Google Groups no longer supports new Usenet posts or subscriptions. Historical content remains viewable.
Dismiss

World Maritime News - 5 June, 1998

3 views
Skip to first unread message

Steve Schultz

unread,
Jun 6, 1998, 3:00:00 AM6/6/98
to

World Maritime News - 5 June, 1998
---------------------------------------------------------------------------
NOTICE: The next issue will appear 11 June instead of 12 June. It will
return to regular Friday distribution as of 19 June.
--------------------------------------------------------------------------
BUSINESS

I.T.W.F. study reports on crew conditions

A recent report by MORI for the International Transport Workers'
Federation has stated that a quarter of crewmembers surveyed said that they
had been the victim of racism while 10 percent had suffered physical
violence. The Seafarers' Living Conditions Survey questioned 6,504
crewmembers using a form which was then evaluated. Some 11 percent said
they had to pay to get a job with 43 percent of Indonesian citizens
reporting they had to pay. Crews on open-registry ships accounted for 44
percent of those questioned, about the proportion of the gross tonnage of
open registry ships, but vessels under open registry total only 19 percent.
Ships registered in Romania, Russia and Ukraine were ranked the lowest with
the longest hours, lowest pay and most unsafe conditions. Also, many
crewmembers reported that they are paid less than the federation level of
U.S.$1,100 per month at the time of the survey. Some 84 percent of
Philippine citizens earned less.

European Shippers' Council adopts voluntary chartering code

The European Shippers' Council has formed a voluntary code that
specifies criteria shippers should use in chartering a vessel. Minimum
operational standards are laid out, such as varifying a vessel's port state
control status, classification society and survey information, protection
and indemnity coverage, hull and machinery insurance, crew standards,
registry state status and compliance with the International Safety
Management Code.

Indian Parliament approves crew legislation, new shipping budget announced

The Indian Parliament has approved a bill to regulate safety standards
and working hours of crewmembers aboard Indian vessels. In addition, the
Indian government has announced a new budget that includes shipping
provisions. "Infrastructure status" will be granted to three inland
waterways and port terminals.

Bundestag approves new tonnage tax, other measures

Germany's Bundesrat has agreed to to a new tonnage tax and other
shipping aid worth 100 million German marks/U.S.$56.6 million each year.
The proposals have now been sent to the Bundestag. Under the proposal,
German shipowners would be able, starting next year, to choose between the
current income tax system for profits, including special depreciation, or a
tonnage tax. Owners would be allowed to keep 40 percent of crewmembers'
income tax deduction if the crewmembers work more than 183 days in
international trade. The Bundestag has also approved changes to German
marine insurance liability.

Royal Carribean Cruises to pay fine for pollution

Royal Carribean Cruises Ltd. agreed in a U.S. federal court on 2 June
to pay U.S.$9 million in fines for dumping oily bilge waste at sea. The
agreement will settle seven charges filed in Puerto Rico and one in Miami.
Of the payment, U.S.$1 million will be for conservation projects in Florida
and Puerto Rico. The company will be on probation for five years. It is the
largest criminal fine for a passenger ship pollution case. In February, an
indictment alleged that the Nordic Empress (Liberian-registry 5,344-dwt
passenger ship built in 1990) pumped bilge water overboard in the Atlantic
Ocean without filtering out oil. In late 1996, a Puerto Rican indictment
said that five ships, including the Nordic Empress, dumped oil off the
island as well as in the Pacific Ocean off Alaska and Canada. That
indictment accused the company's employees of conspiring to hide four years
of violations. One method involved falsification of records.

Independent review announced for British high-speed ferry report

The International Maritime Organization has authorized an independent
review of a British study into the safety of high-speed catamaran ferries.
The review will be led by Italy and will report to the Maritime Safety
Committee in May. The British review concluded that risks to people aboard
such vessels "are higher than previous accident experience which this type
of vessel has revealed." The report called for the organization to consider
new requirements for such vessels as part of a review of the International
Code of Safety for High-Speed Craft. The British study was confined to
collision and other contact-type accidents, fire and loss of hull
integrity. Total risk for the accidents was put at 0.077 equivalent
fatalities per vessel operating year, or about one death on each ferry
every 13 years. One-hundred minor injuries or 10 major injuries are
equivalent to one death. However, historical information places the figure
at 0.017. In the British report, collisions at high speed in confined
waters provided 84 percent of the risk, while loss of hull integrity is 8
percent, fire is 5 percent and contact is 3 percent. Courses of action that
were recommended include enhanced vessel traffic management, revision of
collision regulations and identification of high-speed craft and
development of improved operating procedures. The report was first
presented to the Subcommittee on Ship Design and Equipment in March.

Adac faults European ferries in annual survey

Only eight of 30 ferries recently inspected by Adac, a German insurer,
were found to be in good condition, according to a recent report. Another
eight were poor at best with five operating in the eastern Mediterranean
Sea. A total of nine ferries were checked in the eastern Mediterranean.
Each year, a group of surveyors working for Adac covertly investigates
ferries in Europe. One of the worst ferries, according to Adac, is a vessel
sailing between the Greek ports of Mykonos and Piraeus. A surveyor said the
bridge was overgrown with potted plants and an aquarium.

Polish Register of Shipping becomes associate member

The Polish Register of Shipping has been reinstated in the
International Association of Classification Societies as an associate
member. It was suspended in May 1997 for failure to comply with the
association's Transfer of Class Agreement and in October, the register's
Certificate of Conformity with the Quality System was suspended. An audit
was started in November. It will be upgraded to full membership pending
additional tonnage. Meanwhile, the statuses of the Croatian Register of
Shipping and the Indian Register of Shipping are under review.

Kenya to offer new training

The Kenyan government has announced plans to offer crewmember training
for International Safety Management Code compliance.

U.S. agency modifies inspection fees

The U.S. Centers for Disease Control and Prevention has changed its
proposal to start fees for "consultation services" during construction or
refits of passenger vessels. The agency had formed a fee category for ships
of more than 90,000 gross tons that are routinely inspected by it. The
basic sanitation inspection fee for such ships was to increase by 31
percent from last year. However, after several businesses said that the
facilities to be inspected on such ships differ little from the category
down, 60,000 to 90,000 gross tons. As a result, changes will be postponed
for evaluation. The Centers for Disease Control and Prevention covers costs
by charging for voluntary sanitation examinations. Fees are revised each
year by dividing the cost to the agency by a weighted number of all
inspections. The agency has also announced that consultation or inspection
will be provided in three phases.

Agreement between Australian, New Zealand unions under review

The Australian Competition and Consumer Commission is launching an
investigation into a trans-Tasman shipping accord between labor unions that
may be anti-competitive. The Maritime Union of Australia and the New
Zealand Seafarers' Union signed a memorandum of agreement to restrict water
transport of cargo between Australia and New Zealand to vesels owned by
citizens of the two countries.

Riverfront Development may increase A.C.L. stake

Riverfront Development Corp. has reportedly been offered 1.2 million
shares of Atlantic Container Line.

Frontline abandons bond issue

Frontline Ltd. has abandoned plans to issue U.S.$170 million in U.S.
bonds. According to Frontline, market conditions and bank terms made loans
more advantageous. The company said it would have been able to redeem the
10-year bonds by 2001. About U.S.$80 million of the bond proceeds were to
have been used to exercise options for five very large crude carriers at
Hyundai Heavy Industries Co. Ltd., which are being acquired from John
Fredriksen. Fredriksen, the chairman of Frontline, is now providing
"seller's credit" on the 20 to 30 percent of pre-delivery installments and
Frontline will take control of the companies formed to own the ships
shortly before delivery. The remainder of the bond proceeds would have
repaid bank financing used to buy 52 percent of ICB Shipping A.B.
Fredriksen, meanwhile, is reportedly buying three more ultra large crude
carriers.

Pacific & Atlantic Shipping issue

Pacific & Atlantic Shipping has issued a high-yield bond at 11.75
percent. The 10-year mortgage notes will be used to buy four to eight
vessels and repair existing ships. The company, formed this year to group
holdings of the Pateras family, will also use proceeds to repay existing
debt of U.S.$85.2 million. Capitalization will increase to U.S.$152.5
million.

Libra Oil formed

Linhas Brasileiras de Navegacao S.A. (LIBRA) has formed Libra Oil,
which will handle all of its water transportation of petroleum in Brazil.
BNDES has provided 360 million Brazilian reals/U.S.$313 million in credit
for the construction of four new vessels for Libra Oil, whose only current
client is Petroleos Brasileiros S.A. It has one ship, which it bought in
December from PETROBRAS.

Stock of Brostrom Van Ommeren Shipping to start trading

Stock of Brostrom Van Ommeren Shipping A.B. will start trading on the
Stockholm Stock Exchange's O-list on 17 June. A share offer of 215 million
Swedish kroner/U.S.$27.8 million, or 21 percent of capital, was fully
subscribed. There are about 2,500 shareholders.

OT Africa Line names new agent

OT Africa Line Ltd. has named Economou as its agent in Bulgaria,
Greece, Romania, Russia, Turkey and Ukraine.

Seaboard Marine names new agent

Seaboard Marine Ltd. has appointed Fillette Green as its general agent
for cargo moving through Gulfport, Miss., and New Orleans. The company will
handle business in Alabama, Arkansas, western Florida, Louisiana,
Mississippi and Tennessee.

New British passenger firm?

A company based in the United Kingdom is reportedly being formed to
offer discount cruises to former military personnel using a
British-registry passenger ship.

Gulf Agency opens new office

Gulf Agency Co. has opened an office in Cape Town, South Africa.

Hoegh Lines Agencies moves

Hoegh Lines Agencies Inc. relocated its New York office on 1 June. It
is now at One Edgewater Plaza, Suite 530, Staten Island, N.Y., 10305. The
telephone is 718-420-6700 and the facsimile is 718-273-7625.

Action taken to bar passenger ship from loading at U.S. ports

The U.S. Coast Guard Captain of the Port in Jacksonville, Fla.,
briefly barred the Oceanic (Bahamian-registry passenger ship owned by
Premier Cruise Lines Ltd.) from embarking passengers in the United States.
The ship's Control Verification Letter was revoked 1 June because the
vessel's operator and the Bahamas failed to show that the ship complies wih
Safety of Life at Sea (SOLAS) requirements. The Oceanic had been sailing
twice each weekly from Port Canveral, Fla., to the Bahamas. At issue was
whether the ship is exempt from the requirement to have a fire suppression
system in the form of a sprinker. The letter was reinstated 4 June after
documents were reviewed and the vessel was surveyed, which included removal
of several interior walls and ceilings.

During the time the Oceanic's letter was revoked, all operations were
cancelled. Passengers scheduled to sail on the ship were given free lodging
in the Orlando, Fla., area and were also given airfare. Passengers were
also offered a free cruise on the Oceanic or 50 percent off a seven-night
cruise on another ship of Premier Cruise Lines.

Three firms get I.S.O. 9002

Lloyd's Register granted I.S.O. 9002 certification on 1 June to J.G.
Goumas (Shipping) Co. S.A. and Tsakos Shipping & Trading S.A. and on 2 June
to Chandris (Hellas) Inc. The certification is for ship management and
incorporation of the International Safety Management Code.

ROUTES AND SERVICES

Asian Shipowners' Forum under investigation

The U.S. Federal Maritime Commission has ordered 10 companies to
provide information on the Asian Shipowners' Forum Stabilization of Trade
Committee in an effort to determine if it has engaged in illegal rate
setting, the commission said 29 May. The 10 control about 65 percent of
container shipping between Asia and the United States and are APL, China
Ocean Shipping (Group) Co., Evergreen Marine Corp. (Taiwan) Ltd., Hanjin,
Hyundai Merchant Marine, Kawasaki Kisen Kaisha Ltd., Mitsui O.S.K. Lines,
Orient Overseas Container Line, Nippon Yusen Kaisha and Yangming Marine
Transport Corp. Reportedly, the Section 15 investigation is focusing on a
March 1997 meeting in Hong Kong and a meeting in Taipei, Taiwan, a year
later. The commission is said to want to determine if the forum set rates
that under the U.S. Shipping Act of 1984 must be filed as a tariff. One
item the commission is taking into account is a note of understanding
released after the Hong Kong meeting which stated "a mutual understanding
and common recognition" had been agreed to on several issues including the
need for the companies to "observe orderly marketing/pricing in each trade
lane." The 10 companies have until 28 July to provide material.

Also, APL, Hyundai Merchant Marine and Mitsui O.S.K. Lines have been
ordered to provide the Federal Maritime Commission with information on
principal and Pacific regional meetings of the New World Alliance from 1
Oct. to 15 March. Orient Overseas Container Line and Nippon Yusen Kaisha
were ordered to to the same for Grand Alliance II meetings.

F.E.F.C. modifies rate increases

The Far Eastern Freight Conference is raising rates for containers
moving from Indonesia, Malaysia, Thailand, Vietnam and some parts of Taiwan
to Europe on 1 July. The new rates replace a previously announced general
rate increase. From Indonesia and Thailand, the rate will increase U.S.$300
per TEU while Malaysia and Vietnam will be increased U.S.$200 per TEU. For
the Taiwanese ports of Keelung and Taichung it will be increased U.S.$250.
The conference said container imbalances necessitated the increase. The
previously announced increase of U.S.$150 per TEU on containers moving from
Singapore to Europe will be implemented. On 1 Oct., a rate increase of
U.S.$150 per TEU will be made for containers from Asia to northern Europe
that will last at least three months. The conference controls 65 percent of
Asia to Europe container movements.

Anera to implement Hong Kong license fee

Anera has announced that it will charge a license fee for containers
moving to Hong Kong as of 1 July to cover the costs of invalid or delayed
license documents. Hong Kong$400/U.S.$51.60 will be charged though it will
be waived if a line is notified of any changes in commodity description
from quota cargo to non-quota within a week of departure. Anera members
will keep possession of the cargo until license fees are paid.

U.S.F.M.C. approves first inland conference

The U.S. Federal Maritime Commission has approved the first shipping
conference exclusively for inland freight moving between 28 countries in
the Americas, including the United States. The Inland Shipping Service
Association of six firms will create an intermodal tariff for door-to-door
container service. However, in order to make such a contract, the carrier
in the association must be a member of a conference in which the shipper
has an existing port-to-port contract. The conference was approved 30
April.

U.S.F.M.C. says APL, Sea-Land Service overcharged for route to Guam

The U.S. Federal Maritime Commission said 1 June that APL and Sea-Land
Service Inc. overcharged shippers to Guam more than U.S.$23 million from
1988 to 1990. The charges were said to have been three times more than what
was allowed in the trade between the western United States and Guam. APL
and Sea-Land Service are required to reimburse part of the money to the
island's government and four shippers, the only firms that filed complaints
in 1989. The government of Guam, however, has said it will ask a federal
appeals court in Washington to order a refund to all 146,000 residents,
which it says paid higher amounts than necessary for products on the island
as a result. APL is said to have charged more than U.S.$16.7 million from
1988 to 1990 while Sea-Land Service overcharged U.S.$6.3 million in 1988
and 1989.

S.A.E.C.S. to reduce refrigerated container rates

The South Africa Europe Container Service will reduce its refigerated
container rates.

T.W.R.A. changing currency, fuel factors on 1 July

The Transpacific Westbound Rate Agreement will change its currency
adjustment factor for containers moving from the United States to Singapore
and Taiwan on 1 July. For Singapore, the factor will be increased from 9
percent to 11 percent and for Taiwan, from 4 percent to 5 percent. The
factor for cargo to Japan will be reduced from 35 percent to 33 percent.
Also on 1 July, the fuel adjustment factor will be changed from U.S.$80 per
FEU and larger containers to U.S.$40 and from U.S.$64 per TEU to U.S.$32.
For vehicles, the factor will decrease from U.S.$40 to U.S.$20 while 305
board meters/1,000 board feet of lumber will go from U.S.$8 to U.S.$4.
Other cargo will have a factor per revenue ton of U.S.$2 from U.S.$4.

Association imposing surcharges due to Australian port situation

The United States Australia/New Zealand Association implemented an
Australian Port Disruption Surcharge on 5 June of U.S.$200 per TEU. The
surcharge applies to containers moving to Australia. A surcharge of 10
percent will be applied to breakbulk, less-than-containerload and ro/ro
cargo moving soutbound as well. On 19 June, the association will implement
an Australian Port Diversion Surcharge. U.S.$135 will be charged per
container for delivery if it is diverted.

Two lines detail expanded vessel sharing agreement

Lloyd Triestino di Navigazione SpA and Safmarine & CMBT Lines N.V.
have announced details of their expanded container service between western
Africa and the Mediterranean Sea. The weekly route will use four 1,100-TEU
containerships capable of 18.5 knots. The ships are geared and fully
cellular. The two firms will operate a vessel sharing agreement using the
Cape Sable (13,500-dwt containership built in 1995) and Carola of Lloyd
Triestino di Navigazione and the SCL Iberia and SCL Italia of Safmarine &
CMBT Lines. Two rotations will have a round trip time of 28 days.

New World Alliance changes PS1 route

The New World Alliance of APL, Hyundai Merchant Marine and Mitsui
O.S.K. Lines announced changes 3 June to its trans-Pacific PS1 container
service. The first U.S. call on the PS1 service will be changed from Los
Angeles to Seattle enabling transit times of 10 days from Kaohsiung, Taiwan
to Seattle; 11 days from Hong Kong to Seattle; and 15 days from Singapore
to Seattle. The six containerships will call weekly at Seattle's Terminal 5
or Global Gateway North. With the change, transit from Los Angeles to
Yokohama, Japan, will be 10 days and 13 days to Hong Kong. The new routing
will start 30 June with the departure of the APL Korea (U.S.-registry
66,520-dwt containership built in 1995, operated by APL) from Port Klang,
Malaysia. The rotation is now: Seattle on Friday to Sunday; Los Angeles on
Tuesday to Thursday; Yokohama on Sunday; Hong Kong on Wednesday and
Thursday; Yantian, China, on Thursday and Friday; Singapore on Monda; Port
Klang on Tuesday; Singapore on Wednesday and Thursday; Yantian on Saturday
and Sunday; Hong Kong on Sunday to Monday; Kaohsiung on Tuesday; and
Seattle. The change was made in advance of the peak summer congestion
period at Los Angeles.

Blue Star Line and Columbus Line add more calls

Blue Star Line Ltd. and Columbus Line announced 3 June upgrades to the
fixed-day weekly schedule in the Pacific Ocean. A call at San Francisco
will be added along with alternating calls at Suva, Fiji, and Papette,
Tahiti, northbound. The frequency of calls at Suva southbound will be
increased. The new calls will start with the arrival of the Columbus
Victoria (23,165-dwt containership built in 1979, operated by Columbus
Shipmanagement GmbH) in San Francisco on 25 June southbound and the next
day with the northbound sailing of the Columbia Star (18,250-dwt
containership built in 1980, operated by Blue Star Line) from Auckland,
New Zealand, to Los Angeles.

China Shipping Container Line adds two routes

China Shipping Container Line has started two new routes involving
China, Japan and Thailand. The Japan service will operate on a 13-day
rotation to Chiwan and Huangpu in China; the Japanese ports of Kobe,
Nagoya, Yokohama; Hong Kong; and Chiwan. The 14-day Thailand service will
call at Huangpu, Hong Kong and Zhanjian in China and Bangkok, Thailand.

T.M.M. ending Buenaventura exports

Transportacion Maritima Mexicana S.A. de C.V. will end export service
from Buenaventura, Colombia, to the United States. In a separate statement
5 June, Columbus Line noted that under the Serpac service agreement,
Transportacion Maritima Mexicana must carry any Colombian export cargo
under a Columbus Line bill of lading.

Deutsche Nah-Ost Linien switches calls

Deutsche Nah-Ost Linien has changed its rotations. It has removed a
call at Tunis, Tunisia, cutting transit from Antwerp, Belgium, to
Alexandria, Egypt, from nine days to eight on the southern route. The route
is now Felixstowe, England; Hamburg, Germany; Rotterdam, the Netherlands;
Antwerp; Alexandria; Beirut, Lebanon; Mersin and Izmir in Turkey; and
Salerno, Italy. Latakia and Tartus in Syria will be called on alternating
weeks. On the northern route, Tunis has been added and Hamburg dropped. The
rotation is: Felixstowe, Rotterdam, Antwerp, Tunis and Istanbul and Izmir
in Turkey.

Maersk Line expands to add direct Maputo call

Maersk Line will start direct calls at Maputo, Mozambique, from the
middle of this month on its route between Europe and South Africa as well
as Indian Ocean islands. The fixed bi-weekly service will call at Maputo on
Sunday sailing from Europe and on Tuesday sailing to Europe. The rotation
after leaving Europe includes Durban, South Africa; Maputo; Saint-Denis,
Reunion; Port Louis, Mauritius; Maputo; Durban; and back.

Toyofuji Shipping adds Port Klang

Toyofuji Shipping Co. Ltd. made its first call at Port Klang,
Malaysia, on 31 May with the Transfuture I (Panamanian-registry). It can
carry 406 TEUs and sails between Tokyo, Yokohama and Nagoya in Japan;
Keelung, Taiwan; Bangkok, Thailand; Singapore; Jakarta, Indonesia; Muara,
Brunei; Kota Kinabalu, Malaysia; Hong Kong; and Tokyo.

Sally Line encounters problems with passengers entering Belgium

Late last month, the Eurotraveller (Bahamian-registry 4,150-dwt ferry
built in 1976) sailed from Ramsgate, England, to Ostend, Belgium, marking
Sally Line's start of an independent service on the route. However, as many
as 200 passengers were allowed to disembark but to go any further,
including 50 who wanted to enter Ostend itself. The Belgian government has
said that the problem stems from the Schengen Agreement, which regulates
passenger travel through members of the European Union. The United Kingdom
has not signed the agreement. Apparently, the system by which passengers
from the United Kingdom enter Belgium is in question.

Proposed rule change for ferries between U.S. Virgin Islands modified

The U.S. government on 2 June modified a proposed rule that would have
prohibited people from accompanying their vehicles on ferries between two
of the U.S. Virgin Islands, St. John and St. Thomas. The rule would have
required vehicles and people to travel separately to prevent people from
packing into vehicles to save money on tickets. Now, a driver and one
passenger can accompany each vehicle.

CANALS, PORTS AND STRUCTURES

Indian Ocean states sign control agreement

Indian Ocean government meeting in Pretoria, South Africa, agreed to a
memorandum of understanding on port state control on 5 June.

Penang to cut at least 700 workers

Malaysia's Penang Port Sdn. Bhd. has offered its persinnel a voluntary
separation package in order to cut at least 700 of its 2,000 personnel in
18 months. The plan will be started in phases next month and will
reportedly save the company 60 million Malaysian ringgit/U.S.$15 million.
Under the plan, workers will get lay-off benefits equal to 38 months salary
while others will get a lump sum of 24 months salary. Gratuity and pension
benefits are included as well as a relocation allowance. The packages are
in three categories based on length of employment, current salary and
ranking. The plan will reportedly cost 30 million ringgit/U.S.$7.6 million.

Chennai returning to normal

Vessel movements at the Port of Chennai, India, are reportedly
returning to normal. The second week of May, senior tug masters demanded
that their status be upgraded with improvement in their salary. The Madras
Port Trust Employees' Union supported the move. Vessel movements stopped
and after more than a week, Indian Navy personnel took over the tugs.
However, the Madras Port Trust Employees' Union met with Indian Defense
Minister George Fernandes to explain the strike and the minister withdrew
Navy support. On 22 May, the port relented and met the demands though it
has taken some time for the port to return to normal.

Rotterdam V.T.S. fee stands

The Dutch government has received a temporary injunction from the Raad
van Staat which will allow it to continue charging for use of Vessel
Traffic Management when entering the Port of Rotterdam. Earlier this year,
shipowners won a case in the administrative chamber of the Rotterdam
District Court, which ruled that the levy was illegal. The government
appealed and the ruling was overturned. The latest decision has now been
appealed by the owners. The government receives 28 million Dutch
guilders/U.S.$14.0 million each year from the levy, which started 1 Oct.,
1995.

Chilean port privatization statutes signed

Chilean President Eduardo Frei Ruiz Tagle has signed three statues to
govern the privatization of 10 ports. The Chilean General Comptroller's
Office is now reviewing them. The statutes establish bidding criteria while
the actual procedure is handled by individual ports. In order to be
privatized, the ports must leave the control of Emporchi, the state port
firm, and become autonomous. Five ports have already done so and when the
rest follow, Emporchi will cease to exist.

Bangladesh to get first dedicated container terminal

Bangladesh on 2 June is said to have approved a proposal by SSA
Bangladesh Ltd., part of Stevedoring Services of America, to build a new
container terminal at Chittagong. SSA Bangladesh will also own and operate
the U.S.$500 million facility. It will reportedly be the largest
U.S.-funded project in the country. The terminal will be fully operational
by 2001 though some operations are planed within 18 months. The facility at
Patenga will handle 600,000 containers each year using a
1,070-meter/3,510-foot berth with a depth of 10.5 meters/34.4 feet. It will
be lengthened to 1,500 meters/4,920 feet. An inland container port at
Pangaon on the Buriganga River will also be started.

Freeport Container Terminal to expand, new passenger terminals nearby

Grand Bahama Development Co. and Hutchison Port Holdings have
announced the second phase of development at Freeport Container Port in the
Bahamas. Annual capacity will increase from 560,000 TEUs to 950,000 TEUs.
Three Super post-Panamax cranes will be added for a total of seven and a
new berth with 108 square meters/1,200 square feet of quay space will be
built. There are now two berths. Another 12 straddle carriers will be
purchased as well for a total of 22. About 60 more employees will be added.
Freeport Harbor Co., a venture of the container terminal owners, will also
spend U.S.$10.6 million to build two passenger terminals nearby for opening
in May. The terminals were designed by Barmello and Aajamil.

Sri Lanka forming marine police

Sri Lanka has announced it will form a marine police unit to combat
piracy and serve as a security force for the country's ports.

Development of Liepaja to start

Chartwell Technologies will invest U.S.$250 million in a special
economic zone at Liepaja, Latvia, the country's first. The company will
develop facilities in the northern area of the port, including a
60-hectare/148-acre container terminal and an 800-meter/2,620-foot dry bulk
quay. The facility will be able to handle 50,000-ton ships. Handling
equipment will be added along with a co-generation plant to supply Liepaja
with electricity.

Sepetiba privatization delayed

Privatization of the Port of Sepetiba, Brazil, has been delayed to
give bidders more time. The winning bid was to be announced 8 June, but it
will now be on 3 Sept. In addition, the process has been changed.
Previously, the port was to be sold to the highest bidder. Now, there will
be an open auction if the top two bids are within 10 percent of each other.

Manila raising rates

The Philippine Ports Authority has reportedly approved an average rate
increase of 15 percent for containers being handled by Asian Terminals Inc.
and International Container Terminal Services Inc. at the Port of Manila.
The rate will reportedly take effect 15 July. It has also been reported
that the same day, arrastre fees will increase 10 percent and stevedoring
20 percent.

Asian Terminals, meanwhile, has extended its contract to operate South
Harbor at Manila until 2013. It will spend 11.7 billion Philippine
pesos/U.S.$300 million on improvements over 10 years. Asian Terminals will
form a master plan and feasibility study by March.

Contship Italia challenging Cagliari concession

Contship Italia has filed an application with the Administrative
Regional Court in Cagliari, Italy, to have the concession to operate the
Mediterranean International Transhipment Hub declared void. The concession
was signed in October with FS (the Italian railway business), Casic,
Cagliari's port authority, PTM (owned by Sardinia as well as Casic) and the
hub itself. Contship Italia reportedly challenged the deal relating to the
purchase of eight cranes and other equipment and the system under which the
concession price was based on traffic volume.

Cotonou update

Maersk Line has begun port operations at Cotonou, Benin, through its
Coman S.A. It has spent U.S.$4 million on a
17,000-square-meter/20,400-square-yard terminal with 400 square meters/480
square yards of office space. Meanwhile, dredging will begin this month to
remove 20,000 square meters/24,000 square yards of spoils. The West African
Development Bank will fund the six-week project, which will reportedly be
handled by Boskalis.

Miami to refurbish passenger terminals

Miami-Dade County has given permission to the Port of Miami to expand
three passenger terminals. Terminals 3, 4 and 5 were built in the late
1960s and will be expanded in a U.S.$60 million project to handle 3,500
passengers each.

Three men charged in thefts from the Port of Miami

Three men were charged 3 June in a 10-count U.S. government indictment
with stealing U.S.$1.3 million from the Port of Miami to spend on personal
products and services. They were also charged with using the stolen money
to donate U.S.$196,824 to the Democratic National Committee in March 1994.
Carmen Lunetta, a former director of the port, and Calvin Grigsby, owner of
Fiscal Operations Inc., which operated the port's gantry cranes from 1982
until earlier this year, were charged with conspiracy, embezzlement and
money laundering. Lunetta resigned in May 1997 after 38 years as head of
the port and according to the indictment, had sole control of the budget
for Fiscal Operations. Neal Harrington, part owner and director of
Continental Stevedoring and Terminals Inc., was charged with embezzlement
and theft. Continental Stevedoring and Terminals leased cranes from Fiscal
Operations. Lunetta, who was charged with nine counts, surrendered with
Harrington and pleaded not guilty at an arraignment hearing. He was
released on U.S.$500,000 bond while Harrington was released on U.S.$150,000
bond. According to the indictment, money diverted from the port through
Lunetta was held by Fiscal Operations. The political contribution came from
Harrington at Lunetta's request, the indictment alleges, and Continental
Stevedoring and Terminals was reimbursed through credits on crane leases.
Checks were written in U.S.$15,000 increments to meet legal limits but
Miami-Dade County Mayor Alex Panelas asked the party last month to return
the money. Grigsby, president of municipal bond underwriter Grigsby &
Associates, will surrender 8 June. He was indicted in January on charges of
bribing a local commissioner and was freed on U.S.$1 million bond. The
indictment also alleges that a local commissioner received a U.S.$85,000
loan from port funds.

Xiamen Bay work to start next month

Xiamen in China's Fujian province will start work next month to enable
it to handle 3,000-TEU containerships by September. In the first phase, a
channel more than 40 kilometers/25 miles long, 250 meters/820 feet wide and
12 meters/39 deep will be created in Xiamen Bay. Ships of up to
100,000-tons will be able to reach Xiamen. After a second phase of work,
4,000-TEU containerships will be allowed.

Tianjin to get new berths

Tianjin, China, will get eight new berths in the New Coastal Area
adjacent to the port, it has been announced.

New Charleston freight station

The International Longshoremen's Association and the Port of
Charleston, S.C., have negotiated a labor contract for a new container
freight station. A program of the association and the Carriers' Container
Council will provide a subsidy. The station will begin operations under
Stevedoring Services of America this month.

Hong Kong commissions new study

The Hong Kong Port Development Board signed a contract 29 May for a
study of reserve facilities and land requirements. The Hong Kong$4.25
million/U.S.$549,000 agreement was signed with GHK (Hong Kong). In
particular, the study will look at needs for container berths, back-up
empty container and trailer storage space and back-up repair facilities.
The study will be done by January.

Waterford to become state port

The Port of Waterford, Ireland, will become the country's ninth state
port firm. The Belview Terminal has been opened and the Irish government
has agreed to a financial package in which 6 million Irish punts/U.S.$8.6
million will be repaid to the European Investment Bank for borrowings
during construction. The government guaranteed the payments. A steering
group has been formed to make the port a state company by 1 Jan. A
five-year plan has been formed.

New coal terminal planned in the Philippines

Philippine National Oil Co-operative - Coal Corp. will build a new
coal terminal at Cagayan de Oro, the Philippines.

McLaren/Hart gets contract for clean-up at Redwood City site

McLaren/Hart Inc. has received a U.S.$6.6 million contract to finalize
closure and oversee the clean-up of the Liquid Bulk Terminal at the Port of
Redwood City, Calif. It is the single largest contract the port has
awarded. About 34 million liters/nine million gallons of wastewater, oil
and other liquids are stored in nine above-ground tanks at the terminal,
which was abandoned by Gibson Environmental Inc. in 1995. As part of
cleaning the 3.6 hectares/nine aces, water will be treated for discharge
while all other items will be removed for disposal. One tank will be
dismantled. When the work is done in 12 to 18 months, the land will be
redeveloped.

PSA signs contract for guided-vehicle navigation system

Singapore's PSA Corp. signed an agreement with CET Technologies and
DSO National Laboratories on 30 May for the development of an automated
guided vehicle navigation system. The system will be used first at the
Pasir Panjang Terminal. The navigation system will guide driverless trucks
as they move containers around the terminal. CET Technologies will supply
components and integrate the system based on design and development of DSO
National Laboratories.

New cranes in operation at Gothenburg

Two new post-Panamax container cranes are now operating at the Port of
Gothenburg, Sweden. The cranes were built by Noell at Abu Dhabi, the United
Arab Emirates, for about U.S.$10 million and are meant to service K-class
and S-class containerships of Maersk Line. The cranes can reach across 18
rows while the ships involved have 17 rows. The old cranes could only reach
14 rows. Along with the cranes, dredging and quay reinforcement was done
and four new straddle carriers were bought.

Anacortes finalizes wharf deal

The Port of Anacortes, Wash., will take over the Curtis Wharf by the
end of the month. It is paying Bill Wooding U.S.$8.5 million and will
develop the 200-meter/660-foot wharf. To help pay for the wharf, the port
has signed a 15-year contract to load petroleum coke at a local refinery of
Texaco Inc. for U.S.$30 million.

Conoco to offer fuel at Portland

Conoco Inc. will start a new bunkering service at Portland, England,
on 15 June.

Painting of Thames River Barrier starts

Work to repaint the Barrier "F" Span of England's Thames Barrier,
which was hit by the Sand Kite (British-registry 3,110-gt, 4,225-dwt
trailing suction dredger built in 1974, owned and operated by South Coast
Shipping Co. Ltd.) at 0650 27 Oct., has begun for 120,000 British
pounds/U.S.$196,000. Repairs to the gate have cost 2 million
pounds/U.S.$3.3 million. The Sand Kite hit Pier 5 in fog and sank bow first
in 5.8 meters/19 feet of water while inbound with 5,000 tons of aggregates.

Panama Canal update

As of 1 June, the draft restriction in the Panama Canal was changed to
11.43 meters/37.5 feet except for bulk carriers and tankers without deck
cargo, which may be allowed to transit at 11.58 meters/38.00 feet on a
case-by-case basis.

At 0001 3 June, the canal placed Condition 2 in effect, having
accepted reservations under the condition as of 0001 1 June. It will
implement Condition 1 at 0001 6 June. Applications for reserved transits
under the condition started 0900 4 June.

Public meetings scheduled for changes to navigation in Monterey Bay

Several public meetings have been scheduled to gather comments on
options of vessel traffic management in California's Monterey Bay National
Marine Sanctuary. The U.S. Coast Guard and the U.S. National Oceanic and
Atmospheric Administration will outline proposed measures intended to
increase protection of the area, which was formed in 1992. The options
include response vessels, a radio reporting system and some changes to
existing traffic separation schemes. Among the proposals are: tankers are
to remain 93 kilometers/58 miles offshore; tank barges will remain 46
kilometers/29 mles offshore; large commercial vessels will remain 22
kilometers/14 miles to 37 kilometers/23 miles offshore; vessels with
hazardous material will remain 46 kilometers/29 miles offshore; the San
Francisco and Santa Barbara Channel traffic seperation plans will be
altered; radio reporting will be put in place; and response vessels
identified. The meetings will take place at 1900 as follows: 17 June at Ted
Adcock Community Senior Center, 535 Kelly Avenue, Half Moon Bay; 18 June,
Port of Oakland, 2nd Floor Board Room, 530 Water Street, Oakland; 29 June,
Coconut Grove, Bay View Room, 400 Beach Street, Santa Cruz; and 30 June,
Doubletree Hotel, DeAnza Ballroom, Monterey.

Kiel Canal in 1997

Germany's Wasser-und Schiffahrtsdirektion Nord has reported that
36,945 vessels used the country's Kiel Canal last year, down from 37,055 in
1996. In all, the canal handled 49.3 million tons of cargo, up 2.8 percent,
while vessel size increased 26.4 percent to 86.6 million gross tons. Some
17.8 million tons or 42 percent of cargo was general, up 5.3 percent.
Petroleum increased 27.3 percent to 4.2 million tons while timber fell 12.1
percent to 3.3 million tons. A total of 18,538 vessels moved from west to
east with 18,407 in the other direction. Transit traffic totaled 24,819
vessels. Westbound traffic accounted for 30.8 million tons or 62.6 percent
of all cargo. Transit traffic totaled 24,819 vessels with 42.4 million tons
of cargo, up 3.4 percent. Cargo moving between canal ports dropped 0.8
percent to 6.82 million tons and vessel transits fell 1.3 percent to
12,126. Last year, 14.9 million tons of cargo were headed to or from a
Finnish port, up from 14.3 million tons. Swedish cargo dropped from 7.3
million to 7.15 million tons while Russia was up 7.3 percent to 3.07
million tons and Denmark and Poland both increased 6.8 percent to 5.02
million tons.

Shanghai to grant preferred status

The Port of Shanghai, China, will reportedly designate 25 Chinese
vessels for preferred clearance and tariffs.

SHIPYARDS AND EQUIPMENT

Newport News Shipbuilding adopts new shareholder rights plan

Newport News Shipbuilding Inc. said 4 June that its board of directors
approved a shareholder rights plan to replace the existing plan that
expires 10 June. To implement the plan, one preferred stock right will be
issued for each outstanding share of common stock. The 10-year rights can
be exercised only in certain circumstances, such as the purchase of more
than 15 percent of outstanding common stock by a single entity.

Kvaerner Fjellstrand using Friction Stir welding, new jigs

Kvaerner Fjellstrand A/S reportedly has built a 60-meter/197-foot
passenger and vehicle catamaran ferry from aluminum with 20 percent fewer
hours than required previously. About 65 percent of the total time needed
to build aluminum ferries is involved in working with the metal, according
to the company. The shipyard is using Friction Stir welding and new rotary
jigs for the work. In a Friction Stir weld, a rotating tool is heated by
friction and produces a shaft of metal around the welding point, a pin. As
the pin moves, the leading face forces the heated metal to the back while
pressure completes the weld. The weld itself is a smooth surface. More than
25 percent of the aluminum used in Kvaerner Fjellstrand's new ferry uses
the process. Also, the company is building blocks and sections on
completely rotational jigs.

More on Ulstein Verft expansion

Ulstein Verft A/S will spend 250 million Norwegian kroner/U.S.$33.6
million on improvements to its shipyard. The dry dock will be partly
covered to form a building hall and it will be expanded from 190 meters/623
feet by 23 meters/75 feet to 226 meters/741 feet by 36 meters/118 feet. A
gate will be added to divide the dock as well. The new building hall will
be 140 meters/459 feet long, 53.5 meters/176 feet wide and 41 meters/135
feet tall. An outfitting hall will also be built, measuring 55 meters/180
feet by 47.5 meters/156 feet by 37 meters/121 feet.

Hong Kong dry dock changes owners

Hongkong United Dockyards Ltd. has sold its 20,000-ton capacity
floating dry dock Whampoa to Yiu Lian Dockyards Ltd.

Tyne Tees Dockyard gets conversion contract

Tyne Tees Dockyard Ltd. in England has won a contract to convert a
fishing vessel into a seismic survey ship for Horizon Exploration Ltd. The
four months of work on the Atlantic Horizon includes 500 tons of new steel,
new main engines, generators and thrusters and refurbishment of the
accomodations area. The shipyard, which has 400 employees, will also
install the seismic equipment.

Balder to be upgraded

Heerema will upgrade its Balder semi-submersible crane ship, built in
1978, after being awarded a contract from Amoco Corp. for work on its
Kingspeak project in the Gulf of Mexico. The project will include a
spar-type structure and 200 kilometers/124 miles of pipeline. The upgrade
work to the ship will take place at Verolme Botlek B.V. in Rotterdam, the
Netherlands, early next year, after it completes work for Amoco instaling
the Marlin tension leg platform and for Royal Dutch/Shell Group of Cos.,
working on the Ursa TLP. A dual redundancy dynamic positioning system with
six azimuthing thrusters for 450 tons of pull will be added. A modular
J-lay pipeplay system will be able to install 76-centimeter/30-inch pipe up
to 3,050 meters/10,000 feet deep with six joints at a time. Some 8,000 tons
of 73.2-meter/240-foot joint will be carried.

New Mexican Navy vessel unveiled

The Mexican Navy introduced the first of a new vessel class under a
program known as Holzinger 2000 on 1 June, Mexican Navy Day. The 907-ton
vessel is 75 meters/246 feet long, has a crew of 61 and can sail at 22
knots. The vessel has a helicopter deck. More than 20 more vessels are
planned by Marine One Shipyard at Tampico, Mexico.

English shipyard to refit the Sea King

Penzance Drydock & Engineering Co. in England will refit the 724-dwt
supply and rescue vessel Sea King, built in 1965, after two years of
lay-up. The vessel is now owned by Seaquest Explorers (Africa) Ltd., which
will charter it for research.

Aries delivered to Tirrenia

Aries, the first of the MDV3000 Jupiter-class vessels, which are the
largest monohull fast ferries in the world, was delivered to Tirrenia on 29
May and will start service 15 June between the Italian ports of
Civitavecchia and Olbia on Sardinia. The route will take 3.5 hours. It was
built by Fincantieri Cantieri Navali Italiani SpA at its facilities in
Muggiano and Riva Trigosa, Italy, and cost 100 billion Italian
lire/U.S.$57.6 million. The Aries operated at 45 knots with 1,200
deadweight tons on trials and is built of high-tensile steel with an
aluminum alloy superstructure. Only 43 knots will be permitted. Dimensions
include 145.6 meters/477.7 feet long, a 22-meter/72-foot beam and a depth
of 12.6 meters/41.3 feet. Propulsion of 70,000 kilowatts/95,000 brake
horsepower is provided by four 20-cylinder MTU 1163 TB73 L diesel engines
of 6,500 kilowatts/8,800 brake horsepower each and two General Electric LM
2500 gas turbines of 22,000 kilowatts/30,000 brake horsepower each. The
turbines power two KaMeWa booster waterjets and the engines control KaMeWa
steering waterjets, which are the largest yet built. The Aries can carry
1,800 passengers and 460 cars and 30 trucks. There is a crew of 24 and the
design has seven decks.

EVENTS, INCIDENTS AND OPERATIONS

Egyptian military forcibly stops ship fleeing arrest

Egyptian government vessels fired four warning shots at the Global Sky
(Cypriot-registry 11,834-gt, 15,839-dwt dry cargo ship built in 1981,
operated by Black Sea Shipping Co.) on 1 June in an effort to stop the
ship, which departed Suez, Egypt, southbound while under arrest. The ship,
carrying rice from India to Ukraine, was later seized by military personnel
lowered from two helicopters about 80 kilometers/50 miles south of Suez. A
Ukrainian crewmember was injured resisting the boarding. A repair company
obtained a court order for the ship's arrest, stating that the Global Sky's
owners owed U.S.$617,000.

Stranded crewmembers begin march to New Zealand's parliament

Crewmembers of five ships stranded in New Zealand began a march to the
country's parliament on 1 June to draw attention to their plight. The 10
people left Lyttelton for Wellington after having spend 10 months without
wages. The group is attempting to gather signatures for a petition along
the way. In all, there are about 50 people, including the marchers,
stranded. The vessels are owned by Karelrybflot and were seized after Abel
Fisheries, which chartered them, was prosecuted for breaching fishing
quotas. Some 50 returned home but the rest refused to leave, despite
deportation threats, until they get their wages.

Revenue Canada makes heroin seizure in Vancouver

Revenue Canada said 29 May that it seized more than 10 kilograms/22
pounds of heroin on 17 April from a container in Vancouver, British
Columbia. The container, loaded with melons from China, was searched after
an X-ray. The heroin was inside condoms sealed with tape and placed in a
duffel bag inside one of the melon boxes. It was the largest heroin seziure
by Revenue Canada this year.

Crewmember lifted from bulk carrier

A crewmember of a bulk carrier in the Gulf of St. Lawrence was
airlifted early 30 May after falling into an open hatch on the ship. A
Canadian Air Command CH-113A Labrador from No. 413 Squadron at Canadian
Forces Base Greenwood, Nova Scotia, flew the crewmember, in stable
condition, to Moncton, New Brunswick.

U.S. Navy crewmembers airlifted off destroyers

A U.S. Coast Guard HH-60J Jayhawk helicopter from Coast Guard Air
Station Cape Cod, Mass., evacuated a crewmember from the U.S. Navy's
Arleigh Burke-class Guided-Missile Destroyer U.S.S. The Sullivans (DDG-68)
on 31 May. The the crewmember was suffering from acute appendicitis, 208
kilometers/130 miles offshore, and was flown to a hospital.

A Coast Guard helicopter from Coast Guard Air Station Elizabeth City,
N.C., airlifted a 38-year-old crewmember of the Arleigh Burke-class
Guided-Missile Destroyer U.S.S. Ramage (DDG 61) early 4 June. The ship
requested assistance at 0450, 48 kilometers/30 miles east of Norfolk, Va.,
when the crewmember suffered chest pains. The helicopter took the
crewmember to Portsmouth Naval Hospital in Portsmouth, Va.

Woman transferred ashore for treatment

The U.S. Coast Guard airlifted a 63-year-old woman on 3 June after she
required medical assistance while aboard the Wilderness Discovery near
Angoon, Alaska, in the Chatham Strait. Ann McMillan was transported to
shore by the Executive Explorer and she was flown by a helicopter from
Coast Guard Air Station Sitka, Alaska, to Sitka and then taken by ambulance
to Sitka Community Hospital.

U.S. Coast Guard finally stops fishing vessel, boards second

The 45.7-meter/150-foot Chinese-registry fishing vessel Tai Sheng was
boarded by crewmembers of the U.S. Coast Guard's Hamilton-class
High-Endurance Cutter U.S.C.G.C. Boutwell (WHEC 719) at 1315 1 June after
it finally stopped in the Pacific Ocean, 2,160 kilometers/1,350 miles
southwest of Attu, Alaska. The vessel was spotted 27 May using more than 14
kilometers/nine miles of drift nets in international waters about 640
kilometers/400 miles southwest of Attu. The U.S.C.G.C. Boutwell intercepted
the Tai Sheng and a Chinese government representative aboard order the Tai
Sheng to stop. The master of the vessel, however, said he could not do so
without permission from the owner, which Nanao Yeng Tai Fishing Co. later
granted. The Tai Sheng, however, continued sailing. During a boarding the
drift nets were not found, but nets with a mesh size frequently used in
driftneting were located behind the pilothouse as well as well-worn net
spreaders covered in fish gills.

The Coast Guard at 1620 2 June boarded a Chinese-registry fishing
vessel suspected of illegally using drift nets in the northern Pacific
Ocean. The Hamilton-class High-Endurance Cutter U.S.C.G.C. Jarvis (WHEC
725) stopped the 45.7-meter/150-foot Shan Yu 16 about 1,120 kilometers/700
miles northeast of Tokyo. It has a crew of 30 and was taken in custody at
1700.

The U.S.C.G.C. Jarvis is escorting the two vessels to Shanghai, China,
where the Chinese government will take custody.

Master fined for not using pilot

The master of a bulk carrier has been fined
Australian$5,000/U.S.$3,000 for operating off northeastern Australia
without a licensed pilot.

Fishing vessel brings up torpedo off Massachusetts

The 27-meter/90-foot fishing vessel Sheila K hauled up a torpedo in
its nets at 0600 28 May, about 149 kilometers/93 miles south of
Narragansett Bay, Mass. The vessel is homeported at Woods Hole, Mass. The
torpedo was removed by a four-member U.S. Navy explosive ordnance disposal
unit from Newport, R.I., and destroyed at sea using charges. The U.S. Coast
Guard's "Point"-class Patrol Boat U.S.C.G.C. Point Francis (WPB 82356) took
the unit to the Sheila K.

Beached whale flown from North Carolina to Florida

A U.S. Coast Guard HC-130H Hercules from Coast Guard Air Station
Elizabeth City, N.C., transported an injured pygmy whale from U.S. Marine
Corps Air Station Cherry Point, N.C., to Tyndall Air Force Base in Panama
City, Fla., on 31 May. The 1.8-meter/six-foot whale had a laceration to its
back and was found beached near Shackleford Banks, N.C., the day before.
North Carolina Fish and Wildlife personnel toook the whale to Duke
University Marine Lab in Beaufort, N.C., where it remained overnight. The
U.S. National Marine Fisheries Service took the whale to Cherry Point where
it was flown to Gulf World for rehabilitation.

Greenpeace member boards oil rig

A member of Greenpeace was chained to the oil rig Ocean Alliance in
protest on 1 June, 230 kilometers/145 miles south of Kristiansund, Norway.
The Panamanian-registry rig, built in 1988, is chartered by Royal
Dutch/Shell Group of Cos.

Saginaw River briefly closed

Michigan's Saginaw River was closed for several hours the afternoon of
31 May after the Enerchem Refiner (Canadian-registry 4,982-gt, 8,290-dwt,
3,630-nt, 119.18-meter/391.01-foot motor tanker built in 1969 by Davie
Shipbuilding Ltd. at Levis, Quebec; operated by Enerchem Transport Inc.)
broke its moorings at the Triple Clean Liquid Fuels Dock in high winds.

Catch of vessel seized off Maine

The U.S. Coast Guard seized the catch of the Tara Lynn II, a
U.S.-registry fishing vessel homeported at Boston on 31 May, 13
kilometers/eight miles east of Portland, Maine. The vessel was spotted by
the Coast Guard's Bear-class Medium Endurance Cutter U.S.C.G.C. Harriet
Lane (WMEC 903) fishing 1.6 kilometers/one mile inside Rolling Closed Area
3. The vessel was escorted to Portland where the U.S.$6,000 in fish was
seized.

Petro Ranger leaves cargo as bond, extradition request made

The Petro Ranger (Malaysian-registry 6,718-gt, 12,357-dwt,
128-meter/420-foot tanker built in 1971, operated by Petroships Pte. Ltd.)
and its crew left Haikou, China, for Singapore the night of 28 May. The
master, Kenneth Blythe, an Australian citizen, returned home by aircraft
and Petroships provided a relief master for the voyage. The ship left
behind its cargo as a bond in case the ship, crew or others involved have
to return for questioning or court proceedings. The Petro Ranger, with a
cargo of 11,165 tons or 77,000 barrels of diesel fuel and kerosene worth
U.S.$1.5 million, left Singapore on 16 April for Ho Chi Minh City, Vietnam.
The cargo is owned by Petec Trading and Investment Corp. and was insured in
the London insurance market. The ship was last heard from at 1200 17 April
while off Tioman Island, Malaysia. Sometime after, the vessel was boarded
at sea by 12 Indonesian citizens. The armed group destroyed the Petro
Ranger's communications equipment and kept most of the crew confined. A
Honduran flag was put in place, the funnel was repainted and the ship's
name was changed. During its time under pirate control in the South China
Sea, the Petro Ranger lightered 4,000 tons of its cargo, divided between
two vessels. On 26 April, the Chinese government found the Petro Ranger
along with a third lighter loaded with 2,000 tons of the cargo, the Jin
Chao. The 12 pirates were arrested and the ship was held at Haikou.
Meanwhile, the Malaysian government has made an extradition request for the
12 being held by China.

VESSEL TRANSFERS

Dampskibsskelskabet Norden buys newbuilding tanker

Dampskibsskelskabet Norden A/S has acquired a 105,000-dwt tanker being
built by Hyundai Heavy Industries Co. Ltd. in South Korea.

V. Ships Marine gets extension of contracts

V. Ships Marine Inc. has received one-year contract extensions to
manage two pure car and truck carriers, the Faust (U.S.-registry 28,050-dwt
ro/ro built in 1985, owned by American Auto Carriers Inc.) and the Fidelio
(U.S.-registry 15,681-dwt ro/ro built in 1987, owned by Fidelio L.P.). The
Faust has been managed by V. Ships Marine or its predecessors since 1989
while the Fidelio has been under contract since 1994.

VESSEL CASUALTIES

About 20 missing in Chinese ferry capsizing

About 20 people are missing after a ferry capsized on the Zhen River
in China's Guangdong province the morning of 4 June. It was meant to carry
10 as it crossed in Chaoguan. About 11 people were rescued and the owner
was arrested.

Three dead, seven missing in separate incidents off Colombia

A wooden vessel sank 29 May off Colombia's Guajira province while
sailing from Arubato to Punto Hallinas with frozen chickens and whiskey.
Four crewmembers are missing while the bodies of three crewmembers were
found mauled by sharks the morning of 3 June. The vessel apparently
broke-up in rough seas.

Two Philippine crewmembers of the Sea Star (Danish-registry 1,433-gt,
2,117-dwt motor dry cargo ship built in 1979, operated by Oerssleffs) are
missing after the ship collided with the Masayoshi Maru No. 8
(Japanese-registry 379-gt fishing vessel built in 1991) and sank the
morning of 3 June in the Carribean Sea off Colombia at 11 degrees 41
minutes north, 74 degrees 53 minutes west. The ship was sailing with 2,000
tons of cement from Barranquilla to Port-au-Prince, Haiti. The master,
Michel Sorensen, and four others were rescued. The fishing vessel had minor
damage and had left Cartagena, Colombia, 3 June.

Russian-registry containership rescues injured yacht crew

The Russian-registry containership Ob rescued the two crewmembers of
the Keep Sake II, a 10-meter/33-foot yacht, early 1 June after it was
damaged by a storm in the Tasman Sea. The yacht was sailing from Hobart,
Australia, to Nelson, New Zealand, when the storm damaged its steering and
injured the two people aboard, Norwegian citizens Karel Fontaine and Kai
Olaussen, who are said to be in their 50s. Weather conditions at the time
of the rescue included eight-meter/26-foot seas and a 20-knot wind.
Fontaine suffered head injuries and Olaussen has several broken ribs. The
Ob was 300 kilometers/185 miles southwest of the Keep Sake II when it
received a distress message and was guided to the yacht by a Royal
Australian Air Force P-3C Orion aircraft from the No. 92 Wing at R.A.A.F.
Edinburgh in New South Wales, Australia. The Ob sailed to Burnie,
Australia, while the U.S.$620,000 yacht was abandoned.

Ship leaks oil off Pakistan

A vessel is reportedly leaking heating oil off Pakistan creating a a
slick with a radius of 64 kilometers/40 miles.

Canmar Endeavour suffers fire

The Canmar Endeavour (Bermudan-registry 32,425-dwt containership built
in 1983, operated by Canada Maritime Services Ltd.) suffered an engine room
fire late 3 June.

L.P.G. carrier heavily damaged in grounding

The Manuel Belgrano (Liberian-registry 6,733-gt, 7,062-dwt motor
liquefied petroleum gas carrier built in 1969, operated by Antares Naviera
S.A.) has run aground at 21 degrees 50.8 minutes north, 72 degrees 28.3
minutes east, north of Mumbai, India. The ship has severe damage including
flooding and fuel loss.

Collision in the Bosporus damages ships

The Bunga Orkid Tiga (Malaysian-registry 25,498-gt, 43,246-dwt bulk
carrier built in 1991, operated by Malaysia International Shipping Corp.
Bhd.) collided with the Kargem (Turkish-registry 2,874-gt, 870-dwt motor
passenger and ro/ro ferry built in 1963, owned by Karden and operated by
Dentek) off Kirecburnu, Turkey, in the Bosporus Strait at 0622 31 May. Both
vessels were damaged and conditions included heavy fog. The Kargem was
carrying 90 passengers and was hit on the port side with major damage to
the forecastle deck and bow doors. The Bunga Orkid Tiga had steel bars and
was sailing from Odessa, Ukraine, to China. It suffered minor damage. No
one was injured.

Four rescued as tug sinks off North Carolina

The tug Kaye C. Green sank 1 June in Albemarle Sound north of Dare
County, N.C. The four crewmembers were rescued by the tug Blackwell. The
sunken tug's owner has contracted Industrial Marine Services to contain any
spilled fuel while Hampton Roads Leasing will attempt salvage. Some 3,040
liters/800 gallons to 3,800 liters/1,000 galons of fuel is aboard.

Fuel lost from damaged vessel in Danube River

The Marianne spilled 40 tons of oil into the Danube River on 30 May
after it hit a submerged rock near Melk, Austria. Two of 14 tanks were
damaged.

Tug catches fire on Mississippi River

On 24 May, the tug Sibley caught fire in Yazoo Harbor near Vicksburg,
Miss., at Mile 437 of the Mississippi River. The tug General helped to
extinguish the fire and the Sibley was pushed onto a bank. All hazardous
material, including 41,800 liters/11,000 gallons of diesel fuel, was
removed.

Backing bulk carrier damages bar in Cleveland

The J.A.W. Iglehart (9,460-gt, 12,589-dwt, 6,028-nt,
152.8-meter/501.5-foot steam bulk carrier built in 1936 by Sun Shipbuilding
& Dry Dock Co. at Chester, Penn.; operated by Inland Lakes Management Inc.)
damaged Sunset Joe's, a bar in Cleveland, at 1614 2 June with its stern as
it was aided by a tug of Great Lakes Towing Co. to the Huron Cement Dock.
The ship was carrying cement from Bath, Ontario, and was docking in a
storm. It suffered superficial damage but the bar was heavily damaged.

Containership enters shipyard for repairs after grounding

The Odin (Antigua and Barbuda-registry 2,997-gt, 4,530-dwt motor
containership built in 1994, operated by Claus Speck) grounded 28 May near
Oxelosund, Sweden, after sailing from Vesteras. It was refloated by tugs
the same day and taken to Bremerhaven, Germany, where it entered a shipyard
3 June.

Containership grounds in New York

The Nedlloyd Dejima (Dutch-registry 46,989-dwt containership built in
1973, operated by P&O Nedlloyd Container Line Ltd.) ran aground at 0600 28
May while making a port turn from New York's harbor into the Kill van Kull
Waterway. During the turn, the ship sailed to starboard and grounded
outside the channel. The ship was refloated from soft bottom by tugs at
1015 and sailed to Universal Maritime Service in Port Newark, N.J.

Report released on 1996 allision of Julie N in Maine

The U.S. National Transportation Safety Board report into the allision
of the Julie N (Liberian-registry 29,994-dwt, 170-meter/560-foot tanker
built in 1982, owned by Maritime Overseas Corp. and operated by North
American Ship Agencies Inc.) was likely caused because the pilot
inadvertently ordered the ship to port instead of staboard. The Julie N
allided with the south bascule pier of the Million Dollar Bridge on Maine's
Fore River between Portland and South Portland at 1105 27 Sept., 1996. The
ship carried 210,000 barrels of No. 2 distillate fuel loaded at Amuay,
Venezuela, and was sailing to the Rolling Mills Terminal in Portland. The
ship was chartered by Global Petroleum Corp. More than 4,000 barrels
(170,000 gallons/640,000 liters), including 2,100 barrels of cargo and
1,900 barrels of bunker fuel, spilled into the harbor from an
18-meter/60-foot gash along the port bow that ruptured two cargo tanks.
Clean-up cost U.S.$43 million. The report also concluded that the
horizontal clearance of the bridge span, which allowed for 1.5 meters/five
feet on each side of the ship, was a contributing factor. The pilot issued
three orders for port rudder and then intended to order the rudder hard to
starboard and increase speed from slow to half ahead to halt to align the
ship. However, hard to port was ordered and though hard to starboard was
ordered shortly after, the narrow passage did not allow for much course
correction. The Julie N had U.S.$660,000 in damage. On the bridge, a pier
corner was not adequately covered by timber fendering, according to the
report. Repairs to the bridge totaled U.S.$232,000. Among its
recommendations, the board said that establishing aids to navigation would
help in the area ahead of the allision while operational guidance should be
published in a readily-available publication. The U.S. Coast Guard should
make a program applicable across the organization to insure that testing
after an accident is effective while personnel who test crewmembers for
alcohol should be more fully integrated into the investigation. In
addition, the report recommended that vessels establish plans for testing
after accidents to make sure that the crew is aware of testing
requirements, while the Coast Guard could establish regulations on key
points. To eliminate possible confusion, the report also proposed merging
46 CFR 4.06, Mandatory Chemical Tetsing Following Serious Marine Incidents
Involving Vessels in Commercial Service, with 33 CFR 95, Operating a Vessel
While Impaired (Intoxicated). The board said that a merger would remove
confusion caused by the separate regulations. A group that would evaluate
problems with testing could also help by making changes to testing
procedures. Finally, the report recommended that the U.S. Federal Highway
Administration request that states evaluate bridge fendering systems and
that Maine nominate a representative to the Portland Port Safety Forum.

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

High-speed ferry to make run for Hales Trophy

The Catalonia, a high-speed ferry, is planning to sailing from New
York to Tarifa, Spain, in an effort to secure the Hales Trophy. The
5,000-kilometer/3,125-mile voyage will be covered at up to 45 knots. The
current record was set eight years ago by a hovercraft of Hoverspeed Ltd.,
which sailed at 36.65 knots. The U.S.$45 million Catalonia is 91
meters/299-foot aluminum vessel powered by waterjets driven by four
Caterpillar diesel engines. It was built by INCAT Australia for Buquebus
International Ltd. and arrived in New York 4 June. About 24 crewmembers
will attempt the voyage and once in Spain, the Catalonia will enter service
between Barcelona and Palma de Mallorca, carrying 900 passengers and 250
vehicles. The Hales Trophy was established in 1935 by Harold Hales to
encourage passenger shipping development.

Calypso to become a museum

The Calypso, the vessel that carried Jacques Cousteau and his crew on
expeditions around the world, was loaded onto a barge in Marseille, France,
on 28 May and was taken to La Rochelle, France, where it will become a
museum. The Calypso sank at Singapore in January 1996 and it is being
donated to the La Rochelle Maritime Musem as part of a U.S.$830,000
project. The 41.8-meter/137-foot vessel was built in Seattle in 1942 as a
U.S. Navy minesweeper and was later transferred to the United Kingdom,
which sent it to Malta as the Calypso. Cousteau acquired it in 1954. He was
overseeing construction of a replacement when he died 25 June at age 87.

Prince Andrew christens the Shtandart

On his first visit to Russia on 30 May, Prince Andrew, the United
Kingdom's Duke of York, christened a 200-ton replica of the first ship
built by Russia's Peter the Great. The 30-meter/100-foot Shtandart has been
building since 1994.

Harry W. Hill decommissioned

The U.S. Navy's Spruance-class Destroyer Harry W. Hill (DD 986) was
decommissioned at U.S. Naval Station San Diego on 29 May. DD 986 is named
for a U.S. Navy admiral who served in the Pacific Ocean during World War
II. The ship was authorized fiscal year 1975, laid down 1 April, 1977,
launched by Ingalls Shipbuilding Inc. in Pascagoula, Miss., on 10 Aug.,
1978, and was commissioned 10 Nov., 1979.
---------------------------------------------------------------------------

World Maritime News is distributed via the Internet every Friday. Due to
its distribution beyond the original format both in style and medium, it is
preferred that it be left intact or that "World Maritime News" and/or
"Steve Schultz (ssch...@execpc.com)" be attached with excerpts, especially
those excerpts in which structure and tone are unchanged. Although every
effort has been made to verify the accuracy of the information presented, I
do not assume any liability arising from its use.

This issue edited from information distributed by: Anchorage (Alaska) Daily
News; El Diario (Chile); Fairplay Publications Ltd.; Gazeta Mercantil
(Brazil); Great Lakes Vessel Passage and Rex Cassidy, Al Hart and Lon
Morgan; Hong Kong Shipping Gazette; LLP Ltd. including BunkerNews Daily,
Lloyd's List and Lloyd's List Africa Weekly; M.E.B.A. Telex Times; media
releases; news services including Agence France-Presse, Bloomberg, Bridge
News, Business Wire, Canadian Press, Comtex, Nikkei English News/Nihon
Keizai Shimbun, Notimex, PR Newswire, Reuters, South American Business
Intelligence, The Associated Press, U.S. Naval Wire Service "A" and
Xinhua/New China News Agency; Singapore Press Holdings Ltd. including
Singapore Shipping Times; The Journal of Commerce; The Wall Street Journal;
and the U.S. Coast Guard.

Special thanks this issue to Geoff. Watson.

Questions, comments or problems? Want to submit information for inclusion
in the World Maritime News? Please send a message to (ssch...@execpc.com).
--
Steve Schultz - ssch...@execpc.com

"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

0 new messages