[Federal Register Volume 61, Number 101 (Thursday, May 23, 1996)]
[Notices]
[Page 25936]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12878]



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DEPARTMENT OF TRANSPORTATION
[Docket S-937]


American President Lines, Ltd.; Notice of Application for 
Amendment of Existing Waiver of Section 804(a) of the Merchant Marine 
Act, 1936, as Amended

    American President Lines, Ltd. (APL), by application dated May 9, 
1996, requests a change in an existing waiver of the provisions of 
section 804(a) of the Merchant Marine Act, 1936, as amended, for 
foreign-flag operations of APL, under Operating-Differential Subsidy 
Agreement, Contract MA/MSB-417.
    APL has authority, under a previous section 804 waiver, dated 
August 10, 1994, to charter slots on Transportacion Maritima Mexicana 
S.A. de C.V. (TMM) vessels that serve between Mexico, California and 
the Far East. While the preponderant use by APL of those slots has been 
for Mexico-Far East cargoes, APL has been using its allocation of slots 
on TMM vessels to carry a small volume of U.S. commerce cargo between 
California and the Far East, pursuant to the 804 waiver.
    In its May 9, 1996, application, APL states that TMM is in the 
process of restructuring its Far East service to add larger and faster 
ships, a result that significantly increases the capacity of the 
service. The new service, which TMM has already commenced, will be 
operated with six vessels with an effective capacity of up to 2,800 
TEUs on an itinerary Mazanillo-San Pedro-Ykohama-Kobe-Hong Kong-
Koahsiung-Kobe-Yokohama-San Pedro-Manzanillo.
    APL states that due to the increased TMM vessel capacity, it is 
applying for an amendment to its August 10, 1994, waiver to increase 
from 50 FEU to 195 FEU, both inbound and outbound, the number of weekly 
slots on the TMM vessels that APL may use for the carriage of U.S. 
commerce cargo.
    APL indicates that its primary focus in a slot charter arrangement 
with TMM has been and continues to be the Mexico-Asia market. APL 
points out that direct service to Mexico ports is a far more efficient 
and less costly way for APL to serve the Mexico-Asia market than 
intermodally by a combination of all-water service between California 
and Asia and relay overland service between California and Mexico. 
However, APL states that the Mexico/Asia market is not large enough for 
APL to dedicate its own vessels to that trade. Accordingly, APL asserts 
that the charter of slots on TMM vessels is a necessary vehicle for APL 
to provide direct all-water service to the Mexico market.
    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, 400 Seventh Street SW., Washington, DC 
20590. Comments must be received no later than 5:00 p.m. on May 30, 
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: May 16, 1996.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 96-12878 Filed 5-22-96; 8:45 am]
BILLING CODE 4910-81-P