[Damen] Response to Greece's International Award of Contract

[Dutchy]

---

​

Recipient: Minister of Shipping and Trade, Ministry of Shipping and Trade, People's Republic of Greece (Donnager)
Cc: -
Subject: International Award of Contract: Expansion of the Greek Merchant Marine
Attachment:
Classification: Private

Dear Minister,

I am sending you this message in response to the publication of the International Award of Contract for the Expansion of the Greek Merchant Marine. Damen Group is one of the world's leading shipbuilders, experienced in both civilian and defence vessels. We are interested in opening a dialogue with the People's Republic of Greece to explore whether Damen can support your government in the attainment of its maritime goals.

The published tender mentions a desire for a broad range of vessls, from tankers and container feeders, to freighters and liquified gas carriers. These are all vessels which are present in Damen's 'catalogue'.

We would be honoured to be able to supply the People's Republic of Greece with any number of these vessels. Please take your time to review the catalogue and know that I am always available for any questions you may have and dicussions you may wish to hold.

Yours Sincerely,

Arnout Pender
Director of Sales (Europe)

 

[Donnager]

Recipient: Director of Sales for Damen Group, NL, Mr. Arnout Pender (Dutchy)
Cc: --
Subject: International Award of Contract: Expansion of the Greek Merchant Marine
Attachment:
Classification: Private

Dear Sir,

We have of course been long aware of Damen's Group leading position when it comes to shipbuilding both civilian vessels and warships. The People's Republic of Greece (henceforth mentioned as 'PRG') would naturally be willing to name Damen Group one of its Merchant Marine suppliers.

Our maritime needs will be diverse and therefore our interest range lies across your provided catalogue. The PRG is currently exporting mineral fuels and oil and we need to obtain both tankers and liquified gas carriers to fulfill our trade obligations. We would be willing to commission the construction of your mid-to-high range types (Tanker 4150 - Tanker 8000) to ship crude oil products, and the low range in gas carriers (types: 1500 LNG). To that effect, please attach a financial offer in your next response. Our Citizen's Assembly has authorized me to inform any interested bidder that the PRG will be carrying out a programme to modernize our merchant marine for the next five years. In this time we aspire to purchase a 500 vessels in total with which to conduct trade throughout the world. Should Damen Group be willing to be our primary supplier, this exchange will be the start of a long collaboration between the PRG and Damen Group.

In addition to tankers and liquid gas carriers, the PRG is also exporting more mundane products such as aluminium, vegetables/fruits, pharmaceuticals and electrical machinery (including low-end computers). To conduct our trading, we will also require a wide assortment of container feeders and freighters to carry our products globally. We will be initiating our modernization programme by acquiring your mid-to-high end container feeders (types: 1700 & 2500) and your high-end freighters (types: 14000-19000). Please provide us with costs for these types as well in your next email.

Overall, my government is interested to purchase no less than 40 vessels in the next three months, ten of which will be purchased in December 2001. Based on your offer, I can be more precise when it comes to the exact make-up of our order.

Sincerely yours,
Xenophon Gallos
//si.//
Minister for Shipping and Trade

 

[Dutchy]

---

​

Recipient: Minister of Shipping and Trade, Ministry of Shipping and Trade, People's Republic of Greece (Donnager)
Cc: -
Subject: International Award of Contract: Expansion of the Greek Merchant Marine
Attachment:
Classification: Private

Dear Minister,

Thank you for your promt response. Your outline for the future development of Greece's merchant navy is indeed significant and would require quite the undertaking. However, it is nothing that Damen would not be able to handle in cooperation with your government.

Before I can offer any form of financial quote in regards to an order I would require more details. Specifically, I hope you could inform me of the initial order size of each specific vessels you wish to acquire. Additionally, the number of orders you hope to place each month/year would also allow me to tailor a more beneficial quote for your government.

I can offer the following details to begin with, however it is worth noting that based on the information you could provide on specific order size and schedules Damen could adjust discounts based on that.

Below you can find the single order price for each vessel as of December 2001:

Tanker 4150 - $36,450,000.00
Tanker 8000 - $43,200,000.00
Container Feeder 1700 - $43,200,000.00
Container Feeder 2500 - $48,600,000.00
Freighter 14000 - $55,350,000.00
Freighter 19000 - $60,750,000.00

Yours Sincerely,

Arnout Pender
Director of Sales (Europe)

 

[Donnager]

Recipient: Director of Sales for Damen Group, NL, Mr. Arnout Pender (Dutchy)
Cc: --
Subject: International Award of Contract: Expansion of the Greek Merchant Marine
Attachment:
Classification: Private

Dear Mr. Pender,

Bellow I have outlined the initial order we are prepared to place with Damen Group for the month of December 2001. Our government is further prepared to renew the following order on a bi-monthly basis, reserving the right to slightly modify the types of vessels we commission according to our trading partners and their needs.

Tanker 4150 (2x)
Tanker 8000 (3x)
Container Feeder 1700 (3x)
Container Feeder 2500 (2x)
Freighter 14000 (5x)
Freighter 19000 (5x)

In the spirit of a long and fruitful collaboration between the PRG and Damen Group, I also outline a preliminary schedule for our purchases for the year 2002, always pending the approval and ratification of the Greek People. As per the agreed upon purchase plan, we aim to acquire a total of eighty (80) vessels for the next year.

December 2001 - As listed above
February 2002 - Repeat of the original offer
April 2002 - Container Feeder 1700 & 2500 (5+5)
June 2002 - Freighter 14000 & 19000 (3+2)
August 2002 - Tanker 4150 & 8000 (5+5)
October 2002 - Container Feeder 1700 & 2500 (5+5)
December 2002 - Repeat of original offer

Having said that, I believe it would also be beneficial to both Damen Group and the PRG if we also agreed on the following clause: that the PRG undertakes the responsibility to forward a small monthly fee towards Damen Group in place of insurance for following the pre-agreed plan of purchase, while Damen Group agrees not to modify its pricing for the duration of the one-year plan. After the finalization of that time period, we can of course re-negotiate the flat fee as well as the pricing range.

Sincerely yours,
Xenophon Gallos
//si.//
Minister for Shipping and Trade

 

[Dutchy]

---

​

Recipient: Minister of Shipping and Trade, Ministry of Shipping and Trade, People's Republic of Greece (Donnager)
Cc: -
Subject: International Award of Contract: Expansion of the Greek Merchant Marine
Attachment: Quote DG/2001/0002
Classification: Private

Dear Minister,

Thank you for outlining your order. Based on your orders for the months of December 2001 and January 2002 I have been able to assemble the following quotation which can be found in the attachements of this email. I have also been authorised to offer a 5% discount on your April and August orders as outlined in the preliminary schedule.

I hope that you find this quotation acceptable and Damen is ready to begin productions on the vessels as soon as the People's Republic of Greece is prepared. In the event that you wish to discuss further details regarding the quotation, please do not hesitate to do so.

I have also been inquired by the executive board, as a result of the large order being placed by your government, whether you would be open to talks regarding the construction of a Damen facility in Greece, both in order to provide repairs to your current fleet and to facilitate the construction of new vessels locally by the people of Greece. We believe that such a facility would be mutually beneficial, offering Damen a facility in the Mediteranean to offer repair services and for the Greek economy to benefit from job creation. In the event that your government is open to such talks, I will inform Chairman Kommer Damen who will reach out to you in due course.

Yours Sincerely,

Arnout Pender
Director of Sales (Europe)

 

[Donnager]

Recipient: Director of Sales for Damen Group, NL, Mr. Arnout Pender (@Dutchy)
Cc: --
Subject: International Award of Contract: Expansion of the Greek Merchant Marine
Attachment:
Classification: Private

Dear Mr. Pender,

I have received your finalized offer and I am glad to report that the Greek People have reviewed, deliberated and accepted the cost it entails. I am hereby authorized to report to you that the People's Republic of Greece stand ready to finalize this agreement with Damen Group. The grand total of $1,201,662,000 has already been deposited to the Special Funds Treasury, and we await the completion of the order to forward the payment to you.​

My government and the Greek People, through their Citizens Assembly, have also been informed of your intention to construct a Damen facility in Greece. The benefits of such a move are clear to us. You can inform Mr. Damen that, on principle, we would not object to hold talks about an investment project.​

Sincerely yours,
Xenophon Gallos
//si.//
Minister for Shipping and Trade