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Tags: american bureau of shipping, cal systems, classification procedure, crew training, faa certification, l bruce, leisure purposes, luxury submarines, maintenance technicians, maintenance training, manned submersible, private owner, rines, safest form of transportation, sea trials, submarine fleet, tourist submarine, tourist submarines, u s coast guard, unsurpassed safety,
Pages: 13
Language: english
Created: Tue Jan 28 13:04:59 2003
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                                                          Copyright 2003, L. Bruce Jones. All rights reserved.


    Frequently Asked Questions (FAQs) on Luxury Submarines,
           Tourist Submarines and Deep Submersibles


                                     Luxury Submarines

1. How safe is the submarine?

Last year, approximately 2 million passengers took dives aboard the world's commercial tourist
submarine fleet, generally to depths of 50-100 meters. In the 14 year operating history of the indus-
try there has never been a single serious injury or fatality to any passenger. The industry has a perfect
safety record and so, civil submarines are statistically the safest form of transportation in the world
today.

All of U.S. Submarines' vessels are classed +A1 Manned Submersible by the American Bureau of
Shipping. Like FAA certification of aircraft, the ABS classification procedure is arduous, but results
in unsurpassed safety. And, U.S. Submarines management team has experience with over 65 subma-
rines and submersibles, including all of the diesel electric civil submarines built world-wide in the
last 15 years.

2. What about crew training?

U.S. Submarines will provide crew training for the owner and/or his selected crew. Ideally, we like to
have the crew participate in the last several weeks of assembly and trials of the submarine so that
they can get intimate, hands on experience with the installation, operation and maintenance of criti-
cal systems. The crew will then have additional pilot and maintenance training during sea trials.

We can also provide experienced submarine pilots and maintenance technicians for an owner.

3. Is a license required to operate the submarine?

A private owner does not need a license to operate the submarine for leisure purposes but our in-
house training program must be satisfactorily completed by the operator. In addition, if the subma-
rine will be carrying passengers for hire in U.S. waters, then the crew must meet U.S. Coast Guard
manning requirements. This means that the Captain is required to have a U.S.C.G. Master's license
for a surface vessel of equivalent tonnage (500 tons in the case of the Seattle 1000) and will have to
complete our training course which includes 40 hours of pilot in command time and 40 dives and
surfaces and then take a U.S.C.G. examination based on our manuals. The successful applicant will
then have a submarine endorsement added to their license.

4. How comfortable is it inside the submarine? Are there any changes in
cabin pressure?

The inside of one of our luxury submarines is air conditioned and temperature controlled. Regard-
less of the operating depth of the submarine, the interior of the passenger cabin remains at surface
pressure, which is one atmosphere. As a result, there are none of the pressure induced physiological
effects experienced by SCUBA divers. A guest aboard a submarine can stay comfortably submerged
for as long as desired, and the submarine can dive or surface at any rate.


                 936 N.W. First Street, Fort Lauderdale, Florida 33311 U.S.A.
           Tel: 954/467-9028 · Fax: 954/467-9584 · E-mail: ussubs@ussubs.com
                              Website: http://www.ussubs.com
                                                         Copyright 2003, L. Bruce Jones. All rights reserved.



The interior of the submarine is very luxurious with rich fabrics, beautiful woods and replete with
the finest leathers. An owner can choose one of our interiors or work with an interior designer of
their choice.

5. How does the air stay fresh inside the sub?

The submarine has a sophisticated central air conditioning and life support system. Basically, oxygen
stored in high pressure bottles outside the pressure hull is injected into the passenger cabin in order
to maintain a level of 21% by volume. The carbon dioxide respired during breathing is scrubbed out
of the air by a special granular chemical contained in the main scrubbing system. The air is also
dehumidified and heated or cooled as necessary. The Seattle 1000 carries enough oxygen to remain
submerged for over three weeks without surfacing.


6. How flexible is the Seattle 1000 design in terms of accommodation
plans?

The original interior calls for 5 staterooms and spacious common areas. We can change the interior
accommodation to meet the owners needs and we can lengthen the pressure hull to provide more
space if necessary. We also have designs for luxury submarines that are both larger and smaller than
the Seattle 1000.

7. How deep can the submarine dive?

The Seattle 1000 is designed to dive to 305 meters, or 1000 feet. This is an optimum compromise
that allows exploration at significant depth but also allows us to have very large viewports for excep-
tional visibility. If necessary, a small deep submersible could be carried "piggy back" by the Seattle,
allowing a small group of 2-3 people to board the deep submersible through a transfer lock and dive
to depths of up to 3000 meters or more.

8. What is the difference between surface and submerged travel?

While surfaced, the submarine acts very much like a yacht, although the submarine is heavier and
has a lower profile. Cruising speed for the Seattle is approximately 14 knots, and the submarine has
transatlantic range allowing the owner to travel virtually anywhere. When the submarine is surfaced
the captain controls the vessel from inside the acrylic cabin in the superstructure or deck house.
From here, he has an excellent view and access to all the necessary instrumentation for control and
navigation, including radar, GPS, etc.

When it is time to dive the captain shuts down the diesel engines and switches to battery power. He
then goes below to the pilot's compartment located in the bow of the submarine forward of the main
lounge. From here he has an excellent view of the underwater environment through an immense
forward viewport.

9. What advantages would there be to purchasing a Seattle 1000.

The owners of the Seattle 1000 would have, if desired, international notoriety for becoming the



                                                                                                       
                                  U.S. SUBMARINES, INC.
                                                          Copyright 2003, L. Bruce Jones. All rights reserved.



owners of the world's first large personal luxury submarine. Few subjects have captured the imagi-
nation of the public like personal luxury submarines. But beyond that, the owners of a Seattle would
have the opportunity to explore areas that no human has ever seen before, from the brightness and
splendor of tropical coral reefs to the silent depths of the sea at 1000 feet, a new frontier awaits. The
sheer impact of the experience of cruising smoothly below the waves defies description.

10. What are the terms of purchase?

Initially, the owners would retain us to modify the design and develop the interior to meet their
specific requirements. Subsequently we would sign a manufacturing contract that would require a
10% initial payment followed by four 20% payments made at easily verifiable milestones in the
construction process with the final 10% on delivery. The price of the Seattle 1000 is $19.7 million.
Construction time would be 24 months.

And for the Press:

11. What type of people buy luxury submarines?

Interested buyers tend to share one trait, they are all wealthy. We group them in to three additional
categories.

The most interesting are the avid SCUBA divers and ocean aficionados who are very interested in the
subsea world and view a luxury submarine as a vehicle for exploration.

With 2300 megayachts operational around the world, some costing in excess of $150 million, the
stakes in the game of one upmanship are rising. Some yacht owners like the idea of having a larger
and more unique toy.

The luxury submarine also attracts individuals who have never owned a yacht, but are fascinated
with the idea of traveling beneath the surface of the world's oceans.

At U.S. Submarines we deal with all types of potential buyers, from wealthy Arab sheikhs, to world
leaders and hi-tech mega-millionaires. However, virtually all insist on confidentiality.

ADDENDUM
I have been following your company for years and have enjoyed receiving your literature and
recently going through the web site.
I am looking the possibility of buying a sub for personal use in a few years - similar to buying a
yacht. I am looking at living on it with my wife and entertaining business partners etc., similar to
what I might do in a yacht. The Nomad and Seattle information files on the web site are very
interesting; however, the information leads to some questions. If you have some time, I would
like to pass the questions on to you. I realize the questions may seem to be nit-picky - but I am
trying to resolve my previous surface craft and submarine experiences with the possibility of
having a personal sub built in the manner of your designs.
    1. My wife is not so sure about this idea of living on a submarine. Can you provide an
       idea about what the available space is? What the view is out the side/front
       viewports. I went through the file about the Argos (ftp://ussubs.com/consub.pdf) and
       though that is of some help - it is still a very different configuration.          
                               U.S. SUBMARINES, INC.
                                                      Copyright 2003, L. Bruce Jones. All rights reserved.



Answer: The floor plan arrangements taken in conjunction with the general dimensions of the
   submarine found in the specifications are the best method of getting an idea of the space.
   Basically, the Nomad has a pressure hull diameter that is about 8 feet (2.45m) and so it can
   best be thought of as a motor home size interior.

The Seattle has a much larger pressure hull in the central section and as a consequence there is
   sufficient space for both upper and lower decks. In this case a mid-sized yacht is a good
   analogy in terms of available space.

The view out the viewports is simply stunning. We go to great lengths to maximize the size of
   the viewports (up to 6 feet [1.8m] in diameter on the Seattle) and to place them in appropriate
   spots for convenient viewing. The viewports are also convex spherical sectors so the
   downward view is improved over the flat type. All of the viewports are composed of
   polymethyl methacrylate which is remarkably transparent and very strong under
   compressional hydrostatic load.

   2. I would want to be able to run the boat with just one of us at the controls- without a
      dedicated crew - is that feasible given the control console locations/visibility/above
      water deck configuration ­ etc? In this regard, the Nomad seems to be about the
      right size for handling, while the Seattle might be a bit much to handle with only one
      person on the controls and one on deck for lines etc.

Answer: Both the Seattle and the Nomad have very sophisticated digital proportional F-16 style
   joystick control systems that allow for pinpoint maneuvering while submerged or on the
   surface. With lateral thrusters the subs can sidle sideways or spin in their own length. When
   submerged vertical thrusters make accurate placement in the water column quite simple. The
   above deck control stations are situated so that visibility is quite good. On the Nomad, you
   can open the acrylic hatch above the pilot's compartment and pass up the remote consolette
   which allows you to walk around the main deck and maneuver the submarine. A deck plug-in
   on the Seattle is also available.

At 72 tons one person can tie up the Nomad without too much difficulty. The Seattle, at 380 tons
   displacement has fairly stout mooring lines and while one person could tie the sub up under
   normal conditions it would be a good idea to have more than one person aboard in inclement
   weather or areas of significant current. Of course, if there are any people at all on the dock
   you'll have many curious on-lookers willing to take the lines.


   3. For extended living/cruising etc. referring to the drawings in the .pdf files, the
      Nomad seems to be a bit short on space for food/ clothes/personal gear/navigation
      charts ... especially if there are guests on board - is this a true condition or is there a
      lot more storage than shown? How much more room is available in the "extended"
      Nomad?

Answer: Each of these submarines is built on a custom basis and the interior layout and storage
   reflects the mission profile and owner's lifestyle. On the Nomad there is space in the
                                                                                                       
                                                       Copyright 2003, L. Bruce Jones. All rights reserved.

   overhead and drawers under the furniture and seats as well as some closet space. People
   make month-long trans-Pacific crossings on 30 foot sail boats so with a little ingenuity the
   Nomad can hold everything you need for extended voyaging. But keep in mind that with a
   range of 1000 nautical miles you won't be offshore for weeks at a time.

The extended Nomad adds a private stateroom to the basic configuration.

   4. Comparing to other yachts and surface craft and water current speeds, both the
      Nomad and Seattle seem to be underpowered and have cruising speeds that are too
      low for any serious cruising or distance traveling. Are there options available for
      increased power plant sizes with increased surface and underwater speed
      capability? Options for additional diesel fuel tanks to extend cruising range?

Answer: Like most sailboats, tug boats, cargo ships and work boats, submarines are displacement
   craft as opposed to planing speedboats and semi-displacement vessels like crew boats or
   some yachts. Displacement vessels are limited due to wave making resistance and the
   formula for determining hull speed in knots is generally 1.3 times the square root of the
   waterline length in feet. So, in the case of a boat with a 65' waterline the hull speed would be
   10.5 knots. You can drive the vessel over hull speed and derive an extra knot or so, but above
   that the power requirements for extra speed increase exponentially.

Cruising on the surface at 10 knots in the Nomad or 14 knots in the Seattle is a reality that can't
   be changed. There is no such thing as a planing submarine speedboat as planing and semi-
   displacement hulls are comparatively lightweight with high power to weight ratios. Because
   a submarine must weigh as much as the water it displaces there is no such thing as a
   lightweight submarine.

The average port to port speed for a contemporary cruising sailboat is usually less than 4 knots. I
   myself have crossed the Pacific on a power boat at 8 knots. Serious offshore sailors
   understand the speed limitations of the environment. If you want to get there in a hurry, take
   an airplane.

An interesting thing does happen when a submarine submerges. The wave making resistance is
   eliminated and parasitic drag becomes the limiting factor. This is why most submarines have
   higher submerged burst speeds than surface speeds. However, once the submarine is
   submerged most are powered by batteries and the power consumption goes up exponentially
   with speed. So, you can go flat out submerged for one hour or you can cruise at low speed for
   days ­ you make the choice. Today there are submerged power alternatives to batteries. Other
   AIP (Air Independent Propulsion) systems used successfully in submarines include closed
   cycle diesel power and proton exchange membrane (PEM) fuel cells. A closed cycle Stirling
   option is available on both the Nomad and the Seattle to dramatically increase submerged
   speed and endurance, but it adds considerable to the price and the overall complexity of the
   submarine.

Another alternative is to fit the submarine with a streamlined induction mast so that the diesels
   can be run while the submarine is just a few feet underwater. In this condition most wave
   making resistance is eliminated and the submarine can easily exceed hull speed by a
   considerable margin. However this is an option limited to our patrol and surveillance          
                                                      Copyright 2003, L. Bruce Jones. All rights reserved.

   submarine models with highly trained crews.

Added diesel tankage is possible.

   5. Is the mechanical room accessible when submerged? The Nomad drawing appears
      to show no access. Is the only access via the shower?

Answer: The access is through a water tight door in the bulkhead behind the shower. The shower
   can be moved to another location if this is a problem.

   6. High-pressure air is available for surfacing etc. - are air fittings and filters/
      regulators etc. available to provide for SCUBA tank fills? Is low-pressure air
      available for floats/inflatable boats etc.? Are there air fittings in the above water
      cabin for divers to use the sub as a "taxi" down to a dive area? What a great way to
      explore a shallow water reef or wreck - non-divers inside monitoring, watching, and
      talking to the divers on the outside - everyone enjoying themselves.

Answer: Yes, HP fittings are available for SCUBA tank fills and low-pressure air is also
   available. External connections for a hookah rig are available as an option. With external
   divers care must be taken to carefully control the speed of ascent and descent to prevent
   equalization problems and air embolism.

In the Seattle 1000 a diver lock out/decompression chamber is available as an option allowing
    divers to exit and re-enter the submarine while submerged. A special training program is a
    requirement of sale.

   7. Are there storage areas available (perhaps in the above water cabin) for snorkeling/
      diving gear; inflatable boat for shore access where water is too shallow; shore lines;
      overside ladders/ramps for pier or water access?

Answer: Yes, there is ample storage in the superstructure. A pressure proof compartment for
   outboard storage is also available,

   8. It is not obvious in the drawings, but are there remote controls/ storage/housing
      areas for anchors and shore lines? How are they handled so as to not interfere with
      the front and side viewing portals?

Answer: There is an anchor windlass and storage system as well as a collapsible bowsprit for
   anchor deployment.

   9. An auto-nav system is referenced - does it also have controls for maintaining
      submerged course/speed and/or for positional hover accounting for currents (in case
      a bottom set down is not physically or environmentally feasible?

Answer: Yes, there is basic autopilot/autodepth system. Dynamic positioning is an option and
   also requires a Doppler sonar velocity navigation system to maintain bottom station
   regardless of current changes.
                                                                                                       
                                                      Copyright 2003, L. Bruce Jones. All rights reserved.



   10. Are the engine air intakes mounted up on the mast or on a snorkel system that
       would permit cruising with most of the sub below water level to avoid wave action in
       rough weather? Are there any "periscope" or camera video feeds from the mast to
       assist surfacing safely? Could be a big surprise if the sub came up in the path of a
       surface craft.

Answer: Semi-submerged cruising or snorkeling is not possible with a standard configuration. If
   it gets too rough, simply submerge and proceed on battery power.

There is a remote video camera on the mast. A telescoping mast with integrated video is an
   option.

Passive and active sonar systems are available and must be used prior to surfacing. Training in
   their operation is given in our mandatory owner training program.

   11. Do your designs include desalinization units for fresh water or are the subs
       dependent upon shore water?

Answer: Reverse osmosis watermakers of varying capacity are available as an option and are
   recommended.

   12. Any thought or possibility of recharging the batteries via solar power arrays on the
       upper deck - so as to provide at least a low speed propulsion in case of loss/over
       consumption of diesel fuel?

Answer: With both a large battery bank and a substantive quantity of diesel fuel there is plenty of
   power management and "get home" capability. The small battery charging capability of a
   solar array wouldn't be sufficient to make much difference in motive power of the
   submarine.

   13. Is the sonar installation - upward looking as well as downward/ forward looking?

Answer: The optional high resolution color imaging sonar is trainable in up, down and forward
   directions.

   14. Are there any provisions for radio transmission/reception while submerged? Any
       pop-up radio buoys in case of emergencies while submerged?

Answer: Radio waves do not propagate underwater. All of our submarines are equipped with
   dual frequency underwater telephones with emergency pinger/locators. A radio and/or
   satellite antenna-equipped surface buoy with retractable cable and hydraulic level-wind is an
   option.




                                                                                                       
                                                        Copyright 2003, L. Bruce Jones. All rights reserved.



                                    Deep Submersibles

We will use the terms manned submersible and deep submersible interchangeably. "Manned
submersible" has recently been determined to be politically incorrect with the suggested substitute
being "human occupied submersible vehicle". We'll use "deep submersible" for the sake of sim-
plicity.

Where are deep submersibles used today?

Deep submersibles are used primarily in the area of marine science research where there are
approximately 40 vehicles world wide attributed to that purpose. Some are laid up and others get
little use. However, most marine scientists feel that there is no substitute for "in situ" direct
observation and they refuse to accept remote methods of observation (e.g. ROVs).

Has deep submersible use declined? If so, why?

Deep submersibles were used extensively by the offshore oil companies in support of survey,
drilling and production operations. They were used as an adjunct to extend the capabilities of
shallow water and saturation dive teams. Over time, their use became supplanted by remotely
operated vehicles (ROVs) which have made continual gains in sophistication and capability.
Compared to deep submersibles, ROVs are less costly to operate, maintain and insure. Today,
there are virtually no deep submersibles in use in the commercial offshore business.

Just what is an ROV?

An ROV is a tethered remotely operated vehicle where power and control capability is provided
through an umbilical cable. The vehicle is controlled by an operator from a control van using
joysticks, video monitors and various instrument readouts. ROVs range in size from small por-
table units that cost $10,000 or less, to large, high horsepower behemoths costing millions of
dollars. Depending on the task at hand, ROVs are equipped with a myriad of devices from sensi-
tive spatially correspondent manipulators to special jetting and trenching attachments,

What about deep submersibles for personal use?

The problem with deep submersibles is their weight. Imagine, if you will, trying to push a large
beach ball completely underwater. It's a struggle. In order to get that beach ball to sink and be
neutrally buoyant, you have to weigh it down significantly. In fact, according to Archimede's
Principal the weight must be equivalent to the volume of water the beach ball displaces, and water
is quite heavy. It's the same thing with a submersible. Depending on the depth requirement the
vehicle will be constructed of medium to high tensile steel, but in most cases lead weights will
have to be added to achieve neutral buoyancy. A typical contemporary two passenger submersible
will weigh a minimum of about 3 tons. A three passenger unit about 4.5 tons, minimum. If you
need more interior space for equipment, the weight increases rapidly such that older 3-passenger
commercial subs are likely to weigh in at 7 - 9 tons.

It is very difficult to transport a deep submersible on a trailer behind a conventional car or truck.
Once at the water, they must be launched from a crane or travel lift, because most designs draw
too much water to be launched from a boat ramp. Once in the water they must be used in close
proximity to the launching point because being battery powered they have very limited range and

                                  U.S. SUBMARINES, INC.
                                                       Copyright 2003, L. Bruce Jones. All rights reserved.


endurance. And, because of their weight and cross sectional area, they tow like bricks. A maxi-
mum towing speed is generally 4 knots.

However, U.S. Submarines has developed a unique submersible that can be used effectively as a
personal vehicle. Our Triton 650 takes advantage of a unique catamaran style configuration to
reduce draft, and the low volume approach minimizes weight while the transparent pressure hull
provides exceptional viewing.

What about operating deep submersibles from a yacht or ship?

Deep submersibles used for marine science research have virtually always been launched from and
retrieved to a surface support ship. But, because of the weights involved the ships have been large,
typically at least 35 meters in length, and the launch and recovery equipment has been specialized,
expensive and heavy. These launch and recovery systems themselves can easily cost over
$350,000. They are usually "man rated" by the American Bureau of Shipping so that scientists can
enter and exit the submersible on the deck of the ship. Launching a 5 to 25 ton submersible from
and recovering it to a support ship is no trivial task, particularly in marginal sea conditions where
lateral and snatch loads can be greatly increased due to the motion of the ship and the submers-
ible.

However, if the launch and recovery requirement is taken into consideration early in the yacht
construction process and matched to a specialized submersible the systems can be well integrated.
But, for this to happen the submersible must be designed to be entered and exited while in the
water because the construction requirements for a man rated launch and recovery system are
much more pronounced. At U.S. Submarines we worked with the world leader in launch and
recovery systems and developed a unit that was stern mounted and would launch, recover and
carry our 7 ton Discovery 1000. The submarine and the launch and recovery unit could be easily
removed from the deck of the yacht and placed in a 40 foot container and shipped anywhere in
the world. Our small, lightweight Triton 650 can be launched from most large yacht davit systems
with minimal modification.

What about the cost of deep submersible operations?
You can rent time on a research sub from one of several marine science research groups. Gener-
ally, the cost will be about $5,000 per day for the submersible and crew and about $12,500 per
day for the support ship and crew. The high cost of operations is one significant contributing
factor to the decrease in deep submersible utilization.

In a luxury yacht environment the situation is much different. A contemporary purpose-built deep
submersible like our $640,000 Triton 650 is a light weight, low maintenance design that mini-
mizes the expense and difficulty of launch and recovery and the operating costs are virtually
unnoticeable in the yacht's overall budget. One crew member can be trained to maintain the
submersible and the owner or crew can be trained to pilot the submersible in a relatively short
period of time.

Some older deep submersibles are listed for sale. Are they viable to
operate?

There are a large number of older deep submersibles that are advertised for sale. Generally, they
are large and heavy and require significant maintenance due to their old and outmoded systems.
Many are not stable on the surface and so must have man-rated launch and recovery systems that

                                  U.S. SUBMARINES, INC.
                                                       Copyright 2003, L. Bruce Jones. All rights reserved.



are very expensive. To be used in practical applications, these submersibles require large support
ships and any money saved by buying an older heavy submersible will be spent several times over
in the support ship and launch and recovery system requirement. If you have a commercial or
scientific task and substantial financial resources to pay a highly specialized trained crew for the
sub and a large support vessel, then an older submersible may make sense. Otherwise, these older
deep submersibles make good static displays and museum pieces.

Are there any conditions where the use of older submersibles might be
practical?

Yes, there are two possibilities that come to mind. If you are fortunate enough to live immediately
adjacent to an operating area where you can keep the sub on your dock, bulkhead or marine
railway and your principal operating location is within 0.5 kilometer, an older submersible may
make sense. If you are willing to tow the sub at speeds of less than 3 knots you can expand the
operating area in that manner. However, you must choose a submersible that has good surface
stability and adequate freeboard so that you can easily enter and exit the vehicle while at sea, and
you should be aware that your comparative maintenance requirement will be relatively high.

A second possibility is to purchase a complete integrated system. For instance, on a few occasions
deep submersibles have been built with dedicated self powered catamaran style surface support
vessels that have integrated launch and recovery and support equipment (e.g. generators, battery
chargers, air compressor, spares storage) but are small enough to be cost effective to operate
within a limited area from base. The Bruker Mermaid IV is one such system that is available for
about $600,000 for the catamaran and the submersible. A catamaran has also been built for one
of the SM-100/3 submersibles.

What sort of contemporary deep submersibles have been built in recent
years?

In 1987 a Finnish company, Rauma Oceanics, built the Mir 1 & Mir 2 for the Russian Academy
of Sciences. These are the submersible that were used to film the Titanic. The Mirs cost about $25
million each and have a 6,000 meter depth rating. Just before the Mirs were delivered the Japa-
nese completed the $60 + million Shinkai 6500, which with a depth rating of 6500 meters is the
deepest diving manned submersible today.

A few years ago an American company built two DR1002s which have spherical transparent
pressure hulls and a depth rating of 1000 meters. These two submersibles cost $1.7 million each
and are used by Canal Plus, the French television group.

Last year a French company completed the second Remora, a 2-passenger, 600 meter capable
submersible that also has a transparent spherical acrylic pressure hull. The sub was delivered to
the Greek Dept. of Antiquities in 1999.

What will the future be like for manned submersibles?

This is a subject of interesting speculation. There has not been much activity in the deep submers-
ible field over the last several years. Technical advances in the use of acrylic have provided a
preferred alternative for construction of these vehicles. The Remora and the DR1002 following in
the footsteps of the earlier Johnson SeaLinks have proven the superiority of the acrylic hull for


                                  U.S. SUBMARINES, INC.
                                                         Copyright 2003, L. Bruce Jones. All rights reserved.


depths to 1000 meters. Interestingly enough, they have also proven cost effective. Building a
conventional deep submersible with 1000 meter depth rating like Pisces II for example would cost
significantly more than the $1.7 million for the DR1002. So, there is an economic advantage, yet
in most situations manned submersible utilization fails the basic cost benefit economic test, in
large part because of the expense of the surface support ship.

It is possible that the advent of usable air independent propulsion systems (e.g. closed cycle diesel,
closed cycle Stirling, PEM fuel cells, etc.) coupled with diesel electric submarine autonomy as
demonstrated by our Nomad or Seattle designs could provide a cost effective and capable alterna-
tive. In this case, small to mid size submarines can transit to a dive site while on the surface and
then spend days operating underwater before returning to the surface for the trip home. AIP
capability can dramatically expand the undersea range and endurance and the diesel electric
capability obviates the need for a surface support ship thus cutting the overall system operating
costs by half.

Otherwise there will be some call for replacements for conventional deep submersibles used for
marine science research that have aged to the point that they are no longer safe or cost effective.
And, ROVs used in the offshore oil industry run up against limitations at depths of 3500 meters
or more and new manned submersibles may prove the only viable substitute.

For more information on this topic, please see the following articles on our website:

The Future
The Future of Manned Submersibles
MTS Manned Submersibles Committee: Report on the State of the Technology


                                TOURIST SUBMARINES

What is a tourist submarine?

We use the terms "tourist submarine" and "tourist submersible" interchangeably. Technically, the
term "submarine" denotes a degree of autonomy that tourist vehicles do not have and the term
"submersible" is more appropriate. Yet because the public more easily identifies with the term
"submarine", that terminology is also appropriate.

A tourist submarine is a one atmosphere undersea vehicle that is designed to take paying passen-
gers on subsea voyages for observation purposes. As such, t-subs have transparent viewports for
external viewing. The term "one atmosphere" means that the pressure inside the submarine never
varies from sea level regardless of operating depth. Typically, dives on a t-sub are less than one
hour in duration and a t-sub can make up to 12 one-hour dives per day.

Are there different types of tourist submarines?

Yes, but the overall design differences are not very significant. The tourist subs differ in size and
in design philosophy, but are similarly configured. The end result is that all of the tourist subs
produced in the last 15 years, with just a couple of exceptions, are remarkably similar and pay
tribute to the lack of imagination of their designers.



                                   U.S. SUBMARINES, INC.
                                                       Copyright 2003, L. Bruce Jones. All rights reserved.


Purpose-built tourist subs range in size from 10 passengers to 66 passengers which corresponds to
a range in displacement of from 30 tons to 150 tons. They all derive their power from lead acid
batteries which provide sufficient power to operate from six to 12 one hour dives per day before
an overnight battery recharge. Maximum operating speed is three knots and generally, cruising
speed submerged is 0.5 - 1.0 knot. Because of their limited power capacity, tourist subs are towed
to their dive site in the morning by a tow boat and then remain on site for the day while passen-
gers are transferred to and from the submarine by a passenger transport vessel. For more informa-
tion see the Anatomy of a Tourist Submarine.

The only notable exceptions are the Deepstar design, a tourist submarine with a transparent
acrylic pressure hull and precursor to our Deepview series of acrylic hulled t-subs, the deep diving
Bruker Seamaid TSIV, and our diesel electric Marlin and Nomad t-subs which, when compared to
conventional tourist subs have 20 times the range, dive 7 times deeper and have 4 times the
surface speed.

Where do tourist subs operate?

Tourist subs operate principally in tropical waters. There are numerous operating locations in the
Caribbean (Barbados, Grand Cayman, Aruba, Cozumel, St. Thomas, etc.), the Mediterranean, the
Red Sea, the Atlantic, the South Pacific, the Pacific, the Indian Ocean and the South China Sea.

How expensive is to start a tourist submarine business?

A tourist submarine start-up is quite an expensive proposition due to both the high initial invest-
ment in the equipment as well as the development costs. However, well developed operations can
often pay for themselves within 18 months. In correct circumstances the derived profit can be
extraordinary.

Economic factors favor larger submarines because the baseline infrastructure and manning re-
quirements do not differ substantially with vehicle size. A minimum sized sub for profitable
operations is 10-passengers unless you are making very deep or specialty dives that demand a high
ticker price. New tourist subs range in price from $1.5 million to $7 million and infrastructure
and development costs from $750,000 to over $3 million. Available used submarine prices vary
from $825,000 to $2.2 million. Therefore the least expensive operational start-up will be about
$1.6 million with the most expensive costing over $10 million.

What are some of the issues surrounding the selection of an operating
location?

Operating site selection is a complex subject. When we do a site feasibility study we analyze over
240 separate factors in order to predict the degree of economic success of an operation. Generally
speaking, most tourist submarines operate in tropical locations where the weather is warm and
the water is clear. Critical are areas with good visibility, little current and generally calm seas
where the submarine can operate a minimum of 270 days per year. As a rule of thumb, and given
standard capture ratios one needs about 12,500 incoming tourists per year per seat on the subma-
rine, so to operate a 10 passenger sub at a given location you would need 125,000 incoming
tourist arrivals into your limited geographic area. And, with an average ticket price of $75 a
significant number of the tourists must be financially capable of paying for tickets. Other factors
we consider are items like towing and transit time, operations base set-up, maintenance and haul
out location, storm refuge plans, competing businesses, permits, immigration, environmental
concerns, growth prospects, etc.
                                  U.S. SUBMARINES, INC.
                                                       Copyright 2003, L. Bruce Jones. All rights reserved.




All of the mistakes in the tourist submarine business have been made. With professional assis-
tance and guidance you can avoid repeating them.

What about crew training and licensing?

Licensing requirements vary from country to country but effective crew training is critical. If you
purchase a submarine from us we can assist with the acquisition of experienced crew that is
trained in the operation and maintenance of the submarine during the final phases of construction
or refit followed by sea trials. An experienced crew can then provide further training over time to
newly hired people at the operating location.

In the U.S. the Coast Guard requires that the pilot of the submarine have a Master's license for a
surface vessel of equivalent tonnage and that he receive 40 dives and surfaces and 40 hours
operating the submarine. The applicant is then given an exam based on the maintenance and
operations manuals. Upon successful completion the applicant receives a specific submersible
endorsement to his license.

If I wanted to start a t-sub business, what initial steps should I take?

You need to have access to at least $75,000 in capital to select an acceptable operating location
and develop a business plan. We can assist you with both of these undertakings. Subsequently you
need to identify an experienced management team, select a submarine based on the operating
location and then begin a capital acquisition program to fund the project. Your ability to raise the
funds will in large part be determined by the soundness and sophistication of the business plan
and the erudition and experience of the management team. Keep in mind that there have been
over 45 tourist submarine operations started to date which demonstrates the effectiveness of the
business concept.


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                                 U.S. SUBMARINES, INC.