He said the company's home market in Europe could again be subdued, with modest government spending and pressure on margins.

The company's larger ships are mainly engaged in short term projects with low price levels, a problem which could be rectified by a settlement of sand winning rights agreements with the governments of Malaysia and Indonesia, the absence of which continues to freeze major land reclamation works in Singapore.

Van Gelder said that as a result of organisational adjustments introduced in 2004, Boskalis will be able to make considerable savings this year, with satisfactory capacity utilisation and a healthy cash flow expected. Investment would be considerably lower than in recent years now that hopper fleet renewal and expansion had been completed.

He emphasised that long term prospects are favourable, with the need for waterline infrastructure continuing to be directly related to the growth of global trade, tourism and population plus the shortage of space in many densely populated coastal regions.

Boskalis will publish its full annual results on 15 March.

MJ Information No: 20203