- Transport on Line - hiltunen.htm


United States imposes sanctions on three Japanese lines

Sanctions against the three largest Japanese shipping lines - Kawasaki
Kisen Kaisha Ltd. ("K" Line), Mitsui O.S.K Lines and Nippon Yusen
Kaisha (NYK Line) - went into affect at 0001 4 Sept. after the United States
said Japan had failed to eliminate restrictive port practices that hindered
U.S. companies doing business in Japan. The three lines are seeking an
injunction against the action in a Washington federal court. Under the
sanctions, ships operated by the three will be charged U.S.$100,000 each
time they call at a U.S. port when their last call was at a foreign port.
Combined, ships operated by the three call at U.S. ports about 400 times
annually. The first vessel affected was the NYK Springtide (Singaporean-registry
39,394-dwt containership built in 1992, operated by NYK Ship Management
Ltd.), which arrived in Seattle at 0010 5 Sept. Fines will be due starting
15 Oct. The sanctions are particularly aimed at the Japan Harbor Transportation
Association and the Japanese Ministry of Transport. On 26 Feb., the F.M.C.
announced the sanctions but on 11 April, Japan and the United States signed
a "memorandum of consultations." In it, Japan confirmed that
standards for foreign companies to receive port handling licenses under
the Japanese Port Transportation Business Law would be approved within
four months, as long as the applications are by foreign carriers or subsidiares
for general port licenses for itself. Those who received licenses were
not to be required to join the J.H.T.A. U.S. businesses would provide Japanese
dockworkers in labor unions with work at the prevailing wage and at present
levels. The memorandum also noted that the United States called for complete
deregulation no later than 31 Dec., 1998. As for the prior consultation
system, in which even the most minor port handling changes for individual
ships must be cleared with the J.H.T.A., both countries recognized an interim
agreement by the Japan Foreign Steamship Association, the J.H.T.A., and
Japan Shipowners' Port Council for reforming the system by 31 July. The
United States called for eliminating all minor consultations, with major
consultation involving a process between stevedores and their employees
with no requirements for dealings with the J.H.T.A. Major matters were
defined as those that have a substantial affect on dockworkers, such as
relocations or large changes in personnel numbers. A transparent appeals
system was to be formed to oversee the new process. As a result of the
memorandum, the U.S. delegates asked the Federal Maritime Commission to
delay or withdraw imposing sanctions on the three lines on 14 April, but
said they would be imposed on 4 Sept. if no changes were made or actions
taken based on the agreement.

ICB Shipping directors reject Frontline offer, hostile takeover starts

The directors of ICB Shipping A.B. have rejected an offer of 3.12 billion
Swedish kroner/U.S.$397 million by Frontline Ltd. A hostile takeover has
begun and Frontline claims that 35 percent of ICB Shipping shareholders
support a merger. Frontline already owns 10 percent of ICB Shipping stock.
The merger of the two companies would form a tanker operator with control
of 10 percent of the world's modern Suezmax and very large crude carrier
tonnage. Frontline Shipping's fleet, valued at U.S.$830 million, has five
V.L.C.C.s built in the 1990s, eight 170,000-dwt ore/bulk/oil carriers and
two Suezmaxes. ICB Shipping has six V.L.C.C.s and five Suezmaxes, all built
in the 1990s, as part of it U.S.$450 million fleet. The combined line,
with 44 tankers of 8.44 million deadweight tons, would be worth U.S.$1.6
billion. In rejecting the offer, ICB Shipping said it did not give full
value to the company and did not recognize its operating cashflow. Frontline
offered three shares for every share of ICB Shipping or 115 kroner/U.S.$14.63
for up to 25 percent of ICB Shipping's share capital. John Fredriksen,
meanwhile, said he will hold a minority 49.3 percent of Frontline after
21 million new shares were placed with institutions. The placement ended
1 Sept. and at 35.34 Norwegian kroner/U.S.$4.70 each, the issue raised
735 million kroner/U.S.$97.8 million. Most of the shares went to a syndicate
led by Alfred Berg and Carnegie. The number of Frontline shares went from
108.2 million to 129.2 million.

Preussag to control Hapag-Lloyd

Preussag AG has announced it will control 99.2 percent of Hapag-Lloyd
AG in a deal worth 2.78 billion German marks/U.S.$1.53 billion. Preussag
will pay 1,040 marks/U.S.$573 per share to seven shareholders. The group
includes Deutsche Lufthansa AG, Gevaert N.V. and Veba AG with 18 percent
each, Metro AG with 15 percent and Deutsche Bank AG, Dresdner Bank AG and
Veritas Vermogensverwaltungs GmbH with 10 percent each. The German government's
Bundeskartellamt agency and Preussag directors must approve the deal. Hapag-Lloyd
will retain its identity and headquarters in Hamburg, Germany.

Rasmussen Maritime Services, Statoil Norge combining

Navion A/S will be formed by the merger of Rasmussen Maritime Services
A/S and Statoil Norge A/S. It will have some 50 tankers and proforma turnover
this year of 6 billion Norwegian kroner/U.S.$798 million. Navion will have
a ballance of 11 billion kroner with half of it equity. Statoil Norge will
have 80 percent with Rasmussen Maritime Services the rest. Operations will
begin in early October.

Hvide Marine to buy Bay Transportation (St. Philip Towing)

Hvide Marine Inc. announced 4 Sept. it has agreed in principle to buy
Bay Transportation Corp. (St. Philip Towing) and its 14 harbor tugs. The
acquisition will double Hvide Marine's towing operations and add U.S.$17
million to revenues in the first year. It is planned to close the deal
in the fourth quarter pending a definitive agreement and review. Bay Transportation
is the primary harbor towing business at the Port of Tampa, Fla., and charters
tugs to operators in San Francisco and Long Beach, Calif. With the purchase,
Hvide Marine will have 30 tugs, including three existing tractor tugs and
another six from Bay Transportation, under several business entities.

New average adjuster to be formed

Charles Taylor, manager of The Standard P&I Club, has bought Richards
Hogg and will combine it with Lindley to form a major insurance average

GN Comtext buying BIMCOM Services after all

GN Comtext Ltd. signed a deal to buy BIMCOM Services on 1 Sept. from
Cable & Wireless. The new business will likely dominate shipbroking
messaging. The deal comes after denials of the merger were made by the
firms last month.

Bibby Line, T&J Harrison forming joint venture

Bibby Line Ltd. and T&J Harrison Ltd. will form a joint ship management
business. Bibby-Harrison Management Services will begin operating 1 Oct.
with 35 employees and 22 ships.

New Canadian passenger line formed

Trevor Jones, a Canadian property developer, has formed Inside Passage
Cruises, a passenger line that will sail in Canada's inside passage between
Vancouver Island and the British Columbia mainland. The line will use the
Taverner (Canadian-registry 357-dwt passenger ferry built in 1962 by Canadian
Shipbuilding & Engineering Ltd.'s Collingwood Shipyards Ltd. at Collingwood,
Ontario, Canada). It had been operated by Marine Atlantic Inc. The vessel
will receive a Canadian$7 million/U.S.$5 million refit in Vancouver, entering
service in March as the Pacific Aurora. There will be berths for 70 to
80 people and a crew of 22 to 24. The Pacific Aurora will be registered
in Canada and homeported at Prince Rupert, British Columbia. It will operate
seasonally with a four to five-month lay-up during the winter.

Alaska may seize Canadian-registry vessels for damages

The State of Alaska has given owners of some 200 Canadian-registry fishing
vessels until 15 Sept. to file security bonds or their vessels may be seized
as compensation. On 19 July, more than 200 Canadian-registry fishing vessels
surrounded the Malaspina (U.S.-registry ferry built in 1963, operated by
the State of Alaska, homeported at Juneau, Alaska) as it arrived at Prince
Rupert, British Columbia, Canada. Passengers and vehicles disembarked,
but just before 328 passengers boarded, the fishing vessels refused to
move in protest of negotiations to renew the Pacific Salmon Treaty of 1985
by Canada and the United States. Some 90 passengers remained aboard with
the rest going to hotels and some deciding not to make the voyage. On 20
July, a judge in Montreal ordered the fishing vessels to end the blockade
and further calls at Prince Rupert by Alaskan ferries were indefinitely
canceled. On 21 July, a local sheriff, with Royal Canadian Mounted Police
escorts, served every vessel in the blockade with the judge's order. Those
that did not leave right away later did so after several crews met with
Canadian Fisheries Minister David Anderson. The Malaspina was then able
to proceed to Ketchikan, Alaska, though reportedly with only 142 passengers
and 88 vehicles. A Canadian court on 28 July granted a permanent injunction
that bars blockades of Alaskan ferries by fishing vessels in British Columbia.
Alaska has now filed a lawsuit seeking U.S.$2.8 million in damages due
to the blockade of the Malaspina and will seize vessels if necessary.

LLP buys MRC Business Information Group

MRC Business Information Group Ltd., a consultancy and financial reporting
business that also publishes Bunker News, has been sold to LLP Ltd. It
has annual turnover of 3.5 million British pounds/U.S.$5.2 million and
employees 70 persons at Oxford, England. Founded in 1984, it issues 1,000
reports monthly and has 2,000 clients. The company also has an office in
Stamford, Conn. MRC Business Information Group has I.S.O. 9001 certification.

Ulstein Holding to issue shares

Ulstein Holding will raise 37.5 million Norwegian kroner/U.S.$4.99 million
through an inital public offering and a listing on the Oslo Stock Exchange.
The shares, at 80 kroner/U.S.$10.64 each, will raise the firm's share capital
to 214.1 million kroner/U.S.$28.48 million. The offering is from 5 to 12

New F.P.S.O. standards

Det Norske Veritas has issued new standards for floating prodction,
storage and offloading vessels.

U.S.$15 million exit penalty possible in Navieras purchase

As a result of Holt Hauling and Warehouse Systems Inc.'s purchase of
NPR Inc., parent of Navieras Inc., a U.S.$15 million penalty may have to
be paid. After the purchase, it was announced that Navieras would move
its New York call to Holt Cargo Systems Inc.' Packer Avenue Terminal in
Philadelphia. The move is to take affect by the end of October. Under a
federal law, however, Navieras will be liable to help cover a shortfall
in New York's pension plans for dockworkers. Under an agreement with the
New York Shipping Association, Navieras will have to pay for pension plans
of the International Longshoremen's Association, perhaps for up to 10 years
at a cost of around U.S.$15 million.

M.E.B.A. picketing Riverboat Services

The Marine Engineers' Beneficial Association picketed Riverboat Services
Inc., the operator of the Mardi Gras, recently. Licensed officers of the
vessel supported representation by the labor union earlier this year, but
the company has refused to allow its officers to join and is instead encouraging
another union, according to M.E.B.A. M.E.B.A. also said that five officers
have been fired for trying to seek representation. The U.S. National Labor
Relations Board filed an unfair labor practices complaint against Riverboat
Services on 6 Aug.

Reserve Bank of India allowing new charter payment scheme

The Reserve Bank of India has begun a new service in which shipping
company's can remit charter fees for ships and pay demurrage charges through
authorized foreign exchange businesses. Companies will need permission
by the Director General of Shipping Remittances and the scheme will only
work for payments by the charterer to the owner.

ELF Enterprise Caledonia loses effort to reclaim money

ELF Enterprise Caledonia Ltd. has lost a court effort to reclaim 140
million British pounds/U.S.$222 million it paid in damages following the
destruction of the Piper Alpha petroleum platform in 1988. ELF Enterprise
Caledonia is the successor to Occidental Petroleum, which operated the

More on Jacksonville Port Authority's trip 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. It did not admit
guilt. The two-day trip to Havana was to meet with Cuban port officials
to build relations if trade resumes. Five authority personnel and a Jacksonville
councilman made the trip at a cost of U.S.$4,587, including U.S.$491 for
a dinner with two Cuban government representatives. This is the first time
that the department has levied a fine against a local or state government
for violating the embargo. The department's Office of Foreign Assets Control
initially wanted to fine the authority U.S.$15,000 with another U.S.$7,500
each against the six involved.

CaroTrans International moves offices

CaroTrans International, a non-vessel operating common carrier, has
moved its headquarters from Cherryville, N.C. to Lemont, Ill. Its Full
Container Load Division will move from Cherryville to an offce near the
Port of Charleston, S.C.

Hanjin Shipping milestone

Hanjin Shipping Co. said 26 Aug. it had reached a cumulative total handling
volume of 10 million TEUs, the first South Korea carrier to do so. It began
container operations in October 1978.

Direct Cruises gets 14,000 bookings

Direct Cruises, a new British cruise operator, has received 14,000 bookings
since it started accepting reservations two weeks ago. If confirmed, the
bookings account for 3 million British pounds/U.S.$5 million. Direct Cruises
has chartered the Eugenio Costa (32,000-gt, 9,000-dwt passenger ship built
in 1965) from Lowline Ltd. and will rename it the Edinburgh Castle with
British-registry. The ship will sail from Glasgow, Scotland, and Liverpool,
England, to the Mediterranean and Norway.


New conference formed to replace recently collapsed pact

Maersk Line, P&O Nedlloyd Container Line Ltd.'s European subsidiary
P&O Nedlloyd B.V. and its U.S. unit P&O Nedlloyd Ltd. and Sea-Land
Service Inc. have formed the United States South Europe Conference. It
replaces the South Europe American Conference, which recently was disbanded.
The new conference involves calls by the lines at France, Italy, Portugal,
Spain and the United States.

C.M.A. will not continue Croatia Line exchange, to start own service

Compagnie Maritime d'Affretement will not renew its slot-exchange agreement
with Croatia Line when it ends this month. Instead, C.M.A. will start a
new service from the east coast of the United States to the Mediterranean.
Four ships will call New York; Baltimore; Norfolk, Va.; Savannah, Ga.;
Freeport, the Bahamas; Valencia, Spain; Livorno, Italy; Damietta, Egypt;
Naples, Italy; Livorno; Genoa, Italy; Fos, France; Valencia; and New York.
Transshipment will be set-up through Freeport and Damietta.

Malaysian International Shipping slot-chartering from Safari service

Malaysian International Shipping Corp. Bhd. will charter slots on member
lines of the Safari service from eastern Asia, including Japan, to South
Africa. The first sailing under the new arrangement will be the westbound
SA Vaal from Yokohama, Japan, on 14 Sept. Eastbound, the first sailing
will be from Port Elizabeth, South Africa, on 12 Oct. The Safari service
includes Kawasaki Kisen Kaisha Ltd., Mitsui O.S.K. Line, P&O Nedlloyd
Container Line Ltd. and Safmarine & CMBT Lines N.V.

Pakistan National Shipping to start four-port container route

On 12 Sept., Pakistan National Shipping Corp. will start a container
service between Pusan, South Korea; Keelung, Taiwan; Singapore; and Colombo,
Sri Lanka. Calls will be made every two weeks by the Swat (14,584-dwt,
1,014-TEU capacity containership built in 1983) and the Makran (Pakistani-registry
23,490-dwt, 770-TEU capacity dry cargo ship built in 1979). A 1,000-TEU
capacity ship will be added next month for a 10-day frequency. A feeder
service will be offered from Pusan to Japan using Nam Sung Shipping Co.,
while a 9-day shuttle will carry containers from Colombo to Karachi, Pakistan.

Columbus Line to change vessels, frequency on West Coast Americas route

Columbus Line announced 2 Sept. that changes will be made to its West
Coast Americas service by January. A fourth vessel, of 1,100-TEU capacity
with 150 refrigerated container plugs, has been added to the route, which
includes calls at Vancouver, British Columbia, Canada; Seattle; San Francisco;
Los Angeles; and ports in Colombia, Ecuador, Peru and Chile. Frequency
will be increased from 16 days to 12 days. Early next year, the other three
750-TEU vessels, with 80 refrigerated plugs, will be replaced by two ships
similar to the new addition. The frequency will then be every two weeks.

Grimaldi Group to call Buenos Aires, adds another ship

Grimaldi Group is starting a new container service between Argentina
and Italy. Beginning in October, ships on the route will call the Argentine
port of Buenos Aires. The containership Repubblica de la Boca has been
added to increase the route's frequency to 12 days. Calls are made at the
Italian ports of Livorno and Genoa; Rio de Janeiro, Santos, Itajai and
Paranagua in Brazil; and Buenos Aires.

BR Distributor, LIBRA officially starting Brazilian barge service

BR Distributor and Linhas Brasileiras de Navegacao S.A. will officially
start a new barge service on the Parana and Tiete Rivers in Brazil in October.
It has been partially operating since this spring. Operated by Companhia
de Navegacao de Amazonia, a venture of BR Distributor and LIBRA, the company
spent U.S.$19 million on 15 new barges each able to carry 2,200 tons.

Nine countries to develop transport links further

After two days of talks at Burgas, Bulgaria, nine countries agreed to
develop transport links under the TRASECA scheme. The group included Albania,
Azerbaijan, Bulgaria, Georgia, Kazakhstan, Macedonia, Turkey, Turkmenistan
and Uzbekistan. In the maritime field, the agreement calls for expanded
ferry services between Italy and Albania and a new service between Burgas
and Poti, Georgia.

Condor Marine Services starting new ferry service

Condor Marine Services Ltd. is starting a daily passenger service from
Weymouth, England, to St.-Malo, France, via Guernsey in the Channel Islands.
The Condor 10 (Singaporean-registry 660-dwt, 550-passenger ferry built
in 1993) will operate from May to mid-October. Departures will be from
Weymouth at 0730 and St.-Malo at 1815.

Buquebus Espana starts operating

Buquebus Espana began sailing 1 Sept. between Algeciras and Ceuta in
Spain. The line is using the Albayzin (950-dwt, 96.2-meter/316-foot ferry
built in 1994).


Blockade of Sierra Leone approved, port shelled; Liberian embargo lifted

At the conclusion of the annual meeting of the Economic Community of
West African States on 30 Aug. in Abuja, Nigeria, heads of state of member
countries ordered their militaries to enforce sanctions against Sierra
Leone. Military personnel, led by Maj. Johnny Koroma, seized political
power from President Ahmad Tejan Kabbah in a coup d'etat on 25 May. A final
summit declaration announced sanctions and a blockade of the country's
ports. On 4 Sept., at least 18 persons, and possibly as many as 30, were
killed in Freetown, Sierra Leone, during fighting between armed factions
and Federal Nigerian Army soldiers. The Nigerian troops attempted to enforce
the embargo at the port and in the process, opened fire on vessels unloading
rice. The fighting was near a marketplace and some of the dead were apparently
caught in the crossfire. Also, the organization lifted a 30-kilometer/19-mile
blockade of part of Liberia on 1 Sept. War risk insurance for cargo and
vessels calling at ports in the area, including Monrovia, will no longer
be necessary, according to the organization. The blockade began in 1993.

Hutchison Whampoa increases stakes in terminals, subsidiaries

Hutchison Whampoa Ltd. has increased its stake in Hong Kong International
Terminals Ltd. from 77.5 percent to 80 percent. Hutchison Port Holdings
has bought the additional stake from Hellman Friedman. In addition, Hutchison
Whampoa's stake in Yantian International Container Terminals Ltd. has increased
from 43.6 percent fo 45 percent. The firm also took Hong Kong$500 million/U.S.$64.6
million in shares to convert three midstream container businesses in Hong
Kong to wholly-owned subsidiaries of an existing Hutchison Whampoa company,
Mid-Stream Holdings. They are Floata Consolidation, Lego Consolidation
and Warehouse Co. and Wide Shine Terminal. Hutchison Whampoa had previously
owned 50 percent of each. As a result, Hutchison Whampoa now controls 30
percent of midstream container handling in Hong Kong.

Major expansion at Buenos Aires planned

A major expansion of the Port of Buenos Aires, Argentina, has been announced.
Using spoils from dredging of the River Plate, the port would be extended
beyond the breakwater at Puerto Nuevo. The local municipality will pledge
between 5 million Argentine pesos/U.S.$5 million and 10 million pesos/U.S.$10
million, while the port authority will add 18 million pesos/U.S.$18 million.

Shanghai starts international container transfer

The Port of Shanghai, China, announced 1 Sept. that international container
transshipment has started. Shippers authorized for international container
transport at Shanghai can apply to transship containers. Previously, Shanghai
only handled containers being imported or exported.

Puerto Quetzal to get U.S.$250 million upgrade

Some U.S.$250 million has been earmarked to upgrade Puerto Quetzal,

Canada postpones St. Lawrence Seaway toll increase

Canada has decided to delay a planned toll increase for ships using
the St. Lawrence Seaway. Instead, it will work to complete negotiations
with an industry group seeking to control the Canadian operations of the
seaway. A toll increase of 2.5 percent was to have been put in place 1
Aug. Rates have been frozen since 1994.

Royal Port Services files another lawsuit over Subic Bay terminal

Royal Port Services has filed a lawsuit at a regional court in Olongapo,
the Philippines, seeking to get a contract to run the Subic Bay Container
Terminal in the Philippines. On 8 July, Hutchison Ports Philippines Ltd.
filed a lawsuit against the Subic Bay Metropolitan Authority to restore
a contract by the authority for Hutchison Ports Philippines to develop
and operate a 16,000-hectare/40,000-acre container terminal at Subic Bay
under a 25-year concession. It was declared the winner twice but rebidding
was ordered after International Container Terminal Services Inc. said it
had the highest bid but was disqualified, since it also operates the Manila
International Container Terminal and so would control a large segment of
Philippine container traffic. Now, Royal Port Services is seeking to have
Hutchison Ports Philippines' lawsuit dismissed and the contract awarded
to it. Royal Port Services contends that Hutchison Ports Philippines is
not incorporated in the country, and as a non-resident foreign business,
is ineligable to operate the terminal. In addition, Royal Port Services
said that Hutchison Ports Philippines' plan to install a Gottwald-type
mobile ship-to-shore crane did not match contract specifications, which
called for a quayside crane.

Part of Hungarian port to become national public port

Hungary has decided that 90 hectares/225 acres of the 237-hectare/593-acre
Port of Csepel, Hungary, will become a national public port by the end
of the year under a 1992 law. A Hungarian court ruled that a decree by
the Hungarian Ministry of Transport, Telecommunication and Water Management
to withdraw an offer of the land was invalid. The Csepel National Public
Port will be offered to private operators on concession.

Port of Oakland officially doubles in size

The Port of Oakland, Calif., has doubled its size after a vote by the
Board of Commissioners on 2 Sept. The board certified the final state and
federal environmental impact reports for the U.S. Navy's Fleet Industrial
Center at the port. In addition to acquiring the last part of the 211-hectare/528-acre
site, the board approved a harbor fill alternative. The port also voted
to accept U.S.$7 million from the federal government under the U.S. Intermodal
Surface and Transportation Efficiency Act to begin work on a planned intermodal
terminal at the former Navy site. Demolition will start in January with
construction of the new intermodal terminal beginning in late spring.

New Mumbai L.N.G. terminal

Tata Electric Cos. and Total S.A. announced plans this week for a new
liquifed natural gas terminal near Mumbai, India.

Norasia Shipping Services, Piraeus agree on deal

Norasia Shipping Services S.A. signed an agreement with the Piraeus
Port Authority in Greece on 3 Sept. The line announced last week it is
leaving Malta Freeport after seven years. The authority will realize annual
revenues of 2.5 billion Greek drachmas/U.S.$8.7 million as part of the
deal. Some 100,000 TEUs will be handled for Norasia Shipping Services.

Bangladesh to get first container terminal on a river

The first container port on a Bangladesh river will begin construction
shortly. Purchase of land and engineering plans for the 3.55 billion Bangladesh
taka/U.S.$80.7 million project has been completed. Located at Pangoan on
the Buriganga River, the port will receive 230 million taka/U.S.$5.23 million
from Japan's Overseas Economic Cooperation Fund. The port will be 36 hectares/89
acres and will handle 160,000 TEUs annually.

Three fruit companies to build Antwerp facility for orange juice

Cambuhy Citrus, CTM and Montecitrus will build a 275 million Belgian
franc/U.S.$7.3 million facility at the Left Bank area of Antwerp, Belgium,
to handle frozen concentrated orange juice. The juice will be shipped in
bulk every month aboard the Southern Dawn (Bahamian-registry 25,950-dwt
combination bulk carrier), which is being converted at Bremerhaven, Germany.
About 150,000 tons will be handled annually. The three have formed Southern
Juice Co. to operate the facility in Antwerp, which can store 24,000 tons.

New grain terminal to be built in Canada

James Richardson International will build an 18,000-ton capacity grain
terminal at Hamilton, Ontario, Canada. The terminal will handle maize,
soybeans and wheat grown in Ontario.

Chittagong charging for ships staying too long

The Port of Chittagong, Bangladesh, in a move to cut the congestion
at the port, started charging 20 percent above its fees for ships that
overstay their berth reservations.

Shoreham Port Authority purchases Sussex Port Forwarding

The Shoreham Port Authority in England has bought Sussex Port Forwarding

Konsortium Perkapalan to build another berth in Mumbai

Konsortium Perkapalan Bhd. will build another berth under a build-operate-transfer
deal signed with Jawaharlal Nehru Port Trust in Mumbai, India. In January,
it won a concession to build two container berths under a similiar deal.

Mitsui O.S.K. Lines moves Memphis facility

Mitsui O.S.K. Lines (America) Inc. has moved its intermodal operations
in Memphis, Tenn., to a facility operated by CSX Intermodal. The Leewood
Terminal on Warford Street will have eight double-stack railcar spots.

Strike at Colombo fails to affect port

A planned strike by members of the Ceylon Mercantile Union at the Port
of Colombo, Sri Lanka, on 28 Aug. failed to idle the port. Members were
to walk out at midday, but only a few did so. The union wanted to protest
what it says are anti-union measures being taking by the port's management,
including transfers of members on disciplinary grounds and refusing to
hire more of its members. Union members have been on a "work-to-rule"
status since 12 Aug. to protest P&O Ports' planned takeover of the
Queen Elizabeth Quay.

P&O Ports India sells stake in Vadhavan, new subsidiary to be formed

P&O Ports India has sold 5 percent of its 89 percent equity stake
in the Port of Vadhavan, India. The sale was made to an Indian company
in a private placement. Meanwhile, P&O Ports Australia has received
government permission to form a new Indian subsidiary.

Singapore to encourage bunkering changes

As of 1 Oct., all bunker tankers under five years old that call at Singapore
will get a 50 percent rebate on port charges. Ships calling for bunkering
at specific anchorages that are at least 20,000 gross tons will receive
a port rate of Singapore$1/U.S.$0.66 per 100 gross tons instead of S$2.20/U.S.$1.45.
The Eastern Petroleum "B" Anchorage will be renamed the Eastern
Special Purposes "C" Anchorage. The new anchorage will be able
to handle six ships instead of three, while the Changi Special Purposes
Anchorage will be able to handle six ships along with the similiarly sized
Changi Holding Anchorage. At the Changi anchorages, ships will be charged
S$100/U.S.$65.88 per 100 gross tons for ships anchored less than eight
hours. Finally, compulsory pilotage will be exempt in the bunkering areas.

Los Angeles handles record number of containers

For the fiscal year that ended 30 June, the Port of Los Angeles handled
2,884,477 TEUs, a new record. The previous record was 2,641,540 from fiscal
year 1995.

Shareholders approve restructuring of B.L.G.

A restructuring of Bremer Lagerhaus Gasellschaft, the port authority
for Bremen and Bremerhaven, Germany, has been approved by shareholders.
BLG AG & Co. will be formed 1 Jan. to take ownership of port handling
equipment and some facilities from the Bremen city government. Independent
subsidiaries will be formed to focus on certain cargo operations, such
as containers, conventional cargo, data processing, logistics, technical
items and repairs and vehicles.

More on new logistics firm in Shanghai

Mitsui O.S.K. Lines, Omuri Kaizoten, Shanghai International Holding
and Sinotrans Beijing have established a logistics and warehousing company
in Shanghai, China, named Shanghai Longfei International Logistics. Capitalized
at U.S.$1 million, Sinotrans Beijing has 51 percent, Mitsui O.S.K. Lines
and Omuri Kaizoten have 44.1 percent and Shanghai International Holding
has 4.9 percent.

Permit for expanding Wisconsin spoils dump denied

New uses are being sought for Wisconsin's Renard Isle dump, a 22-hectare/55-acre
site containing spoils from dredging, after an adminstrative law judge
denied an application for a water quality permit as part of an expansion
plan. Suggestions have included a golf course or a public park. The dump,
off Bay Beach Park in Green Bay, Wis., contains toxic spoils from the nearby
Fox River and lower Green Bay channels. The Brown County (Wis.) Harbor
Commission and the U.S. Army Corps of Engineers had proposed expanding
the site to 70.4 hectares/176 acres at a cost of U.S.$20 million. The water
quality permit was part of the clearances necessary for the project. Due
to the lack of places to dump spoils, dredging in Brown County has decreased
from 357,000 cubic meters/470,000 cubic yards annually to less than 114,000
cubic meters/150,000 cubic yards.


Veritas Capital to buy BethShip

Bethlehem Steel Corp. announced 29 Aug. it will sell BethShip Inc.,
its shipyard in Sparrows Point, Md., to Veritas Capital Inc. Veritas Capital
has not arranged financing, but the companies hope to complete the deal
by the end of the month. Employees have already approved a labor deal with
Veritas Capital. The new firm will be called Baltimore Marine Industries.
Bethlehem Steel had been asking for U.S.$30 million for the yard, but reportedly
agreed to U.S.$15 million, according to The Baltimore Sun.

Nordsovaerftet bankrupt

Nordsovaerftet A/S, the shipyard in Ringkobing, Denmark, has declared
bankruptcy and laid off its 350 employees. Two months ago, the yard restructured
and received 60 million Danish kroner/U.S.$8.5 million in working capital
from two institutional investors.

Cummins Engine, Wartsila NSD to combine high-speed engine operations

Cummins Engine Co. Inc. and Wartsila NSD Corp. have signed a letter
of intent to extend their joint work in heavy-duty, high-speed engines.
In particular, the agreement will expand their cooperation to include engineering,
marketing and service of engines for marine applications. A joint venture
in existance since 1995, Cummins Wartsila Engine Co., will merge the high-speed
engine operations of Wartsila France, part of Cummins PGI Co., all Cummins
Wartila Engine operations in France and the United Kingdom and relevant
marketing and service activies of Cummins Engine. The venture will focus
on high-speed engines between 600 and 4,500 kilowatts. It is expected that
Cummins Wartsila Engine will have proforma sales of U.S.$240 million in
the first year with 1,000 employees. The restructured venture will begin
1 Jan.

Ukrainian shipbuilder to be privatized

The Ukrainian State Property Fund said 2 Sept. it will sell more than
two-thirds of Okean Shipyard. Two blocks of 26 percent each will be sold
by commercial tender as part of a privatization plan. Personnel at the
shipyard will have the first chance to purchase another 10 percent. Ukraine
will retain 26 percent with the rest sold on stock markets or in auctions.

Avondale, Litton agree to team for future projects

Avondale Industries Inc. and Litton Industries Inc. signed an agreement
4 Sept. to work together on future shipbuilding programs. The agreement
establishes the framework for future teaming arrangements. Already, the
two shipyards have joined for three projects: building tankers for carrying
crude oil from Alaska, working on a new class of U.S. Coast Guard cutters
and building the U.S. Navy's planned Auxiliary Dry Cargo Ships.

Odebrecht combining offshore work

Odebrecht has formed a new offshore division that will bring together
its petroleum engineering and construction operations in Brazil and the
United Kingdom.

TDI-Halter announces agreements with Zentech

Halter Marine Group Inc. announced 3 Sept. that its TDI-Halter Inc.
subsidiary will buy a minority stake in Zentech Inc., a Houston engineering
firm specializing in mobile offshore petroleum rigs. TDI-Halter has received
an exclusive license to market and sub-license two of Zentech's rig designs,
the R-450 and R-530. The new R-450 can drill in water as deep as 110 meters/350
feet while the R-530 can operate to 120 meters/400 feet. TDI-Halter will
provide equipment for each license-built rig, and has entered into a deal
with Zentech in which it will provide all external rig engineering needs.

Heusden Shipyard loses environmental battle

Heusden Shipyard has lost an appeal for more flexible environmental
rules. A Dutch court ruled that it must separate its waste before disposal.
Other Dutch shipyards may be affected by this ruling when their environmental
leases expire.

Marinvest now in control of French shipyard

Compagnie Marseillaise de Reparations has been taken over by Aponte
Group's Marinvest following a court ruling and a decision by French labor
union CGT to abandon its protest. The shipyard now has 110 employees though
Marinvest may add more if additional work is secured. It will also invest
22 million French francs/U.S.$3.6 million for upgrades to the yard.

More on Bath Iron Works 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 1,831 to 1,979. 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. However, there is a U.S.$1,000 signing bonus the first
year and U.S.$700 the second. In addition, life insurance and weekly accident
and illness benefits will increase. The shipyard will also increase employee
pension contributions by 32 percent.

Genstar Container offering on-line equipment reservation

Genstar Container Corp. on 29 Aug. began Internet access to its equipment
reservation system, reportedly the first such system in the container leasing
industry. The On Line Inventory and Booking option on Genstar Container's
Internet Connection Customer Desktop allows complete bookings in less than
three minutes. Customers can view Genstar Container's fleet and locate
containers at specific locations. On-line billing and a depot directory
have also been introduced. The new services were developed in conjunction
with APL Ltd., Maersk Line and Sea-Land Services Inc. Customers can request
access to the system by completing an application at www.ge.genstar.com.

Jinhui Shipping and Transportation orders bulk carriers

Jinhui Shipping and Transportation has ordered two 73,300-dwt bulk carriers
for 6.4 billion Japanese yen/U.S.$53 million through Sumitomo Corp. They
will be built by Oshima Shipbuilding Co. Ltd. for delivery in mid-2000.

Title XI financing secured for ferries in Florida service

The U.S. Maritime Administration approved Title XI loan guarantees on
2 Sept. for two passenger ferries. The aluminum, twin-hull vessels will
be built by Bollinger Shipyards Inc. at Lockport, La., for Mersea Ships
1 Inc. They will operate between Miami and Key West, Fla., twice a day
carrying up to 300 people. The loan guarantee is for U.S.$30 million or
up to 87.5 percent of the estimated cost of U.S.$34 million. The first
ferry will be delivered a year after construction starts with the second
to follow three months later.

Austal Ships to build vessel for Bounty Cruises

Austal Ships Pty. Ltd. will build a 44-meter/144-foot catamaran cruise
vessel to Bounty Cruises, based on Bali Island, Indonesia. The 500-passenger
vessel will be capable of 28 knots and will be delivered in July. It will
have a beam of 11.8 meters/38.7 feet and a draft of 2.5 meters/8.2 feet.

Services et Transports seeking tax breaks

Services et Transports has applied to the French Finance Ministry for
tax-break financing for two 440-passenger ships, which would be operated
with Radisson.

Algoma Central Marine ship to be refitted

Canadian Shipbuilding & Engineering Ltd.'s Port Weller Dry Docks
at St. Catherines, Ontario, Canada, has been awarded a Canadian$5.5 million/U.S.$4.0
million contract to refit the Algorail (Canadian-registry 16,157-gt, 23,750-dwt,
11,114-nt, 195.20-meter/640.42-foot motor bulk carrier built in 1968 by
Canadian Shipbuilding & Engineering's Collingwood Shipyards Ltd. at
Collingwood, Ontario; operated by Algoma Central Corp.'s Algoma Central
Marine). It will arrive 3 Dec. and will get a new gate for its self-unloading
system designed by Algoma Central and EMS-Tech Inc. The boom's cable hoist
system will be replaced by a hydraulic system, cargo hold components will
be replaced, electrical and hydraulic equipment in the tunnels will be
renewed and a Garland roller system installed.

U.S.M.S.C. ship to be upgraded

The U.S. Military Sealift Command has awarded a U.S.$26 million contract
to Southwest Marine Inc. in San Diego to upgrade the Kilauea-class Ammunition
Ship U.S.N.S. Kiska (T-AE 35). The work will be completed by November 1998
and may total U.S.$30.6 million.

Two new N.O.L. containerships launched

The NOL Agate and the NOL Cyprine were christened for Neptune Orient
Lines Ltd. on 2 Sept. at a Samsung Heavy Industries Co. Ltd. shipyard in
South Korea. The 49,600-dwt containerships have a capacity of 5,000 TEUs.
They are fully cellular and are capable of 24.5 knots. One will be delivered
this month with the other in December. Both will be operated by Neptune
Shipmanagement Service (Pte.) Ltd.

O.O.C.L. christens new ship

Orient Overseas Container Line Ltd. on 26 Aug. christened the seventh
of eight 4,960-TEU capacity containerships. The OOCL Singapore was built
by Mitsubishi Heavy Industries Ltd. at Nagasaki, Japan. It will sail between
Asia and Europe.

Buquebus International gets new ferry

E.N. Bazan delivered a B60 catamaran passenger ferry to Buquebus International
Ltd. on 3 Sept. Built in Spain, the Luciano Federico is capable of 60 knots.

Work begins on Fred Olsen carrier

Fincantieri Cantieri Navali Italiani SpA has begun work on a 110-trailer
ship for Fred Olsen at Ancona, Italy. The Babant will be delivered in February.


Nineteen airlifted from tug, barge off New York

On 21 Aug., U.S. Coast Guard HH-65A Dolphin helicopters from Coast Guard
Air Station Brooklyn, N.Y., rescued 19 people from a tug and barge near
Moriches Inlet, N.Y. The master of the tug Hoosier State lost control of
the vessel in 4.6-meter/15-foot seas and was rescued by a helicopter. It
was towing the dredging barge Alaska and was 457 meters/1,500 feet offshore.
The Alaska, with 22 persons aboard, anchored and 18 were airlifted by two
helicopters. The tow was later brought to port.

Man rescued after five days adrift at sea

A 32-year-old Croatian man was rescued 4 Sept. after floating at sea
aboard a personal water craft since 29 Aug. Bingold Zeljko's rented craft
ran out of gasoline off Santiago, Cuba. The Intrepid found Zeljko east
of the Pacific Reef Light and brought him to a boat from U.S. Coast Guard
Station Miami at the Miami sea buoy. He has been taken into custody by
the U.S. Immigration and Naturalization Service. Zlejko works at the Hotel
Presidente in Havana and wishes to return to Cuba.

Injured Chesapeake Bay fisherman brought ashore by U.S. Coast Guard

Rodney Bartlett, 26, was struck by a 16-kilogram/35-pound fish hook
on 28 Aug. while working aboard the fishing vessel Atlantic Fisher in Chesapeake
Bay, Md. A boat from U.S. Coast Guard Station Milford Haven, Va., transported
Bartlett to the station where an ambulance took him to Walter Reed Hospital.

Three crewmembers charged in Hong Kong with weapons smuggling

The master and two crewmembers of the Wing Son (Panamanian-registry
11,587-dwt dry cargo ship built in 1979, operated by Waibert Steamship
Co. Ltd.) were charged 30 Aug. in Hong Kong with weapons smuggling. The
three each received a charge of "importing strategic commodities without
a license." An inspection of the Wing Son by customs personnel found
an armored vehicle with spare parts including a gearbox and tires, a machine
gun and 12 smoke grenades. The other 20 crewmembers and a representative
of Chu Kong Shipping were released on bail. The vessel's last port of call
was apparently Thailand.

Russia warns Turkey against searching vessels

Russia said 4 Sept. that any attempt by Turkey to detain and search
vessels sailing between the Aegean Sea and the Black Sea is a violation
of the Treaty of Montreux signed in 1936. The announcement was made after
Turkey searched two ships, which, according to Russia, was an attempt to
prevent premature shipment of S-300 air defense missiles from Russia to

Greenpeace ends protest of North Sea rig

Greenpeace members have ended a protest of a petroleum drilling site
off the Netherlands. The action began 24 Aug. when 25 persons used vessels
and themselves to stop work aboard a rig of Nederlandse Aardolie Maatchappij,
64 kilometers/40 miles north of Amsterdam, the Netherlands. Over the weekend,
the company secured a court order for Greenpeace to stop the protest.

Israeli warship shells Lebanon

Eleven Israeli Army soldiers were killed and one is missing after a
raid in Lebanon early 5 Sept. Five members of the guerrilla groups Amal
and Hezbollah were reportedly wounded. The objective of the raid, 40 kilometers/25
miles from the Israeli "security zone" in southern Lebanon and
48 kilometers/30 miles north of the Israeli border, is unknown. Several
helicopters landed in hills off a coastal highway between Sarafand and
Adloun, and as soldiers disembarked, a firefight began with members of
Amal and Hezbollah. The soldiers, supported by aircraft, reportedly also
fired at Lebanese Army positions. They were supported by at least one Israeli
Navy warship, which shelled the area.

Bomb found near pipeline detonated

Enterprise Oil P.L.C. said 1 Sept. that it had removed and detonated
a World War II bomb found near a pipeline in the North Sea off Scotland
on 14 July.


Sun Viking sold to Star Cruise

Star Cruise Sdn. Bhd. will pay U.S.$30 million for the Sun Viking (3,202-dwt,
714-passenger ship built in 1972) of Royal Carribean International. It
will become the SuperStar Sagittarius in early January and will be homeported
at Port Klang, Malaysia. The ship will sail to Langkawi; Phuket, Thailand
and Singapore. Passengers with reservations on the ship after 4 Jan. will
get a certificate for any future Royal Carribean Internatonal cruise through
31 Dec., 1998, except for holidays. With the addition of the Sun Viking,
Star Cruise will expand its calls for other ships as well. The SuperStar
Gemini (Panamanian-registry 1,800-dwt passenger ship built in 1992) will
call at Penang, Malaysia.

Frontline buying the Sea Spirit

Frontline Ltd. has announced it will purchase the Sea Spirit (147,273-dwt,
274-meter/900-foot long single-hull tanker built in 1993 by Astilleros
Espanoles S.A. in Spain) from a company of John Fredriksen for U.S.$1 million
after independent valuations. Then named the Sea Empress, the ship ran
aground late 15 Feb., 1996, off St. Ann's Head near Milford Haven, Wales.
Ruptured cargo tanks spilled about 72 million liters/19 million gallons
of oil, or more than 65,000 tons, effecting hundreds of miles of coastline.
The ship was on charter to Dreyfus Energy and was carrying 139.7 million
liters/36.75 million gallons of North Sea light crude from Hound Point,
Scotland, to a Texaco Inc. refinery.

Samudera Shipping Line in chartering deal with Pertamina

Samudera Shipping Line has signed two long-term chartering agreements
with Pertamina. The 10-year agreements are for two 17,500-dwt petroleum
product carriers. The contracts start in 1999.

Waterfront Shipping to sell two tankers

Waterfront Shipping, formerly Tschudi & Eitzen, will sell the Sininni
(Liberian-registry 29,990-dwt product tanker built in 1992) and the Sitara
(Liberian-registry 29,900-dwt product tanker built in 1991).


At least 130 missing after collision off Nigeria

At least 130 people are missing after a tug and a passenger ferry colided
near the Nembe District of Nigeria on 1 Sept. Sixteen persons, including
the 10 crew of the ferry Olodiama, were able to swim to shore.

Collision damages two ships at Manila

Two ships collided at the entrance to the domestic terminal of the North
Harbor at Manila, the Philippines, over the weekend. Both reportedly suffered
extensive damage.

Matson Navigation containership suffers fire in Seattle

A fire began in the No. 4 cargo hold of the Manulani (U.S.-registry
23,785-gt, 27,165-dwt, 213-meter/700-foot containership built in 1970,
owned and operated by Matson Navigation Co.) while the ship was docked
at Pier 25 in Seattle at 1000 30 Aug. More than 100 firefighters from the
Seattle Fire Department, as well as U.S. Coast Guard personnel, used foam
and water to contain the fire two hours later. Carbon dioxide was used
to extinguish it late 31 Aug. One firefighter was treated for heat exhaustion.
About 50 containers were in the hold, some containing automobiles, and
salvage will be attempted. Another 16 containers on deck were damaged.
Crewmembers said the blaze may have been started by a welding torch. The
Manulani's next call was to have been Oakland, Calif.

Tank barge loading toluene has explosion, fire in Texas

On 30 Aug., the tank barge Hollywood suffered an explosion in its No.
1 cargo tank while loading toluene at Port Arthur, Texas. The barge caught
fire and was extinguished within 15 minutes by using foam. The Hollywood
was taken to another berth where flooding was brought under control.

Ship towed back to Pohang after flooding

The No. 7 Shimizu (Panamanian-registry 589-gt general cargo ship built
in 1978), carrying 387 tons of steel products, suffered flooding in its
engine room 24 Aug. after leaving Pohang, South Korea. It was towed back
and arrived 27 Aug. An inspection found a hole in the port side shell plate.

Another tanker runs aground in the Lake Maracaibo Channel

The Icaro (Panamanian-registry 54,827-gt, 101,031-dwt tanker built in
1993, owned and operated by PDV Marina S.A.) ran aground in the Lake Maracaibo
Channel, Venezuela, at 0450 1 Sept. It was refloated at 1510. During the
time it was aground on a sandbar, the ship blocked the channel to traffic.

Spanish-registry bulk carrier grounds in England

The Mendiondo (Spanish-registry 1,393-gt, 2,145-dwt motor bulk carrier
built in 1978, operated by Naviera Uralar S.A.), sailing from Safi, Morocco,
to King's Lynn, England, ran aground near the Dow Chemical Co. facility
in King's Lynn on 3 Sept. It was refloated the next day and assisted to
a dock. The ship has a noticable list.

Stena Searider towed to Harwich with engine problems

The Stena Searider (20,914-gt, 14,800-dwt motor passenger and ro/ro
ferry built in 1969, operated by Stena Line Service A.B.) had starboard
engine problems on 28 Aug. while sailing from Hook of Holland, the Netherlands,
to Harwich, England. It arrived in Harwich the next day under the tow of
two tugs.

British-registry ship loses one engine

The Hoo Beach (British-registry 794-gt, 1,400-dwt general cargo ship
built in 1989, operated by R. Lapthorn & Co. Ltd.) had problems with
its starboard engine on 2 Sept. off Bill of Portland, England. The vessel
anchored at Torbay, England, at 1400.

Gerry Roufs' yacht missing again

The 18-meter/59-foot yacht Groupe LG2 is missing again. Just after midnight
7 Jan., Roufs, 43, radioed in on schedule as he sailed the Groupe LG2 in
the Vendee Globe Challenge, a solo, around-the-world race. On 16 Jan.,
the Chilean government reported that it received a brief radio message
from Roufs but he was not heard from again. 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. On 22 Aug., Roufs'
wife, Michelle Cartier, announced that the Groupe LG2 had been found floating
480 kilometers/298 miles west of Chile. However, the yacht was not taken
in tow and it has now disappeared again. Roufs, 43, of Montreal, remains


Lutine Bell rings for Princess Diana

At Lloyd's of London on 1 Sept., the Lutine Bell was rung once in rememberance
of Princess Diana and personnel observed a moment of silence. The Princess
of Wales, her companion Emad Mohamed al-Fayed and their driver Henri Paul
were killed in Paris early 31 Aug. when their Mercedes S-280 hit a support
column in an underpass near Place de l'Alma along the Seine River. Trevor
Rees-Jones, a bodyguard for the Fayed family, survived and is hospitalized
in serious condition. Though the bell used to be rung when ships were reported
sunk, in recent times it has only rung once every year to mark Rememberance
Day on 11 Nov. The day honors British military personnel killed in action.
The last time the Lutine Bell rang to commemorate a death was 5 Sept.,
1979, when Lord Mountbatten, a cousin of Queen Elizabeth II, was killed
in an explosion that destroyed his yacht. The explosion was later traced
to a bomb planted by the Provisional Irish Republican Army.

U.S. Coast Guard tender transferred to Estonia

The U.S. Coast Guard's Balsam-class Seagoing Buoy Tender Bittersweet
(WLB 389), which was decommissioned 18 Aug., was transferred to Estonia
during a ceremony 1300 5 Sept. at Woods Hole, Mass. Renamed the Valvas,
the ship will sail Estonian territorial waters undertaking border patrol,
law enforcement, search and rescue and icebreaking. The Estonian crew has
been undergoing training and familiarlization since the ship was decommissioned.