Fixed Assets

6 Months Ended

Jun. 30, 2011

Fixed Assets

Fixed Assets

Note 5 — Fixed Assets

Fixed assets consist of the following (in thousands):

Description	June 30, 2011			December 31, 2010
Vessels	$	709,480		$	594,718
Vessel improvements and other equipment		196,397			190,744
Deferred drydocking costs		32,127			30,530
Vessel construction in process					92,600
Other fixed assets		19,877			19,390
		957,881			927,982
Less accumulated depreciation and amortization		(386,106	)		(351,720	)
	$	571,775		$	576,262

The Company had individual contracts, with China Communications Construction Company Ltd. and Nantong Yahua Shipbuilding Group Co., Ltd. ("Shipyard"), to build six multipurpose vessels with retractable tweendecks.  In January and February 2011, the fourth and fifth vessels, named Omaha Belle and Comanche Maiden, respectively, were delivered.  The final vessel, Maya Princess, was delivered in May 2011.

The Company capitalized interest, including loan origination fees, of $0.2 million and $0.8 million for the three and six months ended June 30, 2011, respectively, and $2.0 million and $4.0 million for the three and six months ended June 30, 2010, respectively.   Capitalized interest and deferred finance costs are added to the cost of each vessel and are amortized over the estimated useful life of the respective vessel commencing on the date the vessel is placed into service.