[ Georgia House Appropriations Committee ]

Tours Georgia Ports Authority Operations in Savannah & Brunswick

Members of the Georgia House Appropriations Committee, as well as repr
esentatives from the Georgia Department of Transportation and the Legi
slative Budget Office, were in Savannah and Brunswick recently for bri
efings and tours of terminal operations at the Georgia Ports Authority
. The 22 member delegation, headed by House Appropriations Committee
Chairman, Rep. Terry Coleman(D, Dist. 142) and Rep. Tommy Smith(D, Dis
t. 169), Chairman of the House Appropriations Sub-committee on Economi
c Development, met with port officials for an update on statewide term
inal operations at the Georgia Ports Authority. In addition to review
ing GPA operations and services, topics scheduled for discussion inclu
ded trade development issues, facitility expansion, harbor deepening a
nd a review of items within the GPA budget request for Fiscal Year 199
9(beginning July 1, 1998).
After completing their morning agenda, the delegation toured the Port
of Savannah’s Garden City and Ocean Terminals for a firsthand look at
the harbor and the port’s efficienies in the handling and storage of
containerized and general cargoes.
Following the tour of terminal operations at the Port of Savannah, the
group departed for the Port of Brunswick to review general cargo and
dry bulk operations at the port’s Mayor’s Point Terminal, Marine Por
t Terminals and Colonel’s island Terminal.

North of England & Newcastle P&I Clubs Circuate Merger Details

The directors of the North of England P&I Association and the Newcastl
e P&I Association have recentyl circulated details of the proposed mer
ger between the two clubs and have recommended members to vote in favo
ur of the merger at their respective extraordinary general meetings on
1 December 1997.
Accordingly to North of England chairman Stephan Reith and Newcastle c
hairman Spyros Polemis:”The benefits of the merger and an enlarged me
mbership, giving a greater spread of risk; a stronger balance sheet, p
roviding better investment opportunities and enhanced ability to withs
tand adverse market conditions; increased human resources, enabling mo
re specialised services; and economies of scale, resulting in greater
efficiency.”
Following a joint report commissioned by both clubs from accountants M
oore Stephens and soicitors Stephenson Harwood, the merger was unanimo
usly approved by the Newcastle’s board on 10 October and by the North
of England’s board on 17 October.
Both boards agreed that the merger should be achieved by the Newcastle
club paying the North of England club a reinsurance premium to close
which will cover the Newcastle club’s liabilities for the 1997/98 and
previous policy years.
The reinsurance-to-close premium will initially be the sum of the Newc
astle’s assessed net insurance liabilities at 20 February 1998, the f
ree reserve at 20 February 1997 of US$ 8.3 million and a ‘risk’ prem
ium of US$ 7.2 million.
The risk premium is to allow for deterioration of projected liabilitie
s and assets and it is also designed to achieve parity in the ratio of
free reserves to net premium income. A final assessment of the 1996/
97 and earlier policy years will be made on 20 February 1999 and, if l
iabilities are lower than estimated on 20 February 1998, the risk prem
ium will be reduced up to a maximum of US$ 5 million.
The risk premium of US$ 7.2 million will be payable by Newcastle membe
rs in two parts: initially a call totalling US$ 2.2 million due in 199
8, and a second potential call of up to US$ 5 million due in 1999.
Newcastle members will be encouraged to transfer to the North of Engla
nd on 20 February 1998 but those who do not wish to will be required t
o pay release calls or provide a first class bank guarantee for their
supplementary calls in the usual way.
Qualifying directors of the Newcastle will be appointed to the North o
f England board on 20 February 1998. Stephan Reith will remain as cha
riman and Peter Henderson(currency North of England vice chairman) and
Spyros Polemis will be vice-chairmen.
The Newcastle board wil remain reponsible for the club’s affairs but
day-to-day management will be carried out by the North of England.
The Newcastle club’s staff will be integrated with North of England s
taff and located in the North of England’s head of office at The Quay
side in Newcastle.
Entered tonnage in the North of England and Newcastle clubs is current
ly 20 million GT and 6 million GT respectively. British and European
members dominate both clubs though there are significant representatio
ns from the Far East and Middle East. The merger was first discussed
by the Newcastle and North of England directors in May and June 1997 r
espectively.