Dockwise Selects HHI to Build Type O Super Vessel

Following the Board’s decision, announced in November 2010, to commission a new build vessel to service the emerging market for ultra-large transports, Dockwise has appointed Hyundai Heavy Industries (HHI) of Korea as its ship building yard. HHI is scheduled to deliver the vessel during the last quarter of 2012, following sea trials, when it is intended to undertake its initial commercial voyage.

The new vessel has been categorized a “Type 0” (T-0) to reflect its exceptional size. Hitherto, the largest class of vessel has been Type 1 with cargo capabilities between 41,000 and 73,000 tons and of which Dockwise, as only provider in the market, already has two in service. With an overall deck size of 275 x 70 meters, and a revolutionary bowless design, the new vessel will have a carrying capacity of more than 110,000 tons. It will be the first of its kind in service in the maritime transport industry, and will add a unique capability to the Dockwise fleet, maintaining its leadership position at the top of the market.

The specification of the T-0 is subject to further detailed design engineering, as Dockwise consults with clients and HHI offshore division engaged in fabricating the next generation of modular units. HHI’s flexibility in new build design, together with its track record of on-schedule delivery and budget discipline, were key deciding factors in the award of the contract. The total cost of the vessel including all project and design costs, is expected to be approximately USD 240 million, with installments of approximately 45% in 2011 and 55% in 2012. The investment is fully financed by the successful rights issue and revolver debt facility Dockwise completed end 2010.

André Goedée, Chief Executive, Dockwise, said:“We have been particularly encouraged by clients’ reactions since we announced this investment decision. It is our expectation, based on latest discussions with clients, that we will surpass our initial revenue assumptions for the first year of operations. Clients have grasped the game changing potential of the vessel and have made a valuable contribution to our thinking around the detailed design.

Hyundai is the partner of choice for our new build vessel, designed to transport the next generation of ultra-size units. Hyundai’s performance-to-budget and delivery records provide the reassurance we seek that the vessel will be available at the agreed loading date for its first assignment.”

C.J. Kang, executive vice president and COO of Hyundai Heavy Industries, said:“As EPIC contractor for offshore projects, we agree strongly with Dockwise that there is a rapidly emerging need for a vessel of this capacity, given the scale growth of offshore projects. The benefits for our ultimate clients of dry transports of integrated structures and of large FPSOs are clearly apparent to yards and offshore services firms focused on the future evolution of our markets.

As a top class offshore construction yard we are proud that Dockwise has chosen HHI for the construction and timely delivery of this vessel.”