American Shipbuilding Association

AMERICAN SHIPBUILDER

Vol. 14, Issue 2                                                                                             May-June 2008

House and Senate Do Not Increase the Naval Shipbuilding Budget

On May 22nd, the House of Representatives passed its version (HR 5658) of the FY 2009 National Defense Authorization Act. The Senate Armed Services Committee has completed work on its bill (S 3001), which has yet to be taken up by the full Senate. In the FY 2009 budget submitted to Congress in February, the Navy requested $12.4 billion for 7 new ships. The House bill provides $12.5 billion for the procurement of 6 ships, and the Senate bill authorizes $12.3 billion for 7 ships. Rather than increasing the Navy’s topline request and adding ships to the budget, the House and Senate bills essentially reallocate money within the Navy’s ship procurement and National Defense Sealift Fund (NDSF) accounts.

&Both the House and Senate bills authorize full funding for the Navy’s request for the CVN-21 aircraft carrier; one Virginia attack class submarine; one joint high speed vessel; and two T-AKE combat logistics force ships. The Senate added $79 million to the advance procurement request for the Virginia class submarine in order to support acceleration to two submarines per year in FY 2011. The House added $722 million to the Navy’s budget request for advance procurement to accelerate Virginia class procurement to two submarines per year beginning in FY 2010. The House Armed Services Committee also added $278 million in advance procurement for the 13th and 14th T-AKEs.

The Senate bill provides full funding ($2.5 billion) for the DDG-1000 multi-mission destroyer. The House, however, zeroed the Navy’s request for the DDG-1000 and instead authorized $400 million for the advance procurement of surface combatants, giving the Navy the option to use the money towards a third DDG-1000 or two DDG-51s. The last three ships of the DDG-51 class were procured in FY 2005. The Senate added $170 million in advance procurement funding for the 10th LPD-17 amphibious transport dock ship. The House authorized $1.8 billion to fully fund the 10th LPD-17. The Senate LPD-17 authorization came at the expense of advance procurement funding for the Maritime Pre-Positioning Force of the Future amphibious assault ship (MPF(F) LHA(R)). The House took $1.8 billion for LPD-17 from the DDG-1000 program. Both the House and Senate decreased the budget request for the littoral combat ship ($80 million and $123 million, respectively).

The full Senate is expected to complete work on its bill in June. The House and Senate plan to begin mark ups of the FY 2009 Defense Appropriations Bill in mid July.

Shipbuilding Caucus Meets with Chief of Naval Operations

On May 21st, Congressional Shipbuilding Caucus Co-Chair Rob Wittman (R-VA) hosted a breakfast with Admiral Gary Roughead, Chief of Naval Operations, and Rear Admiral Ronald Rábago, Coast Guard Director of Acquisition Programs, to discuss the state of America’s sea services and the Navy and Coast Guard projections for the future sea power needs of the country. The meeting was attended by Representatives Tom Allen (D-ME), Roscoe Bartlett (R-MD), Joe Courtney (D-CT), James Clyburn (D-SC), Susan Davis (D-CA), Thelma Drake (R-VA), Rick Larsen (D-WA), John Larson (D-CT), Joe Wilson (R-SC), and Caucus Co-Chair Gene Taylor (D-MS).

Adm. Roughead praised the Virginia class submarine program, remarking, “We have a great boat. The price is moving in the right direction.” Rep. Allen expressed his concern about simultaneously protecting the surface combatant production line and the industrial base. Adm. Roughead stated that the surface combatant programs are the most unsettled in terms of ship procurement and the future Navy. He acknowledged that the House Armed Services Committee (HASC) cut a lot of money out of the surface combatant line while declining to comment on the DDG-1000 versus DDG-51 controversy started by the HASC action. In response to a question from Rep. Larsen regarding China’s rapid naval buildup and the reemergence of Russia’s Navy, Adm. Roughead referred to how China’s naval leadership know-how had increased greatly from the past generation, and that “their version of short-term is 50 years.” He also noted Russia’s plan to expand its fleet to cover most areas of the globe, with particular interest in the Arctic Ocean. Rep. Bartlett voiced his concern about the decreasing number of ship design engineers and skilled production workers in the country. Adm. Roughead acknowledged the threat of a weakened skilled industrial base, and a comparison was drawn between the country’s current situation and how Great Britain lost the capability to design ships and had to rely on experts from the U.S. shipbuilding industry to retrain them in the art of submarine construction.

Chinese and Russian Navies Continue to Grow

Admiral Rábago spoke on the recapitalization of all major Coast Guard ships, including the need to procure new icebreakers if future Coast Guard budgets permit.

Over the past few months several reports and articles have noted the continued growth in the size and capabilities of the navies of both China and Russia. The Defense Department’s (DOD) annual report highlights China’s rapid military build-up and China’s continued refusal to disclose the purpose behind its comprehensive military modernization. Despite the continued lack of transparency, China continues to devote considerable resources to expanding its naval fleet. According to the DOD report:

• China has the most active ballistic missile program in the world. The country is developing and testing offensive missiles and working on methods to counter ballistic missile defenses. An emphasis has been placed on anti-ship cruise missiles, capable of striking ships at sea from great distances.


• China’s fleet is estimated to include 74 surface combatant ships, 57 attack class submarines, and 55 medium and heavy amphibious ships. Between its indigenous ship production and acquisition of ships from Russia, the country has added ten new classes of ships over the past ten years. China continues an active research and development program in support of an aircraft carrier, and could start construction by the end of this decade. It currently possesses the ability to surge production of its submarine and amphibious ship platforms.


• While China continues to rely on foreign suppliers for many of its technologies, it is steadily developing the ability to domestically produce its naval systems and components. Through acquisition of dual use technologies, obtaining military technologies via legal transactions with countries such as Russia, or espionage of American and European classified defense technology, China will not only possess the largest naval fleet by 2015, but also have a fleet that can match the capabilities of the United States fleet.

Though not equaling the explosive build-up of the Chinese, Russia has publicly committed to making the recapitalization of its naval fleet a priority. Last year, Inside the Navy reported an announcement by Russia’s government to devote $60 billion, or roughly 25% of its state rearmament rebuilding program, to its Navy. The country has stated its intent to increase warship production by 50% by 2010. The first of Russia’s new nuclear ballistic missile submarines is scheduled to join the fleet later this year. This new submarine class will become the core of Russia’s modern submarine fleet. In April, Russia’s Navy Commander and Chief, Admiral Vladimir Vysotsky expressed the country’s plan to build 5-6 full deck, nuclear powered aircraft carriers, capable of carrying 30-40 aircraft. The country currently has only one operational aircraft carrier. Though the carriers are not presently included in the State Arms Program, construction is reportedly slated to begin between 2012 and 2013.

In an April 17th Forbes.com article, Russia’s “Blue Water” doctrine states a desire for active domination of foreign seas and the use of battle groups as a means of projecting both military and political power globally. One of the roles of its new Navy will be to “provide security for vessels traveling in the new arctic shipping routes.” Like China, Russia has been cultivating relationships along shipping routes to the Middle East and with other oil producing countries. In addition to investing in the port infrastructures in Syria, Russia has been developing stronger ties with Libya, Algeria, and Egypt. Russia is also reported to have entered into a contract with Venezuela to build Kilo-class diesel submarines for that country.

ASA Partners Advisory Council

Fred Conroy, Vice President of the Government Business Unit of Dresser-Rand was elected to the American Shipbuilding Association Partners Advisory Council. Council Members are elected by ASA Member companies and provide recommendations to the ASA President and Board of Directors on issues of importance to the industry.

Other Council members include: John DeMaso, President of Sperry Marine, Northrop Grumman; Steve Kantor, President, L-3 Communications Power & Control Systems Group; Andy Marsh, President of Rolls Royce Naval Marine; and Roger Sexauer, President of DRS Power Systems, DRS Technologies, Inc.

New Partners

ComRent International

ComRent International of Owings, Maryland, is an industry specialist in manufacturing and supplying load banks for a variety of applications from testing batteries, generators, computer rooms and power supplies. The load banks are used to coordinate the engine controls, switchgears, and plant operations, testing the systems before they go online and a ship goes to sea.

E-J Enterprises, Inc.

Headquartered in Glen Burnie, Maryland, E-J Enterprises, Inc., is a distributor of aluminum, stainless steel, plastics, and metal extrusions. The company also provides aluminum processing, waterjet machining, stainless cutting, sheet processing, and plasma cutting services.

You Can Make A Difference!

The country needs your help to rebuild its sea power fleet. If you have not already registered, to become a Sea Power Ambassador, join today at www.seapowerambassador.org. If you are already a Sea Power Ambassador, don’t forget to take action via the email alerts and urge the candidates for President and Members of Congress to make rebuilding America’s sea services a national priority.

Well Said!

““… Control of the sea means security. Control of the seas can mean peace. Control of the seas can mean victory. The United States must control the seas if it is to protect your security.”

President John F. Kennedy
June 6, 1963