Page 2: of Maritime Reporter Magazine (December 1981)

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MarAd Approves Farrell

Lines Ship Charter To

Military Seolift Command

The Maritime Subsidy Board has approved a Farrell Lines In- corporated request to charter the

Austral Lightning and Austral

Rainbow to the Military Sealift

Command (MSC) for two years with three ore-year optional ex- tensions.

The 820-foct, 29,800-dwt barge and container carriers were built with the aid of construction- differential subsidy by Avondale

Shipyards, Inc., New Orleans,

La., in the early 70s. Prior to the approval of this charter they had been operatec under operating- differential subsidy contract MA

MSE-352.

Under the terms of the board's approval the s lips will go off sub- sidy at the eid of the voyages preceding the charter and will continue to operate without sub- sidv until their redelivery from

MSC. 83 Vessel $3.4-Billion

Program Planned By

Japanese Shippers

Japan's six largest shipping companies plan to invest more than $3.4 billion in construction of 83 new cargo vessels during the next three years, according to the Japan development Bank (JDB).

The construction will consist mainly of carriers of non-oil en- ergy resources, presumably coal carriers needed to meet rising demands for the fuel from Japan- ese industries.

A major part of these new- buildings, it is anticipated, will be subsidized under the govern- ment-sponsorec annual ship con- struction programs, normal prac- tice in Japan.

Sources at Ihe JDB revealed that Nippon Yu sen Kaisha (NYK) plans to build 24 new vessels,

Mitsui O.S.K. Lines (MOL) an- other 23, Kawasaki Kisen Kaisha ("K" Line) 17 and Yamashita-

Shinnihon Steamship Co. (Y.S.

Line) another 13.

Bank officials disclosed that there were a number of grim as- sessments of the future for the

Japanese shipping industry which included a continued sluggish dry cargo market and rising bunker fuel costs.

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Reporter than in the No. 2 magazine.

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No. 23 Volume 43

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Oily Water

Separators 4