High Shipping Costs Are Here to Stay, Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
Vigor Industrial announced today they have reached an agreement with Daoda Marine Heavy Industry Company (DDHI) to purchase a new floating drydock for a total consideration of $40 million. At 960 feet long, with an inside width of 186 feet and a lifting capacity of 80,000 long tons, it will be the largest floating drydock in the United States upon delivery.
“We decided now is the time to buy because demand to service large vessels is growing and large drydock capacity in proximity to the US West Coast has diminished,” said Vigor Industrial CEO Frank Foti.
The new drydock, set to be stationed in Portland, will be 300 feet longer than the largest drydock Vigor currently owns. It will be one and half times wider and will be able to lift more than triple the weight.
This new capacity will allow Vigor to service the incoming generation of the US Navy’s Military Sealift Command (MSC) dry cargo/ammunition ships, which are replacing some smaller MSC ammunition, combat stores and fuel ships. The drydock will be large enough to service private vessels including post-Panamax cargo ships and cruise ships. The increased capacity will also help Vigor meet growing demand from the Arctic as oil and gas exploration and other ship operators take advantage of longer ice-free summers.
In addition to growing demand, the past decade has seen half a dozen large drydocks go out of service in the Pacific region.
DDHI will build the drydock at its facility in Jiangsu Provence, China, for delivery by March 2014. It will be towed to Portland in three pieces for assembly, and its first job will likely be to prepare Vigor’s largest Portland-based drydock for use at Vigor’s Seattle facility. This would provide the Seattle shipyard with a new capacity to service Panamax-sized vessels.
“We are thrilled that Vigor chose us as a partner for this major capital investment,” said Victor Huang, Vice President of DDHI. “Our world-class facilities and experience allow us to provide the best quality drydock at the most competitive price.”
“We look forward to working with DDHI on this critical project,” Foti said. “The new drydock will allow us to meet future demand, grow our business and put more people to work in the Pacific Northwest.”
Join the 67,474 members that receive our newsletter.
Have a news tip? Let us know.