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World Maritime News - 21 Nov., 1997

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Steve Schultz

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Nov 24, 1997, 3:00:00 AM11/24/97
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World Maritime News - 21 Nov., 1997
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BUSINESS

P&O European Ferries - Stena Line deal conditionally approved

P&O European Ferries Ltd. and Stena Line A.B. received conditional
approval on 19 Nov. to merge their English Channel ferry services. The
European Commission said that it was concerned about the possibility
passenger fares might increase if the union abolishes duty-free retailing
for intra-Europe travel in 1999. As a result, the two firms were called on
to place a cap on their fares if circumstances warrant, particularly if
passenger service on the channel mainly becomes a competition between the
venture and Eurotunnel. The new ferry line is expected to control 40
percent of cross-channel transport with Eurotunnel having 45 percent. The
merger will be reviewed in June 1999. The venture will operate services
between Dover, England, and Calais, France; Newhaven, England, and Dieppe,
France; and Dover and Zeebrugge, Belgium. The merger was announced 14
months ago. P&O European Ferries will have 60 percent of the firm and Stena
Line the rest. Each will have equal voting rights. The combined fleet
numbers 14 vessels but with changes planned, about 1,000 of the 5,000
employees may be cut through voluntary actions. The merger will save 75
million British pounds/U.S.$127 million each year but a restructuring will
cost 38 million pounds/U.S.$64 million.

Cie. Maritime Belge to buy 54 percent of Cie. Nationale de Navigation

Cie. Maritime Belge said this week it will purchase 54 percent of Cie.
Nationale de Navigation from Worms & Cie. for 431 million French
francs/U.S.$74.4 million. The deal is expected to be completed 5 Jan.

Veba to increase Bilspedition Transport and Logistics stake, Finnlines to
own Poseidon Schiffahrt

Veba AG will buy 35 percent of the share capital of Bilspedition
Transport and Logistics from Finnlines Ltd. Veba will have 51 percent of
the voting rights and will handle the deal through Schenker-Rhenus, part of
its Stinnes Reederei AG. One group company will be formed in each country
where there are operations. The new unit will be the largest European
transport firm with 29,100 employees in 30 countries and a turnover of 11.4
billion German marks/U.S.$806 million this year. Bilspedition Transport and
Logistics has 14,500 personnel and a turnover of 5.4 billion marks/U.S.$3.1
billion. In return, Finnlines will get all the shares of Poseidon, which
owns eight ships and operates ro/ro and rail ferries in the Baltic and
North seas with Finnlines. Poseidon also has 31.8 percent of Teamlines GmbH
& Co. and had turnover last year of 265 million marks/U.S.$152 million.
Finnlines will realize a profit of 500 million Finnish markka/U.S.$95.1
million. The sale to Veba includes shares held by Elake-Varma,
Teollisuusvakuutus and Veikko Laine. The shares were worth 45 Swedish
krona/U.S.$5.90 each or 410 million marks/U.S.$236 million.

Botany Bay Parcel Tankers International to join Stolt Tankers Joint Service

Stolt-Nielsen S.A. said 17 Nov. its Stolt Tankers Joint Service has
entered a long-term vessel pooling agreement with the partners of Botany
Bay Parcel Tankers International. Nine ships will joint Stolt Tankers Joint
Service and will operate on trans-Pacific routes. The ships are stainless
steel coated chemical and product tankers from 12,500-dwt to 19,300-dwt.
Botany Bay Parcel Tankers International is comprised of Barton Shipping
Group with five tankers, Bibby Line Ltd. with two ships and Unicorn
Tankers, part of Unicorn Lines (Pty.) Ltd., with two ships. Stolt Tankers
Joint Service has 56 owned and 11 chartered ships.

D.S.R. buys Seetours International

Deutsche Seereederei Rostock has bought Seetours International, a
cruise business that charters passenger ships.

FRONAPE to become independent

Frota Nacional de Petroleiros will become independent of Petroleos
Brasileiros S.A. on 15 Jan.

St. Lawrence Seaway Authority in tentative deal

Canada's St. Lawrence Seaway Authority has reportedly reached a
tentative agreement with a labor union that includes 730 of its employees.

Three firms join to ship L.N.G. from Qatar

Mobil Shipping and Transportation Co., Osprey Maritime Ltd. and Qatar
Shipping Co. announced 17 Nov. they have formed a joint venture to
transport liquefied natural gas, primarily export cargo from Qatar.

Lykes Lines to replace European agents with in-house units

Lykes Lines Ltd. L.L.C. has announced plans to expand its presence in
Europe. Instead of using agents, Lykes Lines will establish dedicated sales
and service units. The first unit will be formed in France by the end of
the year with the personnel of the present agent, Charles Le Borgne,
transferred to the new organization. In the first half of next year,
similar operations will be formed in Belgium, Germany, the Netherlands and
the United Kingdom.

Silja restructuring in Baltic

Silja is forming three units for its Baltic Sea operations, focusing
on cargo, passengers and vessel management.

Finansbanken to issue shares

Finansbanken will issue 100 million Norwegian kroner/U.S.$14.1 million
to finance its purchase of Skipskredittforeningen A/S, a ship financing
firm.

Four ships of Seaways Shipping Enterprises released

A court in London has freed four ships of Seaways Shipping Enterprises
Ltd. They had been involved in a dispute between the owner of the firm,
John Frangos, and his former father-in-law, Loucas Haji-Ioannou. A chancery
judge ruled that a dispute over ownership of the three bulk carriers and a
general cargo ship should be handled in Greece. The dispute involves the
break-up of the marriage between Frangos, who controls Seaways Shipping
Enterprises, and Loucas Haji-Ioannou's daughter, Clelia. At issue is the
nature of U.S.$49 million remitted to Frangos. The Haji-Ioannou family says
the money was given "in trust" to buy ships but Frangos said the money was
a gift.

A&S Shipping bankrupt

A&S Shipping, an 11-year-old operating agent in Bremen, Germany, has
filed for bankruptcy after a restructuring agreement failed.

Two court hearings involving Black Sea Shipping postponed

A court in Naples, Italy, which was to hold a hearing on the detention
of the Odessa (2,137-dwt passenger ship built in 1974, operated by Black
Sea Shipping Co.) on 6 Nov., has postponed the hearing until 26 Nov. The
ship was arrested at Naples about two and a half years ago for U.S.$45
million in debts owed to Planmarin. The money is part of U.S.$225 million
in Black Sea Shipping debts. Also, a trial regarding a U.S.$13 million
resort complex owned by Black Sea Shipping in the Canary Islands was
postponed in Madrid, Spain, on 13 Nov. Intramar S.A. took legal action to
get U.S.$1 million it says is owed by Black Sea Shipping. Finally, a London
Admiralty Court finally passed judgement 21 Nov. on the validity of the
sale order made for Black Sea Shipping's Giuseppe di Vittorio, under arrest
at Newport, England.

APL restructuring container responsibilities

As part of an internal restructuring, APL Ltd. in the United States
will be responsible for trans-Pacific container routes. APL Co. in
Singapore will be responsible for the rest. APL is the container shipping
division of Neptune Orient Lines Ltd.

Three Norwegian underwriters to mandate I.S.M. Code

Three Norwegian insurance underwriters, Gjensidige Skadeforsikring,
Storebrand Skadeforsikring A/S and Vesta Forsikring A/S, have announced
that they will refuse to insure vessel operators that do not comply with
the International Safety Management Code.

Fuel contractor sentenced in San Francisco

John Santana, 54, the president of International Marine Fuels, has
been sentenced for his role in a scheme that overcharged the U.S.
Department of Defense U.S.$2.5 million for fuel. U.S. District Court Judge
John C. Lifland sentenced him to a year and a day in prison and fined him
U.S.$1 million. He pleaded guilty in 1995.

AMOSUP buys training ship

AMOSUP, the Philippine labor union, has bought a ship and hotel for
training its members.

Stolt-Nielsen gain in share sale

Stolt-Nielsen has gained U.S.$132 million in a sale of four million
shares of Stolt Comex Seaway. Equivalent to U.S.$2.40 per share, the gain
will be reflected in results for the year ending 30 Nov. The money will be
used to fund a U.S.$1.5 billion newbuilding program. Half of the shares
came from Stolt Parcel Tankers and the rest were through a secondary share
issue by Stolt Comex Seaway. Each of the shares sold for U.S.$60.50 for net
proceeds of U.S.$234 million after expenses. From two million shares,
Stolt-Nielsen got U.S.$117 milion, from which carrying costs of U.S.$30
million are subtracted. The new issue makes up the rest of the gain.
Stolt-Nielsen has a 42 percent stake and 60 percent voting interest in the
subsidiary.

Carotrans International names Singaporean agent

Carotrans International, a non-vessel operating common carrier, has
appointed MAC-NELS Shipping (S) Sdn. Bhd. as its agent in Singapore.

Waveney Shipping offer oversubscribed

A share offering by Waveney Shipping has been oversubscribed.

ENSCO International announces pricing of notes

ENSCO International Inc. said 20 Nov. it has priced notes in an
underwritten public offering that closes 25 Nov. They include U.S.$150
million of 6.75 percent senior unsecured notes due 15 Nov., 2007, at 99.982
percent to yield 6.752 percent, and U.S.$150 million of 7.20 percent senior
unsecured debentures due 15 Nov., 2027, at 99.582 percent to yield 7.234
percent. Proceeds will be used to retire an existing secured revolving
credit facility and purchase an additional "jack-up" rig. The underwriters
are are Goldman, Sachs & Co. as the lead, BT Alex. Brown, Credit Suisse
First Boston and Salomon Brothers Inc.

Transocean Offshore business notes

Transocean Offshore has declared a quarterly cash dividend of 3
British pounds/U.S.$5 per share, payable 19 Dec. to shareholders registered
by 5 Dec. Also, as of 3 Nov., Bank of New York has become the transfer
agent and registrar for Transocean Offshore.

Grupa PZM to open Singapore office

Grupa PZM will open a representative office in Singapore, it was
announced 19 Nov. The firm formed offices in Asia in the 1970s but closed
them in the 1980s. Grupa PZM is more commonly known as Polish Steamship Co.

Iraq smuggling increases 500 percent

The United States told a committee of the United Nations Security
Council on 18 Nov. that Iraq's illegal export of petroleum, mainly via the
coastal waters of the Persian Gulf, has increased 500 percent in the last
year. Mostly diesel fuel, the cargoes are shipped inside Iranian and Iraqi
territorial waters, out of range for naval vessels and aircraft enforcing
economic sanctions against Iraq. The United States estimates that Iraq sold
about U.S.$10 million in diesel fuel last year and U.S.$75 million this
year. Some of the fuel has been traced to Mumbai, India. Sanctions against
Iraq have been in place since its invasion of Kuwait in August 1990.

ROUTES AND SERVICES

T.S.A. to raise FEU rate on 1 May

Members of the Transpacific Stabilization Agreement have unanimously
agreed to an increase of U.S.$300 per FEU on all current tariffs and
service contract rates, effective 1 May. This is the first instance in the
eight-year history of the group that members have met to discuss rates and
services and have taken specific action.

Australia and New Zealand/Eastern Shipping Conference to restore rates

The Australia and New Zealand/Eastern Shipping Conference will
increase its rates from containers moving from Japan to eastern and
southern Australia. The prices will be U.S.$100 per TEU and U.S.$200 per
FEU. The rates come into effect with the sailing of the Southern Cross Maru
(33,637-dwt containership built in 1987, operated by Mitsui O.S.K. Lines)
from Yokohama, Japan, on 12 Jan.

TACA lowering lumber rates, changes fuel factor

The Trans-Atlantic Container Agreement has lowered its lumber rates 17
to 18 percent on service contracts from the eastern and Gulf coasts of the
United States to northern Europe. The rates are effective until at least 31
Dec. The Shipper Service Association and the U.S. Lumber Shippers'
Association reported decreases of $250 per FEU. Reportedly, the rates,
based on structure, have gone from U.S.$1,398 to U.S.$1,150 and from
U.S.$1,460 to U.S.$1,210. Also, the Westbound Participation Factor and the
Bunker Adjustment Factor East/Interim Fuel charges have been changed. The
cost is U.S.$16 per TEU from Atlantic and Gulf coast ports in the United
States and U.S.$24 per TEU from Pacific ports. The changes take effect 13
Dec.

APL, Wan Hai Lines to start new intra-Asia service

APL Ltd. and Wan Hai Lines Ltd. will start a new weekly service
between Hong Kong, Indonesia, Japan, the Philippines and Taiwan named
Intra-Asia Express II (IAX2). The first southbound sailing from Japan will
leave Tokyo on 26 Nov. using the Westermuehlen (Liberian-registry
20,140-dwt containership built in 1993) and the first northbound sailing
from Indonesia will depart Surabaya on 10 Dec. Four containerships will be
deployed, with calls at Tokyo, Yokohama, Osaka and Kobe in Japan; Keelung,
Taiwan; Hong Kong; Manila, the Philippines; Surabaya and Jakarta in
Indonesia; Kaohsiung, Taiwan; Hong Kong; and Tokyo. As a result, APL's
calls at Jakarta, Manila and Surabaya will increase from two per week to
three. Jakarta to Tokyo will take 11 days and Keelung to Manila is four
days. Wan Hai Lines will assign three 800-TEU ships to the service and will
revise its service between Kansai, Japan; Manila; and Java in Indonesia. It
will instead call at Kansai, Taiwan and Hong Kong. APL will use an 800-TEU
ship. Wan Hai Lines started the Java Super Service, which is affected as a
result, in Kaohsiung on 19 Nov.

Mitsui O.S.K. Lines and P&O Nedlloyd Container Line revise route

Mitsui O.S.K. Lines and P&O Nedlloyd Container Line Ltd. have
announced a revised fixed-day weekly service named the East Africa Express.
The A route, with three 750-TEU vessels from P&O Nedlloyd Container Line,
calls at Singapore; Port Klang, Malaysia; the Seychelles; Port Louis,
Mauritius; Reunion; Dar es Salaam and Zanzibar in Tanzania; Mombasa, Kenya;
Tanga, Tanzania; the Seychelles and Port Klang. The B route calls at Port
Klang; Sinagpore; Port Louis; Reunion; Toamasina, Tanzania; Dar es Salaam;
Mombasa; Cochin, India; and Port Klang. Three 650-TEU Mitsui O.S.K. Lines
ships will be used.

Hanjin, "K" Line temporarily shift calls from Long Beach, Los Angeles

Due to congestion at the California ports of Long Beach and Los
Angeles caused by dockworker shortages and problems on Union Pacific
Corp.'s rail operations, Hanjin and Kawasaki Kisen Kaisha Ltd. have
reworked their calls. Hanjin's North America Express will first call at
Portland, Ore., then Oakland and Long Veach in California. "K" Line ships
will stop at Oakland first then call at Long Beach.

N.Y.K. to start monthly conventional service

Nippon Yusen Kaisha will start a monthly semi-liner conventional
service between Japan and Western Australia.

TNX and Grupo Libra service to become weekly, C.M.A.-C.G.M. joining

The container service operated by Transroll Navieras Express (TNX) and
Grupo Libra between eastern South America and the eastern United States
will start a fixed-day weekly frequency by the end of the month. Six
1,600-TEU containerships, three from each company, will be used, including
the Libra Miami (Panamanian-registry), the Libra New York (Cypriot-registry
20,406-dwt containership built in 1995, operated by Peter Dohle
Schiffahrts-KG (GmbH & Co.), the Libra Santos, the Nordpol, the TNX Express
and the TNX Sprint. Calls in the United States include Jacksonville, Fla.;
Norfolk, Va.; Philadelphia; Jacksonville; and Miami. Calls will then be
made in Santos, Rio de Janeiro, Fortaleza, Rio Grande and Sao Francisco do
Sul in Brazil; Buenos Aires, Argentina; San Juan, Puerto Rico. Also, Cie.
Maritime d'Affretement - Cie. Generale Maritime will start a slot-charter
service this month with TNX Express between eastern South America and the
United States. It hopes to add its own ship to the service by the second
half of next year. C.M.A. - C.G.M. expects to handle 50 TEUs per week,
increasing to 200 TEUs in two months.

COSCO adds Kobe

China Ocean Shipping (Group) Co. has added Kobe, Japan, to its
Japan-Thailand container service. Four ships now operate a fixed-day weekly
schedule with calls at Yokohama, Tokyo, Nagoya and Kobe in Japan; Hong
Kong; Bangkok, Thailand; Huangpu, Shekou, Hong Kong and Xiamen in China;
and Yokohama. The first vessel to call at Kobe was the Jing An Cheng
(22,814-dwt dry cargo ship built in 1993, operated by COSCO Shanghai) on 14
Nov.

Maersk Line and Sea-Land Service switching German port

Maersk Line and Sea-Land Service Inc. will shift their Hamburg,
Germany, call to Bremerhaven, Germany.

Maersk Line adds Reunion to feeder route

Maersk Line is extending its route between Mauritius and Durban, South
Africa, which is operated by a 350-TEU ship with calls every two weeks, to
Reunion.

River Oceans Shipping Europe on new route

River Oceans Shipping Europe Corp. will start a bimonthly, three-ship
sailing between Rotterdam, the Netherlands; Bilbao, Spain; Aberdeen,
Scotland; a Norwegian port; and St. Petersburg, Russia. It will handle
breakbulk and containers.

New Geest North Sea Line service

Geest North Sea Line B.V. will start a new service between Denmark,
the Netherlands and the United Kingdom with Trans-ship. A daily
door-to-door container service will be offered from Hull and Tilbury in
England to Rotterdam, the Netherlands. Containers will then be trucked in
Denmark. Usual transit times are four to five days.

Gulf Africa Line adds monthly service to South Africa

Gulf Africa Line has announced that it will start monthly sailings to
Cape Town, Durban, East London and Port Elizabeth in South Africa from New
Orleans with three ships.

New Asian cruise operator

Sun Cruises, the first Singaporean-owned cruise operator, will begin
services 30 Nov. Metro Holdings will own 67 percent with Sembawang Corp.
having 27 percent and DCI Holdings 2 percent. The rest is held by
management. Sun Cruises has Singaporean$70 million/U.S.$44 million in
capital and expects to generate S$70 million/U.S.$44 million to S$80
million/U.S.$50 million in its first year. As planned, capital funding will
be recouped in five or six years. S$180 million/U.S.$114 million has been
spent hiring employees and buying the Sun Vista and Sun Viva, which are
being refitted. The former will enter service 30 Nov.

Jugoslav Ocean Plovidba to start service to Mediterranean, Canary Islands

Jugoslav Ocean Plovidba has announced it will start a three-ship
breakbulk and heavy lift service between New Orleans, the Canary Islands
and the Mediterranean Sea. The service will be bimonthly.

TBS North America Liner Service to call in South America

TBS North America Liner Service will offer breakbulk, container and
project cargo to western South America, with calls at Rio de Janeiro and
Santos in Brazil and Buenos Aires, Argentina.

New route between New York and Port-au-Prince

North Star Ocean Services has started a weekly container service from
New York to Port-au-Prince, Haiti. It will also handle project and
specialized cargo.

Conterm Consolidation Services increases service

Conterm Consolidation Services (U.S.A.) Inc. has added to its weekly
Pacific Northwest to Japan Express Service. A non-vessel operating common
carrier, cargo will now be shipped from Seattle to the Japanese ports of
Kobe, Osaka, Tokyo and Yokohama. It is reportedly the only such direct
service. Transit times are 10 days to Tokyo and 12 to Kobe.

ECU Line shifting to Mombasa

ECU Line N.V. is dropped its service to Dar es Salaam, Tanzania, in
favor of Mombasa, Kenya, on 18 Nov. It has experienced four-month delays to
cargo at Dar es Salaam, as food and medical supplies are given precedence
due to conditions elsewhere. ECU Line uses CMB N.V. ships that leave
Antwerp, Belgium. Also, ECU Line has named Nacol Ltd. as its Ugandan agent.

Irish Ferries dropping Cork - Le Havre sailing

Irish Ferries said 18 Nov. that it will end its ferry service between
Cork, Ireland, and Le Havre, France. A new vessel, the Normandy (24,872-gt
ferry built in 1982 in Sweden), has been chartered from Gotland Rederi A.B.
to operate the company's routes between Rosslare, Ireland, and Cherbourg
and Roscoff in France but as a result, will drop the Cork - Le Havre
sailing. The vessel replaces the Saint Killian II (13,638-gt, 2,676-dwt
passenger ferry buult in 1973) and the Saint Patrick II (1,325-dwt
passenger ferry built in 1973), which are for sale and laid up in Le Havre.
The Normandy is now operating in the Baltic Sea and will start service for
Irish Ferries on 1 April. It can carry 450 vehicles or 48 articulated
freight units and 1,600 passengers. The vessel will arrive in France during
the morning.

Lagan Viking joins Norse Irish Ferries

The Lagan Viking, a new ro/ro ferry, entered service with Norse Irish
Ferries Ltd. on 15 Nov., sailing between Belfast, Northern Ireland, and
Liverpool, England.

Sea Containers shifting SuperSeaCat

Sea Containers Ltd. has announced it will transfer one of its two
340-dwt SuperSeaCat passenger ferries, built this year, to its route
between Liverpool, England, and Dublin, Ireland, in March.

New ferry service from Connecticut to New York proposed

Sea Conn, a new company based in New Haven, Conn., has made a proposal
to operate high-speed luxury ferries between Bridgeport, Conn., and Wall
Street in New York. Sea Conn is arranging U.S.$85 million in financing for
the service, which would be the first regular ferry route between
Connecticut and Manhattan. The sailing, using what Sea Conn says will be
the fastest ferries in the world, would take an hour. Operations may begin
by spring 1999.

North and South Korea agree to persue ferry service

North Korea and South Korea agreed 17 Nov. to persue a vehicle and
passenger ferry service between the two countries. The announcement came
during the meeting of the United Nations Development Program's Tumen River
Area Development Program between China, North Korea, South Korea and Russia
in Beijing. As planned, the service would operate between Rajin, North
Korea, and Sokcho, South Korea. The service has been discussed for more
than five years but disputes between the two countries have intervened.
South Korea objected that project involved North Korea's Committee for the
Promotion of External Economic Cooperation, rather than the central North
Korea government, and also had concerns that the safety of South Korean
citizens could not be guaranteed. In addition, the two countries remain at
war though a cease-fire has been in place since 27 July, 1953.

Irish east coast rescue service awarded

Bond Heliports has won a contract to operate Ireland's east coast
helicopter rescue service. The service will start in June and will be based
at the Irish Air Corps' Mhic Easmuinn base at Baldonnel in County Dublin.

Eidsiva gets permission for Rodby service

Eidsiva has received permission from the Port of Rodby, Denmark, to
use the facility for a ferry service.

Rostock-Atlantik Linie's first sailing

Rostock-Atlantik Linie's first sailing is using the RAL Rostock
(12,000-dwt, 1,150-TEU containership built in 1997) formerly named Rahana.
The ship left Rostock, Germany, in ballast to load cargo at Helsingborg,
Sweden, and is being chartered from Draxl Schiffahrts GmbH.

Rembrandt's sailings announced

Premier Cruises has announced the itineraries for the Rembrandt
(38,645-gt, 7,801-dwt, 1,061-passenger 228-meter/748-foot passenger ship
built in 1959 by Rotterdam Drydock Co. in Rotterdam, the Netherlands).
Formerly the Rotterdam, Holland America Line - Westours Inc. said 8 Sept.
the ship would be sold Cruise Holdings Ltd. After a refit, the ship will
enter service 21 Dec. and until 12 April, will sail six and eight-night
cruises marketed by Brazilian firms to passengers in Argentina and Brazil.
It will then sail to the Mediterranean on a 21-day cruise from Santos,
Brazil, to Barcelona, Spain. Calls will be made at Rio de Janeiro, Ilheus,
Salvador, Fernando de Noronha and Recife in Brazil. After a six-day,
trans-Atlantic crossing, calls will be made at Lisbon, Portugal, and the
Spanish ports of Funchal in Maderia and Cadiz. From 4 May to 19 Oct., the
Rembrandt will sail seven-night cruises from Barcelona with calls at
Villefranche, France; the Italian ports of Civitavecchia, Messina and
Naples; and Palma de Mallorca, Spain.

Airport Ferry Services gets Hong Kong contract

Airport Ferry Services has won a contract to operate a ferry service
between Tuen Mun and Chek Lop Kok Airport in Hong Kong. The airport opens
in April. The group includes Discovery Bay Transportation Services Ltd.,
Marine Teknek Pte. Ltd. and Wang Tak Engineering & Shipbuilding Co. Ltd.
Vessels with a capacity of 300 passengers will operate every 20 minutes on
the nine-minute sailing.

Welgrow Line operating new vessel

Welgrow Line Pte. Ltd. has chartered a landing vessel, Muara Mas
Indah, to sail between Singapore's Loyang Offshore and Batam and Sekupang
in Indonesia. The vessel's first sailing was 26 Sept. in conjunction with
P.T. Senawangi, which will maintain the vessel. P.T. Welgrow Tanes will
handle sales from Batam, Indonesia, and Welgrow Agencies (S) Pte. is the
agent. The vessel operates on a daily basis except Sunday with a transit
time of five hours.

More on Seagull Express Service

The Seagull Express Service between eastern South America and the
Mediterranean has become a fixed-day schedule with six ships. Ships will
leave Buenos Aires, Argentina, on Sundays and from Genoa, Italy, the next
day. Santos, Brazil, will be called Fridays on the eastbound sailing. The
schedule will be Buenos Aires; Montevideo, Uruguay; Rio Grande, Sao
Francisco do Sul, Santos, Rio de Janeiro and Salvador in Brazil; Livorno
and Genoa in Italy; Marseilles, France; and Barcelona and Valencia in
Spain.

CANALS, PORTS AND STRUCTURES

Japanese dockworkers strike to protest recent agreements

Two of Japan's dockworker unions, the Japan Confederation of Port and
Transport Workers Unions and the National Council of Dockworkers' Unions of
Japan, began a 24-hour strike at 0800 21 Nov. The action is in protest of
recent agreements between Japan and the United States over the former's
port practices, particularly the "prior consultation" system. With 55,000
members, the strike is expected to effect most ports.

World Bank approves loans for Eritrea port projects

The International Bank for Reconstruction and Development approved a
U.S.$30.3 million loan on 18 Nov. for rehabilitation of two ports in
Eritrea. The loan is part of a U.S.$57.6 million project to improve the
ports of Assab and Massawa. The rest of the funding includes a loan of
U.S.$21 million from Italy and U.S.$6.3 million from the Eritrean
government.

Karachi to expand

The Port of Karachi, Pakistan, is planning a U.S.$350 million
modernization over five years. It will start late next year and
construction will include a container freight station, a hazardous
container terminal and deepening of channels.

Belgium financing port study in Vietnam

Belgium will provide 25 million Belgian francs/U.S.$700,000 to Vietnam
to help it finance a feasibility study for a multipurpose port in the
province of Ba Ria-Vung Tau. The port would be built near the mouth of the
Mekong River and handle 1.5 million tons annually.

Ground broken for Kadok Island terminal

Ground has been broken for a container terminal on Kadok Island at
Pusan, South Korea.

Chaophaya Terminal International to be replaced at Songkhla

The Port Authority of Thailand has decided to replace Chaophaya
Terminal International Co. Ltd. as the operated of the Port of Songkhla,
Thailand. The decision to terminate Chaophaya Terminal International's
contract at the end of the year was taken due to its inability to provide
sufficient services and equipment, according to the authority. In
particular, port users cited a lack of enough container cranes. The
authority has planned dredging and additional cranes.

Penang to let cruise terminal be built privately

Penang Port Sdn. Bhd. in Malaysia has decided it will not persue a
planned cruise terminal that would cost 1 billion Malaysian
ringgit/U.S.$292 million, on the advice of the Malaysian government's
Economic Planning Unit. The facility, at Swettenham Pier, was to be
completed by 2006. Private investors will be sought.

Logistec to buy two stevedoring companies

Logistec Corp. will buy Koninklijke Van Ommeren N.V.'s shares in
Elizabeth River Terminals in Chesapeake, Va., and Marine Port Terminals in
Brunswick, Ga., by 31 Dec. Each operation has annual turnover of U.S.$17.5
million.

Group Five Goodwin to upgrade Democratic Republic of Congo corridor

Group Five Goodwin has received a 2.5 billion South African
rand/U.S.$534 million contract contract to upgrade and operate a transport
corridor between Matadi, Democratic Republic of Congo, and the country's
capital, Kinshasa. The work will be done over several years with the first
phase costing 700 million rand/U.S.$145 million. Group Five Goodwin will
upgrade two ports and rail and road connections between them.

Katoen Natie to invest in French facility

Katoen Natie will invest in a petrochemical terminal at Marseilles/Fos
in France.

Montevideo container terminal privatization stalls

Privatization of the only container terminal at Montevideo, Uruguay,
has stalled after two disqualified bidders made formal complaints.

Court: Authority for St. Lawrence Seaway pilots should be with Coast Guard

A U.S. federal court of appeals has ruled that St. Lawrence Seaway
Development Corp. and the U.S. Department of Transportation cannot oversee
U.S. pilots in the seaway and should return the responsibility to the U.S.
Coast Guard. In April 1996, a federal judge ruled that St. Lawrence Seaway
Development could oversee pilotage but pilots appealed, stating that the
transfer of jurisdiction was beyond the transportation department's
authority. As a result of the new decision, the case has been sent back to
the U.S. District Court for the District of Columbia with instructions that
that court is to void the December 1995 order that transferred
responsibility.

ASEAN planning a floating science center

The Association of Southeast Asian Nations has purchased a vessel for
use as a floating science center. Formerly used by the Department of Marine
Science at the University of Putra, Malaysia, is being refurbished at Port
Dickson, Malaysia. Exhibits of science and technology will be installed and
ASEAN countries will send scientists that will collaborate on work aboard
the ship.

Port of Tacoma approves 1998 budget

Washington's Port of Tacoma Commission has unanimously approved a
U.S.$52 million operating budget for next year. The budget is a decrease of
5.4 percent compared to this year's U.S.$55 million. The port's tax levy,
which totaled $5.9 million this year, will be maintained at U.S.$0.1861 per
U.S.$1,000 assessed value. The commission said it expects the rate will
generate U.S.$6.3 million in 1998, an increase of about U.S.$400,000. The
budget for next year includes a U.S.$263 million, five-year capital
improvement program. It includes U.S.$34 million for rail and road
expansion. In all, U.S.$88 million will be spent on improvements next year
with U.S.$63 million for development.

Trailer Bridge seeks to lease land for loading facility at Jacksonville

A filing has been made to the U.S. Federal Maritime Commission for
Trailer Bridge Inc. to rent 6.9 hectares/17 acres of the Jacksonville,
Fla., Port Authority's Blount Island Terminal. Trailer Bridge would receive
preferential use of a triple-deck loading facility to be built on the site.

Mozambique announces changes to private operations

Mozambique has announced two important changes to private operations
at the Port of Maputo that may deter future investment.

Karachi increases utility fees retroactive to 1990

Pakistan's Karachi Port Trust has increased its utility charges for
operators of bulk liquid cargo by 20 percent. Water and sewer services have
been raised from 7.5 percent to 27.5 percent, retroactive to 1990.

Cape Cod Canal V.T.S. delivered

Hughes Aircraft Co.'s Naval and Maritime Systems delivered its first
vessel traffic management system to the U.S. Army Corps of Engineers on 21
Nov. Under a U.S.$4.8 million contract, the system was installed in the
Cape Cod Canal and is controlled from Buzzards Bay, Mass. The system was
built using commercial off-the-shelf equipment, including very high
frequency radios, five radars, 11 closed-circuit television cameras and
several senors to track air, water and wind changes. In addition to
monitoring traffic in the 28-kilometer/17.5-mile canal, the system also
integrates the status of buildings and bridges along the waterway that are
owned by the Army Corps of Engineers. Tide and wind conditions at New
Bedford, Mass., are also observed, to enable closing of the New Bedford
Hurricane Barrier if necessary.

Port Everglades land purchase approved

Port Everglades, Fla., will be allowed to buy 104 hectares/260 acres
for U.S.$120 million. The Broward County Commissioners took the action 5
Nov. The land, next to the Southport Container Terminal, will become
container yards and an intermodal container transfer facility. Some of the
land will become a warehouse and distribution center for World Gate
Partners L.P., which will pay U.S.$45 million over 35 years.

Associated British Ports opens V.T.S. center

Associated British Ports has opened the Humber Estuary's new 2.1
million British pound/U.S.$3.5 million vessel traffic service center at
Spurn Point in England.

Low water levels in St. Lawrence Seaway halt traffic

Low water levels in the St. Lawrence Seaway on 14 Nov. near the Dwight
D. Eisenhower Lock halted navigation. About 10 vessels anchored in the
Prescott and St. Zotique anchorages.

Hiberia producing oil

The Canadian$5.8 billion/U.S.$4.1 billion Hibernia project said 17
Nov. that it has produced the first crude oil from the Hibernia platform,
315 kilometers/195 miles southeast of St. John's, Newfoundland. The
production is one month early.

Queen Elizabeth 2 calls at Miami

The Queen Elizabeth 2 (British-registry 65,863-gt, 15,521-dwt,
294-meter/963-foot passenger ship built in 1969 by John Brown & Co. Ltd. at
Clydebank, Scotland; operated by Cunard Line Ltd.) made its first call at
Miami on 15 Nov. and as the flagship of Cunard Line's five ships, is the
first of the company's vessels to do so. Next year, three ships will sail
from Miami with 15 port calls.

United Grain shuts operations

United Grain Corp. in Vancouver, Wash., has suspended operations after
a ship hit its dock.

Smit Maritime Contractors installing mooring system off Gabon

Smit Maritime Contractors has received a contract to install a mooring
system for a floating storage and offloading vessel in the Tchatamba
petroleum field, about 160 kilometers/100 miles south of Port Gentil,
Gabon. The work is being done for Modec (U.S.A.) and operations by Marathon
Petroleum Gabon at the field are to begin late next month. The mooring unit
has four wire and chain units, each with three legs including an 18-ton
anchor, a 95-millimeter/3.8-inch ground wire up to 550 meters/1,800 feet
long and a mooring chain, up to 449 meters/1,470 feet long, connecting to a
chain stopper on the mooring. The legs will have tension of 340 tons. Two
anchor handling tug/supply vessels will be used for the work starting next
month.

More on Port Botany strike

The Maritime Union of Australia has started a strike at the CTAL
facility in Port Botany, Australia. Reportedly, the union wants a person to
be hired full-time to drive a van that transports employees to locations at
the facility. P&O Ports, which operates CTAL, says that a driver is only
needed 30 minutes per shift. Two ships have been affected by the strike.

Dos Bocas closed

The Mexican port of Dos Bocas reopened 18 Nov. after closing in high
winds.

SHIPYARDS AND EQUIPMENT

Damen Shipyard Group bids for Frisian Shipyard Welgelegen

Damen Shipyard Group has made an offer for Frisian Shipyard Welgelegen
in cash. The two firms have reached a broad agreement and Damen Shipyard
Group has to get the approval of Frisian Shipyard Welgelegen's minority
shareholder, Central Industry Group, which has 22 percent. Frisian Shipyard
Welgelegen, thr largest shipyard in the northern Netherlands, has 260
employees but has encountered financial problems following a fire.

Croatian shipbuilders combine

Five Croatian shipbuilding businesses will combine to form a
government-controlled holding company.

Kvaerner Govan to get investment but lose 100 jobs

Kvaerner Govan Ltd. said 18 Nov. it will cut 100 jobs but spend 7
million British pounds/U.S.$12 million on improvements. The cuts in
personnel will be made by the end of the year, at which time the shipyard
will have 800 employees. Next year, a new office building, a paint facility
and other items, incuding a new computer aided design system, will be added
in addition to training.

Crewmember killed at Newfoundland Dockyard

A 44-year-old man was killed 15 Nov. in an accident in a dry dock at
Newfoundland Dockyard Corp. The man was a crewmember of a vessel at the
facility.

Wave from launch of U.S. Coast Guard icebreaker injures 20

About 20 people were injured 15 Nov. during the launch of the U.S.
Coast Guard's new polar icebreaker, the Healy (WAGB 20), at Avondale
Industries Inc. in New Orleans. A wave from the launch hit viewing stands
at least 15 meters/50 feet away and about 30 or 40 people were soaked by
the water, which threw debris including driftwood, gravel and sand into the
stands about 4.6 meters/15 feet off the ground. Most of the injuries were
abrasions, bruises and cuts, but 11 were treated at a local hospital and
one had a broken femur. The Healy was launched sideways, starboard first,
and the wave was generated from the stern. Speeches planned after the
launch were canceled.

Hyundai Heavy Industries sues to block award of submarine contract

Hyundai Heavy Industries Co. Ltd. filed a lawsuit 18 Nov. in the
district court of Seoul, South Korea, to protest its exclusion from a
contract to build attack submarines for the Republic of Korea Navy. The
suit is seeking to have the South Korean Ministry of Defense stopped from
awarding a contract to Daewoo and allow others to bid for construction of
more submarines. Hyundai Heavy Industries said that Daewoo had failed to
acquire enough foreign technology from its partner in the submarine order,
Howaldtswerke-Deutsche Werft AG, and as a result, Daewoo is "a mere
assembly plant." Daewoo and Howaldtswerke-Deutsche Werft are building the
Chang Bogo-class attack submarines, South Korea's only such vessels, with
the lead ship built at Kiel, Germany, two built at Okpo, South Korea, with
supplied components and the final three largely by Daewoo itself. At issue
are follow-on submarines.

More on German shipbuilding subsidies

As announced, a German parliamentary budget committee has decided to
extend shipbuilding subsidies for vessels ordered next year. The federal
government will contribute 80 million German marks/U.S.$46 million but it
will only be available if the coastal states provide another 160 million
marks/92 million. At a total of 240 million marks/U.S.$138 million, the
1998 subsidies would be a 30 million mark/U.S.$17 million decrease from
this year. Under the committee's proposal, shipbuilders could get
subsidised orders worth between 3.5 billion/U.S.$2.0 billion and 4 billion
marks/U.S.$2.3 billion. Also, Germany will continue interest rate subsidies
of up to 100 million marks/U.S.$58 million, with half for eastern yards and
half for western facilities.

Geest North Sea Line patents new container

Geest North Sea Line B.V. has secured a patent for a
13.7-meter/45-foot container that meets European Union length regulations.
Containers are limited to 13.7 meters/45 feet but the new container
complies by effectively eliminating corners. The design is 2.5 meters/8.2
feet wide. The first 500 will reportedly be delivered in the second quarter
for about U.S.$6,000 to U.S.$6,500 per container. Geest North Sea Line will
sell its 3,000 12.9-meter/40-foot containers and replaced by the new ones
over four to five years.

Blohm + Voss Industrie gets first passenger ship orders since 1935

Royal Olympic Cruise/Epirotiki-Sunline has ordered two passenger
ships from Blohm + Voss Industrie GmbH for U.S.380 million. There is an
option for a third. The shipbuilder said the orders will guarantee 1,500
jobs beyond 2000. They are the first passenger ship orders for Blom + Voss
Industrie since 1935 and will be delivered in 2000 and 2001. Each will be
181 meters/594 feet long with 400 cabins on eight decks. They will be
capable of 27 knots.

New venture will buy two tankers from Hyundai Heavy Industries

Mobil Shipping and Transportation Co. and Qatar Shipping Co. announced
17 Nov. they have formed a joint venture, QM Tanker Co., which will
purchase two double-hulled crude oil tankers from Hyundai Heavy Industries
Co. Ltd. The joint venture, in which each partner will own 50 percent, will
receive two 105,600-dwt tankers in the fourth quarter of 1999. Both will be
chartered to Mobil Shipping and Transportation.

Hyundai Heavy Industries gets Reading & Bates order

Hyundai Heavy Industries Co. Ltd. said 17 Nov. it will build a
U.S.$250 million drilling ship for Reading & Bates Corp. The 23,000-ton
semi-submersible ship will be delivered in November 1998 and will be used
in the Gulf of Mexico.

Samsung Heavy Industries to build two drillships for Navis

Samsung Heavy Industries Co. Ltd. will build two 70,000-ton
double-hulled drilling ships for Navis Ltd. at a price of U.S.$240 million.
They will be delivered in the first half of 2000 for work in the North Sea.
Each will be 198 meters/650 feet long, have a 40-meter/131-foot beam and
31.25-meter/102.5-foot depth. Each will have an oil drilling plant in the
center of the hull and will drill to 3,000 meters/10,000 feet.

Godby Shipping places ro/ro order

Godby Shipping A.B. has ordered two 7,250-dwt ro/ros with J.J. Sietas
Schiffswerft.

Augustea Marittima orders new bulk carrier

Augustea Marittima has ordered a 75,080-dwt bulk carrier from Mitsui
Engineering & Shipbuilding Co. Ltd. It will be built at the Chiba facility
in Japan for delivery by the end of 1999, reportedly at a cost of U.S.$28.5
million. The ship will be able to carry 80,000 cubic meters/104,000 cubic
yards of grain per cargo hold and will be built to Lloyd's Register
classification rules with a strengthened hull to permit holds 2, 4 and 6 to
remain empty. The ship will have a Mitsui B&W 7S50 MCC engine for 14.5
knots.

Halter Marine Group gets largest order, two Zentech R-450 rigs...

TDI-Halter Inc. will build two Zentech R-450 "jack-up" drilling units
capable of drilling in water up to 107 meters/350 feet for Chiles Offshore
L.L.C. Each rig will cost about U.S.$95 million including equipment
installed by the owners, with the total shipyard contract price for each
rig at U.S.$68 million. They will be built at Pascagoula, Miss., with some
prefabricated equipment from TDI-Halter facilities in Texas. The two
contracts are the largest ever for Halter Marine Group Inc. The Zentech
R-450 is 73.2 meters/240 feet long with a beam of 64.6 meters/212 feet.
Depth to the main deck is 7.9 meters/26 feet and loaded, the draft is 4.36
meters/14.3 feet. The rig will be about 15,100-dwt elevated. Longitudinal
leg centers are 39.3 meters/129 feet with transverse leg centers of 43.3
meters/142 feet. There is a helicopter deck in the form of a
22-meter/73-foot octagon with 1.5 meters/five feet of safety netting. Each
rig has legs of at least 137 meters/450 feet with a maximum well centerline
off the stern at 23 meters/75 feet. They have American Bureau of Shipping's
Maltese Cross A1 Self Elevating Drilling Unit classification.

...TDI-Halter to build substructure for drillship

TDI-Halter Inc. will build the substructure for an ultra deep-water
drillship for Transocean Offshore Inc. The Discoverer Enterprise is being
built in Spain and will then sail to Equitable Shipyards Inc. in Louisiana
for installation of the structure. The 1,200-ton unit is 39.6 meters/130
feet long by 24 meters/80 feet wide by 20 meters/67 feet tall. It has two
drills for operating up to 3,000 meters/10,000 feet. The contract is worth
U.S.$5 million and after installation in the first quarter, the ship will
operate on a long-term contract to Amoco Corp. in the Gulf of Mexico.

Avondale Industries to build sixth Bob Hope-class sealift ship...

Avondale Industries Inc. is receiving U.S.$209,955,156 for a sixth
U.S. Military Sealift Command Bob Hope-class vehicle cargo ship. The total
contract for the ship will likely be about U.S.$240 million and it will be
completed by September 2001 in New Orleans. One option remains.

...National Steel and Shipbuilding to construct additional sealift ship

National Steel and Shipbuilding Co. is receiving U.S.$196,020,263 for
construction of an additional U.S. Military Sealift Command Watson-class
vehicle cargo ship. It will be built in San Diego for delivery by September
2001.

Largest pure car carrier yet built to enter service

Hyundai Merchant Marine will begin operating the Asian Chorus next
month, carrying high-speed passenger trains from France to Seoul, South
Korea. The largest pure car carrier in the world, the Asian Chorus was
built by Hyundai Heavy Industries Co. Ltd. The ship is 200 meters/656 feet
long, has a beam of 32 meters/105 feet and a depth of 20 meters/66 feet.
Loaded with 6,000 vehicles, it is capable of 20.1 knots. Seven other ships
will enter service by 1999.

More on order by Jahre Dahl Bergesen

Jahre Dahl Bergesen's order for a 153,000-dwt tanker from Halla
Engineering & Heavy Industries Ltd. is reportedly worth around U.S.$52
million and includes one option. The ship will be delivered in the second
half of 1999.

BP Shipping deal for new tankers moving ahead

BP Shipping Ltd. said 17 Nov. it has concluded an agreement to charter
four 301,440-dwt double-hulled tankers that can carry at least 2.1 million
barrels of crude oil each. BP Shipping will bareboat charter the ships from
Cambridge Oil Transportation Corp. when they are delivered in the second
half of 1999 and 2000 from Samsung Heavy Industries Co. Ltd. Abney National
Bank P.L.C. is the contractor. The contract includes options for two more
ships. Headed by Cambridge Partners, bonds worth U.S.$347 million to
finance the ships have now been offered. The offering included U.S.$103.2
million in serial secured notes and U.S.$243.9 million in term secured
notes. The notes have a final maturity of 20 years with interest during the
30 months of construction capitalized. The term notes will have a final
balance of U.S.$11 million per ship. The debt proceeds will be used with
equity and funds generated by British finance leases. Payments to Samsung
Heavy Industries will be made through two British leasing firms with
proceeds from the note issues deposited with credit-worthy lease support
banks as collateral for the lessors. BP Shipping will make up any shortfall
in head leases and Abbey National Treasury Services P.L.C. has guaranteed
the sale and transfer of the ships to protect bondholders if the lessors go
bankrupt. Goldman Sachs provided underwriting. BP Shipping will bareboat
charter the ships for nine to ten and half years from four bankruptcy
remote companies restricted from raising debt. At the end of that period,
BP Shipping can cancel each charter on 12 month basis or renew it. Each
tanker will be 334 meters/1,095 feet long with a beam of 58 meters/190 feet
and a depth of 31.25 meters/102.5 feet. They will be capable of 15 knots
with a MAN B&W two-stroke engine of 25,850 kilowatts/34,650 brake
horsepower, which will be built under license by Samsung Heavy Industries
at Changwon, South Korea. There are 17 cargo tanks and the ships will be
registered in Bermuda with homeports of Hamilton.

APL orders refrigerated containers in largest order yet for Carlisle

Carlisle Cos. Inc. said 19 Nov. that its container unit has received a
U.S.$68 million order from APL Ltd. for 2,590 refrigerated aluminum I.S.O.
marine containers. Production will start in December and will be completed
by mid-1999. The refrigeration units are from Carrier Transcold and Thermo
King. It is the largest single container order in Carlisle's history.

World's fastest ferry delivered

The fastest ferry yet built has been delivered to Buquebus
International Ltd. at Buenos Aires, Argentina.

Ailsa-Troon launches largest fishing vessel in years

Ailsa-Troon Ltd. has launched the largest trawler built in the United
Kingdom in 25 years.

Lloyd's Register to class L.N.G. carrier for Korea Gas

Lloyd's Register has been named as the classification society for a
liquefied natural gas carrier being built by Hanjin Heavy Industries for
Hanjin in South Korea. It will be the 18th membrane containment L.N.G. ship
classed by Lloyd's Register. The ship, 265.5 meters/871.1 feet long, will
have a cargo capacity of 135,000 cubic meters/176,000 cubic yards and will
carry L.N.G. down to -163 degrees Celsius/-261 degrees Fahrenheit. It will
have a steam turbine with a dual-burning boliler. Construction will start
in mid-1998 for delivery in mid-2000. It is one of seven ships ordered for
U.S.$1.75 billion by Korea Gas Corp. in August. Hanjin will operate two,
with the other building at Hyundai Heavy Industries Co. Ltd.

Lady of Mann under repair for broken camshaft

The Lady of Mann (British-registry 770-dwt passenger ferry built in
1976, operated by Isle of Man Steam Packet Co. Ltd.) is being repaired at
Wright & Beyer Ltd.'s Bidston dry dock in England. The ferry was sailing
from Dublin, Ireland, to Liverpool, England, when a camshaft broke on 7
Nov.

Hamworthy Marine Technology gets Samsung Heavy Industries order

Hamworthy Marine Technology Ltd. has received its first order for
engine room compressors from Samsung Heavy Industries Co. Ltd. The 150,000
British pound/U.S.$254,000 order is for 22 V-Line compressors for
installation aboard newbuildings at the Koje Island facility in South
Korea.

Kvaerner unit to build equipment for Leif Hoegh vehicle carrier

Kvaerner Ships Equipment's ro/ro unit in Gothenburg, Sweden, has
received an order for access geat to be used on a pure car/truck carrier
being built for Leif Hoegh & Co. A.S.A. The order includes design and
manufacture of a three-section axial stern ramp/door, side ramp/door for
the starboard side, moveable ramps and covers and four hoistable decks
operated by a scissor lift vehicle. The stern ramp is on deck 5 and the
side ramp is to either deck 5 or 6 depending on the quay height. The ramps
and covers will accept up to 150 tons. Maximum stowage headroom will be
between 1,650 millimeters/66 inches on deck 4 to 5,000 millimeters/200
inches on deck 5. The equipment is for a 6,000-vehicle vessel being built
by Daewoo Heavy Industries Ltd. in Okpo, South Korea. The 12-deck ship will
be delivered in January 1999.

EVENTS, INCIDENTS AND OPERATIONS

Four former crewmembers of the Maersk Dubai denied refugee status

Four Filipino citizens who were crewmembers of the Maersk Dubai
(Taiwanese-registry 29,872-gt, 31,160-dwt, 2,138-TEU containership built in
1983, owned and operated by Yangming Marine Transport Corp.) were denied
refugee status in Canada on 17 Nov. Ariel Broas, Esmeraldo Esteban, Juanito
Ilagan and Rudy Miguel had their applications rejected by the Canadian
Immigration and Refugee Board. The four had said in their applications that
they and their families would be at risk in the Philippines. Despite
statements by two members of the board, Eunice Harker and Dale Noseworthy,
that crewmember's families had been harassed, intimidated and threatened,
the board decided the actions were not persecution. The board said some of
the incidents were random violence. An appeal can be filed within 15 days.
On 24 May, 1996, the Maersk Dubai arrived in Halifax, Nova Scotia. Eight
Filipino crewmembers deserted, alledging that the officers subdued a
Romanian stowaway on deck during the voyage. The crew said he was never
seen again, inferring that he was forced overboard. The crew said they had
protected another Romanian stowaway, and he was later brought ashore. They
also said that on 12 March, 1996, the crew was forced to put two other
Romanian stowaways on a raft made of oil drums 48 kilometers/30 miles off
Spain. After an assault on the ship by the Royal Canadian Mounted Police to
take the crew into custody, legal proceedings began to determine what
country would try the master, first mate, second mate, chief engineer,
chief cook and radio officer. On 6 March, Justice Michael MacDonald ruled
that the six cannot be tried in Canada or Romania, though he said there was
enough evidence to charge the master and four crew with second-degree
homicide, and to charge the master and three officers with two counts of
manslaughter. The officers are now in Taiwan and an investigation into
possible prosecution is on-going.

Crewmember of fishing vessel evacuated in the Pacific Ocean

On 16 Nov., the U.S. Coast Guard's Hamilton-class High-Endurance
Cutter U.S.C.G.C. Munro (WHEC 724) was diverted to the Conquista
(Venezuelan-registry fishing vessel), about 480 kilometers/300 miles
northwest of Ecuador's Galapagos Islands. A crewmember was involved in a
diving accident and required treatment in a hyperbaric chamber. On 18 Nov.,
the cutter's HH-65A Dolphin helicopter took the crewmember to the
U.S.C.G.C. Munro and the next morning, flew to Galapagos Airport. There,
the crewmember was placed aboard a U.S. Air Force C-130 Hercules and flown
to Howard Air Force Base in Panama. He was then taken to Patilla Hospital
for treatment.

Fisherman to be evacuated from vessel in the Pacific Ocean

A 51-year-old crewmember aboard the fishing vessel Katherine Y, about
272 kilometers/170 miles southwest of Kauai, Hawaii, was reported 18 Nov.
to be suffering from appendicitis. A U.S. Coast Guard HH-65A Dolphin from
Coast Guard Air Station Barbers Point, Hawaii, was to evacuate the
crewmember. The helicopter was to use the U.S. Navy's Arleigh Burke-class
Guided-Missile Frigate U.S.S. Paul Hamilton (DDG 60) for refueling. The
ship was northeast of Niihau, Hawaii, and is sailing to the Katherine Y.

Crewmember from Carnival ship off Cuba airlifted

On 7 Nov., a vessel off Cuba operated by Carnival Corp. reported to
the U.S. Coast Guard that a 20-year-old male crewmember from India had
possible head trauma. A flight surgeon determined that the man could have a
brain aneurysm and an HH-65A Dolphin helicopter airlifted the man from the
ship, escorted by an HU-25A Falcon from Coast Guard Air Station Miami that
received permission to enter Cuban airspace. At U.S. Naval Station
Guantanamo Bay, Cuba, the man was transferred from the Dolphin to the
Falcon and taken to Doctor's Hospital in Coral Gables, Fla., in serious but
stable condition.

More than 100 Haitian migrants found off Florida

The U.S. Coast Guard found more than 100 Haitian migrants aboard a
24-meter/80-foot vessel about 10 kilometers/six miles southeast of the
entrance to the Port of Miami on 20 Nov. 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. Shortly after,
the Coast Guard's "Island"-class Patrol Boat U.S.C.G.C. Maui (WPB 1304)
arrived and began an escort. At 1039, the vessel, off Miami, started moving
towards shore and ignored radio calls and visual hails. When it refused to
stop, the U.S.C.G.C. Maui used shouldering to persuade it to halt, at which
time it was surrounded and boarded.

Five arrested in Japan for smuggling migrants

Japanese police arrested five men recently for attempting to smuggle
56 Chinese migrants into the country aboard the fishing vessel Mahane Maru,
which is now docked at Tosashimizu, Japan. The five include the master,
Tamio Sekino, 31.

Vessel turned over to Colombia for investigation after marijuana found

On 17 Nov., the U.S. Navy's Oliver Hazard Perry-class Guided-Missile
Frigate U.S.S. Lewis B. Puller (FFG 23) established radar contract with a
vessel sailing west, about 208 kilometers/130 miles east of Isla de San
Andres, Colombia. A Navy P-3C Orion aircraft identified the Amigo Taru II
(Colombian-registry) and a U.S. Coast Guard Law Enforcement Detachment
aboard the frigate boarded. A kilogram/2.2 pounds of marijuana was found in
a stateroom and although a crewmember said it was his, the boarding party
thought the packaging appeared to indicate a larger amount of contraband.
The vessel, crew and marijuana were transferred to the custody of a
Colombian Navy vessel for investigation.

U.S. Coast Guard finds illegal dredge on scallop vessel

During a boarding of the Mary Jane (U.S.-registry 23-meter/74-foot
scallop vessel homeported at Newport News, Va.) at 1000 19 Nov.,
crewmembers from the U.S. Coast Guard's "Island"-class Patrol Boat
U.S.C.G.C. Adak (WPB 1333) found an illegal dredge obstruction. The vessel
was boarded 72 kilometers/45 miles southeast of Nantucket, Mass. The Mary
Jane was to be escorted to New Bedford, Mass., where U.S. National Marine
Fisheries Service personnel will investigate. The vessel's catch, estimated
to be more than U.S.$28,000, was also seized.

Buoy off Maine repaired

A weather buoy anchored five kilometers/three miles east of Cape
Elizabeth, Maine, is operating again. The 1,600-kilogram/3,500-pound buoy
was put in place last week but failed after two days. On 19 Nov., a new
computer was installed.

VESSEL TRANSFERS

Dragonix ships arrested

Two tankers of Dragonix (Singapore) Pte. Ltd. have been arrested by
their crews in cooperation with local affiliate unions of the International
Transport Workers Federation in Singapore. The crews of the Dragon Regal
and the Dragon Supreme (Singaporean-registry) acted when they were not paid
their wages. Another ship, the Dragon Sunrise (Singaporean-registry
3,880-dwt tanker built in 1977), has been anchored in China for five months
and the crew says it has not been paid since September. A crewing agent in
the Philippines has approached the I.T.W.F. regarding detention of a fourth
ship, the Dragon Success (Singaporean-registry 3,638-dwt tanker built in
1976), now in Batam, Indonesia.

Bay Ferries to operate Devil Cat

The Devil Cat will become the first large vehicle catamaran to enter
service in North America when operations begin with Bay Ferries.

Neptunia cie de Navegacao takes new containership

Neptunia cie de Navegacao has purchased a 1,000-TEU containership from
Croatia Line. Originally, the company was to take the vessel on a year-long
time-charter.

Navrom to sell 10 ships

Navrom S.A. will issue a tender on 5 Dec. to sell 10 ships from
2,800-dwt to 16,600-dwt. The ships were built between the mid-1970s and the
early 1980s. Reserve prices are from U.S.$1.5 million for the Oituz
(16,600-dwt dry cargo ship built in 1976) to U.S.$300,000 for the Sadova
(4,733-dwt dry cargo ship built in 1976).

Farrell Lines buys three containerships

Farrell Lines Inc. has bought three 2,000-TEU containerships. They
will be registered in the United States and operate between the eastern
United States and the Mediterranean Sea. The ships were built for CMB N.V.
in 1992 and will replace two 1,200-TEU ships built in 1972 that will be
scrapped.

Bulk carrier sales

Clients of Navitas Compania Maritima S.A. have purchased the White
Rose (75,722-gt, 149,228-dwt strengthened motor bulk carrier built in 1996
by Hyundai Heavy Industries Co. Ltd. at Ulsan, South Korea) for about
U.S.$39.6 million. The ship has nine hatches and a B&W main engine for
13,078 kilowatts/17,780 brake horsepower. The Eurasian Charm (22,558-dwt
bulk carrier built in 1982) has been sold to buyers based in Piraeus,
Greece, for U.S.$6.2 million to U.S.$6.3 million.

VESSEL CASUALTIES

One dead, three missing after collision in darkness off Japan

The Seiun Maru No. 20 (Japanese-registry 499-gt motor vessel built in
1989) capsized and sank at 0200 15 Nov. after colliding with the Sumiho
Maru No. 75 (349-gt squid motor fishing vessel built in 1987) off Iwate
prefecture, Japan, at 39 degrees 54.2 minutes north, 142 degrees 02.9
minutes east. One of the Seiun Maru's crew was rescued, three are missing
and Masuaki Kurose, 49, was found dead. The vessels collided nine
kilometers/5.6 miles off Tanohata and none of the 12 people aboard the
Sumiho Maru were injured.

Green Lily breaks up off Shetlands, rescue helicopter crewmember killed

The Green Lily (Bahamian-registry 3,624-gt, 4,348-dwt motor
refrigerated ship built in 1978, operated by Green Chartering A/S), sailing
from Lerwick, Scotland, to Las Palmas in the Canary Islands with frozen
fish, had engine problems off the Shetland Islands of Scotland at 59
degrees 55 minutes north, 00 degrees 49 minutes west, on 19 Nov. It was
taken in tow by the Gargano (Italian-registry 1,374-dwt tug built in 1975,
operated by Rimorchiatori Napoletani Srl.) but the tow parted and the Green
Lily ran aground. Battered by high winds and heavy seas, the ship broke up
20 Nov. One person, reportedly a crewmember of a rescue helicopter, was
killed during evacuation of the ship's crew.

Collision sinks Syrian-registry vessel

The Nadine (Syrian-registry 1,498-gt motor vessel) sank after a
collision with the Fiandra (Greek-registry 704-gt tanker) on 21 Nov. at 38
degrees 39 minutes north, 25 degrees 56 minutes east, in the Aegean Sea.
The crew was rescued.

Grounding in Guam spills 38,000 liters/10,000 gallons of fuel

On 5 Nov., the Shogun (Panamanian-registry) ran aground 90 meters/300
feet north of the main channel entrance at Rota, Guam. About 38,000
liters/10,000 gallons of No. 2 diesel fuel spilled and another 5,750
barrels were taken off the vessel.

U.S. Coast Guard icebreaker suffers fire

On 1 Nov., the U.S. Coast Guard's lead vessel of the U.S.C.G.C. Polar
Star (WAGB 10)-class icebreaker suffered a fire 360 kilometers/225 miles
northeast of Molokai, Hawaii. Flames were found near the lagging at the
transition between the ship's gas generator and the main gas turbine room.
The Polar Star-class has a combined diesel and gas turbine propulsion
system, with six Alco 16V251 diesel engines at 2,200 kilowatts/3,000 brake
horsepower each and three Pratt & Whitney FT-4A12 gas turbines, each
down-rated with 19,000 kilowatts/25,000 shaft horsepower. With an electric
drive and three controllable-pitch propellers, the ship has 49,000
kilowatts/66,000 shaft horsepower. The fire was extinguished with PKP and
water but the area had a large amount of smoke. Four crewmembers were
treated for slight smoke inhalation and seven others for heat exhaustion.

Loaded tank barge grounds in Connecticut River

The 89.0-meter/292-foot tank barge Hygrade No. 22 ran aground about
0300 18 Nov. in the Connecticut River near Higganum, Conn., about 90
meters/300 feet off Haddam State Park. The barge, with 2.71 million
liters/714,000 gallons of diesel fuel, was refloated at 1335. None of the
cargo spilled and after being refloated, the barge resumed its tow by the
tug Port Jeff to Amerada Hess Corp.'s Wethersfield, Conn., pier.

Ship with 4,000 tons of grain grounds in Don River

The Strelets, carrying 4,000 tons of grain, remained aground as of 18
Nov. in the lower Don River in Russia. Over three days, three tugs and a
crane were used to dig a trench in sand alongside the ship and lighter 200
tons of grain. The vessel is reportedly aground on two small segments of
the Lisichansk-Tikhoretsk oil pipeline. The Strelets was to be refloated
but winds blew water from the river into the Sea of Azov.

Tow grounds in lower Mississippi River

On 7 Nov., the Stonewall Jackson, with a tow of 30 barges, ran aground
at Mile Marker 437 in the lower Mississippi River. The area was closed to
navigation until the barges were removed later that day.

Barge loses cargo in bad weather on Lake Michigan

A barge took on water the morning of 17 Nov. in bad weather, listed
and dumped its cargo five kilometers/three miles southeast of the Rawley
Point Lighthouse north of Two Rivers, Wis. About 4,900 tons of steel mill
scrap, a crane and a front-end loader sank in 46 meters/150 feet of water
after the scrap cargo shifted. The Chief Wawatam (2,891-gt, 2,891-nt,
106-meter/347-foot deck barge built in 1911, owned by J.W. Purvis Marine
Ltd.), has minor damage though not to its hull. It was being towed by the
Avenger IV (293-gt, 86-nt, 36.6-meter/120-foot motor tug built in 1962 with
1,800 kilowatts/2,400 horsepower, owned by J.W. Purvis Marine). After a
U.S. Coast Guard investigation, the tow was released at 1800 17 Nov. to
continue its voyage.

Bulk carrier drifts for eight hours in Lake Huron

The Myron C. Taylor (U.S.-registry 8,233-gt, 6,552-nt,
184.02-meter/603.75-foot motor bulk carrier built in 1929 by Great Lakes
Engineering Works at River Rouge, Mich.; operated by USS Great Lakes Fleet
Inc.) lost power 16 Nov. in Lake Huron after loading stone at Drummond
Island, Mich. The ship drifted eight hours until the Philip H. Clarke
(U.S.-registry 12,342-gt, 9,372-nt, 234-meter/767-foot turbine bulk carrier
built in 1952 by American Ship Building Co. at Lorain, Ohio; operated by
USS Great Lakes Fleet) arrived, apparently with parts needed for repairs.
The Myron C. Taylor then sailed for Detroit.

Passenger ship towed to port after blackout

The Edinburgh Castle (British-registry 32,753-gt, 9,000-dwt passenger
ship built in 1966, owned by Lowline Ltd., formerly the Eugenio Costa),
sailing from Genoa, Italy, to New York, had a complete electrical failure
following boiler problems 17 Nov. at 37 degrees 39 minutes north, 22
degrees 25.55 minutes west. It was towed to Ponta Delgada in the Azores
Islands, by the Fotiy Krylov (2,253-dwt tug built in 1989, operated by
Tsavliris). The Edinburgh Castle had been drydocked in Genoa and is to be
used as a gambling vessel in New York. This summer, the ship was chartered
by Direct Cruises for sailings in Scandinavia and the Meidterranean. The
summer cruises will be repeated for the next three years.

Update on spill in Humboldt Bay

About 17,240 liters/4,537 gallons of bunker C fuel spilled 5 Nov. from
the Kure (Panamanian-registry 36,009-gt, 195-meter/639-foot motor bulk
carrier) in Humboldt Bay near Eureka, Calif. The ship punctured its after
fuel tank about 7.2 kilometers/4.5 miles north of the entrance to the bay
when it backed into pilings at the Louisiana Pacific Lumber Co. The U.S.
Coast Guard closed the area to navigation during clean-up, which involved
more than 400 people including Clean Bay Inc. and 32 U.S. Coast Guard
personnel. The Kure was to load wood chips for Japan.

Haji-Ioannous cleared in Haven explosion

Loucas Haji-Ioannou and his son Stelios were cleared 21 Nov. of
manslaughter and four other charges in a court in Genoa, Italy, in
connection with the deaths of five crewmembers of the Cypriot-registry very
large crude carrier Haven, which exploded at Genoa on 11 April, 1991. The
ship was operated by Troodos Shipping Co. Ltd. and the ship exploded during
a cargo transfer.
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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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