##### 



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, 2006
 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.)
 One Front Street, Suite 925,
San Francisco, California
(Address of principal executive offices)
    
    94111
(Zip Code)
 
 þ o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer þ
 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, 2006
 TABLE OF CONTENTS
 PAGEPART I  FINANCIAL INFORMATION
    
    
    3Item 1. Financial Statements
    
    
    3Condensed Balance Sheets  March 31, 2006 and December 31, 2005 (unaudited)
    
    
    4Condensed Statements of Operations for the three months ended March 31, 2006 and 2005 (unaudited)
    
    
    5Condensed Statements of Cash Flows for the three months ended March 31, 2006 and 2005 (unaudited)
    
    
    6Notes to Condensed Financial Statements (unaudited)
    
    
    7Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    13Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    18Item 4. Controls and Procedures
    
    
    18PART II  OTHER INFORMATION
    
    
    19Item 1. Legal Proceedings
    
    
    19Item 1A. Risk Factors
    
    
    19Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    19Item 3. Defaults Upon Senior Securities
    
    
    19Item 4. Submissions of Matters to a Vote of Securities Holders
    
    
    19Item 5. Other Information
    
    
    19Item 6. Exhibits
    
    
    19
 2




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##### 



PART I  FINANCIAL INFORMATION
 
 Financial Statements
   3




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##### 



CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Condensed Balance Sheets
 (Unaudited)
 March 31,
    
    
    December 31,2006
    
    
    2005AssetsCurrent assets:Cash and cash equivalents, includes $1,060,243 at March 31, 2006 and
$1,033,262 at December 31, 2005 in interest-bearing accounts
    
    $
    1,075,243
    
    
    $
    1,048,262Net lease and other receivables due from Leasing Company
    
    
    243,708
    
    
    
    360,227Total current assets
    
    
    1,318,951
    
    
    
    1,408,489Container rental equipment, at cost
    
    
    28,762,166
    
    
    
    29,463,629Less accumulated depreciation
    
    
    (15,716,136
    )
    
    
    (15,671,131
    )Net container rental equipment
    
    
    13,046,030
    
    
    
    13,792,498Container equipment held for sale
    
    
    68,600
    
    
    
    71,400Total assets
    
    $
    14,433,581
    
    
    $
    15,272,387Partners capitalPartners capital (deficit):General partner
    
    $
    (14,324
    )
    
    $
    (5,678
    )Limited partners
    
    
    14,447,905
    
    
    
    15,278,065Total partners capital
    
    $
    14,433,581
    
    
    $
    15,272,387
  4




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##### 



CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Condensed Statements of Operations
 (Unaudited)
 Three Months EndedMarch 31,
    
    
    March 31,2006
    
    
    2005Net lease revenue
    
    $
    567,934
    
    
    $
    731,726Other operating income (expenses):Depreciation
    
    
    (441,450
    )
    
    
    (471,854
    )Other general and administrative expenses
    
    
    (26,098
    )
    
    
    (18,628
    )Net (loss) gain on disposal of equipment
    
    
    (61,125
    )
    
    
    18,157(528,673
    )
    
    
    472,325Income from operations
    
    
    39,261
    
    
    
    259,401Other income:Interest income
    
    
    9,788
    
    
    
    1,841Net income
    
    $
    49,049
    
    
    $
    261,242Allocation of net income:General partner
    
    $
    26,052
    
    
    $
    45,592Limited partners
    
    
    22,997
    
    
    
    215,650$
    49,049
    
    
    $
    261,242Limited partners per unit share of net income
    
    $
    0.01
    
    
    $
    0.13
  5




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##### 



CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Condensed Statements of Cash Flows
 (Unaudited)
 Three Months EndedMarch 31,
    
    
    March 31,2006
    
    
    2005Net cash provided by operating activities
    
    $
    704,235
    
    
    $
    586,903Cash flows from investing activities:Proceeds from disposal of equipment
    
    
    210,601
    
    
    
    122,605Cash flows from financing activities:Distributions to general partner
    
    
    (34,698
    )
    
    
    (32,043
    )Distributions to limited partners
    
    
    (853,157
    )
    
    
    (646,532
    )Net cash used in financing activities
    
    
    (887,855
    )
    
    
    (678,575
    )Net increase in cash and cash equivalents
    
    
    26,981
    
    
    
    30,933Cash and cash equivalents at the beginning of the period
    
    
    1,048,262
    
    
    
    448,065Cash and cash equivalents at the end of the period
    
    $
    1,075,243
    
    
    $
    478,998
  6




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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 OperationsCronos Global Income Fund XVI, L.P. (the Partnership) is a limited partnership organized
under the laws of the State of California on September 1, 1995, for the purpose of owning
and leasing marine cargo containers, special purpose containers and container related
equipment worldwide to ocean carriers. The Partnerships operations are subject to the
fluctuations of world economic and political conditions. The Partnership believes that
the profitability of, and risks associated with, leases to foreign customers is generally
the same as those of leases to domestic customers. The Partnerships leases generally
require all payments to be made in United States currency.Cronos Capital Corp. (CCC) is the general partner and, with its affiliate Cronos
Containers Limited (the Leasing Company), manages the business of the Partnership. CCC
and the Leasing Company also manage the container leasing business for other partnerships
affiliated with CCC.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, CCC, 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. The
Partnership shall continue until December 31, 2015, unless sooner terminated upon the
occurrence of certain events.Beginning April 2006, the Partnership will commence its 11th year of operations and enter
into its liquidation phase wherein CCC will focus its attention on the retirement of the
remaining equipment in the Partnerships container fleet. At March 31, 2006, approximately
87% 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 impact of a diminishing fleet size and current
market conditions on the level of gross lease revenue, and fixed operating costs relative
to this revenue. Parallel to these considerations will be a projected increase in expenses
for devoting significant resources to the additional reporting and compliance requirements
of Section 404 of the Sarbanes Oxley Act of 2002, which addresses a range of corporate
governance, disclosure, and accounting issues. These costs may include increased
accounting and administrative expenses for additional staffing and outside professional
services by accountants and consultants. These additional costs, depending on their
materiality, may reduce the Partnerships results from operations and therefore negatively
affect future distributions to the Limited Partners.(b)
    
    Leasing Company and Leasing Agent AgreementA Leasing Agent Agreement exists between the Partnership and the Leasing Company,
whereby the Leasing Company has the responsibility to manage the leasing operations of all
equipment owned by the Partnership. Pursuant to the Agreement, the Leasing Company is
responsible for leasing, managing and re-leasing the Partnerships containers to ocean
carriers 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 Company to use
the containers owned by the Partnership, together with other containers owned or managed by
the Leasing Company and its affiliates, as part of a single fleet operated without regard
to ownership. Since the Leasing Agent Agreement meets the definition of an operating lease
in Statement of Financial Accounting Standards (SFAS) No. 13, it is accounted for as a
lease under which the Partnership is lessor and the Leasing Company is lessee.
  7




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##### 



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 (b)
    
    Leasing Company and Leasing Agent Agreement (continued)The Leasing Agent Agreement generally provides that the Leasing Company will make
payments to the Partnership based upon rentals collected from ocean carriers after
deducting direct operating expenses and management fees to CCC and the Leasing Company.
The Leasing Company leases containers to ocean carriers, generally under operating leases
which are either master leases or term leases (mostly one to five years). 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, and rentals are based upon the number of containers used and the
applicable per-diem rate. Accordingly, rentals under master leases are all variable and
contingent upon the number of containers used. Most containers are leased to ocean
carriers under master leases; leasing agreements with fixed payment terms are not material
to the financial statements. Since there are no material minimum lease rentals, no
disclosure of minimum lease rentals is provided in these financial statements.(c)
    
    Basis of AccountingThe Partnership utilizes the accrual method of accounting. Net lease revenue is
recorded by the Partnership in each period based upon its leasing agent agreement with the
Leasing Company. Net lease revenue is generally dependent upon operating lease rentals
from operating lease agreements between the Leasing Company and its various lessees, less
direct operating expenses and management fees due in respect of the containers specified in
each operating lease agreement.(d)
    
    Use of EstimatesThe financial statements are prepared in conformity with accounting principles
generally accepted in the United States of America (GAAP), which 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 reported
period. Actual results could differ from those estimates.The most significant estimates included within the financial statements are the
container rental equipment estimated useful lives and residual values, and the estimate of
future cash flows from container rental equipment operations, used to determine the
carrying value of container rental equipment in accordance with SFAS No. 144. Considerable
judgment is required in estimating future cash flows from container rental equipment
operations. Accordingly, the estimates may not be indicative of the amounts that may be
realized in future periods. As additional information becomes available in subsequent
periods, recognition of an impairment of the container rental equipment carrying values may
be necessary based upon changes in market and economic conditions.
  8




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##### 



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 (e)
    
    Container Rental EquipmentContainer rental equipment is depreciated over a 15-year life using the straight-line
basis to its salvage value, estimated to be 10% of the original equipment cost.
Depreciation policies are also evaluated to determine whether subsequent events and
circumstances warrant revised estimates of useful lives.In accordance with SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived
Assets, 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 annually, or upon material changes in market conditions. Current
and projected utilization rates, per-diem rental rates, direct operating expenses, fleet
size and container disposals are the primary variables utilized by the analysis.
Additionally, the Partnership evaluates future cash flows and potential impairment by
container type rather than for each individual container, and 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 to the carrying value of
container rental equipment for the three-month periods ended March 31, 2006 and 2005.In June 2005 the Partnership recorded an impairment charge of $37,972 related to 111
forty-foot standard off-hire dry cargo containers located in North America (the North
American Dry Containers). The impairment charge was a result of CCCs and the Leasing
Company identifying a number of issues that had an impact on their carrying value.
 
    
    The age of the North American Dry Containers.
    
    The lack of regional market demand to lease the North American Dry Containers.
    
    The cost to reposition the North American Dry Containers to high demand markets.
    
    The strong North American container sale market.
    9




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##### 



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 (f)
    
    Allocation of Net Income or Loss, Partnership Distributions and Partners Capital
AccountsNet 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 its 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
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 persons
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 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 contribution 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.(g)
    
    Financial Statement PresentationThese financial statements have been prepared without audit pursuant to the rules and
regulations of the Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in accordance with
accounting principles generally accepted in the United States of America (GAAP) have been
condensed or omitted pursuant to such rules and regulations, although the Partnership
believes that the disclosures are adequate to make the information presented not
misleading. It is suggested that these financial statements be read in conjunction with
the financial statements and accompanying notes in the Partnerships December 31, 2005
Annual Report on Form 10-K.
  10




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##### 



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 (g)
    
    Financial Statement Presentation (continued)The interim financial statements presented herewith reflect in the opinion of
management, all adjustments of a normal recurring necessary to present fairly the results
for the interim periods presented. The results of operations for such interim periods are
not necessarily indicative of the results to be expected for the full year.
 (2)
    
    Net Lease and Other Receivables Due from Leasing Company
  March 31,
    
    
    December 31,2006
    
    
    2005Gross lease and other receivables
    
    $
    750,432
    
    
    $
    809,608Less:Direct operating payables and accrued expenses
    
    
    323,022
    
    
    
    268,591Damage protection reserve
    
    
    74,841
    
    
    
    81,367Base management fees payable
    
    
    574
    
    
    
    4,212Reimbursed administrative expenses
    
    
    20,001
    
    
    
    16,585Allowance for doubtful accounts
    
    
    88,286
    
    
    
    78,626506,724
    
    
    
    449,381Net lease and other receivables
    
    $
    243,708
    
    
    $
    360,227
  11




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##### 



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 (3)
    
    Net Lease RevenueNet lease revenue is determined by deducting direct operating expenses, base management
fees and reimbursed administrative expenses to CCC and its affiliates from the rental revenue
earned by the Leasing Company under operating leases to ocean carriers for the containers owned
by the Partnership. Net lease revenue for the three-month periods ended March 31, 2006 and
2005 was as follows:
 Three Months EndedMarch 31,
    
    
    March 31,2006
    
    
    2005Rental revenue
    
    $
    907,033
    
    
    $
    1,008,941Less:Rental equipment operating expenses
    
    
    224,866
    
    
    
    152,278Base management fees
    
    
    61,963
    
    
    
    69,675Reimbursed administrative expensesSalaries
    
    
    38,298
    
    
    
    37,954Other payroll related expenses
    
    
    5,262
    
    
    
    7,418General and administrative expenses
    
    
    8,710
    
    
    
    9,890Total reimbursed administrative expenses
    
    
    52,270
    
    
    
    55,262339,099
    
    
    
    277,215Net lease revenue
    
    $
    567,934
    
    
    $
    731,726
 (4)
    
    Operating SegmentAn 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 assess its performance, and about which separate financial
information is available. Management operates the Partnerships container fleet as a
homogenous unit and have determined, that as such it has a single reportable operating segment.The Partnership derives revenues from dry cargo, refrigerated and tank containers used by its
customers in global trade routes. As of March 31, 2006, the Partnership operated 3,874
twenty-foot, 1,244 forty-foot and 1,676 forty-foot high-cube marine dry cargo containers, as
well as 83 twenty-foot and 283 forty-foot high-cube refrigerated containers, and 52 twenty-four
thousand-liter tanks. A summary of gross lease revenue earned by the Leasing Company, on
behalf of the Partnership, by product, for the three-month periods ended March 31, 2006 and
2005 follows:
 Three Months EndedMarch 31,
    
    
    March 31,2006
    
    
    2005Dry cargo containers
    
    $
    611,493
    
    
    $
    684,814Refrigerated containers
    
    
    258,018
    
    
    
    285,236Tank containers
    
    
    37,522
    
    
    
    38,891Total
    
    $
    907,033
    
    
    $
    1,008,941
   12




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##### 



Managements Discussion and Analysis of Financial Condition and Results of Operations
  Market Overview
      13




---



##### 



Results of Operations
   
    
    Activity-related expenses, including agent 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.
    
    Legal and other expenses, including legal costs related to the recovery of containers
and doubtful accounts, insurance and provisions for doubtful accounts.
 14




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##### 



Dry Cargo
    
    
    Refrigerated
    
    
    TankContainers
    
    
    Containers
    
    
    Containers40-Foot
    
    
    
    
    
    
    40-Foot20-Foot
    
    
    40-Foot
    
    
    High-Cube
    
    
    20-Foot
    
    
    High-Cube
    
    
    24,000-LiterContainers on lease:Master lease
    
    
    2,616
    
    
    
    666
    
    
    
    844
    
    
    
    51
    
    
    
    120
    
    
    
    23Term leaseShort term 1
    
    
    641
    
    
    
    350
    
    
    
    439
    
    
    
    10
    
    
    
    46
    
    
    
    12Long term 2
    
    
    239
    
    
    
    62
    
    
    
    50
    
    
    
    
    
    
    
    89
    
    
    
    9Sales-type lease
    
    
    
    
    
    
    2
    
    
    
    3
    
    
    
    3
    
    
    
    
    
    
    
    Subtotal
    
    
    3,496
    
    
    
    1,080
    
    
    
    1,336
    
    
    
    64
    
    
    
    255
    
    
    
    44Containers off lease
    
    
    378
    
    
    
    164
    
    
    
    340
    
    
    
    19
    
    
    
    28
    
    
    
    8Total container fleet
    
    
    3,874
    
    
    
    1,244
    
    
    
    1,676
    
    
    
    83
    
    
    
    283
    
    
    
    52
 
 1.
    
    Short term leases represent term leases that are either scheduled for renegotiation or that
may expire on or before March 2007.2.
    
    Long term leases represent term leases, the majority of which will expire between April 2007
and December 2010. Dry Cargo
    
    
    Refrigerated
    
    
    TankContainers
    
    
    Containers
    
    
    Containers40-Foot20-Foot
    
    
    40-Foot
    
    
    High-Cube
    
    
    20-Foot
    
    
    40-Foot
    
    
    24,000-LiterUnits
    
    
    %
    
    
    Units
    
    
    %
    
    
    Units
    
    
    %
    
    
    Units
    
    
    %
    
    
    Units
    
    
    %
    
    
    Units
    
    
    %Total purchases
    
    
    4,553
    
    
    
    100
    %
    
    
    1,500
    
    
    
    100
    %
    
    
    1,750
    
    
    
    100
    %
    
    
    90
    
    
    
    100
    %
    
    
    300
    
    
    
    100
    %
    
    
    52
    
    
    
    100
    %Less disposals
    
    
    679
    
    
    
    15
    %
    
    
    256
    
    
    
    17
    %
    
    
    74
    
    
    
    4
    %
    
    
    7
    
    
    
    8
    %
    
    
    17
    
    
    
    6
    %
    
    
    
    
    
    
    
    %Remaining fleet at
March 31, 2006
    
    
    3,874
    
    
    
    85
    %
    
    
    1,244
    
    
    
    83
    %
    
    
    1,676
    
    
    
    96
    %
    
    
    83
    
    
    
    92
    %
    
    
    283
    
    
    
    94
    %
    
    
    52
    
    
    
    100
    %
 Three Months Ended March 31, 2006 Compared to the Three Months Ended March 31, 2005
 Net lease revenue
 Three Months EndedMarch 31,
    
    March 31,2006
    
    2005Fleet size (measured in twenty-foot equivalent units (TEU))Dry cargo containers
    
    
    9,824
    
    
    
    10,657Refrigerated containers
    
    
    666
    
    
    
    686Tank containers
    
    
    52
    
    
    
    52Average utilization ratesDry cargo containers
    
    
    86
    %
    
    
    93
    %Refrigerated containers
    
    
    86
    %
    
    
    86
    %Tank containers
    
    
    90
    %
    
    
    90
    %
  15




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##### 



Depreciation expense
 Other general and administrative expenses
 Net loss on disposal of equipment
  Liquidity and Capital Resources
   16




---



##### 



Cash from Operating Activities
 Cash from Investing Activities
 Cash from Financing Activities
 Critical Accounting Policies
  
    
    Container equipment  depreciable lives
    
    Container equipment  valuation
    
    Allowance for doubtful accounts
  Inflation
  17




---



##### 



Quantitative and Qualitative Disclosures About Market Risk
 Exchange rate risk:
 
 Controls and Procedures
   18




---



##### 



PART II  OTHER INFORMATION
 
 Legal Proceedings
  
   
 Unregistered Sales of Equity Securities and Use of Proceeds
  
 Defaults Upon Senior Securities
  
 Submissions of Matters to a Vote of Securities Holders
  
 Other Information
  
 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. 19




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##### 



SIGNATURES
  CRONOS GLOBAL INCOME FUND XVI, L.P.By
    
    Cronos Capital Corp.The General PartnerBy
    
    /s/ Dennis J. Tietz

Dennis J. TietzPresident and Director ofCronos Capital Corp. (CCC)Principal Executive Officer of CCCBy
    
    /s/ John Kallas

John KallasChief Financial Officer andDirector of Cronos Capital Corp. (CCC)Principal Financial and Accounting Officer of CCC
  20




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##### 



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.