Construction of TOTE's Eco-Friendly Newbuilds Placed on Ice

by Ship & Bunker News Team
Monday January 29, 2018

Philly Shipyard ASA (PSI) says it will not extend its letter of intent (LOI) with TOTE Inc. (TOTE), putting the previously announced construction and sale of up to four "state-of-the-art, cost-effective and eco-friendly" newbuilds on hold.

The LOI is set to expire on January 31, 2018.

The news comes alongside TOTE's decision to put plans to enter the U.S. mainland to Hawai'i container ship service on hold as a result of its Phase 1 technical review of Piers 1 and 2 in Honolulu Harbor.

"Due to the scope and timing of the required upgrades and improvements to Piers 1 and 2, the LOI will not be renewed," said PSI.

"The project to build Hulls 031-034 as container ships is being put on hold. PSI is suspending substantially all construction-related activities on these vessels, including design, planning and procurement work."

As previously reported, the first pair of newbuilds were slated for delivery in 2020, while the second pair was expected in 2021.

"PSI intends to resume this project when there is more clarity regarding the new order situation and related capital requirements," said PSI Friday.

"Accordingly, PSI is exploring alternatives in order to secure contracts and financing for these vessels.  In addition, PSI is continuing to pursue potential new construction projects for other types of Jones Act vessels."

Ship & Bunker News Team
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