American Shipbuilding Association

AMERICAN SHIPBUILDER

Vol. 14, Issue 1 January-February 2008

Rep. Rob Wittman Named As Co-Chair of the Congressional Shipbuilding Caucus

Rep. Gene Taylor (D-MS) announced on February 11th that Rep. Rob Wittman (R-VA) will join him as the co-chair of the Congressional Shipbuilding Caucus. Rep. Wittman was elected by special election last year to fill Virginia’s 1st Congressional District seat formerly held by Rep. Jo Ann Davis, who passed away last October.

“I am honored to have been asked to serve as the co-chair of the Congressional Shipbuilding Caucus,” said Rep. Wittman. “The shipbuilding industry is a major economic force within the 1st Congressional District of Virginia. The Hampton Roads region in particular has long enjoyed strong maritime traditions. I am eager to partner with my colleagues in the Caucus to develop new ideas on how best to support the shipbuilding industry in the future.”

Established in January 2005 by Reps. Taylor and Davis, the Congressional Shipbuilding Caucus seeks to educate lawmakers about the U.S. shipbuilding industry and work for the enactment of budgets and policies to rebuild our sea services and shipbuilding industrial base. The Caucus currently numbers 98 Representatives and is one of the largest and most proactive organizations in Congress.

“I look forward to working with Rob Wittman,” Taylor said. “I know he will work diligently to strengthen the Caucus and help me in making it the leading force in rebuilding our nation’s sea services and shipbuilding industry.”

Only 7 Ships Requested for FY 2009 –
House Leaders Stress More Ships Are Needed

Reps. John P. Murtha (D-PA) and Gene Taylor (D-MS), Chairmen of the House Defense Appropriations and House Armed Services Seapower and Expeditionary Forces Subcommittees, respectively, have stated that Congress must work to support at least 10 new naval ships in FY09. This is three ships above the Navy’s shipbuilding budget request submitted to Congress on February 4th.

The Administration is asking for one Virginia class attack submarine; one DDG-1000 destroyer; two T-AKE combat logistics force ships; two littoral combat ships; and one joint high speed vessel. The following chart depicts the Navy’s FY09 shipbuilding budget:

AP = Advance Procurement

Murtha has reiterated his commitment to rebuilding the fleet by stressing the need to fund a minimum of 10 new ships each year for the next five years. Last year, the House version of the FY08 Defense Appropriations Bill (HR 3222) provided full funding for 5 ships and put a down payment on 5 ships above the Administration’s amended budget request. The Navy used some of the additional funding provided by Congress in FY08 to pay for the T-AKE class of ships that the Navy already had in its budget. Specifically, the Navy had requested funds for the 11th ship of the class in FY08, but used these funds to fully fund the 9th and 10th ships of the class. The 11th and 12th ships are being requested in FY09. The Navy also applied the $588 million added by Congress in FY08 to accelerate the Virginia class submarine to 2 per year beginning in FY11 – one year earlier than previously scheduled. As a result of these changes and delays in the LCS program, the Navy bought only 4 ships with the FY08 appropriations.

Both Murtha and Taylor are continuing to examine which ships the House will add to its FY09 Defense Appropriations Bill. Murtha has stated an interest in funding one LPD-17 amphibious transport dock ship, buying 2 additional T-AKEs, and accelerating production of the Virginia class submarine to two per year sooner than FY11.

No Funding Requested for Title XI

For the eighth year in a row, the Administration requested zero funding for new loan guarantees in its FY09 budget for the Title XI ship loan guarantee program. Administered by the Maritime Administration, Title XI provides small and medium sized ship owners with a federal guarantee of 87.5% of a commercial bank loan over 25 years. Title XI is essential to providing affordable financing at reasonable terms and conditions, allowing U.S. ship owners to build replacement ships for the aging Jones Act fleet. The commercial ships built with Title XI financing helps to create and sustain thousands of jobs throughout the U.S. shipbuilding industrial base.

Congress added $5 million for new loan guarantees in the FY08 Consolidated Appropriations Act, which was signed into law in December of last year. However, as the Jones Act fleet rapidly approaches retirement age, more money is needed to satisfy the growing demand for affordable financing to ensure America maintains its domestic commercial fleet. The oceangoing Jones Act fleet is valued at more than $12 billion and nearing the end of its service life.

Virginia Senator Jim Webb Stresses the Need for a Larger Navy

On January 16th, Senator Jim Webb (D-VA) addressed attendees at the annual Surface Navy Association Symposium and Convention. During his remarks, the Senator discussed the build-up during the 1980s to a fleet of nearly 600 ships and how America has since then allowed its sea services to atrophy to a Navy of just 280 ships. Commenting on the dangers to our sovereignty if the Nation’s fleet and shipbuilding industry continue to decline, Senator Webb called upon the Administration and Congress to work together and make rebuilding America’s sea services a priority.

Excerpts of Senator Webb’s speech appear below:
I have a very strong view—and it has been developed over many, many years—that in order for us to meet the strategic interests that we have around the world, we must grow the sea services’ force structure…  The people in the Navy, the people in the Congress, and the people in the administration need to make the case and to do this in a responsible way.  But I do believe it needs to be done. 
…
We are a maritime nation, by virtue of our geographical position, economic necessity, and our political commitments.  American sea power maintains unimpeded access to world markets, it denies our adversaries the use of sea lanes for expansionist or imperialistic reasons, and it maintains international security and stability, including the protection of those nations we count as friends and allies during crisis.  It enables us when war comes to reinforce our allies, to multiply the effectiveness of their armies, to inject our own ground forces when appropriate, to become supreme on the land through control of the sea.  It provides us the single greatest deterrent to nuclear war…
…
The struggle for a properly sized Navy is about today, but in many ways—as someone who has been around this all my life as many of you have—it’s not just about today.  It’s about yesterday, and it’s about tomorrow… So, all of us need to do our part.  It’s important for the nation to have the right strategy… 
Industry News

Jamestown Metal Receives Contract for Tanker Modules

Jamestown Metal Marine Sales, Inc. of Boca Raton, Florida, announced that it has been awarded a contract by American Heavy Lift (AHL) to supply the superstructure modules for three new shallow draft 49,000 DWT tankers. Jamestown will provide the complete construction and outfitting of these modules, which will be transported upon completion to the vessel assembly shipyard in Mobile, Alabama, where they will be integrated into the vessel’s hull.

Jamestown will fabricate the steel structures at their designated site, where the electrical, piping, machinery, HVAC and joiner outfitting also will take place. These accommodation houses and machinery casings are being constructed under a modular concept to provide completed modules that will be organized into the completed vessel. Jamestown’s experience includes having supplied similar deckhouses to Newport News Shipbuilding for the Double Eagle Tankers.

Jamestown Metal Marine Sales, Inc. has been providing materials and installing joiner outfitting in the marine industry for over 35 years and offers complete electrical, piping and HVAC system design, supply and installation.

New Partners

American Superconductor

American Superconductor Corporation (AMSC) headquartered in Devens, Massachusetts, is a superconductor-based electricity systems company offering an array of solutions based on two proprietary technologies: programmable power electronic converters and high temperature superconductor (HTS) wires. The company designs and manufactures HTS ship propulsion motors and power electronic drives.

Northrop Grumman Marine Systems

Located in Sunnyvale, California, Northrop Grumman Marine Systems is a leading provider of missile launch systems, propulsion systems and power generation systems for submarines and surface ships.

Northrop Grumman Undersea Systems

Northrop Grumman Undersea Systems of Annapolis, Maryland, is engaged in the development of acoustic transducers, sonar systems, and undersea vehicles.

Triumph Controls

Triumph Controls, LLC, located in North Wales, Pennsylvania and Shelbyville, Indiana, is an international leader in the design and manufacture of mechanical and electro-mechanical control systems for naval vessels. The company produces remote valve operators for naval shipboard and industrial applications.

Become A Sea Power Ambassador

The start of 2008 is marked by the smallest naval fleet America has possessed in 91 years. As this country prepares to elect a new President and Congress begins work on its funding bills for fiscal year 2009, you can let your voice be heard on the need to rebuild the nation’s Navy, Coast Guard, and merchant fleets. As a Sea Power Ambassador, you will receive news articles about decisions that are being made that will impact the security of this country. You will also have the opportunity to “take action” and let your elected officials know that rebuilding America’s sea services must begin today. Visit the Sea Power Ambassador website and click Join Now!
www.seapowerambassador.org

Well Said!

“Consider the operational environment that goes into [shipbuilding], the things that you have to pass down in a mentoring way to the people who are coming behind you, and that you have learned from the people who were ahead of you. Those kinds of traditions, those kinds of set skills can’t just be learned if you lose the foundation of your service.”

Senator Jim Webb (D-VA)
Surface Navy Symposium and Convention
January 16, 2008