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(LCS). "These new, fast and capable ships will increase the effectiveness of our naval forces and provide us with an abili- ty to operate in the littoral areas of the world where the enemies of freedom seek to operate and hide" England said. "The USS Freedom and her crew will defend the noble cause for which they are named," he added. LCS is an innovative combatant designed to counter challenging shallow- water threats in coastal regions, specifi- cally mines, submarines and fast surface craft. LCS ships will be fast, agile, and networked surface combatants and will utilize focused-mission packages that deploy manned and unmanned vehicles to execute a variety of missions. In May 2004, the Department of Defense awarded both Lockheed Martin and General Dynamics - Bath Iron Works, Bath, Maine, separate contract options for final system design with options for detail design and construction of up to two LCS ships. In December 2004, the Department of Navy awarded Lockheed Martin Corp., Maritime Systems ... Sensors, Moorestown, N.J., a contract for detail design and construction of the first LCS. Lockheed Martin's teammates include Gibbs ... Cox, Arlington, Va.; Marinette Marine, Marinette, Wis.; and Bollinger Shipyards, Lockport, La. A keel laying ceremony is scheduled for June 2, 2005, at Marinette Marine, Marinette, Wis. Engine Problem Shelves Ferry The Alaska Marine Highway System announced that the MV Columbia was delayed in Ketchikan by an engine prob- lem, and did not make its northbound schedule. In its place, the MV Kennicott picked up the Columbia's northbound pas- sengers and car deck load. Captain John Falvey, AMHS general manager, said ferry system engineers are working around the clock with representatives of Cascade General, the Portland, Oregon shipyard that recently completed an 8- month-long rebuild of both of the Colum- bia's massive Enterprise engines. "We believe the problem has been isolated to a defective camshaft in the starboard engine," Falvey said. "The repair work will be done in Ketchikan. In the mean- time, we are bringing the Taku back into service to fill in for the Columbia until it is able to carry passengers." Falvey noted that both the Matanuska and the Malaspina are in the shipyard in Ketchikan for annual maintenance, which is normally scheduled to take place ahead of the busy summer visitor season, and are not available. The Taku has been in winter lay-up and was scheduled to be activated in late September. "The Taku is a signifi- cantly smaller vessel than the Columbia, in terms of car deck space and staterooms, so it is imperative that we get the Colum- bia back into full-time service as soon as possible," Falvey said. The Columbia car- ries 499 passengers, with 104 staterooms, and car deck space for 134 average-sized vehicles. The Taku carries 370 passen- gers, with 44 staterooms, and a car deck for 69 vehicles. The work on the Colum- bia's engines was part of a larger, federal- ly-funded overhaul costing more than $10 million, and the first complete engine rebuild since the vessel was constructed and entered service in 1974. The camshaft repair is covered under warranty. AMHS customers are advised to check with their local terminal operators for exact depar- ture times for the Kennicott. AWO Elects New Chairman The American Waterways Operators (AWO) elected a new Chairman, Steven P. Valerius, and Vice Chairman, Dale Sause, during its Annual Spring Convention. Valerius is President of Kirby Inland Marine, LP, based in Houston, Texas and Sause is President of Sause Bros., headquartered in Coos Bay, Oregon. In his remarks to the AWO Board of Directors following his election as Chairman, Valerius said he plans to make as his top priority the successful implementation of a new towing vessel inspection regime based on a modern, safety management system, in order to enhance industry safe- ty. He further listed as his priorities: • Authorization of the Upper Mis- sissippi - Illinois Waterway project to modernize the waterways transportation infrastructure; Successful prosecution of a law- suit against the Commonwealth of Massa- chusetts to overturn illegal state regula- tion that interferes with federal jurisdic- tion over the towing industry; Closing loopholes that under- mine the integrity of the Jones Act; and Increasing involvement of AWO members in AWO advocacy efforts. Valerius has 26 years of experience in the barge and towboat industry. Prior to the merger of Hollywood Marine, Inc. and Kirby in 1999, Valerius held various posi- tions with Hollywood Marine, the last being Executive Vice President. He is past Chairman of the Galveston Bay Founda- tion, the Houston Advisory Board of the Nature Conservancy, and the Texas Waterways Operators. Valerius is a gradu- ate of the University of Texas at Austin with a BBA in Accounting. 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