Horizon takes steps to deal with revenue shortfall on ferry project

First NYC Ferry cat was delivered by Horizon Shipbuilding in April First NYC Ferry cat was delivered by Horizon Shipbuilding in April

SEPTEMBER 21, 2017 – Horizon Shipbuilding, Bayou La Batre, AL, said today that project revenues from its major NYC Ferry newbuilding project were insufficient for it to continue normal day to day operations.

Horizon Shipbuilding was one of two shipyards contracted by a subsidiary of San Francisco-based Hornblower Cruises & Events to build the 85 ft 4 in x 26 ft 3 in Incat Crowther design aluminum catamaran ferries for NYC Ferry and completed the ten vessels contacted with it for delivery this year in what is widely regarded as an outstanding shipbuilding achievement.

Horizon says that, as a result of the revenue shortfall, it is reorganizing its current projects. Contacted by Marine Log, the company said that it is not contemplating filing for Chapter 11 protection "at this time."

Horizon Shipbuilding VP Lance C. Lemcool, issued the following statement:

"Last year, Travis R. Short, President of Horizon Shipbuilding saw an opportunity to repeat a great construction performance from 2012. Namely, an unheard of quantity of vessels in a very short period of time starting from ground zero. Hornblower (HNY Ferries) offered just this type of opportunity through its NYC Ferry project and Horizon has achieved what most believed couldn't be done. Through the unparalleled commitment of Horizon's boat builders, subcontractors and suppliers, all of the 2017 ferries have been delivered. However, project revenues were not sufficient for Horizon to continue normal day to day operations. The forecasted shortfalls were brought to the forefront early in the project and discussions have been ongoing since then without resolution. Horizon will now take the time to reorganize its current projects and make every effort to regain its reputation with the vendors and subcontractors that help make up the Horizon Team. Horizon appreciates the industry's support as they meticulously navigate through the process of reestablishing itself as the shipbuilder their customers have come to rely on for the past two decades."

 

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