TBS orders tweendeckers

Bermuda-based TBS International Limited has entered into agreements with China Communications Construction Company Ltd. (“CCCC”) and Nantong Yahua Shipbuilding Co., Ltd. (“Nantong Yahua”) to build a newly designed class of larger multi-purpose tweendeck vessel in China. The contract calls for six 34,000 dwt vessels with a 10.9 metre draught at a purchase price of $35.42 million each.

The newbuildings will have box-shaped holds, open hatches and fully-retractable hydraulic tweendecks. Each ship will be geared with 35 and 40 tonne cranes and will have a modern fuel-efficient engine that is expected to enable the vessel to operate effectively at 15 knots. The projected delivery dates will be two vessels in 2009 and four vessels in 2010.

The agreement is subject to receipt of satisfactory bank financing for both TBS, CCC and Nantong Yahua. Joseph E. Royce, Chairman, Chief Executive Officer and President of TBS, stated: “This program to build a new larger class of multi-purpose tweendeck vessels is a significant milestone in the TBS business plan to modernize and expand our tweendecker fleet. These ships were designed by a TBS team drawn from all phases of our operations specifically to optimize our efficient cargo transportation in our trade lanes, support the requirements of our loyal customer base and enhance the growth of our business. We are particularly pleased that we are able to build these six ships in conjunction with CCCC and Nantong Yahua Shipyard.”

“The Company’s liner and parcel services, most particularly the TBS Pacific Liner and Latin America Liner Services, transport high-value project cargo, general cargo and steel parcels in one direction and bulk raw materials on the return voyage. With the tweendecks in place, the floor space of the ship doubles and substantially increases its capacity to safely transport these high-value cargoes. On the return voyage, the tweendecks fully retract and the ship functions as a Handysize Bulk Carrier.

Very few general cargo tweendeck vessels in the 20,000+ dwt size range have been built in the last twenty years. Upon delivery, TBS plans to assign the new 34,000 dwt vessels to the TBS Pacific Liner and Latin America Liner Services