US Navy Shibuilding Schedules Hit by Supply Chain Woes
Virginia-class submarines, an aircraft carrier and frigates being built for the U.S. Navy are now years behind schedule because of skilled labor shortages, design issues, and supply chain challenges stemming from the pandemic, the Navy said on Tuesday.U.S. Navy Secretary Carlos Del Toro in January ordered a comprehensive review to examine national and local causes of the challenges to shipbuilding with Tuesday's results showing that five classes of ships being built for the U.S.
US, Australia to Unveil Submarine Pact to Counter China
U.S. President Joe Biden will meet leaders of Australia and Britain in San Diego on Monday to announce a way forward for Australia to receive nuclear-powered submarines in Canberra's biggest-ever defense project.The three countries announced the so-called AUKUS plan in 2021 as part of efforts to counter China in the Indo-Pacific region.However, questions remain over strict U.S. curbs on the extensive technology sharing needed for the project and about the length of time it will take to deliver the submarines.Australia is expected to buy up to five U.S.
US Navy Boost Aspirations for Unmanned Fleet
The U.S. Navy sees its future fleet comprised of more than 350 manned ships and about 150 unmanned ships hoping technology means lower operating costs as it prepares to counter a growing Chinese fleet, according to a Navy report released Tuesday.The plan for the 2040s and beyond underscored "the need to address long-term competition with China and sustain military advantage against Russia". It forecasts fleet numbers up slightly from a 2021 Navy long-range shipbuilding plan which…
Australia to Get US Nuclear Submarine Tech as China Looms Large
The United States, Britain and Australia will establish a security partnership for the Indo-Pacific that will involve helping Australia acquire nuclear-powered submarines, senior U.S. officials said on Wednesday, as Chinese influence over the region grows.Under the partnership, to be announced on Wednesday by President Joe Biden, British Prime Minster Boris Johnson and Australian Prime Minister Scott Morrison, the United States will provide Australia with the technology and capability to deploy nuclear-powered submarines…
General Dynamics Awarded $9.47 Bln Submarine Construction Contract
General Dynamics Corp was awarded a $9.47 billion contract for the construction of Columbia class submarines, moving the U.S. Navy's top procurement priority out of the early-construction phase, the Pentagon said on Thursday.The contract for the nuclear-powered ballistic missile submarines covers the move to full construction of the first ship in the class, the USS Columbia, as well as continued advanced construction of the second ship, the USS Wisconsin, the Navy said.General…
US Navy Pays Contractors $600 Mln That Had Been Withheld
The U.S. Navy has paid defense contractors $600 million it had withheld due to poor workmanship, hoping the funds would shore up finances for suppliers ravaged by the coronavirus-driven economic downturn, a Navy official said on Tuesday.The move, which follows a similar action taken by the Air Force that released billions of dollars in payments, is aimed at replacing revenue vital Pentagon suppliers have lost in their non-military businesses as the spreading coronavirus has halted…
Conrad Delivers 6,000hp Towboat to Canal Barge
Conrad Shipyard said it delivered the 6,000-horsepower towboat, H. Merritt ‘Heavy’ Lane, Jr., to Canal Barge Company, Inc. (CBC). Built at Conrad Amelia, the Subchapter M-compliant vessel measures 166 feet by 49 by 12 and is powered by EPA Tier IV-compliant Electro-Motive Diesel (EMD) engines.The H. Merritt ‘Heavy’ Lane, Jr. utilizes a time-proven design concept that has been enhanced to modern standards through advanced engineering analysis, the shipbuilder said, adding efficient operation and attention to crew accommodations and noise reduction were paramount in the design process.
Huntington Ingalls Says Steel Tariffs Won't Raise Prices for Now
Huntington Ingalls Industries, the largest shipbuilder for the U.S. government, said new tariffs on steel and aluminum should not impact the price of its own shipbuilding in the near-term, but does not know if tariffs will raise prices for its suppliers. Huntington's Newport News Shipbuilding yard in Virginia has a multi-year financial agreement that guarantees steady pricing for its steel, known as a hedge, Jennifer Boykin, president of Newport News Shipbuilding in Newport News, Virginia, told reporters on Tuesday at the Sea Air Space Exposition in National Harbor, Maryland.
Trump Administration Grants License for Taiwan Submarine Project
The Trump administration has approved the marketing license required for American manufacturers to sell technology to Taiwan that would allow for building domestic submarines, Taiwan’s Central News Agency reported on Saturday.The news agency said Taiwan Ministry of National Defense Chen Chung-chi confirmed that the U.S. Department of State had agreed to grant the license needed to sell the technology to Taiwan that it would need to build its own submarine.The U.S. State Department…
US Navy Asks Huntington Ingalls for Pricing on Two Aircraft Carriers
The U.S. Navy asked shipbuilder Huntington Ingalls Industries on Monday for detailed pricing on the cost of two aircraft carriers, showing the Trump administration is taking a serious look at doubling its order for the most expensive ship in the U.S. fleet. The Navy’s request seeks to determine the savings achievable with a two-ship buy. “This opportunity for a two-ship contract is dependent on significant savings that the shipbuilding industry and government must demonstrate,” said James Geurts, assistant secretary of the Navy for research development and acquisitions.
No Sign Ship Collision Was Intentional -US Navy Chief
There was no indication that the collision between a U.S. Navy ship and a tanker near Singapore on Monday was intentional, U.S. Navy Chief of Naval Operations Admiral John Richardson told reporters at the Pentagon on Monday. Ten U.S. sailors were missing after a collision between the USS McCain destroyer and the tanker, the second involving a U.S. warship and a merchant ship in Asia in about two months, triggering a fleet-wide probe of operations and training. Richardson said, "We have no indication" the collision was intentional.
Skilled Workers Needed to Build Trump's Navy Vision
U.S. President Donald Trump says he wants to build dozens of new warships in one of the biggest peace-time expansions of the U.S. Navy. But interviews with ship-builders, unions and a review of public and internal documents show major obstacles to that plan. The initiative could cost nearly $700 billion in government funding, take 30 years to complete and require hiring tens of thousands of skilled shipyard workers - many of whom don't exist yet because they still need to be hired and trained, according to the interviews and the documents reviewed. Trump has vowed a huge build-up of the U.S. military to project American power in the face of an emboldened China and Russia. That includes expanding the Navy to 350 warships from 275 today.
Commerzbank Sells 18 Ships for $254.5mln
KKR & Co LP's Embarcadero Maritime unit will pay $254.5 million to buy 18 dry bulk and container ships from Commerzbank AG's Hanseatic Ship Asset Management GmbH, the companies said on Thursday. U.S. private equity firm KKR and London-based independent ship operator Borealis Maritime formed the Embarcadero Maritime joint venture in 2013 to invest in distressed shipping assets as several fleets struggled with overcapacity. The acquisition increases Borealis' fleet to 61 vessels, carrying containers, chemicals, and liquefied petroleum gas. To date, the joint venture has deployed more than $600 million to acquire assets. This acquisition includes 13 mid-size container vessels and 5 mid-size dry bulk vessels which Commerzbank took over from borrowers who defaulted on their loans.
Marquette Transportation Reportedly for Sale
Marquette Transportation Company LLC, a U.S. towboat operator, is exploring a sale that could value it at more than $1 billion and has attracted the interest of Dell Inc Chief Executive Officer Michael Dell, according to people familiar with the matter. Marquette's owners, that include its founders and buyout firm KRG Capital Partners LLC, are working with investment bank Harris Williams & Co on an auction for the company that is already underway, the people said this week. Private equity firms and family offices are vying for Marquette, including MSD Capital LP, the private investment firm of Michael Dell and his family, the people added. Marquette has annual earnings before interest, tax, depreciation and amortization of close to $150 million, the people said.
Merger Talks Feed Energy Sector Deal Speculation
Talks that could lead to oilfield services provider Halliburton Co buying rival Baker Hughes Inc may herald increased deal-making in the energy business as companies bet on a protracted drop in oil prices, industry bankers said. Competing service companies including National Oilwell Varco Inc and Weatherford International may also be targets, bankers and lawyers said. In any deal, the incentives will be the same: consolidation would allow them to better weather the downturn and resist pressure from oil producers to slash prices. The Baker Hughes/Halliburton talks have stalled after the companies weren't able to agree on issues including price, people familiar with the matter said Friday. As oil prices fall, oil field service companies get squeezed, one industry lawyer said.
Samson Energy to Sell $1 bln Gulf of Mexico Assets
Oil and gas explorer and producer Samson Energy Company LLC is selling its offshore Gulf of Mexico assets that could fetch more than $1 billion, according to people familiar with the situation. The Tulsa, Oklahoma-based company has tapped Jefferies LLC, the New York-based investment bank, to assist with the sale effort, these people said, asking not be named because the talks are private. A representative for privately-held Samson confirmed Jefferies was working on a sale process for the portfolio of wells and leases, but declined to provide further details. A Jefferies representative declined to comment. The assets up for sale include a portfolio of federal leases as well as investments in wells operated by third parties, according to the people familiar with the matter.
Private Equity Firms Double down on Venari's Offshore Drilling
Gulf of Mexico deepwater oil explorer Venari Resources LLC said on Wednesday it had raised $1.3 billion from original backers Warburg Pincus LLC, Kelso & Co, the Jordan Company and Temasek Holdings, as well as new investors. GIC, Singapore's sovereign wealth fund, and BlackRock Inc's private equity arm participated in the new round of equity commitments, joining private equity firms Warburg Pincus, Kelso and Jordan, as well as Singapore state-owned investment firm Temasek. The four original investors formed Venari in 2012 with $1.1 billion in equity commitments. The new funds will be used to help develop assets Venari has discovered since 2012, as well as bolster the company's exploration program, Venari Chief Executive Brian Reinsborough said in an interview.
