Bouchard Opts for Articulated Tug Barge

Press Release
Friday, March 22, 2013

ST Engineering’s U.S. shipyard, VT Halter Marine, Inc. (VT Halter Marine) announced that Bouchard Transportation Co., Inc. (Bouchard) has exercised its option for an additional Articulated Tug Barge (ATB) unit that was announced on February 15, 2013. The value of this ATB unit is in the region of $100 million.

Both barges will measure 625 x 91 x 47 feet and each will have a 250,000-barrel capacity. They will be used to transport liquid petroleum. The barges will be American Bureau of Shipping (ABS) and United States Coast Guard (USCG) certified for Jones Act service. The 10,000hp twin screw ATB tug, classed by ABS as XA1 Towing Vessel, Dual Mode, USCG Sub-chapter M, will be equipped with an Interconnected Coupler System.

The construction of the first barge will begin in April 2013 at VT Halter Marine’s Pascagoula facility, with delivery scheduled in mid 2015. Construction of the second barge will begin in 4Q2013 with delivery scheduled in 1Q2016.

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 financial year.

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