World Maritime News - 12 Dec., 1997

[Steve Schultz]

World Maritime News - 12 Dec., 1997
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BUSINESS

Halla Group collapses under debt, declares bankruptcy

Halla Group, South Korea's 12th largest conglomerate, or chaebol,
collapsed 6 Dec. after it was declared bankrupt. The firm defaulted on 550
billion South Korean won/U.S.$320 million in short-term debts over two
days. Payment was due 2 Dec. but postponed to 5 Dec. Among Halla Group's 16
companies is Halla Engineering & Heavy Industries Ltd., the third largest
South Korean shipbuilder, and Halla Merchant Marine Co. Ltd., a shipping
firm that is one of the largest operators of dry bulk vessels. Halla Group
could not obtain funding as banks refused to provide new loans due to
financial measures necessary so South Korea could receive assistance from
the International Monetary Fund. The conglomerate owes 9 trillion
won/U.S.$5.3 billion, some 20 times its equity. Debts began accumulating
after Halla Engineering & Heavy Industries built a new shipyard on the
southwestern coast in 1992. On 26 Nov., Halla Engineering & Heavy
Industries said it would cut half of its 6,055 employees. Hyundai Group,
the largest chaebol, has provided funding to Halla Group over the past
several months but said 6 Dec. that it would stop. Halla Group will try to
secure court receivership for Halla Engineering & Heavy Industries and
Halla Merchant Marine. Halla Group had a turnover last year of 5.2 trillion
won/U.S.$3.1 billion with total assets of 6.62 trillion won/U.S.$3.89
billion and debts of 6.47 trillion won/U.S.$3.80 billion. Its debt to
equity ratio was 1.985 percent.

Among Halla Engineering & Heavy Industries facilities is a shipyard at
Mokpo, South Korea, which opened in early 1996 and is the fourth largest
shipyard in the world. It has orders for 42 ships, most for foreign owners
over the next two years. They include one 4,000-TEU and two 3,400-TEU
containerships for European owners, two 40,000-dwt product tankers for
Osprey Maritime Ltd. and several product and crude oil tankers and Panamax
bulk carriers. Halla Engineering & Heavy Industries had a turnover last
year of 1.15 trillion won/U.S.$882 million, assets of 2.13 trillion
won/U.S.$1.25 billion, capital of 31 billion won/U.S.$18 million and debts
of more than 1 trillion won/U.S.$590 million.

Brazil ending tax breaks due to austerity measures

Brazil will end its tax breaks for shipping that were implemented
earlier this year as the result of austerity measures. Shippers were
encouraged to use Brazilian-registry ships as taxes on cargo carried on
such vessels excluded freight charges. The program will likely end 1 Jan.

Indian coastal shipping recommendation approved

The Indian Central Board of Excise and Customs has approved a
recommendation by Afzulpurkar, an Indian maritime organization, that one
customs official be assigned to each port for clearing coastal vessels and
their inspecting documents. The Indian ministries of finance and law have
to approve the change. The recommendation, in conjunction with the Indian
Ministry of Surface Transport, was made in 1993.

Seabridge Shipping sold

Advantage Life Products Inc. announced 10 Dec. that its cruise
division has signed a letter of inten to buy Seabridge Shipping Inc. for
more than U.S.$9.5 million. Seabridge Shipping is planning to start a
bi-weekly container service between Miami, Guatemala, Honduras, Nicaragua
and Panama in mid-January. The acquisition will contribute U.S.$2,920,500
in gross revenyes for Advantage Life Products next year with expected net
revenues of U.S.$809,200. Select Capital Advisors is arranging the
transaction.

Larsen & Toubro shareholders approve plan to sell shipping division

Shareholders of Larsen & Toubro have approved a plan to sell its
shipping division at an extraordinary general meeting in Mumbai, India. The
division has six Handysize and Handymax bulk carriers totaling 176,000
deadweight tons valued at 956 million Indian rupees/U.S.$26.2 million as of
31 March. Their purchase value was 2.26 billion rupees/U.S.$61/9 million.
Larsen & Toubro has rejected an offer of 1.3 billion rupees/U.S.$35 million
made for the division by Shipping Corp. of India Ltd., saying it was at
least 40 percent too low.

Loki increases stake in Mercur Tankers

Loki has doubled its stake in Mercur Tankers, which owns the largest
ship in the world, the Jahre Viking (Norwegian-registry 564,650-dwt tanker
built in 1976, operated by Jahre Dahl Bergesen).

Jury orders payment of U.S.$18.1 million spill off California in 1990

A jury in California on 8 Dec. ordered Attransco Inc. to pay U.S.$18.1
million following a spill of Alaskan crude oil in 1990. Attransco is the
owner of the American Trader, which spilled 63.8 million liters/16.8
million gallons of oil or 416,000 barrels after hitting its anchor. The
jury ruled that Attransco must pay California and the cities of Huntington
Beach and Newport Beach some U.S.$12.8 million. Beaches in the two
communities were closed five weeks and the damages were awarded for lost
recreational revenue. Another U.S.$5.3 million must be paid for damage to
the environment along 22 kilometers/14 miles of coastline. Attransco is one
of three defendents sued in 1991. BP America, which owned the oil, and
Trans-Alaska Pipeline Liability Fund have already paid about U.S.$7 million
in settlements. Golden West Refining Co. has paid another U.S.$4.5 million.
BP America spent U.S.$12 million on clean-up. Attransco's payments will be
placed in two trust accounts used to improve the water and facilities in
Huntington Beach and Newport Beach.

Ocean Chemical Carriers fined for oil dumping

Ocean Chemical Carriers Inc. has been fined U.S.$50,000 and ordered to
pay U.S.$200,000 in restitution after a ship it operated was found dumping
bilge water polluted with oil in the Atlantic Ocean in 1993. The firm was
placed on probation for two years by a U.S. federal court and also must
publish a public apology in the Tampa (Fla.) Tribune, the Maritime Reporter
and Engineering News. Peter Thorpe, master of the Frances Hammer
(U.S.-registry), earlier pleaded guilty to dumping 228,000 liters/60,000
gallons of polluted water and failed to report it. The ship's mate paid a
U.S.$5,000 fine, surrendered his license for a year and was required to
apologize in writing to the U.S. Coast Guard.

Transmediteranea strike continues

A strike by personnel of Transmediteranea, the Spanish ferry operator,
began 6 Dec.

China, United States inital naval agreement

China and the United States agreed 12 Dec. to minimize the risk of
naval accidents in the Pacific Ocean. Lt. Gen. Xiong Guangkai of the
Chinese People's Liberation Army and Walter Slocumbe, U.S. Undersecretary
of Defense for Policy, initialed the agreement in Washington. The Military
Maritime Consultative Agreement was worked out during a visit by Chinese
President Jiang Zemin to Washington last month and will be formally signed
in Beijing next month during a visit by U.S. Secretary of Defense William
S. Cohen.

Dutch Maritime Network formed to coordinate shipping interests

The Dutch Maritime Network, or Nederland Maritiemland, has been formed
to coordinate Dutch maritime interests. Niko Wijnolst, of the faculty of
Maritime Engineering at the University of Delft, has been named as
chairman. The group has received initial capitalization from the Dutch
government. Over four years, the group will form a structure of member
companies, each of which will pay a fee to join, and will work on research
into common interests. With the University of Delft, the Dutch Maritime
Network will also build Internet resources and offer members the ability to
form Internet sites.

N.Y.K. revamps container sales unit

Nippon Yusen Kaisha restructured its sales department as of 1 Dec.
Container sales are divided between the Asia Group, Europe and Oceanic
Group, North America Group and Sales Support Group.

Color Line forming freight unit

Color Line A/S will organize a new freight division.

International Court of Justice to hold hearing on Canadian/Spanish dispute

The International Court of Justice said 8 Dec. it will hold a hearing
in June on a fisheries dispute between Canada and Spain. Canada had seized
a Spanish-registry trawler in international waters off Newfoundland in a
dispute over turbot and the hearing will decide who has jurisdiction for
the case.

Mega Tankers planning issue

Mega Tankers plans to riase 375 million Norwegian kroner/U.S.$51.8
million through a share issue.

New Lloyd's underwriting for ports

A new consortium of Lloyd's of London will offer a facility to
underwrite ports and terminals.

Norway increases 1998 whaling quota

Norway has announced it has set its 1998 quota on minke whales at 621,
up from 580 this year. With 50 carried over from this year, Norway's total
1998 quota is 671.

General strike resolved in Israel

Histadrut, the grouping of Israeli labor unions, and the Israeli
Finance Ministry reached an agreement 7 Dec. to end a five-day strike by
public employees that had shut down much of the country. Close to 700,000
people struck over pensions and privatization issues and after a compromise
was agreed to, they returned to work late 7 Dec. The strike had been
caused, in part, by plans to roll back a pensions agreement made by the
previous government. Part of the deal reportedly includes cancelling plans
to retroactively tighten conditions on retirement savings plans. The
compromise was put forward by the president of the Israeli National Labor
Court. The Israel Manufacturers Association estimated that the strike cost
the economy 113 million Israeli shekels/U.S.$32 million daily. During the
strike, ports only handled passenger vessels. About 25 ships were idled at
Ashdod and 16 at Haifa.

MedCruise membership expands

Seven more ports have joined MedCruise, an association of
Mediterranean ports called by cruise lines that was formed six months ago.
MedCruise now has 32 ports from 10 countries. The new ports are: Toulon,
France; Ravenna and Taranto in Italy; a group representing ports in
Morocco; and Baleares, Malaga and Palamos in Spain.

ICB Shipping extends deal for Astro Tankers again

ICB Shipping A.B. said 10 Dec. it has again extended the deadline for
acceptance of its deal to buy Astro Tankers from Obelia Finance Co. to 15
Jan.

More on sale of Euroafrica Shipping Lines stake

Polish Steamship Co. has bought 28 percent of Euroafrica Shipping
Lines Co. Ltd. from Bank Inicjatyw Gospodarzcych, Bel Leasing Co. and
Polish Ocean Lines. Polish Ocean Lines now has 44 percent of Euroafrica
Shipping Lines, Polish Steamship has 28 percent, the employees have 7
percent and the rest is held by other shareholders. Euroafrica Shipping
Lines, formed in 1991, has 12 ships and offers sailings to Finland,
Ireland, the United Kingdom and western Africa.

Agent change for Pan-American Independent Line

Montemar S.A. Comercial y Maritima's Pan-American Independent Line
will change its U.S. general agent on 17 Dec. to Gulf & Atlantic Maritime
Services Inc.

New York places regulations on gambling vessels

At its first meeting 5 Dec., New York's Gambling Control Commission
decided that it will fingerprint and check the backgrounds of everyone
involved in operations of gambling vessels operating from the city, from
personnel who build the vessels to owners to cleaning staff. Operators will
be charged about U.S.$130 per hour. The city estimates that large vessels
will pay up to U.S.$7 million in application fees while smaller ones will
pay about U.S.$1.8 million.

Norwegian fleet increasing

Norway's nationally-owned fleet of sea-going ships has increased to
1,507 this quarter, the first time it has been over 1,500.

RINA opens Turkish office

Registro Italiano Navale (RINA) has opened a new office in Istanbul,
Turkey, to cover Georgia, Iraq and Turkey.

COSCO offices moving

COSCO Container Lines Agencies' Import and Export Documentation in
Hong Kong will move to 48/F COSCO Tower, 183 Queens Road, Central on 13
Dec. On 25 Dec., its remaining departments will move to 6-8/F CHT Tower,
Terminal 8 East, Container Port Road South, Kwai Chung.

ROUTES AND SERVICES

Hyundai Merchant Marine to join F.E.F.C.

Hyundai Merchant Marine will become part of the Far Eastern Freight
Conference on 1 Jan. It is the first conference between Europe and the Far
East that the firm has joined.

New Australia Asia Alliance formed

Malaysian International Shipping Corp. Bhd., Mitsui O.S.K. Lines,
Orient Overseas Container Line and Pacific International Lines (Pte.) Ltd.
have formed the Australia Asia Alliance, which will operate three times a
week. There will be two loops of four ships each. The Torres Express loop,
operated by O.O.C.L. and Pacific International Lines, will call at Port
Klang, Malaysia; Singapore; and Sydney, Melbourne, Adelaide and Fremantle
in Australia. The Bight Express of the other two lines will call at Port
Klang, Singapore, Fremantle, Sydney, Melbourne, Tasmania, Fremantle. The
Torres Express will operate at 18 knots and the Bight Express at 19.5
knots. Malaysia International Shipping will use three new 1,400-TEU
containerships and Pacific International Lines will use two 1,500-TEU
ships. O.O.C.L. will have two ships and Mitsui O.S.K. Lines will have one.
Operations will begin in June.

Tricon members start route early

Cho Yang Shipping Co. Ltd., DSR-Senator Lines Holdings GmbH and Hanjin
have started their weekly Pacific Northwest Express 1 service with six
2,700-TEU containerships three months early. The three were to start the
route in February but due to congestion at U.S. west coast ports, decided
to go ahead. The port rotation is Singapore on Sunday; Hong Kong on Friday;
Osaka, Japan, on Tuesday; Tokyo on Wednesday; Seattle on Friday; Vancouver,
British Columbia, on Sunday; Tokyo on Thursday; Yokohama, Japan, on Friday;
Osaka on Saturday; Hong Kong on Tuesday; and Singapore on Sunday. The
Hanjin Kaohsiung (43,925-dwt, 2,692-TEU containership built in 1990,
operated by Hanjin) left Singapore on 23 Nov., arrived at Osaka on 2 Dec.
and Tokyo on 3 Dec.

Dannebrog Rederi, Macs Maritime Carrier Shipping start new service

Dannebrog Rederi A/S and Macs Maritime Carrier Shipping have started
Gulf Africa Line, sailing between the U.S. Gulf coast and South Africa.
Three ships, the Blue Master (31,500-dwt dry cargo ship built in 1971,
operated by Macs Maritime Carrier Shipping), the Golden Isle
(Liberian-registry 31,500-dwt dry cargo ship built in 1971, operated by
Macs Maritime Carrier Shipping) and the Silverfjord (Liberian-registry
31,500-dwt dry cargo ship built in 1972, operated by Macs Maritime Carrier
Shipping), will be used. Each has box-shaped cargo holds, fully-retractable
tween decks, are geared to 25 tons and have a capacity of 1,200 TEUs. They
previously were used on the South Africa Europe service but are being
replaced by newbuildings. The initial frequency will be monthly but will
become 21 days. Calls will be made at Houston, New Orleans and the South
African ports of Cape Town, Durban and Richards Bay. The first southbound
sailing, using the chartered Alam Senang (17,056-dwt bulk carrier built in
1984, operated by Pacific Carriers Ltd.), occurred at the end of November.
The first northbound sailing, by the Silverfjord, starts in January. Weco
Agencies will handle U.S. business and Macs Maritime Carrier Shipping and
King & Sons (Pty.) Ltd. in South Africa.

Lauritzen Pacific Lines to start container service this month

Lauritzen Pacific Lines will start a dedicated container service later
this month between western South America and the western United States. It
will have a 10-day frequency and will call at Long Beach, Calif. Three
500-TEU ships will be used, each with 350 refrigerated container
connections. The first sailing will be northbound from Chile with the first
southbound ship from Long Beach in January.

Evergreen Marine reorganizes Carribean route

Evergreen Marine Corp. (Taiwan) Ltd. has reorganized its Carribean
container routes following the opening of the Colon Container Terminal at
Coco Solo, Panama. As of last month, the CAB service has split into north
and south sailings, CAN and CAS.

Sea-Land Service to offer more Puerto Rico slots?

Sea-Land Service Inc. has been denied permission by the U.S. Maritime
Administration to count actual cargo on its routes to Puerto Rico rather
than capacity and to block-out space. Instead, the service to Puerto Rico
will be counted at 75 percent of the capacity of a ship on a mixed, foreign
route. Special allowances will be made for ships temporarily withdrawn from
service. It is not clear if Sea-Land Service will be able to expand
container slots to Puerto Rico. It had wanted to increase the limit by
16,167 TEUs from its 230,612 slots, a limit met in November.

New Philippine container operator

Malayan Towage & Salvage Corp. will start domestic container
operations in the Philippines on 10 Jan. A fixed-day service will be
operated between Bataan, Manila and Marivelez. Calls will be made three
times per week with a 2,000-dwt barge that has a capacity of 144 TEUs. At
Marivelez, Malayan Towage & Salvage will use Asian Terminal Inc.'s
Marivelez Grains Terminal, which has a 40-ton container crane and four
hectares/10 acres of vacant land. The company plans to handle about 400
TEUs per month put aims for 6,000 TEUs per month by the end of its first
year.

West Coast of South America Rate Agreement grants contract extensions

Consolidators or non-vessel operating common carriers have been
granted a rate discount reprieve by the West Coast of South America Rate
Agreement to meet minimum volumes. Contracts expiring at the beginning of
the year have been extended to 30 March. Twenty-two contracts are affected.

I.P.B.C. Conference raising surcharge

The India Pakistan Bangladesh Ceylon Conference will increase its
bunker surcharge from 7 percent to 9 percent on 22 Dec.

More on "K" Line's New Tiger Express

Kawasaki Kisen Kaisha Ltd.'s New Tiger Express is being reorganized as
of January with one loop using three 972-TEU containerships. The port
rotation is Shimizu, Japan, on Monday; Tokyo on Tuesday; Yokohama, Japan,
on Tuesday and Wednesday; Nagoya, Japan, on Wednesday; Osaka, Japan, on
Thursday and Friday; Kobe, Japan, on Friday; Laem Chabang, Thailand, on
Friday; Bangkok, Thailand, on Friday to Sunday; Laem Chabang on Sunday; and
Shimizu, for a 21-day voyage. The three ships are the Siam Bridge
(Panamanian-registry 15,628-dwt containership built in 1996) and the Maenam
Bridge and the Erawan Bridge (Panamanian-registry), built in 1997. The
15-day sailing from Osaka to Bangkok will now be seven days southbound and
from 12 to 11 northbound. Shimizu to Bangkok will be 11 days instead of 13
and the return eight days instead of 14.

Changes possible at 8900 Lines

The 8900 Lines have proposed that members be able to offer individual
service contracts for the first time. A filing has been made by DSR-Senator
Lines Holdings GmbH, Maersk Line, National Shipping Co. of Saudi Arabia,
P&O Nedlloyd Container Line Ltd., Sea-Land Service Inc. and United Arab
Shipping Co. with the U.S. Federal Maritime Commission. Article 14 would be
changed to allow individual contracts which must be filed with the
agreement's essential terms publication within three business days after a
notice is received by 8900 Lines. The party on whose behalf the contract is
filed must been indicated and all parties must receive essential terms of
all contracts. A list of shippers and agreement parties will be maintained.
Notice must be filed by electronic mail with shipper's name, proposed
volume, cargoes, duration and proposed rates. A conference call must be
held in two business days between all members. Also, 8900 Lines has
proposed changes affecting it as a whole including that individual
contracts cannot extend one year and must end 31 Dec.; no contract, group
or individual, can permit or require a contract rate to be revised due to a
new tariff, new rate or favored clause; parties will not be liable under
agreement service contract terms if the agreement is dissolved during the
contract's term; rates for transport involving inland locations most be
constructed only by applicable portions published in filed tariffs with
water portions and each portion must be separately stated; contracts must
include common surchages such as bunker and currency adjustments; and
parties will be barred from participating in more than one contract with
the same shipper at the same time they involve the same cargo over the same
route, even in part.

Evergreen Marine seeks direct calls in China

Evergreen Marine Corp. (Taiwan) Ltd. is seeking approval from China
for direct calls at Chinese ports on its trans-Pacific and Asia - Europe
container routes. Evergreen Marine wants to make direct calls at Yantian on
its trans-Pacific service and a Qingdao and Shanghai on its Asia - Europe
route.

Hyundai Merchant Marine selects start date for Asian service

Hyundai Merchant Marine's fixed-day weekly service with Nippon Yusen
Kaisha and Siam Paetra International Co. will start 24 Dec. The addition
comes as the service is shifting to two weekly services on two loops. The
New Phoenix service, with three 1,141-TEU containerships, will call at
Osaka on Wednesday; Kobe, Japan, on Wednesday and Thursday; Hakata, Japan,
on Friday; Ho Chi Minh City, Vietnam, on Thursday and Friday; Laem Chabang,
Thailand, on Sunday; Bangkok, Thailand, from Sunday to Tuesday; Laem
Chabang on Tuesday; Manila, the Philippines, on Saturday; and Osaka. The
New Clipper service will use three 1,048 - 1,228-TEU containerships with a
round trip of 21 days. Calls are Tokyo on Wednesday; Nagoya, Japan, on
Thursday; Shimizu, Japan, on Friday; Yokohama, Japan, on Friday and
Saturday; Laem Chabang on Saturday; Bangkok from Saturday to Monday; Laem
Chabang on Monday and Tuesday; and Tokyo.

More on Safari service

The Safari service's new schedule will commence 5 Jan. with the
departure of the containership Osaka from Yokohama, Japan. It will have a
schedule of 63 days. See World Maritime News for 5 Dec. for more
information.

Grimaldi Group names Cork agent

Express Shipping Ltd. has been named as Grimaldi Group's port agent
and stevedore at Cork, Ireland. Grimaldi Group will offer what is said to
be Ireland's first direct ro/ro route to northern Europe and the
Mediteranean in January. A 10-day service will be offered at first with the
Fides (35,000-gt, 16,806-dwt ro/ro built in 1993) and the Spes (35,000-gt,
17,345-dwt ro/ro built in 1993 and the service will become weekly when
additional ships join in the route later next year. Calls include Ashdod,
Israel; Limassol, Cyprus; Piraeus, Greece; and Barcelona, Spain. The
general agent in Ireland is Ocean and General Maritime Agencies.

CANALS, PORTS AND STRUCTURES

Report on 1996 spending by U.S. public ports released

The U.S. Maritime Administration's U.S. Port Development Expenditure
Report, released recently, said that U.S. public ports spent U.S.$1.3
billion last year on capital expenditures. The figure is a decrease of 7.4
percent from 1995's U.S.$1.4 billion. Ports in California, including Long
Beach, Los Angeles, Oakland, Redwood City, Sacramento, San Diego, San
Francisco and Stockton, spent the most at a total of U.S.$642.9 million or
49.5 percent of the total. In second were Pacific Northwest ports such as
Bellingham, Everett, Longview, Olympia, Seattle, Tacoma and Vancouver in
Washington and Portland, Ore. They spent U.S.$241.2 million or 18.5 percent
of the total. Next were ports in the southeast such as Georgia, North and
South Carolina, Virginia and Florida ports including Miami, Palm Beach,
Port Canveral and Port Everglades, which spent U.S.$140.9 million or 10.8
percent. Gulf ports were next including Alabama; Florida including
Pensacola and Tampa; Louisiana ports including Baton Rouge, Lafourche, New
Orleans and Saint Bernard; Mississippi including Pascagoula; and Texas
ports such as Beaumont, Corpus Christi, Freeport, Galveston, Houston and
Port Arthur, with U.S.$134 million or 10.3 percent. Forty-one percent of
spending was for specialized general cargo facilities compared to 28.8
percent a year before.

China Harbor Engineering Group formed

At a ceremony in the Great Hall of the People in Beijing on 6 Dec.,
the Chinese government formed China Harbor Engineering Group. The new firm
includes China Harbor Engineering (Group) Co. and 10 subsidiaries, with
assets of 17.2 billion Chinese yuan/U.S.$2.10 billion and at least 800,000
employees. The 10 subsidiaries include more than 700 companies previously
operated by the Chinese Ministry of Communications. According to the group,
it has built all major ports in China including more than 40 ports and 430
berths since 1981.

Maltese ports stopped by action of trucking companies

A work stoppage by rucking companies in Malta began 5 Dec. after they
said they would not handle cargo to and from Maltese ports until procedures
for domestic cargo at Malta Freeport are improved. Following an agreement,
work resumed the night of 10 Dec. The action was ordered by the Association
of General Retailers and Traders, which said that Malta Freeport was not
giving enough importance to domestic cargo and did not provide enough
equipment which therefore caused delays. The action was to spread to
Valletta on 10 Dec. Under the agreement, a new system for processing cargo
will be introduced 15 Dec. and a joint committee will monitor its
implementation.

Australian debate over alledged "flying squad" of dockworkers

The Australian government has denied claims that it is organizing what
has been reffered to as a dockworkers "flying squad" using military
personnel. Reports have said that up to 70 people have been hired by
Fynwest Pty. Ltd. and have been sent to Dulsco Marine Services at Port
Rashid in Dubai, United Arab Emirates, where they will be trained as
dockworkers. On 28 Feb., they will return to Sydney, Australia, for three
weeks of additional training. The group will then instruct as many as 180
personnel in a hangar-type structure in New South Wales on a seven-day,
three-shift basis. Folowing training and "successful application of
workplace operations" by June, personnel will receive
Australian$20,000/U.S.$13,300 of an A$25,000/U.S.$16,700 hardship bonus,
which is in addition to A$46,000/U.S.$30,700 to A$60,000/U.S.$40,000 in
salary plus overtime. According to Fynwest, the company was contracted by a
foreign consortium to recruit dockworkers for work in Southeast Asia but
not Australia. Some sources have suggested this is CTMS Ltd. However, an
advertisement appeared in the official Royal Australian Army newspaper,
Army News, and said that dockworkers may work at the Australian ports of
Brisbane, Melbourne, Perth and Sydney. All of those hired have reportedly
signed an Australian Workplace Agreement. Opposition political parties have
said that the group will be used to operate ports when labor union strikes
occur, hence the "flying squad" label, and will act as strike breakers. The
group has also been referred to as "industrial mercenaries." The two top
management personnel of Fynwest are former Australian military personnel
with extensive backgrounds in that field. It has been confirmed that 27
Royal Australian Army and two Royal Australian Air Force personnel have
been recruited by Fynwest. The government has allowed them to be trained
while on leave without pay, long-term leave or leaves prior to discharge.
On 12 Dec., there were reports that the Australian government had disclosed
plans to form a non-union stevedoring company.

Strike averted in South Africa

The Maritime Industries Trade Union of South Africa has signed an
agreement with Transnet to avoid a strike.

Santos remains idled by strike

At one time, at least 50 vessels have been waiting to enter the Port
of Santos, Brazil, recently and another 24 were docked with only four being
worked. Members of the Santos Port Operatives Union went on strike 27 Nov.
to protest the fact that vessel inspectors have not been paid and to seek
access to new jobs. Alianca Line, Columbus Line and Ivaran Lines shifted
the Alianca Flamingo and the Alianca Copacabana to Rio de Janeiro, Brazil,
as a result.

P&O Nedlloyd Container Line sells stake in Europe Combined Terminals

Royal Nedlloyd N.V. has bought a 30.56 percent stake in Europe
Combined Terminals from P&O Nedlloyd Container Line Ltd. for U.S.$100
million. The stake had been brought into the line by Royal Nedlloyd's
container operations.

First Kwangyang berths dedicated

Berths constructed during the first phase of building at the Port
Kwangyang, South Korea, were dedicated 5 Dec. Under a 516.9 billion South
Korean won/U.S.$303.9 million project, the first phase involved building
five 50,000-ton container berths that can handle 960,000 TEUs annually.
There is a 1,400-meter/4,600-foot breakwater and port facilities covering
838,000 square meters/1.01 million square yards with eight post-Panamax
container cranes. Cho Yang Shipping Co. Ltd., Hanjin, Hyundai Merchant
Marine and Korea Express Shipping Co. Ltd. invested 50 billion won/U.S.$29
million and will each have a berth reserved for their exclusive use. The
second phase, begun in 1995, involves four 50,000-ton container berths and
four 20,000-ton container berths for 552.7 billion won/U.S.$325.0 million.
They will be completed by 2001. The final stage, by 2011, will cost 1.1
trillion won/U.S.$650 million for 12 50,000-ton container berths which will
handle 2.88 million TEUs annually.

Western Australia planning development at Perth

Western Australia has announced plans for a maritime development at
Perth worth Australian$100 million/U.S.$67 million.

Maersk Line, PSA take stake in Indian port

Maersk Line and PSA Corp. have taken a 26 percent equity stake in the
Port of Gujarat Pipavav, India.

P&O Australia Ports sells part of Indian port stake

P&O Australia Ports Ltd. has sold part of its stake in the Port of
Vadhavan, India, to Industrial Credit and Investment Corp. of India.

FastShip Atlantic reportedly chooses Cherbourg

FastShip Atlantic has reportedly chosen Cherbourg, France, instead of
Zeebrugge, Belgium, at which to build its European container terminal.
FastShip Atlantic plans to operate four containerships in the Atlantic
Ocean that would sail between Philadelphia and Cherbourg in four days.
Cherbourg will spend 470 million French francs/U.S.$80 million to 530
million francs/U.S.$90 million to build a terminal and up to 590 million
francs/U.S.$100 million for rail and road access. The firm expects to spend
more than U.S.$685 million on the high-speed 1,432-TEU vessels. The first
will be delivered in late 2000 with the remainder every three months.

Hyundai Merchant Marine adds to terminal at Tacoma not yet built

Hyundai Merchant Marine will add four hectares/10 acres to its West
Blair Terminal at the Port of Tacoma, Wash. The addition will add
U.S.$650,000 to port revenue annually. A 24-hectare/60-acre container
terminal will be in place by November 1999. Hyundai Merchant Marine has
options for another 10 hectares/40 acres.

Japanese bussiness group to study Chinese terminal proposal

Chang Jiang Development Co-ordinating Committee, a group of 110
Japanese businesses, has accepted a proposal by the Chinese government to
build a container terminal near Chongqing, China. The proposal was made at
the Japan - China Joint Conference in Tokyo and involves a joint venture.
Ten members of the committee have agreed to study the proposal. The
terminal would be able to handle 50,000 TEUs at once.

Australian port to expand coal terminal

The Port of Gladstone Authority, Australia, is expanding its RG Tanna
Coal Terminal. It will be able to stockpile 3.9 million tons after work
worth Australian$8.5 million/U.S.$5.9 million.

Portsmouth to get funding for study

Portsmouth, England, will receive funding worth about 100,000 British
pounds/U.S.$170,000 from the Trans European Network for a feasibility study
involving a fifth berth. The funding is 30 percent of the total cost.

Yangming Marine Transport forming Kaohsiung stevedore

Yangming Marine Transport Corp. will form Hung Ming Terminal and
Stevedoring Co. to operate Pier 70 at the Port of Kaohsiung, Taiwan. It
will handle 700,000 TEUs annually.

Associated British Ports Holdings announces initial savings

Associated British Ports Holdings said it has realized 5 million
British pounds/U.S.$8 million in savings in its first stage of a strategic
review.

Manila handling rates to rise

Cargo handling rates at Manila International Container Terminal and
South Harbor in Manila, the Philippines, will increase 20 percent next
month.

St. Lawrence Seaway lock briefly suspends operations

The Iroquois Lock in the St. Lawrence Seaway was briefly closed 7 Dec.
after a problem involving the anchor of the Sevilla Wave (Cypriot-registry
26,858-dwt, 183.08-meter/600.67-foot motor bulk carrier built in 1986,
operated by Teo Shipping Corp.).

Salalah Port Services arranges loans for equipment

Salalah Port Services signed a U.S.$77.55 million loan agreement on 10
Dec. with three banks. The loan will finance equipment for Mina Raysut,
Oman, and is primarily for container handling items such as cranes. The
loan was arranged by Bank Muscat Al-Ahli Al-Omani, Bank Dhofar Al-Omani
Al-Fransi and Societe Generale, which will underwrite U.S.$60.9 million.
Bank Muscat Muscat Al-Ahli Al-Omani will provide U.S.$11.7 million and Bank
Dhofar Al-Omani Al-Fransi will fund U.S.$5 million. Salalah Port Services
will be managed by Sea-Land Service Inc. with 500 people and will start
operations in the fourth quarter of 1998.

Expansion at Bergen planned

The Port of Bergen, Norway, is drawing up plans to expand its
container and passenger facilities. The planned improvements will cost 213
million Norwegian kroner/U.S.$29.4 million and will be implemented until
2000. Included is 111 million kroner/U.S.$15.3 million for the addition of
a 450-meter/1,500-foot quay at the Dokkeskjaerskaien site adjacent to the
present Jekteviken facility. The Hurtigruten, Norway's coastal ferry, would
move to the north end of the terminal. Another 35 million kroner/U.S.$4.8
million would be spent on passenger and fishing facilities. For passenger
vessels, 60 meters/200 feet of quay and 12,000 square meters/14,400 square
yards of space would be added at Skoltegrunnskaien for an additional berth.
Sandviken may also become a cruise terminal.

Montreal to start dredging

The Port of Montreal has reportedly made plans to dredge sections of
the St. Lawrence River.

Penglai to add berths

The Port of Penglai in China's Shandong province is planning to build
two to four 5,000-ton berths and two 50,000-ton berths over the next three
years.

Cork to reduce rates

The Port of Cork, Ireland, will reduce several of its charges on 1
Jan. after having left them in place for six years. Container lines will
get a 15 percent reduction in most charges, while dry bulk cargoes,
particularly agricultural items, will get a 13 percent discount. Ferry
companies will also be affected and tankers with segregated ballast tanks
will get a 17 percent reduction.

ENA Petroleum gets bunkering license

ENA Petroleum S.A. was given a bunkering license 4 Dec. by the Greek
Development Ministry and began operations 9 Dec. It has four tank barges
with capacities of 800 to 1,200 metric tons. Lion de Mer S.A. is the Greek
representative and Aegean Petroleum (U.K.) Ltd. in the United Kingdom.

Committee recommends against X-Press Container Line berth at Chennai

A review committee for Chennai Port Trust in India has recommended
against awarding the West Quay II berth to X-Press Container Line (U.K.)
Ltd. under a berth registration scheme. X-Press Container Line was the only
bidder but the committee said the berth should handle breakbulk instead of
container cargoes.

Third phase of expansion to begin at Chinese port

A multipurpose berth and a container berth will be completed by 2000
at a cost of 628 million Chinese yuan/U.S.$75.5 million at the Port of
Lianyungang's Miaoling Block. It is the third phase of expansion at the
Chinese port, in the Jiangsu province.

Dover given permission to dredge from Goodwin Sands

Permission has been granted to England's Dover Harbor Board for
dredging of more than one million cubic meters/1.3 million cubic yards of
sand from the Goodwin Sands off Deal, England. The sand is needed for a 7
million British pound/U.S.$12 million land reclamation project covering
three hectares/seven acres in the Eastern Docks for trailers and for a
possible second cruise terminal at the Admiralty Pier. The remaining
450,000 cubic meters/585,000 cubic yards is needed for other projects
planned until 2002.

Klaipeda quay done

Hydro Soil Services has completed a quay at the Port of Klaipeda,
Lithuania.

Tabak-natie takes third Antwerp warehouse

Tabak-natie has taken over a third warehouse at the Port of Antwerp,
Belgium.

Crane for Puget Sound returned

A post-Panamax container crane to be used in Puget Sound, Wash., has
been returned to Japan after it was damaged in transit.

More on Manila towage fees

Two tug operators at the Port of Manila, the Philippines, have
increased their towage rates 27.39 percent from 6,337 Philippine
pesos/U.S.$179.97 to 8,000 pesos/U.S.$227.20 per tug. The increases involve
Malayan Towage & Salvage Corp. and Trans-Pacific Towage Inc. The last
increase was 15 percent in 1991.

SHIPYARDS AND EQUIPMENT

Volkswerft Stralsund sale to A.P. Moller affirmed

Representative's of Mecklenburg-Vorpommern and the German
privatization agency BvS have voted to sell Volkswerft Stralsund GmbH to
A.P. Moller, its only bidder, for 25 million German marks/U.S.$14 million.
A.P. Moller has said it will keep 1,170 of 1,600 employees.

BvS selects Ulltveit-Moe to buy MTW Schiffswerft

On 11 Dec., German privatization agency BvS selected Ulltveit-Moe to
purchase MTW Schiffswerft GmbH. It would add offshore and offshore support
work to the shipyard. Ulltveit-Moe offered 53 million German marks/U.S.$31
million and plans to keep at least 1,450 personnel. The state of
Mecklenburg-Vorpommern has not yet made its decision.

Hyundai Heavy Industries, Ulstein Bergen to build engines

Hyundai Heavy Industries Co. Ltd. and Ulstein Bergen A/S are planning
to design a new type of medium speed diesel engine. Design work will be
done at the Hordvikneset facility near Bergen, Norway, and is expected to
take about three years. The engines will be produced in Norway and South
Korea.

Four shipbuilders join with Intergraph to develop design software

A consortium of four shipbuilders, including Newport News Shipbuilding
Inc., have joined with Intergraph Corp. to develop a desktop software
system that will halve the time and cost involved by designing vessels
using computer-aided design/computer-aided manufacturing (CAD/CAM)
equipment. The first of the new system is to be in place by 1999.

U.S.$80 million made available for former Philadelphia Naval Shipyard

The U.S. government said 5 Dec. it has made U.S.$80 million available
for Kvaerner A.S.A.'s plan to build and operate a shipbuilding facility at
the former Philadelphia Naval Shipyard. It would be named Kvaerner
Philadelphia Shipyard. The shipyard will be publicly owned and operated by
Kvaerner under a 99-year deal. Kvaerner will invest U.S.$165 million over
15 years with U.S.$45 million in the first five; buy the first three
containerships built at cost, likely U.S.$80 million; guarantee minimum job
levels of 700 people at the end of five years and at least 500 more 10
years after that; and relocate its North American headquarters to
Philadelphia. Construction of the first ship is expected to begin in summer
with completion in 2000. Kvaerner plans to use two dry docks on at least 36
hectares/90 acres. The federal government is now providing a grant of
U.S.$80 million from the U.S. Labor Department, U.S.$30 million of which is
to aid former naval shipyard workers to learn commercial vessel
construction skills. The rest to to help Kvaerner to reopen the shipyard.

Lithuanian shipyard for sale

The Lithuanian government's 92 percent stake in Western Shiprepair
Yard at Klaipeda, Lithuania, is reportedly being offered for U.S.$18
million to U.S.$20 million.

Schottel-Weft, Siemens to market propulsor

Schottel-Werft and Siemens' Industrial Projects and Technical Services
Group have formed a joint venture to market the jointly developed
Siemens-Schottel Propulsor. A "podded" electric drive system, it is said to
have a 10 percent higher efficiency level that conventional systems.
Siemens designed a new, permanently-excited synchronous motor in a
longitudinal flow design and did electrical design work while
Schottel-Werft designed the propeller and is manufacturing the system. It
has a fully-rotatable lower housing and does not need a cooling system.

More on new Alpha Diesel facility

MAN B&W has completed an expansion project at its Alpha Diesel in
Frederikshavn, Denmark, that will enable production of engines up to the
size of Panamax ships. The first engine, a 10-cylinder S35MC, has already
been produced. The 12,700 kilowatt/9,500 brake horsepower engine will be
used in a 12,500-dwt containership being built by Celiktekne in Turkey for
Kiran Gemi ve Makine Sanayi - Turgut Kiran. The new
1,500-square-meter/1,800-square-yard facility can build and test two-stroke
diesels up to 23,100 kilowatts/17,200 brake horsepower with cylinder bores
of 500 millimeters/20 inches. The largest such engines produced at Alpha
Diesel are of the S50MC-C type. There is an 18-meter/59-foot height and a
300-ton crane.

Chile reportedly selects new submarines

The Chilean Navy has reportedly approved the purchase of two attack
submarines of the Scorpene design, jointly built by Bazan and Direction
Construction Navale. Each will reportedly cost U.S.$200 million each and
will be delivered early next decade.

Philippines orders search and rescue vessels

The Philippines has ordered two search and rescue vessels from Tenix
Defense Systems for U.S.$38.5 million.

Catalina Cruises orders catamaran

Catalina Cruises has ordered a 450-passenger catamaran. The
43-meter/141-foot vessel is an INCAT Australia design.

Halter Marine Group terminates contract with Chiles Offshore

Halter Marine Group Inc. said 10 Dec. that an 8 Dec. deadline for
Chiles Offshore L.L.C. to make a downpayment on two jack-up drilling rigs
ordered 18 Nov. from TDI-Halter Inc. had passed and that as a result, the
contract has been terminated. The construction of two Zentech R-450 rigs
for U.S.$68 million each was to be Halter Marine Group's largest order
ever.

Teekay Shipping to provide FSO for field off Australia

Teekay Shipping said 10 Dec. it has formed a long-term contract with
Apache Energy Ltd. to provide a floating storage and offloading vessel for
their Stag Field development off Western Australia. One of Teekay
Shipping's Aframax tankers wll be converted and time-chartered to Apache
Energy at a fixed-rate for eight to 14 years starting in March. The
conversion will cost U.S.$15 million.

Norwegian Cruise Line announces plans for the Norwegian Sky

Norwegian Cruise Line Ltd. announced 8 Dec. it has ordered a
2,000-passenger ship from Lloyd Werft Bremerhaven GmbH. The 11th of the
company's fleet, it will be named the Norwegian Sky. The 76,000-gt vessel
will be delivered in August 1999 for U.S.$300 million. Design of the ship
involves Tillberg Design. The ship was formerly to be the Costa Olympia for
Costa Crociere SpA and was building at Bremer Vulkan Verbund AG. As
completed, the vessel will be 257 meters/842 feet long with a beam of 32.0
meters/105 feet and a 7.9-meter/26-foot draft. It will have a crew of 850.
The design includes 12 decks with a glass-domed atrium at mid-ship. All
outside staterooms aboard the Norwegian Sky will have two lower beds which
convert to a queen size bed, sitting area, private bath, dressing table,
refrigerator, safe, remote-controlled television and large circular
windows. Some 258 of the ship's 1,000 cabins, including 21 junior suites,
will have private teak-floored balconies and eight owner's suites also have
private outdoor Jacuzzis. Outside cabins are about 13.5 square meters/150
square feet and five cabins are equipped for wheelchair accessibility.
Public areas will include a Sports Bar; the 50-seat Le Bistro restaurant;
two main dining rooms connected by a smaller, third dining room; a tented
outdoor buffet restaurant; indoor garden buffet restaurant, pizzeria and
wine bar; Sports Bar & Grill and ice cream bar. Other design features are a
two-level main show lounge with proscenium stage, a cabaret lounge equipped
with what is said to be the longest bar at sea; several bars including a
champagne bar, schooner bar and a cigar club; the Observatory lounge with
picture windows; Monte Carlo casino; shopping area; children's playroom;
gameroom; full service spa; exercise gym with separate aerobics area; a
conference room; library; card room and beauty salon. The deck area has two
swimming pools, six Jacuzzis, and a sun deck with basketball, golf driving,
platform tennis, shuffleboard and volleyball. There is also a splash pool
on the top deck for children.

Maersk Line's largest containership named

The Susan Maersk was named 29 Nov. at Odense Steel Shipyard Ltd. Hull
number 161, which can carry 6,600 TEUs and is 347 meters/1,140 feet long,
is Maersk Line's largest containership. The Susan Maersk is registered in
Denmark and homeported at Hellerup. It will sail between Europe and the Far
East.

More on the Schiehallion

The world's largest floating production, storage and offloading vessel
was named the Schiehallion (British-registry) on 5 Dec. at Harland & Wolff
Holdings P.L.C. in Belfast, Northern Ireland, by Paula Browne, the mother
of British Petroleum chief executive John Browne. It will be delivered next
year, completing what is reportedly the shortest-ever building process for
a FPSO. It was ordered 20 months ago. The vessel has a storage capacity for
950,000 barrels of crude oil and can process up to 154,000 barrels per day.
The Schiehallion will be used by a group including BP Exploration in two
developments west of Scotland's Shetland Islands, Loyal and Schiehallion,
and will operate in 400 meters/1,300 feet of water. The processing plant
has been designed and built by Brown & Root while there is a turret system
by Single Buoy Moorings. Crude oil will be transferred to a tanker
operating to Sullom Voe, Scotland, that can carry 850,000 barrels. It is
being built for BP Shipping Ltd. by Daewoo in South Korea for delivery in
August. Oil production will begin in mid-1998. The Schiehallion is the
first vessel specifically designed and built for the northeast Atlantic
Ocean.

Tanker laid down in St. Petersburg

A tanker ordered by Lukoil Arctic Tanker was laid down at United
Admiralty Shipyard 199 in St. Petersburg, Russia, on 10 Dec. Designed to
transport petroleum to northern Russia, the ship will be capable of
icebreaking. Construction will take 18 months.

Sumitomo Heavy Industries develops new navigation system

Sumitomo Heavy Industries Ltd., working with Nippon Avionics, has
developed a new marine navigation system that is said to be lightweight and
include an integrated electronic marine chart indicator.

Canada Maritime Services orders 3,000 containers

Canada Maritime Services Ltd. has ordered 3,000 dry cargo containers
from CIMC and Jindo. At a price of U.S.$11 million, the order is evenly
split between FEUs and TEUs and all will be delivered by the end of
January.

Brigss Marine Environmental Services replaces ship

Briggs Marine Environmental Services Ltd. has replaced its Forth
Explorer with the British Shield, formerly the Oscona. The British-reistry
Forth Explorer was built in 1969. The British Shield, a converted chemical
tanker, can recover 3,300 tons of oil and will be called on to work in the
United Kingdom, particularly off northern Scotland.

Southern Shipmanagement, CSAV add Marine Management Systems equipment

Marine Management Systems said 8 Dec. that Southern Shipmanagement
(Chile) Ltd. will install their MMS Fleet Manager Enterprise for Windows
system on its 17 ships. Another 20 MMS FleetLINK comunications systems will
be added to ships of CSAV, Southern Shipmanagement's parent. The order is
worth U.S.$300,000. Southern Shipmanagement has also bought the ShipNet
Advanced Purchasing System from Marine Management Systems' ShipNet A/S.

Disney Magic makes sea trials

The Disney Magic, an 85,000-gt, 6,000-dwt passenger ship being built
by Fincantieri Cantieri Navali Italiani SpA at its Marghera, Italy,
shipyard, has completed four days of sea trials.

Ville de Virgo christened

The Ville de Virgo (French-registry 4,000-TEU containership homeported
at Port aux Francais) was christened 12 Nov. in Marseilles, France. It was
built by Daewoo Heavy Industries Ltd. in South Korea and is 259 meters/850
feet long and capable of 24 knots. It will sail on the French Asia Line.

Ikarus delivered

Fosen MEK Verksteder A/S has delivered the 314-gt, 1,500-passenger and
ro/ro ferry Ikarus to Minoan Lines Shipping S.A. at a cost of 27 billion
Greek drachmas/U.S.$99 million. It is reportedly the most expensive vessel
ever in Greek passenger shipping. The Ikarus will sail between Ancona,
Italy, and Igoumenitas and Patras in Greece starting 21 Dec. The vessel can
carry 1,000 vehicles or 150 trailers and is capable of 30 knots though
service speed will be 27.

New Japanese training ship delivered

Sumitomo Heavy Industries Ltd.'s Uraga, Japan, shipyard has delivered
the Seiun Maru, a 5,884-gt training vessel for up to 180 people, to the
Japanese Ministry of Transport's Institute for Sea Training. The ship has a
local area network, an electronic chart display and information system and
a differential global positioning system. Educational facilities include a
lecture hall, a smaller classroom, and navigational, engineering and radio
laboratories. The Seiun Maru is powered by a two-stroke, low-speed diesel
engine developing 14,100 kilowatts/10,500 brake horsepower. The engine room
is equipped for operation without personnel.

FBM Aboitiz Marine launches ferry

FBM Aboitiz Marine Inc. has launched its first high-speed ferry for
CTS-Parkview Ferry Services Ltd.

Harland & Wolff Holdings working on Stena ferries

Harland & Wolff Holdings P.L.C. has won a contract to drydock two
Stena HSS ferries, the first time that work on them has been commerically
tendered.

EVENTS, INCIDENTS AND OPERATIONS

Three killed and at least 10 missing as truck drives off ferry

Three girls were killed 7 Dec. and at least 10 are missing after a
truck they were riding on drove off a ferry into Egypt's Nile River. About
20 girls, between the ages of 12 and 17, were aboard the truck when the
driver put it into reverse instead of forward after the ferry docked in Abu
Ghalib, Egypt. At least seven swam to shore. The girls were headed to work
in a tomato field.

Tug crewmember taken to shore for medical treatment

Mark Hollzman, 44, of Medford, N.Y., was evacuated from the tug
Captain Fred on 3 Dec., eight kilometers/five miles east of Scituate, Mass.
He had complained of abdominal pain and was taken off the tug by a U.S.
Coast Guard boat from Coast Guard Station Point Allerton, Mass. Hollzman
was taken to the Pemberton Pier in Hull, Mass., then to South Shore
Hospital.

Master of lobster boat falls overboard off Massachusetts

Anthony Coccoro, 52, the master of the Risky Business (U.S.-registry
13-meter/42-foot lobster boat homeported at Harwich, Mass.), was reported
missing 5 Dec. and is believed to have fallen overboard near Chatham, Mass.
A crewmember reported him missing at 1330 and the U.S. Coast Guard's lead
vessel of the U.S.C.G.C. Juniper (WLB 201)-class Seagoing Buoy Tender, a
boat from Coast Guard Station Chatham and an HH-60J Jayhawk helicopter from
Coast Guard Air Station Cape Cod started a search. Several vessels in the
area aided the search as well. Coccoro was found about an hour later by the
Chatham harbormaster three kilometers/two miles offshore. An ambulance took
him to Cape Cod Hospital in Hyannis, Mass., where he was listed in stable
condition.

Ferry returns to port after medical emergency

A ferry sailing from Douglas on the United Kingdom's Isle of Man
returned to port after 90 minutes on 5 Dec. due to a medical emergency.

Yangtze River shipping regulations being reviewed

China has announced that it will tighten shipping regulations,
particuarly in regards to hazardous cargoes, on its Yangtze River,
following two incidents in October. On 8 Oct., a vessel ran aground in
Yunyang, Sichuan province, spilling 149 tons of benzene. Local residents
were without water for three days. On 20 Oct., a vessel with carbon
tetrachloride ran aground near Fulin, Sichuan, but did not spill any cargo.
Investigations reported both ships were overloaded, had poor piloting and
bad management.

Canada files charges against containership for dumping oil

Three officers of the Atlantic Cartier (44,988-dwt, 2,908-TEU
containership and ro/ro built in 1985, operated by Nordic Oriental
Shipmanagement Pte. Ltd.), affiliated with Atlantic Container Line, have
been charged with dumping oil in Canadian territorial waters. The master,
first engineer and third engineer were charged with eight counts under four
laws and could be imprisoned as well as fined up to Canadian$1
million/U.S.$700,000 per charge. The charges include discharging a
substance harmful to migratory birds, polluting waters frequented by fish
and failing to report pollution. A Canadian Coast Guard aircraft reported
that it saw a 15-kilometer/9.3-mile slick behind the ship on 19 Nov., 139
kilometers/86.2 miles southeast of Cape Race. The Atlantic Cartier was
ordered to cease its dumping and sail to St. John's, Newfoundland, where
Environment Canada filed charges. One officer was formally arraigned and
released on C$5,000 bail/U.S.$3,500. The ship later sailed for Liverpool,
England, after Transocean Ship Management posted a letter of undertaking. A
hearing will be held 30 Jan.

Nissos Amorgos master given permission to leave Venezuela

Konstantinos Spiropulos, master of the Nissos Amorgos (Greek-registry
50,563-gt, 89,427-dwt tanker built in 1988, owned by Glafki-Atenas and
operated by Teekay Shipping), has been given permission to leave Venezuela
for 45 days by Judge Ricardo Colmenares in Cabimas, Venezuela. Late 28
Feb., the ship ran aground in the Maracaibo Channel between buoys 20 and 22
and spilled 4,000 tons of crude oil. It was carrying 474,000 barrels or
64,573 tons from Puerto Miranda, Venezuela, to Port de Gella, Italy, and
was chartered by Maraven S.A. with oil for Agip Petroil SpA. Spiropulos was
charged with damage caused by the pollution and could be imprisoned for up
to three years and fined U.S.$25,000. The ship was held until 21 July.

U.S. Coast Guard seizes catch of vessel off Massachusetts

The U.S. Coast Guard seized the catch of the Endurance (U.S.-registry
32.6-meter/107-foot fishing vessel homeported at Boston) the morning of 11
Dec., 64 kilometers/40 miles southeast of Nantucket, Mass. The vessel was
found fishing three kilometer/two miles inside the Nantucket Lightship
Closed Area late 10 Dec. by the Coast Guard's "Island"-class Patrol Boat
U.S.C.G.C. Adak (WPB 1333). A boarding found monk fish livers and tails and
scallops with an estimated value of U.S.$57,000. The U.S.C.G.C. Adak is
escorting the Endurance to New Bedford, Mass., for investigation by the
U.S. National Marine Fisheries Service.

VESSEL TRANSFERS

Coflexip Stena Offshore in two vessel deals

Coflexip Stena Offshore took delivery of the Kitty on 10 Dec. and will
convert it to a multipurpose ultra deepwater installation ship. It is 168
meters/551 feet long and has a 27-meter/89-foot beam. The vessel will be
used for laying pipe and risers. The Kitty, currently registered in the
Bahamas, was built in 1983 as a semi-submersible barge carrier. The vessel
was laid-up shortly after completion until 1988, when the vessel became an
open-hold containership. Conversion is expected by late 1999. Coflexip
Stena Offshore also said this week it has agreed to a five-year charter
with Solstad Shipping A/S starting in March 1999. There is a 10-year
extension. The vessel has a bollard pull of 270 tons, has 500-ton anchor
handling winches, a helicopter deck, a moonpool for a vertical laying
system or remotely-operated vehicle, a 140-ton crane and a 150-ton A-frame
crane and accomodation for 67 people. The vessel is NMD Class 2 and will
perform trenching, pipelaying and mooring installations. Until the charter
starts, Coflexip Stena Offshore, as of 2 Dec., has chartered the Normand
Atlantic for at least 100 days and possibly until 31 Dec., 1998. It has
started trenching operations in the North Sea.

Cetragpa buys the Loire One

Cetragpa has taken a purchase option on the Loire One (77,274-gt,
151,143-dwt motor bulk carrier built in 1995 by Tsu) for U.S.$40 million,
after having operated the vessel on a long-term time-charter since
delivery. The vessel was formerly the Channel Commander.

Irish Ferries charters the Normandy

Irish Ferries has chartered the Normandy (24,872-gt, 3,315-dwt ferry
built in 1982, formerly the Stena Normandy) for operations across the
Enlish Channel.

Export Freedom to be scrapped

The Export Freedom (U.S.-registry 16,871-dwt containership built in
1972) has been sold by Farrell Lines Inc. for scrapping in India.

More on Bergesen deals

BHP Transport Ltd. has sold the Iron Pacific (Australian-registry
118,491-gt, 231,851-dwt strengthened bulk carrier built in 1986 by Samsung
Heavy Industries Co. Ltd. at Koje, South Korea) to Bergesen dy A/S for
U.S.$33 million. The ship has a shallow draft of 25 meters/82 feet and twin
propellers and was the largest vessel ever registered in Australia. The
Iron Pacific carried iron ore from Port Hedland, West Australia, to the
Australian ports of Newcastle and Port Kembla. It then carried coal to
Kwang Yang Bay and Pohang in South Korea before returning in ballast to
Port Hedland. With decreasing iron ore volumes planned due to closure of
the Newcastle facility in 1999, smaller vessels will take over. The ship
will be handed over in the first half of 1998. Bergesen has also chartered
the Gargantua (221,118-dwt bulk carrier built in 1983) for three years with
options for another two. Bergesen can then purchase the ship. Both the
Gargantua and the Iron Pacific will be used in Europe and the Pacific. In
both deals, General Ore International Corp. has taken stakes of 35 percent.

Girraween price

The Girraween (Australian-registry 101,600-dwt tanker built in 1979,
formerly the Ampol Sarel), which Australian Tankships Pty. Ltd. sold to
Tanker Pacific Management (Singapore) Pte. Ltd. late last month, cost
U.S.$13.6 million to U.S.$13.9 million. Teekay Shipping announced 1 Dec.
that it has entered into an agreement with Australian Petroleum Pty. Ltd.
to buy its Australian Tankships.

VESSEL CASUALTIES

Eleven missing near Macau

Eleven people are missing after their vessel collided with a fishing
vessel near Qi-ao Island north of Macau. The vessel, with 28 passengers,
mostly from a construction project, sank.

Explosion on ship during sea trials kills technician

An explosion aboard the Island Princess during sea trials in Italy's
Gulf of Naples has killed a British technician and seriously injured three
others.

One missing in sinking of Turkish-registry ship

The S. Ugurlu (Turkish-registry 996-gt, 1,633-dwt general cargo ship
built in 1983, operated by Packcakil Nakilyat ve Ticaret), sailing from
Thessaloniki, Greece, to Venice, Italy, ran aground and sank off Kimi,
Greece, on 10 Dec. It was carrying ore. Eleven of the 12 crewmembers were
rescued and a Turkish citizen is missing. A search was underway by three
Greek Navy vessels, three Greek Coast Guard vessels and a Greek Air Force
helicopter.

More on St. Jude Express fire: one missing, seven rescued

The St. Jude Express (Belize-registry 499-gt, 1,066-dwt dry cargo ship
built in 1966, operated by Aztec Shipping & Trading) caught fire and later
had an explosion on 4 Dec. at 20 degrees 22 minutes north, 74 degrees 01.5
minutes west, about 21 kilometers/13 miles east of Punta Maisi, Cuba. A 406
megahertz Emergency Position Indicating Radio Beacon was activated and a
distress call was heard by the Bremen Senator (Liberian-registry 46,490-dwt
containership built in 1993, operated by Unicom Management Services
(Cyprus) Ltd.). The Bremen Senator rescued seven of the crewmembers and an
eighth is missing. Ablaze, the St. Jude Express later drifted into Cuban
territorial waters.

Twelve rescued as ship sinks in storm off Sicily

The Megan or Megane (St. Vincent and the Grenadines-registry, 1,800
tons, 87 meters/285 feet long), carrying timber, sank in a storm 128
kilometers/80 miles off Sicily, Italy, at 0800 7 Dec. Its master, a
Lebanese citizen, and 12 Syrian crewmembers were rescued from two lifeboats
by helicopters from an Italian military base and a Sea King HAS Mk 5 of the
British Royal Navy's No. 814 Squadron aboard the Navy's lead ship of the
H.M.S. Invincible (R 05)-class Aircraft Carrier. The ship's engine room
began flooding after the cargo shifted and a salvage crew was attempting to
save the ship. It was sailing from Lebanon to Italy.

Celtic Warrior sinks after colliding with dry cargo ship in Greece

The Celtic Warrior (Bahamian-registry 3,779-gt, 5,878-dwt motor
general cargo ship built in 1991, operated by Charles M. Willie & Co.
(Shipping) Ltd.) sank early 7 Dec. in the Saronic Gulf off Cape Sounion on
Agios Georgios Island, Greece. The ship had collided with the Annegret
(Antigua and Barbuda-registry 3,998-gt, 5,210-dwt dry cargo ship built in
1995, operated by Pohl Shipping Schiffahrts GmbH). The nine crewmembers of
the Celtic Warrior, all Polish citizens, were rescued by the Annegret and
taken to Piraeus, Greece. The Celtic Warrior was sailing from Beirut,
Lebanon, to Piraeus. It remained afloat five hours after the colllision and
several containers were reported floating in the area after the ship sank.
The Annegreet was sailing from Istanbul, Turkey, to Italy.

Twenty rescued before Promex Cita sinks off Vietnam

The Promex Cita (11,599-dwt bulk carrier built in 1975, operated by
Aman Navigation Sdn. Bhd.) sank 3 Dec. off Ly Son Island, Vietnam. Local
police boats rescued the 20 crew of Philippine citizens. The ship was
carrying granite floor tiles from China to Indonesia when it began
flooding. Unable to repair the damage, the ship sailed towards the
Vietnamese coast before it sank in 30 meters/100 feet of water. Fuel oil
from the ship was reported floating in the area.

Some 124 escape blaze aboard fishing trawler

The Po Yang Ho (South Korean-registry trawler) exploded and caught
fire 6 Dec. in the Sea of Okhotsk. The Grigory Alexsandrov
(Russian-registry) rescued the crew of 124 after having deviated from a
sailing to Magadan, Russia.

Sulpicio Lines ferry destroyed by fire

The Philippine Princess (Philippine-registry 4,717-gt ferry built in
Japan, operated by Sulpicio Lines) was gutted after a fire started at 2200
5 Dec. while the vessel was docked at the compay's shipyard in Mandaue,
Cebu, the Philippines, for repairs. Damage is estimated at 400 million
Philippine pesos/U.S.$11.4 million. The Philippine Princess had run aground
while refueling at Pier 12 at North Harbor in Manila, the Philippines. On 3
Dec., another vessel operated by Sulpicio Lines, the Princess of the Orient
(13,732-gt, 3,110-dwt, 3,000-passenger vessel built in 1974), caught fire
while docked at the same pier for refueling. One crewmember was
hospitalized with burns. The Princess of the Orient had arrived from Cebu
province and hundreds of passengers had disembarked when the fire started.
The Philippine Coast Guard said that the fire was caused by an overheated
auxiliary engine and a fuel overflow. In January, the Princess of the
Orient collided with the Sulcon 15, also operated by Sulpicio Lines,
approaching North Harbor. In October 1996, it ran aground off North Harbor,
dragging a tug with it.

Collision off Japan causes fuel spill

The Kashi Maru (409 tons) and the Settsu Maru (393 tons) collided 132
kilometers/82 miles south of Tokyo at 0100 9 Dec., spilling a small amount
of fuel. Three Japanese Maritime Safety Agency vessels sprayed chemicals on
the spill, which came from the Kashi Maru. The spill measured one
kilometer/0.6 miles long but was relatively thin. The Kashi Maru's port
side amidships was heavily damaged and it reportedly was flooding. Five
crewmembers boarded the Settsu Maru. There were no injuries. Both vessels
were sailing to Japanese ports.

Melati Mas aground, spilling fuel off northern Japan

The Melati Mas (Malaysian-registry, 3,960 tons) ran aground on 8 Dec.
near Hachinohe, Japan. The ship spilled fuel that formed a
five-kilometer/three-mile slick as of the afternoon of 9 Dec. The ship,
with 18 crewmembers, was not carrying any cargo. There were no injuries.
The Melati Mas arrived at Hachinohe on 28 Nov. with zinc ore from China.

Oil platform evacuated after fire

On 2 Dec., an oil production platform 64 kilometers/40 miles east of
Venice, La., had a fire in its crew berthing area. All 34 people aboard
were evacuated by crewboats and helicopters. The well was shut until local
fireboats extinguished the fire. A light sheen was seen on the water in the
area.

U.S. Coast Guard cutter rescues crew from grounded vessel off Honduras

On 4 Dec., the fishing vessel Bambino II ran aground near Pigeon Cays,
Honduras. A U.S. Coast Guard HH-65A Dolphin from the Coast Guard's
Bear-class Medium-Endurance Cutter U.S.C.G.C. Harriet Lane (WMEC 903)
rescued all 14 crewmembers. They were later transferred to the fishing
vessel Mosquitia Express.

Engine room fire erupts aboard Boston commuter vessel

The James Dougherty, a commuter vessel in Boston, had an engine room
fire at 0630 11 Dec. All 39 passengers were evacuated to the Lightning,
another commuter vessel, with no injuries reported. The vessel was sailing
from Hingham, Mass., to Rowe's Wharf in Boston when a fire was reported
south of Long Island Bridge. The James Dougherty is operated by Boston
Harbor Cruise Lines and was towed to Everett, Mass.

Collision at Diliskelesi

The Ocean Gold (South Korean-registry 29,160-gt, 46,745-dwt bulk
carrier built in 1982, operated by Pan Ocean Shipping Co. Ltd.) hit the
anchored Oylum (Turkish-registry 1,975-gt, 3,301-dwt motor bulk carrier
built in 1976, operated by Capricorn Denizcilik A.S.) at Diliskelesi,
Turkey, on 11 Dec.

Calcite II aground in Saginaw River

The Calcite II (8,188-gt, 6,301-nt, 184.33-meter/604.75-foot motor
bulk carrier built in 1929 by American Ship Building Co. at Lorain, Ohio;
operated by USS Great Lakes Fleet Inc.) ran aground at 1730 12 Dec. in the
Saginaw River near the Interstate 75 bridge in Zilwaukee, Mich. It is
carrying limestone. Wind and currents are believed to have caused the
grounding.

Alligator Liberty disabled in the Pacific Ocean

The Alligator Liberty (Japanese-registry 42,121-gt, 38,512-dwt
containership built in 1986, operated by Mitsui O.S.K. Lines), sailing from
Tokyo to Manzanillo, Panama, had a broken camshaft 7 Dec., about 1,900
kilometers/1,200 miles northwest of Honolulu. It was to be towed to
Honolulu.

Bulk carrier grounds in Michigan

The Joseph H. Frantz (9,589-gt, 15,749-dwt, 7,636-nt,
188-meter/618-foot motor bulk carrier built in 1925 by Great Lakes
Engineering Works at River Rouge, Mich.; operated by Oglebay Norton Co.)
ran aground in the Saginaw River in Michigan between Buoys 49 and 53,
partially blocking the channel. It was north of the Cheboyganing Creek
Bridge between Bay City and Saginaw. The ship had unloaded cargo at Crow
Island, Mich., and reportedly ran aground while maneuvering to head
downbound in 25-knot winds and low water levels. The Joseph H. Frantz
developed a port list and at 1640 7 Dec., was pulled off stern first by the
Manitou (491-gt, 33.5-meter/110-foot tug built in 1943 with 1,640
kilowatt/2,200 brake horsepower). The ship dropped its port anchor and
after maneuvering, continued its voyage.

Product tanker arrives in Dublin after engine failure

The Thames Fisher (British-registry 4,765-dwt products tanker operated
by James Fisher Tankships Ltd.) has called at Dublin, Ireland, after its
Ruston RK270 medium-speed diesel engine failed 32 kilometers/26 miles off
South Bishop Lighthouse. The ship was sailing from Milford Haven, Wales, to
Dublin with 1,376 tons of unleaded gasoline, 909 tons of gas-oil and 752
tons of kerosene.

Kalila towed to Brest with coupling failure

The Kalila (Moroccan-registry 1,689-gt, 2,307-dwt general cargo ship
built in 1973, operated by Van Uden Transport Group B.V.) had a coupling
failure 11 Dec., 160 kilometers/100 miles off Ushant Island, France. The
vessel was sailing from Rouen, France, to Casablanca, Morocco, and was
towed to Brest, France, by the Anglian Duke (560-dwt tug built in 1977,
operated by Klyne Tugs (Lowestoft) Ltd.).

Bulk carrier loses rudder near Quebec

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.)
lost its rudder recently and suffered propeller damage near Quebec. It was
towed to Quebec and laid-up.

Spill from the Kuroshima larger than previously thought

Some 175,000 liters/46,000 gallons of Bunker C fuel has been removed
from the Kuroshima (Panamanian-registry 4,160-gt, 4,845-dwt,
112-meter/368-foot motor refrigerated ship built in 1988, owned by
Kuroshima Shipping S.A. and operated by Fukuoka Zosen K.K.), which has been
aground on Second Priest Rock about 90 meters/300 feet off Dutch Harbor,
Alaska, since the afternoon of 26 Nov. Another 43,700 liters/11,500 gallons
of fuel has been recovered from the area. As a result, damaged fuel tanks
are now thought to have spilled 152,000 liters/40,000 gallons to 304,000
liters/80,000 gallons of Bunker C fuel. About U.S.$1.7 million has been
spent on the clean-up. Seventeen birds have been killed and seven are being
treated in Homer, Alaska. About 60 other birds have been seen with varying
amounts of oil. The Kuroshima had anchored off Dutch Harbor and was to load
seafood when its anchor chain snapped in high winds. Two Philippine
crewmembers from Manila, Michael Valdellon, 46, the chief officer, and
Benito Gestosani, 36, were killed while the 16 other crewmembers were
rescued after a lifeboat was pulled to shore by a line fired to the ship.
The master and chief engineer are Japanese citizens with the rest of the
crew from the Philippines.

Report on grounding of Canadian warship released

An invesigation into the grounding of the Canadian Maritime Command's
Restigouche-class Frigate H.M.C.S. Terra Nova (DDE 259) in Yarmouth, Nova
Scotia, on 19 June reported that the incident was due to a speed too fast
for conditions. The report was completed in October but only recently
released. The ship, which was not damaged, was aground in mud and gravel
for about 75 minutes after it attempted to enter the harbor during low
tide, fog and a 16-knot wind. The H.M.C.S. Terra Nova did not have a pilot
aboard when it entered Yarmouth at 12 knots. Disciplinary action was not
taken but the ship was ordered to perform harbor entries without a pilot.

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

Britannia decommissioned, will be preserved

Her Majesty's Yacht Britannia was decomissioned 11 Dec. at Portsmouth,
England. It was announced 10 Dec. that the vessel will either be taken over
by Forth Ports P.L.C. for mooring at Leith in Edinburgh, Scotland, for use
as a site for state functions and business meetings, or by Peel Holdings
P.L.C., in which case it would be moored at Manchester, England, by The
Manchester Ship Canal Co. The Britannia would be berthed at a passenger
terminal in Edinburgh or adjacent to the Barton Swing Bridge at Trafford
Park in Manchester. The Britannia was laid down in July 1952 and launched
at John Brown & Co. in Clydebank, Scotland, on 16 April, 1953. It was
commissioned 14 Jan., 1954. In addition to being a naval-crewed royal
yacht, the vessel was to act, until 1993, as a hospital ship during war.

New York street to be named for former I.L.A. president Thomas Gleason

A street in New York will be renamed at 1000 15 Dec. for Thomas W.
'Teddy' Gleason, a former leader of the International Longshoremen's
Association. Morris Street between West and Washington Streets in Manhattan
will become Teddy Gleason Street, near the offices of the association at 17
Battery Place in Lower Manhattan. It is also opposite where Pier 1 use to
be, a location Gleason worked at beginning in 1915. He became the
association's president in 1963 and served until 1987. Gleason was born 8
Nov., 1900, at 103 Charles Street, a tenement building in Greenwich Village
in Lower Manhattan. His father and grandfather, both dockworkers, emigrated
from Ireland. His mother, Mary Quinn, was also an Irish immigrant. Gleason
received an honorary Doctor of Laws degree from Molloy College in 1980 and
elected president emeritus of the I.L.A. in 1987 and 1991. He died 24 Dec.,
1992. His wife, Emma Martin, died in 1961.
---------------------------------------------------------------------------

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Edited from information distributed by: British Ministry of Defence; China
Daily; El Mercurio (Chile); Fairplay Publications Ltd.; Great Lakes Vessel
Passage (www.oakland.edu/boatnerd) and Greg Brass, Mark Jackson, Dan Maus,
Lon Morgan and Ron Waslh; Hong Kong Shipping Gazette; Korea Economic
Daily/Weekly; LLP Ltd. includng BunkerNews Daily and Lloyd's List; media
releases; Mersey Shipping News; news services including Australian News
Network, Business Wire, Canada NewsWire, Canadian Press, Comline, Comtex,
Itar-Tass, PR Newswire, Reuters, The Associated Press, United Press
International and Xinhua/New China News Agency; People's Daily (China);
radio services including Australian Broadcasting Corp., British
Broadcasting Corp. and Radio Russia; Singapore Press Holdings Ltd.
including Singapore Shipping Times; The Age (Melbourne, Australia); The
Journal of Commerce; The New York Times; the U.S. Coast Guard; and Vietnam
News.

Special thanks to David Shirlaw.

Questions, comments or problems? Want to submit information for inclusion
in the World Maritime News? Please send a message to
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--
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