World Maritime News - 9 Jan., 1998

[Steve Schultz]

World Maritime News - 9 Jan., 1998
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BUSINESS

Egypt liberalizes shipping industry

The Egyptian Parliament on 5 Jan. passed a law allowing any firms,
foreign or domestic, to compete with state-owned shipping companies for the
first time in 35 years. Companies, however, must meet certain criteria that
will be defined later to operate in Egypt's maritime industry. The new law
changes Law No. 12, passed in 1964. Clause six had mandated that all
cargoes must be handled by Martrans and clause seven restricted private
sector shipping. Ports will remain under state control for now.

Italy may open second register

An Italian government decree has opened the way for a second register
for international vessels.

Bangladesh to form shipping policy

Bangladesh has taken a first step towards a unified shipping policy by
forming a high-level governmental committee.

Frontline ends offer for ICB Shipping, stock exchange

Frontline Ltd. ended its 3.22 billion Swedish kronor/U.S.$402 million
offer to buy ICB Shipping A.B. on 8 Jan. Frontline made the offer 1 Sept.
but was rejected by ICB Shipping's board. Frontline plans to keep the 51.7
percent capital stake and 31.4 percent voting stake it has acquired in ICB
Shipping. Also, Frontline has cancelled a plan to reduce its share capital
in Frontline A.B. and issue new shares at the same value for Frontline Ltd.

Heidenreich Marine, Pleiades Shipping Agents join in venture

Heidenreich Marine Inc. and Pleiades Shipping Agents S.A. are forming
a Panamax tanker pool and will combine their U.S. personnel.
Heidmar-Pleiades Pool will have about 20 tankers that will likely operate
in the "dirty" trade between the Americas and could have 20 percent of the
market. The pool will be commercially operated by Heidenreich Marine
through its U.S. office in Greenwich, Conn. As a result, Pleiades Shipping
Agents own U.S. chartering affiliate, Alma Maritime, will close and its
personnel will relocated to Greenwich. Technical management, crew matters
and other management will remain with the separate companies. The pool will
also likely receive new tankers on order by the two companies. Pleiades
Shipping Agents ordered two 61,000-dwt tankers from Dalian New Shipyard
last year for delivery in 2000. There are options for two more. Heidenreich
Marine is said to have six ships on order including options in South Korea.

Kirby sells tankers, harbor operations to August Trading, Hvide Marine

Kirby Corp. said 6 Jan. it has signed a letter of intent to sell its
product tanker operation and its harbor services operation to August
Trading Inc. and Hvide Marine Inc. Kirby said it intends to concentrate on
inland tank barge operations. Hvide Marine will get Kirby's harbor services
operation of seven tugs, two U.S.-registry tankers (the 36,600-dwt
Willamette built in 1969 and the 32,200-dwt Concho built in 1945) and a
topside repair facility in Port Arthur, Texas, for U.S.$31.4 million in
cash. Four tugs are in Port Arthur, two are in Lake Charles, La., at one is
used as a support vessel for both sites. The two tankers carry petroleum
products from Louisiana and Texas to Florida with Sabine Transportation Co.
and the topside repair facility will be used as a support facility for
maintenance and repair of the fleet of Seabulk Offshore Ltd., a unit of
Hvide Marine. August Trading will receive five tankers for U.S.$7.2
million. The deals will likely close in March. Kirby will recognize a
non-recurring after tax loss of an estimated U.S.$2 million to U.S.$4
million, which will be noted as part of discontinued operations for its
year end 1997 financial results. Revenues for the tanker and harbor
services operations for the first nine months of 1997 and for the 1996 year
were U.S.$49.5 million and U.S.$67.0 million, respectively. Hvide Marine
expects to generate an additional U.S.$24 million annually as a result of
the purchase.

Marti Shipping & Trading makes offer to unsecured creditors

Marti Shipping & Trading has offered its unsecured creditors 10
percent of the money they are owed and a share of future profits. The offer
has been made in an effort to keep the company operating given its
financial problems.

Singapore joins Oil Pollution Compensation Fund

Singapore on 31 Dec. signed the 1992 Protocol to the International
Convention on the Establishment of an International Fund for Compensation
of Oil Pollution Damage of 1971. It will formally become a party to the
agreement a year from that date. The maximum limit for compensation will
then be raised to 200 million Special Drawing Rights, or about
Singaporean$436 million/U.S.$244 million. Singapore never signed the 1971
agreement, but is a member of the Convention on Civil Liability for Oil
Pollution Damage of 1969 and its 1992 protocol, and as a result, its
current damage limit is S$145 million/U.S.$81 million. The protocol was
only signed in September and when it takes effect, the limit will raise to
S$233 million/U.S.$130 million. Under the new protocol signed 31 Dec.,
Singaporean firms dealing with more than 150,000 tons of oil in the
previous year will make a regular contribution to the fund on a per ton
basis.

Carnival to offer more debt, stock

Carnival Corp. has filed a shelf registration with the U.S. Securities
and Exchange Commission to sell up to U.S.$730 million in debt securities
and Class A common stock. Along with a previous registration, Carnival will
then have U.S.$1 billion in debt and stock for sale.

Navigators forming London unit

Navigators is setting up a branch in London, Navigators Insurance Co.,
as a marine insurance firm with Institute of London Underwriters approval.

Halim Mazmin to issue stock

Halim Mazmin Bhd. will issue 40 million Malaysian ringgit/U.S.$8.5
million in stock with 28.7 million ringgit/U.S.$6.13 million to repay a
bridging loan with the rest for working capital. The rights issue is
scheduled to be completed by the fourth quarter but needs approval from
shareholders, Malaysian government regulators and the Kuala Lumpur Stock
Exchange.

Knutsen Line Management renamed after completing restructuring

Knutsen Line Management Pty. Ltd. has completed a restructuring
program and has officially changed its name to Bakke Shipping Pty. Ltd. The
restructuring involved moving from management operations to a full shipping
company. Bakke Shipping operates a weekly service between Western Australia
and Hong Kong with a transit time to Fremantle of 13 days.

Transocean Offshore ending turnkey drilling

Transocean Offshore will end its turnkey drilling operations in the
Gulf of Mexico due to unsatisfactory financial performance.

CaroTrans International to work with Ziegler Group

CaroTrans International, a unit of Clipper Group, has formed an
alliance with Ziegler Group in Europe. Ziegler Group companies will
represent CaroTrans International throughout northern and eastern Africa,
Europe, Scandinavia, and the Mediterranean. Antwerp, Belgium, and
Rotterdam, the Netherlands, will be the primary hubs for import, export and
consolidation in Europe. In Antwerp, CaroTrans International will work with
Carga N.V., Ziegler Group's Belgian non-vessel operating common carrier. In
Rotterdam, the two firms will consolidate their operations.

Norway approves plan beneficial to leasing F.P.U.s

Norway has approved a new petroleum tax plan which encourages the
leasing of floating production units rather than full ownership.

Guam asks for payment from Matson Navigation, Sea-Land Service

Guam has asked the U.S. Federal Maritime Commission to order Matson
Navigation Co. and Sea-Land Service Inc. to pay between U.S.$50 million and
U.S.$100 million earned by the two firms as "excessive profits" providing
transport to Guam.

Rama Shipping to pay for damage to reef

Rama Shipping will pay U.S.$1.25 million for natural resources as
compensation for damage caused by the Fortuna Reefer (Panamanian-registry
3,971-dwt refrigerated ship built in 1980, operated by Alphamax Corp.) when
it hit a coral reef.

Bureau Veritas, U.S. Coast Guard sign agreement for cruise ships

Bureau Veritas has signed a co-operation agreement with the U.S. Coast
Guard that is meant to resolve problems of new foreign-registry passenger
ships before they reach the United States. Bureau Veritas classes 10
percent of new cruise ship buildings and has 14 percent of the world's
fleet.

Eidsiva Rederi names new line

Eidsiva Rederi has chosen the name Easy Line for its new ferry service
between Puttgarden and Rudy Havn.

I.T.W.F. blacklists Sherimar Management over Blue Breeze incident

Sherimar Management Co. Ltd. has denied allegations that it made death
threats against the crewmembers of the Blue Breeze (Panamanian-registry
16,549-dwt bulk carrier built in 1975, operated by Sherimar Management).
The ship, recently released from detention in Lagos, Nigeria, was sailing
to Gibraltar last month in ballast under the command of Ian Wilkinson, a
British citizen. Wilkinson was hired by Marine Risk Management for the Bank
of Scotland, which wanted to arrest the Blue Breeze in Gibraltar. Marine
Risk Management has said that Roy Khouri, managing director of Sherimar
Management, threatened the crew if they did not take the ship to Syria.
Khouri has denied this and said Wilkinson was taken aboard as a passenger.
Whether true or not, the crew of 23 mutinied and Wilkinson was released 23
Dec. to a Cypriot police vessel, 32 kilometers/20 miles south of Cyprus.
Reportedly, the Blue Breeze then sailed to Latakia, Syria, where the
mortgagees asked the Syrian government to intervene. In the meantime, the
International Transport Workers' Federation has effectively blacklisted
Sherimar Management.

More on Varun Shipping's training institute

Varun Shipping Co. Ltd. has signed an agreement with Miami Cruise
Academy to form a training institute in Mumbai, India. The facility will
train food and hospitality staff for cruise lines. The Varun Institute will
also offer courses in the International Ship Management Code, which will be
a prerequisite for joining a cruise ship.

New Italian agent for Costa Crociere

Costa Crociere SpA has named Cambiaso & Risso as its Italian agent.

New Gulf & Atlantic Maritime Services office in Norfolk

Gulf & Atlantic Maritime Services Inc. has moved its Norfolk, Va.,
office to 127 Bank St., Norfolk, 23510. The telephone is 757-533-5687 and
facsimile is 757-625-6078.

Mercosur's privately-owned fleet passes state fleets

For the first time, privately-owned fleets based in Mercosur countries
account for more tons than the fleets of the group's governments.

Israeli shipping in 1996

Israel's total waterborne trade in 1996 dropped after years of double
digit growth, according to a study by the University of Haifa's Wydra
Institute of Shipping and Aviation Research. Trade through the Israeli
Ports and Railways Authority totalled 27.6 million tons excluding oil, down
1.6 million tons, or 5.4 percent from 1995. With oil products included, the
total was 29.4 million tons, compared with 31.2 million the year before.
Imports were down 7.6 percent to 18.2 million tons but exports only fell
0.8 percent to 9.4 million tons. All bulk cargo declined except for
liquids. Grain imports were down 7.6 percent and other dry bulk decreased
9.5 percent. Imported metals were down 300,000 tons to 1.53 million while
gross container and trailer cargo imports were up 6.7 percent to 5.7
million tons from 5.3 million in 1995. Exports of phosphates and potash
fell 2.9 percent to 4.1 million tons from 4.3 million tons and citrus
exports were 276,000 tons, a 7.7 percent decline. Utilized cargoes fell 0.4
percent, from four million to 3.98 million. Containerized cargo in the
total general cargo, excluding citrus, metals and wood, rose to 80.9
percent. Containers amounted to 75.4 percent of import general cargo, up
from 69.5 percent in 1995. Exports fell from 92.1 percent to 91 percent.

On 1 Jan., 1997, the Israeli owned and controlled commercial fleet,
not including coastal and fishing vessels and a coal dust clearing vessel,
totaled 63 ships of 2.6 million deadweight tons and 1.7 million gross tons.
Only 25 of them, some 798,000 deadweight tons and 30.7 percent of the
total, were registered in Israel. Israel's containership fleet at the end
of 1996 stood at 33 ships of 985,000 deadweight tons and 63,112 TEUs. There
were 30 ships of 848,000 deadweight tons and 52,825 TEUs in 1995. There
were only three general cargo ships of 35,000 deadweight tons, down from
nine of 112,000 deadweight tons in 1995. Multipurpose carriers and tankers
were unchanged.

North American Great Lakes stone trade reaches new record

A total of 39,017,818 net tons of gypsum and limestone were shipped on
the North American Great Lakes last year, a new record. The previous record
was 35.1 million net tons in 1996. Shipments from the United States totaled
33.7 million net tons, an increase of 10 percent from the year before,
while Canadian shipments totaled 5.3 million net tons, up 20 percent.

ROUTES AND SERVICES

P&O Nedlloyd Container Line leaving T.W.R.A.

P&O Nedlloyd Container Line Ltd. is leaving the Transpacific Westbound
Rate Agreement and has given the required 60-day notice. The firm said that
the conference was inflexible in allowing individual service contracts, did
not have a wide enough membership and did not add enough value to the
company's business. The agreement now has 10 lines with a 45 percent share
of westbound trans-Pacific liner cargo.

JEFC begins trade share agreement, rate restoration

The Japan-Europe Freight Conference has begun a trade sharing
agreement on its members' service space and it also increasing its rates by
U.S.$75 for per TEU for containers moving from Japan to Europe. The trade
share deal will remain in effect until the end of March and is the first
such agreement introduced by a conference involving in Europe in two years.

SARA changing two documentation fees

The South Asia Rates Agreement has announced it will comply with the
Hong Kong Liner Shipping Association's agreement for a new documentation
fee. As of 15 Jan., the fee will be U.S.$12.90 per bill of lading or
delivery order. In addition, the documentation fee for southern China will
receive a new rate of the same amount.

TACA adjustments

The Trans-Atlantic Conference Agreement will change its eastbound
bunker adjustment factor and interim fuel on 1 Feb. to November levels. The
rate will be U.S.$40 per TEU. There is no westbound factor.

CSAV, Euroatlantic Container Line to offer new route

Compania Sud Americano de Vapores and Euroatlantic Container Line plan
to start a joint service between North America and eastern South America.
Sailings will be offered every eight days to Buenos Aires, Argentina; Rio
de Janeiro, Rio Grande, Santos, Sao Francisco do Sul and Suape, Brazil;
Montuvideo, Uruguay; Puerto Cabello, Venezuela; Baltimore; Charleston,
S.C.; Houston; Miami; New Orleans; New York and Norfolk, Va.

Revised Indian Ocean service for three lines begins this month

CMB N.V., Laurel Navigation and P&O Nedlloyd Container Line Ltd. have
revised their joint service as of this month to provide a higher frequency,
faster transit times and new vessels. The revised calls are: Durban, South
Africa; Nacala, Mozambique; Dar-es-Salaam, Tanzania; Mombasa, Kenya; Jebel
Ali, United Arab Emirates; Karachi, Pakistan; Mumbai, India; Mombasa;
Dar-es-Salaam; Beira or Nacala in Mozambique every other week; and Durban.

C.G.M., Marfret add additional route

Cie. Generale Maritime and Marfret have added a second weekly service.
Their first route calls at Antwerp, Belgium; Le Havre, France; Monitor;
Pointe-a-Pitre, Guadeloupe; and Fort-de-France, Martinique. The new route,
with six ships, calls at Antwerp; Felixstowe, England; Le Havre; Rouen,
France; Pointe-a-Pitre; Fort-de-France; St. Lucia; and Barbados with
continuing service to French Guiana and Brazil.

Transroll Navegacao adds fourth ship

Transroll Navegacao has added a fourth ro/ro on its Sea-Bridge service
in South America.

Maersk Line, Sea-Land Service moving to Felixstowe

Maersk Line and Sea-Land Service Inc. have announced they will switch
their AE-1 service calling at Southampton, England, to Felixstowe, England,
in March. The move involves 85,000 containers per year. AE-1 operates
between Asia and Europe and had used Southampton Container Terminals Ltd.

Harwich to be called on ArgoMann service

The Harwich Navyard Wharf at the Port of Harwich, England, will be
called by a ro/ro of the ArgoMann service on a weekly basis starting early
next year.

Mediterranean Shipping announces certain rate changes

Mediterranean Shipping Co. has announced a general rate increase for
certain routes in line with the Far East Freight Conference's
recommendations. The rates take effect with Voyage 9801-3 of the Norasia
Sharjah (Liberian-registry 41,570-dwt containership built in 1994, operated
by Ganymed Shipping GmbH). Cargo from Chiwan and Hong Kong in China to
Rotterdam, the Netherlands; Antwerp, Belgium; Felixstowe, England; and Le
Havre, France, will be increased by U.S.$35 per TEU. Chiwan to Genoa,
Italy, and Barcelona, Spain, will be increased by the same amount. A new
inland surcharge of U.S.$50 per TEU will be made for cargo moving between
Chiwan, Hong Kong, Bremerhaven and Hamburg in Germany, Valencia, Spain; and
Marseilles, France.

More on New Andex service, New Margarita Express expansion

Compania Sud Americano de Vapores and Nippon Yusen Kaisha's new joint
service, which begins next month, has been named the New Asia-Andes Express
or New Andex. Five 1,600-TEU containerships will call twice a month at
Jakarta, Indonesia; Singapore; Port Klang, Malaysia; Hong Kong; Keelung,
Taiwan; Shanghai, China; Manzanillo, Panama; Buenaventura, Colombia; Callao
and Ilo in Peru; Iquique, Antofagasta and either Valparaiso or San Antonio
in Chile; and Jakarta. Every other ship will call at Jakarta and Port
Klang. Three ships are from CSAV and two are from Nippon Yusen Kaisha.
Also, Nippon Yusen Kaisha's New Margarita Express will be increased from
four 1,150 TEU containerships to five. The service operates twice a month
between Hong Kong; Keelung, Taiwan; Kobe, Nagoya and Yokohama in Japan;
Honolulu; Manzanillo; Puerto Quetzal, Guatemala; Acajutla, El Salvador;
Puerto Caldera; Buenaventura; San Lorenzo, Argentina; Puerto Quetzal,
Salina Cruz, Mexico; Manzanillo; Honolulu; and Hong Kong.

Premier Cruise Lines to call Curacao

Premier Cruise Lines Ltd. has announced it will add Curacao,
Netherlands Antilles, to its schedule.

European ferry routes disrupted by weather

The Lady of Mann (British-registry 770-dwt passenger ferry built in
1976, operated by Isle of Man Steam Packet Co. Ltd.) did not sail on its
regular route from Liverpool, England, to Dublin, Ireland, on 1 Jan. or 3
Jan. due to weather conditions. The King Orry (1,118-dwt passenger ferry
built in 1974, operated by Isle of Man Steam Packet) did not sail between
Douglas, Isle of Man, and Liverpool on 3 Jan. On 4 Jan., it covered the
route twice. Meanwhile, the Lady of Mann made its last sailing between
Dublin and Liverpool on 5 Jan. and on 7 Jan. took over the King Orry's
route, while the latter is laid-up. On 4 Jan., English Channel ferry
services were affected by weather conditions, with Sea-France cancelling
all of its sailings and P&O European Ferries Ltd. cancelling half.

CANALS, PORTS AND STRUCTURES

Eritrea loosens customs, forwarding

The Eritrean government has loosened its control of customs clearance
and forwarding at its ports, allowing Gellatly Hankey & Co. (Red Sea) S.C.
and others to resume its agency operations. In addition, tariffs at Assab
and Massawa are being reduced. Port dues will drop 50 percent, services
will be cut 20 percent and stevedoring and land work on transshipment cargo
will decrease 10 percent. Stevedoring for ro/ro cargo will be cut 30
percent. Firefighting and tug attendance will be reduced from U.S.$11.90 to
U.S.$5 and from U.S.$214 to U.S.$50, respectively. Sixty percent of the
berthing, buoy and conservancy charges will be made for vessels calling for
bunkering, provisions or repair.

More on Suez Canal rates in 1998

The Suez Canal Authority's basic rates this year will remain unchanged
for the fifth year but several discounts are being imposed. First, in
regard to tankers with crude oil, discounts had accumulated over the year
though contracts were made at various times. Under the new system, 12-month
bulk discounts will apply from the date the contract is made. Vessels
carrying natural gas will get rebates of 35 percent on published rates.
Ro/ro shps will now have the same surcharge system as containerships.
Cellular ships are charged per tier of containers rather than by volume.
Ro/ros carrying containers on deck will now be treated as containerships.
Unified rates will apply to transits for floating docks, dredging vessels,
rigs, tugs, warships and yachts. An SDR 7.21 rate will be applied for the
first 5,000 tons, 4.14 for the next 5,000, 3.77 for the next 10,000 and
2.63 for the remaining tonnage.

Italy approves funding for retired dockworkers

The Italian government has passed an emergency decree releasing funds
for the early retirement of 500 dockworkers employed by the state.
Parliament has not yet approved the decree. Private terminal operators at
the ports of Genoa, Naples, Trieste and Venice would otherwise have been
forced to take on additional dockworkers.

Pakhoed buys Transol

Pakhoed, in an effort to expand its European chemical operations, has
acquired Transol.

Two Greek ports take first step towards privatization

Greek Merchant Marine Minister Stavros Soumakis said 8 Jan. that the
Greek ports of Piraeus and Thessaloniki will become "sociiti anonymes" by
28 Feb. They may be privatized later.

Rotterdam terminals to combine

Deka Stuwadoorsbedrijf B.V. and Rotterdam Shortsea Terminal, two
container terminals in Rotterdam, the Netherlands, will be combined into
one terminal. The latter is jointly owned by Deka Stuwadoorsbedrijf and
Europe Combined Terminals and was formed when the two took over the former
Bell Lines Ltd. facility. Europe Combined Terminals will buy a third of
Deka Stuwadoorsbedrijf's shares in the deal.

P&O Australia Ports sells stake in Buenos Aires operator

P&O Australia Ports Pty. Ltd. has sold a 37.5 percent share in
containter terminal operator Terminales Rio de la Plata S.A. to American
International Group and GE Capital's Latin American Infrastructure Fund
L.P. for U.S.$38.8 million in cash. P&O Australia Ports now has 50 percent
of the terminal and a gain on book value was reportedly made. Terminales
Rio de la Plata is the largest container terminal in Buenos Aires,
Argentina, handling 405,000 TEUs last year at Terminals 1 and 2 at Puerto
Nuevo. It has a 25-year concession. The Argentine government must approve
the deal.

Sinport takes control of Vecon

Fiat's Sinport has taken a controlling interest in Vecon S.A., which
operates the container terminal at Venice, Italy. Sinport now has 53
percent of Vecon that was held by the Venice Port Authority. The terminal
reportedly has a capacity of 500,000 TEUs annually but has handled less
than half of that.

Hutchison Whampoa takes further stake in Hong Kong International Terminals

Hutchison Whampoa Ltd. has bought a 5 percent stake in Hong Kong
International Terminals Ltd. from Hongkong & Shanghai Banking Corp. for
Hong Kong$2 billion/U.S.$256 million. The firm operates terminals 4, 6 and
7 at Kwai Chung, accounting for half of Hong Kong's container movements.
Hutchison Whampoa now has 85 percent of Hongkong International Terminals.

Work for terminal at Galle to be tendered again

Johor Port Sdn. Bhd. and Mott-McDonald, which won the concession for a
U.S.$800 million container terminal at the Port of Galle, Sri Lanka, has
withdrawn after it could not raise enough money. The Sri Lankan government
now plans to issue another tender, which will open in February for three
months. The terminal was to be able to handle one million TEUs with 10,000
direct jobs. Construction of a breakwater and dredging at the port for
U.S.$150 million will continue if grants and loans can be received.

Privatization of Brazilian terminal blocked by injunction

One of the six bidders to operate a container and ro/ro terminal at
Paranagua, Brazil, has filed an injunction to block its privatization.
Integral Transportes e Agenciamento, which includes Grupo Lachman, has
stopped the process for the Tevecon terminal. It has stated that the tender
document is "possibly illegal," citing criteria in which the winner is
based only on the group offering the most renumeration. The consortium has
called for an open auction.

Chennai Port Trust reopens bidding

Chennai Port Trust in India has reopened a tender for a reserved
berth.

I.L.O. training Indian dockworkers on container handling

Dockworkers at five Indian ports are being trained to handle
containers by the International Labor Organization.

International Ports Services takes over operations at Saudi Arabian port

International Container Terminal Services Inc. and Maritime Co. for
Navigation have announced that their joint venture has taken over
operations of container, refrigerated and ro/ro cargo at King Abdul Aziz
Sea Port in Dammam, Saudi Arabia. International Ports Services Co. won a
10-year concession in July. The facility has four berths, a container yard,
specialized refrigerated cargo facilities, refrigerated container
inspection areas, rail connections, a maintenance and repair shop, an
office and warehousing. There are six container gantry cranes, two
refrigerated cargo gantry cranes, 11 mobile cranes, 24 straddle carriers
and several other pieces of lifting equipment.

New German ferry terminal opens

A new ferry terminal has opened on Ruegen Island, Germany, as part of
Ferry Port Sassnitz, formerly Sassnitz-Mukran. The 175 million German
mark/U.S.$96.1 million terminal, financed by the German state of
Mecklenburg-Vorpommern has a new pier with two berths and a passenger
terminal. There is also a 120,000-square-meter/144,000-square-yard parking
area with rail service.

EBRD grants loan for Constanta

The European Bank for Reconstruction and Development on 8 Jan.
announced it will provide a U.S.$13 million loan for new grain handling and
storage facilities at the Port of Constanta, Romania. The facility will be
able to store 100,000 tons of grain.

Zhangzhou offering concession for new berths

The Port of Zhangzhou in China's Fujian province is offering a
concession for four new berths on a build-operate-transfer basis. It is
expected the concession will cost up to U.S.$72 million. The berths are two
35,000-dwt and two 20,000-dwt.

Jinzhou Harbor to issue shares

Jinzhou Harbor (Group) Co. will issue 115 million "B" shares to
foreign investors in order to raise 344 million Chinese yuan/U.S.$41.4
million for phase two of the port's work.

Calcutta Port Trust developments

India's Calcutta Port Trust has awarded a 2.8 billion Indian
rupee/U.S.$73 million contract for maintenance dredging of the approaches
to the Haldia Dock Complex to Ham Dredging and Marine Contractors. The
contract is for two years. Also, the port trust has awarded a dredging
contract for Auckland Point to Dredging Corp. of India Ltd. Calcutta Port
Trust is also moving ahead to develop the jetties at Budge Budge, including
a third oil jetty in which the trust will contribute 430 million
rupees/U.S.$10.8 million.

Indian Oil approves new terminal

Indian Oil Corp. Ltd. has approved a proposal to set up a 60,000
kiloliter/15.6 million gallon oil terminal at Jawaharlal Nehru Port Trust
in India.

Marine Terminals takes over San Francisco pier

Marine Terminals Corp. has taken over operation of Pier 80 at the Port
of San Francisco. Operations at Piers 27/29 and 96 will be consolidated at
the new location.

Genoa bunkering to change

Bunker suppliers at Genoa, Italy, are planning to rationalize the
port's bunkering infrastructure within the next three or four months. All
suppliers will operate from Esso Italiana's terminal, which has a capacity
of 70,000 cubic meters. The Colisa terminal, owned by Garrone, was closed
19 Dec. It had been used by Agip Petroli SpA and Delta Energy Srl. Agip
Petroli is now operating at the terminal of Italiana Petroli SpA, a
subsidiary. Delta Energy will move to Esso Italiana.

Qingdao passes one million TEUs

China's Port of Qingdao has passed one million TEUs handled after
handling an Orient Overseas Container Line refrigerated FEU. Nowaco, a
Danish food company, was the shipper.

COSCO unit to work to Guangzhou customs office

COSCO Guangzhou International Intermodal Co. has signed an agreement
with China's Huangpu Customs Office in Guangzhou, China, to increase
foreign trade in southern China. The firm will provide local customs
authorities with information about possible smuggling and other
intelligence. In return, the customs office will simplify clearance for
firms that deal with COSCO Guangzhou International Intermodal.

Ansary sentenced

Hassan Ansary, the former vice president of Canada Ports Corp., has
been sentenced to nine months in prison after he pleaded guilty to fraud
and theft.

Dutch government renews tug for permanent standby

Smit Tak B.V. and Wijsmuller Salvage B.V. have signed a new contract
with the Dutch government in which the Waker (Dutch-registry tug built in
1977, operated by SWI B.V.) will be permanently stationed offshore to
provide emergency assistance.

Ipswich Port Authority goes out of existance

England's Ipswich Port Authority, which existed in one form or another
for 192 years, ceased to exist on 22 Dec. Ipswich Port, part of Associated
British Ports, took over the authority's assets and operations in March. In
1805, an act of the British Parliament gave control over the Orwell Estuary
to a public commission.

European ports closed by heavy fog

The Romanian ports of Constanta, Mangalia and Midia-Navodari were
closed 4 Jan. due to heavy fog that caused visibility of less than one
nautical mile. Twelve vessels anchored outside Constanta waiting for
conditions to improve before entering the port. Operations at the British
ports of Felixstowe, Southampton and Thamesport as well as Rotterdam, the
Netherlands, were also effected. Salina Cruz, Mexico, meanwhile, reopened 3
Jan. after a long closure due to weather.

Leaking pipeline at Colombo stopped

An abandoned crude oil pipeline at the Port of Colombo, Sri Lanka, was
found to be leaking on 5 Jan. Ceylon Petroleum Corp. found the leak and
stopped the oil from flowing through a storm water drain that empties into
the harbor near the Prince Vijaya Quay. Several tons of oil were recovered.
The five-kilometer/three-mile pipeline polluted a large area of the port
and then filled a 0.6-meter/two-foot drain.

Lunetta reportedly being investigated for payments at Port of Miami

The U.S. government is investigating allegations that Carmen Lunetta,
the former director of the Port of Miami, conspired to divert public money
to associaties. The U.S. Attorney's Office and the U.S. Federal Bureau of
Investigation are investigating whether Lunetta, 67, made payments to port
vendors with little provided in return. Among the investigation's facets
are examination of Lunetta's dealings with Calvin Grigsby, a San Francisco
businessman affiliated with Fiscal Operations. The firm was hired under a
long-term contract to manage the port's gantry cranes. It has been reported
that only U.S.$1 of every U.S.$7.80 collected by Fiscal Operations was
given to the Port of Miami. Allegations have also stated that the port
collected money for the same dredging twice. The U.S. Army Corps of
Engineers agreed to pay 65 percent of a project and the Miami Department of
Transportation, unaware of the previous committment, agreed to pay 50
percent. A third item involves Dutra Construction, which is alleged to have
been allowed to submit false billing statements for progress payments on a
project, so that it could buy new equipment for the work. In exchange,
Dutra Construction is said to have offered the lowest bid. Lunetta, who
retired in May, has denied the allegations and said he is a scapegoat for
the port's financial problems. The port is under the authority of
Miami-Dade County, which believed the port was self-supporting. But in a
report released in spring, it was announced that the port had a U.S.$22
million deficit and that public money had been used to cover losses for
several years. Lunetta was port director for 38 years.

St. Lawrence Seaway in 1997

The Welland Canal and the Montreal-Lake Ontario sections of the St.
Lawrence Seaway 47.6 million metric tons of cargo this season, including
39.98 million metric tons in the canal and 36.33 million tons in the
Montreal-Lake Ontario section. The seaway opened 2 April and closed 26 Dec.
The sections handled 2.3 million metric tons in 1996. The largest increase
was of Canadian grain, up 38 percent from 1996 to 9.163 million tons. U.S.
grain declined 24 percent due to reduced stocks at the beginning of the
season. Coal, iron ore and other bulk cargo levels were similar to the last
three years. General cargo, such as steel products, decreased 14 percent,
mostly due to the decreased demand for imported steel slabs. In all, 4,042
vessels transited the seaway in 1997, compared to 3,953 in 1996. On
average, however, they carried less cargo this year.

Singapore boost containers again

PSA Corp. handled 14.12 million TEUs last year, a 9.1 percent gain
from 1996.

Colombo reports 1997 figures

The Port of Colombo, Sri Lanka, is said to the the fastest growing hub
port in the world, following record cargo totals last year. Some 1.68
million TEUs were handled, up from 1.35 million in 1996. A total of
24,834,698 tons of cargo was handled, up from 20,885,218 tons. A total of
3,534 ships called at the port, compared to 3,325 the year before.

Bremen, Bremerhaven cargo handling last year

THE German ports of Bremen and Bremerhaven handled 1.7 million TEUs
last year, up 10.2 percent from 1996. General cargo was up more than 10
percent to 21.2 million metric tons, while 976,000 vehicles were handled, a
12.5 percent increase.

Antwerp increases container volume 12 percent

The Port of Antwerp, Belgium, increased its container handling by 12
percent last year with containers of 33 million tons. General cargo
increased 7 percent to 56 million tons with fruit and paper products up 6
percent while steel fell 9 percent.

Zeebrugge figures for last year

Zeebrugge Port Authority has announced that traffic at the Belgian
port was up 14 percent last year to 32.5 million tons. Ro/ro cargo was up
14.5 perecnt fo 14.7 million tons while containers increased 20.9 percent
to 640,000 TEUs. Liquid bulk was up 8.2 percent to 5.2 million tons and dry
bulk rose 22.6 percent to 4.2 million tons.

Tanjung Priok figures

Tanjing Priok, Indonesia, handled about 1.9 million TEUs last year, an
increase of 22 percent from 1996. The port handled about 3,200 TEUs per
day.

Xiamen registers 1997 increase

The Port of Xiamen in China's Fujian province handled almost 18
million tons of cargo last year, up 13 percent from 1996. Eleven million
tons were of foreign cargo, an increase of 25 percent. The port also
handled 546,000 TEUs, up 36 percent.

More on Rotterdam in 1997

The Port of Rotterdam, the Netherlands, has announced it handled 307.3
million tons of cargo in 1997, an increase of 5.2 percent from 1996. Not
only does it beat the 296 million tons handled in 1973, it is said to be
the largest-ever cargo volume at any port in a single year. Containers
increased 8.2 percent to 5.43 million TEUs, the largest annual increase in
10 years. Coal shipments increased 18.6 percent to 22 million tons, the
highest level in 10 years due largely to demand in Germany. petroleum
products were up 37.9 percent, ore and scrap increased 14.8 percent and
ro/ro cargo increased 19.3 percent. Liquid cargoes only increased 0.8
percent. Crude oil shipments decreased 2.1 percent along with general
cargo, down 1.8 percent to 9.9 million tons.

Additional information on work at Blyth

The Wansbeck district council has given permission for the final phase
of the 7 million British pound/U.S.$12 million work at the Port of Blyth,
England. The last phase will cost 1.75 million pounds/U.S.$2.82 million.
Work to date has included reclamation and infrastructure work, including
remediation at Battleship Wharf, which had been used for vessel demolition.
There is also a new terminal with a quay that has quay-side depth of 8.5
meters/28 feet. Now, 12 hectares/29 acres on the north side of the port
will be developed for warehouses and other cargo handling. Work is expected
to be done by 1999.

SHIPYARDS AND EQUIPMENT

Meyer Werft now in control of Neptun Industrie Rostock

Meyer Werft has confirmed it has taken over Neptun Industrie Rostock
GmbH, the successor to former shipbuilder Neptun Werft. Including future
investment, Meyer Werft will pay 20 million German marks/U.S.$11 million.
At least 500 jobs have been guaranteed until 2000. The European Commission
must approve the deal. Neptun Industrie Rostock was part of Bremer Vulkan
Verbund AG and was then 80 percent owned by Jobst Wellensiek, the Bremer
Vulkan Verbund sequestrator, and the rest by management. It has not built
ships since 1991 and it adopted its present name in 1993. The firm is the
holding business for 11 companies, some of which will likely be sold as
Meyer Werft concentrates on retaining ship related businesses.

Bodewes Scheepsverf Volharding Foxhol to buy J. Pattje Shipyard

Bodewes Scheepsverf Volharding Foxhol B.V. has entered into a deal to
buy J. Pattje Shipyard.

Royal Bank of Scotland unit buys stake of A&P Holdings

Royal Bank Development Capital, a unit of the Royal Bank of Scotland,
has bought a major stake in A&P Holdings Ltd., the British vessel repair
firm. The stake was acquired from NatWest Bank and Schroder Ventures.

Calcasieu Shipyard to be bought by Halter Marine Group

Halter Marine Group Inc. announced 8 Jan. it has signed a letter of
intent to purchase the stock of three firms comprising the operations of
Calcasieu Shipyard Inc. at Sulphur, La. The 35-year-old shipyard employs
about 170 people and is located on the Calcasieu River. It has three
2,000-ton floating dry docks, a 400-ton railway and a complete machine
shop. There is also large volume fuel storage, tank barge cleaning
facilities, pressure barge flaring and nitrogen inerting. Upon completion
of the deal this quarter, the yard will be renamed Halter-Calcasieu and
Halter Marine Group will enlarge the yard's repair facilities. The shipyard
has reportedly had revenue of U.S.$14 million in the last 12 months.

France to pay owed subsidies

The French government has agreed to pay 1.8 billion French
francs/U.S.$300 million to Chantiers de l'Atlantique to cover owed
shipbuilding subsidies.

Friede Goldman International completes purchase of Marystown Shipyard

Friede Goldman International Inc. completed its purchase of Marystown
Shipyard Ltd. on 1 Jan. The two facilities that form Marystown Shipyard
were bought from the Newfoundland government for Canadian$1/U.S.$.70 and a
guarantee that employees would work a total of 1.2 million person hours
per year for three years. Marystown Shipyard is now Friede Goldman
Newfoundland.

Hellenic Shipyards gets approval for modernization

Hellenic Shipyards Co. has received Greek government approval for a 15
billion Greek drachma/U.S.$5 million modernization.

Halter Marine Group yards to get major improvements

Halter Marine Group Inc. has started an upgrade and expansion of two
of its New Orleans shipyards, a facility in Mississippi and a yard in
Texas. Improvements include seven new 45.7-meter/150-foot tower cranes for
three dry docks at the Gulf Repair yard in New Orleans. The fabrication
shop will get a heavy-duty press brake for steel production and the
facility's launch skids will be improved. More than U.S.$1 million will be
spent at Gretna Machine & Iron Works Inc. Three 48.7-meter/160-foot tower
cranes will be rebuilt, a 1,100-ton dry dock from Gulf Repair will be
installed and the yard's bulkhead area will be dredged to 6.1 meters/20
feet. At Gulf Coast Fabrication in Pearlington, Miss., a new U.S.$1 million
tilt beam launch system will be built and the graving dock will be enlarged
from 137 meters/450 feet to more than 157 meters/515 feet in length.
Finally, Bludworth Bond Shipyard Inc. in Texas City, Texas, will get a new
U.S.$4 million 91-meter/300-foot dry dock built by another Halter Marine
Group yard by the second quarter.

Ishikawajima-Harima Heavy Industries to open Brazilian office

Ishikawajima-Harima Heavy Industries Co. Ltd. will open a marketing
and sales office in Sao Paulo, Brazil, in April. It will be the first
office in South America since the company ended its Ishibras shipbuilding
venture in Brazil in September 1994.

Weeks Marine to dredge channel to Friede Goldman Offshore facility

Weeks Marine, which submitted a bid of U.S.$3.3 million, has won a
contract to dredge a channel in Bayou Casotte near Pascagoula, Miss., for
Friede Goldman Offshore's facility on Greenwood Island. The
7.6-meter/25-foot deep channel will enable the movement of drilling rigs.
It will be 610 meters/2,000 feet long and 183 meters/600 feet wide. The
U.S. Economic Development Agency is expected to provide a grant to pay for
some of the work with the rest funded by a Mississippi Business Investment
Act loan.

Hitachi Zosen to add 20 female workers at Ariake yard

Hitachi Zosen Corp. will increase the number of female employees by 20
to a total of 50 at its Ariake, Japan, shipyard by the end of 2000. Hitachi
Zosen said that the introduction of robots at the yard required trained
operators rather than manual work often handled by men due to greater upper
body strength. As a result, Hitachi Zosen plans to hire women to better
balance its workforce. The yard will install 10 robots to weld curved steel
for hull interiors by April. Hitachi Zosen plans to hire one woman to
operate each robot. Additional robots are planned.

Princess Cruises orders 109,000-gt passenger ships

Princess Cruises Inc. on 6 Jan. announced it has ordered two more
109,000-gt, 2,600-passenger ships that will be identical to the Grand
Princess, which will be the largest passenger ship in the world when
delivered in May. The 7,000-dwt ships will be delivered in the spring and
fall of 2001 by Fincantieri Cantieri Navali Italiani SpA at Trieste, Italy.
Each will cost U.S.$425 million and they will sail year-round in the
Carribean. The design is 289 meters/948 feet long with a beam of 36
meters/118 feet. The ships will sail at 22.5 knots with six GMT Sulzer
diesel engines. The ships have eight dining areas including what is said to
be the first U.S. Southwestern restaurant at sea, a 24-hour cafe, a wedding
chapel, the largest casino afloat, a disco suspended 45.7 meters/150 feet
above the water reached by a glass skywalk, a television studio and the
first ocean-going "virtual reality" center. Three original shows will be
presented nightly in three theaters.

World's largest semi-submersible ships to be built

Offshore Heavy Transport has ordered two 56,500-dwt semi-submersible
ships from China Shipbuilding Corp. They will be the largest in the world.
The deal is said to be worth U.S.$94 million.

Frontline in two tanker order

Frontline Ltd. has ordered two Suezmax tankers from Hyundai Heavy
Industries Co. Ltd. at a cost of more than U.S.$100 million.

Sanoyas Hishino Meisho reportedly gets 48,000-dwt tanker order

J.L. Mowinckels has reportedly ordered two 48,000-dwt chemical/product
tankers from Sanoyas Hishino Meisho Corp. The ships, with 21 cargo tanks,
will be assigned by Team Shipping when delivered in January 2000 and April
2000. There are said to be options for two more.

Niestern Sander gets order for two Conofeeder 300s

Niestern Sander B.V. has received a contract from Navigia Shipping for
two 3,480-dwt, 301-TEU ships of the Conofeeder 300 type. They will be
completed in November and March 1999. The ships will be 92.75 meters/304.3
feet long, have a beam of 15.85 meters/52.00 feet and a draft of 4.88
meters/16.0 feet. Cargo hold space totals 4,410 cubic meters/147,000 cubic
feet. Seventy-two TEUs can be placed below deck and 229 on the weather
deck. They will be capable of 15 knots and will be classed by Bureau
Veritas.

Bibby Line in order with Arab Heavy Industries

Bibby Line Ltd. has ordered four self-elevating multipurpose support
vessels from Arab Heavy Industries P.J.S. Co. The first of the
Searex-designed vessels will be delivered next year and will likely work in
the Middle East or Asia.

ULS Marbulk in order with Hyundai Mipo Dockyard

ULS Marbulk Inc., a unit of Upper Lakes Group Inc., has ordered a
43,900-dwt bulk carrier with self-unloading equipment from Hyundai Mipo
Dockyard Co. Ltd.

Farstad Shipping orders anchor handling/supply vessel

Farstad Shipping A.S.A. has ordered a multipurpose anchor handling and
supply vessel from Langsten Slip & Baatbyggeri A/S. Construction of the
UT741 will start in May for delivery a year later. It will have a 500-ton
winch and total propulsion of 20,100 kilowatts/27,400 brake horsepower with
a minimum bollard pull of 280 tons.

New dredging vessel for DEME

DEME has ordered a 17,000-cubic-meter/22,100-cubic yard trailing
suction hopper dredger from IHC Holland N.V. It will be delivered in the
second half of 1999.

McTay Marine to build new ferry to serve Scottish islands

McTay Marine will build a ferry for Western Ferries (Argyll) to
replace its Sound of Gigha, which operates to the Scottish islands of Islay
and Jura. The new vessel will be a ro/ro and passenger ferry with bow and
stern ramps. It will be 25.6 meters/84.0 feet long with a
6.25-meter/20.5-foot beam and a depth of 2.25 meters/7.38 feet. Capacities
include vehicles or a single 44-ton truck, the largest vehicle allowed on
British roads, and as many as 50 passengers. Service speed is nine knots
using two high-speed diesel engines, reduction gearboxes and fixed-pitch
propellers. The design, Crinmax-44, is by Stirling Shipmanagement Ltd.,
which will oversee construction and daily management. The design name is
derived from the fact it will be the largest vessel capable of transiting
the Crinan Canal. It will be delivered in July to the Argyll and Bute
Council with classification by Lloyd's Register.

HAM Marine to outfit rigs for Ocean Rig

HAM Marine has signed a memorandum of understanding with Ocean Rig to
outfit the first Ocean Rig Bingo 9000 semi-submersible rig, will outfit the
second and has options on the last two. The first hull will leave New
Dalian Shipyard in April and will be worked on at Bayou Cossotte, Miss.

Hovercraft for new Canadian service ordered

Andre Bourque has ordered a hovercraft from a British company for
U.S.$1.4 million. The hovercraft will operate a ferry service between the
Quebec islands north of Prince Edward Island; Shippagan, New Brunswick;
North Rustico, Prince Edward Island; and Cheticamp, Nova Scotia.

First order for new G.R.P. builder in the Philippines

EGI-Droge Shipbuilding will set-up a shipyard in Cavite, the
Philippines, to build fast glass reinforced plastic vessels. The yard will
be a venture of E. Ganzon, a Philippine property developer, and Droge
Systems. It will buy a 5,000-square-meter/6,000-square-yard site in Rosario
and will have an air conditioned assembly and fabrication area. The first
order is for two 13.25-meter/43.47-foot Seaflyer patrol boats for
Indonesia. They will have 441 kilowatt/600 brake horsepower Seatek engines
for a range of 800 kilometers/500 miles and a sped of 65 knots.

Largest monohull fast ferry to be launched

Fincanteri Canteri Navali Italiani SpA's Riva Trigoso facility in
Italy will launch the Jupiter on 10 Jan., the largest monohull fast ferry
yet built. The MDV3000 design will be delivered to Tirrenia di Navigazione
SpA in May.

Arcadia named

The Arcadia (5,450-dwt passenger ship built in 1989) was formally
named 19 Dec. by the speaker of the British House of Commons, Betty
Boothroyd, at the Western Docks in Southampton, England. The 63,500-gt
passenger ship was formerly the Star Princess and is now operated by P&O
Cruises Ltd. out of Southampton. The ship recently completed a refit at
Harland & Wolff Holdings P.L.C. in Belfast, Northern Ireland. The Star
Princess was built by Chantiers de l'Atlantique in 1989. Among the work was
enlarging the Conservatory Deck on Deck 12. Also, the ship has changed its
registry from Liberia to the United Kingdom.

Russian shipyard begins work on new attack submarine design

Admiralteiskiye Shipyard has laid the keels of two new diesel attack
submarines in St. Petersburg, Russia. One is for the Russian Navy and the
other is for export with completion in 2001 and 2002. The submarines are of
a new design, "significantly different from contemporaries," according to
Vladimir Alexandrov, the shipyard's director. The design is being called
the Amur 1650. It is 67 meters/220 feet long, has six torpedo tubes with 18
torpedoes, is capable of 21 knots surfaced and can operate underwater for
10 days up to 250 meters/820 feet deep. The Amur 1650 will also have a new
electric motor, said to be three times more powerful than previous designs
and much quieter. It will also have a fully computerized torpedo system
that will enable first firing 15 seconds after target acquisition. The
steel for the hull, AB-2, is said to be a new design as well and the hull
will be coated. The submarine design is by Firma Rubin and it had been said
that construction of Project Amur would begin in cooperation with a foreign
customer. A few years ago, it was rumored that the design would have 30 to
45 crewmembers, a cruciform stern control-surface, a linear passive sonar
array and alternating current electrical equipment. These design points
have not been publicly confirmed yet. The two submarines being built are
identical except that the export submarine will not have the Russian Navy's
friend or foe identification equipment and certain communications systems.
The export vessel will also use the language of its intended crew and will
be suited for the climate of its intended area of operations. This would
seem to indicate a tropicalized version for operations in warmer waters.
Also, last month, the yard delivered the Indian Navy's Sindhurakshak, known
to the Russian Navy as a Warshavyanka-class or Project 877 submarine and to
the North Atlantic Treaty Organization as the Kilo-class.

Meyer Werft delivers first of new ferry type to Indonesia

Meyer Werft has completed the 14,800-gt passenger ferry Sinabung, the
first of a new design similar to its earlier Type 2000 series but capable
of two more knots and with containerized cargo facilities. A second ferry
will be delivered in fall. The Sinabung will be homeported at Belawan,
Indonesia, and will be operated by the Indonesian Directorate-General of
Sea Communication. The vessel can carry 1,906 passengers with 508 cabin
berths and 157 crewmembers. It is 146.5 meters/480.6 feet long, has a beam
of 23.4 meters/76.8 feet and a draft of 5.9 meters/19 feet. There are nine
decks and two and four-berth cabins for first class and six and eight-berth
cabins for second class. There are four fire zones with smoke and fire
detection equipment as well as carbon dioxide supression gear in machinery
areas and the cargo holds. Sprinklers are used elsewhere. All fire sensors
are linked to a bridge control board with optical and acoustic alarms. The
Sinabung has 13 watertight compartments with doors that can be operated
electro-hydraulically from the bridge or hydraulically from above the
bulkhead deck and both sides of the doors. Propulsion includes two MaK
eight-cylinder M601C type engines for 17,040 kilowatts/23,170 brake
horsepower and 428 revolutions per minute. The engines drive Lips
controllable-pitch propellers through Renk reduction gears. The Sinabung is
capable of 22.4 knots at 85 percent of maximum continuous rating in fair
weather. Electricity is provided by four aggregates using 882 kilowatt
generators with a capacity of 1,000 kilovolts. The ship was built to the
regulations of BKI under the survey of Germanischer Lloyd.

Elation ends trials

The Elation, the first passenger ship with Azipod propulsion, has
completed trials and is being outfitted. The 7,180-dwt ship is being built
for Carnival Corp.

Kalmar Group gets order from Turkey for container equipment

Kalmar Group has received an order for 35 ContChamp container stackers
and 43 Sisu terminal tractors from Turkey. The order is worth U.S.$16
million.

Statoil Norge tankers to get Schilling Monovec rudders

Three 127,000-dwt tankers ordered by Statoil Norge A/S from Astilleros
Espanoles S.A. will receive twin Schilling Monovec rudders by Hamworthy
Marine Technology Ltd. The rudders will cost U.S.$2.5 million. The ships
will be operated by Navion with two being built at Sestao and one at Puerto
Real in Cadiz, all in Spain. They will be completed in the first half of
the year. Features include two separate engine rooms for low-speed MAN B&W
diesel engines.

German shipyards complete more vessels in 1997

German shipbuilders completed 81 commercial vessels last year of 1.099
million gross tons and 1.222 million deadweight tons. The figure is up from
75 vessels of 1.085 million gross tons and 1.199 million deadweight tons in
1996. Twenty-three ships were for export, totaling 401,400 gross tons and
318,971 deadweight tons. They included six containerships for China, five
containerships for Israel, two passenger vessels for Indonesia, one
passenger ship for Panama, a chemical/product tanker for Italy, two ro/ro
ferries for Tunisia, five refrigerated trawlers for Russia and a hopper
suction dredger for Cameroon. Howaldtswerke-Deutsche Werft AG was the
leader with five ships of 207,535 gross tons and 229,250 deadweight tons.
The ships were 41,507-gt, 3,429-TEU containerships for Zim Israel
Navigation Co Ltd. Kvaerner Warnow Werft GmbH was second with four ships of
113,639 gross tons and 145,128 deadweight tons and MTW Schiffswerft GmbH
had eight of 109,690 gross tons and 135,875 deadweight tons. In fourth was
Meyer Werft with three ships of 107,567 gross tons and 13,250 deadweight
tons, as the three were passenger ships. Fifth was J.J. Sietas Schiffswerft
KG, which had 10 ships of 75,936 gross tons and 99,174 deadweight tons.
Following were: Flensburger Schiffbau GmbH & Co. KG, three of 70,429 gross
tons and 100,207 deadweight tons; Volkswerft Stralsund GmbH, four of 65,342
gross tons and 87,168 deadweight tons; Flender Werft AG, three of 64,593
gross tons and 90,675 deadweight tons; now closed units of Bremer Vulkan
Verbund AG, two of 63,460 gross tons and 69,954 deadweight tons; and
Thyssen Nordseewerke GmbH, three of 57,921 gross tons and 75,993 deadweight
tons. Husumer Schiffswerft built one ship of 697 gross tons and 358
deadweight tons and half a hull for Brand-Werft. Fassmer built a 105-gt
vessel.

EVENTS, INCIDENTS AND OPERATIONS

Passenger aboard Carnival passenger ship missing off Florida

An adult male passenger fell overboard at 2115 7 Jan. from a bar and
grill area aboard the Fantasy (7,000-dwt, 2,100-passenger ship built in
1989, operated by Carnival Corp.). Despite searches by the ship and the
U.S. Coast Guard, the man remains missing. The ship was 54 kilometers/34
miles east of Jupiter, Fla., at the time. Searches involved two HH-65A
Dolphin helicopters from Coast Guard Air Station Miami, an HH-60J Jayhawk
helicopter from Coast Guard Air Station Clearwater, Fla., and the
"Point"-class Patrol Boat U.S.C.G.C. Point Martin (WPB 82379). Carnival
said the U.S. citizen was traveling alone. The Fantasy was sailing from
Nassau, the Bahamas, to Port Canaveral at the end of a four-day cruise.

Injured crewmember aboard ship off Massachusetts evacuated by helicopter

Sergey Pekhtashey, 51, a crewmember aboard the Geroi Sevastoploya
(Russian-registry 54,990-dwt tanker built in 1979, operated by Novorossiysk
Shipping Co.), was injured 30 Dec. when a container of oil aboard the
vessel shifted in bad weather. A U.S. Coast Guard HH-60J Jayhawk helicopter
from U.S. Coast Guard Air Station Cape Cod, Mass., evacuated Pekhtashey
from the ship the next day, 120 kilometers/75 miles south of Nantucket,
Mass. The ship had tried to return to New York but was slowed by
conditions. Pekhtashey, a Russian citizen was taken to Hyannis Airport in
Massachusetts and then taken to Cape Cod Hospital by ambulance for
treatment of a possible factured hip.

Venezuela seizes half ton of cocaine from ship

The Venezuelan National Guard seized half a metric ton of cocaine on 5
Jan. from the Sea Ranger (Norwegian-registry 10,800-dwt dry cargo ship
built in 1979, operated by Jahre-Skaugen-Wallem A/S) before it sailed from
Guanta, Venezuela, for Puerto Rico and Miami. The cocaine was hidden in a
cargo of clay tiles. The cocaine has been linked to the Guajira cartel,
based in Colombia, and the National Guard said several arrests have been
made.

Section of Ohio River closed due to fertilizer plant fire

The U.S. Coast Guard closed the Ohio River to navigation on 4 Jan.
between Maysville, Ky., and Manchester, Ohio, after a fertilizer plant in
Mayville, owned by Cargill Inc., caught fire at 0230. A rail line of CSX
Transportation was also closed. About 2,500 people around Maysville and in
Ohio's Adams and Brown counties across the river were evacuated but
returned the same day. The plant was not operating but contained tons of
chemicals, many of which were potentially explosive or toxic, for use in
herbicides and pesticides. The plant contained 420 tons of ammonium nitrate
as well as carbofuran, endosulfan, methyl bromide and paraquat. Two
explosions shook the facility, but they were said to be exploding propane
tanks. One firefighter had a minor injury.

Cayman Islands denies permission for passenger ship to dock

The Cayman Islands has refused permission for the Leeward
(Panamanian-registry 1,703-dwt, 910-passenger vessel built in 1992,
operated by Norwegian Cruise Line Ltd.) to dock at Grand Cayman because the
government said it did not expect "appropriate behavior" from the
passengers. Atlantis Events Inc. chartered the ship for a one-week cruise
to leave Miami on 30 Jan. The cruise is being marketed to homosexual men
and women and 850 tickets had been sold as of 6 Jan. One of the ports of
call was to be a seven-hour stop at Grand Cayman on 1 Feb. But in a letter
to Norwegian Cruise Line's Miami port captain written 8 Dec. by Thomas C.
Jefferson, the Cayman Islands' minister of tourism, commerce and transport,
the call was rejected. The letter stated that "Careful research and prior
experience has led us to conclude that we cannot count on this group to
uphold the standards of appropriate behavior expected of visitors to the
Cayman Islands, so we regrettably cannot offer our hospitality." Special
permission was required for the Leeward to dock because the charter changed
the ship's regular itinerary. The Leeward will instead sail to Belize in
addition to Cancun and Cozumel in Mexico and the Bahamas.

Ro/ro with plutonium blockaded

The Arneb (3,640-gt, 2,515-dwt ro/ro built in 1986, operated by
Interorient Navigation) left Bremerhaven, Germany, recently after local
police ended a blockade of the ship by members of Greenpeace. The ship was
carrying 59 kilograms/130 pounds of plutonium for a processing plant at
Dounray in the United Kingdom. The protesters, who chained themselves to
the ship's ramp, face charges of damage to property and trespassing.

Up to 100 dolphins die after stranding on Venezuelan beach

As many as 100 Atlantic spotted dolphins died this week after swimming
shore on Turtle Island, Venezuela. As of 5 Jan., some 70 dolphins were
found dead and 20 more were found floating offshore. Fishermen and tourists
attempted to drag them back into the water but they immediately swam ashore
again. Eighty percent of the dolphins were female. The stranding is the
largest ever reported in Venezuela.

Update on fuel spill from the Anadyr at the Port of Tacoma

More than 5,700 liters/1,500 gallons of fuel and 9,900 liters/2,600
gallons of fuel and water have been recovered since 1 Jan. at the Port of
Tacoma, Wash. About 0720, as the Anadyr (Russian-regustry 19,943-dwt,
174-meter/570-foot dry cargo ship built in 1984, operated by Far Eastern
Shipping Co.) was taking on fuel from a tank barge of Olympic Tug & Barge
Inc. at Terminal 7's Berth C, fuel overflowed from vents and spilled from
the deck into the water. Foss Environmental is working to clean-up the fuel
with 35 personnel, two skimmers, two vacuum trucks, two 9.8-meter/32-foot
response vessels and four small work boats. Most of the spilled fuel has
remained around the ship or within the Sitcum Waterway, contained by 1,130
meters/3,700 feet of booms. Light sheens have been seen around Commencement
Bay and a few areas of fuel were found along the shore north of the Hylebos
Waterway towards the Browns Point area, where two people are working to
collect it. At least 30 birds with varying degrees of fuel on them have
been found.

Saiga remains detained by Guinea in spite of tribunal order for release

Guinea has refused to release the Saiga (St. Vincent and the
Grenadines-registry 4,254-gt tanker managed by Seascot Shipmanagement Ltd.)
despite an order by the International Tribunal for the Law of the Sea. Last
month, the tribunal ordered that the Saiga and its crew be released from
detention in Conakry, Guinea, where it has been held since 28 Oct. Guniea
said that the ship was illegally supplying fishing vessels with gas oil off
its coast. Four crewmembers of the Saiga were reportedly injured before
Guinea forced it to port and two of them were released with serious
injuries. The ship's release was to be made after a "reasonable financial
security" of U.S.$400,000 and the cargo of gas oil, reportedly 500 tons
worth U.S.$1 million. Credit Suisse issued a bank guarantee for the money
but Guinea has said that the guarantee's wording is inadequate. The gas oil
has reportedly been sold.

Sea Shepherd honors son of Norwegian whaler for accidental sinking

Sea Shepherd, the anti-whaling group, has named the son of one of
Norway's most prominent whalers "Crewman of the Year" for accidentally
sinking his family's vessel. The 14-meter/45-foot Morild, owned by Steinar
Bastesen, sank at its wharf in Bronnoysund, Norway, in November. Local
police said the Morild sank because Bastesen's 20-year-old son, Stein
Eirik, forgot to close several valves.

Japanese Maritime Safety Agency forms armed special response unit

Reports in Asia recently indicate that the Japanese Maritime Safety
Agency formed an armed special response unit in May 1996 of some 40
personnel. The Special Security Team is based at the Fifth Regional
Headquarters at the Osaka Special Guard Station in Izumisano, Osaka
prefecture. The team initially is said to have integrated a special
security unit formed about 10 years ago with 13 specially-trained personnel
who served aboard the Akatsuki Maru, a ship that carried plutonium between
France and Japan. The Special Security Team is said to be intended for
special anti-terrorist operations with a maritime element, such as the
capture of a vessel or hostages being held aboard a ship. Personnel are
said to receive small boat and helicopter training as well as use and
disposal of mines and other explosive devices. Typical equipment is said to
include night vision goggles, automatic and sniper rifles, MP5 submachine
guns and P226 pistols with silencers.

More on cocaine find in Vancouver

On 27 Dec., customs personnel found 455 kilograms/1,001 pounds of
cocaine in a container loaded with coffee at Vanterm in the Port of
Vancouver, British Columbia. The container had arrived aboard the Columbus
Valparaiso (Panamanian-registry 16,949-dwt containership built in 1977,
operated by Promotora de Navegacion S.A.), part of the SERPAC service,
which sailed from Buenaventura, Colombia, Los Angeles and San Francisco.
The container was loaded at Bogota, Colombia. The 10 sacks of cocaine have
a street value of U.S.$64million. It was the largest such find of its kind
in Canada in 1997 and the largest ever find in British Columbia.

VESSEL TRANSFERS

Algoma Tankers buying four ships from Imperial Oil

Algoma Central Corp.'s Algoma Tankers Ltd. announced 5 Jan. that it
will purchase four Canadian-registry product tankers from Imperial Oil Ltd.
for Canadian$13 million/U.S.$9.3 million. The Imperial Acadia (7,068-gt,
10,475-dwt, 3,908-nt, 134-meter/440-foot, 84,000-barrel motor tanker built
in 1966 by Port Weller Dry Docks Ltd. at St. Catharines, Ontario), the
Imperial Bedford (9,500-gt, 13,980-dwt, 6,644-nt, 147.9-meter/485.4-foot,
118,000-barrel motor tanker built in 1969 by Davie Shipbuilding Ltd. at
Lauzon, Quebec), the Imperial St. Clair (7,964-gt, 12,708-dwt, 6,438-nt,
133-meter/435-foot, 106,000-barrel motor tanker built in 1974 by Port
Weller Dry Docks) and the Imperial St. Lawrence (8,471-gt, 9,657-dwt,
3,584-nt, 131.5-meter/431.4-foot, 78,000-barrel motor tanker built in 1977
by Mitsubishi Heavy Industries Ltd. at Shimonoseki, Japan) will be renamed
Algoscotia, Algofax, Algosar and Algoeast, respectively. Algoma Tankers
also announced that it has signed a long-term contract with Imperial Oil to
carry petroleum products. The 90 Imperial Oil employees involved with the
ships will be offered work at Algoma Tankers.

Royal Olympic Cruise takes over two ships, sells third

Royal Olympic Cruise/Epirotiki-Sunline has bought the Awani Dream
(Panamanian-registry 2,930-dwt passenger ship built in 1966) and the Awani
Dream 2 (Panamanian-registry 2,642-dwt passenger ship built in 1975) from
Awani Cruise Line, a venture led by Awani Modern Hotels, reportedly for
U.S.$35 million. The Awani Dream will take its former name of World
Renaissance and the Awani Dream 2 will become the Olympic Countess, similar
to its original name, Cunard Countess. Meanwhile, the Olympic
(Greek-registry 8,912-dwt, 900-berth passenger ship built in 1956) has
been sold, possibly to U.S. interests.

J. Lauritzen to charter two new refrigerated ships

J. Lauritzen will charter two new refrigerated ships from Fukujin
Kaishin K.K. for five years. The 17,400-cubic-meter/580,000-cubic foot
ships will fitted with two 36-ton cranes and will carry up to 90 TEUs.
Service speed will be 21 knots. The ships will be delivered by Shin
Kurushima Dockyard Co. Ltd. in fall and early next year.

Gorthon Lines in sale

Gorthon Lines has sold its two oldest ships.

Brisbane Star renamed

The Brisbane Star (25,254-dwt containership built in 1978, operated by
Blue Star Line Ltd.) was renamed the Singapore Star in Melbourne,
Australia, on 11 Dec.

VESSEL CASUALTIES

Fifteen missing near the Canary Islands

Fifteen Moroccan citizens are missing after their fishing vessel sank
off Spain's Canary Islands on 1 Jan.

Oak sends last official SOS message

The Oak (Bahamian-registry 13,000-gt, 21,951-dwt,
155.22-meter/509.25-foot motor bulk carrier built in 1981, operated by
Diana Shipping Agencies S.A.) broadcast a Morse Code (CW) SOS message late
31 Dec., 1,260 kilometers/790 miles west of Ireland. Official use of Morse
Code formally ended 1 Jan. The Oak was sailing from Canada to Liverpool,
England, with a crew of 26 Greek and Philippine citizens when its cargo of
wood shifted in a storm and the ship lost power. Winds of Beaufort Force
10, 48 to 55 knots, were reported. The crew jettisoned between 300 cubic
meters/390 cubic yards and 400 cubic meters/520 cubic yards of its lumber
cargo overboard after the ship developed a 40 degree list and the vessel
lost power. The Oak's 500 Kilohertz message was heard by Bob Baker at
Stonehaven Radio/GND in the United Kingdom and relayed to the British Coast
Guard at Falmouth, England. The signal was received from at Landsend
Radio/GLD. "We haven't had a Morse distress message for years," said Gerry
Wood, a Coast Guard spokesman. "It was almost too perfect." Oak's message
stated "SOS. SOS. This is Oak. Position 53 16 N, 24 59 W. Stop engine. We
need assistance." The broadcast of an Emergency Position Indicating Radio
Beacon (E.P.I.R.B.) was also picked up. The Anglian Prince (St. Vincent and
the Grenadines-registry 1,455-dwt tug built in 1980, operated by Klyne Tugs
(Lowestoft) Ltd.) brought the ship to the Gladstone Dock in Liverpool on 4
Jan.

Seventeen rescued from ship aground off Taiwan

The 17 crewmembers of the Amanah were rescued by helicopters late 4
Jan. after the ship ran aground off Keelung, Taiwan. Both engines aboard
the ship failed. Four crew were rescued initially with the rest seven hours
later at dawn. Eight crew are Indonesian citizens; four, including the
master, are citizens of South Korea; three are Malaysian citizens and two
are from China. The ship arrived at Keelung 2 Jan. from Japan and was
leaving port in a storm when the engines failed. Some fuel has spilled from
the ship, polluting a water coolant system for a thermal power plant
nearby. One generator was slowed to prevent any damage.

Crew of Spanish-registry trawler rescued during storm

The Sonia Naci (Spanish-registry trawler) sent out a distress call on
4 Jan. after it lost power in a storm with winds of Beaufort Force 11, 56
to 63 knots, and seas of more than 12 meters/40 feet. It was taken in tow
by the fishing vessel Mapescal but the tow parted 320 kilometers/200 miles
southwest of Land's Head, England. The Sonia Naci reported its position as
48 degrees 36 minutes north, 11 degrees 02 minutes west and a British Royal
Air Force Nimrod MR Mk 2P from No. 18 Group at Royal Air Force Kinloss in
Grampian, Scotland, dropped two liferafts but the Sonia Naci could not
reach them. A French-registry containership reached the area but also was
kept from reaching the Sonia Naci. The 10 crewmembers (nine Spanish and one
Irish citizen) were later rescued by two Royal Air Force helicopters. One
helicopter crewmember sustained slight injuries when he hit the side of the
trawler while being lowered. The helicopters reported that water was
breaking over the stern due to engine room flooding.

More on explosion aboard the Lancer

The Lancer (Bahamian-registry 14,967-gt, 23,093-dwt chemical tanker
built in 1975, owned by a Greek interests and operated by Multi Trade Ship
Management) exploded and caught fire at 2020 1 Jan. in Argentina's Parana
River. The 33 crew, Greek and Philippine citizens, jumped overboard but
two, Ross Bago, 22, and Margarito Maranga, 44, are missing. Estavros Mella,
a 35-year-old Greek citizen, was hospitalized with head injuries. At last
report, the Lancer had two small fires still burning and was beached
outside Campana, Argentina. It was carrying 4,500 tons of industrial
alcohol to San Lorenzo, Argentina. Containment booms have been installed
around the area. The explosion occurred near the ship's prow.

Desalination plant in United Arab Emirates closed by oil spill

A tank barge spilled an estimated 4,000 tons of fuel oil after it ran
aground late 7 Jan., eight kilometers/five miles off Ajman, United Arab
Emirates. The barge grounded in high winds. Due to the spill, measuring
eight kilometers/five miles by three kilometers/two miles, a water
desalination plant in Ajman has been closed. The plant serves the 90,000
people of the emirate. At last report, the 11,000-ton capacity barge was
flooding. A tug towing the barge has been arrested in the country.

Filomena Lembo suffers fire

The Filomena Lembo (Italian-registry 29,498-gt, 51,293-dwt motor
tanker built in 1984, operated by Trader Navigation) had an engine room
fire at 0014 8 Jan. at 42 degrees 11 minutes north, 28 degrees 42 minutes
east, in the Black Sea. It has been extinguished but damage is unknown.

Ro/ro severely damages barge in Baltimore collision

On 30 Dec., the Hual Rolita (12,169-dwt, 180-meter/590-foot ro/ro
built in 1980, operated by Interocean Ugland Management A/S) lost control
while backing down in Baltimore and hit a crane barge. The barge was
severely damaged as it became tangled in the ship's stern ramp. The crane
fell into the harbor. The Hual Rolita has been allowed to proceed.

School of herring sinks trawler off Norway

A school of herring is being blamed for sinking a 19-meter/63-foot
fishing vessel off northern Norway. The trawler Steinholm attempted to
bring aboard a large net of fish when the herring swam for the bottom and
capsized the vessel, according to the Norwegian newspaper Dagbladet on 6
Jan. The six crew tried to cut the net loose but were forced to abandon the
vessel. The Steinholm sank in 10 minutes and the crew were rescued by
another trawler.

Stena Line ferry damaged by rough weather

The same storm system that affected the Sonia Naci (see above) also
damaged the Stena Discovery (Dutch-registry 1,500-dwt catamaran ferry built
in 1997, operated by Stena A.B.) sailing from Harwich, England to Hook of
Holland, the Netherlands, on 4 Jan. The vessel lost panels from its bow and
several vehicles aboard were damaged. None of the 900 passengers were
injured. The vessel has been withdrawn from service for repairs.

Intracoastal Waterway collision in Texas damages tugs

On 25 Dec., two tugs, the Casey C and the Lisa C, collided at a bend
in the Intracoastal Waterway, 37 kilometers/23 miles west of Sabine, Texas.
The Casey C, pushing four barges of coal, had a punctured hole in the bow.
The Lisa C, pushing two red-flagged barges, suffered substantial damage to
its port bow rake above the waterline.

Tanker undamaged after grounding off Torquay

The Santa Anna (Panamanian-registry 22,600-gt, 27,648-dwt tanker built
in 1974, operated by Fairdeal Group Management S.A.) ran aground stern
first the night of 1 Jan. on rocks off Torquay, England, near Hope's Nose.
About 250 tons of fuel were transferred among the ship's tanks to prevent a
spill and eight of the 21 cargo tanks were reportedly damaged. The Santa
Anna developed a 10-degree list before 270 tons of intermittent fuel oil
and 50 tons of diesel were pumped to other tanks. The vessel was refloated
later the same day by the Far Minara (British-registry 1,968-dwt tug built
in 1983, operated by Farstad Shipping Ltd.). The Marbella (factory trawler
built in 1989, operated by Marr Vessel Management Ltd.) put a line aboard
the Santa Anna until the tug arrived. The Santa Anna dragged anchor in
Beaufort Force 10 weather and later anchored near Berry Head near Brixham,
England, where propeller and rudder damage was found. Howard Smith is
handling salvage. The Santa Anna had initially hit Thatcher Rock and was in
ballast. None of the 29 crew were injured.

Sea-Land Service, Mediterranean Shipping vessels in Felixstowe collision

Two containerships have received light damage after they collided at
Felixstowe, England, the afternoon of 4 Jan. The Newark Bay (U.S.-registry
59,810-dwt, 4,500-TEU containership built in 1985, owned and operated by
Sea-Land Service Inc.) hit the MSC Insa (Panamanian-registry 35,229-dwt,
2,400-TEU containership built in 1972, operated by Mediterranean Shipping
Co.) after bad weather parted tow lines to the Newark Bay has it was
berthing. The MSC Insa, already at a berth, was pushed in a mudbank. There
were no injuries or pollution and no cargo was damaged. Damage is
apparently limited to light external hull damage. The Newark Bay is part of
Sea-Land Service's Vessel Sharing Agreement with Orient Overseas Container
Line and P&O Nedlloyd Container Line Ltd.

Bulk carrier grounds in Parana River

The Trias (Greek-registry 22,649-gt, 38,568-dwt, 223-meter/730-foot
motor bulk carrier built in 1977, operated by Tomazos Shipping) ran aground
at Kilometer 77 in the Martin Garcia Channel of Brazil's Parana River on 4
Jan. The ship was sailing with 10,346 tons of wheat from San Lorenzo,
Argentina, to Paranagua, Brazil. It was refloated by tugs 6 Jan.

Manya anchors in Humber River after cargo shifts

The Manya (St. Vincent and the Grenadines-registry 1,069-gt, 1,205-dwt
general cargo ship built in 1967, operated by Horst Moller KG) anchored in
England's Humber River after its deck cargo of timber shifted the morning
of 7 Jan. while sailing to Medway, England. The ship took on a list of 15
to 20 degrees.

Multitank Bahia suffers engine failure

The Multitank Bahia (Liberian-registry 3,726-gt, 5,800-dwt chemical
tanker built in 1996, operated by Chr. F. Ahrenkiel) had a complete
propulsion failure on 4 Jan. at 53 degrees 28.7 minutes north, 00 degrees,
53.7 minutes east. The ship was sailing to Immingham, England, with caustic
soda and was towed to the port by the Lady Debbie (318-dwt tug built in
1978, operated by Howard Smith (United Kingdom) Ltd.).

Karla towed to port with engine damage

The Karla (Panamanian-registry 3,916-gt general cargo ship) was towed
to Bilbao, Spain, on 5 Jan. by the Spanish-registry motor tug Ibaizabal II
with engine damage.

Update on Merchant Patriot

The Merchant Patriot (Hong Kong-registry 17,028-gt, 21,310-dwt,
150-meter/493-foot general cargo ship built in 1980 by Scotts Shipbuilding
and Engineering Co. at Greenock, Scotland; operated by Cenargo Ltd.) was
last reported to be under tow by the tugs Maasbank (Dutch-registry 150-dwt
tug built in 1987, operated by Smit Harbor Towage Co.) and Samand to
Freeport, the Bahamas. The ship began flooding 30 Dec., 496 kilometers/310
miles east of Cape Canaveral, Fla. Weather conditions included seas of up
to 6.1 meters/20 feet and winds gusting to 50 knots. The crew of 28 jumped
overboard after the ship's lifeboat was knocked off the stern and weather
conditions ruled out helicopter hoists from the ship's deck. Two U.S. Air
Force Reserve and three U.S. Coast Guard helicopters rescued the crew and
took them to Marsh Harbor, Great Abaco Island, the Bahamas. The Merchant
Patriot was sailing from Praia Mole, Brazil, to Savannah, Ga., with
containers and steel project cargo.

Crowley Maritime hired to refloat the Kuroshima

Crowley Maritime Corp. has been hired to refloat the Kuroshima
(Panamanian-registry 4,160-gt, 4,845-dwt, 81.7-meter/268-foot refrigerated
ship built in 1988, owned by Kuroshima Inc. and operated by Fukuoka Zosen
K.K.). The ship had anchored off Dutch Harbor, Alaska, and was to load
seafood when its anchor dragged in 98-knot winds and seas up to 6.1
meters/20 feet. On 26 Nov., the ship ran aground on Second Priest Rock off
Dutch Harbor. Two Philippine crewmembers from Manila, Michael Valdellon,
46, the chief officer, and Benito Gestosani, 36, the bosun, were killed
while the 16 other crewmembers were rescued after a lifeboat was pulled to
shore by a line fired to the ship. The two killed were sent forward with a
third crewmember to lift the anchor when a wave hit the Kuroshima. The
third man, Juanito Cuerquez, 30, from Manila, fell onto the deck below and
suffered a fractured hip. The master and chief engineer are Japanese
citizens with the rest of the crew from the Philippines. Ruptured fuel
tanks spilled 148,200 liters/39,000 gallons of Bunker C fuel. About 19,000
liters/5,000 galons was left aboard for use in propulsion during the
refloating. At last report, Crowley Maritime was waiting for favorable
weather to refloat the Kuroshima, using its American Salvor (U.S.-registry,
64.9 meters/213 feet long). Magone Marine Services is assisting. The ship
will then be towed to Dutch Harbor for temporary repairs. It is estimated
that U.S.$2.2 million has been spent so far on salvage.

More on damage to Jean Parisien

The Jean Parisien (33,309-dwt, 22,772-gt, 16,351-nt,
223-meter/730-foot motor bulk carrier built in 1977 by Davie Shipbuilding
Ltd. at Lauzon, Levis, Quebec; operated by Canada Steamship Lines Inc.) was
damaged late last year in the St. Lawrence River below the Escoumins pilot
station in Quebec. The ship was sailing eastbond for Sept-Iles, Quebec,
with coal when a Kort nozzle's rudder stock broke and the nozzle fell into
the propeller. Though with little or no steering and a damaged propeller,
the Jean Parisien continued to Sept-Iles with tugs and then laid-up in
Quebec.

MSC Rosa M released by salvor

The MSC Rosa M (Cypriot-registry 20,418-gt, 20,185-dwt, 1,050-TEU
containership and ro/ro built in 1978 by Fincantieri Cantieri Navali
Italiani SpA in Italy, owned and operated by Mediterranean Shipping Co.)
which was abandoned 32 kilometers/20 miles off Cherbourg, France, on 30
Nov., has been handed over to its owners by the ship's salvor, Les Abeilles
International, after a 20-day operation. A French Dauphin helicopter and a
British Coast Guard Sea King helicopter rescued the 32 crew at 49 degrees
53 minutes north, 01 degrees 17 minutes west near Barfleur Point, France.
Weather included Beaufort Force 5 or 6 conditions, with two-meter/6.5-foot
seas. Twenty-seven crewmembers were flown to the Meleri (Maltese-registry
31,645-dwt bulk carrier built in 1975, operated by Eastern Mediterranean
Maritime Ltd.) and five were injured. The ship had a severe list when the
Abeille Languedoc (French-registry 1,550-dwt motor tug built in 1979,
operated by Les Abeilles) arrived after a Lloyd's Open Form was signed with
Mediterranean Shipping. The cargo had shifted and the master and four
others later returned. The ship was denied entry to Cherbourg for fear it
would sink. Instead, the MSC Rosa M was beached at Bequet, France, and on 1
Dec., the ship was refloated with a 16-degree list and towed to Le Havre,
France, where its cargo was unloaded. At least one container was lost.

Court allows claims by relatives of three killed in loss of the Dystos

A court in Piraeus, Greece, has upheld claims for compensation for
relatives of three of the 20 killed in the capsizing of the Dystos
(Greek-registry 6,197-dwt bulk carrier built in 1972, converted to a cement
carrier in 1985; operated by Heracles Shipping Co. and owned by AGET Cement
Group). They sued AGET Cement Group for negligence in failing to maintain
the vessel. The Dystos capsized 28 Dec., 1996, off Kimi, Evia Island,
Greece, in bad weather and sank 2 Jan., 1997. Seventeen crewmembers and
three relatives aboard were killed. One person survived. The ship was
carrying 5,300 tons of cement from Volos, Greece, to Piraeus.

Green Opal salvage underway

After two weeks of work, about 850 tons of steel billets have been
recovered from the Green Opal (Panamanian-registry 6,176-dwt bulk carrier
built in 1976, operated by Dooyang Line Co. Ltd.) by Tsavliris Salvage
(International) Ltd. The ship sank in the Hooghly River, 40 kilometers/25
miles east of Calcutta, India, on 19 June after colliding with a tug towing
a barge. All 20 crew were rescued. The ship was sailing to Keelung, Taiwan,
with 7,000 tons of steel coils and billets.

CORRECTION

Contrary to information last week, the Pacific Mattsu
(Philippine-registry 16,401-gt, 26,467-dwt bulk carrier built in 1996) has
not been operated by Anglo-Eastern Ship Management Ltd. since November. The
ship ran aground 31 Dec. after it hit a rock leaving Lumut, Malaysia, at 04
degrees 07.2 minutes north, 100 degrees 33.6 minutes east. The ship's
double-bottom tank was damaged but the Pacific Mattsu refloated 1 Jan.

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

British stations end Morse Code use

As noted above, official use of Morse Code (CW) ended 1 Jan., but not
before several British radio stations communicated final messages,
including an SOS message from a ship in the Atlantic Ocean (see above).
Several retired radio officers were present at the stations. As recounted
by Robert Dixon, Graham Mercer at Portpatrick Radio/GPK began the messages,
followed by stations EJM (specially resurrected for 500 Kilohertz use for
the occassion), EAC, OST, EAO, SAA, SPE, OXZ, IAR, VCM, GKR, GCC, GLD and
others. Graham keyed: "In 1844 QTC nr1 fm Samuel Morse was what had God
wrought? All R/O's now ken the answer to this." Wick Radio/GKR's message
came from Tom McLennan, a retired radio officer, along with current officer
Tony Fell. Cullercoats Radio/GCC's final message came Bob Baker at
Stonehaven Radio/GND, who had control of GCC. Others involved were John
Chappell at at Landsend Radio and retired radio officer Peter Howe, who was
present at Portpatrick Radio. The last British Morse Code came shortly
after midnight: "GLD de GPK 73 David, lets hope GMDSS is as gud + 73 de
GPK," to which came the reply "GPK de GLD ok, gud luck Graham + GLD nw
QRT." Portishead Radio/GKA, operating in high-frequency, continues to
retain a Morse Code capability.

Several messages were reportedly received from ships at sea who had
heard the final messages, noting the passing of an era. Landsend
Radio/GLD's final broadcast by David Nancarrow included: "But now the time
has come, ours is not to reason why, the satellites are calling, our Morse
transmissions die...Marconi, if you can hear us, we salute you."

Florida schools to track polar icebreakers on upcoming voyages

The U.S. Coast Guard has linked-up with two Florida schools to bring
an expedition to the polar regions to students via the Internet. Through a
joint venture between the U.S. Navy's Helicopter Training Squadron Eight at
U.S. Naval Air Station Pensacola, Fla., and the Coast Guard's Polar
Operations Flight Division, students at Hobbs Middle School in Milton,
Fla., and S.S. Dixon Elementary School in Pace, Fla., will be able to track
two icebreakers and interact with their crews.

The squadron, through an "adopt-a-school" program, worked last year to
complete the installation of a computer network to link all of its partner
schools on the Internet. Cmdr. Bruce Watson, the commanding officer of
Helicopter Training Squadron Eight, became aware of a Navy program in which
students are linked by the Internet to the Navy ship named after their
hometown. The Navy's Anchorage-class Dock Landing Ship U.S.S. Pensacola
(LPD 38) said it was willing to participate with local schools, but given
an extended maintenance period, would not be sailing until spring.

Instead, Lt. Troy A. Beshears, a Coast Guard instructor with
Helicopter Training Squadron Eight, and Lt. Claudia McKnight, a Coast Guard
Polar Operations Aviation Maintenance Officer, have worked to create a
program in which the schools will interact, using the Internet, with the
U.S.C.G.C. Polar Star (WAGB 10) and the U.S.C.G.C. Polar Sea (WAGB 11).
During upcoming voyages to the Arctic Circle and Antarctica, students will
be able, using electronic mail and real-time discussion, to track the ships
and learn about their operations and research. At the same time, classroom
work, such as science experiments and social studies, will be linked with
the ships. Students will learn about cultures of the people at different
ports of call, biology of the polar regions and so on.

Each school has decided to send a mascot to accompany McKnight on the
voyage. The crews of the icebreakers have promised to take photographs and
video of the mascots in different countries and "helping" with various
research. The mascots will return with awards and certificates given to
each member of the icebreaker's crew. Finally, the students of Hobbs Middle
School have made a time capsule that will be left at McMurdo Station in
Antarctica. It will be retrieved and returned to the school in 10 years.

For further information, go to www.wenet.net/~uscg.
---------------------------------------------------------------------------

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 not changed from that used
in the World Maritime News. If in doubt, please ask. Although every effort
has been made to verify the accuracy of the information presented, I do not
assume any liability arising from its use.

Edited from information distributed by: Anchorage (Alaska) Daily News;
Dagbladet (Norway); De Financiele Telegraf (the Netherlands); El Universal
(Venezuela); Fairplay Publications Ltd.; Great Lakes Vessel Passage
(www.oakland.edu/boatnerd) and the Lake Carriers' Association, the Marine
Historical Society of Detroit, Neil Schultheiss and the St. Lawrence Seaway
Authority; Het Financiele Dagblad (the Netherlands); Hong Kong Shipping
Gazette; Khaleej Times (United Arab Emirates); LLP Ltd. including
BunkerNews Daily, Lloyd's List, Lloyd's List Energy Daily and Lloyd's List
Insurance Day; media releases; Mersey Shipping News; Miami Herald; news
services including Agence France-Presse, Athens News Agency, Bernama,
Bloomberg News, Business Wire, Canadian Press, Comtex, Kyodo News
International, M2 Presswire, PR Newswire, RFE/RL Newsline, Rompres,
Reuters, Telam, The Associated Press, United Press International, WAM and
Xinhua/New China News Agency; Singapore Press Holdings Ltd. including
Singapore Shipping Times; Sunday Observer (Sri Lanka); The Journal of
Commerce; the U.S. Coast Guard; and Verdens Gang (Norway).

Special thanks to Robert Dixon, Russell A. Priest and Lt. Cmdr. Jeffrey C.
Robertson and Lt. Troy A. Beshears of the U.S. Coast Guard.

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 - Whitefish Bay, Wis., U.S.A. - 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