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Friday, February 18, 2000
Merger will
create world's largest chemical
tanker fleet
Odfjell ASA and Ceres Hellenic Shipping Enterprises Ltd., the
owner of Seachem, today said they have agreed to unite their
respective chemical logistics assets to create the world's largest
owner and operator of chemical tanker tonnage.
Seachem is the world's fourth largest chemical
tanker operator, with a total of 23 ships in the range of 11
- 45,500 dwt currently in operation. Seachem has 8 sophisticated
stainless steel newbuildings of 40,000 dwt on order for delivery
in 2001 -2003.
Odfjell will issue new shares to Ceres
in exchange for the following
assets:
- 9 chemical tankers aggregating 335,000
dwt, built 1986 - 1988;
- 4 newbuildings aggregating 160,000 dwt
for delivery 2001 - 2002;
- and in addition, Odfjell will purchase
100% of the shares in Seachem, the pool company
The balance of the Seachem fleet will be
commercially managed by the combined company.
The transaction equals about $360 million
investment on the combined company's balance sheet.
As part settlement, Odfjell will issue
to Ceres a total of appr. 4.9 mill shares dividend into appr.
3.35 mill. A-shares and 1.57 mill. B-shares, at anagreed price
of NOK 208 per share, in total the equivalent of about 1 billion
NOK worth of equity. The transaction values Odfjell at appr.
NOK 4.6billion before the issue of any new equity, and the combined
company at appr. NOK 5.6 billion.
Commenting on the agreement, Dan Odfjell,
Chairman of Odfjell ASA, said: This transaction will position
the combined company as the world's premiere operator of deep
sea chemical tankers, with a market share of about 26%. It meets
the increasing demand of our customers following a period of
consolidation in the chemical industry, and enables us to provide
superior service through integration of skilled personnel and
control of key assets.
Headquarters of the combined company will
be in Bergen, Norway. Branch offices on five continents will
be integrated into the new structure. Ceres Hellenic will continue
ship management from its Piraeus headquarters.
Destiny
incident underscores cruise ship evacuation concerns
The problems experienced by the Carnival Destiny earlier this
week are likely to add to demands that the sheer number of passengers
and crews carried by today's largest cruise ships mean that SOLAS
should be reexamined.
Those sharing this concern about "Postpanamax"
cruise ships are understood to include IMO Secretary General
William O'Neill and the U.S. Coast Guard's Admiral Bob North.
It is highly likely that the issue will be raisedat the next
meeting of IMO's Maritime Safety Committee.
Carnival Destiny was left without propulsion
power at 1.40 a.m. on February 15 when it experienced a technical
problem with its two cycloconverters which control the transmission
of electrical power to the ship's propulsion motors.
Carnival's polished crisis management planning
swung into action with a full refund of passengers' cruise and
air transportation costs plus a 50% discount on a future cruise.
The ship was carrying 2,956 guests and
1,063 crew, which underscores the scale of the problems that
could have arisen not only in getting that large a number of
people disembarked into lifecraft, but then getting them evacuated
from the area.
Carnival
in massive flag switch
Carnival, incidentally, is in process of switching all fifteen
of its "fun ships," including the Destiny, from Liberian
or Panamanian to Bahamas registry.
Warnow
yard wins two newbuilding contracts worth US$62 million
Kvaerner's Warnow shipyard in Germany has received two orders
worth approximately US$62 million for the construction of two
container vessels of the WARNOW CV 2500 design. These vessels,
ordered by German ship owners, are scheduled for delivery in
the first and second quarters of 2001, respectively.
The ships have an overall length of 209
m and are 29.8 m wide. With a deadweight of 33,750 tons they
have a container stowage capacity of 2,524 TEU and sockets for
392 reefer containers. The service speed is 22 knots. During
1997 and 1999 Kvaerner supplied five vessels of the same design.
Kvaerner's German yard has previously delivered four container
vessels to the same ship-owners.
Kvaerner has announced its intention to
exit shipbuilding and says "these contracts will contribute
to maintaining the activities at the Warnow yard, while the search
for new owners continues."
Navy
awards LPD 19
Litton Avondale Industries, a division of Litton Industries has
announced that the U.S. Navy has exercised an option for the
construction of LPD 19, valued at $491.9 million.
The award covers a cost-reimbursable contract
to the Litton Avondale Alliance to build the third LPD 17 Class
ship, the Navy's newest and most advanced amphibious assault
ship. LPD 19 is planned for construction at Bath Iron Works (a
subsidiary of General Dynamics), located in Bath, Maine.
Litton Avondale is as the prime contractor
for the Litton Avondale Alliance, which, along with Bath Iron
Works, includes Raytheon Electronic Systems and Intergraph Corp.
The first two ships in the LPD 17 Class,
also awarded under cost-reimbursable contracts, will be constructed
in Litton Avondale's shipyard in New Orleans. A total of 12 ships
are planned for the LPD 17 Program with eight ships planned to
be built at Avondale and four ships to be built at Bath. Design
of the lead ship is underway at Litton Avondale, and actual construction
is scheduled to start in mid 2000.
Two ships, LPD 19 and LPD 20, have been
authorized and appropriated by Congress. LPD 20, which will be
built at Avondale, isanticipated to be awarded in the near future.
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