Maritime News Headlines
Starting in September 2005, the Headlines pages have been combined with the Comment pages in a new News and Comment page: please click here to go to the new page and here to go to the summary Comment page for links to the old Comment pages.
August 2005
The Office of Naval Research has awarded a $9.7mm contract to Alaska Ship and Drydock Inc., of Ketchikan AK, for the construction of an experimental vessel, with delivery in October 2007 (8/27). The contract includes options that bring the potential contract value up to $29.9mm. Read the DefenseLink announcement here.
Crowley Maritime Corporation has exercised options on its current contract with VT Halter Marine for four more 185,000-barrel ATBs, to be delivered in 2007 and 2008 (8/26).
A lawyer from the offshore industry, Julie Nelson, has been appointed General Counsel of the U.S. Maritime Administration (8/26). Note that this is not a recess appointment because this position does not require Senate approval. Ms Nelson was previously General Manager and Maritime Contracts Attorney of Oceaneering International. Read MARAD's announcement here.
K-Sea Transportation, Inc., has bought Sea Coast Towing from Saltchuk Resources for $81mm (8/26). Read K-Sea's press release here.
N.O.A.A. has awarded a $13.4mm contract to Todd Pacific Shipyards for conversion of the former USNS Capable (T-AGOS 16) - built by Halter Moss Point in 1989 - to an ocean exploration ship (8/26). The redelivery date of the renamed "Okeanos Explorer" is in the summer of 2007.
The Base Realignment and Closure Commission (BRAC) had a rush of blood to the head and reprieved both the Portsmouth Naval Ship Yard and the New London Submarine Base (8/26).
The Nantucket Steamship Authority has awarded a $9.57mm contract to Gladding-Hearn Shipbuilding for the construction of a 350-passenger fast ferry (8/26). The new ferry will be delivered in 2007 and will replace the Derecktor-built, Nigel Gee-designed "Flying Cloud", which cost $8mm in 2000. Read the story in "Workboat" magazine here.
Metro Machine of Pennsylvania, which also operates a ship scrapping operation in part of the former Philadelphia Naval Ship Yard, has apparently decided not to renew its lease of the shipyard in Erie (8/19). The facility, which includes a covered graving dock, was built by Litton Industries in the 1970s to build lakers, but only ever built the midbody of one.
Northrop Grumman Ship Systems will lay off about 900 shipyard workers this year, in addition to the 120 designers and drafters who have already gone (8/19). This contrasts strangely with the company's pleas to the State of Mississippi for cheap loans for facilities improvements to accommodate an expected increase in the workforce of 2,000. No press release, naturally, but read the local paper's report here.
In a curious new trend in naval shipbuilding finance, Northrop Grumman Newport News has started construction of a ship two years before it expects to get the contract for it (8/13). The ship is, of course, the first of the Navy's CVN-21 class of aircraft carrier, which will be so mind-bogglingly expensive that the Navy has been forced to devise a whole lot of new ways of concealing its true cost from the taxpayers. Read Newport News' self-congratulatory press release here. Read the Navy's puff piece here. And read the Virginia Pilot's coverage here and here.
A.P. Moller has decreed that once the merger of Maersk SeaLand with P&O NedLloyd is completed in February next year, the company will be renamed Maersk Line, and the name SeaLand will disappear (8/12). Read the announcement here.
Maritrans' 10-Q reports that it has taken delivery of the rebuilt M209 from Tampa Bay Shipbuilding and has contracted for reconstruction of Ocean 210 and Ocean 211, at a price of about $30mm each, with redeliveries scheduled in 3Q 2006 and 2Q 2007 (8/5). Read their announcement in the News Releases section of the Investor Relations area of their web site here.
No formal announcement but reliable sources say that Otto Candies has ordered a 280-ft ROV SIM support vessel from Bender Shipbuilding, for delivery in early 2007 (8/5).
MARAD's auction produced no buyers for the coastal cruise ships "Cape May Light" and "Cape Cod Light", despite the low reserve price of only $12mm each (8/5). MARAD did, however, take ownership of the latter ship, relieving its builder, Atlantic Marine, of a burden. A new sales effort will now be mounted, leading to a second auction.
Seabulk Tankers has sold its two foreign-flag product carriers, "Seabulk Reliant" and "Seabulk Trust", to Greek owners for about $43mm each (8/5). It bought them in February last year for $31mm each.
Maritrans has time-chartered the single-hull product carrier "Sabine Eagle" (now called "Seabrook", but originally "Falcon Leader", Bath Iron Works hull #404) (8/5). The three-year charter runs to the ship's OPA90 drop-dead date. Read their announcement in the News Releases section of the Investor Relations area of their web site here.
July 2005
Rumor mill department #3: I hear that Keystone Shipping may be for sale (7/30). Potential buyers are said to be (a) Crowley and (b) Seacor. Who's heard what? Confirmation please.
Rumor mill department #2: I hear that Atlantic Marine Holdings may (once again) be looking for a buyer for its shipyards in Mobile AL - Alabama Shipyard and Atlantic Marine Mobile (7/30). One potential buyer might be Manitowoc, which obviously needs a Gulf Coast operation. Who's heard what? Confirmation please.
Rumor mill department #1: I hear that BAE Systems, which recently acquired U.S. Marine Repair as part of United Defense Industries, does not want to be in the the ship repair business (although I can't imagine why not) and is looking for a buyer for the group, which includes the former Norshipco, Southwest Marine, etc (7/30). Who's heard what? Confirmation please.
MARAD has sent two more more old ships to the scrapyard (7/30). Neptune (originally William H. G. Bullard) (ARC 2) and Albert J. Myer (ARC 6) were both built by Pusey & Jones, in Wilmington DE, for the Army and delivered in 1946; Neptune was P&J's hull #1108 and Myer was hull #1109. They were laid up until acquired by the Navy in 1953. Read the announcement here.
Overseas Shipholding Group (OSG) will substitute three ex-Stelmar product carriers for the ships that it had agreed to charter from Maersk for its US-flag foreign-trade service (7/22). In addition, the company has revealed that it will not replace its one US-flag car carrier, "Overseas Joyce", when it becomes too old for MSP subsidies in 2007.
MARAD has sent five more old ships to the scrapyard (7/22). Sunbird (ASR 15) was built by Savannah Machine in 1946; Mizar (AK 272) was built by Avondale in 1953 (hull #803); Tioga County (LST 1158) was built by Bath Iron Works in 1958 (hull #318); Wahkiakum County (LST 1162) was built by Ingalls in 1958 (hull #574); and Wabash (AOG 4) was built by Sea-Tac Shipbuilding in 1943 (hull #15). Mizar is the most interesting one of these five: the DANFS says that Mizar, in her later life as AGOR 11, "found the hull of Thresher, ... played a key role in the location and recovery of an H‑bomb lost off Palomares, Spain ... (and) discovered remnants of ... Scorpion (SSN‑589)". Later it was Mizar that found the French Eurydice and the Soviet K-129. Read the announcements here and here.
MARAD has approved the sale of Rowan Company's jack-up "Rowan Texas" to the Indian drilling contractor Alban Chiles Offshore (7/22). The LeTourneau jack-up was built in Vicksburg MS in 1973. Read the MARAD announcement here.
The Navy has awarded a $110mm sole-source cost-plus contract to Northrop Grumman Ship Systems, (NGSS), for advanced planning, long-lead-time material, systems engineering and special studies for the first of the next class of amphibious assault ships, designated LHA(R) (7/16). Read the DefenseLink announcement here.
With the acquisition of United Defense Industries by BAE Systems, a foreign company, U.S. Marine Repair has become BAE Systems Ship Repair, (another ugly, cumbersome corporate name) (7/14). BAESSR is the largest U.S. ship repair firm by far and a key player in maintenance of both the Atlantic and the Pacific Fleet.
The Coast Guard has terminated its contracts with the Deepwater program contractor for conversion of the 110-foot "Island"-class patrol boats to 123-foot boats (7/14). Only 8 of the 49 boats have been converted so far: the Commandant told a congressional hearing last month that they "did not provide needed ... capabilities". The work was worth about $4 million per boat and was being performed by a joint venture of Bollinger Shipyards and Halter Marine.
The "Ecology"-class crude carriers "Kenai" and "Tonsina", built by Sun Ship in 1978/79, have now been transferred to ExxonMobil, as reported here months ago, and renamed "S/R Sierra" and "S/R Kodiak". The ships will be dry-docked in Singapore before being transferred.
The T-5 tanker "Gus W. Darnell" has been sold to U.S. Shipping Partners (7/14) for about $25 million. The 20-year-old 240,000-bbl, double-hull product carrier was the first of five built by Tampa Shipyards, the other four having been bought by the Navy two years ago. The ship will be dry-docked in Singapore before being transferred.
An unusual settlement has been reached of their dispute between Trinity Industries and Marquette Transportation concerning 84 inland hopper barges that were allegedly improperly painted (7/14). Trinity will build 100 new barges for Marquette at an undisclosed price. Trinity will reactivate its Port Allen LA shipyard for the project. Read Trinity's press release here.
Scorpion Offshore, a start-up rig operator based in Houston, has ordered two LeTourneau Super-116 jack-ups from Keppel's AMFELS shipyard, in Brownsville TX (7/6). The contract price per rig is given as only $87mm, presumably because Scorpion is buying a lot of engineering and material directly from Letourneau. Deliveries will be in 2007 and 2008. Scorpion has an option for a third rig.
Kjell Inge Rokke, Chairman and principal stockholder of Aker Yards, the "brains" behind Kvaerner Philadelphia Shipyard and every Pennsylvania politician's good buddy, was sentenced to 120 days in jail and a fine of NOK 100,000 this week, for bribery and corruption (7/1) He only has to serve 30 days of the jail term, however, and not until after he has taken his current vacation in the Mediterranean. And NOK 100,000 is only about $15,000.
Aeronautical engineer Phil Teel takes over today from self-aggrandizing boat driver Phil Dur as President of terminally screwed-up shipbuilder Northrop Grumman Ship Systems (7/1).
MARAD has told Tradewinds that it is planning an auction of the two coastal cruise ships - "Cape May Light" and "Cape Cod Light" - built by Atlantic Marine in 2001 for the ill-fated American Classic Voyages (7/1). The contract price for their construction was $45mm per ship: MARAD is reported to be willing to sell them for anything over $15mm each.
The Navy today transferred USNS Sirius (T-AFS 8) to MARAD to serve as training ship for the Texas Maritime Academy (7/1). She will presumably be renamed "Texas Clipper". Sirius is one of the few naval vessels to be foreign-built. She was built in England by Swan Hunter in 1966 as RFA Lyness (A-339). After 15 years with the Royal Navy, she was acquired by the US Navy in 1981 and converted to an AFS by Braswell Shipyards, being redelivered in 1983. Does Bush know that Texas' cadets are being fobbed off with a 40-year-old ship?