[Federal Register Volume 65, Number 55 (Tuesday, March 21, 2000)]
[Notices]
[Pages 15194-15195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-6894]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

[Docket Number: MARAD-2000-7075]


Requested Administrative Waiver of the Coastwise Trade Laws

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Invitation for public comments on a requested administrative 
waiver of the Coastwise Trade Laws for the vessel CALEDONIA.

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SUMMARY: As authorized by Public Law 105-383, the Secretary of 
Transportation, as represented by the Maritime Administration (MARAD), 
is authorized to grant waivers of the U.S. build requirement of the 
coastwise laws under certain circumstances. A request for such a waiver 
has been received by MARAD. The vessel, and a description of the 
proposed service, is listed below. Interested parties may comment on 
the effect this action may have on U.S. vessel builders or businesses 
in the U.S. that use U.S.-flag vessels. If MARAD determines that in 
accordance with Pub. L. 105-383 and MARAD's regulations at 46 CFR part 
388 (65 FR 6905; February 11, 2000) that the issuance of the waiver 
will have an unduly adverse effect on a U.S.-vessel builder or a 
business that uses U.S.-flag vessels, a waiver will not be granted.

DATES: Submit comments on or before April 20, 2000.

ADDRESSES: Comments should refer to docket number MARAD-2000-7075.
    Written comments may be submitted by hand or by mail to the Docket 
Clerk, U.S. DOT Dockets, Room PL-401, Department of Transportation, 400 
7th St., S.W., Washington, D.C. 20590-0001. You may also send comments 
electronically via the Internet at http://dmses.dot.gov/submit/. All 
comments will become part of this docket and will be available for 
inspection and copying at the above address between 10 a.m. and 5 p.m., 
E.T., Monday through Friday, except federal holidays. An electronic 
version of this document and all documents entered into this docket is 
available on the World Wide Web at http://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: Michael Hokana, U.S. Department of

[[Page 15195]]

Transportation, Maritime Administration, MAR 832 Room 7201, 400 Seventh 
Street, SW, Washington, DC 20590. Telephone 202-366-0760.

SUPPLEMENTARY INFORMATION: Title V of Pub. L. 105-383 provides 
authority to the Secretary of Transportation to administratively waive 
the U.S.-build requirements of the Jones Act, and other statutes, for 
small commercial passenger vessels (less than 12 passengers). This 
authority has been delegated to the Maritime Administration per 49 CFR 
1.66, Delegations to the Maritime Administrator, as amended. By this 
notice, MARAD is publishing information on a vessel for which a request 
for a U.S.-build waiver has been received, and for which MARAD requests 
comments from interested parties. Comments should refer to the docket 
number of this notice and the vessel name in order for MARAD to 
properly consider the comments. Comments should also state the 
commentor's interest in the waiver application, and address the waiver 
criteria given in Sec. 388.4 of MARAD'S regulations at 46 CFR part 388.

Vessel Proposed for Waiver of the U.S. Build Requirement

    (1) Name of vessel and owner for which waiver is requested: 
CALEDONIA, USCG Documentation No. 679530 owner: Hydeman Boat Leasing 
Company, LLC.
    (2) Size, capacity and tonnage of vessel: Documented length: 84.9 
feet, actual length: 98 feet, breadth: 18.6 feet, capacity 6 
passengers. The tonnage of the CALEDONIA is measured pursuant to 46 
U.S.C. 14502. The U.S.C.G. documented tonnage is Gross 99 and Net 67.
    (3) Intended use for vessel, including geographic region of 
intended operation and trade. According to the applicant: ``The 
CALEDONIA will continue to offer crewed charter service departing from 
a port in the San Juan Islands of Washington State traveling to the 
Canadian Gulf Islands and Desolation Sound, British Columbia. 
Currently, service is either round-trip to the same point of departure 
or one way to a Canadian destination. New service will offer guests the 
opportunity to board at one port in the San Juan Islands and to depart 
at another port in the Islands. Typically the CALEDONIA is contracted 
to one individual with a party of no more than six for a minimum of 
seven (7) days. The average cost of a seven (7) day charter is $25,000 
including expenses. Charters are offered in this region from June 1st 
to September 15th. The CALEDONIA offers charters in Mexico during the 
remaining months of the year.''
    (4) Date and place of construction and (if applicable) rebuilding. 
Date of construction: 1973. Place of original construction: Bergen Op 
Zoom, Netherlands and was reconstructed/rebuilt in Marina Del Rey, 
California in 1996.
    (5) A statement on the impact this waiver will have on other 
commercial passenger vessel operators. According to the applicant: 
``This waiver will have minimal impact on other commercial vessel 
operators in the region. The CALEDONIA has offered charters in this 
region for 5 years at near capacity during the operating season. The 
charters currently offered in this region operate in the waters of the 
San Juan Islands and most spend a portion of a seven (7) day charter in 
British Columbia. The only benefit of this waiver will be one of 
convenience in arranging departing floatplane and ferry arrangements 
for CALEDONIA's passengers. This waiver will not substantially change 
the service offered by the CALEDONIA and will not affect the 
competition in the charter market in this region.
    The tourist industry in this region is significant yet only five 
vessels offer multi-day private charters. Two of these spend a 
significant portion of the season operating outside the area directly 
affected by this waiver. In addition, despite the increased interest in 
water-based travel and the need for more charter companies, there are 
no cruise ship operations in this region except for small certified 
passenger ships cruising in the area in late spring on the way to 
Alaska. The other four charter vessels offered for service in this 
region and market are:

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            Name               Length            Rate/Week            Pax                                      Region
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Jamal.......................       74  $19,500.....................      6  Seattle, San Juan Islands, British Columbia, Alaska.
Phantom.....................       71  18,500......................      6  San Juan Islands, British Columbia.
                                       plus expenses...............
Westward....................       86  15,000......................      6  Seattle, San Juan Islands, British Columbia.
Olympus.....................       97  28,000......................      8  Seattle, San Juan Islands, British Columbia.
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    (6) A statement on the impact this waiver will have on U.S. 
shipyards. According to the applicant: ``This waiver will not have a 
negative impact on U.S. shipyards. In fact, the $950,000 spent in the 
1996 re-construction of the CALEDONIA in California exceeded the 
$760,000 purchase price and greatly benefited a U.S. shipyard. Further 
such benefits will be reaped by U.S. shipyards as the CALEDONIA 
repaired and re-fitted while engaging in coastwise trade.
    Moreover, a U.S.-built vessel of this type would be difficult to 
obtain on the West Coast and prohibitively expensive. Most U.S. 
builders of this type of vessel are located on the East Coast or have 
recently moved production facilities to the Far East. Thus, with 
production low and demand high for a U.S. vessel, it would be too 
expensive for a charter operation of this type in the region of the San 
Juan Islands to acquire a U.S. built vessel.''


    By Order of the Maritime Administrator.

    Dated: March 15, 2000.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 00-6894 Filed 3-20-00; 8:45 am]
BILLING CODE 4910-81-P