Wednesday, June 14,
2000
Cammell
Laird takes a stake in Cascade General
Britain's Cammell Laird has taken a minority stake in Portland,
Oregon, repairer Cascade General. Liverpool-based Cammell Laird
has been expanding rapidly. Annual turnover has grown from £22.6
million in 1997 to £110 million (about $165 million) in
1999. Market capitalization has gone from £93 million in
1998 to £224 million (about $336 million) in 1999. Last
month it was the sole bidder for the Varna, Bulgaria, yard.
According to a story in yesterday's Oregonian,
the Cammell Laird investment in Cascade General, along with financing
from two institutional investors, will give the Portland firm
the cash it needs to purchase the Port of Portland's Swan Island
Repair Yard. Cascade General has been the sole repair contractor
at the Swan Island facility since 1995. It has been trying to
buy the yard for the past two years. Now it reportedly has the
$30.8 million needed to purchase the facility, which includes
the largest floating dry dock in the Americas.
The Oregonian story says Cascade General
officials declined to disclose the size of the investment by
Cammell Laird. The link is expected to give Cascade General the
ability to bid for larger, more sophisticated jobs.
Debt financing will come from Transamerica
Equipment Financial Services, headquartered in San Francisco,
and Heller Financial in Chicago.
Port commissioners were expected to approve
the sale of the Swan Island facility at a regularly scheduled
meeting today. The deal is expected to close by July 3.
Royal Caribbean plans
for shoreside control of ships' computers
New technology being introduced by Royal Caribbean will enable
shore staff to take control of ships' computer desktops and servers
via satellite.
The company has signed a renewed contract with Maritime Telecommunications
Network (MTN) that includes proviiding the platform for the wireless
remote management project. The new contract will also cover
Royal Caribbean's Celebrity Cruises.
MTN will provide a C-Band satellite communications
network, allowing for shore-to-ship and ship-to-shore telephony,
fax, data, and Internet transmission to 17 vessels and six new-builds.
MTN will manage, support, and consult on this extensive global
satellite network as well as supply and integrate NX Networks
voice-over IP multi-plexers and Cisco routers. These systems
will act as a platform for the roll-out of RCI's wireless remote
management project, based upon Computer Associates' Unicenter
TNG software. This project will allow support staff to take control
of the ship's computer desktops and servers from land via satellite
link, as well as tap GPS (Global Positioning System) information
for all of its global operations. This will enable RCI to bring
technical support to remote sites upon demand.
Oslo IPO for
P& O bulker subsidiary
Associated Bulk Carriers plc ("ABC"), one of the world's
largest independent operators of capesize bulk carriers and currently
a wholly owned subsidiary of The Peninsular and Oriental Steam
Navigation Company (P&O),has published the prospectus for
its proposed initial public offering on the Oslo Stock Exchange.
A price range has been set of NOK 45 to NOK 60. The offering
will be effected by a placing of shares with institutions and
a public offering to retail investors in Norway.
ABC has a net asset value of approximately
$190 million and it is expected that the market capitalization
on listing will reflect this. P&O intends to sell between
60% and 69% of its interest in ABC. No new shares are to
be issued as part of the offering, which is not being made to
persons in the U.S., Canada, Australia or Japan .
ABC operates a fleet of 22 capesize dry
bulk carriers totalling 3.5 million dwt, ranging in size from
110,000 dwt to 210,000 dwt. With an average age of 7 years
it is one of the youngest capesize fleets in the world.
Fifteen of the vessels are wholly owned, 5 are operated under
bareboat charters with purchase options, and 2 are held under
finance leases.
A reorganization of ABC was undertaken
on May 26,2000 and its business transferred to a newly incorporated
holding company. The vessels were valued by three independent
shipbrokers at an average of approximately $430 million.
ABC has net debt and other net liabilities of approximately $240
million with net assets of approximately $190 million.
ABC will remain a British company following the listing.
It is expected that it will operate under the U.K. tonnage tax.
P& O says the market for capesize tonnage
has improved significantly from the low levels experienced in
late 1998 and first half 1999. This turnaround is attributable
to a recovery in steel production, particularly in Asia, and
a contraction of the capesize fleet during 1998. Average revenues
have increased from a low point of approximately $5,500 per ship
per day in 1999 to the current level of approximately $16,500
per ship per day. ABC made a proforma loss in 1999 but
is now trading profitably. The supply/demand outlook over
the next two years is positive, says P&O.
News
Index
Marine
Log Home page
|
