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World Maritime News - 28 Nov., 1997

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Steve Schultz

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Nov 29, 1997, 3:00:00 AM11/29/97
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World Maritime News - 28 Nov., 1997
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BUSINESS

Argonaut, Nordstrom & Thulin to merge to form 22-ship operator

Argonaut A.B. and Nordstrom & Thulin A.B. said 24 Nov. they will merge
to form N&T Argonaut, a vessel operator with 22 ships totaling four million
deadweight tons. The fleet includes 10 very and ultra large crude carriers,
five Suezmax tankers, four Aframax tankers and three Capesize bulk
carriers. Argonaut has proposed an exchange of 13 Class A and B shares in
the new firm for 10 shares in Nordstrom & Thulin, which has held 28 percent
of Argonaut's shares since 1993 and 48.4 percent of the voting rights. The
deal is valued at 1.85 billion Swedish kronor/U.S.$239 million or 22.75
kronor/U.S.$2.94 per share. N&T Argonaut will be listed on the Stockholm
Stock Exchange with a market value of 3.7 billion kronor/U.S.$479 million
and a net value of 4.2 billion kronor/U.S.$543 million. It will have 969
million kronor/U.S.$125 million in liquid assets and am equity ratio of 47
percent. N&T Argonaut will be headquartered at Nordstrom & Thulin's faclity
in Stockholm, Sweden, with Argonaut's headquarters to be leased. Nordstrom
& Thulin will withdraw from all operations not related to the tanker
business, including its 50 percent stake in ferry operator Estline, sailing
between Estonia and Stockholm, and Gotlandslinjen, which has three ferries.
Helmut Sohmen, owner of the largest tanker operator in the world,
World-Wide Shipping, owns 66 percent of Norstrom & Thulin and will invest
514 million kronor/U.S.$66.5 million in N&T Argonaut. He will become
chairman of N&T Argonaut and will have 48.6 percent of the voting shares.
Also, Argonaut will buy the Suva (Panamanian-registry 279,984-dwt tanker
built in 1993) from World-Wide Shipping and issue 540 million
kronor/U.S.$69.9 million in new shares. Argonaut reported a profit of 105
million kronor/U.S.$13.6 million last year with sales of 632 million
kronor/U.S.$81.8 million, while Nodstrom & Thulin had a profit of 68
million kronor/U.S.$8.8 million on sales of 875 million kronor/U.S.$113
million. Shareholders representing 79 percent of the votes of Nordstrom &
Thulin and 47 percent of the share capital have approved the deal. The
merger is expected to save as much as 10 million kronor/U.S.$1.3 million
annually through rationalization.

P&O Bulk Shipping, Shougang Group to bulk shipping operations

P&O Bulk Shipping Ltd. said 28 Nov. it will merge with the shipping
unit of Shougang Group to form a new joint venture. The merger will form
one of the three largest dry cargo fleets in the world with tonnage of more
than four million deadweight tons. A final agreement is to be signed early
next year. As planned, each firm will transfer its existing bulk carrier
operations into the new firm for cash and a 50 percent stake. P&O Bulk
Shipping had sales last year of 130 million British pounds/U.S.$218 million
and operates 18 Capesize bulk carriers that carried 20 million tons of
cargo last year. Shougang Group, one of the the top three Chinese steel
producers with sales of U.S.$2.4 billion last year, has eight ships with
one on order. Its fleet primarily carries iron ore to its facilities
including from three mines it owns, one of which is in Peru. P&O Bulk
Shipping said its shareholders would get a cash injection from the deal and
also that the amount of cash freed up by the deal would be less than the
160 million pounds/U.S.$268 million of assets to be transferred to the
venture.

Bollore Technologies takes half of Saga

Bollore Technologies has bought half of Saga, the French logistics and
stevedoring firm, reportedly for U.S.$27 million. Bollore Technologies
bought the stake from Cie. Maritime Belge N.V. and Safren. In addition,
Cie. Maritime Belge and Safren have signed a cooperation agreement with
Saga through their affiliates. Saga will offer cargo, port handling and
logistics services to Safmarine & CMBT Lines N.V. Also, Cie. Maritime
Belge, Bollore Technologies' Delmas and Safmarine will expand their liner
services between eastern and western Africa and the Indian Ocean.

Boluda Off Shore to buy majority of Naviera Pinillos

Boluda Off Shore S.A. will buy 87 percent of Naviera Pinillos for 1.3
billion Spanish pesetas/U.S.$7.8 million.

Jardine Lloyd Thomson buys Colburn French & Kneen Holdings

The broker Jardine Lloyd Thomson will pay 5.25 million British
pounds/U.S.$8.79 million in cash, shares and paper for Colburn French &
Kneen Holdings, which owns a Lloyd's brokerage specializing in marine
insurance.

Croatia Line gets loan facility

Croatia Line will receive a U.S.$99 million loan facility to deal with
financial problems. Arranged by a European bank consortium, it will
refinance a majority of its long-term obligations and reduce short-term
debt.

India to abolish crude oil import reservation

India will drop its reservation of crude oil imports for Shipping
Corp. of India Ltd. on a cost plus freight basis.

Brostroms increases United Tankers stake

Brostroms has added to its stake in United Tankers A.B. through a
purchase of shares and now has 98.7 percent of its capital and 99.4 percent
of its voting rights.

Elite Shipping to restructure

Shareholders last week approved a restructuring plan for Elite
Shipping and Torben Palle Hansen and Rino Lange said they will resign from
the board of directors if the plan is not implemented within a year. The
two founded Elite Shipping and are its largest shareholders. Elite Shipping
will hire a financial firm to prepare a prospectus. The decision to support
the plan came at an extraordinary shareholder meeting called following a
dispute among board members. In addition to approving Hansen and Lange,
Karl Stephensen and Peter Weitemeyer were also named, the former as
chairman. Elite Shipping's generates a strong cash-flow, but due to market
conditions, the firm has said it will be difficult to make debt payments,
which are due over a short time.

Far Eastern Sea Shipping gets E.B.R.D. credit for new containerships

The European Bank for Reconstruction and Development has given a
U.S.$93 million long-term credit to Far Eastern Sea Shipping Co. for the
purchase of three 1,700-TEU containerships with a total capacity of 100,000
tons. The credit was organized by commercial banks in France, the
Netherlands and Norway. The credit extends nine years and will be serviced
on principles of project financing.

Panamanian-registry fishing vessels must get license under new decree

Under Panamanian Executive Decree No. 49, issued on 13 Nov.,
Panamanian-registry fishing vessels fishing outside the country must now
obtain an International Fishing License. The license will be issued by the
General Directorate of Marine Resources of the Panamanian Ministry of Trade
and Industries. The license is valid one year and all Panamanian-registry
vessels as of 17 Nov. that fish abroad must receive the license by 17 Feb.
or their registration will be cancelled. Vessels lacking the license face a
fine and possible seizure.

Sea-Barge Group changes hands

The assets and liabilities of Sea-Barge Group Inc. have been sold to
Sea-Barge Line Inc. Sea-Barge Line will continue top operate a fixed-day
weekly container barge service to Puerto Rico with four tugs and four
300-FEU barges. The service will leave Jacksonville, Fla., on Wednesdays
and Port Everglades, Fla., on Fridays for San Juan, Puerto Rico.

Alaskan passenger operator sold

Cook Inlet Region Inc. has bought Stans Stephens Cruises, which
operates passenger vessels in Prince William Sound, Alaska, and a camp on
Growler Island.

Minoan Lines Shipping to seek stock listing

Shareholders of Minoan Lines Shipping S.A. have approved, by 83.39
percent, a plan to seek a listing on the Athens Stock Exchange.

Pegasus Shipping (Hellas) issues U.S.$150 million in bonds

Pegasus Shipping (Hellas) Ltd. has completed the issue of U.S.$150
million in high-yield bonds, primarily in U.S. capital markets. It is
issuing first preferred ship mortgage notes secured on its six Panamax
tankers and five similar vessels to be bought using the proceeds. A
discount will bring net proceeds from the issue of U.S.$145 million with
U.S.$60 million used to retire bank debt. Investors will be paid a coupon
of 11.875 percent and there will be a three-year equity call for up to
U.S.$52.5 million.

NCL Holding announces result of issue

NCL Holding A.S.A. has raised 540 million Norwegian kroner/U.S.$75.3
million in a rights issue.

I.T.W.F. actions lead to payment of back wages, registry agreements

The International Transport Workers' Federation has completed a week
of action that included inspections of vessels at 91 Pacific Ocean ports in
24 countries. The federation secured more than U.S.$500,000 in back wages
with half from actions at Australian ports including the payment of
U.S.$100,000 in back wages to the Indonesian crew of a Panamanian-registry
bulk carrier. In addition, an agreement acceptable to the federation
regarding a fleet of vessels registered in the Bahamas has been made after
inspections by the federation in New Zealand. Meanwhile, Lasco Shipping Co.
has signed an an agreement acceptible to the federation regarding nine
ships. The federation also reported that an inspection of a vessel north of
Seattle had found substandard conditions with only fish and rice left as
food for the crew, which were paid U.S.$200 per month. The vessel is owned
by Greek interests with Liberian-registry.

ICB Shipping extends subscription period

ICB Shipping A.B. has extended the subscription period for the
Angelicoussis family to take their stake in ICB Shipping, which is
acquiring Astro Tankers from them.

Flagship Training, British Royal Navy to train Kuwait Navy personnel

A letter of agreement has been signed under which the British Royal
Navy and Flagship Training Ltd. will provide training to 300 personnel of
the Kuwait Navy before eight new PB37 BRL patrol boats are delivered from
Constructions Mecaniques de Normandie at Cherbourg, France. The training
includes courses in the English language, leadership and general and
specialized naval training. The first personnel will arrive in the United
Kingdom this month, with the majority of training at H.M.S. Raleigh near
Plymouth, England, and the Britannia Royal Naval College at Dartmouth,
England. Some engineering and weapons courses will take place at H.M.S.
Collingwood near Fareham, England, H.M.S. Dryad near Fareham, and H.M.S.
Sultan in Gosport, England. Live-fire gunnery training will take place at
H.M.S. Cambridge near Plymouth. The Navy and Flagship Training signed an
agreement last year to market training at naval facilities.

Italy may train Maltese personnel

The Italian Coast Guard has reportedly offered to train Maltese
government personnel in dealing with maritime pollution, vessel
firefighting and search and rescue at sea.

More on purchase of Cie. Nationale de Navigation

Cie. Maritime Belge N.V.'s purchase of 54 percent of Cie. Nationale de
Navigation from Worms & Cie. for 431 million French francs/U.S.$73.1
million values shares at 140 francs/U.S.$23.76 each and Cie. Nationale de
Navigation warrants at 40 francs/U.S.$6.79. The deal is expected to be
completed 5 Jan. Cie. Maritime Belge will form a price maintenance
procedure for Cie Nationale de Navigation minority shareholders who wish
to sell their shares. Management will be left intact. In the first half of
the year, Cie. Nationale de Navigation had net profits of 38 million
francs/U.S.$6.4 million on sales of 895 million/U.S.$152 million francs.

Mare Maritime shifts some activities to Athens

Mare Maritime Co. S.A. has shifted a large part of its London agency
activities to its headquarters in Athens, Greece. The operations
transferred from Global Maritime Services Ltd. included accounts,
operations and technical management supplies. Global Maritime Services has
reduced its number of personnel while 20 have been added in Athens. Mare
Maritime manages 11 Norwegian-owned chemical tankers and two Panamax
tankers, totaling 1.3 million deadweight tons.

Haking Wong Technical Institute department gets I.S.O. 9002

Haking Wong Technical Institute's Department of Marine and Mechanical
Engineering has become the first maritime training facility in Hong Kong to
get I.S.O. 9002 certification. Bureau Veritas Quality International made
the certification 18 Nov.

More on AMOSUP's training plans

The Associated Marine Officer's and Seamen's Union of the Philippines
(AMOSUP) has purchased the Seiun Maru from the Japanese Ministry of
Transport. The 5,000-gt, 2,771-dwt ship was built in 1968 and is classed
A1. It will be renamed the Kapitan Felix Oca, founder of AMOSUP. The union
paid 40 million Philippine pesos/U.S.$1.2 million, most of which was funded
by grants from European trade unions. The vessel has a training bridge and
can accomodate 182 cadets. The Kapitan Felix Oca will be based at the
Maritime University of Asia and the Pacific, a maritime training facility
AMOSUP plans to build on 14.6 hectares/36.1 acres of land at Kamaya Point
in Mariveles on Bataan, the Philippines. The land was purchased last month
for 55 million pesos/U.S.$1.6 million and is the site of a former hotel.

More on Seetours International purchase

Deutsche Seereederei Rostock has bought Seetours International, the
largest German cruise company, from tour operator TUI. In the year to 31
Oct., Seetours International sold 250,000 ferry tickets and 26,000 cruise
tickets. It had a turnover of 152 million German marks/U.S.$86.3 million.

ROUTES AND SERVICES

N.Y.K. changes to Pacific services

Nippon Yusen Kaisha has added another ship to its JCX service on a
fixed-day basis due to continued congestion at the Port of Los Angeles. The
Mare Thracium (34,600-dwt, 2,400-TEU containership built in 1997, operated
by Hansa Mare Reederei GmbH & Co. KG) will call at Shanghai, China; Hakata,
Kobe, Nagoya, Shimizu, Tokyo and Sendai in Japan; Los Angeles and Okaland
in California; Tokyo, Shimizu, Nagoya and Kobe; and Shanghai. The ship left
Shanghai on 16 Nov., with JCX becoming a 35-day round-trip. In addition,
the PAX service will call every other week until the end of the year. PAX
calls at Kaohsiung, Taiwan; Hong Kong; Kobe, Nagoya and Yokohama in Japan;
Seattle; Oakland and Los Angeles; Savannah, Ga.; Norfolk, Va.; New York;
Halifax, Nova Scotia; and on to Europe. Also, the Hansa Stavanger
(German-registry 1,550-TEU containership) took stranded empty containers
from Los Angeles back to Asia on 14 Nov.

Crowley American Transport revamps service

Crowley American Transport will use Chile as its turn around port
instead of Peru on its service between the eastern coast of the United
States and western South America. Two 1,100-TEU ships will be used instead
of two 600-TEU vessels. Calls are made at Philadelphia; Jacksonville, Fla.;
Port Everglades, Fla.; Cartagena, Colombia; Manzanillo, Panama;
Buenaventura, Colombia; Guayaquil, Ecuador; Callao, Peru; San Antonio and
Arica in Chile; Callao and Paita in Peru; Manta, Ecuador; Buenaventura;
Port Everglades and Philadelphia.

Hub Line starts new slot-charter agreement

Hub Line has started a new slot-charter service with Pacific
International Lines (Pte.) Ltd. between Chennai, India, and Singapore.

Nordic Trucker Line changing Swedish ports

Nordic Trucker Line will drop its call at Oxelosund, Sweden, in favor
of Stockholm, Sweden, on its route to St. Petersburg, Russia, in January.

Chuan He joins COSCO route

The Chuan He (5,250-TEU containership) has been deployed by China
Ocean Shipping (Group) Co. on its SEA service to North America. The last of
six such ships built by Kawasaki Heavy Industries Ltd., it sailed from Hong
Kong on 24 Nov. The service calls at Hong Kong; Nagoya and Yokohama in
Japan; Long Beach, Calif.; Seattle; Vancouver, British Columbia; Yokohama;
Kobe, Japan; Hong Kong; Shekou, China; and Hong Kong.

FESCO Australia North America Line replaces ship

FESCO Australia North America Line (FANAL) has replaced a ship on its
North America/Australia/New Zealand service. The replacement is the
Mekhanik Moldanov, a 1,050-TEU containership built in 1990s.

P&O European Ferries increasing English Channel rates

P&O European Ferries Ltd. has announced it will increase freight rates
for operations in the English Channel and the North Sea as well as to
Portsmouth, England. Rates for trucks will increase in January by 1 British
pound/U.S.$1.67 to 1.50 pounds/U.S.$2.51 per lane meter.

Irish Ferries charters the Peveril

Irish Ferries recently chartered the Peveril (1,900-dwt ro/ro built in
1971, operated by Isle of Man Steam Packet Co Ltd.) for a week for
operations between Rosslare, Ireland, and Pembroke, Wales. There is an
option for another week.

Passenger cruise to cross Europe

Uniworld has announced plans to take as many as 150 passengers this
coming summer on two 22-night cruises across Europe by river. It will use
Amadeus II on the Ultimate Grand Cruise. On 27 June, the vessel will leave
Amsterdam, the Netherlands, for Constanta, Romania, passing through or
along Germany, the Czech Republic, Austria, Slovakia, Hungary, Croatia,
Yugoslavia, and Bulgaria, with calls at Koblenz, Rudesheim, Heidelberg,
Miltenberg, Wurzburg, Rothenburg ob der Tauber, Bamberg, Nuremberg,
Kelheim, Regensburg, Passau, Melk, Durnstein, Vienna, Budapest, Kalocsa,
Belgrade, Ruse, Vidin and Bucharest. On 17 July, the Amadeus II will make a
return voyage. The fare of U.S.$5,438 per person in a double occupancy
includes all meals and a round-trip flight from New York.

Costa Crociere passenger venture in Cuba ends

A joint venture of Costa Crociere SpA and the Cuban Ministry of
Transport that operated a passenger ship in Cuba has ended operations. The
Costa Playa (Bahamian-registry 1,830-dwt passenger ship built in 1967,
operated by Prestige Cruises Management S.A.M.), with 500 berths, made its
last call at Havana on 24 Nov. and has been sold to Chinese interests.
Costa Crociere was purchased in June by Carnival Corp. and U.S. law blocks
commercial and financial transactions by U.S. companies and citizens with
Cuba. A six-month interim period was granted by the U.S. government to end
the operation. Starting in December 1995, the Costa Playa carried more than
40,000 passengers, mostly citizens from France, Germany, Italy, Spain and
the United Kingdom. The weekly itinerary included Havana and the Isle of
Youth in Cuba; Montego Bay, Jamaica; Grand Cayman Island in the Bahamas;
and Cancun, Mexico. U.S.$6 million was spent to restore a customs building
in Havana to serve as a terminal.

Lykes Lines' changes

Lykes Lines Ltd. L.L.C. announced changes to its North Europe
Eastbound Tariff LYKS 340 which became effective 23 Nov. Free time for dry
containers is now three days, demurrage has been added for empty owned or
leased dry and tank containers and demurrage has been changed for cargo to
Georgia and the Commonwealth of Independent States.

CANALS, PORTS AND STRUCTURES

Japanese businesses to assist in Chinese projects on Yangtze

A group of 110 Japanese businesses, including the Industrial Bank of
Japan and Itochu Corp., has reached a basic agreement to participate in the
building of container handling facilities along China's Yangtze River,
including at Chongqing. China plans to build facilities that will handle
50,000 TEUs by 2000.

Chilean ports to be privatized

The Chilean Congress, after three years of debate, approved a bill 19
Nov. that would allow private firms to operate 10 government-owned ports.
Due to be signed next month, it is hoped that the bill will enable
concessions to be awarded starting next year. The ports of Arica, Iquique,
Antofagasta, Coquimbo, Valparaiso, San Antonio, Talcahuano-San Vicente,
Puerto Montt, Chacabuco and Austral are operated by Emporchi, a government
entity that will cease to exist. Each port will become an independent unit
owned by Chile as of January.

Efforts to cut waiting times at Indian ports to continue

A three-month test at 11 Indian ports to cut the amount of time
vessels spend waiting to dock has been extended beyond its 30 Nov.
completion date. Mostly through better management and reduced documentation
through electronic data exchanges, wait times for containerships have been
reduced to at most a day, tankers to two days and other ships to six.

More on Pusan's new facility

The new work at Pusan, South Korea, involves construction of 25 berths
at the port and at nearby Kadok Island for U.S.$6 billion by 2011. They
will have a total annual capacity of 4.6 million TEUs. The Kadok Island
facility will have 11.7 million square meters/130 million square feet of
space. Construction will be done by New Pusan Port Co., a consortium of 29
firms. The South Korean government will provide the infrastructure. The
first phase will involve building 10 container berths and a multipurpose
berth for two million TEUs by 2005, with the remaining berths to be added
later.

Six Australian port operators form group

Six state-owned bulk port operators in South Australia have formed
their own cooperative and will subcontract operations to P&O Ports Ltd.

Bacnotan Consolidated Industries planning Philippine port

Bacnotan Consolidated Industries is planning to raise 850 million
Philippine pesos/U.S.$24.6 million to build a port at Batangas in the
Philippines.

Mormugao to expand

Mormugao Port Trust in India will reclaim 280 hectares/700 acres from
Vasco Bay.

P&O Ports to take stake in Italian terminal holding company

P&O Ports Ltd. will take a 20 percent stake in Gruppo Investimenti
Portuali, a holding company in Genoa, Italy, with interests in three
Italian container terminals. The purchase will be through a reserved share
issue by G.I.P. of 6.8 billion Italian lire/U.S.$3.9 million, by 1 Jan. The
acquisition is the first venture by the unit of P&O Ports in the
Mediterranean Sea. The G.I.P. stakes are the South European Container Hub
in Genoa, the terminal at Cagliari and the Molo Gioia terminal in Naples.

Venezuelan river traffic halted

Cabotage on Venezuela's Orinoco River has been stopped by a pilots
strike. They are demanding back wages.

Chassis pool formed at Charleston

Trac Lease Inc. has been chosen to form a chassis pool at the Port of
Charleston, S.C., it was announced 20 Nov. It will begin operating 16 Dec.
with 6,500 chassis. Some 16 companies have joined or have signed letters of
intent to do so.

Modern Terminals to buy stakes at two Chinese ports

Modern Terminals Ltd. has signed letters of intent to purchase 49
percent of container terminals at the Chinese ports of Ningbo and Qingdao.
Operations at Qingdao will begin in the first half of next year and at
Beilun Container Terminal in Ningbo early in 1998.

Sale of Rostock port operator approved

The state government of Mecklenburg-Vorpommern and the city of Rostock
in Germany have approved the sale of Seehafen Rostock Umschlagsgesellschaft
to Kent Investment Holding for 19 million German marks/U.S.$11 million. The
port's land and infrastructure will remain part of Seehafen Rostock
Verwaltungsgesellschaft.

Asian Terminals seeking emergency rate increase

Asian Terminals Inc. is seeking a 30 percent across the board rate
increase for cargo handling at its South Harbor in Manila, the Philippines.

Los Angeles pilot strike ending?

After 137 days, pilots at the Port of Los Angeles have reportedly
agreed to a new contract.

Consortium to explore second Philippine freeport

A consortium of consultants has been appointed by the Cagayan Economic
Zone Authority in the Philippines to perform a master development and
business plan for a second freeport.

New international bulk port in the Philippines

An 850 million Philippine peso/U.S.$24.5 million international bulk
port will be built at Calaca in Batangas, the Philippines, by July 1999.

Yokohama to deepen container berths

The Port of Yokohama, Japan, has announced plans to build 12 container
berths up to 16 meters/52 feet deep. Two berths will be built on reclaimed
land between two older berths while others will be deepened.

Bintulu expansion underway

Expansion at the Port of Bintulu, Malaysia, has begun for completion
in late 1998. The 250 million Malaysian ringgit/U.S.$71.3 million expansion
involves construction of a 450-meter/1,500-berth with a depth of 14
meters/46 feet om the inner harbor basin and several new cranes.

Hyundai Pipe to build private port

Hyundai Pipe has announced plans to build a three-berth port at the
Yulchon industrial complex in southern South Korea.

Kuantan port plans

Kuantan Port Consortium Sdn. Bhd., which will develop the Port of
Kuantan, Malaysia, has said it will spend 823 million Malaysian
ringgit/U.S.$235 million. It will lease 605.3 hectares/1,495 acres for 30
years. Some 400 million ringgit/U.S.$114 million will be spent on building
berths and dredging, with rest for equipment upgrades.

Winfield Locks and Dam reopened

The U.S. Army Corps of Engineers has reopened the Winfield Locks and
Dam on the Kanawha River in Winfield, W.Va. A dedication was held 21 Nov.
but the locks actually reopened 18 Nov. The U.S.$221.6 million expansion
will cut the transit time for tows from 24 hours to 30 minutes. One of the
two locks, measuring 17 meters/56 feet by 110 meters/360 feet, was rebuilt
with dimensions of 33.5 meters/110 feet by 244 meters/800 feet. The other
lock remains intact. Work began in May 1990 but was delayed after
contaminated soil was found near the American Car and Foundry Corp., where
railcars were worked on between 1952 and 1986. Asbestos, dioxin, lead and
pesticides had to be removed before work could proceed.

Midgard Deutsche Seeverkehrs' Nordenam operation bought

Midgard Deutsche Seeverkehrs AG's port operations at Nordenham,
Germany, have been sold to Rethmann AG.

Kisumu blocked by hyacinth

Hyacinth stretching more than 10 kilometers/six miles into Lake
Victoria shut the Port of Kisumu, Kenya, on 21 Nov. At least 10 vessels
were effected. Typically, winds have prevented Kisumu from becoming
clogged, but it has now blocked the port with stretches up to three
meters/10 feet thick in certain areas. The blockade follows a strike by
traders and private shipowners at Kisumu that ended earlier in the week.
They were protesting an increase in port charges by up to 100 percent for a
24-hour docking.

Container limit for Barcelona terminal lifted

Terminal Catalunya signed an agreement last month with the Port of
Barcelona, Spain, under which its handling limit of 130,000 TEU per year
has been abolished. The limit was imposed in 1992 in what was said to be
for the port's benefit, as it was decided that another container terminal,
TCB, should not face competition from any other terminal handling more than
130,000 TEUs annually. To handle increased numbers of containers, two
Gottwald mobile cranes have been added for U.S.$4 million. Three more
cranes will be added over the next two years.

Dockworkers in Boston stage brief strike

Dockworkers of the International Longshoremen's Association at the
Moran Container Terminal at Charlestown in Boston struck late 14 Nov. but
returned the morning of 17 Nov. The group refused to unload containers from
the MSC Insa unless they were paid for four hours spent waiting. The ship,
sailing from northern Europe, was to arrive 16 Nov. but was delayed by
weather conditions and then the tide. It was decided that the MSC Insa
would sail to New York and that the containers would be barged back to
Boston. The dockworkers sought payment for the time they spent waiting for
the MSC Insa to dock before it sailed to New York and the Massachusetts
Port Authority sought a temporary restraining order against the strike. In
April, Mediterranean Shipping Co. sought an agreement with the I.L.A. in
which dockworkers would receive double time after 2200 but would not be
paid for time spent waiting.

Gantry cranes occupied in protest at Cardiff

Supporters of 329 dockworkers fired by Mersey Docks and Harbour Co. in
Liverpool, England, in September 1995 halted work at Coastal Container
Line's facility in Cardiff, Wales, this week. The supporters occupied two
gantry cranes because Coastal Container Line is a subsidiary of Mersey
Docks and Harbour. At 0700, several dozen people sat on a road leading to
one of the main dock gates and two women and one man entered the area and
took over the cranes. The protest ended at 1200 and the three were arrested
but released without charges. Work on the vessel Kirsten was delayed.

Philadelphia reaches new labor contract with dockworkers

The Philadelphia Marine Trade Association and the International
Longshoremen's Association have agreed to a new labor contract lasting five
years. There will be 19 starting times between 0700 and 0100 with 14 times
for breakbulk. Work orders will be accepted daily in all weather and there
will be seven paid holidays instead of 16. Operations will be halted
Christmas Day, Independence Day and Labor Day but not for 24 hours. Also,
managed health care costs will be reduced from U.S.$12 million to U.S.$5
million. While there will be reducing staffing, a working foreman will be
added.

Royal Portbury Dock to get container cranes

Bristol Port Co. has bought new container cranes from Japan for
installation at the Royal Portbury Dock in Bristol, England. They will be
installed in January.

Dock in Michigan undermined by bow thruster

A 4.6-meter/15-foot section underneath the dock of Morton Salt in
Manistee, Mich., was eroded 25 Nov. by bow thrusters of the George A. Sloan
(U.S.-registry 9,706-gt, 7,300-nt, 189.1-meter/620.5-foot motor bulk
carrier built in 1943 by Great Lakes Engineering Works at River Rouge,
Mich.; operated by USS Great Lakes Fleet Inc.). The next day, part of the
unprotected dock collapsed and sank.

United Grain working again

United Grain Corp. at Vancouver, Wash., has resumed vessel loadings.
Operations were suspended when a bulk carrier hit its dock.

North Carolina ports to get funds for projects

The North Carolina Repairs and Renovations Fund has released U.S.$10
million for work at the ports of Morehead City and Wilmington. At Morehead
City, U.S.$8.1 million will be used to replace a warehouse with a dry bulk
fertilizer warehouse. At Wilmington, U.S.$1.9 million will be put towards
U.S.$8 million needed for rehabilitating Berth No. 6.

Ship-Service finalizes Polish bunkering operations

Ship-Service S.A. has finalized an agreement with Centrala Producktow
Naftowych's CPN Marine Service to charter the 950-metric ton capacity tank
barge Bukowiec (Polish-registry) for use in bunkering operations at the
Polish ports of Swinoujscie and Szczecin. CPN Marine Service's 1,000-metric
ton tank barge Puronjac, meanwhile, returned to service at the Polish ports
of Gdansk and Gdynia on 10 Nov. It had been withdraw for work in July.

Lykes Lines to change Houston wharfage rates

As of 1 Dec., Lykes Lines Ltd. L.L.C. will change some wharfage rates
at Houston. General cargo and container rates will be U.S.$2.30 per 900
kilograms/2,000 pounds, breakbulk green coffee will be U.S.$1.99 per 900
kilograms/2,000 pounds and breakbulk iron and steel products will be
U.S.$2.25 per 900 kilograms/2,000 pounds.

SHIPYARDS AND EQUIPMENT

Hall Engineering & Heavy Industries to slash workforce in half

Halla Engineering & Heavy Industries Ltd. said 26 Nov. it will cut its
workforce of 6,055 in half by the end of next month as part of a
restructuring program. The 3,000 include 62 management personnel. It will
withdraw from money-losing businesses and sell real estate to raise funds
to prepare for a loss of cashflow. Voluntary actions will be sought before
workers are laid off.

Newport News Shipbuilding to buy Continental Maritime Industries

Newport News Shipbuilding Inc. announced 24 Nov. that it will buy
Continental Maritime Industries in San Diego. Pending approval by
regulatory agencies and a vote by Continental Maritime Industries' employee
stock ownership plan participants, the deal is expected to close by the end
of the year. Continental Maritime Industries will operate as a wholly owned
subsidiary and will focus on repairs to U.S. naval vessels, particularly
aircraft carriers. The shipyard has annual sales of about U.S.$40 million
and 350 employees.

Soosan Heavy Industries seeks protection

Soosan Heavy Industries, the parent of Daedong Shipbuilding Co. Ltd.,
has filed for protection from creditors.

Danyard cutting 204 personnel

Danyard A/S said 27 Nov. it will lay off 204 workers.

Chinese, Italian shipbuilders to cooperate

Dalian New Shipyard and Fincantieri Cantieri Navali Italiani SpA have
signed a cooperation agreement.

Kalmar Industries shareholders approve deal

At an extraordinary meeting, shareholders of Kalmar Industries
approved a deal to merge with Sisu Terminal Systems.

Letter signed with German shipbuilder for The World ResidenSea

ResidenSea Ltd. signed a letter of intent 25 Nov. with
Howaldtswerke-Deutsche Werft AG for construction of The World of ResidenSea
at Kiel, Germany. At a cost of U.S.$500 million, the vessel will be the
first residential community at sea and delivery is expected in the second
half of 2000. It will have 250 apartments, 182 guest suites, seven
restaurants and bars, a movie theater, a casino, several cultural and
sports facilities and a business service center with professional
secretaries and a licensed securitites broker. After six months of
marketing, almost U.S.$120 million has been committed in reservations. The
apartments can cost up to U.S.$4.3 million each. Sales will cover the
construction cost and operation until its delivery. The World ResidenSea
will continually sail around the world as a floating city.

Ugland Nordic Shipping orders new tanker

Ugland Nordic Shipping has ordered a 110,000-dwt tanker from Tsuneishi
Shipbuilding Co. Ltd.

Severnaya Verf reportedly will complete two destroyers for China

Severnaya Verf 190 reportedly signed a deal with Rosvooruzheniye,
Russia's state weapons marketing firm, to complete two warships at St.
Petersburg, Russia, for delivery by 2000 to the Chinese People's Liberation
Army Navy. The two ships are reportedly Russian Navy Sovremennyy-class
Guided-Missile Destroyers and were 65 percent and 35 percent complete when
the Navy withdrew its order due to a lack of funding.

Adsteam Marine in major Australian tug order

Adsteam Marine has ordered six new tugs for Australian$42
million/U.S.$29 million from Oceanfast Marine. It is thought to be the
largest Australian newbuilding contract for tugs in more than 30 years. The
six will be built at Jervoise Bay in Western Australia with the first
expected to be delivered by mid-1998 and the last three or four years
later. Five of the tugs will be operated in a joint venture with Howard
Smith Industries Pty. Ltd. and the other will be operated by an Adsteam
Marine port unit. Each will be 32 meters/105 feet long with a single hull
and omni-directional propulsion of 3,600 kilowatts/4,800 brake horsepower.
The tugs will displace betwen 720 and 760 tons.

Dutch builders announce recent orders

Schoening has ordered two Conofeeder 300 302-TEU containerships from
Tille Shipyards B.V. The design has an enclosed cargo volume of 4,415.4
cubic meters/147,180 cubic feet and is 93 meters/305 feet long with a beam
of 15.85 meters/52.00 feet. The ships are capable of 14.5 knots. Bodewes
Scheepswerf Volharding Foxol B.V. has received an order for two 8,700-dwt
ships. Scheepswerf Bijlsma B.V. will build a 9,200-dwt Markborg
multipurpose containership for Wagenborg Shipping B.V. It will be built at
its Lemmer facility. Finally, Shipyard Metz will build a trawler at Urk for
Irish interests.

More on Godby Shipping ro/ro order

Godby Shipping A.B. has ordered two 7,250-dwt ro/ros from J.J. Sietas
Schiffswerft. The ships are contracted by member companies Minicarriers
A.B. and Oy Trailer-Link A.B. and will be financed in Norway. The
150-meter/492-foot ships will be delivered in January 1999 and February
1999 and will be chartered by Transfennica U.K. Ltd. for service between
Hango, Finland, and Lubeck, Germany. With input from the concerned parties,
the ships are designed for carrying forest products, containers and
trailers. Each will have a beam of 20.6 meters/67.6 feet and a
seven-meter/23-foot draft. There will be 1,600 lane meters/5,200 lane feet
on tanktop, ro/ro and weather decks connected via fixed ramps with two
ramps at the stern. The design includes stabilization fins and an
anti-heeling system and will be certified at Finnish/Swedish Ice Class IA
Super. Propulsion will be by Type 46 engines from Wartsila NSD Corp. and
will incorporate water injection.

Austal Ships delivers Zhao Qing for service in China

Austal Ships Pty. Ltd. has delivered the Zhao Qing, a
42-meter/137-foot catamaran ferry, to Zhaoqing Hong Kong Transportation. It
has an 11.5-meter/37.7-foot beam and a draft of 4.43 feet. There are two
MTU 16V396TE74L diesel engines that develop 1,980 kilowatts/2,650 brake
horsepower at 1,940 revolutions per minute driving two KaMeWa 71SII
waterjets through two Reintjes VLJ930 gearboxes. The Zhao Qing is capable
of 34 knots. The vessel can carry 352 passengers with 120 on an upper deck
with eight in luxury lounges and 232 on the main deck. It will be operated
by Chu Kong Shipping Co. on four-hour sailings between the Hong Kong and
Zhao Qing in China. Surveying was done by China Classification Society.

Star Princess arrives for refit

The Star Princess (Liberian-registry 64,000-gt, 5,450-dwt passenger
ship built in 1989, operated by Princess Cruises Inc.) has arrived at
Harland & Wolff Holdings P.L.C. in Belfast, Northern Ireland, for a refit
and upgrade of passenger areas.

Deal to complete former Costa Olympia signed

Norwegian Cruise Line Ltd. has signed a 500 million German
mark/U.S.$284 million contract with Lloyd Werft Bremerhaven GmbH for
completion of what was to be the Costa Olympia. A letter of intent was
announced 24 Oct. The ship was ordered from Bremer Vulkan Verbund AG by
Costa Crociere SpA. Norwegian Cruise Line bought the ship from bankrupt
Bremer Vulkan Verbund earlier this year for 46 million marks/U.S.$26
million. Completion of the ship is the largest order Lloyd Werft
Bremerhaven has received. The 2,000-passenger ship will be delivered in
July 1999.

Mobil to sell marine lubricants in South Africa

Mobil Corp. has announced that it is restarting its marine lubricant
business in South Africa after it withdrew in 1989 after more than 100
years of operation. At that time, Mobil sold its assets to Gencor under an
agreement it would not re-enter the country before 1 July, 1997. Beginning
15 Dec., Mobil will offer its lubricants at Durban and Richards Bay.
Service at Cape Town/Saldanah Bay, East London and Port Elizabeth will
begin early next year.

EVENTS, INCIDENTS AND OPERATIONS

First International Tribunal for the Law of the Sea hearing held

The International Tribunal for the Law of the Sea in Hamburg, Germany,
adjourned eight minutes into its first case on 24 Nov. The tribunal was
inaugurated a year ago but its facilities will not be completed until 1999.
The first case is a complaint by St. Vincent and the Grenadines regarding
the Saiga (4,254-gt tanker), which is registered in the country. The ship
was allegedly arrested off western Africa by the Guinean government, who
reportedly shot at the ship and injured four crewmembers before bringing
the ship under control. St. Vincent and the Grenadines said that two
seriously injured crewmembers were allowed to leave but the vessel and the
remaining crew have been held at Conakry, Guinea, since 28 Oct. Guinea has
not responded but a newspaper in the country said that the Saiga violated
customs regulations. St. Vincent and the Grenadines, as the state of
registry, has applied to the tribunal to have the ship released.

Aid workers kidnapped from vessel in Somalia

Five aid workers from the European Union and the United Nations were
kidnapped 21 Nov. from a vessel in northern Somalia. They were released 24
Nov. and included two employees of the United Nations Children's Fund, one
from the United Nations Habitat, one from the United Nations Office for
Project Services and a British citizen, Dennis Cassidy, from the European
Union. The United Nations workers are one Canadian citizen, one Indian
citizen and two Kenyan citizens. The five were taken at gunpoint from a
vessel moored off El Ayo in the self-declared Republic of Somaliland
reportedly as part of a dispute involving coal exports. Foreign citizens
have been frequent kidnapping targets of groups seeking power in Somalia,
which has not had a central government since 1991.

Sea-Land Crusader crewmember injured

Donald Raffaniello, a crewmember of the Sea-Land Crusader (21,015-dwt
containership built in 1969, operated by Sea-Land Service Inc.) was
seriously burned recently while aboard the ship. He has been hospitalized
at the St. Barnabas Burn Center in Livingston, N.J.

Group of 415 Haitian migrants repatriated

The U.S. Coast Guard's Reliance-class Medium-Endurance Cutters
U.S.C.G.C. Confidence (WMEC 619) and U.S.C.G.C. Vigorous (WMEC 627)
repatriated 415 Haitian migrants to Port-au-Prince, Haiti, on 24 Nov. They
were part of 416 people found aboard a 24-meter/80-foot vessel about 10
kilometers/six miles southeast of Miami on 20 Nov. after an hour and a half
chase. The vessel was spotted by the Seaboard Caribe (Liberian-registry
9,300-dwt, 183-meter/600-foot ro/ro built in 1986, operated by Armada
Shipping A/S) at 0455 when it fired flares about 32 kilometers/20 miles
east of Elliot Bay, Fla. One migrant, a 19-year-old pregnant woman
suffering from dehydration and possible pneumonia, was flown to Jackson
Memorial Hospital in the area the night of 21 Nov. on Coast Guard
helicopter. She remains hospitalized.

U.S. Customs Service seizes cocaine at Miami

The U.S. Customs Service seized 540 kilograms/1,200 pounds of cocaine
on 28 Oct. at the Port of Miami. The cocaine was inside plastic cases
molded to look like roofing tiles. The fake tiles were then placed on
pallets in two containers loaded with actual roofing tiles that were
shipped from Venezuela to Miami. The containers were followed to Quintana
and Sons in Queens in New York. Three Colombian citizens, German J.
Caballero-Gonzalez, 39; Leon A. Giraldo-Henao, 41; and Jose F. Torres, 30,
were arrested, along with the consignee in Miami, Karym F. Casas.

Two passenger ship passengers arrested with cocaine

A Puerto Rican couple was arrested in Curacao Island in the
Netherlands Antilles on 18 Nov. when they tried to board the Rhapsody of
the Seas (Norwegian-registry 6,300-dwt passenger ship built in 1997,
operated by Royal Carribean International Inc.) with 10 kilograms/22 pounds
of cocaine. The two were passengers on the ship and when they returned from
shore, crewmembers observed them acting nervously. Four packets of cocaine
were found strapped to their legs and waists.

Philippine master fined for overloading

Magistrates in Southampton, England, have fined a Philippine master
U.S.$24,500 after he pleaded guilty to overloading his ship, which carried
timber from Estonia to Ireland.

Voyage of fishing vessel terminated off Virginia

The U.S. Coast Guard terminated the voyage of the Rebait III
(11-meter/35-foot fishing vessel) on 21 Nov., 32 kilometers/20 miles east
of Virginia Beach, Va. The Coast Guard's "Point"-class Patrol Boat
U.S.C.G.C. Point Huron (WPB 82357) stopped the vessel and personnel boarded
it for inspection. Among the violations found were a lack of vessel
documentation, visual distress signals were expired, no posted safety
drills and emergency instructions, no liferaft, no fire extinguisher, no
Emergency Position Indicating Radio Beacon and no compass deviation table.
The Rebait III was escorted to its homeport at Rudee Inlet in Virginia
Beach.

Machine gun seized from Finnish master

A Finnish master was recently found smuggling a machine gun past
customs at Teesport, England. The weapon was found as he tried to board a
flight at Teesside International Airport for Helsinki, Finland, and was
seized.

VESSEL TRANSFERS

Premier Cruises buys seventh passenger ship

Premier Cruises has bought a seventh ship, the Regent Sun (25,500-gt,
7,512-dwt 842-passenger ship built in 1964 in France), from Carribean
Shipping Co. Inc. Built with enclosed promenade decks and larger cabins for
ocean crossings, the Regent Sun will be refurbished and renamed before
entering service in spring. The Regent Sun was built as the Shalom for Ziv
Lines, then sailed for Hapag-Lloyd as the Hanseatic. It then became the
Doric of Home Line and finally the Royal Odyssey of Royal Cruise Line. The
ship has a dining room, several bars, a disco, a casino, a movie theater,
an outdoor pool and a fitness center with indoor pool. Seventy-five percent
of the ship's staterooms have an ocean view.

Jadrolinija Cruises ends direct cruise operations

Jadrolinija Cruises Ltd. has ended its direct involvement in passenger
cruises through the sale of two 300-passenger vessels. The Adriana
(900-dwt, built in 1972) and the Dalmacija (1,701-dwt, built in 1965),
which operated in the Mediterranean Sea during the spring and fall and in
northern Europe in the summer, were sold last month to Croatian and French
interests.

Jebsens Ship Management shifting classification societies

Jebsens Ship Management will switch most of its 44 bulk carriers to
Bureau Veritas.

More on Giuseppe di Vittorio decision

London Admiralty Court judge Justice Clarke ruled 21 Nov. that the
Giuseppe di Vittorio (12,640-dwt passenger ship) of Black Sea Shipping Co.
can be sold 11 Dec. despite a new British order that blocks the sale of
ships or cargo by Ukraine or the United Kingdom. The ship was arrested at
Newport, England, in April following a claim by Bridge Oil Ltd., to which
Black Sea Shipping owes U.S.$202,149 for bunker fuel. Bridge Oil has said
it is owned U.S.$1.6 million in all and the ship is estimated to be worth
U.S.$400,000. The judge ruled that the sale could proceed in accordance
with an Appeal Court ruling of 29 Oct. and would not be affected by the
British State Immunity (Merchant Shipping) Order of 1997, issued 1 Nov.
Ukraine had argued that it has been covered by a treaty between the former
Soviet Union and the United Kingdom which prevents state assets of either
country being sold by the other. The judgement also ordered Ukraine to pay
part of the costs the ship incurred between 2 July, its original sale date,
and 11 Dec.

Chile receives two former German Navy vessels

The Chilean Navy has taken delivery of the first two of five former
German Navy Tiger-class Guided-Missile Patrol Boats. They have been named
the Guiadiemarina Riquelme and the Teniente Oriella.

Overseas Shipholding Group names vessels for sale

The nine vessels Overseas Shipholding Group Inc. has decided to sell
are the Carribean Sky (63,350-dwt bulk carrier built in 1989), the
Continental Spirit (65,224-dwt bulk carrier built in 1983), the Endeavour
(124,756-dwt bulk carrier built in 1975), the Equinox (143,305-dwt bulk
carrier built in 1982), the Esplanade (141,013-dwt bulk carrier built in
1982), the Excelsior (122,200-dwt bulk carrier built in 1990), the Exemplar
(122,830-dwt bulk carrier built in 1990), the Meridian Sky (76,839-dwt bulk
carrier built in 1989) and the Northern Light (65,592-dwt bulk carrier
built in 1981).

Nordstrom & Thulin sells ferries

Nordstrom & Thulin has sold two ferries on behalf of Sweden.

More on Farrell Lines

One of Farrell Lines Inc.'s new ships is the Enterprise, which arrived
26 Nov. at the Port of New York & New Jersey. It is a 2,000-TEU
containership with U.S.-registry.

Ships of Sun Cruises identified

The Sun Vista (9,632-dwt, 1,200-passenger ship built in 1963), which
will begin operations for Sun Cruises Pte. Ltd. on 30 Nov., has been
indentifed as the former Meridian, once affiliated with Celebrity Cruises
Inc. The Sun Viva (645-dwt, 100-passenger ship built in 1991), Sun Cruises'
other ship, was formerly the Renaissance Five, affiliated with Renaissance
Cruises Inc.

VESSEL CASUALTIES

Two killed as refrigerated ship grounds on rock off Alaskan port

The Kuroshima (Panamanian-registry 4,160-gt, 4,845-dwt,
118-meter/386-foot motor refrigerated ship built in 1988, owned by
Kuroshima Shipping S.A. and operated by Fukuoka Zosen K.K.) ran aground in
high winds the afternoon of 26 Nov. on Second Priest Rock about 90
meters/300 feet off Dutch Harbor, Alaska. Water depth in the area is at
most 2.1 meters/seven feet and weather included winds of about 90 knots and
seas of 6.1 meters/20 feet. Two Philippine crewmembers were killed while
the 16 other crewmembers were rescued after a lifeboat was pulled to shore
by a line fired to the ship. The master is a Japanese citizen while other
crewmembers are from Japan, the Philippines or South Korea. Fifteen U.S.
Coast Guard personnel suffered frostbite or hypothermia. The Kuroshima is
carrying 912,000 liters/240,000 gallons of fuel and had arrived at Dutch
Harbor to load frozen seafood and some of its cargo was aboard when the
ship grounded. The ship reportedly raised anchor to seek a more sheltered
location and then drifted. A damaged fuel tank has leaked about 46,000
liters/12,000 gallons and as much as 11,000 liters/3,000 gallons came
ashore in nearby Summer Bay.

MSC Carla breaks in two north of the Azores Islands

The MSC Carla (Panamanian-registry 55,241-gt, 40,912-dwt, 2,868-TEU
motor containership built in 1972 at Landskrona, Sweden; owned by Rationis
Enterprises and operated by Mediterranean Shipping Co.) broke into two
pieces on early 25 Nov. during a storm 176 kilometers/110 miles north Sao
Miguel Island in Portugal's Azores Islands. The break-up was at 39 degrees
31 minutes north, 25 degrees 01 minutes west. Weather conditions reportedly
included 9.1-meter/30-foot seas and gale force winds. The ship broadcast a
message late 24 Nov. that its rudder had failed. Two Portuguese military
helicopters rescued all 34 crewmembers from the aft section. Nineteen
crewmembers were taken to the Portguese Navy's Joao Coutinho-class Corvette
Jacinto Candido (F 476) while the others, including eight Indonesian
citizens, were taken to the Portuguese Air Force's Air Base 4 at Lajes on
Terceira Island in the Azores. Fourteen of the crew are Italian citizens
with most from the Campania region including Sorrento. The rest are from
Croatia, Indonesia and Yugoslavia. At least three crewmembers suffered
minor abrasions. A Liberian-registry tanker and a Cypriot-registry vessel
arrived in the area to assist along with the naval vessel. The MSC Carla's
stern was taken in tow by the Fotiy Krylov (2,253-dwt tug built in 1989,
operated by Tsavliris) while at last report, the 120-meter/394-foot forward
section was afloat. The ship broke several containers forward of the
superstructure, located on the stern. Several containers were pushed
overboard in an effort to make the ship buoyant and their condition, along
with others that fell overboard, are not known. The MSC Carla was sailing
from Le Havre, France, to Boston with 2,400 containers. The ship was
lengthened in South Korea in 1984 and was purchased two years ago as the
Ladby after a charter to Maersk Line. It is insured by North of England
Protecting & Indemnity Association Ltd.

Fifteen rescued as L.P.G. carrier sinks off Japan

The Apanchanit No. 5 (Thai-registry 1,684-gt, 1,999-dwt motor
liquefied petroleum gas carrier built in 1972, operated by World Marine
Transport Co. Ltd.) sank late 22 Nov., 22 kilometers/14 miles off Japan's
Nagasaki prefecture. All 15 crewmembers were rescued by helicopter from the
Japanese Air Self-Defense Force. An oil slick, 1.8 kilometers/1.1 miles
long, was seen in the area.

Constitution, under tow for scrap, sinks in the Pacific Ocean

The Constitution (U.S.-registry 30,090-gt, 7,222-dwt,
208-meter/682-foot, 395-cabin passenger ship built in 1951) sank 24 Nov.
about 1,120 kilometers/700 miles north of Honolulu while under tow to Japan
for scrapping. Delta Queen Steamboat Co. sold the ship for about U.S.$2
million to a U.S. buyer. The ship had been out of service in Portland,
Ore., since June 1995 after hull surveys showed it would cost U.S.$60
million to bring the ship in line with Safety of Life at Sea (SOLAS)
regulations. After encountering heavy weather, the Constitution began to
flood and the towline was cut.

Belize-registry general cargo ship sinks at Port Klang dock

The An Tai (Belize-registry 15,139-dwt general cargo ship built in
1972, owned by An Tai Navigation Enterprises Ltd.) sank at Wharf 14 in the
North Port of Port Klang, Malaysia, early 24 Nov after it began to flood at
2230 23 Nov. near the No. 3 cargo hold. The 25 crewmembers evacuated with
the only injury to Feng Xing Ru, the master, who injured his right leg. The
An Tai had arrived from Xingang, China, on 18 Nov. and after unloading, was
to sail to Pasir Gudang in Johor, Malaysia. The cargo included caustic
soda, magnesium sulphate, soda ash and sodium sulphate and 5,300 tons of
6,446 tons for Port Klang had been unloaded. The ship sank with 8,216 tons
aboard. The ship also had 237 tons of bunker fuel and 27 tons of diesel
fuel aboard.

Leuser holed, sinks in collision in Indonesia

The Leuser (Indonesian-registry 6,041-gt, 1,438-dwt passenger ferry
built in 1994, operated by P.T. Pelayaran Nasional Indonesia) was holed
amidships 20 Nov. by the Kayu Lapis Lima (Indonesian-registry 3,936-gt,
6,525-dwt motor bulk carrier built in 1980, operated by Dasalines) at
Samarinda, Indonesia. The Leuser flooded, developed a severe port list and
settled on the seabed.

Collision off Isle of Wight damages tanker with jet fuel

The Hoegh Mistral (30,402-dwt bulk carrier built in 1986, operated by
Leif Hoegh & Co. A.S.A.) and the Nordfarer (Bahamian-registry 29,977-dwt
tanker built in 1988, operated by Norden A/S) collided 24 Nov. in French
territorial waters south of the Isle of Wight. The Hoegh Mistral suffered
an eight-meter/26-foot gash on its bow and the Nordfarer had damage to its
forecastle and accomodation on its port side. Some of the Nordfarer's cargo
of jet fuel reportedly leaked into the engine room and the ship was to be
escorted to an anchorage. The Hoegh Mistral, with pulp for Sheerness,
Scotland, continued its voyage.

Seven evacuate tanker on fire off Japan

A fire began near the engine room of the Sansen Maru
(Japanese-registry 2,998-dwt tanker built in 1985, operated by Izumi Kaiun)
on 27 Nov., 18 kilometers/11 miles north-northwest of Masuda, Japan. Seven
of the 11 crew were rescued by other vessels while four remained aboard.
There were no injuries. The Sansen Maru is carrying three milion
liters/780,000 gallons of gasoline and light oil.

Marine Explorer suffers fire in the United Kingdom

The Marine Explorer (British-registry 990-dwt offshore vessel built in
1965, operated by Eidesvik & Co. A/S), chartered to the British Royal Navy
for hydrographic work, had a fire at 0300 19 Nov. at Canada Dock in the
United Kingdom. The fire began in a bar and the first officer was injured.

Ro/ro ferry damaged by fire in the Irish Sea

The Panther (ro/ro ferry operated by P&O European Ferries Ltd.),
sailing betwen Rosslare, Ireland, and Cherbourg, France, was damaged the
morning of 26 Nov. when a fire began in a truck being carried aboard. The
ship was 55 kilometers/34 miles out of Rosslare when the fire was
discovered and the vessel returned to the Irish port. Before being
extinguished, eight of about 40 trucks aboard were badly damaged and heat
and smoke caused damage to most of the others.

Noordam cancels cruise after propeller damaged in grounding off Mexico

The Noordam (Bahamian-registry 33,933-gt, 4,243-dwt motor passenger
ship built in 1984, operated by Holland America Line Westours Inc.)
cancelled a seven-day cruise after running aground on a sandbar late 20
Nov. just off Playa del Carmen, Mexico. One of two engines reportedly lost
power. After being refloated by a tug and two ferries on 21 Nov. after 16
hours aground, the ship sailed to Cozumel, Mexico, for an underwater
inspection and was to head for drydocking in Pascagoula, Miss. Initial
inspections reported that the starboard propeller was damaged. No one was
injured and the 1,197 passengers were flown to Tampa, Fla. The ship left
Tampa on 15 Nov. and a sailing to have started 22 Nov. was cancelled as
well. Passengers aboard the ship at the time were given U.S.$40 each and
can receive either a 35 percent refund or a 50 percent credit for the two
missed days.

Fishing vessel assisted after flooding off Hawaii

The Cassandra M (11-meter/35-foot fishing vessel) began taking on
water the morning of 25 Nov. some 24 kilometers/15 miles west of Pokai Bay,
Hawaii, and the nearby Maggie Joe relayed its situation to the U.S. Coast
Guard. An HH-65A Dolphin helicopter from Coast Guard Air Station Barbers
Point, Hawaii, dropped a pump to the two crewmembers and a back-up pump was
later dropped as well. The fishing vessel Sea Hawk and the pleasure craft
Hale Akane stood by until the Cassandra M reached Pokai Bay at 1645.

RAL Rostock, on inaugural voyage, hits dock in Sweden

The RAL Rostock (12,000-dwt, 1,150-TEU containership built in 1997 by
Peenewerft at Wolgas, Germany; operated by Rostock-Atlantik Linie) hit a
quay in Helsingborg, Sweden, on 16 Nov. The ship is being chartered from
Draxl Schiffarhts GmbH and is making the company's inaugural sailing. It
departed Rostock, Germany, late 14 Nov. Draxl Schiffahrts said the allision
likely occurred due to the failure of the controllable-pitch propeller. The
RAL Rostock was towed to Gothenburg, Sweden, and cargo from Helsinborg and
Aarhus, Denmark, will be carried by other companies. After calls at
Helsingborg and Aarhus, the RAL Rostock was to sail to Immingham, England;
Dublin, Ireland; Greenock, Scotland; Richmond, Va.; Philadelphia; and
Halifax, Nova Scotia.

Buckeye aground in Michigan

The Buckeye (U.S.-registry 11,691-gt, 7,321-nt, 213-meter/698-foot
turbine bulk carrier built in 1952 by Bethlehem Steel Corp. at Sparrows
Point, Md.; opertaed by Oglebay Norton Co.) ran aground in the St. Mary's
River near Brimley, Mich., the morning of 27 Nov. at Buoy 27. The ship was
downbound and reportedly failed to make a course change.

Pinta suffers engine problems

The Pinta (German-registry 2,190-gt, 2,795-dwt motor dry cargo ship
built in 1993, operated by Interscan Schiffahrts GmbH) had maine engine
problems off Hvide Sande, Denmark, and was towed to Esbjerg, Denmark.

Bulk carrier loses rudder in St. Lawrence Seaway

The Canadian Progress (Canadian-registry 31,640-dwt, 21,436-gt,
16,608-nt, 223-meter/730-foot motor bulk carrier built in 1968 by Port
Weller Dry Docks Ltd. at St. Catharines, Ontario; operated by ULS Corp.)
lost one of two rudders last week while transiting the U.S. locks of the
St. Lawrence Seaway. The vessel was carrying iron ore to Lorain, Ohio.

Derbyshire investigator resigns

Douglas Faulkner has resigned as the British Department of Transport's
chief investigator into the sinking of the Derbyshire, a 140,000-dwt
combination ship that sank in the South China Sea in 1980. All 44
crewmembers were killed. He resigned for personal reasons. Faulkner had
suggested that the ship sank in heavy seas due to poor forward protection
and loose hatch covers, but this theory was dismissed by the United
Kingdom's National Union of Seamen, whose investigations of sisterships
said the ship sank due to large hull cracks.

Judge denies permission for Orapin Global master to leave Singapore

A court in Singapore has rejected a request by Jan Sokolowski, master
of the Orapin Global (Thai-registry 129,702-gt, 268,450-dwt tanker built in
1975; owned and operated by Thai International Tankers Co. Ltd. and managed
by Denholm Ship Management Ltd.), to leave the country. About 28,463 tons
of oil were spilled at 2054 15 Oct. when the Evoikos (Cypriot-registry
75,428-gt, 140,218-dwt tanker built in 1977, operated by Papaphilippou) and
the Orapin Global collided about five kilometers/three miles south of Pulau
Sebarok, Singapore. The Evoikos was sailing from Fujairah, United Arab
Emirates, to Singapore with 120,000 tons/840,000 barrels or 137 million
liters/36 million gallons of marine fuel oil. It was to unload the cargo at
Caltex Trading Co. Ltd. and Singapore Petroleum Co. Ltd. and was chartered
by Metro Trading International. The Orapin Global was sailing in ballast to
the Arabian Gulf after having left the Singapore Eastern Anchorage. Some
650 personnel and 80 vessels were involved in clean-up. Judge See Kee Oon
adjourned the case until 12 Dec. at the request of the prosecution, which
argued more time was needed due to the complexity of the case and alleged a
lack of cooperation from parties involved with the Orapin Global. The
prosecution, in particular, said it had not received certain documents from
the owner needed for a technical analysis. Michael Chalkitis, 58, of the
Evoikos, a Greek citizen, and Sokolowski, 54, a Polish citizen, were
arrested shortly after the collision and are free on
Singaporean$100,000/U.S.$63,000 bail each. Chalkitis was accused of a
breach of duty, failing to reduce speed and preventing the Evoikos from
being seriously damaged under the Singapore Merchant Shipping Act. He could
be sentenced to two years in prison, a fine of S$50,000/U.S.$31,000 or
both. Sokolowski was accused under Singapore's penal code of navigating
recklessly, endangering lives and failing to take action to avoid a
collision. He could be sentenced to six months in prison, a
S$1,000/U.S.$600 fine or both.

(AT) LAST...BUT NOT LEAST...

New Zealand crew wins Atlantic Rowing Race

Kiwi Challenge, a team of two New Zealand citizens, rowed into Port
St. Charles, Barbados, to win the inaugural Atlantic Rowing Race recently,
completing a 41-day crossing that broke the record by weeks. Robert Hamill,
34, and Phil Stubbs, 35, arrived with their nearest competitors as much as
a week out. Their official time was 41 days, 1 hour, 55 minutes, breaking
the record of 73 days, 4 hours set by Sean Crowley and Mike Nestor of the
United Kingdom in 1986. The race began 12 Oct. at Tenerife in the Canary
Islands.
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"When beholding the tranquil beauty and brilliancy of the ocean's skin, one
forgets the tiger heart that pants beneath it; and would not willingly
remember, that this velvet paw but conceals a remorseless fang" - Herman
Melville from "Moby-Dick; or, The White Whale," Chapter 114, Paragraph two

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