Mooring Systems wins US Navy contract

Mooring Systems has teamed up with Texas-based Oceaneering International on a project for the US Navy that, if successful, could be worth big dollars for the Christchurch-based engineering firm.

Mooring Systems chief executive Peter Montgomery said confidentiality issues prevented the firm from giving precise revenue figures.

But the contract, for an "indefinite quantity" of moorings designed to transfer 6m containers between ships at sea, could carry a potential US$45 million ($72 million) price tag and run until September 2010.

Shares in Mooring Systems shot up 10c, or more than 2 per cent, to $4.25 on the news, which closely follows last month's announcement of a $3.1 million deal to sell automated mooring units to Salalah Port Services in Oman.

In early February, the shares were worth just $2.65.

Yesterday's deal is Mooring Systems' second attempt to secure a US Navy contract.

The firm was involved in a similar deal in 2004 with Rolls-Royce Naval Marine but that failed to fly.

The latest contract includes a variety of design, build, test, evaluation, and demonstration tasks to provide a prototype system for high capacity, at-sea cargo transfer between naval ships.

Montgomery said recent experience in Dover and Oman meant Mooring Systems was better equipped to prove its ship-mooring technology.

Oceaneering International provides engineering services for marine, space and other harsh environments. Its customers include oil and gas companies, government agencies, aerospace, marine engineering and construction companies.

- NZPA