Weekly News Summary For May 15-21, 2006:
House Overwhelmingly Passes Security Measure
Washington, D.C.—The House voted 421–2 May 4 in favor of legislation to provide $7.4 billion for new port security inspectors, nuclear weapons screening and development of an automated system to pinpoint high-risk cargo.
The bill, entitled the “Security and Accountability For Every Port Act” or “SAFE Port Act,” was passed on the heels of the furor over a plan by the state-owned Dubai Ports World to purchase terminal operations at six major U.S. East- and Gulf-Coast seaports.
In the debate on the bill (H.R. 4954), House Republicans blocked consideration of a Democratic amendment that would have required that all cargo be screened before it leaves foreign ports for the United States.
The bill approved by the House would bolster the Department of Homeland Security’s Domestic Nuclear Detection Office, requiring the deployment of nuclear and radiological detection systems in all domestic seaports. Also, it would set up new tracking systems for discovering and monitoring high-risk cargo and would accelerate the creation of a Transportation Worker Identification Card (TWIC)….
The Upper Mississippi River was closed to all commercial traffic for more than a day and a half last week between Mile 44 and Mile 20 following an accident that left three barges sunk and 22 barges adrift after an allision with the troublesome Thebes (Ill.) railroad bridge at Mile 43.7. The barges scattered and drifted more than 20 miles through the dark night following the accident, which occurred around 11 p.m. on May 7, according to Lt. (jg) Anthony Baird, Coast Guard Marine Safety Unit-Paducah.
Baird told The Waterways Journal the channel was closed because one of the sunken barges remained capsized and partially submerged in the channel at Mile 37.2 with the starboard, stern corner protruding above the surface. He said two other barges sank outside the channel as a load of scrap metal settled along the left descending bank at Mile 31, between Daniel Light and Commercial Point, and a loaded rock barge came to rest atop a dike at Mile 26 above Buffalo Island.
Baird said the scattered and sunken barges were in a loaded 30-barge tow being pushed downriver by the Mary Kay Eckstein of Marquette Transportation Company Inc. The Inland River Record lists the twin-screw vessel at 7,200 hp….
A proposed expansion of the Panama Canal has Gulf Coast ports excited about the possibility of increased business. It would be the largest construction project since the canal opened 92 years ago.
If approved, the project by the Panama Canal Authority (ACP) would double the canal’s capacity for Panamax-sized vessels by installing a new set of locks east of the existing Gatun Locks and would widen and deepen the channel, according to a press release from the Port of Houston Authority (PHA).
The project, with an estimated cost of $5.25 billion, still needs to be approved in a referendum by the Panamanian voters. Projected completion date would be 2014.
Currently, “post-Panamax” and “super post-Panamax” vessels are unable to pass through the Panama Canal, the PHA release said, adding that according to the ACP, the canal’s expansion could accommodate those larger vessels.
A Panamax ship is one currently capable of transiting the Panama Canal and is approximately 738 feet long with a beam of 105 feet….
It’s a good time to be in the shipbuilding business.
With the demand for new towboats, barges and other equipment, shipyards, like Jeffboat, are finding themselves with a healthy backlog with no end in sight.
It comes as no surprise that new equipment is needed. Due to the number of barges that have been sold to South America and scrapped, coupled with high freight rates, barge companies are putting every available barge to work.
At Jeffboat, Christopher Black, senior vice president and chief financial officer, said the backlog has steadily grown since the end of 2005.
“At the end of the year, in December 2005, we had $270 million external backlog, on March 31 we had $360 million in external backlog and now, we can say we have over $400 million in our external backlog,” he said.
When it comes to internal projects for ACBL, Black said they are sprinkling in those construction projects when they can, often between other construction projects.
The size of the backlog isn’t a surprise. Black said given where rates are in the industry, everyone would like more equipment and their existing equipment is getting old, so that leads to new-construction backlogs.
“Twenty five percent of dry hopper barges need to be replaced,” said Black. “That is about 4,500 barges. There are only two builders of any size significance. It is the reality of the market. We are just trying to work better and smarter by continuing to improve our processes.”…
Brownsville (Pa.) Marine Products slid its first barge into the river April 26.
The shipyard has resurrected barge building at a location where there have been thousands of barges constructed and launched by predecessor companies—primarily Hillman Barge & Construction—dating back to 1939. The yard is located about 40 miles south of Pittsburgh at Mile 57 on the Monongahela River.
The barge is the first of 20 that the new shipyard is manufacturing for Heartland Barge Management LLC, which in turn will charter them to the Memphis Division of APAC-Tennessee Inc. for use in its asphalt and concrete paving operations….
Although the Port of Paducah, Ky., can boast of being home to several barge and towboat repair and painting services, there have been no new vessel construction firms in the area for almost two decades. That situation will be remedied in July when a new barge builder begins operating at Ledbetter, Ky.
Three Rivers Boat and Barge Inc. is developing a new 38-acre barge-construction facility at Ohio River Mile 929.2, just upstream of the former Kentucky Marine Service facility now operated by McGinnis Inc. as National Maintenance & Repair. At one time in the early eighties, the abandoned site was home to a barge-painting venture operated by Jim Marvel.
General Manager Roger McCuiston said he expects to begin construction in July, initially employing 30 to 60 welders and fitters with the number, hopefully, growing to more than a hundred by next year. That will depend on the number of barges contracted for construction, he added. He does not anticipate any problems in attracting workers.
“The labor pool is good in our area,” he remarked.
Although a new venture, the facility’s owner and management team are no newcomers to the barge construction or repair business. Owner David Ray also owns Three Rivers Machine and Fab. Inc., which provides tailshaft machine services along with rudder construction and repairs for area shipyards and towing companies in Ledbetter. There are currently no other firms in the area that specialize in this service….
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