FastShip Adds Rail Element In Philadelphia

FastShip Adds Rail Element In Philadelphia

      FastShip Inc., the company planning the construction of four revolutionary containerships for trans-Atlantic service, in late August announced an agreement with Consolidated Rail Corp. (Conrail) to acquire a large portion of a rail yard and dormant shipping terminal along the Delaware River in the Port Richmond section of Philadelphia.
     This most recent building block in establishing seven-day door-to-door ocean cargo delivery between Philadelphia and Cherbourg, France, will allow FastShip to establish a dedicated intermodal terminal capable of supporting its specialized rail loading/offloading system.
     The site will be transformed into a modern transportation hub for the FastShip trans-Atlantic network. The property acquisition is contingent upon the approval of Conrail's board of directors.
     "We are building a world-class transportation network that will provide the speed, reliability, frequency and cost that meets the demands of the rapidly changing world economy," said FastShip President Roland Bullard. "This will fuel economic development and employment in the Philadelphia region."
     The deal with Conrail is the latest component added to the FastShip project. Over the past year, the company has established several key agreements that will help bring the project to completion.
     FastShip has made arrangements with outside companies for construction of the four ships, propulsion system design and construction, development of dedicated cargo terminals in the U.S. and France, financial planning and freight forwarding. Specifically, the agreements FastShip has secured include:

International transportation and logistics provider Schneider National Inc. to provide three major services for the FastShip intermodal system. Schneider National will act as the North American logistics provider for FastShip, and will also serve as the trans-Atlantic lead logistics partner, providing global visibility of shipment information for customers in both North America and Europe
Prominent freight forwarders AEI, Circle International, GeoLogistics and MSAS Global Logistics have agreed to purchase cargo space on the company's high-speed vessels on "use-or-pay" terms once the ships begin operating in 2003.
Interocean Ugland Management will provide for the operation and manning of the vessels in service under the U.S.-flag.
Rolls Royce PLC will supply the gas-turbine engines for the ships.
Philadelphia Gear Corporation will provide transmissions for the FastShip propulsion systems.
National Steel and Shipbuilding Company of San Diego-FastShip and NASSCO signed a memorandum of understanding for the construction of four FastShip containerships.
Kamewa, a Swedish company, signed a formal agreement to develop and supply water jets for the four FastShip vessels.
The Cherbourg-Cotentin Chamber of Commerce and Industry agreed to build the dedicated cargo terminal in France for the FastShip vessels.
The Delaware River Port Authority will build a dedicated U.S. FastShip terminal.
J.P. Morgan Securities Inc. will assist in obtaining funding for the newbuilds and advise on equity and debt financing.
MAINCO will manage FastShip terminal operations in Cherbourg for 20 years and install container-handling and terminal equipment at the dedicated cargo hub in France.

     At an estimated cost of $220 million each, the FastShip vessels will be driven by water jets and powered by modified jet engines. The vessels will be capable of making 40 knots across the Atlantic and of completing the crossing in four days. They will operate directly between Philadelphia and Cherbourg.
     Headquartered in Philadelphia, Pa., FastShip will target high-value, time-sensitive goods including electronics, pharmaceutical and perishable items. The FastShip service will provide speed, reliability and frequency comparable to air freight at a cost closer to conventional ocean shipping rates.
     The FastShip vessels' huge productivity gains and the intermodal network will provide a substantial technological and competitive advantage for the U.S. maritime industry. This technological advantage is created not only by the vessels' revolutionary hull design and propulsion system, but also by FastShip's state-of-the-art intermodal terminals.
     The 'Container Platform-Train' cargo handling system will be integrated into both the ship and the dedicated terminals. Modified trolleys will rapidly transport cargo onto trains and trucks from the FastShip vessels and vice versa. FastShip will connect its terminals to an intermodal distribution network managed by Schneider National, Inc. In addition to excellent road access, the FastShip terminal in Philadelphia will make use of Conrail's connections to the extensive rail network of other freight carriers in the area.
     FastShip is creating a seven-day, door-to-door North Atlantic transportation network linking Europe to the United States. The service is made possible through use of patented technology that represents a significant leap in hull design, propulsion systems and terminal technology. Trial operations are scheduled to begin in 2002.

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