The following was released on July 15, 2008 from the Great Lakes Group about the Great Lakes Shipyard's first foreign sale of a new tugboat.Great Lakes Shipyard Goes Global
The Great Lakes Shipyard, an affiliate of The Great Lakes Towing Company, recently started manufacturing tugboats and barges for the marine industry in its new state-of-the-art shipyard facility in Cleveland, Ohio.
The first tugboat to be constructed in a U.S. domestic shipyard on the Great Lakes for foreign buyers was sold to Electrica S.A. of San Pedro Sula, Honduras, Central America. When delivered to Honduras in September 2008, the tug will be used in the Port of Puerto Cortes, a principal port located on the north coast of Honduras at the beginning of the Pan American Highway System connecting Honduras with other countries of Central America.
This is the first new tugboat ever built in Cleveland for foreign buyers, and it is the second new tugboat to be built in Cleveland since 1931. The first tug was completed and sold in April of this year to Tugz International L.L.C.
A new advanced “green” tug design for harbor and coastal towing, the “HandySize” Class is described by the company as being just the right size, just the right power, environmentally sound, fuel efficient and versatile enough to accomplish most tug jobs at the lowest operating cost “when bigger is too big, and smaller is more than enough.”
Designed in collaboration with Jensen Maritime, Seattle, renowned U.S. naval architects, the HandySize design fills the market niche in the 2,000-4,000 horsepower tug market for harbor work, fireboats, and construction operations as well as for coastal barge towing.
Not new to shipbuilding or to tug operations, some of The Great Lakes Group of transportation companies have been around since the turn of the 19th century and its tugs operate on all the Great Lakes, all the coasts, Puerto Rico, Hawaii and Alaska. For many years it also owned and operated a Gulf shipyard.
“There is a real market need,” said Ronald C. Rasmus, president of the Group. “Studies have shown that there are more than 1,500 U.S.-flag tugs over 30 years old in the 2,000-3,000 horsepower range that will need to be replaced over the next few years. We expect that new tug owners will seek low cost, fuel efficient and environmentally sound versatile workhorses, and our new 'HandySize' Class tug design fits those requirements.”
He added, “It will take some convincing, though, because not unlike the American use of large SUVs for commuting, tug operators have opted for larger and larger inefficient tugs to perform routine duties over the smaller more efficient tugs.”
The company expects that rising fuel costs, governmental air emission standards, and increased public environmental awareness will make the new HandySize 2,800-3,200 horsepower tugs attractive to the commercial tug market, and that tug operators will optimize horsepower and size of tug with their actual needs; choosing handysize tugs for the vast majority of routine tows and larger tugs for super-size containerships, tankers and liquid natural gas carriers or even in locations where weather and tidal conditions dictate their use.
There is no doubt that the weakened U.S. dollar was a contributory factor for the decision of these Central American buyers to look to the Great Lakes Shipyard in Cleveland to build their tug because U.S. domestic yards traditionally have had higher costs than shipyards overseas. These buyers have indicated, though, that when design, quality, timeliness and cost, including the cost of delivering the tug to its final destination were considered, Cleveland’s Great Lakes Shipyard was competitive with such international tug building centers as the Netherlands and Turkey.
In its first full year of operation in its new Cleveland facilities, the shipyard constructed one tugboat and 27 barges, employing more than 68 Northeast Ohioans, mainly, Cleveland and Cuyahoga County residents. The second tug, now sold to Honduras buyers, and a third tug are under construction. Additional firm shipyard orders now also include a sectional ferry for a Lake-of-the-Ozarks, Missouri, buyer and a truckable workboat for the State of Ohio’s Department of Natural Resources. Besides creating local jobs and a $3-$4 million dollar payroll, the company’s policy to support Cleveland and Northeast Ohio area businesses has an economic ripple effect, not only to these suppliers and vendors, but to State and local governments, which is conservatively estimated at 49 cents from every dollar of revenue the company receives.
Further-needed expansion of the Cleveland-based facility is planned for the next two years to create economic growth and new career jobs the old-fashioned way – by creating new marine manufacturing business opportunities. The Phase II Expansion includes acquisition of adjacent land; remediation and bulkheading; an excavated boat slip; a 40,000 square-foot fabricating building needed for winter construction; and the installation of a 700-ton travel lift to complement the company’s existing 300-ton drydock.
The company also believes that its success will, in no small way, be attributable to a trained and skilled local work force through community outreach and training for career jobs. Located just a short walk from the Shipyard is the Cleveland Municipal School District’s Max S. Hayes Vocational High School, a model school, whose course of instruction includes welding and diesel engine mechanic training – skills needed for a shipyard. The company, in cooperation with the Cleveland Municipal School District and the school, has developed a training program for students enrolled in the school and employs graduates. It has plans to expand its outreach programs to other city vocational schools and to Cuyahoga Community College.
More details about the availability of the HandySize tug and The Great Lakes Group of companies can be found online at www.thegreatlakesgroup.com
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