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World Maritime News - 22 May, 1998

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Steve Schultz

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May 22, 1998, 3:00:00 AM5/22/98

World Maritime News - 22 May, 1998
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BUSINESS

Norway providing the Philippines with funds

The Norwegian government is giving 8.1 million Philippine
pesos/U.S.$209,000 to the Philippine government to aid training and
certification of crewmembers.

Thong Soon Lines bankrupt

Thong Soon Lines Pte. Ltd., based in Singapore, is being liquidated
after filing for bankruptcy.

Unicom takes over Jebsens business

Unicom Management Services (Cyprus) Ltd., a unit of Sovcomflot, has
taken over the operations of Jebsens Ship Management (London) Ltd., which
was recently closed.

Eurofeeders sold

Irish Continental Group P.L.C. has acquired Eurofeeders.

Ocean Rig finalizes financing

Ocean Rig has finalized U.S.$450 million in financing to enter the
semi-submersible drilling rig market with Services Technique Sedco Forex.

Norbulk Shipping to manage up to 10 Vostoktransflot Stock Shipping ships

Norbulk Shipping (U.K.) Ltd. has signed a deal with Vostoktransflot
Stock Shipping Co. to manage as many as 10 Cypriot-registry refrigerated
ships by the end of the year. Norbulk Shipping will also assist in
improving standards and technical maintenance operations of Vostoktransflot
Stock Shipping, partly by training its personnel. The first ship is the
Bukhta Uliss (4,900-dwt refrigerated ship built in 1987), which is being
repaired in Riga, Latvia, under Norbulk Shipping supervision.

TMM to manage Vietnamese-registry tanker

TMM has become the first firm based in Japan to manage a
Vietnamese-registry tanker. Under a two-year contract with Falcon Shipping,
it will manage the Pacific Falcon (60,960-dwt tanker built by Mitsubishi
Heavy Industries Ltd. in 1986), which was recently purchased for U.S.$21
million.

Panasia Marine details

Panasia Marine, the new Singapore-based shipbroker, is a venture of
Ahrenkiel Group, Aries Shipbroking Ltd., J.O. Plowright & Co. Tankers Ltd.
and Sound Tanker Chartering. Panasia Mine is focusing on liquid chemicals,
petroleum and edible oils and was formerly a subsidiary of Ahrenkiel Group
in Hong Kong. Panasia Marine has also formed an office in Seoul, South
Korea.

Additional information on offer for Horace Clarkson

Shipping company Charles Taylor's 26.5 million British pound/U.S.$43.3
million offer for shipbroker Horace Clarkson was made with Howe Robinson
Investments and would have involved restructuring Horace Clarkson as a new
divison of Charles Taylor. The offer, a combination of cash and shares, has
been rejected, as Horace Clarkson said the offer discounted the company's
value. Horace Clarkson would also have apparently merged activities of Howe
Robinson Shipbrokers. Meanwhile, Horace Clarkson has announced an 8 million
pound/U.S.$13 million share buyback.

More on U.S. vessel scrapping bill

Legislation introduced by U.S. Sen. Barbara Mikulski, D-Md., would
require the U.S. Maritime Administration and the U.S. Navy to sell vessels
for demolition to qualified U.S. shipyards. The yards would keep half of
the profit from the scrap while the U.S. government would get the rest. The
legislation defines qualified yards as those able to build or repair
Maritime Administration of Navy ships, those covered by a current Navy
Master Ship Repair Agreement, those able to remove hazardous substances and
those that can, with their own employees at their own yard(s), utilize at
least 75 percent of the employee hours required for scrapping. U.S.
government vessels could only be scrapped in a foreign country if the U.S.
Environmental Protection Agency certified to the U.S. Congress and the U.S.
secretaries of navy and transportation that environmental requirements
there were "similar" to U.S. laws. The U.S. secretary of labor and the
other two secretaries would also have to certify that the foreign country
"recognizes internationally-recognized worker rights" under the U.S. Trade
Act of 1974. If passed, the bill would require the sectretary of the navy
to start a demonstration program. Within six months of the bill's
enactment, three-year contracts would be awarded to two U.S. shipyards to
scrap "a group" of ships whose aggregate tonnage must be at least 80,000
tons per year.

Swan Reefer completes deal

Swan Reefer A.S.A. has completed its purchase of Irgens Larsen.

Canadian Pacific completes acquisition of Ivaran Lines

Canadian Pacific Ltd. completed its purchase of Ivaran Lines, the
container shipping business of Ivaran Rederi A.S.A., on 20 May. The
acquisition will increase Canadian Pacific revenue and container volume by
almost 10 percent. Ivaran was founded in 1920 through the merger of several
companies controlled by Ivar Anton Christensen. Ivaran later shifted its
focus to the liner business between Argentina, Brazil, the United States
and Uruguay. Canadian Pacific has taken the Ivaran Lines name and business,
its 250 employees, mostly in Brazil and the United States; and its
services, which are between eastern South America and the eastern United
States with APL and Crowley Maritime Transport; eastern South America to
the U.S. Gulf coast with Grupo Libra and Transportacion Maritima Mexicana
S.A. de C.V.; and U.S. Gulf coast, Central America and the Carribean Sea.
Canadian Pacific will also take over six ships: the Ivaran Cuarto
(11,450-dwt, 563-TEU containership built in 1983), the Ivaran Sexto
(585-TEU containership built in 1994), the San Fernando (20,219-dwt,
1512-TEU containership built in 1996), the San Felipe (20,059-dwt, 1512-TEU
containership built in 1996), the San Francisco (20,300-dwt, 1512-TEU
containership built in 1996) and the San Isidro (20,326-dwt, 1512-TEU
containership built in 1993). It will also take control, but not ownership,
of the Americana (19,830-dwt, 1,120-TEU containership built in 1988), the
San Antonio (20,194-dwt, 1,512-TEU containership built in 1994) and the
Santa Rosa (30,078-dwt, 1,742-TEU dry cargo ship built in 1992). Canadian
Pacific will also get 26,000 TEUs.

Berlian Laju Tanker moves

P.T. Berlian Laju Tanker is moving its operations back to Jakarta,
Indonesia, it was announced recently.

O.O.C.L. names Tasmanian agent

Orient Overseas Container Line appointed Tasmanian Cargo Services as
its agent in Tasmania, Australia, on 15 May.

Poompuhar Shipping applies for foreign vessels

Poompuhar Shipping Corp. has filed a request with the Indian
government to charter foreign-registry ships.

Royal Carribean Cruises dividend

Royal Caribbean Cruises Ltd. has declared a quarterly dividend of
U.S.$0.15 per share for common stock shareholders of 2 June. It will be
payable on 29 June.

ENSCO International declares dividend

ENSCO International Inc. declared a cash dividend of U.S.$.025 per
share of common stock on 21 May. The dividend will be paid on 17 June to
stockholders of 3 June.

Far Eastern Shipping fined

The State of Washington has fined Far Eastern Shipping Co.
U.S.$182,000 following a fuel spill from one of its vessels in the state on
1 Jan.

ROUTES AND SERVICES

Association raising terminal handling charge

The United States Australia/New Zealand Associaion will raise its
terminal handling charge on 1 July. The new rate will be U.S.$390 per TEU,
a U.S.$80 increase.

Norasia Shipping Services starting trans-Atlantic route next month

Norasia Shipping Services S.A. is deploying five containerships on a
new weekly trans-Atlantic service that begins next month. The Canada-Europe
Express will be operated by a subsidiary, (N)XPRESS. The five are the first
of 10 new 1,400-TEU containerships being built by Howaldtswerke-Deutsche
Werft AG in Kiel, Germany. The first, the Norasia Samantha, will be
christened on 5 June and will enter service soon after. Weekly calls will
be made at Antwerp, Belgium; Felixstowe, England; and Montreal once the
Norasia Savannah and three others are delivered in July. Transit from
Felixstowe to Montreal will take six days. The ships will sail at 25 knots
and are classified by Germanischer Lloyd. They are hatchless and not
ice-strengthened.

Evergreen Marine shortens transit by replacing Pusan with Keelung

Evergreen Marine Corp. (Taiwan) Ltd. has reduced transit between Hong
Kong and Los Angeles by three days through the addition of a call at
Keelung, Taiwan. The transit time is now 14 days, down from 17, after
Pusan, South Korea, was replaced. The rotation is now Kaohsiung and Keelung
in Taiwan; Hong Kong; Los Angeles; Portland, Ore.; Tokyo, Shimizu and
Nagoya in Japan; and Kaohsiung. Cargo from South Korea will be handled on
the eastbound round-the-world service. That service is replacing 2,728 and
3,428-TEU containerships with 4,229-TEU ships.

Maersk Line, Sea-Land Service add ships to extended TP-2

In order to increase the number of containers moving through the
Panama Canal, Maersk Line and Sea-Land Service Inc. are adding four
2,500-TEU containerships to the North Asia Express (TP-2) service, which is
being extended to the eastern United States. Due to draft restrictions in
the canal, Maersk Line has said it is carrying 200 less FEUs through the
canal each week. To compensate, ships will not end their voyages at Long
Beach, Calif., but instead sail through the canal to Charleston, S.C.,
where they will turn around. The four vessels being added had been used on
the recently ended TP-4 service.

Mombasa surcharge starts

The Far East/East Africa Freight Conference is starting a vessel delay
surcharge of U.S.$120 per TEU for the Port of Mombasa, Kenya, on 1 June.

Hapag-Lloyd, P&O Nedlloyd Container Line file application

Hapag-Lloyd AG and P&O Nedlloyd Container Line Ltd. have filed an
application with the U.S. Federal Maritime Commission in which the two
firms will share 100 TEUs on each other's ships between northern Europe and
the eastern United States. If they are sub-chartered, both companies must
approve the deal.

Rederi Norlo Link expands

Rederi Norlo Link has introduced extra capacity between Germany and
Sweden.

New Pro-Log route

Pro-Log GmbH has started a new weekly container service betwen
Felixstowe, England, and Wilhelmshaven, Germany.

DFDS adds third service

DFDS has started a third ro/ro service using the chartered Inzheneris
Suhorukovs (Russian-registry 6,128-dwt, 60-trailer ro/ro ferry built in
1974). It sails from Kiel, Germany, on Monday and Thursday and from
Klaipeda, Lithuania, on Wednesday and Sunday.

Tirrenia plans

Next month, Tirrenia will introduce its two new MDV3000 Jupiter-class
fast ferries, which can carry 1,800 passengers and 460 vehicles. They will
sail between Civitavecchia and Olbia in Italy. As a result, in September,
two of the ree Arborea-class 11,300-gt ferries will be sold. The third will
be kept in reserve. The 12,500-gt Strada-class will be used on all services
that call at Cagliari, Italy, carrying 2,000 passengers with up to 800 lane
meters/2,600 lane feet of cargo space. Finally, the Toscana-class ferries
will replace the Sicilia-class vessels between Genoa and Livorno in Italy,
which operated via Cagliari. Genoa will be called four to five times weekly
while Livorno will be called three or four times each week. The vessels
have 1,600 lane meters/5,250 lane feet of space.

The first of the MDV3000 Jupiter-class vessels, the largest monohull
fast ferries in the world, recently completed trials. The vessels are being
built by Fincantieri Cantieri Navali Italiani SpA at its facilities in
Muggiano and Riva Trigosa, Italy. The Aries operated at 44 knots with 800
deadweight tons. The Taurus is now on trials. Both are built of
high-tensile steel with an aluminum alloy superstructure. Dimensions
include 145.6 meters/477.7 feet long, a 22-meter/72-foot beam and a depth
of 12.6 meters/41.3 feet. Propulsion of 70,000 kilowatts/95,000 brake
horsepower is provided by four 20-cylinder MTU 1163 TB73 L diesel engines
of 6,500 kilowatts/8,800 brake horsepower each and two General Electric LM
2500 gas turbines of 22,000 kilowatts/30,000 brake horsepower each. The
turbines power two booster waterjets and the engines control steering
waterjets, which are the largest yet built.

New Gulf of Bothnia route?

A Hong Kong company has applied to operate a fast ferry route in the
Gulf of Bothnia.

Contship Washington joins route

The German-registry containership Contship Washington has joined the
round-the-world service of Contship Containerlines Ltd.

Saint Patrick II renamed for new route

The Saint Patrick II (11,500-gt, 1,325-dwt, 1,500-passenger ferry
built in 1973 by J.J. Seitas in Germany), formerly of Irish Ferries, will
start a new service between Patras, Greece, and Brindisi, Italy, late next
month as the Egnatia II. The ferry had sailed between France and Ireland
until 1996, when it was chartered for four and a half years to Hellenic
Mediterranean Lines, which will buy it at the end of the charter. It had
been laid-up at Le Havre, France. Irish Ferries bought the vessel in 1982.
The Egnatia II has received new paint and is being refurbished in Piraeus,
Greece.

CANALS, PORTS AND HARBORS

Panama Canal draft restriction

As of 19 May, vesels transiting the Panama Canal are allowed a maximum
draft of 11.1 meters/36.5 feet except bulk carriers and tankers without
deck cargo, which may be able to transit at 11.3 meters/37.0 feet, based on
a case-by-case basis. On 21 June, it planned to lower the drafts to 11.0
meters/36.0 feet and 11.1 meters/36.5 feet.

Strait of Malacca to get traffic management

The International Maritime Organization has approved the formation of
a vessel traffic management system for the Strait of Malacca and Singapore.
It will start 1 Dec.

Canadian ports to pay for icebreaking individually

Canadian ports will begin paying for icebreaking as of 20 Dec. Under
the current system, all Canadian ports pay a fee whether they require
icebreaking or not. The new fee is expected to recover about Canadian$13
million/U.S.$9.0 million out of a total cost of C$76 million/U.S.$52
million for commercial icebreaking across Canada. More than 80 percent of
commercial Canadian icebreaking is paid for by Canadian citizens. Also, a
three-year cap has been placed on the fees paid by commercial vessels for
services provided by the Canadian Coast Guard.

India to expand opportunities of foreign firms in port businesses

The Indian government will allow foreign businesses to form
wholly-owned subsidiaries for investing in the countries ports. The
subsidiaries will be allowed to form joint ventures with domestic port
trusts, with the trusts holding a majority stake which can be decreased
later and at least 26 percent equity. Investment by foreign businesses has
been limited to build/operate/transfer (BOT) agreements until now. Foreign
joint venture partners will be chosen by negotiations. To enable the
ventures, the Indian Ports Act of 1908 and the Indian Major Trusts Act of
1963 will need changes. At present, port trusts can only hold 11 percent
equity in a joint venture through a BOT agreement.

Singapore highlights requirement for tankers to have certificate

As of 18 Sept., all tankers carrying more than 2,000 tons of oil as
cargo will need a certificate under the 1992 protocol to the International
Convention on Civil Liability for Oil Pollution Damage of 1969 in order to
be able to call at Singapore. By becoming part of the convention, Singapore
will have Singaporean$118 million/U.S.$72 million of compensation
available for damage and clean-up costs due to an oil spill. Under the
International Oil Pollution Compensation Fund of 1992, which Singapore will
join on 31 Dec., the amount will increase to S$400 million/U.S.$244
million. The money will be funded in part by petroleum businesses in
Singapore and will depend on the number of spills and administrative costs
in any given year.

Associated British Ports buys American Port Services, Exxtor Group unit

Associated British Ports said this week that the directors of American
Port Services has accepted the terms of a proposed acquisition. The cash
offer, made by Dresdner Kleinwort Benson on behalf of Associated British
Ports, values American Port Services at 106 million British pounds/U.S.$173
million . American Port Services, based in Baltimore, has 760 employees and
will become a subsidiary of Associated British Ports. The purchase is
Associated British Ports' first acquisition outside the United Kingdom and
expands its operations to U.S. aviation and vehicle operations in Europe
and the United States. American Port Services recently signed an agreement
with Cobelfret N.V. and Hessenatie N.V. to participate in processing
vehicles of Chrysler Corp. (to become ChryslerDaimler AG) at Zeebrugge,
Belgium.

Associated British Ports will also buy Exxtor Group Shipping Services,
which operates the Exxtor Terminal at Immingham, England, from Exxtor Group
Holdings. The deal is valued at 15.25 million pounds/U.S.$24.90 million.
The terminal has four ro/ro berths and a lo/lo terminal and the company
also operates a haulage service. It had pre-tax profits of 2.8 million
pounds/U.S.$4.6 million last year with a turnover of 36 million
pounds/U.S.$59 million. Exxtor Group Shipping Services has 186 full-time
employees and 59 contract personnel and handled 2.4 million tons of
unit-load cargo last year.

P&O Ports takes Maritime Union of Australia to court

P&O Ports has received a court order against attempts by the Maritime
Union of Australia to affect operations at the Australian ports of Adelaide
and Newcastle. At issue was working of the Handy Althea (Hong Kong-registry
26,517-dwt bulk carrier built in 1995, owned and operated by Pacific Basin
Agencies Ltd.) which was to carry cargo for SimsMetal Ltd. loaded in
Adelaide. The MUA said that the ship had been subcontracted to Patrick and
therefore should be handled by Patrick dockworkers. P&O Ports said the
contract for SimsMetal was new business, business which has now gone to
Sea-Land Service Inc. The MUA also staged a picket line at Newcastle,
Australia, where the Bay Bonanza (Panamanian-registry 10,103-dwt bulk
carrier built in 1997, owned by Doun Kisen and operated by Sanko Kisen) was
to unload zinc concentrate. The Australian Industrial Relations Commission
recommeded negotiations but P&O Ports went to a New South Wales court after
it said talks collapsed. Overshadowing the dispute has been confirmation by
P&O Ports that it wants to dismiss 450 of its 1,300 dockworkers and
incorporate overtime payments into base wages. The dockworkers are
represented by the MUA.

Patrick reorganization plan rejected by MUA, Columbus Line makes changes

Australian stevedore Patrick has outlined a reorganization plan that
would halve its assets. The proposal was rejected by the Maritime Union of
Australia, which represents its dockworkers, in a unanimous vote on 18 May.
Patrick had offered to rehire 750 dockworkers if the MUA stopped legal
action and took wage cuts. Patrick dismissed all of its 1,400 MUA members
as well as 600 part-time workers on 7 April. Some 400 people from nine
contractors replaced them at 17 ports. The Australian Hight Court ruled 4
May that the dismissal was illegal and that Patrick must rehire them. In
addition, the Australian government reportedly has started legal action
against the MUA for violations of the Australian Trade Practices Act.

Columbus Line announced vessel changes on 20 May due to the idling of
the Columbus Canada (Liberian-registry 23,365-dwt, 1,157-TEU containership
built in 1979, operated by Columbus Shipmanagement GmbH). On 9 May,
dockworkers of the International Longshore and Warehouse Union refused to
work the ship when it docked at Berth 208 of the Matson Terminal at the
Port of Los Angeles. The ship had been loaded by non-union dockworkers in
Australia and the ILWU personnel honored a protest at the terminal. An
arbitrator was summoned by the Pacific Maritime Association to settle the
dispute and a decision was made against the dockworkers. However, the ILWU
has refused to work the vessel. The take the place of the Columbus Canada,
the Columbus Victoria (23,165-dwt containership built in 1979, operated by
Columbus Shipmanagement), currently in dry dock, will be put on the route.
Also, the Columbus Queensland (Liberian-registry 24,320-dwt containership
built in 1979, operated by Columbus Shipmanagement) will join the service
for now.

Patrick said this week that the dispute with the MUA cost it
Australian$13 million/U.S.$8.2 million in legal fees, security and damaged
equipment. Revenue was cut 45 percent during the dispute.

Slowdown ends at Brazilian port

A 73-day slowdown by dockworkers at the Port of Salvador, Brazil,
ended 13 May when the Bahian Regional Labor Court ruled that deciding how
many dockworkers work and when they are scheduled to do so should be done
by Salvador's Workforce Management Body, not by labor unions. The National
Port Workers Federation and unions for clerks and dockworkers had brought a
suit challenging the port's authority.

Noumea affected by strike

On 18 May, striking dockworkers at Noumea, New Caledonia, continued a
three-day blockade of the port. At least one ship was stranded. The
dockworkers formed barricades around the port using containers. The strike
was called to protest the dismissal of 49 dockworkers and the merger of two
local labor unions.

First containership at New Mangalore affected by protest

The Orient Vision (Panamanian-registry 6,189-dwt containership built
in 1979) arrived at New Mangalore, India, on 18 May to become the first
containership to berth at the port since late 1995, following the port's
recent decision to restart container operations. However, it was reportedly
prevented from being worked by more than 300 people who protested on the
wharf. The New Mangalore Port Trust said that only 18 dockworkers were to
be present, and that the protesters attacked a truck driver and damaged the
vehicle of the trust's chairman.

Jinzhou Port issues stock

Stock of Jinzhou Port (Group) Co. Ltd. started trading on China's
Shanghai Stock Exchange on 19 May. The company issued 100 million "B"
shares worth one Chinese yuan/U.S.$0.12 which were sold for 1.74
yuan/U.S.$0.21. Proceeds will be used to build a bulk cargo berth and
expand a storage area at the port in China's Liaoning province. The port
has six berths for 10,000-dwt ships and handled five million tons of cargo
last year.

Evergreen Marine formally signs Taranto concession

Evergreen Marine Corp. (Taiwan) Ltd. has signed a 30-year concession
to operate a container terminal in Taranto, Italy. Evergreen Marine will
invest U.S.$135 million over five years to establish a terminal on the Molo
Polisettoriale Quay. It will start operations in 18 months. In the first
stage, the first 500 meters/1,640 feet of the quay will get four
post-Panamax cranes, a mobile crane and other equipment. At the completion
of phase four, the terminal may have up to 18 post-Panamax cranes on two
kilometers/three miles of quay.

Joint venture for Shekou

Modern Terminals Ltd. and P&O Ports will jointly operate Shekou
Container Terminals Ltd. in China as of 1 June. The venture will operate
until a joint management business is formed with China Merchants Holdings
to operate at West Shenzhen.

Indian Navy clears Chennai

The Indian Navy has stepped to clear cargo at the Port of Chennai,
India, following a strike by senior tug masters.

Terminaux de Normandie bankrupt

French stevedore Terminaux de Normandie has entered receivership.

Taros Line to operate quay at Cagliari

Taros Line was given a 20-year concession this week to operate a quay
at Cagliari, Italy.

Colombo agents appeal ruling against terminal handling charge

Agents of shipping lines that call at the Port of Colombo, Sri Lanka,
have filed an appeal with the Sri Lanka Fair Trading Commission over a
ruling by the commision that a terminal handling charge of about U.S.$74
per TEU was "anti-competitive." Reportedly, most agents are defying the
decision and are still charging.

Thamesport approved as food-grade handler

The London International Financial Futures & Options Exchange has
approved Thamesport, England, as an approved handler of food-grade
products.

Shenzhen gets container tracking service

A electronic information business has started operating at Shenzhen in
China's Guangdong province. It will monitor container movements in the port
under a 15 million Chinese yuan/U.S.$1.8 million project.

Halifax dockworkers agree on new contract

Longshoremen's Association Local 269 at the Port of Halifax, Nova
Scotia, ratified a new collective agreement recently with 90 percent of
members voting for it. The deal includes a four-year wage increase.

Cory Towage gets Oman contract

Cory Towage has received the contract for pilotage and towage at the
new container terminal at the Port of Sharjah, Oman. The agreement with
Salalah Port Services includes supervision of the design and construction
of two tugs and the firm will also provide two tractor tugs. Cory Towage
has formed Cory Towage & Marine Services in Oman with Ofsat. The Mina
Raysut Container Terminal is scheduled to open on 1 Nov. Cory Towage
recently won a similar contract for Venezuelan tanker terminals.

Le Havre withdraws cranes from service for inspection

The Port of Le Havre, France, has put back in service five gantry
cranes that had been withdrawn for inspection. Late 13 May, the cabin, jib
and spreader of a similar crane at the port collapsed into the cargo hold
of the Canmar Fortune (Bermudan-registry 34,330-dwt, 1,700-TEU
containership built in 1995, operated by Canada Maritime Services Ltd.)
during loading operations at Terminal de l'Atlantique. The operator was
last reported to be in very serious condition. A 200-ton floating crane was
used to lift out the remains of the crane from the ship. At least three
containers in the hold were seriously damaged and terminal was been closed.

Peavey terminal gets new operators

A venture of Archer Daniels Midland and Conagra has taken over
operation of a former Peavey grain terminal at Kalama, Wash.

Durban buys pollution control vessel

The Port of Durban, South Afircam has become the first African port to
operate a pollution control vessel. The Udoti, which cost 1.4 million South
African rand/U.S.$275,000, will be used by Portnet. The vessel was designed
in Liverpool, England, and built under the name Water Witch.

Driver injured at British port

The driver of a Valmet straddle carrier at Mersey Docks and Harbour
Co.'s Seaforth Container Terminal in the United Kingdom suffered spinal
injuries recently when the carrier hit a pylon supporting a light. The
driver was trapped in the carrier for two hours. Reportedly, the carrier's
steering wheel came loose.

Bangladesh ports closed

Several ports in Bangladesh suspended operations on 19 May and 20 may
due to a storm. They include Chittagong, Cox's Bazar and Mongla.

Provisional British port totals announced

The British government said 21 May that cargo moving through British
ports increased seven million tons last year to 558 million tons, up 1.3
percent from 1996. Freight traffic stood at 522 million tons, up nine
million tons and 2 percent. Container and ro/ro cargoes increased 15
million tons to 123 million tons, up 14 percent. Crude oil traffic declined
3 percent to 178 million tons, while petroleum products declined 4 percent
to 80 million tons. Foreign cargoes totaled 366 million tons with 195
million tons in imports and 171 million in exports. Foreign cargoes were up
17 million tons. Domestic cargo decreased 5 percent to 156 million tons.

Canadian totals for 1997

Canadian ports handled a record amount of cargo last year, including
the highest amount of international cargo in nine years. Total
international cargo was 282.3 million tons, up 8.5 percent. Total cargo was
375.5 million tons, up 5 percent.

Some 38.5 million tons of crude oil were handled, a jump of 25
percent. Much of the oil was from Norway and the United Kingdom and moved
through Port Hawkesbury, Nova Scotia, where it was transshiped to tankers
for movement to the United States. As a result, Port Hawkesbury's
international cargo increased 7.6 million tons and climbed from the 11th
port to sixth.

Canadian ports handled 52 million tons of coal and 34.2 million tons
of wheat, up 8 percent and 25 percent. Almost all coal and 60 percent of
the wheat were shipped internationally. Vancouver, British Columbia, loaded
28.3 million tons of coal and 8.3 million tons of wheat, increases of 3
percent and 7 percent. Prince Rupert, British Columbia, loaded 6.6 million
tons of coal, 1.5 million tons more than in 1996, and four million tons of
wheat, a 1.4 million ton increase. All of it was exported.

On the North American Great Lakes, Canadian ports received 13.2
million tons of coal from U.S. Great Lakes ports, up 17 percent. Most of
the increased was handled at the Ontario ports of Courtright and Nanticoke.
More than two-thirds of the increase in wheat was due to increased domestic
shipments. Thunder Bay, Ontario, handled 53 percent more wheat with 8.1
million tons in all.

Iron ore rose almost 10 percent to 40.9 million tons with increased
exports from Sept-Iles/Pointe-Noire in Quebec to Europe, particularly the
Netherlands and the United Kingdom. Cargo at Sept-Iles/Pointe-Noire was up
8.4 percent to 24.5 million tons, making it the number two port.

Vancouver, the largest port, handled 71.8 million tons, handling the
most coal, sulphur and wheat and the second highest amount of containers.
International cargo accounted for 99 percent with 92 percent for export.

Montreal handled 8.2 million tons of containers while Vancouver had
six million tons, a 16 percent increase. Halifax, Nova Scotia, handled 4.7
million ton containers, up 17 percent. Halifax, Montreal and Vancouver
handled 93 percent of containerized cargo.

Antwerp figures for 1997

The Port of Antwerp, Belgium, handled 111.89 million tons of cargo
last year, its best year ever and a 5 percent increase from 1996. Some
33.43 million tons of containers were handled, up four million tons and
13.5 percent. In TEUs, the total was 2,969,189, up 12 percent or 300,000.
Some 4.16 million tons of pulp and paper were handled, up 9 percent. Fresh
fruit stood at 1.72 million tons. Ro/ro cargo was 5.39 million tons, up 13
percent. Other cargoes included 919,000 tons of flour, up 15 percent;
869,000 tons of sugar, up 8 percent; and 520,000 tons of bagged fertilizers
and other chemicals, up 15 percent. Bulk fertilizer was up 5 percent to
4.78 million tons. Iron and steel dropped 9 percent to 8.97 million while
iron ore was down 1.3 million to 8.2 million tons. Coal dropped 4 percent
to 7.4 million tons. Crude oil jumped 22 percent to 7.66 million tons and
oil derivatives increased to 16.56 million tons while liquid chemicals
stood at 4.7 million tons. In all, 15,861 vessels called, up 444. Also,
European river vessels carried 57.59 million tons.

Colombo figures

The Port of Colombo, Sri Lanka, handled 1.7 million TEUs last year.
Vessel waiting time was 6.9 hours for liner vessels, 24 hours for feeders
and 28.5 hours for other ships. Gantry crane moves increased from 18 per
hour to 20 per hour.

SHIPYARDS AND EQUIPMENT

Kvaerner Ships equipment, Nakashima Propeller forming venture

Kvaerner Ships Equipment and Nakashima Propeller Co. Ltd. are forming
a joint venture in Japan to build cargo access equipment for vessels.
Kvaerner Nakashima Ships Equipment Co., based in Tokyo, will design, sell,
manufacture and install equipment.

FAMA sold to Ulstein Holding

Ulstein Holding A.S.A. has bought 50.08 percent of FAMA for U.S.$1.0
million from Stocznia Szczecinska S.A. FAMA will become part of Ulstein
Brattvaag A/S, manufacturing anchor windlasses, mooring winches and
shipboard cargo handling equipment. It will also do rudder work for Ulstein
Nor A/S. FAMA has about 400 employees and had a turnover last year of about
U.S.$5.4 million with an operating profit of U.S.$241,000. It is based in
Gniew, Poland, and has equity of U.S.$800,000. FAMA was a Polish
government firm until February. The Polish government has 49.92 percent of
FAMA and 15 percent will be transferred to employees. FAMA will need about
U.S.$1.3 million annually for a few years to modernize.

Naval Gijon to have debts written off

The Spanish government will write off debts of Naval Gijon S.A. as
part of its restructuring.

COSCO orders nine containerships from China State Shipbuilding

China Ocean Shipping (Group) Co. has ordered nine 1,600-TEU
containerships for U.S.$200 million. Five will be built by Dalian Shipyard
and four by Shanghai Shipyard, both of China State Shipbuilding Corp. The
vessels will have capacities of 25,800 tons and will be delivered by 2000.
The ships will be 180 meters/590 feet long with a beam of 27 meters/90
feet.

Norwegian Cruise Line to order one new ship, options for three more

Norwegian Cruise Line Ltd. said 18 May it has signed a letter of
intent with Lloyd Werft Bremerhaven GmbH for one 76,000-gt passenger ship
and options for three more. The ship will carry 2,000 passengers and will
be delivered in summer 2000. The option ships would be delivered in 2001,
2002 and 2003. The average price of each of the four ships is U.S.$332
million.

3 MAJ Shipbuilding Industry gets order for two tankers

Interests of Glauco Lolli-Ghetti have ordered an 81,500-dwt tanker and
a 63,000-dwt tanker from 3 MAJ Shipbuilding Industry in Rijeka, Croatia.
They will be delivered in 2001 and were ordered throigh Ferens Shipping and
Lerici Shipping for operation by Scorpio Shipmanagement. Each vessel will
be 239 meters/784 feet long with a 36.4-meter/119-foot beam. Their drafts
will be 13.3 meters/43.6 feet and 11 meters/36 feet. Propulsion will come
from a six-cylinder 3 MAJ-Wartsila NSD RTA 62 U engine of 12,200
kilowatts/16,600 brake horsepower operating at 105 revolutions per minute
for 15 knots.

Bergesen signs deal with Stocznia Gdynia

Bergesen DY A/S has ordered two new
78,500-cubic-meter/102,050-cubic-yard gas carriers from Stocznia Gdynia
S.A. for U.S.$126 million. They will be delivered in June 2000 and December
2000 and there are options for four more. Forty percent of the cost will be
paid during construction with the rest due at delivery.

Hitachi Zosen to build FPSO hull

Hitachi Zosen Corp.'s Ariake facility in Japan will build an enhanced
Afraxmax hull for Bluewater Group. it will be used as a floating
production, storage and offloading vessel.

COTUNAV orders new vessel

Cie. Tunisienne de Navigation has ordered a 180-meter/591-foot ferry
from Fosen MEK Verksteder A/S in Norway for delivery in mid-1999. It will
carry 2,200 passengers and 666 vehicles.

Keppel Smit Towage to get new tugs

Keppel Singmarine Dockyard Pte. Ltd. will build four 30-meter/98-foot
tugs for Keppel Smit Towage Pte. Ltd.

More on new Australian Customs Service patrol vessels

Austal Ships Pty. Ltd. was awarded an Australian$58.4
million/U.S.$36.8 million contract on 11 May for the construction of eight
35-meter/115-foot monohull Bay-class patrol vessels for use by the
Australian Customs Service. The first will be delivered in March and the
last in February 2001 from the Henderson facility near Fremantle,
Australia. Each will have two MTU diesel engines for 20 knots. Austal Ships
will also maintain the new vessels for three and a half years with options
for a total of 10 years and will also train the crews.

Kvaerner Masa-Yards Technology announced B-Max fast ro/ro

Kvaerner Masa-Yards Technology has announced a new ro/ro design using
Azipod diesel-electric propulsion. The 25-knot monohull, the B-Max, was
developed under the SeaTech Finland program. The bridge and four main
generator sets are located forward, the latter to form a power station-type
plant of 24 megawatts. The two Azipod thrusters will produce 10.5 megawatts
each from four nine-cylinder Wartsila L38 engines of 5,940 kilowatts/8,080
brake horsepower each. There are two engine rooms, each with two generator
sets, separated by a fire bulkhead. The bridge is immediately abaft the
collision bulkhead. There are no center or side casings on the ro/ro decks,
which have 2,500 lane meters/8,200 lane feet. The dimensions of the B-Max
include a length of 175 meters/574 feet, a beam of 27 meters/89 feet and a
draft of 6.5 meters/21 feet. The three-deck design has eight lanes three
meters/10 feet wide or nine cassette lanes of 2.6 meters/8.5 feet. There is
no bow door. Just inside the stern ramp, a ramp leads to the lower deck
while the upper deck is accessible across the upper level of a two-tier
linkspan. There are no internal ramps between the main and upper decks.
Kvaerner Masa-Yards Technology claims that the design will reduce berthing
time by 15 minutes compared to conventional ro/ros and will reduce cargo
handling by 15 to 30 minutes. B-Max variants include a macrocasette carrier
designed for 360-ton capacity, multi-freight unit cassettes and three-ton
per square meter deck loadings and a ro/ro passenger ferry.

New EconoShip ro/ro design unveiled

NaviForm Consulting and RoRo Partners has unveiled a new ro/ro design
called EconoShip. Cargo is located on two decks and there is no lower cargo
hold. Construction is simplified as there are no wing tanks and there are
only two stern ramps to access cargo. Plate forming is also curtailed.
Under a design named EconoForm, there is a simplified engine room with
diesel engines in podded units and short propeller shafts. The design will
have 1,200 lane meters/3,930 lane feet to 1,800 lane meters/5,910 lane feet
with seven lanes. Dimensions include a beam of 23 meters/75 feet and a
length of either 117 meters/384 feet ot 159.5 meters/523.3 feet. The first
vessel will be built at ASMAR Shipbuilding & Docking Co. in Chile. Car
carrier and containership variants are planned, with the latter having 15
percent less capacity but costing less to build than a conventional ship.

Ticonderoga-class getting upgrades

Litton Industries Inc. received a U.S.$138.6 million contract 20 May
to modernize the U.S. Navy's Ticonderoga-class Guided-Missile Cruisers.
Engineering control and bridge systems will be replaced by December 2003.

Silversea Cruises announces new ship details

Silversea Cruises Ltd. said 21 May that it has ordered two
396-passenger ships from T. Mariotti SpA in Genoa, Italy, for delivery in
July 2000 and May 2001. There is an option for two more for delivery in
2002 and 2003. The hulls will be built at Cantiere Navale di Visentini
Francesco & Co. in Donada, Italy, with outfitting at T. Mariotti. The
vessels will cost more than U.S.$300 million. Bjorn Storbraaten and Petter
Yran of Oslo, Norway, have been hired to design the 25,000-gt ships, which
will have a passenger space ratio of 63. Each ship will have a crew of 287.
Each ship will have 198 suites on the water with more than 85 percent
having private teak verandas. There will also be two Owner's Suites, four
Grand Suites, nine Silver Suites, 161 Veranda Suites, 20 Vista Suites
without verandas and two suites, with verandas, for passengers with
physical limitations. The larger suites, such as the Owner's, Grand and
Silver, will be amidship. The Veranda Suite will have 32.4 square
meters/360 square feet including the veranda, with a walk-in closet and a
bathroom that has a telephone, a double-basin vanity, a full bath and
shower and a separate water closet. Each vessel will have a restaurant
called The Grill, located along the pool. The Terrace Cafe and The
Restaurant, present on other ships, will continue. A spa facility on the
top deck will include sauna and steam rooms as well as exercise equipment.
Adjacent to the spa will be the Observation Lounge. Other areas include a
Computer Center, a Conference Center and a Cigar Lounge, as well as
self-service laundry and five elevators. The vessels will be 182 meters/597
feet long, have a beam of 24.8 meters/81.4 feet and a draft of six
meters/19.7 feet. They will sail at 21 knots.

Coeclerici to place two converted ships in service

Coeclerici SpA has taken delivery of two bulk carriers converted by
San Giorgio del Porto S.A. at Genoa, Italy, for U.S.$32 million. The Bulk
Gulf (Maltese-registry 81,658-dwt bulk carrier built in 1982, formerly the
Red Ivy) and the Bulk Wayuu (64,400-dwt double-hulled gas tanker built by
Mitsubishi Heavy Industries Ltd. in Japan, formerly the Cabo Prior) will
start operating next month in Bahrain and Venezuela, respectively, under
long-term contracts. The Bulk Gulf has four 25-ton deck cranes with a
37-meter/121-foot reach, three belt conveyors and a 67-meter/220-foot
transfer boom. It will operate as a transshipment and storage ship about 32
kilometers/20 miles off Bahrain for GIIC. The ship will unload 48,000 tons
per day. The Bulk Wayuu is now a barge for transshipment and storage for
Carboned del Guasare on Lake Maracaibo, Venezuela. The vessel has four grab
cranes and has a loading rate of 30,000 tons of coal daily.

Jade Express delivered

The Jade Express has been delivered to L'Express des Iles. The
48-meter/157-foot French-registry vessel carn carry 330 passengers and 10
vehicles at 40 knots. It will sail between Pointe-a-Pitre, Guadeloupe, and
Fort de France, Martinique.

Royal Carribean Cruises orders turbines for new ships

Royal Carribean Cruises Ltd. has ordered gas turbines for six ships it
has under construction. The equipment will be part of a combined gas
turbine and steam turbine electric drive system. It is said to be the first
such application for passenger ships. General Electric Co. will deliver
LM2500+ gas turbines for the two Millenium-class 85,000-gt ships at
Chantiers de l'Atlantique for Celebrity Cruises Inc. and one Voyager-class
ship for Royal Carribean International to be built in Papenburg, Germany,
by Jos. L. Meyer Werft GmbH & Co. The other turbines are for three ships
that are options for delivery by 2003. The Millenium-class vessels will
carry 1,900 passengers and will be delivered from St. Nazaire, France, in
June 2000 and January 2001. The Voyager-class 2,000-passenger ship will be
delivered in February 2001. Each ship will get two gas and one steam
turbine. The gas turbines are rated at 25,000 kilowatts/34,000 brake
horsepower.

Kvaerner Ships Equipment gets new contracts

Kvaerner Ships Equipment has announced several orders. It will build
three sets of cargo access equipment that will be used on three
6,000-vehicle ro/ros being built in South Korea by Daewoo Heavy Industries
Ltd. Sets will also be built for two 6,260-vehicle ro/ros for Leif Hoegh &
Co. A.S.A. being build in Poland. Other equipment will be built for a ferry
at Fosen MEK Verksteder A/S in Norway for Cie. Tunisienne de Navigation and
for a U.S. Marine Corps preposition ship being converted from a ro/ro at
Bender Shipbuilding & Repair Co. Inc.

U.S.C.G.C. Mackinaw getting new paint

The U.S. Coast Guard Icebreaker U.S.C.G.C. Mackinaw (WAGB 83),
homeported at Cheboygan, Mich., for operations on the U.S. Great Lakes,
will lose its white hull following work that will begin the last week of
this month. When repainting is done in mid-June, the ship will have a
bright red hull. In addition to making icebreaking safer, since the red
will visually stand out from ice fields better than the white, the new
paint will be easier to maintain and will not show as much wear.

Design for British/Irish aids to navigation vessel

More design information is available on the new vessel to service aids
to navigation for the General Lighthouse Authorities in Ireland and the
United Kingdom. It will cost U.S.$26 million and will be based at the
Commissioners of Irish Lights station at Dun Laoghaire, Ireland. Sixty-five
percent will come from the British General Lighthouse Fund with the rest
from the Irish government. The 1,132-dwt design is by Hart Fenton & Co.
Ltd. in Portsmouth, England. It is 79.7 meters/261 feet long, has a
16-meter/52-foot beam and a 4.5-meter/15-foot draft. It will be built by
Damen in the Netherlands for delivery in late 1999. The new ship will have
a buoy working area aft of 600 square meters/720 square yards and will be
able to carry 18 buoys. A 20-ton crane with 18-meter/59-foot reach will be
fitted along with two 15-ton capstans and the vessel will have dynamic
positioning capability. Other capabilities include pollution response and
helicopter recovery and refuelling equipment. Propulsion will come from
five 3,700-kilowatt diesel alternators powering two azimuthing propellers
in nozzles for 13.1 knots. The vessel will have a 40-ton bollard pull. Two
workboats and a twin-engine waterjet rigid inflatable boat will be carried.

EVENTS, INCIDENTS AND OPERATIONS

Two hospitalized after pirate attack

The Yin Chuan (Chinese-registry 15,474-dwt dry cargo ship built in
1974, operated by COSCO Shanghai) was attacked by pirates at Mombasa,
Kenya, recently. Two crewmembers were hospitalized.

Canada bans western coho fishing

Canada banned coho fishing along its western coast on 21 May due to
declining stocks. In addition, other salmon fishing will be restricted to
prevent accidental catches of coho.

Four parachute to vessel to treat injured crewmember in the Atlantic

On 18 May, the 36.6-meter/120-foot fishing vessel Cam Civet reported
that a crewmember had internal hemorrhaging and had been unconscious for
several hours. The Cam Civet was located 1,600 kilometers/1,000 miles east
of Bermuda and was sailing from Portugal to Halifax, Nova Scotia. The Hood
Island (Bahamian-registry 14,140-dwt, 187-meter/614-foot refrigerated ship
built in 1994, operated by Trireme Vessel Management N.V.) responded and
took the crewmember aboard on 19 May, 1,280 kilometers/800 miles east of
Bermuda. The same day, a U.S. Coast Guard HC-130H Hercules from Coast Guard
Air Station Elizabeth City, N.C., flew to the area and four
medically-trained personnel from the New York Air National Guard's 106th
Rescue Wing at F.S. Gabreski Airport in Westhampton Beach, N.Y., parachuted
to the Hood Island. The crewmember, Joao Fernandez, 32, a Portguese
citizen, in stable condition, was at last report under supervision of the
four personnel and was being taken to Miami by the Hood Island.

Turkish Coast Guard vessel, Greek fishing vessels involved in incident

A Turkish Coast Guard vessel reportedly used water hoses against
Greek-registry fishing vessels on 17 May between Alexandroupoli, Greece,
and the Turkish coast. The Turkish government vessel is said to have
ordered the vessels to stop for an inspection. After other Greek vessels
arrived, the Coast Guard vessel is said to have left the area.

U.S. Coast Guard medical evacuations

A U.S. Coast Guard HH-60J Jayhawk helicopter from Coast Guard Air
Station Elizabeth City, N.C., evacuated a crewmember from the
26-meter/85-foot fishing vessel Alice Amanda about 80 kilometers/50 miles
off Virginia Beach, Va., on 15 May. Ronald Cobely, 33, was flown to Norfolk
Sentara General Hospital in Norfolk, Va., and was in good condition. The
vessel is homeported in Virginia's Hampton Roads area.

A Coast Guard HH-65A Dolphin helicopter from Coast Guard Air Station
Miami evacuated a 43-year-old man from the Sea-Land Producer (26,061-dwt
containership built in 1974, operated by Sea-Land Service Inc.) at 1430 20
May, 46 kilometers/29 miles east of Eleuthera Island, the Bahamas. James
Barker, of Orlando, Fla., suffered a broken right femur during an accident
on the ship involving steel plates. The helicopter took Barker to Doctors
Hospital in Nassau, the Bahamas.

Man missing in the Atlantic Ocean

Just after midnight 19 May, the sailing vessel Symphonia reported that
a man had fallen overboard, 1,600 kilometers/1,000 miles southeast of
Halifax, Nova Scotia. Canadian Air Command aircraft and a U.S. Coast Guard
HC-130H Hercules from Coast Guard Air Station Elizabeth City, N.C.,
searched the area. The Olga Topic (Liberian-registry 45,483-dwt bulk
carrier built in 1995, operated by Marfin Management SAM) was also
searching the area.

Catch of fishing vessel seized off New Hampshire

The U.S. Coast Guard's "Island"-class Patrol Boat U.S.C.G.C. Wrangell
(WPB 1332) seized the catch of the Miss Pat (U.S.-registry 20-meter/67-foot
fishing vessel homeported at Portland, Maine) on 19 May, 48 kilometers/30
miles east of Portsmouth, N.H. The Miss Pat was found about three
kilometers/two miles inside Rolling Closed Area 3, an area of the Atlantic
Ocean closed to commercial fishing this month. The catch, with an estimated
value of U.S.$7,000, is the first seizure made in the closed area. The Miss
Pat was escorted to Portland.

Timeline of Petro Ranger piracy incident

A timeline of the recent piracy incident involving the Petro Ranger
(Malaysian-registry 6,718-gt, 12,357-dwt, 128-meter/420-foot tanker built
in 1971, operated by Petroships Pte. Ltd.) has begun to emerge following
investigations by the Chinese government and other countries, businesses
involved and accounts of the 20 crewmembers. The ship, with a cargo of
11,165 tons or 77,000 barrels of diesel fuel and kerosene worth U.S.$1.5
million, left Singapore on 16 April for Ho Chi Minh City, Vietnam. The
cargo is owned by Petec Trading and Invesyment Corp. and was insured in the
London insurance market. The ship was last heard from at 1200 17 April
while off Tioman Island, Malaysia. Sometime after, the vessel was boarded
at sea by 12 Indonesian citizens who used hooks and ropes to board the
vessel. The armed group destroyed the Petro Ranger's communications
equipment and kept most of the crew confined. A Honduran flag was put in
place, the funnel was repainted and the ship's name was changed. During its
time under pirate control in the South China Sea, the Petro Ranger
lightered 4,000 tons of its cargo, divided between two vessels. On 26
April, the Chinese government found the Petro Ranger along with a third
lighter loaded with 2,000 tons of cargo. The two were taken to Haikou,
China.

Four crewmembers from ship off Long Beach return to Romania

The four crewmembers who jumped overboard from the George
(Bahamian-registry, 161 meters/529 feet long) off the Port of Long Beach,
Calif., at 0245 14 May returned to Romania on 18 May. The four Romanian
citizens were stowaways on the ship and were found at sea some time ago.
They were hired as crewmembers and when the ship anchored near Long Beach,
they jumped overboard in an attempt to enter the United States. The owners
of the ship paid for the four to return.

VESSEL TRANSFERS

Jahre Viking sold

The Jahre Viking (Norwegian-registry 564,650-dwt tanker built in 1976,
operated by Jahre Dahl Bergesen), the largest ship in the world, is
reportedly being sold by Merkur Tankers to Bermudan interests.