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the requirements of new construction and the less important of the coastwise ships. The Central Docking Committee continues to fill a useful part in the allocation of drydock accommodation, to ensure the best use of all available facilities. Mute evidence of the world-wide shortage of steel is afforded by the " Wanganella," which, since her salvage from Barret Reef, Wellington, has been idle for twelve months awaiting the new steel plates and sections from the United Kingdom, by which alone the ship can be restored to usefulness. The " Wanganella " was dry-docked at Wellington in January, 1948, for permanent repairs, and it is anticipated that she should be fit to resume in the trans-Tasman service towards the latter part of this year. The local shipbuilding industry continues to provide a flow of well-built small ships of various classes for the Dominion's harbour and off-shore services. Principal of these ships is a 134 ft. steel ferry motor-vessel under construction at Auckland for a harbour ferry company. She will be propelled by two Diesel engines having a total output of 900 b.h.p. The hull is of all-welded construction embodying methods of fabrication developed in the wartime ship-building programme. The hull of m.v. " Coromel" has been completed at Auckland and towed to Coromandel for completion. This is an all-welded steel hull 90 ft. in length, on which a superstructure will be built of teak, mahogany, and deal salvaged from the former veteran cruiser H.M.N.Z.S. " Philomel." The " Coromel" will be engaged in the Auckland-Coromandel passenger and cargo service. The Bluff-Stewart Island ferry steamer " Wairua" has been converted at Port Chalmers from steam to Diesel propulsion and the opportunity taken to modernize and extend the accommodation for both passengers and crew, including the provision of a hospital for the transport of cot cases of sickness from Stewart Island to the mainland. The speed of " Wairua " has been increased, with a consequential important reduction in the average time of crossing of Foveaux Strait, particularly in bad weather. The two sets of Diesel engines, each of 320 b.h.p., which have been installed, together with auxiliary machinery, are surplus war material and are proving satisfactory. There has been forged, by the modernization of " Wairua," a more satisfactory link between Stewart Island and the mainland. Indigenous timbers, and particularly kauri, for shipbuilding and ship-repairing are still in extremely short supply, and permits for the use of first-class kauri, in particular, are not granted by the Timber Controller except upon the recommendation of the Marine Department. As the total demand for first-class shipbuilding kauri so much exceeds the present and prospective supply, the Department has had no option but to recommend timber permits only for the construction of new vessels and the repair of old vessels intended for or engaged upon essential services. An important contribution to the Dominion's transportation system is afforded by the many motor-launches carrying passengers and cargo in the sheltered waters along the coasts and on the lakes of New Zealand. The marine petrol-engine hitherto widely used in these vessels is rapidly giving place to the high-speed, light-weight-Diesel engine, mainly by reason of the superiority of the Diesel engine in fuel costs. The low fuel costs of the marine Diesel engine are radically affecting the powering of motor-launches, for, whereas the very high cost of petrol compelled the use of lowpower petrol-engines, owners, now not restricted by high petrol costs, are installing Diesel engines developing from two to four times as much power as the displaced petrolengines. In an extreme case a new engine of 122 b.h.p. was installed to replace an original engine of 10 b.h.p. The general benefit of increased power will be enhanced safety, by the provision of a reserve of power whereby shelter can be gained more quickly. At the same time, there is no doubt that some vessels recently re-engined have been over-powered, and ■only a relatively small increase of speed has been achieved for a heavy increase in capital and maintenance charges.

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