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MARINE LOG AWARDS
October 19, 2001 

NASSCO wins $709 million T-AKE contract  

General Dynamics subsidiary National Steel and Shipbuilding Company (NASSCO), has been awarded a $709 million contract by the U.S. Navy. It covers design and construction of the first two ships in the T-AKE program, a new class of combat logistics force ships. The award includes options exercisable by the Navy for 10 additional ships over the next six years for a potential contract value of $3.7 billion. 

"This award is a fantastic win for the company and a great tribute to the tremendous gains in product quality and productivity made by the men and women of NASSCO over the past five years," said NASSCO president Richard Vortmann,"The T-AKE contract continues NASSCO's long tradition of building underway replenishment ships for the Navy, and will follow closely on the completion of our very successful eight-ship strategic sealift program." 

Vortmann added that the T-AKE contract concludes more than two years of intense competition among America's leading shipyards. He said that if all 12 ships of the T-AKE program are awarded to NASSCO, the contract will be the largest program in the company's 40-year shipbuilding history. It will provide a base of business for almost 10 years and maintain shipyard employment at least at the current 2,500-employee level. 

Functional design work on the T-AKE will begin immediately, with delivery of the first ship scheduled for 2005.  

The T-AKE 1 is a dry cargo ammunition ship; it will be the lead ship in the Lewis and Clark class. Designed to operate independently for extended periods at sea while providing underway replenishment services, the T-AKE will directly contribute to the ability of the Navy to maintain a forward presence. These ships will provide logistic lift from sources of supply either in port or at sea and will transfer cargo -- ammunition, food, fuel,repair parts, and expendable supplies and material -- to station ships andother naval warfare forces at sea. 

The T-AKE will replace the aging T-AE ammunition ships and T- AFS combat stores ships, which are nearing the end of their service lives. 

The NASSCO T-AKE design selected by the Navy will be 210 meters (689 feet)in length and 32.2 meters (105.6 feet) in beam, with a design draft of 9.12 meters (29.9 feet). The ship will carry almost 7,000 tons of dry cargo and ammunition and 23,500 barrels of marine diesel and jet aviation fuel. The ship will be operated by the Military Sealift Command and will be built to commercial standards, incorporating the latest in marine propulsion, ship safety and navigation, and environmental control systems. The T-AKE will be the first modern Navy ship with an integrated electric-drive propulsion system, and has been designed for improved cargo handling efficiency and to minimize the costs of operation and maintenance over its expected 40-year life.  

The T-AKE will be built at NASSCO with the assistance of a team of leading marine industry suppliers, many of whom participated in the design competition and are supporting the company's two commercial shipbuilding contracts. These include two trailerships for Totem Ocean Trailer Express, Inc.(TOTE), and three double-hull tankers for BP Shipping Company of Alaska.  

NASSCO's T-AKE design draws heavily on the designs of these two advanced-technology commercial ships, both of which feature integrated electric-drive propulsion systems.  

MarAd nomination goes to senate  
The White House press office announced yesterday that the nomination of William Schubert as U.S. Maritime Administrator has been sent to the Senate. 

FGH retains restructuring advisor  
Friede Goldman Halter, Inc. says it has engaged Glass & Associates, Inc. Glass principal Jack R. Stone, Jr.  will serve as chief restructuring advisor. He will report directly to the Restructuring Committee of the FGH board.  

FGH says Stone will "oversee all restructuring activities, working closely with company management andthe investment-banking firm of Houlihan Lokey Howard Zukin."  

"This action was taken," says FGH, "to provide a separation of the restructuring effort from the day-to-day business operations, which are under the direction of John F. Alford, CEO." FGH says that interested parties who want to explore a financial or strategic business relationship with Friede Goldman Halter, Inc. should contact Jim Decker of Houlihan Lokey Howard Zukin at 404/495-7012 or Mr. Stone at 214/673-2868.  
 
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