MARINE ENGINEERS' BENEFICIAL ASSOCIATION (AFL-CIO)
         "On Watch in Peace and War Since 1875"

MEBA TELEX TIMES                          APRIL 14, 2006

The Official Union Newsletter

NUMBER 15

In this issue...
MEBA supports BHP LNG project...Horizon newbuild deal finalized...MEBA School group at Aker...A real asset, we prepare an E-Z, itemized schedule of MEBA & maritime statements filed jointly and adjusted for your benefit.  Exempt yourself from bankrupt newsletters with deferred interest. They didn't earn it! We give you a break, place you in a higher news bracket and refund you with an industry bottom line that you can't write off. As certain as death and taxes, the Telex Times brings you many happy returns!

MEBA ENDORSES BHP WEST COAST LNG PORT PROJECT
This week, MEBA issued a nationwide press release announcing our support for a plan by BHP Billiton to build a West Coast LNG facility. The text of the release follows:

Calling the venture "an essential energy development that requires the most highly skilled and trained personnel," the Marine Engineers' Beneficial Association (MEBA) has announced its endorsement of a proposal by BHP Billiton (BHP) to construct a liquefied natural gas (LNG) facility approximately 20 miles off the coast of Oxnard, California.

"We believe that BHP is committed to enhancing America's national energy security and protecting its local safety needs.  After careful consideration and thorough review of the most significant safety and environmental considerations, our organization has decided to support the Cabrillo Port LNG project and we urge its approval by state and federal policymakers," said Ron Davis, President of MEBA, which represents U.S. Coast Guard licensed marine officers who work on freight, tanker and passenger vessels engaged in both domestic and international trade.

Using LNG carriers, BHP proposes to supply natural gas from Australia's northwest shelf and deliver it to a state-of-the-art facility (a Floating Storage and Re-gasification Unit or FSRU) located offshore that will connect to new and existing natural gas pipelines.  The offshore facility will use industry-leading technology and be located approximately 20 miles from the nearest major population center.

"BHP recognizes the critical need to help guard against security threats to protect the very markets that it intends to service, and we believe it is committed to fulfilling this critical objective using US Coast Guard Licensed and certified (credentialed) mariners, all of whom are highly trained and skilled professionals who represent a largely untapped vital source of labor in an international LNG market that is otherwise suffering from a severe shortage of qualified mariners," said Davis.

MEBA added that because the Cabrillo Port project is located far from both the shore and international shipping lanes, it has unique safety characteristics not shared by other LNG projects under consideration throughout the United States.  The organization added, however, while Cabrillo Port's geographic security advantages are considerable, additional steps must be taken, specifically requiring that U.S. Coast Guard licensed and credentialed mariners on-board the LNG carriers and working aboard the FSRU. 

"The best way to ensure the safest and most secure means to prevent breaches of national security affecting our country's import of LNG to West Coast markets is with U.S. Coast Guard Licensed Officers and credentialed merchant mariners on the vessels and receiving FSRU terminals.  Our Officers have
well over twenty years' experience working as licensed deck and engine officers aboard LNG carriers.  There is simply no legitimate alternative," said Davis.

LNG carriers are highly specialized ships that transport liquid natural gas from on-shore facilities to markets around the world.  Given America's significant energy demands - particularly on the West Coast - a consensus is emerging that the nation's energy interests are increasingly and significantly dependent upon a steady, dependable supply of natural gas. 'Indeed, the 2005 Energy Action Plan of the California Energy Commission and California Public Utilities Commission says that the state must promote infrastructure enhancements and diversify supply sources to include LNG," said [Executive V.P.] Bud Jacque.  In light of the California's market needs, several international energy companies have applied for state and federal approval to supply LNG to our communities.

"From an economic perspective, BHP's off-shore receiving facility is uniquely positioned to compliment California's port operations.  In contrast, many have concluded that LNG projects predicated on land-based receiving facilities would disrupt port traffic and cargo operations, because of the complex requirements related to the safe transit of the LNG carriers and safe discharge of the gas," [L.A. Branch Agent] Al Camelio pointed out.

"BHP's offshore facility avoids these costly and disruptive problems, and is also environmentally cleaner and discharge far less emissions than traditional cargo ships currently calling in California ports," Davis continued. "Also, state and Federal regulators have held BHP's Cabrillo Port project to very high standards, and the company has responded by incorporating important technology, environmental and personnel safeguards and standards, that the other California projects have failed to match," Davis noted.

"Our members have decades of experience working as licensed deck and engine officers aboard LNG carriers, and also undergo and pass stringent Coast
Guard and FBI background checks that foreign crewed vessels - many from third-world countries - do not submit to.  The bottom line is this," he concluded. "Cabrillo Port is a good idea and having experienced and certified U.S. Coast Guard merchant officers and mariners involved in every step of the way is integral in making it safe, secure and a success for California." 

HORIZON DEAL FOR 5 NEWBUILDS IS FINALIZED
MEBA President Ron Davis is pleased to announce that a Horizon Lines plan to lease five newbuild, U.S.-flag container ships as part of a pact with Ship
Finance International has been finalized.

The five sister ships are being built at the Hyundai Mipo shipyard in Korea and are scheduled to be delivered over the course of a five-month period commencing in early 2007. The vessels have a capacity of 2,824 TEUs and are capable of a service speed of 23 knots. Horizon Lines will operate the ships in its expanded TP1 service from the U.S. West Coast to Guam and Asia. MEBA officers will serve aboard the vessels.

The term of each bareboat charter will be 12 years with a 3-year renewal option on the part of Horizon Lines. Horizon Lines will have the option to buy the vessels after 5, 8, 12 and 15 years. Chuck Raymond, President and CEO of Horizon Lines said, "The addition of these five new vessels commences our long-term vessel replacement strategy in a very cost effective and capital efficient manner. This transaction will benefit our customers, partners and shareholders, while reducing the age of our operated fleet to one of the lowest in the markets we serve. We look forward to our mutually beneficial relationship with Ship Finance International Limited."

CMES DIRECTOR, INSTRUCTORS REVIEW MEBA-CREWED NEWBUILDS AT AKER
Calhoon MEBA Engineering School Director Joyce Matthews and several top School instructors made a visit to Aker Philadelphia Shipyard recently to review work on several newbuild vessels that our members will be sailing on soon. The group, which included Instructors Chuck Eser, Mark D'Arcy and Scott Conway were able to witness the installation of the Man B&W engine on the 681-foot M/V MAUNALEI. The ship, being built for Matson Navigation, will be completed by early summer. Director Matthews and her team discussed the intricacies of the CV 2500 containership with MEBA member Bryan Rusk who is the permanent first engineer on the ship.

Since the yard is in production of more than one MEBA-crewed ship, the group also reviewed the progress of two of the vessels being constructed for MEBA-contracted OSG Ship Management. The first ship is coming together nicely and is scheduled to debut on November 13. OSG Hull and Mechanical Inspector Andy Hake shuttled the CMES group on a tour and provided technical details. MEBA engineers crew the vessels in OSG's U.S.-flag fleet. Work is proceeding on the second hull and a May 14, 2007 date was penciled in for its completion.

NY CONGRESSMAN CALLS FOR END OF FBI/COAST GUARD "TURF BATTLE"
Congressman Vito Fossella (R-NY) issued his response to a troubling report by the Justice Department's Office of the Inspector General (OIG) that revealed a Coast Guard/FBI jurisdictional dispute over at-sea terrorism response. Last week's Telex Times carried an article on the matter. Rep. Fosella called for the agencies to resolve their ongoing dispute fearing that continued bickering could hamper the federal response to a potential at-sea terrorist attack, including on the Staten Island ferries. In letters sent to Homeland Security Secretary Michael Chertoff and Attorney General Alberto Gonzalez, Fossella urged the agencies to establish regulations that delineate each agency's responsibilities in the event of a terrorist attack, including establishing who serves as lead responder.

"This turf battle has the potential to undermine search-and-rescue operations as well as follow-up investigations if a terrorist attack were to occur on the Ferry or another vessel," Fossella said. "The 65,000 people who ride the Ferry every day need to know that all federal responders are working hand-in-hand to protect their safety and security. Our nation must be fully prepared to respond to a terrorist threat at a moments notice. It is essential that the agencies come to a resolution that would establish who will serve as lead responder during an attack. The establishment of clear jurisdictional lines of responsibility would ensure that not a moment is sacrificed or lost in the event of an attack."

The DOJ's OIG revealed that both Coast Guard and FBI believe they each possess the authority to serve as the lead responder to an attack. The report said that during a simulated attack on a ferry at a joint training exercise in Connecticut last year, the agencies could not agree on who had the authority to respond. The report warned, "Unless such differences over roles and authorities are resolved, the response to a maritime incident could be confused and potentially dangerous."

COAST GUARD HOSTS HOMELAND SECURITY EXERCISE
The U.S. Coast Guard and Transportation Security Administration (TSA) hosted a port security exercise last week on Staten Island to evaluate preparedness, prevention and the ability to respond to and recover from a terrorist-related incident.

The exercise involved the Port of New York/New Jersey Area Maritime Security Committee and a number of other representatives of the port community, including both public governmental agencies and private industry. The partnership is intended to improve connectivity of various surface transportation modes and enhance the existing Area Maritime Security Plan. The FBI was not part of the exercise.

NASSCO/DAEWOO ALLIANCE TO FOCUS ON MORE COST-EFFECTIVE JONES ACT SHIPS
 General Dynamics NASSCO and Daewoo Ship Engineering Company (DSEC) have announced a formal teaming agreement to build ships for the U.S. market under the Jones Act. Philadelphia's Aker Kvaerner has a similar arrangement with Hyundai to assist in building the multiple tankers on order from Overseas Shipholding Group.

Under the agreement, DSEC will provide the detail designs, support services and some of the material necessary for ship production. NASSCO will also procure material and will provide the labor and facilities to construct the ships here.  Headquartered in Seoul, Korea, DSME has a worldwide shipbuilding and offshore plant business. NASSCO is currently building its fourth double-hulled crude oil tanker for BP Shipping Company of Alaska, under a four-ship contract. In addition to the BP ships, NASSCO has contracts to build nine T-AKE combat logistics force ships for the U.S. Navy. Four of these ships are under construction; the first will be delivered later this year. The T-AKEs and the BP tankers will all be crewed by MEBA officers.

MARYLAND MEMBERS & RETIREES CAN GET MEBA LICENSE PLATES
As a reminder, members and retirees living in the State of Maryland have an opportunity to drive in style while showing off their sporty new MEBA license plate. This terrific offer is also perfect for our people living in Easton, MD and working at the Calhoon MEBA Engineering School.  The State has okayed the special MEBA license plate available for cars registered in Maryland for only $25. It has a blue and gold MEBA logo at left, the word "MEBA" printed vertically and "Marine Officers" emblazoned across the bottom.  Those interested should contact Bette Doranz at MEBA Headquarters. Call her at (202) 638-5355 or e-mail bdoranz@d1meba.org.

JAMIAN APPRECIATIONS SET/DETAILS OF SANBORN LUNCHEON
A maritime industry reception has been set up in appreciation of outgoing Deputy Maritime Administrator John Jamian who has been serving in the top spot at MarAd since Capt. William Schubert stepped down from the agency in February 2005. It was recently announced that Jamian will retire from the agency on May 1. Chief Counsel Julie Nelson will take over in an acting capacity until a new Administrator can be nominated and confirmed.

The reception will take place on April 26th in Room 1334 of the Longworth House office building which happens to be the old Merchant Marine & Fisheries Committee hearing room. It is scheduled for 5:30 to 7:30 p.m. on that day. Contact (202) 661-3868 for further info. 

The Propeller Club is also sponsoring a D.C. breakfast, in roundtable format, that will feature Jamian as guest speaker on April 24. The group plans to discuss port infrastructure issues, MarAd programs and the integrated supply chain. Contact (202) 331-7735 for more info. 

The U.S. Merchant Marine Academy Alumni Foundation is sponsoring a luncheon on April 26 in New York featuring guest speaker David Sanborn, the aborted choice to replace Capt. Schubert. Sanborn, a DP World official, withdrew his nomination for the post after controversy erupted over his company's planned management of six U.S. ports. The Kings Point graduate will have a lot to discuss at the function taking place at the Downtown Association (60 Pine Street). Cocktails begin at 11:45 with lunch served at 12:30 sharp. For more information contact Dean Steele at (212 513-3413 or dean.steele@hklaw.com)
or James Power at (212 513-3494 or james.power@hklaw.com ).

USNS MERCY INSTALLING HELO-PAD, HANGAR
A new temporary helicopter shelter is being installed aboard the San Diego-based hospital ship USNS MERCY (T-AH 19), to improve mission readiness. The Military Sealift Command vessel is crewed with MEBA officers. MERCY is scheduled to embark on humanitarian assistance missions to Southeast Asia this year, and is seeking a more efficient way of transporting patients and doctors to and from the vessel.

MERCY last deployed to the South Pacific in support of Operation Unified Assistance, the humanitarian operation in the wake of the tsunami that devastated the region in December 2004.

SCHOOL HOSTING MAN B&W SEMINAR
The Calhoon MEBA Engineering School will be hosting a MAN B&W seminar on 2-stroke engines during the week of April 24-28. Openings are still available. If you are interested in attending this one-week seminar please contact Registrar Shirley Shelton at (410) 822-9600.
 
MERCHANT MARINE MEMORIAL RAFFLE
The MEBA Merchant Marine Memorial Foundation is holding a raffle to enable continued upgrades to the beautiful new memorial at the School. 1st prize will be a weekend at the Manor House for ten people, 2nd prize is $500, and 3rd prize is $250. Tickets cost $5 each or five for $20. The drawing will be held on July 1st during the CAA Reunion. Please see your local Union Hall or the School for additional information.
 
JAPANESE SHIPPING CO. BUSTED FOR POLLUTION COVER-UP
A Japanese shipping company has admitted that it intentionally failed to maintain required records concerning overboard discharges of oil sludge and oil-contaminated bilge water from one of its cargo ships. MK Shipmanagement Company, Ltd. pleaded guilty to one felony count of intentionally failing to maintain an oil record book, in violation of the Act to Prevent Pollution from Ships, and will pay a total of $350,000 in criminal fines and community service payments. Sentencing is scheduled for July 18.

According to a statement, the Panamanian-flagged M/V MAGELLAN PHOENIX, owned by the company, left Rotterdam in December 2004 and arrived with a cargo of grapes in Gloucester City in March 2005. The Coast Guard boarded the ship on March 25, 2005, to inspect the ship for compliance with international environmental and other regulations. In the course of their inspection, Coast Guard inspectors learned that the M/V MAGELLAN PHOENIX had routinely discharged oil sludge and oil-contaminated bilge water directly overboard into the ocean by intentionally by-passing the ship's oily-water separator and without recording the discharges, as required, in the ship's oil record book.

On Jan. 5, 2006, the ship's chief engineer was sentenced to a year in federal prison for falsifying the oil record book in an attempt to conceal the repeated overboard discharges of oil waste from the ship.

CORROSION COURSE AT MEBA SCHOOL
The Calhoon MEBA Engineering School (CMES) has arranged for eligible MEBA members to take advantage of a self-study course covering the basic principles of corrosion. This self-study program is sponsored by the National Association of Corrosion Engineers (NACE).

The course is being offered to eligible MEBA members on a "reimbursement-upon-successful-completion" basis.  The initial cost to the student will be $245.00 and upon successful completion, $245.00 will be reimbursed by CMES to the student. Successful completion of the program carries 3.5 CEU's, a NACE completion certificate, and an annotation to the student's CMES academic record. The program typically takes 25-30 hours to complete if done properly.  A completion time of six-months is allowed and a proctored final exam is required.  Waivers are given for reasonable extensions to the six-month completion period but the proctored final exam must be taken and passed for successful completion of the program.

The final examination is an open-book, one hundred question exam of the multiple-choice type.  The exam must be supervised by a NACE-approved proctor and prior arrangements are required between the student, NACE Headquarters, and the proctor.  Further details are included with the course materials. There are hundreds of NACE-approved proctors around the USA; many associated with local electric, gas, and water Utilities.  NACE will also permit the final exam to be proctored at the Calhoon MEBA Engineering School in Easton-Maryland should this arrangement be more suitable.  This option is exercised only with prior coordination with NACE Headquarters and CMES.

The course is provided with two corrosion-related textbooks, a bound student study-guide, and a CD-ROM with a self-study computer program.  Access to a modern PC is recommended.   The student retains all course materials; whether or not the course is completed.

If you are interested in participating in the program, or have additional questions, please contact Ms. Shirley Shelton at telephone 410-822-9600 ext 100, or Joseph Dengel at ext 330 for an application packet.

NEXT REGULAR MONTHLY MEETING
Monday, May 8 - Boston, Seattle;
Tuesday, May 9 - Baltimore, Houston, Jacksonville, San Francisco;
Wednesday, May 10 - Calhoon School, Charleston, New Orleans, Portland;
Thursday, May 11 - Los Angeles, New York, Norfolk, Tampa;
Friday, May 12 - Honolulu.

CAA Reunion is June 30th-July 2, 2006. Plan accordingly and support the CAA!

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