INTENTIONALLY LEFT NK

56


9. Halter Moss Point Shipyard

The Halter Moss Point (HMP) facility is located on the Escatawpa River in
Moss Point, MS, a short distance from the Gulf of Mexico and Interstate 10.
Significant features of the HMP yard include: a protected, deep-water location;
large module fabrication and assembly platens; two launchways; lift capacity of up
to 272 metric tons; full range of outfitting services; and full-service warehousing
facilities. The original 30 acres of developed land was substantially increased in
1995 by the acquisition of approximately 10 acres of adjacent property which
included existing marine fabrication shops, platens and offices, and a 6O meter
launchway.

HMP is currently constructing the T-AGS 63 Oceanographic Survey ship, the
T-AGOS 23 Ocean Surveillance ship and the AGOR-25, an Oceanographic
Research Ship for the Navy. In addition, HMP is building a NOAA-AGOR
Oceanographic Research Ship, a 116 meter RO/RO passenger ferry for the Alaskan
Highway System and a 69 meter Anchor Handling Tug Supply (AHTS) vessel.

The Halter Moss Point facility is equipped and staffed to handle fabrication,
assembly and delivery of high complexity ships up to 146 meters in length by
20 meter beam. The shipyard maintains moveable heavy-lift crane capacity of up
to 272 metric tons.

The four-story main fabrication shop contains 929 square meters and is
fitted with a five-metric ton overhead crane serving its entire length plus an
extension at each end, and a nine-metric ton gantry crane. The pipe shop covers
855 square meters. The building is serviced by four one-ton jibs and a five-metric
ton overhead crane and contains a standard outfit of pipe fabrication tools and
equipment, including six pipefitter work stations. The combined carpenter shop
and electric shop contains 465 square meters. The carpenter shop and electric
shop carry a full range of standard tools and equipment necessary to support the
production effort. The main warehouse contains 1,858 square meters of modern
receiving and weatherproof storage space. Environmentally controlled warehouse
space for the stowage and test of sensitive equipment is available.

The HMP yard has a steel fabrication throughput capacity of 400 tons per
month. The pipe shop has the capacity to provide up to 22,859 meters of pipe per
year. These capacities will increase as activation of the newly acquired adjacent

facility takes place.

Another recent acquisition was a 217 hectare facility a short distance from
HMP which features 335 meters of protected bulkhead mooring, along with the
standard marine fabrication shops, equipment and offices that will be available to
provide production support as well as a final new construction outfitting site.

As of mid-1996, employment at Halter Moss Point held steady at about
330 employees.

22


REPORT ON SURVEY OF U.S.
SHIPBUILDING AND REPAIR FACILITIES

1996

Prepared By:
Office of Ship Construction

Division of Cost Analysis and Production


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4. Bath Iron Work: rporation

Bath tron Works Corporation (BIW), a wholly owned subsidiary of General
Dynamics Corporation as of September 1995, is located on the Kennebec River in
Bath, ME. The original iron foundry was established in 1826; it became Bath Iron
Works Ltd in 1884, and the first ship was delivered in 1890. Since then, this
shipyard has built over 240 U.S. Navy surface combatants and more than
160 commercial ships, including product tankers, containerships, roll-on/roll-off
ships, private yachts and fishing vessels.

Since 1968, BIW has delivered 22 commercial ships and 40 U.S. Navy
warships. In 1973, BIW became the lead yard for the FFG-7 PERRY class frigate
and delivered 24 of these ships. In 1982, the Navy selected BIW as the
second-source shipbuilder for the AEGIS cruiser program. The company built eight
CG-47 TICONDEROGA class cruisers and delivered the last one in 1993. Finally, in
1985, BIW won the competition for the design and construction of DDG-51
ARLEIGH BURKE class AEGIS destroyers, the U.S. Navy’s newest surface
combatant. The lead ship and nine follow-on ships have been delivered since
1991. As of December 31, 1996, 11 DDG’s were under contract with the last
delivery scheduled for 2002. In 1996, BIW was part of the team that was
awarded the design and construction contract for the first three amphibious
transport dock ships (LPD). BIW is slated to construct the third ship of the series.

The new construction facilities at the main shipyard feature three shipways;
Two can accommodate ships of 220 meters in length, one with a maximum beam
of 34 meters and the other a maximum beam of 39 meters. These ways are
serviced by a 200-metric ton level-luffing crane capable of erecting maximum
weight units on both shipways. The third shipway, which can handle a 210 meter
ship with a beam of 26 meters, is serviced by a 270-metric ton crane. Two
principal structural assembly buildings have 28 unit work stations: the larger
building, which also houses the panel line, is 390 by 40 meters and the smaller
one is 135 by 28 meters. The 130 by 65 meter pre-outfit building has 18 work
stations and is used for equipment installation after units are blasted and painted.
Three piers have an overall waterfront length of 680 meters.

BIW also operates three other industrial facilities. Two are located
5 kilometers away in East Brunswick. The Hardings Fabrication Plant, covering
15 hectares with 18,000 square meters of covered area, houses structural
fabrication and sub-assembly operations. The adjacent East Brunswick facility has
a total area of 24 hectares and includes two main buildings. One is a
113,000 cubic meter, climate-controlled, high-bay pallet-stacking warehouse.
The other is a combination pipe and sheet metal fabrication center, with over
11,000 square meters of covered work space. The BIW-operated Portland (Maine)
overhaul and repair facility is 50 kilometers from Bath and has a 61,000-metric ton
floating dry dock which can accommodate a vessel up to 257 meters by
41 meters.

As of mid-1996, the company employed about 7,500 compared to 8,300 a
year earlier.

12


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29


Name and Address

Maximum Ship Size

Berths/Piers

Remarks

{LOA--Beam)
SW--Shipway
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FD--Floating Drydock

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LL--Land Level Position

Usable Length

Longest
Total linear

1/ Type of work usually engaged in

2) Employment - Mid-1996

SL--Syncrolift Lengths are in Meters
WEST T
Shipbuilding Yards
Gunderson Marine Inc. 222X 32 SW 335 1/ Construction, conversion, and
4350 N.W, Front Avenue 335 repair - all types of vessels,
Portland, OR 97210
2) 132
National Steel & (2) 274X34 sw 305 1) Construction, conversion, and
Shipbuilding Co. 303X52 GD * 2210 repair - all types of vessels.
Harbor Drive & 28th St. 229X 42 FD
San Diego, CA 92186-5278 2) 4,085
*  Graving dock and piers at U.S. Naval

Station also leased, as required.
Portland Ship Yard 183 X30 LL 335 Li Ship construction, repair and
(Cascade General) 305X585 LL 3353 conversion - all types of vessels.
5555 N. Channel Avenue 198 X 26 FD
Building SO 247X 34 FD 2/ 902
Portland, OR 97217 351X55 FD
Todd Pacific Shipyards Corp. (2) 168X18 SW * 427 1/ Ship construction, repair, and
1801 16th Avenue, S.W. 128X19 FD 1834 conversion - all types of vessels.
Seattle, WA 98134 198 X26 FD

287X 41 FD 1,050

* Max. ship size is 168 X 29 meters
using two 168 X 18 meter SWs.

100


16. Portland Ship Yar. Neral

This 57-hectare shipbuilding and ship repair facility is located in
Portland, OR, on the Willamette River. The yard was developed from the World
War II Swan Island Shipbuilding facilities which delivered 1,076 oceangoing ships.
Today’s facility includes Dry Dock 4, the largest floating drydock in the Americas.

Projects in 1996 included reattaching a rudder horn which literally snapped
off the WADI SUDR, a bulk carrier owned by National Navigation of Alexandria,
Egypt. According to Cascade General, Lloyd’s of London Registry records indicate
that this was the first time a detached rudder horn had ever been successfully
reattached. Before the rudder horn could be reattached, the rudder, steering rams
and tiller had to be straightened and billet forged to make a new rudder stock.
Cascade General machinists realigned the entire rudder system and installed a
tepaired rudder support structure.

Additional work consisted of extensive repair and overhaul of the
USS INGRAHAM, USCGC POLAR STAR, USNS JOHN ERICCSON, PRINCE
WILLIAM SOUND, BT ALASKA, DENALI, KENAI, GREEN HARBOUR, DELAWARE
TRADER, POTOMAC TRADER, CHESAPEAKE TRADER, BATON ROUGE, SAN
FRANCISCO, COAST RANGE, SIERRA MADRE, BENICIA. Cruise ship projects
included Holland America’s ROTTERDAM and Princess Cruises’ REGAL PRINCESS.

Cascade General operates three drydocks. The largest two (No. 3 and
No. 4) can accommodate vessels up to 247 meters by 33 meters, and 351 meters
by 55 meters, respectively. A total of 3,078 meters of fully serviced pier space
with 17 whirley-type cranes are employed for outfitting. In 1986, a layberth
facility was added which can accommodate two 335-meter VLCCs in lay-up
status. The yard has 46,500 square meters of fully enclosed service shops and
warehouse space.

As of mid-1996 the shipyard employed about 900 people, down slightly
from a year earlier.

36


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61


14. National land Shi. ildin mpan

National Steel and Shipbuilding Co. (NASSCO), the largest shipbuilder on the
West Coast, participates in both commercial and U.S. Navy shipbuilding,
conversion, and repair markets. In the marine business since 1945, the company
now occupies 59 hectares on the harbor in San Diego, CA. In 1989, NASSCO
became an employee-owned company.

NASSCO has constructed tankers, ore-bulk-oil (OBO) carriers, very large
crude carriers (VLCC) up to 209,000 dwt, product carriers, destroyer tenders, a
large cable repair ship, a 1,910 TEU containership, special purpose ships and a
variety of Navy vessels. NASSCO conversion projects have included the
conversion of two 90,000 dwt tankers to 1,000-bed hospital ships (T-AH), three
containerships to Maritime Prepositioning Ships (T-AKX), and the reconstruction of
three former Sea-Land SL-7 containerships to Fast Sealift Ships (T-AKR) for the
Navy. Repair and overhaul work during the past few years consisted principally of
Navy contracts.

NASSCO has contracts to design and construct a series of AOE class Fast
Combat Support Ships for the Navy (one is currently under construction and three
have already been delivered). NASSCO also has contracts to convert three
containerships to military sealift ships (two are currently under conversion and one
has been delivered) and to design and construct six new military sealift ships (five
under construction and one option) for the Navy.

NASSCO's facilities include a building dock in which ships up to 303 meters
by 52 meters can be constructed. In addition, the company operates two inclined
building ways. Both can accommodate a maximum size ship of 274 meters by
34 meters. Cranes are available that can provide lifts up to 159 metric tons and
multi-lifts up to 236 metric tons. Berthing is available at 12 full-service berths that
can accommodate ships with drafts up to 11 meters and lengths up to
305 meters. NASSCO also operates a 25,400-metric ton floating drydock with a
beam of 41.5 meters.

NASSCO has a full-service machine shop, carpenter shop, sheet metal shop
and pipe shop with an automated pipe silo. The company’s steel fabrication and
assembly capacity is over 1,800 metric tons per week. There is also an automated
line for blasting and priming steel plates and shapes. In addition, NASSCO has two
electrical shops: one for electrical work and one for intricate electronics work.
NASSCO offers full-service marine engineering and naval architecture, utilizing the
latest technology, such as Computer-Graphics Augmented Drafting and
Manufacturing System (CADAM) and TRIBON.

As of mid-1996, the total labor force was about 4,000, down slightly from
4,500 a year earlier.

32


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64


MAJOR U.S. SHIPBUILDING AND REPAIR FACILITIES

(Vessels 122 m in ‘and Over)
Maximum Ship Size Berths/Piere Remarks
(LOA--Beam) Usable Length
SW--Shipway L/ Type of work usually engaged in

Name and Address

GD--Graving Drydock

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LL--Land Level Position
SL--Syncrolift

—bongest__
Total linear

2

Employment - Mid-1996

Lengths are in Meters

WEST COAST

Repair Yards with Drydock Facilities

Dakota Creek Indust 1, Inc. 122 X26 FD 305 1/ General ship repair.
820 Fourth Street 477
Anacortes, WA 98221 2/ 160
Giannotti Corp. 162X24 FO 198 1) Ship repair and conversion.
401 Alexander Avenue 533
Building 9588 2/ 220
Tacoma, WA 98421
Lake Union Drydock Co. 122X17 FO 305 L/ Ship repair and conversion.
1515 Fairview Avenue East 1446
Seattle, WA 98102 2/ 134
Maritime Contractors, Inc. 122X16 FO 213 1/ General ship repair.
201 Harris Avenue 351
Bellingham, WA 98225 2/ 135
San Francisco Drydock Co. 290 X44 FD 259 A/ Ship repair and overhaul.
Foot of 20th Street 213X239 FD 1018
San Francisco, CA 94120-7644 2/ 384
Southwest Marine, Inc. 200 X31 FD 213 1/ Ship repair, overhaul, and
P.O. Box 13308 127X19 FO 589 conversion.
Foot of Sampson Street
San Diego, CA 92170-0308 2/ 1,129
Graving dock at Naval Station can be
leased as required.
Southwest Marine, Inc. 122X17 FO 201 1/ Ship repair, overhaul, and
San Pedro Division 209 X27 FO 568 conversion.
985 So. Seaside Avenue
Terminal Island, CA 90731-7331 2/ 222

101


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84


DESCRIPTION.
AND

GENERAL ARRANGEMENT DRAWINGS

FOR
17 MAJOR U.S. SHIPBUILDING FACILITIES



Marinette Marine Corporation ..... 20... 00... eee eee eee
Exhibit 12 - Yard Drawing ... 2.20... 0 ee eee

Metro Machine of Pennsylvania, Inc. Industrial Products Division ...
Exhibit 13 - Yard Drawing .. 1... 0.0.0 cee eee

National Steel and Shipbuilding Company ...................4
Exhibit 14 - Yard Drawing .. 6.2... 6... cee eee

Newport News Shipbuilding ......... 0.00... ce eee ee eee
Exhibit 15 - Yard Drawing ...... 2.0... eee ee eee

Portland Shipyard (Cascade General) ......... 2... .0 2. eee uue
Exhibit 16 - Yard Drawing .... 2-0... 2 eee ee

Todd Pacific Shipyards Corporation - Seattle Division ..........
Exhibit 17 - Yard Drawing ....... 2.20... eee eee

Ship Repair Industry 2... ee eee
Repair (with Drydocking) Facilities ...... 0... 0... eee ee eee
Major Topside Repair Facilities ....... 0.0.0.0. cece eee eee
Shipbuilding Industry and Activities- 1996 .................000 08

Major Shipbuilding Facilities in the United States - Map
(Exhibit 18). ee eee

Major U.S. Shipbuilding Facilities - Number of Building Positions
by Maximum Length Capability (Exhibit 19) 2.2... 0.0... eee ee eee

Major U.S. Ship Repair Facilities - Number of Floating
Drydocks by Maximum Length Capability (Exhibit 20) ...............%

Shipbuilding Industry Workload Projection (Exhibit 21) .............-.

Commercial Ship Construction (Exhibit 22) 2.2... 6 ee


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79


A)

U.S. Department
of Transportation

Maritime
Administration

Report on Survey of
U.S. Shipbuilding and
Repair Facilities

1996



JAJOR U.S. SHIPBUILO! REPAIR FACILITI

(Vessels 122 m in Length ver
i ip Si: Berths/Piere Remarks
(LOA--Beam) Usable Length
SW--Shipway 1) Type of work usually engaged in
Neme and Address GD--Graving Drydock
FD--Floating Drydock Longest 2/ Employment - Mid-1996
MR--Marine Railway Total linear
SL--Syncrolift Lengths are in Meters
Shipbuilding Yards
NONE
Repair Yards with Drydock Facilities
Marisco, Ltd. 182X24 FD * ‘U/ Generel ship repair.
91-607 Malakola Road
Ewa Beach, HI 96707 2/110
* Leased from Port Commission.
Perez Y Cia., De 191X 24 GD 305 1/ General ship repair.
Puerto Rico., Inc. 853
P.O. Box 2209 2/131

San Juan, PR 00903

Topside Repair Yards

Honolulu Shipyard, Inc. 183 1/ General ship repair and overhaul.
P.O. Box 30989 183
Honolulu, HI 96820 2/ 190

105


Introduction 2. ke ee ee eee eee
General 06. ee ee eee ee
Major Shipbuilding Base 2... ee eet es

Descriptions and General Arrangement Drawings for 17 Major
U.S. Shipbuilding and Repair Facilities ©... 0... 0. cece eee

Alabama Shipyard, Inc. 6... ee ee ee eens
Exhibit 1 - Yard Drawing ... 1... eee ee ee

AMFELS, Inc... 6. ee te eee eee
Exhibit 2- Yard Drawing .. 6... ee ee eee

Avondale Industries, Inc - Avondale Shipyards Division .........
Exhibit 3 - Yard Drawing «6... cee eee

Bath Iron Works Corporation 1.6... .. cee eee eee
Exhibit 4 - Yard Drawing «6.0... ce ee ee

BethShip Sparrows Point Yard 2.6... . cece ee ee ees
Exhibit 5 - Yard Drawing «6... ee ee

Electric Boat Corporation. 2.0... . ce ee ee ee
Exhibit 6 - Yard Drawing «1... . eee

Fraser Shipyards, Inc. 2... 0. ee ee
Exhibit 7 - Yard Drawing «1... 6... cee eee

Gunderson, Inc. 2. ee eee ee
Exhibit 8 - Yard Drawing ©... 6... cee ee ee

Halter Moss Point Shipyard 2... ... ce eee eee eee
Exhibit 9 - Yard Drawing .. 1... ee ee eee

Ingalls Shipbuilding, Inc. 2... 6 ee ee eee
Exhibit 10 - Yard Drawing .. 1... 0... 0. ce eee eee ee





EXHIBIT II

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86


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$07) S1VIWALVW ONY S1NINOdWOD HOS /1/ bs) aDVds IOVHOLS ey) are2ipur jim se swoy) absey eu) 40 yons Ayorsq 15/7) LNAWdINOA ONY $1001 ANIHOWW 4O SWI HOP

81



EXHIBIT 2

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NAVY'S T-SHIP PROGRAM

The Navy’s T-ship program continued to be an important segment of ship construction
and conversion activity for U.S. shipyards. T-ships are auxiliary vessels funded by the
Navy budget but designed to be civilian-manned and under the control of the Military
Sealift Command. Since mid-1979, 16 U.S. private shipyards have been awarded
contracts for the construction of 66 new ships and the conversion of 36 existing vessels.
The initial contract value for these vessels totaled approximately $9.2 billion.

During 1996, there were three new T-ship contracts placed with U.S. shipyards.
Avondale Industries, Avondale, LA, received an order with an initial contract value of
$211.1 million to build one military sealift ship (T-AKR) and National Steel

Shipbuilding Co., San Diego, CA received two orders with a total initial contract value of
$407.0 to build two military sealift ships (T-AKR).

During 1996, deliveries included an ocean survey ship (T-AGS) by Halter Marine, Inc.,
Moss Point, MS and a fleet oiler (T-AO) by Avondale Industries, Avondale, LA, two
converted military sealift ships (T-AKR), one by National Steel Shipbuilding Co., and one
by Newport News Shipbuilding Co., one ammunition ship (T-AE) and one combat store
ship (T-AFS) by Norfolk Shipbuilding and Drydock Co.

As of December 31, 1996, 15 T-ships were under construction or on order at four
shipyards (Exhibit 27). The value of this orderbook is approximately $3.0 billion.

Exhibit 27
T-SHIPS ON ORDER OR UNDER CONSTRUCTION
{as of December 31, 1996}
APPROXIMATE
SHIP CLASS ESTIMATED CONTRACT
and DELIVERY PRICE

SHIPYARD HULL NUMBER VESSEL NAME DATE {in Millions)
Halter Marine T-AGS 63 HENSON 02/20/1998 $47.2
Halter Marine T-AGOS 23 IMPECCABLE 12/20/1998 $60.0
Avondale T-AKR 300 BOB HOPE 01/31/1998 $265.2
Avondale T-AKR 301 FISHER 07/30/1998 $210.0
Avondale T-AKR 302 - unnamed - 01/31/1999 $210.0
Avondale T-AKR 303 - unnamed - 07/30/1999 $206.4
Avondale T-AKR 304 - unnamed - 04/30/2000 $211.1
National Steel T-AKR 310 - unnamed - 09/30/1998 $269.1
National Steel T-AKR 311 - unnamed - 04/30/1999 $218.0
National Steel T-AKR 312 - unnamed - 09/30/1999 $218.0
Nationa! Steel T-AKR 313 - unnamed - 10/16/1999 $218.0
National Steel T-AKR 314 - unnamed - 10/31/2000 $200.0
National Steel T-AKR 297 YANO 01/31/1997 $211.6
Newport News T-AKR 298 GILLILAND 03/30/1997 $212.8
National Steel TAKR 299 SODERMAN 09/30/1997 $211.

15 Ships $2,969.0

51


MAJOR U.S. SHIPBUILDING AND REPAIR FACILITIES

(Vessels 122 min ‘and Over)
Maximum Ship Size Berthe/Piers Remarks
{LOA--Beam) Usable Length
SW--Shipway 1 Type of work usually engaged in

Name and Address

FD--Floating Drydock Longest 2/ Employment - Mid-1996
MR--Marine Railway Total linear

nd Level Position

SL--Synerolift Lengths are in Meters

EAST COAST
Topside Repair Yards
Reynolds Shipyard Corp. 134 1 General ship repair.
200 Edgewater Street 134
P.O, Box 0500/10 2/12

Staten Island, NY 10305

Steel Style, Inc. 183 1/ General ship repair.
401 South Water Street 335
Newburgh, NY 12550 2/12

93


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72


EXHIBIT 14

(9661 930

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Exhibit 21

NOLLVHLSININGY SNLUEVW ‘NOLLONHLSNOO dIHS 40 3040
C3QW0ud N3HM ZESVN WHOS WOH VIVO CYVAdIHS ‘JOUNOS

9661 H3GN3030
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45


NAVY SHIP DELIVERIES - 1996

During calendar year 1996, U.S. private shipyards delivered 11 new naval vessels,
1,000 LDT and larger. The naval vessels delivered totaled approximately 92,241 LDT
and had an initial contract value of approximately $2.7 billion (Exhibit 26).

By comparison, in 1995, U.S. shipyards delivered 17 new naval vessels valued at
approximately $5.3 billion.

Seven different types of naval ships were delivered by six shipyards during 1996:

1 - oceanographic research ship (AGOR); 4 - guided missile destroyers (DDG); 1 - dock
landing ship (LSD); 1 - ballistic missile submarine (SSBN); 2 - attack submarines (SSN);
1 - coastal hydrographic survey ship (T-AGS); and 1 - fleet oiler (T-AO).

Exhibit 26
NAVY NEW CONSTRUCTION
VESSELS DELIVERED - 1996
{1,000 LDT and OVER)
APPROXIMATE
SHIP CLASS CONTRACT
and VESSEL ESTIMATED DELIVERY PRICE

SHIPYARD HULL NUMBER NAME LOT DATE (in Millions)
Newport News SSN 772 GREENEVILLE 6,000 01/29/1996 $338.5
Ingalls DDG 67 COLE 8,344 03/71/1996 $254.9
Avondale LSD 51 (CV) OAK HILL 10,560 03/29/1996 $135.1
Avondale T-AO 203 LARAMIE 14,586 05/08/1996 $106.3
Halter Marine AGOR 24 REVELLE 2,100 06/11/1996 $34.6
Electric Boat SSBN 742 WYOMING 16,600 06/20/1996 $576.0
Halter Marine T-AGS 62 BOWDITCH 3,019 07/19/1996 $42.9
Bath Iron Works ODG 66 GONZALEZ 8,344 07/26/1996 $256.5
Newport News SSN 773 CHEYENNE 6,000 08/15/1996 $416.0
Ingalls DDG 69 MILIUS 8,344 08/19/1996 $285.0
Bath Iron Works ODG 68 THE SULLIVANS 8344 © 11/22/1996 $256.5

11 SHIPS 92,241 $2,695.8

50


COMMERCIAL SHIP CONSTRUCTION

The U.S. orderbook for commercial shipbuilding at the end of 1996, consisted
of nine 30,415 gross ton (GT) tankers at Newport News Shipbuilding,

two 11,000 GT chemical tankers at Alabama Shipyard and three tanker
reconstructions (one 27,854 GT and two 24,474 GT) at Avondale Industries.

The tankers at Newport News were ordered by two different companies, Fleves
Shipping Corporation of Greece ordered four tankers for export and Hvide Van
Ommeron of Miami, FL ordered five tankers for the U.S. trade. Delivery of

the tankers is scheduled for 1997/1998. The tankers ordered by Fleves Shipping
Corporation were the first commercial vessels ordered by a foreign owner

since 1957. Alabama Shipyard is constructing two chemical tankers for
Danneborg Rederi AS of Denmark, scheduled for delivery in 1997. Avondale
Industries has a contract for four tanker reconstructions, for American Heavy Lift.
One tanker has already been delivered leaving three on order. The reconstructions
involve the cutting of each tanker in two, removing the existing forebody of the
vessel, constructing and attaching a new 155 meter double hulled forebody. The
reconstructed vessels will be the first U.S.-flag ships to qualify under the Oil
Pollution Act of 1990. All the tanker orders and the re-constructions were made
possible with the help of the U.S. Maritime Administration’s Title XI Federal Ship
Financing Program.

In addition, there is one 12,904 GT oceangoing ferry on order at Halter Moss Point
Shipyard and three 4,350 GT non-oceangoing passenger/car ferries under
construction at Todd Pacific’s Seattle shipyard. The end year orderbook since
1975 is illustrated in Exhibit 22.

Exhibit 22

COMMERCIAL SHIPBUILDING ORDERBOOK HISTORY
(AS OF DECEMBER 31)
SHIPS OF 1,000 GROSS TONS AND OVER

NUMBER OF SHIPS GROSS TONS (MILLIONS)
90 7
80 477 Gross Tons Le
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75 76 77 78 79 &O 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96

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85


SHIP REPAIR INDUSTRY

While over 200 privately owned firms of varying capabilities are involved in
tepairing ships in the United States, only 43 yards are capable of drydocking
vessels 122 meters in length and over. For ships this size, the U.S. shipbuilding
and repair industry is currently operating a total of 48 floating drydocks,

25 graving docks, and 2 marine railways. However, some of these graving docks
are committed to new construction. The large organizations which have drydocks
generally have extensive waterfront acreage and are capable of all types of ship
repair and maintenance. Major shipyards usually combine repair, overhaul, and
conversion with shipbuilding capabilities, and employment usually numbers in the
thousands. It is difficult to draw a sharp line between shipbuilding yards and ship
repair yards, as many of the yards engage in both types of work.

Repair (with Dr king) Faciliti

Major drydocking facilities are defined as those yards having at least one
drydocking facility that can accommodate vessels 122 meters in length and over,
provided that water depth in the channel to the shipyard itself is at least
3.7 meters. These facilities may also be capable of constructing a vessel less than
122 meters length overall. Exhibit 20 is a histogram displaying the reduction in the
number of available floating drydocks as the maximum ship length increases.

Appendix B tabulates information updated through 1996 on 31 of these
repair yards by geographical location. Additional information is available in the
Office of Ship Construction.

Major Topside Repair Facilities

Major topside repair facilities are those that have sufficient berth/pier space
for topside repair of ships 122 meters in length and over, provided that water
depth in the channel to the facility itself is at least 3.7 meters. These facilities
may also have drydocks and/or construction capability for vessels less than
122 meters in length. Services rendered by these firms vary from a simple repair
job to a major topside overhaul, particularly when the work on oceangoing ships
can be accomplished without taking the ships out of the water. It is common
practice for a shipyard to send its personnel and equipment to provide voyage
repairs while the ship is at anchor or working cargo at a commercial marine
terminal. There is an increasing trend worldwide to send ship repairers to the ship
rather than to bring the ship to the shipyard, thus calling for greater mobility of
ship repair personnel.

Appendix B also tabulates information through 1996 on the topside repair
yards’ facilities (berth/pier space). The yards’ building ways, drydocks, marine
railways, etc., are not addressed herein as they cannot accommodate vessels
122 meters in length and over. However, detailed data for these facilities were
obtained during the MARAD annual shipyard survey and are available in the Office
of Ship Construction.

40


INTENTIONALLY LEFT BLANK



IAJOR U.S. SHIPBUILDING AND REPAIR FACILITIES

(Vessels 122 min Length and Over)

Maximum Ship Size Berths/Piers Remarks
({LOA--Beam) Usable Length

SW--Shipway L/ Type of work usually engaged in
Neme and Address GD--Graving Drydock

FD--Floating Drydock Longest 2/ Employment - Mid-1996

MR--Marine Railway Total linear

LL~-Land Level Position

SL--Syncrolift Lengths are in Meters

GREAT LAKES
Shipbuilding Yards

(Maximum ship size that can exit the St. Lawrence Seaway locks is 222 meters X 24 meters)

Fraser Shipyards, Inc. 252X23 GD 274 1/ Ship construction, repair, and
P.O. Box 997 189X17 GD 527 conversion.
Superior, WI 5488
2/ 32
Marinette Marine Corp. 122 X24 LL $51, 1/ Ship construction, repair, and
Foot of Ely Street 651 conversion.
Marinette, WI 54143
2/ 546
Metro Machine of Pennsylvania, Inc. 375X35 GD 366 1/ Ship construction, repair, and
Industrial Products Division 859 and conversion.
Foot of Holland Street
P.O. Box 1730 2/ 157

Erie, PA 16507-0730

103


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63


MMERCIAL SHIP DELIVERIES - 1

One commercial oceangoing ship was delivered by U.S. shipyards during 1996

(Exhibit 25). Avondale Industries of Avondale, LA, delivered a 27,854 GT reconstructed
double hulled product tanker, to American Heavy Lift. The reconstruction involved the
cutting of the tanker in two, removing the existing forebody of the vessel, construction
and attachment of a new 155 meter double hulled forebody.

Exhibit 25
COMMERCIAL OCEANGOING
VESSELS DELIVERED - 1996
(1,000 GT and OVER)
CONTRACT
GROSS DELIVERY PRICE
SHIPYARD DESIGN TYPE VESSEL NAME TONS DATE (in Millions)
Avondale Industries Product Tanker CAPT H.A. DOWNING 27,854 10/03/1996 $39.8
T Ship 27,854 $39.8

49



MAJOR U.S. SHIPBUI

ND REPAIR FACILITII
(Vessels 122 min Length and Over)

Name and Address

Maximum Ship Size
(LOA--Beam)
SW--Shipway

GD--Graving Drydock
FD--Floating Drydock
MR--Marine Railway
LL-Land Level Position
SL-Syncrolift

Berths/Piers
Usable Length

on
Total

Remarks
1) Type of work usually engaged in

2/ Employment - Mid-1996

Lengths are in Meters

GULF COAST

Topside Repair Yards

Dixie Machine Welding 406 U General ship repeir.
& Metal Works, Inc. 406
1031 Anunciation St. 2) 264
New Orleans, LA 70130
Equitable Shipyards 122 1! Construction and repsir of small
4325 France Road 402 vessels and barges.
New Orleans, LA 70126
2/ 325
Gulf Copper & 262
Manufacturing Corp. 524
320 Houston Avenue 2) 129
Port Arthur, TX 77640
Gulf Marine Repair Corp. 152 1/ Ship repair and overhaul.
1200 Sertoma Drive 152
Tampa, FL 36605 2) 207
Hendry Corp. 305 LI General ship repair.
5107 S. Westshore Blvd. 610
Tampa, FL 33611 2/ 100
Houston Ship Repair, Inc. 259 1) General ship repair and
Brady Island Ship Repair Facility 259 conversion.
8510 Cypress Street
Houston, TX 77012 2) 150
Jay Bludworth, Inc. 122 A/ General ship repair.
P.O. Box 2441 232
Corpus Christi, TX 78403 2/16
John Bludworth Marine, Inc. 259 ‘LU General ship repair.
1600 N. Witter 750

Pasadena, TX 77506

2/ 160

98


EXHIBIT 9

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EXHIBIT 7

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19



MAJOR U.S. SHIPBUILDING AND REPAIR FACILITIES
Vessels 122 min Length and Over)

Maximum Ship Size _‘Berthe/Piere
(LOA--Beam) Usable Length
SW--Shipway
Name and Address GD--Graving Drydock
FD--Floating Drydock Longest
MR--Marine Railway Total linear

LL--Land Level Position
SL~-Syncrolift

Remarks
1) Type of werk usually engaged in

2/ Employment - Mid-1996

Lengths are in Meters

Topside Repair Yards

122 1) Ship and boat repair.
293
Terminal Island, CA 90731 2) 100
Campbell industries 171 1) General ship repair and
8th Ave. at Harbor Drive 338 construction of vessels up to
501 E. Harbor Drive 91 meters in length.
San Diego, CA 92101
2 43
Continental Maritime of San Diego, inc. 1) General ship repair.
1995 Bay Front Street 1387
San Diego, CA 92113-2122 2) 372
Foss Shipyard 146 1) Vessel repair, alteration, and
660 West Ewing Street 788 overhaul.
Seattle, WA 98119
2) 150
MAR-COM, Inc. 122 1) Generel ship repair.
P.O, Box 1029 174
Vancouver, WA 98666 2) 46
Pacific Fishermen, Inc. 152 1/ Construction and repair of small
5351 24th Avenue, N.W. 254 ver Topside repair of large
Seattle, WA 98107 ve
2) 63
San Pedro Boat Works 1 1/ General ship repair.
Berth 44, Outer Harbor 189
San Pedro, CA 90731 2/ 92
Service Engineering Co. 335 1/ General ship repair and conversion.
Pier 50 792

San Francisco, CA 94120

2/317

102


EXHIBIT 15

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AVERA: ARNIN IN . PRIVATE SHIPYARD

Average hourly earnings in the U.S. private shipyards are presented on a "gross" basis,
reflecting not only changes in basic hourly and incentive wage rates, but also such
variable factors as premium pay for overtime and late-shift work, as well as changes in
output for workers paid on an incentive plan. Averages of hourly earnings differ from
wage rates. Earnings are the actual return to the workers for a stated period of time;
rates are the amount stipulated for a given unit of work or time. Gross average weekly
earnings are derived by multiplying average weekly hours by average hourly earnings.
Therefore, weekly earnings are affected not only by changes in gross average hourly
earnings, but also by changes in the length of the workweek.

The annual average earnings of the private shipyards in the United States from 1982
through 1996 show an increase from $10.22 to an average of $14.21 (Exhibit 31).
During the same period, the average weekly earnings rose from $407.91 to $611.25.

Exhibit 31
IN U.S. PRIVATE SHIPYARDS
Dollars per Hour Dollars per Week
17 650
611.25
16-4 + 600
18> 14.12 14.217 550
14-4 13.86
[- 500
13
407.91 12.26 L- 450
1244 41,42 11.62 11.61 11.66 11.64 11-83
11,14 ge L 400
1-4 10.69
10.22
10-4 - 350
gH — 300
1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
Year

MB Hourly Eamings -~ Weekly Earnings

Souree: Bureau of Labor Statistics

55


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_ EXHIBIT 10

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MAJOR U.S. SHIPBUILDING ANO REPAIR FACILITIES
(Vessels 122 min Length and Over)

Maximum Ship Size ‘Berths/Piors Remarks
(LOA--Beam) Usable Length

SW--Shipway / Type of work usually engaged in
Name and Addre: GD--Graving Drydock

FO--Floating Orydock Longest 2/ Employment - Mid-1996

MR--Marine Railway Total linear

LL--Land Level Position

SL--Syncrolift Lengths are in Meters
EAST COAST

Repair Yards with Drydock Facilities

Metro Machine Corp. 201X 29 FD 239 U/ Ship repair and conversion.
P.O, Box 1860 885
Norfolk, VA 23501 2/ 668
Metro Machine Corp. of 274X55 FD 198 Uf Ship repair and conversion.
Pennsylvania 885
P.O. Box 180 2/ 20

Chester, PA 19016

Norfolk Shipbuilding & 218X 29 FD 314 1/ Ship conversion and repair -
Drydock Corporation 335X 48 FD 2403 all types of vessels.

P.O. Box 2100

750 Berkley Ave 2/1,976

Norfolk, VA 23501-2100

North Florida Shipyards, Inc. 122X16 FD 290 1/ Ship repair and conversion.
P.O. Box 3255 988
Jacksonville, FL 32206 2/ 459

91


1. Alabama Shipyard, Inc.

Alabama Shipyard, Inc. (ASI), is a wholly owned subsidiary of Atlantic
Marine Holding Company of Jacksonville, FL. Alabama Shipyard, Inc., (formerly
ADDSCO’s Alabama Maritime Corp.), is a new construction facility located on the
Mobile River, across the river from Mobile, AL, about 47 kilometers from the Gulf
of Mexico, with no obstructions to open water. The shipyard occupies
approximately 61 hectares of the 263 hectares available on Pinto Island. Acquired
by Atlantic Marine in 1989, the yard has been in existence since 1916, and has
constructed a variety of ships (both commercial and naval), barges, off-shore drill
platforms and semi-submersible drill rigs.

Alabama Shipyard, Inc., is capable of constructing ships up to a maximum
size of 290 meters by 50 meters. The shipyard has 46,080 square meters of
manufacturing space, 7,043 square meters of covered warehouse space and two
finger piers with total usable pier space of 1,218 meters. A 250-metric ton bridge
crane and two 136-metric ton gantry cranes service the 335 meter by 69 meter
wide erection area.

Alabama’s orderbook, as of December 31, 1996, consisted of two
16,000 dwt chemical tankers and the conversion of a pipelaying barge.

Recent additions to the facilities include a 60 meter by 30 meter pipe shop
with state-of-the-art CNC pipe cutting and fabricating equipment and a 40 meter
by 40 meter environmentally friendly completely enclosed blast and coat building.
Construction work is well under way for a new 190 meter by 35 meter profile and
web processing shop along with additional steel storage area. The shipyard has
invested $40 million in facility upgrades in the past 5 years, and has budgeted
another $40 million for future expansion.

Future expansion items include a forming shop, curved panel shop and a
double bottom shop, along with additional warehouse space.

As of mid-1996, Alabama shipyard’s employment totaled 697, up from 218 year
earlier.


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The statistical data accumulated by the survey are a major input into the
Shipyard Evaluation Analysis System Model (SEAS), a quantitative assessment of
the Nation’s ship construction and ship repair capability. This capability is
periodically compared with Department of Defense scenarios involving various
contingency attrition rates and emergency civilian shipping requirements to assess
the adequacy of the shipbuilding mobilization base, including ship repair and
reactivation of the Maritime Administration reserve fleet and the U.S. Navy reserve
fleet.

The survey also provides a database that is used to evaluate the feasibility
of proposed shipbuilding programs. Determinations are made as to which existing
shipyards might construct proposed ships consistent with ship size and delivery
date requirements. The need for construction of new facilities to meet the
demands of proposed shipbuilding programs can be also identified. The data
gathered by the annual survey also are used extensively in MARAD responses to
queries received from a variety of interests, including members of Congress, the
Secretary of Transportation, the Department of Defense, the Office of
Management and Budget, and other Government agencies.

Each year in late spring, Standard Form 17, "Facilities Available for the
Construction or Repair of Ships,” is mailed to some 280 U.S. shipbuilding and
ship repair facilities. The survey form was developed jointly by MARAD and the
Navy. A completed Form 17 represents a detailed description of a shipbuilding or
ship repair facility, which is not available from any other source on a continuing
and structured basis. The information requested, and available for official use, can
be reviewed on a blank Form 17 shown herein as Appendix A. A graving dock
characteristics summary and floating drydock characteristics summary are
appended to Standard Form 17 to better identify the characteristics of the
facilities.

Upon receipt of a completed Form 17 from a shipyard, MARAD forwards a
copy to the Naval Sea Systems Command, Industrial Planning, Surveys and
Analysis Branch, which maintains records of available facilities and capacities of
various shipyards and repair plants. This would enable the Department of
Transportation and the Department of Defense to use such facilities to the best
advantage in the event of national emergency.

The annual shipyard survey of 1996 has been completed. The information
collected has been organized and condensed in the following narratives, exhibits,
and tabulations to focus attention on those elements that are most often requested
from this office.


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MAJOR U.S, SHIPBUILDING AND REPAIR FACILITIES
(Vessels 122 min Length and Over)

Name and Address

Maximum Ship Size Berths/Piers Remarks
(LOA--Beam) Usable Length
SW--Shipway 1 Type of work usually engaged in
GD--Graving Drydock
FD--Floating Drydock Longest 2/ Employment - Mid-1996
MR--Marine Railway Total linear
LL-Land Level Position
SL--Syncrolift Lengths are in Meters

GREAT LAKES

Repair Yards with Drydock Facilities

(Maximum ship size that can exit the St. Lawrence Seaway locks is 222 meters X 24 meters)

Bay Shipbuilding Corp. 195 X 20 FD 305 L/ Ship repair end conversion.
605 North Third Ave. 351X41 GD 2162

Sturgeon Bay, WI 54235 222X32 SW 2/ 128

Toledo Ship Repair Co. 152X 21 GD 183 / Ship repair and conversion.
2245 Front 222X 22 GD 305

Toledo, OH 43605 2/ 63

Topside Repair Yards

(Maximum ship size that can exit the St. Lawrence Seaway locks is 222 meters x 24 meters)

H. Hansen Industries 226 2] General ship repair.
Riverside Marine Industries, Inc. 451

2824 Summit Street 2 48

Toledo, OH 43611

Nicholson Terminal & 701 LI General ship repair.
Dock Company 1097

P.O, Box 18066 2/120

River Rouge, MI 48218

104


M

R_U.S. SHIPBUILDING AND REPAIR
(Vessels 122 min Length and Over!

ACILITIES

Name and Address

Maximum Ship Size
(LOA--Beam)
SW--Shipway
GD--Graving Drydock
FD--Floating Drydock
MR--Marine Railway
ind Level Position

SL-Synerolift

Berths/Piers
Usable Length

Longest

Total linear

Remarks
L/ Type of work usually engaged in

2/ Employment - Mid-1996

Lengths are in Meters

EAST COAST

Shipbuilding Yards

Bath Iron Works Corp. 213X26 SW * 259 1/ Construction, conversion and
700 Washington Street 219X34 SW 869 repair - all types of vessels.
Bath, ME 04530 219X39 SW
2/ 7,501
Bethlehem Steel Corp. (2) 244X32 SW 384 1/ Construction, conversion and
BethShip, Sparrows Point Yard 365X59 GD 1920 of vess
Sparrows Point, MD 21219 274X 40 FO
2/ 959
Electric Boat Corporation (2) 162X23 SW 229 1) Engaged exclusively in construction,
75 Eastern Point Road (4) 171X174 Ub 1067 n and repair of submarines for
Groton, CT 06340-4989 187 X 20 GD .S. Navy.
197 X 26 GD
185X 21 GD 2/ 12,824*
* Includes Groton & Quonset Point
Intermarine, USA 162X20 GD * 244 1) MHC construction.
301 North Lathrop Avenue 591
P.O. Box 3045 2/ 350
Savannah, GA 31402-3045
* Can accomodate ship up to 366 meters in length.
Newport News Shipbuilding 292X37 GD * 418 1/ Construction, conversion and
4101 Washington Avenue 334X41 GD * 2881 repair - all types of vessels.
Newport News, VA 23607 197X27 GD **
262X31 GD ** 2/ 18,000
139X 21 GD **
159X 21 GD ** * Used for construction.
660X75 GD * ** Used for repair and overhaul.
195X 41 FD
(4) 183X192 tb

89


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57



PITA V MEN

During FY 1996, the U.S. ship construction and ship repair industry invested more than
$282 million in the upgrade and expansion of facilities (Exhibit 29). Much of this
investment was to improve efficiency and competitiveness in the Navy’s construction,
repair and overhaul projects, which are considered the most consistent and stable
element in the industry’s projected market.

In 1997, the industry plans to spend about $167 million in the upgrade and expansion of
facilities, according to data received by the Maritime Administration. The industry’s
capital investments since 1970 have totaled approximately $5.9 billion. The actual
expenditures between 1985 and 1996, with the exception of 1990, have consistently

exceeded those planned.
These capital investments have included building basins, floating drydocks, cranes,

automated equipment, and highly mechanized modular techniques - fabrication of large
subassemblies and pre-outfitting of ship components.

Exhibit 29

CAPITAL INVESTMENTS
U.S. SHIPBUILDING AND REPAIR INDUSTRY

Capital Investments ($ in Millions)

Years

Actual ZPianned

53



EXHIBIT 5

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Exhibit 20

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N HIPBUILDIN RDER

In 1996, U.S. shipyards received orders for the construction of five new commercial and
eleven new naval vessels (Exhibit 24). The commercial vessels ordered were five
oceangoing double hulled tankers, for a U.S. based shipping company. Contracts were
placed for the construction of three guided missile destroyers (DDG) at Bath Iron Works
Corporation, Bath, ME; three guided missile destroyers (DDG) at Ingalls Shipbuilding,
Pascagoula, MS; one military sealift ship (T-AKR) and one amphibious transport dock
ship (LPD) at Avondale Industries, Avondale, LA; two military sealift ships (T-AKR) at
National Steel and Shipbuilding, San Diego, CA; and one Seawolf nuclear submarine at
Electric Boat Corporation, Groton, CT. The total contract value for these ships was
approximately $5.3 billion.

Exhibit 24
NEW SHIPBUILDING ORDERS - 1996
(1,000 GT or LDT and OVER)
APPROXIMATE
CONTRACT CONTRACT ESTIMATED
SHIP PRICE ESTIMATED AWARD DELIVERY
SHIPYARD IDENTIFICATION {in Millions) © LOT /GT = DATE DATE
COMMERCIAL SHIPS
Newport News Shipbuilding TANKER $49.3  30,340GT 02/18/1996 02/15/1998
Newport News Shipbuilding TANKER $49.3  30,340GT 02/16/1996 05/15/1998
Newport News Shipbuilding TANKER $49.3  30,340GT 02/18/1996 07/15/1998
Newport News Shipbuilding TANKER $49.3  30,340GT 02/18/1996 10/15/1998
Newport News Shipbuilding TANKER $49.3 © 30,340GT 02/18/1996 = 12/15/1998
5 Ships $256.5 151,700 GT
NAVAL SHIPS
National Steel T-AKR 313 $207.0  36,114LDT 01/30/1996 03/31/2000
Ingalls Shipbuilding DOG 83 $329.5 8,344 LDT 06/20/1996 07/19/2001
Bath Iron Works DDG 84 $348.0 8,344 LDT 06/20/1996 07/12/2001
Electric Boat Corp. SSN-23 $1,750.0 6, 956LDT 06/29/1996 12/31/2001
Avondale Industries T-AKR 304 $211.1 34,408 LDT 11/26/1996 04/30/2000
National Stee! T-AKR 314 $200.0 36,114LDT 11/26/1996 10/31/2000
Bath Iron Works DDG 85 $361.7 8,344 LOT 12/13/1996 01/11/2002
Ingalls Shipbuilding DDG 86 $361.7 8,344 LDT 12/13/1996 01/04/2002
Bath Iron Works DDG 87 $333.6 8,344 LDT_— 12/13/1996 09/13/2002
Ingalls Shipbuilding DDG 88 $333.6 8,344 LDT 12/13/1996 09/06/2002
Avondale Industries LPD17 $641.4 25,300LDT 12/17/1996 — 09/30/2002
11 Ships $5077.6 188,956 LOT

48


APPENDIX A

STANDARD FORM 17

FACILITIES AVAILABLE FOR THE CONSTRUCTION

OR REPAIR OF SHIPS

77


3. Avondale In ries, Inc. - Shipyards Division

Avondale’s Shipyards Division is located on the west bank of the Mississippi
River approximately 22 kilometers upriver from New Orleans, LA. Avondale,
previously a wholly owned subsidiary of Ogden Corp., was sold in 1985 to its
employees in an Employee Stock Ownership Plan (ESOP). Since 1938, Avondale
has constructed a full range of Navy and commercial ships, as well as Coast Guard
cutters and offshore drilling rigs, platforms, jackets, and production modules. It
has the distinction of being the only American shipyard to have constructed LASH
vessels.

Avondale also maintains an active repair operation for commercial and naval
vessels. Ships and offshore drilling rigs are repaired by Avondale’s Shipyards
Division. Inland waterway and offshore oil vessels are repaired by Avondale’s
Algiers Yard.

Avondale’s orderbook as of December 31, 1996, consisted of one dock
landing ship (LSD), one Coast Guard WAGB polar icebreaker, five Sealift ships with
an option for one more, one fiberglass mine hunter (MHC) and one amphibious
transport dock ship (LPD). Also included in the orderbook was the modernization
of three oil tankers through the installation of a new, double-hull bow section.

Avondale’s Shipyards Division totals 108 hectares and contains three
outfitting docks equipped with supporting shops and over 1,431 meters of pier
space. The upper yard shipbuilding area has two large positions to accommodate
vessels up to 311 meters in length by 53 meters beam. The major part of one ship
can be erected along with the stern section of a second ship on position No. 1,
while a third hull is being completed on position No. 2. Ships constructed in the
upper yard move laterally in three positions for launching in Avondale’s 81,000-ton
floating drydock, which can accommodate ships as large as 305 meters by 66
meters, with a lifting capacity of 82,296 metric tons. Avondale’s lower yard has a
side-launching construction area that has three large positions to accommodate
ships as large as 366 meters by 38 meters. Ships built in the lower yard move
laterally toward the river and parallel to the river in five positions. Up to five large
vessels, greater than 213 meters LOA, can be constructed simultaneously in the
lower yard. A 20,000-ton Panamax floating drydock, which can accommodate
ships up to 229 meters by 35 meters and has a lifting capacity of 20,320 metric
tons, is moored down river from this area.

Avondale’s Boat Division, located at nearby Westwego, LA, facility is
capable of building vessels 137 meters long by 27 meters beam. In 1988,
Avondale executed a long-term lease of the ex-Todd Shipbuilding Corp.'s New
Orleans yard which is now called the Avondale Algiers Repair and Overhaul Facility
and is used for ship repair, conversion, and overhaul.

In mid-1996, the total employment was about 5,200, up slightly from 5,150
a year earlier.

10


PR TED Y SHIPBUILDING PLA!

The U.S. Navy shipbuilding plan for fiscal years 1997 - 2003 includes the construction of
47 new ships, 8 ship conversions, 2 Service Life Extensions (SLEP) and 2 carrier
refuelings, as illustrated in Exhibit 28. More than $40 billion is proposed for this plan.
Shipyard contract value accounts for about a third of this amount, while the remainder is
attributed to Government-furnished equipment placed aboard the vessels and to other
Government program costs.

The Navy’s proposed FY 1997 - 2003 shipbuilding program represents a continued
reduction in the amount of new shipbuilding work available to the nation’s industrial base
when compared with previous Navy programs. At an average of less than seven new
ships per year, this program represents a 64.5 percent reduction in the quantity of ships
to be procured compared with the 19 ships per year average for Navy programs during
the 1980s.

The Navy’s plan includes the construction of 21 guided missile destroyers (DDG-51),
6 attack submarines (NSSN) and 9 amphibious transport ships (LPD). These three
shipbuilding programs will probably consume more than 80 percent of the available
funding.

Exhibit 28
NAVY SHIPBUILDING PLAN
Fiscal Years 1997 - 2003
Ship Class 1997 1998 1999 2000 2001 2002 2003 TOTAL
CVIN) - - : AP AP (1) AP 1
NSSN - 1 1 1 (1) 1 1 6
ODG-51 4 3 3 3 3 3 2 21
LPD : - 1 2 2 2 2 9
TAGS/AGOR 1 : - - - - 1
AOE - - - - 1 - 1
sc 21 : - - 1 1
T-AKR (Military Sealift) 2 2 2° - : - - 6
ARSENAL - 1 - - - - - 1
CVN (Refueling) - 1 - - 1 - - 2
AOE SLEP - : - 1 - 1 - 2
AE (Conversion) 1 - : : . 1 1 3
AFS (Conversion) - - : - - 1 1 2
MPF(E) (Conversion) 3 - - - - - - 3
Total 11 8 7 7 7 11 8 59
AP - Advanced Procurement
(_)- Ship planned, but Unfunded
* One ship may be moved up to FY 97, for a total of three TAKRs in FY 97.

52


U.S. Shipbuilding Orderbook (Exhibit 23) 6... ee ee
New Shipbuilding Orders - 1996 (Exhibit 24) 2... 0... .. 0.0... c ee eee
Commercial Ship Deliveries - 1996 (Exhibit25) ............ 0000s
Navy Ship Deliveries - 1996 (Exhibit 26) ............ 000.0 e eee
Navy’s T-Ship Program (Exhibit 27) 6... ee ee eee
Projected Navy Shipbuilding Plan (Exhibit 28) 2.6... ... eee ee ee ee
Capital Investment (Exhibit 29) 2... ee eee
Total Employment in Private Shipyards (Exhibit 30) .............0..
Average Earnings in U.S. Private Shipyards (Exhibit 31) .............
Table 1 - Ship Construction Capability by Ship Type ..............4.
Table 2 - Number of Shipbuilding Positions by Length ...............

Appendix A - Standard Form 17 - Facilities Available for the
Construction or Repair of Ships  ............00000008

Appendix B - Major U.S. Shipbuilding, Repair, and Topside Repair
Facilities 2... eee ee


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10. ngalls Shi. ilding, In

Ingalls Shipbuilding, Inc., a division of Litton Industries, Inc., is located on
the Gulf of Mexico in Pascagoula, MS. Ingalls is a diversified shipbuilding facility
experienced in the design, engineering, construction, modernization, conversion,
overhaul and fleet support of Navy warships and auxiliaries. Since 1975, has
delivered to the U.S. Navy 72 major surface combatant ships. Ingalls has also
delivered three SAAR 5 corvettes to the Government of Israel.

As of December 31, 1996, the company held orders for three multi-purpose
amphibious assault ships (LHDs) for the Navy, as well as eight new DDG-51 class
Aegis guided missile destroyers. The orderbook also included a commercial
contract for 40 inland waterways hopper barges, being built for Parker Towing
Company of Tuscalossa, AL (20 of the barges have been delivered).

Ingalls’ 243 hectare West Bank facility, completed in 1970, does not have
conventional inclined shipbuilding ways but is geared to assembly-line
construction. Fabricated steel and subassemblies are brought from the various
shops to the subassembly area where they are erected and pre-outfitted, then
moved to the module assembly area. These areas are divided into five bays, each
of which can produce 5,447 metric ton modules. After assembly and outfitting,
the modules are moved to the integration area where they are erected into a
complete ship. The ship is then moved to a floating drydock (resting on a
submerged grid) which is subsequently floated and moved to a deep-water area
where it is ballasted and the ship launched. The drydock can launch or recover a
maximum ship size of 259 meters by 53 meters. Approximately 1,432 meters of
berthing space, serviced by cranes up to 272 metric tons, are available for
outfitting. In August 1988, about 16,721 square meters of the shipyard’s slab
area were brought under roof to increase the amount of early outfitting performed.
Improved pipe production facilities, a machinery packaging facility, and a new blast
and paint station in the steel fabrication complex have been added. Ingalls current
facility and technologies improvements include a new robotics welding capability
and a composite facility.

Ingalls’ older East Bank facility has been in operation since 1938, engaged
primarily in the construction of commercial cargo ships and tankers. Although
there are six inclined shipways and a graving dock at East Bank, they were ail
taken out of service in 1989, along with three piers. Refurbishment of these
facilities is anticipated to take at least two years. One pier rernains providing
457 meters of berthing space serviced by cranes with up to 54 metric tons of
capacity for outfitting and topside repair.

As of mid-1996, Ingalls employed a total labor force of about 11,300.

24


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15. Newport News Shipbuilding

Newport News Shipbuilding, located at the Port of Hampton Roads in
Newport News, VA, is the largest shipbuilding complex in the nation. The
company, founded in 1886, is a subsidiary of Tenneco, Inc. Newport News has
delivered 26 aircraft carriers, 53 nuclear-powered submarines, and over 120 other
surface ships for the U.S. Navy. Commercial vessels delivered by the yard include
71 cargo ships, 85 tankers, 61 passenger ships, (most notably the famed
superliner UNITED STATES), and more than 50 other self-propelled vessels.
Newport News was a pioneer in the field of jumboizing ships, and since 1957, has
completed 34 such operations.

Newport News is the nation’s foremost shipbuilder. As of December 31, 1996,
the yard was at work on two Nimitz class aircraft carriers and nine 40,000 dwt
product tankers. Newport News is also involved in the overhaul and repair of
nuclear-powered submarines and surface ships for the Navy as well as commercial
repair work.

Included in Newport News major facilities are:

Docks - There are eight docking facilities. Drydock 12, the largest building
basin in the nation, can accommodate vessels up to 661 meters in length by
75 meters beam. An intermediate gate will permit the simultaneous construction
of two major ships in the dry dock. A 900-metric ton gantry crane, one of the
largest in the western hemisphere, can handle completely outfitted assemblies.
Dry Docks 10 and 11, which are serviced by a 315-metric ton gantry crane, can be
used for construction work, but are used primarily for ship overhaul, repair and
deactivation. Dry Docks 1-4 are used mainly for ship repair and overhaul, and the
floating dry dock, which is 195 meters by 41 or 42 meters, supports ship
construction from the module outfitting facility and repair work.

Vessel! Berthing - Newport News has two outfitting berths totaling
799 meters each serviced by 30-metric ton cranes. There are three piers totaling
1,944 meters of berthing space and serviced by cranes with capacities of up to
50 metric tons, plus two small piers at the module outfitting facility.

Manufacturing - A $68 million "World-Class Shipbuilder Project" is currently
underway to add robotics and updated computer systems to Newport News
fabrication process.

The labor force at Newport News as of mid-1996 was about 18,000
compared to 19,500 a year earlier.

34


TOTAL EMPLOYMENT IN PRIVATE SHIPYARDS

According to preliminary employment data published by the Bureau of Labor
Statistics (BLS), U.S. Department of Labor, under the Standard Industrial
Classification (SIC) Code 3731 (Shipbuilding and Repairing), the average total
employment in U.S. private shipyards for 1996 was 98,400 (Exhibit 30). This total
teflects a decline of 6.7 percent from the reported total average employment for the
shipbuilding and repairing industry for 1995. This is the largest decrease since 1993.

According to the data published by the BLS, total average employment in the shipbuilding
and repair industry increased slightly between 1989 and 1991, but is currently projected

to be lower than any level in the past 45 years. Despite the fact that the employment
level increased during 1989 and 1991, it has steadily decreased since 1991 and it has
remained considerably lower than that reported in 1982 when 171,600 people were
employed in the industry.

Exhibit 30

AVERAGE TOTAL EMPLOYMENT
IN U.S. PRIVATE SHIPYARDS

Number of Workers (Thousands)

4

200

146.8
142.7

138.3
150 + 181.0 130.3 181.0

a 124.1 122,6 126.6 Var,
a ais
100 4
504
J LA LA LA a
1982 1083 1984 1986 1986 1987 1988 1989 1990 1901 1992 1993 1994 1996 1996
Year

Source: Bureau of Labor Statistics

54


8. Gunderson, Inc.

Established in 1919 as a steel fabricator, Gunderson has been a ship and
barge builder since 1942. The primary marine work at Gunderson marine yard
since the early 1970’s was building oceangoing barges. From 1973-1977, the
company built five double-hull, gas turbine-electric drive oil tankers for Chevron
Shipping Company, San Francisco. After those tank ships, 38 barges, all
oceangoing, and most exceeding 122 meters in length, were built. They include
four of the world’s largest triple-deck RO/RO barges, 177 meters by 32 meters,
several 32 meter by 122 meter deck cargo and tank barges, four 76 meter split
hull hopper barges, and a 128 meter crane barge equipped with a 500-ton helipad.
Gunderson has also built military boats, landing craft, lifeboats, tugs, deckhouses,
hopper and tank barges and a variety of other specialized marine craft.

From 1965 to 1985, Gunderson was owned by FMC Corporation, now
based in Chicago, IL, and operated under the name of the Marine and Rail
Equipment Division of FMC until The Greenbrier Companies bought the facility in
February 1985. In February 1995, Gunderson launched its first barge built since
1984, a 3,823 cubic meter capacity oceangoing split hull hopper barge.
Gunderson’s yard is located on a 30 hectare parcel with approximately
0.8 kilometers of frontage on the west bank of the Willamette River, about
3.2 kilometers downstream of the downtown Portland waterfront. As such,
Gunderson has access to all three drydocks available at Portland Ship
Yard/Cascade General and the services of the ship repair and outfitting contractors
who regularly utilize this facility.

Gunderson’s facilities and production workforce, which averages some
1,200 skilled and semi-skilled workers, can be and are utilized to build both marine
equipment and railroad freight cars, including the most advanced designs in
double-stack railcars. Capable of launching vessels up to 229 meters in length,
32 meters in breadth and weighing as much as 9,000 tons, Gunderson is currently
seeking work in the construction of large oceangoing deck cargo (open and closed)
hopper barges, deckhouses, cranes and double hulled petroleum tank barges of up
to 20,000 dwt capacity. Gunderson’s launch capacity can be readily increased to
accommodate vessels weighing as much as 10,000 metric tons and its steel
throughput capacity for all products is currently 1,016 metric tons per month.
Gunderson is also well equipped to effect vessel modifications afloat alongside its
335 meter, crane served, outfitting pier.

The present backlog is one 6,000 cubic yard split hull bottom dump barge.
During 1992-1993, a $5 million expansion program added 91 meters to the marine
panel line, a 50 ton overhead crane, 8 head burning machines, auto gantry welder
for stiffeners, and renovation of the vessel launching facility.

As of mid-1996, total employment at Gunderson Shipyard averaged
1,100 people, with approximately 80 of these producing marine equipment. The
remainder of the workforce was involved in the construction of railroad cars.

20


AND TOPSIDE REPAIR FACILITIES

87


SHIPBUILDING INDUSTRY

AND
ACTIVITIES
1996

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83


12. Marinette Marine Corporation

Marinette Marine Corporation (MMC) is a privately-owned shipbuilding
company founded in 1942. Since inception, the yard has built nearly
1,300 vessels, including tugs, ferries, buoy tenders, research vessels, torpedo
weapon retrievers, mine counter-measure ships, yard patrol craft and a variety of
landing craft.

As of December 31, 1996, MMC was engaged in the detail design and
construction phases of two contracts with the U.S. Coast Guard. One contract is
to design and construct five 69 meter oceangoing buoy tenders and the other to
design and construct four (with options for 9 more) 53 meter coastal buoy tenders.
During 1996, MMC completed construction and delivery of two of the 69 meter
oceangoing bouy tenders and one of the 53 meter coastal bouy tenders.

The shipyard covers 23 hectares and has approximately 150,000 square
meters of enclosed workspace permitting year-round, uninterrupted construction of
vessels. A modern design and administrative building, large fabrication shops and
erection areas, a 200 metric ton ship lift, three launchways, and numerous
berthing spaces along the 651 meter dockwall provide what is needed to satisfy
multiple ship construction projects in assembly line fashion.

Strategically positioned fabricating, assembly and trade shops allow smooth
and efficient movement of material, prefabricated components, and small modules
through the ship construction process. Most shops are equipped with overhead
bridge cranes. Crawler cranes service the outdoor erection areas. Large modules
and completed vessels are transferred to erection and launching sites using a dual
walking beam ship transfer system that is capable of carrying up to 1,600 long
tons.

Construction of the oceangoing buoy tenders began in late 1993.
Construction of the coastal buoy tender commenced in mid-1994.
MMC anticipates six additional coastal buoy tenders will be awarded for
construction in 1997. The two programs will accommodate a total of
approximately 500 people when production is at full strength.

Total employment at the yard in mid-1996 was 600, compared to 450 a
year earlier.

28


MAJOR SHIPBUILDI ASE

The Major Shipbuilding Base (MSB), as identified by the Navy and MARAD,
is comprised of 17 privately owned U.S. shipyards that are open, having at least
one shipbuilding position capable of accommodating a vessel 122 meters in length
or over. In addition, these shipyards must own or have in place a long-term lease
(1 year or more) on the facility in which they intend to accomplish the shipbuilding
work, there must be no dimensional obstructions in the waterway leading to open
water (i.e., locks, bridges), and the water depth in the channel to the facility must
be a minimum of 3.7 meters. Exhibit 18 of this report identifies and graphically
locates these 17 yards.

As of October 1996, the MSB shipyards employed roughly 65 percent of the
U.S. shipbuilding and repair industry’s total workforce, as reported by the Bureau
of Labor Statistics under SIC 3731. At the same time 84 percent of the
production workers in these 17 shipyards were engaged in Navy or Coast Guard
ship construction and repair work.

As of year’s end, seven of the 17 shipyards were engaged in construction
and/or conversion of major combatant and auxiliary ships for the Navy. Three of
the yards were engaged primarily in ship construction work provided by the Navy’s
T-Ship program. Seven yards had only repair and overhaul work, smaller Navy
vessel orders, and non-ship construction work; five yards were involved with
private new construction; and one yard was constructing vessels for the
Coast Guard.

Employment projections for production workers are shown by Exhibit 21 of
this report. These data are generated by overlaying Navy projected six-year
shipbuilding and conversion programs onto the estimated work force required to
complete a current orderbook.

The following is a brief description of 17 of the major U.S. privately-owned
shipbuilding facilities. Exhibits 1 through 17 are general arrangement drawings of
each yard’s facilities. Exhibit 18 illustrates the geographical location of these
shipyards.


Exhibit 19

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43


ERA!

A major shipbuilding and repair facility is defined in this report as one that is
open and has the capability to construct, drydock, and/or topside repair vessels
with a minimum length overall of 122 meters, provided that water depth in the
channel to the facility is at least 3.7 meters. Appendix B is a statistical abstract of
data gathered from 86 companies responding to MARAD’s annual survey which
meet these criteria. It lists the facilities sorted on a coastal basis and displays
information with respect to the size and type of each building position, drydock,
berth space, employment, and remarks regarding principal shipyard activities.

Table 1 has been prepared to answer the frequent question as to the number
of shipbuilding positions available to build a complete specified ship. With the
exception of the mobilization ship, the ship types listed in Table 1 are those
historically delivered to commercial service. Length overall and beam are given for
all ships and, in addition, deadweight tonnage is indicated for the bulk carriers.

A single shipway or graving dock may have several building positions depending on
the size of the ships being constructed. For example, the 365 meter by 59 meter
graving dock at BethShip’s Sparrows Point Yard can accommodate one
265,000-dwt tanker or four of the smaller general cargo ships. The total number
of building positions varies from 89 for the small cargo ship to five for a huge
265,000-dwt tanker. An important consideration that is not addressed in Table 1
is the common shipbuilding practice of laying a keel on a building position already
occupied by another ship. For example, in a 213-meter graving dock, a complete
186-meter containership and the stern section of a second ship could be
constructed simultaneously. This production procedure maximizes the use of
shipbuilding facilities, minimizes the construction period, and increases the number
of ships that can be produced in a given period of time. Table 1 addresses only
the number of complete ships that can be constructed simultaneously in each
building position(s).

Table 2 is a somewhat different presentation of shipyard capability. In lieu
of actual ships, maximum ship length is used to determine the number of shipways
or graving docks available. In this tabulation, the emphasis is on the number of
individual facilities available and not on the number of ships that can be
constructed. Again, using the BethShip Sparrows Point Yard as an example,
Table 2 lists the 365 meter by 59 meter graving dock as one facility regardless of
what type of ship is constructed in it. Table 1 indicates that there are six building
positions for a ship 145 meter LOA at the Sparrows Point Yard, whereas Table 2
indicates that the yard has three individual building positions capable of
constructing a ship about that length. Exhibit 19 is a histogram displaying the
reduction in the number of available building positions as the maximum ship length
increases.


EXHIBIT 16

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6. Electric B rporation

Electric Boat Corporation (EB) is located on the Thames River at Groton, CT.
Electric Boat is the primary design, construction, and life cycle support shipyard for
U.S. Navy nuclear-powered submarines. A part of General Dynamics Corporation
since 1952, the company was founded in 1899 to sell the Navy its first submarine,
the HOLLAND. Since then, Electric Boat has delivered over half of all U.S. Navy
submarines including: 85 Fleet-type boats during World War Il; the USS NAUTILUS
- the first nuclear submarine - in 1954; and the USS GEORGE WASHINGTON - the
first ballistic missile submarine - in 1959.

As of December 31, 1996, Electric Boat had under construction the last of
eighteen OHIO Class ballistic missile submarines and all three SEAWOLF Class
attack submarines. Electric Boat is the lead design yard for the New Attack
Submarine which is scheduled to begin construction at EB in FY 1998.

The company is also engaged in the repair of nuclear submarines both in Groton
and at other homeports.

Electric Boat operates three major construction and manufacturing sites - the
292 hectare shipyard facility on the Thames River at Groton, CT, a 245 hectare
modular construction facility at Quonset Point, Rl, fronting on Narragansett Bay,
and the 67 hectare Electro-Dynamic facility in Avenel, NJ, specializing in quiet
motors, fans, and generators. Completely outfitted submarine sections weighing
up to 1,540 metric tons are shipped from Quonset Point to Groton via a heavy lift
system consisting of multi-wheeled transporters and a unique jack-up barge.
Electric Boat also has major engineering support offices in Bangor, WA,
Kings Bay, GA, and Washington, DC.

Quonset Point facilities include the Automated Frame and Cylinder Facility,
where 24 automated fixtures are used to produce thick-walled submarine sections
to demanding dimensional tolerances, and extensive steel fabrication, machine,
pipe, electrical, and HVAC shops which support the modular outfitting of these
sections. The Quonset Point facility completed a major consolidation during 1996
as part of reengineering for low-rate submarine production, reducing shipyard area
by 40 percent and building space by 50 percent.

Groton facilities include the principal research, engineering, and design
activities, as well as shipyard operations centered around the land level submarine
construction facility (LLSCF), which is capable of producing up to three submarines
per year, and is served by heavy-lift cranes capable of combined lifts to 616 metric
tons. There are three graving docks: GD1 and GD2 are used primarily for
submarine repair and postsea trial dockings; and, GD3 is used to launch ships up to
197 meters and 19,250 metric tons from the LLSCF. Six wetberth positions with
portal cranes ranging from 75 to 300 tons can accommodate vessels up to
229 meters long and drawing 12 meters. During 1996, as part of ongoing
consolidation efforts, the Groton facility disposed of several afloat assets and
prepared for demolition of obsolete structures.

As of mid-1996 Electric Boat had approximately 13,000 employees including

11,500 at Groton and 1,300 at Quonset Point, down from a total of 15,000 in
mid-1995.

16


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11. Intermarin: A

Intermarine USA was established in 1987 following a U.S. Navy contract to
build large minehunters using composite materials. Intermarine completely
renovated a shipyard in Savannah, GA, and converted it into a modern composite
manufacturing facility.

Intermarine USA started construction of OSPREY, lead ship of the MHC-51
Coastal Minehunter class, in May 1988, only one year after the original contract
award. The class is 57 meters in length and a full load displacement of
900 metric tons. OSPREY was launched in March 1991 and delivered in
August 1993. Seven additional MHC-51 class vessels have been awarded to
Intermarine since 1987. These awards ensure continuous ship production through
1998. Through 1996, five coastal mine hunters had been delivered.

The company continues to contribute to U.S. Navy advanced composite
materials studies in support of marine structural designs up to 73 meters in length.
Intermarine also constructed a 20 meter catamaran yacht tender for service in the
America’s Cup competition. In addition, Intermarine has continuous ongoing naval
and commercial ship repair work and is entering the super yacht market.

Intermarine USA has all the facilities necessary for military and commercial
ship construction, including a certified 162 meter long graving dock and a
1,016 metric ton marine railway. The composite materials fabrication building has
an area of over 14,860 square meters and is equipped with six semi-automatic
resin/glass impregnators on fully-articulated bridge cranes. Materials storage areas
and environmental controls have been specifically designed to meet all composite
materials storage and manufacturing requirements. The facility is large enough to
house six minehunter vessels or molds, all under cover, simultaneously. There are
4,180 square meters of shop space, in addition to the composite materials
fabrication areas, and ample warehouse space on-site.

In support of the ongoing construction programs, Intermarine has established
technical and integrated logistics support departments staffed with experienced
engineers, designers and logisticians.

As of mid-1996, Intermarine USA employment totaled 350, down from 470
a year earlier.

26


MAJOR U.S. SHIPBUILDING AND REPAIR FACILITIES
(Vessels 122 min Length and Over)

Name and Address

Maximum Ship Size
(LOA--Bearn)

SW--Shipway

GD--Graving Drydock

Berths/Piers
Usable Length

Remarks

1/ Type of work usually engaged in

FD--Floating Drydock Longest 2/ Employment - Mid-1996
MR--Marine Railway Total linear

LL-Land Level Position

SL--Syncrolift Lengths are in Meters

GULF COAST

Repair Yards with Drydock Facilities

Atlantic Marine, inc. - Mobile 213 X26 FD 345 1/ Ship repair and overhaul.
P.O, Box 3202 305 X 49 FD 9390
Mobile, AL 36652 2/ 720
Bender Shipbuilding & 167 X27 FD 258 1/ Construction of vessels up to]
Repair Co., Inc. 202 X36 FD 968 91.44 meters in length. Also
265 South Water Street repair and conversion.
Mobile, AL 36601
2/ 663
Bludworth Bond Shipyard Inc. 122X246 FO * 244 1/ General ship repair.
P.O. Box 5065 671
8114 Huckley 2/ 225
Houston, TX 77262-5065
* Two drydocks are combined.
Holter Gulf Repair 133. X18 FO 54g U/ Construction and repair of
3900 Jourdan Rd. 122 X34 FD 549 offshore seels
P.0. Box 8126 223 X 32 FD and barg
New Orleans, LA 70182 182X23 LL
2/181
Gulf Coast 140X 44 GD 305 1/ Smail vessel construction and repair
Fabrication, inc. 183 X30 SW 305
P.O. Box 539
Lakeshore, MS 39558 2/ 328
International Ship Repair 168 X27 FD 549 1) General ship repsir.
& Marine Services, Inc. 137. X32 FD 1158
1616 Penny Street 2/ 300
Tampa, FL 33605
Newpark Shipbuilding 122X22 FD 10 1/ Small vessel construction and
710 repair.
8502 Cypress
Houston, TX 77012 2/334

95


SHIPYARD CLASSIFICATION DEFINITIONS

CLASSIFICATION DEFINITIONS

- Shipbuilding: Facilities that are open, having at least one shipbuilding
position capable of accommodating 122 meters in length and over. With
few exceptions, these shipbuilding facilities may also be major repair
facilities with drydocking capability.

-  Bepair (With Drydocking): Drydocking facilities for ships 122 meters in
length and over. These facilities may also be capable of constructing
vessels less than 122 meters in length.

- Topside Repair: Facilities with sufficient berth/pier space for topside
repair of ships 122 meters in length and over. These facilities may also
be capable of constructing and/or drydocking vessels less than 122
meters in length.

NERAL RI IREMENT:!

The shipyard must own or have in place a long-term lease (1 year or more) on the facility in which
they intend to accomplish the work.

There must be no dimensional obstructions in the waterway leading to open ocean ({i.e., locks, bridges).

Water depth in the channel to the facility must be a minimum of 3.7 meters.

NOTE

The following criteria were developed to establish the maximum ship size that could be
accommodated in each drydock:

For floating drydocks, the maximum ship length is as given by the snipyards. The
maximum beam was determined by allowing a 0.6 meter clearance at each side between
the ship and wing wall.

For graving docks, the maximum ship length was determined by allowing a 0.6 meter
clearance at each end between the ship and the inside of the dock at the floor. The
maximum beam was determined by allowing a 0.6 meter clearance on each side between
the ship and each side of the dock entrance at the sill, unless the shipyard indicated more
clearance is required.

There are several types of floating drydocks and graving docks, and under certain circumstances
additional clearance would be necessary between the ship and the dock body. Permissible ship
sizes requiring additional clearance may be determined by simple calculation from the above
criteria.

88


2. AMEELS, Inc.

AMFELS, Inc., is a wholly owned subsidiary of Far East Levingston
Shipbuilding Ltd. (FELS) of Singapore, located 22 kilometers up the Brownsville
Ship Channel from the Gulf of Mexico in Brownsville, TX. AMFELS is a full service
shipyard that serves the marine and offshore industry, possessing the necessary
capability and experience in the design, engineering, construction, conversion and
repair of various types of marine offshore vessels.

AMFELS operates a variety of marine equipment including a 711-metric ton
floating crane and two 135-metric ton derrick barges, assisted by tugboats.
A 30,000 ton floating drydock, named SOLOMIN P. ORTIZ has been fully
operational since early 1996. This dock is leased from the Port of Brownsville, and
is capable of drydocking both marine vessels and offshore oil rigs.

AMFELS operates a 54 hectare facility with 12,700 square meter steel
fabrication shop, 110 square meter of pipe fabrication shop, 127 square meter of
machine shop and another 73,256 square meters of open space used for assembly
and erection. Another major component of the yard is the 335 meter side
launchway.

AMFELS orderbook, as of December 31, 1996, included the repair of four
semi-submersible vessels and one Jackup rig.

Since its inception in 1992, AMFELS has completed a variety of topside
repairs, including the deactivation and repair of five MARAD vessels. AMFELS has
also been active in the repair, life enhancement programs and conversion of over
50 offshore drilling rigs and platforms. AMFELS’ new construction record includes
4 platform rigs, 2 drill barges, a skimmer boat, a 76 MW self-contained power
barge facility and a 10,160 metric ton molten sulphur carrier barge.

In mid-1996, the total workforce was about 750, up from 660 a year
earlier.


MAJOR U.S. SHIPBUILDING AND REPAIR FACILITIES

(Vessels 122 min Length and Over)

Name and Address

Maximum Ship Size

Berths/Piers

(LOA--Beam) Usabie Length
SW--Shipway
GD--Graving Drydock
FD--Floating Drydock Longest
MR--Marine Railway Total linear

LL--Land Level Position

Remarks
1) Type of work usually engaged in

2/ Employment - Mid-1996

SL--Syncrolift Lengths are in Meters
Shipbuilding Yards

Alabama Shipyard, Inc. 290 X50 LL 328 1/ Ship construction, conversion and
P.O, Box 3201 642 repair.
Mobile, AL 36652

2/ 697
AMFELS, Inc. 335 X 122 LL 751 1/ General ship repair.
Hwy. 48, P.O. Box 3107 182X 29 FD 751
Brownsville, TX 78523 2/ 660
Avondale Industries, Inc. 265 X38 SW * 521 L/ Moduler ship construction,
P.O. Box 50280 137X27 SW tt 1431 conversion, and repair - all
New Orleans, LA 70150-0280 (2) 311X53 LL ** types of vessels.

(2) 265X38 UW **
305X668 FD ** 2/ 5,178
229X35 FD *
3/ Can accommodate ship up to
366 meters in length.

* Upper main yard.

"* Lower main yard.

"** Westwego Plant.
Halter Moss Point Shipyard 140 X20 LL 140 1/ Construction, conversion and
P.O. Box 767 178 repair of ships, boats, barges.
Moss Point, MS 39563

2/329
Ingalls Shipbuilding, Inc. 259X53 FD * 792 ‘U/ Construction, conversion, and
P.O. Box 149 (5) 259X53 LL 1920 repair - all types of vessels.

Pascagoula, MS 39568-0149

488Xx53 LL *

2/.11,305

* West Bank can only launch ships up to
259 meters X 53 meters. Land Level
Positions constrained by launching
capability.

94


MAJOR U.S. SHIPBUILDING AND REPAIR FACILITIES
Vessels 122 min Length and Over!

Maximum Ship Size Berths/Piers Remarks
({LOA—Beam) Usable Length

SW--Shipway 1/ Type of work usually engaged in
Name and Address GD--Graving Drydock

FD--Floating Drydock Longest 2/ Employment - Mid-1996

MR--Marine Railway Total linear

LL--Land Level Position

SL--Syncrolift Lengths are in Meters

GULF COAST
Topside Repair Yards

TDI North 265 1/ General ship repair.
320 Houston Avenue 265

Port Arthur, TX 77640 2/ 150

Vessel Repair, Inc. 335 U/ General ship repair.
P.O. Box 2207 640

Port Arthur, TX 77643 2/ 55

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MAJOR U.S. SHIPBUILDING AND REPAIR FACILITIES
Vessels 122 min Length and Over!

Name and Address

Maximum Ship Size Berths/Piers Remarks
(LOA--Beam) Usable Length
SW--Shipwey 1 Type of work usually engaged in
GD--Graving Drydock
FD--Floating Drydock Longest 2/ Employmen: - Mid-1996
MR--Marine Railway Total linear
LL-Land Level Position
SL--Syncrolift Lengths are in Meters

LF COAST

Repair Yards with Drydock Facilities

TDI Dockyard 274X 36 FD 213 ‘LI Repair of ships and offshore oil rigs.
P.O. Box 1448 213
Port Arthur, TX 77641
2/228
Texas Drydock, Inc. 168 X37 FD 549 LI General ship repair.
P.O. Box 968 823
Orange, TX 77631-0968 2/350

96


7. Fraser Shipyards, Inc.

Fraser Shipyards, the only major American shipyard and drydock operation
on the western end of the Great Lakes, is located on Howards Bay in Superior, WI.
From 1900 to 1926, Superior Shipbuilding Co. operated the yard and built more
than 50 large Great Lakes ore carriers. The yard became a repair facility of the
American Ship Building Co. from 1926 to 1945 and then became known as
Knudsen Brothers Shipbuilding and Dry Dock Co. Fraser-Nelson Shipbuilding and
Dry Dock Co. took over the yard in 1955, and the present name was adopted in
1964. In August 1977, the yard was sold to Reuben Johnson & Son, Inc., a
Superior, WI, contracting and construction firm, but business continues under the
Fraser name.

Since World War Il, Fraser Shipyards, a complete shipbuilding and ship repair
facility, has specialized in vessel repair and ship modernization. In the past
25 years, Fraser has performed most of the major ship lengthening work on the
Great Lakes. In recent years, however, general ship repair has been its primary
source of revenue.

In the early 1980's, Fraser instituted a major renovation of its fabrication
capabilities, including a 40 percent increase in its platen table capacity
and extension of its railroad trackage to increase steel unloading capabilities by
300 percent. An all-new steel cutting process with hydraulic loading and
unloading tables was installed, as well as major repowering of the shipyard to
support the expanding facilities and to improve existing capacity. New automated
welding equipment and related modern techniques also were introduced to increase
productivity. In 1990 Fraser installed a new metal-forming brake as well as a new
shear.

Fraser maintains two graving docks suitable for ship construction, repair,
and conversion work. One basin can accommodate a vessel 252 meters by
23 meters, and the other a vessel 189 meters by 17 meters. A small graving-type
dock was added in 1973 to build new midbody sections for the lengthening of
bulk-ore freighters under contract at that time.

Fraser’s 10 mobile cranes, ranging from 14 to 136 metric tons can service
all building docks, as well as outfitting and repair berths, and also can be floated
on a crane lighter for work afloat. The company also operates an "outside" repair
fleet totaling 12 units -- tugs, work launches, and barges -- capable of performing
repairs on vessels while they are loading or unloading cargoes in Duluth-Superior
harbor and adjacent ports.

Currently there is no work on order.
In mid-1996, employment was about 40 people, down from 50 a year

earlier.

18


ILDI ER

As of December 31, 1996, ships on order or under construction (naval vessels
1,000 light displacement tons (LDT) and larger and commercial oceangoing ships
1,000 GT and larger) in U.S. private shipyards totaled 46 naval and 14 commercial
vessels (Exhibit 23).

Eight shipyards had contracts for the construction of naval and commercial
vessels. The naval shipbuilding orderbook includes 39 ships scheduled for delivery
in 1998 and later. Three shipyards had orders for a total of 14 commercial ships,
including the three tanker reconstructions at Avondale, which are scheduled to be
delivered during 1997 - 1998. The naval orderbook is comprised of 13 different
types of vessels.

Exhibit 23

U.S. SHIPBUILDING ORDERBOOK

DECEMBER 31, 1996
(1000 LDT/GT & OVER)

SHIP TYPE

WAGB
TANKER

0 5 10 16 20 25
NUMBER OF SHIPS

Navy Ships Merchant Ships

47


MAJOR U.S. SHIPBUILDING AND REPAIR FACILITIES
Vessels 122 m in Length and Over!

Maximum Ship Size Berths/Piers Remarks
(LOA--Beam) Usable Length

SW--Shipway LU Type of work usually engaged in
Name and Address GD--Graving Drydock

FD--Floating Orydock Longest 2/ Employment - Mid-1996

MR--Marine Railway Total linear

LL--Land Level Position

SL--Syncrolift Lengths are in Meters

EAST COAST

Topside Repair Yards
American Shipyard Corp. 731
One Washington Street 1615

Newport, RI 02840-0943

Includes Quonset Point facility.

Associated Naval 137 LI! General ship repair and overhaul.
Architects, Inc. 439
3400 Shipwright Street 2/ 60

Portsmouth, VA 23703

General Ship Repair Corp. 146 L/ General ship repair.
1449 Key Highway 271

Baltimore, MD 21230 2/39

Hood Enterprises, Inc. 366 ‘L/ General ship repair.
One Little Harbor Landing 731

Portsmouth, Ri 02871 2/ 150

Marine Hydraulics 183 ‘U/ General ship repair.
International, Inc. 396

800 East Indian River Rd. 2/282

Norfolk, VA 23523

Metal Trades, Inc. 320 “U General ship repair.
P.O. Box 129 1151

Hollywood, SC 29449-0129 2/147

Moon Engineering 231 LI General ship repair.
Two Harper Avenue 899

Portsmouth, VA 23707 2/ 209

Promet Marine 183 L/ General ship repair.
Services Corp. 366

242 Allens Ave.
Providence, Ri 02905

136

92


13. Metro Machine of Pennsylvania, Inc., Industrial Products Division

Metro Machine of Pennsylvania, Inc. took over the facility formerly operated
by Erie Marine Enterprises, Inc. The 18 hectare shipyard was renamed Metro
Machine of Pennsylvania, Inc. Industrial Products Division. The shipyard is located
on the protected waters of the Presque Isle Bay in Erie, PA. This Great Lakes
shipyard has a history of new construction, repair and industrial work. The yard
built the first Great Lakes 305 meter self-unloading ore carrier and a second
305 meter self-unloading ore carrier.

This shipyard has the longest U.S. drydock on the Great Lakes and can
accommodate ships up to 375 meters in length with a maximum beam of
35 meters. The facility consists of three interconnected buildings containing over
18,581 square meters of production space, enabling raw material coming into the
facility to be totally processed in an environmentally controlled production setting.
The drydock extends into a 6,600 square meter assembly building, both of which
are served by 91-metric ton and 18-metric ton cranes. The complex contains
machine, electrical and outfitting shops with warehouse and office spaces.

Three overhead cranes service the 5,700 square meter fabrication shop.
There are 1,129 meters of pier space at the shipyard with full dockside services.
Auxiliary pier spaces are available for four additional ships. The shipyard has
mobile cranes with capacities up to 113 metric tons. Also, there is a 270-metric
ton stationary revolving crane.

In recent years, about $2.6 million was invested in rehabilitating and
upgrading the facility and equipment.

The shipyard has access to and, as needed, uses several industrial
companies and subcontractors located in the Erie industrial community. An
unfortunate, but unique attribute is there are several thousand skilled craftspeople
from other industries presently unemployed in the Erie and Tri-City surrounding
areas.

As of mid-1996, the yard employed a total of 147 compared to 36 a year
earlier.

30


5. BethShi rrows Point Yari

The BethShip Sparrows Point Yard is located on the Pataosco River in the
port of Baltimore, MD. Established in 1891, the yard became a part of the
Bethlehem organization in 1916 and was a major shipbuilder during two world
wars. During World War Il, Sparrows Point constructed 101 vessels of
16 different classes. During the 1950’s, 1960’s and 1970’s, the yard was among
the most active in the nation, specializing in series construction of standard size
tankers up to VLCCs, freighters, and containerships.

Since 1981, the yard has constructed six integrated tug barge (ITB) tankers,
six offshore drilling rigs, three container feeder barges, and two oceanographic
survey ships for the U.S. Navy. During this same period the yard adapted to
changing markets by increased efforts in ship conversion, repair and industrial
fabrication. In addition to numerous drydockings and repairs on commercial and
naval ships, three RO/ROs have been converted to Maritime prepositioning ships,
12 RO/ROs have been reflagged, and tunnel sections for a new Interstate 664
Hampton Roads tunnel complex and new tunnel sections for the new Interstate 90
Project in Boston have been completed.

Contracts at the yard as of the fourth quarter of 1996 included the
drydocking and repair of the containership ZIM SANTOS (ex WESTERDEICH) for
Hans Peterson & Sohne of Germany, cruise ships STARSHIP ATLANTIC,
SOVEREIGN OF THE SEAS, SEABREEZE, and SONG OF NORWAY, overhaul of the
USNS LENTHALL (T-AO 189) and conversion of LKA’s EL PASO and MOBILE for
MSC and construction of four deckhouses for the Fleves tankers at Newport News.

The major component of this shipyard is the graving dock (the second
largest in the U.S.) for construction or repair of ships as large as 365 meters by
59 meters up to about 300,000 dwt. A two-position intermediate gate has been
installed to increase the flexibility of the graving dock by dividing it into two
sections. In one position the graving dock sections are 274 meters and 91 meters
in length. In the second position, the sections are 208 meters and 157 meters in
length.

In 1996, the graving dock gate was modified to allow “super flooding” of
the dock. This modification will permit the docking of deeper draft ships in the
graving dock.

Complementing the large graving dock, which is served by four 181-metric
ton revolving cranes, the shipyard has a floating drydock capable of lifting 44,735
metric tons. The drydock can accommodate vessels up to 274 meters in length
with a beam of up to 40 meters and a draft up to 9 meters. The entry channel to
the yard has a depth of 9 meters. Four outfitting berths are available with a
combined length of 1,210 meters. The berths are served by four cranes with
lifting capacities up to 45 metric tons. Several mobile cranes of various capacities
are also available.

As of mid-1996, the total labor force at the BethShip Sparrows Point Yard
was 684, up from 242 a year earlier.

14


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58


Inte ion

In compliance with the Merchant Marine Act of 1936, as amended “, the
Maritime Administration (MARAD) conducts an annual survey to obtain information
from the shipbuilding and ship repair industry to be used primarily to determine if
an adequate mobilization base exists for national defense and for use in a national
emergency. This report on the 1996 survey of U.S. shipyard facilities was
prepared by the Division of Cost Analysis and Production, Office of Ship
Construction, and is for general use within the Maritime Administration and other
Government agencies.

Y Section 210

"It shall be the duty of the Secretary of Transportation to make a survey of
the American merchant marine, as it now exists, to determine what additions and
replacements are required to carry forward the national policy declared in
Section 101 of this Act, and the Secretary of Transportation is directed to study,
perfect, and adopt a long-range program for replacements and additions to the
American merchant marine so that as soon as practicable the following objectives
may be accomplished: ...Fourth, the creation and maintenance of efficient
shipbuilding and repair capacity in the United States with adequate numbers of
skilled personnel to provide an adequate mobilization base.”

Section 211

"The Secretary of Transportation is authorized and directed to investigate,
determine, and keep current records of ... (g) The number, location, and efficiency
of the shipyards existing on the date of enactment of this Act or thereafter built in
the United States;"

Section 502(f)

"The Secretary of Transportation with the advice of and in coordination with
the Secretary of the Navy, shall, at least once each year, as required for purposes
of this Act, survey the existing privately owned shipyards capable of merchant ship
construction, or review available data on such shipyards if deemed adequate, to
determine whether their capabilities for merchant ship construction, including
facilities and skilled personnel, provide an adequate mobilization base at strategic
points for purposes of national defense and national emergency.”



Name and Address

SHIP! ING AND REPAIR FACILITI
is 122 m in Length and Over)
Maximum Ship Size Berths/Piers Remarks

(LOA--Beam)
‘SW--Shipway
GD--Graving Drydoc

k

FD-Floating Drydock

MR--Marine Railway

LL--Land Level Position

SL--Syncrolift

Longest

Total linear

1/ Type of work usually engaged in

2/ Employment - Mid-1996

Lengths are in Meters

EAST AST

Repair Yards with Drydock Facilities

Atlantic Marine, Inc. 137 X23 MR 310 ‘1/ Construction of small vessels.
8500 Heckscher Drive 502 Repair and overhaul of small
Jacksonville, FL 32226-3311 and medium size vessels.
2/ 267°
* Includes Atlantic Marine’
Fort George Island employees.
Bath iron Works Corp. 257 X41 FD 305 1/ Ship repair and conversion.
40 Commercial St. 457
Portland, ME 04101 2/ 516
Caddell Dry Dock & 137X 25 FD 169 1/ General ship repair.
Repair Company, Inc. 712
P.O. Box 327 2/179
Staten Island, NY 10310
Colonna’s Shipyard, Inc. 122X 22 MR 274 1/ General ship repair.
E. Indian River Rd. 195X 25 FD 1399
Norfolk, VA 23523 2/336
Detyens Shipyard, Inc. 152X 25 FD 122 1/ General ship repair and conversion.
2383 Highway 41 152X 20 FD 539
Mt. Pleasant, SC 29464 226 X 34 GD 2/ 440
* Leased from Charleston Naval Shipyard
Eastern Technical Enterprises 219X 34 GD 1 1 General ship re
MPN, Inc. 512
Brooklyn Navy Yard 2) NA
Brooklyn, NY 11205
GMD Shipyard Corp. (2) 330X 43 GD 233 1 General ship repair.
Brooklyn Navy Yard, Bldg #386 503

Brooklyn, NY 11205

2/120

90


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MAJOR U.S. SHIPBUILDING AND REPAIR FACILITIES

az

Is 122 min Length and Over)

Name and Address

Maximum Ship Size

(LOA--Bearn)
SW--Shipway

GD--Graving Drydock

FD--Floating Drydock _Longest__
MR--Marine Railway

Total

LL--Land Level Position

SL--Synerolift

Berths/Piers
Usable Length

linear

Remarks
UI Type of work usually engaged in

2/ Employment - Mid-1996

Lengths are in Meters

GULF COAST

Topside Repair Yards

Avondale Industries, Inc. 588 L/ Ship conversion, repair, and
Algiers Division 1112 overhaul.
3103 Patterson Drive
New Orleans, LA 70114 2/ 24
Boland Marine 305 1/ General ship repair and conversions.
Manufacturing Co., Inc. 305
P.O. Box 53287 2) 187
New Orleans, LA 70153
Bollinger Machine Shop 1646 1/ Coast Guard vessel construction.
and Shipyard, Inc. 3712
P.O. Box 250 2/ 510
Lockport, LA 70374-0250
* Max ship = 122 meters LOA.
Buck Kreihs Co., Inc. 341 ‘L/ Ship repair and conversion.
P.O. Box 53305 341
New Orleane, LA 70153 2/175
* Max ship = 122 meters LOA.
Calcasieu Shipyard 137 1/ Construction and repair of
P.O. Box 129 518 offshore vessels.
Sulphur, LA 70664-0129
2/ 130
CBH Services 457 1/ General ship repair.
200 Pier Road 457
Orange, TX 77630 2/ 218
Coastal Marine Service _o ‘U/ General ship repair.
of Texas, Inc. °

1051 Houston Avenue
Port Arthur, TX 77640

51 (subcontracted)

ie

* Vessels as long as 274 meters LOA
berthed alongside waterfront barges.

97


17, T Pacific Shipyar. rporation - le Division

Todd Pacific Shipyards Corporation is located at the Northwest corner of
Harbor Island in Elliot Bay, less than 10 minutes from downtown Seattle, WA. The
shipyard has been located here since 1916. Todd Pacific has repaired or converted
thousands of vessels of all types in this period while building almost 300 new
vessels.

As of December 31, 1996, work in the yard included the construction of
three 150 meter car ferries for the Washington State Ferry System. This contract
was signed in January 1995 with deliveries scheduled between 1997-1999. Todd
Pacific will use this opportunity to transfer modern shipbuilding methods from IHI
of Japan. In addition, Todd is currently occupied with the repair and overhaul of
numerous factory trawlers, containerships, barges, tugs, and ferries, as well as
drydocking at least 100 vessels a year and long-term phased maintenance work on
Navy AOEs.

Todd Pacific has a dual shipway for simultaneous construction of two ships
with a maximum length of 168 meters by 18 meter beam. Combining the two
shipways, a ship up to 168 meters by 29 meters can be built. Todd operates three
floating drydocks, rated at 41,290, 17,780 and 5,791 metric tons respectively.
The largest of the drydocks can accommodate ships up to 287 meters by
41 meters.

Two wharves and five piers provide a total of 1,834 meters of berthing
space for outfitting and repair. The yard is serviced by 15 whirley traveling cranes
with lifting capacities ranging from 23 metric tons to 136 metric tons.

During a two-year period starting in August of 1993 the company undertook
a major site reorganization and extensive capital improvements focused at
improving overall efficiency in new construction and repair. The stores/warehouse
function was consolidated into a more central location. Additional facility changes
have been made to allow Todd to adopt a Japanese-style group technology
construction process. A Company wide LAN computer system has been installed
which is inclusive of AutoCad work stations in both design and lofting. All pipe
shop activities have been consolidated in a larger space and restructured to
accommodate pipe piece family manufacturing and the palletization of finished pipe
pieces. The west steel shop has been outfitted with additional cranes and pin jigs
and is now a block assembly shop. A new plasma arc burning machine has been
installed. The former east steel shop has been reconfigured as a sub assembly
shop. A second enclosed paint facility was added for the pre-outfitted blocks and
units without impacting on capacity for ship repair. The former ordnance building
has been converted to a module assembly shop for engine room modules. The
area containing the former sheet metal loft has been razed, piped for services and
black-topped to provide a block outfitting area.

In mid-1996, total employment at the Seattle plant was 1000, up from

800 a year earlier. Total manning at the peak of the ferry construction is expected
to be over 1,100.

38