Proposals for long-term operation of the nuclear ship Savannah have been requested from U.S.-flag operators by the Maritime Administration, U.S. Department of Commerce.
The proposals may be for a bareboat charter agreement starting about July 1, 1969, and extending for a period between 5 and 10 years with or without renewal options, or for outright transfer of title to the ship, or for some other satisfactory arrangement.
The Maritime Administration believes that the potential of nuclear propulsion for merchant vessels may be growing, Acting Maritime Administrator J. W. Gulick said. The higher power requirements and higher vessel utilization of larger and faster surface vessels will give nuclear power an advantage in fuel economy. The Maritime Administration has been promoting the development of nuclear-powered merchant ships since 1956 and has supported research along this line as well as building and operating the Savannah.
Estimated cost to the government of operating the Savannah in its present commercial service under First Atomic Ship Transport Inc., a subsidiary of American Export Isbrandtsen Lines, is about $1,800,000 a year, plus $1,200,000 for operating support, and $300,000 for crew training. The present agreement with FAST extends to June 30, 1969. The government desires to reduce or eliminate the need for this support by long-term charter or transfer of the ship to an operator who could make the Savannah a successful business venture.
It is expected that revenues could be increased and operating costs reduced, through modifications such as installation of container capability; insertion of a midbody to increase available cubic; expansion of mechanization, automation, and centralization of machinery control to provide some reduction in required manning levels; modification of present hold arrangements and cargo handling equipment; or modification for non-cargo carrying operation such as a Trade Fair Ship.
Since the ship was recently refueled, it has nuclear propulsion energy for between 5 and 6 years, which could be made available to the operator.
The prospective operator would be required to obtain licensing by the U.S. Atomic Energy Commission. The proposed use of government nuclear training and servicing facilities are to be included in the proposal. Government technical assistance could be made available in these areas, and, if required, in opening new ports. The government will provide Third Party Nuclear Liability insurance, together with self-insurance of the vessel's hull and machinery if the vessel is chartered. Federal Ship Mortgage Insurance could be made available for hull and machinery modifications if the title is transferred.
The proposals are to be submitted by March 14, 1969.