Corporate
January 31, 2002

Austal Secures Landmark Ferry Contract with United States Military

Austal has announced a major break-through in the use of fast ferry technology, securing a three-year contract with Military Sealift Command of the United States Military for the 101 metre high speed Theatre Support Vessel, “WestPac Express”.

This is the first time the US Military has contracted a commercial vessel of this type for military support.

“WestPac Express” will be used for operations supporting the Third Marine Expeditionary Force (IIIMEF) of the United States Marine Corps.

The three-year contract follows an extensive trial of the vessel during a ‘proof of concept’ charter period entered into between Austal and the US Military in July 2001.

Austal’s Managing Director, Mr Bob McKinnon said Austal won the contract over bids from major competitors.

“This contract has opened the door for Austal to take a leadership position in supplying vessels for the military market,” he said.

“Our decision to establish a modern shipyard in Alabama in the United States enables Austal to take full advantage of further US Military orders that could be expected to flow from this contract.”

“The US Military extensively tested our vessel and compared it to others, clearly demonstrating that “WestPac Express” is the preferred logistics solution for the III MEF’s requirements.”

Mr McKinnon said Austal had made arrangements to sell “WestPac Express” to a financier. The vessel is to be chartered from the financier for the contract with the United States Military.

Austal has been focusing extensively on developing vessels for military use, recognising the superior applications high speed ferries provide to move large numbers of troops and support vehicles in one lift, compared to many movements with traditional vessels or aircraft.

The vessel has consistently exceeded the expectations of the US Marine Corps, demonstrating the effectiveness of Austal’s high speed Theatre Support Vessel for the rapid deployment of troops and equipment.

Lt. General Gregson, Commander of the IIIMEF in Okinawa said “WestPac Express” had fulfilled the US Marines’ expectations.

“We are pleased to continue our relationship with Austal and take full advantage of the benefits offered to IIIMEF by this outstanding vessel,” Lt. General Gregson said.

“WestPac Express” enables III MEF to rapidly transport a complete battalion of more than 950 marines together with up to 550 tonnes of vehicles and equipment, in one lift, delivering considerable strategic and cost advantages.

During the term of the charter the vessel will continue to transport marine battalions, vehicles and equipment between the IIIMEF base at Okinawa and other ports in Japan and the Western Pacific region.

“WestPac Express” will be re-flagged in the United States during the course of the contract, establishing a benchmark as the first commercial vessel of this type to be registered and flagged in the United States.

Further Information

Contact: Austal
Phone: 61 8 9410 1111
Fax: 61 8 9410 2564
Email: media@austal.com

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