Page 19: of Maritime Reporter Magazine (September 1990)

key elements which would enhance the feasibility of the Phoenix World

City project in the U.S. and opera- tion under the U.S. flag, each of which depends upon the coopera- tion and support of Congress and

Federal agencies.

One key element concerns current laws which prohibit gambling on

U.S.-flag vessels. These statutes would have to be repealed for Phoe- nix World City to be fully competi- tive with foreign flag cruise ships, which are marketed primarily to

U.S. citizens and which trade out of

U.S. ports with casinos on board. A bill has already been introduced in the House, according to Mr. Rog- ers, which would repeal federal laws prohibiting gambling on board

U.S.-flag vessels. The bill is an out- growth of the growing interest of gambling on board riverboats, but the Phoenix World City would ben- efit—give considerable impetus to—greatly from any such legisla- tion.

A second element involves cur- rent laws governing tax deductions on business meeting and convention expenses. While the present law limits such deductions to U.S.-flag ships, it carries an additional re- quirement that all ports of call of such an American vessel must be in the U.S. A bill is being drafted to remove this additional requirement, which, in its present form, has the effect of favoring many foreign re- sorts over U.S.-flag vessels. To date, this has been largely academic since there are no U.S.-flag cruise ships operating in the international trade.

The third advantage rising from

U.S. construction and registry is the possibility of obtaining Federal Ti- tle XI guarantees, which would al- low for long-term, low cost financing for the construction.

If the Phoenix World City is built in the U.S., she would serve as a showcase for U.S. technology and products, and, if she were U.S. flag- ged, would provide work for Ameri- can mariners.

Furthermore, a U.S.-flagged

Phoenix World City will also pro- vide the nation with a significant defense and emergency capability.

As a hospital ship, she can be equipped to serve as a fully staffed and self-sufficient 9,000-bed hospi- tal with four separate clinic, exami- nation, treatment and operating fa- cilities covering over 57,000 ft2, gar-

Exhibit 1

Major Supply Contracts

In the Phoenix World City Construction

Product Estimated $ (in millions)

Main diesel propulsion machinery 30+

Electrical equipment (generators to light bulbs) . . . .136

Communications 10 +

Navigation systems 3 + 65,000 tons of steel NA

Elevators & escalators 16 +

Mainframe computers (excl. PC systems) 5 +

Software systems (incl. ship operations, staterooms, instructional) . . . . NA

Air conditioning 56 +

Chemical & related products . .100 + age space for 124 ambulances and other vehicles, and capable of serv- ing on station for two months at a time without replenishment.

In comparison, the Navy's newest hospital ships, the San Clemente

Class USNS Comfort and USNS

Mercy, are designed as 1,000-bed facilities.

As a troop transport, the ship would have a carrying capacity of over 24,000 troops, plus vehicles and supplies. She could thus transport a complete army division, on a fully self-sustaining basis, for 28 days and over a range of 14,000 nautical miles. At destination, while under- way or at anchor, the ship could rap- idly deploy 10,400 troops at a time, using daycruisers and onboard land- ing craft.

According to Mr. Rogers, ap- proximately 70 percent of the funds allocated to the shipyard would be used by the yard to purchase equip- ment from outside suppliers and manufacturers. Equipment supply contracts for the construction of the liner would amount to hundreds of millions of dollars for manufactur- ers. A few examples of important categories of supply contracts with approximate dollar values involved are provided in Exhibit 1.

Last March, the World City Cor- poration nominated Port Canaveral, (continued) " ABLE-BODIED

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September, 1990 21