Page 4: of Maritime Reporter Magazine (December 15, 1973)

Multimillion Contract

Awarded To PDM To Build

LNG Containment For Ships

PittsburghJDes Moines Steel Company, Ne- ville Island, Pittsburgh, Pa. 15225, has received a contract, with a reported value of 'between $50 million and $75 million, from Quincy Ship- building Division of General Dynamics ito sup- ply the storage vessels for four additional

LNG ships.

The contract consists of twenty 120-foot- diameter aluminum spheres, each with a ca- pacity of 25,000 cubic meters of LNG. The spheres will be built at PDM's subsidiary,

World Southern Corporation located near

Charleston, S.C., and delivered ,to General Dy- namics ait Quincy, Mass., where they will be installed aiboard LNG ships.

Dillingham Announces Plans

To Invest $32 Million In

Worldwide Shipping Partnership

Dillingham Corporaion (NYSE) and A/S

Kristian Jebsens Rederi, a privately owned company based in Bergen, Norway, have an- nounced that they have signed a letter of intent to jointly engage in worldwide shipping.

According to the terms of the letter, Dilling- ham, a diversified Honolulu-tbased company, will hold 51 percemt of the proposed venture, with Jebsens holding the remaining 49 per- cent. "'Dillingham will contribute $32,000,000 in cash to the venture through January 1976, and Jebsens will contribute a fleet of nine modern operating bulk carrier vessels under

British flag, totaling about 215,000 deadweight tons, the average age being about 15 months, the oldest one built in 1970. In addition, the joint venture has contracts for two bulk car- riers to be delivered in 1975. All vessels are in the 20,000 to 35,000-deadweight-ton class.

The new company, to be known as Norse-

Pacific Shipping Co., is scheduled to begin op- erations in early 1974. The formation of the company is subject 'to the preparation and execution of 'the definitive joint-venture docu- ments.

Lowell S. Dillingham, chairman and chief executive officer of Dillingham Corporation, will be chairman of the board of 'the new com- pany, and Atle Jebsen, chairman and chief executive of Jebsens, will be managing di- rector.

Operation of the company will be under (the management of Jebsens, which has been in the shipping business since 1929, when it was founded by Kristian Jebsen, Atle Jebsen's fa- ther. The total tonnage erf vessels presently owned by Jebsens is about 430,000 deadweight tons (35 vessels), of which about 340,000 dead- weight tons are in .the 20,000 .to 35,000-ton class, the rest being smaller size bulk carriers trading the 'North Sea. In addition, Jebsens presently runs about 200,000 deadweight tons (14 vessels) on a charter basis.

Commenting, Mr. Dillingham said: "For the past two years, while improving our financial flexibility, we have been working to identify investment opportunities with above average growth potential which are consistent with our existing categories of business and offer opportunities for near term earnings. Bulk shipping is such a business. Tonnage has tripled in the past 10 years. Continued inter- national industrial development should gener- ate a steady growth in demand for baisic com- modities and raw materials, many of which must be shipped from areas remote from the marketplace."

Commenting on the prospects for the com- pany, Mr. Jebsen said: "Jebsens have over the vears specialized in carrying raw materials in bulk, mainly based on contracts of affreight- ment with industry. There has 'been a tremen- dous growth in ithe shipment of bulk com- modities over the past several years, and I am convinced that this trend will continue.

The financial strength of the joint venture combined with the existing know-how and expertise will enable us to expand our present business as opportunities present themselves."

Dillingham's principal activities are in real estate, maritime, construction and resources throughout the Pacific Basin. Revenues last year were approximately $533,000,000. The company recently reported record third-quar- ter earnings.

Carrington Slipways States

Overseas Advertising Produces

Results For Australian Yard

I

The two 85-foot tugs shown above, the La Trobe and the

McLarty (on the ways), were built by Carrington for How- ard Smith Industries.

In spite of ithe gloom that has surrounded the Australian shipbuilding industry in recent years, Carrington Slipways Pty. Ltd. have taken orders for two overseas tugs and have inquiries for eight more. The company states that these are a direct result of an overseas advertising campaign commenced six months ago in U.S. and U.K. shipbuilding publications.

Inquiries from as far afield as Taiwan, the

Caribbean, the Middle East, India, Malaysia and the Persian Gulf prove that not only is

Carrington leading the way for specialized shipbuilding in Australia, but in fact are high- ly competitive on an international market.

Having established their reputation with lo- cal companies 'for building extremely sophisti- cated work vessels of many classes—--tugs, off- shore supply vessels and fishing trawlers to name a few—ithe directors of the company, af- ter investigation into overseas market poten- tial, decided that ithey could offer Australian- built ships at a competitive price with speedy delivery.

The order for two -tugs, which will 'be similar to the La Trobe and the McLarty built for

Howard Smith Industries, comes from Gray

Mackenzie Company, Ltd., for operation in the

Persian Gulf. Gray Mackenzie is a diversified company servicing oil companies, tanker groups and varied marine interests in the Per- sian Gulf area, and the company is a subsid- iary of Inchgroup of London.

The La Trobe and the McLarty are 85-foot tugs and are powered by two 1,00045hp Mirr- lees Blackstone engines with twin-screws and independent steering nozzles, giving them in- creased, maneuverability. Some modifications have been made to suit the condition's of the operational area of the two new tugs, and they will be extremely maneuverable. Both tugs will provide accommodation for 12, and they will work two 'full crews of six in around-the- clock operation in separate shifts, catering for up to 200 shipping movements each month.

Carrington Slipways are proving to be an exception to the rule in Australia at a time when many other shipyards have been forced to close or reduce their output. The company has doubled their staff and 'built more than 20 ships in the last two years.

CARRINGTON SLIPWAYS Pty. Ltd.

AUSTRALIA

We also build ships of any size to order

Send for details v*

CARRINGTON SLIPWAYS Pty. Ltd.

OLD PUNT ROAD

TOMAGO 2322, N.S.W. AUSTRALIA

AVAILABLE DELIVERY 1974 85' TUGS 33 TON BOLLARD PULL 105' TUGS 8 TON BOLLARD PULL 105' TUGS 50 TON BOLLARD PULL

Phone: NEWCASTLE 648071 Telex: 28185 Cable: CARRINGTON'S 2 x 1000 HP 2 x 1250 HP 2 x 1600 HP 6 Maritime Reporter/Engineering News