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SEA-LAND FILES TO REFLAG 13 VESSELS;TO CONTINUE PUSH FOR MARITIME REFORM

 RICHMOND, Va., June 29 /PRNewswire/ -- Sea-Land Service Inc., the largest U.S.-flag container-shipping company and a wholly owned subsidiary of CSX Corporation (NYSE: CSX), today filed applications seeking approval of the Secretary of the Department of Transportation for the transfer of 13 of its 41 U.S.-flag vessels from U.S. to Marshall Islands registry.
 Approval of the applications is necessary for the company to obtain the cost savings needed to remain competitive in the global transportation marketplace, said John P. Clancey, president and chief executive officer of Sea-Land. "We can no longer afford to continue operating these vessels under the U.S. flag, competing against lower- cost, foreign-flag operators or subsidized U.S.-flag operators," he said. Clancey said the company feels it has made a strong and compelling case for approval and is hopeful the Secretary will act promptly.
 Clancey said the company will continue its aggressive efforts in support of comprehensive reform of U.S. maritime policy, which it jointly launched with American President Lines in February 1992. Clancey noted that those efforts appeared on the brink of success in the closing days of the 102nd Congress and in the early days of the 103rd Congress, only to be beached by a lack of funding. "We will continue our active support of the present legislative efforts," he said, "but they are highly uncertain in content, funding, timing and likelihood (more)of passage, even though they enjoy widespread support in Congress and among carriers and maritime labor."
 If legislation embracing comprehensive maritime reform is enacted, Sea-Land would consider returning the vessels to U.S. registry, Clancey said. "Nothing would please us more than being able to compete effectively while flying the U.S. flag."
 Clancey said the company, which pioneered the container-shipping industry and has been operating without government subsidy since 1956, has not relied solely on obtaining relief from the U.S. government in the form of maritime reform to improve and strengthen its competitive position. "We have taken advantage of every available opportunity to reduce operating costs and improve our competitive position in the hope these efforts would allow us to continue operating as a U.S.-flag carrier," he said.
 "Sea-Land has made many difficult organizational and operating decisions in the past few years as it became more and more apparent our competitive position was threatened. We have reduced our work force, cut costs through reorganization and restructuring, streamlined operations and implemented use of advanced technology. In short, we have done whatever we could to improve our competitive position. Nonetheless, those steps were insufficient to make up for the cost of operating our vessels under the U.S. flag."
 Reflagging will have no effect on the high level of customer service provided by Sea-Land, Clancey said. The company will continue to operate 12 vessels under the U.S. flag to fulfill its current commitments to the military. Clancey said Sea-Land will continue to review the number of vessels required to meet military commitments and may file for approval of foreign registry for some of those vessels in the future, depending on the outcome of maritime reform legislation now being considered by Congress.
 An additional 16 U.S.-flag vessels used by Sea-Land to service Hawaii, Alaska and Puerto Rico are not affected by these applications.
 Of the ships Sea-Land is seeking to reflag, six are engaged in trans-Atlantic service; four in the trans-Pacific trades; two in the company's Asia-Europe Express service; and one in feeder service in Asia.
 Sea-Land said the Marshall Island registry would satisfy national security interests. An agreement between the two countries provides that control of vessels registered in the Marshall Islands can be assumed by the U.S. government in the event of a national security emergency.
 Sea-Land Service Inc., a unit of CSX Corporation, is a world leader in international intermodal freight transportation and related trade services. Sea-Land operates more than 80 container ships and 156,000 containers in U.S. and foreign trade and serves 100 ports in 70 countries and territories around the world.
 CSX Corporation, headquartered in Richmond, is an international transportation company offering a variety of rail, container-shipping, intermodal, trucking and barge services.
 -0- 6/29/93
 /CONTACT: Jesse R. Mohorovic, 908-604-3154, or William C. Summers, 908-604-3614, both of Sea-Land; or Elisabeth J. Gabrynowicz or Suzanne S. Walston of CSX Corporation, 804-782-1400/
 (CSX)


CO: CSX Corporation; Sea-Land Services, Inc. ST: Virginia IN: TRN SU: LEG

KD-DS -- DC002 -- 6560 06/29/93 08:52 EDT
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Date:Jun 29, 1993
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