Austal JV Wins First Ferry Contract
Aulong Shipbuilding, a joint venture company formed by Austal Limited and Guandong Jianglong Shipbuilding of Zhuhai, China, has won the first ferry contract to build a 42 metre high speed aluminium ferry for Chinese mainland operator Blue Sea Jet.
Less than two months after the announcement of the joint venture, Aulong Shipbuilding has been awarded a A$10 million (RMB49.99 million) contract to design and build the ferry.
The contract was awarded following a competitive evaluation based on product performance, price and commercial terms.
The ferry is based on a proven Austal design developed in Australia to world class standards. The design optimises performance, fuel efficiency and passenger comfort and will carry up to 288 passengers on the Zhuhai – Hong Kong route, at speeds in excess of 36 knots.
Construction of the vessel is anticipated to commence in October 2016, with delivery scheduled for October 2017.
Austal has appointed an Australian General Manager to oversee the delivery of this and all subsequent vessels contracted, to ensure that Austal’s renowned quality and customer satisfaction is maintained in the joint venture.
Announcing the contract, Austal Chief Executive Officer David Singleton remarked “To win our first vessel to be built in China within weeks of setting up the joint venture is a great testament to Austal and our joint venture partner, Jianglong Shipbuilding. This is another export win for an Australian designed vessel in a competitive market and clearly validates both the joint venture and the decision to build in China.”
“Austal has previously delivered 52 vessels to 20 customers in China, Hong Kong and Macau from our Henderson, Western Australia shipyard. Now, with an in-country solution utilising Australian design and technology and a proven local shipbuilder, we can cost effectively pursue more opportunities and expand our market share in mainland China,” he added.
“Set up costs and general, non-recurring expenditure required to deliver this first contract mean this vessel, whilst strategically important in a huge market, will not contribute to overall group earnings and will require some modest capital expenditure by Aulong Shipbuilding.”
