-4-man cabins. Full electronics. Prompt delivery U.S. Southeast. Recently completed re-engining / gearing & over-all refurbishment. Previously powered by Nohab. Price ideas on request. Sale “as is, where is”.

TG30097 Azimuthing Tractor Tugs (3 each) 29.5m x 9.8m x 4.2m depth x 4.3m designed draft with skeg. Built 1990 by Sembawang Bethlehem Pte. Ltd., Singapore. G / NRT 336 / 101. ABS +A1 (E) Towing Service. FO 124mt. FW 30mt. 2 x Stork Werkspoor 8FHD-240F total 3,000BHP at 1,000RPM. Aquamaster US 1401/2700 360 deg. drives in steerable kort nozzles forward. Designed bollard pull abt. 38mt. Service speed abt. 12.5kn. 2-112kVA 415vAC and 1-12.8kW / Perkins generators. Mampaey disc type tow hook. Hydraulic retrieving winch. Electric windlass. Inspection / delivery Southeast Asia.


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TG27107 Voith Schneider Tractor Tugs (2 each) 32.1m x 9.2m x 4.2m x 4.85m draft built 1981 by Gul Engineering & Dock Yard. Singapore flag. GRT 277.18. Lloyds Register +100A1 +LMS Harbor Service & 30 miles seaward. FO 75mt. FW 26.5mt. Dispersant 9.0m3. 2 x Stork Werkspoor 9 FEHP 240 total 2,700BHP. Voith Schneider 28G drives forward. Bollard pull abt. 32.0mt. Max speed abt. 12kn free running. 2-129BHP generators. Hydraulic tow winch 90mt brake with 5mt line pull at 20m/min. Electric windlass forward. Inspection / delivery Southeast Asia.

TG25111 Voith Schneider Tractor Tugs (2 each) 28.2m x 8.5m x 3.6m depth / 4.5m draft built 1977 by Pan Asia Shipyard. Singapore flag. GRT 209. LR +100A1, +LMS Harbor Service & 30 miles seaward. FO 69mt. FW 13.5mt. Dispersant 7000L. 2 x Yanmar M220-EN total 2,500BHP @ 900RPM. Voith Schneider 24G propulsion. Bollard pull abt. 23mt. Max speed abt. 12kn free running. 2-95kW CAT 3304DIT generators. Hydraulic tow winch aft with 70mt brake and 5mt @ 20m/min line pull. Electric windlass forward. 8 crew berths in 3 cabins. Inspection / delivery Southeast Asia.

TG08000 Twin Screw Tug 54.1’ x 17’ x 9.1’ depth, 8.86’ draft. Built 1993 in Alustal; Denmark. GT 22.8 / NT 6.8. Danish Maritime Authorities, Ice Class C. 21m3 FO. 24m2 Free Deck Space. Open Stern. 2 x CAT 3408TA – re-engined 2004. 878 BHP. Korsor CPP in Kort Nozzles. Bollard Pull abt. 11.5m/t. Speed abt. 10kn free running. 50HP Bow thruster. 24kw Genset 380/220V 50Hz. Hydraulic Tow Winch 10ts, 500m 28mm wire. Tow hook. Twin push knees. 8tm deck crane. Fully equipped closed fly bridge. 2 single cabins, certified up to 5 paxs. GMDSS A1. Delivery after August 2007. Inspection Denmark. Price ideas, photos, certificates & a brief drawing available on request from this office.

File TG17008 Twin Screw Tug 87.0’ x 28.8’ x 13.25’. Built 1967 by Mangone Shipbuilding; Houston, TX. U.S. flag. G/NRT 128/87. Drydocked October 2006 and hull blasted/painted. New zincs. FO 40,000g. FW 2,600g. All tanks cleaned October 2006. Skagit RP-90 double drum tow winch rebuilt in ‘05. 2 x CAT D398B total 1700BHP. CAT3192 5.31:1 gears. Fixed 5 blade stainless props. Bollard pull abt. 20 short tons. One main engine overhauled (top & bottom) in ’05. Other main engine top-end done. Reduction gears & clutches

rebuilt. Spares include 2 freshly rebuilt reduction gears and clutch packs. Engineroom re-wired, new switch board, etc. 2-55kW 208vAC 60Hz generators new in ‘05. Full com/ navaids new in 2005. Other items done in ‘05 rebuild include new towing pins, ¾” steel plate installed on stern for anchor handling; new D-rubber and tires; one steering pump changed out, with all rams rebuilt; new stern control station installed; new air-conditioning; new compressors; replaced plumbing & piping throughout tug. Further details, photographs, price guidance on request. Sale “as is, where is”.

We are also interested in receiving information on any other vessels or barges - inland or ocean service, surplus to your requirements and available for sale or charter - especially if you are interested in selling out of your area. This can be on a published or private & confidential basis. The market for second-hand equipment is tight and it is a good time to get rid of under-utilized vessels and barges. As of mid-July 2007, Marcon has brokered the sales or charters of 38 vessels and barges and we expect to conclude on several additional sales within the next thirty days. We are looking forward to an active 2007 on the heels of 2006, which was one of our best years, with 74 vessels and barges sold or chartered.

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