DOT AWARDS $42 MILLION IN FERRY GRANTS

SecDoT has announced another $42 million in grants for ferry projects, i.e., in addition to the $68 million announced in July.  Read the announcement here and see the full list below.  September 30, 2009.

ORANGE TO BUILD ANOTHER FOR NCDOT

The North Carolina DoT has awarded a contract for a Sound-class ferry to Orange Shipbuilding, which has previously built two boats for this customer.  The price is $13 million, with delivery by June 2011.  September 30, 2009.

TANKER CLOSES LOWER MISSISSIPPI

The Aframax tanker Eagle Tucson is aground at around Mile Marker 3 at Head of Passes and the river is closed.  Read the report in the JoC here and the Coast Guard report here.  September 28, 2009.

PORTLAND SNUBS MAINE BOATBUILDERS

The City of Portland has just taken delivery of a new fireboat, a splendid boat, but built in Nova Scotia.  I guess that the city fathers of Portland have forgotten that there are boatbuilders in Maine, several of which are getting financial help from the Maine taxpayer.  September 28, 2009.

SEACOR, NASSCO AND UNSECURED CREDITORS ALL OBJECT TO US SHIPPING'S PLAN

Seacor has filed an objection to US Shipping's proposed reorganization plan.  Mr. Fabrikant appears to be a mite teed off with Mr. O'Kelley's various misleading statements.  I think he has a point.  Read Seacor's objection here.  Meanwhile, NASSCO has filed an objection to US Shipping's notice of rejection of the construction contract for ships 5 through 9.  NASSCO says that USS has breached the contract and that NASSCO has the right to "immediately" assign it to a third party.  Interesting!  Who can they have in mind, do you suppose?  Read NASSCO's objection here.  Finally, the Official Committee of Unsecured Creditors has filed an objection to the reorganization plan on the grounds that they get screwed.  Who can blame them?  Read their objection here.  September 28, 2009. 

OIL SPILL FROM STOLT TANKER OFF SAVANNAH

The Coast Guard reports that the Stolt Vision has created a two-mile-long oil spilt off Savannah.  Read the announcement here.  Apparently the ship's anchor penetrated a fuel tank while being lowered.  While being lowered?  Fuel tanks in the bow?  What?  September 28, 2009.

OIL SPILL IN HOUSTON SHIP CHANNEL

The Coast Guard reports that the 17,000-dwt German-owned chemical carrier Chemical Supplier collided with the 15,500-barrel tank barge Buffalo 251 near Brady Island yesterday.  Read the announcement here.  September 26, 2009.

OIL LEAKING FROM SUNKEN LIBERTY SHIP OFF TEXAS

The Coast Guard reports that oil is leaking from the sunken Liberty Ship William Beaumont about six miles off Texas Point.  Read the announcement here.  Read the report in the Houston Chronicle here: note that it actually references our sister web site, ShipbuildingHistory.com.  September 26, 2009.

SWIFTSHIPS GETS FMS CONTRACT

As predicted here on July 29, Swiftships has won an FMS contract to build nine 35-meter patrol boats for the Iraqi Navy.  The value of the contract is $180 million, with completion by the end of August 2012.  Read the DefenseLink announcement here.  September 26, 2009.

BAE NOW HAS MONOPOLY OF U.K. NAVAL SHIPBUILDING

We should be thankful that we still have two naval shipbuilders, unsatisfactory though one of them is.  In the U.K., the last remaining competitor for BAE Systems, VT Group - the former Vosper Thornycroft - has sold its shipbuilding division to BAE.  Read the announcement here.  What can the useless Brown government be thinking to allow naval shipbuilding to be the monopoly of a single company, especially a company with such a shady reputation?  The British taxpayer would be better off if naval shipbuilding were to be nationalized.  By the way, Admiral Rickover was preaching nationalization of U.S. naval shipbuilding before John Lehman shoved him out.   September 25, 2009.

NEW 5-YEAR SC,N PLAN WILL HAVE MAJOR CUTS

According to Bloomberg News, the Navy's new five-year plan will feature some major cuts.  In addition to the LCS program changes revealed last week, two programs will be cancelled altogether - the five-ship Mobile Landing Platform (MLP) program and the two-ship LCC replacement program.  On top of that, one LHA, one SSN and two JHSVs will be cut.  Read the story here.  September 24, 2009.

SEACOR TO RAISE $250 MILLION

Seacor has announced that it will sell $250 million worth of 7 3/8 % Senior Notes, the money to be used for "general corporate purposes".  Read the announcement here.  September 22, 2009.

NAVY LOOKING FOR A HYDROGRAPHIC SHIP FOR OMAN

NAVSEA has released an RFP for a hydrographic survey ship for Oman.  Read the announcement here.  Note that it's a set-aside for small business.  The design is that of the F. G. Walton Smith, the University of Miami's research ship, pictured on the right, which was built in 2000 by Eastern Shipbuilding.  Eastern would be the favorite for this contract, except that they are no longer a small business.  There could still be several competitors.  September 21, 2009.

CBP WITHDRAWS PROPOSAL FOR REVISION

The Customs and Border Patrol Service, (CBP), has withdrawn its controversial proposal for changes in the way certain Jones Act regulations are interpreted, but makes it clear that it will publish a new proposal soon.  Read the announcement here.  September 21, 2009. 

AKER PHILADELPHIA LOOKS FOR A BAILOUT

Aker Philadelphia is looking for federal funds to secure a loan to allow it to build the next two product carriers in its current series.  Otherwise, as predicted here, it will soon have to start laying people off. and will close in 18 months.  Why don't they ask the Norwegian Government for help?  After all, this is essentially a Norwegian company, traded on the Oslo Stock Exchange, and almost all its stockholders are Norwegians.  You know, those smart guys from way up north who know so much more about the U.S. marine business than we do?  I say let 'em close.  If MARAD's got money for Title XI, let's use it to build some ships in U.S. yards.  September 18, 2009.

CONRAD GETS DREDGE

The Corps of Engineers has contracted with Conrad Industries for design and construction of a split-hull dredge, for $13 million.  Read the announcement here.  September 18, 2009.

SUGAR QUITS

The Chairman and CEO of Northrop Grumman Corporation, Ron Sugar, has resigned, although he's only 61, and will be replaced as Chairman by one of NG's independent directors, Lewis Coleman, who will serve on a non-executive basis, and as CEO by Wesley Bush, who is currently President and COO.  Read the announcement here.  Bush, who is only 48, is an EE from MIT.  September 17, 2009.

NAVY GETS A GRIP ON THE LCS PROGRAM, AT LAST

In a dramatic announcement - read it here - the Navy has cancelled the FY 2010 procurement of additional LCSs and will hold a new competition.  Marinette and Austal will each get to build the second ship for which they recently received contracts, but there will now be a down-select in 2010 and a new, presumably negotiated, FPIF contract for the winner.  That contract will be for two ships, with up to eight options spread over the following four years.  There will then be a competition - whatever next, an actual competition for a Navy ship! - in 2012 for a second source contract for five ships, spread over three years.  Then, in 2015, the two contractors will compete to be the sole source for the out-years of the program - that's not in the announcement, but trust me.  OK, good, finally a rational approach.  Now, consider who might be the second source:

• If the Lockheed/Fincantieri/Marinette steel-hull design is the winner, expect to see NGSB Pascagoula, GD Bath Iron Works and GD NASSCO competing for the second-source contract, but of these three, only GD NASSCO is likely to be cost-competitive with the second-tier yards.  We can certainly expect to see VT Halter Marine going after this one.  In addition, Bollinger might opt to go after it, giving up its role in the Lockheed team, but this would be a gamble.  And anyone who buys Bender in liquidation might consider going for it, although this seems a lot less likely.  And then there's Todd, who we tend to forget about because they haven't built much lately, but if they ramp their new construction capability back up to build ferries for WSF, they could well be interested in transitioning from there back into naval shipbuilding.

• If the GD Bath Iron Works/Austal aluminum-hull design is the winner, it's a very different story.  None of the yards mentioned in the previous bullet (except Bath, of course) have the aluminum capability and capacity needed to build these ships.  That goes for Marinette too: these ships are, in any case, too wide to be built on the Great Lakes.  Someone would have to build a new yard - could that be Bollinger's strategy? - although this would be a big gamble.  Alternatively, someone could team with an established aluminum boatbuilder, such as Swiftships, or, and here's a radical thought, a megayacht builder, such as Trinity Yachts.  None of these approaches fills me with much confidence.  In essence, there might not be any credible competition for a second-source contract.  Since almost everyone now agrees that the Austal design is clearly superior to the Marinette design, this could give the Navy a new problem.

Whatever happens, it will not be boring, will it?  September 17, 2009.

SEACOR MOVES ON US SHIPPING

Tradewinds reports that Seacor Holdings has offered $300 million for US Shipping's assets and been rebuffed.  This is a better offer than Rand Logistics' offer of $255 million, although that excluded the five oldest ships, and this would be much more acceptable to the charterers of US Shipping's ships.  But US Shipping seems determined to end up being liquidated.  September 16, 2009.

KEYSTONE TO TAKE THE SUNSHINE STATE?

There's a rumor that Keystone is going to send the Keystone Texas to the scrapyard in October, although she's fully employed and doesn't have to be OPAed out until December 2011,  So, it could be that APT has offered Keystone a good deal on the Sunshine State, which, it just happens, will be delivered in October and, as we mentioned below, does not yet have a charter.  September 16, 2009.  Other rumors say, however, that the Keystone Texas will be replaced by the Delaware Trader, although that ship OPAs out in 2012.  September 17, 2009.  Additional information: the Keystone Texas is currently loading a cargo of grain for Bangladesh, which just happens to be where the highest-priced scrapyards are.  September 17, 2009.  More up-to-date info: The Keystone Texas is in Tampa, but not loading grain or anything else.  September 21, 2009.

NASSCO FLOATS OUT THIRD TANKER

The third of the series of five product carriers under construction for American Petroleum Tankers was floated out of NASSCO's big dock on the weekend.  This is the only one of the five that does not have a charter.  September 13, 2009.

OILER HIT BY ROGUE WAVE

The Coast Guard reports medevacing four sailors from the USNS Kanawha, (T-AO 196), after she was hit by a rogue wave about 60 miles east of Virginia Beach.  Read the report here.  I don't see anything on any Navy web sites, but no doubt we will be hearing more about this soon.  September 13, 2009.

CANADIANS GO MAD

Only a few days after actually ordering some new ships - nine OPVs from Halifax Shipyard - the Canadian Government, which in recent years has allowed its domestic shipbuilding industry to all but disappear, today put out an RFP for four high-value ships - an Offshore Oceanographic Science Vessel (OOSV) and three Offshore Fisheries Science Vessels (OFSV).  Read the announcement here.  September 13, 2009.

MAKIN ISLAND MAKES IT TO SAN DIEGO

The USS Makin Island, (LHD 8), arrives in San Diego today after her five-month journey from Pascagoula, including going round the Horn in winter time.  Read the Navy's announcement here.  September 13, 2009.

RUMORS, RUMORS, RUMORS

My spies tell me that Shell is really, really unhappy with the American Heavy Lift construction program and wants to cancel the third ship.  In addition, it is said that they are pressing Richard Horner, the President of American Heavy Lift, to resign.   True?  Not true?  Anyone want to chime in?  And when is Atlantic Marine going to replace Ron McAlear?  And with whom?  I hear the name of a certain ex-Halter manager mentioned.  That brings us to Bender Shipbuilding.  No reorganization plan, right?  It's got to be a liquidation.  So, let's get on with it: that yard needs to be put back to work, with competent management, not allowed to fester.  Another yard in trouble is Aker Philadelphia: have they started laying people off yet?  What are they going to do?  And who's going to charter the third American Petroleum Tankers ship, which NASSCO will deliver soon?  NASSCO's going to be laying people off soon, too.  What are they going to do?  September 11, 2009.

GAO REVIEW OF USMMA'S FINANCIAL MANAGEMENT

The GAO has just published a report critical of the USMMA's financial management practices and MARAD's oversight.  Read it here.  September 11, 2009.

SECOND FRC TO BE NAMED GUARDIAN

The Coast Guard has let it be known that the second of the Sentinel class of FRCs will be named Guardian, (WPC 1102).  Are they going to be able to keep this naming pattern up?  Are there really 58 words in the English language for a type of sentinel? Send me your thoughts.  By the way, while we're on the subject of the FRC program, isn't it about time the Coast Guard executed the FY09 options?  September 11, 2009.

IT SEEMS TO HAVE BEEN A QUIET WEEK

No, I have not been on vacation - my whole life these days is a vacation - but I don't remember the last time a whole week went by with nothing to comment on.  Maybe things will pick up next week.  Who knows, we might even get a Defense Appropriations bill.  September 11, 2009.

CSX HITS THE SPOT

I love the new CSX ad on TV.  It shows a bunch of 53-ft tractor-trailers stuck in highway traffic and then backs up and shows a bunch of 53-foot containers barreling along on rail.  "How America moves today."  Except that on the left-hand side of the picture is a waterway, a waterway unencumbered by any traffic.  OK, why doesn't someone in the maritime industry take this ad and create a revised version with a couple of container barges on the waterway?  Oh, no, couldn't do that, could we?  September 4, 2009.

NEW BP DISCOVERY SAID TO BE DEEPEST WELL EVER

Transocean claims that the well drilled by its semi Deepwater Horizon - pictured at right - for the BP/Petrobras/ConocoPhillips field in the Keathley Canyon is the deepest ever.  It is in 4,132 feet of water and has a total depth of 35,055 feet.  Read Transocean's release here.  And read the specs of the Deepwater Horizon here.  This rig operates in 30-foot waves and 60-knot winds: now that's what I call high technology.  September 2, 2009.

WHITWORTH TO WASHINGTON MARINE GROUP

Jonathan Whitworth, the former CEO of Maritrans and OSG America, is the new CEO of Washington Marine Group, parent company of Seaspan International and Vancouver Shipyards, among other things.  Read the press release here.  September 2, 2009.

WAYNE MEYER DEAD

Retired RADM Wayne Meyer, the "father of AEGIS", died yesterday at the age of 83, only a month before the commissioning of the destroyer named for him.  Read his obituary in the LA Times here and his Wikipedia entry here.  A great man.  September 2, 2009.

WWII-VINTAGE TUG FOR SALE ON E-BAY

You know you always wanted one!  Click here and submit a bid.  September 1, 2009.

OSG REACHES AGREEMENT WITH ASC

OSG has announced that it has resolved its dispute with American Shipping Company, without revealing any details.  Read the announcement here.  What this means is clear as mud but I suppose it's good news.  September 1, 2009.