##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended March 31, 2011
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For
the transition period from

to
 Commission file number 0-27496
 CRONOS GLOBAL INCOME FUND XVI, L.P.
  California
(State or other jurisdiction of 
incorporation or organization)
    
    94-3230380
(I.R.S. Employer
Identification No.)
 
 
 þ o
 o o
  Large accelerated filer o   
    Accelerated filer o
    Non-accelerated filer o
    Smaller reporting company þ(Do not check if a smaller reporting company)
 o þ




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##### 



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Report on Form 10-Q for the Quarterly Period
Ended March 31, 2011
 TABLE OF CONTENTS
 PAGEPART I  FINANCIAL INFORMATION
    
    
    1Item 1. Financial Statements
    
    
    1Condensed Balance Sheets  March 31, 2011 and December 31, 2010 (unaudited)
    
    
    2Condensed Statements of Operations for the three months ended March 31, 2011 and 2010 (unaudited)
    
    
    3Condensed Statements of Cash Flows for the three months ended March 31, 2011 and 2010 (unaudited)
    
    
    4Notes to Condensed Financial Statements (unaudited)
    
    
    5Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    11Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    16Item 4. Controls and Procedures
    
    
    16PART II  OTHER INFORMATION
    
    
    17Item 1. Legal Proceedings
    
    
    17Item 1A. Risk Factors
    
    
    17Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    17Item 3. Defaults Upon Senior Securities
    
    
    17Item 4. [Removed and Reserved]
    
    
    17Item 5. Other Information
    
    
    17Item 6. Exhibits
    
    
    17EX-31.1EX-31.2EX-32




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PART I  FINANCIAL INFORMATION
 
 Item 1.
    
    Financial Statements
    1




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CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Condensed Balance Sheets
 (Unaudited)
 March 31,
    
    
    December 31,2011
    
    
    2010AssetsCurrent assets:Cash
    
    $
    797,237
    
    
    $
    849,761Net lease receivables due from Leasing Agent
    
    
    249,877
    
    
    
    242,963Direct financing lease receivable, due from Leasing Agent within one
year, net
    
    
    21,314
    
    
    
    23,477Total current assets
    
    
    1,068,428
    
    
    
    1,116,201Direct financing lease receivable, due from Leasing Agent after one year, net
    
    
    41,347
    
    
    
    46,100Container rental equipment, at cost
    
    
    10,653,474
    
    
    
    10,954,532Less accumulated depreciation
    
    
    (8,481,457
    )
    
    
    (8,579,045
    )Net container rental equipment
    
    
    2,172,017
    
    
    
    2,375,487Total assets
    
    $
    3,281,792
    
    
    $
    3,537,788Partners CapitalPartners capital:General partner
    
    
    2,155
    
    
    
    4,757Limited partners
    
    
    3,279,637
    
    
    
    3,533,031Total partners capital
    
    $
    3,281,792
    
    
    $
    3,537,788
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Condensed Statements of Operations
 (Unaudited)
 Three Months EndedMarch 31,
    
    
    March 31,2011
    
    
    2010Net lease revenue from Leasing Agent
    
    $
    234,407
    
    
    $
    173,281Other operating (expenses) income:Depreciation
    
    
    (156,780
    )
    
    
    (197,202
    )Other general and administrative
expenses
    
    
    (43,936
    )
    
    
    (39,495
    )Net gain on disposal of equipment
    
    
    91,591
    
    
    
    107,428(109,125
    )
    
    
    (129,269
    )Net income
    
    $
    125,282
    
    
    $
    44,012Allocation of net income:General partner
    
    $
    5,421
    
    
    $
    11,965Limited partners
    
    
    119,861
    
    
    
    32,047$
    125,282
    
    
    $
    44,012Limited partners per unit share of
net income
    
    $
    0.07
    
    
    $
    0.02
  3




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CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Condensed Statements of Cash Flows
 (Unaudited)
 Three Months EndedMarch 31,
    
    
    March 31,2011
    
    
    2010Net cash provided by operating activities
    
    $
    181,203
    
    
    $
    113,180Cash flows from investing activities:Proceeds from sale of container rental
equipment
    
    
    147,551
    
    
    
    298,851Cash flows from financing activities:Distributions to general partner
    
    
    (8,023
    )
    
    
    (12,704
    )Distributions to limited partners
    
    
    (373,255
    )
    
    
    (499,896
    )Net cash used in financing activities
    
    
    (381,278
    )
    
    
    (512,600
    )Net decrease in cash
    
    
    (52,524
    )
    
    
    (100,569
    )Cash at the beginning of the period
    
    
    849,761
    
    
    
    650,666Cash at the end of the period
    
    $
    797,237
    
    
    $
    550,097
  4




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CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Notes to Unaudited Condensed Financial Statements
 (1)
    
    Summary of Significant Accounting Policies
 (a)
    
    Nature of Operations
 Cronos Global Income Fund XVI, L.P. (the Partnership) is a limited partnership that was
organized under the laws of the State of California on September 1, 1995, for the purpose
of owning and leasing dry and specialized marine cargo containers to ocean carriers. The
Partnership commenced operations on March 29, 1996, when the minimum subscription proceeds
of $2,000,000 were received from over 100 subscribers (excluding from such count,
Pennsylvania residents, Cronos Capital Corp. (CCC), the general partner, and all
affiliates of CCC). On February 3, 1997, CCC suspended the offer and sale of units in the
Partnership. The offering terminated on December 27, 1997, at which time 1,599,667 limited
partnership units had been sold.CCC and its affiliate, Cronos Containers Limited (the Leasing Agent), manage the business
of the Partnership. CCC and the Leasing Agent also manage the container leasing business
for other partnerships affiliated with CCC.In April 2011, the Partnership commenced its 16th year of operations. The Partnership is
continuing its liquidation phase, wherein CCC focuses its attention on the retirement of
the remaining equipment in the Partnerships container fleet. At March 31, 2011,
approximately 47% of the original equipment remained in the Partnerships fleet. CCC will
take several factors into consideration when examining options for the timing of the
disposal of the containers. These factors include the level of gross lease revenue
generated by the diminishing fleet, the level of costs relative to this revenue, projected
disposal proceeds on the disposition of the Partnerships containers, overall market
conditions and any foreseeable changes in other general and administrative expenses.
During the first half of 2011, CCC may distribute a request for proposal (RFP) to
prospective third-party container buyers. A RFP would seek to determine any interest such
parties may have in purchasing the remaining containers owned by the Partnership. CCC will
not make a decision relating to the final liquidation of the Partnership until any such
proposals have been received and fully evaluated. If a decision is made to liquidate the
Partnership, the distribution of cash from operations or sales proceeds may be suspended
while the liquidation of the remaining containers in the fleet is evaluated. This is to
ensure that sufficient cash reserves will be available for expenses relating to the final
liquidation and subsequent dissolution of the Partnership. CCC would make one or more
liquidating distributions to the Limited Partners on or before the termination of the
Partnership, or reinstate the monthly cash distributions should no decision be made to
liquidate the fleet in 2011.The Partnerships operations are subject to economic, political and business risks
inherent in a business environment. The Partnership believes that the profitability of,
and risks associated with, leases to foreign customers are generally the same as those to
domestic customers. The Partnerships leases generally require all payments to be made in
United States dollars.
 (b)
    
    Leasing Agent
 The Partnership and the Leasing Agent have entered into an agreement (the Leasing Agent
Agreement) whereby the Leasing Agent manages the leasing operations for all equipment
owned by the Partnership. In addition to responsibility for leasing and re-leasing the
equipment to ocean carriers, the Leasing Agent disposes of the containers at the end of
their useful economic life and has full discretion over which ocean carriers and suppliers
of goods and services it may deal with. The Leasing Agent Agreement permits the Leasing
Agent to use the containers owned by the Partnership, together with other containers owned
or managed by the Leasing Agent and its affiliates, as part of a single fleet operated
without regard to ownership. The Leasing Agent Agreement generally provides that the
Leasing Agent will make payments to the Partnership based upon rentals
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 (1)
    
    Summary of Significant Accounting Policies (continued)
 (b)
    
    Leasing Agent (continued)
 collected from ocean carriers after deducting direct operating expenses and management fees
due both to CCC and the Leasing Agent.The Leasing Agent leases containers to ocean carriers, generally under operating leases
which are either master leases or term leases (mostly one to seven years) and periodically
under direct financing leases.Master leases do not specify the exact number of containers to be leased or the term that
each container will remain on hire but allow the ocean carrier to pick up and drop off
containers at various locations. Rentals are charged and recognized based upon the number
of containers used and the applicable per-diem rate. Accordingly, rentals under master
leases are variable and contingent upon the number of containers used.Term leases are for a fixed quantity of containers for a fixed period of time, typically
varying from three to seven years. In most cases, containers cannot be returned prior to
the expiration of the lease. Term lease agreements may contain early termination penalties
that apply in the event of early redelivery. Term leases provide greater revenue stability
to the lessor, usually at lower lease rates than master leases. Ocean carriers use term
leases to lower their operating costs when they have a need for an identified number of
containers for a specified term. Rentals under term leases are charged and recognized
based upon the number of containers leased, the applicable per-diem rate and the length of
the lease, irrespective of the number of days which the customer actually uses the
containers.Direct financing leases are long-term in nature, usually ranging from three to seven years,
and require relatively low levels of customer service. They ordinarily require fixed
payments over a defined period and provide customers with an option to purchase the subject
containers at the end of the lease term. Per-diem rates include an element of repayment of
capital and therefore are usually higher than rates charged under either term or master
leases.(c)
    
    Basis of PresentationThe accompanying unaudited condensed financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of America
(US GAAP) for interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by US GAAP for annual financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals) considered necessary
for a fair presentation have been included. Operating results for the interim period are
not necessarily indicative of the results that may be expected for the fiscal year ending
December 31, 2011. For further information, refer to the financial statements and
footnotes thereto included in the Partnerships Annual Report on Form 10-K for the year
ended December 31, 2010 filed with the Securities and Exchange Commission (SEC).(d)
    
    Use of Estimates in Interim Financial StatementsThe preparation of interim financial statements, in conformity with US GAAP and SEC
regulations for interim reporting, requires the Partnership to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 (1)
    
    Summary of Significant Accounting Policies (continued)
 (d)
    
    Use of Estimates in Interim Financial Statements (continued)reported period. The most significant
estimates are those relating to the carrying value of equipment, including estimates relating to depreciable
lives and residual values, and those relating to the allowance for doubtful accounts.
Actual results could differ from those estimates.(e)
    
    Container Rental EquipmentContainer rental equipment is depreciated over a 15-year life using the straight-line basis
to its residual value of 10% of original equipment cost. The Partnership and CCC evaluate
the period of depreciation and residual values to determine whether subsequent events and
circumstances warrant revised estimates of useful lives.Container rental equipment is considered to be impaired if the carrying value of the asset
exceeds the expected future cash flows from related operations (undiscounted and without
interest charges). If impairment is deemed to exist, the assets are written down to fair
value. An analysis projecting future cash flows from container rental equipment operations
is prepared when indicators, such as material changes in market conditions, are present.
Indicators of a potential impairment include a sustained decrease in utilization or
operating profitability, or indications of technological obsolescence. The primary
variables utilized by the analysis are current and projected utilization rates, per-diem
rental rates, direct operating expenses, fleet size, container disposal proceeds and the
timing of container disposals. Additionally, the Partnership evaluates future cash flows
and potential impairment for its entire fleet rather than for each container type or
individual container. As a result, future losses could result for individual container
dispositions due to various factors, including age, condition, suitability for continued
leasing, as well as the geographical location of containers when disposed. There were no
impairment charges recorded against the carrying value of container rental equipment for
the three-month period ended March 31, 2011 and 2010.(f)
    
    Allocation of Net Income or Loss, Partnership Distributions and Partners CapitalNet income or loss has been allocated between the general and limited partners in
accordance with the Partnership Agreement. The Partnership Agreement generally provides
that CCC shall at all times maintain at least a 1% interest in each item of income or loss,
including the gain arising from the sale of containers. The Partnership Agreement further
provides that the gain arising from the sale of containers be allocated first to the
partners with capital account deficit balances in an amount sufficient to eliminate any
deficit capital account balance. Thereafter, the Partnerships gains arising from the sale
of containers are allocated to the partners in accordance with their share of sale proceeds
distributed. The Partnership Agreement also provides for income (excluding the gain
arising from the sale of containers) for any period be allocated to CCC in an amount equal
to that portion of CCCs distributions in excess of 1% of the total distributions made to
both CCC and the limited partners of the Partnership for such period, as well as other
allocation adjustments.Actual cash distributions differ from the allocations of net income or loss between the
general and limited partners as presented in these financial statements. Partnership
distributions are paid to the partners (general and limited) from distributable cash from
operations, allocated 95% to the limited partners and 5% to CCC. Distributions of sales
proceeds are allocated 99% to the limited partners and 1% to CCC. The allocations remain
in effect until such time as the limited partners have received from the Partnership
aggregate distributions in an amount equal to their capital contributions plus an 8%
cumulative, compounded (daily), annual return on their adjusted capital contributions.
Thereafter, all Partnership distributions will be allocated 85% to the limited partners and
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 (1)
    
    Summary of Significant Accounting Policies (continued)
 (f)
    
    Allocation of Net Income or Loss, Partnership Distributions and Partners Capital
(continued)15% to CCC. Cash distributions from operations to CCC in excess of 5% of distributable
cash will be considered an incentive fee and will be recorded as compensation to CCC, with the
remaining distributions from operations charged to partners capital.Upon dissolution, the assets of the Partnership will be sold and the proceeds thereof
distributed as follows: (i) all of the Partnerships debts and liabilities to persons other
than CCC or the limited partners shall be paid and discharged; (ii) all of the
Partnerships debts and liabilities to CCC and the limited partners shall be paid and
discharged; and (iii) the balance of such proceeds shall be distributed to CCC and the
limited partners in accordance with the positive balances of CCC and the limited partners
capital accounts. CCC shall contribute to the Partnership, if necessary, an amount equal
to the lesser of the deficit balance in its capital account at the time of such
liquidation, or 1.01% of the excess of the Limited Partners capital contributions to the
Partnership over the capital contributions previously made to the Partnership by CCC, after
giving effect to the allocation of income or loss arising from the liquidation of the
Partnerships assets.
 (2)
    
    Net Lease Receivables Due from Leasing Agent
 Net lease receivables due from Leasing Agent at March 31, 2011 and December 31, 2010
comprised:
 March 31,
    
    
    December 31,2011
    
    
    2010Gross lease receivables
    
    $
    356,869
    
    
    $
    367,051Less:Direct operating expenses payable
    
    
    64,210
    
    
    
    77,823Base management fees payable
    
    
    17,080
    
    
    
    18,309Reimbursable administrative expenses payable
    
    
    4,786
    
    
    
    5,072Allowance for doubtful accounts
    
    
    20,916
    
    
    
    22,884Net lease receivables due from Leasing Agent
    
    $
    249,877
    
    
    $
    242,963
 Included within the amount of gross lease receivables are $79,340 and $44,997 in respect of
amounts owed by the Leasing Agent in relation to disposal related invoices at March 31, 2011
and December 31, 2010, respectively.
 At March 31, 2011 and December 31, 2010, respectively, amounts of $1,397 and $2,001 were
recorded as doubtful debt expense. In addition, $570 and $201 were written-off in the three
months ended March 31, 2011 and 2010, respectively.
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 (3)
    
    Net Lease Revenue
 Net lease revenue for the three-month period ended March 31, 2011 and 2010 comprised:
 Three Months EndedMarch 31,
    
    
    March 31,2011
    
    
    2010Gross lease revenue
    
    $
    286,692
    
    
    $
    307,678Interest income from direct financing lease
    
    
    6,776
    
    
    
    8,758Less:Direct operating expenses
    
    
    23,087
    
    
    
    102,260Base management fees
    
    
    20,600
    
    
    
    21,252Reimbursable administrative expensesSalaries
    
    
    10,184
    
    
    
    14,450Other payroll related expenses
    
    
    2,413
    
    
    
    1,913General and administrative expenses
    
    
    2,777
    
    
    
    3,28059,061
    
    
    
    143,155Net lease revenue
    
    $
    234,407
    
    
    $
    173,281
 (4)
    
    Operating Segment
 An operating segment is a component of an enterprise that engages in business activities from
which it may earn revenues and incur expenses, whose operating results are regularly reviewed
by the enterprises chief operating decision maker to make decisions about resources to be
allocated to the segment and to assess its performance, and about which separate financial
information is available. CCC and the Leasing Agent operate the Partnerships container fleet
as a homogenous unit and have determined that as such, it has a single reportable operating
segment.
 A summary of gross lease revenue earned by each Partnership container type for the periods
ended March 31, 2011 and 2010 follows:
 Three Months EndedMarch 31,
    
    
    March 31,2011
    
    
    2010Dry cargo containers
    
    $
    240,465
    
    
    $
    238,690Refrigerated containers
    
    
    16,142
    
    
    
    29,904Tank containers
    
    
    30,085
    
    
    
    39,084Total
    
    $
    286,692
    
    
    $
    307,678
 Due to the Partnerships lack of information regarding the physical location of its fleet
of containers when on lease in the global shipping trade, the Partnership believes that it does
not possess discernible geographic reporting segments.
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 (5)
    
    Limited Partners Capital
 Cash distributions made to the limited partners for the three-month period ended March 31, 2011
and 2010 were as follows:
 Three Months EndedMarch 31,
    
    
    March 31,2011
    
    
    2010Cash Distributions from Operations
    
    $
    99,978
    
    
    $
    179,962Cash Distributions from Sales Proceeds
    
    
    273,277
    
    
    
    319,934Total Cash Distributions
    
    $
    373,255
    
    
    $
    499,896
 These distributions are used in determining Adjusted Capital Contributions as defined by the
Partnership Agreement.
 The limited partners per unit share of capital at March 31, 2011 and December 31, 2010, was
$2.05 and $2.21, respectively. This is calculated by dividing the limited partners capital at
the end of March 31, 2011, and December 31, 2010, by 1,599,667, the total number of outstanding
limited partnership units.
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Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of
Operations
  Results of Operations
 Partnership Overview
   
    
    Activity-related expenses, including agent costs and depot costs such as repairs,
maintenance and handling;
 
    
    Inventory-related expenses for off-hire containers, comprising storage and
repositioning costs. These costs are sensitive to the quantity of off-hire containers
as well as the frequency at which containers are re-delivered and the frequency and size
of repositioning moves undertaken; and
 
    
    Legal and other expenses, including legal costs related to the recovery of containers
and doubtful accounts, insurance and provisions for doubtful accounts.
  Dry Cargo
    
    Refrigerated
    
    TankContainers
    
    Containers
    
    Containers
    
    TotalContainer on lease:Master lease
    
    
    4,018
    
    
    
    33
    
    
    
    13
    
    
    
    4,064Term leaseShort term1
    
    
    636
    
    
    
    3
    
    
    
    17
    
    
    
    656Long term2
    
    
    757
    
    
    
    12
    
    
    
    8
    
    
    
    7771,393
    
    
    
    15
    
    
    
    25
    
    
    
    1,433Subtotal
    
    
    5,411
    
    
    
    48
    
    
    
    38
    
    
    
    5,497Containers off-hire
    
    
    98
    
    
    
    2
    
    
    
    4
    
    
    
    104Total container fleet
    
    
    5,509
    
    
    
    50
    
    
    
    42
    
    
    
    5,601
 
 1.
    
    Short term leases represent term leases that are either scheduled for renegotiation or
that may expire on or before March 2012.2.
    
    Long term leases represent term leases that will expire after March 2012. 11




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Dry Cargo
    
    RefrigeratedContainers
    
    Containers
    
    Tank Containers
    
    TotalTEU
    
    %
    
    TEU
    
    %
    
    TEU
    
    %
    
    TEU
    
    %Total purchases
    
    
    11,053
    
    
    
    100
    %
    
    
    690
    
    
    
    100
    %
    
    
    52
    
    
    
    100
    %
    
    
    11,795
    
    
    
    100
    %Less disposals
    
    
    5,544
    
    
    
    50
    %
    
    
    640
    
    
    
    93
    %
    
    
    10
    
    
    
    19
    %
    
    
    6,194
    
    
    
    53
    %Remaining fleet at
March 31, 2011
    
    
    5,509
    
    
    
    50
    %
    
    
    50
    
    
    
    7
    %
    
    
    42
    
    
    
    81
    %
    
    
    5,601
    
    
    
    47
    %
 Market & Industry Overview
     Three Months EndedMarch 31,
    
    March 31,2011
    
    2010Average fleet size (measured in
TEUs)Dry cargo containers
    
    
    5,547
    
    
    
    6,333Refrigerated containers
    
    
    52
    
    
    
    93Tank containers
    
    
    42
    
    
    
    50Utilization rates for combined fleetAverage for the period
    
    
    97
    %
    
    
    82
    %At end of period
    
    
    98
    %
    
    
    86
    %
 12




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Three Months Ended March 31, 2011 Compared to the Three Months Ended March 31, 2010
 Overview
 Net income
 §
    
    The Partnership experienced stronger market conditions for leased containers;
 §
    
    Depreciation expense was lower than in the prior year, as the Partnership continued
to sell equipment that had reached the end of its useful economic life for maritime
leasing; and partially offset by
 §
    
    The decrease in level of gains recorded on equipment
disposals.
 Analysis and discussion
 Net lease revenue
 §
    
    a $79,173, or 77%, decline in direct operating expenses as a result of the increase
in utilization and corresponding decline in inventories of off-hire equipment, which
resulted in a reduction in both activity-related and inventory-related expenses,
partially offset by
 §
    
    a $20,986, or 7% reduction in gross lease revenue (a component of net lease
revenue), that was attributable to the reduction in the Partnerships fleet size.
  Depreciation expense
 Other general and administrative expenses
 Net gain on disposal of equipment
 Liquidity and Capital Resources
   13




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Cash from Operating Activities:
 Cash from Investing Activities:
 Cash from Financing Activities
 14




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Critical Accounting Policies
  
    
    Container equipment  depreciable lives and residual values.
 
    
    Container equipment  recoverability and valuation.
 
    
    Allowance for doubtful accounts.
  Inflation
  15




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Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk
 Exchange rate risk
 Credit risk:
 
 Item 4.
    
    Controls and Procedures
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PART II  OTHER INFORMATION
 
 Item 1.
    
    Legal Proceedings
 Not applicable.
 
 Item 1A.
    
    Risk Factors
 There are no material changes from the risk factors as disclosed under Item 1A of Part I in
the Partnerships December 31, 2010 Annual Report on Form 10-K.
 
 Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
 Not applicable.
 
 Item 3.
    
    Defaults Upon Senior Securities
 Not applicable.
 
 Item 4.
    
    [Removed and Reserved]
 
 Item 5.
    
    Other Information
 Not applicable.
 
 Item 6.
    
    Exhibits
 (a)
    
    Exhibits
 ExhibitNo.
    
    Description
    
    Method of Filing3(a)
    
    Limited Partnership Agreement, amended
and restated as of December 28, 1995
    
    *3(b)
    
    Certificate of Limited Partnership
    
    **10
    
    Form of Leasing Agent Agreement with
Cronos Containers Limited
    
    ***31.1
    
    Rule 13a-14 Certification
    
    Filed with this document31.2
    
    Rule 13a-14 Certification
    
    Filed with this document32
    
    Section 1350 Certification
    
    Filed with this document ****
 
 *
    
    Incorporated by reference to Exhibit A to the Prospectus of the Partnership dated December
28, 1995, included as part of Registration Statement on Form S-1 (No. 33-98290)**
    
    Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 (No.
33-98290)***
    
    Incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-1 (No.
33-98290)****
    
    This certification, required by Section 906 of the Sarbanes-Oxley Act of 2002, other than as
required by Section 906, is not to be deemed filed with the Commission or subject to the
rules and regulations promulgated by the Commission under the Securities Exchange Act of 1934,
as amended, or to the liabilities of Section 18 of said Act. 17




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##### Table of Contents



SIGNATURES
  CRONOS GLOBAL INCOME FUND XVI, L.P.By
    Cronos Capital Corp.The General PartnerBy
    /s/ Peter J. YoungerPeter J. YoungerPresident and Chief Executive Officer of Cronos
Capital Corp. (CCC)


Principal Executive Officer of CCCBy
    /s/ Frank P. VaughanFrank P. VaughanChief Financial Officer and
Director of Cronos Capital Corp. (CCC)

Principal Financial and Accounting Officer of CCC  18




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##### Table of Contents



EXHIBIT INDEX
 ExhibitNo.
    
    Description
    
    Method of Filing3(a)
    
    Limited Partnership Agreement, amended
and restated as of December 28, 1995
    
    *3(b)
    
    Certificate of Limited Partnership
    
    **10
    
    Form of Leasing Agent Agreement with
Cronos Containers Limited
    
    ***31.1
    
    Rule 13a-14 Certification
    
    Filed with this document31.2
    
    Rule 13a-14 Certification
    
    Filed with this document32
    
    Section 1350 Certification
    
    Filed with this document ****
 
 *
    
    Incorporated by reference to Exhibit A to the Prospectus of the Partnership dated December
28, 1995, included as part of Registration Statement on Form S-1 (No. 33-98290)**
    
    Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 (No.
33-98290)***
    
    Incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-1 (No.
33-98290)****
    
    This certification, required by Section 906 of the Sarbanes-Oxley Act of 2002, other than as
required by Section 906, is not deemed to be filed with the Commission or subject to the
rules and regulations promulgated by the Commission under the Securities Exchange Act of 1934,
as amended, or to the liabilities of Section 18 of said Act.