[Federal Register Volume 60, Number 236 (Friday, December 8, 1995)]
[Notices]
[Page 63119]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30031]
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
[Docket S-929]
Mormac Marine Transport, Inc.; Notice of Application for Written
Permission Under Section 805(a) of the Merchant Marine Act, 1936, as
Amended
Mormac Marine Transport, Inc. (Transport) by letter of November 22,
1995, requests, pursuant to section 805(a) of the Merchant Marine Act,
1936, as amended (Act) and Article II-13 of Operating-Differential
Subsidy Agreements (ODSA) MA/MSB-295(a), (b), and (c), written
permission to expand the scope of domestic operations permitted under
the ODSA Contract MA/MSB-295 to include the management and operation of
the vessels POTOMAC TRADER, DELAWARE TRADER, and CHESAPEAKE TRADER
(Vessels) for Attransco, Inc. (Attransco), pursuant to a management
agreement to be entered into between Mormac Marine Enterprises (Mormac)
and Attransco.
Mormac and Transport are owned by Mormac Marine Group, Inc.
(Parent). Transport, Mormac and the Parent have common ownership as
well as common directors and officers.
Transport states that pursuant to a management agreement to be
entered into between Attransco and Mormac, Mormac will become the
manager of the Vessels. The Vessels, Transport continues, will be used
in the Jones Act trade in essentially the same manner as is currently
the case. Transport explains that since the Vessels will essentially
continue their current services as they have been used by Attransco,
the management of the Vessels by Mormac will not result in any change
in competitive conditions for U.S.-flag vessels providing service in
the Jones Act trade. Transport further explains that it and Mormac are
entirely separate corporate entities that will maintain separate and
discreet accounts so there will be no issue of subsidy leakage.
Furthermore, Transport continues, the only benefit which Mormac will
receive in respect of the operation of the Vessels will be a management
fee, and all other benefits of operations will redound to Attransco.
In Transport's views, no U.S.-flag competitor of the Vessels will
be subject to any changed circumstances or unfair competition as a
result of the change in management of the Vessels, nor will the
operation of the Vessels by an affiliate of Transport be prejudicial to
the purposes and policies of the Act.
In summary, Transport requests that the scope of domestic
operations permitted under ODSA Contracts MA/MSB-295 (a), (b), and (c)
be modified to incorporate the management and operation of the Vessels
and requests approval for common ownership, officers and directors of
Mormac and Transport.
Finally, Transport advises that Mormac will assume management
responsibilities of the Vessels on January 1, 1996.
The application may be inspected in the Office of the Secretary,
Maritime Administration. Any person, firm or corporation having any
interest (within the meaning of section 805(a)) in Transport's request
and desiring to submit comments concerning the request must by 5:00 pm
on December 15, 1995, file written comments in triplicate with the
Secretary, Maritime Administration, together with a petition for leave
to intervene. The petition shall state clearly and concisely the
grounds of interest, and the alleged facts relied on for relief.
If no petition for leave to intervene is received within the
specified time or if it is determined that petitions filed do not
demonstrate sufficient interest to warrant a hearing, the Maritime
Administration will take such action as may be deemed appropriate.
In the event petitions regarding the relevant section 805(a) issues
are received from parties with standing to be heard, a hearing will be
held, the purpose of which will be to receive evidence under section
805(a) relative to whether the proposed operations (a) would result in
unfair competition to any person, firm, or corporation operating
exclusively in the coastwise or intercoastal service, or (b) would be
prejudicial to the objects and policy of the Act relative to domestic
trade operations.
(Catalog of Federal Domestic Assistance Program No. 20.805
(Operating-Differential Subsidies)).
By Order of the Maritime Administrator.
Dated: December 6, 1995.
Joel C. Richard,
Secretary.
[FR Doc. 95-30031 Filed 12-7-95; 8:45 am]
BILLING CODE 4910-81-P
