NASSCO Receives a $511M Ship Building Contract for Two Vessels

General Dynamics NASSCO received a $511 million contract from Matson Navigation Co. Inc. to build two ships able to haul containers and other cargo on routes to Hawaii, the companies announced Aug. 25.

NASSCO said it plans to begin construction of the first ship in early 2018 and plans to deliver the finished products in 2019 and mid-2020.

The ships, which Matson calls the Kanaloa class, will be 870 feet long with a container capacity of 3,500 TEUs, or 20-foot equivalent units. The ships will also have roll-on, roll-off capacity, with garage space for up to 800 vehicles.

Matson (NYSE: MATX) plans to put the ships into service to Hawaii. Under the Jones Act, U.S. shipyards must build ships offering service between two U.S. ports.

South Korea-based Daewoo Ship Engineering Co. worked with NASSCO to design the ships.

The buyer has the opportunity to convert the ships to liquefied natural gas fuel.

The General Dynamics (NYSE: GD) unit builds commercial and U.S. Navy auxiliary ships in its Barrio Logan yard. NASSCO also repairs Navy ships.

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