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MARITIME REPORTER AND ENGINEERING NEWS Editor's Note As intrusive, costly and arcane as some rules that regulate our industry may seem, I have an entire ly different perspective . 1 love them. To me, new rules and regulations mean an endless array of interesting articles to pursue and publish in our pages. It is a given that new regulations mean an increased cost of doing business. Trust me in that I do not wish increased cost on our readers and customers. Pick up your favorite business newspaper or magazine, flick on the television or computer, or simply talk with a colleague or friend, and I think that you will agree that intense competition and consolidation have severely challenged companies of all shape and size to build and maintain profitability. The trick, then, becomes the ability to embrace the new reality in the most effi- cient and cost-effective manner. A great example is OPA 90. Following the Valdez tanker oil spill, OPA 90 was introduced to help reduce the future likelihood of such a mishap. Among a myriad of rules, OPA 90 is most closely associated with the double hulling of tankers trading in U.S. waters. When first introduced, and in fact to this day, the merits of double-hulled ships as a method to eradicate oil spills from tankers are hotly debated. Some of this furor subsided when several successive spills off Europe's coast resulted in new double hull tanker rules from this region. Starting on page 22 we look at an innovative solution to turn single hull tankers into double hull tankers. Estimated to be a quarter to a third of the cost of a newbuild tanker, the process has been created by Maritrans in cooperation with Lloyd's Register. Another area of major regulatory concern is the vast realm of Maritime Security, and all that it encompasses. While movement to procure new solutions has been slower than expected, it is foolhardy to believe that this will not be the topic that defines a generation in the maritime industry. From the reinvention of the U.S. Navy, the U.S. Coast Guard, through the sweeping changes that are forever altering the processes and procedures ports and port facilities (including shipyards), on through to the world's largest owner/operators to the smallest small fleets, Maritime Security has and will continue to permeate every pore of the market. As VADM Terry Cross, USCG Commander of the Pacific Fleet, recently said: "We have many challenges today... and they all involve technological solutions." On the Cover Maritrans and Lloyd's Register are presenting an innovative and cost-efficient way in which to turn single hull tankers into double hull tankers. See story on page 22. 10 IZAR Delivers Dredgers 12 Innovative ASD Tug Delivered 14 OMI Fined for Illegal Dump 16 The Shipbuilding Report 33 Canada 49 Monitors 53 Buyer's Directory 56 Ad Index 57 Ship's Store 58 Classifieds Subscriptions: One full year (12 issues) S24.00 in U.S.; outside of U.S. S96.00 including postage and handling. For subscription information, con- tact: Dale Barnett, fax: (212) 254-6271; e-mail: barnett@marinelink.com www.marinelink.com trauthwein@marinelink.com www.marinelink.com ISSN-0025-3448 USPS-016-750 No. 2 Vol. 66 118 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 Periodicals Postage Rates at Waterbury, CT 06701 and additional mailing offices. Postmaster send notification (Form 3579) regarding undeliverable magazines to Maritime Reporter/Engineering 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. ©2004 Maritime Activity Reports, Inc. All rights reserved. No part of this publication may be repro- duced or transmitted in any form or by any means mechani- cal, photocopying, recording or otherwise without the prior written permission of the publishers. Member Business Publications Audit of Circulation, Inc. MARITIME REPORTER Looking for service reliability, we deliver it. 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