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MARITIME REPORTER AND ENGINEERING NEWS " A merican Shipbuilding has, in my opinion, seen -Z*-its lowest point, during the past year." Most of you might naturally assume that this is a recent quote from a high ranking shipyard, govern- ment or other informed source regarding the current status of the U.S. marine industry. Wrong! This quote is attributed to the opinion of Captain C.A. McAllister, president of the American Bureau of Shipping, published in the January 1, 1928 edition of Marine Age magazine. This, and something my five-year-old son said recently, struck a chord within me regarding the chal- lenges facing the U.S. ship and boatbuilding industry. Upon coming home from the beach one hot August day, Shane, upon inspecting his "Adidas" san- dals, said, "It says that these were made in Indonesia ... I thought everything was made in China." From the mouths of babes. This month I am pleased to present — with the dogged determination of Bastianelli, Brown & Kelly's H. Clayton Cook Jr., and the much-appreciated cooperation of U.S. Maritime Administrator William G. Schubert — what I feel is one of the most comprehensive and thought provoking assessements of the U.S. Maritime market, current status and future prospects. Mr. Schubert — in the article starting on page 78 — addresses in a straight-forward man- ner the needs of the industry by vessel niche, as well as complex topics such as financing options and propects of operating ships profitably Another traditional maritime powerhouse, Germany, hosts SMM 2002 — arguably the best marine exhibition in the world — later this month in Hamburg. In conjunction with this exhibition, Alan Haig-Brown has record- ed in words and photographs — in On the Road with Charles Kuralt-esque fashion — an unparalleled insight to German Harbor Pilots operations. Those of you who enjoyed his coverage of a journey down through the Germany country side aboard the 345-ft. Johannes Von Nepomuk with Albrecht Zoller and his wife Roswitha, are sure to enjoy his experience in North Germany, as presented starting on page 34. On the Cover This month's cover is o brood rendering of the technolog- ical developments highlighted throughout the September 2002 edition, in conjunction with both the SMM Exhibition in Homburg, Germany and the SNAME Exhibition in Boston later this month. Also in this Issue 8 GAO Affirms DD(x) Contract 10 Half-built cruise ship sold to NCL 15 NASSCO/TOTE Christen Midnight Sun 17 Kvaerner delivers Legend 27 Which Hull Shape is Best? by John Waterhouse, PE 30 Advancing CAD/CAM Integration 38 Nauticast offers AIS solution 94 Buyer's Directory 96 Advertisers Index 97 Classified Ads Subscriptions: One full year (12 issues) $18.00 in U.S.; outside of U.S. $96.00 including postage and handling. For subscription informa- tion, contact: Dale Barnett, fax: (212) 254-6271; e-mail: barnett@marinelink.com ISSN-0025-3448 USPS-016-750 No. 9 Vol. 64 118 East 25th Street, New York, NY 10010 tel: (212) 477-6700; fax: (212) 254-6271 Founder: John J. O'Malley 1905 - 1980 Charles P. O'Malley 1928 - 2000 Maritime Reporter/Engineering News is published monthly by Maritime Activity Reports, Inc. Mailed at Peri- odicals Postage Rates at Waterbury, CT 06701 and addi- tional mailing offices. Postmaster send notification (Form 3579) regarding undeliverable magazines to Maritime Reporter/Engineer- ing News, 118 East 25th Street, New York, NY 10010. Canada Post International Publications Mail Product (Canadian Distribution) Sales Agreement No. 0970700. Printed in U.S.A. Publishers are not responsible for the safekeeping or return of editorial material. © 2002 Maritime Activity Reports, Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means mechanical, photo- copying, recording or otherwise without the prior written permission of the publishers. Member INTERNATIONAL ® Business Publications Audit of Circulation, Inc. Other Printed, Internet & Electronic Products MarineNews Published 18 times per year, MarineNews is the leading provider of information and analysis for the North American inland/offshore shallow draft market. www.maritimetoday.com Customized e-mail news service delivered twice a day, including the latest contracts, casualties, people & company reports. www.maritimeiobs.com The marine industry's recruiting & employment resource. www.marinelink.com The Internet's largest marine website, recording more than 270,000 "hits" per month. Daily news, data & statistics, industry directories. www.marinelink.com trauthwein@marinelink.com Looking for service reliability, we deliver it. ABB Turbochargers ABB New York/NJ, Miami, Houston, Seattle/Tacoma, Los Angeles - email: turbochargers@us.abb.com 6 Circle 200 on Reader Service Card or visit www.maritimereporterinfo.com Maritime Reporter/Engineering News