Page 19: of Maritime Reporter Magazine (February 1992)

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' We Need

America First

In U.S. Waters

James Bovard's call for an end to the Jones Act of 1920, which re- quires all shipping between U.S. ports to be carried on American- built, -owned and -crewed ships (cabotage laws), ignores critical evi- dence that would alter the conclu- sion he has reached ("Torpedo Ship- ping Protectionism," Editorial Page,

Wall Street Journal \

For example, Mr. Bovard would have us believe that the build-Ameri- can provisions of cabotage laws are singularly responsible for such dis- parate circumstances as the crimi- nal sales of maritime jobs, underutilization of the Panama Ca- nal, exorbitant union salaries, short- ages of home heating oil, and the corrupt Congress, which he alleges.

Fortunately, the Jones Act is spared the blame for world hunger and the drug epidemic.

If Mr. Bovard dismisses the cabotage laws' role in national de- fense—the main purpose for which it was enacted. All maritime na- tions have such laws. In the Persian

Gulf War, we saw a compelling ex- ample of cabotage laws'value. In a more protracted fight, putting trained people on merchant vessels will always be a major hurdle; the barge and towing industry can pro- vide this rich reserve of trained sea- men. There are more onboard jobs in our industry than in any other maritime sector. Without cabotage, there would be little or no ready reserve.

Mr. Bovard ignores the fact that the Jones Act encourages fierce com- petition on the U.S.'s waterways. In the tug and barge industry, scores of towing companies operating on the inland rivers and along the coasts of the U.S. vie with one another for cargoes. Without the Jones Act, that competition would disappear.

And there is a new and powerful argument for cabotage that Mr.

Bovard overlooks: preserving and protecting the environment. For- eign crews, manning vessels built below U.S. standards, would have only scant knowledge, if any, of com- plex U.S. and state environmental laws and regulations. The risk of foreign-owned, foreign-crewed ves- sels operating in U.S. waters be- yond the reach of U.S. laws is a chance Americans are unwilling to take.

Joseph A.Farrell,

President,

American Waterways Operators,

Arlington, Va.

Kvaerner Govan Wins $360 Million Order

For 4 Chemical Carriers

An order worth more than $360 million for four chemical carriers has been won by Kaverner Govan

Ltd., the Norwegian-owned shipyard in Scotland.

According to the company, the order from Saudi Arabian and Nor- wegian buyers is the largest single merchant shipping contract ever placed in Britain.

The contract is dependent on the

U.K. Government agreeing to pay a subsidy equal to 13 percent of the cost of building the ships, the maxi- mum currently allowed under Euro- pean Community rules.

Two more similar vessels of37,500 dwt will be built at Kvaerner's

Kleven yard in Norway, in addition to the four ships to be built in Scot- land, bringing the total value of the contract to $540million

Three of the ships are being built for the Saudi Arabian company Na- tional Chemical Carriers, while the remaining three have been ordered by the Norwegian-owned Storli

Group.

The shipping and shipbuilding group Kvaerner AS bought the

Govan yard on the River Clyde in 1988.

The Govan yard's total order book is now worth approximately $2.3 billion.

Shell To Charter 4 New Product Tankers

Shell International Marine will reportedly bareboat charter four new 40,000-dwt double-hull product tankers under construction at Halla

Engineering & Heavy Industries in

South Korea.

The contract calls for a 14-year lease, with an option to cancel after the first seven years. The charter rate was not disclosed.

Built to Det norske Veritas class, the tankers, which will be delivered between July 1993 and March 1994, will have a design draft of about 36 feet and will conform with the re- quirements of the Oil Pollution Act of 1990. Their construction will be supervised by Shell Seatex, a divi- sion of Shell International Marine.

The tankers are expected to be the base of a phased replacement program of the Shell Group's small product tanker fleet. Shell Interna- tional operates a current fleet of 10 tankers of this size built between 1978 and 1980.

First Thermal Offers

New 'Villam' Series

Thermal Fluid Heaters

After an extensive four-year study of high-efficiency performance in the field, First Thermal Systems, Inc.,

Chattanooga, Tenn., announced the release of the Villam Series of high- efficiency thermal fluid heaters for marine applications.

The Villam Series performance range is 2.5 MM BTU/Hr to 24 MM

BTU/Hr operating at an average of 89 percent efficiency. Villam uses no refractory and is compact in size.

The company reports that fuel sav- ings alone can pay for the Villam

MHEHC in a few months. Flexibil- ity in design is also important to allow user friendly exhaust stack locations and inlet and outlet loca- tions. ASME, ABS and USCG certi- fied.

For free literature on Thermal

Systems's high-efficiency thermal fluid heaters for marine applications,

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February, 1992 19

Maritime Reporter

First published in 1881 Maritime Reporter is the world's largest audited circulation publication serving the global maritime industry.