Page 38: of Maritime Reporter Magazine (January 15, 1983)

Diesel Engines and Generators

FAIRBANKS MORSE

Model OP 38D8 1/8 1416 BHP 720 RPM 8Ve" x 10" Air start 2 cycle, 10 cylinder

WESTINGHOUSE GENERATOR 1250 KVA 100KW 720 RPM 450 volt 30-60 HZ 8PF

G.M. CLEVELAND DIESEL

Model 8-278A 495 BHP cont.

V-type 8 cylinder 8%"x10" 2cvcle Air start

With G.E. GENERATOR 350 KW cont. 437 KW 2 H I S. 600 RPM 450 volt 30-60 HZ

ENTERPRISE

Model DSG-6 650HP 650 RPM 6 cylinder 12"x15"

With WESTINGHOUSE GENERATOR 410 KW 250 volt, DC 650 RPM

Will sell with or without generator.

Other sizes available

Call or write for complete list

Exploration, Inc. 3121 S W Moody Ave

Portland, Oregon 97201

Toll free number: 1-800-547-9259

Oregon inquiries: 228-8691

Ask for Ace Logan or Darrel Watson

MarAd Approves Crowley

Acquisition Of Delta Steamship

Stock For $96 Million

The Maritime Subsidy Board and the

Maritime Administrator recently approved applications under which Crowley Maritime

International, Inc., a subsidiary of Crowley

Maritime Corp., will acquire all stock in

Delta Steamship Lines, Inc., from Holiday

Inns, Inc., for $96 million.

Approval of the sale/purchase agreement, along with certain approval requested by

Crowley under section 805(a) of the Mer- chant Marine Act of 1936, as amended, are subject to review by the Secretary of Trans- portation.

The actions of the board and the admin- istrator (dated Dec. 21, 1982) also require that Crowley and Delta unqualifiedly accept 11 conditions outlined in a board/adminis- trator order dated December 13, which, among other things, terminated from con- sideration Crowley's application for certain section 805(a) written permission in the event Crowley acquires all outstanding stock of Delta and Delta continues under its two present operating-differential sub- sidy contracts.

Section 805(a) prohibits subsidized oper- ators and their affiliates from participating in domestic shipping activities without writ- ten permission from MarAd. Crowley oper- ates vessels in the domestic trades.

In granting section 805(a) written per- mission, the administrator noted that, be- cause of the overall scope of Crowley's pres- ent operations, there is considerable shift- ing of its vessels to accommodate changing trade requirements, and operating flexibility is needed. For that reason, he said, efforts had been made to strike a balance among all interests concerned. Persuant to section 805(a), the administrator granted Delta written permission for Crowley, its subsid- iaries and affiliated or associated companies to own, operate, or charter: • up to a total of 160 tugs in the domestic trade. • no more than the number of its exist- ing tug/supply vessels or crewboats in the domestic trade so long as they are operated in oil exploration or drilling industry. • fifteen passenger vessels in the Califor- nia domestic service so long as the vessels do not exceed a capacity of 5,400 passengers. • up to a total of 175 barges in the trans- port of cargoes within and between the fol- lowing U.S. coastal areas with free inter- change of vessels among those areas, and with the maximum number and capacity of vessels employed in the areas at any one time to be:

No. of

Vessels Capacity

Columbia River barges 28 74,000 S/T

US Pacific-Hawaii dry barges 6 60,100 S/T

US Atlantic-US Gulf-Puerto Rico dry barges 11 41,500 S/T tank barges 6 666,000 bbls

Ro/Ro barges 18 4,050 trailers

US Pacific-Alaska rail car barges 8 396 rail cars dry barges 81 525,050 S/T tank barges 7 340,300 bbls

US Pacific dry barges 12 8,800 S/T tank barges 8 545,000 bbls

Under the 805(a) permission, Crowley, et al, may operate any of its U.S.-flag ves- sels which are no larger than any of its existing vessels in the transport of cargoes within and between any U.S. coastal area not indicated above on 10 voyages annually.

It also permits officers, directors, and executives of Crowley to be officers, direc- tors, and executives of Delta and directly or indirectly own a pecuniary interest in

Crowley, its subsidiaries and affiliated or associated companies. MarAd also noted that

Crowley will dispose of its interest in

Naviera Central and transfer a Panamanian- flag barge to the U.S.-flag.

The conditions to which Crowley and

Delta had agreed as outlined in the board/ administrator order of December 13 included the following: 1. Crowley does not request written per- mission under section 805(a) for any vessel owned by Delta to operate in any domestic trade whether exclusively in a domestic trade or part of a foreign trade voyage, whether owned by Delta or transferred by charter or otherwise to any other Crowley affiliate. 2. The domestic trade covenants set forth in Crowley's proposed Agreement Termi- nating Operating-Differential Subsidy Agree- ments by letter of November 8, 1982, shall remain in effect for five years from the closing. 3. Crowley agrees to be bound by all of the provisions of Delta's subsidy agreements and of the 1936 act applicable thereto and the rules and regulations prescribed pur- suant to the act. 4. Crowley shall keep the Capital Con- struction Funds (CCFs) of Delta and Crow- ley separate and shall not use any such

Delta funds for any purpose related to the domestic trade. 5. Crowley is not now applying to increase

Delta subsidized service, and in the future will not increase any subsidized service with- out applying for approval for same under section 605(c) of the 1936 act. 6. Crowley will dispose of its foreign-flag interest in Naviera Central prior to acquir- ing all the outstanding stock of Delta, but in any event no later than February 1, 1983. 7. Crowley will comply with all current collective bargaining agreements to which

Delta is a party. 8. Crowley will continue current union representation of Delta employees during the term of existing ODS agreements. 9. Crowley will maintain all pension and fringe benefits to Delta employees at levels required under existing collective bargaining agreements. 10. Crowley will not transfer equipment from Delta to another subsidiary or affiliate of Crowley for the purpose or with the effect of taking any action directly or indirectly to disrupt existing collective bargaining ar- rangements with Delta employees, lessen the level of employment of American-citizen sea- going personnel, or to reduce the level of pension contributions or fringe benefits to such personnel. 11. Neither Crowley nor Delta shall sell, scrap, assign, or otherwise directly or in- directly, transfer outside of Crowley, or per- manently or for a substantial time period discontinue operation of any Delta subsi- dized vessel without the prior written ap- proval of the administrator and board; no- tice shall be published of any such applica- tion and interested persons shall be afforded a reasonable time period to comment on such application.

In conjunction with the December 21 ac- tion approving the stock transfer, the board and the administrator denied petitions by two maritime unions to reopen the Crowley/

Delta proceedings. 42 Write 580 on Reader Service Card Maritime Reporter/Engineering News