- Transport on Line - hiltunen.htm

BUSINESS

International Group of P&I Clubs agrees to reduce overspill limits

The International Group of P&I Clubs, a group of 15 protection and
indemnity companies that insure about 90 percent of the world's merchant
fleet, have agreed to reduce member's exposure to claims in response to
the European Commission's threat to end their exemption from antitrust
laws. The commission's Competition Directorate had given the group until
16 Sept. before action was to be taken in what it said was restriction
of competition through high charges for liability coverage. Members' overspill
limits will be reduced from 20 percent to 2.5 percent of each insured vessel's
limitation fund. Aggregate exposure for the group's members is now about
U.S.$2.25 billion over the reinsurance limit of U.S.$2 billion. However,
the 15 insurers refuse to abolish regulations that discourage the movement
of shipowners between clubs. In particular, under the International Group
Agreement, shipowners changing coverage must make payments to the new insurer
at rates of the previous insurer for a year. The International Group of
P&I Clubs received a 10-year exemption from competition laws, but it
expired in February 1995.

PETRONAS now largest shareholder of Malaysian International Shipping

Petroliam Nasional Bhd. (PETRONAS) said 23 Aug. it has bought 29.3 percent
of Malaysian International Shipping Corp. Bhd. from Pension Trust Fund
Group. PETRONAS is now the largest shareholder of Malaysian International
Shipping. While financial information was not disclosed, the closing price
of the firm's stock on 22 Aug. was 6.90 Malaysian ringgit/U.S.$2.43, valuing
the stake at 2.025 billion ringgit/U.S.$750.1 million.

Sofrana Unilines sold to its chairman

Bollore Technologies has sold Sofrana Unilines Holding S.A. to Didier
Laroux, its chairman.

Shanghai Hai Xing Shipping to rename, form venture

Shanghai Hai Xing Shipping Co. Ltd. will be renamed China Shipping Development
shortly. It will form a joint venture, China Shipping Container Lines Co.
Ltd., with China Shipping (Group) Co. and Guangzhou Shipping (Group) Co.
China Shipping will contribute vessels and will guarantee a 580,000 Chinese
yuan/U.S.$70,000 loan. China Shipping Development will donate two ships
and a 40 percent stake in Shanghai Hai Xing Yuancang Transportation Co.
Ltd. as well as 13.42 million yuan/U.S.$1.613 million. Guangzhou Shipping
will contribute a 113.1 million yuan/U.S.$13.59 million loan and two ships.
The accounts of the venture will be factored with China Shipping Development's
figures.

Cunard Line moving headquarters to Miami

Cunard Line Ltd. announced 28 Aug. it will move its headquarters and
reservations center from New York to Miami. The new office will be in an
"enterprise zone" of Dade County and will be operating by December.
Also, Cunard Line ships will start calling Miami instead of Port Everglades,
Fla., except for the annual crossings of the Atlantic between New York
and Southampton, England. The first call will be 15 Nov.

Transmediterranea looking to become global

Transmediterranea has formed Agencia Maritima Transhispanica to coordinate
operations at its port facilities as it looks to become a global shipping
line.

I.T.W.F. investigating Kerguelen registry

The International Transport Workers' Federation is investigation whether
the Kerguelen Islands registry is a "flag of convenience." The
French labor union CFDT requested an investigation into the island's second
register.

Labor union sues member for blocking claim

The International Organization of Masters, Mates and Pilots has filed
a lawsuit against Peter Prevas, contending that he lied to keep an insurance
company from fully paying a claim. The union is seeking U.S.$2 million.
In January, Harry Seidman was sentenced to three years and three months
in prison for embezzlement. Seidman, who worked at the union, sent work
to Ronald Schoop, owner of a graphics business, who then overcharged for
printing services. Part of the money was then sent to Seidman. Schoop was
sentenced in October to eight months in prison. In all, some U.S.$2.8 million
was involved in the kickback scheme over 15 years. National Union Fire
Insurance Co. paid U.S.$866,497 in November on a claim the union made relating
the scheme. The remaining U.S.$1.9 million was to be paid by the end of
1996, but according to the union, Prevas told the insurance company that
there was still a cover-up going on. The company never paid the remainder.

Costa Rica, United States plan shiprider agreement

Under a draft plan, U.S. government personnel would patrol Costa Rican
territory with vessels and aircraft to combat the transport of drugs. U.S.
personnel wll be able to persue and search vessels, and Costa Rican observers
would authorize operations.

Barge cleaner pleads guilty to dumping waste

T.T. Barge Cleaning Inc. of Harahan and Westwego, La., pleaded guilty
on 20 Aug. to illegally discharging pollutants into the Mississippi River.
On 24 July, the company was charged with dumping untreated waste water
and dozens of barrels of rust, sludge and debris into the river. The practice
began in 1986 and apparently ended after a raid by law enforcement officials
at the two sites on 4 Feb. As part of a plea agreement, T.T. Barge Cleaning
was agreed to pay U.S.$300,000, be on probation for five years, hire an
independent environmental monitor and pay for retrieval of the drums. U.S.
District Court Judge Eldon Fallon will sentence the business on 29 Oct.

Several business make payments to U.S.F.M.C. for violations

The U.S. Federal Maritime Commission recently announced that several
businesses have agreed to make payments for alledged violations of the
U.S. Shipping Act and other laws. None admitted any violations. General
Merchandise Consolidators Ltd. paid U.S.$50,000, Glacier Bay Park Concessions
Inc. has paid U.S.$8,500, Hyundai Merchant Marine Co. Ltd. paid U.S.$265,000,
the Inter-American Freight Conference has paid U.S.$130,000, Jetco Shipping
Ltd. paid U.S.$50,000, Pactrans Marine Inc. paid U.S.$50,000, Phoenix International
Freight Services Ltd. paid U.S.$85,000 and Speedmark Consolidation Service
Ltd. paid U.S.$50,000.

APL shareholders approve merger with Neptune Orient Lines

APL Ltd. shareholders approved the merger of APL and Neptune Orient
Lines Ltd. at a shareholder meeting on 28 Aug. in Oakland, Calif. Seventy-four
percent of the outstanding shares that could vote on the merger were in
favor with less than 0.5 percent against.

A.C.L. ships meet certification

All ships of Atlantic Container Line now comply with the International
Management Code for the Safe Operation of Ships and for Pollution Prevention.

Ocean Maritime Services opens California offices

Ocean Maritime Services Inc., largely involved with claims work, has
opened a new offices in California at Los Angeles, San Diego and Walnut
Creek in the San Francisco Bay area.

O.O.C.L. office in Shanghai gets certification

Orient Overseas Container Line Ltd. has announced its office in Shanghai,
China, has received I.S.O. 9002 certification. It is the first international
shipping line in China to have an office so certified.

United Shipping gets affilitate in the Charleston area

United Shipping now has a partner office in the Charleston, S.C., area.
Cargo U.K. Inc. has an office at 3218 Benchmark Drive in Ladson, S.C.

ROUTES AND SERVICES

T.S.A., W.T.S.A. change management structure

The Transpacific Stabilization Agreement and the Westbound Transpacific
Stabilization Agreement have replaced their management system of using
rotating chairman from its member lines for one to two years. A permanent
management with a dedicated staff has been formed in its place, with an
executive officer and a deputy.

8900 Lines raising surcharge

The 8900 Lines have increased their surcharges for fuel. As of 1 Oct.,
they will be U.S.$69 per TEU and U.S.$137 per FEU.

Two lines to leave Malta Freeport

Mediterranean Shipping Co. and Norasia Shipping Services S.A. have announced
they will leave Malta Freeport after 15 months and seven years, respectively.
Norasia Shipping Services will maintain service to the port, though details
have not benn anounced. Mediterranean Shipping will shift calls to Piraeus,
Greece.

COSCO, Filcosalish to transship at Naples

China Ocean Shipping Co. and Filcosalish have formed a joint venture
in Naples, Italy, which will allow COSCO ships to transship cargo for the
eastern Mediterranean and Black Sea. It will have a capacity of 60,000
TEUs.

Sea-Land Service ending call at New Orleans

Sea-Land Service Inc. will drop its weekly direct call at New Orleans
on 23 Sept. In its place, a second call will be made each week at Jacksonville,
Fla.

COSCO takes one ship off northern Europe - Asia service

China Ocean Shipping Co. has reduced the number of containerships sailing
between northern Europe and Asia from nine to eight. Calls will remain
weekly, but there will not be direct calls at Le Havre, France.

Dalian to California container route underway

A container service between Dalian, Liaoning Province, China, and the
western United States has begun. The weekly service calls at Pusan, South
Korea, and Yokohama, Japan, before calls at Long Beach and Oakland in California.
The service has six ships with transit from Dalian to California in 16
to 18 days.

Uniglory Marine adding Japanese calls

Uniglory Marine Corp. will extend its fixed-day weekly service between
Taiwan and the Persian Gulf to Japan beginning in October. Calls will be
made at four Japanese ports.

Seawheel to sail from Waterford to Bristol

Seawheel will start a container service from Waterford, Ireland, to
Bristol, England. Three calls will be made per week with the John Bluhm
(German-registry 2,262-dwt, 145-TEU capacity dry cargo ship built in 1978,
operated by Rendsburg Schiffahrt).

Maersk Line to call port in Cote d'Ivoire weekly

Maersk Line has announced it will double the frequency of service to
San Pedro, Cote d'Ivoire, starting 1 Sept. One of five 1,750-TEU capacity
containerships on the West Africa A service will make weekly calls instead
of every two weeks. San Pedro is called on the return leg from Algeciras,
Spain; Dakar, Senegal; Abidjan, Cote d'Ivoire; Lagos, Nigeria; Cotonou,
Benin; Lome, Togo; and Tema and Takoradi in Ghana. Ships then call at the
Italian ports of Livorno and Genoa after returning from Takoradi via Abidjan,
San Pedro and Dakar.

C.G.M. to make direct New Zealand call

Compagnie Generale Maritime has added a direct call at Auckland, New
Zealand, to its around-the-world service. The CGM Racine (French-registry
28,092-dwt ro/ro built in 1978, operated by C.G.M.) will make the first
call in mid-October. The 16-day frequency will be preserved. CGM Owens
Shipping is the agent in New Zealand.

Safbank Line adds Port Elizabeth

Safbank Line Ltd. has added a direct call at Port Elizabeth, South Africa
to its service from the United States to South Africa. Calls are made at
New York; Baltimore; Norfolk, Va.; Charleston, S.C.; Cape Town, Port Elizabeth,
Durban and Cape Town in South Africa; and New York.

South Seas Steamship replaces vessel, shifting in San Francisco Bay

South Seas Steamship Co. has replaced the Moana Pacific (Cypriot-registry
19,775-dwt dry cargo ship built in 1979, operated by South Seas Steamship)
with the Tui Pacific (1,158-TEU capacity geared containership built in
1991) on its monthly service from the western United States to New Zealand
with calls in Pacific islands. The Tui Pacific has slots for 125 refrigerated
containers. Also, the line is shifting operations in San Francisco Bay
from Richmond, Calif., to Eagle Marine at Oakland, Calif.

Columbia Coastal Transport announces new route

Columbia Coastal Transport has started a container service from Miami
to Freeport, the Bahamas.

Conterm Consolidation serving new route

Conterm Consolidation B.V. has announced a new service every two weeks
to Aqaba, Jordan, via Antwerp, Belgium, and Rotterdam, the Netherlands.

Nantai Line increases frequency between Far East and South Africa

Nantai Line will place two new 840-TEU capacity ships into service on
its service between the Far East and South Africa to increase the frequency
from 10 days to seven days. The Nantai Dragon was delivered on 28 Aug.
by Kyokuyo Shipbuilding Corp. and will start service from Singapore on
7 Sept. The Golden Dragon will be delivered in November. With seven ships,
calls will be made in South Korea, Taiwan, Hong Kong, Singapore, Mauritius
and South Africa.

Seabourn Cruise Line to sail to Northern Ireland

Seaborn Cruise Line has added two calls at Londonderry/Derry, Northern
Ireland. The Seabourn Pride (Norwegian-registry 800-dwt passenger ship
built in 1988, operated by Seabourn Cruise Line) will call on 8 June and
27 Aug.

New ferry service between Iran and Russia

A ferry service started this month between Enzeli, Iran, and Olya, Russia.
Iran and Russia are jointly building a new port near Olya.

Agent for Crowley American Transport service

The local agent for Crowley American Transport's new service to Chile
is Kenrick & Co. S.A. Container yards will be used at Arica, San Antonio,
Santiago and Valapariso, with direct calls by three 1,100-TEU ships at
Arica and San Antonio.

Clarification of Taiwanese cabinet decision

The Taiwanese cabinet on 20 Aug. approved a plan to allow larger vessels
to sail direct routes across the Taiwan Strait between China and Taiwan.
It will reportedly be in place by late September. Contrary to previous
information, routes will for now remain limited to Fuzhou and Xiamen in
China and Kaohsiung, Taiwan. Previously, ship sizes and capacities were
limited for shipping across the strait, so while vessel sizes are now liberalized,
the decision only affects three ports for now.

CANALS, PORTS AND STRUCTURES

Bangladesh ports halted by one-day strike

Ports in Bangladesh were idled 24 Aug. by a one-day general strike called
by a government opposition party. The Bangladesh Nationalist Party called
for the strike to protest recent increases in fuel prices. Some violence
was reported between strikers and security personnel.

Port personnel to be laid off in Brazil

As part of planned port privatizations, 2,290 employees at Santos and
1,300 at Rio de Janeiro will be laid off 1 Sept. They will then be registered
with OGNO, a government agency, as freelance workers available on a daily
basis. Another 2,800 will be laid off at Santos later.

Keelung, Chilean port closed for storms

The Port of Keelung, Taiwan, closed 17 and part of 18 Aug. due to Typhoon
Winnie. The Port of Coquimbo, Chile, closed 17 Aug. due to the weather.

Five-year expansion plan for Felixstowe

Hutchison Whampoa Ltd., operator of the Port of Felixstowe, England,
has announced a five-year plan to expand the port at a cost of 100 million
British pounds/U.S.$167 million. The port's capacity will be increased
by 500,000 TEUs and five ship-to-shore gantry cranes and 11 rubber-tired
cranes will be bought. An application has been submitted for a Freight
Facilities Grant that would expand the rail terminal. Existing tracks would
be extended and two new tracks would be built.

Aqaba planning expansion

Ports Corp. of Aqaba is planning to spend 85 million Jordanian dinars/U.S.$120
million on an expansion at the Jordanian port. An industrial dock and container
berth will be expanded by 2000.

Bridge to be built over Straits of Malacca

Indonesia last week approved a plan to build a bridge over the Straits
of Malacca between Indonesia and Malaysia. The International Maritime Organization,
and its 157-member countries, will need to decide whether the bridge interferes
with vessel navigation or violates any international regulations. Proposed
by Malaysia, The Unity Bridge will be 42 kilometers/26 miles long and will
be joined by a 47-kilometer/29-mile road over Pulau Rupat, Indonesia, and
a six-kilometer/four-mile bridge to Sumatra, Indonesia. The four-lane bridge
will have 2,000 to 5,000 vehicle crossings daily. Electricity, natural
gas and telecommunications lines will also be part of the bridge. P.T.
Malindo Transmadu and Renong Bhd. will build The Unity Bridge, with completion
scheduled for 2002.

Indonesia, Philippines agree on equal tariff rates for vessels

Indonesia and the Philippines have announced uniform tariff rates for
ships registered in one of their countries calling on certain ports in
the other. Dockage and port fees have been reduced 50 percent to U.S.$0.02
per gross ton and U.S.$0.04 per gross ton, respectively. The rates are
available to Philippine-registry vessels calling at Indonesian ports in
East and West Kalimantan and North Sulawesi, and to Indonesian-registry
ships at the Philippine ports of Cotabato, Davao, General Santos, Jolo,
Palawan, Puerto Princesa and Zamboanga. The rates are in effect for two
years.

Petroperu expands concessions for terminals

Petroperu S.A. will award operation of 10 oil terminals during the latter
half of November. Three groups will be offered for 10 years, with operators
charging directly and the operators paying Petroperu a fee and a tariff
on the amount of oil handled.

Singapore to open tug business

The Singapore Maritime Port Authority will begin to open provision of
tug and towing services on 1 Sept. Until now, only the Port Authority of
Singapore could handle the business. The process will take three years.
In the first phase, tug operators will not need to seek approval by the
S.M.P.A. to buy new tugs if they are licensed. On 1 July, operators with
public licenses will be allowed to serve oil terminals, Jurong Port and
shipyards. Finally, by 1 July, 1999, at the latest, operations at container
terminals, conventional berths and passenger terminals will be opened to
licensed operators. The S.M.P.A. is developing a computerized tug ordering
and coordination system to replace its PortNet as part of the process.

Cargo handling at Jeddah now done by private company

Cargo operations at Jeddah, Saudi Arabia, were taken over by Group Marine
Services on 27 Aug. The firm has a concession that will last 10 years and
will handle all general, passenger and ro/ro cargo at the port. Fifty-three
percent of Group Marine Services' revenue will be turned over to the port
authority under a revenue-sharing formula. About 38 million Saudi Arabian
riyals/U.S.$10 million will be spent on new equipment and hiring of more
personnel.

New ferry terminal to be built in Turku

A 66 million Finnish mark/U.S.$12 million rail ferry terminal will be
built at Turku, Finland, for a three-vessel service of Finnlines Ltd. The
service had run between Lubeck, Germany, and Hanko, Finland, but will shift
to Turku when the facility is completed in May.

Houston Ship Channel disrupted by closure

The U.S. Coast Guard closed the Houston Ship Channel on 25 Aug. to deep-draft
ships between Crown Central Petroleum Corp.'s refinery and the Greensport
Terminal in Pasadena, Texas. Earlier in the day, the DG Columbia (17,000-dwt
ro/ro built in 1993, operated by Di Gregorio Navegacao Ltda.) anchored
near four underwater petroleum product pipelines of Amerada Hess Corp.
When the anchor was to be brought aboard, it encountered more than the
usual strain. Fearing that it had snagged the pipelines, they were shut
down and the area was sealed off while the anchor was removed.

Jacksonville authority fined for visit to Cuba

The port authority of Jacksonville, Fla., paid U.S.$20,000 to the U.S.
Treasury Department recently as a penalty for a trip officials made to
Cuba in June 1995 that violated the U.S. trade embargo. The two-day trip
to Havana was to meet with Cuban port officials to build relations if trade
resumes.

Jiangyin to build wharves

The Port of Jiangyin, Jiangsu Province, China, has received approval
to build a 10,000-dwt sundry goods wharf and a 15,000-dwt general purpose
wharf. They will handle 1.1 million tons annually. In addition, a storage
yard, a warehouse for container assembly and disassembly, navigation aids
and utilites will also be installed.

Danube River closed to traffic in Bulgaria

Due to low water levels because of a lack of rain, navigation on the
Danube River in Bulgaria was suspended 24 Aug. Water near Belene Island
was 1.6 meters/5.2 feet deep while it was two meters/6.5 feet at Ruse.
It is usually six meters/20 feet deep at both locations.

Los Angeles approves budget, second phase of dredging starts

The Los Angeles Harbor Commission has approved its budget for fiscal
year 1997-1998. The budget calls for capital expenditures of U.S.$259.5
million, a decrease from recent years as five of six major improvement
projects begun since 1993 have been completed. The final project is the
68-hectare/170-acre container terminal with on-dock railyard for use by
Hanjin Shipping Co. Total cost for the terminal is U.S.$270 million. Meanwhile,
the second phase of dredging involving Pier 400 started 18 Aug. U.S.$150
million will be spent to dredge certain channels from 23 meters/75 feet
to 25 meters/81 feet. Spoils will be used to complete the landfill needed
for the 240-hectare/600-acre container facilities of Pier 400.

Long Beach container terminal lawsuit dismissed

A federal district court has dismissed a lawsuit against the planned
China Ocean Shipping Co. container terminal at Long Beach, Calif. A local
television journalist, Huell Howser, filed the suit contending that demolition
of historic buildings on the site of a former U.S. Navy station to build
the terminal was a misuse of public funds. Judge Andrew Hack ruled that
Howser had "no openly protected interest" in the matter.

Newfoundland dockworkers refuse to return to work

Dockworkers at Botwood, Newfoundland, Canada, who are employees of Abitibi-Consolidated
Inc., rejected an ultimatum on 25 Aug. for them to end their strike. A
court injunction has been issued ordering them back to work but they have
not complied. The workers struck more than two weeks ago after the company
said fewer dockworkers would be used to load ships. Production of paper
at a nearby mill ceased soon after the strike began. Paper will now be
taken to other ports.

Mitsui O.S.K. Lines begins cargo forwarding venture in Shanghai

Mitsui O.S.K. Lines Ltd. said 27 Aug. it has started cargo forwarding
operations in Shanghai, China, through a joint venture with Omori Kaisoten
Ltd. It is the first cooperative cargo forwarding business in Shanghai
by a Japanese company. The venture has capital of U.S.$1 million, with
44.1 percent from Mitsui O.S.K. Lines. and Omori Kaisoten. Chinese partners
funded the remainder.

U.S.F.M.C. rejects control of stevedores at Charleston, S.C.

The U.S. Federal Maritime Commission has rejected proposed regulations
by the South Carolina State Ports Authority that would allow it to control
stevedores at Charleston, S.C. By three to one, the F.M.C. refused the
authority's request for it to license stevedores at the port. The authority
said the proposal would allow it to attract new business, but the commission
cited excessive control and the possibility of licensing being misused.

Mississippi River lock closed

Work on modernizing Lock and Dam 27 at Granite City, Ill., began 14
Aug. The main lock will be closed first, followed by the auxiliary lock.
The U.S.$5.5 million modernization will take three months. The closure
is costing U.S.$1 million daily.

Mud Dump Site redesignated

The U.S. Army Corps of Engineers and the U.S. Environmental Protection
Agency have announced that they will close the Mud Dump Site, used since
1973 for spoils dredged from the Port of New York & New Jersey, and
designate the site and surrounding areas as the Historic Area Remediation
Site. The last dumping of Category 2, or contaminated, spoils was 10 Aug.
Now, the H.A.R.S. will be covered with uncontaminated spoils (Category
1). The 47-square-kilometer/18-square-mile area has three sections. The
Priority Remediation Area, measuring 26 square kilometers/10 square miles,
will receive at least one meter/0.3 feet of material. A 17-square-kilometer/6.6-square-mile
area will be a buffer zone. Finally, the buffer zone will be surrounded
by a zone in the north-central part of the H.A.R.S. in which nothing will
be dumped.

Alabama State Docks gets funding for study

The Alabama State Docks Department has received U.S.$70,000 to help
study potential markets and develop a marketing plan. A joint resolution
by the state legislature called for a study of the department's goals and
markets. Funding was provided by the Alabama Department of Economic and
Community Affairs.

Navieras to get two cranes at San Juan

As part of the deal in which Holt Hauling and Warehouse Systems Inc.
bought NPR Inc., parent of Navieras Inc., Holt will provide two container
cranes for Navieras' terminal in San Juan, Puerto Rico.

Virginia authority buying facility of Nissan

The Virginia Port Authority will buy the old Nissan facility at Portsmouth,
Va., for U.S.$3.2 million.

British Gas plans for Pipavav approved

The Indian Foreign Investment Promotion Board has approved British Gas
P.L.C.'s pospoed liquified natural gas terminal at Pipavav, India.

Gulf Coast Dockside adds floating crane

Gulf Coast Dockside has brought a 110-ton capacity pedestal crane mounted
on a barge to its operations in New Orleans. The Docksider also has two
deck winches.

SHIPYARDS AND EQUIPMENT

Mexico changes regulations on shipbuilding, modifications

The Mexican Communications and Transport Secretariat announced new regulations
on shipbuilding and modifications to Mexican-registry ships in the Diaro
Oficial on 20 Aug. The new regulations affect ships being built that are
between 14 meters/50 feet and 150 meters/492 feet. In addition, all Mexican-registry
ships must now get approval for major modifications from the general direction
of merchant marine in a 90-day period.

India scrapping interest subsidies

As part of its 30 percent subsidy plan for seven shipyards, the Indian
Ministry of Surface Transport is stopping interest subsidies to firms that
order from the yards.

Danyard to lay off 235 employees

Danyard A/S will lay off 235 employees at its Fredrikshavn, Denmark,
shipyard due to a lack of orders.

New Malaysian shipyard to be built

Halim Mazmin will jointly establish and operate a shipyard at Kemaman,
Terengganu, Malaysia. It will have a 46 percent stake Kemaman Heavy Industries
Sdn. Bhd. will be 90 million Malaysian ringgit/U.S.$32 million.

Nantong Ocean Shipping Engineering to build first bulk carrier

Nantong Ocean Shipping Engineering Co., a joint venture of China Ocean
Shipping Co. and Kawasaki Heavy Industries, will start construction of
its first Handysize bulk carrier next month.

Setal Engenharia to take over Brazilian shipyard

Setal Engenharia will take over management of the Verolme shipyard in
Angra dos Reis in Rio de Janeiro, Brazil. It will be split off from Industrias
Verolme-Ishibras in a deal coordinated by Banco Fator, which will convert
the two debts of the two new firms into stocks.

Metal workers at Chantiers de l'Atlantique to work one day less this
fall

Citing a lack of orders, Chantiers de l'Atlantique said 27 Aug. that
800 of its 4,200 employees will be laid off one day a week during October
and November. Those affected work in metal fabrication. After the announcement,
members of the CGT labor union stopped working for 45 minutes.

Bonnici to head team dividing Malta Drydocks

Maltese Prime Minister Alfred Sant has named Karmenu Mifsud Bonnici,
a former Maltese Labor Party prime minister, to head a team that will separate
the shipyard into two operating units. There will be no redundancies among
workers and their basic working conditions will be preserved. Members of
the yard's management and representatives of the General Workers' Union
will also be part of the group, which has three months to accomplish its
task. At present, it is believed that 1,300 will be employed making ship
repairs while 2,000 will work on other projects. The division of the shipyard
was recommended to Sant in a consultant report by Appledore International.

Union local at Bath Iron Works approves new contract

Members of Local S6 of the International Association of Machinists have
approved a new labor contract with Bath Iron Works Corp. The three-year
contract was approved by less than 150 votes of about 4,000 cast. Under
the contract, there wages are frozen for the first two years with a U.S.$0.25
per hour increase in the third year.

Court approves sale of Marseilles shipyard

The Marseilles Court of Commerce on 28 Aug. approved the sale of Compagnie
Marseillaise de Reparations to Aponte Group's Marinvest for 20 million
French francs/U.S.$3.2 million. On 10 July, the Marseilles Tribunal of
Commerce chose Marinvest as the buyer, but the French labor union CGT rejected
the plan and occupied the yard for 17 days this month.

More on Aker Maritime - Finnyards deal

Aker Maritime will pay 170 million Finnish marks/U.S.$31 million for
control of Finnyards Ltd. Aker RGI will pay 95 million marks/U.S.$18 million
for 60 percent of the holding company that owns Finnyards, with the rest
to be purchased depending on Finnyards' performance. Aker Maritime will
not assume financial responsibility.

Halter Marine completes purchase of Bludworth Bond Shipyard

Halter Marine Inc. announced 28 Aug. it has completed the acquisition
of Bludworth Bond Shipyard Inc. and its facilities in Houston and Texas
City, Texas. Bludworth Bond Shipyard has about 300 employees and total
annual revenues of U.S.$25 million. The yard in Houston has three dry docks
with lifting capacities of 1,200 short tons and 18 meters/58 feet between
wingwalls. There are 460 meters/1,500 feet of sheet pile bulkhead and water
depth is 7.0 meters/23 feet. Lifting equipment can handle objects up to
31,500 kilograms/70,000 pounds. In Texas City, there are three dry docks
with up to 26 meters/84 feet between wingwalls and lifting capacities up
to 4,500 short tons. Vessels up to 130 meters/425 feet can be accmodated
and there is a 107-meter/350-foot bulkhead with an 8.5-meter/28-foot depth.

Bollinger Shipyards to build new boats for the U.S. Coast Guard

Bollinger Shipyards Inc. has received an order worth U.S.$24 million
to build several vessels of the U.S. Coast Guard's Condor-class Patrol
Boat.

Venezuelan line orders 12 ships from two Croatian shipyards

Fort - DA Venezuela Line S.A. ordered 12 5,300-gt multipurpose ships
on 22 Aug. from Brodosplit Shipbuilding Industry and Kraljevica. The U.S.$140
million deal was signed at Split, Croatia, and the 12 will be delivered
by the end of 2000.

Namura Shipbuilding to build four tankers for Stena Bulk

Namura Shipbuilding Co. Ltd. has signed a letter of intent with Stena
Bulk to build four 107,000-dwt double-hull tankers for delivery starting
in December 1999. The cost is U.S.$184 million.

Wallenius Lines orders two car carriers, chartering others

Wallenius Lines has ordered two pure car/truck carriers from Daewoo.
They will each be able to carry 5,850 vehicles and will be delivered by
1999. In addition, Wallenius Line will charter to 5,250-vehicle car carriers
for 10 years from A.P. Moller. They are being built at Tsuneishi Shipbuilding
Co. Ltd.

Brambles Shipping orders from Samsung Heavy Industries

Brambles Shipping has ordered two ro/ro ferries from Samsung Heavy Industries
Co. Ltd.

Hyundai Heavy Industries building oil platform

Hyundai Heavy Industries Co. Ltd. has received an order worth U.S.$57
million to build an oil platform for China National Offshore Oil Corp.
When delivered in October 1998, it will be used in the Weizou field in
the northern Gulf of Tongkin.

Hvide Van Ommeren Tankers accepts U.S. government funding

Hvide Van Ommeren Tankers has received U.S.$4,919,793 for installation
and 25 years of maintenance of four refueling-at-sea stations on three
commercial tankers under construction. This is the first U.S. Military
Sealift Command contract awarded under the U.S. National Defense Features
Program, which pays for the installation of militarily-useful equipment
on merchant ships. In exchange for funding, the tankers must be made availale
for military use in an emergency. The ships will be in service by May 2000.

Tax breaks approved for survey ship

France has approved tax-break financing for a seismic survey ship to
be built for Compagnie Generale de Geophysique and Louis-Dreyfus Armateurs
S.R.C.

Dry cargo ship launched at Rostov-on-Don

The dry cargo ship Temernik was launched at Aksai Don - Kasseks shipyard
in Rostov-on-Don, Russia, on 28 Aug. The 4,600-gt ship is 100.6 meters/330.1
feet long, has a beam of 16 meters/52 feet and a draft of 7.3 meters/24
feet. The ship is named for a steppe where Peter the Great prepared his
vesel for an attack on Azov, Russia. The Temernik took nine months to build
and after fitting out, will have trials in the Sea of Azov. The ship is
registered in and homeported at Taganrog, Russia.

Rhapsody of the Seas to Cascade General Portland

The Rhapsody of the Seas (Norwegian-registry 6,300-dwt passenger ship
built in 1997, owned and operated by Royal Carribean International) will
have its starboard propulsion motor replaced at Cascade General Portland
Inc. in Portland, Oregon, between 13 Sept. and 5 Oct. Two cruises to Hawaii,
on starting 13 Sept. and 24 Sept., have been canceled. The ship will resume
service with a voyage through the Panama Canal.

Second Seawolf-class submarine to be christened

The U.S. Navy's Seawolf-class Nuclear-Powered Attack Submarine Connecticut
(SSN 22) will be christened at 1130 1 Sept. at General Dynamics Corp.'s
Electric Boat Corp. in Groton, Conn. John G. Rowland, governor of Connecticut,
is the principal speaker and his wife, Patricia Rowland, is the sponsor.
Capt. Larry Davis, a native of Jacksonville, Fla., is the prospective commanding
officer. SSN 22 was authorized fiscal year 1991, ordered 3 May, 1991, and
begun 14 Sept., 1992. -- Steve Schultz - Whitefish Bay, Wis., U.S.A. -
sschultz@execpc.com

EVENTS, INCIDENTS AND OPERATIONS

About 400 migrants found aboard ship drifting off Italy

Some 400 migrants were found aboard a 50-meter/164-foot vessel off Catanazaro,
Italy, on 24 Aug. after the crew abandoned the ship in boats. The Bangladeshi,
Iraqi, Kurdish, Sri Lankan and Turkish people each paid U.S.$3,000 for
transport to Germany.

Two crewmembers missing at sea in separate incidents

A crewmember from the Shina (Panamanian-registry 11,559-dwt, 120-meter/400-foot
tanker built in 1994, operated by Shintoku Kaiun) fell overboard on 9 Aug.
some 320 kilometers/200 miles south of Bermuda. A U.S. Coast Guard HC-130H
Hercules aircraft from Coast Guard Air Station Elizabeth City, N.C., aided
in a search. A 31-year-old crewmember of the Columbus Bahia (Liberian-registry
205-meter/673-foot containership) is missing and its believed to have fallen
overboard off Maryland or New Jersey. The man was last seen at 0230 27
Aug. when the ship was 16 kilometers/10 miles south of New York. At 0730,
the ship contacted the U.S. Coast Guard, which sent two HC-130H Hercules
aircraft from Coast Guard Air Station Elizabeth City, N.C.; two HH-65A
Dolphin helicopters from Coast Guard Air Stations Brooklyn, N.Y., and Cape
May, N.J.; the "Point"-class Patrol Boat U.S.C.G.C. Point Franklin
(WPB 82350); and the "Island"-class Patrol Boat U.S.C.G.C. Metomkin
(WPB 1325). A U.S. Coast Guard Auxiliary aircraft also was involved for
a time, flying from Sandy Hook to Atlantic City in New Jersey. The search
is being concentrated between Ambrose Light off northern New Jersey and
Ocean City, Md. The Columbus Bahia is retracing its route. It was sailing
from New York to Miami.

Sixty-five migrants flown back to China

On 26 Aug., a Mexican Navy vessel escorted the Lapas 3 (47.9-meter/157-foot
vessel) off Baja California and escorted it to a Mexican port. On 12 Aug.,
the U.S. Coast Guard's "Island"-class Patrol Boat U.S.C.G.C.
Tybee (WPB 1330) intercepted the ship 160 kilometers/100 miles south of
San Diego. It was located by a Coast Guard HC-130H Hercules aircraft from
Coast Guard Air Station Sacramento, Calif., while on patrol. Coast Guard
and U.S. Immigration and Naturalization Service personnel found 66 passengers
and three crew, all undocumented migrants. Fifty-seven are male, with 19
of them children, and 12 are female, five of which are children. All are
reportedly from Fujian Province, China. On 27 Aug., 65 were flown from
La Paz, Mexico, to Xiamen, Fujian, aboard a passenger aircraft chartered
by the U.S. government. Four others were turned over to the U.S.I.N.S.
in the Bahamas. They will be taken to San Diego where requests for political
asylum will be evaluated.

Some 300 whales beach themselves on the Falklands/Malvinas

At least 300 pilot whales have beached themselves in the Falkland/Malvinas
Islands, it was reported 28 Aug. On one beach, at least 197 whales were
dead or dying. Speculation is that the whales lost their direction due
to a magnetic storm.

Russian vessels fire on Japanese-registry boats, detain one

A Russian government vessel detained the Taiko Maru No. 108 (Japanese-registry
49-gt fishing vessel owned by Taiko Suisan) on 26 Aug. after it was found
fishing in the Russian Economic Exclusion Zone off Sakhalin Island. It
has been taken to Nevelsk on Sakhalin Island. The Taiko Maru No. 108 has
six crew. The same day, Russian vessels fired shots at four Japanese-registry
fishing vessels in the Soya Strait/La Perouse Strait, 12 kilometers/7.4
miles inside Russian territorial waters. The four did not respond to radio,
light or flag communications and left the area after the warning shots.

Canadian fishermen put to sea despite end of season

Several fishing vessels left Cape Sable Island, Nova Scotia, Canada,
on 25 Aug. despite the fact that the handliner season has ended. Fishermen
said that with only a season only a few weeks long, they are forced to
break the law to make a living. The federal government, however, said that
the season is short to protect the number of fish in the area and will
file charges against the fishermen.

Cigarette smuggling operation stopped in Shanghai

Customs personnel in Shanghai, China, have seized a ship unloading smuggled
cigarettes, it was announced 27 Aug. The vessel was carrying 14 FEUs with
13,000 cases of cigarettes. Most of the crew reportedly escaped before
the seizure. The Chinese government said the action has broken a smuggling
operation in existance for more than a year.

Pistols, cocaine seized from vessel in Miami

The U.S. Coast Guard and the U.S. Customs Service seized more than 45
kilograms/100 pounds of cocaine and two pistols on 25 Aug. from the Mondia
(45.7-meter/150-foot vessel) docked at Miami. Two duffel bags of cocaine,
a .38-caliber revolver and a 9-millimeter pistol were found in the port
chain locker. The Mondia, with a crew of eight, has been brought to the
Coast Guard facility at Miami Beach where an investigation continues.

U.S. Coast Guard, Navy medical evacuations

A U.S. Coast Guard helicopter from Coast Guard Air Station Elizabeth
City, N.C., evacuated a crewmember from the Louis J. Hauge on 7 Aug., 24
kilometers/15 miles east of Frying Pan Shoals Light. On 15 Aug., a U.S.
Navy helicopter from the Navy's Nimitz-class uclear-powered aircraft carrier
U.S.S. John C. Stennis (CVN 74) airlifted a 78-year-old woman from the
Zenith (4,300-dwt passenger ship built in 1992, operated by Royal Carribean
International), 590 kilometers/370 miles east of Elizabeth City, N.C. Tressa
Candreva, of Howard Beach, N.Y., said she had a headache and nausea the
night of 14 Aug. before she went into a coma. A helicopter from the Navy's
Nimitz-class aircraft carrier U.S.S. Dwight D. Eisenhower (CVN 69) evacuated
a crewmember from a fishing vessel on 16 Aug., 48 kilometers/30 miles east
of Morehead City, N.C. The person reportedly had a bleeding ulcer. After
the crewmember was stabilized on the carrier, an HH-60J from Air Station
Elizabeth City took the victim of Carteret General Hospital in Morehead
City. She was transported to Norfolk Sentara Hospital in Norfolk, Va. Olga
Price, 71, was airlifted from a cruise ship at 1340 26 Aug., 112 kilometers/70
miles southwest of Key West, Fla. Price, of New York, had fluid in her
lungs and was flown to a hospital in Key West by a Coast Guard HH-60J Jayhawk
helicopter from Coast Guard Air Station Clearwater, Fla.

Counterfeit notes connected to two ships sailing from North Korea

A North Korean crewmember aboard a 5,000-gt Honduran-registry vessel
at Osaka, Japan, used two fake U.S. $100 bills on 22 Aug., according to
local police. The bills were found when the crewmember exchanged U.S.$1,700
for food and 80 used bicycles late 21 Aug. When an Osaka man tried to exchange
the bills at a bank, the counterfeit notes were detected. Police boarded
the ship to investigate, but 160 $100 bills held by the crewmember were
genuine. The ship, which left Osaka on 23 Aug., arrived 20 Aug. from Nampo,
North Korea. Also on 20 Aug., several fake U.S. $100 and $50 bills were
found aboard the Rung Rado (North Korean-registry, 2,056-gt) in Kobe, Japan.
It had sailed from Nampo and loaded rice stalks at Qingdao, China, before
arriving in Kobe on 18 Aug. A crewmember on that ship said the counterfeit
notes were samples to help identify real bills.

Marijuana found aboard Philippine-registry ship in Japan

Security personnel at Hikari, Yamaguchi Prefecture, Japan, have seized
1.8 kilograms/4.0 pounds of marijuana resin from the Eastern Galaxy (Philippine-registry
6,182-gt, 7,722-dwt dry cargo ship built in 1984, operated by Eastern Shipping
Lines). Worth 14.6 million Japanese yen/U.S.$123,000, it was found in brown
adhesive tape in the ship's exhaust stack. The Eastern Galaxy arrived at
Hikari the morning of 25 Aug. to unload boiler parts for electricity generation.
It left Batangas, the Philippines, on 19 Aug.

Launch of solar observatory delayed by shrimp boats

The U.S. National Aeronautics and Space Administration halted the launch
of a solar observatory from Cape Canaveral, Fla., on 24 Aug. after two
shrimp boats strayed into a safety zone. One vessel began moving out of
the zone but a second remained anchored even after a streamer stating "please
move" was dropped onto its deck. With two and a half minutes remaining
in which to launch the U.S.$200 million mission, the launch was canceled.
N.A.S.A. maintains a 13-kilometer/eight-mile wide zone extending for 64
kilometers/40 miles east of Cape Canaveral, which must be clear of aircraft
and vessels during a launch due in part to falling rocket boosters. The
U.S. Coast Guard began broadcasting advisories to clear the area five and
a half hours before the launch. With a clear safety zone the next day,
the Delta rocket was launched. It carried the Advanced Composition Explorer
(A.C.E.) solar observatory, which will be positioned 1.6 million kilometers/one
million miles from Earth, where the gravities of the Earth and the sun
balance each other. The one-ton craft will collect atomic particles from
the sun and elsewhere for up to five years, and will provide a one-hour
warning of solar storms.

Greenpeace members protest another drilling site

Greenpeace members blocked a drilling site on 24 Aug. off the Netherlands.
The group of 25 used vessels and themselves to stop drilling activities
by Netherlands Oil Co., 64 kilometers/40 miles north of Amsterdam, the
Netherlands.

Thai aircraft carrier aiding flood victims

In its first operational deployment since being commissioned on 10 Aug.,
the Royal Thai Navy's aircraft carrier H.T.M.S. Chakkrinareubet (911) has
been sent to the country's southern provinces to provide emergency relief
following heavy flooding. The ship was to begin sending rice and dried
food aboard four S-70B-7 Seahawk helicopters and the Royal Thai Army also
sent forces to assist. Six people have died, one is missing and six have
been injured in the provinces of Chumphon, Ranong, Surat Thani and Trang,
where heavy rain began falling 22 Aug.

Russia protests seizure of fishing vessel by the United States

The Russian Foreign Ministry sent a diplomatic note to the U.S. government
on 27 Aug. requesting that it release the Chernyayevo (Russian-registry
fishing vessel). On 15 Aug., an HH-65A Dolphin helicopter from the U.S.
Coast Guard's Hamilton-class High-Endurance Cutter U.S.C.G.C. Munro (WHEC
724) spotted the Chernyayevo one kilometer/0.6 miles inside the U.S. Exclusive
Economic Zone in the northern Bering Sea. The fishing vessel's gear was
improperly stowed. The U.S.C.G.C. Munro followed the Chernyayevo six kilometers/four
miles into the Russian Exclusive Economic Zone where it was boarded. Salted
cod, 50 to 300 small crabs, 225 kilograms/500 pounds of flatfish and 450
kilograms/1,000 pounds of 675 kilograms/1,500 pounds of fresh pollock was
found. The vessel and its catch was seized and the vessel was taken to
Kodiak, Alaska. The master denies that he was in the U.S. zone and says
the vessel was not fishing at the time. The vessel's log has been seized
for investigation, but the crew is free to leave. Russian diplomats based
in the United States have been sent to Kodiak to examine the log.

Shellfishing closed in Nova Scotia cove

Wadden's Cove, Nova Scotia, Canada, has been closed to shellfish harvesting
due to paralytic poisoning.

VESSEL TRANSFERS

New operator buys very large crude carrier from Texaco

TN Tankers, which raised U.S.$7 million through a share issue, has bought
a very large crude carrier from Texaco Inc. The Star Africa (274,597-dwt
tanker built in 1974) will become the TN Africa. The cost was U.S.$12 million.
TN Tankers will also raise loans for an additional U.S.$7 million.

Chevron Shipping selling two tankers to Maritrans

Maritrans Inc. announced 25 Aug. it will buy two 40,000-dwt tankers
from Chevron Shipping Co. The double-hulled ships have gas turbines and
electric drives and will be used on the eastern and Gulf coasts of the
United States.

Bibby Line buys incomplete accomodations vessel

Bibby Line Ltd. has bought a floating accomodations vessel after the
Danish shipyard building it went into receivership. The Flotel Dania will
become the Bibby Renaissance when completed as a 250-bed structure.

F.P.S.O. bought by Esso Norge needs work

A floating production, storage and offloading vessel that Esso Norge
bought from Smedvig Offshore A/S needs more work than previously thought,
possibly ammounting to 1 billion Norwegian kroner/U.S.$133 million. The
Balder FPU (Norwegian-registry) was built by Far East Levingston Shipbuilding
Ltd. last year in Singapore and is now in a graving dock at Scott Lithgow
Ltd. in Greenock, Scotland.

ARCO Anchorage sold

As previously announced, ARCO Marine Inc. has sold the ARCO Anchorage
(U.S.-registry 122,196-dwt single-hull tanker built in 1973) to Oceaneering
International Inc. for conversion to a floating storage and production
facility. It is now the Ocean Venture.

Vessels from Sun to Maritrans

The vessels being sold by Sun Transport Inc. to Maritrans Inc. for U.S.$30
million have been identified. They are the New York Sun (U.S.-registry
31,382-dwt tanker built in 1980) and the Philadelphia Sun (U.S.-registry
34,000-dwt tanker built in 1981) and the tugs Puerto Rico Sun and Seminole
Sun along with their barges. The New York Sun is chartered to the U.S.
Military Sealift Command while the Philadelphia Sun carries lube oil. The
tugs and barges work for the Sun Co. Inc. refinery in Puerto Rico.

VESSEL CASUALTIES

As many as 100 missing after collision in Nigeria

Two vessels carrying passengers and cargo collided in limited visibility
due to rain on a river 48 kilometers/30 miles from Port Harcourt, Nigeria,
on 26 Aug. As many as 100 people are missing. The Ibiton sank while the
Coon made it to shore.

Two dead, four missing, 16 rescued in sinking off Dakar

The lead ship of the Canadian Maritime Command H.M.C.S. Halifax (FFH
330)-class Frigate rescued 16 crewmembers of a fishing vessel on 27 Aug.
after it sank off Dakar, Senegal. Six persons are missing. The warship
was sailing to Dakar to refuel when it learned the 30-meter/98-foot vessel
had sunk approaching the harbor in bad weather. When rescued, the 16 had
been in the water for 45 minutes, about 1.6 kilometers/one mile from the
harbor. Three boats from the frigate and the ship's CH-124A Sea King helicopter
searched the harbor and rescued the 16. One was treated for burns and another
for internal injuries. Among the missing are the master and chief engineer.
Survivors said the vessel sank in five-meter/16-foot seas and high winds
after its cargo shifted.

One dead, two missing in collision off Japan

One person is dead and two are missing after the No. 81 Kumano Maru
(184-gt fishing vessel) was in a collision with a merchant vessel, reportedly
the Pacduke (Liberian-registry 14,000-gt, 26,670-dwt bulk carrier built
in 1975, operated by Lasco Shipping Co.), 55 kilometers/34 miles off Kushiro,
Japan, on 25 Aug. The fishing vessel had 17 aboard and five were knocked
overboard. All were rescued but two. However, Kenji Ogawara, 54, later
died at a hospital.

Tug sinking in Singapore kills one

A Honduran-registry wooden tug capsized and sank off the Pasir Panjang
Container Terminal in Singapore the night of 26 Aug., killing a crewmember.
The tug was towing a Singaporean-registry deck barge loaded with heavy
machinery from the terminal to Malili, Indonesia. Two Indonesian citizens
and a Singaporean citizen were rescued by another tug while the body of
a Singaporean crewmember was recovered near the Selat Pauh Anchorage.

U.S. Military Sealift Command vessels rescue seven

The U.S. Military Sealift Command Powhatan-class Fleet Tug U.S.N.S.
Narragansett (T-ATF 167) recently rescued four men off Singapore. A fifth
crewmember is missing. The four were the crew of a fishing vessel that
was cut in half in a collision with a ship. The crew, from Sumatra, Indonesia,
had been adrift on debris for three and a half days. All were treated for
minor injuries as well as dehydration and malnutrition. After a search
for the missing crewmember, the tug sailed to Singapore were the Indonesian
Embassy and Singaporean police took the four ashore for additional treatment
before they were taken home. Also, the Green Wave (U.S.-registry 9,521-gt,
12,487-dwt, 154.57-meter/507.12-foot motor general cargo ship built in
1980 by Howaldtswerke-Deutsche Werft AG in Kiel, Germany), which is chartered
from Central Gulf Lines Inc., rescued three people in the Atlantic Ocean
during a storm 16 Aug. The ship was sailing from Sunny Point, N.C., to
Bremerhaven, Germany, with ammunition when the Taxi, a 12-meter/40-foot
yacht registered in Bermuda, sent out a distress call. Shortly after the
Green Wave rescued Leroy Brockman and Howard Young Jr. of South Portland,
Maine, and Samuel Coolidge of St. Barre, Vt., the sailboat sank. The three
stayed aboard until the Green Wave reached the Brixham Sea Pilot Station
of the United Kingdom. The Taxi was sailing to Cape Cod, Mass.

Meridian sinks in South China Sea

The Meridian (Thai-registry 2,540-gt, 7,468-dwt general cargo ship built
in 1970, operated by Kun Yuan Navigation Co. S.A.) capsized and sank 26
Aug. at 08 degrees 15 minutes north, 105 degrees 32 minutes east.

Honduran-registry ship sinks in Mediterranean

The Liberta (Honduran-registry 643-gt general cargo ship) sank 28 Aug.
in the Mediterranean Sea at 39 degrees 10.2 minutes north, 03 degrees 11.8
minutes east. The ship left Palma, Majorica, Spain, for Russia. The eight
crewmembers were rescued.

Gerry Roufs' yacht, missing since January, found off Chile

The Groupe LG2, the 18-meter/59-foot yacht sailed by Gerry Roufs, has
been found, his wife, Michele Cartier, said 22 Aug. Just after midnight
8 Jan., Roufs, 43, radioed in on schedule as he sailed the Groupe LG2 in
the Vendee Globe Challenge, a solo, around-the-world race, somewhere between
New Zealand and Chile. After not hearing from him again, several vessels
and aircraft in the area were asked to keep a lookout for the Groupe LG2.
On 16 Jan., the Chilean government reported that it received a brief radio
message from Roufs. An expanded search involving vessels and aircraft from
Argentina and Chile, several merchant vessels and reconnaissance and surveillance
satellites failed to locate Roufs or his yacht. On 16 July, a Panamanian-registry
vessel found the Groupe LG2 floating off Chile. The yacht was positively
identified by a Chilean military aircraft two days later but Chile decided
against an announcement of official identification. Roufs, 43, of Montreal,
remains missing.

Fishing vessel catches fire in Maine

The Celtic Pride II (U.S.-registry fishing vessel) caught fire 22 Aug.
while moored at its homeport of Portland, Maine. The vessel was pushed
by a tug to a mud flat near the base of the Million Dollar Bridge in South
Portland, Maine. The fire was first spotted by the U.S. Coast Guard's "Island"-class
Patrol Boat U.S.C.G.C. Monomoy (WPB 1326), which was joined by the local
fire department and commercial response units to fight the fire.

Russian-registry tanker holed in grounding near Nakhodka

The Orktyabrsky (Russian-registry tanker), loaded with 750 tons of fuel
oil, ran aground near Cape Goly, Russia, in the Ussuri Gulf during a storm
late 21 Aug. The ship was sailing to Bolshoi Kamen, Russia, and was near
Nakhodka, Russia, when it ran aground. None of the six crewmembers were
injured. The tanker was holed but after it was refloated by the tug Silach
on 22 Aug. and inspected, it sailed to Nakhodka.

Allision at seaway lock causes fuel spill

About 150 people were evacuated from Barnhart Island in the St. Lawrence
Seaway between Ontario, Canada, and New York state the morning of 24 Aug.
after the Vekua (Maltese-registry 11,231-dwt, 151-meter/496-foot motor
tanker built in 1987, operated by Anglo-Georgian Shipping Co. Ltd.) spilled
about 1,140 liters/300 gallons of jet fuel. The Vekua suffered a 10-centimeter/four-inch
gash in a starboard cargo tank as it was entering the Snell Lock. The Vekua
has a liquid cargo capacity of 17,000 metric tons.

Tanker grounds off Suva

The Fong Seong 888 (Panamanian-registry 1,734-gt, 2,300-dwt tanker built
in 1996) ran aground at the harbor entrance of Suva, Fiji, on 23 Aug. The
ship was refloated by tugs the next day.

Belle of Louisville partially sinks at dock

The Belle of Louisville, homeported in Louisville, Ky., since 1962,
partially sank the morning of 24 Aug. Built in 1914, the vessel was bought
by Jefferson County, Ky., and is operated with Louisville as an excursion
vessel. Flooding was stabilized after the tug Sharon M. wedged itself against
the Belle of Louisville to prevent it from sinking further. The Belle of
Louisville is the oldest authentic Mississippi River-style steamboat.

U.S. Coast Guard aids flooding fishing vessel off New Jersey

The Miss B (24-meter/79-foot trawler) broadcast a distress call at 1830
23 Aug. after it began flooding 24 kilometers/15 miles off New Jersey.
The Miss B was sailing from Manesquan, N.J., to Seaford, Va., with a crew
of six. While pulling in its nets, a piece of wood punctured the hull.
A U.S. Coast Guard HH-65A Dolphin helicopter from Coast Guard Air Station
Brooklyn, N.Y., transferred a pump to a 12-meter/41-foot utility boat from
Coast Guard Station Manesquan Inlet. It was then taken to the Miss B. After
partial dewatering, the Miss B made it to port where Budget Towing and
Salvage repaired the hull.

Marine construction vessel contains flooding, but cited for violations

The Roxanne (20-nt, 12.2-meter/40-foot marine construction vessel) sent
out a distress call at 1010 23 Aug., reporting that it was disabled and
taking on water. The two crewmembers were able to contain the flooding
by the time a 12.5-meter/41-foot utility boat from U.S. Coast Guard Station
Milford Haven, Va., arrived. However, the vessel was cited by the Coast
Guard for not being documented, not having a bell or garbage placard and
not having a waste management plan while the master was cited for having
an invalid license. The Roxanne was towed to the Chesapeake Boat Basin
near Kilmarnock, Va.

Passenger ferry towed to Corfu with engine problems

The Queen Vergina (Maltese-registry 11,286-gt, 1,681-dwt passenger ferry
built in 1967, operated by Vergina Ferries Ltd.), sailing from Igoumenitsa,
Greece, and Bari, Italy, had engine problems 26 Aug. off Corfu, Greece.
The ship anchored off the islet of Peristera, Greece, and was towed by
tugs to Corfu.

Stern trawler towed to port after propellers fouled

The New Dawn (British-registry 194-gt stern trawler) was towed to port
27 Aug. after its propellers were fouled by a net at 59 degrees 45 minutes
north, 00 degrees 44 minutes west. A lifeboat from Lerwick, Scotland, towed
the vessel to port, arriving at 0555 28 Aug.

King Rogers not licensed to carry passengers

A preliminary investigation into the sinking of the King Rogers (5.46-ton,
15.7-meter/51.5-foot long wooden vessel) on 15 Aug. in Manila Bay, the
Philippines, has revealed that it was not commercially licensed to carry
passengers. In addition, the vessel was supposed to have only one deck,
not two. Seven people were killed when the boat sank, only 9.1 meters/30
feet from the pier. The 39 others aboard were rescued.

Containers spilling from sunken ship at Mumbai

Some of the 60 containers aboard the Vishva Nandini (Indian-registry
11,001-gt, 13,715-dwt motor dry cargo ship built in 1978, owned and operated
by Shipping Corp. of India Ltd.) have begun to spill off the ship. The
vessel partially sank at the Port of Mumbai, India, on 7 Aug. after its
engine room flooded and its stern came to rest on the harbor bottom. The
Vishva Nandini reportedly hit a submerged object, suffering a two-meter/6.5-foot
gash below the waterline.

More on Catatumbo grounding

The Catatumbo (10,276-dwt dredging vessel built in 1979, operated by
Canalizaciones Instituto) ran aground in Venezuela's Lake Maracaibo at
2210 18 Aug., blocking the channel to oil tankers for 17 hours. The grounding
was at Buoys 24/26. According to the institute that is in charge of the
lake and its channel, material entered the dredger's suction pump and caused
a mechanical failure. The vessel was then navigated out of the channel
so that it would not block it during repairs, but while doing so, ran aground.

Judge suspends license of master in collision that killed three

On 28 Aug., the U.S. Coast Guard's Chief Administrative Law Judge, Joseph
N. Ingolia, suspended the Coast Guard license and the merchant mariner's
document of Michael Simpson for four months. Simpson was the master of
the Houma (27-meter/87-foot long, 1,950-horsepower twin-propeller tug,
owned and operated by Eklof Marine), towing the empty tank barge Essex
(82.9 meters/272 feet long), when it collided with the Heather Lynne II
(14-meter/45-foot long fishing vessel, homeported in Salisbury, Mass.)
on 5 Sept., 16 kilometers/10 miles off Cape Ann, Mass. The three crew on
the fishing vessel, Kevin Foster, Jeffrey Hutchins and John Lowther, were
killed when the boat hit the tow line and capsized. The Heather Lynne II
was then run over by the barge. On 30 June, the Coast Guard issued its
final report, in which it concluded the likely cause of the collision was
the failure of the operator the Houma to take sufficient action and the
failure of the Heather Lynne II to provide a lookout. On 13 Aug., Simpson
was charged with one count of misconduct and negligence and pleaded no
contest in a joint motion. The four-month suspension is retroactive to
15 July. He will then be on probation for one year and must complete a
bridge resource management course no later than 1 March.

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

Six America's Cup yachts to race off Rhode Island

Former competitors of the America's Cup will gather on 30 Aug. at Newport,
R.I., for a race to benefit a local "save the bay" organization.
Six 12-meter/39-foot yachts will race, with crews that will include Tony
Boyden, Ted Hood, Gary Jobson, Peter de Savary, Lawrie Smith and Ted Turner.