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SAV I up to 300 barrels of oil per year! ELIMINATE THAT OLD STEAM HORN The Kahlenberg TRITON Piston Horn is a unique sound producing unit because it requires no compressed air and no diaphragms yet utilizes air vibrations in a tuned sound column. The unit consists of an electric motor driving a pis- ton with a cylinder similar in appearance to an air compres- sor. Very economical to operate and install. Write for bulle- tin. 92C. The KB-20 electric horn is available in 110 volt, A C. or 24 volt. D C. for vessels up to 246' in length. KDHLEI1BERG BROS. [0. 1986 Monroe St. I Two Rivers, Wisconsin, 54E41 U.S.A. I I 414-793-4507 I Circle 315 on Reader Service Card ON THE COVER AW0 ANNUAL—Aerial view of inland opera- tions typical of those conducted by mem- bers. AWO members are part of an industry that operates more than 7.500 costal tugs and inland river towboats, and over 30,000 barges. INSIDE AWO ANNUAL EDITION: American Waterways Operators Annual Meeting & Convention 20 U.S. Fishing Industry: Effects of Anti-Reflagging Act of 1987 26 Naval Technology & Shipbuilding 35 U.S. Oil Companies Role in Mideast 48 Navigation & Communications Equipment: A Review 50 Mideast War Underlines Need For Increased Domestic Production 66 McDermott Subsidiary Receives $25 Million Pact For Chinese FPSU Hudson Engineering & Project Management Corporation, a wholly owned subsidiary of McDermott In- corporated, has received a contract valued at about $25 million from Bohai Oil Corporation, a subsidiary of China National Offshore Oil Cor- poration in Beijing, for the engi- neering and procurement of all top- si^es oil and gas producing equip- ment for a planned floating produc- tion and storage unit (FPSU). The unit will be located near Shanghai in the Bohai Bay area off the coast of the People's Republic of China. The floating production and stor- age unit is designed to separate oil from water and a small amount of gas from crude oil at a rate of 45,000 barrels a day, and to reinject seawa- ter into the production wells. Capa- ble of storing 52,000 metric tons of crude oil, the FPSU will be 689 feet long, with a beam of 108 feet and draft of 60 feet. Mechanical comple- tion of the unit is scheduled for the summer of 1993. MARITIME REPORTER and Engineering News Editorial and Executive Offices 118 East 25th Street, New York, NY 10010 (212) 477-6700 • ITT Telex: 424768 MARINTI Telefax: (212) 254-6271 Publishers: Editorial Director: Editor: Senior Editor: Regional Sales Manager: Regional Sales Manager: International Sales Manager: Production Manager: Production Coordinator: Circulation Manager: JOHN C. O'MALLEY CHARLES P. O'MALLEY CHARLES P. O'MALLEY JOHN R. SNYDER THOMAS H. PHILLIPS DANIEL A. ARNOLD LUCIA ANNUNZIATA LAURA CONNOLLY SHELLY M. RECCHIO MAY LOUIE DALE L. BARNETT Advertising Circulation and Sales Offices 118 East 25th Street, New York, NY 10010 Telephone (212) 477-6700 REPRESENTATIVES U.S. MR. JAMES N. McCLINTOCK Gulf States Wheelhouse One Building 634 Village Lane North, Suite 205 Mandeville, LA 70448 Telephone: (504) 626-7990 Telefax: (504) 624-5163 Scandinavia MR. STEPHAN R. G. ORN AB Stephan R. G. Orn Box 184, S-271 24 Ystad, Sweden Telephone 0411-184 00 Telefax: 411 10531 Telex: 33335 Orn S United Kingdom Italy MR. MICHAEL J. DAMSELL Euromedia, Ltd. Tern House, Upper West St. Reigate, Surrey RH2 9HX, England Telephone: 07372 242558 Telefax: 0737 223235 Telex: 932699 KENPUB G. MR. VITTORIO F. NEGRONE Ediconsult Internazionale Piazza Fontane Marose, 3-16123 Genova, Italy Telephone: (010) 583520 Telefax: (010) 566578 Telex: 211197 EDINT I MARITIME REPORTER AND ENGINEERING NEWS No. 3 ISSN-0025-3448 Volume 53 118 EAST 25th STREET NEW YORK, N.Y. 10010 (212) 477-6700 Telex: MARINTI 424768 Telefax: (212) 254-6271 ESTABLISHED 1939 Maritime Reporter/Engineering News is published monthly by Maritime Activity Reports, Inc. Mailed at Second Class Postage Rates at Waterbury, CT 06701 and additional mail- ing offices. Postmaster send notification (Form 3579) regarding undeliverable magazines to Maritime Reporter/Engineering News, 118 East 25th Street, New York, NY 10010. Publishers are not responsible for the safekeeping or return of edi- torial material. Member VBPA Business Publications Audit of Circulation, Inc. 4 Maritime Reporter/Engineering News