Austal awarded contract for DOD Joint Service Vessel
Ten vessel contract worth $1.6 Billion
November 13, 2008 - Austal was awarded the contract to design and build the US Department of Defense’s next generation multi-use platform, the Joint High 
Austal JHSV
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Speed Vessel (JHSV), as part of a program potentially worth over US$1.6 billion. The contract is the largest in Austal history
As prime contractor, Austal will design and construct the first 103-meter JHSV, with options for nine additional vessels between FY09 and FY13. Austal partner for the project is General Dynamics Advanced Information Systems.
Similar to the Austal-built “WestPac Express” operated by the US Marines for the past seven years, the JHSV is a joint-use platform operated by both the United States Army and Navy and will be capable of transporting troops and their equipment, supporting humanitarian relief efforts, operating in shallow waters, and reaching speeds in excess of 35 knots fully loaded.
General Dynamics Advanced Information Systems will design, integrate, and test the ship’s electronic systems, including an Open Architecture Computing Infrastructure, internal and external communications, electronic navigation, aviation, and armament systems.
Austal USA’s President and Chief Operating Officer Joe Rella remarked, “This is a great day for Austal, our employees, the City of Mobile, and the State of Alabama. The Austal USA team, the Mobile Chamber of Commerce, the city, and the state have worked collaboratively over the past nine years to establish a first-rate base in Alabama, consisting of a world-class workforce, mature and efficient processes, and a modern production facility, to qualify as a prime contractor for the US Navy. We especially appreciate the efforts of our federal congressional delegation, comprised of Senators Shelby and Sessions and Congressman Bonner, for their support of this work, and Mobile Mayor Sam Jones for his support of our efforts to grow the company. This major shipbuilding program will provide steady-state employment for our workers for years to come. I could not be more proud of the effort put forth by the entire team.”
The vessels will be built at Austal’s US shipyard located in Mobile, Alabama, where work is continuing on the first phase of a new state-of-the-art Modular Manufacturing Facility (MMF). Upon completion in mid-2009, the first half of the 750,000 sq ft MMF will be available for the fabrication of all the JHSV modules.
Austal Managing Director, Bob Browning, said, “Being selected as the prime contractor for a major US Department of Defense shipbuilding program demonstrates Austal’s capabilities as a defense supplier. Austal is very proud to have been selected to build an important part of the US Navy’s fleet. This ten-vessel program is an important step in Austal's strategy to create longer-term, more predictable earnings for our investors."
Austal USA’s 1,000-strong workforce, which is currently completing the US Navy’s 127-meter Littoral Combat Ship “Independence” (LCS 2), as well as a 113-meter high-speed catamaran for Hawaii Superferry, will grow to more than 1,500 as a result of the JHSV program.
Sea trials of the recently-christened “Independence” are scheduled to commence early next year. Browning said the US Navy’s ongoing commitment to a 55-vessel LCS program, as part of its 313-ship fleet, meant there was a strong chance Austal would be awarded a second LCS in early 2009.
Austal wins JHSV contract worth $1.6B
November 12, 2008 - The award wasn't included in the Pentagon's contract announcements, but U.S. Senator Richard Shelby (R-Ala.), a member of the Senate Appropriations Subcommittee on Defense, applauded the Navy’s decision to award the Joint High Speed Vessel (JHSV) contract to Austal USA, located in Mobile, Alabama. This award will sustain Austal’s current workforce in south Alabama.
“I am pleased that the Navy continues to recognize Austal’s tremendous shipbuilding capabilities,” said Shelby. “This $1.6 billion award for ten vessels is a testament to Alabama’s stellar workforce. This award enhances south Alabama’s defense community and complements our state’s service to our armed forces.”
Whether Austal has, in fact, been awarded ten ships in one contract will become clear when the Pentagon makes its announcement. Austal was one of three bidders awarded a Phase I contract in January 2008 and submitted its Phase II Joint High Speed Vessel (JHSV) proposal to the Navy at the end of July. At that time it said it was expected that a single Phase II contract would be awarded later this year for detail design and construction of the lead JHSV with options to build up to ten ships.
The Austal JHSV Team offered what it called "a low risk, proven technology solution combining the expertise of Austal USA, Austal Ships (Australia) and General Dynamics Advanced Information Systems (GDAIS)."
The JHSV is a joint Navy-Army program for a high-speed, shallow draft vessel intended for rapid intra-theater transport of cargo. It reaches speeds up to 45 knots and allows for the rapid transit and deployment of troops as well as equipment and supplies. The JHSV will include a flight deck for helicopter operations and an off-load ramp that will allow vehicles to quickly drive off the ship. It will transport Army and Marine Corps company-sized units with their vehicles, or be a troop transport for an infantry battalion.
The Navy's current acquisition plan calls for building ten vessels between fiscal year 2010 and fiscal year 2015. Source: www.marinelog.com
New $300M Container Port opens
The Alabama State Port Authority has started the operations of a new $300 million container terminal at the Port of Mobile in Alabama, the country's 10th largest port. The Mobile Container Terminal (MCT) has an initial annual capacity of 350,000 20-foot equivalent units (TEU) and will be developed in phases to full capacity at 800,000 TEUs. The MCT has a terminal area of 135 acres, a 2,000-foot-long wharf, an intermodal rail terminal facility and a distribution complex. It is located close to the intersection of five Class 1 railroads, and has immediate access to Interstates 10 and 65. Plans are underway to build a new intermodal rail terminal and the dredging of a deeper turning basin in the 45-foot-deep ship channel. The port is preparing for larger ships that are expected to travel through the expanded Panama Canal in 2014 and more container shipments. Six vessels have already docked at the terminal since its opening in late October. These are container vessels of Maersk of Denmark, CMA CGM of France, and Israel's Zim Integrated Shipping Services. The services of these lines connect seaborne trade between Asia and the U.S. Gulf and East Coast. The MCT currently employs 300 and could raise over 1,300 jobs when fully completed. It is also expected to generate spillover businesses such as warehousing, cargo consolidation and trucking. The new container terminal is a joint venture between the port authority, APM Terminals and Terminal Link. MCT is managed and operated by APM Terminals North America, Inc. of Portsmouth, Virginia, a sister company of Maersk and subsidiary of A.P. Moller-Maersk of Denmark. APM has partnered with Terminal Link, a division of CMA CGM. Source: www.gantdaily.com |
