Page 12: of Maritime Reporter Magazine (September 2005)

Helsinki Yard to Become a Ferry Builder

The Board of Aker Finnyard has decided to take the steps necessary to make its Helsinki yard a world-class builder of ferries. The site in Helsinki, which has produced some of the worlds most outstanding cruise ships, has become too small to meet the demand for today's ever growing cruise ship sizes. Expansion of the dry dock is not possible, given the location of the yard in the middle of the city of Helsinki. The activity at the yard has been low since the last cruise ship was delivered in

February 2004.

As Aker Yards is determined to contin- ue shipbuilding activities in Helsinki, the plan is to focus on the assembly and outfitting of ferries. Two contracts for building of ferries were recently signed with Tallink and Brittany Ferries. The steel blocks have already for some time been floated on barges to Helsinki from the Turku and Rauma units.

The plan includes moving the manage- ment, design, sales and procurement functions now in Helsinki to Turku.

OSI, Raytheon Team to

Pursue IBS Opportunities

Offshore Systems International Ltd. signed a teaming agreement with

Raytheon Marine GmbH to pursue new opportunities in the international inte- grated bridge systems (IBS) market. OSI also announced the first project under this partnership: to incorporate its war- ship navigation systems software (WECDIS) into the Integrated Bridge

System that Raytheon is installing on new destroyers being built for the Royal

Navy in the UK.

The Royal Navy's new destroyer pro- gram represents six vessels with an option to increase to 12 vessels. In the last year, OSI has been selected for more than 25 new ships under construction worldwide, including in New Zealand and Australia. Based on market data,

OSI estimates the opportunity for elec- tronic navigation systems for major combatant ships, submarines, specialty warfare craft, non-combatant vessels and naval ship-building programs is $75 million annually.

CP Ships Accepts $2 Billion Offer

The CP Ships Limited Board of

Directors unanimously recommended that shareholders accept an offer from

TUI AG to acquire CP Ships in an all- cash transaction for $21.50 per share or about $2 billion on a fully diluted basis.

Including the assumption of net debt of $300 million as of June 30, 2005, the transaction has a total value of $2.3 bil- lion. TUI, the parent of Hapag-Lloyd, plans to combine Hapag-Lloyd and CP

Ships to create the world's fifth-largest container shipping company with a fleet of 139 ships (and another 17 on order) for a capacity of approximately 400,000

TEU on more than 100 routes world- wide. "The combination of Hapag-

Lloyd and CP Ships will create a com- pany with the strength and scale to com- pete effectively in an industry where consolidation is changing the landscape.

Furthermore, the combined company will offer enhanced resources and opportunities for both CP Ships and

Hapag-Lloyd's customers and employ- ees," said Michael Behrendt, Hapag-

Lloyd CEO. "This transaction will enhance growth opportunities over the longer term and will enhance value for TUI's sharehold- ers through CP Ships' earnings potential and the realization of synergy potential in operations and ship networks," said

Dr. Michael Frenzel, TUI CEO. "Our enlarged shipping business will be well positioned to take advantage of the strong long term growth dynamics in the container shipping industry. This is both a compelling financial and strategic opportunity for us." TUI's offer to acquire CP Ships is subject to customary closing conditions including acceptance by shareholders The transaction is expected to close during 4Q 2005. 12 Maritime Reporter & Engineering News

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