Work On Two Tankers At Northwest Marine Will Total Over $7.8 Million

The Maritime Subsidy Board has determined the fair and reasonable price and constructiondifferential subsidy (CDS) rates for the reconstruction of two 89,700-deadweight-ton tankers, the Chestnut Hill and Kittanning, operated by Chestnut Shipping Co.

Northwest Marine Iron Works, Portland, Ore., will rebuild the ships at a cost of $3,930,976 per vessel. This price includes $308,- 605 worth of national defense features for each tanker.

The subsidy rate was set at 43.66 percent, or $1,716,576 per vessel. This figure was based on an estimated f o r e i g n cost of $2,214,400. A regional concept which combined Japan and Singapore as the representative shipbuilding center for the reconstruction work was used in estimating the foreign cost.

The work will include installation of inert gas and crude oil washing systems and the replacement of the vessels' cargo stripping pumps required by the 1978 Port and Tanker Safety Act.

The Chestnut Hill and Kittanning were built by National Steel & Shipbuilding Co., San Diego, Calif., in 1976 and 1977, respectively.

Maritime Reporter Magazine, page 5, Jul 1981

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Maritime Reporter

First published in 1881 Maritime Reporter is the world's largest audited circulation publication serving the global maritime industry.