Page 6. MAINE COASTAL NEWS March 2009
Waterfront News
Navy Budget Delayed Until April; Cuts to Future Fleets Rumoured
The Obama Administration is continu- a Navy of 275 ships by 2039. Today’s Navy for other Coast Guard programs was substan- construction of commercial ships in U.S.
ing to work with the Department of Defense numbers just 283 battle force ships - 30 ships tially reduced. The $98 million contained in shipyards. With the tightening of the credit
(DOD) on its FY 2010 budget. DOD had been below the nation’s force structure require- the final bill is not enough to stimulate signifi- market and hesitancy of lenders to agree to
directed to reduce the budget it presented to ment of 313 ships. cant job growth through the construction large commercial loans, the federal guarantee
the Office of Management and Budget Coast Guard Funding and overhaul opportunities that would have provided through Title XI financing is even
(OMB) under the Bush Administration by as Slashed in Stimulus been created under the original Senate bill. more essential to ensuring that ships are built
much as $50 billion. A detailed budget is not On February 17th, the President signed Similar to the Coast Guard, commercial in this country. Despite the efforts of several
expected to be sent to Congress until April. into law the $787 billion economic stimulus shipbuilding received no funding to facilitate Senators and Representatives to provide $50
The impact these DOD budget de- bill. The Coast Guard received only $98 mil- ship construction, specifically through loan million in the stimulus bill for Title XI loan
creases will have on Navy shipbuilding is lion for facility investment, funding to pay for guarantees provided under the Title XI Ship guarantees, no money was included to pro-
unclear. Last October, the Navy submitted its cost increases in procurement projects, and Loan Guarantee Program. The Title XI pro- mote new ship construction, and create and
initial FY 2010 ship procurement plan to the costs to repair and improve existing vessels. gram provides ship owners with a federal sustain tens of thousands of jobs through-
Secretary of Defense requesting funding to In the conference report accompanying the guarantee of their commercial bank loan mak- out the U.S. shipbuilding industry.
complete the third DDG-1000 and the LPD-26 bill, Congress estimates that the funding will ing it possible to obtain financing for the
as directed by Congress; funding for one create or sustain 435 jobs. The $98 million
Virginia-class attack submarine, plus ad- appropriated is far less than the $572.5 million
vance procurement for four more submarines contained in the original Senate version of
BIW Shipbuilders Win Mariner’s Award
in FY 2011 and 2012; restart of the DDG-51 the legislation, $87.5 million of which would
Each year, Maine Maritime Museum shipfitters, welders, electricians, fabricators
multi-mission destroyer line; two T-AKE have gone to recapitalize America’s polar
(MMM) names an individual to receive its and pipefitters; program managers, design-
combat logistics force ships; one MLP mo- icebreaking fleet. This move would have cre-
prestigious “Mariner of the Year” award, a ers, naval architects, engineers, ship opera-
bile landing platform ship; three littoral com- ated and sustained tens of thousands of
person who has made extraordinary contri- tors and business professionals. Each day
bat ships; and two joint high speed vessels. highly skilled jobs throughout the country.
butions to the understanding and apprecia- they contribute to the defense of our nation
In the FY 2009 Defense Appropriations Act, As introduced in the Senate, the Ameri-
tion of Maine and its maritime heritage. and to the communities throughout Maine in
Congress had split funded the cost of one can Recovery and Reinvestment Act of 2009
In 2009, the Museum will depart from its which they reside. Together, BIW workers
DDG-1000 multi-mission destroyer and one (S 336) provided $255 million to address pro-
normal practice of recognizing an individual, and MMM honor the 400 year tradition of
LPD-17 amphibious transport dock ship, di- curement shortfalls thereby keeping recapi-
and will honor the Bath Iron Works employ- shipbuilding in Maine.
recting the Navy to budget for the completion talization and construction projects on
ees, collectively, for their extraordinary ac- We concur with Chief of Naval Opera-
of these ships in FY 2010. The remainder of schedule; $195 million for the construction of
complishments building Arleigh Burke class tions Admiral Gary Roughead who, during
the split funding for these ships was included shore facilities; $35 million to maintain high
destroyers for the U.S. Navy. Together, they the most recent destroyer commissioning
in the outgoing Bush Administration budget. endurance cutters; and $87.5 million for the
form the world’s finest team of shipbuilders, ceremony at BIW, described the company as
Any cuts to immediate and long term design of a new polar icebreaker, or the reno-
proving that “Bath-built is best-built.” “a national treasure.” As one of the largest
shipbuilding budgets and procurement vation of an existing polar icebreaker. One of
Among defense leaders, naval officers and Maritime Museums in the country, with na-
plans will not be revealed until the defense America’s three polar icebreakers is currently
seamen, BIW’s accomplishments producing tionally significant artifacts, watercraft, and
budget is sent to Congress. However, rumors not operational. The melting of polar ice is
high quality ships, on time and at competitive buildings, Maine Maritime Museum is proud
point to a future naval fleet that may be much creating new shipping lanes in the Arctic, and
costs, have earned the company a superior to honor the Shipbuilders of Bath Iron
smaller than previously planned. In a Febru- conversely increasing the need for icebreak-
reputation since the 1890’s. The spectacular Works.
ary 16th, Defense News article it was reported ers to keep America’s sea lanes of commerce
results achieved over the last several years Mariner’s Award ceremonies and cel-
that the Navy’s 30-year ship procurement open. However, money in support of a new
building DDG 51 class destroyers are without ebrations are planned for June 26 and 27, 2009
plan may be cut by 52 ships over last year’s polar icebreaker, or to bring the inoperable
parallel in BIW’s great history. at the Museum.
plan. According to an anonymous source icebreaker back on-line, was removed during
BIW’s employees are its strength:
quoted in the article, the draft plan points to consideration of the Senate bill and funding
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(781) 631-3282 (800) 343-0480
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E-mail:
hansen@hansenmarine.com
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