Massive cost overruns on US containerships

Cost overruns on Kvaerner Philadelphia shipyard?s three 2,890 TEU containerships will amount to a whopping $28 million (NOK200 million) per ship. The first ship, which Matson Navigation will operate, will also be delivered one month late, confesses the US yard?s Norwegian parent Aker Kvaerner. In a statement the company acknowledges “that the substantial commitment made to turn Kvaerner Philadelphia into an efficient and commercial yard has not so far given the desired results”. The first vessel is now due in August this year. The second ship, which has also been bought by Matson, will be completed in the second quarter of 2004.