Contracts

Friday, August 18, 2000
Bollinger to Build Two Jumbo Coal Barges

Bollinger Shipyards, Inc., Lockport, La., has signed a contract to build two, 250-ft., double hull, jumbo coastwise service, single rake hopper barges for Tide Leasing, LLC, Birmingham, Ala. Construction has begun on the first barge and building of the second vessel will begin in August. Both are scheduled for delivery in November 2000.

Overall, each barge will be 250 ft. in length, with a 52.5-ft. beam and 14-ft. depth and 11.5 ft. maximum draft. They will be built with .75-in. steel at the hopper bottoms and .625-in. steel at the hopper sides plus .5-in. T-1 liner plates on the bottom and upper sides of the hopper. Each will be able to carry up to 3,000 metric tons of coal and will operate out of Santa Marta, Colombia.

Shearer and Associates, Inc., Metairie, La. designed the new barges for the transportation of coal in limited offshore service. They will be classed by Lloyd's Register of Shipping and will have a Lloyd's load line.

Blount Signs Contract for Sightseeing Vessel

Chicago from the Lake Ltd. has signed a contract with Blount Industries Inc. to design and construct a 65-ft. sightseeing vessel. The new vessel will be used for architectural tours, excursions and dining on the Chicago River.

Chicago from the Lake currently owns and operated the Inisfree, built by the Blount shipyard in 1985. The new, 230-passenger vessel will be powered by two Caterpillar 3306 diesel engines rated 235 hp @ 2,000 rpm. It will be equipped with two Northern Lights 20 kW A.C. generator sets. The vessel is scheduled for completion in April 2001 and will be known as Blount Hull number 307. The delivery of the vessel, via the Erie Canal and the Great Lakes, will mark 51 years that the builder has used the New York canal system.

SCA Releases Vessel Repair Contract Form

The Shipbuilders Council of America (SCA) released a commercial vessel repair contract form for use by U.S. shipyards when negotiating contracts.

American shipyards are encouraged to propose the contract form to their customers. It is aimed at making ship repair contract negotiations more simple and efficient, a goal shared by shipyards and vessel owners and operators alike. The contract form is available online at www.shipbuilders.org. It includes several blanks that will be completed by users based on specific yard and vessel criteria. The drafters recognize that the form will need periodic modification.

John Crane-Lips Wins RoRo Contract

John Crane-Lips, the marine arm of UK-based TI Group's John Crane sealing systems division, is to provide ship propulsion systems for two of the most environmentally-conscious cargo vessels ever designed, scheduled for the challenging Alaska freight route.

The two $150 million RoRo vessels will be built to operate efficiently and safely in the frequently hostile weather conditions encountered on the route from Tacoma, Washington to Anchorage, Alaska.

In a $3.4 million contract, John Crane-Lips will supply the propulsion systems, including the propellers, shaftlines and thrust bearings and seals. The twin propellers are driven by double electric motors powered by six environmentally friendly "clean burn" diesel-electric power plants.

The propellers supplied by John Crane-Lips are designed for optimum performance on the ocean, but they also have to ensure passage through the severe icing that can extend for up to 100 miles along Cook Inlet to Anchorage, Alaska. Glacial lava silt, creating needle-sharp particles when frozen, is a major hazard.

John Crane-Lips' twin propulsion systems, together with twin rudders and steering gear, provide excellent protection against breakdown, as well as ensuring reliable performance. Its fixed pitch propellers also provide the highest safeguards against the risk of oil leakage from the damaging impact of frozen lava silt particles.

John Cousins, Chief Executive Officer of John Crane-Lips, commented: "This new contract confirms our reputation for excellence in the supply of marine propulsion systems with outstanding environmental performance, along with the highest standards of safety and reliability. The State of Alaska is renowned for positive environmental action and, on this highly competitive route, delivery of freight to schedule is critical for customers."

FirstWave/Newpark Awarded Contracts

FirstWave/Newpark Shipbuilding was awarded a contract from Parker Drilling Offshore Corporation for steel and piping repairs to the "Parker 25 J." The vessel arrived at the company's East Pelican Island Facility June 23.

FirstWave/Newpark was also awarded two contracts from Marine Drilling Company. The Marine Rig 202 arrived from Singapore June 26 for skirt repairs and replacement to the rig mat. The Marine Rig 201, also coming from Singapore, arrived at June 28 for minor repairs and loadout.

Litton to Produce San Antonio Class Ship

Litton Avondale Industries has received approval by the U.S. Navy to begin full, sustained production of the lead ship in the U.S. Navy's new San Antonio (LPD 17) Class of amphibious assault ships.

Start of production of the LPD 17 lead ship follows a 36-month period of design, material procurement and engineering. Through the use of extensive automation, advanced materials and equipment, and reduced crew size, the ships will be produced for the lowest possible operating and maintenance costs over their lifetime in the fleet.

As prime contractor for the LPD 17 program, Litton Avondale leads a team comprised of General Dynamics' Bath Iron Works, Raytheon Electronic Systems and Intergraph Corporation. In addition to design work begun for the new class in 1997, Litton Avondale has already constructed a series of pilot ship sections to demonstrate the maturity of the design and efficient production processes. To date, four ships have been awarded in the 12-ship program, with eight additional ships planned in the next four to five years. The first ship in the new class will be delivered in late 2003. Value of the four ships awarded to date is in excess of $2 billion. Eight of the ships will be built at Litton Avondale in New Orleans, while four are currently planned for production at Bath Iron Works in Maine.

The LPD 17 Amphibious Transport Dock Ships are designed to be 684 ft. long and 105 ft. wide, and will be the functional replacement for the LPD 4, LSD 36, LKA 113, and LDT 1179 Classes of Amphibious ships. The LPD 17 ship's mission is to embark, transport, and land elements of a landing force in an assault by helicopters, landing craft, and amphibious vehicles to conduct an amphibious warfare mission.

Todd Shipyards Wins Navy Contract

A new contract for Puget Sound work on U.S. Navy vessels will be worth up to $75 million over five years for Todd Pacific Shipyards.

Todd Shipyards Corporation announced the award by the U. S. Navy of a third continuous ship repair contract to its wholly owned subsidiary, Todd Pacific Shipyards Corporation. The new contract, known as CMT (Combatant Maintenance Team), is a five-year, cost reimbursable contract to perform ship repair work on the six surface combatants (frigates and destroyers) stationed at Naval Station Everett.

"This contract is unprecedented in the Puget Sound region for its innovative coupling of the commercial maritime industrial base with the needs of the Navy," said Stephen Welch, Chief Executive Officer of Todd Shipyards. "The CMT contract combines the unique skills and efficiencies of various commercial contractors, while enhancing the quality of life for the ships' crew." Through an innovative contract structure, Todd Pacific will act as the prime contractor and lead a team of subcontractors who may perform as much as half of the work. The majority of the work will be accomplished in Todd's shipyard located on Seattle's Harbor Island. Other work will be performed pier-side within Naval Station Everett. Work under this new contract will be performed at the option of the Navy, which has not established a dollar value for the work. Todd Pacific estimates the value may be in the range of $60 - $75 million over five years, if all options are exercised.

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