2001 Maritime
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August 27, 2001

Larry Hornbeck joins Hornbeck-Leevac board
Larry D. Hornbeck, former Chairman of the Board, President, Chief Executive Officer and founder of the original Hornbeck Offshore Services, Inc., has joined the Board of Directors o fHornbeck-Leevac Offshore Services, Inc., effective August 22, 2001.

From its inception in 1981 until its merger with Tidewater, Inc. in March 1996, the original Hornbeck Offshore Services, Inc. was a publicly-held offshore supply vessel company. Following the merger, Larry Hornbeck was also a director of Tidewater, Inc. from March 1996 until October 2000.

Hornbeck grew the original Hornbeck Offshore Services, Inc., from four to over 100 offshore service vessels. through a series of vessel building programs and acquisitions

In other board changes, Mark J. Warner, who until his departure from Enron Capital & Trade Resources was the board designee of Hornbeck-Leevac's warrantholders, has resigned . R. Clyde Parker, Jr., a founding director and the company's corporate and securities counsel, has changed his status to that of a non-voting advisory director .

Navy job for Halifax
A C$9.4-million competitive contract awarded to Les Chantiers Maritime Irving Shipbuilding Corporation (operating as Halifax Shipyard) for maintenance and repair work on the HMCS Athabaskan will create 85 jobs and maintain an additional 30 until the end of June 2002. The contract was awarded on behalf of Canada's Department of National Defence (DND).

The announcement was made today by the Honorable Alfonso Gagliano, Minister of Public Works and Government Services.

"Government of Canada contracts such as this one for maintenance work on naval ships ensure that these vessels continue to operate efficiently and cost-effectively," said the Minister. "I am very pleased to see that this project will have the added benefit of creating and maintaining a significant number of local jobs."

The HMCS Athabaskan is a command and control ship for a Canadian Naval Task Group and has upgraded air defenses and improved communications and sensor systems. The vessel will be drydocked in Halifax Shipyard. The work, which will commence in early October, includes cleaning and painting the ship's hull, making specialized equipment repairs, and carrying out a standard machinery overhaul and upgrades to various ship systems.

Funding for this contract was provided for in the February 2000 Federal Budget and the October 2000 Economic Statement and Budget Update and is therefore built into the existing fiscal framework.

Ft Lauderdale gets a Waterbus
Canal Boats, Inc. has delivered the first bio-diesel hybrid electric ferry, the Clay Shaw to Broward County (Florida) Mass Transit. It is the first of eight water buses that is being delivered to Broward under an imaginative plan developed by Bob Bekoff, the founder and owner of Fort Lauderdale’s Water Taxi.

WATER BUS

The Water Bus service is a makeover of the Water Taxi concept. Bekoff believes that the new service will attract a much higher ridership.
The Water Bus service will operate with cheaper fares and will be linked to Broward County’s public transit system.

The 70 passenger boats are being built by another Bekoff undertaking, Canal Boats, for Broward County, which has received $2 million of federal mass transit grants.

With a length of 42 ft and beam of 11 ft 6 in they have a draft of 3 ft .

They will be operated by Bekoff’s Water Bus under a 10 year service contract.

For the first three years, the service will benefit from $1.5 million of operating subsidies under another federal program designed to improve air quality.

By avoiding Fort Lauderdale’s traffic congestion, the buses will hopefully tempt commuters out of their cars. But beyond that, the electrically-driven boats themselves have a “green” power system.

The drive system is powered by a 100 kW John Deere genset which runs on bio-diesel, an 80/20 mix of diesel fuel and vegetable oil. A bank of 6V DeKa batteries also provides 240V power to the Baldor drive motors through Danfoss variable frequency drives.

The boats’ throttle/directional controls are by Marine Engine Controls and steering is Seastar capilano. The unique top was built in Quebec by RTM and shipped in one 39 ft long assembly. The top has anodized aluminum frames and Lexan Thermo-Clear overhead panels. Rich Beer’s Technicold supplied a 10-ton programmable air conditioning system. Conveyor and Castor supplied the fendering. Depco supplied the fire pump.

More Japanese take cruises
The numbers are still small compared with those for Americans or Europeans, but a report from Japan's Land, Infrastructure and Transport Ministry shows that a record 226,000 Japanese vacationers chose overnight ship cruises in 2000, up 33.4 percent from the previous year.

The report covers cruises lasting for more than one night. The previous record was 225,000, set in 1995.

The number of passengers on ocean liner cruises rose 84.3 percent to 131,000, the report says, noting that the rise in ocean cruises reflects the opening of new routes linking Fukuoka with South Korea and China at discount rates. .

Married couples in their 60s made up a sizable percentage of those taking overnight cruises, the report says.

The average duration shortened from 8.6 nights in 1999 to 5.2 nights in 2000.

The most popular cruise destinations were South Korea, China and other countries in Asia.

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