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On the Cover: Podded propulsion systems, despite a few glitches, have proven their value in help- ing vessel owners to increase operational reliability, safety and performance. Pictured on the cover is Mermaid pod propulsors — from Rolls-Royce & Alstom Power Conversion — on Millennium. 8 Power Challenge

With containerships fast approaching the 10,000 to 12,500 teu category — with still larger vessels on the drawing board — the question of efficient power for these behemoths comes to the forefront. — by David Tinsley, technical editor 23 Cruise Blues

The cruise industry has enjoyed a near decade long rampage, adding new, large ships at a record clip. However, the recent economic slowdown in the

U.S., coupled with mechanical problems and operational mishaps, have conspired to cool down the cruise sector. — by Regina Ciardiello, senior editor 26 Gulf of Mexico Offshore Report

The fickle, cyclical business of discovering and recovering resources from offshore Gulf of Mexico is set for another wild ride up. Exploration and

Production budgets continue to rise, and though no one is forgetting the most recent crash of 1997, there is an undeniable good feeling in the Gulf. 33 From Rags to Riches

Iridium is back, and though the return is under a completely new company, management and financial structure, it will have to battle mightily to eradi- cate the memory of its bankrupt predecessor. New CEO Gino Picasso and his team seem up for the task. — by Regina Ciardiello, senior editor

Diesel Power Annual 36D Taking Care of the Bay

California's Carl Moyer Program is helping companies to replace engines to reduce NOx emissions. Westar Marine Services, with a diverse fleet of nine tugs and five water taxis, found the plan, and their new engines, much to its liking. — by Alan Haig-Brown 36F Diesel Engine Technical Guide 44 51

Pick a Pod

Podded propulsion systems are quickly becoming the propulsion solution of choice for some interesting applications. — by David Tinsley, technical editor

Germany is Forging Ahead

A traditional maritime power beset with challenges from lower-cost competitors, German shipbuilders and marine equipment makers continue to produce quality ships and systems. 12 Feature Vessel: Fortuny delivered by IZAR

Puerto Real. 13 E-Commerce 14 Feature Vessel: Bollinger christens 8,000-hp Bootsie B. 19 New & Notable 36B Maritel Calling: Maritel has launched its new marine telephone service and vessel locator system. 56 Leave it to Oslo: NorShipping once again proved to be a launch pad for innovative marine solutions. 58 Ferliship's New Vessel Contracts 60 Ship's Store 62 Buyer's Directory 64 Advertising Index 65 Classifieds

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No. 7 Vol. 63

Founder: John J. O'Malley 1905 - 1980

Charles P. O'Malley 1928 - 2000

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