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MarAd Announces More Disposal Contracts

Maritime Activity Reports, Inc.

June 15, 2006

The U.S. Maritime Administration (MarAd) has signed contracts for the disposal of four ships from the Suisun Bay Reserve Fleet at Benicia, CA, bringing to nine the number that have left the facility for recycling since October 2005. The four ships are World War II-vintage Victory ships: Hannibal Victory, the Barnard Victory, the Occidental Victory and the Sioux Falls Victory. When ships are no longer considered useful for defense or aid missions, MARAD arranges for their proper disposal and works closely with the Coast Guard to ensure the safe transport of the vessels to their final destinations. Before towing from the fleet, all ships are inspected by an independent party. In addition, they must meet extensive Coast Guard and international regulations regarding environmental safeguards, seaworthiness, and watertight integrity Marine Metal, Inc., of Brownsville, TX, will dismantle the Hannibal Victory and the Sioux Falls Victory, under the terms of contracts each worth $978,698. All Star Metals, Inc., also of Brownsville, will dismantle the Barnard Victory for $1,202,949, and the Occidental Victory for $1,191,987. The steel from all four ships will be recycled.

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