For the U.S. maritime industry and the SIU in particular, announcements don’t come much bigger than the one made April 14 at Kvaerner Philadelphia Shipyard involving SIU-contracted Overseas Shipholding Group (OSG).With former President Bill Clinton delivering the keynote address, the unionized shipyard revealed that it has signed a $1 billion agreement to build 10 double-hulled tankers that will be operated by OSG. The contract includes options to build two additional tankers.
In the U.S. commercial shipbuilding sector, Kvaerner Philadelphia’s announcement apparently is without modern precedent. The company said the five-year construction plan is “believed to be the largest of its kind in American commercial shipbuilding.”
SIU President Michael Sacco said the order for the 10 U.S.-flag vessels “is fantastic for our entire industry. This is a huge step toward ensuring a strong future for the SIU and for the U.S. Merchant Marine as a whole.
“It’s also good news for U.S. national and economic security,” he added. “These ships will help ensure that well-trained, loyal, U.S. citizen mariners remain available to serve as the fourth arm of defense in support of our troops and our country.”
Each of the environmentally sound “Veteran Class” tankers will be 600 feet long and capable of transporting 330,000 barrels of petroleum products. The vessels will have a deadweight tonnage of 46,000 apiece. The first ship tentatively is scheduled for delivery in 2006; the last in 2010.
The vessels are expected to operate in the Jones Act trade.
Mariners aren’t the only ones who undoubtedly welcomed the announcement. Kvaerner Philadelphia officials estimated that the order will keep 800 shipyard workers employed for at least the next five years. Additionally, the construction is expected to help create 6,000 related jobs in the Philadelphia region.
The elaborate shipyard ceremony drew more than 1,000 people including shipyard workers, customers and others.
Clinton, a strong supporter of the U.S. maritime industry throughout both his terms as president, was credited by Kvaerner Philadelphia as playing an important role in the successful, bi-partisan, public-private partnership that set the stage for the shipyard’s revitalization.
“I never lost faith in the American shipbuilding industry and neither did so many of our public servants, workers and private businesses,” he told the crowd. “I salute the men and women of Kvaerner Philadelphia Shipyard for showing all of us once again that it is possible to achieve great things even in the face of seemingly impossible odds. Today’s announcement is good news for the workers here, for America’s maritime industry and for the environment.”
Kjell Rokke, Kvaerner’s owner, credited the unionized shipyard workers with helping make the company successful. “I am proud to be able to show how well the people at the yard have stood up to the challenge of turning this (former) Navy yard into the most competitive yard in the Jones Act market,” he said.
Other speakers at the ceremony included Pennsylvania Governor Ed Rendell, U.S. Rep. Curt Weldon (R-Pa.), Philadelphia Mayor John F. Street and other local, state, and federal government officials who came together under a red, white and blue banner that read, “Building the Future.”
Rendell noted, “Kvaerner Philadelphia stands as a model to the rest of America of how you can transform a former military base into a successful major employer and economic engine that benefits not just one region, but an entire nation.”
Morten Arntzen, president and CEO of Overseas Shipholding Group, stated, “The ten-ship program is OSG’s first giant step to building a world-class U.S. flag shipping business.”
The ceremony also included the announcement of the formation of American Shipping, Inc. as part of Kvaerner’s corporate structure. American Shipping will charter the new tankers to domestic customers, including major oil and chemical producers and suppliers.
Brad Mulholland, former president of Seafarers-contracted Matson Navigation Company, is the CEO of the new subsidiary. He said the new ships will be among the most efficient tankers ever built.
Printer Friendly Page