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P&O Pulls out of Australian Icebreaker Tender

Maritime Activity Reports, Inc.

January 14, 2015

P&O Maritime, which operates the Aurora Australia, has quit the tender process to build a new Antarctic icebreaker by the Federal Government, reports ABC.

The reason cited for P&O's pulling out of the long-running tender process after three years of work, an unusual procurement process.

P&O Director Radostin Popov said the process put all the risk on those making bids. The unusual procurement model leads to very large complications in risk management that ultimately means that we found ourselves incapable of delivering a value-for-money solution.
Papov said that his company was disappointed to have to pull out of this and believed uniquely position to offer the best solution for the Government on the back of decade’s long experience.
The move has sparked calls for a tender process better suited to Australian companies.

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