Davis & Co

Davis & Co. Release Ship Survey

CONTACT

Gregory T. Davis
Davis & Company Limited

1989 University Ave., Suite I

Lisle, Illinois 60532, USA

800-223-8816; 630-852-7944

SURVEYOR HELPS LAUNCH U.S. BUILT CONTAINERSHIPS

Davis Consulting verifies progress to keep financing flowing

LISLE, IL, October -- , 2003 -- Delivery of the first American-built containerships since 1992~~[wmh1]~~ is being expedited by Davis Consulting Group (DCG) marine engineers, a division of Davis & Company, Ltd., working as liaison between the shipyard and Caterpillar Financial Services Corporation (CFSC), the firm providing construction financing. DCG associate Guy Nolan, a naval architect based in Washington, DC, has been on board monthly to confirm that each vessel has reached a specific construction milestone in order to trigger the next progress payment. Because of his involvement, Nolan has also been able to explain the shipbuilding process and necessary changes in the construction schedule of the new vessels.

“Shipbuilding is a very dynamic process,” explains Nolan, “While the process can be simplified, the shear number of steps that must be completed and the multitude of ways in which these can be combined create an incredibly complex process. In order to make that process more efficient, the shipyard must continuously adjust it. The Key Event Schedules that are the basis of the progress payments are created while the ship is little more than a set of drawings. It is only natural that these schedules need to be changed as the production process is refined."

As part of his consulting role, Nolan helps CFSC gauge whether any misses in development milestones reflect process changes that have the potential to decrease production costs versus the project being behind schedule. "The benefit to CFSC to have us on site to protect their interest is obvious, but my presence also benefits the shipyard by relieving them of justifying changes in the schedule and allowing them to concentrate on building ships,” Nolan says. More recently, Nolan participated in sea trials of the first ship to launch verifying that the vessel met all requirements of the regulatory agencies (American Bureau of Shipping and U.S. Coast Guard) and the new owner's contract specifications.

Nolan has been involved in marine surveying for 24 years and has been affiliated with DCG since 1998. He is a graduate of the U.S. Coast Guard Academy with a degree in Naval Architecture and Marine Engineering and holds master’s degrees in Naval Architecture, Marine Engineering and Mechanical Engineering from the University of Michigan. He is a licensed Professional Engineer and Accredited Marine Surveyor.

The new ships are being built by Kavaerner Philadelphia Shipyard, Inc., the former site of the Philadelphia Naval Shipyard. They measure 712-ft. overall with 106-ft. maximum beam, have a depth of 64-ft. from the main deck and weigh 29,000 tons. In operation, they will carry 1,441 containers at a service speed of 22.7 knots and have a crew of 24. Owner Matson Navigation Company plans to use the new ships in trade between California and Hawaii. The Jones Act requires vessels transporting cargo between two U.S. ports to be built in the U.S., crewed by U.S. mariners and owned by U.S. citizens. For Kavaerner, it sees future Jones Act builds including additional containerships, Ro-Ro (Roll on/ Roll off) vessels, and crude and product tankers.

Caterpillar Financial Services Corporation, a wholly-owned subsidiary of Caterpillar Inc., provides a wide range of financing alternatives for Caterpillar® machinery and engines, Solar® gas turbines, as well as other equipment and marine vessels. The company also extends loans to customers and dealers. Cat Financial has offices and subsidiaries located throughout the Americas, Asia, Australia, and Europe, with headquarters in Nashville, Tennessee.

Davis & Company Ltd. is the largest firm in North America specializing in recreational and commercial marine surveys and engineering. It also performs Cargo and Loss Control surveys. Its Davis Consulting Group engineers are internationally recognized experts in their field. DCG primarily handles assignments for marine lenders, investigates insurance claims and assists legal professionals. More details are available by visiting www.daviscoltd.com.

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