[Federal Register Volume 66, Number 152 (Tuesday, August 7, 2001)]
[Notices]
[Pages 41305-41306]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19667]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

[Docket Number: MARAD-2001-10295]


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 SAFARI ESCAPE.

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SUMMARY: As authorized by Pub. L. 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 September 6, 2001.

ADDRESSES: Comments should refer to docket number MARAD-2001-10295. 
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., SW, Washington, DC 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: Kathleen Dunn, U.S. Department of 
Transportation, Maritime

[[Page 41306]]

Administration, MAR-832 Room 7201, 400 Seventh Street, SW., Washington, 
DC 20590. Telephone 202-366-2307.

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 (no more 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 
commenter'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. Name of 
vessel: SAFARI ESCAPE. Owner: Safari Escape Charters, LLC.
    (2) Size, capacity and tonnage of vessel. According to the 
applicant: ``Registered length: 89.2'; Registered beam: 20.5'; 
Registered depth: 11.2'; Gross ITC tonnage: 151; Net ITC tonnage: 45.''
    (3) Intended use for vessel, including geographic region of 
intended operation and trade. According to the applicant: ``The M/V 
Safari Escape caters to a specific demographic profile in the overall 
cruise market. It is providing a luxury yacht option with regularly 
scheduled departures via stateroom or charter.'' ``The geographic area 
of operation will be the Alaska Inside Passage, Southeast Alaska, the 
pacific Northwest area including Puget Sound and the San Juan Islands 
of Washington State.''
    (4) Date and Place of construction and (if applicable) rebuilding. 
Date of construction: 1983. Place of construction: Brisbane, Australia
    (5) A statement on the impact this waiver will have on other 
commercial passenger vessel operators. According to the applicant: 
``The M/V Safari Escape operates within a niche market. In fact, it 
occupies a position in the luxury yacht ``sub-niche'' within the small 
ship arena * * *. There are seven other small ship companies operating 
in Alaska's Inside Passage, with a combined total of 20 vessels * * *.
    A few 12-passenger overnight boats serve Alaska's Inside Passage, 
but this market could easily sustain more vessels of this type and 
size. The charter market is dramatically under-served.
    Boats that are known to operate in this geographic region in this 
size category (in addition to The Boat Co.12-passenger ``Observer'' * * 
*) are the Alaska Song, Catalyst, Heron and the Midnight Sun. * * * The 
M/V Safari Escape would have little or no impact on the other small 
vessels in this market since they are selling to different groups of 
clientele or are so few in number.
    The Pacific Northwest/British Columbia region with pertinent 
cruises originating and terminating in Seattle receives sporadic cruise 
ship activity. Spring and fall positioning cruises en route to and from 
Alaska are the staple of most operators. The only consistent operator 
of round trip Seattle cruises into Pacific Northwest is Cruise West 
with one boat carrying about 80 passengers. The luxury overnight yacht, 
M/V Safari Escape, would not pose an economic threat to this or other 
small charter boat operators as it would be the only luxury yacht home 
ported in Seattle, marketing regularly-scheduled stateroom and charter 
departures.
    The overall cruise market is growing each year at a pace of about 
9% and * * *. The M/V SARARI ESCAPE provides some minor relief to this 
market demand. Granting coastwise privileges as this overnight cruise 
market continues to surge would not economically disadvantage other 
boats.''
    6) A statement on the impact this waiver will have on U.S. 
shipyards. According to the applicant: ``U.S. Shipyards would not be 
losing business if coastwise privileges were to be assigned to the M/V 
Safari Escape. On the contrary, this boat's entry into full coastwise 
operations in the near future would stimulate market awareness for this 
specific utilization * * *. The momentum created by the M/V Safari 
Escape's coastwise operations can generate more contracts with U.S. 
boat builders to meet future demand.
    The M/V Safari Escape is presently undergoing a 1.0 million dollar 
rebuild in Fort Lauderdale, Florida. This work is being done in 
anticipation of being granted a coastwise wavier. In summary, U.S. 
shipyards would stand to gain additional economic benefit, rather then 
losing any opportunity to build a new vessel(s), if coastwise 
privileges are approved for the M/V Safari Escape.''

    Dated: August 1, 2001.
    By Order of the Maritime Administrator.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 01-19667 Filed 8-6-01; 8:45 am]
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