Far East Shipping Company-Provision of Icebreaker Services for the U.S. Antarctic Program-Russian Icebreaker KRASIN

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Under a Memorandum of agreement the United States Coast Guard has provided ice breaking support to the United States Antarctic Program (USAP). In the 2004 - 2005 Austral summer, two rather extraordinary circumstances combined: 1) The extent of fast ice in McMurdo Sound exceeded 100 nautical miles - more than double the extent ever seen before, and 2) One of the two Coast Guard vessels able to break a channel to USAP's McMurdo Station was not able to sail due to mechanical difficulties. The Coast Guard and the NSF Office of Polar Programs determined that if only one icebreaker were used, the risk to the USAP would be too great. A worldwide search for an available icebreaker was conducted. This search resulted in the charter of the Russian icebreaker, KRASIN from the Far East Shipping Company (FESCO). The KRASIN is a very capable icebreaker and the largest conventionally powered icebreaker in the Russian fleet. Again, in the 2005 - 2006 Austral summer the USAP is faced with an identical situation. The ice is extensive and only one USCG POLAR class vessel is available. After another worldwide search the KRASIN was offered by FESCO. For the coming year KRASIN will be the lead icebreaker and POLAR STAR will be held in ready reserve to assist if necessary. In order to confirm the availability of the KRASIN, NSF and FESCO have mutually agreed to sign charter in fiscal year 2005 with a $1.00 obligation. The estimated obligation for FY06 is $7,200,000. The actual amount will be adjusted pending actual schedule and fuel consumed.