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A nother major world region reeling from the effects of mother nature's wrath and on the road to recovery; a contagious disease with ramifications to the international shipping industry; a concerted push to finally start rebuilding the U.S. Navy fleet to address current and evolving threats; 'new' marine technologies evolving from infancy to adoles- cence: a New Year (again), but some very familiar issues still at hand. Welcome to 2006, where [a] the recovery of New Orleans and the entire Gulf of Mexico region; [b] the potential Avian flu pandemic; [c] the U.S. Navy's LCS program and U.S. Coast Guard's Deepwater program; and [d] emerging marine technologies, such as the extended acceptance of electric and pod propulsion promise to dominate headlines. While the frequency of large, destructive storms seems to have numbed the public's reaction in the wake of the hurricanes in the Gulf of Mexico in 2004 and 2005, it can- not be forgotten that a large number of individuals and organizations are still struggling to rebuild. Specifically, for Gulf region marine companies there is an acute shortage of qualified workers to build and repair facilities and vessels. While recovery of this critical world maritime region is underway, the continued struggles and successes of its players will be covered in these pages and those of sister-publication MarineNews throughout the year. While the Avian flu and the potential for a worldwide pandemic may occupy only a spot on the evening news for some, Dennis Bryant warns that the international maritime community had better lay the foundation now for plans in the event that the disease spreads far and wide. As he writes, starting on page 15, "The major impact of an avian flu pandemic for the international maritime industry will be delays and diversions on a large scale. For a period of time (perhaps six months), commercial activity will operate at a fraction of the level immediately preceding the outbreak. Ship owners and operators with long-term contracts will be unable to fully perform or will find that their commercial partners will be unable to perform." Prospects for new construction of ships and vessels for the U.S. Navy and U.S. Coast Guard has not been as vibrant in nearly a decade, as many indicators point to a prolonged upswing in defense dollars. The February 2006 edition of Maritime Reporter will offer an in-depth feature of the new Littoral Combat Ship (LCS) program, currently underway at Manitowoc in Wisconsin. 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. 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. Publications Mail Agreement No: 40024966 Return Undeliverable Canadian Addresses to Circulation Dept. of DPGM 4960-2 Walker Road Windsor, ON N9A 6J3 Publishers are not responsible for the safekeeping or return of editorial material. ©2005 Maritime Activity Reports, Inc. 118 East 25th Street, New York, NY 10010 tel: (212) 477-6700; fax: (212) 254-6271 ISSN-0025-3448 USPS-016-750 No. 1 Vol. 68 Subscriptions: One full year (12 issues) $28.00 in U.S.; outside of U.S. $52.00 including postage and handling. For subscription information, call 212-477-6700; fax: (212) 254-6271; or e-mail: mrcirc@marinelink.com MARITIME REPORTER AND ENGINEERINGNEWS Member Business Publications Audit of Circulation, Inc. 9 VT Halter wins $28M Deal 13 Book Review 17 Electronics Update 37 Ship’s Store 38 Buyer’s Directory 40 Ad Index 42 Classifieds On the Cover: Pictured on this month’s cover is an artist’s rendition of a futuristic ferry being developed by Maritime Applied Physics Corporation and A. James Clark School of Engineering researchers through the Maryland Industrial Partnerships Program. See story on page 24. Editor’s Note www.marinelink.com trauthwein@marinelink.com On the Cover Circle 200 on Reader Service Card Coming in Maritime Reporter & Engineering News February 2005 Cruise Shipping Annual MR’s annual review of the best cruise ships delivered in 2005. Clean Water Technology Maritime Satellite & Communication Coatings & Corrosion Control Finland U.S. Navy: Littoral Combat Ship Report March 2006 The Training & Education Edition U.S. Navy - Littoral Combat Ship Profile Marine Electronics: Bridge Design Maritime Security: Ship & Port Security Japan www.marinelink.com 6 Maritime Reporter & Engineering News MR JANUARY2006 #1 (1-8).qxd 1/3/2006 8:03 PM Page 8