Thursday, October 30, 1997
 

Oberstar Praises MarAd Approval Of APL-NOL Transfer
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WASHINGTON - The ranking Democrat on the House Transportation and Infrastructure Committee, Rep. James Oberstar, today voiced his support for a federal Maritime Administration ruling that paves the way for the purchase of American President Lines, Ltd. by Neptune Orient Lines.
Under the terms today's ruling, APL will transfer its Maritime Security Operating Agreements to a new company, California-based American Ship Management, LLC, which will operate and maintain nine ships of APL's fleet. American Ship Management will also provide U.S. crews for the ships.
Under the Maritime Security Act, shipping lines are provided a subsidy for making their vessels available for military sealift in times of international crisis. The Act, however, limits this subsidy to vessels flying the American flag and carrying American crews. APL currently has five ships operating under this program, and will re-flag to U.S. registry four ships now registered in the Marshall Islands. By virtue of today's Maritime Administration ruling, APL will transfer the Maritime Security Operating Agreements for all nine vessels to American Ship Management.
After the Maritime Commission announced its ruling, Rep. Oberstar (D-Minn.) issued the following statement:
"I am pleased that the Maritime Administration has decided to approve the transfer of APL's nine Maritime Security Operating Agreements under the Maritime Security Act to American Ship Management, LLC.
"I have always been a strong supporter of the Maritime Security Act and I believe that this decision will preserve a modern fleet of commercial vessels sailing under the U.S. flag. In fact, this transaction will put four additional container ships under the U.S. flag, and, like the five American flag ships already operating, these vessels will be among the most modern and efficient ships in the world fleet.
"In addition to increasing tonnage under the American flag, the transaction will promote our national security. American Ship Management will enroll all nine vessels in the Voluntary Intermodal Sealift Agreement program. In addition, APL will make available its extensive, world-wide intermodal and management resources to the program.
"This decision will foster the very benefits we envisioned in enacting the Maritime Security Act. This transaction will mean more vessels will be flying the American flag, and carry American crews."

 

 
 


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For additional information, contact:
Jim Berard, Democratic Director of Communications
House Committee on Transportation and Infrastructure
2167a Rayburn House Office Building
(202) 225-6260

Tom Gavin, Press Assistant
Rep. Bob Wise
2367 Rayburn House Office Building
(202) 225-2711