Page 57: of Maritime Reporter Magazine (August 1994)

MarAd News (cont.)

Senate Armed Services Committee

MarAd Section 9 Applications

MarAd has received three Section 9 applica- tions for approval under the Merchant Marine

Act, 1916, as amended: • Neptune International, Inc., Elk Grove Vil- lage, 111., requested permission to sell the 40,631- dwt tanker Texas Trader. The proposed pur- chaser is Neter Navigation SA, Singapore. The vessel was built in 1957 in Newport News, Va. If approved, the tanker would be scrapped in India. • MarAd has given Sjovind Enterprises, Inc. and

Gravina Fisheries, Inc., Mercer Island, Wash., permission to change to Belize registry the 1,076- gt fishing vesselSjovind. Built in 1977 in Houma,

La., the vessel will be used for crab fishing and other available fisheries. • MarAd has received an application from Action

Marine, Inc., Luling, La., for permission to sell the 1,026-gt deck barge Bengal-180. The pro- posed purchaser is Irvin Kanhai, Paramaribo,

Suriname. The vessel was built in 1981 in Houma,

La. If approved, the barge would be transferred to Suriname registry and used to transport tim- ber from and within Suriname and trading in

South America and the Caribbean.

MarAd Awards $7.8 Million

Training Vessel Conversion Contract

MarAd has awarded a $7.8 million contract to

Stevens Technical Services, Inc., Brooklyn, N.Y., for conversion of the naval survey vessel USNS

Chavenet to a public nautical schoolship. It will replace the Texas Maritime Academy's Texas

Clipper.

MarAd provides training vessels to five sea- coast academies for use in at-sea training and as shoreside laboratories to assist in training deck and engine officers for the American merchant marine.

The contract requires that all repairs neces- sary to meet regulatory survey and inspection requirements be performed. It also requires that all necessary personnel, material, equipment, services and facilities be provided. The work is scheduled to be completed in 10 months.

MarAd Grants Lykes Permission To

Alter ODS Subsidizable Lives

MarAd and the Maritime Subsidy Board have given approval to a request from Lykes Brothers

Steamship Co., Inc. to waive section II-28(c) of its operating differential subsidy agreement in or- der to terminate the final subsidized voyage of the Velma Lykes in Mogadishu, Somalia, and to extend the subsidizable life of the vessel, pursu- ant to section 605(b) of the Merchant Marine Act, 1936, as amended, until final discharge of cargo in Mogadishu. The board determined that it is in the public interest to grant financial aid for the vessel beyond its 25-year life.

In approving the application, the board re- quired a reduction in the previously extended subsidizable life of theStella Lykes, and applying the reduced subsidy amount to the extension of the Velma Lykes. The agency also said granting the financial aid is necessary to place the pro- posed operation of the vessel on a parity with those of foreign competitors.

August, 1994

Deadlocked On RoRo/Helicopter

Carrier Funding

A debate troubled the Senate Armed Services

Committee over whether it should approve the spending of $601 million to fund two RoRo cargo ships, to be built by Avondale Shipyards Divi- sion in New Orleans, La. and National Steel and

Shipbuilding Co. (NASSCO) in San Diego — or whether the money would be channeled toward a $1.4 billion helicopter carrier to be built by

Litton Industries, Miss.

A reported error on the part of the Navy regarding the expiration dates of contract op- tions led to some confusion as to where the funds would be best spent this year, and which project could come out of budgets for future fiscal years.

When it became clear that the options for both projects expired at the same time, support reportedly grew for the RoRo vessels, including the support of Joint Chiefs of Staff Chairman

John Shalikashvili.

The Senate reportedly appeared ready to approve funding, but a group including Armed

Services committee memberTrent Lott (R-Miss), who is from Litton's home state, barred final action on the issue, insisting the Senate at least partially fund the helicopter carrier.

Approvals

The panel approved $2.7 billion requested for three Navy destroyers equipped with the Aegis anti-aircraft system and $258 million for 202

Standard missiles carried by the Aegis destroy- ers.

The panel also added $29 million onto a re- quested $374 million to develop more effective defenses for smaller ships against aircraft and missile attack; approved $266 million to continue the development of a new submarine smaller than the Seawolf-class ships now being built; the committee also added to the bill $5 million to speed the process of giving Navy ships separate living quarters for women.

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