Page 40: of Maritime Reporter Magazine (June 1992)

U.S. INLAND, HARBOR & COASTAL WATERWAYS

OPA 90, Gambling Laws Propel Boatbuilding Activity

Barge, Casino Boat Construction On Upswing

Artist's conception of the Players Riverboat Casino under construction at Leevac Shipyards in

Jennings, La.

Shallow-draft vessel construction, which encompasses towboats, tugs, barges, passenger vessels, dry cargo and liquid cargo barges, and other self- and non-self-propelled craft, is one of the healthier sectors in the U.S. marine market.

In traditional areas of construc- tion—towboats, tugs, ferries and barges — a survey of second-tier shipyards conducted by MARITIME

REPORTER, revealed that builders delivered 277 dry cargo barges and 40 tank barges. In addition, these same yards delivered 127 workboats, 24 passenger vessels and 21 other miscellaneous vessels. All these fig- ures represent a substantial increase over the previous year's survey re- sults.

Many analysts believe that dur- ing the second half of this decade as much as a quarter of the present 27,000 unit hopper barge fleet will need replacement because of age, translating into a 1,500-barge, $450 million a year building program.

Additionally, trade growth in cer- tain sectors, particularly coal ex- port, should also spur some build- ing. In all, the barge construction market should remain steady over the next few years.

According to the latest boatbuild- ing and repair survey released by the American Waterways Shipyard

Conference (AWSC), second-tier yards delivered 25 tugboats and 10 towboats during 1990. MARITIME

REPORTER'S data compiled from its two most recent new vessel con- struction surveys indicate that tow- boat and tug construction will re- main at the same level for the next few years, mostly due to the satura- tion of the market.

Shipyards Benefit

From OPA, Gambling Laws

Furthermore, second-tier ship- yards have logged a substantial number of new orders as a direct result of new legislation, in particu- lar, the Oil Pollution Act of 1990 (OPA) and federal and state laws regulating riverboat and cruise ship gambling.

OPA90 mandates that all tankers and tank barges operating in U.S. waters be fitted with double hulls.

About60 percent of the present 4,043 tank barge fleet is fitted with double hulls. Cost estimates for double-skin tank barge construction vary be- tween $40 to $45 per barrel of capac- ity. For example, a 30,000-bbl-ca- pacity tank barge, a common size vessel in the industry, would cost about $1.3 million. The cost of re- building all the single-skin tank barges over the next few years would be upwards of $1 billion.

MSRC Requests Bids

For Tank Barges

The Marine Spill Response Cor- poration (MSRC) has requested bids from 43 firms for the construction of sixteen 40,000-bbl single-skin tank barges, according to an industry source. Bids were expected to be submitted by May 28, and contracts awarded by mid-July. Each barge will be equipped with a 12 million

BTU heater and be classed ABS "un- manned tank barge, load line for ocean service." All the 274-foot by 58-foot by 23-foot barges are ex- pected to be delivered by the middle or end of March 1993. Following training and testing, MSRC expects to have the barges operational by

June 1993.

Another outgrowth of OPA 90 is a substantial number of orders for oil spill response, skimmer, and pollu- tion control vessels. The Trinity

Marine Group, based in Gulfport,

Miss., and Bender Shipbuilding &

Repair Co., Inc., Mobile, Ala., were the beneficiaries of a $188 million spending program by MSRC for six- teen 210-foot oil spill response ves- sels (OSRVs). Trinity is building 12 of the OSRVs and Bender four. A number of other yards, namely

Munson Manufacturing, out of

Edmonds, Wash., MARCO Seattle,

SeaArk Marine, Monticello, Ark., have logged orders for several sup- port vessels.

Riverboat Casinos

Legalized gambling on the Mis- sissippi has been a terrific success to both owners and builders alike, as well as pumping money into the cof- fers of local towns. The Illinois Gam- ing Board, for example, reported that the 1,068-passenger Par-A-Dice, built by Atlantic Marine, took in $5.6 million for the month of March, while the Bender-refurbished Alton

Belle Casino garnered $4.4 million in a month. In 20 days of operation, the Casino Rock Island took in $1.48 million. The combined revenue from the three casino boats for the state was almost $1.9 million.

In nine months of operation be- ginning April 1,1991, five Iowa ca- sino riverboats generated gross rev- enues in excess of $66 million.

Iowa, Illinois, and Louisiana have been joined by Mississippi as the states offering riverboat casino gam- bling. Mississippi recently issued its first license to operate a riverboat casino to the Riverboat Corporation, whose parent company is Steam- boat Casino River Cruises, operator of two Iowa casino boats, the Emer- ald Lady and the Diamond Lady.

Riverboat plans to operate dockside gambling, dining and entertainment aboard a 1,000-passenger vessel beginning in October. Mississippi is the only state among the four offer- ing dockside gambling all year round.

Annual Casino Boat Building

Market May Exceed $75 Million

Over the next five years, several industry analysts believe as many as 8 to 10 casino boats will be or- dered per year, translating into an annual market that may exceed $75 million in hull construction, propul- sion machinery, electronics and gam- ing equipment outfitting costs. A state gaming bill allows for 15 riverboat casinos in Louisiana. The table shows riverboat casinos in op- eration, under construction and on order.

Service Marine Industries, Inc.,

Morgan City, La., recently received a contract to build a 210-foot gaming boat for a Harrah's Casino Hotels/

Hammons partnership. The vessel will begin operation on Des Plaines

River out of Joliet, 111., in the spring of 1993.

Jennings, La.-based Leevac Ship- yards, Inc., which last year deliv- ered the Casino Rock Island, has received a contract from Southern

Illinois Riverboat Casino Cruises,

Inc., for the construction of a 210- foot four-deck casino vessel. The 1,200-passenger vessel, called the

Players Riverboat Casino, will oper- ate of Metropolis, 111.

Major Riverboat Casinos

Construction

Vessel Capacity Operator Port Cost

Built

Alton Casino Belle 600 Alton Riverboat Gambling Part Rockford, III. $1.1 Million'

Diamond Lady 1,200 Steamboat Development Corp. Davenport, la. $8 Million

Dubuque Casino Belle 2,000 Roberts River Rides Dubuque, la $12 Million

Emerald Lady 1,200 Steamboat Development Corp. Davenport, la $8 Million

Mississippi Belle II 500 Roberts River Rides Clinton, la. $3.5 Million

Par-A-Dice 1,068 Greater Peoria Riverboat Corp. Peoria. III. $15 Million

President Riverboat Casino 3,000 Gateway Riverboat Cruises Davenport, la. $11 Million'

On Order/Under Construction

Empress 900 Des Plaines River Entertain. Corp. Joliet, III. N/A

Galena Eagle N/A Eagle Rock Resort Galena, III. N/A'

Players Riverboat Casino 1,200 S. Illinois Riverboat Casino Crs. Metropolis, III. N/A

Unnamed 2,000-3,000 Roberts River Rides Undecided $12-$15 Million

Unnamed 1,200 Des Plaines Develop. Ltd. Part. Joliet, III. N/A 'Cost of refurbishment

Source: Maritime Reporter & Engineering News 48 Maritime Reporter/Engineering News