US Navy hands out US$74M multi-tug charter contract

A North American tug operator has secured a multi-vessel charter contract from the US Navy that comes with options out to Q1 2024.

Connecticut-headquartered Moran Towing Corp has won a contract from the US Navy to provide eight tugboats for shiphandling, docking and undocking naval vessels in the Norfolk, Virginia, harbour and surrounding waters.

This is a firm, fixed-price contract with reimbursable elements to support the PM4 service support programme. It was awarded by the US Navy’s Military Sealift Command in Norfolk, after a tender period in October 2018, which initially covers 12 months to January 2020.

The initial contract is worth around US$14M. However, there are also three 12-month options to this contract and another 11-month option.

If these contract options are exercised, the value of this contract will rise to US$74M, according to the US Navy. Then, Moran’s eight tugboats will be in service until the end of January 2024.

Moran Towing operates 14 tugboats in Norfolk, Hampton Roads, Virgina, including eight with total power of 3,130 kW, three with more than 4,475 kW of power and three others with total power ranging between these.

This month, Moran Towing mobilised tugboat Barbara Carol Ann Moran to Tampa, Florida for maintenance at the Gulf Marine Repair yard. This is part of an articulated tug-barge unit with 4,475 kW of power that normally trades in the New York-New Jersey area.

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Moran Towing is not the only tugboat operator to gain contracts from the US Navy. In October 2018, Donjon Marine clinched a multi-year salvage contract from the US Navy, covering the whole of the Atlantic Ocean. It secured a five-year contract to provide salvage and emergency towage until Q4 2023 from the US’ Naval Sea Systems Command after a competitive tender process.

Ship emission and sulphur levels in fuel will be discussed at Riviera Maritime Media's Americas Sulphur Cap 2020 Conference, to be held in Houston on 5-6 March