Vaile Congratulates Austal on $145 Million Deal

Deputy Prime Minister and Trade Minister Mark Vaile today congratulated Western Australian-based Austal on winning a $145 million contract to build two passenger ferries for the Istanbul Metropolitan Municipality (IMM).

The deal to supply Turkey's largest city with two passenger ferries will contribute to the Istanbul government's efforts to ease the city's traffic congestion by moving commuters via the Bosphorus Straight and Marmara Sea.

Mr Vaile said "Austal's exporting success demonstrates Australia's world class design innovation and manufacturing expertise which is generating a lot of interest in international markets."

Austal received extensive support from the Australian Government including Austrade and the Export Finance and Insurance Corporation (EFIC) in securing this valuable contract.

Au stal has used Austrade services extensively since the early 1990's and has received nearly $700,000 in Export Market Development Grants.

EFIC has offered a $116 million financing package to IMM for the purchase of the vessels and provided its first financing package to the Istanbul Municipality over a decade ago. It has since supported the sale of seven Australian built vessels to IMM and provided more than $330 million of long-term funding and guarantees to support Austal's sales in Turkey and other markets.

"Austal employs more than a 1000 people in its Australian operations and has had tremendous ex port success having sold its high performance vessels to 30 countries. Austal's deal with the Istanbul Metropolitan Municipality is a great achievement for a company that continues to build upon its impressive export record," Mr Vaile said.

"Turkey's expanding and modernising economy positions it as an increasingly important export market for Australian companies. The Turkish economy has grown faster than OECD economies on average during the past 20 years which has increased the purchasing power of its 73 million residents.

"The Australian Government will continue to work hard to promote the benefits of export and to secure favourable trading conditions for Australian companies, including the opportunities that arise from our free trade agreements with key trading partners."

Istanbul Fast Ferries Co. (IDO), the purchaser of the two vessels, was founded by the IMM to assist with sea transportation in Istanbul and is Austal's largest commercial customer. IDO has previously purchased nine vessels from Austal worth $250 million, which continue to operate in the Bosphorus Straight and Marmara Sea.

Austal, the world's largest builder of fast ferries, has built and sold more than 150 vessels worldwide since it started business in 1988 and is internationally renowned as an innovative and quality manufacturer of high performance aluminium private, commercial and defence passenger ferries and cruise ships.

Contacts: Richard Forbes (Minister Vaile) 02 6277 7420 - Gregory Harvey (Austrade) 02 9390 2703