The contract includes two options which, if exercised, would bring the cumulative value of the newbuilding deal to approximately $1.94bn.
ST Engineering’s US-based shipyard VT Halter Marine will deliver the icebreaker in 2024. If the two options are exercised, the second and third vessels are expected to be delivered in 2025 and 2027 respectively.
The design and construction contract is under the US Coast Guard’s (USCG) Polar Security Cutter (PSC) program, a multi-year program and a USCG major system acquisition to buy up to three heavy icebreakers.
VT Halter Marine has been involved in the design analysis study of the PSC since February 2017 and is currently in the production engineering studies support work since February 2019. The icebreakers will be built to a mix of military and commercial standards.
The USCG will deploy the new icebreakers in the Arctic for missions such as defence operations, national security activities, search and rescue, logistics support and vessel escort, and maritime safety.