World Maritime News - 27 Dec., 1996

Largest refrigerated shipping firm to be formed

Leif Hoegh and Co., Safmarine and Tufton Oceanic will merge in the first quarter of 1997 to form the largest specialized refrigerated cargo shipping firm in the world. They will form UniCool Ltd., registered in Bermuda. The new firm will also include Cool Carriers A.B., of which Lief Hoegh has 75 percent and Tufton Oceanic the rest, as well as Universal Reefers. Safmarine will control 50 percent of UniCool with the rest held by the Leif Hoegh-Tufton Oceanic venture. There will be eight offices with 100 personnel. Operations from Stockholm, Sweden, will continue as Cool Carriers while management of South African and related services will remain marketed as Universal Reefers. The new fleet will have a total capacity of about 1.08 million cubic meters/36 million cubic feet and will include 28 percent of all operator-controlled refrigerated ships of 7,500 cubic meters/250,000 cubic feet in the world. The fleet will consist of 85 vessels, 18 of which will be owned by UniCool. They will employ capital of U.S.$350 million.

Baltic Shipping Lines bankrupt

Acting on a request by the Russian Federal Bankruptcy Agency, a regional arbitration court in St. Petersburg, Russia, ruled on 26 Dec. that Baltic Shipping Lines is bankrupt. The firm employs about 11,000 people and fully or partly owns 53 vessels as well as other facilities. The line owes foreign creditors U.S.$420 million and U.S.$98 million to Russian creditors. Nineteen of its ships are under arrest worldwide. With the bankruptcy decision, the firm will be allowed to postpone debt payments 18 months. The appointed receiver is Mikhail Romanovsky, who formerly headed the firm. Romanovsky said that after debts, the company will be left with 40 ships at most, with 15 or less under its full control, and 4,000 to 5,000 employees.

Royal Caribbean charged with oil dumping, falsifying records

Royal Carribean Cruise Lines was charged 19 Dec. with dumping waste oil overboard and falsifying records to conceal the dumping. A U.S. federal grand jury in San Juan, Puerto Rico, returned a 10-count indictment alledging that five of the firm's ships dumped oil at sea for years. They are the M/V Monarch of the Seas, the M/V Nordic Empress, the M/V Nordic Prince, the M/V Song of America and the M/V Sovereign of the Seas. Piping was reportedly routed to bypass oil-water separators so that treatment equipment would not have to be maintained. Further, logs were alledgedly falsified, with one crewmember reportedly referring to the ship's oil log as the "Eventyrbok," after a popular Norwegian fairytale. In addition, two personnel of the M/V Sovereign of the Seas were charged with witness tampering for alledgedly instructing subordinates to lie to the grand jury and with bypassing the oil-water separators. Chief Engineer Henry Ericksen and First Engineer Svenn Rickard Roeymo have been suspended. If convicted on all 10 counts, Royal Caribbean could be fined U.S.$5 million. Ericksen and Roeymo face fines of U.S.$750,000 and U.S.$1 million, respectively, in addition to 25 years and 30 years in prison.

Canada begins actions against C.P. Ships' ownership of Cast

The Canadian Competition Bureau began proceedings on 20 Dec. against Canadian Pacific Ltd., seeking an order by the Canadian Competition Tribunal for C.P. Ships to sell Cast, the container shipping line. C.P. Ships acquired Cast after it was declared insolvent on 30 March, 1995. The Canadian National Transportation Agency held two weeks of hearings on the acquisition in late 1994 and gave approval to the deal in early 1995. The Canadian Federal Court of Appeal dismissed an appeal stemming from the National Transportation Agency's decision.

Mediterranean countries agree to port state control

Algeria, Cyprus, Egypt, Israel, Lebanon, Malta, Morocco, the Palestinian Authority, Tunisia and Turkey have agreed to a draft memorandum of understanding on port state control during a meeting in Casablanca, Morocco. The regional secretariat will be in Egypt with an information center in Tangier, Morocco. A final meeting to sign the agreement will be held in Malta in July.

Job cuts at C.G.M.

Compagnie Maritime d'Affretement has announced details of job cuts at Compagnie Generale Maritime. About 150 personnel aboard ships are expected to be cut from a total of 620 in the next two years through attrition. More than 100 positions of 700 in France are to be eliminated. Subsidiaries C.G.M. Sud, C.G.M. Tour du Monde and France Service Manutention will be dissolved. C.G.M.'s and C.M.A.'s French agency networks will become a single entity in Le Havre, France, with crew and fleet management by C.G.M.

Panama Canal Commission sued for discrimination

More than a dozen present and former employees of the Panama Canal Commission filed a lawsuit on 23 Dec. in the U.S. District Court in Washington against the commission. The lawsuit alledges that the commission has discriminated against them because they are not U.S.-born citizens. The International Organization of Masters, Mates and Pilots, which represents seven employees, said the workers are naturalized U.S. citizens born in Panama. The commission pays the employees at a lower wage rate rather than a higher one reserved for U.S.-born citizens.

Stinnes to leave inland Danube River transport

Stinnes has disclosed plans to cease inland transport on the Danube River. Donaudampfschiffahrtsgesellschaft-Cargo, based in Vienna, Austria, will be sold, along with the inland division of Bayerische Lloyd in Regensburg, Germany.

Three agents buy 25 percent of Killick Martin

Three European agents have bought 25 percent of Killick Martin. Burger, De Keyser Thornton N.V. and Karl Geuther G.m.b.H. and Co. will hold equal shares with Ben Line. Killick Martin represents Compagine Marocaine de Navigation, Geest, Lykes Bros. Steamship Co. and United Arab Shipping Co. It has offices in the United Kingdom at Felixstowe, Hull, Leeds, Liverpool, London, Manchester and Southampton.

Royal Nedlloyd announces sales of stakes

Royal Nedlloyd N.V. has announced plans to sell stakes in several firms. They include 30.56 percent of European Combined Terminals, the stevedore based in Rotterdam, the Netherlands; 40 percent of Smit International; and U.S.$46.5 million of Nobel Drilling. The stake in E.C.T. is being offered to Internatio Muller and Royal Pakhoed, which already own 30.56 percent each, and Dutch Railways, which has a four percent stake.

United States awards subsidies to 38 ships for military use

The United States on 20 Dec. awarded subsidies to 38 U.S.-registry vessels to ensure that merchant ships will be available for military use during emergencies. As part of the Maritime Security Program, each ship will receive as much as U.S.$2.1 million annually, as long as the ships remain U.S.-registered, have crews of U.S. citizens and are kept available for U.S. military use. The U.S. Congress has authorized annual payments of up to U.S.$100 million for the program, and nine more ships may join. Firms whose ships received the subsidies include Central Gulf Lines, Crowley Maritime Corp., Farrell Lines Inc., Lykes Bros. Steamship Co., Maersk Line, Overseas Shipholding Group Inc., Sea-Land Service Inc. and Waterman Steamship Corp. In all, 93 ships applied for the subsidies, with the U.S. Department of Defense aiding in selection of the ships to be included. The program replaces older subsidies that are expiring. For comparison, the older subsidies involve less than 30 ships at U.S.$160 million annually.

Global Carriers gets M$70 million loan

Global Carriers Bhd. on 23 Dec. signed a Malaysian$70 million loan agreement with Multi-Purpose Bank Bhd. The money will finance ship acquisitions as part of a fleet expansion.

T.W.R.A. will not implement rate increase for chemicals, resins

Member firms of the Transpacific Westbound Rate Agreement have announced they will not increase freight rates for chemicals and resins next year. The group announced in September that as of 1 Jan., rates for several types of export cargoes to Asia from the United States would be increased. Products effected include animal feeds, automobiles, beer, building materials, clay, electrical equipment, foodstuffs, forest products, furniture, household appliances, machinery, medical equipment, synthetic rubber and wastepaper. After a meeting in San Francisco last week, the T.W.R.A. told chemical and resin shippers that if they commit a minimum volume next year that is the same amount shipped this year, the terms of their contracts will be extended at the present rates. Hence, the U.S.$3 per ton general increase and the U.S.$3 origin receiving charge increase for chemicals and resins will not be implemented on 1 Jan.

Arvak becomes third firm allowed to sell COFRs, Shoreline announces changes

The U.S. Coast Guard has approved Arvak Ltd., sponsored by Skuld P. & I., for the certificates of financial responsibility programs. Managed by Aon Risk Services, it started offering guarantees of up to U.S.$395 million on a fixed-premium on 20 Dec. Arvak joins Shoreline Mutual (Bermuda) Ltd., backed by Centre Re, and Shipowners Insurance and Guaranty Co. Ltd. (formerly First Line), backed by Stockton Re. Lloyd's of London is backing Arvak, which will operate as a capitalized insurance company with capital provided through shares held in a trust. Arvak is capitalized at U.S.$500,000. Shoreline Mutual, meanwhile, is dropping its COFR rates by an average of 20 to 30 percent as of 1 Jan. In addition, it is including all defense costs in the coverage, and is offering an optional two or three year COFR for general cargo vessels at a discount. Also, supplemental "calls" will be eliminated, in which member shipowners are asked for additional premiums if losses are higher than expected.

Kinnock's strategy proposal passes Transport Council

Neil Kinnock's "Towards a New Maritime Strategy" proposal has passed the European Commission's Transport Council. The report was issued by the commission earlier this year and comments were accepted until September. It has been sent to the European Council.

Changes in management seniority system in Japan

Several Japanese firms are changing or replacing their management seniority system next year, with wage raises now based on merit. Raises by seniority will begin to be phased out the next fiscal year, which starts in April. Sumitomo Heavy Industries will move its 300 managers to a merit-based system with raises 20 percent more than typical wage increases. Hitachi Zosen will use three ranks in its management, with U.S.$150 to U.S.$200 extra pay each month per rank. Some 800 are effected. Also planning similar actions are Ishikawajima-Harima Heavy Industries and Mitsui O.S.K. Lines.

P. & O. Nedlloyd Container Line approved by the European Commission

The European Commission has approved the merger of P. & O Containers Ltd. and Royal Nedlloyd N.V. to form P. & O. Nedlloyd Container Line Ltd. The new firm will be the third largest containership operator in the world and the and second largest in Europe. Relatedly, shareholders of Royal Nedlloyd approved the deal on 20 Dec. The new line, formed in a U.S.$1.5 billion deal, was announced in September and will begin operations on 1 Jan. It will have an annual turnover of about U.S.$4.0 billion and a net asset value of U.S.$1.5 billion.

U.S.$790 to be invested in Vietnamese ports

A group of firms is planning to invest U.S.$790 million in ports and industry infrastructure in northern Vietnam. The firms include American International Group, Asian Infrastructure Development and Belgian International Port Engineering and Management. Projects include refurbishing and expanding Haiphong and building a new port at Dinh Vu.

Turkey accepts leases for seven ports

Turkey has accepted leases for the operation of seven ports for 30 years. In all, Turkey will receive U.S.$252.3 million. The final decision on the leasing of the ports will be presented to the Turkish High Privatisation Board. The ports include Antalya, Giresun, Hopa, Ordu, Rize, Sinop and Tekirdag. Bids for Trabzon were not accepted. Trakya Port Operations will pay U.S.$134.6 million to operate Tekirdag, while Link Import-Export's bid of U.S.$102.5 million was approved for Antalya. The cheapest accepted bid, slightly less than U.S.$801,000, was for Sinop.

New German standards on work hours, wages for port workers

German port firms will be able to introduce flexible work hours after negotiations between Zentralverband der Deutschen Seehafenbetriebe and the Transport Workers' Union. Both agreed to relax the existing collective bargaining contract so that working hours can be adjusted to companies' needs. In addition, hours worked per week will be reduced to 35 by 1999 via more paid holidays and a redefinition of overtime and breaks which will result in new payment standards. Individual time accounts for employees' hours will be introduced, with overtime compensated in a six-month period on a monthly instead of hourly basis. Also, work on weekends will be considered regular work.

Abidjan, Argentine ports, Colombo and Israeli ports halted by strikes

The Port of Abidjan, Cote d'Ivoire, halted operations 23 Dec. after dock workers struck over wages. The port personnel called for fixed, monthly salaries of U.S.$145, annual bonuses and registration with the national pension fund. Dockworkers called off the strike the night of 25 Dec. and work resumed. Details of any agreements reached were not disclosed. The Argentine ports of Quequn and Rosario were idled by a 24-hour general strike on 26 Dec. The Port of Baha Blanca was operating at 50 percent capacity, as a third of the personnel joined the strike. At Terminal Four at Buenos Aires, 49 percent of workers were striking. Dockworkers at the Port of Colombo, Sri Lanka, struck on 27 Dec. in protest against a plan to lease the Queen Elizabeth Quay to Peninsular and Oriental Steam Navigation Co. in July. P. & O., as part of a consortium, would develop the area as a new container terminal. Israeli workers staged a second day of strikes on 27 Dec. to protest planned cuts in government spending. The ports of Ashdod, Eilat and Haifa were closed. The 1997 budget proposal includes U.S.$2.15 billion in cuts and new taxes.

Germany to provide loan to upgrade Tacloban

Germany has agreed to give a U.S.$26 million loan for upgrading the Port of Tacloban, the Philippines. The project will include reclamation, new berths, new container freight stations, new cranes, new passenger terminals and infrastructure development.

Japan completes renovation of Phnom Penh

Japan announced 21 Dec. it has completed a four-year, U.S.$32.7 million renovation to the Port of Phnom Penh, Cambodia, and has turned it over to Cambodia. The port, on the Mekong River, can handle ships up to 3,000 tons and will handle 570,000 tons of cargo annually. Before the renovation, Phnom Penh handled 170,000 tons per year. Work included new berths, a container yard, lighting, cranes and forklifts.

Seattle, S.S.A. agree to double terminal size

The Port of Seattle and Stevedoring Services of America agreed 18 Dec. to double the size of Terminal 18 over three years. In a 30-year deal, S.S.A. will pay an annual rent of U.S.$67,000 per 0.4 hectare/1 acre, which will increase to U.S.$110,000 by 2010. Other fees will also be charged. As part of the deal, U.S.$300 million will be spent to expand the 42.4-hectare/106-acre facility to 80.0 hecatres/200 acres with on-dock rail access. Some 60 businesses will be relocated. The lease payments will cover the cost as well as a six to seven percent profit over 30 years. Construction will begin in spring 1998 and will be completed in about two years. The deal is expected to generate more than U.S.$200 million in new business revenue and 1,300 jobs.

Pac-Rim L.N.G. selects Kitimat, British Columbia, for new terminal

Pac-Rim L.N.G. has announced that it will build a new Canadaian$1.4 billion liquified natural gas export terminal at Kitimat, British Columbia, Canada. Some 3.5 million tons will be exported annually to South Korea. Negotiations with the Kitimat Village Council have begun for a site on the Douglas Channel on the Haisla Nation. Environmental impact hearings are to be held.

Workers at Esso terminal in Australia return

Personnel at an Esso terminal in Victoria, Australia, voted to return to work 25 Dec. after Esso agreed to a deadline for resolving a wage dispute. Members of the Australian Workers Union staged work bans on the Barry's Beach Marine Terminal in the Gippsland Region after about 40 workers were locked out when negotiations broke down. On 24 Dec., A.W.U. members halted trucks from entering the port. Under the agreement, Esso has 15 days to resolve the dispute, or the workers will resume the bans. Esso has stated that the A.W.U. members rejected a 14 percent pay increase in return for efficiency tradeoffs several months ago.

Liverpool dockworkers reject final offer

Former dockworkers at the Port of Liverpool, England, have rejected a final settlement offer. They are seeking reinstatement of all 329 dockworkers fired by Mersey Docks and Harbour Co. in 1995 for refusing to cross an illegal picket line. The final offer consisted of a payment of U.S.$45,000 per worker and the opportunity to apply for up to 40 jobs at the port. Mersey Docks and Harbour has called on the Transport and General Workers Union to organize a mail vote on the settlement, as the final deal was rejected at a mass meeting.

Larsen and Tourbro out of bidding for Jawaharlal Nehru

The consortium led by Larsen and Tourbro that was bidding for operating the Port of Jawaharlal Nehru, India, has dropped out. The Mumbai High Court dismissed a petition last week filed by the firm which would have restricted the port trust from evaluating financial bids for the port. The port had said that Larsen and Tourbro's bid was not responsive under the conditions set, as the bid was a conditional financial bid in a two-stage process. The port said that the consortium should have presented all its conditions before the technical bidding was opened. The consortium included Stevedoring Services of America.

T.M.M. unit to operate tugs at Manzanillo

Transportacion Maritima Mexicana has been awarded a concession to operate tugs at Manzanillo. T.M.M.'s bid for the 10-year contract was U.S.$4.9 million. Subsidiary Servicios Mexicanos en Remolcadores, which operates a container terminal in the port, will actually operate the tugs.

Port of New York and New Jersey reducing vehicle assessment

The Port of New York and New Jersey plans to reduce assessments on vehicles, it was announced 19 Dec. In addition, the New York Shipping Association and the International Longshoremen's Association said they are moving the implementation date for the 17 percent local general cargo decrease to 1 Jan. from 1 Feb. The automobile assessment as of 1 Jan. will be U.S.$3 per automobile. Currently, the assessment is just over U.S.$5 per vehicle.

Port Manatee dredging complete

Port Manatee, Fla., now has a channel 12 meters/40 feet deep, it was announced on 19 Dec. Dredging to make the channel 0.9 meters/3 feet deeper has taken the last year to complete.

Closures at Novorossiysk and in Mexico and Romania

Eleven Mexican ports remained closed 20 Dec. due to weather conditions. They included Alvarado, Campeche, Cayo Arcas, Ciudad del Carmen, Coatzacoalcos, Dos Bocas, Frontera, Nautla, Pajaritos, Progreso and Tuxpan. Small vessel restrictions were announced in Cozumel, La Paz, Loreto, Puerto Juarez, Salina Cruz, and Santa Rosalira. All Mexican ports were open by 22 Dec. The Port of Novorossiysk, Russia, has been closed since 2350 23 Dec. Weather conditions described as blizzards hit Romania on 26 Dec., disrupting shipping on the Danube Riber and the Black Sea. The river port's of Galati and Sulina were closed, while Constanta closed at 0300.

Wallenius Lines to increase frequency, capacity

Wallenius Lines has announced service changes that will increase frequency and capacity, including more calls in the United States. A new service will start between the southern Atlantic, U.S. east and west coasts, Japan and Taiwan. This includes two to three sailings each month from Newark, N.J., to the Japanese ports of Toyahashi and Yokohama and Keelung, Taiwan. Three ships will operate every 10 or 11 days between Bremerhaven, Germany; Antwerp, Belgium; Southampton, England; Radicatel, France; Charleston, S.C.; Brunswick, Ga.; Jacksonville, Fla.; and Baltimore. Each voyage will last 33 days. The north Atlantic service will offer weekly calls at Bremerhaven, Germany; Antwerp, Belgium; Southampton, England; Baltimore; and New York. On alternate weeks, calls will be made at Bristol, England; Sheerness; Ghent, Belgium; and Halifax, Nova Scotia, Canada. Four ships will be used with roundtrip sailings of 28 days. Another new service will start from Galveston, Texas, to Europe. Roundtrip, the voyage will take 35 days and calls will be made every 17 days at Antwerp, Bremerhaven, Southampton, Charleston, Brunswick and Galveston. The round-the-world service will make fixed-day calls at Gothenburg, Sweden; Bremerhaven; Southampton; Davisville; New York; Charleston; Jacksonville; Brunswick; Port Hueneme, Calif.; and Tacoma, Wash.

N.Y.K. to start heavy project services from Europe to Asia

Nippon Yusen Kaisha will start one of the first regular heavy project cargo services from Europe to northern and southeast Asia next year. Euro-Asia Project Connect will offer port calls on inducement in addition to fixed calls. Six 22,000-dwt vessels with a 200-ton loading capacity will be used. Starting next month, they will call at Antwerp, Belgium, and Hamburg, Germany, each month. Via the Suez Canal, calls will be made at China; the Japanese ports of Kobe and Yokohama; the Philippines; Singapore; South Korea; Thailand; and Vietnam.

New N.O.L. ro/ro service for timber exports

Neptune Orient Lines' Specargo Forwarding will start a new ro/ro service for breakbulk timber exports next mouth. Space will be chartered aboard the M/V Asian Victory (6,049-dwt ro/ro built in 1978, operated by Barber Ship Management A/S). Calls will be at Port Klang, Malaysia; Sinagpore; and the Australian ports of Adelaide, Brisbane, Fremantle, Melbourne and Sydney. The 15-knot ship will make its first call at Port Klang's Kelang Container Terminal on 6 Jan. and Singapore's Sembawang Terminal on 8 Jan. Calls will be once a month. It is the first service Specargo Forwarding has operated.

Evergreen Marine adding calls

Evergreen Marine Corp. has announced it will add calls at Gothenburg, Sweden, and Kaohsiung, Taiwan, as part of its Asia-Mediterranean-Europe service. Laem Chabang, Thailand, will be called eastbound on its PFM (Medway/Pacway) service with Port Klang, Malaysia, westbound. The first calls are 9 Jan.

Global Alliance to again call at Kobe

The Global Alliance will resume calling Kobe, Japan, on 21 Jan. as part of its Japan-Far East-Mediterranean service. In January 1995, the alliance suspended service after the port was hit by an earthquake. The Global Alliance called at Nagoya and Shimizu, Japan, instead. The new calls are: Pusan, South Korea; Kobe; Nagoya; Yokohama, Japan; Hong Kong; Singapore; Port Klang, Malaysia; Damietta, Egypt; La Spezia, Italy; Barcelona, Spain; and Fos, France. The alliance includes American President Lines, Malaysia International Shipping Corp., Mitsui O.S.K. Lines, Orient Overseas Container Line and Royal Nedlloyd N.V.

Container service from Yichang to Shanghai begins

The longest international container service on an interior Chinese river began the afternoon of 24 Dec. A vessel with containers for Australia and Japan left Yichang, Hubei Province, and will arrive in Shanghai on 29 Dec. The service, announced in October, will sail from Yichang on the 5th and 20th of each month.

Holyman Sally to operate ferries to Dunkirk

Holyman Sally Ferries has agreed to operate a fast ferry service to Dunkirk, France. The firm will use a 74-meter/240-foot catamaran that can carry 600 passengers and 84 vehicles. Eight 90-minute sailings will be offered, with a crew of 39 French caterers, 35 British crewmembers and three bureau de change assistants.

South Korea shipbuilding grinds to a halt

During a session of the South Korean National Assembly at 0600 26 Dec. at which no opposition was present, 155 members of the governing New Korea Party passed a law that reduces the power of labor unions. It is now easier for firms to lay off workers and bans multiple unions at any site until 2002. Also, new umbrella labor groups are banned until 2000. The bill was adopted in seven minutes with no debate. The New Korea Party said the move was taken because opposition legislators, who lacked the votes to stop the bills, physically bocked the assembly last week. Hours later, in protest of the "secret passage" of the law, several unions called a general strike while 100 political opposition members staged a sit-in at the National Assembly's main hall wearing black neckties signifying what they said was the death of parliamentary democracy in a "coup d'etat by a civilian government." Employees of Hyundai Heavy Industries Co. Ltd. walked off the job, and 20,000 workers at the facility at Ulsan burned an effigy of South Korean President Kim Young Sam and shoted "Abolish the Evil Law!" Workers also struck at Halla Heavy Industries, Hanjin Heavy Industries and Hyundai Mipo Dockyards. The strike continued 27 Dec., with employees of Daewoo Shipbuilding and Heavy Machinery Co. Ltd. walking out at 0800. Almost 350,000 employees walked out throughout the country. Another 20,000 joined on 28 Dec.

E.C. to keep E.U. building aids

The European Commission has decided to maintain European Union shipbuilding aid ceilings until the end of 1997, unless an agreement by the Organization for Economic Cooperation and Development comes into force before then. The ceiling is nine percent of the contract value for large ships and 4.5 percent for smaller vessels.

Gdansk Shipyard update

Bank Gdanski S.A. will organize a group of banks to extend a U.S.$100 million loan to Gdansk Shipyard to build five ships for Schoeller Holdings. First, the shipyard must create a restructuring plan which guarantees the ships will be built without delays. The bank would ask the Polish government to guarantee the loan. In response, the government said a guarantee would be given if the yard's trade unions stop their protests.

Conti Reederei cancels order with Bremer Vulkan, building to continue...

Conti Reederei has canceled its order with Bremer Vulkan Verbund A.G. for two 2,750-TEU containerships. Jobst Wellensiek, the firm's receiver, has signed an agreement with Hansa Truehand Schiffsbeteiligungen to build the first of the two ordered ships if Bremen, Germany, will provide financial guarantees. The deal negotiated is reportedly at U.S.$34.75 million, or 20 percent below the cost of building the ship. The second may be built along the same terms if the first deal is successful.

..Lurssen Werft to buy Bremer Vulkan's naval shipbuilding

Lurssen Werft has signed a preliminary contract to buy Bremer Vulkan Verbund A.G.'s naval shipbuilder, Bremer Vulkan Marineschiffbau. The contract is based on the condition that Bremer Vulkan Marineschiffbau is reinstated as a full partner in building the German Navy's Klasse 124 frigates. The deal also includes part of the Bremen-Vagesack yard.

CARENA employees end strike

Employees of Cie Abidjanaise de Reparations Navales in Abidjan, Cote d'Ivoire, ended their strike on 23 Dec. after the firm agreed to revise wage levels. The workers struck 12 Dec.

Litton Industries protests LPD 17 contract award

Litton Industries Inc.' Ingalls Shipbuilding announced 26 Dec. it has formally challenged the U.S. Navy's decision to award a U.S.$1.5 billion contract to a consortium headed by Avondale Industries Inc. The protest was filed with the U.S. General Accounting Office in Washington over "the manner and methodology utilized." The G.A.O. has 100 days to make a decision. On 17 Dec., the Navy awarded a U.S.$641 million contract to Avondale Industries, General Dynamics Corp.'s Bath Iron Works and General Motors' Hughes Electronics as part of U.S.$1.5 billion to build the first three ships of the San Antonio (LPD 17)-class Dock Landing Ships. It is believed that the initial builder will receive orders for the rest of the class. Ingalls Shipbuilding was teamed with Lockheed Martin Corp., National Steel and Shipbuilding Co. and Newport News Shipbuilding and Dry Dock Co. Ingalls Shipbuilding said its team's bid was about 12 percent or U.S.$100 million less than the Avondale-led bid. It has been suggested that the decision was made on "industrial base" grounds, out of a desire to keep Avondale in naval shipbuilding.

New engine builder may be formed in Shanghai

Korea Heavy Industries and Construction Corp. has announced it has agreed in principle with China State Shipbuilding Corp. to form a joint venture in Shanghai, China. The firm will produce ship engines with Korea Heavy Industries and Construction investing U.S.$20 million with a 49 percent stake. The firm would begin producing 40 to 50 diesel engines in 1999.

Units of IHC Caland, Kvaerner and Samsung to build largest F.P.S.O. yet

IHC Caland N.V. announced 23 Dec. that a consortium including Kvaerner Oil & Gas, Samsung Heavy Industries and Single Buoy Mooring Inc. had won a turnkey contract to build a floating production, storage and offloading system for Woodside Offshore Petroleum. The total contract is worth about U.S.$420 million, with S.B.M. getting U.S.$125 million. The system will be the world's largest and will be operable by the end of 1998 in the Laminaria and Corallina oil fields of the Timor Sea. The vessel will have a daily production capacity of 170,000 barrels and will be able to store 1.4 million barrels. The hull, to be built by Samsung, will be 273 meters/896 feet long, have a 50-meter/164 foot beam and a draft of 28 meters/92 feet. Kvaerner Engineering will built the topsides and S.B.M. will build a diameter turret mooring and transfer system. The consortium will manage the new vessel.

Generator set assembly for new carrier planned at former naval shipyard

About 20 people will be hired early next year at the Philadelphia Naval Business Center, formerly the Philadelphia Naval Shipyard, to assemble eight turbine generator sets for the U.S. Navy's Nimitz-class Nuclear-powered Aircraft Carrier Ronald Reagan (CVN 76). Beginning in March, Xeno Technix, working as a subcontractor for Northrop Grumman Corp.'s Electronic Sensors and Systems Division, will begin work in about 20 percent of Shop 31 in Building 16. After the work is completed, the Northrop Grumman unit plans to use the facility to test intercooled recuperated gas turbine engines for naval vessels.

Hyundai Mipo to build six ships for Iranian line

Hyundai Mipo Dockyard Co. has received a U.S.$200 order from the Islamtic Republic of Iran Shipping Lines Co. for six multipurpose ships.

Hyundai to build two ships for Kuwait Oil Tankers

Hyundai Heavy Industries Co. Ltd. on 24 Dec. was awarded a contract from Kuwait Oil Tanker Co. for two 309,000-dwt oil tankers at more than U.S.$160 million.

A.P. Moller orders two tankers in China

A.P. Moller has ordered two 110,000-dwt tankers with a 120,000-cubic meter/156,000-cubic yard coated tank capacity from Dalian New Shipyard, China. They will be delivered in late 1998 and registered with the firm's Singaporean subsidiary. They will have double hulls.

Polish Steamship orders two bulk carriers

Polish Steamship Co. has ordered two 41,500-dwt bulk carriers from Varna Shipyard, Bulgaria. They will be delivered by late 1999.

Minoan Lines orders another new ferry

Minoan Lines has ordered a 31,000-gt ro/ro passenger ferry from Fosen Mek Verksteder, Norway, for U.S.$111 million. The M/V Pasiphae will be 200 meters/650 feet long and will be delivered in June 1998. The vessel will sail between Patras, Greece, and Ancona, Italy in 19 hours at 27 knots. It will have a capacity of 1,500 passengers with a cabin capacity of 700 and 160 trucks up to 15 meters/49 feet or 800 automobiles. There will be a casino, movie theater, two pools, a children's area, duty-free shops and lounges and bars. The vessel will be marketed under Minoan High Speed Ferries.

Lloyd Werft to lengthen to passenger ships

Lloyd Werft Bremerhaven G.m.b.H. has received a contract from Norwegian Cruise Line to lengthen two ships. The M/V Dreamward (5,589-dwt passenger ship built in 1992) and the M/V Windward (4,800-dwt passenger ship built in 1993) will be drydocked in late 1997 and early 1998 to increase their capacity. A 40-meter/130-foot section will be added amidships. The modules will be build and fitted out before installation, so that the work will take only two months for each ship.

First of six ships for Myanma Five Star delivered

Myanma Five Star Line has taken delivery of the M/V Chin Shwe Haw, a 3,300-dwt mutlipurpose vessel, from Zhong Hun Shipyard, Singapore. It is the first of six new ships on order.

Austal Ships delivers two catamarans

Istanbul Deniz Otobusleri has taken delivery of two 40-meter/130-foot long catamaran ferries from Austal Ships Pty. Ltd. The 450-passenger M/V Sinan Pasa and M/V Piyale Pasa will operate across the Bosporus Strait between ports on the Sea of Marmara. They will make eight round trips daily. Austal Ships is also building two 60-meter/200-foot Auto Express vehicle ferries for Istanbul Deniz Otobusleri, which will be delivered in mid-1997.

Draxl takes delivery of the M/V Kirsten

The M/V Kirsten (600-TEU containership) has been delivered to Draxl Schiffahrts G.m.b.H. by the Hagemann group. The ship was built at Peenewerft and Roland Werft and has a two stroke engine for 18 knots. The ship has been chartered to Peter Dohle Schiffahrts-KG (G.m.b.H. and Co.) and is sailing in the Mediterranean. A sister is being built at Roland Werft for delvery in April.

Last Iranian Kilo-class sub on delivery voyage

The last of three Taregh-class Attack Submarines for the Islamic Republic of Iran Navy is under tow in the Mediterranean on its delivery voyage. The submarine, a Warshavyanka-class or Project 977EKM (N.A.T.O.: Kilo-class), built by United Admiralty Shipyard in St. Petersburg, Russia, will call in Tunisia.

Six sentenced to death for mutiny that killed 11

Three judges in South Korean have sentenced six Chinese citizens to death for a mutiny earlier this year. Eleven crewmembers, including the master, were killed and dumped overboard. The six stated the mutiny was in response to cruel treatment. In the ruling announced 24 Dec., Judge Kim Chong-kyu said the six were sentenced to death because of the number of deaths and the cruelty of the act. The court rejected claims that the six did not intend to steal the vessel, since they left one South Korean citizen alive who could operate it. The South Korean-registry vessel was found in August in Japanese waters and had a crew of citizens from China, Indonesia and South Korea.

Russian border forces fire on the M/V Imia

Russian Maritime Units of the Border Guard Forces fired on a foreign-registry merchant vessel 26 Dec. as it was attempting to leave the Port of Novorossiysk, Russia, without permission. The M/V Imia (Panamanian-registry) had 17 Ukrainian and one Tanzanian citizen aboard. The ship tried to leave Russian territorial waters without customs inspections and after ignoring orders to stop as well as warning shots, the ship was fired on. The M/V Imia then stopped and the master contacted the border forces who towed the ship to port. There were no injuries to the crew and it is not clear if the ship was hit. According to the border forces, the ship delivered a cargo of fruit to Novorossiysk on 13 Dec. from Piraeus, Greece. However, after a dispute over the quality of the fruit, a fine of U.S.$18,000 as imposed on the master. It has been suggested that the M/V Imia left Novorossiysk to avoid the fine.

Ostend to Ramsgate ferry service suspended

High-speed ferry services by RMT between Ostend, Belgium, and Ramsgate, England, were suspended 23 Dec. after striking mechanics blocked vessels from sailing. Some 25 mechanics fear the loss of premiums, which account for up to a quarter of their pay, and promotions when RMT ceases to exist in 1999.

Egypt arrests the M/V Svetlogorsk, seizes Algerian-registry vessel

Egypt has arrested the M/V Svetlogorsk (Ukrainian-registry 8,874-gt, 13,738-dwt dry cargo ship built in 1970, owned and operated by Black Sea Shipping Co.) at Suez. A local shipping agent, Bancomar, sought a court order for the ship's arrest after Black Sea Shipping stopped paying for accumulated transit tolls and the cost of provisions. At the time of its arrest, the ship was carrying general cargo from the Persian Gulf. On 26 Dec., the M/V El Hadjar (Algerian-registry 64,698-dwt bulk carrier built in 1981, operated by S.N.T.M.-C.N.A.N.) was seized at Port Said on suspicion that its cargo of French wheat also contained poppy pods. The ship is loaded with 52,500 tons of wheat loaded at Dunkirk, France, bought by the Egyptian General Authority for Supply Commodities. Tests reportedly showed traces of poppy seeds, from which opium is extracted, in the wheat.

Archaeological expedition planned

A group of Australian and French archaeologists is planning an expedition to the Cook Islands in the southern Pacific to search for a British-registry ship. The three-masted Julia Ann sank 2 Oct., 1855, near Manune Atoll, New Zealand, in the Cook Islands. The ship was sailing from Sydney, Australia, to San Francisco.

Hvide Marine to buy 11 vessels

Hvide Marine Inc. announced 23 Dec. it will buy three offshore supply vessels, five crewboats, an offshore anchor-handling vessel and two harbor tugs for $26.9 million. They will be operated by Seabulk Offshore Ltd.

Kuwait Oil Tankers sells three ships

Kuwait Oil Tankers Co. has sold two tankers for U.S.$18.5 million and scrapped a third, it was reported 23 Dec. All three were over 20 years old. One 420,000-dwt tanker was sold for U.S.$11.5 million and a 260,000-dwt ship was sold for U.S.$7 million. The third tanker, a 30,000-dwt vessel, was sold at U.S.$157 per light deadweight ton for scrapping in Bangladesh.

COSCO unit sells contracts for two ships

Cosco Investment (Singapore) announced 26 Dec. it will sell two 45,500-ton bulk carriers ordered from Mitsubishi Corp. for 2.34 billion Japanese yen plus U.S.$750,000 for each ship as profit. The sale to two Panamanian firms, Lihai Maritime and Luhai Maritime, will be via having the buyers sign the contracts with Mitsubishi that Cosco (Singapore) Pte. Ltd. had entered into.

Thomson charters two more ships

Thomson has chartered two more passenger ships for cruises in the Mediterranean next summer. The M/V Emerald (8,713-dwt, built in 1958, 493 cabins), formerly the M/V Regent Rainbow, will be operated by Louis Cruise Lines. The M/V Island Breeze (16,604-dwt, built in 1961, 580 cabins), formerly the M/V Festivale, will be operated by Dolphin Cruise Lines. The ships will operate from Palma, Spain, with the M/V Emerald, having recently completed a U.S.$75 million refit, operating all summer. The M/V Island Breeze will enter service 4 July.

M/V Jahan sinks in the south Atlantic, 28 crew missing

The M/V Jahan (Belize-registry 8,757-gt, 15,022-dwt general cargo ship built in 1972, classed by Hellenic Register, owned and operated by Seatime Shipping Pte. Ltd.) sank at 0445 27 Dec., reportedly at 32 degrees south, 0 degrees 45 minutes east (about 1,090 kilometers/680 miles west of Cape Town, South Africa). All 28 crewmembers are missing. The ship sent a distress call at 2345 26 Dec. in what were said to be fair weather conditions. The Ghanian master reported that the ship was experiencing uncontrollable flooding and the crew, mostly Bangladeshi citizens, would be forced to abandon ship. South African Air Force C-130B Hercules aircraft from the No. 28 Squadron at Waterkloof Air Base, Pretoria, headed to the area, with three ships - the M/V Cape Falcon (161,475-dwt bulk carrier built in 1993, operated by Soc. Anon. Monegasque), the M/V Captain Panagiotis and the M/V Southgate (25,417-dwt bulk carrier built in 1982, operated by Soc. Anon. Monegasque) - arriving 28 Dec. The search was abandoned 29 Dec. after a 7,800-square kilometer/3,000-square mile area was covered. Nothing was found. The M/V Jahan was on charter to Glencore, London, carrying 14,000 tons of sugar from Santos, Brazil, to Iraq.

One killed in fire aboard Russian-registry icebreaker

A crewmember was killed in a fire aboard the M/V Yamal (Russian-registry 18,172-gt, 4,096-dwt nuclear-propelled icebreaker built in 1992, operated by Murmansk Shipping Co.) early 23 Dec. The fire in the mechanic's cabin was extinguished in 30 minutes, but the mechanic was killed.

Crewmember missing after tanker struck by lightning off Japan

A crewmember is missing after the M/T Kinyo Maru No. 2 (2,998-gt, 5,671-dwt tanker built in 1993, operated by Kinriki Kisen K.K.) was struck by lightning the afternoon of 22 Dec. Hideo Matsumura, 46, fell overboard after the ship was hit off Akita, Japan. The lightning apparently caused gas inside a tank to ignite, and the resulting explosion created a hole in the starboard side 1.5 meters/4.9 feet in diameter. Cracks were also found in the deck. A fire was extinguished and none of the other 12 crewmembers was injured. The ship delivered 2,290 tons of gasoline and 1,580 tons of kerosene to Akita earlier in the day, and was sailing to Muroran, Japan, where the cargo was loaded 21 Dec.

Maltese-registry ship suffers fire, one missing

The M/V Blumenau Reefer (Maltese-registry 8,707-gt, 6,625-dwt refrigerated cargo vessel built in 1969, operated by International Reefer Services S.A.), carrying bananas from Puerto Bolivar, Ecuador, suffered a fire at Lomonosov, Russia, on 25 Dec. Believed to have been caused by an electrical problem, the fire started in the No. 2 cargo hold but spread to the No. 1 hold. The ship ran aground with both holds flooded. The crew was rescued but one firefighter was reported missing.

M/V Berrack S. sinks off Turkey

The M/V Berrack S. (Honduran-registry 399-gt general cargo ship owned by Sohtorik B. Shipping and Agency Services Ltd.) sank 24 Dec. off Istanbul, Turkey. Weather conditions at the time included strong southwesterly winds. The crew was rescued.

Dinelli rescued from the S/V Algimouss in the Indian Ocean

Raphael Dinelli, a French citizen sailing in the Vendee Globe round-the-world race, was rescued 27 Dec. after his vessel, the S/V Algimouss (18 meters/59 feet long), was demasted and partially sunk 26 Dec. in a storm. Peter Goss, a British citizen in the race, rescued Dinelli, 28, after the S/V Algimouss was spotted by a Royal Australian Air Force aircraft about 2,200 kilometers/1,400 miles southwest of Perth, Australia. The race began in France on 3 Nov.

Two ships collide at Mississippi River mouth

The M/V Handy Humanity (19,340-gt, 33,024-dwt bulk carrier built in 1984, operated by Pacific Basin Agencies Ltd.) and the M/V New Argosy (52,967-gt, 88,782-dwt tanker built in 1987, operated by Associated Maritime Co. (Hong Kong) Ltd.) collided in heavy fog 24 Dec. at the mouth to the Mississippi River. The M/V Handy Humanity was loaded with 12,646 tons of steel, while the M/V New Argosy carried 516,000 barrels of crude oil. The M/V Handy Humanity sailed to the Harmony Street Wharf in New Orleans to unload, while the M/V New Argosy sailed to the Star Convent dock in New Orleans, where it unloaded its cargo the morning of 26 Dec. The two ships sustained little damage, but were required to proceed with tugs.

Ferry runs aground near Prince Edward Island

The M/V John Hamilton Gray (11,259-gt, 1,230-dwt ro/ro ferry built in 1968, operated by Marine Atlantic Inc.) ran aground near Borden, Prince Edward Island, Canada on 20 Dec., 175 meters/574 feet from shore. The vessel carried 116 passengers and 20 crew for Cape Tormentine, New Brunswick, when it was pushed onto a sanbar in high winds. Two tugs, including one from Hawkesbury, Nova Scotia, and a Canadian Coast Guard vessel refloated the ship at 2130 22 Dec. The ferry returned to Borden.

M/V Baneasa adrift off Alaska, Pacific Area Strike Team sent

The M/V Baneasa (Liberian-registry 65,044-dwt, 253-meter/830-foot bulk carrier built in 1984, homeported in Monrovia, operated by Torvald Kalveness and Co. A/S) lost power 25 Dec. and is drifting at about two knots towards Atka Island in the Aleutians. The vessel's rudder is stuck to starboard. The M/V Baneasa, with a crew of about 30, is not carrying any cargo but has 4,200 barrels of heavy fuel oil and 800 barrels of diesel fuel aboard. The U.S. Coast Guard Pacific Area Strike Team has flown from California to Alaska and oil-spill cleanup equipment has been moved to Adak Island. It is hoped that a Coast Guard cutter can take the ship in tow.

M/V Pine Islands loses power in the Gulf of St. Lawrence

The M/V Pine Islands (Belize-registry 15,193-dwt, 148-meter/486-foot general cargo ship built in 1977, operated by Naviera Poseidon) lost power 24 Dec. in the Gulf of St. Lawrence with 29 crewmembers aboard. The ship was able to anchor on 25 Dec. Even if the ship was able to restart its engine, there is little fuel left, as most was spent in restart attempts. The tug Irving Maple (860-dwt, built in 1966, operated by Atlantic Towing Ltd.), from Mulgrave, Nova Scotia, Canada, which stood-by since the night of 25 Dec., finally was able to establish a tow on 27 Dec. and the two vessels sailed for Mulgrave. Aircraft dropped heaters and generators to the ship 25 Dec. and the Canadian Coast Guard Martha L. Black-class Light Icebreaker/Navigational Aids Tender C.C.G.S. Ann Harvey, based in Newfoundland, remained nearby. In addition, the bulk carrier M/V Manifest PKWN (60,969-dwt bulk carrier built in 1986, operated by Polsteam Oceantramp Ltd.) was acting as windbreak for the M/V Pine Islands. Originally, the Cuban master of the M/V Pine Islands requested that the crew be taken off by helicopters, but he later changed his mind. A CH-113A Labrador from the Canadian Air Command's No. 413 Squadron at Canadian Forces Base Greenwood, Nova Scotia, was en route to the ship late 24 Dec. The helicopter landed at Summerside, Prince Edward Island, and remains on call.

Greek Navy releases report on casualty that killed four

The Greek Navy on 23 Dec. released its report on the sinking of its Antipliarchos Lascos-class Guided-Missile Patrol Boat H.S. Antipliarchos Kostakos (P 25), which was participating in Exercise Parmenion. The vessel sank at 1845 4 Nov. after a collision with the M/V Samaina (Greek-registry 3,783-gt, 810-dwt ro/ro and passenger ferry built in 1962, formerly the M/V Mary Poppins; owned by Arkadia Lines Naftkik Eteria) off Vathi, Samos Island, Greece. Of the 38 aboard the warship, 34 were rescued and four (three chief petty officers and a warrant officer) are missing and presumed dead. The M/V Samaina, sailing from Vathi to Karlovasi, did not suffer any serious damage and her 71 passengers and 51 crew were uninjured. According to witnesses, the M/V Samaina suddenly changed course to port and collided with the starboard area of warship's stern. The Samos public prosecutor on 5 Nov. began actions against master Matheos Pnevmatikakis and first mate Antonis Tzouanou of the M/V Samaina for causing a shipwreck through negligence. Both were later released pending a trial. The H.S. Antipliarchos Kostakos sank in 151 meters/495 feet of water about one kilometer/0.6 miles from Samos. The Greek Navy has concluded that Ensign Mihalis Dimoulkas lost sight of the M/V Samaina after he left his station on the bridge of the H.S. Antipliarchos Kostakos. Dimoulkas apparently concluded that the ferry was sailing at a "safe distance." The report also cited the M/V Samaina for ineffective use of its radar, and Pnevmatikakis was singled out for not effectively using navigational equipment as well as sailing at an excessive speed.

A.R.A. Bahia Paraiso still leaking fuel off Antarctica

An Argentine Navy ship is leaking diesel fuel into an Antarctic wildlife area, almost eight years after it ran aground and capsized, according to a 25 Dec. report. The A.R.A. Bahia Paraiso (Q 6) is lying capsized on rocks off DeLaca Island, about 1.6 kilometers/1 mile from the United States' Palmer Station on the Antarctic Peninsula. The ship, a supply vessel being used for tourism, ran aground 28 Jan., 1989, as it was leaving Palmer. All 150 people aboard were rescued and the ship capsized three days later in a storm taking two S-61 series Sea King helicopters as well. Some 608,000 liters/160,000 gallons of diesel and lubricants spilled during the peak breeding season, killing cormorants, penguins and skuas. The populations of the imperial cormorants and the kelp gulls in the area were decimated. It is not known how much fuel remains aboard the ship or at what rate it is leaking. An Argentine-Dutch salvage operation a few years after the incident removed some of the oil. Since the loss of the A.R.A. Bahia Paraiso, Argentina and the United States have created emergency oil spill response procedures for the area and a 24-country treaty signed in 1991 requires all members to develop emergency responses to such threats to the environment.

The M/V Carnival Destiny sets another record

The M/V Carnival Destiny, the largest passenger ship ever built, set another record when it left Miami on 22 Dec. with 3,269 passengers, the most passengers ever carried on a single voyage. The U.S.$400 million Carnival Cruise Lines ship, delivered last month, will return to Miami on 29 Dec. after sailing in the eastern Carribean with calls at San Juan, Puerto Rico, and St. Croix and St. Thomas in the U.S. Virgin Islands. The M/V Carnival Destiny actually has a maximum passenger capacity of 3,400. The ship sails every Sunday from Miami and alternates between the eastern and western Carribean.