Singapore's Strategic Marine has ordered 50 of its C32 ACERT IMO III engines from Caterpillar dealer PT Trakindo Utama Singapore Branch, citing severe disruptions to the supply of what it says is critical shipbuilding equipment due to the pandemic, which has caused worldwide logistics and supply chain bottlenecks and disruptions.
The company, which builds aluminum boats, with offshore crew transfer vessels being its main offering, said the acquisition of the 50 engines would significantly shorten its production timeline for new vessels, and ensure visibility to the supply of fast crew boats and crew transfer vessels.
"This guaranteed pipeline of engines means the likelihood of unforeseen construction delays has been significantly reduced, even as lead times across the wider industry soar to an estimated 70 weeks, up from the typical average of 15 weeks," Strategic Marine said.
"Clients will also benefit from pricing and delivery certainty, as vessel costs have been locked in to hedge against rising prices. Strategic Marine has observed healthy demand for its ships from clients in Asia and Europe and received a significant number of inquiries from potential buyers. It recently signed a deal for six vessels, with another six currently under discussion," the company said.
The 50 Caterpillar engines, which will be IMO III compliant if a selective catalytic reduction system is added, will be installed in vessels at Strategic Marine’s new Singapore shipyard at 5 Benoi Road. Recently acquired in February 2022, the 30,924 square meter yard will boost the company’s capacity for shipbuilding, as well as repair and maintenance projects.