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MARITIME LAW Cruise Industry Enjoys Unprecedented Growth By William N. Myhre and Darrell L. Conner The U.S. flag cruise industry is on the verge of the most significant expansion in decades. Not since the early 1950s has there been such interest in building and operating U.S.-flag passenger ves- sels. American Classic Voyages, the L27/38 The new generation grows "The L27/38 has joined the L16/24 as the second engine in MAN B&W Holeby's new generation of auxiliary marine engines. It is based on the same award-winning design concept. t A medium-speed HFO engine in the 1500-2880 kW range, the compact L27/38 has a robust, pipeless and maintenance-friendly design. Its benefits include optimal operational efficiency, minimal daily maintenance and unsurpassed reliability that have won world leadership for MAN B&W Holeby's GenSets. The L27/38 will set the standard for the world fleet's marine engines until well into the 21st century. GENERATING SETS MAN B&W Diesel A/S, Holeby Ostervej 2, DK-4960 Holeby Telephone: +45 54 69 31 00 Circle 268 on Reader Service Card largest operator of U.S. flag passenger ships, has two new cruise projects well underway (Project America in Hawaii and the Delta Queen Coastal Cruise Line) which will more than quadruple its capacity in the coming decade. SeaAmerica Cruise Lines has announced its plans for three new mid- sized cruise ships to operate on the U.S. coasts. And America West Steamboat Co., a riverboat cruise company in the Pacific Northwest, is planning a new overnight cruise vessel for the Alaska and Hawaiian trades. At the same time, the U.S. continues to have a vibrant and growing fleet of dinner cruise, casino and gaming boats, and passenger fer- ries. Virtually across the industry there are new opportunities available for further expansion, using existing programs or by taking advantage of recent changes in the law. But keep a weather eye on Congress. Changes being debated there could impact the entire U.S.-flag cruise industry. Navigating the uncharted waters of the "new" U.S.-flag cruise industry will require an astute captain and crew. Project America - A New Era in the U.S.-Flag Cruise Industry The most notable development in the U.S.-flag cruise industry is American Classic Voyages' Project America. Enacted in 1997, the U.S. Flag Cruise Ship Pilot Project statute sponsored by Sen. Daniel K. Inouye of Hawaii has enabled American Classic, the parent of American Hawaii Cruises and of The Delta Queen Steamboat Company, to take the Defense Department's MARITECH program to new levels. Where earlier projects focused solely on proposed cruise ship designs, it will now result in actual construction, help- ing to jump start cruise ship construc- tion in the U.S. and to sustain the U.S. shipbuilding industrial base. Modeled after U.S.-flag cruise ship development bills from the early 1990s that never got out of Congress, the new law enables American Hawaii, which following the removal of service of the SS Constitu- tion had only the venerable SS Indepen- dence to serve its Hawaii market, to again expand its operations in Hawaii. Just last month American Classic signed an $880 million contract with Ingalls Shipbuilding to construct at least two new 1,900-passenger cruise ships for the Hawaiian Islands trade (with options for four additional vessels). In return for assuming the consider- 18 Maritime Reporter/Engineering News
