NDIA brief071305

Slide1: 

Overview of NASSCO for NDIA Steve Clarey July 13, 2005

Slide2: 

BACKGROUND

Slide3: 

Original business was founded in 1905 as the California Iron Works. Moved to the waterfront in 1944 to build boats and barges. NASSCO as a corporate entity was formed in 1959, and began constructing large ocean-going ships. In November 1998, NASSCO joined the Electric Boat Corporation and Bath Iron Works as the third shipyard in General Dynamics’ Marine Group. U.S. shipbuilding industry is highly segmented by product type and customer: GD EB and NG Newport News -- SSNs and CVNs GD BIW and NGSS Ingalls - CGs, DDGs, LHDs NGSS Avondale - LMSRs, LPDs, and commercial ships GD NASSCO - AOEs, LMSRs, T-AKEs and commercial ships Kvaerner Philadelphia - commercial containerships and product tankers 25% of NASSCO business is repair. NASSCO is the prime maintenance contractor for the U.S. Navy LHA/LHD amphibious assault ships and the FFG-7 class of surface combatants. NASSCO is the only remaining major repair yard on the west coast capable of performing major battle damage or structural repairs for the Navy. Background

Slide4: 

U.S. Navy Ships

Slide5: 

Commercial Ships

RECENT/CURRENT PROGRAMS: 

RECENT/CURRENT PROGRAMS

Strategic Sealift - LMSR: 

Strategic Sealift - LMSR

Slide8: 

TOTE ORCA Class Alaskan Trailership

Slide9: 

BP – Alaska Class Tanker

Slide10: 

Dry Cargo /Ammunition Ship - T-AKE

T-AKE Innovations: 

T-AKE Innovations Shipboard Warehouse Management System Lightweight Composite Dunnage Improved Cargo Elevators Open Transfer Deck - Bi-Parting Door w/ Integrated Guards Integrated diesel-electric drive Multi-purpose, convertible cargo holds 40-year service life Heavy UNREP kingpost incorporated Dedicated oversize cargo area on transfer deck for QUADCONS, a/c jet engines, etc. Optimized arrangements Dedicated pre-stage areas Wide cargo flow paths

Slide12: 

Full Service Repair on U.S. West Coast Since the 1980s, NASSCO has accomplished more than 300 U.S. Navy surface ship repair availabilities across every class of surface ship.

FACILITIES and WORKFORCE: 

FACILITIES and WORKFORCE

Facilities and Workforce: 

Facilities and Workforce 2 Building Ways 1 Graving Dock 1 Floating Dry Dock 8 Full Service Berths 6 Production Shops 10 portal cranes Port District Leased Property 80 Acres of Land 46 Acres of Water Largest industrial manufacturer in San Diego Region – 4200 employees

Slide15: 

Facility Improvements - $135M by GD

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FUTURE NAVY PROGRAMS

Slide17: 

NASSCO T-AOE(X) Concept Design 3 Non-developmental design drawing on NASSCO’s T-AKE and BP tanker designs Double-hull construction post-panamax beam; ABS rules for CLF vessels Commercial standards; ABS/USCG regulations for cargo segregation 26 knot speed; integrated electric drive (non-developmental commercial system) T-AKE level of survivability with increased redundancy in power and propulsion MSC-operated with reduced number of FAS stations from AOE-1 AOE-1 dry cargo capacities with improved throughput to support CVN 21 BUSINESS SENSITIVE INFORMATION-NOT TO BE PUBLICLY DISCLOSED. ALL INFORMATION CONTAINED IN THIS SHEET IS BUSINESS SENSITIVE AND SHALL BE HANDLED IN ACCORDANCE WITH NAVSEA INST. 4295.1B

Navy Proposed MPF(F) Platforms: 

Navy Proposed MPF(F) Platforms 3 - T-AKE 2 LHA(R) (MEB C2) 1 BLT Lightship Displacement: 30,862 MT Landing Spots: 9/ship Accommodations: 3000/ship Personnel: 1,542 Marines/ship Ship Speed: 22 kts Lightship Displacement: 25,700 MT Landing Spots: 2/ship Accommodations: 194/ship Personnel: 20 Marines/ship Ship Speed 20 kts 3 – Mobile Landing Platform (New Design) 1 –LHD (AVN C2) 1 BLT Lightship Displacement: 28,423 MT Landing Spots: 1/VERTREP Accommodations: 1300/ship Personnel: 1,112 Marines/ship Ship Speed 20 kts Lightship Displacement: 28,333 MT Landing Spots: 9/ship Accommodations: 3000/ship Personnel: 1,542 Marines/ship Ship Speed: 22 kts 3 – LMSR (Modified Design) 2 - Legacy Dense Pack Lightship Displacement: 36,289 MT Landing Spots: 2/ship Accommodations: 345 +500 Surge/ship Personnel: 705 Marines/ship Ship Speed 24 kts Designed for Army Equipment Lightship Displacement: 19,900 MT Landing Spots: 1/ship Accommodations: 62/ship Personnel: 20 Marines ship Ship Speed 18 kts

Slide19: 

T-AKE Seabasing Variant Would have at least one High Capacity Seabased Sustainability (HiCASS) crane on the starboard side plus vacuum mooring and DPS CONOPS: skin-to-skin transfers with commercial containerships to on-load TEUs [20-foot containers] MISSION: Seabased Sustainability

LMSR Seabasing Variant: 

LMSR Seabasing Variant Mission: RO-RO/ Prepositioning, Mission Tailored Packages

Slide21: 

CURRENT LMSR MLP CONCEPT SHIP MLP – Mobile Landing Platform - Concept

Slide22: 

FUTURE COMMERCIAL PROGRAMS

What is the Jones Act?: 

What is the Jones Act? Merchant Marine Act of 1920: Cabotage law requiring that any vessel trading merchandise between two US ports be: Built in the US Includes hull and superstructure Does not include outfitting Be US flagged Owned by a US citizen Crewed by US citizens

Jones Act Overview – Dry Cargo: 

Jones Act Overview – Dry Cargo HAWAIIAN ISLANDS ALASKA TO PUERTO RICO TO GUAM

Jones Act Overview – Tanker Trade: 

Jones Act Overview – Tanker Trade HAWAIIAN ISLANDS ALASKA ANS CRUDE CLEAN PRODUCTS VIA PANAMA CANAL ConocoPhillips

Slide26: 

MARITIME INDUSTRY IN SAN DIEGO

Slide27: 

NASSCO’s Impact on San Diego Economy Largest manufacturing employer and 10th largest private employer in San Diego More than $2 million in annual property taxes Second largest defense contractor in San Diego Annual revenues of $750 million - 75% from new construction; 25% from repair of U.S. Navy ships Annual payroll - $185 million Purchasing/subcontracting in California ~$245M San Diego purchases/subcontracts ~ $152 million San Diego small business contracts ~ $80 million

Slide28: 

People Building Ships - Employment PEOPLE MAKE US SUCCESSFUL Today NASSCO employs more than 4,200 and hiring 3600 in production including salaried supervision 200 naval architects, marine engineers, and designers NASSCO IS ONE OF THE LARGEST SKILLED LABOR EMPLOYERS IN SAN DIEGO Above average hourly wage ($23.43), full benefits, extensive training and education programs Essential employment niche between San Diego’s high technology industries and tourist-based service industry Large minority employer - minorities represent 76% of hourly workforce and 33% of salaried workers

Maritime Issues in San Diego : 

Maritime Issues in San Diego NASSCO – the last remaining shipbuilder on the West Coast A vibrant ship repair and maintenance industry to support the Navy in San Diego and the CNO’s Fleet Response Strategy – 10,000 workers A small but growing cargo industry – 10th Avenue Terminal and the National City terminal – Pasha and an expanding Pasha Hawaii Transport Lines 10th Avenue Terminal – a vital resource for NASSCO to support military and commercial shipbuilding – NASSCO 10,000 tons/year The fastest growing cruise ship port in America – 600,000 visitors in 2005 – aging cruise ship infrastructure Land use and encroachment – expanding residential and tourism versus a healthy marine industry and a strategic homeport for the U.S. Navy

Summary - Key Issues: 

Summary - Key Issues NASSCO is a strategic resource – to the nation – to the Navy – to the Southern California region Navy will always need a balanced capability across mission areas and an efficient industrial base to produce ships for each mission – combatants, submarines, and auxiliary ships NASSCO and GD are investing in NASSCO’s future – the business base, however, must be sustainable A healthy shipbuilding industry requires: Stable programs Sustained funding Program continuity Preservation of key shipbuilding technologies Marine Industry is an essential and growing part of the San Diego economy