[Federal Register Volume 62, Number 131 (Wednesday, July 9, 1997)]
[Notices]
[Pages 36868-36869]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18048]
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
[Docket MSP-007/Docket S-946]
American President Lines, LTD.; Application for Approvals for
Proposed Transfer of Operating-Differential Subsidy Agreement (MA/MSB-
417) and Maritime Security Program Operating Agreements (MA/MSP-1
Through MA/MSP-9)
American President Lines, Ltd. (APL) by letter dated June 25, 1997,
applied to the Maritime Administration (MARAD), for all approval,
findings, and determinations necessary in order to transfer APL's
Operating-Differential Subsidy Agreement, Contract MA/MSB-417 (ODSA)
and notice of APL's planned transfer of Maritime Security Program
Operating Agreements MA/MSP-1 through MA/MSP-9 (MSP) to American Ship
Management, LLC (ASM). The proposed transfer would be effectuated
immediately prior to the effective time of the proposed merger of APL
Limited (Limited) and Neptune U.S.A., Inc. pursuant to the Agreement
and Plan of Merger dated as of April 13, 1997 among Limited, Neptune
Orient Lines, Ltd. and Neptune U.S.A., Inc. (Merger).
More particularly, the approval, findings and determinations
requested include those that may be deemed necessary under statute,
regulation or contract in order:
1. For APL (or the corporate affiliate(s) of APL holding title) to
transfer title to all vessels currently operated under the ODSA and to
be operated under MSP Operating Agreements to an Owner Trustee;
2. For APL to transfer the ODSA and MSP to ASM;
3. For the owner trustee to bareboat charter the ODS Vessels to ASM
for operation by ASM under the ODSA for the remaining term of the ODSA,
and to bareboat charter the MSP vessels to ASM for the term of the MSP
Operating Agreements; and
4. For ASM to time charter the ODS Vessels to APL for the remaining
term of the ODSA and to time charter the MSP vessels to APL for the
term of the MSP Operating Agreements.
APL considers it important to make clear that although effectuation
of the proposed transfer of the ODSA is conditioned on transfer of
APL's MSP Operating Agreements to ASM--the proposed transfer of the MSP
Operating Agreements is not conditioned on grant of the instant
application to transfer the ODSA. Accordingly, in the event that MARAD
should not grant the instant application to transfer the ODSA, APL
alternatively requests that MARAD expressly consent to APL's
termination of the ODSA, pursuant to Article II-25 thereof, immediately
prior to the effective time of the Merger.
ASM by letter dated June 30, 1997, filed an application in support
of APL's June 25, 1997 application with respect to the transfer of
APL's ODSA and MSP Operating Agreements to ASM. It is ASM's belief that
ASM's application, which, in part, incorporates by reference certain
portions of APL's November 7, 1996 application for participation in the
MSP, provides MARAD the information as to ASM required for action by
MARAD on the application to transfer APL's ODSA to ASM (in addition to
providing the requisite information to support MARAD permission for the
transfer to ASM of the MSP Operating Agreements).
ASM requests that MARAD:
1. Allow such transfers to become effective in accordance with such
application and pursuant to law; and
2. Take any and all actions that MARAD may deem necessary or
appropriate in order to confirm and/or effectuate ASM's participation
in the MSP as transferee of the MSP Operating Agreements.
[[Page 36869]]
This notice, which is published entirely as a matter of discretion,
invites comments on maritime policy issues that may be raised by APL/
ASM's proposal relating to transfer of the ODS and MSP contracts to
ASM. This application may be inspected in the Office of the Secretary,
Maritime Administration. Any person, firm, or corporation having any
interest in such request and desiring to submit comments concerning the
application must file written comments in triplicate with the
Secretary, Maritime Administration, Room 7210, Nassif Building, 400
Seventh Street SW., Washington, D.C. 20590. Comments must be received
no later than 5:00 p.m. on July 23, 1997. 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. The Maritime Subsidy Board/Maritime
Administrator will consider any comments submitted and take such action
with respect thereto as may be deemed appropriate.
By Order of the Maritime Administration.
Dated: July 3, 1997.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 97-18048 Filed 7-8-97; 8:45 am]
BILLING CODE 4910-81-P
