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Luce Named President Of Canarctic Martin P. Luce was named president and CEO of Canarctic Shipping Co. Ltd. of Canada. He began his career in marine service in 1955 as a navigating officer. In 1979 he was appointed as general manager of Canarctic, and most re- cently was the company's executive vice president. Canarctic has 16 years of shipping experience trad- ing in the North Atlantic, Canadian Arctic, Gulf of St. Lawrence, Baltic Sea and European coastal waters. It is an established tanker operator specializing in moving crude oil and oil products through ice-covered waters. Sonsub Takes ROV, Template Deliveries; Installs Heidrun Field Riser Perry Tritech Delivers Two Voyager™ ROVs To Sonsub Perry Tritech Inc. delivered the Voyager No. 2 and Voyager No. 3 Remotely Operated Vehicle systems (ROVs) to Sonsub International, Inc. of Houston. Both systems have al- ready been deployed in the North Sea and Africa. The Voyager, developed in coop- eration with Sonsub, is Perry Tritech's new standard inspection ROV, featuring magnetically coupled brushless DC thrusters, three channels of fiber optic video, and an advanced control system based on Perry Tritech's TRITON™ ROV control system. McDermott Delivers Drilling Templates To Sonsub Sonsub has taken delivery of two HEAVY DUTY ELECTRIC WINCHES Save when you select pre-engineered Orion bearings for rotating machine applications Save Design Time ORION has pre-engineered bearings in the most popu- lar sizes for typical load/ lubrication conditions. Save Maintenance Time ORION Bearings are easily repaired in the field, often are interchangeable with bearings presently installed. Save Operating Efficiency ORION'S standard line in- corporates state-of-the-art technology in design, mate- rial and lubrication to give you the best bearing per- formance possible. Save on Specials, too ORION'S long experience and extensive facilities are available to assist optimum bearing selection for your specialized application. For more information con- tact: ORION • CORPORATION 1111 Cedar Creek Rd. | Grafton, WI53024 (414) 377-2210 FAX (414) 377-0729 FINANCIAL UPDATE Operating leasing: Source For uOff Balance Sheet" Financing For Ships three-slot and two four-slot subsea drilling templates, designed by Sonsub and manufactured by McDermott Inc. The templates were ordered by Sonsub to meet anticipated future demand particu- larly in the Gulf of Mexico. Sonsub North Sea Uses ROVs For Riser Installation Following it's successful comple- tion of all infield subsea trenching activities in the Heidrun field ear- lier this year, Sonsub North Sea had been awarded a contract by Coflexip Norge AS to perform ROV work for the installation of two 16-in. export risers in the Heidrun Field. The risers are being set in 350m of wa- ter, and will be installed entirely by remotely operated intervention, in- cluding DGPS and acoustics for po- sitioning. For more information on Sonsub Circle 34 on Reader Service Card Tenmat Feroform Used On Dredgers Feroform T12 was introduced to United Marine Dredging, which owns and operates eight suction dredgers used for dredging aggre- gate. Each vessel is equipped with an automatic aggregate unloading system consisting of two buckets with 10-30 ton capacities. Trials were conducted using Feroform. Ac- cording to Tenmat, the results showed a significant increase in life and with no added problems of hav- ing to maintain and lubricate the bushes. United Marine is embark- ing on a replacement program to use Feroform on its older vessels. For more information on Tenmat Circle 35 on Reader Service Card Circle 239 on Reader Service Card 42A AUTOMATIC BRAKING - STANDARD POWER IN - POWER OUT - FULLY REVERSING JEAMAR WINCHES INC. 1051 Clinton St., Buffalo, N.Y. 14206 TEL (716) 854-3211 FAX (716) 854-4141 Shoe Journal Tilting Shoe Thrust Much of what is written about larine finance markets concen- ates on newbuild financing, which in sometimes obscure the impor- mt second-hand market and alter- ative financing options. SanFran- isco-based PLM International, a ransportation equipment leasing ompany, offers ship owners a fi- ancing alternative — second-hand essel operating leases. During the first nine months of 994, 169 new tanker and bulk car- iers were delivered to shipyards, epresenting 15.2 million dwt of new apacity. During the same period, '10 tankers and bulkers — totaling i4.1 million dwt — traded hands vithin the second-hand market. Second-hand transactions play an mportant role to nearly everyone in ;he industry: owners, charterers, arokers, bankers, and shipyards. For example, ship owners will al- ways need to dispose of their older tonnage to meet clients' service de- mands and to raise capital for newbuildings. With more than 60 percent of combos, VLCCs, Suezmax, and handysize bulker tonnage more than 15 years old, and approximately 50 percent of handysize tanker and LPG tonnage in the same situation, it is assumed that the continued operation and finance of older ton- nage has and will continue to repre- sent a major part of ship owners' financial requirements. Traditional bank finance and mezzanine debt structures provide the bulk of second-hand ship finance. But, these lenders have become more targeted toward specific markets and the nature of the vessels for which they will provide funding. Therefore, public and private place- ments of equity and debt also play an important role. While leasing is usually regarded as a secondary- but-important source of financing, the popular concept of leasing is invariably medium- or long- term finance leasing, in which the lessor takes little or no technical risk. Operating lessors, limited in num- ber in the industry, provide an al- ternative. Unlike other transportation equipment sectors, the marine in- dustry has few financial sources willing to undertake the risks of vessel ownership and accept short- term lease or chartering commit- ments in return. Consequently, the owner is left to fill shorter-term re- quirements from the marketplace, often facing the option of chartering tonnage from another ship owner. PLM has formulated a potential solution to this dilemma. PLM In- ternational is a financial organiza- tion whose main business is raising syndicated equity from limited part- ner investors and employing the capital raised through these invest- ments in transportation equipment. Of PLM's $1.3 billion equipment portfolio, $550 million is invested in ships, mobile offshore jackup drill- December, 1994 • DIRECT DRIVE • NUMEROUS OPTIONS TO SUIT YOUR APPLICATIONS GROOVED DRUMS - CONTROLS - FREE SPOOLING - EXPLOSION PROOF • LINE PULLS FROM 400 LBS to 32,000 LBS VERTICAL LIFT ing rigs, and marine cargo contain- ers. The marine fleet consists of 27 vessels, five drilling rigs, and more than 30,000 containers. Vessel operating leases are of- fered to clients through short- to medium- term full-service time char- ters. The company is interested in taking some commercial and oper- ating risk to improve the yield to its limited partnership investors. It manages these risks through a staff of marine professionals, typically with 20 to 25 years of marine tech- nical and chartering experience. In an average transaction, an operating lessor may purchase a 10- year-old vessel and time charter it back to the seller or a related party for two to three years. PLM seeks to own the vessel at the end of the term and will renew the charter or re- market the asset to others at that time. The vessel remains in the owner's control but not on his bal- ance sheet. Unlike finance leases, operating leases are typically off balance sheet transactions. An op- erating lessor's typical clients are large, financially sophisticated own- ers who have diversified financing sources available to them. They may have a large fleet replacement program planned or in progress for which its borrowing capacity is des- ignated. While their financing is slightly more expensive, selling a vessel and leasing it back allows the owner to continue to control that asset during the period when re- placement tonnage is built. For more information on PLM Circle 104 on Reader Service Card Circle 227 on Reader Service Card
