$4.5 Million In Cost Increases Approved By MarAd For Two Ro/Ro's
The Maritime Administration recently approved increases in the actual cost of two roll-on / roll-off containerships being built for Waterman Steamship Corp. by Penn Shipbuilding Co., Cheslocations ter. Pa. An increase of $2,027,000 was approved for hull 346, and $2,531,646 for hull 347. In applying for the increases Waterman cited higher than anticipated design, engineering, and interest costs.
The increases raised the total actual costs of the two ships to $88,522,746 of which 48.8 percent is covered by constructiondifferential subsidy and $66,392,- 000 is guaranteed by Title XI commitments. Both vessels have been time-chartered to the Military Sealift Command for five years, with options to extend the charters for an additional 20 years.
Upon delivery by Penn Shipbuilding, the vessels will undergo modifications for MSC service at the National Steel and Shipbuilding Co. in San Diego, Calif.
It is anticipated that all Title XI indebtedness of each vessel will be retired when they are delivered to MSC.