The keel has been laid and construction is now underway at Martinolich Shipbuilding Company, Tacoma, Wash., of a super-modern $2-million, 500-passenger cruise ship scheduled for service between the mainland and Catalina Island, it was announced recently by an official of the Catalina Terminals, Inc.

The newly designed, 160-foot luxury liner will be placed in public service at the beginning of the 1969 summer season, according to Charley Stillwell, general manager of the Catalina transportation company.

The 30-knot, all-aluminum liner, powered by four 1,250-hp General Electric gas turbine engines, will make the cross-channel trip in one hour, which the operators claim "will make it the fastest vessel to ever serve the public in transportation to Catalina Island." Over 157,000 pounds of Kaiser Aluminum's Nos. 5086 and 6061 marine alloys will be used in the hull and superstructure.

The new vessel, described as a turbo liner, will operate year-round service between the Catalina Terminal in the San Pedro section of the Port of Los Angeles and Avalon City, situated near the east end of Catalina Island, according to Mr. Stillwell.

"The vessel will have built-in passenger comforts, including stabilizers to reduce roll," the passenger liner executive said.

The vessel will have an observation lounge, a unique type of bar service and cocktail lounge area, a snack bar, comfortable seating, stereo music and, for special charters, a dance-deck area.

The turbo liner will be named the Catalina, after the famous 'Big White Steamer' which was retired after serving the general public and tourist trade for 43 years.

Plans and specifications for the vessel were prepared by Philip F. Spaulding and Associates, naval architects and marine engineers in Seattle, Wash.

Sleek new passenger ferry designed for ocean travel between the Port of Los Angeles and Avalon City, Catalina Island, is now under construction at Tacoma, Wash. The all-aluminum liner, using more than 157,000 pounds of Kaiser Aluminum in its 160-foot hull and superstructure, will carry 500 passengers at speeds up to 30 knots.