EU Agrees to Delivery Extension for Tankers

Thursday, September 08, 2005
The European Commission has decided to , allow an extension of the delivery date for two product/chemical tankers built at Estaleiros Navais de Viana do Castelo, Portugal in derogation from the EC Treaty state aid rules on shipbuilding. As a general rule, shipbuilding contracts signed before the abolition of operating aid in 2000 had to be executed at the latest by the end of 2003 in order to benefit from such aid, which could amount to up to 9% of the contract value, but derogations can be allowed under strict conditions. Due to the technical complexity of the construction of these two ships, the Commission decided that the strict conditions are met and approved an extension of the delivery dates.

Contract-related operating aid for shipbuilding was abolished in the EU in December 2000, but could still be paid for contracts signed at the latest by the end of December 2000 and executed before the end of December 2003. The Shipbuilding Regulation (Council Regulation 1540/98), which was in force at that time, stipulates that the Commission may grant an extension of the three-year delivery limit when this is found justified by the technical complexity of the individual shipbuilding project concerned or by delays resulting from unexpected disruptions of a substantial and defendable nature in the working programme of a yard due to unforeseen exceptional circumstances beyond the company’s control.

Portugal requested the Commission to grant an extension of the date for the delivery by Estaleiros Navais de Viana do Castelo of two product /chemical tankers. The vessels were originally due to be delivered in October and November 2003. On this basis, Estaleiros Navais de Viana do Castelo was awarded 9% contract-related operating aid by the Portuguese authorities for the building of the vessels.

The Commission’s investigation revealed that the technical complexity of the project justified the extension of the delivery deadline. Consequently, the Commission decided to authorise an extension of the delivery date, to 29 October 2004 for one tanker and to 5 February 2005 for the other.

Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

MacGregor Deck Equipment for Intership's Eco-bulkers

MacGregor, part of Cargotec, has secured a deck equipment contract from New Times Shipyard in China for Intership Navigation Co Ltd.'s three new 36,500 dwt laker-class bulk carriers.

Seacor Takes Delivery of 10,800 HP Crewboat

Seacor Marine is building ever larger and more powerful mono-hull crew/supply boats. The first of these to be delivered is the 202x34-foot Alex F. McCall with some very impressive statistics.

Choosing the Best Financing Proposal

It isn’t always about the rate. In a robust boatbuilding market – like the one we see now – even the most successful, financially stable operators need to borrow.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Pod Propulsion Salvage Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1337 sec (7 req/sec)