Maersk wins US Navy work

Maersk Line Ltd has won contracts from the US military to operate twelve vessels in deals worth over $460m.

Maersk has won US military work worth over $460m

The contract value, including all option years but excluding reimbursables, is expected to exceed $350m.

The shipowner will provide personnel and mariners, operational and technical support ashore and afloat, as well as all the equipment, tools, provisions and supplies necessary to operate the vessels worldwide.

Maersk will also support MSC in the management of government-owned cargo, including, but not limited to, hazardous materials, vehicular, bulk, and general cargoes.

“The ships are among eleven that MSC solicited in February 2009, and Maersk was awarded a contract for every ship on which it offered,” it said.

Maersk said the contract is divided into four lots for a total of ten ships; the eleventh ship is reserved for a small business set-aside contract.

The contract is set to begin in 2010, and if all options are exercised, will extend into 2015, the shipowner said.

Maersk has also been awarded two contracts for the time charter and operation of the 4.614-teu containerships SSG Edward A Carter Jr and the LTC John U.D Page (both built 1985)

Both ships are part of the thirty-two vessel prepositioning program under the administrative control of the MSC.

These ships carry ammunition, explosives, vehicles, and containerized cargo for the US Army’s prepositioning program.

The contract for the SSG Edward A Carter Jr includes a base period of 166 days and four one-year options and one five-month option, which, if exercised, would bring the total award value to $59.9m.

For the LTC John U.D Page, the charter base period is 53 days and the contract includes four one-year options. The total award value could reach $56.6m if all option years are exercised.

Maersk’s history with these ships dates back to 2000, when it was contracted to convert two commercial container ships into these ammunition carriers.

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