Big Spills Spark A Ban On Single-Hull Vessels; Regulations demand a modernization that was already well under way.(INDUSTRY SNAPSHOT)(ENVIRONMENTAL COSTS)

Byline: MARILYN ALVA

In November 2002, the single-hull tanker Prestige spilled 3 million gallons of oil off the Spanish coast as it broke up and sank. The spill killed wildlife and put tens of thousands of people out of work who depended on the sea for their living.

The Prestige joined a host of other notorious spills that have made history, including the Erika in 1999 and Exxon Valdez in 1989.

Oil spills not only create ecological disasters. They're also public relations nightmares and economic calamities for oil and tanker firms.

"These guys lose at the bottom line," said Gary Goldstein, a senior analyst at Gilford Securities.

No more, industry officials vow. The spills have been wake-up calls for shippers and regulators. Whether forced or voluntary, the tanker industry has been moving quickly to modernize its fleets with safer double-hull vessels.

"The big issues are environmental concerns and regulations," said Peter Georgiopoulos, chief executive of General Maritime Corp.