Submarine project helps Honolulu's shipyards

By William Cole
Advertiser Military Writer

The Navy shipyard at Pearl Harbor is taking on refueling and overhaul work on a nuclear submarine for the first time in 25 years.

Porfirio Aliga, a welder with Marisco Ltd., a Navy subcontractor, yesterday worked on a dry dock support beam. Jeff Widener • The Honolulu Advertiser

The work on the submarine, which the Navy declined to identify by name, is expected to take two years, said Jason Holm, a spokesman for Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility. It also means good news for Honolulu's private shipyards.

Generally, Navy shipyard crews work do most of the work on submarines, while private yards each year receive a portion of surface ship work. But for the first time in fiscal 2003, most surface ship work will be done by private yards as the result of a contract signed last year with Honolulu Shipyard Inc.

That contract has helped Honolulu's private shipyards, which saw a drop in Navy repair jobs to a business-threatening $9 million in 1998, stay afloat with the naval shipyard's new mission.

Private shipyards in Honolulu received $27.8 million in contracts in fiscal 1999; $28.3 million in fiscal 2000; $35.81 million in fiscal 2001; $44.6 million estimated for fiscal 2002, which ends in September; and $35.5 million projected for 2003.

Although the 2003 outlook takes an unexplained drop, Bill Clifford, president of Honolulu Shipyard Inc., said the work levels are much more favorable than in 1998.

In addition, officials at the Navy shipyard yesterday said the yard's workload is expected to remain stable for the next several years.

"The public yard (the Navy shipyard) is working on subs — that's a stable workload for the next five years," said Clifford, who also heads the Ship Repair Association of Hawai'i. "Compared to about $9 million when we were almost dead (in 1998), when we are getting $35 million, that's stability."

The Navy said 20 percent of the Pearl Harbor yard's work force is needed for submarine overhaul work. About 4,000 civilians and 600 sailors work at the yard, which is the state's biggest industrial employer.

They repair and maintain 18 submarines and 12 ships homeported at Pearl Harbor.

Clifford said Honolulu Shipyard's contract with the Navy and the shift in responsibilities of 20 percent of the Navy yard to submarine refueling and overhauling means the surface ship work goes to the private yards.

Honolulu Shipyard, which has a one-year contract with the Navy and four one-year options, in turn has contracted with other private ship yards for repair work. Upcoming work on the guided missile cruiser USS Port Royal, a project in excess of $20 million, involves a subcontract with Marisco Ltd. for some of the improvements.

Clifford said he is optimistic that the Navy work for private shipyards will increase for 2003 to possibly around $40 million.

"We are working with our congressional delegates trying to bring in military sealift work and other work to Pearl Harbor," Clifford said.

The association also is lobbying for three Aegis cruiser "conversion" projects, the first of which is expected to be budgeted in 2006, with several others to receive money between 2007 and 2009. The Navy plans to upgrade all 27 cruisers in its inventory with new radar and displays, tactical Tomahawk cruise missiles and extended-range guided munitions, and upgraded sonar.

"We don't know yet where the cruisers are going to (be upgraded)," said Lt. Brauna Carl, a spokeswoman with the Navy office of information in Washington, D.C.

John Gomersall, project manager at Marisco Ltd., a Navy subcontractor, yesterday examined piping to be used for ship plumbing. Jeff Widener • The Honolulu Advertiser

Young said each contract could be in excess of $50 million, representing one of the biggest ship repair projects in recent decades.

"So if the cruiser conversions go through, you could theoretically see $75 million to $80 million per year (in Navy work with other projects)," Young said. "It means continuous employment, it means hiring people, more jobs."

Local officials acknowledge, however, that other shipyards on the East and West coasts also will be keen to get the work.

"We are trying to solicit support from every level that we can to keep the cruiser conversion program here in Hawai'i," Young said.

The Navy yesterday had few details about the submarine overhaul program, including how many Pearl Harbor-based subs are scheduled for refueling, or where the spent reactor cores will be sent.

Adm. Frank L. Bowman, director of the Navy's nuclear propulsion program, told the Senate Armed Services Committee on April 10 that the 54 operational attack submarines in the Navy inventory are not enough to meet requirements and the service is doing what it can to stretch the force — including refueling the first generation of its Los Angeles-class subs.

The Navy also is refueling some older ballistic missile submarines and converting them into guided missiles ships. None of these subs, however, are based here.

As part of the fiscal 2003 defense budget, two ballistic missile submarines are expected to be modified at Puget Sound and Norfolk Navy shipyards, while the Los Angeles-class sub USS Norfolk, based in Norfolk, Va., will be overhauled in Portsmouth Naval Shipyard, officials said.

Reach William Cole at wcole@honoluluadvertiser.com or 525-5459.