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Vessel Conversion and Repair

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emergency dockings, etc., or are their clients that also saw your work mix move more to the commer- plan months in advance for work? cial side of the equation. But, you still do a lot of government work, don’t you? What’s the key differ-

Give us a sense of how that work evolves. Typically, the ence between government repair work and the com- foreign ? ag work is container vessels trading in the Carib- mercial jobs? bean area, as well as offshore oil vessels transiting from

Yes, back in the day, we did a lot of Navy work, but the North Sea and West Africa regions into the US Gulf.

These projects are brought to us through our worldwide when the Navy left Charleston, so did our largest customer agent network. The past several years has seen a slowdown base. We had to change with the tide so to speak and revert due to the oil patch work drying up and the weak EURO. to doing more and more commercial work. Over time, we

We have also seen increased competition for those vessels became less practiced in doing Naval “NAVSEA” vessels in the Caribbean area and the vessel owners are able to and more accustomed to commercial ”Auxiliary USNS/

MARAD/MSC” vessels. However; we see changes ahead reposition those vessel to Asia for much cheaper alterna- tives when it comes to regulatory dockings. We do get 3 coming for all government sector vessels; including but not to 5 foreign ? ag vessels annually that need emergency or limited to U.S. Coast Guard vessels, NOAA assets, auxil- unexpected repairs. Those types of projects are quick and iary ? eet and/or Naval Combatants Ships. One thing is for certain, change is constant and if we are to stay relevant painless for our workers, importantly, for the vessel own- in the domestic ship repair business for the next 50 years, ers and operators.

we have to makes changes to the way we do business in order to accommodate our customers’ requirements. And

At one time, 90% of your business was government we have, and we will continue to do so, as needed.

work, but as the Navy transitioned elsewhere, you MN 17

MN Sept19 Layout 1-17.indd 17 8/27/2019 1:52:42 PM

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