MARAD Contract for Horizon Lines

Published Aug 10, 2005 12:01 AM by The Maritime Executive

U.S. domestic shipping operator Horizon Lines has been awarded a contract for ship management services for two of MARAD's Ready Reserve Force vessels. The Ready Reserve program operates cargo vessels to help supply U.S. military forces deployed in a combat theatre.

The four-year base period contract with MARAD has associated revenue of U.S. $4.9 million for its initial term and includes two three-year extension options that would be awarded based on the company's performance.

"This Ready Reserve Force program selection further broadens our relationship with the U.S. government and its transportation services agencies," said Charles Raymond, President, Chairman, and Chief Executive Officer of Horizon Lines. "It is a validation of our core competencies and signals the government's trust in our ability to deliver on mission-critical operations."

In the MARAD announcement, U.S. Transportation Secretary Mineta said, "We have seen first hand that the Ready Reserve Force provides a vital link to the men and women of the armed services by carrying thousands of military vehicles, aircraft and other materiel to support operations in Afghanistan and Iraq. This is an extremely cost effective and well-run program that keeps us prepared to rapidly respond to the military's needs."

Horizon Lines is one of nine U.S. owned companies that will manage its all-cargo fleet of 54 Ready Reserve Force (RRF) ships under a new set of contracts that have an estimated total value of U.S. $1.9 billion over 10 years.