Strategic Marine will install Caterpillar’s C32 Acert engines and emissions abatement technology on new vessels built at its recently acquired shipyard in Singapore
It signed a deal with Caterpillar’s authorised dealer, PT Trakindo Utama Singapore to ensure undisrupted delivery of engines for new vessels. These C32 Acert Caterpillar engines will be IMO Tier III compliant if a selective catalytic reduction system is added to remove NOx from exhaust emissions.
Strategic Marine’s new Singapore shipyard at 5 Benoi Road was purchased in February 2022. At 30,924 m2, it will boost Strategic Marine’s capacity for shipbuilding, repair and maintenance projects.
Strategic Marine said most of the C32 Acert engines will be installed on fast crew boats and crew transfer vessels, which are currently its core offerings. The shipbuilder constructs specialty aluminium craft, such as passenger ferries, anti-pollution and utility vessels, fast patrol craft and patrol and security ships.
The agreement with PT Trakindo Utama Singapore comes amid severe disruptions to the supply of critical shipbuilding equipment due to the continuing Covid-19 pandemic and prolonged global semi-conductor shortages, which has disrupted global logistics and caused supply chain bottlenecks.
Strategic Marine has guaranteed a pipeline of engines to mitigate unforeseen construction delays, even as lead times across the wider industry soar to an estimated 70 weeks, up from the typical average of 15 weeks.
The shipbuilder said this agreement will provide pricing and delivery certainty for clients and lock-in costs to hedge against rising prices.
Strategic Marine has observed healthy demand for its ships from clients in Asia and Europe and has received a significant number of enquiries from potential buyers. It recently signed a deal for six vessels, with another six currently under discussion.
It started negotiations for its engines with PT Trakindo Utama Singapore in January 2022 following a detailed study of market demand and equipment supply conditions.
“We are constantly assessing the market and exploring ways to reduce delays surrounding critical equipment for our projects and ensure continued timely delivery of our projects,” said Strategic Marine chief executive Chan Eng Yew.
“Amid the disruptions caused by Covid-19, our priority is to shield customers from uncertainty by tapping on robust relationships with close partners such as PT Trakindo Utama Singapore. Negotiations were tough, but fair for both parties.”
PT Trakindo Utama Singapore general manager Widjanarko Hidajat said Strategic Marine’s vessels have run on Caterpillar engines for the past two decades. “It is on the strength of this relationship that we have been able to confidently commit 50 engines to our strategic partner and support them as they continue to grow their business amid these challenging times,” he said.
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