Page 16: of Maritime Reporter Magazine (December 2001)

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MAAG Gear Wins Large Order For Five

CODAG Gear Units In Spain

MAAG Gear Ag,a Swiss based company of FLS

Industries, Denmark, has been awarded the contract by the Spanish shipyard IZAR, one of the biggest ship- yards world-wide for naval ships. The contract covers the supply of five gearbox systems for new F-310 type frigates of the Norwegian Navy. The new frigates will be equipped with the most modern systems available today, including a combined Diesel and gasturbine (CODAG)propulsion system with high efficiency and low noise level gear units. The delivery of the first gearset will be end of 2002, followed by one gearset each year until 2006. The order is included in this years sales budget for naval gears, and the total order intake by mid year for MAAG is considerably higher than budgeted. The gears will connect two Diesel engines type BAZAN Bravo 12 and one gasturbine type GE

LM 2500 to two propellers. In CODAG mode, the total propulsion system power will be 30500 kW at a pro- peller speed of 190 rpm.

The gears are mounted on specially designed elastic mounts in the ship in order to minimise noise radiation to the sea water. The order has been awarded to MAAG because of their superiority in technical solutions for naval ship propulsion gear systems. The main issues are reliability, functional flexi- bility and low noise radiation into the sea water. According to MAAG's sales vice president, Thomas Deeg, this is the compa- ny's first order from IZAR for a CODAG gear system. "It is a very important order for us, and we are very pround that we were chosen by IZAR. It will be the beginning of a continuous and fruitful co-operation for the future, and MAAG is one of the major suppliers for such gear systems world-wide"

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House-Senate Conference Agrees on $33 Million For Title XI Loan Guarantees

The House and the Senate have agreed to include $33 million for Title XI loan guarantees in Fiscal Year 2002 in the commerce, Justice, State and the Judiciary

Appropriations conference report.

The conference report filed on November 9, which also includes some $3.9 million for administering the program, is expected to be approved by the House and

Senate this week.

In addition to Title XI, the appropriations conference report funds State and Justice department programs, including the immigrations and border controls, the

Federal Bureau of Investigation, embassy security, and diplomatic and consular affairs.

The Title XI funds provided in the conference report, coupled with the $7 million in carry-over funds still available from fiscal year 2001, will help to finance some $800 millionin vessel construction and shipyard modernization projects, creating thousands of Ameri- can jobs and stimulating economic development throughout the United States.

American Electric Power Completes

Acquisition of Memco Barge

American Electric Power completed its purchase of

Memco Barge Line, Inc., from the Electric Fuels Cor- poration Subsidiary of Progress energy. The acquisi- tion was made through AEP Resources Inc., a wholly owned subsidiary of AEP.

The purchase, which was announced July 23, 2001, was completed following clearance from the Depart- ment of Justice under the Hart-Scott-Rodino Act.

The purchase price of $270 million includes the early termination of lease financing related to certain assets of Memco.

The purchase will be initially financed with short- term debt, and the acquisition is expected to be imme- diately accretive to AEP's earnings.

Delta Towing, Signet Maritime

Alliance Join Forces

Delta Towing LLC and Signet Maritime Corporation began work on a period contract to the Texas Depart- ment of Transportation with four tugboats and three barges, providing navigational support to the ferryboat system between Port Isabel and Padre Island.

The problems resulting from collision damage to the

Queen Isabella Causeway on September 15 required a new ferry system be in place with tugboat and barge landing operations implemented providing for safety of ferry navigation to and from the two ports.

According to Delta Towing president, Bucky Mon- teiro, the primary objective of the partnership between these three entities will be Safety First. The main oper- ations center will be under direction of Captain Scott

Cowan, based in Signet's Brownsville office.

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