Adsteam Marine has kept the expansion plans of its would-be nemesis, Australian Maritime Services, at bay after renewing its "exclusive contract" to provide towage at the Port of Fremantle for another seven years, according to a Sydney Morning Herald report.
The deal effectively blocks AMS' plans to operate in all of Australia's container port
s. Now the question is how long the so-called Virgin Blue of the tugboat market, which is racking up millions of dollars of losses a year, can survive.
The exit of AMS from Port Botany, Melbourne and Brisbane - where it controls around one-third of the tug jobs - should provide a big boost to Adsteam's share price.
Source: Sydney Morning Herald