World Maritime News - 19 Sep., 1997

BUSINESS

International Maritime Group adds to businesses

International Maritime Group has purchased Alexanders Partners, Caledonian Tankers and Stephenson Clarke Shipping Ltd. for 45 million British pounds/U.S.$72 million. The deal includes assets such as Stephenson Clarke Shipping's 20 bulk carriers. International Maritime Group, founded in 1992, has announced it will move its headquarters to Newcastle, England, as part of the deal. Stephenson Clarke Shipping is the oldest British shipping company.

Ultragas International makes two acquisitions

Astra CAPSA has sold its Antares Naviera Sociedad Anonima to Ultragas International for U.S.$45.5 million. Astra CAPSA will get a net gain of U.S.$7.6 million. Also, YPF has sold its 30 percent stake in Transportes Maritimos Petroleros to Ultragas Internation for U.S.$20.8 million.

Stolt-Nielsen unit becomes largest inland chemical tanker operator

Stolt-Nielsen Inland Tanker Services has bought the barging services of Hamburger Lloyd in Belgium, Germany, the Netherlands and Switzerland. It will get 25 tank barges, including 11 stainless-steel vessels, for a total fleet of 35 vessels. Stolt-Nielsen Inland Tanker Services will become the largest European inland chemical tanker business.

Actinor Shipping to acquire control of Jebsens

Actinor Shipping A/S will buy 70 percent of the shares of Jebsens from its chairman, Atle Jebsen, for U.S.$20 million. The deal is expected to be closed by November after Jebsens' self-unloading ships are sold. The deal will give Actinor Shipping control of Jebsen Carriers and Jebsen Euro Africa Services.

Bylock & Nordsjofrakt to sell Swedish Orient Line stake

Bylock & Nordsjofrakt will raise 306.9 million Swedish krona/U.S.$40.27 million by selling its 75 percent stake in Swedish Orient Line. Shares will be priced at 16.5 krona/U.S.$2.16 each and some 18.6 million will be placed from 1 Oct. to 14 Oct. The shares will be "B" stock on the Stockholm Stock Exchange. Trading should begin 29 Oct.

Justiss Oil sells drilling unit

DI Industries said 16 Sept. it will buy most assets of the drilling unit of Justiss Oil Co. for U.S.$36 million. Included are 12 drilling rigs and related equipment.

Grincor to take stake in Griffin

Grincor has announced it will buy 60 percent of Griffin Shipping Holdings Ltd.

C.M.A. to be placed in receivership?

Societe Mistral, which owns 48.4 percent of Compagnie Maritime d'Affretement, has asked the Marseilles Tribunal of Commerce in France to place C.M.A. in receivership. As part of the request, it was claimed that C.M.A. needs capital of 165.35 million French francs/U.S.$27.680 million to 209 million francs/U.S.$35.0 million.

COSCO to restructure

China Ocean Shipping (Group) Co. will replace central management of its 600 ships of some 17 million deadweight tons with four regional firms by the end of the year.

Thailand to form tanker fleet

Thailand has announced it is planning to establish a tanker fleet through a joint venture with China Shipping Line. The Thai Petroleum Authority will have 35 percent, China Shipping Line will have 15 to 20 and the rest will be with private investors. At least 43 million Thai baht/U.S.$1.2 million is needed in capitalization. Operations would begin with two 80,000-dwt tankers.

Three groups to form icebreaker/offshore supply operator

Bylock & Nordsjofrakt, the Swedish National Maritime Administration and Viking Supply Ships A/S are starting a venture to operate icebreakers and offshore supply vessels.

Stockholm Stock Exchange examining purchase of ICB Shipping shares

The Stockholm Stock Exchange began an investigation 18 Sept. into how Frontline Ltd. acquired 21.5 percent of the stock of ICB Shipping A.B. Frontline earlier offered three shares for every share of ICB Shipping or 111.67 Swedish krona/U.S.$14.65 for up to 25 percent of ICB Shipping's share capital. Since the announcement of the takeover, ICB Shipping shares have been trading about 115 kroner/U.S.$15.09, and under Swedish law, the buyer cannot purchase shares for a greater amount than offered to all shareholders equally. Frontline has since revised its offer and instead will pay 115 kroner/U.S.$15.09 for all outstanding shares of ICB Shipping, valuing ICB Shipping at 3.05 billion krona/U.S.$400 million. The deal is subject to control of at least 90 percent of the shares.

Hong Kong to fund training of Chinese citizens

The Hong Kong government has allocated Hong Kong$10 million/U.S.$1.3 million to train Chinese citizens to serve aboard commercial vessels. The association hopes to combine a supply of personnel with Hong Kong's training facilities to alleviate a shortage of crewmembers for ships owned or operated by Hong Kong interests. The training will be carried out at the Seaman's Training Center in Tai Lam Chung.

OMI signs difinitive agreement to acquire Marine Transport Lines

OMI Corp. said 16 Sept. it has signed a definitive agreement to purchase Marine Transport Lines Inc. by spring. As part of the deal, OMI will spin off, as a tax-free distribution to shareholders, a subsidiary that will own and operate OMI's assets outside the United States. The subsidiary will retain the OMI name and will be managed by the current management. The U.S. operations of OMI will be combined with Marine Transport Lines and will operate under the Marine Transport Lines name. When completed, current OMI shareholders will have two-thirds of the new Marine Transport Lines and almost all outstanding shares of the new OMI. Shareholders of the old Marine Transport Lines will have about one-third of the new firm of the same name. The deal is subject to a ruling by the U.S. Internal Revenue Service and approval by current OMI shareholders. Marine Transport Lines is the oldest U.S. ocean shipping company.

Orient Bulk Shipping joins United Bulk Carrier International

Orient Bulk Shipping has become the third partner in United Bulk Carrier International, which was set-up by Premuda Bulk and Safbulk. The partnership has six 70,000-dwt ships.

Hansa Mare Reederei forms Dutch company

Hansa Mare Reederei GmbH & Co. KG has formed a Dutch unit with two 2,960-TEU and two 4,000-TEU capacity ships.

Fred Olsen to spilt up?

A court case that may spilt apart the operations of Fred Olsen began in Drobak, Norway, on 18 Sept. The firm has 15 billion Norwegian krone/U.S.$2 billion in assets. Petter Olsen and his Petter Olsen Trading have sued Fred Olsen and Fred Olsen Trading. Fred Olsen Trading and Petter Olsen Trading each own 49.99 percent of the Fred Olsen business through Quatro A/S and Cinco A/S, with Fred Olsen Trading owning the rest. Petter Olsen contends that Fred Olsen has too much control in decisions and has requested that the businesses be wound up.

Swan Reefer plans

Swan Reefer will buy seven refrigerated ships and raise 225 million Norwegian krone/U.S.$31.4 million through a share issue on the Oslo Stock Exchange. Based in Oslo, Norway, Swan Reefer was formed recently from the refrigerated fleets of Actinor Shipping A/S and Swan Shipping A/S. By purchasing ships of 9,000 cubic meters/300,000 cubic feet, Swan Reefers will have 15 ships.

Sierra Leone gets "war risk" rating

Sierra Leone has been placed on the excluded states list for insurance. The "war risk" status means that additional premiums will be necessary for vessels in the area.

Samudera Shipping Line to offer stock

Samudera Shipping Line will offer 128 million shares on the Singapore Stock Exchange from 19 Sept. to 30 Sept. The 420.65 million shares represent 30.4 percent of the line and will bring Singaporean$48 million/U.S.$32 million.

Seafresh Fisheries gets licenses for Fiji operations

Seafresh Fisheries (New Zealand) Ltd. has announced its new Fiji subsidiary has received 31 fishing licenses and will begin limited operations later this year.

Underwriting center open in Singapore

A new marine insurance underwriting center aimed at attracting hull insurers opened on 12 Sept. in Singapore.

Parise sentenced

A U.S. federal judge sentenced Louis Parise Jr. on 10 Sept. to 30 months in prison. A former official with the National Maritime Union, Parise was convicted in January of a racketeering scheme. He has been released on bail pending an appeal.

Preussag approves Hapag-Lloyd deal

The directors of Preussag AG have approved a deal in which the firm will control 99.2 percent of Hapag-Lloyd AG in a deal worth 2.78 billion German marks/U.S.$1.53 billion. Preussag will pay 1,040 marks/U.S.$573 per share to seven shareholders. The German government's Bundeskartellamt agency and the European Commission must still approve. Preussag also said it would seek the remaining 0.8 percent of Hapag-Lloyd.

New administrative law center open in Baltimore

The U.S. Coast Guard has opened its Administrative Law Judge Docketing Center in Baltimore. From the new center, the Coast Guard will be able to file complaints electronically and the respondent can respond the same way, or by written documents that are scanned into the system. Once an administrative law judge makes a ruling, its entered into the computer and paperwork is automatically generated for those involved. The center schedules all assignments to judges as well as trials.

XTRA International starts Internet site

XTRA International Ltd. has opened its Internet site, XTRA International Web Information Network, at www.xil.com. Users can check the status of containers, review specifications and locations of equipment, request bookings and verify replacement value of lost containers. There are also depot and personnel directories and a listing of Internet sites.

Transamerica Leasing enhances on-line capabilities

Transamerica Leasing Inc. has begun the second phase of its Internet service, called Tradex Online, at www.tradexonline.com. It allows for booking and termination requests, equipment specifications and locations and access to the Greybox Interchange Service program. The program allows monitoring of equipment situations through reports by 170 shipping companies at about 300 Greybox locations worldwide.

O.O.C.L. first international carrier to get I.S.O. in Thailand

Orient Overseas Container Line has become the first international carrier to receive I.S.O. cerification in Thailand. Lloyd's Register Quality Assurance Ltd. recently certified OOCL Thailand Ltd.

OMNI North America gets I.S.O. 9002 certification for service

OMNI North America, a freight forwarder, has received I.S.O. 9002 certification for its third party services for bulk shipments aboard tankers. The certification was given by Bureau Veritas Quality International. OMNI North America is reportedly the only U.S. third party tanker service firm so designated.

World passenger ships in 1997

Dr. Marion Hockmann of the Institute of Shipping Economics and Logistics in Bremen, Germany, has released a survey of passenger ships. For the first time in 15 years, the number of ships has decreased but the number of berths increased. There are 169,000 berths at present compared to 166,000 last year, with 213 ships instead of 222. Seven ships were added and 16 withdrawn from service between 1996 and 1997. In 1996, total passenger ship tonnage was 5.364 million gross tons, for an average of 24,000-gt per ship and 750 passengers. This year, ships total 5.580 million gross tons with the average ship 26,000-gt and 800 passengers. The number of ships between 1,000-gt and 5,000-gt decreased 10 to 31, but five ships betwen 60,000-gt and 80,000-gt entered service. The Bahamas, Panama and Liberia are the most popular registries, with 65.3 percent and 118 ships of 109,949 berths. Twenty more passenger ships will be added this year with 41,676 berths. Carnival Corp. is the largest passenger ship owner with 33 vessels of 1.443 million gross tons and 39,824 berths. Next is Royal Carribean International with 17 ships of 1.095 million gross tons and 30,074 berths. In third is P&O Cruises Ltd. with 14 ships of 621,000 gross tons and 15,898 berths.

ROUTES AND SERVICES

F.E.F.C. unit, Far East-Middle East to raise container rates

The Japanese unit of the Far East Freight Conference will increase its rates for containers moving between Europe and Japan on 1 Oct. The Japan/Europe Freight Conference will raise rates U.S.$75 per TEU and U.S.$150 per FEU. Also, rates for containers from the Far East except Japan to the Middle East except Iran will increase by the same amounts on the same day.

Conferences change C.A.F., bunker tariffs on 1 Oct.

The Trans Atlantic Conference Agreement has announced Currency Adjustment Factors for three routes. They will come into effect on 1 Oct. and last until 31 Dec. Containers moving to continental Europe and Poland will have a C.A.F. of 20 percent instead of 23 percent, while cargo for Scandinavia and the Baltic Sea except Poland will be 6 percent instead of 8 percent. Containers for Ireland and the United Kingdom will have a 7 percent C.A.F. The Trans-Pacific Westbound Rate Agreement will change its C.A.F. on 1 Oct. from 38 percent to 43 percent. The American West African Freight Conference will raise its tariff bunker adjustment factor on 1 Oct. The rate will be U.S.$45 per TEU, U.S.$90 per FEU and U.S.$4 per weight measurement.

"K" Line to operate Asian service alone

Kawasaki Kisen Kaisha Ltd. will begin a route between Japan and western Australia on 8 Oct. "K" Line is taking over the route after three other lines (Australian National Line, Knutsen OAS Shipping A/S and Nippon Yusen Kaisha or NYK Line) withdrew from joint operations. Five containerships will operate on a weekly frequency, caling every two weeks. Calls will include the Japanese ports of Moji, Nagoya and Yokohama; Thailand; Singapore; Jakarta, Indonesia; and Fremantle, Western Australia. A connection between Singapore and Port Klang, Malaysia, will operate twice a week.

KNSM Kroonburgh replaces vessel on Antwerp to Morocco service

Starting next month, the Claudia C (4,216-dwt, 245-TEU capacity dry cargo ship built in 1994, operated by Alster Ship Chartering) will replace the Gerlin (Norwegian-registry 2,560-dwt dry cargo ship built in 1977, operated by K. Arnesen Shipping A/S) on KNSM Kroonburgh's container service between Antwerp, Belgium, and Casablanca and Tangier in Morocco. Calls are also made at Cadiz, Spain, and Gibraltar.

Andrew Weir Shipping places new ship on route

Andrew Weir Shipping Ltd. has added the IPEX Emperor to its India-Pakistan Express Service. There are now seven ships on the route.

Holland America Line Westours cancels two cruises

Holland America Line Westours Inc. has canceled two Mediterranean cruises starting 6 Oct. and 18 Oct., due to a delay in delivering the Rotterdam VI (6,000-dwt passenger ship). The ship is being built by Fincantieri Cantieri Navali Italiani SpA. The cancellation is expected to affect Carnival Corp. by up to U.S.$6 million in the fourth quarter.

Siberian-bound cargo rates cut

Transsib, the railway across Siberia, Russia, has announced that port charges for ships carrying cargo for transport by the railway have been cut in half. In addition, rail tariffs for containers have been reduced by 10 to 30 percent for cargo brought by ships. As a result, Far Eastern Sea Shipping Co. and the Port of Vostochny have cut their charges 10 percent. To take advantage of the new rail rates, cargo must meet a time limit.

Black Sea ferry service starts

A Black Sea ferry service calling at Poti, Georgia; Novorossiysk, Russia; and Burgas, Bulgaria, has begun operating. Up to 70 trailers can be carried.

New Ensenada - Long Beach barge service

Newport Petroleum has begun a weekly container service using barges between Long Beach, Calif., and Ensenada, Mexico.

New York ferries suffer propulsion failures, service is limited

Two New York ferries have suffered propulsion failures recently that have caused a limited schedule to be put in place. Last month, a ferry lost power and returned to Staten Island. On 2 Sept., the 6,000-passenger S.I. Newhouse had a minor oil leak and was taken out of service. Built in 1981, it had been in service for less than a month after a week of repars to navigational equipment. On the same day, an auxiliary generator failed aboard another ferry. Service has been cut to three vessels an hour instead of four, since the 6,000-passenger Andrew J. Barbieri remains in dry dock for repairs that have not yet been carried out. An inspection certificate on the vessel expired in June but the original maintenance contractor was disqualified and Caddell Dry Dock, in Staten Island, was hired 1 Aug. But it only has one dry dock large enough to handle that size of vessel. A 1,200-passenger vessel has been put in place to compensate.

San Francisco Bay ferries make changes to deal with B.A.R.T. strike

On 15 Sept., the Alameda/Oakland Ferry Service in San Francisco Bay added seven weekday departures from the eastern area of the bay, almost doubling its service. The action came following an increasing passenger levels due to a strike that closed Bay Area Rapid Transit. Vessels will leave Alameda and Oakland every 30 to 35 minutes between 0600 and 0915. Two additional sailings will be added during the evening, for a total of seven vessels departing the San Francisco Ferry Building every 40 minutes between 1710 and 2020. Finally, ferries will dock in Oakland at the Clay Street Terminal instead of the pier at Broadway. During the strike, the number of passengers using the ferries increased six times to 9,200 daily. Larger vessels were added as a result but with the changes effective 15 Sept., the service's high-speed catamarans have returned. There are now 19 weekday departures from Oakland and Alameda and 17 from San Francisco. Weekend ferries will return to their normal schedule shortly, with six East Bay departures and six San Francisco Departures.

Royal Carribean International to ban smoking at meals

Royal Carribean International announced on 12 Sept. that it will ban smoking at meals on its ships. The ban will be in place on all ships by 12 Nov.

CANALS, PORTS AND STRUCTURES

Western U.S. ports idled by I.L.W.U. action

At least 40 ships were idled for eight hours the night of 8 Sept. after the International Longshore and Warehouse Union extended its monthly stop-work meeting at ports in the western United States. The meeting was to have been held during the second shift on 11 Sept., but was moved and extended after a request by the International Transport Workers' Federation to coincide with a protest in Liverpool, England. In September 1995, Mersey Docks and Harbour Co. fired 329 Liverpool dockworkers after they refused to cross a picket line. In a show of solidarity, the federation called on labor organizations to stage protests. In addition, the I.L.W.U. called attention to terminal privatizations and the use of "casual workers," which the union says has driven down wages and benefits. At Long Beach and Los Angeles in California, at least 32 ships were affected. Six vessels were idled in the San Francisco Bay area and at least two at the Washington ports of Seattle and Tacoma.

Strike by Norwegian oil workers spreads

At midnight 10 Sept., about 100 Norwegian oil workers aboard three of Statoil's offshore units struck, joining personnel from several other structures who started a strike 24 Aug. In early July, negotiations over working conditions and pensions between a Norwegian owners association and the Federation of Offshore Workers stalled. The latest strike action was taken aboard the Polysaga floating production, storage and offloading vessel at the Yme field, the platform Transocean Searcher at the Asgard field and the West Epsilon platform at the Sleipner B field. Workers are also on strike at the Polycrown "flotel," the Byford Dolphin platform, the Transocean Prospect platform, the West Delta platform and the Polar Pioneer platform.

Santos concession awarded

A 25-year concession to operate the Port of Santos, Brazil, has been awarded for 328 million Brazilian reals/U.S.$300 million, 171 percent above the base price. The winners are a group including Multiterminais, Opportunity Leste's Previs and Sistel pension funds and 525 Participacoes.

Evergreen Marine to build at Gioia Tauro

Evergreen Marine Corp. (Taiwan) Ltd. is reportedly planning to build its own container transshipment facility at Gioia Tauro, Italy. It would handle 400,000 TEUs annually.

Vietnam asks Asian Development Bank to stop port development

Vietnam, has asked the Asian Development Bank to abandon plans to aid a U.S.$310 million port development at Ho Chi Minh City. Instead, the country wants to persue a smaller U.S.$77 million upgrade.

Lockheed Martin to supply V.T.S. system for Qiongzhou Channel

Lockheed Martin Ocean, Radar & Sensor Systems of Lockheed Martin Corp. has become the first U.S. firm to sign a contract to supply China with a vessel traffic service system, it was announced 18 Sept. Valued at about 25 million Chinese yuan/U.S.$3 million, the contract is a result of an April agreement by Lockheed Martin to work with the 28th Research Institute of the Chinese Ministry of Electronics Industry to jointly persue development, production and installation of V.T.S. systems in China. The first such contract is for a V.T.S. for use in the Qiongzhou Channel, separating Hainan Island from mainland China. The system will be built in Syracuse, N.Y., and will be sent to the Hainan Harbor Superintendency Administration.

Korea Telecom announces ship-to-shore equipment selection

Phoenix Wireless Group and 3dBm Corp. will provide Korea Telecom with a Shore and Marine Automatic Telephone System or SMAT-260. The ship-to-shore communications system will operate in the 260 megahertz band with a Phoenician mobile switching center using AMPSTAR equipment and a base transceiver station with subscriber terminals. Sungmi Telecom Electronics will install the system for Korea Telecom. In the first phase, six stations and the switching center will be set-up in Pusan, South Korea, while a second phase will expand the system's coverage. Korea Telecom plans to serve all coastal area of South Korea by 1999 with at least 10,000 customers.

Agreement for Wuhan venture

Pacific Ports Co. Ltd. has made a preliminiary agreement to form a joint venture that will develop and operate six berths at Wuhan, Hubei Province, China. A feasibility study will be conducted.

Zhujiang to expand passenger facilities

The Port of Zhujiang in Guilian, Guangxi Zhuang Autonomous Region, China, has begun a 10 million Chinese yuan/U.S.$1.2 million expansion. Funding is being provided by Guilin Wuzhou Tourism Co. Ltd., the port's owner, and a Taiwanese firm. Several facilities will be refurbished or expanded, including work on a terminal, a tourism information center, restaurants and bars and a 1,000-square-meter/1,200-square-yard parking lot. The new facility will be able to handle 1.5 million people annually.

Nhava Sheva International Terminal formed

Nhava Sheva International Terminal, which will build and operate a container terminal near Mumbai, India, has been formed. P&O Ports Australia Ltd. owns 49 percent, Konsortium Perkapalan Bhd. has 46 percent and DBC Port Management Services has 5 percent. There will be a 600-meter/2,000-foot long berth with post-Panamax cranes and rubber-tired gantries. Half of the berth should be open by early 1999 with the other half in 2000. It will handle 600,000 TEUs annually.

Protest starts at Cairns

The Maritime Union of Australia has set-up picket lines at the entrances to the Port of Cairns, Queensland, Australia. International Purveyors, which has a facility at the port, has hired non-union dockworkers to handle copper being carried by ships from Irian Jaya, Indonesia. International Purveyors also hired half its planned workforce. It is the first port business in Australia to use non-union individual contracts to hire personnel under recent legislation. The International Transport Workers' Federation has given its support to the Maritime Union of Australia and has offered to take action. Reportedly, some protests have already been made in South Africa.

Dockworkers join striking pilots at Los Angeles

A strike by pilots at the Port of Los Angeles gained new momentum last week when dockworkers of International Longshore and Warehouse Union Locals 13 and 63 joined pilots at the picket lines at the pilot house and the port headquarters. Judge Victor Barrera of California Superior Court issued a temporary restraining order against the dockworkers late 12 Sept., which prohibits them from "molesting, assaulting, pushing, elbowing, shouldering or in any other manner unreasonably and intentionally physically contacting the person or clothing of any city employee who transports a port pilot, any port pilot, dispatcher or videographer." Another hearing is to be held 9 Oct. The pilots, members of I.L.W.U. Local 68, went on strike 11 July as part of a wage dispute. Since then, three pilots have returned to work to assist two management pilots. In addition to joining the striking pilots, the locals representing the dockworkers gave U.S.$120,000 to the pilots' strike fund. As of 15 Sept., the dockworkers have also begun protesting at a port construction and maintenance building.

Hurricanes close Mexican ports

The Mexican ports of Cabo San Lucas, La Paz, Mazatlan, Puerto Vallarta and San Carlos were closed 13 Sept. due to Hurricane Linda. High winds and seas of 2.4 meters/eight feet were reported, with some coastal flooding. The approach of Hurricane Nora closed the Mexican ports of Acapulco and Lazaro Cardenas on 18 Sept.

Newcastle closed to ships for two weeks

The Port of Newcastle, New South Wales, Australia, declared a two-week moratorium on ship arrivals on 15 Sept. It is hoped the action will eliminate at least half of the 45 ships waiting to enter the port.

Israeli port workers stage one-hour protest

The afternoon of 4 Sept., about 2,100 port personnel at the Israeli ports of Ashdod and Haifa stopped working for an hour. The Histadrut labor federation called the action to protest planned economic reform by the government.

Coalition to oppose port development in India

The People's Alliance for the Implementation of the Law said 12 Sept. it will oppose a plan by P&O Ports Australia Ltd. to build a U.S.$1 billion port at Dahanu, India. It would have 29 berths and a draft of 15 meters/49 feet, with operations to begin in 1999. Twenty-two groups, including environmental organizations and fishing unions, say that the port would violate Indian coastal protection laws and several Indian Supreme Court orders that ban industrial activity around Dahanu.

Dover to remain public

The British government has announced that the Port of Dover, England, will not be privatized, as was mandated by the British Ports Act of 1991.

PSA to be corporatized

The Port of Singapore Authority will become PSA Corp. on 1 Oct. Eventually, shares will be offered in the new business. The corporatization is part of efforts to make the port more competitive.

SHIPYARDS AND EQUIPMENT

Ingersoll-Rand to buy Thermo King

Ingersoll-Rand Co. said 15 Sept. it will buy Thermo King Corp. from Westinghouse Electric for U.S.$2.56 billion. Pending necessary approvals, the deal is expected to close in the fourth quarter. Thermo King designs and manufactures transport temperature control systems that, among many applications, are used on refrigerated containers. Thermo King had 1996 sales of U.S.$996 million and a net income of U.S.$141 million. It has manufacturing operations at six sites in North America as well as Brazil, the Czech Republic, Denmark, Ireland and, through ventures, China and Spain. It employs 4,700 people and has a 40 percent market share worldwide for temperature control.

U.S. Senate committee approves most legislation on O.E.C.D. plan

The U.S. Senate's Finance Committee has unanimously approved most of the legislation regarding the Organization for Economic Cooperation and Development's plan to eliminate shipbuilding subsidies. The action allows adoption of the plan by the United States to proceed. Included in the U.S. version is a provision that allows the United States to withdraw from the plan if other countries challenge the Jones Act.

New Shanghai shipyard

China is planning to build a shipyard in the eastern Pudong district of Shanghai, China. It will be the largest such yard in China when completed.

Newport News Shipbuilding to take third quarter charge due to tanker design

Newport News Shipbuilding Inc. said 18 Sept. that it will take a charge in the third quarter of U.S.$57 million relating to its Double Eagle product tankers. Construction schedules for five contracted ships have been extended. The charge against earnings for the quarter reflects the completion of the ship's design and related plans, as well as increases in material and subcontractor costs. Most of the increases involve design differences between the international and domestic versions of the design. The charge is expected to cause earnings before interest and taxes of about U.S.$15 million.

Ishikawajima-Harima Heavy Industries announces new anti-rolling device

Ishikawajima-Harima Heavy Industries Co. Ltd. has developed a motorized device to minimize rolling of ships at sea. Using a pendulum motion, tests of the device aboard the Mirai, which is being built for the Japan Marine Science and Technology Center, were conducted this summer near the Izu Islands in Japan. The device reduced rolling from around seven degrees to three to four degrees. During a typhoon in the Bungo Channel between the Japanese islands of Kyushu and Shikoku, the Mirai was able to navigate in seas of 15 meters/49 feet. The anti-rolling equipment has land applications as well. Seven of the units will be installed in buildings, with four to be integrated into a condominium complex in central Tokyo being built by Mitsui Fudosan Co. Ltd.

Coflexip Stena Offshore, Kockums to supply turrets

Coflexip Stena Offshore and Kockums A.B. with its subsidiary GVA Consultants A.B. signed an agreement 15 Sept. to form a joint venture to supply turrets for use aboard floating production, storage and offloading vessels. The venture will supply turnkey turret systems, including risers and a mooring system.

More on IHC Caland bid for shipyard

IHC Caland's offer to buy Van der Giessen - de Noord B.V. is for U.S.$39.60 per share. IHC Caland, best known for building dredging vessels, is reportedly attempting to diversify through the purchase. Van der Giessen - de Noord will retain its name and management, but workers will shift between the two.

Knutsen OAS Shipping orders tanker from Sestao

Knutsen OAS Shipping A/S has ordered a 300,000-dwt ice-strengthened tanker from Sestao. It will be built at Bilbao, Spain, for delivery in September 1999 and will have a dynamic positioning system. Reports suggest a price of U.S.$80 million.

New tanker operator to buy V.L.C.C.

A joint venture of Argonaut A.B., Nordstrom & Thulin A.B. and World Wide has been formed. The tanker operator has announced its intent to acquire a new double-hulled 300,000-dwt tanker built by Daewoo for delivery in the first half of 2000. The ship will cost U.S.$155 million. World Wide has 50 percent of the venture, Argonaut has 40 and Nordstrom & Thulin the rest.

Fednav International places four-ship order with Oshima Shipbuilding

Fednav International Ltd. signed a contract with Sumitomo Corp. in Tokyo on 18 Sept. for four bulk carriers. They will be built by Oshima Shipbuilding Co. Ltd. at Oshima, Japan, for delivery in 1999 and 2000. In addition to acting as Fednav International's contractor, Sumitomo will be a partner with Fednav International in owning the vessels. Each ship will have six cargo holds and three 30-ton cranes. The bulk carriers are designed for navigating the St. Lawrence Seaway.

Restis orders four bulk carriers

Restis, which has focused on refrigerated ships, has ordered four Panamax bulk carriers from a Taiwanese shipyard for U.S.$116 million.

German owners order containerships from Kvaerner Warnow-Werft

Kvaerner Warnow-Werft GmbH will build two 2,468-TEU capacity containerships for Gerd Ritscher KG and Dietrich Tamke for 142 million German marks/U.S.$80 million. The geared vessels are of the CV2500 design and will be 208 meters/682 feet long with a beam of 29.8 meters/97.8 feet. Each has will have three 45-ton cranes and will be delivered in 1999.

Stolt-Nielsen places further orders with Danyard

Danyard A/S has received an order for two 37,000-dwt chemical tankers from Stolt-Nielsen with options for two more. Stolt-Nielsen has now ordered nine such ships from the yard, with four delivered so far. The latest two will be delivered in June 1999 and December 1999 with the two options possible in 2000.

Sea Containers takes options for two more SuperSeaCats

Sea Containers Ltd. said 16 Sept. it has taken two options for SuperSeaCat ferries to be built by Fincantieri Cantieri Navali Italiani SpA for delivery in 1999. Sea Containers already has taken delivery of two such vessels from the shipyard and the latest two will cost U.S.$60 million. The second two will differ from the first in modifications to loading capability, better bow thruster immersion and a larger and repositioned retail shop. One will operate between Liverpool, England, and Dublin, Ireland, while the other will sail between Stranraer, Scotland, and Belfast, Northern Ireland. The vessels are 100 meters/330 feet long and can carry 774 passengers on two decks and 175 vehicles. Each is capable of 38 knots.

Italian shipbuilder gets tanker order

Nuovi Cantieri Apuania SpA has received a U.S.$40 million order for a tanker.

French shipyard will build seismic survey vessel

Chantiers de l'Atlantique has received an order for a seismic survey ship from Sismique S.A. The 6,150-dwt vessel of 100 meters/330 feet will be delivered in March 1999 for operation by CGG Marine.

Reading & Bates to build, operate drillship for Statoil

Reading & Bates Corp. has received a contract from Statoil to build and operate a drillship. Statoil will pay U.S.$166 million for a period of at least two and a half years with options available for five years at a cost of U.S.$332 million.

LISNAVE to convert combination vessel for Falcon Drilling

Estaleiros Navais de Lisboa S.A. will convert the Coastal Golden (129,077-dwt combination ship built in 1979) to a drillship for Falcon Drilling Co. Inc. The U.S.$60 million deal does not include drilling equipment but does include options for two more conversions. The vessel will be renamed Peregrine VI and its classification society will be transferred from the American Bureau of Shipping to Det Norske Veritas. The work will take 15 months at the Mitrena Shipyard in Setubal, Portugal.

Smedvig in understanding with Unocal for drillship

Smedvig A.S.A. has signed a memorandum of understanding with Unocal Corp. to provide a deep-water drillship for the Gulf of Mexico. The SPU 550 would be converted, subject to certain conditions, to operate in 3,000 meters/10,000 feet. The vessel is jointly owned by Rasmussen Maritime Services A/S and Smedvig. On 1 Oct., Rasmussen Maritime Services' share will be transferred to Navion, in which Statoil has 80 percent and Rasmussen Maritime Services 20 percent. The SPU 550, a Tentech 700 design being built in Japan, will be delivered in November without drilling equipment. Should Smedvig's deal with Unocal be finalized, the vessel could start drilling by late 1998 or early 1999.

Baltic Ship Repairers to build patrol craft

In its first newbuildings, Baltic Ship Repairs will construct seven small inshore patrol craft for the Estonian government at Tallinn, Estonia. The shipyard hopes to build craft up to 50 meters/160 feet.

Aker McNulty to work on F.P.U.

Aker McNulty has won a contract to convert the floating production unit used at the Janice field in the North Sea. Some 400 to 500 jobs will be added at the shipyard in England.

Delivery of Sea Princess moved up

Princess Cruises Inc. has moved up the date for delivery of its Sea Princess (77,000-gt, 5,710-dwt, 1,950-passenger ship) which is being built by Fincantieri Cantieri Navali Italiani SpA. The ship will arrive in October 1998 instead of spring 1999. It will sail in the Carribean until May 1999. The ship cost U.S.$300 million.

Keppel FELS ordered confirmed

Keppel FELS has confirmed it will build a Universal-class jack-up rig for Santa Fe International Corp.

EVENTS, INCIDENTS AND OPERATIONS

Bombing of tanker in Sierra Leone kills two

On 11 Sept., a Federal Nigerian Air Force aircraft bombed the Napteco 1 (Sierra Leone-registry tanker) at Freetown, Sierra Leone, according to witnesses. The chief engineer for Sierra Leone's National Petroleum Co. and a second engineer were reportedly killed. The attack, at the Kissy fuel jetty in eastern Freetown, badly damaged the ship, which was waiting for repairs.

Smit International workers being held

Thirty-three employees of Smit International are being held at Bandar Imam Khomeini, Iran, by the Iranian Revolutionary Guards. They have been held since 7 Sept.

Right whale trapped in Bay of Fundy fishing net

A right whale was found caught in a fishing net 16 kilometers/9.9 miles off Digby, Nova Scotia, Canada, the afternoon of 12 Sept. by East Coast Ecosystems, a group of scientists studying the whales. Orphan Andy, a 13-meter/43-foot, 7-year-old male, was reportedly in poor health and has been trapped for some time. An initial rescue attempt was able to remove 143 meters/469 feet of nylon fishing gear, but about 100 meters/330 feet of line remains around the whale's mouth. A radio transmitter and floats were attached to the net so the whale could be tracked and late 13 Sept., the whale was about 70 kilometers/43 miles off Yarmouth, Nova Scotia. The unusual act of covering 100 kilometers/62 miles that quickly suggests that the whale may be desperately trying to escape the gear. The transmitter is only receivable eight hours per day and will last six months. At last report, the whale was about 90 kilometers/56 miles southwest of Yarmouth. There are less than 300 right whales.

U.S. Navy ship assists crewmember of bulk carrier

A crewmember aboard the Formosa Trident (Maltese-registry 81,783-dwt bulk carrier built in 1978, operated by Krupp Seeschiffahrt) was evacuated 14 Sept. by a helicopter based aboard the U.S. Navy's Oliver Hazard Perry-class Guided-Missile Frigate U.S.S. Samuel B. Roberts (FFG 58). The crewmember had difficulty breathing and a weak pulse and was flown from the frigate to the the naval hospital in Roosevelt Roads, Puerto Rico. The crewmember is in stable condition.

Six evacuate oil platform during surge tank fire

On 9 Sept., a 2,000-barrel crude oil surge tank aboard an oil production platform in the Gulf of Mexico, off the Mississippi River's Main Pass in Louisiana, caught fire. The six workers aboard shut down the oil well before being evacuated. The fire burned itself out though a sheen eight kilometers/five miles long was seen on the water.

Container of cyanide dropped into Spanish harbor

A container loaded with 21.6 metric tons of cyanide fell into the harbor at Algeciras, Spain, on 10 Sept. while being unloaded from a ship.

U.S. Coast Guard seizes catch off Massachusetts

The catch of the Invincible (U.S.-registry 26-meter/86-foot scallop vessel homeported at New Bedford, Mass.) was confiscated the night of 13 Sept. by the U.S. Coast Guard after the vessel was found in a closed fishing area, 85 kilometers/53 miles southeast of Nantucket, Mass. The Coast Guard's "Island"-class Patrol Boat U.S.C.G.C. Adak (WPB 1333) found the Invincible inside the Nantucket Lightship closed area about 2300. The catch of monkfish and scallops has an estimated value of U.S.$5,000.

Canadian fisherman arrested aboard tuna boat

Royal Canadian Mounted Police arrested a man 17 Sept. after he made threats with a shotgun during a fight over tuna fishing tags. About 0140, a complaint was received regarding a fishing vessel moored at the Eastern Passage Fishing Wharf in Cole Harbour, Nova Scotia, Canada. The man was reportedly shouting with other people over the tuna quota system tags and was reportedly intoxicated. Police boarded and arrested the man and seized a 12-gauge shotgun and several shells.

Vessel barred from carrying passengers from American Samoa

On 6 Sept., an investigation on American Samoa found a fishing vessel had arranged to transpot 40 persons to Taiwan. The U.S. Coast Guard's Marine Safety Detachment in Pago Pago issued a Captain of the Port order to the vessel's owner and master, stating it could not leave port with passengers.

Maryland closes another river

Maryland has closed 10 kilometers/six miles of the Chicamacomico River, which empties into Chesapeake Bay, after fish in the area were found with Pfiesteria piscicida, a toxic microbe. An area of the Pocomoke River, a section of King's Creek and the Manokin River have also been closed. The latest problem was noted late 13 Sept. and the river section was closed 14 Sept. Maryland Gov. Parris N. Glendening called a meeting of regional governors this week to address the issue.

Update on the Cordiality

The Cordiality (Panamanian-registry 20,284-gt, 34,873-dwt. 200-meter/656-foot motor bulk carrier built in 1979, owned and operated by COSCO (Hong Kong) Shipping Co. Ltd.) was attacked by members of the Liberation Tigers of Tamil Eelam on 9 Sept. off Pulmoddai, Sri Lanka. It sailed from Hong Kong and was to sail to Rotterdam, the Netherlands after loading ilmenite. An ensuing fire severely damaged the ship's accomodations and engine room. Sri Lanka Navy vessels battled about 15 LTTE boats for three hours following the attack. Two Sri Lanka Army soldiers guarding the ship and five civilian workers were killed during the LTTE attack and the ensuing fight killed 25 guerrillas and sank at least four boats. Five crewmembers of the 32 aboard are missing.

VESSEL TRANSFERS

Star Cruise to buy Hapag-Lloyd Kreuzfahrten's Europa

Star Cruise Sdn. Bhd. will buy the Europa (37,012-gt, 6,506-dwt, 600-passenger ship built in 1981) from Hapag-Lloyd Kreuzfahrten GmbH for U.S.$75 million. The 21-knot ship will be chartered to Hapag-Lloyd Kreuzfahrten until April, then refurbished and renamed MegaStar Asia in mid-1999 for service in Asia and the Pacific Ocean. Hapag-Lloyd Kreuzfahrten will have a new ship built to replace it.

Ugland Nordic Shipping buys four ships

Ugland Nordic Shipping is buying four ships for U.S.$113 million. The Svenner (Norwegian-registry 107,000-dwt tanker built in 1997) with be purchased for U.S.$45 million along with the Biakh and the Brali, Norwegian-registry tankers built in 1985 and each of 48,581-dwt. The Biakh will be bought for U.S.$18.2 million and the Brali for U.S.$19.2 million. All three ships are owned by L. Gill-Johannesen A/S and Seabulk A/S. The other ship is the Sarita (124,472-dwt tanker built in 1986) which will cost U.S.$30.6 million.

Norwegian Cruise Line to operate Crown Majesty

Norwegian Cruise Line Ltd. will operate the 800-passenger ship Crown Majesty, owned by Crown Dynasty Inc. of Effjohn International. The ship is currently operated by Cunard Line Ltd. in Alaska and will be transferred 29 Sept. after a drydocking in Vancouver, British Columbia, Canada. It will be renamed Norwegian Dynasty. The 20,000-gt ship was built in 1993.

Smedvig to operate West Epsilon for Statoil three more years

Smedvig A.S.A. has signed a letter of intent with Statoil to extend the contract of its petroleum platform West Epsilon. In 1993, Smedvig received a four and a half year contract for drilling in the Sleiper Vest field in the North Sea off Norway. Drilling began in July 1995. The agreement has now been extended three years after completion of drilling in the field in mid-1998. The West Epsilon will likely return in mid-2001. Retroactive to June, the day rate was increased. The contract for the remaining operations will be about U.S.$260 million.

VESSEL CASUALTIES

Two killed in engine room fire aboard L.P.G. carrier

Two South Korean citizens were killed at 0650 15 Sept. in an engine room fire aboard the Pioneer Louise (Liberian-registry 52,224-dwt liquified petroleum gas carrier built in 1976, owned and operated by Sanko Kisen K.K.) off the United Arab Emirates. The United Arab Emirates has begun an investigation into the deaths of Lee Yang Gi, 40, and Na Jong Won, 30. Gulf Agency Co., the ship's agent in the United Arab Emirates, reported 17 Sept. that the Pioneer Louise anchored off Khor Fakkan for repairs but did not have power. The ship was sailing from Yanbu, Saudi Arabia, to South Korea.

General cargo ship listing off Japan

The Wasan (North Korean-registry 2,425-gt general cargo ship) ran aground on sand 16 Sept. in high winds at 31 degrees 24.3 minutes north, 130 degrees 01.78 minutes east, off Shibushi, Japan. The ship was sailing from Nampo, North Korea, to Sakaide, Japan, with granite and straw. The ship developed a list and was abandoned by the crew.

Ro/ro grounding off Norway spills small amount of fuel

The Balduin (Norwegian-registry 10,320-dwt ro/ro built in 1975, owned by Bonheur and Ganger Rolf and operated by Fred Olsen & Co.) ran aground at 0100 17 Sept. in a gale south of Fredrikstad, Norway. Nine people of 27 aboard were airlifted from the ship, including a passenger and eight crew. The Balduin took on water and developed a slight list, but flooding was contained and three tugs arrived to stabilize the ship. The Balduin was sailing from Fredrikstad to Porsgrunn, Norway, with 160 cubic meters/208 cubic yards of oil and 20 tons of fuel. A minor fuel leak was reported.

Fire aboard ro/ro in the North Atlantic contained

The crew of the ASL Sanderling (Canadian-registry 14,741-gt, 15,175-dwt motor ro/ro built in 1977, operated by Oceanex Inc.) contained a fire aboard the ship 16 Sept. in the North Atlantic at 47 degrees 13 minutes north, 52 degrees 37 minutes west. The ship has been escorted to St. John's, Newfoundland, Canada.

Greek-registry ferry refloated after drifting

The Express Santorini (Greek-registry 4,140-gt, 1,189-dwt ro/ro ferry built in 1974, operated by Agapitos Express Ferries) drifted on 16 Sept. and ran aground near Mykonos, Greece. It had sailed for Mykonos from Syros, Greece. The ferry was refloated the same day and towed to Mykonos.

L.P.G. carrier runs aground in Scheldt River

The Eeklo (Kerguelen Islands-registry 23,519-gt, 28,993-dwt liquified petroleum gas carrier built in 1995, operated by Exmar N.V.) ran aground 14 Sept. at Buoy 51 in the Scheldt River near Hansweert after propulsion problems. The ship was refloated the same day with the assistance of 15 tugs and continued its voyage to the AGT-Kallo Terminal in Antwerp, Belgium.

Trawler aground near Monterey

The Vito C (22-meter/73-foot trawler) ran aground about five kilometers/three miles northeast of Monterey, Calif., early the morning of 11 Sept. It has 1,500 liters/400 gallons of diesel aboard and at last report, was to be salvaged by Parker Diving.

Norwegian-registry bulk carrier has engine failure

The Enterprise (Norwegian-registry 6,389-gt, 8,709-dwt bulk carrier built in 1985, operated by Jebsens Ship Management Holding A/S) had a main engine failure on 12 Sept. at 38 degrees 38 minutes south, 148 degrees 29 minutes east. The Enterprise was sailing to Port Kembla, New South Wales, Australia, and was taken in tow to Port Kembla by a tug.

Some 172 now reported killed in ferry sinking, 62 survivors

Official figures indicate that 172 persons were killed and 62 survived following the capsizing and sinking of the Fierte Gonavienne ("Pride of Gonave," 18.30-meter/60.00-foot long ferry built in 1943 with 5.49-meter/18.0-foot beam) off Montrouis, Haiti, early 8 Sept. Efforts to recover victims, led by 23 U.S. Navy personnel from Mobile Dive and Salvage Unit Two based in Norfolk, Va., have ended. The recovery was named Operation Restore Dignity. Recovery was carried out from the U.S. Coast Guard's Reliance-class Medium-Endurance Cutter U.S.C.G.C. Confidence (WMEC 619) and the Navy's Safeguard-class Salvage Ship U.S.S. Grasp (ARS 51). About 400 U.S. Army soldiers assisted along with the Army Transportation Corps' Runnymede-class Utility Landing Craft U.S.A.V. El Caney (LCU 2017). Haitian President Rene Preval said 12 Sept. that the government would pay for funeral costs for any more victims who are found and would pay some financial support to relatives. However, those that cannot be identifed will be buried in a mass grave and a national service will be held. A monument to those killed will be erected in Montrouis. As previously reported, some residents of the area believe that that other ferry operators turned to a voodoo priest to cause the sinking, as they were losing money to the more popular Fierte Gonavienne. On 11 Sept., relatives of victims of the sinking burned a boat of a competing ferry line. The owner, Tio Djo, has now fled to Miami and local residents reportedly attempted to lynch his wife.