- Transport on Line - hiltunen.htm

BUSINESS

Ten killed in 176 acts of piracy in 1996

Last year, 176 incidents of piracy were reported worldwide, with Indonesian
territorial waters accounting for the most attacks. In 1995, there were
170 cases and in 1994, 90 incidents. The International Maritime Bureau's
Piracy Center announced 28 Jan. that 53 cases were reported around Indonesia
in 1996, compared to 33 in 1995 and 22 in 1994. Thailand was next at 13,
compared to four in 1995. Brazil was third with 10 cases compared to 17
in 1995 and 7 in 1994. Ten people were killed in attacks in 1996, with
18 dead in 1995 and none in 1994. On 26 Feb., four armed pirates in two
boats attacked the MN-3 Normina, a fishing vessel, off the Basilan Islands
in the Philippines. Nine crewmembers were killed and one escaped. The other
death was during an attack on a yacht in Greece.

World tanker report

Tanker tonnage worldwide increased 3.5 million deadweight tons last
year to 269.9 million deadweight tons, according to Stockholm Chartering
A/S. Some 104 new tankers of 11 million deadweight tons were built, while
E.A. Gibson Shipbrokers estimates that 75 of 8.1 million deadweight tons
were scrapped. In 1995, 100 tankers of 12.3 million deadweight tons were
broken up. The number of tankers over 200,000 deadweight tons account for
14 from 40 in 1994 and 31 in 1995.

T.S.A. drops plan to withold capacity

The Transpacific Stabilization Agreement has notified the U.S. Federal
Maritime Commission that it will drop its plan to collectively withold
capacity on liner services between Asia and the United States. T.S.A. had
managed capacity until 1995, when the commission began an investigation.
On 9 Oct., T.S.A. asked to resume capacity management.

Giat Industries in U.A.E. shipping venture

Giat Industries announced 27 Jan. that it was entering into a shipping
venture as part of its obligation to offset a U.S.$3.62 billion tank deal
with the United Arab Emirates Army. The UAE Offsets Group and Giat announced
that Combined Cargo UAE is being incorporated to own and operate vessels
and broker cargo and vessels with an initial capital of U.S.$15 million.
The firm, which is already operational, is 25 percent owned by Giat, Torvald
Klaveness and Co. A/S has 24 percent, Abu Dhabi Investment Company has
25 percent, Oman and Emirates Investment Holding Co. has 15 percent and
United Technical Services has 11 percent. Combined Cargo UAE ships will
be registered in Norway, and the first two vessels are 48,000-dwt tankers.
ANZ Banking Group handled a loan of U.S. $27 million for the purchase,
estimated at U.S.$40 million. This is the sixth offset venture Giat has
entered into since winning an order in 1993 for 388 Tropicalized Leclerc
main battle tanks, two Leclerc driver training tanks and 46 Leclerc DNG
armored recovery vehicles for U.S.$3.8 billion. Giat has until 2003 to
meet the offset requirements and has fulfilled 40 percent. Under U.A.E.
law, defense firms winning contracts worth more than U.S.$10 million are
required to invest in profitable joint ventures with U.A.E. businesses
to earn up to 60 percent of the contract's value over a period of seven
years.

Maruha Kaiun leaving shipping industry

Maruha Corp. announced 28 Jan. it is leaving the shipping industry at
the end of March. Its wholly owned shipping subsidiary in Tokyo, Maruha
Kaiun, which has been losing money, will be dissolved. The firm's annual
sales came from chartering vessels to the parent company or carrying a
few other cargoes. Maruha expects a loss of 4.1 billion yen in fiscal year
1996 ending in March. Some assets will be sold.

Unitor selling subsidiaries

Unitor A/S, the Norwegian marine equipment manufacturer, has announced
plans to restructure by selling non-core subsidiaries. These include Coldstore
Contracting, which has a U.S.$61 million turnover and is a sixth of Unitor
sales. Unitor has recently suffered business losses.

Stinnes sells Danube services

Stinnes Reederei A.G. has sold its inland shipping services on the Danube
River to Transporte Meier. These include the Danube routes of Bayerischer
Lloyd and DDSG. As part of the deal, vessels totaling 190,000-dwt are included.

Thailand to join MARPOL, expands territorial waters

Thailand has announced it will join the Convention for Prevention of
Pollution from Ships (MARPOL). Also, Thailand has increased its territorial
waters, from 19 kilometers/12 miles to 38 kilometers/24 miles. Thailand
is concerned with the illegal smuggling of fuel and tankers carrying more
than one million liters/260,000 gallons gallons must remain outside territorial
waters. To combat continued smuggling by small vessels, the zone was expanded.

P. & O. Nedlloyd joins two conferences

P. & O. Nedlloyd Container Line Ltd. has joined the Europe - Australia
and Europe - New Zealand conferences. However, the line is presently charging
lower than conference rates. P. & O. Nedlloyd Ltd. and P. & O.
Nedlloyd B.V. have been formed as members of the conferences, but they
are treated as one.

Holt's offer for A.C.L. expires

Thomas J. Holt's offer of U.S.$130 million to buy Atlantic Container
Line expired at 1800 Eastern Standard Time 21 Jan. However, A.C.L. still
plans to hold a meeting in February to discuss the offer, which is five
percent above the firm's market value.

Legal action against Hapag-Lloyd

The employee representatives of Hapag-Lloyd A.G. have begun legal action
against the firm after its container shipping division was set-up as a
separate company, Hapag-Lloyd Container Linie. The works council says it
was not completely informed and should have been consulted because of possible
job losses.

China works to limit pollution to the Yangtze

The Yangtse River Bureau of Shipping Administration and Harbor Superintendency
has reportedly asked 50 vessel facilities, including shipyards, shiprepairers
and shipbreakers, to start anti-pollution security deposit regulations
and start using pollution treatment equipment. Ships on the Yangtze will
also be brought into the program.

Hamburg port manager takes stake in Argentine terminal operator

Hamburguer Hafen und Largerhaus Aktiengesellschaft, the firm that manages
the Port of Hamburg, Germany, is taking a stake in Exolgan. Exolgan started
operating a container terminal at Dock Sud, Buenos Aires, Argentina, in
March 1995.

I.D.B. reviewing Argentine request

The Interamerican Development Bank is currently reviewing a request
from Argentina for a U.S.$104 million loan which would fund half of a planned
country-wide port modernization project. Improvements will decrease the
times ships spend waiting for berths as well as the time loading and unloading
cargo. Safety and environmental issues will also be addressed.

Kinsman Lines fined U.S.$246,000 in heart attack case

A jury in Douglas County, Wis., has awarded U.S.$246,000 to the estate
of a Maple, Wis., man who died while a crewmember aboard the Kinsman Enterprise
(U.S.-registry 9,439-gt, 7,457-nt, 192-meter/631-foot bulk carrier built
in 1927, owned and operated by Kinsman Lines Inc.). Oiler John D. Becker,
50, suffered a heart attack and died 30 Oct., 1994, while the vessel was
crossing Lake Erie to Buffalo, N.Y. On 24 Jan., jurors found that Kinsman
Lines was negligent in failing to provide prompt medical treatment and
failed to educate its employees in heart attack symptoms. The jury had
returned a U.S.$492,000 verdict for negligence but it was cut when Becker
was found at fault because he did not insist on being aided.

California may exempt bunker fuel from sales taxes permanently

Legislation has been introduced in the California Assembly to indefinitely
extend a law exempting bunker fuel from the state 8.25 percent sales tax.
The extension was requested by the Pacific Merchant Shipping Association.
The current exemption, which lasts until 1998, was reimposed in 1991 after
a 66 percent decline in fuel sales.

Stuewe & Co. opens ship sales and purchase department

Stuewe & Co. Schiffahrts G.m.b.H., a broker specializing in container,
ro/ro and liner vessels, will start a dedicated ship sales and purchase
department on 1 Feb. Horst Doege will be assisted by Henning Prager in
running the department. The department will deal in several types of ships.

Peninsular Petroleum adopts Bimco Fuelcon

Peninsular Petroleum has announced it is the first such firm to adopt
the Bimco Fuelcon purchasing contract for all its sales.

Three firms leave I.A.S.M.

Now that the International Association of Ship Managers has eliminated
its associate membership and announced a restructuring, three firms have
left the group. They include the Norwegian subsidiary of V Ships.

Hamburg Sud changes in Chile and Peru

Hamburg Sud has reorganized its subsidiaries in Chile and Peru, which
were known as Pacific Steam Navigation Co. Chile and Pacific Steam Navigation
Co. Peru. Marketing, sales and logistics functions are now named Hamburg
Sud Columbus Line Chile and Hamburg Sud Columbus Line Peru.

SERVICES

Wilhelmsen upgrading Africa-Australia-United States service

Wilhelmsen Lines has announced it is upgrading its service between western
and south Africa, Australia and the United States. Three dedicated ro/ros
will begin the revamped service the first week of March with a pendulum
service every 30 days. Calls will be at Savannah, Ga.; Norfolk, Va.; New
York; Abidjan, Cote d'Ivoire; Tema, Ghana; Takoradi, Ghana; Cotonou, Benin;
Durban, South Africa; and the Australian ports of Fremantle and Melbourne.
The new service is replacing an expiring slot-charter agreement with Lykes
Bros. Steamship Co. Inc. and Safbank.

UB Shipping joins J.M.A.

UB Shipping Liner Services Ltd. has joined the Joint Mediterranean Agreement
consisting of DNOL, DSR-Senator Lines, Ellerman and KNSM. Two separate
weekly services will be started between the eastern Mediterranean and Europe
next month. Both will call at Felixstowe, England; Hamburg, Germany; Rotterdam,
the Netherlands; and Antwerp, Belgium. The southern service will then call
Tunis, Tunisia; Alexandria, Egypt; Port Said, Egypt; Beirut, Lebanon; Tartous,
Syria; Mersin, Turkey; Izmir, Turkey; and Salerno, Italy. Four ships with
a capacity of 1,600 TEUs will be used. The northern service will call at
Piraeus, Greece; Istanbul, Turkey; Thessaloniki, Greece; Izmir; and Salerno.
Four ships of 1,200-TEU capacity will be used.

Portlink adds service calling at Southampton

Portlink has added a call at Southampton Container Terminals Ltd. on
a weekly, fixed-day cross-Channel service. The Aquitaine Spirit, a 374-TEU
capacity ship, will carry bananas from Le Havre, France, to Southampton,
England. The bananas are transshipped at Le Havre from French islands in
the Carribean. Other calls on the service are at Bordeaux and Montoir,
France, and Felixstowe, England.

Unicorn Lines adds new South African service

Unicorn Lines (Pty.) Ltd. will begin a new weekly container service
between the South African ports of Durban and Richards Bay in early February.
Two 312-TEU capacity containerships, in the Unifeeder service between Durban
and Beira, Mozambique, will make the calls. The ships can also carry breakbulk
and project cargoes.

Service for Swedish timber starting

Coldock Lines will begin a new service early next month carrying Swedish
package timber products from Halmstad, Sweden, to King's Lynn, England.
The monthly service will carry up to 2,000 cubic meters/2,600 cubic yards
of cargo.

Passenger service to start on Lake Ontario

Shaker Cruise Lines plans to start regular passenger service across
Lake Ontario. Calls will be at Toronto, Ontario, Canada; Port Dalhousie
in St. Catharines, Ontario; and Rochester, N.Y. The Marine Courier (144-passenger
capacity vessel built in 1986), formerly a Marine Atlantic Inc. vessel,
has been acquired and is being refitted. The ship will become the Constellation,
and will have an increased passenger capacity. As many as three roundtrips
will be made daily between Toronto and Port Dalhousie. The service will
start in March or April.

Chinese route opens

The first shipping route from the Yangtze River to Jiangxi Province,
China, has opened. The containership Hongning (1,800-tons, 62-TEU capacity)
of Jianghai Ocean Shipping Co. recently made the first voyage.

Australia Asia Express details

Australia Asia Express has replaced ANRO as a container service operating
in Australia and Southeast Asia. The service involves Australia National
Line Ltd., Neptune Orient Lines Ltd., Nippon Yusen Kaisha, P. & O.
Nedlloyd Container Line Ltd. and PT Djakarta Lloyd. Ships will make a 35-day
round-trip calling at the Australian ports of Sydney, Melbourne, Adelaide
and Fremantle; Singapore; and Port Klang, Malaysia. Brisbane and Hobart
in Australia will be called every two weeks. Vessels in the service include
the ANL Enterprise, the Byron Bay, the NOL Amber (Singaporean-registry
39,101-dwt containership built in 1980, operated by Neptune Shipmanagement
Services (Pte.) Ltd. and owned by Neptune Orient Lines), the NOL Crystal
(Singaporean-registry) and the NYK Providence (Liberian-registry).

Condor announces ferry changes

Condor Ltd. has announced its new Condor Express, a 50-knot fast ferry
built by INCAT Australia, will operate between Poole, England, and the
Channel Islands beginning 1 March. The ferry can carry 800 passengers and
200 vehicles and will replace the Condor 12 (310-dwt passenger vessel built
in 1996, operated by Condor) operating from Weymouth, England. The voyage
to Guernsey will take two hours 30 minutes.

Washington may suspend ferry service to Canada

Washingston State Ferries has recommended to the state transportation
committee that it discontinue service from Anacortes, Wash., to Sydney,
British Columbia. Two ferries, the Elwha (U.S.-registry 1,214-dwt, built
in 1968) and the Evergreen State (U.S.-registry), currently serve the rotue
but do not comply with Safety of Life at Sea (SOLAS) regulations that take
effect 1 Oct. Upgrading the ferries would cost U.S.$3.3 million. The service
returns less than 75 percent of its cost.

PORTS AND TERMINALS

Largest Chinese grain wharf to be built

Plans for the largest grain wharf in China have been announced. The
Chinese Ministry of Domestic Trade will oversee construction at a location
opposite Dalian Harbor, about 80 kilometers/50 miles away. It will cost
U.S.$12.6 million and will be funded by a loan from the World Bank. The
facility will include a 350.5-meter/1,150-foot wharf for ships up to 80,000-dwt
and a 280-meter/920-foot pier for ships between 10,000-dwt and 30,000-dwt.

First specialized fruit terminal in Greece to be built

An agreement has been reached to build Greece's first specialized fruit
terminal. Under the seal between Fruita Terminal and the Thessaloniki Port
Authority, the terminal will lease space in the port's free zone, where
duties are not paid. There will be two piers with versel berthing facilities
and a cold storage facility of 4,000 square meters/4,800 square yards.
The initial investment will be U.S.$4 million. Construction will begin
by the end of March for completion by mid-year. Discussions have been held
on the project for two years.

Terminal to be built at Port Canaveral

Port Canaveral, Fla., has announced plans to build a container terminal.
It would be in operation by April 1998.

Darsena Toscano in limbo

An Italian regional court on 24 Jan. deffered a final settlement in
the Darsena Toscana terminal case. Darsena Toscana is the main terminal
at Livorno, Italy, and was put up for privatization. The concession for
the terminal was awarded to Terminal Darsena Toscana SrL, a venture of
CLIP, Sinport Fiat and Sinterman. However, local operator Scotto and C
S.p.A. protested and will temporarily be allowed to continue operating.

Improvements at Malaysian Prai Bulk Cargo Terminal set

By midyear, two new projects at Malaysian Prai Bulk Cargo Terminal will
be completed. Malaysian $18 million is being spent to build a second access
bridge and a third berth for dangerous cargoes will cost M$44 million.
The current bridge can only handle 18,000 tons. Ships that currenly wait
up to 61 hours for a berth will now wait only half that at most.

Far Eastern Silo and Shipping to build grain terminal in Taiwan

Far Eastern Silo and Shipping Corp. has announced plans to build a large
grain terminal near Taichung, Taiwan. Eight U.S. firms may be involved.
Three large silos will be built at a pier leased in Taichung, which will
increase grain capacity from nine million tons to 15 million tons. It will
likely be used to transship grain from the United States to vessels for
delivery to local areas, China and Southeast Asia.

Strike at Buenaventura ends

The strike by 3,000 workers at the Port of Buenaventura, Colombia, ended
24 Jan. when unions and port management agreed to new wages. The strike
began late 14 Jan. when dockworkers called for higher wages, health benefits
and changes in the contract scheme.

Port Everglades gets money for new drawbridge

Port Everglades, Fla., has received U.S.$48 million for a new drawbridge
that will halve the number of bridge openings on weekdays. The Florida
Department of Transportation will complete plans by the end of the year
with the bridge in service by 2000. It will be 9 meters/30 feet taller
than the current bridge, allowing 85 percent of the ships currently requiring
and opening to pass. The new drawbridge will have an overall length of
613.9 meters/ 2,014 feet with a 70-meter/230-foot span. Also, the channel
will be widened from 30 meters/100 feet to 38 meters/125 feet.

Amsterdam to receive aid for projects, build new warehouse

The Port of Amsterdam, the Netherlands, and the Dutch Ministry of Transport
and Public Works have agreed on a financial aid plan for changes to the
Australiahaven area. The ministry will provide U.S.$7.5 million to lengthen
docks and build new quay walls, among other projects. Also, a new 16,000
square meter/19,000 square yard warehouse will be built in Suezhaven for
transferring cocoa. It will be used by Ter Haak Stevedores B.V.

NVUM leaves Ipswich for Harwich

NVUM Shipping Line is moving its Carribean to United Kingdom service
from Ipswich, England, to Harwich, England.

Strike and confrontation at Los Angeles scrap terminal

A standoff developed recently at the Hugo Neu - Proler Co. scrap metal
terminal in Los Angeles. The firm decided not to pay dockworkers who signed
up for work each day but then did not actually perform any work. In some
instances, four groups would sign-in but one would work. Dockworkers of
the International Longshoremen's and Warehousemen's Union then struck and
picketed. On 17 Jan., the president of the terminal, Jeffrey P. Neu, sprayed
striking dockworkers with water that one longshoreman said smelled like
sewer water. Port police briefly detained Neu on possible assault charges
but he was released. Hugo Neu - Proler has said the striking workers blocked
the terminal, dented a car and broke the headlights of another and spat
on an office worker when she arrived for work.

CODESP cuts costs at Santos

Companhia Docas do Estado de Sao Paulo, the operator of the Port of
Santos, Brazil, has reduced the cost of using its equipment at the Tecon
container terminal by about 69 percent. Operators will be required to pay
for maintenance costs, however.

More on Hessenatie's control of Zeebrugge terminal

Hessenatie has taken control of the Ocean Container Terminal at Zeebrugge,
Belgium, and also now has a 50 percent stake in Sea-Ro. Hessenatie will
set up a joint venture with the Belgian railways subsidiary Ferry-Boats
to operate the terminal. It has also purchased Ferry-Boats' 25% stake in
Sea-Ro to add to the 25 percent bought from Cobelfret last year.

Customs for Shenzhen to Hong Kong cargo simplified

Yantian International Container Terminal Co. Ltd. signed a memorandum
on 28 Jan. with Hong Kong's Kowloon Customs office. Under the agreement,
customs procedures will be simplified for cargo moving between the Special
Economic Zone at Shenzhen and Hong Kong.

M.S.C. first to call at Freeport Container Port

The Merchant Patriot (Hong Kong-registry 21,310-dwt dry cargo ship built
in 1980, operated by Cenargo Ltd. and owned by Mediterranean Shipping Co.)
made the first ever vessel call at Freeport Container Port in the Bahamas
on 23 Jan. The facility officially opens at the end of February, but the
Merchant Patriot used its own cranes to unload 103 containers for transshipment
to South America. The U.S.$80 million port is a joint venture of Hutchison
Port Holdings and Grand Bahamas Port Authority. Of 42 employees hired so
far, 26 are being trained at the Port of Felixstowe, England, another Hutchison
facility.

Gottwald delivers 500th mobile crane

Mannemann Demag Fodertechnik A.G. Gottwald has delivered two mobile
harbor cranes to Segoro Fajar Satryo at Tanjung Priok, Indonesia. The order
includes the 500th mobile crane the company has delivered. The cranes are
both HMK 260 Es.

SHIPYARDS

Maltese government to take control of Malta Drydocks

The Maltese government announced 24 Jan. it will take direct control
of Malta Drydocks, which has lost U.S.$189 million. The council which runs
the state-owned shipyard will be reconstituted, with four members being
directly elected by employees and four members and the chairman being appointed
by the government. Since 1975, the council has consisted of employees directly
elected by the 3,500 personnel.

Bollinger buys McDermott shipyard

McDermott International Inc. announced 27 Jan. that its McDermott Shipbuilding
Inc. subsidiary will sell its shipyard near Amelia, La., to Bollinger Machine
Shop and Shipyard Inc. The deal, which is expected to be closed by the
end of February, includes all work on order as well, including a three-year
contract for river hopper barges currently being built. It does not include
the yard operated by McDermott International's J. Ray McDermott subsidiary
near Amelia. Bollinger plans to hire most of the McDermott employees.

Kvaerner Gibraltar management, workers in dispute

Kvaerner Gibraltar Ltd. is in a dispute with the Gibraltar Transport
and General Workers Union over wages for this year. The union rejected
a wage offer last week and demonstrated outside the shipyard. The union
made a counter-proposal on 27 Jan. The wage dispute comes after the shipyard
broke even last year after up to U.S.$5 million in losses since Kvaerner
took over in 1992.

One-day strike at Turku New Shipyard

About 1,500 employees of Kvaerner Masa-Yards Inc.'s Turku New Shipyard
staged a one-day strike on 24 Jan. The employees protested the use of subcontractors
at the shipyard.

Alpha Diesel expanding

MAN B&W's Alpha Diesel complex at Frederiskshavn, Denmark, is being
expanded to build low-speed diesel engines. The area will have a 740 square
meter/888 square yard assembly area and a 625 square meter/750 square yard
test area. Ceiling height will be 18 meters/59 feet. The facility will
build and test engines for ships up to Panamax size. Models that will be
built include S42MC, S46MC, S50MC and S50MC-C, all medium-range, two-stroke
low-speed engines. The new addition should be completed by 1 June.

A.P. Moller orders three containerships

A.P. Moller announced 29 Jan. it is ordering three containerships with
capacities of more than 6,000 TEUs. They will likely be the same design
as 12 such ships now on order, and will be built at Odense Steel Shipyard
Ltd.

Statoil orders three tankers from AESA

Den Norske Stats Oljeselskap A/S announced 27 Jan. it has ordered three
tankers from Astilleros Espanoles S.A. for U.S.$260 million. The 125,000-dwt
ships will be able to carry 850,000 barrels of oil. Two will be delivered
in fall 1998 with the third in early 1999. The vessels will be deployed
around the Haltenbank area of Norway. They will be double-hulled and have
two main engines, two propellers, two rudders and several side thrusters.
This is the first order Astilleros Espanoles has received since spring
1996.

Carnival orders third Destiny-class ship

Carnival Corp. announced 30 Jan. it has ordered a third Destiny-class
passenger ship from Fincantieri - Cantieri Navali Italiani S.p.A. for U.S.$430
million. The lead ship, the Carnival Destiny, is the largest passenger
ship currently afloat at 101,353-gt and 8,600-dwt. The second, Carnival
Triumph, will be delivered in 1999. The third will be completed in mid-2000.

Canada Maritime orders containerships

Canada Maritime has ordered two 2,650-TEU capacity containerships from
Daewoo Heavy Industries Ltd. They will replace ships on the Northern Service,
a coordinated container service to the St. Lawrence River with Orient Overseas
Container Line. O.O.C.L. is also replacing its ship on the route with a
newbuilding. All three should be delivered by the end of 1998. Canada Maritime's
two new ships will be fully ice-strengthened, winterized and classed as
Lloyd's Ice Class 1A.

Imabari receives order for two ships from "K" Line

Kawasaki Kisen Kaisha has ordered two 3,000-TEU containerships from
Imabari Zosen K.K. When delivered in 1998, they will be used in trans-Pacific
services.

Mitsui O.S.K. orders two car carriers

Mitsui O.S.K. Lines has ordered two vehicles carriers. A 3,200 vehicle
vessel will be built in Tokyo by Shin Kurushima Dockyard, while Minaminippon
Shipbuilding Co. Ltd. at Kyushu, Japan, will build a 4,800 vehicle ship.
The former will be owned by Mitsui O.S.K., the latter by the line and Nissan
Motor Car Carriers Co. Ltd.

Mobil buys the first Double Eagle building at Newport News

Mobil Corp. will purchase the first Double Eagle product tanker being
built by Newport News Shipbuilding. The 45,500-dwt, double-hull ship is
the first built in the United States that meets the requirements of the
U.S. Oil Pollution Act of 1990. The ship was the first of four ordered
by Eletson Corp. Currently named Despotico, it will be operated by Mobil
Shipping and Transportation Co. and will carry refined petroleum products
to Florida.

NCL Holding buys the Costa Olympia

NCL Holding, the parent of Norwegian Cruise Line, has signed a letter
of intent with the administrator of bankrupt Bremer Vulkan Verbund A.G.
to buy the unfinished Costa Olympia for U.S.$30 million. All steel work
on the 78,000-gt passenger ship is complete except for the top deck. Work
to complete the 2,000-passenger ship, at an as yet unspecified shipyard,
will take 15 months.

Smedvig and Statoil in agreement on drilling, tanker to be converted

Smedvig and Den Norske Stats Oljeselskap A/S have signed a letter of
intent for a long-term drilling and petroleum well completion contract.
The contract, to be approved by license contractors, would last five, eight
or 10 years, with the five-year contract worth U.S.$300 million. As part
of the deal, one of two 105,000-dwt tankers building at Samsung Shipbuilding
and Heavy Industries Co. Ltd. will be converted to a drilling ship. Statoil
Shipping and Maritime Technology would outfit and operate the ship. The
work required will cost U.S.$240 million to U.S.$250 million.

Saraji Trader delivered

Green Ocean Bulk Shipping, the joint venture of BHP and Kawasaki Kisen
Kaisha, has taken delivery of the Saraji Trader, a 169,900-dwt bulk carrier,
from Daewoo Heavy Industries Ltd. The ship was built at the Okpo Shipyard
on Koje Island, South Korea, and will arrive at Hau Point, Queensland,
Australia, on her maiden voyage on 6 Feb. The ship will load its first
cargo there. Saraji Trader will primarily carry coal and iron ore from
the Australian ports of Gladstone, Hay Point and Port Hedland to Europe,
Japan and South America. The ship is 289 meters/948 feet long and has a
beam of 45 meters/148 feet. The vessel is classed by Det Norske Veritas
and is registered in Liberia. The crew consists of Filipino citizens. The
ship takes its name from the Saraji mine in Bowen Basin, Queensland, where
coking coal has been mined since 1974. It is managed by BHP for Central
Queensland Coal Associates.

German shipyard delivers containership

Mutzelfeldtwerft G.m.b.H. has delivered the Stadt Cuxhaven (5,250-dwt,
600-TEU capacity containership) to Thien & Heyenga G.m.b.H. The ship,
the hull of which was built in Romania, will be chartered to Ivarans Rederi
A/S for feeder services in Central America.

Lady Alma delivered

The Lady Alma, a U.S.$4.2 million tractor tug, has entered service for
Howard Smith on the Humber River in the United Kingdom. It is the last
of five ordered and has Voith Schneider Type 32 cycloidal propeller units.
The tug has two, six-cylinder Ruston RK270 engines at 4,126 kilowatts/5,600
brake horsepower for 12.8 knots asterna and 13.3 knots ahead. The tug has
a bollard pull of 59 tons and a Aquamaster Rauma medium-pressure winch
with a 40-ton pull and 125-ton brake load. There is a 75-ton Mampaey quick
release tow hook. Other equipment includes two Worthington fire pumps driven
via a Kumera speed-increasing gearbox; two Svenska Skum electric, remote-controlled
monitors for 20 tons per minute; and a Furuno X-band radar. She is classed
by Lloyd's Register as FiFi I.

Happy River launched

The Happy River, a 15,700-dwt dry cargo ship, has been launched by Merwede
Shipyard for Mammoet Shipping B.V. The ship's keel was laid in June and
the ship will enter service at the end of March. The Happy River is the
first of four multipurpose, heavy-lift ships. There are two 400-ton mast
cranes on the starboard side. The superstructure has seven decks and the
ship has a crew of 24.

SOBRENA to repair the Bona Fulmar

Societe Bretonne de Reparation Navale at Brest, France, will repair
the Bona Fulmar (Bahamian-registry 45,773-gt, 78,585-dwt ore/bulk/oil carrier
built in 1983, owned and operated by Bona Shipping A/S). The ship collided
18 Jan. with the Teoatl (Mexican-registry 21,706-dwt tanker built in 1987,
operated by Companhia Naviera Minera del Gulfo S.A.) at 51 degrees 23.8
minutes north, 02 degrees 06.6 minutes east, 29 kilometers/18 miles northwest
of Dunkirk, France. The Bona Fulmar was carrying 58,447 tons of unleaded
gasoline and sustained a hole 3.0 meters/10 feet by 4.0 meters/13 feet
in her port side No. 5 cargo tank. An estimated 9,500 cubic meters/12,400
cubic yards of gasoline or 7,000 tons spilled into the North Sea. Bona
Fulmar, chartered to George E. Warren and sailing from Belgian Petrofina
S.A.'s refinery in Antwerp, Belgium, to New York, went to Rotterdam, the
Netherlands, to unload the cargo before sailing to Brest. Repairs will
require 60 tons of steel for the tank and 21 tons on the boat deck. It
will take two to three weeks.

Myanmar Shipyards delivers vessel to Singapore firm

The Forceful Performer, built by Myanmar Shipyards, was delivered to
Casey Marine Pte. Ltd. of Singapore on 28 Jan. The 29-meter/95-foot long
vessel has a draft of 3.41 meters/11.2 feet and has two engines. The Forceful
Performer was reportedly built to American Bureau of Shipping standards
at a cost of Singapore$2.5 million.

Emerald arrives in Greece

The Emerald, a 500-cabin passenger ship formerly named Regent Rainbow,
has arrived at Piraeus, Greece, for a two-month refurbishment. Now owned
by Louis Cruise Lines, it has been chartered to Thomson for cruises. The
ship will sail from Majorca, Spain, alternating each week between two routes
in the western Mediterranean.

OPERATIONS

Tourist aboard cruise ship falls into empty pool

Brian Miller, 27, died 24 Jan. when he fell or dived into an empty swimming
pool aboard the Island Breeze (16,604-dwt passenger ship built in 1961,
operated by Carnival Corp.) about 0400. The ship was about 96 kilometers/60
miles south of Ponce, Puerto Rico. Miller was a tourist from the Kansas
City area.

4.3 tons of cannabis seized in Singapore

The Singapore Central Narcotics Bureau seized 4.3 tons of cannabis worth
U.S.$21 million on 26 Jan. Thought to be destined for Europe, it was discovered
in packing cases in a container aboard the Mint Zoom (2,700-dwt dry cargo
ship built in 1991, operated by Pyrsos Managing Co.) by dogs. The ship,
reportedly carrying containers of clothes and fabric from Cambodia to Vietnam,
was considered by Singapore to be sailing an unusual route.

London area search and rescue agreements

The Port of London Authority, the Metropolian Police Thames Division
and the British Coast Guard have agreed on two sets of guidelines for search
and rescue. In the upper river within the London metropolitan area, the
guidelines cover the operations of the port's navigation facility in Woolwich
and harbor patrols. It also includes the police marine unit and operations
facility at Wapping. The activities of the Coast Guard's base at Walton-on-the-Naze,
the port's navigational center at Gravesend and the harbor patrol service
in the lower reaches and estuary are in the second agreement.

Houston Ship Channel closed

The Houston Ship Channel was closed at 1945 26 Jan. due to heavy fog.
Twenty-one outbound and 14 inbound ships were delayed.

U.S. Coast Guard aids injured tug crewmember

A U.S. Coast Guard 12-meter/41-foot utility boat from Coast Guard Station
Point Allerton, Mass., transpored an injured tug crewmember to Boston the
morning of 31 Jan. At 0445, the Allan Bouchard reported the crewmember
was bleeding and unconscious after being hit on the back of the head by
a steel tow cable in Boston harbor. Mel Marcel, 32, received a laceration.
The boat arrived at 0505 and took Marcel to Massachusetts General Hospital.

Illinois River section closed

The U.S. Coast Guard closed the Illinois River between miles 198 and
201 near Hennepin, Ill., last week to locate a barge that reportedly sank.

Special police force formed in La Guaira

A special police force of 35 personnel has been formed in La Guaira,
Venezuela. The announcement comes after three cruise lines announced they
would drop the port from their schedules due to the increase of crimes
committed against cruise ship passengers there. The 35 will patrol near
the port and on beaches near popular hotels.

Cocaine found aboard vessel off Mexico

A U.S. Coast Guard Law Enforcement Detachment aboard the U.S. Navy Oliver
Hazard Perry-class Guided-Missile Frigate U.S.S. John A. Moore (FFG 19)
boarded the 24-meter/80-foot fishing vessel Viva Sinaloa (Mexican-registry)
off Mexico on 18 Jan. Isolated new hull work was found and the equipment
and status of the vessel did not seem to correspond with the master's claim
of being on a fishing trip. On 19 Jan., the master revoked consent for
a boarding until a Mexican Navy vessel arrived. Later that day, the Mexican
Navy Leandro Valle-class Patrol Ship Jesus G. Ortega (G-15) arrived and
conducted its own boarding. Twenty-four packages of cocaine totaling 768
kilograms/1,690 pounds were found in an empty fuel tank. The Jesus G. Ortega
arrested the crew and escorted the vessel to Manzanillo, Colima, Mexico.

Egypt impounds ship that failed to pay for fuel

The Oriental Iris (Panmanian-registry 9,035-dwt tanker built in 1992,
operated by New Shipping Kaisha Ltd.) has been arrested at Port Suez, Egypt,
because it did not pay a U.S.$35,000 fuel bill. The ship, sailing to Bandar
Khomeini, Iran, from Tunisia, was impounded 25 Jan. while sailing through
the Suez Canal. The Oriental Iris, which has 8,296 tons of phosphoric acid
aboard, did not pay for fuel it took on during a previous trip.

Saraband detained at Chittagong

The Saraband (Cypriot-registry 132,478-dwt, 276.46 meter/907.02 foot
long tanker built in 1977, operated by Vancouver Shipmanagement Ltd.) has
been detained at Chittagong, Bangladesh, after Bangladesh Petroleum Corp.
sought compensation worth U.S.$2.7 million for the ship's late arrival.
The admiralty branch of the Bangladesh High Court has attached the tanker,
which arrived from the United Arab Emirates carrying 153,000 tons of crude
oil. The ship arrived 11 days behind schedule after an engine room fire
that killed a crewmember.

U.A.E. says Iran violated territorial waters

The United Arab Emirates on 28 Jan. said Iran of violated its territorial
waters when an Islamic Republic of Iran Navy vessel entered the area to
tow a barge. Iran said that the barge, carrying vehicles, cement and other
building materials, was in distress and required a tow on 19 Jan.

SHIP TRANSFERS

Indian aircraft carrier to be scrapped

On 31 Jan., the Indian Navy decommissioned the aircraft carrier I.N.S.
Vikrant (R 11) at Bombay, India. The ship will be scrapped. I.N.S. Vikrant
was laid down as the Hercules at Vickers-Armstrong in Barrow-in-Furness,
Scotland, on 14 Oct., 1943, and was launched 22 Sept., 1945. A Royal Navy
Glory-class aircraft carrier, the ship was bought incomplete in January
1957 and entered service with the Indian Navy on 4 March, 1961. Between
1979 and 1989, the ship spent 96 months in shipyards but continued to have
propulsion problems with four Admiralty boilers, two sets of Parsons geared
steam turbines and two propellers for 40,000 brake horsepower and 17 knots
cruising or 24 knots maximum. As a result, Sea Harrier FRS 51 aircraft
operating from the ship were restricted to light weapons loads. The I.N.S.
Vikrant had an extensive refit from 1979 to 3 Jan., 1982, that included
new propulsion, a new combat information center, guns and new radars. Another
refit from December 1982 to February 1983 prepared the ship for Sea Harriers
but a ski-jump ramp was not added until 15 Feb., 1989. Trials led to further
modifications in 1991.

Moby Lines buys two ferries

Moby Lines has reportedly bought two ferries and after refurbishment,
will be deployed for Italian services. They include the Teistin (4,269-gt,
625-dwt, two engines, built in 1969 at Aalborg Vaerf), which can carry
800 passengers and 120 vehicles. It will be renamed the Moby Ale. Strandfaraskip
Landsins sold the vessel, which has 20 cabins.

Red Funnel Ferries sells last Castle-class ferry

Jadrolinija Cruises Ltd. has purchased the third and final Castle-class
ferry from Red Funnel Ferries. The Netley Castle (300-dwt, built in 1974)
will be operated as the Sis between the Croatian ports of Brostova and
Porozina. The Netley Castle was laid up in April and will be undergo minor
refurbishment. The other two in the class, the Cowes Castle and the Norris
Castle, were sold in 1994 to Jadrolinija.

Norse Irish Ferries charters two ferries under construction

Norse Irish Ferries Ltd. has reportedly signed a long-term charter for
two ferries under construction at Visentini Shipyard. Scheduled to be delivered
in July and September, thwy will be deployed between Belfast, Northern
Ireland, and Liverpool, England. Valued at U.S.$71 million, they are owned
by Levantina Trasporti and Visentini Francesco Trasporti. The ferries are
registered in Italy, are capable of 22 knots and can carry 500 passengers
and 100 vehicles.

Leader LT sold

The Leader LT (40,490-dwt oil tanker built in 1982, owned and operated
by Blue Flag Navigation Co.) was auctioned off recently in Rotterdam, the
Netherlands, for U.S.$13.2 million. Wybenga van den Puttenllar auctioned
the ship on behalf of the Filipino crew and creditors. The crew is owed
U.S.$150,000 to U.S.$160,000.

U.S.M.S.C. charters the Green Ridge

The U.S. Military Sealift Command has awarded Central Gulf Lines Inc.
U.S.$31.7 million for the timecharter of the Green Ridge (U.S.-registry
5,805-gt, 9,549-dwt, 154.57-meter/507.12-foot general cargo ship built
in Germany in 1979), which can carry 543 TEUs. The vessel was chartered
1 Oct., 1988. The current charter will last 17 months starting in July
and there are two 17-month options.

CASUALTIES

Seven dead, 15 missing in sinking off the Dominican Republic

A vessel believed to be carrying illegal Dominican migrants to Puerto
Rico sank the morning of 24 Jan. off the southern coast of the Dominican
Republic. Seven people - four women and three men - were killed and 15
are missing. The vessel left eastern Boca Chica the night of 23 Jan. with
35 people aboard. It sank near Oviedo apparently after bad weather forced
it off course. Thirteen people were rescued by Dominican military personnel.

Six rescued as fishing vessel sinks off Massachusetts

On 17 Jan., the 26-meter/86-foot fishing vessel Commodore began taking
on water 108 kilometers/94 miles east-southeast of Nantucket, Mass. The
six crew activated an E.P.I.R.B. and boarded a liferaft. All six were rescued
by a U.S. Coast Guard HH-60J Jayhawk from Coast Guard Air Station Cape
Cod, Mass. The Commodore is owned by Scott M. Nolan and homeported at New
Bedford, Mass.

Stolt Spray loses steering, releases gas on Mississippi River

The Stolt Spray (Liberian-registry 25,200-dwt, 165-meter/541-foot tanker
built in 1974, operated by Stolt-Nielsen Inc.) suffered a steering failure
and collided with a grain barge on the lower Mississippi River on 18 Jan.
As a result of damage, 17,000 liters/4,400 gallons of pyrolysis gas leaked
and the Stolt Spray ran aground near Wallace, La. The river was closed
from mile marker 134 to mile marker 145 and about 100 people were evacuated.
The U.S. Nuclear Regulatory Commission placed the Waterford No. 3 nuclear
power plant on vapor alert due to the spill. Remaining gas in the damaged
tank was transferred to other tanks and the Stolt Spray was refloated.
Stolt Spray is currently restricted to an anchorage.

Collision in the Bosporus Strait damages Romanian-registry ship

The Barbarossa (Italian-registry 12,927-gt, 22,649-dwt tanker built
in 1982, operated by Mediterranea di Navigazione Srl) collided with the
Hagieni (Romanian-registry 5,906-gt, 8,750-dwt dry cargo ship built in
1982, operated by Navrom S.A.) in the Bosporus Strait near Istanbul, Turkey,
on 25 Jan. The Barbarossa was not carrying any cargo and was sailing to
Russia while the Hagieni, with soda ash, was sailing to France. The Hagieni
was run aground on a sandbank after the ship began taking on water in cargo
holds 1 and 2.

Barge capsizes in Cook Inlet

The Oregon (U.S.-registry 120-meter/400-foot barge owned by Crowley
Marine Services), loaded with 12,500 tons of urea and 6,100 liters/1,600
gallons of diesel fuel, capsized 25 Jan. in Cook Inlet, Alaska, after colliding
with the tug towing it from a Unocal facility. The barge arrived at Homer
on 26 Jan. The hatch covers remained closed in the capsizing.

Terningen damaged in grounding

The Terningen (Norwegian-registry 631-gt general cargo vessel) ran aground
29 Jan. at Lysoysund, Norway, while sailing from Trondheim, Norway, to
Tana, Norway. The ship suffered a port side bottom fracture seven meters/23
feet to eight meters/26 feet long. The ship is carrying 460 tons of fodder
and temporary repairs are being made.

Bulk carrier runs aground off Saudi Arabia

The Qena (Egyptian-registry 24,106-gt, 38,391-dwt bulk carrier built
in 1986, operated by Egyptian Navigation Co.) ran aground 28 Jan. at Dammam,
Saudi Arabia. The ship was sailing from Australia to the Persian Gulf with
33,988 tons of barley.

Talava runs aground in Denmark

The Talava (Latvian-registry 17,521-gt, 27,480-dwt tanker built in 1978,
operated by Latvian Shipping Co.) ran aground 28 Jan. in Denmark at 55
degrees 53.8 minutes north, 10 degrees 56.36 minutes east. The Talava is
carrying 25,000 tons of diesel fuel and the Samburga (Latvian-registry
17,200-dwt tanker built in 1976, operated by Latvian Shipping Co.) will
lighter part of the cargo to refloat the ship.

Fishing vessel aground in Norway

The Oldersund (Norwegian-registry 271-gt fishing vessel) ran aground
north of Rorvik, Norway, on 30 Jan. The 11 crew were rescued by helicopter.

Theresa Marie III disabled, towed to Maine

On 18 Jan., the fishing vessel Theresa Marie III (U.S.-registry) suffered
steering and engine problems and became disabled 101 kilometers/63 miles
east of Cape Ann, Mass. The fishing vessel Olympia took the Theresa Marie
III in tow, but abandoned it in heavy seas. The U.S. Coast Guard Bear-class
Medium-Endurance Cutter U.S.C.G.C. Seneca (WMEC 906) then took the vessel
in tow to the Coast Guard Capstan-class Small Harbor Tug U.S.C.G.C. Shackle
(WYTL 65609), which towed the Theresa Marie III into Portland, Maine.

U.S. Coast Guard aids damaged fishing vessel

A large wave hit the fishing vessel Lady Maria (U.S.-registry) 166 kilometers/104
miles northeast of Provincetown, Mass., on 17 Jan. The pilothouse windows
were destroyed and the vessel's electronic equipment became inoperative.
The crew activated a 406 megahertz E.P.I.R.B., and the U.S. Coast Guard
Bear-class Medium-Endurance Cutter U.S.C.G.C. Spencer (WMEC 905) located
the Lady Maria. The Spencer made replacement windows from Plexiglas so
the vessel could proceed and escorted the Lady Maria towards port. The
Spencer was later relieved by the Coast Guard "Island"-class
Patrol Boat U.S.C.G.C. Monomoy (WPB 1326).

Master of Nakhodka found, theory on sinking

The master of the Nakhodka (Russian-registry 13,157-gt, 20,471-dwt tanker
built in 1970, operated by Primorsk Shipping Co. and owned by Prisco Traffic
Ltd.) has been found. The ship broke in half 0250 2 Jan. about 130 kilometers/81
miles northeast of the Oki Islands, Shimane Prefecture, Japan. Thirty-one
of 32 crew were rescued. The body of Valery Melnikov, 47, was found on
a beach near Echizen, Fukui Prefecture, Japan, the morning of 26 Jan. He
was wearing only jeans and leather shoes. Oil from the tanker has not affected
eight prefectures. The spill is estimated at more than five million liters/1.3
million gallons or 5,000 tons. The Nakhodka carried 19,000 tons of grade
C heavy fuel, or 19 million liters/five million gallons or 133,000 barrels.
Efforts to remove oil from the bow near Mukuni, Fukui Prefecture, continue,
with 150 meters/490 feet of a road completed. On 27 Jan., it was reported
a Russian government group investigating the incident concluded that the
Nakhodka broke up after hitting a semi-submerged object. Two possibilities
offered by the group were either the hull of a sunken vessel or a target
used in military training. On 28 Jan., Japan denied the report. Japan and
Russia have agreed to form a joint commission to determine the cause of
the sinking.

Six Greek Coast Guard officers disciplined in Dystos inicident

Six Greek Coast Guard personnel have been disciplined for negligence
in responding to the capsizing of the Dystos (Greek-registry 6,197-dwt
bulk carrier built in 1972, converted to a cement carrier in 1985, classed
with Lloyd's Register, owned and operated by Heracles Shipping Co.) on
28 Dec. off Kimi, Evia Island, Greece. The vessel sank 2 Jan. Seventeen
people were killed and three are missing. One person survived. The M/V
Dystos was carrying 5,300 tons of cement from Volos to Piraeus. In addition
to the crew, one crewmember was travelling with his wife while another
crewmember's wife and 12-year-old daughter were also aboard. The first
Greek Coast Guard personnel arrived at the Dystos 10 hours after the capsizing.
On 29 Jan., it was announced that two officers in charge of the Greek Merchant
Marine Ministry's operations facility have been dismissed, while four Coast
Guard personnel from the Kimi Port Authority have been suspended without
pay for two to six months. The ministry has announced its operations facility
will be upgraded with a permanent staff trained in search and rescue operations.

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

Vanuatu delcares holiday for last call of the Fairstar

Vanuatu President Jean-Marie Leye declared a special holiday on 27 Jan.
so that thousands of people could gather at Port Vila, Vanuatu, to attend
the last call of the Fairstar (Australian-registry 24,000-gt, 8,800-dwt
passenger ship built in 1957, operated by P. & O. Australia Ltd.).
The vessel left Sydney, Australia, 20 Jan. with 1,200 passengers for a
South Pacific cruise with calls at New Caledonia and Vanuatu. The Fairstar
has boosted Vanuatu's economy over 23 years through tourism. The ship has
made some 600 calls at Port Vila with as many as 1,500 passengers each
time. The average passenger spent around U.S.$95. With Leye and Acting
Prime Minister Donald Kalpokas, Port Vila Mayor Alick Noel gave the town's
key to the Fairstar's master, Capt. Ambrosino. Traditional dancers and
singers performed on the seafront during the ceremony, before the Fairstar
left port escorted by traditional canoes decorated with flowers and banners
that said "Bye Ol' Mate." The Fairstar will be replaced by another
vessel.