[Federal Register Volume 61, Number 51 (Thursday, March 14, 1996)]
[Notices]
[Page 10617]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6132]



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DEPARTMENT OF TRANSPORTATION
Maritime Administration
[Docket S-934]


American President Lines, LTD.; Notice of Application for a 
Waiver of Section 804(a) of the Merchant Marine Act, 1936, as Amended, 
To Permit Certain Foreign-Flag Operations

    American President Lines, Ltd. (APL), by application dated March 3, 
1996, requests waiver of the provisions of section 804(b) of the 
Merchant Marine Act, 1936, as amended (Act), for foreign-flag 
operations of APL under the terms of Operating-Differential Subsidy 
Agreement (ODSA), Contract MA/MSB-417, in order to permit APL to 
operate two foreign-flag vessels of approximately 2,700 TEU capacity in 
APL's Extension Services in the voyage between Kaohsiung and Fujayrah. 
The waiver is requested for the remaining term of APL's ODSA contract, 
i.e., through December 31, 1997.
    Since APL's two U.S.-flag vessels intended for Extension Service 
will be drydocked during 1996, APL also seeks permission to operate a 
third foreign-flag vessel to perform dry-dock relief sailings during 
the periods the U.S.-flag vessels are out of service.

APL's Existing Services

    For a number of years, APL has performed its Southeast and South 
Asia and Persian Gulf service authority on Trade Route 8--APL's so-
called Extension Service authority--using U.S.-flag vessels linked to 
APL's transpacific line haul services at Kaohsiung. Since late 1988, 
the Extension Service has been provided using the four U.S.-flag L9 
vessels, the PRESIDENTs ARTHUR, BUCHANAN, GARFIELD, and HARDING, that 
APL has on bareboat charter from Lykes Bros. Steamship Co., Inc. 
(Lykes), performing weekly sailings on an itinerary Kaohsiung-
Singapore-Colombo-Fujayrah.
    APL's charters of the L9s will expire during April and May of this 
year. APL reports that it has been negotiating with Lykes over an 
extension of the L9 charters, but has been recently informed there will 
be no extension of the bareboat charters, and it is Lykes' intention to 
operate the L9s in Lykes' own services.
    Accordingly, APL has an urgent need to find four suitable vessels 
to replace the L9s in order to permit APL to continue to operate the 
Extension Services. APL states that it has two such vessels in its own 
fleet, the PRESIDENTs EISENHOWER and F.D. ROOSEVELT. There are U.S.-
flag subsidy eligible vessels of approximately 2,700 TEU capacity 
capable of operating at a speed of 22 knots. However, after a 
canvassing U.S.-flag tonnage, APL has determined that there are no 
additional subsidy-eligible U.S.-flag vessels that are suitable for 
operation alongside the PRESIDENTs EISENHOWER and F.D. ROOSEVELT in 
this service. APL states, that they must rely on foreign-flag tonnage 
to supplement the PRESIDENTs EISENHOWER and F.D. ROOSEVELT in 
performing the Extension Service, and hereby seek a section 804(b) 
waiver to do so, using two foreign-flag vessels that are compatible 
with the PRESIDENTs EISENHOWER and F.D. ROOSEVELT.
    This application may be inspected in the Office of the Secretary, 
Maritime Administration. Any person, firm, or corporation having any 
interest in such request within the meaning of section 804 of the Act 
and desiring to submit comments concerning the application must file 
written comments in triplicate with the Secretary, Maritime 
Administration, Room 7210, Nassif Building, 400 Seventh Street SW., 
Washington, D.C. 20590. Comments must be received no later than 5:00 
p.m. on March 22, 1996. This notice is published as a matter of 
discretion and publication should in no way be considered a favorable 
or unfavorable decision on the application, as filed or as may be 
amended. The Maritime Administrator will consider any comments 
submitted and take such action with respect thereto as may be deemed 
appropriate.

(Catalog of Federal Domestic Assistance Program No. 20.804 
(Operating-Differential Subsidies))

    By Order of the Maritime Administrator.

    Dated: March 11, 1996.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 96-6132 Filed 3-13-96; 8:45 am]
BILLING CODE 4910-81-P