American Shipbuilding Association

CONTACT:
Cynthia L. Brown
202-544-8170

(Washington, DC, December 6, 1999) – The announcement today by Totem Ocean Trailer Express (TOTE), a privately-owned Alaskan Corporation, to contract with National Steel and Shipbuilding (NASSCO), a General Dynamics Company, to build two roll-on/roll-off ships for its Alaskan service "marks the first of many expected orders by Jones Act ship owners to recapitalize their aging fleets", said Cynthia Brown, President of the American Shipbuilding Association (ASA), which is the national trade association representing the six largest shipbuilders in the United States, including NASSCO.

"Shipbuilders of the American Shipbuilding Association are committed to designing and building the most efficient and safest ships in the world to serve the Jones Act trade of the United States.  This historic contract demonstrates our U.S. shipbuilding superiority, and the commitment of the U.S. maritime industry to maintain the Jones Act, which ensures that only the safest built and operated ships meet America's waterborne commerce needs," said Brown.

This $300 million contract illustrates that investment in new, efficient tonnage does not equate to an increase in the cost of transporting American waterborne commerce.   The cargo carrying capacity of these two larger ships will equal that of the three smaller vessels that will be replaced.  The cost savings to be realized in fuel, maintenance, and cargo handling efficiencies, coupled with the greater cargo carrying capacity of these ships, makes this a sound investment for TOTE and its customers.

"The ships' modern, innovative design demonstrates, once again, the superior quality of American-built and American-owned ships that serve the domestic commerce of the United States," said Brown.  These ships will be the most environmentally conscious liner ships ever built.  The engines will be clean burning marine power plants, the ships' fuel will be stored in double hull fashion, not adjacent to the ships' skin, and the ships will have a state-of-the-art sewage treatment plant and crew-generated trash disposal system.

According to TOTE spokesperson Robert Magee: "The carrying capacity, environmental sensitivity and efficiency of these new ships will allow TOTE to continue to provide the quality service Alaskans have come to expect and will keep us on track to meet the needs of tomorrow."