Singapore Technologies Marine Ltd (ST Marine), the marine arm of Singapore Technologies Engineering Ltd (ST Engineering), on Saturday announced its US operations, VT Halter Marine Inc, has secured a contract to build four more articulated tug barge (ATB) units for Crowley Maritime Corporation's subsidiary, Vessel Management Services Inc.
The vessels, which include the cost of owner furnished equipment, are valued at approximately US $190 million (S$318 million) and are expected to be completed in about 36 months.
This contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current year.
VT Halter Marine's growing partnership with Crowley now includes a total of six ATBs ordered recently, all of which are being built for use by Crowley's newly formed petroleum services segment. The first two units ordered under a June 2004 contract are currently under construction and are expected to be delivered in 1H2006 and 2H2006 respectively. Work under this new contract for Crowley's third to the sixth ATB units is scheduled to begin in 2H2005 and deliveries are expected at regular intervals between 1H2007 and 2H2008.
Tugs and barges built under the new contract will be interchangeable with all vessels in Crowley's ATB fleet.
An ATB is built with an articulated connection system between the tug and barge that allows movement in the critical areas of fore and aft pitch. Each unit consists of a 9,620 BHP ocean going tug and a 185,000-barrel barge. The 135' x 42' x 23' vessels will be US-flagged and will be built to fully comply with the double hull requirements of the Oil Pollution Act of 1990. They will have sophisticated product, heated cargo and chemical capabilities.
"This is yet another example of our commitment to invest in new equipment and technology to meet the current and future needs of our customers. We are pleased to be working with VT Halter Marine, and appreciate all of the hard work, commitment and shipbuilding skills that the men and women of VT Halter Marine invest in each project."
Tom Crowley Jr Chairman of the Board, President and Chief Executive Officer Crowley Maritime Corporation.
"We value the trust that Crowley Maritime Corporation has placed in VT Halter Marine by placing orders for additional ATB units with our US operations. This speaks positively for VT Halter Marine's reputation as a reliable designer and builder of sophisticated, cost effective solutions and we remain committed to delivering quality vessels to meet the requirements of Crowley's operations."
About VT Halter Marine VT Halter Marine is the marine operations of Vision Technologies Systems (VTS). Based in Pascagoula, Miss., it is a leader in the design and construction of medium-sized ships in the United States. VT Halter Marine designs, builds and repairs a wide variety of ocean-going vessels such as patrol vessels, oil recovery vessels, oil cargo vessels, ferries, logistic support vessels and survey vessels. Please visit www.vthaltermarine.com.
ST Marine, the marine arm of ST Engineering, provides turnkey building, repair and conversion services for a wide spectrum of naval and commercial vessels. In shipbuilding, it has the proven capabilities to provide turnkey solutions from concept definition to detailed design, construction, on-board system installation and integration, testing, commissioning to through life support. It has also established a track record in providing high engineering content ship repair and ship conversion services for a worldwide clientele.
ST Engineering is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors.