Updated: November 19, 2020 (Originally published August 5, 2019)
U.S. shipbuilder Philly Shipyard has started work on its first government contract, kicking off short-term repair work on the U.S. Department of Transportation Maritime Administration vessel SS Antares.
The The SS Antares is an Algol-class vehicle cargo ship owned by MARAD and managed by TOTE Services, LLC. The ship is in the yard to undergo routine repair and maintenance during its scheduled dry docking every five years. Work on the SS Antares is expected to last approximately two months.
Philly Shipyard, the leading Jones Act shipbulider on the U.S. East Coast, is seeking to diversify its business by expanding its services to government contracts and repair work in addition to commercial oceangoing newbuilds. All shipbuilding work at Philly Shipyard has been on hold since the delivery in March of the second of two containerships for Matson. Since then, the shipyard’s workforce has been reduced to a core group employees primarily tasked with securing new orders and transitioning the yard to a compliant government contractor.
Philly Shipyard’s operating revenues and other income fell to zero in Q2 2019, down from $18.9 million in Q1 2019 and $83.4 million in in the same period in 2018, when the yard employed some 1,200 workers.
“Philly Shipyard’s objective is to win similar repair and maintenance contracts going forward in order to continuously utilize its drydocks as part of its plan to reconstitute its workforce,” the company said today in a statement announcing the commencement of work on the Antares.
“I am thrilled and honored that Philly Shipyard has been selected for the Antares repair,” said Philly Shipyard President and CEO Steinar Nerbovik. “It is an important milestone for the yard as we transition into a mix of commercial and government work, and it has been exciting to recall some of our skilled men and women for this opportunity. We are confident that we will be able to deliver on our commitments to MARAD and TOTE and are thankful for this opportunity to serve.”
Sign up for gCaptain’s newsletter and never miss an update
Essential maritime and offshore news, insights, and updates delivered daily straight to your inbox
America builds under 1% of commercial ships. The White House Maritime Action Plan bets on vessel fees, a trust fund, and zones, but Congress is the clock.By Captain John Konrad...
Blue Water Autonomy unveiled the Liberty Class, a privately funded 190-foot autonomous surface vessel designed for serial production as the U.S. Navy looks to expand fleet capacity.
The U.S. Labor Department has issued new guidance easing insurance requirements under the Longshore and Harbor Workers’ Compensation Act, a move aimed at lowering costs for U.S. shipyards and strengthening the domestic maritime industrial base.
Subscribe to gCaptain Daily and stay informed with the latest global maritime and offshore news
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
