mhi 501 f disposition planning with the shipment of two of the four units from mhi scheduled for august and no viable place to ship them , our exposure to increasing costs associated with these units will start to climb quickly . we need to move agressively to minimize our risk in this position .
based on discussion with a number of people , i would strongly recommend that we make full efforts to sell units 1 and 2 as quickly as possible . john garrison has identified a number of potential buyers , and i believe that brett wiggs in in communication with one or more of them as we speak .
we should inform mhi that we will now target unit 3 for fort pierce , given the slowdown in the fort pierce schedule and the inability to get further reductions in pricing from mhi on unit 1 . if we also drop the dual fuel requirement for fort pierce , we should provide some project savings to that project . prior to informing mhi , we shoud have jackson chaeng status the auxiliaries for unit 3 so we have a basis for understanding any appropriate cancellation costs .
i also recommend that we tentatively target unit 4 for tallahassee , unless sale of units 1 and 2 were contingent on delivering a 3 rd unit to a buyer . in the next three weeks we will review tallahassee versus best turbine fit and availability of alternative equipment to determine if we want to continue to target unit 4 to that project .
finally , mhi has requested that we allow an extention of ship date for unit 1 from august 2 to the end of august . i think it is in our best interests to agree to that directly , given that we can ' t tell them where to ship it and would immediately face claims for storage costs if we insist on an august 2 ship date . we should ask that they forgo storage costs on auxiliaries until the later ship date .
probably everyone knows some of this , and some know all of this , but hopefully the overall picture is of value .
thanks !
mike coleman
mhi 501 f disposition planning
with the shipment of two of the four units from mhi scheduled for august and no viable place to ship them , our exposure to increasing costs associated with these units will start to climb quickly . we need to move agressively to minimize our risk in this position .
based on discussion with a number of people , i would strongly recommend that we make full efforts to sell units 1 and 2 as quickly as possible . john garrison has identified a number of potential buyers , and i believe that brett wiggs in in communication with one or more of them as we speak .
we should inform mhi that we will now target unit 3 for fort pierce , given the slowdown in the fort pierce schedule and the inability to get further reductions in pricing from mhi on unit 1 . if we also drop the dual fuel requirement for fort pierce , we should provide some project savings to that project . prior to informing mhi , we shoud have jackson chaeng status the auxiliaries for unit 3 so we have a basis for understanding any appropriate cancellation costs .
i also recommend that we tentatively target unit 4 for tallahassee , unless sale of units 1 and 2 were contingent on delivering a 3 rd unit to a buyer . in the next three weeks we will review tallahassee versus best turbine fit and availability of alternative equipment to determine if we want to continue to target unit 4 to that project .
finally , mhi has requested that we allow an extention of ship date for unit 1 from august 2 to the end of august . i think it is in our best interests to agree to that directly , given that we can ' t tell them where to ship it and would immediately face claims for storage costs if we insist on an august 2 ship date . we should ask that they forgo storage costs on auxiliaries until the later ship date .
probably everyone knows some of this , and some know all of this , but hopefully the overall picture is of value .
thanks !
mike coleman