General Dynamics NASSCO Starts Construction of Seventh T-AKE Ship

General Dynamics NASSCO, a wholly owned subsidiary of General Dynamics (NYSE: GD), recently laid the keel for the seventh dry cargo-ammunition ship in the U.S. Navy’s T-AKE program and started construction of the eighth ship this week. Both ships will be delivered to the Navy in 2009. The keel of T-AKE 7 was laid on November 2, while construction of T-AKE 8 began on October 31. Recently, NASSCO launched USNS Robert E. Peary (T-AKE 5) and successfully completed sea trials for USNS Richard E. Byrd (T-AKE 4). Since June 2006, NASSCO has delivered three T-AKE ships to the Navy, and will soon deliver the Richard E. Byrd. The shipyard has contracts to build the first nine ships of the T-AKE class and recently reached an agreement to terms for ships 10 through 14. Designed by NASSCO, the T-AKE class incorporates international marine technologies and commercial ship-design features, including an integrated electric-drive propulsion system, to minimize operating costs over its projected 40-year service life. The primary mission of T-AKE ships is to deliver as much as 10,000 tons of food, ammunition, fuel and other provisions to combat ships at sea. In addition to the T-AKE program, the shipyard is building the first of nine product carriers for U.S. Shipping Partners L.P.