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New York December 20, 2005 - Overseas Shipholding Group, Inc. announced today that its joint venture with Sociedad Anonima de Navegacion Petrolera S.A. of Chile (SONAP) has changed its name to Panamax International. OSG entered the joint venture in 2005 through the acquisition of Stelmar Shipping Ltd. Together, SONAP and OSG jointly operate one of the largest and most modern Panamax tanker fleets in the world. The average age of the 14-vessel, double hull fleet is seven years compared to a world fleet average age of 12.1 years. The fleet trades crude oil and petroleum products in the Americas and the Caribbean.

As of November 30, 2005, OSG had 49 crude tankers that trade on long and medium haul routes throughout the world. The Company founded, or is a member of, Tankers International, Aframax International and Panamax International, each a commercial pool of similar size and quality vessels with different shipowners that when combined as a single fleet provides customers access to more than 100 vessels.

Boston December 20, 2005 - A North Dartmouth man who was the captain of two New Bedford-based fishing vessels pleaded guilty today in federal court to conspiracy to violate the Lacey Act -- the federal wildlife trafficking statute, making false statements to Coast Guard officials, and obstruction of justice in connection with a four-year-long conspiracy of commanding his crew members to remove the eggs of female lobsters so that they could be sold in port.

United States Attorney Michael J. Sullivan; Andrew Cohen, Special Agent in Charge of the Northeast Enforcement Division of National Oceanic and Atmospheric Administration Fisheries Service, Office of Law Enforcement; Captain Mark Landry, Chief of Law Enforcement, First Coast Guard District; and James Hanlon, Acting Director of the Massachusetts Environmental Police, announced today that JOSE SILVA, age 50, of North Dartmouth, pleaded guilty before US District Judge George A. O'Toole to an Indictment charging him with one count of conspiracy to violate the Lacey Act, two counts of violating the Lacey Act, one count of making a false statement to Coast Guard boarding officers, and one count of obstruction of justice.

At today's plea hearing the prosecutor told the Court that, had the case proceeded to trial, the evidence would have proven that over a four-year period, SILVA, as the captain of the New Bedford-based fishing vessels Lutador and Lutador II, commanded his crew to remove the eggs of thousands of female lobsters and "v-notched" female lobsters. Federal and state law prohibit the taking of female egg-bearing lobsters as a way of protecting the viability of the lobster fishery.

Federal law requires that fisherman who catch female lobsters return them to the sea. Lobster fisherman customarily cut a v-shaped notch in the tales of female lobsters so that other fishermen who later catch the same lobsters will know that they are females capable of bearing eggs. Federal law also prohibits the taking of v-notched lobsters.

SILVA knew that catching egg-bearing and v-notched lobsters was illegal, yet during numerous voyages over a four-year period, he instructed his crew to retain egg-bearing and v- notched lobsters, "scrub" or "wash" off their eggs with a hose, and store them on board for eventual sale in port. SILVA later instructed his crew that they should tell no one about the practice, and directed them to store the lobsters in hidden compartments in the vessel's fish hold so that the Coast Guard would not discover them.

On March 7, 2004, the Coast Guard boarded the Lutador II near Quick's Hole, Massachusetts as it was returning to New Bedford. During the boarding, SILVA told the Coast Guard that there were no lobsters in the vessel's fish hold, when in fact he knew there were hundreds. After the Coast Guard discovered the lobsters during the course of their inspection, Silva submitted to the Coast Guard an inventory of his catch on which he knowingly understated the amount of lobster on board. He later told crew members to tell the Coast Guard that the crew removed lobster eggs during the trip without Silva's knowledge. In connection with this last trip, SILVA paid an administrative fine to the National Marine Fisheries Service's Office of Law Enforcement.

Judge O'Toole scheduled sentencing for March 22, 2006. SILVA faces up to 5 years' imprisonment for each count, except the obstruction of justice count, for which he would face a maximum of 20 years' imprisonment. Each of the counts also carry a potential fine of $250,000 and 3 years supervised release.

The case was investigated by the Northeast Enforcement Division of National Oceanic and Atmospheric Administration Fisheries Service, Office of Law Enforcement, the US Coast Guard and the Massachusetts Environmental Police. It is being prosecuted by Assistant US Attorney Jon Mitchell in Sullivan's Economic Crimes Unit.

Boston December 20, 2005 - An Indian national working as the Chief Engineer on the container ship M/V MSC Elena pleaded guilty today in federal court to charges of conspiracy, obstruction, destruction of evidence, false statements and violation of the Act to Prevent Pollution from Ships in connection with the use of a secretly concealed "magic pipe" used to discharge sludge and oil contaminated waste overboard.

Michael J. Sullivan, the US Attorney for the District of Massachusetts; Kelly A. Johnson, Acting Assistant Attorney General of the Department of Justice's Environment and Natural Resources Division; and William Schenkelberg, Special Agent in Charge of the Northeast Region of the US Coast Guard Investigative Service, announced that MANI Singh, age 57, of India, pleaded guilty before US District Judge Patti B. Saris to the Indictment.

According to the Indictment, bypass equipment, referred to as the "magic pipe" was used to circumvent required pollution prevention equipment. This bypass equipment was discovered by the US Coast Guard during an inspection of the vessel in Boston Harbor on May 16, 2005.

Chief Engineer Singh pleaded guilty to making false statements to the Coast Guard denying knowledge about the existence and use of the bypass equipment, with obstructing justice by directing subordinates to lie to the Coast Guard, with concealing evidence, and with concealing the discharges in a falsified Oil Record Book, a required log in which all overboard discharges must be recorded.

After the Coast Guard found bypass equipment hidden in a void space, Singh directed that a printout from the ship's computer and a rough log of actual tank volumes be concealed in an effort to cover up the falsification of ship records. Coast Guard inspectors were presented with fictitious logs containing false entries claiming the use of the Oil Water Separator and omitting any reference to dumping overboard using the bypass equipment.

Singh was the Chief Engineer on the MSC Elena, a Panamanian registered 30,971 ton container ship operated by MSC Ship Management (Hong Kong) Limited. The MSC Elena made regular voyages from ports in Europe across the Atlantic to ports in the United States, including Boston.

Engine room operations on board large oceangoing vessels such as the MSC Elena generate large amounts of waste oil. International and US law prohibit the discharge of waste oil without treatment by an Oil Water Separator -- a required pollution prevention device. The regime also requires all overboard discharges be recorded in an Oil Record Book, a required log which is regularly inspected by the Coast Guard. The waste oil may be burned on board through the use of an incinerator or offloaded onto barges or shore side facilities for disposal.

Upon his taking over responsibility as Chief Engineer in March 2005, Singh asked to be informed of the "magic pipe" arrangement on the MSC Elena and, once informed, directed that it be used to discharge waste overboard. Both sludge and oil contaminated bilge waste were discharged overboard through the bypass equipment and without the use of the Oil Water Separator.

Judge Saris scheduled sentencing for March 8, 2006. Singh faces a maximum sentence of 5 years in prison on the conspiracy charge, 5 years in prison on the obstruction charge, 5 years in prison on the false statements charge, 20 years in prison on the destruction of evidence charge, and 5 years in prison on the violation of the Act to Prevent Pollution from Ships.

Yesterday, the company that owns the MSC Elena, MSC Ship Management (Hong Kong) Limited, agreed to plead guilty to charges that it engaged in conspiracy, obstruction of justice, destruction of evidence, false statements and violated the Act to Prevent Pollution from Ships. Per the terms of a plea agreement that must be approved by the court, MSC Ship Management will pay $10.5 million. This amount would be the largest ever paid in a case involving deliberate pollution from a single vessel and the largest criminal fine paid by a defendant in an environmental case in Massachusetts history.

Additionally, the Second Engineer of the MSC Elena, Aman Mahana, pleaded guilty on December 1, 2005 to his role in the conspiracy. He will be sentenced early next year.

This investigation was conducted by the Northeast Regional Office of the US Coast Guard Investigative Service with assistance from the US Coast Guard Sector Boston, US Coast Guard First District Legal Office, US Coast Guard Office of International and Maritime Law, US Coast Guard Headquarters Office of Investigations and Analysis, and US Coast Guard Office of Compliance. The case is being prosecuted by Assistant US Attorney Jonathan F. Mitchell in US Attorney Michael J. Sullivan's Economic Crimes Unit, Special Assistant US Attorney Luke M. Reid of the US Coast Guard, and Senior Trial Attorney Richard A. Udell and Trial Attorney Malinda R. Lawrence of the US Department of Justice Environmental Crimes Section.

Passenger Ferries to Sail From Baltimore to Eastern Shore Again

College Park MD December 21, 2005 - Maryland's far Eastern Shore may soon be a quick trip from Baltimore, thanks to a speedy, futuristic ferry being developed by Maritime Applied Physics Corporation and A. James Clark School of Engineering researchers through the Maryland Industrial Partnerships Program.

The plane-like boat, which could be in service year-round as early as summer 2007, will fly passengers 18 miles over the water from Rock Hall to Baltimore or back for potential shopping trips, coastal touring, evening dinners, Orioles games, cultural events, and commuting to work.

"Since the steamship days the Eastern Shore has held a certain allure for Baltimoreans," said P.A.M. Schaller, Director of Economic Development for Kent County. "Rock Hall has the flavor of a waterman's town. Nearby Chestertown has loads of 18th century architecture. Both have fabulous restaurants. It's like stepping back in time."

The trip by car is 80 miles, requiring a drive either north into Delaware, or south to the Chesapeake Bay Bridge.

Passenger ships ran the same route as recently as the 1960s, according to Schaller. A 155-acre amusement park called Tolchester Beach north of Chestertown serviced a ferry and as many as six steamers, attracting 22,000 visitors a weekend. The 85-year-old park closed in 1962.

Rock Hall and its neighboring areas are getaway havens, with booming summer communities of vacationing boaters from Philadelphia, Delaware, New Jersey, and New York.

The new, 80-passenger ferry will be part plane-flying close to the water, lifted into the air by its aerodynamic hull; it will be part hydrofoil, a type of boat with wing-shaped blades attached to struts under the hull that lift the boat out of the water as speed increases; it will also be part luxury vessel, with leather aircraft seating, a coffee bar, and outlets for laptops.

The ride will be smooth. Hydrofoils are used by militaries worldwide to effortlessly glide over high waves.

The boat's hull design, unlike any other vessel, will make it perform like an aircraft. That's where Jewel Barlow, director of the University's Glenn L. Martin Wind Tunnel, comes in.

"The hull we're creating is shaped like a wing to create lift, much like a plane, at low clearances above the water," Barlow explained. "This lift, occurring as the boat reaches high speeds, will support the weight of the ship and reduce drag while avoiding reverse lift, which would push the boat back down into the water."

No other commercial hydrofoil-based ferry on the market produces this kind of lift, according to Mark Rice, president of MAPC. Less drag, he explained means less fuel consumption, which means lower trip costs, and possible speed boosts. The ferry could go as fast as 68 miles-per-hour.

"We're trying to get the fuel-used-per-passenger-mile ratio down," Rice explained. "We'd like the ferry to perform at least 25 percent better than the Boeing JETFOIL, the most technically advanced passenger hydrofoil ever built."

That efficiency would make MAPC a world-leading innovator in hydrofoil ferries.

"The intent is to find products made in the US with a performance advantage that allow you to sell overseas," said Rice. "You can't go head-to- head with Asian builders on a product that can be built there for less. You have to add enough technical value to make up for the difference in purchase cost."

MAPC plans to build the first ten ferries, selling each for approximately $2 million.

Future high-speed ferry routes could include trips from Baltimore to Annapolis, St. Michaels to both Baltimore and Annapolis, and Cambridge to Annapolis. Similar routes in the US are in Boston (to Martha's Vineyard), Seattle's Puget Sound, San Francisco Bay, Long Island Sound, and Scotia. Many European and Asian ports also feature passenger ferry services.

Pyongyang December 20, 2005 (KCNA) - Russian-flagged ship "Ternei" entered the territorial waters of the DPRK on Dec. 5, 2005 with neither prior notice to it nor approval by it, according to a report from a relevant institution. The ship neither responded to the DPRK's interception nor accepted its just demand for mooring at the nearest port for an investigation. Even during the investigation the ship did not properly present documents related to its navigation but destroyed all the materials that could be evidence, increasing the suspicion. The Russian ship is entirely to blame for the delayed investigation because it has not complied with our demand in time.

The ship finally responded to our demand and its captain admitted the fact that his ship entered the banned waters of the DPRK side and did not respond to its interception in time. He expressed regret at this and assured the DPRK side that such a thing would not occur again. The DPRK side, therefore, decided to send the ship back on Dec. 19 with the DPRK-Russia relations into due consideration.

Hull Port Project Gets Go Ahead

London December 21, 2005 - Transport Minister Derek Twigg announced today that Associated British Ports' proposed Quay 2005 container terminal has received final approval.

This announcement follows an earlier "minded to" approval announced by former Transport Minister David Jamieson in January this year, subject to satisfaction on nature conservation issues, and any other relevant new matters arising.

After considering all the responses received since January, Derek Twigg said:

"After carefully considering the likely impacts on local residents, and balancing them against the wider economic benefits, I am satisfied that, overall, the Quay 2005 project will bring significant benefits to the city and to the region as a whole.

"I am also satisfied that the project's likely impacts on nature conservation sites will be adequately compensated for by the creation of replacement habitat in the Humber estuary."

Bathside Bay Container Terminal

London December 21, 2005 - Transport Minister Derek Twigg today indicated that he was minded to approve proposals for a container port at Bathside Bay, Harwich, Essex.

The Office of the Deputy Prime Minister is also issuing a letter today indicating that Ministers are minded to approve the planning applications relating to the same proposal.

The minded approval comes after a public inquiry in 2004, following which the inquiry inspector recommended in favor of the proposals, subject to conditions.

There are however some matters which require further clarification, including making sure that the right conditions are imposed on the development to secure the necessary highways improvements in good time to provide congestion relief.

Commenting on the announcement, Derek Twigg said:

"We believe this expansion in ports capacity is justified by the economic benefits it will bring regionally and nationally, for UK industry and the economy. We are committed to sustainable distribution and this new project would play a large part in securing that aim. That is why I am minded to agree with the Inspector's recommendation that we should approve this project.

"We understand at the same time that the new terminal will have a significant impact on the environment. This is why we agree that there should be controls imposed on the development, to provide new road and rail infrastructure so that congestion does not increase, to provide compensatory habitats for wildlife displaced by the scheme, and to reduce other environmental impacts such as noise, pollution and the visual impact."

Coast Guard Will Evaluate Suitability of Passamaquoddy Bay for LNG

Portland ME December 21, 2005 - The US Coast Guard Sector Northern New England here will assess safety and security issues associated with liquefied natural gas tankers transiting Passamaquoddy Bay and its approaches to Split Rock in conjunction with the Federal Energy Regulatory Commission (FERC) permitting process regarding Quoddy Bay, LLC’s proposal to build a liquefied natural gas terminal at Pleasant Point.

The Coast Guard received official notification of Quoddy Bay, LLC’s plans on Friday, Dec. 16, 2005 via Quoddy Bay’s Letter of Intent, the first regulatory step in the Coast Guard’s assessment and validation approval process, designed to ensure LNG-laden ships operate safely.

"We plan to work very closely with local officials, our Port Safety Forum, and the Area Maritime Security Committee in evaluating this proposal," said Captain Stephen Garrity, Coast Guard Captain of the Port Sector Northern New England. "We will also be looking for comments from the general public in the US and Canada to ensure we have considered the full range of issues associated with moving LNG tankers from the Bay of Fundy to Passamaquoddy Bay."

FERC is responsible for authorizing the siting, construction, and operation of onshore LNG facilities. Once FERC receives an application for an LNG facility, it is required to complete an Environmental Impact Statement (EIS), evaluating issues ranging from air quality and biological impacts, to cultural and socioeconomic impacts, to safety and security impacts. The Coast Guard will serve as a cooperating agency for FERC’s EIS in accordance with provisions of the National Environmental Policy Act (NEPA). When completed, the Coast Guard may adopt pertinent portions of the EIS in order to satisfy its NEPA obligation relating to issuance of the Letter of Recommendation and other connected Coast Guard actions.

Quoddy Bay, L.L.C. will provide the Coast Guard with a safety and security assessment that identifies any navigational safety hazards as well as potential security threats, along with recommended mitigation measures and the resources (federal, state, local and private sector) that will be needed to provide an acceptable level of safety and security for the proposed LNG operations. This assessment will be submitted to the Coast Guard so that it can be reviewed and validated by key stakeholders at the port and the Area Maritime Security Committee. Based on this assessment, the Coast Guard Captain of the Port will evaluate the suitability of the waterway for LNG marine traffic and provide his findings to FERC for inclusion in its EIS. The Coast Guard well recognizes the unique safety and security challenges of transporting LNG. Through the cooperative efforts of FERC, key stakeholders, and state and local officials, the agency is confident that an accurate and objective assessment will be undertaken for the safety, security, and protection of the marine environment.

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