Special Features & Items of Interest

 

Panama Canal Requests Proposals for New Locks Construction

The Panama Canal Authority (ACP) released its Request for Proposal (RFP) Friday on the “design-build” contract for the new locks under the Canal’s Expansion Program. Four global consortia will now move forward with their bids on what will be the largest and most important project under the $5.25 billion expansion.

The Expansion Program will build a new lane of traffic along the Panama Canal through the construction of a new set of locks, doubling capacity and allowing more traffic and longer, wider ships.

The ACP will meet with consortia representatives in February 2008 regarding the content of the RFP for the construction of the new set of locks. Proposals are due August 2008. The ACP will evaluate bids based on the best value concept, with emphasis on technical components (60 percent) and price (40 percent). Following a thorough review, the ACP expects to award the contract in December 2008.

“Releasing the RFP for the new locks is a major step forward in the creation of the new lane, as it is the most significant contract in the Expansion Program. We have some of the world’s most reputable and skilled contractors competing for the opportunity to take part in this prominent project. We’re highly confident in their ability and we’re looking forward to receiving their proposals in the third quarter of next year,” said ACP Executive Vice President of Engineering and Program Management Jorge L. Quijano.

The winner of this contract will design and build two locks complexes, which include water-saving basins. The consortia in the running for the contract include: Consorcio C.A.N.A.L.; Consorcio Atlántico-Pacífico de Panamá; Consortia Bechtel, Taisei, Mitsubishi Corporation; and Consorcio Grupo Unidos por el Canal.

The qualifying process for interested consortia began August 27, 2007, when the ACP released a Request for Qualifications (RFQ) for the construction of the new set of locks. On November 15, 2007, four consortia, composed of 30 companies from 13 countries, submitted Statements of Qualifications. Based on a pass-fail evaluation of criteria and capabilities, the ACP certified on December 14, 2007, that each of those consortia qualified to receive and respond to the RFP.

The new Pacific locks will be located to the southwest side of the Miraflores Locks. The new Atlantic locks will be located to the east of Gatun Locks. Each set of locks will have three levels, also called chambers, and will rely on gravity to operate. Each lock chamber will be accompanied by three water-saving basins, allowing the reutilization of 60 percent of the water in each transit. For an animated simulation of the new locks, please visit: Canal Project

The proposed cabotage law enforcement raises a furor

Hundreds of comments have been filed in response to proposed rule-making that would require foreign-flag cruise ships sailing round-trip from U.S. ports to make 48-hour calls in foreign destinations and devote at least half of the port content to non-U.S. destinations.

Senators, Governors and Representatives, mayors, maritime unions, travel agents, tour operators, port directors, as well as CLIA, individual brands and suppliers are among those who submitted comments.

With the 30-day comment period closed, Customs and Border Protection (CBP) is now reviewing the input before moving ahead with a final interpretive rule and effective date.

Many comments voiced alarm at the potentially sweeping impact of the proposed rule-making. Though targeted at Hawaii cruises from the U.S. West Coast that make only cursory stops in foreign ports like Ensenada, the interpretation as written could impact virtually all foreign-flag cruises from the U.S.

It seems unlikely, however, that CBP had such wide-ranging intentions given that Hawaii is the only market where there are ocean-going U.S.-flag interests to protect. The rule-making springs from the U.S. Maritime Administration’s concerns about NCL America withdrawing a ship from Hawaii service due to competition from foreign-flag lines.

Parent company Norwegian Cruise Line could itself be hurt if CBP enforces the proposed rules on Seattle-based ships, for example.

NCL America’s own comment to CBP focuses on Hawaii. ‘Customs should clarify that the proposed interpretation is limited to vessels operating in the Hawaii trades and adopt reasonable measures to ensure sufficient foreign content,’ the line wrote.

A letter from MARAD administrator Sean Connaughton urging CBP to promptly adopt the rule-making similarly addresses Hawaii solely.

Under current law, NCL America is limited to Hawaii and may not operate in other regions.

Further comments asking CBP to defend the U.S. registry and American jobs were from Hawaii Sen. Daniel Inouye, a key force behind the legislation that allowed NCL America to reflag foreign-built ships for Hawaii service. Inouye and three fellow Hawaii lawmakers told CBP: ‘Our nation’s cabotage laws are vitally important to our economic and national security.’

In her own letter, Hawaii Gov. Linda Lingle asked for a ‘balanced’ approach, pointing to a loss of $80m in direct spending on state goods and services if all international ships withdraw. She encouraged CBP to balance the protection of U.S.-flag ships while continuing to allow foreign cruise ships to visit, urging no minimum port-of-call time at international destinations and no mandated percentage of stops that would affect Hawaii calls.

In a strongly worded letter, the Seafarers International Union called for CBP not only to enforce the new rule-making but to go further by imposing penalties for past violations of the Passenger Vessel Services Act. The union suggested CBP refer the matter to the Internal Revenue Service ‘for consideration of any tax obligations due by the foreign-flag operators as a result of engaging in domestic voyages.’

For its part, Royal Caribbean International characterized the agency’s proposed requirements including 48-hour calls in foreign ports as ‘arbitrary’ and ‘capricious.’ The line also cited 1992 and 1997 rulings that condoned brief service calls to comply with PVSA.

Royal Caribbean noted that it extended Ensenada calls after receiving an August letter from CBP voicing concern that Hawaii cruises with short foreign-port stops were violating cabotage. RCI also challenged NCL America’s assertion that the main reason it is withdrawing a ship from U.S. registry is due to foreign competition.

The matter is now in CBP’s hands. If the agency hones the rule-making to apply specifically to Hawaii, there could still be dramatic changes for foreign-flag operators to the 50th state. Depending on the effective date, sailings that typically operate on the shoulder of the Alaska season, which starts in May, might be affected.

Also critical will be whether CBP retains its proposal to require 48-hour stays in foreign ports and at least 50% foreign port content.

For full explanation on the Jones Act, Cabotage and all related information visit this site - cabotage.

A chance to purchase a piece of maritime history and enjoy the work of art as well.

These glass panels were recently rescued from the shipbreakers when the HARMONY (ex STATENDAM) was scrapped at Alang. Signed by artist D Ten Hoedt/Amsterdam, they have endured fifty years of Atlantic crossings, worldwide cruising, and shipping in a container from India to California. They have been consigned to X21 Modern of San Francisco who did a fantastic job of restoring their original luster. Sadly, although they have been offered to Holland America for "cost", there is no interest in returning them to sea on a newbuild despite their historic connection and vintage beauty. For more information on these panels, please visit www.midshipcentury.com or www.x21modern.com.