Containerization and LASH (lighter aboard ship) are revolutionary cargo handling 

 features of this new merchant vessel. The moving gantry system loads and unloads 

 containerized cargo over the stern without requiring pierside space, resulting in 

 faster transport and reduced costs and handling. 



A new program was started for subsidized construction of 80,000-ton ore- 

 bulk-oil (OBO) carriers and a 230,000-ton supertanker. In January 1972, 

 Keystone Shipping signed contracts with National Steel for construction 

 of three tankers. Shell International, which will charter these ships from 

 Keystone Shipping, could have obtained comparable tonnage elsewhere; but 

 in this highly competitive market, an American builder was able to compete 

 successfully. This is the first time in modern history that a U.S. owner 

 has been able to obtain long-term charters for American-flag operation in 

 foreign trade. Prior to the 1970 Act, this would not have been possible. 



During 1971, applications for the establishment of capital construction 

 funds were approved for 45 companies. As these funds grow, they will pro- 

 vide a greatly expanded base for the industry to develop new fleets in the 

 years ahead. It is generally agreed that the modern fleets of today exist 

 almost entirely because of the ability of the merchant marine companies 

 to set aside tax-deferred dollars for future shipbuilding. 



With the great expansion thus indicated, a growing availability of capital 

 funds for future building is foreseen. This has become most immediately ap- 

 parent in the Great Lakes area where several companies have plans for the 

 construction of 10 new dry-bulk carriers and seven smaller vessels and for 

 major conversions of 17 existing bulk carriers. The estimated contract prices 

 of these projects total $175 million. With most of the principal companies 

 engaged in trade between the United States and its nonconterminous areas 

 having now established reserve funds, it can be anticipated that programs 

 will be underway within the next year to replace the old World War II 

 built tonnage that has been serving Alaska, Hawaii, and Puerto Rico. 



89 



