Cape Diamond                                           Special - User Selected
                 MAINTENANCE AND REPAIR TRACKING SYSTEM 02.02.05.01
                           DEFICIENCIES REPORT - DETAILED 
  Report Date: 02/25/04   
   Rpt Date                                 MAINTENANCE AND REPAIR TRACKING SYSTEM 02.02.05.01                           PAGE:  1
  02/25/04                                           DEFICIENCIES REPORT - DETAILED
                                                        Special - User Selected
  ----------------------------------------------------------------------------------------------------------------------------------
  Vessel..: Cape Diamond                                      C-Rating: C2 - Deficiencies CORRECTABLE Within R-Status
  Location: O-CHA - Charleston, SC                            R-Status: 5/ROS - 5 Day (Outported)(9-men ROS Crew)
  Region..: SAR - South Atlantic Region                       Surveyor: WYW - Wai Y. Wong
  SM/GA...: MTL   - Marine Transport Lines, Inc.              COTR....: NTB - Norwood T. Bailey
  ----------------------------------------------------------------------------------------------------------------------------------
  DSN     DIS DATE  POC   SAC    EQN             MEI   SDT DATE  SPEC RCD  PRI  BDGT CODE   STA  EST COST       OBLG/ACT      MTC  CORR DATE  TO REF
  ======================================================================================================================================================
  G016C   02/01/00  MSJH  MNT30      -     -     0117  07/15/06  02/01/00  04   06-03-B-00  01   $50000.00      $0.00         SP     /  /                   
          DESCRIPTION:
          ANNUAL FUEL REQUIRMENTS FY06        REPLENISH FUEL 5 DAY RESERVES ONBOARD 
          THE SHIP THAT WAS USED TO SUPPORT LIGHT OFF FOR TESTING AND MARAD DOCK    
          TRIAL REQUIREMENTS:                                                       
                                                                                    
          THREE DAY SEA TRIAL                                                       
                                                                                    
          MGO #2 = $250 = 200 TON = $50,000                                         
                                                                                    
          DOCK TRIAL                                                                
                                                                                    
          #2 MGO = $250 = 40 TON = $10,000                                          
                                                                                    
          P4P MAINTENANCE LIGHT OFF MN/SSDG AND BOILER WINTER                       
                                                                                    
          #2 MGO = $250 = 160 TON = $40,000                                         
   Rpt Date                                 MAINTENANCE AND REPAIR TRACKING SYSTEM 02.02.05.01                           PAGE:  2
  02/25/04                                           DEFICIENCIES REPORT - DETAILED
                                                        Special - User Selected
  ----------------------------------------------------------------------------------------------------------------------------------
  Vessel..: Cape Diamond                                      C-Rating: C2 - Deficiencies CORRECTABLE Within R-Status
  Location: O-CHA - Charleston, SC                            R-Status: 5/ROS - 5 Day (Outported)(9-men ROS Crew)
  Region..: SAR - South Atlantic Region                       Surveyor: WYW - Wai Y. Wong
  SM/GA...: MTL   - Marine Transport Lines, Inc.              COTR....: NTB - Norwood T. Bailey
  ----------------------------------------------------------------------------------------------------------------------------------
  DSN     DIS DATE  POC   SAC    EQN             MEI   SDT DATE  SPEC RCD  PRI  BDGT CODE   STA  EST COST       OBLG/ACT      MTC  CORR DATE  TO REF
  ======================================================================================================================================================
  G017A   12/11/03  MSWW  REG00      -     -     0701  10/01/05  12/11/03  04   06-03-C-01  01   $42200.00      $0.00         SP     /  /                   
          DESCRIPTION:
          ANNUAL REGULATORY SURVEYS           Issue purchase orders to conduct the  
          following annual Regulatory Body surveys and inspections.  See Reference. 
                                                                                    
          A. American Bureau of Shipping (ABS)........$   42,200                    
             A.01 Reefer Plant Survey.............$ xx,xxx                          
             A.02 Cargo Gear Survey...............$ 10,000                          
             A.03 Hull Survey.....................$  8,200                          
             A.04 Load Line.......................$  2,500                          
             A.05 Machinery and Electrical........$  9,500                          
             A.06 Special Survey (RRF)............$ 10,000                          
             A.07 Mandatory Survey (Annual).......$  2,000                          
             A.08 Other...........................$ XX,XXX                          
             A.09 Other...........................$ XX,XXX                          
          B. United States Coast Guard (USCG).........$ XXX,XXX                     
             B.01 Radiotelegraph Certificate......$ XX,XXX                          
             B.02 Bridge to Bridge Certificate....$ XX,XXX                          
             B.03 Life Rafts......................$ XX,XXX                          
             B.04 Certificate of Documentation....$ XX,XXX                          
             B.05 Firefighting Equipment Inspect..$ XX,XXX                          
             B.06 Mid-Term COI....................$ XX,XXX                          
             B.07 Financial Responsibility Cert...$ XX,XXX                          
             B.08 Other...........................$ XX,XXX                          
             B.09 Other...........................$ XX,XXX                          
          C. Regulatory Body Fees.....................$ XXX,XXX                     
             C.01 American Bureau of Shipping.....$ XX,XXX                          
             C.02 U. S. Coast Guard...............$ XX,XXX                          
             C.03 Other...........................$ XX,XXX                          
             C.04 Other...........................$ XX,XXX                          
          D. Industrial Assistance....................$ XXX,XXX                     
             D.01 Labor (XXX MH @ $XX/MH).........$ XX,XXX                          
             D.02 Materials.......................$ XX,XXX                          
             D.03 Fee.............................$ XX,XXX                          
             D.04 Other...........................$ XX,XXX                          
          REFERENCE:
          Check MARTS SRV File                                                      
   Rpt Date                                 MAINTENANCE AND REPAIR TRACKING SYSTEM 02.02.05.01                           PAGE:  3
  02/25/04                                           DEFICIENCIES REPORT - DETAILED
                                                        Special - User Selected
  ----------------------------------------------------------------------------------------------------------------------------------
  Vessel..: Cape Diamond                                      C-Rating: C2 - Deficiencies CORRECTABLE Within R-Status
  Location: O-CHA - Charleston, SC                            R-Status: 5/ROS - 5 Day (Outported)(9-men ROS Crew)
  Region..: SAR - South Atlantic Region                       Surveyor: WYW - Wai Y. Wong
  SM/GA...: MTL   - Marine Transport Lines, Inc.              COTR....: NTB - Norwood T. Bailey
  ----------------------------------------------------------------------------------------------------------------------------------
  DSN     DIS DATE  POC   SAC    EQN             MEI   SDT DATE  SPEC RCD  PRI  BDGT CODE   STA  EST COST       OBLG/ACT      MTC  CORR DATE  TO REF
  ======================================================================================================================================================
  G023A   12/11/03  MSWW  SAF00      -     -           10/01/05    /  /    04   06-03-C-00  01   $130000.00     $0.00         SP     /  /                   
          DESCRIPTION:
          VESSEL GROUP SECURITY                                                     
                                                                                    
          PROVIDE LABOR, MATERIAL/MATERIELS TO ACCOMPLISH VESSEL SECURITY TO        
          INCLUDE, GUARD SERVICE, FENCE REPAIR, SHORE POWER BARRIER AND POTABLE     
          WATER BARRIER INSTALLATION.                                               
  G032A   12/12/03  MSWW  FLD00      -     -     0184  10/01/05    /  /    04   06-03-C-00  01   $20000.00      $0.00         SP     /  /                   
          DESCRIPTION:
          SLOP REMOVAL                        Due to the EPA strigent requirments   
          regarding oilly water seperators discharging in to the water, The slops   
          generated from the vessel will have to be disposed of by contractor:      
          Contractor to receive from the vessel and dispose of all wast slop IAW all
          regulatory bodies requirments.                                            
  G055A   12/12/03  MSWW  MNT70      -     -     0173  10/01/05    /  /    04   06-03-C-04  01   $28000.00      $0.00         SP     /  /                   
          DESCRIPTION:
          ROS PHASE IV MAINT. SPARE PARTS     Purchase spare parts for repair of    
          various machinery/equipment during Phase IV maintenance.                  
  G067R   12/10/97  MSJH  DOC50      -     -     0102  10/15/05  12/10/97  04   06-03-B-04  01   $20000.00      $0.00         SP     /  /                   
          DESCRIPTION:
          REPLACEMENT OF SPARE PARTS PC-SAL   Spare parts (Controlled Material)     
          which have been drawn from Pc-Sal inventory require replacement: Ship     
          Manager to reorder all parts which have been removed for repair of various
          machinery/equipment. All spare parts are to be charged to the Work Order  
          provided for this purpose.                                                
   Rpt Date                                 MAINTENANCE AND REPAIR TRACKING SYSTEM 02.02.05.01                           PAGE:  4
  02/25/04                                           DEFICIENCIES REPORT - DETAILED
                                                        Special - User Selected
  ----------------------------------------------------------------------------------------------------------------------------------
  Vessel..: Cape Diamond                                      C-Rating: C2 - Deficiencies CORRECTABLE Within R-Status
  Location: O-CHA - Charleston, SC                            R-Status: 5/ROS - 5 Day (Outported)(9-men ROS Crew)
  Region..: SAR - South Atlantic Region                       Surveyor: WYW - Wai Y. Wong
  SM/GA...: MTL   - Marine Transport Lines, Inc.              COTR....: NTB - Norwood T. Bailey
  ----------------------------------------------------------------------------------------------------------------------------------
  DSN     DIS DATE  POC   SAC    EQN             MEI   SDT DATE  SPEC RCD  PRI  BDGT CODE   STA  EST COST       OBLG/ACT      MTC  CORR DATE  TO REF
  ======================================================================================================================================================
  G090R   03/30/98  MSJH  MNT10      -     -     0111  07/15/06  03/30/98  04   06-03-B-00  01   $117000.00     $0.00         SP     /  /                   
          DESCRIPTION:
          DRYDOCKING REIMBURSABLES            The drydocking will require additional
          port engineer, service tech reps., and provide lodging /meals/overtime (OT
          @ $200/day/man) for a minimun of four ship crew members for the contrack  
          period fifty (50) days: Ship Manager to provide one assistant port        
          engineer for a period of twenty five (25) days @ $600/day, Technical      
          Representatives, McGregor @ 15 days @ $800/day, Autronica @ 5/days @      
          $800/day and MCR @ 5/days @ $800/day.                                     
                                                                                    
          Perdiem $42,000                                                           
          Travel   10,000                                                           
          OT       25,000                                                           
          Tech Rep 22,000                                                           
          P/E      18,000                                                           
                                                                                    
          TOTAL  $117,000                                                           
   Rpt Date                                 MAINTENANCE AND REPAIR TRACKING SYSTEM 02.02.05.01                           PAGE:  5
  02/25/04                                           DEFICIENCIES REPORT - DETAILED
                                                        Special - User Selected
  ----------------------------------------------------------------------------------------------------------------------------------
  Vessel..: Cape Diamond                                      C-Rating: C2 - Deficiencies CORRECTABLE Within R-Status
  Location: O-CHA - Charleston, SC                            R-Status: 5/ROS - 5 Day (Outported)(9-men ROS Crew)
  Region..: SAR - South Atlantic Region                       Surveyor: WYW - Wai Y. Wong
  SM/GA...: MTL   - Marine Transport Lines, Inc.              COTR....: NTB - Norwood T. Bailey
  ----------------------------------------------------------------------------------------------------------------------------------
  DSN     DIS DATE  POC   SAC    EQN             MEI   SDT DATE  SPEC RCD  PRI  BDGT CODE   STA  EST COST       OBLG/ACT      MTC  CORR DATE  TO REF
  ======================================================================================================================================================
  G096R   01/24/00  MSJH  REG00      -     -     0701  12/15/05  01/24/00  04   06-03-A-01  01   $200000.00     $0.00         SP     /  /                   
          DESCRIPTION:
          ASSIST ANNUAL REG SURVEYS           Issue purchase orders to provide      
          industrial asssistance to conduct the following annual Regulatory Body    
          surveys and inspections.  See Reference.                                  
                                                                                    
          A. American Bureau of Shipping (ABS)........$  XX,XXX                     
             A.01 Reefer Plant Survey.............$ XX,XXX                          
             A.02 Cargo Gear Survey...............$ XX,XXX                          
             A.03 Hull Survey.....................$ XX,XXX                          
             A.04 Load Line.......................$ XX,XXX                          
             A.05 Machinery and Electrical .......$ XX,XXX    A.06 Special Survey   
          (RRF)............$ XX,XXX                                                 
             A.07 Mandatory Survey (Annual).......$ XX,XXX                          
             A.08 Other...........................$ XX,XXX                          
             A.09 Other...........................$ XX,XXX                          
          B. United States Coast Guard (USCG).........$  XX,XXX                     
             B.01 Radiotelegraph Certificate......$ XX,XXX                          
             B.02 Bridge to Bridge Certificate....$ XX,XXX                          
             B.03 Life Rafts......................$ XX,XXX                          
             B.04 Certificate of Documentation....$ XX,XXX                          
             B.05 Firefighting Equipment Inspect..$ XX,XXX                          
             B.06 Mid-Term COI....................$ XX,XXX                          
             B.07 Financial Responsibility Cert...$ XX,XXX                          
             B.08 Other.....(LP CO2 Sys)..........$ XX,XXX                          
             B.09 Elevator Weight Test. ..........$ XX,XXX                          
          C. Regulatory Body Fees.....................$ XXX,XXX                     
             C.01 American Bureau of Shipping.....$ XX,XXX                          
             C.02 U. S. Coast Guard...............$ XX,XXX                          
             C.03 Other...........................$ XX,XXX                          
             C.04 Other...........................$ XX,XXX                          
          D. Industrial Assistance....................$ 200,000                     
             D.01 Labor (2800 MH @ $42/MH) .......$117,600                          
             D.02 Materials.......................$ 82,400                          
             D.03 Fee.............................$ XX,XXX                          
             D.04 Other...........................$ XX,XXX                          
          REFERENCE:
          Check MARTS SRV File                                                      
   Rpt Date                                 MAINTENANCE AND REPAIR TRACKING SYSTEM 02.02.05.01                           PAGE:  6
  02/25/04                                           DEFICIENCIES REPORT - DETAILED
                                                        Special - User Selected
  ----------------------------------------------------------------------------------------------------------------------------------
  Vessel..: Cape Diamond                                      C-Rating: C2 - Deficiencies CORRECTABLE Within R-Status
  Location: O-CHA - Charleston, SC                            R-Status: 5/ROS - 5 Day (Outported)(9-men ROS Crew)
  Region..: SAR - South Atlantic Region                       Surveyor: WYW - Wai Y. Wong
  SM/GA...: MTL   - Marine Transport Lines, Inc.              COTR....: NTB - Norwood T. Bailey
  ----------------------------------------------------------------------------------------------------------------------------------
  DSN     DIS DATE  POC   SAC    EQN             MEI   SDT DATE  SPEC RCD  PRI  BDGT CODE   STA  EST COST       OBLG/ACT      MTC  CORR DATE  TO REF
  ======================================================================================================================================================
  G104R   02/01/00  MSJH  MNT10      -     -     0105  10/01/05  02/01/00  04   06-03-B-00  01   $125000.00     $0.00         SP     /  /                   
          DESCRIPTION:
          ROS PHASE IV SUPPORT (FY06)         Issue purchase orders in support of   
          Reduced Operating Status (ROS) operations.  Costs shown are ABOVE or IN   
          LIEU OF those costs which ARE currently included as part of the Ship      
          Manager contract and/or Outport contract.  See Note 1 and Reference.      
                                                                                    
          A. Vessel Support Services...................$ 10,000                     
          B. Security/Guard Service....................$      0                     
             Note: If shared by more than one vessel, divide                        
                   amongst vessels.                                                 
          C. Material Handling.........................$  6,000                     
          D. Warehousing/Storage.......................$  6,000                     
          E. Crew Support..............................$  2,000                     
             (Medical/Travel/Training)                                              
          F. Overtime..................................$  8,000                     
          G. Consummables (Deck/Engine)................$  7,000                     
             Note: Replacement of consumable supplies currently                     
                   listed on vessels outfitting inventory; i.e.,                    
                   flashlights, wrenches, dinnerware, glassware,                    
                   charts, publications, etc.                                       
          H. Phase IV Emerging Repairs (See Note 2)....$ 10,000                     
             Note: To correct minor deficiencies found during                       
                   routine tests/inspections.                                       
          I. Phase IV Supplies Included w/Spare Parts..$ 26,500                     
             (Lubricants, greases, rags, etc.)                                      
          J. Containment Boom Servicing/Maintenance....$  3,500                     
                                                                                    
          Notes: (1) This DSN supplants the former ROS Crew Incidentials            
                 and Pphase IV Emerging Repairs standard DSNs.                      
                                                                                    
                 (2) MARAD HQ shall be notified of any urgent need for              
                 additional funds for emergent repairs when the                     
                 amount within this line item is insufficient to cover              
                 the requirement.                                                   
                                                                                    
   Rpt Date                                 MAINTENANCE AND REPAIR TRACKING SYSTEM 02.02.05.01                           PAGE:  7
  02/25/04                                           DEFICIENCIES REPORT - DETAILED
                                                        Special - User Selected
  ----------------------------------------------------------------------------------------------------------------------------------
  Vessel..: Cape Diamond                                      C-Rating: C2 - Deficiencies CORRECTABLE Within R-Status
  Location: O-CHA - Charleston, SC                            R-Status: 5/ROS - 5 Day (Outported)(9-men ROS Crew)
  Region..: SAR - South Atlantic Region                       Surveyor: WYW - Wai Y. Wong
  SM/GA...: MTL   - Marine Transport Lines, Inc.              COTR....: NTB - Norwood T. Bailey
  ----------------------------------------------------------------------------------------------------------------------------------
  DSN     DIS DATE  POC   SAC    EQN             MEI   SDT DATE  SPEC RCD  PRI  BDGT CODE   STA  EST COST       OBLG/ACT      MTC  CORR DATE  TO REF
  ======================================================================================================================================================
  G135R   03/23/01  MSJH  HAB00      -     -     3315  10/01/05  03/23/01  04   06-03-B-02  01   $20000.00      $0.00         SP     /  /                   
          DESCRIPTION:
          FURNITURE/HABITABILITY RENEWAL/REPAIRS                                    
                                                                                    
          Furniture/Habitability/Joiner work in Accomodation Spaces is dilapidated  
          in many areas.  Request funding to replace various                        
          damaged/deteriorated/required items as follows:                           
                                                                                    
          The below work/repairs/items are required in various spaces through the   
          vessel                                                                    
                                                              Estimate              
          - Fabricate and install new locker door        300                        
          - Replace heaters                              300                        
          - Replace cracked sink                         600                        
          - Replace missing Settee, Bunk, Desk          4500                        
          - Replace damaged bunk                        1500                        
          - Replace cracked sink                         400                        
          - Replace missing knobs on locker doors        100                        
          - Renew wasted sill under porthole             400                        
          - Renew damaged lockset                        300                        
          - Replace missing panel in head.               200                        
          - Replace missing sink, towel rack, desk,     2000                        
                            locker drawer handle.                                   
          - Renew rusted overhead panels                 500                        
          - Renew wasted sill under porthole             400                        
          - Replace missing settee                      2000                        
          - Replace missing locker handle                300                        
                                                                                    
                                                                Total 13,800        
   Rpt Date                                 MAINTENANCE AND REPAIR TRACKING SYSTEM 02.02.05.01                           PAGE:  8
  02/25/04                                           DEFICIENCIES REPORT - DETAILED
                                                        Special - User Selected
  ----------------------------------------------------------------------------------------------------------------------------------
  Vessel..: Cape Diamond                                      C-Rating: C2 - Deficiencies CORRECTABLE Within R-Status
  Location: O-CHA - Charleston, SC                            R-Status: 5/ROS - 5 Day (Outported)(9-men ROS Crew)
  Region..: SAR - South Atlantic Region                       Surveyor: WYW - Wai Y. Wong
  SM/GA...: MTL   - Marine Transport Lines, Inc.              COTR....: NTB - Norwood T. Bailey
  ----------------------------------------------------------------------------------------------------------------------------------
  DSN     DIS DATE  POC   SAC    EQN             MEI   SDT DATE  SPEC RCD  PRI  BDGT CODE   STA  EST COST       OBLG/ACT      MTC  CORR DATE  TO REF
  ======================================================================================================================================================
  G139R   03/23/01  MSJH  MNT15      -     -     0109  10/01/05  03/23/01  04   06-03-B-02  01   $200000.00     $0.00         SP     /  /                   
          DESCRIPTION:
          SUPPLEMENTAL/EMERGENT REPAIRS                                             
                                                                                    
          This Standard DSN is intended to provide a vehicle for the SOMO/SSR       
          to authorize funding of requirements (DSNs) of a supplemental/emergent    
          repair nature WITHOUT requesting a SLAP and/or without MAR-611            
          approval.                                                                 
                                                                                    
          (1) Supplemental/emergent repair requirements (DSNs) are herein defined   
          STRICTLY (limited to) as follows:                                         
                                                                                    
              (a) Supplemental - additional work, NOT OUTSIDE the scope of          
              the original requirement/DSN, necessary to complete the               
              defined original requirement; and/or                                  
                                                                                    
              (b) Emergent Repair - additional work/repairs, considered             
              NECESSARY (Mandatory/Essential) to accomplish as part of on-going     
              existing work, that CANNOT be deferred.                               
                                                                                    
          (2) Each specific requirement requiring funding from this Standard DSN    
          MUST have its own RRF-MARTS DSN.                                          
                                                                                    
          (3) This Standard DSN SHALL NOT be issued as a Task Order to the Ship     
          Manager.  The funds available within this Standard DSN shall be           
          treated as a draw account for funding requirements (DSNs) of a            
          supplemental/emergent repair nature ONLY as defined above.                
                                                                                    
              Note: For the purpose of RRF-MARTS tracking and accounting,           
                    the letters "ZZZ" shall be assigned in the Funding/TO           
                    Reference field of this Standard DSN.  The following            
                    Status codes apply to this DSN:                                 
                                                                                    
                    Status: 01/20/21/99                                             
                    MEI...: 0109                                                    
                    SAC...: MNT15                                                   
                                                                                    
          (4) Requirements (DSNs) for additional work/funding using RRF             
          funds allocated (Estimated Cost) to this Standard DSN MUST:               
                                                                                    
              (a) be approved by the Region SOMO/SSR - Status Code "26";            
              (b) be issued as a modification to the applicable Task Order          
              by ACO; and,                                                          
              (c) be assigned the Task Order number of the parent DSN; or if        
              necessary, assigned a new Task Order number.                          
                                                                                    
   Rpt Date                                 MAINTENANCE AND REPAIR TRACKING SYSTEM 02.02.05.01                           PAGE:  9
  02/25/04                                           DEFICIENCIES REPORT - DETAILED
                                                        Special - User Selected
  ----------------------------------------------------------------------------------------------------------------------------------
  Vessel..: Cape Diamond                                      C-Rating: C2 - Deficiencies CORRECTABLE Within R-Status
  Location: O-CHA - Charleston, SC                            R-Status: 5/ROS - 5 Day (Outported)(9-men ROS Crew)
  Region..: SAR - South Atlantic Region                       Surveyor: WYW - Wai Y. Wong
  SM/GA...: MTL   - Marine Transport Lines, Inc.              COTR....: NTB - Norwood T. Bailey
  ----------------------------------------------------------------------------------------------------------------------------------
  DSN     DIS DATE  POC   SAC    EQN             MEI   SDT DATE  SPEC RCD  PRI  BDGT CODE   STA  EST COST       OBLG/ACT      MTC  CORR DATE  TO REF
  ======================================================================================================================================================
          (5) Given the nature of the requirement (MUST DO); DSNs intended to be    
          funded via this Standard DSN should have as a comprehensive Description   
          and Scope of Work within the DSN - if a specification is not immediately  
          available.                                                                
                                                                                    
          (6) As DSNs are funded from this Standard DSN:                            
                                                                                    
              (a) the Oblg/Act Cost field of this Standard DSN shall be             
              incrementally increased to show the current cumulative costs          
              obligated against this Standard DSN.                                  
                                                                                    
              (b) Each DSN number, its associated Task Order and its                
              Obligated/Actual Cost shall be identified in the                      
              Reference/Comments field of this Standard DSN.                        
                                                                                    
          (7) Per the direction of MAR-611; the Estimated Cost field of this        
          Standard DSN MAY be increased by the SOMO/SSR ONLY through the            
          transfer of EXCESS funds from requirements (DSNs) ONLY when those         
          requirements (DSNs) have been corrected AND invoiced; that is, their      
          Status codes have been assigned "99".                                     
                                                                                    
          END OF RECORD (04/28/00)                                                  
                                                                                    
                                                                                    
   Rpt Date                                 MAINTENANCE AND REPAIR TRACKING SYSTEM 02.02.05.01                           PAGE: 10
  02/25/04                                           DEFICIENCIES REPORT - DETAILED
                                                        Special - User Selected
  ----------------------------------------------------------------------------------------------------------------------------------
  Vessel..: Cape Diamond                                      C-Rating: C2 - Deficiencies CORRECTABLE Within R-Status
  Location: O-CHA - Charleston, SC                            R-Status: 5/ROS - 5 Day (Outported)(9-men ROS Crew)
  Region..: SAR - South Atlantic Region                       Surveyor: WYW - Wai Y. Wong
  SM/GA...: MTL   - Marine Transport Lines, Inc.              COTR....: NTB - Norwood T. Bailey
  ----------------------------------------------------------------------------------------------------------------------------------
  DSN     DIS DATE  POC   SAC    EQN             MEI   SDT DATE  SPEC RCD  PRI  BDGT CODE   STA  EST COST       OBLG/ACT      MTC  CORR DATE  TO REF
  ======================================================================================================================================================
  G844R   12/05/96  MSJH  REG00      -     -     0701  01/01/06  12/05/96  04   06-03-A-01  01   $16230.00      $0.00         SP     /  /                   
          DESCRIPTION:
          FIVE YEAR REGULATORY SURVEYS FY06   ISSUE PURCHACE ORDERS TO CONDUCT FIVE 
          YEAR REGULATORY SURVEYS AND INSPECTIONS.                                  
          1. AMERICAN BUREAU OF SHIPPING.................  14,130                   
             A. QUADRENNIAL....................   700                               
             B. TAILSHAFT/RUDDER..WEAR DOWN....   410                               
             C. DRY DOCK UNWILD................   715                               
             D. LOAD LINE......................   565                               
             E. SAFETY CONSTRUCTION............                                     
             F. SSM..(CONTINUOUS).............. 4,540                               
             G. SSH..(CONTINUOUS).............. 7,200                               
          2. COAST GUARD................................ 2100                       
             A. BOILER/ STEAM LINE HYDRO.......    00                               
             B. CO2 PORTABLE...................  2100                               
             C. BOILER MOUNTS..................     0                               
             D. OWS IOPP.......................     0                               
             E. FIXED CO2......................     0                               
  H006A   12/12/03  MSWW  SAF10      -     -     8215  10/01/05    /  /    04   06-03-C-01  01   $8600.00       $0.00         SP     /  /                   
          DESCRIPTION:
          ANNUAL LIFERAFT INSPECTION                                                
          CONTRACTOR TO PREFORM REQUIRED INSPECTION ON THE FOUR LIFERAFTS. RAFTS ON 
          VESSEL THREE REVERE, (2) TWENTY MAN, (1) 15 MAN & ONE SWITLIK 20 MAN.     
                                                                                    
          ALL OUT OF DATE MATERIAL TO BE RENEWED, ALL TEST REQUIRED TO BE PREFORMED 
          BY CONTRACTOR AND WITNESSED BY ALL REGULATORY BODIES. RENEWED             
   Rpt Date                                 MAINTENANCE AND REPAIR TRACKING SYSTEM 02.02.05.01                           PAGE: 11
  02/25/04                                           DEFICIENCIES REPORT - DETAILED
                                                        Special - User Selected
  ----------------------------------------------------------------------------------------------------------------------------------
  Vessel..: Cape Diamond                                      C-Rating: C2 - Deficiencies CORRECTABLE Within R-Status
  Location: O-CHA - Charleston, SC                            R-Status: 5/ROS - 5 Day (Outported)(9-men ROS Crew)
  Region..: SAR - South Atlantic Region                       Surveyor: WYW - Wai Y. Wong
  SM/GA...: MTL   - Marine Transport Lines, Inc.              COTR....: NTB - Norwood T. Bailey
  ----------------------------------------------------------------------------------------------------------------------------------
  DSN     DIS DATE  POC   SAC    EQN             MEI   SDT DATE  SPEC RCD  PRI  BDGT CODE   STA  EST COST       OBLG/ACT      MTC  CORR DATE  TO REF
  ======================================================================================================================================================
  H011A   12/12/03  MSWW  HUL90      -     -     0110  10/01/05    /  /    04   06-03-C-02  01   $32000.00      $0.00         SP     /  /                   
          DESCRIPTION:
          PROTECTIVE COATINGS MAINT. AND REPAIR  Industrial Assistance or ROS       
          crewmember to perform scaling, priming and coating of failed surfaces     
          coatings on weather decks, cargo spaces, machinery spaces and             
          superstructure.                                                           
  H032R   12/08/96  MSJH  REG00      -     -     0790  07/15/06    /  /    04   06-03-A-01  01   $1800000.00    $0.00         KY     /  /                   
          DESCRIPTION:
          DRYDOCKING (RRF 5) FY 06            Prepare, issue, and award, IFB to     
          perform required drydocking services and repairs.                         
  H215C   02/01/00  MSJH  HUL60      -     -     1103  10/15/05  02/01/00  04   06-03-B-00  01   $20000.00      $0.00         SP     /  /                   
          DESCRIPTION:
          Hull Scamping/Cleaning - FY 06.       The underwater hull requires        
          cleaning. Accomplish the following: Contractor to furnish labor, materials
          and equipment to clean the underwater hull and propellors.                
  H242C   01/20/00  MSJH  SAF60      -     -     8105  10/15/05  01/24/00  04   06-03-A-01  01   $3300.00       $0.00         SP     /  /                   
          DESCRIPTION:
          ANNUAL CO2 EXTINGUISHER INSPECTION  Annual CO2 portable fire extinguisher 
          inspection is due:  Contractor to service/hydro all portable and semi     
          portable fire extinguishers.  Provide a report of all bottles tested and  
          last hydro date.                                                          
  H252C   06/05/02  SCGLR PRP60  4317-D1253-005  4317  10/01/05    /  /    04   06-03-C-00  01   $48000.00      $0.00         SP     /  /                   
          DESCRIPTION:
          STERN TUBE COMPACT SEAL RENEWAL     Overhaul stern tube seal assembly     
          while the ship in drydock.                                                
   Rpt Date                                 MAINTENANCE AND REPAIR TRACKING SYSTEM 02.02.05.01                           PAGE: 12
  02/25/04                                           DEFICIENCIES REPORT - DETAILED
                                                        Special - User Selected
  ----------------------------------------------------------------------------------------------------------------------------------
  Vessel..: Cape Diamond                                      C-Rating: C2 - Deficiencies CORRECTABLE Within R-Status
  Location: O-CHA - Charleston, SC                            R-Status: 5/ROS - 5 Day (Outported)(9-men ROS Crew)
  Region..: SAR - South Atlantic Region                       Surveyor: WYW - Wai Y. Wong
  SM/GA...: MTL   - Marine Transport Lines, Inc.              COTR....: NTB - Norwood T. Bailey
  ----------------------------------------------------------------------------------------------------------------------------------
  DSN     DIS DATE  POC   SAC    EQN             MEI   SDT DATE  SPEC RCD  PRI  BDGT CODE   STA  EST COST       OBLG/ACT      MTC  CORR DATE  TO REF
  ======================================================================================================================================================
  M081T   02/25/97  SMS   MRG50  ABS -REPRS-     4460  07/01/06  02/25/97  04   06-03-B-02  01   $42000.00      $0.00         KY     /  /                   
          DESCRIPTION:
          OVERHAUL OF THE BOW THRUSTER                                              
          THE BOW THRUSTER REQUIRES COMPLETE DISASSEMBLY AND OVERHAUL. READINGS     
          TAKEN DURING THE 1996 D/D READINGS WERE AT THE MAX LIMIT.                 
                      Total of Estimated Costs...:  $ 2,922,330.00
                      Total of OBLG/ACT Costs......: 
                                                    $         0.00
                      Total Cost of Printed Items:  $ 2,922,330.00
                                 **** End of Report ****