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Aker Yards to build Platform Supply Vessels for Island Offshore

Oslo July 6, 2006 - Aker Yards has signed a contract with Sneingen AS, a company within the Island Offshore Group in Ulsteinvik, Norway, to deliver two UT 755 LN platform supply vessels. The value of the contract is approximately NOK 320 million.

This is the 19th contract between the shipowner, Island Offshore in Ulsteinvik and Aker Yards. The hulls for the platform supply vessels will be built in Romania and the vessels will be outfitted in Brevik. Delivery is scheduled for May and July 2008.

"The Infrastructure Protection Program provides the means to move forward in developing sustainable, risk-based critical infrastructure security initiatives for man-made and natural threats that could potentially have devastating impacts on the economy and communities throughout the nation," said DHS Under Secretary for Preparedness George Foresman. "These grant funds will provide tangible investments that extend beyond federal dollars to enhance America’s preparedness."

The infrastructure grants will be divided among seven programs that constitute major critical infrastructure sectors ranging from transportation modes to the nation’s ports. Allocation totals have been determined for five of the programs: Transit Security Grant Program (intracity rail, bus, and ferry systems), Buffer Zone Protection Program, Chemical Sector Buffer Zone Protection Grant Program, Intercity Passenger Rail Security Grant Program and the Trucking Security Program. The specific programs that will be receiving direct allocation funding are the following:

Transit Security Grant Program: The Infrastructure Protection Grant Program will provide more than $136 million to the owners and operators of the nation’s critical transit infrastructure including rail, intracity bus and ferry systems. Of that total, $123 million will be allocated to Tier 1 urban areas, whose systems have been determined to be most at risk based on factors including total ridership, underground rail systems, and underwater systems. Urban areas that received funds in previous years, but were not named in Tier 1, will be able to apply for the remaining Transit Security Grant funds. Eligibility for funding is limited to those who provide services within a defined Urban Area Security Initiative (UASI) jurisdiction. Prior to FY06, more than $252 million had been provided through the Transit Security Grant Program.

Chemical Sector Buffer Zone Protection Grant Program: The Chemical Sector Buffer Zone Protection Grant Program is a targeted effort that provides funds to build security and risk-management capabilities at the state and local level for chemical sector critical infrastructure from acts of terror and other hazards. Chemical Sector Buffer Zone funding is specifically focused on enhancing the protection of facilities that, if attacked, could cause Weapons of Mass Destruction (WMD)-like effects. In FY06, the Chemical Buffer Zone Protection Program will provide $25 million.

Intercity Passenger Rail Security Grant Program: Amtrak will be awarded more than $7.2 million to continue security enhancements for Intercity passenger rail operations in the Northeast Corridor (service between Washington, DC and Boston), Amtrak’s hub in Chicago and to expand these enhancements into the West Coast Service Area in key, high-risk urban areas. DHS is requiring Amtrak to conduct a risk assessment of its West Coast Service Area and demonstrate that its allocation of funds is fully coordinated with regional planning efforts in the Northeast Corridor. DHS has provided more than $6 million through the Intercity Passenger Rail Security Grant Program to date.

Trucking Security Program: The American Trucking Association will receive $4.8 million for the Highway Watch program to continue as a sustainable national program to enhance security and overall preparedness on our nation’s highways. The Highway Watch program, managed by the American Trucking Association, recruits and trains highway professionals to identify and report security and safety situations on the nation’s roads. The grant priorities of the Trucking Security Program include participant identification and recruitment; ensuring that the Highway Watch Program addresses homeland security and safety issues in conjunction with the National Preparedness Goal; maintaining a full-time Highway Watch Call Center; and operating and maintaining the Information Sharing and Analysis Center (ISAC). To date, DHS has provided more than $45 million through the Trucking Security Program.

Eligibility lists have been determined for the Port Security Grant Program and the Intercity Bus Security Grant Program. Critical infrastructure owners and operators within these specific sectors will have to meet grant eligibility requirements and apply for the FY06 infrastructure grant funding. Final award decisions will be made in September 2006. The specific programs that will be receiving funding are the following:

Port Security Grant Program: More than $168 million will be provided for port security grants to create sustainable, risk-based efforts for the protection of critical port infrastructure from terrorism. The nation’s 100 most critical seaports, representing 95 percent of the foreign waterborne commerce of the United States, plus an additional seaport eligible in 2005, are eligible to participate in the port grant program. From 2002 to 2005, DHS provided more than $706 million through this program.

Intercity Bus Security Grant Program: Approximately $9.5 million will be provided to eligible owners and operators of fixed route Intercity and charter bus services to protect bus systems and the traveling public from terrorism. The program priorities for the FY06 grants include facility security enhancements in defined UASI jurisdictions; driver and vehicle security enhancements; emergency communications technology; coordination with local police and emergency responders; and training and exercises. To date, DHS has provided over $39 million through the Intercity Bus Security Grant Program.

The infrastructure protection grants consider threat, vulnerability and consequences, and recognize the unique characteristics of our nation’s seaports, transit systems and other critical infrastructure assets. Since its inception, the Infrastructure Protection Grant Program has awarded over $1.1 billion to critical infrastructure sectors for protective measures.

The grant application process for eligible cities begins today. Infrastructure grant applicants will have 30 days to submit their proposals to DHS. Awards will be made no later than September 30.

New York July 5, 2006 - Eagle Bulk Shipping Inc., a global marine transportation company specializing in the Supramax segment of the dry bulk shipping industry, today announced it has taken delivery of the Tern, a 2003 built 50,209 dwt. Supramax dry bulk vessel. Eagle Bulk has now taken on-schedule delivery of two of the three vessels that were part of an acquisition agreement announced on June 23. The Company expects to take timely delivery of the final of these three vessels later this month.

The Tern will immediately commence an 18- to 22-month time charter at a rate of $19,000 per day.

Upon delivery of the third vessel the Eagle Bulk Shipping Inc. fleet will consist of 16 dry bulk vessels including 12 Supramax and 4 Handymax vessels, with a cargo carrying capacity of 796,663 dwt., and a fleet average age of approximately 5.5 years.

Omega Navigation Announces Delivery of Two Product Tankers

Piraeus July 5, 2006 - Omega Navigation Enterprises, Inc., a provider of global marine transportation services, announced today that it has taken delivery of two product tankers, the "Iasonas," to be renamed the "Omega Lady Sarah," and the "Adonis," to be renamed the "Omega Princess."

As of today, Omega Navigation has taken delivery of five double hull product tankers and has agreements to acquire one additional double hull product tanker with expected delivery by the end of July 2006.

The "Omega Lady Sarah" is a Panamax (LR1) double hull product tanker of 71,500 deadweight tons ("dwt"), built by STX, South Korea in 2004. This is the third Panamax product tanker delivered to Omega and follows the delivery of the "Omega Queen" and "Omega King" announced on May 31, 2006 and June 16, 2006, respectively.

The "Omega Lady Sarah" is employed under a long-term time charter to ST Shipping & Transport (Glencore International AG), until June 2009 at a daily time charter hire rate of $24,000, with a profit sharing arrangement. Under the profit sharing arrangement, Omega Navigation will receive 100% of the vessel's daily time charter earnings between $24,000 and $25,500 per day, and time charter earnings in excess of $ 25,500 will be divided equally between Omega Navigation and Glencore International AG.

The "Omega Princess" is a Handymax (Ice Class 1A, IMO II & III) double hull product tanker of 36,680 deadweight tons ("dwt"), built by Hyundai, South Korea in 2006. This is the second Handymax product tanker delivered to Omega and follows the delivery of the sister vessel "Omega Prince" on June 27, 2006.

The "Omega Princess" is employed under a long term time charter to D/S Norden A/S (Norden) until June 2009 at a daily time charter hire rate of $21,000 with profit sharing during the months of January through April of each year of the time charter pursuant to which Omega Navigation will be paid 25% of any earnings of the vessel in excess of $27,000 per day. The Company has granted D/S Norden an option to extend the charter for an additional period of 12 months at a minimum daily time charter hire rate of $24,000.

The "Omega Lady Sarah" and "Omega Princess" acquisitions were funded in part with a portion of the net proceeds of the Company's initial public offering and in part with debt under a senior secured credit facility provided by HSH-Nordbank AG. Omega Navigation has selected VShips as the technical manager for the "Omega Lady Sarah" and the "Omega Princess." VShips also manages the "Omega Prince."

George Kassiotis, President and Chief Executive Officer of Omega Navigation, commented, "We are very pleased to take delivery of 'Omega Lady Sarah' and the 'Omega Princess,' two of six product tankers that we have agreed to acquire. 'Omega Lady Sarah' and 'Omega Princess,' will complement our current fleet of two dry bulk carriers, two Panamax product tankers and one Handymax product tanker. We are also pleased to have one of the world's largest and best known technical managers, VShips, manage the 'Omega Lady Sarah' and 'Omega Princess' along with the 'Omega Prince.' Once we take the delivery of our sixth double hull product tanker, we will have a young, modern and diversified fleet, primarily oriented towards product tankers.

Furthermore, we believe that the addition of the 'Omega Lady Sarah' and 'Omega Princess' to our current fleet enhances our ability to generate cash flow and reinforces the growth prospects of our company as well as our ability to implement our quarterly dividend policy, with the first dividend payment of $0.50 per share expected in August 2006. As of today, 100% of our operating days in 2006 and 82% in 2007 are fixed under period employment."

Fleet Profile and Employment:

The table below describes the profile and employment of the Company's fleet:

Vessel Sister Year Deadweight Type

Ships (1) Built (dwt) Date

CURRENT FLEET (Vessels already delivered to ONAV)

Dry Bulk Carrier

Ekavi I A 2004 52,800 Handymax

Electra I A 2004 52,800 Handymax

Panamax Product Tanker

Omega Queen D 2004 74,999 LR1

Omega King D 2004 74,999 LR1

Omega Lady Sarah

(ex Iasonas) C 2004 71,500 LR1

Handymax Product Tankers

Omega Prince (ex Aris) B 2006 36,680 Ice Class 1A

Omega Princess

(ex Adonis) B 2006 36,680 Ice Class 1A

Current Fleet Total (dwt): 400,458

REMAINING IDENTIFIED VESSELS (with expected delivery date)

Panamax Product Tankers

Omega Lady Myriam

(ex Miltiadis) C 2003 71,500 LR1

Remaining Fleet Total (dwt): 71,500

FLEET TOTAL: 471,958

Vessel

Delivery Daily Redelivery

Hire Rate (2)

CURRENT FLEET (Vessels already delivered to ONAV)

Dry Bulk Carrier

Ekavi I Apr-05 $17,000 Mar-May-07

Electra I Apr-05 $25,000 Apr-Jun-07

Panamax Product Tanker

Omega Queen May-06 $26,500 (5) May-09

Omega King Jun-06 $26,500 (5) Jun-09

Omega Lady Sarah

(ex Iasonas) Jun-06 $24,000 (4) Jun-09

Handymax Product Tankers

Omega Prince (ex Aris) Jun-06 $21,000 (3) Jun-09

Omega Princess

(ex Adonis) Jun-06 $21,000 (3) Jun-09

Current Fleet Total (dwt):

REMAINING IDENTIFIED VESSELS (with expected delivery date)

Panamax Product Tankers

Omega Lady Myriam

(ex Miltiadis) Jul-06 $24,000 (4) Jul-09

(1) Each vessel is a sister ship of each other vessel that has the same letter.

(2) This table shows gross charter rates and does not include brokers' commissions, which are 5.0% of the daily time charter hire rate for the dry bulk carriers and 1.25% of the daily time charter

rate for the product tankers.

(3) Plus any additional income under profit sharing provisions of the charter agreements with D/S Norden A/S. The Company has granted the charterers the option to extend the charter for 12 months at a minimum daily time charter hire rate of $24,000.

(4) Plus any additional income under profit sharing provisions of the Company's charter agreement.

(5) The Company has granted Torm the option to extend the charter for 24 months at a minimum daily time charter hire rate of $28,500.

Keppel strengthens ties with LUKOIL with S$260m contracts for specialized ships

Singapore July 6, 2006 - Keppel Singmarine Pte Ltd has clinched contracts worth a total of S$260 million for two highly specialized vessels from LUKOIL – Kaliningradmorneft (LUKOIL), a subsidiary of leading Russian oil company, LUKOIL Oil Company.

The parent company of Keppel Singmarine, Keppel Offshore & Marine Ltd (Keppel O&M), has also signed an agreement with LUKOIL for further co-operation in potential newbuilding of offshore rigs, special purpose offshore facilities and vessels to service LUKOIL's offshore oil terminal vessels at Keppel O&M shipyards around the world.

Mr Charles Foo, Managing Director (Special Projects) of Keppel O&M and Chairman of Keppel Singmarine, said, "This partnership with LUKOIL represents a strategic milestone in the Keppel Offshore & Marine group’s effort to enhance its services for the Russian energy and offshore-related market.

"We are pleased with LUKOIL’s confidence in Keppel. As we work in partnership with LUKOIL, we also endeavor to renew and strengthen our ties with other Russian owners to offer them our comprehensive range of products and services in our global yard network to meet their needs."

Russia has always been an important market for Keppel O&M, with its huge reserves of oil and gas. According to the latest reports by the Energy Information Administration (EIA), the country has the world’s largest proven gas reserves of 1,680 trillion cubic feet (Tcf), and its proven oil reserves at 60 billion barrels is the eighth in the world. Probable and possible oil reserves is even more at 67 billion barrels. It is currently also the world’s largest producer and exporter of gas, and ranks second in terms of world crude oil production.

Keppel’s relationship with Russia dates back to the ‘80s when Keppel Shipyard and Keppel FELS serviced various owners in shiprepair, ship conversion and offshore rig construction and repair respectively. Work from Russia tapered down following the dissolution of the USSR in 1991, as much of the country focused on developing a market economy. It is currently enjoying a renaissance of consistent economic growth.

Keppel’s first projects in recent years for the Russian market are the construction of two 60-tonne bollard pull Ice-class Anchor Handling Tug/Supply (AHTS) vessels which Keppel Singmarine secured from LUKOIL in May 2005 and January 2006. The deliveries of these two vessels are due between end 2006 and mid 2007.

The two new contracts, secured on the back of the AHTS, are turnkey projects. They are for the construction of an auxiliary icebreaker vessel and a multi-purpose icebreaking supply vessel.

Mr Foo added, "I am glad that LUKOIL is pleased with the services that we are providing, and I am confident we will be able to deliver these two icebreaking vessels according to the owner’s requirements."

Contracts for these highly specialized vessels were won amidst competition from European yards. They are the first such vessels to be built by an Asian yard, which is a testament to the growing expertise of Keppel Singmarine in offering high value-added services to its customers.

The vessels will be delivered to their owner between end 2007 and mid 2008. To be deployed to the Barents and Arctic Seas, these vessels are designed and will be built to the rules and standards of the Russian Maritime Register of Shipping (RMRS), and are customized in accordance with the owner’s stringent requirements and superior technical specifications.

The 100-metre long auxiliary icebreaker vessel will have equipment and system capabilities to work in temperatures down to –40^oC and to proceed through 1.7 meters of level ice with 20cm snow cover. The 81-metre long multi-purpose icebreaking supply vessel can proceed through landfast ice having an unbroken thickness of up to 1.5 meters with 20cm snow cover.

A wholly owned subsidiary of Keppel Corporation Limited, Keppel O&M is a global leader in offshore rigs and ship conversion and repair as well as a specialized shipbuilder. Its near market, near customer strategy is bolstered by a global network of 17 yards in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the group aims to be the provider of choice and partner in solutions for the offshore and marine industry.

Keppel Singmarine Pte Ltd is the specialized shipbuilding arm of Keppel O&M. Since the early 1970s, Keppel Singmarine has designed and built more than 400 small to medium-sized vessels including AHTS, multi-purpose support vessels and cable ships for a worldwide clientele.

LUKOIL-Kaliningradmorneft is a subsidiary to LUKOIL Oil Company, a leading Russian oil company with main activities in oil & gas exploration and production, and production and sale of petroleum products. LUKOIL-Kaliningradmorneft is engaged in marine towing, handling of crude oil and petroleum products, fabrication of mobile drilling rigs, production of LPG, marketing of LUKOIL-produced fuels and lubricants.

Former LA Port Authority President, Wife Sued for Fraud

Santa Barbara July 6, 2006 - Former Los Angeles Port Authority President and former Santa Barbara Police Commissioner Ira Distenfield and his wife, Linda, once a deputy to Los Angeles Mayor Tom Bradley, were sued today in Santa Barbara Superior Court for civil fraud and false representation.

The lawsuit, which seeks more than $200,000 in damages, alleges the Distenfields sold the same We The People legal document preparation franchise to two different people in the San Francisco Bay Area. The suit also claims false representation of the Marin County We The People franchise's profitability. Ira Distenfield is currently the national director of franchise development for PRstores, which provide marketing services to local businesses.

The lawsuit was filed by attorney John L. Fallat, president of New Millennium Corporation (NMC) in San Rafael, California for "double selling the San Francisco East Bay territory of We The People, which stretches from Emeryville north to Crockett."

We the People legal centers provide assistance to the general public in preparation of simple legal documents such as living trusts and wills without use of lawyers.

"It turns out the Distenfields sold the same East Bay franchise territory to another person which makes it worthless to NMC," explained Fallat, noting the Marin store he purchased from the Distenfields in 2004 is doing poorly, "despite their promises and profitability projections they supplied."

"There is simply no excuse for selling the same territory twice," he said. "This is the kind of conduct low-life common criminals engage in. The Distenfields never even offered to refund the purchase price."

Last year, the Distenfields sold We The People to Dollar Financial Corporation for $14 million. A few months later, Dollar Financial filed a civil complaint for fraud against the Distenfields in Pennsylvania State Court based upon alleged false representations, according to Fallat.

The Distenfield's Santa Barbara neighbor Jane Lodas has filed her own civil complaint for fraud in the sale of the Santa Barbara We The People store and related investments in the company, Fallat said.

Although Fallat cautions against buying a We The People franchise, based on what he calls "Dollar Financial's failure to step up and accept responsibility for franchisee problems," he says he continues to believe in the concept of assisting people with the preparation of legal documents without a lawyer.

Rolls-Royce wins largest offshore vessel order

London July 5, 2006 - Rolls-Royce has won its largest contract for a single offshore vessel, which will also be the world’s most powerful offshore vessel with a pulling power of more than 350 tonnes. Rolls-Royce will deliver design and equipment systems worth nearly £20 million, following a contract between Farstad Shipping and Aker Yards to build the Rolls-Royce designed construction vessel.

The new UT 761CD Design vessel will be built by Aker Yards in Norway and will be delivered at the end of 2008. Rolls-Royce will, in addition to the ship design, supply all the engines, propulsion systems, deck machinery and automation and control systems.

Farstad Shipping also held the previous record for the largest contract, which was for a UT 732 CD Design anchor-handling vessel, which is now under construction at Aker Yards.

Including the new contract, Rolls-Royce now has contracts for 70 UT-Design offshore vessels. The new vessel is also the 522nd UT-Design, underlining the world-leading position held by Rolls-Royce for offshore service vessels.

SIU Comments on Proposed rules for TWIC, MMC

The SIU recently submitted formal comments concerning federally proposed rules on the implementation of a Transportation Worker Identification Credential (TWIC) and (separately) the consolidation of Merchant Mariner Qualification Credentials. The comments were submitted to the U.S. Department of Transportation’s Docket Management Facility, in accordance with guidelines contained in the respective Notices of Proposed Rulemakings.

The SIU’s comments follow:

SIU Comments on Proposed Rule for Transportation Worker Identification Credential (TWIC) Implementation in the Maritime Sector

June 28, 2006

Docket Management Facility
U.S. Department of Transportation
Room PL-401
400 Seventh Street, SW
Washington DC 20590-0001

Re: Transportation Worker Identification Credential (TWIC)
Implementation in the Maritime Sector Proposed Rule:
Docket USCG-2006-24196; TSA-2006-24191

Dear Sir or Madam:

The Seafarers International Union, Atlantic, Gulf, Lakes and Inland Waters District/National Maritime Union (SIU), AFL-CIO, representing thousands of American merchant mariners employed on U.S.-flag vessels in the domestic and international waterborne trades wishes to express our views on the proposed rulemaking implementing the Transportation Worker Identification Credential (TWIC) in the maritime sector. The proposed rulemaking is of extreme importance to our mariners, since they will be directly and significantly affected by the implementation of the proposed rule. The SIU submits these comments on their behalf.

The SIU recognizes and appreciates the breadth, complexity, and challenge of protecting our nation and our maritime transportation network from terrorist incursions. We believe that a safe, secure and reliable maritime transportation system is vital to this nation’s economic, defense and national security. To that end, the SIU has implemented a number of educational and training programs responding to the mandates of the Maritime Transportation Security Act of 2002 (MTSA) and the International Ship and Port Security (ISPS) Code and, further, has offered our assistance and views to the government in its efforts to devise and implement appropriate measures to protect this nation and our transportation sector from terrorism.

First and foremost, the SIU requests a 90-day extension of the comment period to allow all concerned mariners the opportunity to review the proposal and comment appropriately. By the nature of their employment, many mariners may, as yet, not had the opportunity to either review the complex document or contact their representatives with their assessment of the proposal. In fact, the complexity and sheer magnitude of the proposal itself warrants an extended comment period. It is unreasonable to expect such an immediate turnaround on this important proposal especially since the agencies involved have had a number of years to promulgate regulations. The maritime sector should have adequate time to review and assess the proposal and its impact on the industry.

The SIU generally endorses the concept contained in the proposed rule for a biometric transportation security card. However, there are select items within this proposal that warrant concern and comment. The SIU will focus its comments on those issues, as follows.

Merchant Mariner Document (MMD)

As noted, the SIU endorses the precept of a biometric transportation security card, as mandated by the Maritime Transportation Security Act of 2002. The SIU appreciates the efforts and the time expended by the Coast Guard and the Transportation Security Administration in attempting to implement this requirement. However, we believe that the complicated and burdensome process proposed by the agencies is both unnecessary for merchant mariners and may essentially prove disruptive to maritime commerce.

As such, the SIU strongly recommends that the current merchant mariner document be altered or modified to include an encoded biometric, to be used as a biometric transportation security card in lieu of the proposed TWIC, especially since the Coast Guard recognizes the MMD as an identity document. The SIU believes that with a security vetting process (threat assessment), preferably initiated by the Coast Guard, the biometric MMD would adequately respond to the mandate of the MTSA for a biometric transportation security card, given the fact that the Coast Guard advises that a security assessment is not required for the mariner population who have an MMD issued after February 3, 2003, implying that those mariners have undergone a full security vetting by the Coast Guard and therefore need not undergo a TWIC security assessment. The SIU urges the Coast Guard to continue this simplified approach for merchant mariners who are required to hold merchant mariner documents instead of opting for the TSA proposed process.

Further, the SIU believes that the Coast Guard itself has the authority to implement the biometric transportation security card mandate as recommended above. In fact, the MTSA requires the Secretary of Homeland Security to issue a biometric transportation security credential to merchant mariners. Section 102 of the MTSA defines "Secretary" to mean "the Secretary in which the Coast Guard is operating." It is our view that within this definition, the Coast Guard has the authority to issue an MMD with an encoded biometric as a merchant mariner biometric transportation security credential. Moreover, this would certainly negate the need for a change in the Code of Federal Regulations as proposed in USCG-2006-24371, the Consolidation of Merchant Mariner Qualification Credentials.

A further reason for utilizing a biometric merchant mariner document in lieu of a TWIC is the fact that the rule proposes standards, which will primarily impact merchant mariners and port workers.

Why reinvent the wheel when a proven, time-tested, and internationally accepted document already exists that, with some modification, responds to the mandate of the MTSA. In addition, to date, there are no TWIC requirements for other workers in all modes of transportation. It is our view that if the TWIC is not applicable to all modes of transportation, then the system is essentially flawed due to port intermodalism and the security objective is undermined.

User Fees

In this rule, the TSA proposes to establish new user fees for the TWIC process. Although the SIU opposes a TWIC requirement for merchant mariners, we nonetheless advance that it is patently unfair to impose yet another user fee on the merchant mariner for a credential that can be encompassed in the MMD. In fact, the merchant mariner is already charged a user fee for the process associated with the MMD. The SIU is aware that Section 520 of the 2004 DHS Appropriations Act requires TSA to charge a reasonable fee for providing credentialing and background investigations in the field of transportation. The principle behind user fees is based on the philosophy that beneficiaries of federal expenditures should repay the government in the form of a user charge on all or a portion of the federal expenditures incurred for a service. User fees are based on the premise that some agency services are of benefit only to particular segments of the population and that fairness dictates that these services be subject to user fees. However, the SIU contends that the TWIC program is not of benefit to a particular segment of the population -- the merchant mariner in this case -- but primarily in the interest of public security. It is our belief that one of the key criteria regarding the application of a user fee for TSA services rendered is whether the service provides a special benefit to an identifiable recipient above and beyond those that accrue to the public at large. In this case, it does not. Therefore, given the fact that obtaining a TWIC is in the interest of public security, merchant mariners should not be assessed a user fee. It is neither fair nor reasonable to assess a user fee on a merchant mariner for a security mandate that has broader benefits. The background checks and security threat assessments contained in the proposal are considered necessary to enhance the security of our nation’s ports and are part of an overall effort to fight terrorism elements.

Recruitment/Personnel Shortage

The SIU believes that the requirement for mariners to obtain a TWIC will exacerbate and stymie an already critical personnel shortage in the maritime industry. The 60-day waiting period for new merchant mariners to be vetted by TSA will escalate the problem and deter men and women from entering the industry. Therefore, it is absolutely imperative that there be some provision for new entrants to work on a temporary or interim basis until the vetting results are completed or to significantly shorten the time required by the agency for the vetting process. In addition, if the merchant mariner will be required to obtain a TWIC, the SIU recommends that the processes for the TWIC and the Merchant Mariner Credential (MMC) run concurrently and that the vetting process for both be combined into a single effort. As an aside, it currently takes an inordinate amount of time to obtain an MMD. Adding TWIC to the equation will only make the process worse. As an example, the SIU initiated the only Coast Guard approved unlicensed apprentice program which is dependent upon the students receiving their merchant mariner documents in a timely fashion in order to meet the manpower needs of the industry. Adding a TW IC requirement will only exacerbate an already lengthy process.

Federal Preemption

The SIU recognizes and acknowledges the fact that states have the right to regulate access to their port facilities. However, once a national identity standard is promulgated, it is critically important that these standards supersede state regulations. Thus, the SIU recommends that the federal TWIC or MMD program preempt any state or local regulations covering identity cards for mariners. The entire purpose of an identification credential is to provide a universally recognized identity card and to assure a mariner access to vessels and port facilities. In addition, the mandatory provisions of the International Maritime Organization’s ISPS Code require facilitation of access by mariners. Additional state or local requirements will create confusion and intolerable conditions for mariners, undermine the purpose of the TWIC, and disrupt interstate and foreign waterborne commerce. Allowing states to arbitrarily impose different or added security requirements is inconsistent with the intent of the TSA and Coast Guard to achieve a level of consistency governing threat assessments and transportation credentials.

Further Comments on the TWIC Program

The SIU believes that the TWIC program, as proposed, is an economic trainwreck waiting to happen. It will not enhance security but will certainly disrupt commerce and place an intolerable burden on American merchant mariners. The program is also flawed since it exempts foreign seamen from the process while focusing completely on U.S. merchant mariners who are screened, regulated and fully vetted by the Coast Guard. It has been estimated that 97 percent of our imports and exports are carried on foreign-flag vessels with foreign crews who in our view pose the gravest security risk. Yet, these crews are exempt from the TWIC requirements.

If the TSA and Coast Guard actually implement this proposed rule, the SIU, in addition to our recommendations above, advocates the following:

Any national TWIC issued to American merchant mariners must be compatible with the International Labor Organization’s Convention 185 so that the document will be acceptable in foreign ports.

Any waiver or appeals cases should be held before an Administrative Law Judge (ALJ) at a hearing on the record. It is unfair to have a mariner go back to the very agency, which determined he was a security risk in the first place to resolve the issue.

TSA should eliminate the self-disclosure of convictions requirement in the application process. The TWIC applicant will be required to undergo an extensive background check which will uncover any disqualifying factors for obtaining a TWIC. Why then should the applicant be required to complete a self-disclosure form?

If mariners are required to obtain a TWIC, they should be guaranteed unfettered access to ports.

There should be a clear nexus between terrorism security and the crimes that will disqualify an individual from holding a maritime TWIC, as the list of felony offenses that will disqualify a mariner from obtaining a maritime TWIC is too expansive, nebulous and unfocused on eliminating true security risks.

U.S. mariners are and will always be an effective asset in the global war on terrorism and are the most trained, qualified and vetted workers in the transportation industry. Our history of answering the call to perform our patriotic duty in every conflict and disaster is a matter of public record. In summary and to be clear, we urge the TSA and the Coast Guard to recognize the contributions of American mariners to the economic and defense security of our nation by exempting them from the unnecessary burden of obtaining a TWIC.

The SIU looks forward to working and cooperating with the TSA and Coast Guard to find an amenable resolution to this important issue. Thank you for the opportunity to comment.

Sincerely,

Michael Sacco
President

SIU Comments on Proposed Rule for Consolidation of Merchant Mariner Qualification Credentials

June 28, 2006

Docket Management Facility
U.S. Department of Transportation
Room PL-401
400 Seventh Street, SW
Washington DC 20590-0001

Re: Consolidation of Merchant Mariner Qualification Credentials
Proposed Rule: Docket No. USCG-2006-24371

Dear Sir or Madam:

The Seafarers International Union (SIU), Atlantic, Gulf, Lakes and Inland Waters District/National Maritime Union represents thousands of merchant mariners employed on U.S.-flag vessels plying the domestic and international waterborne trades. We appreciate the opportunity to comment on the proposed rule entitled, Consolidation of Merchant Mariner Credentials (USCG-2006-24371).

With the TSA/Coast Guard proposal on the Transportation Worker Identification Credential (TWIC) and this proposed rulemaking published simultaneously in the Federal Register, both with 45-day comment periods, the SIU advances that there is insufficient time to review this complex and lengthy proposal which basically amends numerous existing regulations dealing with the licensing and documentation of merchant mariners. In fact, in its regulatory evaluation, the Coast Guard states that the proposed rule "makes substantive changes to the requirements in 46 Code of Federal Regulations, Parts 10, 12, 13, 14, and 15."

Therefore, the SIU requests a 90-day extension of the comment period for this rulemaking. The SIU also urges the Coast Guard to separate this proposed rule from the timeline advanced in the TWIC proposal and further recommends that this proposal be either deferred or reintroduced gradually and subsequent to a thorough testing of the TWIC program, if promulgated.

During an initial review of the document, the SIU detected a number of minor errors and several noticeable omissions in the proposal, which may create unintended consequences. Further, it has been noted that the Coast Guard intends to create a paper document, which, in our view, is a reversion to the past. Smarter credentials are the answer, utilizing smart card technology. In fact, it is such technology that will enable the Coast Guard to bring U.S. maritime credentialing from the 19th to the 21st century.

As advanced by the Coast Guard in its Proceedings publication, the consolidation of credentials requires substantial effort, planning, coordination, and cooperation and many complex and sensitive details will have to be considered including revision of current statutes and regulations. The SIU agrees with this tenet and looks forward to working together with the Coast Guard to achieve a meaningful transition of credentialing to the 21st century.

Sincerely,

Michael Sacco
President

BC Ferries Sign Contract to Build Queen of Tsawwassen Replacement

Victoria July 6, 2006 - In keeping with its commitment to accelerate the replacement of its older vessels, BC Ferries announced today it has signed a $45.5 million contract with Vancouver Shipyards, a Washington Marine Group company, to build a new 125-car intermediate size ferry.

Construction on the 100-meter vessel will begin later this year and the ship is expected to enter service by the summer of 2008.

The new intermediate vessel will allow for the retirement of the 46-year old Queen of Tsawwassen. "By updating the fleet we are building a better BC Ferries for our customers and the communities we serve," said David L. Hahn, BC Ferries President and CEO. The new ship will sail initially on the Earls Cove – Saltery Bay route on the Sunshine Coast. The design of the vessel includes a comfortable lounge, a snack bar and a new state of the art lifesaving system.

The process for selecting the successful builder was started last year with 14 shipyards invited to participate in the prequalification process for the intermediate vessel, as a result of which, two Canadian shipyards and one international yard were short listed. Last year, the three yards submitted bids in response to the Request for Proposals, and on September 20, 2005, BC Ferries signed a formal letter of intent with the Washington Marine Group.

"The new vessel is just one part of our commitment to keep pace with the needs and expectations of our customers," said Hahn. "Under the fixed price contract, the shipyard is responsible for the detailed design and construction of the vessel. The shipyard guarantees performance related to speed, carrying capacity, maneuverability, fuel consumption and delivery". The design of this new vessel underwent stringent test criteria including tank testing of the hull and simulated demonstration of handling characteristics.

BC Ferries followed a rigorous, worldwide competitive tendering process for the new intermediate vessel to ensure it receives a high quality vessel within the required timeframe, with minimal risks at competitive prices.

BC Ferries is fully committed to renewing its infrastructure. Over the next five years, BC Ferries will add eight new vessels at a cost of $1 billion to ensure the continued safety and reliability of the fleet.

New Intermediate Vessel Specifications:

Length 100 meters

Breadth 27 meters

Gross Tonnage approximately 3500

Car Capacity 125 vehicles

Passenger Capacity 600

Service Speed 14.5 knots

Four right angle drive (RAD) propulsion system

Government of Canada Supports Building of New Ferry Terminal in Souris PEI

Souris PEI July 6, 2006 - The Honorable Peter MacKay, Minister of Foreign Affairs and Minister of the Atlantic Canada Opportunities Agency, on behalf of the Honorable Lawrence Cannon, Minister of Transport, Infrastructure and Communities cut the ribbon at an opening ceremony this morning of a new federally funded $1.7 million ferry terminal. The new terminal building substantially improves service to passengers of the ferry service between Cap-aux-Meules, Quebec and Souris, Prince Edward Island.

"This new facility will be a welcome addition for the Souris to Magdalen Islands ferry service, providing safe and modern transportation infrastructure to keep the Magdalen Islands firmly linked to the rest of Canada," said Mr. MacKay.

The new building hosts a public reception area, a public waiting area with chairs and tables, public washrooms, an administration office, and lunch and locker rooms for employees. The building also houses emergency generators, and mechanical and storage rooms. It also provides a new and improved security system that will enhance the safety and security controls of the terminal and its operations. The new terminal building is approximately 335 square meters in size.

"As passenger traffic continues to increase on the Souris to Magdalen Islands ferry service, it is appropriate that we improve facilities to meet that demand," said Minister Cannon. "Through the recent improvements to the MV Madeleine, and now with this fine new terminal building, the Government of Canada is helping to ensure that the popularity of the Magdalen Islands as a tourism destination continues to grow."

The ferry service, operated by CTMA Group, operates from April through to January of the next year. The vessel, MV Madeleine, is owned by the federal government and chartered by the company. In 2004-2005, passenger traffic at the Souris terminal was 108,000 passengers and 35,000 vehicles.

Deep Blue Marine Inc. Moves the Charity Eden to Florida to Begin Contract Work in the Keys

Key West FL July 6, 2006 - Deep Blue Marine is working with owners of derelict vessels in the State of Florida to provide a recovery and/or removal and salvage operations of vessels lost in Hurricane Wilma and other storms in the recent past, depending on the individual case. The contracts at this time are with individual owners and not with any government entity.

The company has entered into a services agreement with Jim Cross of Cross Marine to perform these contracts. Mr. Cross has had vast experience in raising sunken boats and aircraft. Mr. Cross has recovered over 100 boats and over 50 aircraft for both private individuals and government agencies. Mr. Cross played a key role in the recovery of victims and aircraft wreckage 2 weeks ago in Utah Lake, that recovery caused a short delay in moving the Charity Eden to Florida. But the boat is now on site and ready to start work.

Wilf Blum, President of Deep Blue Marine Inc. is quoted as saying, "The income derived from this service we are providing should more than offset the cost of operations in the areas we are currently diving in the treasure recovery contracts we have." He further stated, "We were in contact last week with the individual we are currently working with on permits for North Carolina and we have been informed that the process is going forward at a good pace and we should have a dredge and fill permit within the next few weeks. So on those two fronts things are moving along very well."

The company has also purchased 2 more boats, one is a small (24 foot 90 HP) shallow draft pontoon boat to be used for trash recovery in several shallow water areas in the Keys, and the other is a larger faster boat (25 foot with twin 200 HP outboards) to be used as a go between to re-supply the crews currently working on the Deep Scan the Charity Eden and the small pontoon boat.

Regulations to Prevent Vessels From Discharging Sewage in the Bras D’Or Lake

Ben Eoin NS July 6, 2006 - Regulations to prevent the discharge of sewage by all recreational and commercial vessels operating in Bras d’Or Lake, Nova Scotia, were announced today by the Honorable Peter MacKay, Minister of Foreign Affairs and Minister responsible for the Atlantic Canada Opportunities Agency, on behalf of the Honorable Lawrence Cannon, Minister of Transport, Infrastructure and Communities. The Pleasure Craft Sewage Pollution Prevention Regulations will further protect the aquatic species in the lake, as well as the health and safety of its users.

Over the past years, there have been multiple programs to help educate users of Bras d’Or Lake on how to protect the aquatic environment. These programs have included advertising and information campaigns. However, as a result of ongoing sewage contamination, shellfish harvesting has had to be curtailed in some areas, while some of the lake’s beaches had to be closed.

"The Government of Canada knows how important these requirements are to the marine environment and Nova Scotians," said Minister MacKay. "By prohibiting the discharge of sewage into Bras d’Or Lake, the quality of the water will be enhanced and fish and wildlife habitat will be protected for years to come."

"We must work hard to protect our natural treasures," said Minister Cannon. "Bras d’Or Lake in Nova Scotia is definitely one of them, and we are proud to have worked closely with provincial and local authorities to bring about tougher regulations."

"Bras d’Or Lake is Cape Breton’s jewel and one of Nova Scotia’s most beautiful natural attractions," said Mark Parent, Nova Scotia’s Minister of Environment and Labor. "That’s why it was so important for the Government of Nova Scotia, in cooperation with a group of dedicated stakeholders, to propose this regulatory change. The regulations will help to ensure the lake remains a healthy place for generations to come."

Bras d’Or Lake is being designated the first lake in Nova Scotia where pleasure craft cannot discharge sewage into the lake. The Pitu’paq Partnership, the Una’maki Institute of Natural Resources, the Bras d’Or Stewardship Society, the Nova Scotia Office of Economic Development, the Nova Scotia Department of Tourism and Culture, the Nova Scotia Department of Environment and Labor, the Nova Scotia Department of Natural Resources, Environment Canada and Fisheries and Oceans Canada collaboratively submitted an application for the designation.

Today’s requirements will make Bras d’Or Lake the first body of water with this designation in Nova Scotia and will add it to other designated bodies of water in British Columbia and Manitoba. Vessel operators will be prevented from discharging sewage in all connected waters between Carey Point and Noir Point in Great Bras d’Or, south of Alder Point in Little Bras d’Or and north of the seaward end of St. Peters Canal.

The requirements have been developed through extensive consultations with the public, municipalities and provincial and federal governments. Users of the lake have also been advised of this upcoming change by means of signs placed around the lake during the summer, and brochures distributed at major events and locations frequently used by boaters.

The requirements were published in the Canada Gazette, Part II on June 28, 2006.

World’s Largest Container Ship Delivered to Lloyd’s Register Class

London July 6, 2006 - The world’s largest container ship, Xin Los Angeles, has been delivered by Samsung Heavy Industries Co Ltd (SHI) to Lloyd’s Register class. The ship is owned by China Shipping Container Lines (CSCL) and is operated by China International Shipmanagement Company Ltd, a joint venture between CSCL and V.Ships.

The ship is 9,600 teu and is the first in a series of eight being built by SHI. The ship will trade from China to Europe initially and will eventually also trade to the US.

Xin Los Angeles can carry a maximum of 18 rows of containers by eight tiers on the weather deck and 16 rows by 10 tiers in the holds.

The principal dimensions of the ship are:

336.7 meters length overall

45.6 meters beam

15.0 meters draught.

The ship is propelled by a MAN B&W 12K98MC-C Mk6, with a power of 68,520 kW. During sea trials the ship achieved a ballast service speed of 25.4 knots.

Xin Los Angeles is unique not only in terms of size, but also in its design aspects. The ship has been assigned Lloyd’s Register’s Environmental Protection Notation, which recognizes vessels, which exceed current statutory environmental requirements. The ship has a certified ballast water management system and has detailed procedures and systems in place for dealing with refrigerants, garbage and sewage and will also run on low-sulphur fuel. The ship is also enrolled in Lloyd’s Register’s Ship Emergency Response Service (SERS), a naval architectural consultancy service which provides technical support in the event of an incident such as a grounding or collision. As part of SERS, the operator will undergo a set number of ship emergency response exercises during the course of a given calendar year.

Xin Los Angeles has also been assigned Lloyd’s Register’s Crew Accommodation Comfort Notation. This means that the vessel has been designed to mitigate noise and vibration levels. A high specification of noise dampening material has been employed throughout the accommodation, and the vessel has been designed to minimize vibration aspects, by assessing main engine vibration characteristics, propeller design and equipment specification.

"We are very pleased that the close co-operation between the owner’s, the yard’s and our site teams resulted in the successful and timely completion of this highly notable vessel," says Duncan Duffy, Surveyor in Charge, Lloyd’s Register Koje. "We congratulate both the owner and the yard on this record-breaking achievement."

"We at SHI are proud of our container-ship building ability. We believe that we are at the leading edge of container ship design, having already developed a 12,000 teu container ship design, in co-operation with Lloyd’s Register. We will continue to focus on research and development in this area, and we hope to unveil in due course a design for a 14,000 teu container ship," says Kim Jing Wan, CEO of SHI.

"We have an ambitious strategy for building the container ship fleet of the future. We are pushing the size envelope because we believe that future market demand, coupled with the increasing importance of Chinese trade to the world economy requires an innovative, forward-thinking response to ship design and construction. The excellent teamwork between ourselves, SHI and Lloyd’s Register has helped us to achieve our objectives in this respect," says Xin Yan Lin, Site Manager, China Shipping Group.

Lloyd’s Register is a leading classification society in Korea for post-Panamax container ship tonnage. We classed the first 6,700 teu, 8,100 teu and 9,600 teu designs in Korea and will class the first 10,000 teu design to be delivered by a Korean yard. The next in the series of eight 9,600 teu ships, the CSCL Busan, will be delivered by SHI to Lloyd’s Register class in September 2006.

Aker Kværner form new powerful FPSO operations entity

July 6, 2006 - Aker Kvaerner and the Norwegian ship owner Aktieselskabet Borgestad ASA establish a new company named Aker Borgestad Operations AS, combining expertise within oil field processing and marine operations. The new company will operate oil and gas production vessels on behalf of Aker Floating Production, a company which owns several Floating Production Storage and Offloading (FPSO) units. This business model allows Aker Floating Production to remain focused on developing business, leveraging Aker Kvaerner and Borgestad, which both have operations of assets as part of their core business.

The Aker Kvaerner company Aker Kvaerner Operations AS and Aktieselskabet Borgestad ASA will each own 45 per cent of the shares in Aker Borgestad Operations, while Aker Floating Production ASA and Aker Yards ASA will own 5 per cent each. Aker Floating Production has so far acquired three tankers which will be converted to FPSOs. The company plans to develop and own a minimum of four FPSO's. It has selected the jointly established company as their partner to undertake the responsibility for the operation of the vessels. The companies behind Aker Borgestad Operations have extensive experience related to oil and gas processing, marine operations and optimization, Health, Safety and Environment (HSE) issues, and this will form the basis for the operations services to Aker Floating Production.

"By combining the competence of Aker Kvaerner and Borgestad in this new venture, our Smart FPSOs will have access to premier expertise within both process technology and marine operations, says Svein Olsen, President & CEO of Aker Floating Production. The new company will be established in Brevik on Norway's southeastern coast. "This region is well-known for its long industrial and marine tradition, which represents a strong basis for recruitment of key resources," Mr Olsen adds.

Aker Kvaerner Operations was established in 2003 for provision of operational competence and resources to offshore operators. Provision of operational services on FPSO's is a natural and important development for Aker Kvaerner Operations, and will extend the market and customer base for the company.

Aktieselskabet Borgestad ASA, shipping activity is focused on technical management of open-hatch bulk carriers. The company has technical management of eleven vessels.

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