Great Lakes Inks M.E., N.C. Coastal Protection Project Deals
Great Lakes Announces $55 Million in Subcontract Work in the Middle East and Award of $38 Million for a Domestic Coastal Protection Project
Great Lakes Dredge & Dock Corporation (“Great Lakes”) (NASDAQ:GLDD), the largest provider of dredging services in the United States and a major provider of environmental and infrastructure services, announced today the signing of two subcontracts valued at approximately $55 million for work in the Middle East as well as the receipt of a $38 million award for a coastal protection project in North Carolina.
The first subcontract in the Middle East is for a land development project and involves dredging over 7 million cubic meters of material by creating several water circulation channels and pumping the resulting material up to 7,000 meters to its designated reclamation area. Cutter suction dredges Ohio and Carolina, both of which are based in the Middle East, will be utilized on this project. Work commenced in mid-April and is expected to be completed in approximately one year. The second contract in the Middle East is for a land reclamation project that involves extending an existing reclamation area. Utilizing our Middle-East-based hopper dredge, Sugar Island, approximately 1.3 million cubic meters of material will be dredged and pumped ashore to create this additional land. Work is expected to commence in early May and will be completed in 2017.
Domestically, Great Lakes was awarded a $38 million contract to complete the base bid work on the Dare County Beach Nourishment Project for Dare County, North Carolina. Utilizing hopper dredges, approximately 4 million cubic yards of sand will be dredged and pumped on shore to replenish the coast in Dare County, North Carolina for the towns of Duck, Kitty Hawk, and Kill Devil Hills. Work is expected to commence on this project in the spring of 2017 and is expected to be completed by the fall 2017. The award is contingent on approval from the Local Government Commission.
President of Dredging Operations David Simonelli stated, “Great Lakes’ dredges have renourished the shore line adjacent to Highway 12 near Oregon Inlet and also Nags Head beaches. We look forward to executing this beach replenishment project in Dare County, North Carolina, which will serve as a natural barrier to mitigate damage caused by coastal storms and also enable residents to enjoy a wider and safer beach area. The Middle East is an important market for the Company, and performing dredging and reclamation projects such as these will benefit the local economy and will support the country’s economic strategy. We look forward to working with our new clients on these important projects.”