marcon international, inc. · by two wartsila 6r25 main engines producing 3940 bhp and a 50 tonne...

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

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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 2004

Tug Market Report Gentlemen: 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

March 1996 199 163 59 65 18 7 8 7 4 4 550 January 1997 178 159 83 65 19 6 9 5 5 2 532 January 1998 139 142 72 46 14 9 6 6 5 2 432 January 1999 174 143 83 81 35 10 2 5 5 1 536 January 2000 161 145 72 62 27 15 3 4 7 2 498 January 2001 138 133 81 72 34 20 5 7 8 2 500 January 2002 117 134 85 67 38 22 2 5 6 4 480 January 2003 152 176 96 71 40 21 2 4 6 5 573 January 2004 117 140 77 67 29 21 1 5 12 3 472 April 2004 111 134 72 68 29 23 1 6 11 2 457 July 2004 Worldwide 102 134 72 65 29 20 1 7 9 2 441 July 2004 U.S. 44 32 20 20 7 7 0 0 1 1 132 July 2004 Foreign 58 102 52 45 22 13 1 7 8 1 309 Avg. Age Worldwide 1970 1975 1977 1981 1985 1985 1990 1977 1977 1979 Avg. Age U.S. 1964 1962 1961 1965 1975 1979 - - 1975 1981 Avg. Age Foreign. 1974 1979 1984 1988 1988 1988 1990 1977 1977 1976 Avg. HP Worldwide 535 1,416 2,391 3,284 4,262 5,411 6,600 7,167 8,339 12,100 Avg. HP U.S. 488 1,526 2,363 3,198 4,364 5,436 - - 8,000 15,200 Avg. HP Foreign 571 1,381 2,403 3,322 4,230 5,398 6,600 7,167 8,381 9,000 Charter - Worldwide 29 58 29 32 21 11 4 8 11 6 209 Charter - U.S. 7 10 9 15 6 3 2 2 2 1 57 Charter - Foreign 22 48 20 17 15 8 2 6 9 5 152

Market Overview Of the 6,452 vessels Marcon currently tracks, 2,488 are tugs with 441 currently officially on the market for sale worldwide, down from 472 in January 2004 and a high of 573 during January 2003. Of these tugs for sale, 45% of the foreign and 100% of the U.S. tugboats are direct from Owners. 119 or 27% of the tugs worldwide, primarily foreign built were built within the last ten years, 53 are over fifty years of age, 5 tugs are 75 years of age or older and 12 have no age listed. Currently the oldest tugboats listed for sale are two built in 1908. One is a 60’ x 14’ single screw 365HP Danish tug and the other is a 100’ x 25’, 1800HP single screw U.S. flag tug powered with a Fairbanks Morse located on the U.S. East Coast. Counter-balancing these old ladies are 41 tugs built in 2003 and 2004 mostly in the 2-4,000HP range and generally foreign registered. In addition to those for sale, Marcon currently has 209 tugs worldwide listed as available for charter with 57 being U.S. registry. As always, in addition to those 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.

Marcon International, Inc. Tug Boat Market Report – July 2004

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Conventional single and twin screw tugs are still the most prevalent types with 207 twin and 162 single screw listed for sale. Six tugs are triple screw, 50 azimuthing and 17 tugs Voith Schneider tractor tugs. The majority of the tugs Marcon has listed for sale are located in the United States with 127 tugs, followed by 81 in Europe & the U.K., 64 in Southeast Asia & South Pacific; 58 in the Mediterranean & Black Sea, 30 in the Far East & Western Pacific, 22 each in the Mid-East and Canada, 14 in the Caribbean, 7 in Central & South America and 4 in Africa. CAT diesels still power most of the tugs listed for sale with machinery in 67 or 16% of the tugs Marcon has listed for sale. This is followed by General Motors / Detroit Diesels in 55, EMD’s in 42 and Cummins in 34 tugs. 10 tugs, generally older U.S. units, are powered by Fairbanks Morse. Yanmar leads in foreign manufacturers, powering 27 tugs followed by 22 Deutz, 19 Niigata, 12 Rustons, 11 each MWM’s and Wärtsiläs, and 10 Storks. 111 tugs are powered by machinery from other manufacturerers. Since April 2004, average global asking prices adjusted for age for tugs between 3,000BHP and 5,000BHP increased about 10%. While prices for tugs under 1,000BHP remained steady, those in the 1-2,000BHP range fell 9%, 2-3,000BHP dropped 2.5%, 5-6,000HP fell 10% and average prices for the 8 – 9,000BHP range fell about 12%. To-date during 2004, the ratio of actual sale to asking prices for all vessels and barges sold by Marcon averaged 90.51%. Due to the high prices paid for scrap during the spring and early summer 2004 there was a flurry of inquiries for “inexpensive” tugs in the 4 – 6,000BHP range. We have foreign buyers still looking for reasonably priced boats in this range for various trades. Inquiries coming into Marcon International have slowed slightly, but this seems more due to summer vacations than major changes in global or U.S. economies in spite of increases in energy prices and interest rates. Although U.S. growth in the first quarter grew at 3.9% vs. the hoped for and predicted 4.4%, there are cautious hopes that the U.S. economy could still end up growing by 4.5% this year - plus many global economies especially in Asia look positive. Most of Marcon sales since the April report have been in the international market. The domestic tugboat market, especially in the Gulf of Mexico and East Coast, has been at a “slow bell” with several operators reporting a considerable number of tugs lying idle. There are U.S. buyers, but they are only looking for “choice” pieces of equipment at the “right” price and many operators are still a little reluctant to invest in the future. Compared to the world market the number of twin screw U.S. flag tugs for sale is at a bare minimum. If the global economy continues to improve, we expect to see continuing tug and barge sales especially overseas. Sales are pending on two 76 – 106m deck barges plus we have several 120m – 140m barges and two 5,000HP plus tugs under discussion. Recent Marcon Tug / Barge Sales & Charters

The Cayman Island flag, DnV class, azimuthing tug “Boa Tor” (ex-Birk) was sold by Boa Offshore AS of Norway to Towage & Marine Assistance UAB of Lithuania. “Boa Tor” was built in 1994 by President Marine of Singapore, measures 110' x 37' x 16.2’ depth and is powered by two Wartsila 6R25 main engines producing 3940 BHP and a 50 tonne bollard pull. Tug is equipped with twin Schottel SRP 1212 azimuthing propellers. She was repositioned from the Mediterranean to Northern Europe where she will work in coastal towing and ship-docking. Marcon acted as sole broker in the transaction.


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Coloured Fin Ltd. of Trinidad sold their 4960BHP twin screw anchor handling tug 'Theseus' (ex-Geronimo Two, Britoil 3, Redoubtable, Chambon Alize, Sea Husky) to private interests. The vessel was sold "as is" with fire damage to the accommodation and bridge. The 130’ x 32.5’ tug was originally built by Brodogradiliste Tito of Yugoslavia as 'Sea Husky' and is powered with twin B&W 16V23LU diesels driving controllable pitch props in active kort nozzles providing abt. 80 tons bollard pull. The tug, renamed “Jupiter 6” was lying damaged in Trinidad at the time of the sale. This is the 5th sale or purchase Marcon has worked on with Coloured Fin. Western Wood Lumber Co. of Renton, WA sold their 16’ x 7’ x 4’ steel “log bronc” to Eastern Washington buyers. The tug was powered by a single GM 4-53 providing 100HP through a 360 degree azimuthing z-drive propeller and twin skegs. This will probably be the smallest tug Marcon will sell this year – or for many years, but they are a highly maneuverable little workboat that an experienced operator virtually can made dance. The concept of a log bronc was first developed in the 1950’s as a better and safer way of handling logs in mill ponds. They are basically a single screw, steel hull, miniature azimuthing tug with a flat bottom. The drive extends abt. 30” below the hull just forward of amidships and is usually surrounded a protective steel flat bar “basket”. When the drive is turned, the thrust hits the inside surface of a skeg at an angle, acting like a rudder and turning the boat much quicker than a single skeg. They can be readily seen working logs around the Pacific Northwest. We are keeping our fingers crossed and hoping to report the sales of two additional 5,000HP plus tugs in the near future. In addition to the tugs, Marcon has concluded a number of recent large barge sales since April.

Manta, Ltd a subsidiary of Terminales Maracaibo of Venezuela sold their 256’ x 68.2’ x 20.3’ Ocean tank barge ‘Aura Luisa’ (ex-Foss 98, ex-Hull 108) to Overseas Bureau Shipping Inc. of Panama. The ABS A1 class, single bottom oil tank barge, was built in 1960 at Puget Sound Drydock & Bridge and rebuilt in 2002. She carries 40,000 BBL of gas-oil in 14 uncoiled tanks with a deadweight capacity of abt. 6402 tonnes on a loadline draft of 17’. The new Owners will tow her to Panama for service in local trade. Marcon acted as sole broker for the sale. This is the third ocean tank barge sold by Marcon this year.

San Antonio Maritime of Puerto Rico sold the ocean hopper barge, “Mary Cecilia” to U.S. West Coast buyers who will use it for cement storage on the Columbia River. Barge was built by Sea Train Shipbuilding of Brooklyn, New York in 1979 as a container barge and converted / rebuilt to a closed dry bulk carrier in 1984 and was designed with a deep notch to integrate with a 6000bhp tug. Overall barge dimensions are 452’ x 76’ x 36’, and deadweight capacity is 18,816 LT. This is the second time Marcon brokered sale of this barge within the last couple of years.

Columbia Coastal Transport LLC of New Jersey sold their 250’ x 72’ x 14.5’ ocean deck barge “Norfolk Trader” to Callaway Barge Lines of Florida. The U.S. flagged, ABS +A1 classed and ocean loadlined barge was built by Misener Marine of Tampa, FL in 1981 as a double raked, flat deck barge and later fitted with “I” beams on deck for hauling containers between various ports on the U.S. East Coast. Marcon acted as sole broker in the sale. This is the third ocean deck barge Marcon has sold so far this year totaling abt. 32,000 deadweight tons capacity.


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New Construction, Shipyard and Conversion News Sause Bros. “on-again, off-again” project of rebuilding the tug “Klihyam” has been completed and christened. This hull had been a fixture at SOMAR for 20 years. “We don’t like to rush into things,” explained Dale Sause. The hull was built in 1977 by Halter Marine in New Orleans and Sause purchased it from Halter in 1982 and tandem towed it to Coos Bay, Oregon behind the tug “Roughneck”. It sat moored at the Market Street dock for a time until it was towed upstream to the SOMAR shipyard barge slip. For many years the boat was referred to as the “Hulk” until it was officially named “Klihyam”, after an earlier boat, which sank on the Siuslaw bar. “Klihyam” took a back seat to many other projects over the years as other boats were rebuilt and repowered and new boats built. Around 1993, a committee consisting of both port and boat captains, port & boat engineers, and the engineering department was formed. Their function was to aid in the design of a vessel that would have good handling characteristics, provide a comfortable crew environment and be easy to maintain. Based on these recommendations, the EMD engines and Reintjes gears were ordered in 1998. Props, shafts, nozzles and rudders were ordered in 2000. A new second deck was designed and a trunk for fresh air ventilation fabricated. The old wheel-house was removed and replaced with a more modern one with better visibility. A lot has been accomplished in 22 years. The original “Klihyam” was built in Bandon, Oregon from Port Orford cedar in 1908 and fitted with a coal fired steam engine. She was repowered with a Scandia Pacific 800HP 42 ton diesel in Seattle by the U.S. Army who used her in the Aleutian Islands during World War II. After purchased by Sause in ‘46, she was repowered with an EMD 12-567ATL and gear from an LST landing craft in ‘49. She sank in 1958 off the Siuslaw River Bar after being rammed by Sause’s tug “Natoma”.

Columbia Coastal Transport, of Liberty Corner, New Jersey, has taken delivery of its newest container super-barge “Columbia Boston”. The new 912TEU barge is sister to the “Columbia Elizabeth” that was put into service four years ago. “Columbia Boston”, named for one of 11 ports that the company serves on a regular basis, will be available to transport empties, full container and project cargoes moving between ports on the U.S. Eastern Seaboard. "This is the second super-barge we've built for the new millennium," said Columbia Coastal president, Bruce Fenimore. "With the government's focus on short sea shipping, our all-water transportation alternative for cargo and empties moving between ports can help alleviate port and highway congestion moving forward." Built by VT

Halter Marine , based in Pascagoula, MS, “Columbia Boston” is a 343' x 94' x 21' deck cargo barge specially fitted to carry 20’, 40’ and 45’ ISO containers, including reefers. Built to ABS Maltese Cross A1 Barge standards, the barge capacity is 912 TEUs with a deadweight of 9453 long tons. Columbia Coastal Transport operates 11 U.S. flag container barges in regularly scheduled feeder service operations to and from ports on the U.S. Atlantic coast, plus Freeport Bahamas. Columbia Coastal also operates an Albany Expressbarge(SM) service with two weekly sailings between the Port of NY/NJ and Albany, NY. Several K-Sea Transportation’s tugs are going through upgrades and repowering. The 95’ x 28’ “Maryland” (ex-Esso Maryland) repowering at GMD Shipyard has been completed and the tug, now with her new Wärtsilä’s totaling 3010BHP instead of the old Fairbanks Morse diesels, is back to work. The tug was built in 1962 by Jakobson Shipyard; Oyster Bay, New York. Upgrades on the 120’ x 37’, 4860HP integrated tug “Volunteer” (ex-Energy Altair) with Alco diesels have also been completed. After christening ceremonies in Tampa, Florida the tug went to work for Westport Petroleum on a voyage from Houston to the Bahamas and then Florida. “Java Sea” is just completing repowering at GMD Bayonne from twin EMD 12-645E6’s to Wartsila 6L26 diesels and Reintjes WAF 2365H 5.56:1 gears. This will increase her horsepower from 3,000BHP to 4700BHP. The 130’ x 35’, 5600BHP “Irish Sea” (ex-Clipper) built in 1969 by Main Iron Works will be going into Bender Shipyard to get an Acomarin Push Pin System installed.


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Crowley’s petroleum services group took delivery of the “Avik”, to serve in their oil transport and distribution fleet. The 76’ tug was designed by Crowley’s Vessel Management Services, built by Dakota Creek Industries in Anacortes, WA, delivered on June 3rd and has been put into service in Alaska. Tug was designed for shallow water and ocean towing with a raised bridge for improved visibility, electric tow winch for coastal towing and fendered push knees for river or beaching operations. “Avik” is powered by three CAT 3406E’s generating 1,350 HP. It will handle barges transporting fuel and general cargo to communities in Alaska where shallow water and lack of docking facilities is common, making a beach landing to load and unload cargo. The tug also incorporates environmentally-friendly features such as engines meeting IMO emissions requirements, on board holding tanks to retain treated sewage, electric deck machinery instead of hydraulic and fuel tanks surrounded by void spaces to minimize the chance of fuel spills. Crowley is also adding another barge to its fleet. Barge “180-1”, also built by Dakota Creek, is scheduled for delivery in July. The 180’ combo double hull, tank / deck barge features a dual anchor system, coated cargo tanks, a pedestal-mount deck crane, portable cargo ramps and onboard oil spill response equipment. “180-1” will operate in either a push mode or as a conventional towed unit.

Bollinger Quick Repair of Harvey, LA repowered and modified the 40 year old, 150’ x 35’ x 20’ “Guardian” (ex-Gale B, ex-Margaret Moran) for Velvet Maritime of Hahnville, LA. Tug was built by Southern Shipyard in 1963 and originally powered with Fairbanks Morse diesels. It was previously owned by Midland Enterprises (Ohio River Co.) and part of a tug/barge unit with the hopper “Martha B”. "It was in good shape with a good price," said Andre' Ledoux, president of Velvet Maritime. "It had marketable power that we wanted to upgrade to meet new regulatory requirements, practically new Lufkin gears, a good Detroit Diesel auxiliary engine package, good Markey deck equipment, a raised

pilothouse and was not undersized or oversized for blue water ops." Bollinger Quick Repair drydocked the tug and began repowering first by disconnecting all exhaust, cooling, fuel and lube piping. Then they cut the stacks off and removed her main engines. Engine foundations were modified to accommodate two new owner-supplied CAT 3606’s developing a total 4640HP that were mated to the Lufkin 5.818:1 gears. Tailshafts were reconditioned and ABS inspected. While other work was under way, Bollinger's prop shop reconditioned the props by fairing up all blades, welding nicks and cracks, checking and correcting pitch, grinding, balancing and polishing all blades. Rudders, bulwarks and rub rails were cropped and sections of ballast tanks renewed as necessary. Sea valves were removed, inspected and replaced and sea chest screens replaced after cleaning and painting. Engine cooling water systems were upgraded with new Fernstrum. Installation of several owner-provided upgrades were carried out, such as new speed log and transducer, as well as GMDSS. Additional work was done on the stuffing boxes, steering rudder trunks, rudder linkages, box vents, stern fuel vents, exhaust system, bilge, ballast and fire system, anchor chain & locker and deck boards. Maritrans, Inc. of Tampa Fl expects to complete the rebuilt of their 132’ x 37’ tugboat “Honour”, which works with the barge “Ocean States”, in the second quarter of 2004. The rebuild contract, which was initially awarded in October 2003, is expected to have a total cost of approx. $6.5 million, of which $3.7 million is a fixed contract with the shipyard and the remainder is material to be furnished by Maritrans. The rebuild of the “Ocean States” is expected to also be completed in the second quarter of 2004 and will reenter the fleet with the new name “M 214”. This is the fifth large single-hull barge being converted to a double-hull configuration. The rebuild of the barge is expected to have a total cost of approx. $25 million, of which $18 million is a fixed contract with the shipyard and the remainder is changes in the scope of work and material to be furnished by Maritrans. In addition to the double-hull rebuild, ”Ocean States” will have a 30,000 bbl mid-body insertion. As of March 31, 2004, $19.8 million has been paid to the shipyard contractor for the project. As originally built in 1975 by Avondale Shipyards, “Ocean States” was 476’ x 84’ x 34.5’ with a capacity of abt. 184,200bbl and 22,504dwt.


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In March 2004 the Ukraine “Shipyard Named After 61 Communards” held a ceremonial keel laying for a 720 displacement ton, multi-purpose 34.2m x 12.8m, 60mt bollard pull tug for SE "Delta- Pilot". Present at the keel laying were the Director General of the shipyard V.A. Agafonov, director of SE "Delta-Pilot" Bezdolny, deputy director of shipping & inland water transport department of ministry of transport of Ukraine V.A.Sudarev, Admiral I.V. Kasatonov of Russia's Navy and representatives of the regional administration, bank, Rolls-Royce, Caterpillar and others. The anchorhandling/salvage/long distance towing vessels ”Fairmount Sherpa” and “Fairmount Summit”, now under construction at Niigata Shipbuilding & Repair in Japan for Fairmont Marine BV of Rotterdam, will be the most powerful tugs yet built under the Dutch flag. Fairmount President Henk van den Berg says: “The new tugs are building at Niigata, Japan. We will commission ‘Fairmount Sherpa’ in May 2005, followed by ‘Fairmount Summit’ three months later. When these state-of-the-art, 200 tonnes bollard pull newbuildings join the fleet they will operate with the time-chartered tugs De Hong’ and ‘Hua An’. In addition, we have the 50,000 dwt superbarge ‘Zhong Ren 3’ world’s largest semi-submersible barge) and Fukada’s 24,000 dwt semi-submersible barge ‘Ocean Seal’. With this substantial fleet, we can meet global long haul towage and heavy transportation requirements for a growing international client base.” The 75 x 18 x 8m tugs will be powered by a complete Wärtsilä propulsion system, comprising Wärtsilä engines, Wärtsilä gears, Lips CP props, Lips high efficiency nozzles and a Lipstronic integrated control and maneuvering system. The four Wärtsilä 6L32 diesels in each tug deliver a combined maximum output of 12,000kW at 750 rpm. Engines are connected to a pair of twin-in/single-

out gearboxes with a secondary driven 1200kW power take-off for electricity generation at sea. The two Lips CP props run in special high-performance HR nozzles, which generate up to 8% greater thrust than conventional nozzles, in both bollard pull and free-running conditions. This means that the Niigata-built tugs will have a maximum bollard pull as high as 200 tonnes and still maintain a free-running speed of 16.5 knots. The Lipstronic control system ties together control and monitoring of the machinery and includes a Lipsstick joystick for simultaneous control of prop, rudders and thrusters. Fairmount’s project was severely delayed when the Singapore shipyard that originally contracted to build the vessels ran into financial difficulties

and declared insolvency the end of 2003. When these financial troubles appeared on the horizon and the shipyard failed to produce contractually agreed refund guarantees and performance bonds, Fairmount and MPC jointly decided to stop the project in Singapore and contract with another yard. To protect investors’ interests and guarantee delivery time, a first class yard with ample financial backing was found in Niigata Shipyard, member of the Mitsui group. Discussions are being held for a third vessel as the market asks for modern long distance towing vessels to replace aging tonnage which is now serving the oil and gas industry. Fairmount believes that warranty surveyors will shortly no longer accept bollard pull certificates older than five years which will mean that well known, old tugs now working in the market will have to be retested. This could lead to a de-classification of a significant number of towing vessels, rendering some unsuitable for world-wide towage of the largest and most valuable objects, such as FPSO’s. Foss Maritime’s tugs “Benjamin Foss” and “David Foss”, known as “Super D’s” and considered to be among the workhorses of their Pacific Northwest fleet, are undergoing extensive overhauls that will extend their lives by about 15 years. The two CAT D398 engines on each tug are being pulled and replaced with remanufactured engines. Both tugs are receiving new marine sanitation systems and other upgrades, including renewal of steel where necessary. The work is being performed at Foss Shipyard. “Benjamin Foss” was in the yard in April and will be drydocked in August. “David Foss” was drydocked last year and back in the yard in January 2005. Both tugs were built by Main Iron Works in Houma, Louisiana in 1980. Regular work for the two tugs include towing chip barges from Shelton to Tacoma, WA and towing barges with Boeing airplane parts to Everett from Puget Sound’s large ports. The tugs also regularly tow Navy oil barges and barge loads to Canadian wood chips.


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The end of February, Rosetti Marino Shipyard of Ravenna delivered to Augustea Imprese Marittime e di Salvataggi of Naples the “Sebastiano” currently being used in the port of Augusta, Sicily where it mainly carries out mooring and unmooring operations and assistance. At a cost of roughly 4,500,000 euros, the tug was built under RINA surveillance and is equipped with two Wartsila 6L26 engines each of 1,650 kw at 1000 rpm combined with Schottel SRP 1212 FP azimuthing props. The construction of “Sebastiano”, which is fitted with a Fire-Fighting 1 system, started in January 2003. During the sea trials the vessel reached a speed of 12.6 knots and attained a bollard pull of 62 tonnes from the aft winch and 57 tonnes from the bow winch. The Augustea company now runs a fleet of 23 vessels (tugs and anchor handling tugs) and in the second half of 2004, will take delivery of the sister tug of “Sebastiano” again from the same shipyard in Ravenna The first of a three-vessel order has been delivered to the Indian Navy by the Tebma Shipyard located on the Indian East Coast. Each tug is to be powered by a pair of V-12 cylinder Cummins KTA38M2 main engines each developing 1200 HP continuous duty at 1800 RPM. The 2400 HP tugs have a 25-ton bollard pull. Engines for the second vessel in the series have just been delivered to the shipyard. The photo is of the first tug, named INS Bhim.. The designation INS that precedes the name denotes the vessel as Indian Naval Service. Fairplay reports that Wilson, Sons of Brazil is to receive US$19 million from the Brazilian Merchant Marine Fund (FMM) to build five new tugs at yards in Brazil. Wilson, Sons has 60 tugs in operation and is the biggest tug operator in South America. Wilson, Sons also operates a shipyard with headquarters in Rio de Janeiro and branches in Guaruja and Niteroi. Another US$1.9 million is to be loaned by BNDES, which administers the FMM, to Wilson, Sons so that it can upgrade its Estaleiro shipyard. It will then be able to construct 3,000-tonne PSVs for the Brazilian oil industry. The shipyard is specialized in the building of tugs, patrol boats, ferries, port support craft, supply boats and other craft in steel or aluminum up to 800 tons. The shipyard located in Guarujá - São Paulo, possesses a combined system of dry-dock/slipway of 200m length, 16m breadth and a maximum depth of 5m, with a capacity for the docking craft with a light displacement of up to 1,500 tons. The 5,000 hp azimuthing tug “James R. Moran” was launched in June at the Washburn & Doughty shipyard in East Boothbay, Maine. The sister-tug “Kaye E. Moran” had been launched in October. The two new tugs were designed to assist some of the largest LNG tankers in the world calling at a newly-reactivated Dominion Cove Point Liquefied Natural Gas storage terminal on Chesapeake Bay. The tugs are 92’ with ship assist winches on bow and stern and up to 10,600 gpm fire-fighting capability. They are powered by twin EMD 12-645F7B main engines providing 5,100BHP at 900RPM and Rolls Royce 1650H z-drives. Bollard pull is estimated at 135,000 pounds. The tugs have a crew capacity for eight, but will generally operate with three persons. “James R. Moran” is the tenth azimuthing tug built by Washburn & Doughty for Moran Towing Corp. of Greenwich, CN. Seabulk International, Inc. licensed its patented SDM(TM) (Ship Docking Module) technology to a major European operator. The new licensee may construct two Ship Docking Modules for use within Spain. "SDM(TM) was chosen over a number of competing technologies," commented Kenneth M. Rogers, President of Seabulk Towing, a subsidiary of Seabulk International. "The licensing agreement extends the SDM's(TM) reach beyond the U.S., where it has proven itself over the last seven years, and validates its application in ports around the world. We believe it will stimulate additional interest in this unique vessel, and we invite inquiries from other tug operators about licensing the SDM(TM) technology for themselves." Developed with assistance from the Elliott Bay Design Group of Seattle, it is the first vessel of its kind that can generate full power in any direction -- forward, backward or sideways. It has a maximum speed ahead and astern of 12.5kn and, in the transverse mode, of 6kn, coupled with an ABS-certified bollard pull of 120,000 lbs. in any direction. Powered by twin 360º rotating Z-drives fore and aft and generating 4,200HP, the SDM(TM) has the ability to safely maneuver ultra-large vessels within narrow channels and environmentally sensitive waterways. Seabulk Towing currently operates four SDMs(TM) -- “New River”, “St. Johns”, “Escambia” and “Suwannee River” -- which together have docked thousands of commercial and military vessels in Port Everglades and Tampa, Fl and Mobile, Al.


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Tom Bender, President of Bender Shipbuilding & Repair Co., Inc. of Mobile, Alabama confirmed the opening of Astilleros Bender S. De R.L. De C.V. in Tampico, Mexico. Astilleros Bender (AB) is a wholly-owned subsidiary of Bender. The shipyard is located on the south side of the Panuco River 10 kilometers upstream from the Gulf of Mexico and across from the city of Tampico. The yard consists of 125 acres of land and 3000’ of river frontage accessed by a 28’ deep, maintained channel . Astilleros Bender currently is concentrating on ship repair and has in operation a 3000 ton lift capacity dry dock and some 1500’ of river side repair facility open for business. A.B. recently completed a docking evolution and repair job for Saam Remolques S.A. De C.V. on its ship docking tug "Purepecha" and enjoys a certain backlog of bookings in June and July. The yard's current capabilities include 1800 amp riverside electrical service and compressed air for sand blasting, mobile cranes from 40 to 200 ton capacity and all tools and equipment required for ship repair operations. A.B. is also prepared and equipped to do topside ship repair in the port facilities of Tampico, Alta Mira and Tuxpan as well as it’s own wet berth area at the shipyard. Tom Bender also stated: "The current repair activity at Astilleros Bender is only the start of our involvement and corporate development in Mexico. We are currently designing a larger drydock to be constructed at A.B. to expand our service to customers in Mexico and the region and intend to have it in operation within 6 months. We also are developing plans to build a new construction facility similar to what we have in Mobile. We intend to create a world-class ship repair and new construction facility in Tampico that will make internationally competitive services and products available to our customers." News from “Tugbitts” ( Quarterly Journal - Tugboat Enthusiasts Society of the Americas) Bob Hill of Ocean Tug & Barge Engineering is designing an ATB for a Russian customer. It may well involve the largest barge in the world since it will be double-hulled and will carry 400,000bbl of crude oil from Caspian Sea oil fields. The tug will have 15,000 hp. Not less than three ATB’s or more than twelve ATB’s will be built by a Caspian Sea builder. Will the new barges be the world’s biggest? According to its website, Maritrans’ “Ocean 400” barge carries 380,000 bbl. Other sources indicate it carries 418,131bbl and is the world’s largest oil barge, double–hulled, 56,174 dwt, and 640’ long…….Boston-based Constellation Tug bought plans for a Robert Allan- designed Z-drive tug and builders have been contacted. The tug is a U.S. version of Allan’s standard azimuthing stern-drive 28/65 design (which can be decoded as 28m long and 65 tons bollard pull). Rumors are that it will be stationed at Providence, most probably for the proposed LNG facility that may go on-line in late 2005. Constellation also chartered Dann’s “Shannon”, a 3,200hp twin screw tug and it will join “Tucana” and “Ursa”, already at Providence, as Constellation prepares for LNG tanker activity in that area, all of which leads to the next item……Three LNG-unloading facilities are planned for the head of Narragansett Bay, at Fall River, Somerset, and Providence. Plans for a multi-million-dollar plant for importing LNG into Rhode Island became official when KeySpan Energy and BG LNG filed their first application to the Federal Regulatory Commission. The Field’s Point facility in Providence, presently truck-supplied, would be upgraded. If approved, the plant could start receiving shipments by sea late in 2005. It would be the nation’s fifth LNG terminal. But LNG tankers with beams of 145’ would have to pass through the Brightman Street Bridge, which has only a 98’ opening. Its replacement with a newer bridge with wider opening may not happen until 2007 or 2008 and then the old bridge must be removed. ……Another job opportunity for big docking and escort tugs appeared when Excelerate Energy LLC, based in The Woodlands, TX, announced plans to erect an offshore LNG-unloading terminal ten miles southeast of Gloucester, MA. Scheduled now to be in business by the end of 2006, it would be the second such installation in the nation, following after Excelerate’s Deepwater Port some 116 miles off Louisiana in the Gulf of Mexico. Available options for such offshore terminals include storage with supply interruptions whenever a tanker disconnects, no storage with two offloading systems and one vessel connected at all times, offshore liquid storage, and underground gas storage with pipeline connection to shore for constant flow regardless of weather conditions. The new Excelerate facility will probably use the Submerged Turret Loading Buoy System because it has worked well in loading crude oil offshore. Liquid LNG will be changed into its gaseous form aboard the tanker and piped through 11.8 miles of 24” pipeline to the so-called Hubline, the submerged pipeline from Beverly Harbor to Braintree discussed in recent issues of TugBitts……And in connection with above news, please keep in mind that Providence Steamboat is having Washburn & Doughty build it a 92’ Z-drive tug


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without winch and firefighting equipment but ready for their installation….. The latest delivery from Eastisle Shipyard arrived in Halifax May 12th en route to her new home port in the Dominican Republic, “Caucedo” is a 5,500bhp azimuthing stern drive of the same design as the several others built by the Irving-owned shipyard. She is equipped with a ship-handling winch forward and a patent towing hook aft. A sister will be delivered next month and it will be a firefighting tug…… Thames Towboat has a new contract for providing the U.S. Navy with tug services at New London, Connecticut): For this contract, Thames is building a new Z-drive tug. The boat is under construction at Eastern Shipbuilding , and should be ready to work in September or early October. In the meantime, Thames has short-term chartered Edison Chouest’s “C-Tractor 6”, already at work at the submarine base. The two companies have split the work during the previous five years. The new boat’s hull is a standard Jensen Maritime Consultants’ design, with aft Z-drives, “similar to the tugs everyone is building of late,” Adam Wronowski says, “That’s the best configuration—and that’s been our point all along.” Following is latest breakdown of Current Commercial Shipbuilding Contracts from MarineLog and Colton Co.:

Type Name or Hull # Customer GT Size $mm Delivery Dakota Creek Shipyard (Anacortes WA)

Tug Avik Crowley Marine 76 ft., 1350 hp Jun-04 Eastern Shipbuilding (Panama City FL)

Tug Shannon McAllister McAllister Towing 5,150 hp Jul-04 Shoal Buster Candace Weeks Marine 84 ft. Aug-04

Manitowoc Marine - Bay Shipbuilding (Sturgeon Bay W I)

Tug Firm Penn Maritime 6,000 hp Dec-04

Tug Option Penn Maritime 6,000 hp Apr-05

Providence Steamboat Company (Fall River MA)

Tug Firm Providence Steamboat 92 ft., 4,000 hp 2004 Steiner Shipyard (Bayou La Batre AL)

Tug Firm Undisclosed 67 ft. 2005 VT Halter Marine (Pascagoula, Moss Point and Escata wba MS)

Tug C 171 Vessel Management Services 9,280 hp 7.5 Mar-06 Tug C 172 Vessel Management Services 9,280 hp 7.5 Aug-06 Tug Option Vessel Management Services 9,280 hp 7.5 Tug Option Vessel Management Services 9,280 hp 7.5 Tug Firm Lockheed Martin 30 m 9.0 4Q 2005 Tug Firm Lockheed Martin 30 m 9.0 4Q 2005

Washburn & Doughty (East Boothbay ME) Tug James R. Moran Moran Towing 235 5,000 hp Jun-04 Tug Firm Providence Steamboat 92 ft., 4,000 hp 2004

Western Towboat (Seattle WA) Tug Ocean Titan Western Towboat 120 ft., 5,000 hp


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Recent News – North America Crowley Marine Services tugs, once a fixture in San Francisco Bay from the early 1900s to 1996, have returned home. Earlier this week Crowley re-launched its ship assist and escort service in the Port of Oakland with two high horsepower tugs - the “Tioga” (Z drive – 4400HP) and the “Sea Robin” (twin screw – 5000HP). Crowley’s Oakland operation is located at the 9th Avenue terminal. From there Crowley is now providing traditional ship assist services to carriers, typically container shipping companies, as they enter and leave the port and its surrounding areas. Crowley is no stranger to the San Francisco Bay area. The company was founded there in 1892 and provided ship assist services from the early 1900’s until 1996 with its venerable “red stack” fleet of tugs. In addition, Crowley’s corporate headquarters remains in downtown Oakland. "Crowley Maritime Corporation has had roots in San Francisco since it was founded there 112 years ago,” said Tom Crowley Jr., Chairman, President and CEO. “It is only fitting that we bring our ship assist operations back to this port where it all started. Our customers have been asking us to bring our high level of service back to the Bay Area; we listened and are excited to be able once again to provide them with services." “In today's competitive ship assist market, it is important for us to be able to provide full ship assist coverage to our customers in all of the West Coast ports in which they call,” said Rob Grune, VP and General Manager, Ship Assist & Escort Services. “Our re-entry into Oakland will enable us to do that." Returning to Oakland would not have been possible without the support of the company’s operating unions, the International Organization of Masters, Mates and Pilots (MMP) and the Inlandboatman’s Union of the Pacific (IBU). Marcon assisted in the purchase of “Tioga” from Coos Bay Pilots in 1998. Foss Maritime’s “Barbara Foss” on 22th May finished its fifth season as a rescue tug in the Strait of Juan de Fuca in the Pacific Northwest after successfully assisting four sea-going vessels since last fall. Stationed at Neah Bay, Washington since last October, “Barbara Foss” had its first assist of the season on 9th October when the 98’ tug “Altair” experienced an engine failure while towing a tank barge to Portland, Oregon. The barge was loaded with more than 3 million gallons of diesel oil. The other three assists during the 2002-2003 winter season involved the container ship “Cristoforo Colombo” on 29th October, the fish-processing vessel “Seafreeze Alaska” on 19th January and the container ship “Buxsund” on 30th January. All together, 22 ships have been helped since rescue tugs have been operating in Neah Bay in 1999. The tug’s primary duty is to respond to ships in distress to prevent them from spilling oil along the coast in the Strait. Winter storms create a higher risk of oil spills from the 9,000 transits by large cargo vessels and oil tankers through the Strait each year. Funding for the tug has come from a mix of state of federal sources, on a year-by-year basis, until this spring when Governor Gary Locke signed a new law that will provide a stable source of funding for the next five years. “We appreciate the support for the tug by the governor and the legislature,” said Dale Jensen, who manages Ecology’s spills program. “Protecting Washington’s coast and the Strait of Juan de Fuca is extremely important to our mission, and the tug is an excellent prevention tool.” Washington’s outer coastline and the Strait of Juan de Fuca area are considered some of the most pristine marine areas in the lower 48 states. A major spill could hurt Washington’s fishing and shellfish industries, endanger salmon runs, kill birds and marine animals, ruin public beaches and dampen tourism, said Jensen. “Barbara Foss” is a 4300HP twin screw tug. A Foss fleet of four tugs and two lightering barges in mid-June was set to leave for Foss’ 15th season at the Red Dog Mine on the remote Chukchi Sea in Northwestern Alaska. The tugs “Iver Foss”, “Sandra Foss”, “Stacey Foss” and “Jeffrey Foss” plus the barges “Noatak” and “Kivalina”, were expected to arrive at the job site for early July startup, ice conditions permitting. The barges carry zinc and lead ore concentrate from the shallow-water port to bulk carriers at anchor. This season’s tonnage is expected to be similar to last year’s, in the range of 1.35 million metric tones, said Foss VP for Marine Transport & Petroleum Don McElroy. The Foss Red Dog fleet normally returns to Seattle in late October or early November.


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In May, Seabulk International, Inc. reported net income of $5.7 million on revenue of $82.5 million for the quarter ended March 31, 2004. In the year-earlier period, Seabulk had net income of $1.6 million on revenue of $77.2 million. Operating income in the current quarter was $10.4 million compared with $10.8 million in the prior year. "Strong performances from our tanker and towing businesses offset continued weakness in the offshore Gulf of Mexico market and enabled us to post a net profit for the quarter," commented Chairman and CEO Gerhard E. Kurz. "….Looking ahead, the tanker and towing businesses should continue to perform well, and we anticipate mixed offshore earnings with domestic weak and international strong." Seabulk Towing, which operates a fleet of 26 tugs in seven southeastern ports and the offshore Gulf of Mexico, had revenue of $9.6 million, representing 12% of total Company revenue for the quarter, compared with $9.3 million a year ago. Operating income of $2.5 million was down slightly from $2.7 million due mainly to higher maintenance and fuel costs. As previously announced, Seabulk Towing's innovative Ship Docking Module (SDM)(TM) was chosen over a number of competing technologies by a leading European tug operator, which purchased the rights to build and operate two SDMs(TM) within its home territory of Spain. Seabulk Towing currently has four SDMs(TM) serving customers in Port Everglades (2) and Tampa (1), Florida and Mobile (1), Alabama. Seabulk’s four AHT/Tugs in West Africa averaged an 86% utilization with a day rate of US$ 6,193 for the first quarter 2004 compared to 82% and $6,053 the previous quarter and 72% / $6,131 for the corresponding period in 2003. In the Middle East, their five AHT/Tugs averaged a utilization of 80% with a day rate of $4,565 compared to 94% and $4,855 the last quarter 2003 and 56% utilization at $4,457 for the first quarter 2003. Held-for-sale and bareboat-chartered out vessels are excluded from the vessel count. Recent News - Africa A new towage contract has started up for the port of Douala, in Cameroon, West Africa. Already present in all main French ports, in Senegal and the Ivory Coast, Groupe Bourbon's specialist subsidiary in the towage, assistance and salvage field, Les Abeilles , opened for business in Cameroon. Les Abeilles won an international call for tenders for the overall management of towage and inshore pilotage in the port of Douala This 10-year contract will involve more than 90 staff-members and require the services of 4 tugboats and 2 inshore pilot boats, both newly off the stocks. The general manager of Les Abeilles, Bruno de Chateauvieux, assessed the start-up of this contract: " With a heavy volume of business in line with our initial forecasts, this Cameroon contract, which began in May, got off to a good start. The contract itself underscores our determination to re-establish Les Abeilles on the international map. " Fairmount Marine advises that after delivery of barge “Ocean Seal” at Morgan City, LA for her commitment to Heerema, “Hua An” was fixed by Torch Inc. for towage of lay / bury barge “Midnight Brave”. The departure from Port Fourchon was scheduled for early July 2004. Destination for “Midnight Brave” is Malabo Equatorial Guinea. The Togolese tugboat “Pitea” reportedly carrying 374 kilograms of cocaine was intercepted and seized by a French warship off the coast of Ghana, West Africa. The tug was taken into the port of Lome after receiving information from the Spanish intelligence services. The drugs came from Venezuela and was bound for Europe. Eight crew members including six Venezuelans, one Ukrainian and the tug’s Cuban Captain were arrested. SMIT Salvage successfully concluded ‘Cape Africa' salvage operations with the holed bulk carrier's entry into the Port of Cape Town, South Africa, on 14th July, under tow by the SMIT Salvage tug ‘SMIT Amandla'. The Lloyds Open Form was terminated on Thursday 15th July following an operation that lasted 81 days and included the removal of some 1900 tonnes of bunker fuel as well as the removal of 140 000 tonnes of iron ore cargo. The 150 000 dwt bulk carrier ‘Cape Africa' is owned by U-Ming Marine Transportation Corporation and was built in 1991. It was carrying a cargo of iron ore and was en route to the Far East from Ponta da Madeira in Brazil. The Master and crew were flown off the casualty on Wednesday 28th April as a precautionary measure after reporting extensive structural damage in hold No. 3 earlier. The fuel transfer operation was conducted some 160 miles west of Cape Town, with the ‘Cape Africa' then being towed into False Bay by the ‘SMIT Amandla' for the cargo lightening operation, which involved the use of a specialized cargo removal vessel.


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Recent News – Europe Groupe Bourbon of Paris reported a satisfactory first quarter, with results matching expectations. The quarterly consolidated turnover increased by 10.2% to reach 264.5 million euros (an actual growth rate of 16.4% at constant exchange rates) and contributed to the business plan for 2003-2007. Towage & Assistance business contributed to the quarter with an increase of 4.2% from 25 million Euros first quarter 2003 to 26.1 million euros first quarter 2004, in line with general economic trends in France and Africa. The greatest increase though was from the offshore division which increased 28.8% to 52.8 million euros for the first quarter of 2004. Multraship Salvage of Terneuzen completed the salvage of the 38,391 dwt Egyptian-flag “Domiat”, which grounded near Copenhagen on June 7. The LR-class vessel was loaded with 33,000 tonnes of potash, bound from St Petersburg to India, when it ran aground at speed on a rocky shoal. Multraship managing director Leendert Muller says, “This was a tricky job given the lack of suitable discharging equipment available in the Danish area to handle the cargo on site. We were able to mobilize teams from Terneuzen and get the job done with no pollution and no leakage. The ship is now reloaded and on its way. This confirms our ability to provide rapid reaction salvage services right across the European region.” A salvage team of eight under the direction of Multraship salvage officer Jan Snip used three tugs, including Multraship’s 42 tonne bollard pull “Barracuda”, a barge and a grab system to lighten, refloat, reposition and reload the vessel. In May, at the General Meeting of Shareholders, Smit International announced that the Salvage Division in particular has had an excellent utilisation in the first quarter of 2004. The most significant contributors to this result were large salvage operations in Pakistan, South Africa and Norway. The other SMIT Divisions performed in line with expectations in the first quarter of 2004. Based on the above, SMIT expects that the half-year net result of 2004 will at least be equal to the 2003 half-year net result (EUR 12 million). Considering the unpredictable nature of the Salvage market and the uncertainty regarding the backlog of orders in the Transport & Heavy Lift Division for the second half of this year, no profit expectation will be given for 2004 as a whole. Tsavliris says professional salvors have prime role to play to protect Europe from pollution. Leading salvor George Tsavliris has urged the European Union to work closely with the salvage industry in developing antipollution response capabilities within Europe – and at the same time he called for a harmonized approach with that of global bodies, particularly the International Maritime Organization (IMO). Speaking at a two-day workshop on Oil Pollution Response in the EU organized by the European Maritime Safety Agency, Mr. Tsavliris said that a cost-efficient use of resources coupled with the right expertise meant that the EU and member states ought to seek standby agreements with experienced international salvors which already kept tugs in strategic locations. From a salvor’s perspective, he took the opportunity to “critically” refer to other burning issues that stigmatize the maritime community such as the: criminalization of seafarers, the uncertain result of the EU’s measurement on the adoption of double hull vessels, and the importance of the ports of refuge. In his speech, Mr. Tsavliris deliberately took a leaf out of the book regarding Pakistan’s treatment towards Tsavliris’ Technical Manager Nikos Pappas, who was unlawfully detained for nine months in the famous “Tasman Spirit” case but finally released, and contradicted with the still unresolved two – years detention of Mangouras in the Prestige case in Spain, and called for EU to act more drastically. Thereafter, Mr. Tsavliris called on leading salvage firms to cooperate together in order to provide antipollution coverage for European requirements. “Working arrangements can be effective if there is a positive commitment by all parties and official organizations on a regional as well as international level,” he underlined. “There also needs to be good exchange of information among European states regarding their preparedness and response plans for oil pollution but there also needs to be international uniformity, with a legal requirement for identification of ports of refuge,” he added. The 23-24 June workshop in Brussels featured numerous prominent guest speakers from many European member states and examined many different issues related to oil pollution response. Mr. Tsavliris emphasized the role played by the international salvage industry, which recovers about 1 million tonnes of pollutants annually during salvage operations, according to International Salvage Union surveys of its members.


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Britain’s largest independent operator of deep sea barges, Anchor Marine Transportation , has been purchased by the Augustea Group . An agreement has been concluded enabling the Augustea Group to make the purchase through one of its Italian-based companies — Augustea Imprese Marittime e di Salvataggi (Augustea). Augustea owns and operates an extensive fleet of ocean-going tugs, harbor tugs and submersible deck cargo barges. With this acquisition and its expertise, the group will expand into a major operator of submersible deck cargo barges and a major player in the worldwide barge transportation market. Anchor Marine Transportation was formed in 1994 as a management buy-out from The Alexandra Towing Company and has concentrated on owning and operating barges on a worldwide basis, chartering tugs as and when required. With a fleet of seven barges, from 5,000 tonnes to 25,500 tonnes, four of which are submersible, AMT has established itself in Northern Europe, the Gulf of Mexico and West Africa. In a Communication adopted on 2nd July 2004, the European Commission reported on the results of Short Sea Shipping . Over the last five years, this mode of transport has showed comparable growth trends for freight to that of road. Vice-President de Palacio stated that “Short Sea Shipping has an obvious role to play in curbing the growth of road transport and providing cohesion, sustainability and safety in European transport. The new communication clearly shows that this mode is developing rapidly. Improving its framework conditions and making it simpler to use are necessities”. As stated in the White Paper on “European Transport policy for 2010”, the EU policy objective of promoting Short Sea Shipping is to achieve modal shift from road to Short Sea in order to diminish unsustainable trends in transport. The current Communication assesses progress achieved in over the past five years. Short Sea Shipping continues to show growth that is comparable to that of road. Short Sea Shipping and road, both grew by 25 % in terms of freight transport during the period 1995-2002. Short Sea Shipping performs around 40 % of all tonne-kilometers in Europe while the share of road transport is 45 %. The Communication recaps the most significant developments at Community and national levels that have contributed to these results, including: The on-going work with the Member States to identify and eliminate obstacles that hinder the development of Short Sea Shipping, The adoption of a Directive introducing the use of standardized facilitation forms for ships to arrive in and depart from Community ports, Progress on customs issues, such as the advancement of e-Customs and two Commission explanatory Working Documents on Customs procedures: ‘Guide to Customs Procedures for Short Sea Shipping’ and ‘Simplified Customs Procedures in Short Sea Shipping: Authorized Regular Shipping Service’, Focusing on Motorways of the Sea as part of the trans-European transport network, Launching the Marco Polo Program with its ambitious target to shift 12 billion tonne-kilometers of freight off the road each year, and The merits of the coordinated work of two existing promotion networks. On the one hand, Short Sea Shipping Focal Points (representing the national maritime administrations) have helped focus and implement policy, and, on the other, Short Sea Promotion Centres (business-led, neutral bodies) have continued to promote Short Sea Shipping at national level. The Commission proposed on 15 July more than 22 billion euro in funding over seven years for the trans-European transport and energy networks, the Galileo programme and the Marco Polo programme for non-road freight transport modes. "It is high time to give the European Union sufficient budgetary resources to encourage public and private investment in major infrastructure and key technologies in the energy and transport sectors in the interests of a true internal market and greater competitiveness", said Loyola de Palacio. Recent News - Far East, Southeast Asia and South P acific Adsteam Marine Ltd. of Australia sold their interest in the non-core barging business Sea-Tow Ltd. in New Zealand and stevedoring interests in Australia to focus more on their core ship assist business. Adsteam owned 50% of Sea-Tow Ltd., a tug barge operator based in Auckland. Adsteam and its partner, Northland Port Corp., have each sold their respective 50% interests in Sea-Tow as part of a management buyout. Total proceeds from the sales were approx. Aus$ 9 million (US$ 6,512,950). Proceeds will be used to repay borrowings.


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Beibu Gulf Towing Company (BGT), a joint venture between Fangcheng Port Authority and South China Towing Co . Ltd., is the first Sino-foreign joint venture company to provide harbor towing services in China. BGT is starting off with a fleet of three modern and powerful tugs equipped with the advanced steerable propulsion. BGT will acquire additional tugs to meet the growing demand for towing services in the Beibu Gulf. South China Towing, established in 1987, is the second largest tug operator in Hong Kong. Mitsui O.S.K. Lines is one of the founders of South China Towing and holds a 25% share. Another Japanese founding shareholder is Tokyo Kisen Co. Ltd., one of the largest tug operators in Japan. South China Towing has to date provided reliable and efficient services to more than 35,000 vessels calling at Hong Kong. The company is committing its management expertise and resources in partnership with Fangcheng Port Authority to provide towing services in Fangcheng port and neighboring ports in the Beibu Gulf. Fangcheng port, situated on the northern bank of Beibu Gulf, is the largest port in China’s Guangxi Province. With a total of 28 berths, 12 of which can accommodate vessels of over 10,000DWT, Fangcheng port is expected to handle more than 12 million tons of cargo in 2003. The port, which is the shipping hub between southwest China and Southeast Asia, is poised to play a significant role in the development of China’s southwestern region, providing a major gateway for the provinces of Guizhou, Sichuan, Yunnan, Guangdong, and Hainan. A report recommending greater attention to security and environmental safety around the Australian coastline, has been welcomed by Adsteam, Australia’s largest marine salvage organization. The just released Neville Inquiry into Maritime Salvage in Australian Waters , commissioned by the Deputy Prime Minister, John Anderson urges Government and industry subsidy support for salvage providers to ensure a viable emergency response capability for shipping. Adsteam, through its wholly owned subsidiary United Salvage is the only Australian member of the International Salvage Union. “The provision of salvage in Australian waters is not viable on a standalone basis, and without third party funding it will progressively disappear,” said John Moller, Managing Director of Adsteam. “Due to economic pressures, Adsteam Marine has, in the last 12 months, been forced to relocate overseas, tow of the 17 salvage capable tugs which the company had positioned around the Australian coast. Additionally, there is no guarantee on the remaining 15 salvage tugs and associated emergency response infrastructure remaining in place and being kept ‘emergency ready’,” he said. A key recommendation by the Neville Inquiry is that the shipping industry, State and Federal Governments provide subsidies for salvage capabilities to a company successfully tendering for towage contracts in designated ports. “The recommendations now provide a long term solution to protect the more than 17,000 kilometers of coastline from shipping disasters,” Mr. Moller said. “It is critical that Australia has an ongoing efficient emergency response capability to minimize the ecological and environmental damage which has resulted from shipping emergencies elsewhere in the world. To provide effective emergency response requires a high level of professional expertise, specialized tugs and equipment, immediate response, high mobility, backup skills, management and training. This includes maintaining an emergency response center, world-class emergency response crews and the capital costs of tugs. Tugs, which need to be kept in class, are specialist vessels with long range fuel capacity, accommodations for up to 14 people, fire fighting equipment, infrastructure to support the massive winches on board and other ancillary equipment including high volume pumps, breathing apparatus, mobile power, cutting and welding equipment. There have been 74 notable casualties in Australian and South Pacific waters in the last six years to April 2004, the burden of funding Australia’s maritime salvage capability has been borne solely by Adsteam Marine.” He called for all towage operators in Australia to be obliged to provide a defined level of salvage capability, with Governments and users contributing to the cost. The towage of the newly purchased jack-up rig “Nobel Mark Burns” has been awarded by Noble Drilling to Fukada Salvage of Japan. As the warranty surveyor, Noble Denton, demanded 2 tugs Fukada has scheduled the 132 T bollard pull “Koyo Maru” and 82 T bollard pull “Seihei Maru No. 2” for the tow. The rig, the ex-“Okha”, will be towed from Wakkanai, Japan to Dalian, China. Departure is set for the early hours of July 8th.


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Three Abu Sayyaf rebels were reported killed 25th June in a gun battle on Tawi Tawi. The rebels have been holding three crew from the tug “East Ocean 2” since 11th April, but no trace of the hostages have been found. The new Southern Philippines Tawi Tawi governor, says that he will make it a make it his priority to free the three hostages who were abducted from their tugboat off Taganak island and taken to Tawi Tawi. Since their abduction on April 11, they have not been sighted, but negotiations to secure their release resulted in gunmen freeing four resort workers abducted last October 2003. Reportedly the kidnappers have recently reduced their demand of 40 million pesos (RM2.7mil) to 15 million pesos (RM1mil) recently. The governor has stated that he is not going to meet the high demand, but may be willing to pay a small amount for 'board and lodging' (a Filipino euphuism for ransom) and if the situation is not resolved he will ask the military to conduct a rescue operation. On 11th July at 1130 local time in position 02º15.4’S - 105º16.0’ E, off Selat Bangka, Indonesia, pirates boarded a tug underway and threw the ten crew members overboard and hijacked the tug. A passing tug rescued one crewmember. Fate of remaining nine crew is unknown…..An unidentified tug towing a barge was fired upon on 13th June at 1800 local time while underway in position 05º03’N, 098º45’E off Aceh, Indonesia. The attackers were in 8 small boats and ordered the tug to stop under threat of more firing. Seven persons then boarded the stopped tug, stole cash, crew belongings, and ship’s documents, and kidnapped the master and chief engineer. They threatened the chief officer not to inform authorities for five days or the hostages would be killed…..An unidentified supply vessel reported suspicious approach on 11th June by what appeared to be a fishing boat with armed persons on board……Tug “Marco Power” and its barge “Bintang 9” were hijacked 19th May (believed previously unreported) by suspected Aceh rebels while underway in position 04º48.1’N, 098º35.5’E off Tanjung Langsa at night. Tug and barge were freed, but the Captain and Chief Engineer held for ransom and negotiations continued as of 10th June……The International Maritime Bureau (IMB) noted on 10th June that kidnapping for ransom from ships off Indonesia’s Aceh Province has reached epidemic proportions and warns mariners to remain well clear of the coast. Victims have chiefly been ships proceeding close inshore or anchoring near the shore or islands, often overnight…… Indonesia’s navy chief has proposed a joint venture naval task force with Malaysia and Singapore to patrol the Strait of Malacca. While accepting the proposal in theory, Singapore differed from its neighbors in insisting that the international community bear some of the burden, a suggestion that Malaysia and Indonesia rejected as infringement on their sovereignty. The countries though will launch a task force to patrol the Straits of Malacca and boost security. A meeting of Indonesian and Malaysian naval chiefs resulted in agreement on a task force composed of forces from each country operating under their national commands. That sidestepped the issue of sovereignty that slowed cooperation on Straits security. “We will be developing a coordinated patrol from only four times a year to a round-the-year patrol under one task force especially to handle the Malacca straits,” said Indonesian navy chief Admiral Bernard Kent Sondakh. He did not rule out in future a joint force for the patrols being based in Indonesia's North Sumatra Belawan port, Singapore and Lumut port in Malaysia. “I said to my Malaysian counterpart that maybe some day we will do this joint patrol, but not for now because every country has its own political policy.” Each country would supply up to seven ships with 100 crew. Reportedly Indonesian sources say that pirates and sea-terrorists will be shot on sight. Singapore's Ministry of Defense said that the three navies would be meeting soon to discuss this proposal in 'greater detail'. Featured Tugs For Sale File TG17008 Twin Screw Tug 87.0’ x 28.8’ x 13.25’ depth x 9.2’ light / 12.5’ loaded draft. Built 1967 by Mangone Shipbldg.; Houston, TX. U.S. flag. GRT 128. ABS loadline exp. 6/02. FO 45,000g. FW 1,600g. Skagit RP-90 double drum winch. Capacity abt. 1,600’ 1.75” wire. 2 x CAT D398B total 1700BHP. Lufkin 5.31:1 gears. Fixed 5 blade stainless props. Bollard pull @20 ST ahead / @ 15 ST astern. Main engines & gears due for overhaul. 2-40kW / CAT D311 generators. 2 radars, GPS. Fathometer, VHF. SSB. Gyro. Autopilot. Vessel lying in Lake Charles, LA where inspectable by arrangement through this office. Sale “as is, where is’ .


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TG57003 / 4 Twin Screw Tugs (2 each) 135’ x 38’ x 17.5’ depth. GRT 198. U.S. flag. ABS +A1 Towing Service, Ice “C”. Built 1974 by Main Iron Works; Houma, LA. Raised foc’stle bow. FO 183,000g. FW 5,000g + 114gpd watermaker. 1-5T hydraulic crane. Stern roller. Intercon DD-225 230,000lb. winch with capacity of 3,500’ 2.25” wire. 2 x EMD 16-645E5 total 5750BHP. 4.976:1 gears. 122.5” x 120” 4-blade stainless props in korts. Speed abt. 13kn free running. Bollard pull abt. 81 tons. 2-100kW / GM8V71 generators. Accommodations for 14 crew. 2 radars, Loran, Autopilot, Fathometer, 2 VHF’s, 2 SSB’s. Sale strictly “as is, where is” outside of competition.

File TG30140 Twin Screw Tug 105' x 34' x 15' depth. Built 1994 by Main Iron Works. ABS Int’l Loadline. Last drydocked 1/01 with 5 year loadline issued. Recent walk-thru. U.S. Flag. G/NRT 328/98. FO 60,000g. FW 17,500g. 2 x EMD 12-645E2 total 3000BHP. Reintjes 4.05:1 gears. 93” x 91” props in korts. 2-75kW/GM6-71 generators. 2 separate single drum winches with separate PTO’s, controls, etc. Main / secondary winch capacity 2,500’ x 2” / 1,600’ 2” wire. Manual tow pins. Quarters for 7 in 4 cabins. Full A/C. Lounge, Galley. Full nav/com aids. Located U.S. Southeast. Price ideas US $2.65 million ‘as is, where is’. As brokers, we invite serious cash offers after inspection. Marcon exclusive broker.

TG30122 Twin Screw Tug 122' x 31' x 12' depth / 10’ 3” max draft. Built 1968 by American Marine, New Orleans. Rebuilt ‘85/86, when M/E’s installed and lengthened about 30’. ABS Class +A-1 Ocean Towing, Ice “C”. ABS Loadline. U.S. flag. GRT 198. FO 73,300g. . 2 x EMD 12-645E2 total 3000BHP @ 900RPM. Falk 3.23:1 1235MR (35" clutches) gears. 80" x 76" props in korts. 8-1/16" shafts. Bollard pull 80,000lbs. Quad rudder system. 2-60kW/GM6-71 480vAC generators. Double drum winch powered by GM4-71 with 2000' 2" / 2600' 2" wire capacity. 20" capstan. 20HP electric Markey vertical. bow winch with 1.25" wire. Pullmaster hydraulic bridle winch.

Hydraulic 5 pin tow pins. Bow pud with mid-rubber side fenders. Upper pilothouse. El./hyd. steering. Sperry autopilot with gyro interface. Decca 96nm and Furuno 36nm radars. 2 SSB's. 3 VHF's. SatNav. Fathometer. 2 heating and air conditioning units. Full details, certificates, price guidance, etc. available on request. Photographs and small scale drawing available on the internet at www.marcon.com. As brokers, try offers after inspection. Marcon has sold a half dozen tugs and barges belonging to this owner over the years. File TG39150 Twin Screw Tug 151.5’ x 33’ x 18.8’ depth x 14’ light / 15.7’ loaded draft. Built 1944 as U.S. Army LT. Rebuilt/repowered ‘75-76. Split pipe & “D” rubber fenders. Bow pud. U.S. flag. G/NRT 275/187. ABS Loadline. FO 182,000g. FW 6,000g. Single drum winch capacity 2,100’ 2.25” wire. Hyd. tow pins. 1200lb. anchor on 9 shots 1.75” chain. Hyd. windlass. Hyd. crane. 2 x EMD 16-645E2 total 3900BHP 900RPM. Lufkin RHS 2524 4.39:1 gears. 115” x 90” 4-blade open stainless props on 8.5” cold-rolled shafts. Triple rudders. Bollard pull abt. 41.2 st. Speed free running @10–11kn on abt. 125gph. 3-75kW/GM4-71 generators. 2 radars, GPS, autopilot, 2 VHF’s, Satcom, SSB, Fathometer. Quarters for 10 in 6 cabins. Galley. Lounge. Inspection/delivery U.S. Gulf. Owners may consider sale “as is, where is” or with work completed to renew loadline. Marcon sold half dozen tugs & barges to or from this owner over the years.


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File TG36096 Azimuthing Tug 30.0m x 9.85m x 5.40m depth / 4.20m draft. Built 1994 by Ast. Armon Navia; Spain. DnV + I 3/3 E Tug For High Seas +Aut MS. GRT 362. FW 50m3. FO 228m3. Liq.Foam 12.3. 800m3/h FiFi pump driven by CAT 3408TA. Two 400m3/h @ 14 bar foam/water monitors. 80 ton brake double drum winch aft with capacity for 700m 48mm wire. Brattvaag hydraulic tow winch forward. Hydraulic deck crane. Capstan. 2 x CAT 3516TA total 4,000BHP @ 1800RPM. Twin Schottel SRP-1212 250RPM azimuthing props. Bollard pull abt. 53.5mt. Speed abt. 10.5 –12.5kn. 2-85kW/CAT 3304T generators. Accommodations for 8 crew in 2-1 and 3-2 man rooms. Full navaids including 2 radars, 2 GPS, DGPS, fathometer, chart plotter, weatherfax,

7 VHF, SSB, Satcom. Inspection by arrangement. Price ideas US$ 3.5 million. Marcon previously sold a similar vessel for these owners. TG22075 Twin Screw Tug 75' ’x 24.1' x 11.6’ draft built 1978 by Marine Power & Eq., Seattle, WA. U.S. flag. G/NRT 138/93. Windlass with 850# Navy type anchor with 180’ of 1” chain. Single drum winch with capacity for 2000' 1.62" wire. 1400# @ 14’ Auto Crane. FO 26,000g. LO 300g. FW 1,600 g. Sewage 1600g. 2 x GM12V149TI total 2200BHP @ 1800RPM (SM/E overhauled 1/95; PM/E 2/92). Abt. 6,000h on mains. Twin Disc 5.17:1 gears (o’hauled Fall 95). 72"X54” 4-blade props on 6” shafts. 20 Ton bollard pull. Speed @11 kn. Three station controls. Keel cooled. 1-75kW/GM4-71; 1-30kW/GM2-71 generators. Accommodations for 8 in 4 cabins. Full electronics including 2 radars, loran/plotter, autopilot, fathometer, GPS, Satcom, VHF and SSB. Vessel is now doing escort work and shipdocking in Southern California. Price reduced to $650,000 ‘as is, where is’. As brokers only, we invite your best close cash offers to test..

File TG12069 Twin Screw Tug 75’ x 24’ x 11’ depth x 7’ light / 8’ operating draft. Built 1980. Last drydocked 10/03. Model bow. Fitted with push knees. 90% bulwarks replaced in ‘98. U.S. flag. G/NRT 98/67. FO 33,200g. FW 5,000g. Intercon SD-125 divided drum winch driven by GM4-71. Wire capacity abt. 1200’ / 800’ 1.25”. Line pull abt. 60,000lbs. “H” bitts fore & aft. Stern roller. 2 x GM12V92 total 1200BHP. Stbd m/e replaced ‘98. Twin Disc 527 5.17:1 gears. Stbd gear replaced ‘96. 60” x 56” 4-blade stainless steel props on 6” stainless steel shafts. Bollard pull @15.75 tons. 2-40kW / GM4-71 208vAC 60Hz 3Ph generators. Port generator replaced in ‘97 and stbd replaced ‘96. Full navaids including 2 radars, 2 VHF’s, GPS, SSB & magnetic compass. Aft controls and Catalina Cockpit style fiberglass upper pilothouse installed ‘96. Accommodations for 5 in 3 cabins. All electric galley. Air conditioned. Price ideas $ 650,000 basis prompt inspection / delivery U.S. Northwest. As brokers only, we invite best, firm cash offers for Owner’s

immediate consideration. File TG46128 Twin Screw Tug 128’ / 121’ x 32.8’ x 14.3’ depth / 13.5’ loaded draft built 1967 by Burton Shipyard. G / NRT 180 / 122. ITC – 354. ABS International Loadline. FO 100,000g. LO 2,000g. FW 7,600g. Burrard single drum towing winch with a capacity of 2,400’ 2.125” IWRC wire. 2 x Fairbanks Morse 10-38D8-1/8 10 cylinder total 4600BHP @ 900RPM. One M/E was rebuilt by current Owner shortly after acquisition in early 1999. Philadelphia 4:1 gears. 115” x 81” 4-blade stainless steel props. 2-75kW / GM6-71 generators. Full electronics. Quarters for about 13 in 8 cabins. Full galley, stores, etc. Air-conditioned. See notes regarding below tug which for sale by same owners to whom we assisted in purchasing the boats.


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File TG44122 Twin Screw Tug 121.5’ / 118’ x 34.2’ x 17.5’ depth x 11.6’ light / 15.25’ loaded draft. U.S. flag. G/NRT 198/134. Designed by Schuller & Allan; Houston. Built 1970 at Gulfport Shipbuilding; Port Arthur, TX. Rebuilt 2000. Extensive steel work in ballast tanks, chain locker, deck plate, etc. at Main Iron Works in 2000. ABS +A1, Towing Services, +AMS. ABS International Loadline. FO 102,547g. LO 1,675g. FW 7,060g. Dry stores 760cft. Reefer Stores 725cft. 2 x Fairbanks Morse 12-38D8-1/8 total 4400BHP 825RPM. Direct reversing. Lufkin reduction gears overhauled. Main engines rebuilt in 2000 including 3 of 4 crankshafts renewed; shafts, wheels, & rudders pulled & re-worked; packing glands, rudder bearings renewed. 2-125kW / GM6-71 450vAC

3Ph 60Hz generators. One generator engine rebuilt in 2000. Engine control room situated in glass enclosed structure in upper engine room with remote reading gauges & indicators. Single drum Burrard Iron Works winch with 2800’ x 2.25” wire (new 2000). Tow winch rebuilt in 2000, with 2 new winch motors. ‘Texas bar’ also installed. Anchor windlass (o’hauled in 2000) is combination Burrard Iron Works anchor windlass/capstan capable of hoisting 2000# anchor & 105 fathoms of 1.25” stud link chain. New bow rubber in 2000. All valves & vents replaced on deck. Air controls renewed. Deck machinery hydraulically powered by independent GM6-71 driven pump + 50HP el./hydraulic pump. Stern fitted with stern roller 21” dia. x 60” long (new in 2000) and four 8” dia. vertical free hydraulic pins. Wagner hydraulic ram steering with two el/hyd. & manual pumps (rebuilt 2000). Radar, VHF, DF, fathometer, SSB, gyro/magnetic compasses & autopilot. Although will operate with 9 crew, accommodations provided for eighteen. Complete A/C (rebuilt / upgraded in 2000) with the exception of machinery space which fitted with mechanical ventilation. Marcon sold both boats plus two others to present Owners. Both above boats are available on either an individual or ‘en-bloc’ basis, “as is, where is” with prompt delivery U.S. East Coast. As brokers only, we recommend trying best firm cash offers to test after inspection. Price guidance and further details available on request. Photos on the website. As always, we are interested in receiving information on vessels or barges you may have surplus to your requirements and available for sale or charter on either a published or private and confidential basis. We looking forward to receiving your news to include in further market reports. Next Tug Market Report published 2004.

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