May 9, 2007
Boskalis to build mega dredge
International dredging contractor Royal Boskalis Westminster nv is to make investments in equipment amounting to Euros 450 million.
The equipment comprises a new mega trailing suction hopper dredge with a capacity of 40,000 cu.m as a replacement for the W.D. Fairway, as well as two large trailing suction hopper dredges, each with a capacity of 12,000 cu.m.
The W.D. Fairway was damaged by a March collision with a containership while working in China. CEO Peter Berdowski announced that current information indicates that there is a constructive total loss. Boskalis has therefore decided to build a new megahopper with a capacity of 40,000 cu.m. The company has signed a Letter of Intent for the vessel with the shipyard IHC Holland.
The ship will be completed in the spring of 2011. This megahopper will strengthen the Boskalis market position in the segment of large-scale dredging projects.
A constructive total loss of the W.D. Fairway means that Boskalis will receive insurance payments amounting to a total of more than Euros 165 million. On balance, the financial settlement will lead to a positive result of approximately Euros 85 million before taxation.
Boskalis has also signed a Letter of Intent with IHC Holland for the construction of two large hopper dredges with a capacity of 12,000 cu.m. The ships will be completed in 2009 and 2011 respectively.
These hopper dredges are part of a previously announced newbuilding program, aimed at providing new capacity in response to increasing market demand.