Maritime News and Comment

January 2006

   NASSCO GETS NINTH T-AKE.  The Navy has exercised a option on its contract with NASSCO for the construction of the ninth of the "Lewis and Clark" class of combat logistics ships, (T-AKE).  The contract price is $317.1 million and the contract delivery is May 2009.  Read the DefenseLink announcement here.  January 30, 2006.

   EB AND NEWPORT NEWS GET EIGHTH SSN.  The Navy has exercised a option on its contract with Electric Boat for the construction of the eighth of the "Virginia" class of attack submarines, (SSN).  The contract price is a mind-numbing $1,108.8 million and that doesn't include amounts previously awarded for Advance Procurement.  A  lot of this work gets to be subcontracted to Newport News, since we have forsworn the idea of competition in naval shipbuilding.  The contract delivery is a similarly mind-numbing April 2014.  I think it's time to do a little analysis of the state of this program.  Read the DefenseLink announcement here.  January 30, 2006.

   MORE GROWTH AT CHOUEST.  Edison Chouest Offshore has announced several new developments that clearly indicate their continued commitment to growth.  First, they plan to build two more 280-foot AHTSs and one more 348-foot AHTS.  Second, they plan to build another nine crew-supply boats at Breaux Brothers.  Third, they plan to build two 245-foot liftboats at Bollinger, (as we have already reported).  In a parallel development, the Biloxi Sun-Herald reports that Chouest is again looking at establishing a shipbuilding facility on the Industrial Waterway in Gulfport.  January 25, 2006.

   T-AKE 3 NAMED FOR ASTRONAUT.  The Navy has announced that the third ship of the "Lewis and Clark" class of combat logistics ships will be named for the distinguished naval officer, astronaut and NASA administrator, RADM Alan B. Shepard, Jr.  The future USNS Alan Shepard is being built by NASSCO.  Read the DefenseLink announcement here.  January 24, 2006.

   NAVY SELECTS T-AGM FINALISTS.  The Navy has selected Bender Shipbuilding, Marinette Marine and VT Halter Marine to perform Phase I of the T-AGM replacement program, which involves the development of preliminary designs and proposals for detail design and construction.  All being well, one of these three fine shipbuilders will get to build the resulting ship, which will replace the USNS "Observation Island", (T-AGM 23), which was originally a Mariner-class cargo liner, built in 1952 in Camden NJ by New York Ship.  Read the SBA announcements here.   January 24, 2006.

   BOLLINGER DELIVERS TWO TO BORDELON.  Bollinger Shipyards has delivered two 163-foot supply boats, the "Sarah Bordelon" and the "Marcelle Bordelon", to Bordelon Marine.  Read Bollinger's press release here and see picture to the right.  January 24, 2006.

   HORNBECK BARGE LEAKS CARGO IN NEW HAVEN.  The small (3275 GT) single-hull tank barge "Energy 5501", was damaged below the waterline in New Haven harbor on Saturday and spilled a small quantity of gasoline.  The spill has since evaporated and the barge has headed to a repair yard.  January 24, 2006.

   US SHIPPING IN TALKS WITH NASSCO.  U.S. Shipping Partners, having predictably failed to build four large ATBs at unqualified and inexperienced SENESCO, is now talking about self-propelled product carriers with NASSCO.  From the ridiculous to the sublime.  The design is said to be coming from Daewoo, in a deal similar to that between Aker Philly and Hyundai Mipo.  Any bets on what these ships might cost?  $120mm?  More?  January 20/22, 2006.

   CARNIVAL SHIPS TO REFIT IN MOBILE.  Two of the three Carnival cruise ships chartered by FEMA as accommodation for Katrina evacuees, "Ecstasy" and "Sensation", will be undergo multi-million-dollar refurbishments by Atlantic Marine Mobile.  The third, "Holiday", will go to Grand Bahama Shipyard, but another, non-FEMA, ship will also be refurbished by Atlantic, after the first two are done.  Read Carnival's announcement here.  January 20, 2006.

   BOLLINGER TO BUILD 10 PSVS FOR RIGDON.  Bollinger Shipyards and Rigdon Marine announced today that Bollinger will build ten 190-foot platform supply vessels, (PSVs), for the New Orleans-based operator.  The design is by Guido Perla: see picture to the right.  Read Bollinger's announcement here.  January 20, 2006.

   RB-M AWARD PROTESTED.  The Coast Guard has revealed that pre-award protests have been filed on the long drawn out Response Boat - Medium, (RB-M), procurement - it started in 1999 - and that the award is postponed until the protests have been resolved.  Final proposals were submitted in August, so the Coast Guard must have been close to making an award, (not that the Coast Guard ever moves really fast.)  The three finalists are Marinette Marine, of Marinette WI, (with Kvichak Marine Industries, of Seattle WA, as subcontractor), Textron Marine & Land Systems, of New Orleans LA, and Ocean Technical Services (OTech), of Harvey LA.  January 19, 2006.

   THAD ALLEN TO BE COMMANDANT.  The White House has announced the nomination of VADM Thad Allen, currently Chief of Staff of the Coast Guard and the man in charge of the Katrina/Rita clean-up, to be Commandant of the Coast Guard.  Read the White House's announcement here.  Sounds like a good choice to me.  January 19, 2006.

   HORIZON SHIP ON FIRE IN PORT ELIZABETH.  One of Horizon Lines' state-of-the-art containerships, the 33-year-old "Horizon Hawaii", caught fire today in Port Elizabeth when a obviously highly skilled worker set fire to the insulation in one of the ship's reefer holds.  He was using a burning torch to try to free a container stuck in the guides.  What a classy outfit.  January 19, 2006.

   BENDER TO INCREASE CAPACITY.  Bender Shipbuilding has told the Mobile Register that it plans to increase its new construction capacity by about 40% in response to increased demand from the market.  According to the article, Bender pays engineers $75,000 and managers $60,000: this I decline to believe, even of Bender, who are well known for doing strange things.  Read the article here.  January 19, 2006.

   MARITRANS TUG "VALOUR" LOST.  The tug "Valour" separated from its tow in 20-foot waves off Cape Fear last night and was lost.  Three of the crew are dead.  The tug's barge, M-192, loaded with 135,000 barrels of No. 6 fuel oil, was adrift for a while but has been retrieved by the "Justine Foss".  Read Maritrans' announcements on the News Releases segment of its web site, here.  Read the Coast Guard's announcements here.  January 18/19, 2006.

   SANBORN TO RUN MARAD.  The White House has announced the nomination of an experienced and highly regarded shipping industry executive, and another King's Pointer, naturally, David Sanborn, to be Maritime Administrator.  Well, good.  January 18, 2006.

   BOURBON INVESTS IN RIGDON MARINE.  France's Groupe Bourbon has invested $9mm to increase its equity position in Rigdon Marine and to help leverage the construction of ten more PSVs.  Read Groupe Bourbon's announcement here.  The ten boats built by Bender Shipbuilding are all now in service and Rigdon is rumored to be negotiating ten more, to be built by Bollinger.  Simultaneously and presumably not coincidentally, Rigdon Marine, LLC, has become Rigdon Marine Corporation, and moved from an office in Nawlins' Garden District to one on the river in Destrehan.  Onward and upward.  January 18, 2006.

   MSC BUYS THREE MORE MPS SHIPS.  The Navy has announced that it has exercised options to buy three of the 13 original maritime prepositioning ships, (MPS), for $70mm each.  The three, which are owned by Philip Morris, are the "PFC Dewayne T. Williams", "1LT Baldomero Lopez" and "1LT Jack Lummus", all built by Quincy 20 years ago.  Read the DefenseLink announcement here.  The Navy is committed to buying all 13 of these MPS ships as they come to the final five-year term of their charters, always supposing that the Congress will provide them with the necessary funds.  This year, the Congress gave them $250mm. And, in case you were wondering, the price is arrived at by independent valuation, although in this case the valuation was somewhat less than $70mm and the Navy had to sweeten the pot because it didn't get the money from the Congress until after the drop-dead date for closing the deal.  The next two ships they will buy will be the other two Quincy-built ships, which are owned by Household Finance.  January 17/19, 2006.

   HALTER GETS ITS FOURTH FSV.  N.O.A.A. has exercised its third and last option with Halter Marine and the Moss Point shipyard will get to build the fourth of the "Oscar Dyson" class of fisheries survey vessels.  The value of the contract change is about $30mm and the ship will be delivered in the second half of 2008.   Read the ST Engineering press release here.  Pictured below is the launch of the second of the class.  January 17, 2006.

   DDG 106 TO BE NAMED FOR ADM STOCKDALE.  The Navy has announced that DDG 106 will be named USS Stockdale, in honor of VADM James B. Stockdale, a real hero, who died recently.  Read the Navy's press release here.  January 16, 2006.

   SPARROWS POINT TO BE LNG TERMINAL?  The once-great shipyard at Sparrows Point on the Patapsco River connecting Baltimore Harbor with the Chesapeake Bay may become an LNG import terminal: AES Corp. has revealed a $400mm plan to build the terminal on 60 acres of the former Bethlehem Steel shipyard.  January 16, 2006.

   USS SAN ANTONIO COMMISSIONED.  The long and painful saga of the design and construction of the first of the "San Antonio" class of amphibious assault ships is finally over.  USS "San Antonio", (LPD 17), was commissioned today in Ingleside, Texas, in the presence of former President George H. W. Bush.  Read Northrop Grumman's press release here.  Pictured to the right is the ship itself, looking good, even though partly obscured by some excellent field guns.  It seems that they finally got around to painting both sides.  January 14/17, 2006.

   BOLLINGER TO BUILD LIFTBOATS FOR CHOUEST.  Edison Chouest Offshore has contracted with Bollinger Shipyards for the construction of two 245-ft lift boats.  Deliveries are scheduled for March and June of 2007.  Read Bollinger's press release here.  January 14, 2006.

   AKER TAKES CONTROL OF ALSTOM MARINE.  This column usually confines itself to news of the maritime industry in the U.S., but here's something irresistible.  Aker Yards, of Norway, which got $1,000mm or so from the German taxpayers to revitalize two former East German shipyards, several hundred more from the British taxpayers to revitalize an antiquated Scottish shipyard, and then $400mm or so from the Pennsylvanian taxpayers to revitalize the former Philadelphia Naval Shipyard, has done it again, this time at the expense of the French taxpayers, or at least of the stockholders of the big French engineering group, Alstom. 

Alstom and Aker are creating a new company to own and operate the shipyards in St. Nazaire and Lorient that together make up Alstom Marine.  Alstom is contributing the assets of the two shipyards, which must be carried on their books for at least €1,000mm and probably quite a bit more, plus €100mm in working capital, for 25% of the new company.  Aker is contributing €50mm for the other 75%.  What a deal!  But that's not all, as they say in those hysterical TV ads.  First, Alstom will lend the new company an additional €350mm in working capital.  Second, the new company will complete Alstom's three long delayed LNG carriers as a subcontractor, presumably leaving Alstom with all the contractual risk.  Third, the new company will take over Alstom's four profitable cruise ship contracts, leaving Alstom with only 25% of the profit.  Finally, Alstom will sell its 25% to Aker in 2010 for "up to" €125mm, depending on the company's performance over the next five years.

French Economy and Finance Minister Thierry Breton hailed the agreement, saying it would make Chantiers de l'Atlantique "the strongest company in the world in its sector"!  On the other hand, Alstom Marine employee and CGT union member Louis Dronval said: "We cannot let this happen. Our industrial and national heritage should not disappear, sold off to foreign capitalists."  On quel planet do these gents find themselves?

Now, let's not be too cynical here.  I'm sure that the French workforce will get on famously with its new Norwegian managers, just as at Aker Philly.  I'm sure that in no time Aker St. Nazaire will be as efficient as, say, Aker Philly.  And I'm sure that the new company will make lots of money, just like Aker Philly.  January 8, 2006.

   AMFELS GETS FIFTH JACK-UP ORDER FROM SCORPION.  Scorpion Offshore has exercised an option on its contract with AMFELS for a fifth LeTourneau Super 116 jack-up.  This one is for delivery in November 2008.  January 8, 2006.

For links to comment on earlier maritime news, please go to News and Comment

If you have comments or questions, suggestions or complaints, please e-mail me.