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About Carl Alexander
Expertise
I can answer questions concerning the operations, cargo, maintenance, construction and design theory of vessels used for supply and service in the offshore petroleum industry. Supply, crew, survey, diving, tow boats and barges but no questions about tanker and freighter operations. Family members own commercial shrimp boats and I have a working knowledge of their operations in the Gulf of Mexico. Although not commercial, I have been part of the crew on a full rigged sailing ship and am a devoted history buff of the ships and crews of that period.

Experience
I have worked in the offshore drilling industry over 30 years and since I am the representative of the oil companies that charter the service vessels and the project superintendent on the scene, I am closely involved in the boats operations.

Organizations
Society of Petroleum Engineers. Offshore Operations Technical Interest Group of SPE

Education/Credentials
B.A. History.

 
   

You are here:  Experts > Industry > Maritime/Shipping > Maritime/Shipping > River Class Ships

Topic: Maritime/Shipping



Expert: Carl Alexander
Date: 10/30/2007
Subject: River Class Ships

Question
Dear Carl,

I am doing a study on River class cargo ships (operating in the Great lakes region, possibly around 640-700 feet in vessel length, carrying 20,000-30,000 tonnes of cargo)

Questions I had are as follows:( on cargo ships)
a) Can someone buy other types of ships and then retrofit them to make them "River class", so that they can operate at ports which allow upto a certain size only? Where can one buy such ships from ( US, Canada, International.?)

b) If yes, what do you think it would cost them to buy and upgrade such kind of a ship. Are these kind of ships readily available outside. I read that there is a shortage in supply of these kind of ships in that region, hence want to research more on that front.

c) How much would a new ship cost? ( estimates say around $70-120 million, just wanted to confirm on this)

Would be obliged for your help in this regard.

Thanks
Deepak

Answer
Deepak,
I apologise for the delay, I have had family matters to attend to.

The River class Great Lakes ships were built as a response to the huge 900 to 1000 footers like the ill-fated Edmond Fitzgerald. The smaller ships could get through locks and into ports the larger ones could not.
During the early to mid 1970’s, I lived in Port Huron, Michigan and saw some of these fine ships during the time they were first brought into service. They have hit on hard times and many of the companies operating them have gone bankrupt. I don’t know how many are still operating but it is only a fraction of before. Here is your competition.

http://sec.edgar-online.com/2006/03/31/0001193805-06-000879/Section2.asp

www.boatnerd.com

There are many used bulk cargo, container and tankers that are under 70 (22 meters) feet breadth and 40 foot (13 meters) draft. They are usually around 400 feet (125 meters) length A ship broker nephew has told me that they range in price from $200,000 all the way to $8,000,000. There is no shortage of them worldwide but there are not many for sale in Canada and the U.S. A web search for ship brokers will show you what I mean.
Here is one.      http://www.maritimesales.com/Ships%20for%20Sale.htm

Converting a tanker to an ore carrier would be possible. A tankers hull is compartmented with some compartments being used for cargo and others for ballast water. Ore ships use a similar principle. For general cargo, little modifications would be needed. Your biggest obstacle will be the propulsion. A newer vessel with a modern plant will cost more and the older ones will not be economical to run. Last week I signed for 15,000 gallons of marine diesel at @ $2.17/gal.  That (cheap) price was the result of a long term contract. I won’t go into fuel use specifics as there are too many variables, weather, speed, loaded vs empty, current etc, but you can appreciate that a small ship burning 60 gals/hr would sell for more than one that uses 80.
The only boats I have been involved in re-building have been service boats. The goal was to purchase and convert for less than a new build and that goal was usually around two thirds of the new build. This budget usually called for engine overhaul rater than replacement. An older boat may also require extensive safety and environmental changes. As far as new ship construction costs are concerned, the ship building industry in the U.S. is in depression. Anything larger than work boats are usually build in Taiwan or Korea and I have no idea of the cost. I have never seen a construction estimate for a large ship.  

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