- Transport on Line - hiltunen.htm

BUSINESS

Royal Carribean International to buy Celebrity Cruise Lines

Royal Caribbean International Ltd. announced 17 June it will buy Celebrity
Cruise Lines Inc. for U.S.$1.3 billion. Celebrity Cruise Lines will survive
as a brand name, and the merged firm will have 20 ships with more than
38,000 berths by 2000. Celebrity Cruise Lines will be maintained as a "upscale"
cruise line. The deal involves equity of U.S.$500 million and the assumption
of U.S.$800 million in debt. It will be paid with U.S.$230 million in cash
and an issue of 7.4 million shares of Royal Carribean International totaling
U.S.$270 million. Both present and new credit lines will be used. Celebrity
Cruise Lines is 51 percent owned by Chandris Group, with the rest held
by Overseas Shipholding Group Inc.

Holyman to buy Australian assets of Union Shipping Group

In an Australian$58.3 million/U.S.$44.2 million deal, Holyman Ltd. as
agreed to buy Australian shipping assets of Brierly Investments Ltd.'s
Union Shipping Group. They inlude Coastal Express Line Pty. Ltd., Union
Bulkships Pty. Ltd. and Union Stevedoring Services, which has operations
at the Australian ports of Devonport and Melbourne. The deal requires regulatory
and other approvals.

Taiwan to allow foreign branch offices, calls by Chinese-owned ships

Taiwan has approved new regulations that will allow foreign shipping
businesses to set-up branch offices starting next month. Also, following
the transfer of Hong Kong to China on 1 July, Taiwan plans to allow Chinese-owned
ships to call at any Taiwanese port. The ships, however, must be registered
elsewhere and must be sailing from a port not in China. The cabinet must
approve the plan.

Germany announces plans to revitalize shipping

Germany plans to introduce a tonnage tax that would be an annual fixed
fee based on deadweight tons. Also, income tax for people working aboard
German-registry vessels in international trades may be cut 40 percent if
they work at least 183 days per year.

Exxon appeals damage ruling in Exxon Valdez case

Exxon Corp. submitted an appellate brief to the U.S. Court of Appeals
for the Ninth Circuit on 19 June, seeking an appeal of a U.S.$5.058 bilion
judgement made against it in a district court in Anchorage, Alaska, in
1994. The award was made to people affected by the grounding of the Exxon
Valdez in Prince William Sound, Alaska, on 24 March, 1989, which spilled
38.30 million liters/10.08 million gallons of crude oil. Exxon named 11
legal issues in five areas including an excessive award; the legal availability
of punitive damages; the jury instructions and significance of evidence;
juror misconduct; and compensatory damage errors. Exxon said that the damage
award was 200 times larger that the largest punitive award ever upheld
by an appellate court in the United States. In addition, Exxon said that
punitive damages are unwarranted, since the U.S.$3.5 million spill cost
was punishment enough. It also claims punitive damages were barred under
a 1991 settlement with Alaska for U.S.$900 million, which had sued on behalf
of state residents. Finally, the company said it believes since the U.S.
Congress specified remedies needed to punish and deter oil spills without
punitive awards, damages are not available.

American Radio Association strike against APL ties up ship in Seattle

The American Radio Association began a strike against APL Ltd. on 19
June. As of 20 June, the President Kennedy (U.S.-registry 56,431-dwt containership
built in 1988, operated by APL) was docked at the Port of Seattle with
only a skeleton crew. The association and APL have been in collective bargaining
talks since 1994. Some members of the Marine Engineers' Beneficial Association
have taken action in sympathy, and the International Longshore and Warehouse
Union has refused to handle cargo for the President Kennedy. With APL facilities
reportedly inactive in Seattle, an emergency arbitration hearing has been
called for 22 June in San Francisco.

Canada, United States resume salmon fishing talks

Talks between Canada and the United States on salmon fishing resumed
18 and 19 June in Vancouver, British Columbia, Canada. The United States
made a preliminary proposal to Canada which re-started the discussions.
On 21 May, discussions broke off after Canada said the U.S. negotiator,
Mary Beth West, did not have a mandate to negotiate reducing the catch
of sockeye salmon that migrate through U.S. waters to the Fraser River
in British Columbia.

Jones Act repeal bill submitted

Rep. Nick Smith, R-Mich., has introduced legislation in the U.S. House
of Representatives to repeal what is commonly known as the Jones Act. Nine
representatives have backed the bill.

Portgual plans law against blocking public transport

The Portuguese government approved a plan 19 June that will make blocking
public transport during a protest punishable by imprisonment for up to
three years. The plan requires parliamentary approval.

Nissos Amorgos freed by Venezuela

Insurance underwriters 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 Ltd.) have paid a U.S.$7.2 million bond to a Venezuelan
court. The ship has now been released. The Nissos Amorgos ran aground late
28 Feb. between buoys 20 and 22 in the channel of Lake Maracaibo, Venezuela,
and spilled at least 20,000 barrels of crude oil. The slick came ashore
on San Carlos and Zapara Island. 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., a subsidiary of Petroleos de Venezuela S.A. The oil was
for Agip Petroil S.p.A. The tanker was then arrested, along with its master,
and held until the recent payment. Underwriters have also paid several
fishermen whose work was affected by the spill, but another 1,000 protested
at the mouth of the channel 12 June.

Transroll Navegacao shifts to APL

Transroll Navegacao S.A. has ended its arrangements with Sea-Land Service
Inc. and has replaced them with agreements with APL Ltd.

Danish ferry workers agree to contract

Five minutes before a strike was to begin, 800 caterers on Danish-registry
ferries agreed to a one-year contract. The lowest wages will increase 2.25
Danish kroner/U.S.$0.33 per hour.

Euro-Baltic update

There are about 130 creditors of Euro-Baltic Shipping Ltd. and Euro-Baltic
Lines Ltd., affiliated firms offering shipping services between Europe,
Russia and the United States which recently decided to voluntarily liquidate.
There are U.S.$3.2 million in debts, largely as the result of cash-flow
problems stemming from the non-delivery of a ship that was to be chartered
from Baltic Shipping Co. in 1995. Though a court awarded U.S.$500,000 in
compensation, the money was too late to aid Euro-Baltic. Euro-Baltic began
operations in late 1993 and at the time operations ceased, had four vessels.
Of its personnel, 10 employees in the United States have been released
and 15 in Europe have been laid off.

Bell Lines in discussion with two new firms

The High Court in Dublin, Ireland, has granted Bell Lines two weeks
to discuss a restructuring package with two business entities. Both are
rumored to be Irish shipping firms. The move comes after investors led
by Irish Continental Group, including Citycorp Venture Capital and NatWest
venture, withdrew.

Blue Flag Navigation concedes

Nicholas Koros, president of Blue Flag Navigation Ltd., has conceded
that a Commercial Court judgement against him and the company in favor
of Societe Generale's shipping unit will stand. The judgement includes
U.S.$36 million against him. The court decided that the Unfair Contract
Terms Act of 1977 did not apply to loan agreements, an act that included
provisions excluding a borrowers right to withhold payments of offset or
counterclaims. An injunction has meant that assets of the company cannot
be handled or disposed of.

P&O Nedlloyd Container Line in agency changes

P&O Nedlloyd Container Line Ltd. and Ellerman Harrison Container
Line are changing their southern Africa trade agency arrangements for Europe.
At the end of July, CGM Sud will no longer handle the work. Instead, P&O
Nedlloyd Container Line will take over in Belgium, France, Germany, Luxembourg,
the Netherlands, Switzerland and eastern Europe. P&O Nedlloyd Container
Line will no longer handle representation of SCL (Safmarine/CMB Transport)
and DAL in France, the Netherlands and Switzerland.

Brazilian shipping bill signed

A bill opening the Brazilian shipping market to competition has been
signed into law. It also creates the "Special Brazilian Register."

New short sea shipping center in the Netherlands

An information center on short sea shipping has opened in the Netherlands.
It will collect and distribute options on shipping on such routes.

More on Lavinia-Yugreftransflot venture

More information has emerged regarding a joint venture of Lavinia Corp.
and Yugreftransflot. Lavinia has sold Yugreftransflot a 50 percent stake
in five new refrigerated ships being built by 61 Kommunards Shipbuilding
Yard in Nikolayev, Ukraine. They have jointly placed an order for two 270,000-cubic-meter/351,000-cubic-yard
refrigerated ships, which will carry palletized fruit. Over the next two
and a half years, the venture will receive a total of three such vessels
and four with a capacity of 500,000 cubic meters/650,000 cubic yards. All
seven will become part of the Alpha Reefer Transport pool. Reportedly,
each ship is to be mortgaged on delivery. The venture has received funding
from a group led by Deutsche Schiffsbank, which will be used as the ships
are delivered.

Update on venture of Pentow Marine and SmitWijs

Five tugs will be assigned to the SmitWijs/Pentow, the new global pooling
arrangement of Pentow Marine (Pty.) Ltd. and SmitWijs Towage C.V. Operations
will start 1 July with the Smit London (2,687-dwt, built in 1975), the
Smit New York (1,560-dwt, built in 1977) the Smit Rotterdam (2,687, built
in 1975) and the Smit Singapore (1,985-dwt, built in 1984) from SmitWijs,
and either the Wolraad Woltemade (2,055-dwt, built in 1976) or the John
Ross (2,055-dwt, built in 1975) from Pentow Marine.

Frontline to move to Bermuda

Shareholders of Frontline A.B. have approved a previously announced
plan in which ship management operations will go to Oslo, Norway, while
the rest of the company will become Frontline Ltd., based in Bermuda.

ROUTES AND SERVICES

Norasia to join Mediterranean Shipping service

Norasia Lines, through a slot-charter agreement at first, will join
Mediterranean Shipping Co. in a Southeast Asia service that includes Australia
and China. The first ship leaves Shanghai, China, on 7 Aug. Three 1,100-TEU
vessels will be used, but new ships from Norasia will be added in 1998
and 1999.

Nordana Line to continue without TMG

Nordana Line has announced it will continue operating a service between
the Mediterranean, Carribean and Venezuela. Next month, its partner, TMG,
will cease operating with Nordana on the route, which it began in February
1995. Nordana Line will use the multipurpose ships Nordana Advisor and
Nordana Benefactor on a frequency of 17 to 18 days.

New China to Japan services

Sea United Shipping Co. (Hong Kong) Ltd. will begin a weekly service
from Dalian, China, to the Japanese ports of Osaka, Tokyo and Yokohama
shortly. It will use the 170-TEU capacity Huang Hua Quan and the 200-TEU
capacity Yu Huan Quan (3,310-dwt dry cargo ship built in 1995). Ningbo
Ocean Shipping will start a fixed-day weekly service from Ningbo, China,
to Yokohama and Nagoya, Japan with the 320-TEU capacity Ming Zhou 8 (8,050-dwt
dry cargo ship built in 1977). Finally, Minsheng Kimbara will add a second
ship between Shanghai, China, and several Japanese ports including Mizushima.
Fukuyama will be called twice a week and Hiroshimato weekly.

Red Sea Feeder Shipping increases services

Red Sea Feeder Shipping Co. will increase frequencies of two routes
on 10 July. Three calls will be made each month between Jeddah, Saudi Arabia,
Hodeidah, Yemen; and Port Sudan, Sudan. On the Jeddah to Aqaba, Jordan,
service, calls will be six times each month. Instead of one ship on the
services, there will be three.

Ferry between China and Vietnam to start

A new passenger ferry will link Beihai, Guangxi Province, China, and
Haifang and Hongji in Vietnam. Beihai Maritime Co. has received needed
approvals.

Maersk offering service between China and Taiwan

Through a slot-chartering agreement, Maersk Line has entered the recently
opened trade between Kaohsiung, Taiwan, and the Chinese ports of Fuzhou
and Xiamen. Services are twice weekly using 300 to 400 TEU ships of Chinese
National Foreign Trade Transportation Corp. (Sinotrans) and Nan Tai Line
Co. Ltd.

New Crowley American Transport route

On 20 June, Crowley American Transport began a service from the U.S.
Gulf coast to Central America. Fixed-day weekly calls are made at Lake
Charles, La.; Puerto Cortes, Honduras; and Santo Tomas, Guatemala.

SCI offering Chennai to Colombo service

Shipping Corp. of India Ltd. has started a container service from Chennai,
India, to Colombo, Sri Lanka. It has a frequency of five days and uses
two ships, one of 314-TEU capacity and the other of 420-TEU capacity.

Maersk to call Luanda

Maersk Line will start calling Luanda, Angola. The fixed-day, biweekly
call will be made as part of its Africa service that includes Algeciras,
Spain, and Lisbon, Portugal.

Shipco Transport offering two additional consolidation services

Shipco Transport Inc., a non-vessel operating common carrier, is offering
two more direct consolidation services. The first use Neptune Orient Lines
Ltd. from New York to Nhava Sheva, India. The second is Orient Overseas
Container Line Ltd. from Los Angeles to Shanghai, China.

New ro/ro service to start from New Orleans to Veracruz

Nafta Xpress Lines/Grupo Naviero Keno will start a ro/ro service this
fall between New Orleans and Veracruz, Mexico. In November, it will receive
the first of four ro/ros being built by Stena A.B. Departures will be every
four days, with a sailing time of 39 hours. Each ship will cary 180 trailers.

Isabella Shipping calling Gulfport

Isabella Shipping Co. has begun calling Gulfport, Miss., carrying bananas.
Ships arrive every Monday and depart every Wednesday for either Puerto
Limon, Costa Rica, or Cartagena, Colombia. Ships arrive at those ports
on Sundays, though sailing can take three to five days.

CANALS, PORTS AND STRUCTURES

Russia to reduce tariffs on transit cargoes, Far East harbor rates

The Russian Ministry of Transportation and Far East Shipping Co. will
reduce tariffs on the transit of cargoes 10 percent on 1 July. Ports in
the Russian Far East will cut harbor rates 50 percent and local customs
operations will run continuously. Fewer documents will be nedded for transit
cargoes.

New J.H.T.A. president named

Mutsumi Ozaki has been named president of the Japan Harbor Transport
Association. He has served as vice president since 1992. Ozaki is also
president of Kanigumi Co., the second largest Japanese stevedore and the
largest at the country's six major ports. Ozaki was named to the post 18
June.

Container terminal planned at Tauranga

The Port of Tauranga, New Zealand, will spend New Zealand$2 million/U.S.$1.4
million to develop a container terminal at the Sulphur Point wharf. The
first phase will be done by the second quarter of 1998.

Port of Singapore Authority to develop terminal in Aden

The Port of Singapore Authority (PSA) signed an agreement 17 June with
Yemen Investment & Development International to build and operate a
container terminal at Aden, Yemen. It will cost U.S.$187 million. Initial
work will involve 700 meters/2,200 feet of berthing space, stacking areas,
roads, a power plant, buildings and cranes. The terminal will be operating
by March 1999. PSA has an option to take an equity interest.

Yangpu to get three more berths

The government of Hainan Province, China, and Chinese State Development
and Investment Corp. signed an agreement 18 June to expand the Port of
Yangpu in a 777 million Chinese yuan/U.s.$93.4 million deal. The port now
handles one million tons annually and was completed in 1991. A second phase
of construction will begin at the end of the year, and includes building
three 25,000-ton berths which will be able to handle 1.2 million tons of
cargo annually. They will be completed by 2000, and include three investors.
There are 4 billion Japanese yen/U.S.$35 million in loans, 64 million yuan/U.S.$7.7
million from Hainan and 330 million yuan/U.S.$39.7 million from Chinese
State Development and Investment.

Meizhou Bay to become large port area

China has announced that by 2005, Meizhou Bay in Fujian Province will
be a large industrial development zone with a port able to handle 100 million
tons of cargo annually. More than 200 billion Chinese yuan is being spent.
The northern area of the bay will contain facilities for chemical cargoes
and passenger ships, among other items, while the southern area will focus
on petrochemicals. Some 96 foreign-funded projects have been improved,
amounting to 13 billion yuan of investment.

Jingtang to get new ore berth

The Port of Jingtang in Hebei Province, China, will add a 250,000-dwt
ore dock. It will cost U.S.$200 million, with U.S.$37.6 million from foreign
sources.

First ship arrives at Deltaport at the Port of Vancouver

The President Truman (U.S.-registry 54,700-dwt containership built in
1988, operated by APL Ltd.) was become the first ship to call at the Deltaport
Terminal at the Port of Vancouver, British Columbia, Canada. The President
Truman arrived from Seattle on 8 June to unload 821 containers. The Canadian$224
million/U.S.$162 million terminal will double the port's container capacity
to more than 1.2 million TEUs. The 40-hectare/100-acre terminal has two
berths totaling 670 meters/2,200 feet, four post-Panamax gantry cranes,
rubber-tired gantry cranes, storage for 13,000 TEUs and computer systems
that include electronic data interchange capability. There are four tracks
of 1,100 meters/3,500 feet each for two 2,100-meter/7,000-foot double-stack
container trains and there are two high-speed rail-mounted gantry cranes.
Deltaport will handle 600,000 TEUs annually. The Deltaport Terminal is
a venture of Terminal Systems Inc., Vancouver Port Corp. and the country's
two largest railroads, Canadian National and Canadian Pacific. The port
will officially open 25 June.

Port charges to be reduced at three Australian ports

Changes in port charges at three New South Wales, Australia, ports will
take effect 1 July. The cuts of five percent will save Australian$6.4 million/U.S.$4.8
million. At Sydney and Botany Bay, A$3.4 million/U.S.$2.5 million will
be saved. A rebate for agents who transmit manifests electronically will
save A$830,000/U.S.$620,000; a reduction in the navigation services charge
will save A$480,000/U.S.$360,000; site occupation charges for cruise ships
calling Sydney will decrease 63 percent with an hourly rate of A$250/U.S.$190,
saving A$360,000/U.S.$270,000, an incentive based rental rebate to stevedores
will save A$470,000/U.S.$350,000, a reduction on wharfage for timber that
will save A$100,000/U.S.$75,000 and a reduction in port cargo access charges
at private oil berths and the bulk liquid berth which will save A$650,000/U.S.$490,00.
At Newcastle, coal exporters will benefit with A$1.5 million/U.S.$1.1 million
in savings while wharfage charges for grain will be cut to save A$500,000/U.S.$375,000.
At Port Kembla, savings will be made in regard to its multipurpose berth.

Los Angeles approves budget

The Los Angeles Harbor Commission has approved a budget for the coming
fiscal year, which starts 1 July. Some U.S.$32 million in revenues will
be transferred to the city. Among the items, U.S.$220.6 million will be
spent on improvements, most of it on the Pier 300/400 program, which includes
24 projects. An environmental study will be carried out on the West Basin
for future development possibilities.

Houston goes ahead with bond issue

The Port of Houston has selected Smith Barney to sell U.S$28 million
in unlimited tax bonds to finance expansion of the Houston Ship Channel.
Seventy-five percent of the project will be funded by the U.S. government.
The 80-kilometer/50-mile channel will be widened from 120 meters/400 feet
to 160 meters/520 feet and deepened from 12 meters/40 feet to 14 meters/45
feet. Over three to five years, some 47 million cubic meters/62 million
cubic yards of spoils will be moved.

Auckland sells Princess Wharf lease

Ports of Auckland Ltd. in New Zealand has sold its lease of the Princess
Wharf and its associated buildings to Kitchener Group for New Zealand$25.8
million/U.S.$17.7 million. The lease is for 98 years.

Report recommends pilots for ships sailing under new bridge

A report by Transport Canada issued 16 June states that pilots should
be required for vessels sailing under the center span of the Confederation
Bridge, which links Prince Edward Island to the mainland. Each passage
would reportedly cost shippers Canadian$1,100/U.S.$790. Some Canadian-registry
vessels and masters would be granted waivers, but foreign-registry ships
would not be exempted. The report also recommended changes to the 14-kilometer/8.7-mile
span, such as painting it in distinctive colors and adding lights.

Red Ivy to be used at Bahrain steel facility

The Red Ivy (Maltese-registry 81,659-dwt bulk carrier built in 1982)
is being converted to serve as the transshipment and storage vessel for
Gulf Industrial Investment Co.'s steel mill in Bahrain. Under a U.S.$70
million deal with Coeclerici Logistics, the mill will increase its annual
4.5 million tons of iron ore imports. The contact is for five years with
an option for five more. Bulk carriers up to 170,000-dwt will be partially
unloaded 64 kilometers/40 miles off the terminal. Ore will be loaded by
the Red Ivy with four grab cranes that can lift more than 70,000 tons of
ore. After the two day operation, both ships will unload their cargoes
at the terminal. The Red Ivy can unload 2,000 tons per hour with a 70-meter/230-foot
boom. The ship is being converted at a cost of U.S.$13 million and wil
lbe sold to Affinity Co. with management by Shipping Services, a subsidiary
of Coeclerici. The ship will arrive by early 1998. The Red Ivy will also
carry one million tons of export pellets to steel plants in Qatar and Saudi
Arabia, in addition to the 1.5 million tons transshipped.

Halifax Rescue Coordination Center changes location

The Rescue Coordination Center in Halifax, Nova Scotia, Canada, changed
locations on 13 June. The facility is now located in a room of the naval
headquarters building in the city at Her Majesty's Canadian Dockyard. The
50th anniversary of national search-and-rescue services in Canada is this
year, and celebrations were held throughout the country on 18 June.

Crane arrives at Khorfakkan Container Terminal

The Scan Pacific (German-registry 4,800-dwt ro/ro built in 1996, operated
by Harren & Partners Schiffahrts GmbH) delivered a Liebherr super post-Panamax
gantry crane to the Khorfakkan Container Terminal at Sharjah, United Arab
Emirates, this month. It is the first of two cranes with a 50-meter/160-foot
reach spanning 18 containers. The crane will be operational by the end
of July with the second coming in November.

SHIPYARDS AND EQUIPMENT SUPPLIERS

Seven begin hunger strike at Russian naval shipyard

Five women and two men began a hunger strike 17 June at a naval repair
facility in Polyarniy, Russia. The seven are employees of the Russian Navy
yard, and are demanding the payment of wages, which have not been received
since October. The Russian government owes 158 billion Russian rubles,
including 98 million rubles in wages.

Chinese yard to cut 432 employees

Guangchuan International announced this week its profit last year was
40 million Chinese yuan/U.S.$4.8 million. Considerably less than last year,
the yard is laying-off 432 employees, halving bonuses and reducing wages
five to 15 percent.

Relatives, workers protest at Malta Drydocks

Relatives of nine people killed on a ship at Malta Drydocks protested
outside the yard 18 June. Malta Drydocks has offered 275,000 Maltese pounds/U.S.$713,000
in compensation to victims of the nine killed in an explosion and fire
in February 1995 aboard the Um el Faroud (Libyan-registry 5,390-dwt tanker
built in 1969, operated by General National Maritime Transport). After
a meeting between relatives and the yard, the protest began after the two
sides could not agree on a resolution accepting the deal. The familes say
the compensation should not be involved in any damage awards by a court.
At midday 19 June, about 1,000 employees at the yard demonstrated in support
of the families.

Twelve container lessors file lawsuit against Venezuela

Twelve equipment leasing businesses based in Italy, the United Kingdom
and the United States announced 16 June they are suing Venezuela for breach
of contract. The lawsuit filed by the Institute of International Container
Lessors seeks U.S.$55 million. At issue is the repudiation by the Venezuelan
government of agreements with international investors. The 12 firms say
that the government encouraged Compania Anonima Venezolana de Navegacion
to become heavily dependent upon the government for financial support.
The 12 say that equipment, such as containers, leased to Venezuela through
CAVN were not paid for or returned. The firms that filed the suit in the
U.S. District Court for the District of Columbia are Bridgehead Container
Services Ltd., Cronos Container Ltd., Flexi-Van Leasing Inc., Interpool
Ltd., Matson Leasing Co. Inc., Sea Containers America Inc., Sea Containers
Italia S.r.l., Trac Lease Inc., Transamerica Leasing Inc., Trans Ocean
Container Corp., Triton Container International Ltd. and XTRA Inc. Leasing
arranagements were made from 1980 to 1992 and repayment plans were made
in 1993 and 1994. When CAVN did not pay, ships were arrested in 1994 and
evenutally released when partial payments and promises were made. In October
1995, CAVN was declared bankrupt, ceased operations and began liquidation.
From February to September 1995, an agreement was made so that the lessors
would be paid about U.S.$30 million. It was later repudiated by the government.

New shipyard in Iran

Iran recently opened a new shipyard at the mouth of the Persian Gulf.
At a cost of U.S.$550 million plus 200 million Iranian rials/U.S.$66,000,
the facility will build and repair ships. Also in Iran, construction has
begun on two drydocks near Bandar Abbas for ships up to 300,000-dwt.

Nichimo buys stake in Indonesian firm to build fishing vessels

Nichimo Co. has bought a stake in P.T. Kunangan Asiapac Marine and will
build inexpensive aluminum fishing vessels for use in Japan. Nichimo paid
Singaporean$300,000/U.S.$210,000 for a 13% share of the firm. The Indonesian
builder was formed in 1996 by an Indonesian shipping company and a Singaporean
construction business. Nichimo will also join in a technical venture with
an Australian marine architect.

ASMAR to upgrade Chilean shipyard

Astilleros y Maestranzas de la Armada (ASMAR) is planning to invest
U.S.$21 million in its Bahia Catalina shipyard in Punta Arenas, Chile.
The money will be spent on renovating repair facilities and buying new
equipment, as well as building a new office.

Shanghai Zhenhua Port Machinery planing I.P.O.

Shanghai Zhenhua Port Machinery Co. is planning to offer 100 million
"B" shares later this month in an initial public offering on
the Shanghai stock exchange.

Indian state, shipbreakers in new agreement

The Gujarat Maritime Board and the state's Shipbreaking Association
have renegotiated a memorandum of understanding on the scrapping of ships.
The original agreement was made after an explosion aboard a ship being
broken-up at Alang, India, which killed several people. Among the changes,
vessels now have to be five meters/16 feet from the edge of the shipbreaking
plot. The original agreement specified the distance as 10 meters/32 feet,
meaning that, ostensibly, more ships can now be broken up since more space
is available.

Chevron announces U.L.C.C. order

Chevron Corp. said 17 June it has ordered two 310,000-dwt ultra large
crude carriers from Samsung Heavy Industries Co. Ltd. for U.S.$170 million.
The tankers will be delivered in October 1999 and March 2000.

N.Y.K. orders V.L.C.C. from Mitsubishi

Nippon Yusen Kaisha Ltd. has ordered a 260,000-dwt tanker from Mitsubishi
Heavy Industries Co. Ltd. at a price of U.S.$83 million.

Atlantis Shipyard to build six vessels for Global Carriers

Atlantis Shipyard Pte. Ltd. will build six 7,000-dwt chemical tankers
for Global Carriers. Each will cost U.S.$18 million.

Iver Ships orders four chemical tankers

Iver Ships A/S has ordered four 46,000-dwt chemical tankers from Halla
Engineering & Heavy Industries Ltd.

A.P. Moller orders two more tankers

A.P. Moller has ordered two more 111,000-dwt tankers from Dalian Shipyard.
They will be delivered in 1999 and 2000, and bring the order to a total
of four ships.

Tai Chong Cheang Steamship orders two vessels

Tai Chong Cheang Steamship has ordered two bulk carriers from Halla
Engineering & Heavy Industries Ltd. The two 170,000-dwt ships will
be delivered in 1999 and cost U.S.$87 million.

ICH Holland to build two dredgers for DEME

Dredging, Environmental and Marine Engineering has ordered two dredgers
from IHC Holland N.V. The first, a 17,000-cubic-meter/22,000-cubic-yard
trailer dredge will cost U.S.$90 million. The second, a similar 13,700-cubic-meter/17,800-cubic-yard
dredge, will cost U.S.$55 million.

U.S. Coast Guard orders six oil skimmers

The U.S. Coast Guard has awarded a U.S.$547,226 contract to JBF Environmental
Services Inc. in Ellsworth, Maine, for six high-speed oil skimmers. There
are options for 20 more in the next three years that could amount to U.S.$3
million. The six on order will be sent to the three Coast Guard strike
forces at Fort Dix, N.J.; Mobile, Ala.; and Novato, Calif.

First Chinese passenger submarine completes trials

The Hanglu No. 1, the first passenger submarine built in China, recently
completed trials off Sanya, China. With a capacity of 43 passengers, the
submarine displaces 125 tons and is 23 meters/77 feet long.

Fenwick Shipping Services gets last bulk carrier of order

Fenwick Shipping Services Ltd. has received its last of four self-unloading
bulk carriers, the Sheng Mu. The 16,000-dwt vessels were built by China
State Shipbuilding Corp. Each has two 25-ton electric deck creanes and
eight grabs and can load or unload completely in 36 hours.

Sembawang Mulpha gets third Flying Cat

Sembawang Mulpha has taken delivery of a third high-speed aluminum passenger
catamaran from Kvaerner Fjellstrand Singapore Pte. Ltd. The Flying Cat
cost U.S.$5 million and will be used in the southern Philippines as the
WaterJet.

EVENTS, INCIDENTS AND OPERATIONS

Hans Peter Daimler sentenced to 14 years imprisonment

Hans Peter Daimler was sentenced to 14 years in prison by a district
court in Kiel, Germany, recently for his involvement in the sinking of
the Lucona (Panamanian-registry 1,209-gt general cargo ship built in 1966)
on 23 Jan., 1977. He was found guilty of a bomb attack, being an accessory
to murder and insurance fraud. The prosecution demanded a life sentence.
Six of the 12 crew were killed when the ship sank in the Indian Ocean after
an explosion. Daimler was reportedly an accomplice of Austrian businessman
Udo Proksch, who was sentenced to life imprisonment in Vienna, Austria,
in 1991 on six counts of homicide. The Lucona was supposed to have been
carrying a processing facility for uranium ore, which was insured for 33
million German marks/U.S.$19 million. A search of the wreck found only
scrap metal. Last year, Daimler said he faked insurance documents and gave
false testimony, but denied Proksch's plans to sink the ship. Daimler has
already spent seven years in jail. The trial lasted five years.

Darrell Stirewalt convicted in New Orleans

Darrel Stirewalt was convicted 14 June by a U.S. Coast Guard court-martial
in New Orleans of several sexual assault charges. A health services technician
second class, Stirewalt was charged with one count of rape and sodomy,
three counts of assault consummated by battery, four counts of indecent
assault, four counts of maltreatment and four counts of adultery. A petty
offier, he was a crewmember of the Balsam-class Seagoing Buoy Tender U.S.C.G.C.
Sweetgum (WLB 309), based in Mobile, Ala. In January, several female crewmembers
accused him of sexual assault starting in October 1995. All five victims
testified. Stirewalt, 26, has been confined at U.S. Naval Air Station Pensacola,
Fla. A native of Clemson, S.C., he could be sentenced to life in prison
and given a dishonorable discharge. The penalty phase was to be held 16
June.

U.S. Coast Guard evacuates injured fishing vessel crewmember

The U.S. Coast Guard evacuated an injured crewmember of the Mary Anne
(U.S.-registry 27-meter/90-foot fishing vessel, homeported at New Bedford,
Mass.) on 15 June, six kilometers/four miles south of Block Island, R.I.
The vessel notified the Coast Guard just before 1300 that Tiep Nguyen,
36, had been struck in the throat by a pelican hook while moving equipment.
He had difficulty breathing and pain in his collar bone and back. A 6.4-meter/21-foot
boat from the Coast Guard Search and Rescue Detachment on Block Island
took Nguyen to Old Harbor on the island. An ambulance took him to the area
hospital, where he was treated and released.

Minke whale killed by containership off Halifax

A 10-meter/33-foot minke whale was hit and killed by a containership
near Halifax, Nova Scotia, Canada, on 11 June. After being dragged by the
ship, the 10-ton whale washed ashore at Shore Road in the Eastern Passage
on 12 June. On the afternoon of 14 June, the Nova Sea, owned by Nova Dive,
dragged the whale off the beach and turned it over to the tug Tussel, owned
by Partridge Motor Boat Service. It was towed about 24 kilometers/15 miles
offshore and sunk in 90 meters/300 feet of water. Another minke also died
in the area 11 June after it was stranded in the Stewiacke River.

I.M.B. seeking talks with China on the Anna Sierra

The International Maritime Bureau is trying to arrange talks with China
after reports that the cargo of the Anna Sierra (Cypriot-registry 12,934-dwt
dry cargo ship built in 1971, operated by Thesarco Shipping and owned by
an Indian firm) may be sold. The ship was hijacked off Vietnam in 1995
and sailed to Beihai, Guangxi Province, China, where it was arrested. Those
aboard were released, without a trial, earlier this year. Now, there are
reports that security officials in Beihai are attempting to sell the U.S.$4
million in sugar aboard the ship. Selling the cargo to a Chinese government
business was reportedly rejected in favor of a private firm, though the
government operation offered more money.

Turkey detains ship that severed communications cable

Turkey has detained the Iolcos Pioneer (Panamanian-registry 135,502-dwt
bulk carrier built in 1974, operated by Iolcos-Hellenic Maritime Enterprises
Co. Ltd.). On 2 June, the ship's anchor damaged a major telecommunications
cable in the Dardenelles Strait near Canakkale, Turkey. The ship is being
held until the resolution of a court case brought by Turk Telekomunikasyon,
which owned the cable. The ship drifted at anchor and severed the cable,
resulting in a U.S.$500,000 revenue loss per day for Turk Telekom.

Croatia Line containership seized at Baltimore

The Dubrovnik Express (Maltese-registry 25,904-dwt containership built
in 1987, operated by Croatia Line) has been arrested at Baltimore by Genstar
Container Corp. and Transamerica Leasing Inc. The former is reportedly
seeking U.S.$4 million and the latter U.S.$2 million, regarding containers
leased to the line. The Dubrovnik Express was loaded at the time of its
arrest. This is the third time a Croatia Line ship has been arrested recently.
The first was in Egypt in April and the second earlier this month in New
York.

U.S. Coast Guard seizes two fishing vessels, escorts to Boston

On 17 June, the U.S. Coast Guard seized two fishing vessels homeported
in Massachusetts for alleged violations of the Magnuson Act. The action
was taken on behalf of the U.S. National Marine Fisheries Service. The
Perseverance (26 meters/84 feet long) and the Weymouth (31.1 meters/102
feet long) allegedly entered an area closed to fishing, refused to allow
a Coast Guard officer to board and interfered or delayed an investigation
of the United States. On 3 May, the Coast Guard's Bear-class Medium-Endurance
Cutter U.S.C.G.C. Escanaba (WMEC 907) seized the vessels and their catches
six kilometers/four miles inside Closed Area II, 280 kilometers/175 miles
west of Provincetown, Mass. After being spotted, the vessels fled in opposite
directions, turned off all lights and failed to answer hails. The Perseverance
was issued a closed area violation on 20 March in a similar incident. Homeported
at Fairhaven, Mass., it is owned by K & T Fishing Inc. and operated
by Kenneth H. Thuestad, of Mattapoisett, Mass. The Weymouth, based in New
Bedford, Mass., is owned by Susan Kinslow of Pocasset, Mass., and operated
by Albert Cousineau of New Bedford. On 18 June, the Coast Guard's "Island"-class
Patrol Boat U.S.C.G.C. Wrangell (WPB 1332) escorted the Perseverance to
the Boston Fuel and Transportaion Pier at the Port of Boston, where fisheries
agents were waiting. Another vessel of the class, the U.S.C.G.C. Jefferson
Island (WPB 1340) escorted the Weymouth to the pier the same day.

Greenpeace proclaims new state on Rockall

Greenpeace claimed Rockall on 15 June and declared it to be the new
state of Waveland. Three people - an Australian citizen, a British citizen
and a Germany citizen - hoisted a new flag and named the capital Rockall.
A tiny islet claimed by Ireland and the United Kindgom, the three were
protesting "the governance of a country (the United Kingdom) which
permits new oil exploration despite professed concern for the climate.
Waveland is a new kind of country designed to protect the global commons
rather than to exploit it." Eleven exploration licences for 58 full
and partial blocks in the Rockall Trough were awarded 4 June. Rockall is
354 kilometers/220 miles west of the Outer Hebrides of Scotland.

VESSEL TRANSFERS

Precious Shipping buys two vessels

Precious Shipping Ltd. has bought two second-hand ships for U.S.$21
million. Built in Japan, they will be delivered next month.

VESSEL CASUALTIES

Arcadia Pride sinks near Mumbai, 20 missing and four dead

The Arcadia Pride (Indian-registry 9,704-gt, 13,761-dwt general cargo
ship built in 1974, operated by Shipping Corp. of India Ltd. and owned
by Arcadia Shipping Pvt. Ltd.) sank in bad weather at 0900 19 June, 11
kilometers/seven miles west of the Prongs Reef Light near the inner approaches
to Mumbai, India. The ship was sailing to Mumbai with sulphur from the
United Arab Emirates. Of the 33 crew, 9 were rescued, 20 are missing and
four were killed. Among the missing are the master and his 4-year-old son.
Five helicopters and two vessels of the Indian government have continued
to search the area. The ship had waited three days for a berth, but in
a storm 19 June, its anchor began dragging. As it was brought aboard to
be repositioned, the Arcadia Pride was hit by a wave about nine meters/30
feet high that shifted the sulphur cargo and caused the ship to capsize.

Two dead, two missing after barge explodes in Louisiana

The tank barge Mallard Bay 52 exploded and caught fire 16 June in the
Atchafalaya River basin near Morgan City, La., at 30 degrees 04 minutes
north, 91 degrees 29.8 minutes west. Of the 22 people aboard, 18 were rescued,
two were killed and two are missing.

Tanker fire kills crewmember

One person was killed 15 June in a fire aboard the Okishio Maru (695-gt,
1,875-dwt tanker built in 1983, owned and operated by Nagashiki Kisen)
anchored at Yokohama, Japan. The fire began at 0100 and was extinguished
four hours later. Six of the seven crew escaped the fire, but Natsuo Fukui,
a 23-year-old cook, was killed.

Bulk carrier sinks after collision on Indian river

The Green Opal (Panamanian-registry 6,176-dwt bulk carrier built in
1976, operated by Dooyang Line Co. Ltd.) 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.
Two of the crew are Philippine citizens and the rest are South Korean.
The Green Opal was carrying 7,000 tons of steel coils and billets.

Ten rescued after ship sinks off Hong Kong with 480,000 cans of beer

The Hengtong 320 (Chinese-registry, 700-gt) capsized and sank off western
Hong Kong early 18 June in rough seas. All 10 crewmembers were rescued.
The ship was carrying 480,000 cans of beer and was sailing from Zhaoqing,
Guangdong Province, China, to Nanjing, Jiangsu Province. The crew was from
Fujian Province and had recently bought the ship for about 600,000 Chinese
yuan/U.S.$72,000.

Barge leaks hydrochloric acid in the Mississippi River

On 13 June, a cargo tank of the tank barge PVS 103, with 536,260 liters/141,120
gallons of hydrochloric acid, was holed near Baton Rouge, La. The Mississippi
River was closed for six hours while temporary repairs were made. The barge
was then taken to a local dock to unload its cargo before being towed to
a shipyard for repairs. Some 5,700 liters/1,500 gallons of acid spilled
and was recovered.

Engine room fire aboard tanker off England

On 14 June, the Mosking (Bahamian-registry 150,960-gt tanker) had an
explosion in an auxiliary boiler superheater, which started an engine room
fire. The fire has been extinuished but the ship is immoble. It arrived
off Falmouth, England, on 13 June from Torbay, England, to take on fuel.
The tanker is at 50 degrees 07 minutes north, 05 degrees 03 minutes west.

Deneb runs aground off Texas with 500,000 barrels of crude oil

The Deneb (Liberian-registry 50,272-gt, 91,070-dwt, 244-meter/800-foot
tanker built in 1985, operated by Acomarit Services Maritimes S.A.) ran
aground in soft mud outside the Sabine Bank Channel on 15 June, 24 kilometers/15
miles south of Sabine, Texas. The Deneb was loaded with 500,000 barrels
of crude oil and was refloated 16 June. It then sailed to an anchorage
for an underwater hull inspection. A power failure is believed to have
caused the grounding.

Calarasi update: one missing

The Calarasi (Liberian-registry 3,493-gt, 4,800-dwt general cargo ship
built in 1974, owned and operated by Navrom S.A.) lost engine power on
13 June at 31 degrees 39 minutes south, 29 degrees 42 minutes east. The
location is 19 kilometers/12 miles off Umzimvubu, South Africa. Weather
conditions in the area worsened, with seas of seven meters/23 feet. The
ship subsequently sank. Twenty of 21 crewmembers were later rescued by
two Oryx helicopters, 12 of them from a liferaft.

Bodies of two missing in barge capsizing found

The bodies of two people missing after a barge carrying sand capsized
2.4 kilometers/1.5 miles north of Pinole Point, Calif., on 10 June have
been found. The bodies of Reginald Edwards and Gregory Strak were found
after Fred Devine Diving and Salvage Inc. righted the barge, owned by Bell
Marine, on the ocean floor at 1800 14 June. It is in three meters/10 feet
of water. The crange barge No. 3 of Dutra Co., as well as equipment from
Manson Construction & Engineering Co., was used. The starboard deck
was heavily damaged. The barge, with sand from Benicia Point area, capsized
southwest of the Carquinez Bridge.

Canadian-registry bulk carrier aground in the St. Lawrence River

The Canadian Mariner (Canadian-registry 15,919-gt, 27,350-dwt, 12,243-nt,
222.50-meter/730.0-foot steam turbine bulk carrier built by Saint John
Shipbuilding and Drydock Co. Ltd. at Saint John, New Brunswick, Canada,
in 1963; operated by Upper Lakes Group Inc.'s ULS Corp.) ran aground in
the St. Lawrence River at 1030 18 June at Light 162. The ship reportedly
lost steering control and was carrying wheat. The Canadian Mariner has
taken on some water and the area has been closed to navigation.

Canadian warship grounds in Yarmouth

The Canadian Maritime Command Restigouche-class frigate H.M.C.S. Terra
Nova (DDE 259) ran aground on a sandbar at 1700 19 June entering Yarmouth,
Nova Scotia, Canada. Low visibility was reported in he area. The ship was
refloated with a rising tide in an hour. Divers inspected the bow where
the ship grounded and found no damage.

Bulk carrier hits Michigan bridge

At 1900 16 June, the Joseph H. Frantz (U.S.-registry 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.), hit the Veterans Memorial Bridge over the Saginaw Riber at Bay City,
Mich. The ship was sailing from the Wirt Saginaw Stone Dock. As the Joseph
H. Frantz approached, the bridge did not respond to the tender's controls,
and a radio problem prevented contact with the ship. The stern anchor was
dropped and the ship put in reverse, but it hit the east span. The west
span had been raised in the meantime. The bulk carrier sailed back to the
stone dock for an inspection, which found damage to forward starboard railings
and a boat launching station.

Cartierdoc loses power in the Welland Canal

At 1330 15 June, the Cartierdoc (Canadian-registry 16,414-gt, 28,591-dwt,
12,617-nt, 222.50-meter/730.00-foot motor bulk carrier built by Schlieker-Werft
at Hamburg, West Germany in 1959; operated by N.M. Paterson & Sons
Ltd.) lost power while upbound in ballast in the Welland Canal between
Lakes Erie and Ontario. The ship ran aground on a mud bank on the west
side of the canal, 760 meters/2,500 feet from the Homer Street Bridge,
between Port Weller, Ontario, Canada, and Homer, N.Y. The Argue Martin
(Canadian-registry 71-gt, 39-nt, 21-meter/69-foot tug built in 1895 with
800-horsepower, operated by McKeil Marine Ltd.) towed the Cartierdoc stern
first and the ship moored above Lock No. 2 where repairs were made. The
ship sailed early 16 June. A turbocharger reportedly was the cause.

Barbados-registry ship disabled off the United Kingdom

The Elisabeth C. (Barbados-registry 1,768-gt, 2,823-dwt general cargo
ship built in 1971, operated by Carisbrooke Shipping P.L.C.) had rudder
problems on 16 June sailing from Shoreham, England, to Belfast, Northern
Ireland. The ship was towed to Milford Haven, Wales, and moored at the
Pembroke Dock.

P&O Cruises ship has four small fires

Four small, unconnected fires were found in crew spaces aboard the Victoria
(5,572-dwt passenger ship built in 1966, operated by P&O Cruises (U.K.)
Ltd.) on 17 June, as it sailed from Bornholm, Denmark, to Rostock, Germany.
They were all found within 45 minutes of each other and caused little damage.

Gard River towed to Sweden

The Gard River (Antiga and Barbuda-registry 2,178-gt general cargo ship)
had a mechanical failure in the Baltic Sea on 20 June and has been towed
to Gothenburg, Sweden.

Report issued on capsizing that killed three U.S. Coast Guard personnel

The U.S. Coast Guard released a report on 18 June on the capsizing of
a Coast Guard 13-meter/44-foot motor lifeboat 12 Feb. near La Push, Wash.
The three crewmembers were killed. According to the report, the helmsman
failed to get assistance from a more experienced crewmember. If a "surfman,"
someone with extensive lifeboat training in heavy surf, had been aboard,
as regulations dictated, the lifeboat likely would not have capsized, according
to the report. The helmsman also failed to inform superiors of surf and
weather conditions. His qualification had been recinded in 1995. The three
people who wrote the report called for a review of Coast Guard lifeboat
operations.

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

Oldest Dutch ship afloat to be restored

The Bonaire, the oldest Dutch vessel afloat, will be rebuilt in Den
Helder, the Netherlands. Built in 1876 and 1877, the ship is 53.6 meters/176
feet long, has a beam of nine meters/30 feet and 750 square meters/900
square yards of sail. It also has an engine. Built of wood with steel frames,
the ship became a dormitory in 1902 and was sold to the Royal Netherlands
Navy in 1924 as the Abel Tasman, for training at Delzijl. The Bonaire will
now be restored in a drydock built in 1822.

Replica of Athenian trireme arrives at Thessaloniki

A replica of an Athenian trireme arrived at Thessaloniki, Greece, on
13 June. The Olympias, based on a design from the 5th century B.C.E., has
places for 170 rowers, linen sails and bronze rams. After transport by
the Greek Navy Chios-class ("Jason"-class) Tank Landing Ship
H.S. Ikaria (L 175), it was lifted onto a platform by a floatingc crane
and tugs. The Olympias was built in Perama, Greece, with the assistance
of two British history professors and Greek Navy officers. An exhibition,
"The Hellenic Navy," is being held on the H.S. Ikaria.

Dutch government building new facility for underwater archaeology

The Dutch government is building a new structure in the shape of an
an overturned hill near the reconstructed sailing ship Batavia, in Lelystad,
the Netherlands. The building will house the institute of underwater archaeology
and will cost 8.5 million Dutch guilders/U.S.$4.4 million.

Canadian naval vessel commissioned in Quebec

The Canadian Maritime Command Kingston-class Maritime Coastal Defense
Vessel H.M.C.S. Swawinigan (MCDV 704) was commissioned 14 June at Trois-Rivieres,
Quebec, Canada. Aline Chretien, wife of Canadian Prime Minister Jean Chretien,
was the sponsor. Trois-Rivieres is the prime minister's home town. MCDV
704 is named for another Canadian naval vessel of the same name. In 1944,
the ship was sunk by a German Navy submarine in Cabot Strait off Newfoundland.
Ninety-one crewmembers were killed. MCDV 704 was launched 15 Nov., 1996,
at Halifax Shipyard Ltd. in Halifax, Nova Scotia. The ship will be homeported
at Halifax.

Idaho students name U.S. Navy submarine demonstrator

Students at Athol Elementary School in northern Idaho have named the
U.S. Navy's second Large Scale Vehicle (LSV 2), which when completed in
2001, will be the largest autonomous submarine in the world. Students chose
the name Cutthroat after the Westslop Cutthroat Trout of northern Idaho
and western Montana. The Cutthroat will be a quarter-scale version of the
New Attack Submarine (NSSN) and will be used as a technology demonstrator.
It will operate at Lake Pend Oreille in Idaho with the Navy's Acoustic
Research Detachment in Bayview, Idaho, part of the U.S. Naval Surface Warfare
Center's Carderock Division.