MarAd Sells Two Reserve Fleet Ships for Recycling

Wednesday, May 31, 2006
The Department of Transportation’s Maritime Administration (MarAd) has sold two obsolete vessels in its Beaumont Reserve Fleet for recycling. Southern Scrap Material Company, LLC (SSMC), of New Orleans, La., has purchased two vessels, Allison Lykes and Mallory Lykes, both located in the National Defense Reserve Fleet, Beaumont, TX, for $50,000 apiece. Both vessels are cargo ships built in the mid-1960s. The two ships are scheduled to leave the fleet site for New Orleans the last week of June. “MarAd is taking advantage of the high global prices for recycled steel to get the best bargain for the American taxpayer,” said Acting Deputy Maritime Administrator Julie Nelson, noting that, in the recent past, MARAD has often had to pay to have the ships recycled. “We look forward to more such sales in the near future.”

This is the first MarAd contract for SSMC. Like many other Louisiana businesses, it was hard hit by Katrina. SSMC President, Joel Dupré, stated, “All of us are looking forward to getting back to a pre-Katrina business atmosphere. We expect the federal vessels we buy to help us achieve that goal.” MarAd maintains three National Defense Reserve Fleet sites, holding a reserve of ships for defense and national emergencies. When ships are no longer considered useful for defense or aid missions, MarAd arranges for their responsible disposal.

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