FOREWORD similar letters dated February 10, 1966, Senator Warren G. nuson, chairman of the Senate Committee on Commerce, requested Atomic Energy Commission, the Department of Defense, and the itime Administration of the Department of Commerce to collaboand prepare a document concerning a nuclear merchant fleet. e letters read as follows: Committee on Commerce intends to schedule hearings to develop a recomation on a national policy toward a nuclear merchant fleet. These hearings robably begin in late June. a background for these hearings, I request that the Atomic Energy Comon, the Department of Defense, and the Maritime Administration collaborate repare a document concerning a nuclear merchant fleet. I would like to ou collectively consider existing and proposed power plants, the experience he NS Savannah, the manning and porting questions, the best uses of a nuvessel, what your recommendations are, and such other information as -el will be useful. ould like to have your report on or before June 14, 1966. I would appreciate eeping me informed of your progress on this matter. Please contact Donald , staff counsel, telephone number 225-5115, room 5202, New Senate Office ng. is report has been developed in response to Senator Magnuson's St. III pter I.-Trends in ocean trade and transportation systems (MA): Emergence of integrated transportation systems.. Trends in general cargo handling and containerization. Trends in ship size, type, and speed... Trends to improve the competitive economics of nuclear power for ter III.-Nuclear plant cost (AEC): er VII.—Safety, licensing, and indemnification (AEC): Chapter VIII.-Defense considerations for nuclear merchant ships (DOD). Trailer on flatcar traffic, 1955-65- General cargo ship trend in size and speed. U.S. liner trade estimates, 1970-95-- Size of dry bulk carriers, January 1966- Size of bulk carriers on order, January 1966__ Hypothetical shipping costs, United States to Europe. Nuclear ship characteristics.. Near term-I ong term construction cost. Comparison of operating cost of oil and nuclear ships_ Nuclear entry cost for two, three, and four ships.. Installed nuclear propulsion plant costs.. Nuclear fuel cycle cost estimates.. AEC 5-year program, R. & D. test facility. NS Savannah reactor vessel and internals.. B. & W.-CNSG reactor and containment.. Combustion engineering (UNIMOD) maritime reactor. Westinghouse-General arrangement of reactor and propulsion machinery. U.S. NUCLEAR MERCHANT FLEET INTRODUCTION The U.S. Government through the activities of the U.S. Atomic Energy Commission has taken the lead in the research and development of applications for the peaceful use of nuclear energy. The generation of heat and power for industry, transportation and communication promises to be a major peacetime use of nuclear energy. The Atomic Energy Commission has already made much progress in stationary powerplant and in naval ship powerplant design. There has been only one application of nuclear power to merchant ships. Therefore, progress toward solution of the engineering, economic, and institutional problems associated with the application of nuclear power to merchant ships has not kept pace with other applications. The Maritime Administration, the Atomic Energy Commission and the marine industry in the United States have been engaged in study and research efforts to determine the most suitable "next generation" shipboard application of nuclear power to follow the completion of the Savannah project. The question has been complicated because features other than the simple substitution of a nuclear powerplant in a conventional type hull with burtoning gear seemed to be needed to make use of nuclear power economically promising. The U.S. merchant fleet consists of 949 privately owned ships in active service as of April 1, 1966, 68 percent of which were constructed during World War II. The Government owned reserve fleet numbers 1,496 ships, all of which are of World War II vintage. Thus only a very limited number of the U.S. merchant ships can be considered modern and competitive. The privately owned ships are categorized The subsidized cargo ships are being replaced with ships which are among the finest in the world at a rate of 12 to 14 ships per year. Up to the present time, only one-third of the small subsidized fleet represents modern tonnage. Of 275 unsubsidized tankers, only 27 percent are 10 years old or less. On the other hand, there are few ship replacements planned by our unsubsidized cargo-ship owners operating in foreign trades or by our domestic ship operators. The U.S. maritime industry is faced with an obsolescence problem of substantial proposition. Stating this another way, the average age of the active and reserve U.S.-flag fleet is now almost 20 years, whereas the corresponding average age of our major competitors' fleets such as the United Kingdom is |