[Federal Register Volume 64, Number 187 (Tuesday, September 28, 1999)]
[Notices]
[Page 52361]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-25124]
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
[Docket MARAD-1999-6248]
Sea-Land Service, Inc., and U.S. Ship Management, Inc.,
Application for Approval of the Proposed Transfer of Maritime Security
Program Operating Agreements (MA/MSP-29 Through MA/MSP-43)
By application completed September 21, 1999, Sea-Land Service, Inc.
(Sea-Land), and U.S. Ship Management, Inc. (USSM) notified the Maritime
Administration (MARAD) of the proposed transfer of 15 Maritime Security
Program (MSP) Operating Agreements (MA/MSP-29 through MA/MSP-43) from
Sea-Land to USSM, pursuant to section 652(j), Sub-title VI-B, Merchant
Marine Act, 1936, as amended (1936 Act). The vessels originally subject
to those contracts are also to be concomitantly transferred to USSM for
operation. Sea-Land received the initial award of the MSP Operating
Agreements on December 20, 1996.
The proposed transfer of MSP Operating Agreements MA/MSP-29 through
MA/MSP-43 is part of a series of overall transactions whereby
affiliates of the A.P. Moller Group (Maersk) will acquire the
international container operations of Sea-Land. In all, 19 U.S.-flag
vessels will be transferred from Sea-Land to USSM, including the 15
associated with the MSP Operating Agreements.
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, it is asserted that under
a U.S. citizen owner trust structure, the MSP Vessels will be bareboat
chartered to USSM, which will time charter them to Maersk Line Limited
(MLL), an affiliate of Maersk and a documentation U.S. citizen. USSM
will manage and operate the vessels utilizing former Sea-Land
operations employees. USSM will crew the vessels with U.S. citizens,
utilizing the same unions presently representing seagoing employees on
the MSP Vessels. The vessels will continue to operate in the same
combination of world-wide container services as have been provided
since 1995 by cooperation between Maersk and Sea-Land.
Sea-Land and USSM have requested that MARAD allow the proposed
transfers to become effective in accordance with the application and
pursuant to law. This notice invites comment on legal and policy issues
that may be raised by the Sea-Land and USSM application, including the
transfer of the 15 MSP Operating Agreements to USSM.
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. You should submit your written comments to
the Docket Clerk, U.S. DOT Dockets, Room PL-401, Nassif Building,
Department of Transportation, 400 Seventh Street, SW, Washington, DC
20590. Comments may also be submitted by electronic means via
the internet at http://dmses.dot.gov/submit/. All comments will become
part of the docket. 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 no
later than the close of business on October 13, 1999.
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 any comments timely submitted, and take
such action with respect thereto as may be deemed appropriate.
By Order of the Maritime Administration.
Dated: September 22, 1999.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 99-25124 Filed 9-27-99; 8:45 am]
BILLING CODE 4910-81-P
