Austal to build vessel, worth up to $40m

Shipbuilder Austal has been awarded a contract to design and construct a 71-metre passenger cargo vessel that is worth up to $40 million.

The Henderson-based shipbuilder today announced on the market, that Austal Vietnam has been awarded a contract to work on the vessel for The Degage Group of French Polynesia.

The steel monohull ferry design would include an aluminium superstructure for a capacity of 140 seated passengers and 17 crew, and a 494-square metre main cargo deck, Austal said in its announcement.

Austal said the vessel would be capable of transporting a combination of 10-feet and 20-feet containers, palletised cargo and vehicles.

While Austal kept the exact purchase price for the vessel confidential for commercial reasons, the shipbuilder said it was worth between $30 million to $40 million.

Austal Limited chief executive Paddy Gregg said the new contract represented the fifth ferry to be designed and constructed by Austal for The Degage Group.

But Mr Gregg said this would be the first steel hull ship to be constructed by Austal Vietnam.

“This contract is a testament to the successful business partnership developed between Austal and The Degage Group over a number of decades; reflecting the Degage Group’s great satisfaction in the Austal ferries delivered to date and their tremendous confidence in our team’s capability to deliver this all-new, steel hull design,” he said.

“In less than five years, the world-class shipbuilding team at Austal Vietnam has delivered three major ferry projects, for operators around the world, and now they are ready to take on their first steel hull ship, for one of our most valued customers.

“Our sincere thanks and warmest congratulations to both The Degage Group, and the Austal Vietnam team on this exciting new shipbuilding project that adds yet another, innovative ferry platform to the Austal commercial portfolio.”

The Degage Group owner and managing director Eugene Degage said the company’s collaboration with Austal shipyard has led to successfully built vessels for the group’s fleet.

“This success is testament to the trust we place in their expertise and professionalism. Each vessel is a testament to their dedication to delivering superior products that combine innovation and performance,” he said.

“This fruitful collaboration reinforces our conviction that Austal shipyard is a reliable and competent partner for large-scale marine projects.

“Their unwavering commitment and attention to detail ensures that these vessels meet the highest industry standards.”

Austal shares were trading 0.47 per cent up, at $2.15 per share, as of 4.10pm AEDT today.