GLDD gets a slice of the Suez pie

OCTOBER 21, 2014 — Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD) reports that the Suez Canal Authority Chairman Mohab Mohamed Hussein Mamish has signed a $540 million contract with a consortium consisting of Great Lakes (25%) and Dredging International NV (75%) for Lot 6 of the Suez Canal widening and deepening project. The contract is valued at $540 million and is part of a larger project to expand global trade and strengthen the economy in Egypt.

The contract involves the widening and deepening to 79 feet of the western branch of the Suez Canal at Great Bitter Lake, Deversoir Reach and Kabret Reach, which is a 25 kilometer stretch of the canal. Dredging International will mobilize four cutter suction dredges and two hopper dredges and auxiliary equipment while Great Lakes will mobilize its Middle East-based heavy duty, high production cutter suction dredges Carolina and Ohio, pipelines and auxiliary support equipment. The vessels will mobilize to Egypt in November and commence dredging operations before year-end. The consortium's scope of work is expected to be completed by the end of the third quarter of 2015.

David Simonelli, GLDD's President of Dredging Operations, stated, "The Suez Canal is vital to the global economy, providing the fastest shipping route between Europe and Asia. This expansion project and the development of the Suez Canal Corridor will reduce transit times and bolster economic growth along the waterway. Great Lakes has a strong relationship and track record of success working with Dredging International, and we are pleased to be partnering with them on this significant project that will provide social and economic benefits to the region and around the globe."

Want more? Subscribe now!

News from NASDAQ