- Transport on Line - hiltunen.htm

BUSINESS

United Kingdom to join the Law of the Sea

The United Kingdom will join the United Nations Law of the Sea on 24
Aug. There are 117 member countries. Changes in seabed mining provisions
undertaken in July 1994 made the agreement acceptable to the United Kingdom.
In one of the first changes, fishing limits will need to be redrawn from
St. Kilda.

Hamburg-Sud restructuring to cut at least 90 employees

Hamburg-Sud Shipping Group will restructure its Hamburg, Germany, headquarters,
cutting between 90 and 440 personnel by the end of the year. The firm plans
to save 30 million German marks/U.S.$17 million. Internally, Hamburg-Sud
will operate with four regions: Australasia, Europe, North America and
South America.

New professional society for engineers

The Institute of Marine Engineers is planning to form a new professional
organization for senior sea-going engineers, in recognition of their qualifications
and experience.

Asian Bulk Shipping formed

Mitsui O.S.K. Lines and Regional Container Lines Ltd. have formed Asian
Bulk Shipping to carry bulk cargoes to and from Thailand. Regional Container
Lines owns 51 percent with Mitsui O.S.K. the rest.

U.S. Senate votes to lift ban on tuna from the eastern Pacific

By a vote of 99 to 0 on 30 July, the U.S. Senate voted to lift a ban
on imports of tuna from the eastern Pacific. The ban, which was intended
to bring only "dolphin-safe" tuna to stores, was enacted seven
years ago. The U.S. Secretary of Commerce will make a determination in
March 1999 on whether new fishing techniques protect dolphins, in which
case tuna could be marketed as "dolphin-safe" once again. A final
decision would be made by 31 Dec., 2002. In May, the U.S. House of Representatives
passed a bill lifting the embargo but retaining the label without a study.
In October 1995, 12 countries signed the Declaration of Panama, which limits
the total number of dolphins killed by net fishing to 5,000. They include
Belize, Colombia, Costa Rica, Ecuador, France, Honduras, Mexico, Panama,
Spain, the United States, Vanuatu and Venezuela. Under the Senate bill,
fishing vessels in the eastern Pacific could use fishing methods that may
kill dolphins, but observers on board will determine whether the fishing
is "dolphin-safe" and warrants the label.

Shareholders take majority of Bureau Veritas

The two leading shareholders of Bureau Veritas have increased their
collective stakes from 40 percent to a majority 69 percent.

APL concludes agreement with deck officers' union

APL Ltd. on 31 July said it has concluded a new labor agreement with
members of the International Organization of Masters, Mates and Pilots.
The agreement affects 72 deck officers on APL ships which must ratify it.
Talks lasted 11 months.

Canadian Coast Guard sues to recover cost of Irving Whale salvage

The Canadian Coast Guard has filed a lawsuit to recover the cost of
the recovery of the 7,000-ton tank barge Irving Whale. The claim for Canadian$42,447,638.75/U.S.$30,651,439.94
was filed in federal court in Fredericton, New Brunswick, Canada, on 29
July. Those named include Atlantic Towing Ltd. (the operator of the tug
towing the barge), J.D. Irving Ltd. (the owner of the barge), Irving Oil
Co. Ltd. (owner of the cargo), Universal Sales Ltd. (the tug's owner) and
the administrator of the Canadian Ship-Source Oil Pollution Fund. A bill
was presented in April and talks began soon after without success. The
Irving Whale was raised from the Gulf of St. Lawrence 60 kilometers/37
miles northeast of Prince Edward Island, or 100 kilometers/62 miles southwest
of the Magdalen Islands, at 0854 30 July, 1996. It sank in a storm 7 Sept.,
1970, in 67 meters/220 feet of water with 3,100 tons of Bunker C oil and
6,800 liters/1,800 gallons or 7.2 tons of polychlorinated biphenyls (PCBs).
Following testing of the site in 1992, the decision was made to raise the
barge. J.D. Irving contends that it has already paid for salvage of the
Irving Whale though contributions to the Ship-Source Oil Pollution Fund
in the 1970s and 1980s. J.D. Irving includes interest on the amount contributed.

Spanish shipping lines join to lobby government on cabotage

Seven Spanish shipping firms have formed La Mesa del Transporte Maritimo
Regular, which will lobby the Spanish government to "level" Spanish
cabotage before it is opened under European Union mandates in 1999. It
includes Naviera Navicom, Naviera Nenufar, Naviera Pinillos, OPDR Canarias
S.A., OPDR Consortium Hispania, Transatlantica and Transmediterranea. They
are specifically protesting the 45 percent of container cargo moving between
Spain and the Canary Islands that is held by Contenemar S.A. Contenemar
offers discounts of up to 40 percent on tariff rates, but owes 3.6 billion
Spanish pesetas/U.S.$23 million in back taxes and another 12.2 billion
pesetas to Banco Argentaria. The money has been owed at least 12 years.

Singapore extends limits

Following the boardings of at least 10 vessels off Singapore by Indonesian
government personnel, the Port of Singapore has extended its limits. A
notice to mariners issued by Indonesia 3 Dec. warned vessels against anchoring
or conducting operations around the Nipa Lighthouse, just outside Singapore,
which is near the Traffic Separation Scheme in the area between Indonesian
and Singaporean waters. Recently, Indonesia boarded several vessels, which
were refueling or taking on supplies in the area outside port limits, and
levied fines and took some masters into custody. The managing director
of a firm that had certificates of a ship confiscated and an agent detained
said the fines were "negotiable" and no receipt was issued. Releasing
documents or personnel reportedly cost Singaporean$35,000/U.S.$24,000 to
S$50,000/U.S.$35,000.

Ownership of Shanghai Hai Xing Shipping transferred

The transfer of 56 percent of Shanghai Hai Xing Shipping Co.'s shares
by Shanghai Shipping (Group) Co. to China Shipping (Group) Co. was completed
21 July. China Shipping Group is owned by the Chinese Ministry of Communications.
China Shipping Group will now have 450 vessels of eight million deadweight
tons, and will carrying 65 percent of coal imports and 90 percent of crude
oil imports. But it only has a capacity for 5,000 TEUs.

U.S. Navy awards contract to clean-up island

On 31 July, the U.S. Navy selected five firms to clear unexploded ordnance
and restore the environment on Kaho'olawe Island, Hawaii. The U.S.$280
million contract, which will last through 2004, includes Parsons Infrastructure
& Technology Group Inc. and UXB International Inc. Also included are
Austin, Tsutsumi & Associaties, BioGenesis Pacific Inc., Cultural Surveys
Hawaii, DynCorp Enterprise Management, Royal Contracting Co. and the University
of Hawaii at Manoa's College of Tropical Agriculture and Human Resources.
Work should start in three to six months.

German firm forms Dutch unit

Shareholders of Hansa Mare Reederei GmbH & Co. KG are setting-up
a new business in the Netherlands.

Interocean/Ugland Management to take over ships

Interocean/Ugland Management A/S's office in London, which operates
11 ships (including seven of Argonaut) and 18 of UB Shipping Liner Services
Ltd., will transfer control to Interocean/Ugland Management in Grimstad
by the end of the year.

BNDES changes lending regulations

Starting in early August, BNDES will change its regulations on funding
port projects in Brazil. It will finance entire projects for Brazilian
firms or up to 80 percent for foreign companies.

Canadian Pacific purchase of Lykes completed

On 30 July, Canadian Pacific Ltd. completed its U.S.$34 million purchase
of Lykes Bros. Steamship Co.'s brand name, organization, containers, contracts,
routes and financial responsibility. Canadian Pacific will operate it as
Lykes Lines Ltd., and will charter six containerships and two other vessels.
The containerships are U.S.-registry and are owned and operated by with
U.S. citizens. They include four of Lykes' former Pacific-class ships of
2,800 TEU capacity, owned and operated by Sea Crews II. The two Oceanus-class,
of 2,500-TEU capacity, are included as well. All sail between Northern
Europe and the United States. Also on charter, from First American Bulk
Carrier Corp., are the Tillie Lykes and the Tyson Lykes, sailing berween
southern Africa and the United States. Lykes Lines will charter ships for
service between the Mediterranean and the United States as well.

Royal Carribean International, Celebrity Cruise Lines deal complete

Royal Carribean International's purchase of Celebrity Cruise Lines Inc.
for U.S.$1.3 billion was completed 30 July in Paris. The two lines will
be marketed separately, but have a combined fleet of 17 ships with almost
30,000 berths. Some 150 destinations are called.

Subcomittee approves money to explore replacements for U.S.C.G.C. Mackinaw

The U.S. House or Representative's Subcommittee on Coast Guard and Maritime
Affairs has approved U.S.$2 million "for concept exploration to refine
the specifications and costs for a heavy icebreaking replacement vessel,
including a multi-mission vessel" to replace the icebreaker U.S.C.G.C.
Mackinaw (WAGB 83). The ship operates on the U.S. Great Lakes.

Seascope Shipping Holdings delays I.P.O.

Seascope Shipping Holdings P.L.C. has delaye an issue of 4 million British
pounds/U.S.$7 million in shares. The money would be used to repay debt
and preferred capital of 2.25 million pounds/U.S.$3.77 million. Guinness
Mahon & Co. was to be the sponsor. The issue will now take place later
this year.

Intermarine expands in Houston

Intermarine has moved its Houston office to Atrium 10 Tower and now
has 25 personnel. Four sales representatives and three traffic and documentation
personnel were added, and a new representative for vessel operations was
hired.

Nigel Parkes Shipping using T.T.R.M.P.

Nigel Parkes Shipping has begun using the Through Transport Repair Maintenance
Program from TT Club and Unicon International. TT Club will cover the cost
of repairs and maintenance to the firm's containers, while Unicom International
will authorize needed repairs through container depots. Nigel Parkes Shipping
will pay a single monthly fee.

Carriers Container Council opens in Houston

The Carriers Container Council will open an office in Houston this month.

"K" Line moving Singapore office

Kawasaki Kisen Kaisha Ltd. moved its Singapore office effective 26 July.
It is now at 52/54/56 Peak Seah Street, Heritage Court, Singapore, 079319.

ROUTES AND SERVICES

Hanjin Shipping expanding China America Express Service

Hanjin Shipping, along with Tricon, is expanding its China America Express
Service. Using six 2,700-TEU capacity containerships, calls are made at
Dalian, China; Xingang, China; Qingdao, China; Pusan, South Korea; Shanghai,
China; Long Beach, Calif.; Portland, Ore.; Seattle; Yokohama, Japan; Kobe,
Japan; and Dalian.

United Arab Shipping to sail from Khorfakkan to Kuwait, elsewhere

United Arab Shipping Co. is starting a weekly route from Khorfakkan
Container Terminal to Mina al Shuwaikh and Mina al Shuaiba in Kuwait. The
Jebel Ali (United Arab Emirates-registry 24,302-dwt, 1,612-TEU capacity
containership built in 1979, operated by United Arab Shipping) will also
call at Abu Dhabi, United Arab Emirates, and Dammam, Saudi Arabia.

C.G.M. to offer western Mediterranean to South Africa routing

Compagnie Generale Maritime is offering western Mediterranean to South
Africa cargo service as of 1 Aug. Four 700-TEU capacity vessels, sailing
to Reunion and Mayotte, will transship containers to two 250-TEU vessels
that will call Durban, South Africa, every two weeks.

Yangming Marine Transport to expand cross-strait services

Yangming Marine Transport Corp. has received approval from the Port
of Kaohsiung, Taiwan, to start a container service from the port to Qingdao
and Shanghai, China. One ship will sail from Kaohsiung to Shanghai and
Ningbo, China, and two others will sail from Kaohsiung to Qingdao, Dalian
and Tianjin, China. Calls will be weekly. The ships are Singaporean-registry
and have a capacity of 1,000 TEUs.

Zim Israel Navigation's Pacific service

The port rotation for Zim Israel Navigation Co.'s new Pacific container
service is Shekou, China; Hong Kong; Pusan, South Korea; Osaka, Japan;
Yokohama, Japan; and Long Beach, Calif.

Yangming Marine Transport linking with Kien Hung Shipping?

Reports have suggested that Yangming Marine Transport Corp. will join
Kien Hung Shipping Co. Ltd. in a container service in the Southern Hemisphere,
with at least one Yangming Marine Transport ship involved. It would start
next month. Yangming Marine Transport has denied the reports.

Sinotrans Fujian Xiamen to call Xiamen

The Gold City (196-TEU capacity), owned by Sinotrans Fujian Xiamen Co.,
will begin calling Pacific Ports Co.'s Xing Yu Quay in Xiamen, China, shortly.
The ship will call at Yokohama, Japan; Xiamen; Fuzhou, China; and Hitachi,
Japan.

OT Africa Line names agents

OT Africa Line Ltd. has recently been appointing agents in Hong Kong,
Japan, Malaysia and Singapore, as its seeks to capture cargo from Asia.

CANALS, PORTS AND STRUCTURES

Rio de Janeiro State firm begins lay-offs

Companhia Docas do Rio de Janeiro, the management firm for Rio de Janeiro
state ports in Brazil, has begun to lay-off 1,300 employees. The decision
to cut its employees to 500, at a cost of 44 million Brazilian reals/U.S.$41
million, is part of a privatization project. The cost will be paid by granting
concessions for port facilities.

New Philippine freeport?

Feasibility studies have begun on a plan to open a freeport in Cagayan
Province, the Philippines, within 10 years. Roads have already been built
and a 4,000-hecatre/9,800 acre site chosen.

Technicality bars new port in Helsinki

The Finnish Supreme Court of Administration has rejected a new port
at Vuosaari, Finland, near Helsinki. The Finnish Ministry of the Environment
approved the port, except for rail and road connections. Supporters then
went to the court, asking that it declare the rail and road items separate
from the port so the project could move ahead. The court rejected the request.

Panama to pay Hutchison Whampoa U.S.$50 million

Panama is planning to pay Hutchison Whampoa U.S.$50 million, following
the disclosure that the government had miscalculated finances for two privatized
ports.

British Gas to build Indian L.N.G. terminal

British Gas P.L.C. is planning to build a 244 million British pound/U.S.$400
million liquified natural gas terminal in India. It submitted an application
to the Indian Foreign Investment Promotion Board on 28 July. The facility,
at Pipavav, India, would handle two and a half million tons of L.N.G. annually
starting in 2001.

More on Philippine, Singapore agreement

More information has become available on a memorandum of understanding
signed between the Philippine Port Authority and the Port Authority of
Singapore to develop Philippine ports. The project envisions a new port
at Pagbilao and an upgrade at Cebu that will cost 9.81 billion Philippine
pesos/U.S.$339 million. New berths and a ferry terminal would be built.
At Iloilo, 620 million pesos/U.S.$21.4 million would be spent on a reclamation
works, berths, freight stations and roads. At Pulupandan, 310 million pesos
U.S.$10.7 million would be used to dredge the harbor and build more berths.

Four leases signed at Brazilian ports, Cosipa to start terminal

Companhia Siderurgica Nacional has leased a terminal the Port of Sepetiba,
Brazil, for 39 million Brazilian reals/U.S.$36 million. It will be used
to import coal. Camargo Correa, Feterco and Sorus have leased two steel
terminals and a cement warehouse at Rio de Janeiro, Brazil, and will invest
34 million reals/U.S.$31.5 million over five years. Cosipa has announced
it will begin operating its steel termianl at Cubatao, Brazil, in early
August. Cosipa has hired its own employees, which it says will save at
25 million reals/U.S.$23 million to 30 million reals/U.S.$28 million compared
to the state's dockworkers.

CODESP announces Tecon I privatization

Companhia Docas do Santo Paulo announced the terms and conditions of
privatization of Tecon I at Santos, Brazil, on 24 July. The container terminal
currently occupies 366,000 square meters/439,000 square yards, and can
be expanded by 118,000 square meters/142,000 square yards. Annual handling
capacity is 200,000 TEUs. Scheduled for auction in mid-September, Tecon
I's minimum price is 101.18 million Brazilian reals/U.S.$93.430 million
for a 25-year concession. Extensions are available and bidders must have
a net worth of 13 million reals/U.S.$12 million.

Colombo receives development panel

Sri Lankan President Chandrika Kumaratunga has named a 12-member task
force to advise on development of the Port of Colombo, Sri Lanka.

Reductions in South Australia

Ports in South Australia will reduce several port charges on 1 Sept.

Aqaba to cut export charges on containers

The Port of Aqaba, Jordan, will reportedly halve loading charges for
container exports soon. It will likely come into effect early this month,
and would exlude bulk cargo exported under established bitateral agreements,
such as phosphate and potash.

Manila to increase handling rates

The Port of Manila, the Philippines, will increase cargo handling fees
at its two primary international terminals over the next eight months by
25 percent.

Fangcheng to add two berths, Sandu'ao one

Guangxi Zhuang Autonomous Region in China is planning to spend 670 million
Chinese yuan/U.S.$81 million to build two 10,000-dwt berths at the Port
of Fangcheng. Construction will begin next month on the berths, which will
handle 2.64 million tons annually. Some 200 million Chinese yuan/U.S.$24.1
million will be spent to build a 10,000-dwt berth at Sandu'ao, Fujian,
China. It may handle 500,000 tons annually.

Ventspils gets loan for dredging

The European Investment Bank has granted a 20 million E.C.U./U.S.$22.5
million loan to the Ventspils Port Authority. The loan will be used for
dredging and other work at the Latvian port.

Houston to spend U.S.$1.56 million on master plan

The Port of Houston will spend U.S.$1.56 million to develop a master
plan for a container and passenger terminal at Bayport on Galveston Bay,
Texas. The Port of Houston recently received a 20-year lease, with four
five-year options, for the operation of the East End Container Terminal
at the Port of Galveston. The 14-hectare/36-acre facility has two berths
and four cranes, and the lease is U.S.$500,000 for the first year, U.S.$1
million thereafter. Some U.S.$500,000 to U.S.$750,000 will be spent on
upgrading the cranes. It will handle 60,000 TEUs annually.

Mobile Bay open again

The Port of Mobile Bay, Ala., was closed 17 July during the approach
of Hurricane Danny but reopened 22 July. The Gulf Intracoastal Waterway
was closed from Pensacola, Fla., to Pascagoula, Miss., but it has also
reopened. Outlets to the Port of New Orleans are also now open.

Two former Maryland politicians select dumping site for spoils

Torrey C. Brown, a former Maryland Department of Natural Resources Secretary,
and O. James Lighthizer, a former Maryland Department of Transportation
Secretary, have formed a company based in Baltimore to dispose of dredging
spoils from the Chesapeake Bay. They want to use 200 hectares/500 acres
of corn fields near Tolchester, Md., on the Chantilly Farm and the Heart's
Desire Farm. Some 11 million cubic meters/15 million cubic yards of spoils
would be deposited on the soil, raising ground level by up to 3.7 meters/12
feet. After using the site five years, and with a 4.6-meter/15-foot birm
in place, topsoil would be replaced and it would be returned to farming.
The proposal has generated considerable opposition from the local population.

SHIPYARDS AND EQUIPMENT SUPPLIERS

Bremer Vulkan Verbund to close

Bremer Vulkan Verbund AG will officially close 15 Aug. The last ship
built by Bremer Vulkan Verbund, the Hansa Constitution for Hansa Treuhand
Schiffsbeteiligungs AG & Co., will have sea trials 9 and 10 Aug. It
cost 56.5 million German marks/U.S.$31 million. Bremer Vulkan Verbund declared
bankruptcy on 1 May, 1996. Of 1,900 employees at the time, only 400 have
found work elsewhere.

General Electric makes offer for Central Transport Rental Group, ex-Tiphook

General Electric Co.'s GE Capital Corp. has offered to buy Central Transport
Rental Group P.L.C. for 118 million British pounds/U.S.$193 million in
cash. The offer places a 129 percent value on the firm's shares, or 16
pence each, and GE Capital will assume 223 million pounds/U.S.$366 million
of debt. Central Transport Rental Group has 22,500 trailers and 132 depots
in nine European countries. Central Transport Rental Group will be combined
with TIP Europe. It was formerly known as Tiphook P.L.C. Some 44.5 percent
of Central Transport Rental Group shareholders have accepted the offer.

Japanese shipbuilders in 1996

Mitsubishi Heavy Industries Ltd. had the most orders for ships last
year in Japan, accounting for 12.4 percent. This is down 1 percent from
1995. Ishikawajima-Harima Heavy Industries Co. Ltd. was second at 6.8 percent,
up 0.8 percent. Hitachi Zosen K.K. was third at 6.5 percent, down 4 percent.
In fourth was Mitsui Engineering & Shipbuilding Co. Ltd. with 6.2 percent,
also down 4 percent.

Chiyoda to build tanker scrapping facility in India

Chiyoda Corp. has received a contract worth 8 billion Japanese yen/U.S.$67
million to build a tanker demolition facility in Gujarat State, India.
It will be completed by mid-1999 in conjunction with an Indian firm. The
facility will be capable of scrapping eight 120,000-ton tankers annually,
and will have a pollution containment system.

Three Japanese shipbuilders attempting to replicate worker experience

Three Japanese shipbuilders are working to develop computerized integrated
manufacturing systems. The idea, reportedly, is to computerize the experience
and knowledge of shipbuilding kept by older employees, which would otherwise
be lost when they retire. Mitsubishi Heavy Industries Ltd. will spend more
than 1 billion Japanese yen/U.S.$8 million annually. Also working on similiar
projects are Ishikawajima-Harima Heavy Industries Co. Ltd. and NKK Corp.

Keppel Singmarine Dockyard gets I.S.O. 9001

Keppel Singmarine Dockyard Pte. Ltd. has received U.S.O. 9001 certification
from the American Bureau of Shipping.

P&O Nedlloyd orders new containers for U.S.$99 million

P&O Nedlloyd Container Line Ltd. has ordered some 40,000 containers
worth U.S.$99 million from CIMC, Hyundai and Yindo. The order includes
11,000 TEUs including 3,000 refrigerated units and 14,500 FEUs as well
as 14-meter/45-foot containers and hi-cube units.

Astoria Metal fined for work on the Glomar Explorer

The U.S. government has fined Astoria Metal Corp. U.S.$415,100 for violating
safety regulations as its employees worked on the Glomar Explorer at Hunter's
Point Naval Shipyard in San Francisco. The U.S. Occupational Safety and
Health Administration said 27 people were exposed to lead and other unsafe
conditions this past winter. Astoria Metal was fined for five violations.
Among them was allowing personnel cut and burn metal treated with toxic
materials. The Glomar Explorer is nw sailing to Atlantic Marine Inc. in
Mobile, Ala., where its U.S.$180 million conversion to a deep-water drillship
will be completed. It will arrive in September. The ship will be able to
drill to 10,000 feet. The Glomar Explorer, which has a colorful past, is
on a 30-year charter from the U.S. Navy.

SI Technologies ships caisson transfer system to Singapore

SI Technologies Inc.'s AeroGo Inc. has shipped a caisson transfer system
worth U.S.$1.7 million to Hyundai Engineering & Construction Co. Ltd.
The water-bearing system will be used at the Port of Singapore to move
97 concrete caissons weighing 5.4 million kilograms/12 million pounds each.
They are the foundation for the Jurong Island Road Link. Two caissons will
be launched weekly, each 23 meters/75 feet long by 18 meters/60 feet tall
by 30 meters/100 feet long.

Kvaerner Masa-Yards employees get reward

Three personnel of Kvaerner Masa-Yards Inc.'s shipyard in Turku, Finland,
have been given a total of 55,000 Finnish marks/U.S$10,000 for innovations
that helped it to secure an order for five liquified natural gas carriers
from Abu Dhabi National Oil Co. earlier this decade. The order was worth
5 billion marks/U.S.$1 billion. Matti Heinakari, Jukka Gustavsson and Ari
Sipila developed a new welding technique and a new method for handling
thick aluminum sheets.

Korea Gas ordering seven L.N.G. carriers

Korea Gas Corp. is spending U.S.$1.75 billion to order seven liquified
natural gas carriers from South Korean shipyards.

Methanex to build largest methanol ship, one other in addition

Waterfront Shipping Co. Ltd., a subsidiary of Methanex Corp., announced
29 July it has ordered two methanol carriers, including what will be the
largest such ship in the world. The larger ship, at 96,000-dwt, has been
ordered from Mitsui O.S.K. Lines, which has contracted Nomura Shipyards
Co. Ltd. for construction at Osaka, Japan. The other vessel, of 45,000-dwt,
will be built by a joint venture of Minaminippon Shipbuilding Co. Ltd.
and Mitsui Engineering & Shipbuilding Co. Ltd. The ship will actually
be built at Minaminippon Shipbuilding's facility in Usuki, Japan. Both
ships will be delivered during the second half of 1999 and will carry methanol
from Chile.

Daedong Shipbuilding to build two chemical tankers

Daedong Shipbuilding Co. Ltd. has received an order worth U.S.$32 million
from a Hong Kong firm for two 10,500-dwt chemical tankers. Construction
will begin in September for delivery in the second half of 1998.

Leif Hoegh orders car carrier from Polish shipyard

Leif Hoegh & Co. A/S has ordered a car carrier from Stocznia Gdynia
S.A. for U.S.$57 million.

More on World-Wide Shipping Group's new tanker

Ishikawajima-Harima Heavy Industries Co. Ltd. will build a 300,000-dwt
tanker for World-Wide Shipping Group. The double-hull vessel will be 330
meters/1,083 feet long, have a beam of 60 meters/196 feet and 36,960-horsepower
for 15.5 knots. The first newbuilding of World-Wide Shipping in 17 years,
it will be completed by late January 2000.

ARCO Marine shows details of new tankers

ARCO Marine Inc., a division of Atlantic Richfield Co.'s ARCO Products
Co., presented designs for two crude oil tankers on 29 July. The 125,000-dwt
Millennium-class will transport about 160 million liters/42 million gallons
of oil per voyage from Alaska to a refinery near Bellingham, Wash. The
tankers, to be built by Avondale Industries Inc., will have three meters/10
feet of separation between the double hulls, two independent engine rooms
with separate propellers, independent rudders, a 3,000-horsepower bow thruster
and bridge controls that include a single stick for ship control. According
to ARCO Marine, the bow thruster will be able to turn the ship in a 27-knot
wind, and with the engines, will be able to turn the tanker in a complete
circle within its own length. Construction of the lead ship will begin
in December for delivery in 2000. There are options for three more ships.
Each will cost U.S.$166 million.

More on Sincere Navigation's order for bulk carriers

Sincere Navigation Corp. has ordered four 170,000-dwt bulk carriers
from Halla Engineering & Heavy Industries Ltd. for U.S.$172 million.
The ships will be 289 meters/948 feet long, have a beam of 45 meters/148
feet and a draft of 24 meters/79 feet. Each will have a 22,900-horsepower
engine for 15 knots. They will be built at the Samho Shipyard in Yongam,
South Korea, for delivery in mid-1999.

Gdansk, Gdynia working together on containership

Stocznia Gdansk S.A. will build midship sections for containerships,
if a deal signed 24 July with Stocznia Gdynia S.A. is extended. On 15 Oct.,
midship sections for a 1,600-TEU capacity containership being built at
Gdynia will be barged from Gdansk. Gdynia is building the rest of the vessel
for Alpha Ship GmbH.

Chase Manhattan financing N.S.C.S.A. ships

Chase Manhattan is reportedly leading a group of banks in financing
several new ships for National Shipping Co. of Saudi Arabia.

Krupp Fordertechnik to build dredge

Krupp Fordertechnik will build a trailing hopper suction dredge for
Hyundai Engineering & Construction Co. Ltd. in conjunction with Hyundai
Heavy Industries Co. Ltd. Krupp Fordertechnik's part of the construction
is valued at 37 million German marks/U.S.$20 million, with delivery in
late 1998. The dredge will have a hold capacity of 10,000 cubic meters/13,000
cubic yards.

Keppel FELS to build drilling rig

Shell International Petroleum Co. has awarded a five-year contract to
Stena Tay Ltd. for offshore drilling with an option for another five years.
The contract could be worth up to U.S.$650 million. Stena Tay has ordered
a deep-water, dynamically positioned drilling rig from Keppel FELS Ltd.
that can operate in water up to 2,300 meters/7,500 feet deep and drill
up to 9,200 meters/30,000 feet. It will be delivered in late 1998 and begin
operating in early 1999.

Problems with Canadian warships traced by builder

The Canadian Maritime Command's Kingston-class Maritime Coastal Defense
Vessels are being scheduled for repairs after problems with their propulsion
systems. The first incident occured last year, when the H.M.C.S. Glace
Bay (MCDV 701) had its starboard propeller shut down. The Kingston-class
uses four Wartsila UD232V12 1,800-kilowatt diesel generator sets and two
1,150-kilowatt motors with two Lips Z-drive azimuthal propellers in Kort
nozzles. Similar events aboard four other ships of the class over the last
18 months lead to an investigation by Halifax Shipyard Ltd., which is building
the class. The shipyard now reports that the failures involve an electrical
component delivering direct current to the motors. The components have
been built in Canada for Jeumont and had loose connections among other
problems. The H.M.C.S. Kingston (MCDV 700) has not reported any problems;
the component at fault elsewhere was built in France for the lead ship.
A warranty will cover repairs.

Neptune Orient Lines christens tankers in dual ceremony

Neptune Orient Lines Ltd. christened two 107,000-dwt double-hull tankers
at Koyo Dockyard Co. Ltd. on 29 July. The Eagle Columbus will be delivered
shortly, while the Eagle Charlotte will follow in October. They will be
operated by American Eagle Tankers Inc.

Stolt Inspiration named

The Stolt Inspiration (37,000-dwt chemical tanker built this year by
Danyard A/S at Frederikshavn, Denmark; operated by Stolt-Nielsen Inc.)
was named 25 July at Rotterdam, the Netherlands.

Passenger ship laid down for Star Cruises

The Superstar Virgo, a 75,000-gt, 6,500-dwt passenger ship for Star
Cruise Sdn. Bhd., was laid down 26 July at Meyer Werft in Papenburg, Germany.
It is one of two Leo-class ships and will be delivered in 1999.

EVENTS, INCIDENTS AND OPERATIONS

Some 314 migrants found aboard ship drifting off Greece

The Sochol (Ukrainian-registry) was towed to Palea Fokea, Attica, Greece,
on 31 July, after it was found adrift off Euboea, Greece. Aboard were 314
migrants, including 40 children. While the group consisted of several nationalities,
many were Iraqi or Pakistani. Children and their mothers were sent to local
hospitals, while the rest are housed at Greek security facilities. Many
of children, who are between four months and 12-years-old, were dehydrated.
Local fishermen donated supplies and the Greek government also assisted.
Two Turkish citizens are being questioned, on the belief they were part
of the crew. Other crewmembers, including the master, reportedly abandoned
the ship. It had left Izmir, Turkey, for Italy.

Chairman, personnel officer of Russian shipping line shot to death

Yevgeni Khokhlov, the director of North-East Steam-Shipping Line, and
Nikolai Yevstafyev, the line's deputy head of the personnel department,
were shot to death on the staircase of their office in St. Petersburg,
Russia, on 28 July.

Tunisia fires on Italian vessels, seizes one

A vessel of the Tunisian Navy fired on three Italian-registry fishing
vessels from Sicily on 31 July. The three were reportedly in international
waters when the vessel approached and fired south of Lampedusa Island,
Italy. Two were escorted to port while the third, the Francesco Saverio,
was seized by Tunisia. It has at least eight aboard and no one was reportedly
injured. The two countries have a long-standing dispute over fishing rights.

U.S. Coast Guard, merchant ships assist sailing vessel in the Atlantic

A woman aboard a 16-meter/52-foot sailing vessel in the Atlantic Ocean
died early 23 July, 774 kilometers/484 miles southeast of Cape Cod, Mass.
Michael Hemens and his wife, both British citizens, were sailing from Mystic,
Conn., to Southampton, England, on the Eshamy B when the woman fainted
and stopped breathing. After contacting authorities, the U.S. Coast Guard
sent an HU-25A Falcon aircraft from Coast Guard Air Station Cape Cod to
make contact with the Eshamy B. Using the Automated Mutual-Assistance Vessel
Rescue (AMVER) system, the Liberty Star was diverted to assist. Hemens
attempted to use CPR on his wife, while being instructed by a physician
over the radio. Two hours later, without success, the physician declared
the woman dead. Again using AMVER, the Sea-Land Performance (U.S.-registry
containership) was diverted to transport the body to Lands End, England.
The Eshamy B is scheduled to arrive in England on 10 Aug.

Injunction issued in Malaspina incident

A Canadian court on 28 July granted a permanent injunction that bars
blockades of Alaskan ferries by fishing vessels in British Columbia, Canada.
Justice Barbara Reed in effect extended a one-week injunction that was
to expire the same day. The State of Alaska has said it will file a lawsuit
to recover damages while the Malaspina (U.S.-registry ferry built in 1963,
operated by the State of Alaska, homeported at Juneau, Alaska) was being
blockaded. The suit reportedly names some 200 fishermen. On 19 July, U.S.-registry
vessels resumed fishing Stuart sockeye off British Columbia, as a dispute
over the bilateral Pacific Salmon Treaty of 1985 continued. Canadian fishermen
had called for the U.S. boats to stop, and later that day, about 250 Canadian-registry
fishing vessels surrounded the Malaspina as it arrived at Prince Rupert,
British Columbia. On 20 July, a judge in Montreal ordered the fishing vessels
to end the blockade. The next day, a local sheriff, with Royal Canadian
Mounted Police escorts, served every vessel in the blockade with the judges
order. Those that did not leave right away later did so after several crews
met with Canadian Fisheries Minister David Anderson. The ferry's delay
reportedly cost C$1,700/U.S.$1,200 per hour. Though the injunction is now
permanent, Alaska has so far refused to resume having its ferries call
at Prince Rupert. Special precautions have been taken on all ferries passing
through Canadian territorial waters. Early 29 July, an Alaskan ferry sailing
to Hyder, Alaska, was monitored by the U.S. Coast Guard in case fishing
vessels took action against it. A Coast Guard officer and several Alaskan
law enforcement personnel remained on the vessel for the voyage. Also,
the U.S. House of Representatives, following the U.S. Senate, passed a
resolution condemning Canada for not ending the blockade of the Malaspina
sooner.

Carnival Destiny rescues six Cubans at sea

The world's largest passenger ship, the Carnival Destiny (Panamanian-registry,
8,600-dwt, built in 1996, operated by Carnival Corp.) rescued six Cuban
migrants in late July from a raft at the south entrance to the Old Bahama
Channel. They had been reported by the passenger vessel Princess Barbara,
and the Carnival Destiny diverted to assist, about 24 kilometers/15 miles
north of Cuba. Cuban-Americans aboard the ship took up a collection and
raised U.S.$2,500 while the crew provided medicine, clothes and other items.
The six were later transferred to the U.S. Coast Guard's "Island"-class
Patrol Boat U.S.C.G.C. Sitkinak (WPB 1329) and they were later repatriated
to Cuba by sister vessel U.S.C.G.C. Monhegan (WPB 1305).

U.S. Coast Guard stops fishing vessel in closed area

The catch of the Jean Marie (U.S.-registry 22-meter/72-foot fishing
vessel homeported at Newport, R.I.) was seized by the U.S. Coast Guard
the morning of 29 July, 212 kilometers/133 miles southeast of Cape Cod,
Mass. The vessel was spotted fishing 0.8 kilometers/0.5 miles inside the
southern boundary of Closed Area II just after 2330 28 July. The Jean Marie
was escorted to New Bedford, Mass., by the Coast Guard's "Island"-class
Patrol Boat U.S.C.G.C. Monomoy (WPB 1326). A boarding found U.S.$34,200
in scallops and monk fish tails.

Chinese submarines inoperative

Recent reports say that two of the Chinese People's Liberation Army
Navy's newest attack submarines are inoperative. Generators on one the
subs, which the Soviet Navy and now Russian Navy calls the Warshavyanka-class
or Project 877 series and the North Atlantic Treaty Organization calls
the Kilo-class, have broken down. The second submarine has water pump problems
serious enough to keep it in port.

VESSEL TRANSFERS

Singapore buys three submarines from Sweden

Singapore has bought three of the Swedish Navy's Sjoormen-class attack
submarines. The Republic of Singapore Navy said it will use them for training
after delivery between August 1999 and 2001.

Maersk Line to operate eight ro/ros for U.S.M.S.C.

Maersk Line Ltd. has been awarded a U.S.$91,185,806 contract to operate
and maintain eight new ro/ros of the U.S. Military Sealift Command. The
contract includes a potential award fee of about U.S.$7 million, making
the total value of the contract U.S.$98,185,806. Also, the contract provies
for reimbursables of U.S.$180,960,870. The eight ships will carry U.S.
Army equipment, and will be based in the Persian Gulf and at Diego Garcia.
The contract rums until September 2002.

First Olsen Tankers sells the Knock Buie

First Olsen Tankers has sold the Knock Buie (Liberian-registry 52,375-dwt
tanker built in 1975) to a joint venture of Fred Olsen Production and Nortrans
Engineering. The tanker will be converted. The cost was U.S.$9 million,
which includes a special survey. It will be delivered in the fourth quarter.

Taiwan to get more U.S. frigates

The Republic of China Navy will lease two more former U.S. Navy Knox-class
frigates, for a total of eight.

VESSEL CASUALTIES

More than 40 missing in ferry capsizing

More than 40 people are missing after a ferry capsized and sank in the
Janua River near Sariakandi, Bangladesh, on 22 July. Seven bodies were
found and 116 persons were rescued.

Three killed, three injured as ship is damaged by typhoon

Three crewmembers were killed and another three injured on 27 July when
heavy seas from Typhoon Rosie broke the bridge windows of the Yamato Maru
(Japanese-registry 8,000-gt, 4,900-dwt car carrier built in 1997, operated
by Kyushu Kyuko Ferry). Those killed include the master and the chief cook.
The ship was sailing from Fukuoka, Japan, to Yokohama, Japan, when the
windows were smashed west of Wakayama Prefecture, Japan, by eight-meter/26-foot
seas. A helicopter was able to finally reach the ship as the typhoon lost
power. The Yamato Maru had a crew of 19 and 60 vehicles aboard.

Collision in Thailand kills one person

One person was killed 26 July when the Mathu Bhum (Singaporean-registry
11,079-gt, 14,960-dwt, 920-TEU containership built in 1990, operated by
Thai Ship Management Co. Ltd. and owned by Regional Container Lines Ltd.)
collided with one of three lighters under tow on the Chao Phraya River
in Thailand. The ship sank the barge, as it sailed to Bangkok, Thailand,
from Singapore. The lighter sank in 15 meters/49 feet of water.

Five rescued in Gulf of Aden sinking

The Adel (Honduran-registry 397-gt general cargo ship) sank 31 July
in the Gulf of Aden. Its five crew was rescued.

Sand carrier sinks in collision at Buenos Aires

The Dona Isabel (Liberian-registry 680-gt sand carrier) sank 24 July
after colliding with the Yorksand (Panamanian-registry 3,098-dwt motor
refrigerated ship built in 1979, operated by Riga Transport Fleet Joint-Stock
Co.) leaving Buenos Aires, Argentina. The Dona Isabel sank near the southern
dock entrance.

Eight rescued after three fishing vessels sink

The Katherine Ann (U.S.-registry 10-meter/34-foot fishing vessel, homeported
at New Bedford, Mass.) sank 27 July, 13 kilometers/eight miles east of
Martha's Vineyard, Mass. U.S. Coast Guard Station Menemsha, Mass., launched
a 6.4-meter/21-foot rigid-hull inflatable boat and Coast Guard Station
Woods Hole, Mass., sent a 12-meter/41-foot utility boat. The utility boat
rescued the two crewmembers, Andrew Fordett and Tom Furgeson. The Veri
Amici (12-meter/38-foot fishing vessel) sank 28 July. An Emergency Position
Indicating Radio Beacon signal was received at 0630 by the Coast Guard,
locating the vessel 10 kilometers/six miles northeast of Block Island,
R.I. A Coast Guard Air Station Cape Cod, Mass., HU-25A Falcon responded
with a Coast Guard Station Point Judith, R.I., 12-meter/41-foot utility
boat. About 1115, a Falcon found two men in a liferaft three kilometers/two
miles northwest of Gay Head, Mass. The sailing vessel Bullwinkle stood
by until a 6.4-meter/21-foot rigid-hull inflatable from Coast Guard Station
Menemsha rescued them. Robert Swain, of Acushnet, Mass., and John Gamache,
of New Bedford, said that they had engine problems the night before. When
the woke up the morning of 28 July, the vessel was flooded. Although their
E.P.I.R.B. was activated, it became separated from the raft. At 1625 31
July, the U.S. Coast Guard received a distress message from a 17-meter/55-foot
fishing vessel about 80 kilometers/50 miles east of Cape Hatteras, N.C.
As the vessel sank, the four aboard launched a liferaft and activated a
406 Mhz Emergency Position Indicating Radio Beacon. They were rescued by
the Philadelphia (U.S.-registry), and are sailing to St. Croix, U.S. Virgin
Islands.

Danish-registry ship capsizes, crew rescued

The Thor Emilie (Danish-registry 1,655-gt general cargo ship) capsized
27 July at 56 degrees 24 minutes north, 07 degrees 43 minutes east, near
Denmark. It was sailing from Klaipeda, Lithuania, to Thessaloniki, Greece,
with 1,592 tons of dried lumber, stowed in cargo holds and on deck. The
crew was rescued and the ship stabilized. It was towed to Esbjerg, Denmark.

Bulk carrier floods, runs aground

The Goodwill (Panamanian-registry 75,277-gt bulk carrier built in 1992)
was reported flooding on 31 July at 13 degrees 10.8 minutes south, 96 degrees
0.93 minutes east. It is carrying coal from Dampier, Australia, to Dunkirk,
France. At last report, the ship had run aground in Australia's Cocos Islands
and its 21 crew had abandoned it.

Maersk Tacoma seriously damaged

The Maersk Tacoma (Panamanian-registry 37,238-gt, 44,182-dwt containership
built in 1982, operated by Univan Ship Management Ltd.) was seriously damaged
28 July when it was hit by a tanker on its port side, 25 meters/82 feet
forward of the superstructure. It has been drydocked in Singapore.

Fortuna Reefer aground in Puerto Rican reserve

The Fortuna Reefer (Panamanian-registry 3,971-dwt, 93.3-meter/306-foot
refrigerated ship built in 1980, operated by Alphamax Corp.) ran aground
27 July in a Puerto Rican nature reserve. The ship has more than 380,000
liters/100,000 gallons of fuel aboard. The ship had originally grounded
24 July on the southeastern boundary of Mona Island. It was sailing from
Mayaguez, Puerto Rico, to Panama City.

Correction on collision between the Seacor Vision and barge

A tank barge broke its mooring on 18 July and hit the Seacor Vision
(U.S.-registry 68.6-meter/225-foot, 12,280-horsepower anchor handling tug/supply
vessel built in 1997 by Moss Point Marine Inc. at Escatawpa, Miss.; owned
and operated by Seacor Marine Inc.) in Bayou Casotte near Pascagoula, Miss.
About 13,000 liters/3,500 gallons of diesel fuel was spilled from the barge.
It then came to rest against two double-hulled tank barges, one with 10,000
barrels of crude oil and the other with 10,000 barrels of diesel. The Seacor
Vision had eight persons aboard, but none were injured.

Japan files claims clean-up of Nakhodka spill, report issued

On 30 July, Japan filed claims for 840 million Japanese yen/U.S.$7.08
million for costs involved in cleaning-up the oil spill from the Nakhodka
(Russian-registry 13,157-gt, 20,471-dwt tanker built in 1970, operated
by Primorsk Shipping Co. and owned by Prisco Traffic Ltd.). The Japanese
Maritime Safety Agency and the Japanese Ministry of Transport's Ports and
Harbors Bureau filed the claims with the International Oil Pollution Compensation
Fund and Prisco Traffic. The J.M.S.A. wants 690 million yen/U.S.$5.82 million
for fuel used by vessels and aircraft, cleaning equipment and supplies,
replacement of an oil fence and overtime costs for personnel. The Ports
and Harbors Bureau wants 150 million yen/U.S.$1.26 million, mostly relating
to the deployment of an oil-spill reponse vessel. The Nakhodka broke in
half 2 Jan. about 130 kilometers/80.6 miles northeast of the Oki Islands,
Japan. Thirty-one of the 32 crew were rescued and the master was killed.
The Nakhodka carried 19,000 tons of grade C heavy fuel, or 19 million liters/five
million gallons or 133,000 barrels. More than five million liters/1.3 million
gallons of oil came ashore in Japan, affecting the prefectures of Fukui,
Hyogo, Ishikawa, Kyoto, Niigata, Shimane, Tottori and Toyama. On 31 July,
a Japanese Ministry of Transport panel concluded in a report that the Nakhodka
broke-up due to its age. Headed by Hideomi Otsubo, a professor at Tokyo
University, the panel reported that samples of steel taken from the bottom
of the bow showed the ship's steel thickness had decreased an average of
23 percent since its launch. The hull sides at decreased 30 to 54 percent.
Examination of the stern section led the panel to conclude a crack on the
bottom of the hull caused the ship to break-up. Improper loading is also
likely a factor. The Nakhodka had loaded oil in the No. 2 cargo tanks,
ignoring a loading manual by the ship's builder that recommended against
this since it would double stress factors.

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

Largest concentration of ancient shipwrecks in deep water found

Dr. Robert D. Ballard, leader of a recent expedition to the Mediterranean,
announced at a presentation at the National Geographic Society in Washington
on 30 July that the group had found the largest concentration of ancient
shipwrecks in deep water yet known, northwest of Sicily, Italy, on a trade
route between Rome and North Africa. The Skerki Bank Project began in 1989
when ancient wrecks were found off Tunisia, and continued in 1995. The
latest finds were made during a six-week search in May and June. Eight
sailing vessels were found 760 meters/2,500 feet down by the U.S. Navy's
nuclear-powered research submarine NR-1. Using the remotely-operated vehicle
Jason, some 115 artifacts were collected as the wrecks were explored. Five
are from Roman times, with the oldest a 30-meter/100-foot vessel dated
to 100 B.C.E. The ship's cargo holds carried amphoras, or clay containers.
Another Roman ship from about the first century C.E. carried cut granite
or marble, some in monolithic columns and large blocks. They were likely
for building a temple, and notches cut out of them seem to suggest they
were meant to be fitted together. Built of wood, the remains of the ships
are limited to any hull buried in the sand. The other three ships include
an Islamic vessel from the 18th or early 19th century and two 19th century
vessels. The eight are spread over 52 square kilometers/20 square miles,
centered around a location about 128 kilometers/80 miles northwest of Trapani,
Sicily. Other team members included Dr. Anna Marguerite McCann, who was
in charge of archaeology for the expedition and is an adjunct professor
archaeology at Boston University. Among the items found were glassware,
household and kitchen items, bronze objects, two lead anchor pieces and
at least eight different tpes of amphoras. Further expeditions are planned,
and next summer, Ballard will lead a team to investigate trade routes in
the Black Sea.

Toshiba sets Atlantic record

The Toshiba, with skipper Chris Dickson and 10 crew, has set an unofficial
monohull sailing record. On 30 July, the Toshiba sailed 695.0 kilometers/434.4
miles in 24 hours. The 20-meter/64-foot sailboat is heading to England
for the start of the Whitbread Round the World Race on 21 Sept.

U.S.S. Shasta decommissioned, to transfer to U.S.M.S.C.

The U.S. Navy's Kilauea-class Ammunition Ship U.S.S. Shasta (AE 33)
was decomissined 1 Aug. at the Navy's Fleet and Industrial Supply Center
in Oakland, Calif. The ship was authorized fiscal year 1967, laid down
10 Nov., 1969, and launched at Ingalls Shipbuilding in Pascagoula, Miss.,
on 3 April, 1971. The U.S.S. Shasta was commissioned 26 Feb., 1972, in
Charleston, S.C., and was homeported in the San Francisco Bay area. Following
the war in Southeast Asia, the ship rescued more than 200 Vietnamese migrants
at sea. One of them, who now calls himself Shasta Le and lives in Columbus,
Ohio, participated in the ceremony. The ship will now be transferred to
the U.S. Military Sealift Command as the U.S.N.S. Shasta (T-AE 33).