[Federal Register Volume 65, Number 110 (Wednesday, June 7, 2000)]
[Notices]
[Pages 36218-36219]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-14354]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

[Docket MARAD-2000-7470]


Farrell Lines Incorporated; Notice of Application for approvals 
to the proposed transfer of Maritime Security Program Operating 
Agreements MA/MSP-18 through 20

    By applications dated June 1, 2000, Farrell Lines Incorporated 
(Farrell) and counsel for FLI Ships, Inc. (FLI Ships) have notified the 
Maritime Administration (MARAD) of the proposed transfer of three 
Maritime Security Program (MSP) Operating Agreements (MA/MSP-18 through 
20) from Farrell to FLI Ships, a wholly owned subsidiary of Farrell, 
pursuant to section 652(j) of Subtitle B, Title VI, Merchant Marine 
Act, 1936, as amended (1936 Act). The vessels currently covered by 
those contracts are presently owned by FLI Ships, and will continue to 
be covered by those contracts after transfer.
    The transfer of MSP Operating Agreements MA/MSP-18 through 20 is 
part of a series of overall transactions whereby Farrell will merge 
with P & O Nedlloyd Acquisition Corporation, a wholly owned subsidiary 
of P & O Nedlloyd Limited. After merger, Farrell will be the surviving 
entity (reconstituted Farrell).
    With respect to the transfer of MSP Operating Agreements, section 
652(j) of the 1936 Act provides that ``A Contractor under an operating 
agreement may transfer the agreement (including all rights and 
obligations under the agreement) to any person eligible to enter into 
that Operating Agreement under this subtitle after notification of the 
Secretary [of Transportation] in accordance with regulations prescribed 
by the Secretary, unless the transfer is disapproved by the Secretary 
within 90 days after the date of Notification. A person to whom an 
Operating Agreement is transferred may receive payments from the 
Secretary under the agreement only if each vessel to be covered by the 
agreement after the transfer is an eligible vessel under section 
651(b).''
    In implementing the proposed transaction, FLI Ships is to be spun 
off by sale of all its stock to FLI Ships Holdings, Inc. (Holdings), a 
U.S. citizen corporation within the meaning of section 2 of the 
Shipping Act, 1916, as amended. Holdings will be independently 
capitalized and operationally independent of P & O Nedlloyd Limited and 
any of its affiliates. The MSP vessels will be time chartered from FLI 
Ships to either P&ONL FAME, Inc. (FAME), a U.S. documentation citizen 
owned by P & O Nedlloyd B.V., a Dutch corporation, or to a 
reconstituted Farrell for operation. In the event that Farrell becomes 
the time charterer, it will also become a documentation citizen. The 
time charters of two other MSP vessels owned by First American Bulk 
Carrier Corp. (FABC) and chartered to Farrell, will be novated to 
either FAME, or remain with the reconstituted Farrell for operation. 
FLI Ships will manage and operate the former Farrell vessels utilizing 
former Farrell personnel. The FABC vessels will continue to operate 
under their existing charters. One additional vessel operated by 
Farrell under bareboat charter from MARAD may be turned back to MARAD 
subject to settlement under that charter. Another vessel bareboat 
chartered by

[[Page 36219]]

Farrell under a sale/leaseback agreement will most likely be paid off 
and scrapped.
    A redacted copy of the transfer application will be available for 
inspection at the Department of Transportation (DOT) Dockets Facility 
and on the DOT Dockets website (address information follows). Any 
person, firm or corporation having an interest in this proposal, and 
desiring to submit comments concerning the application, may file 
comments as follows. You should mention the docket number that appears 
at the top of this notice. Written comments should be submitted to the 
Docket Clerk, U.S. DOT Dockets, Room PL-401, Nassif Building, 
Department of Transportation, 400 Seventh Street, SW, Washington, D.C. 
20590. Comments may also be submitted by electronic means via the 
internet at http://dmses.dot.gov/submit/. You may call Docket 
Management at (202) 366-9324. You may visit the docket room to inspect 
and copy comments at the above address between 10 a.m. and 5 p.m. EDT, 
Monday through Friday, except holidays. An electronic version of this 
document is available on the World Wide Web at http://dms.dot.gov. 
Comments must be received by close of business June 14, 2000.
    This notice is published as a matter of discretion, and the fact of 
its publication should in no way be considered a favorable or 
unfavorable decision on the application, as filed, or as may be 
amended. MARAD will consider all comments submitted in a timely 
fashion, and will take such action thereto as may be deemed 
appropriate.

    By Order of the Maritime Administration.

    Dated: June 2, 2000.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 00-14354 Filed 6-6-00; 8:45 am]
BILLING CODE 4910-81-P