San Diego Business Journal

Nassco to Build Container Ships That Run on Clean Fuel

Wednesday, December 5, 2012

General Dynamics Nassco has announced fresh shipbuilding work from the commercial sector. The Barrio Logan shipyard has a new contract to build a pair of container ships that will run on a unique fuel.

The buyer, TOTE Shipholdings Inc., has an option to buy three additional container ships for a total of five.

Financial terms of the deal were not disclosed.

The 764-foot-long ships will run on liquefied natural gas. “This project breaks new ground in green ship technology,” said Fred Harris, president of General Dynamics Nassco, in a statement distributed by Nassco.

TOTE plans to put the ships into service between Jacksonville, Fla., and San Juan, Puerto Rico.

TOTE Shipholdings is a subsidiary of Princeton, N.J.-based TOTE Inc.

Shares of General Dynamics closed at $66.44 on Dec. 4, rising 1 percent from the previous day’s close. Their 52-week range has been $61.09 to $74.54. The stock trades on the New York Stock Exchange under the symbol GD.

— SDBJ Staff Report