LDA Cancels Shipbuilding Contract with ST Engineering

22 March 2011 (Last Updated March 22nd, 2011 18:30)

Louis Dreyfus Armateurs (LDA) has terminated a shipbuilding contract worth S$179m (US$141m) with Singapore Technologies Engineering. The company said it terminated the contract due to delay in the delivery of the vessel and also said that, even if the vessel were delivered, there would

Louis Dreyfus Armateurs (LDA) has terminated a shipbuilding contract worth S$179m (US$141m) with Singapore Technologies Engineering.

The company said it terminated the contract due to delay in the delivery of the vessel and also said that, even if the vessel were delivered, there would be a deficiency in the deadweight capacity.

LDA ordered a roll-on / roll-off passenger ferry in July 2007 for S$179m.

If the vessel is cancelled, Singapore-based ST Engineering’s ST Marine will have to repay S$129m plus interest, as well as 10% of the contract price as damages.