MEBA
Edition

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

M
EBA TELEX TIMES              AUGUST 24, 2007

The Official Union Newsletter

NUMBER 34


In this issue...
Port engineer job...Contact the Constitutional Committee...Horizon Lines news...In a top-flight issue we soar above the competition and prey upon a maritime nest-egg of eagle-eyed industry items. Clipping the wings of fledgling, fly-by-night newsletters, we ruffle their feathers and give them the bird! Swooping down on another edition, we go in for the kill and sink our talons into the news that grabs you and won't let you go. You'll get carried away by the Telex Times!

NEW T-AGS PORT ENGINEER POSITION
Horizon Lines is seeking to employ an additional Port Engineer for the T-AGS program. This new billet will expand the job base from four Port Engineers to five, covering seven vessels in the government fleet.

There will be a mix of home-based work with frequent travel involved. Government procurement policy experience is preferred, along with the ability to be vetted with a secret clearance. For more information, please call the Norfolk Representative at (757) 440-1820.

CONSTITUTIONAL COMMITTEE CAN BE CONTACTED
The five members and two alternates of the rank and file Constitutional Committee that was established earlier this month are seeking member input from members. The Committee is reviewing several resolutions that seek to amend or otherwise affect the M.E.B.A. By-Laws.

The committee consists of Gerard Dundon (Chairman), Alan Valley, Dominic Walsh, Frank Peters and Mark Corrales. Kevin Nichols and Joel Cordish are serving as alternates. You can reach the committee by email at committee@mebaschool.org.

The M.E.B.A. By-Laws (Article Twenty-One, Section 2(b)) provides for the establishment of the committee.

PLANS OFFICE TO BROADEN PENSION TABLE FOUND IN NEWSLETTER
The last issue of BenefitWatch, the newsletter issued by the M.E.B.A. Plan Office, contained an article titled "Lump Sum Value of M.E.B.A. Pension Benefit and the Pension Protection Act of 2006." The table found on page 10 has generated some requests to the Plan Office for ages not listed. The Plan's actuaries are preparing the information for ages 50 to 54 and ages 56 to 57. The complete table will be published in next week's Telex Times.

HORIZON LINES ACQUIRES 3RD PARTY LOGISTICS PROVIDER
M.E.B.A. contracted company Horizon Lines announced some big news this week reflecting its commitment to growth. The company has purchased Aero Logistics, a third party logistics provider (3PL) based in San Francisco, CA.  Aero Logistics designs and manages custom freight shipping and special handling programs for customers in service-sensitive industries including high-tech, healthcare, energy, mining, retail and apparel. Aero also operates a fleet of GPS-equipped trailers under the direction of their Aero Transportation division.

"Aero creates innovative solutions for its customers and offers a consistency of service that builds long lasting client relationships," said Brian Taylor, Senior Vice President of Sales and Marketing for Horizon Lines, LLC and recently named to head Horizon Logistics as its President effective September 1st. "Aero's solid reputation for integrity, innovation and the highest levels of customer service make the company a great fit for Horizon Logistics."  "We welcome the addition of the Aero Logistics team of professionals and its proven capabilities in developing custom logistics solutions for its clients. We look forward to helping Aero achieve even greater levels of success; creating value for all our customers, employees and shareholders," said Chuck Raymond, Chairman, President and CEO.

HORIZON LINES REALIGNS
Horizon Lines recently announced a realignment of its structure that will allow them to better address exciting new prospects at the company. Effective September 1 of this year, the company is structuring its transportation and logistics operations under two wholly owned subsidiaries, Horizon Lines, LLC, and Horizon Logistics, LLC.

Horizon Lines, LLC will continue with its fleet of 21 U.S.-flag vessels and service routes linking the continental U.S. with Alaska, Hawaii, Guam, Micronesia and Puerto Rico. Horizon Logistics, LLC is being established to manage the company's growing integrated logistics services, including rail, trucking and distribution operations, in addition to Horizon Services Group, an organization with a diversified offering of transportation management systems and customized software solutions being marketed to shippers, carriers, and other supply chain participants.

As a result of the business reorganization, Horizon Lines reordered its executive structure. John Keenan will serve as President of Horizon Lines, LLC. In his new role, Keenan will be responsible for all core ocean transportation services in the Alaska, Hawaii, Guam, Micronesia and Puerto Rico markets. These responsibilities will include all port, terminal and vessel operations, sales and marketing, and service delivery functions.

Brian Taylor will serve as President of Horizon Logistics, LLC, a new, wholly owned subsidiary of Horizon Lines, Inc. focused on integrated logistics services. Taylor's responsibilities will include growing Horizon's logistics services capabilities and businesses, including rail, truck and distribution operations, in addition to Horizon Services Group, the company's technology subsidiary.

"This change in organizational structure allows us to stay focused on our core Jones Act transportation operations while at the same time provides for the future growth and development of our fully integrated logistics services," Horizon Chairman, President and CEO Chuck Raymond stated. "I believe that these promotions and realignment of management responsibilities position Horizon Lines to significantly grow our business and achieve exceptional results for our shareholders. Both John Keenan and Brian Taylor bring a tremendous amount of experience, dedication and passion to their new roles and their leadership is well respected by the rest of our organization and within the industry."

In related news, last week the company was awarded Logistics Management's Quest for Quality Award for 2007, earning top honors in the Ocean Carriers category. Horizon accomplished the top spot for overall "Weighted Score" by securing the highest ratings in four of the five attributes used to measure ocean carriers: On-Time Performance, Customer Service, Information Technology and Equipment & Operations. Each year Logistics Management asks its readers, who are qualified buyers of logistics and transportation services, to evaluate providers for customer satisfaction and service excellence. Logistics Management is a leading logistics industry publication with a circulation of more than 70,000 subscribers

BRYNGELSON TAKES OVER EXCELERATE; EISBRENNER BRINGS EXPERTISE TO SHELL
Rob Bryngelson, Executive Vice President and Chief Operating Officer of Excelerate Energy, has assumed command of the company after President and CEO Kathleen Eisbrenner accepted an opportunity with Royal Dutch Shell. M.E.B.A. deck and engine officers serve aboard the LNG vessels in the Excelerate fleet.

Eisbrenner piloted Excelerate since its founding and helped turn the company into the most innovative and forward-thinking LNG operator in the business. She will serve as executive vice president at Netherlands-based Royal Dutch Shell managing their liquefied natural gas projects.

Bryngelson is part of the original Excelerate team that vastly improved the company's fortunes in four short years since the company's founding in 2003. An Excelerate spokesman, Douglas Pizzi, said that Rob "has been instrumental in developing the [LNG] project [at Excelerate], and he's been instrumental since the founding of the company."

Prior to Excelerate, Bryngelson worked as managing director of El Paso Corp.'s global LNG group, where he was responsible for LNG infrastructure development, supply procurement and marketing for North America. Pizzi said Bryngelson was key in developing the Northeast Gateway Energy Bridge terminal off Gloucester, as well as a similar system already in operation in the Gulf of Mexico off New Orleans.

MARAD TO RID JAMES RIVER OF MOST EGREGIOUS RUSTBUCKETS
The Maritime Administration announced that it has made arrangements to remove the last of several high-priority vessels from the James River Reserve Fleet. The agency has awarded five ship-disposal contracts worth a total of $2,161,610 to North American Ship Recycling of Sparrows Point, Md.

"This multiple-ship contract is great news," said Maritime Administrator Sean Connaughton. "Not only are we moving out five more ships, but there will no longer be any high-priority vessels remaining in the fleet."

The departure of CAPE CHARLES, PRIDE, SCAN, SOUTHERN CROSS and SPHINX will bring the number of ships leaving the James River to 66 since January 2001. The SPHINX, a cable-layer built in Japan in 1944, is the only World War II-era ship in this group of five. The condition of the SPHINX made it a high-priority ship for the Maritime Administration for several years, but disposal was delayed while charitable groups tried to raise money to save it.

The remaining ships were all built in the 1960s; SCAN, SOUTHERN CROSS, and PRIDE were built for the Moore-McCormick Company as combination freight and passenger vessels. The CAPE CHARLES, a freighter launched in 1963, was constructed at the Bethlehem Steel shipyard at Sparrows Point, the same site in Maryland where it will be dismantled.

SOYBEAN SPILLING, BIRD KILLERS PLEAD GUILTY
IMC Shipping Co. Pte. Ltd., a Singaporean corporation, has pleaded guilty in Alaska federal court to violations of the Refuse Act and the Migratory Bird Treaty Act. The charges stem from the December 8, 2004 grounding of the M/V SELENDANG AYU which resulted in the illegal discharge of oil and soy beans and the killing of thousands of migratory birds in the Alaska Maritime National Wildlife Refuge. IMC was sentenced to pay a $10 million penalty. The ship grounding spilled approximately 340,000 gallons of bunker fuel, as well as several thousands of tons of soybeans into the Bering Sea.

The efforts of the U.S. Coast Guard to rescue the crew of the stricken vessel resulted in the loss of a Coast Guard helicopter at sea when it was struck during the storm by a 30- foot wave. Tragically, six of the SELENDANG AYU crew members died in the crash.

According to the plea agreement, on Dec. 6, 2004, the discovery of a crack in the engine's number three cylinder liner led the crew to shut down the engine. The ship drifted for three days in high winds and heavy seas while the crew attempted to repair the engine. The crew was never able to restart the engine. On Dec. 8, 2004, the M/V SELENDANG AYU ran aground on the north shore of Unalaska Island, Alaska west of Skan Bay.

The captain of the M/V SELENDANG AYU previously pleaded guilty on April 1, 2005 to a charge of making a false statement during the casualty investigation regarding the time the engine was shut down prior to the grounding of the vessel.

NEXT REGULAR MONTHLY MEETINGS
Tuesday, September 4 - Baltimore, Boston, Houston, Jacksonville, San Francisco, Seattle;
Wednesday, September 5 - Charleston, New Orleans, Portland;
Thursday, September 6 - L.A., New York, Norfolk, Tampa;
Friday, September 7 - Honolulu.

--------FINISHED WITH ENGINES---------