Page 56: of Maritime Reporter Magazine (June 15, 2000)

ThE^^QorYEARbook • TANkER MARkET REPORT

Markets Redefined

The reality that it generally costs, in inflation adjusted dollars, less money to buy a VLCC today than it did nearly 20 years ago defies economic principles.

Exacerbating the situation further is the dropping prices in face of increasing demand, given the above referenced

Erika incident and the increased busi- ness expected from OPEC's output upturn and the oil-hungry rebounding economies of the Far East. At the heart of the pricing conundrum is an excess of newbuilding capacity, particularly the mandate by Korean shipyards to expand capacity substantially in an effort to out- perform its traditional shipbuilding rivals. While the condition has been long-lamented privately and publicly, particularly in the European shipbuild- ing community, and despite the recent "agreement" to curtail the number and level of subsidies, many officials and analysts speculate that the continued levels of output from Korea will lead to dire results for shipbuilders around the world. The scope of Korea's dominance, by a single

Flow particularly in the tanker realm, is clear- ly evident in the numbers from SS&Y.

In the second half of 1999, South Kore- an shipyards secured 33 of the 62 new contracts placed in the July-December period. At the end of the year, its ship- yards accounted for 55 percent of the tanker tonnage on order. By compari- son, Japanese shipbuilders, which are saddled with a strong Yen, received only 12 tanker orders during this period, according to SS&Y.

Vulkan RATO-S Couplings

Featured On ARCO Tankers

The new ARCO Millennium Class

Tankers are designed to meet or exceed the latest ABS rules with double bulk- heads and twin-engine rooms with a continuous bulkhead from the keel to the top of the stack and twin rudders.

Each engine room is designed and equipped as a separate, independent space. ARCO Marine will operate with these double hull tankers for the week- ly 2,400 mile round trip voyage from

Valdez/Alaska to Cherry Point,Wash, for Alaskan crude-oil transportation.

The Millennium Tankers are being built at Litton Avondale Shipyard. The main propulsion engines are from

Manises Diesel Engine, Madrid,

Spain. They are two-stroke MAN

B&W 7S50MC - C delivering continu- ous power of 11,060 kW at 127-rpm.

The engines are lighter and shorter while delivering higher power rating.

Renk secured the contract from Manis- es for the delivery of the complete

PTO plants. Connected with the engines through Vulkan RATO-S 7331 flexible couplings is one BSL 225

Renk PTO gear unit each to drive a generator, capable of developing at 1,200 rpm an electrical output of 8,600 kW for onboard requirements, i.e. especially for the cargo pumps. The propeller thrust bearings are arranged separately and comprise a redundant hydraulically operated disk clutch (Renk patent) for separating or con- necting the main engine and propeller in operation. The main reason Vulkan

Couplings were chosen is the excellent torsional vibration characteristic of the

RATO-S Coupling.

Circle 399 on Reader Service Card 58

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