Posted on: Tuesday, January 15, 2002

Military skeptical about use of liner

By John Porretto
Associated Press

MERIDIAN, Miss. — The secretary of the Navy said yesterday that the service will consider converting a partly built cruise ship for military use, but the idea is "probably a stretch."

Senate Minority Leader Trent Lott, R-Miss., suggested Friday that the Navy take over the project as a way to limit huge losses for taxpayers and the shipbuilder. The public-private venture was halted when tourism took a hit after the Sept. 11 terrorist attacks.

Navy Secretary Gordon England expressed skepticism yesterday about the cost of converting the cruise ship to the kind of vessel needed by the Navy for command and control missions.

"It's probably a stretch, frankly, to do that, but we'll decide what's in the best interest of the nation and the Navy," England said.

England was touring naval installations in Mississippi, including the Pascagoula Homeport, located next door to the yard where the cruise ship was being built.

In October, Northrop Grumman suspended work on two 1,900-passenger cruise ships it was building for Hawai'i operations of American Classic Voyages Inc., which filed for bankruptcy protection after Sept. 11.

Work halted after the U.S. Maritime Administration ended its guarantee of $1.1 billion in loans. The first ship is 40 percent complete; the second hadn't been started.

Taxpayers are on the hook for $187 million. The shipbuilder's losses are expected to exceed $10 million.

Construction of the first vessel began two years ago. It was to be the largest cruise ship ever built in the United States and first in 40 years.