Beauharnois wary of pollution from ship dismantling:

MONTREAL — The demolition the old un-seaworthy Kathryn Spirit near Beauharnois does not float everybody's boat.

Town authorities believe the environmental off spin of the effort could endanger future efforts to develop the land.

"It's a new industrial activity, they've never been allowed to have such activities before," said Guillaume Levesque, City Councillor for Beauharnois

The waters are under federation authority but that doesn't mean that the federal minister has been giving the local MP the information she seeks.

"They don't answer or the answers are not really clear. We don't know if it's approved, we don't know what products are in the ship," said Anne Minh-Thu Quach MP Beauharnois-Salaberry.

The NDP says le Groupe St-Pierre has refused to provide them with a list of contaminants that could be found on the old vessel and that could be released when it's dismantled.

CTV Montreal's attempts to get answers were also unsuccessful.

The dismantling of the ship could entail pollutants entering the water supply.

"We still don't know if Environment Canada has received a report from Groupe St Pierre that explains the transformation of the ship," said the MP.

On Thursday the Quebec government responded to concerns and ordered work temporarily stopped as it examines the plans further.

Source: CTV. Ca. 22 December 2011

http://montreal.ctv.ca/servlet/an/local/CTVNews/20111222/mtl_shipstory_111222/20111222/?hub=MontrealHome

Ship project brings winter employment in the Sault:

Two local firms, MCM Marine and Reid Metals will dismantle the former Lake Michigan car ferry, Arthur K. Atkinson

Sault Ste. Marie, Mich. — SAULT STE. MARIE — Two local firms, MCM Marine and Reid Metals will dismantle the former Lake Michigan car ferry, Arthur K. Atkinson, according to a press release jointly-issued by the Darwin "Joe" McCoy and Ed Reid.

"We're pleased to be able to offer additional employment for the Sault area," said those orchestrating the project adding that the careful demolition and recycling of this vessel will protect the waters and eliminate future potential environmental risks.

The Arthur K. Atkinson, one of the last existing examples of the Railcar Great Lake Ferry, took her maiden voyage in January of 1917 sailing as the Ann Arbor #6, according to boat nerd member and historian, William Keetly who compiled the information upon learning the vessel was being docked in the Sault for the final time.

Keetly provided a great deal of interesting information highlighted by the December 1923 sinking of the Steamer Lakeland approximately 9 miles off of Sturgeon Bay, Wisconsin where the Ann Arbor #6 rescued 27 crewman from life boats in a northwest gale.

According to Keetly, the Ann Arbor #6 was renamed the Arthur K. Atkinson in 1959 and she subsequently became the first car ferry on the Great Lakes powered by diesel engines.

Her final years were filled with inactivity, however, starting with engine trouble in 1973. The Arthur K. Atkinson made a brief resurgence in August of 1980 and ran between Frankfort and Mantitowac, Wisc. until the ferry service between those two ports ceased in April of 1982. Since then, Keetly writes, the vessel had been towed to numerous locations under different owners before finally winding up in Detour in November of 2003.

Reid and McCoy credited the Interlake Steamship Company, the DeTour Dock Company, U.S. Marshall Service, Wellington Marine and the U.S. Coast Guard for helping to make this project a reality.

Employees of MCM Marine will dismantle the old ship, according to the press release, after removing items of historical significance for preservation.

Reid metals, a specialist in metal recycling, has over 50 years of experience in the demolition and re-use of metals, according to the press release, explaining the company's interest in salvaging the vessel.

Source: Sault Ste. Marie Evening News. 22 December 2011

http://www.sooeveningnews.com/features/x1569717495/Ship-project-brings-winter-employment-in-the-Sault

United States DoD contracts for September 20, 2011:

Hensel Phelps Granite Hangar, J.V., Irvine, Calif., is being awarded a $97,222,000 firm-fixed-price contract for the design and construction of an MV-22 aircraft parking apron/taxiway expansion; an Aircraft Maintenance Hangar 4 addition; and Aircraft Maintenance Hangar 7 construction at Marine Corps Air Station Miramar. The work to be performed provides for the construction and/or renovation of airfield facilities to enable the operation of both the MV-22 (medium lift) aircraft as well as the CH-53 (heavy-lift) helicopter. Specifically, the facilities will accommodate and maintain the MV-22 squadrons; conduct readiness and training operations; and conduct special exercise operations to attain and maintain proficiency in the operational employment of the MV-22. The contract also contains two planned modifications, which, if issued, would increase cumulative contract value to $103,602,000. Work will be performed in San Diego, Calif., and is expected to be completed by September 2014. Contract funds will not expire at the end of the current fiscal year. This contract was competitively procured via the Navy Electronic Commerce Online website, with 10 proposals received. The Naval Facilities Engineering Command, Southwest, San Diego, Calif., is the contracting activity (N62473-11-C-0401).

General Dynamics C4 Systems, Scottsdale, Ariz., is being awarded an estimated $64,590,000 indefinite-delivery/indefinite-quantity, cost-plus-incentive-fee and cost-plus-fixed-fee contract for software in-service support for maintenance, upgrades, and enhancements to the Wideband Networking Waveform software. Work will be performed in Scottsdale, Ariz., and is expected to be completed by September 2016. Contract funds will expire at the end of the current fiscal year. The contract was competitively procured via the Federal Business Opportunities website and the Space and Naval Warfare Systems Command E-commerce website, with two offers received. The Space and Naval Warfare Systems Center Atlantic, Charleston, S.C., is the contracting activity (N65236-11-D-4806).

Science Applications International Corp., Virginia Beach, Va., is being awarded $42,800,000 firm-fixed-price General Services Administration task order contract for integrated training support and execution by U.S. Fleet Forces Command. Work will be performed in Hampton Roads (30%); Bremerton, Wash. (28%); Newport, R.I. (6%); Groton, Conn. (6%); Ingleside, Texas (6%); San Diego, Calif. (6%); Pearl Harbor, Hawaii (6%); Yokosuka, Japan (6%); and Sasebo, Japan (6%). Work is to be completed by July 2012. Contract funds will not expire before the end of the fiscal year. This contract was not competitively procured. NAVSUP Weapon Systems Support, Mechanicsburg, Pa., is the contracting activity (N00104-11-F-QT60).

Architects Hawaii, Ltd., Honolulu, Hawaii, is being awarded a maximum $10,000,000 firm-fixed-price, indefinite-delivery / indefinite-quantity architect - engineering contract for preparation of plans and specifications for bachelor quarters and other architectural projects in the Naval Facilities Engineering Command (NAVFAC), Hawaii area of responsibility (AOR). The work to be performed provides for preparation of plans, specifications, cost estimates, design analysis and/or preparation of design-build request for proposal contract documents, field investigation, engineering study, geotechnical investigation, topographic survey, interior design, post construction award services, and other related services. No task orders are being issued at this time. Work will be performed at various Navy and Marine Corps facilities and other government facilities within the NAVFAC Hawaii AOR, and is expected to be completed by September 2016. Contract funds will not expire at the end of the current fiscal year. This contract was competitively procured via the Navy Electronic Commerce Online website, with 15 proposals received. The Naval Facilities Engineering Command, Hawaii, Pearl Harbor, Hawaii, is the contracting activity (N62478-11-D-5012).

Marine Hydraulics International, Inc., Norfolk, Va., is being awarded a $9,290,644 modification to previously awarded contract (N00024-10-C-4405) for USS Mahan (DDG 72) fiscal 2012 selective restricted availability for ship maintenance and repair. The contract will provide expert design, planning, and material support services for both DDG class ship construction and modernization. Work will be performed in Norfolk, Va., and is expected to be completed by February 2012. Contract funds in the amount of $8,790,907 will expire at the end of the current fiscal year. The Naval Ship Support Activity, Norfolk, Va., is the contracting activity.

Marine Hydraulics International, Norfolk, Va., is being awarded a $7,780,629 modification to previously awarded contract (N00024-10-C-4405) to exercise options for the accomplishment of the USS Ross (DDG 71) fiscal 2012 selective restricted availability. The contract will provide expert design, planning, and material support services for both DDG non-dockers ship construction and modernization. Work will be performed in Norfolk, Va., and is expected to be completed by March 2012. Contract funds in the amount of $7,780,629 will expire at the end of the current fiscal year. The Naval Ship Support Activity, Norfolk, Va., is the contracting activity.

EMR, Inc., Infrastructure and Environment*, Niceville, Fla., is being awarded $6,665,177 for firm-fixed-price task order 0002 under a previously awarded multiple award construction contract (N69450-10-D-0787) for the Hangar 57 repair and modernization project at Naval Air Station Corpus Christi. The work to be performed provides for necessary repairs and modernization to a World War II-era hangar. The work includes selective demolition, and repairs and upgrades to architectural, structural, heating ventilation and air conditioning, plumbing, electrical, fire protection, and civil engineering systems. The task order also contains two unexercised options, which, if exercised, would increase cumulative task order value to $7,751,086. Work will be performed in Corpus Christi, Texas, and is expected to be completed by December 2012. Contract funds will expire at the end of the current fiscal year. Three proposals were received for this task order. The Naval Facilities Engineering Command, Southeast, Jacksonville, Fla., is the contracting activity.

Defense Logistics Agency:

Western Diesel Services, Inc.*, St. Louis, Mo., was awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity, long-term contract for a maximum $23,127,146 for procurement of engine parts. There are no other locations of performance. Using service is Army. The date of performance completion is Sept. 20, 2016. The Defense Logistics Agency Land, Aberdeen Proving Ground, Md., is the contracting activity (SPRBL1-11-D-0030).

NAVCOM Defense Electronics, Inc.*, Corona, Calif., was awarded a firm-fixed-price, sole-source contract for a maximum $22,442,598 for aircraft parts. There are no other locations of performance. Using service is Air Force. The date of performance completion is Aug. 31, 2014. The Defense Logistics Agency Aviation, Robins Air Force Base, Ga., is the contracting activity (SPRWA1-11-C-0026).

Pocono Produce Co.*, Stroudsburg, Pa., was issued a modification exercising the second option year on the current contract SPM300-08-D-3248/P00030. Award is a fixed-price with economic price adjustment, prime vendor contract with a maximum $15,000,000 for food and beverage support. There are no other locations of performance. Using services are Army, Navy, Air Force, and Marine Corps. The date of performance completion is Sept. 19, 2012. The Defense Logistics Agency Troop Support, Philadelphia, Pa., is the contracting activity.

U.S. TRANSPORTATION COMMAND

Maersk Line, Ltd., Norfolk, Va., is being awarded a $9,802,426 fixed-price delivery order for container purchases and detention in support of Operation Enduring Freedom. Contract funds will expire at the end of the current fiscal year. The U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Ill., is the contracting activity (HTC711-07-D-0040).

* Small business

----

To read or search all U.S. Department of Defence contract announcements published at defpro.com click here:

http://www.defpro.com/focus/profile/dod_contracts/.

U.S. Department of Defense

Office of the Assistant Secretary of Defense (Public Affairs)

Source: Defense Professional. 21 September 2011

http://www.defpro.com/news/details/28012/?SID=fc7b1fc77beca8f84c1b3e3264eed6f3

Costamare Inc. Announces 2ndhand Vessel Acquisitions and Disposals, Time Charter Extensions and the Conclusion of Financing Arrangements for Its Newbuilding Program

News Release:

Athens, Greece - September 20, 2011 -- Costamare Inc. (the "Company") (NYSE: CMRE) announced today that it has reached agreements for –

(i)               the purchase and time charter of two secondhand vessels

(ii)             time charter extensions for six existing vessels and

(iii)      the disposal of two older vessels which the Company agreed to sell for demolition.

In addition, the Company has finalized the financing arrangements for its new-building Program.

(A) Vessel Acquisitions with Time Charters in Place

The Company has reached an agreement to acquire -

1) the 6,724 TEU, 2003-built container ship MSC Viviana (to be renamed MSC Messinia) for a purchase price of $60 million. The vessel is expected to be delivered by the end of October 2011 and immediately upon delivery it will commence a time charter with MSC for a duration of approximately 10 years, at a daily rate of $29,000; and

2) subject to final documentation, the 4,132 TEU, 2002-built MSC Ulsan for a purchase price of $30 million. The vessel is expected to be delivered within the first quarter of 2012 and immediately upon delivery it will commence a time charter with MSC for a duration of approximately 63 months, at a daily rate of $16,500.

Both acquisitions will be financed by cash from operations and the use of a committed credit line.

(B) Time Charter Extensions

The Company has entered into agreements to extend the time charters for the following 6 existing vessels:

1) The time charter agreement with MSC for the 1991-built, 2,023 TEU c/v MSC Sierra II, has been extended as from July 1, 2012, for a further period of approximately 2 years, at a daily rate of $11,500.

2) The time charter agreement with MSC for the 1991-built, 2,023 TEU c/v MSC Namibia II, has been extended as from August 2, 2012, for a further period of approximately two years, at a daily rate of $11,500.

3) The time charter agreement with MSC for the 1992-built, 2,024 TEU c/v MSC Sudan II, has been extended as from July 27, 2012, for a further period of approximately 2 years, at a daily rate of $11,500.

4) The time charter agreement with MSC for the 1991-built, 2,020 TEU c/v MSC Pylos, has been extended as from February 28, 2012, for a further period of approximately 2 years, at a daily rate of $11,500.

5) The time charter agreement with MSC for the 1986-built, 2,633 TEU c/v MSC Challenger, has been extended as from October 13, 2012, for a further period until approximately August 30, 2015, at a daily rate of $10,000.

6) The time charter agreement with MSC for the 1984-built, 3,584 TEU c/v MSC Austria, has been extended as from December 1, 2012, for a further period until approximately October 1, 2018, at a minimum daily rate of $13,500 plus 50% of the amount by which the market rate exceeds the minimum daily rate. The market rate is to be determined annually during the extension period, based on the Hamburg Contex 3500 TEU index.

(C) Vessel Disposals

The Company has agreed to sell the 1978-built vessels MSC Tuscany and MSC Fado for demolition, with delivery due to the buyers by mid-December 2011, for a total sale price of approximately $8.8 million.

(D) Financing Arrangements for New build Vessels

The Company has finalized the financing arrangements for three out of the five new build vessels ordered from Sungdong Shipbuilding & Marine Engineering Co., Ltd. of Korea, with a consortium of European and US financial institutions.

The Company has also accepted a firm offer from a consortium of European and Asian banks, which is subject to documentation, but not subject to further credit approval, for the financing of the remaining two new build vessels.

All 5 new build container ships, each of approximately 8,800 TEU capacity, have been time chartered to members of the Evergreen Group and are expected to be delivered between the 1st and the 3rd quarters of 2013.

Management Commentary

Gregory Zikos, Chief Financial Officer of the Company, said: "We are pleased to announce the agreement to acquire 2 more 2ndhand vessels backed by attractive time charters to MSC. Concurrently, we have reached agreements to extend on a forward basis the time charters for 6 existing vessels at favorable rates, while at the same time we are disposing of the oldest vessels in our fleet at a very attractive price. We expect to realize capital gains of approximately $5 million from these disposals.

"In total, these latest chartering agreements amount to approximately $207 million of contracted revenues with a TEU-weighted average duration of more than 5 years. The recent fixtures on a forward basis have minimized our re-chartering risk, and further enhanced our financial stability.

"With regards to financing our contracted new builds, we have finalized the loan agreement for three of our new build vessels with some of the most respected European and US financial institutions. We have also accepted a commitment letter from leading European and Asian banks to fund the remaining 2 new build vessels. When completed, these financing arrangements are expected to provide all necessary debt financing for all 10 new build orders we have placed since going public in November 2010.

"The most recent financing arrangements, discussed above, provide for 80% leverage, enhancing our equity returns.

"Concurrently, we take advantage of the current low interest rate environment by hedging, on a forward basis, our interest rate obligations, thus increasing our cash flow visibility."

For more information, contact:

Costamare Inc.

60, Zephyrou Street & Syngrou Avenue, Athens, Greece

Phone: + 30-210-9490050 +30 210-949-0000

Fax: + 30-210-9406454

Source: Maritime Global Net. 20 September 2011

http://www.mgn.com/news/newsreleasedetails.cfm?id=8344&type=

European project ‘RECYSHIP’ to address Occupational Safety, Health & Environmental protection issues of ship scrapping:

Recyship is an ambitious European project framed within the LIFE+ program in the action line of “Environment Policy and Governance” to be developed during the period 2009-2012. The intention is to address the issue of ship scrapping in matters of occupational safety, health and environmental protection.

This project seeks to support the European Commission in developing rules and guidelines in relation to vessels that, for various reasons, must be removed becoming a unique residue very complex to manage.

With this project the European Commission addresses the controversial issue of decontamination and recycling of ships out of use in Europe and solving cases like the French case of the Clemenceau (15 feb. 2006) or the dutch case of the Otopán (21 feb. 2007) and seeking to solve the problems of transferring ships out of use to countries in Southeast Asia (Pakistan, India and Bangladesh mainly) where ships are dismantled in the absence of environmental controls and security for workers.

For that reason a pilot plant will be develop to optimize the processes of ship decontamination in order to encourage such operations on European territory and avoid international shipments of hazardous waste. At the same time it aims to develop an integrated management system of quality, environmental and occupational risk prevention applicable to such facilities in Europe and other countries.

The main objectives of this project, and the resolution of one of the aspects considered of pressing interest to the European Union are:

1. Helping to strengthen European legislation on waste from ships and ships as waste

2. Propose solutions for the full range of member states and companies and ships operating under their flags

3. Contribute with studies to increase the European capacity for decontamination and dismantling of ships

4. Provide technical assistance and technological transfer and of best practices for recyclers in member states and not EU members

5. Helping to promote voluntary actions

Phases of the project:

The project is divided into the following actions and sub-actions:

A1 ACTION 1: COORDINATION AND MANAGEMENT

1.1 Technical Management

1.2 Administrative Management

1.3 Coordinated Project Monitoring

1.4 Reports to the Commission

A2 ACTION 2: CONTROL AND QUALITY MANAGEMENT

2.1 Quality Plan

2.2 Quality Control

2.3 Indicators control table

A3 ACTION 3: STUDY AND ANALYSIS OF LEGISLATION

3.1 Analysis of laws and regulations

3.2 Proposal of laws and regulations

A4 ACTION 4: STRATEGIES OF STAKEHOLDERS

4.1 Identification

4.2 Workshops

A5 ACTION 5: METHODOLOGIES AND PROCESSES OPTIMIZATION

5.1 Review of capacity and impact for the selection of host environments

5.2 Typing and classification of ships

5.3 Classification and characterization of waste

5.4 Methodological Analysis of the processes

5.5 Integrated Management System: quality, environment, safety and health

A6 ACTION 6: PILOT TEST

6.1 Selection of location and permits updates

6.2 Staff Training

6.3 Conditioning of facilities

6.4 Acquisition and transfer of the ships

6.5 Decommissioning and waste segregation

6.6 Analysis, processing and validation of results

6.7 Implementation and Validation of Integrated Management System

A7 ACTION 7: FEASIBILITY STUDY

7.1 Market Analysis

7.2 Economic feasibility plan

A8 ACTION 8: DIFFUSION

8.1 Project identification

8.2 Communication Plan

8.3 On-line training plan

8.4 RECYSHIP website

8.5 Publications

8.6 Material Disclosure

8.7 Fairs and Conferences

8.8 Conferences and seminars

8.9 Layman Report

Expected Results:

1. Proposal of regulations for proper management of ships out of use

2. Inclusion of the needs, problems and expectations of stakeholders

3. Definition of potential host environments (based on ability and ecological criteria)

4. Streamlined processes for decontamination and dismantling of ships out of use for the environmentally sound management of European ships

5. Solving environmental problems of the current scrapping yards

6. Feasibility Plan for decontamination and dismantling of ships out of use facilities

7. Knowledge of project at local, national and European level

8. Strengthening the dissemination of the LIFE+ program with planned activities and results of the project themselves.

Recyship Progress Summary As At 31 December 2010

RECYSHIP closed 2010 with good progress in implementing its actions and so continues its journey into 2011.

At the next meeting in February the technical and financial progress of the project will be assessed, based on technical and financial reports submitted by each partner.

RECYSHIP is actively working on the design and construction of prototypes for key processes on ship recycling: metal cutting, stripping paint from the hull and segregation of waste. Fatronik, TECNALIA currently, is developing a prototype that is expected to revolutionize the ship recycling industry.

Preparations are being finalized by Navalria to host the pilot tests at their shipyard from the month of May 2011, where RECYSHIP can test the effectiveness of the processes of decontamination and dismantling of end of life ships conducted in an environmentally sustainable, safe and economically efficient manner.

RECYSHIP partners are currently working in the acquisition of ships for testing through tenders or direct purchase from owners. For the month of February is expected to obtain at least 2 fishing boats from 250 to 300 tons. At the same time carries on the search for a location to perform dismantling of larger ships by flotation process.

During this year, RECYSHIP started with the informational mailings (newsletters) to different interest groups with the intention of keeping them informed of progress and at the same time, to obtain information on developments and special needs. A Blog, with a strong vocation to become the virtual meeting place related to the dismantling of ships in Europe, will support this initiative.

For this 2011, RECYSHIP intended not only to attend the 6th Annual Ship Recycling Conference to be held in late summer, but the intention is to come as speakers to present a preview of the results of the project.

At the next meeting of members will raise the actions expected for 2011 and the critical issues that at this time present the project. In order to cover the year satisfactorily, the technical managers of the project will show that it is crucial to meet commitments and deadlines in 4 critical points:

1. Building prototypes.
2. The purchase of ships.
3. The intensification of the dissemination activities under the Communication Plan prepared by RECICLAUTO.
4. Blog development and its forums and their dynamics

It only remains to point out that this year will be when the diffusion of the project will gain real importance through the communication and diffusion plan of RECYSHIP.

RECYSHIP Consortium hopes that the winds will be favourable to all people who are making this project a success.

Contact: 

Reciclauto Navarra S.L.

NUEVAS OFICINAS RECICLAUTO - Edificio Plaza del lago

C/ Garajonay 47, bajo. 31621 Sarriguren (Navarra)

Tel: (+34) 948 153 529 Fax: +(34) 948 152 335

contacto.recyship@recyship.com

RecyShip Newsletter - February 2011

http://www.recyship.com/newsletter/eng/news.html

Source: RECYSHIP project website

http://www.recyship.com/

Dismantling of Ship While Floating Next to a Pier:

Abstract:

The technological feasibility of scrapping a ship while it remains in the water at dockside was investigated. This method of scrapping a ship would provide a lower cost alternative to drydocking a ship before dismantling.

The plan entails washing and gas freeing all tanks to ensure safe working conditions throughout the dismantling procedure and then removing the material from the aft end of the ship forward. At every stage of the dismantling hydrostatics and structural integrity of the ship were examined to ensure a safe and successful scrapping operation. This sequence of removing the materials moves the center of gravity of the ship forward, causing the aft part of keel of the ship to lift out of the water, permitting it to be cut and removed. This allows for the entire ship to be dismantled without the use of a drydock.

A 900-foot bulk carrier was used as a typical ship for testing the plan. The ship was theoretically completely disassembled according to the procedure. It met all safety requirements throughout the dismantling.

Additional guidelines and suggestions for other types of ships and environmental conditions are included.

Author: Edward B Greenspan

Author Affiliation: Massachusetts Institute of Technology

Thesis submitted on: 11 June 1984

Link to the full report:

http://dspace.mit.edu/bitstream/handle/1721.1/46403/12600375.pdf?sequence=1

WWII Liberty Ship Davy Crockett Demolition Completed:

Oil Spill Averted from Derelict Vessel in Columbia River

The final section of a once proud WWII Liberty Ship was removed from the Columbia River today by Ballard Diving & Salvage under the direction of the United States Coast Guard and unified command consisting of both Washington and Oregon Department of Ecologies. This concludes a massive and carefully engineered effort to prevent more than 32,000 gallons of bunker oil from escaping into the river from the various double-bottom tanks and other holds containing the decades old bunker fuel harboring the sticky black substance.

During the 211-day operation, crews from the prime contractor Ballard Diving & Salvage removed 4.45 million pounds of steel, and another 824,822 pounds of debris, including wire, bricks and oiled sorbent materials and 1.6 million gallons of oil and or otherwise contaminated water. All recovered materials were taken off-site for proper disposal.

Another section of the vessel rises from the water

The operation involved stabilizing the vessel and containment of the pollution threat. When local facilities were unavailable for deconstruction a cofferdam containment was erected. The Davy could finally be deconstructed in the water. 

Snow, near record river levels and high river currents due to abnormally heavy spring runoff and often zero visibility created a challenging environment for the many commercial divers involved in the operation. BDS is very pleased with the company’s stellar safety record completing a very challenging and dangerous project. The estimated federal cost for the response is approximately $20 million. The response is funded by monies from the National Oil Spill Liability Trust Fund.

Source: Marine Link. 26 August 2011.

http://www.marinelink.com/news/demolition-completed340158.aspx 

The Economics of ship dismantling, ship recycling & ship breaking:

Why Ship-owners Sell Ships for Ship dismantling, ship breaking and ship recycling?

When the maintenance costs of the vessel start to exceed possible revenue, or when the vessel has become unattractive for the second-hand market.

How Ships are sold for Ship dismantling, ship breaking and ship recycling?

Ship-owners who have decided to end the economic life of a vessel will look for a cash buyer.  The cash buyer will either be a dedicated broker or the scrap yard operator himself. Typically, the ship will take cargo for a final voyage to the area where the scrap yard is located. After completion of this voyage, the ship will be brought, under its own power, to the scrap yard where it will be dismantled. The cash buyer pays a price in US$ per light displacement ton (ldt), which is roughly equivalent to the steel weight of the ship.

What is normal price at Ships are sold?

For years the price has been around 150 US$/ldt (with lows around 100 US$/ldt and highs around 200 US$/ldt), but recently the strong demand for steel scrap in China and the low supply of ships have driven prices up to record levels of nearly 500 US$/ldt for average vessels and more for particularly valuable ones.

What affects Shipbreaking Industry Most?

Freight market, the number of ships available for scrapping depends on conditions on the freight market. If ships can still earn good money, owners will not decide to send the ship for scrapping. In the past two years, scrapping volumes were very low due to a booming and profitable freight market.

The large majority of ships for scrapping will have to come from the deep sea merchant fleet and will be mainly tankers and bulk carriers (which are the “volume” segments). Other market segments, such as warships, inland waterways vessels and offshore structures, are of limited size and availability and so can hardly provide a steady stream of material for large-scale recycling. The operator of a modern recycling facility will therefore have difficulty building a business model that fully covers its amortization costs.

What is life span of normal ship?

Ships are individual constructions with a long life-cycle and will have undergone many repairs and maintenance in their 20-30 years of operation. The ships currently heading for the scrap yards were built in the 1970s using materials that are no longer used today (e.g. asbestos).

What is dismantling capacity in the EU?

There are facilities for larger ships mainly in Belgium, Italy and the Netherlands, with a combined capacity of about 230,000 ldt/year, and a multitude of smaller facilities for fishing vessels and other small craft in most other maritime Member States. Taken together, the existing capacity in the EU for ship dismantling may be estimated at approximately 500,000 ldt per year. The EU neighbouring Turkey  having 20 dismantling yards on the shore of Aliaga (near Izmir) have a joint capacity of approximately 1 million tons per year. (As on 2007).

Source: Scrap Ship Breaking

http://scrapshipbreaking.com/2011/05/20/the-economics-of-ship-dismantling-ship-breaking-and-ship-recycling/#more

Developments and Issues on Recycling of Ships:

Abstract:

The paper reviews the background to the adoption of IMO Assembly resolution A.981(24) on the development of a mandatory instrument for minimizing environmental and safety risks from ship recycling. The roles of the International Labour Organization and the Basel Convention on ship recycling matters are also discussed. The structure of the draft Convention is explained together with the mechanisms it will provide to Parties for controlling ships and recycling facilities. Finally, the paper introduces a number of issues currently under discussion, such as: the development of inventories of hazardous materials for new and for existing ships; the surveying regime to be established under the new Convention; how will the Convention deal with the issue of the decontamination of ships of hazardous materials; the exclusion of government owned ships from the new Convention, and the envisaged inclusion of domestic ships; the provisions for reporting to competent authorities and the related issue of prior informed consent.

Keywords:

Ship recycling; ship scrapping; shipbreaking; ship dismantling; Convention; recycling facilities; pre-cleaning; decontamination; government owned ships; domestic ships; surveys; inventory; hazardous materials; prior informed consent.

Author: Dr Nikos Mikelis

Author Affiliation: Implementation Officer, Marine Environment Division, International Maritime Organization

Corresponding Author: London SE1 7SR, United Kingdom

Email: nmikelis@imo.org    Fax: +44 20 75873210

Source: The International Labour Organisation. 2006

http://www5.imo.org/SharePoint/blastDataOnly.asp/data_id=17980/Developments.pdf 

Seaxl® Launches Innovative Marine Software Working Under Microsoft® Excel®

Seaxl® Marine Software Limited is a company with a vast amount of hands on organisational experience within the shipping industry going back to over 40 years. They have introduced a new approach to maritime software that is easy to use, easy to implement with immediate productivity, downloadable, training free, ready-to-use out of the box and, software which is designed and tailored for the shipping industry.

The five products currently available are CashFlow, Masters General Account, Ships Budgets, The Ship and Company Secretary.

Seaxl® Invest in Ships, a very dynamic evaluation of investments in ships, allowing you to assess how good a proposed investment project is, will be released during Q4 2011.

In this day and age who needs complications and snags in introducing any form of new technology to a shipping company? The usual questions being asked; what will be the cost, who will teach the staff on board the ships and ashore, how will we implement such technology with ease? Who will travel to the ships and implement the technology?

Seaxl® has developed all of their products with this in mind. The Microsoft® Excel® base has been used throughout which makes implementation easy and fast with minimum of fuss since this is a tool widely used across the industry. Seaxl® software is downloadable from the internet and can be purchased through a secure credit card link and furthermore, all programs come with detailed user manuals.

Seaxl® CashFlow comes with a difference. If you have ever tried to assess very quickly and accurately how deal opportunities that cross your desk fit into your overall fleet cash flows and how they play with all of your other obligations and commitments such as loan repayments, new building projects, special surveys or you are busy buying or selling second hand ships then you will appreciate the need for the Seaxl® CashFlow program.

Although your team of financial experts and bankers will find this tool very useful and will not be able to do without it they will not be spending hours or days on end trying to tell you what the results might be and how your game plan is unfolding. It is a cash flow program designed specifically for the shipping industry and is very easy to use. All Seaxl® Products have been developed under the Microsoft® Excel® platform for a reason. In all shipping offices and on board the ships staff is well acquainted with the Excel® platform. The time required to attain sufficient skill to use is minimal as all data entry is laid out in a manner that shipping people are already familiar with.

Preparing cash flow reports for any specific period (month, quarter, semiannual, annual) can be done by simply selecting the date range and applying the period increments. With such simple selection the program will automatically create a new cash flow scenario for you. Another great advantage is the ease with which you can consolidate different portions of your fleet by a simple selection of a Yes or No which will automatically exclude or include ships or companies in your calculations. This has great advantages when you want to assess a variety of options such as ship groups, financial groups and others.

The program allows you to update your initial projections with the actual results as compiled by your accounting department and amend current market conditions going forward. This will ensure that your actual current status is always available and up to date.

Each Datasheet is a report on its own and can be quickly filtered to your specific needs. This together with the CashFlow Projections and six pre-defined visual presentations will ensure that are always current and up to date with immediate and multiple reports.

In a newspaper article the Masters General Account was termed “the dreaded Portage Bill” as if Masters wanted to run away from it for fear that the damned thing would never reconcile. In many instances shipping companies create their own Excel® based versions of the Masters General Account which usually will not function properly or will require continuous checking in all data cells to ensure that no one has tampered with the formulas or to ensure that the wage rates applied to each seaman have been correctly applied. Seaxl® Masters General Account or Portage Bill has come to terms with all such problems that confront many shipping organisations.

The work for the Masters on board the ships has been reduced to simply selecting entries from drop down lists therefore reducing the amount of typing required to an absolute minimum. Validation checks for the Master have been introduced on all data entry forms to prompt the user as to the integrity of the data entered. No matter who prepares the MGA all entries will be uniform as the libraries on which the drop down lists are based and the wage scales loaded are controlled from ashore and for the whole fleet. The system ensures that there is consistency across the whole fleet.

Personnel Officers ashore that need to implement a variety of wage scales to cater for the mix of nationalities on board with differing rates of pay, bonus schemes, variety of pay currencies with resulting currency differences that one has to deal with have been taken into consideration and are centrally controlled with calculations made automatically. The Master simply allocates the wage scale applicable to each seaman and all calculations are immediately made available and payroll is calculated instantly. One major effort required by Masters in the majority of cases is to ensure that the closing and opening balances for the Crew Financial Position are correctly updated in each instance and transferred between accounts. This is done automatically by the Seaxl® Masters General Account by simply clicking on the appropriate buttons.

As for the accounting department all the relevant journal entries are automatically compiled reducing the departments work to a minimum allowing staff to act more as internal auditors ensuring that internal controls are applied correctly throughout the fleet rather than preparing tedious bookkeeping entries.

One of the major advantages of the Seaxl® system is the Import/Export utility available and automatic naming and file location for all projects. The file sizes that are being transferred from ship to shore or vice versa are very small as only data is being transferred in each instance and the speed and reduced costs to any shipping company are an added major advantage.

How do you go about setting targets for your daily OPEX and how do you monitor the performance of each department and each ship when it comes to costs, in an easy and understandable manner. Seaxl® Ships Budgets is a tool which can be easily adapted to any department of any shipping company and introduces consistency throughout in an easy, clear and understandable manner. All the datasheets are clearly laid out so users can complete details by simply selecting titles and entering units, amounts, percentages, periods and such like and let the program do all the hard work for you instantly.

Included are some very useful timesavers for instance, when it comes to computing payroll and overlap days, with immediate reports being made available from the few entries that you need to make. These shortcuts and decision makers really are very handy where you have a mixed crew complement with various nationalities on board paid in a variety of currencies and where duration on board is also mixed.  You can view results and projections immediately on a daily, monthly and annual basis.

Another useful tool is the compilation of the Technical and Repair costs. The Technical Detailed Jobs Datasheet allows you to build cost budgets for specific jobs methodically and in detail. Cost titles and cost centres are linked to pre-loaded libraries which are based with reference to an EU Study on Competitiveness and Benchmarking in the Field of Marine Equipment. Simple selection of cost titles and amounts on readily recognisable title headings quickly compile your budget projections. Of course if you wish to take further shortcuts you can simply enter the total amounts in the appropriate cells based on past experience or use both facilities; the detailed and the rule of thumb.

Included in the program are many shipping-related datasheets where all calculations are performed for you by simply entering easily recognisable data. The moving highlighter bars that follow your every move and easy navigation and toggling between related datasheets and reports make the program very easy and a delight to use by anyone.

Financial performance of a single ship or of the fleet as a whole is something that any shipowner would welcome to have available instantly on a single A4 sheet of paper.

Seaxl® The Ship is appropriately named to give you this information simply as a photographic image of the history from the date you purchase the ship through to its final sale or scrapping.

Information collected from source documents and updated in the program over the years builds an appropriate database that is useful not only to management but to many departments within the company.

The information compiled will assist any manager or owner, accountant or financial officer to make effective decisions on information that is always current and consistent no matter who makes the updates. Easy to follow datasheets allow the user to make updates without difficulty.

The many reports available will become a must for any accounts department which includes automatic calculations for depreciation, impairment costs, amortisation of special and intermediate surveys, profit and loss on sale and group fleet reports and others.

Seaxl® Company Secretary, the final program in our review and of the present Seaxl® package, takes control of all your companies within your group whether they are active, dormant or shelf companies ready for use.

In a very simple and effective way this program without much ado takes complete control of all the paperwork that is lying on the shelves of your offices and compiles the records that one always needs but never has readily available to keep abreast of what is what and who is who and where.

The program compiles databases for all of your companies, shareholders registers, officers register, register of transfers, registered offices and agents and document tracker utility of where your documents have been distributed, when and with whose authority.

All updates are made through specially designed data entry forms with ample pre-loaded document libraries that make it easy to use by simple selection and clicking reducing to an absolute minimum all typing which inevitably apply consistency throughout irrespective of who is in charge of keeping the records updated.

The program is not only useful to shipping companies but also to law offices that handle many companies on behalf of their clients will also find it very useful and reduce the amount of work required in reporting to an absolute minimum.

Conclusion:

Seaxl® Marine Software products is a collection of professionally and well designed puzzles that fit together and can be built one piece at a time or all together to give you an overall solution for each department and management reporting needs.

There are a variety of useful ready designed and installed tools that come with all Seaxl® products to assist you and make your work easier and more enjoyable. These include pre-loaded libraries and drop down lists to reduce typing, highlighter bars to ensure correct updating, import/export utilities that manage your file sizes, automatic file naming and file location to make your life easy, validation checks to ensure integrity of data, multiple well designed data sheets and reports that are laid out in shipping industry language and easy to understand, help and user manuals that guide you through at all times, forums that resolve any user problems and implementation guidance and much more.

Their website where one can view all their products at www.seaxl.com is well worth a visit. You can see their video presentations and screenshots on all products which will give you a very clear idea of what is available. It is well worth the time spent and will give you a very comprehensive idea of the quality of the products presently available and the ease with which you will be able to implement them across your company. Fresh, innovative and simple!

Source: The Maritime Executive. 16 August 2011

http://www.maritime-executive.com/article/seaxl-launches-innovative-marine-software-working-under-microsoft-excel