Friday, September 25, 2009
50 P/E?, Oh shoot, could be half that...
Austal Ltd.
ASB: Australian Stock Exchange
LAST A$2.57 AUD
CHANGE TODAY -2.28%
P/E 50
Thursday, September 24, 2009
Interesting news between the lines today on LCS, JHSV, and A-615 and A-616
"Littoral Ships, Other Weapons Cut in New U.S. Navy 5-Year Plan"
By Tony Capaccio
Sept. 23 (Bloomberg) -- The U.S. Navy has proposed a new five-year budget that cuts by almost half its purchases of a new warship that operates close to shore, a potential blow to Lockheed Martin Corp. and General Dynamics Corp.
The Navy would buy 15 of these ships through 2015, down from 29 in its plan of a year ago, and trim spending overall by 4.5 percent, according to an unreleased budget document. That’s the goal set by top Defense Department officials.
Lockheed and General Dynamics are the prime contractors for the new Littoral Combat Ship. Each has a contract to build two and would have to compete for contracts for the next 15...
The ships are designed for mine clearance, submarine hunting, humanitarian relief, and other missions in shallow coastal waters called littorals. They have a draft of no more than 20 feet, enabling them to operate close to coasts in the Persian Gulf, Korean peninsula and elsewhere...
Programs Deferred
The Navy would trim about $25 billion through 2015 by deferring or canceling weapons programs, including a total of about $18 billion in its shipbuilding account, which includes the littoral ship...
The Navy plan also would cut through 2015:
-- Two of 11 planned high-speed [JHSV], shallow-draft troop and cargo vessels managed by the Navy to transport Army and Marine Corps units and helicopters. Austal-USA is building the vessels in Mobile, Alabama.
[A good guess is those Two JHSV's they no longer will be building are A-615 and A-616. I'd say it's a sure thing they will be retrofitted and "painted gray."]
Tuesday, September 22, 2009
Was ferry's side door open? and did cargo shift?
From: http://fairplay.co.uk
"Was ferry's side door open?"
Daily News 22 Sep 2009
OFFICIALS investigating the Superferry 9 sinking are today addressing the possibility that the ro-pax’s crew failed to seal the side entrance before it sank in the Philippines. This entrance, positioned on the lower portion of the ship, should always be closed because it is the closest to the water, said the Board of Marine Inquiry, which is seeking to question workers at the last port where the ferry called before sailing. If the crew failed to seal that entrance tightly, the entrance would have been exposed to water ingress when the ro-pax listed by 25 degrees, said Alejandro Flora, BMI panel member and Coast Guard vice commandant. The board moved to the side-door theory after the master and crew testified that the 7,268gt ship’s cargo of containers and vehicles had been properly lashed and secured. Still, cargo movement is thought by investigators to have contributed to the sinking when the ship listed. Superferry 9 sank off the Zamboanga Peninsula on 6 September; 10 people were killed.
Monday, September 21, 2009
PBN: Callin' It Like It WAS
Economic Snapshot
Friday, September 18, 2009
"Wobbly support wasn’t Superferry’s biggest problem"
Pacific Business News (Honolulu)
...We long have believed that the Superferry was operating with flawed business assumptions. Putting aside state officials’ blunder in reasoning that the Superferry didn’t need an environmental assessment, we are not convinced that there was enough passenger, vehicle and freight revenue to cover the cost of running two big ships.
In its brief time in service, the ferry showed it was unreliable and that the trip to Maui produced a nightmare of seasickness. Small businesses found it still made more sense to put their goods on a barge than to commit a driver and truck to an all-day run to or from Oahu.
Marching and marauding politicians and businesspeople can’t overcome a bad business plan or flawed legal advice. Lingle’s shots were off the mark and unrealistic.
Saturday, September 19, 2009
This Thing's More Realistic for the Littorals than either LCS-1 or LCS-2
More pictures of the USCGC Bertholf (WMSL 750)
From Wikipedia:
USCGC Bertholf (WMSL-750) | |
Career (USCG) | |
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Ordered: | January 2001 |
Builder: | Northrop Grumman Ship Systems, Pascagoula, Mississippi |
Cost: | $285 million |
Laid down: | March 29, 2005 |
Launched: | September 29, 2006 |
Christened: | November 11, 2006 |
Commissioned: | August 4, 2008 |
Homeport: | Alameda, California |
Motto: | "Legends Begin Here" |
Status: | Commissioned |
General characteristics | |
Type: | National Security Cutter |
Displacement: | 4500 LT |
Length: | 418 feet |
Beam: | 54 feet |
Draught: | 30 feet |
Propulsion: | Combined diesel and gas |
Speed: | 28+ knots |
Range: | 12,000 nm |
Complement: | 113 (14 Officers) |
Sensors and processing systems: | EADS 3D TRS-16 Air Search Radar SPQ-9B Fire Control Radar AN/SPS-73 Surface Search Radar AN/SLQ-32 |
Electronic warfare and decoys: | AN/SLQ-32 Electronic Warfare System |
Armament: | 57 mm gun and Gunfire Control System Close-In Weapons System 2 SRBOC/ 2 NULKA countermeasures chaff/rapid decoy launcher 4 50 Caliber Machine Guns 2 M240B 7.62mm Light Machine Guns |
Aircraft carried: | (2) MH-65C Dolphin MCH, or (4) VUAV or (1) MH-65C Dolphin MCH and (2) VUAV |
Aviation facilities: | 50x80 foot flight deck, hangar for all aircraft |
From: http://www.deagel.com
Description: The Maritime Security Cutter, Large (WMSL), formerly known as the National Security Cutter (NSC) , is a highly capable, cutting-edge, world-class, long endurance cutter designed to replace aging cutters owned by the US Coast Guard. The Integrated Coast Guard Systems (ICGS), a Northrop-Grumman and Lockheed-Martin joint venture, is responsible for the execution of the program. The US Coast Guard Integrated Deepwater Systems program is the parent program for the WMSL cutter. The parent program envisages three classes of cutters to meet the US Coast Guard present and future requirements. Moreover, a new manned fixed-wing aircraft fleet, new and upgraded helicopters, and cutter- and land-based unmanned aerial vehicles (UAVs) are needed.
The Maritime Security Cutter shares design team, common systems, logistics and training with the Offshore Patrol Cutter (OPC) and the Fast Response Cutter (FRC). The WMSL will have an aft launch and recovery area for two rigid hull inflatable boats, a flight deck for manned and unmanned rotary wing aircraft and advanced command and control electronics. The 418-ft (128.3 meters) long and 4,000-t class ship will feature a CODAG (Combined Diesel and Gas) propulsion system. Besides, these ships will be provided with NBC detection and defense equipment as well as more powerful weapons, air and surface search radars and improved Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) capabilities.
General Electric Transportation's LM2500 gas turbine was chosen to drive the new US Coast Guard's Maritime Security Cutter Large (WMSL) on November 29, 2004 under Integrated Deepwater System (IDS) program. The contract was awarded by Detroit Diesel Corporation which is the prime contractor for the WMSL integrated propulsion system. The integrated propulsion system selected for the WMSL relies on a CODAG arrangement with a single GE LM2500 gas turbine and two MTU 20V1163 diesel engines. The power output is estimated at 48,960 shaft horsepower.
The US Coast Guard awarded a $11 billion, 20-year contract to Lockheed-Martin and Northrop-Grumman in June 2002 for Deepwater program. Despite the $11 billion contract, the total cost of this program could exceed $17 billion. Deepwater includes 91 (8 NSC, 25 OPC and 58 FRC) new-built cutters, 35 fixed-wing aircraft, 34 helicopters, 76 UAVs, 93 upgraded helicopters and 49 upgraded cutters. Up to eight National Security Cutters are expected to be delivered to the Coast Guard from 2008 through 2017.
In June 2004, the ICGS team received the contract for the first WMSL to be manufactured at Northrop Grumman Ship Systems Ingalls Operations, Pascagoula, Mississippi. Construction on the first ship, named NSC 1, began in September 2004. On 18 January 2005, the US Coast Guard awarded ICGS a further contract to begin construction and delivery of the second WMSL. The WMSL 750, formerly NSC 1, had its keel laid on March 29, 2005. The keel laying ceremony of the second National Security Cutter (WMSL 751) was held at Northrop-Grumman Pascagoula facilities on September 11, 2006. The first high endurance cutter (WMSL 750) was christened Bertholf at Northrop Grumman's shipyard on November 11, 2006. It was delivered to the US Coast Guard in 2007 and is due for commissioning during 2008.
Friday, September 18, 2009
Too much...
Thursday, September 17, 2009
Major LCS Shakeup...Somebody's on the Outs
Here is the official press release that the above two blog entries and article help explain:
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Littoral Combat Ship Down Select Announced The Navy announced today it will down select between the two Littoral Combat Ship (LCS) designs in fiscal 2010. The current LCS seaframe construction solicitation will be cancelled and a new solicitation will be issued. At down select, a single prime contractor and shipyard will be awarded a fixed price incentive contract for up to 10 ships with two ships in fiscal 2010 and options through fiscal 2014. This decision was reached after careful review of the fiscal 2010 industry bids, consideration of total program costs, and ongoing discussions with Congress.
“This change to increase competition is required so we can build the LCS at an affordable price,” said Ray Mabus, secretary of the Navy. “LCS is vital to our Navy’s future. It must succeed.” “Both ships meet our operational requirements and we need LCS now to meet the warfighters’ needs,” said Adm. Gary Roughead, chief of naval operations. “Down selecting now will improve affordability and will allow us to build LCS at a realistic cost and not compromise critical warfighting capabilities.”
The Navy cancelled the solicitation to procure up to three LCS Flight 0+ ships in fiscal 2010 due to affordability. Based on proposals received this summer, it was not possible to execute the LCS program under the current acquisition strategy and given the expectation of constrained budgets. The new LCS acquisition strategy improves affordability by competitively awarding a larger number of ships across several years to one source. The Navy will accomplish this goal by issuing a new fixed price incentive solicitation for a down select to one of the two designs beginning in fiscal 2010.
Both industry teams will have the opportunity to submit proposals for the fiscal 2010 ships under the new solicitation. The selected industry team will deliver a quality technical data package, allowing the Navy to open competition for a second source for the selected design beginning in fiscal 2012. The winner of the down select will be awarded a contract for up to 10 ships from fiscal 2010 through fiscal 2014, and also provide combat systems for up to five additional ships provided by a second source. Delivery of LCS 2, along with construction of LCS 3 and LCS 4 will not be affected by the decision. This plan ensures the best value for the Navy, continues to fill critical warfighting gaps, reduces program ownership costs, and meets the spirit and intent of the Weapons System Acquisition Reform Act of 2009.
LCS is a fast, agile and modular warship designed to complement the Navy’s multi-mission platforms with warfighting capabilities from littoral irregular warfare to mine, anti-submarine and surface warfare. There are two different LCS hull forms: a semi-planing monohull and an aluminum trimaran. The seaframes are designed and built by two industry teams led by Lockheed Martin and General Dynamics. Of the planned 55-ship program, LCS 1 is commissioned, LCS 2 is undergoing sea trials, and construction has started for LCS 3 and LCS 4. The Navy remains committed to the LCS program and the requirement for 55 of these ships to provide combatant commanders with the capability to defeat anti-access threats in the littorals, including fast surface craft, quiet submarines and various types of mines. The Navy’s acquisition strategy will be guided by cost and performance of the respective designs as well as options for sustaining competition throughout the life of the program. For additional information contact the Navy News Desk at (703) 697-5342. |
Monday, September 14, 2009
Relentlessly "at the trough" of government assistance
"Christmas in August"
by Larry Pearson (9/9/2009)
Last month this column reported on three major grant programs by the U.S. government to encourage smaller shipyards to increase productivity and efficiency.
The $60 million grant program to 19 states to build or rehabilitate ferries and their supporting land infrastructure seemed “right on the money.” So did the $17.1 million from the Department of Transportation (DOT) awarded to 14 shipyards in 10 states. Both these awards were made in early July.
On July 14, the big money awards were announced totaling $100 million. These awards went to 67 shipyards from the economic stimulus bill. No sooner than they were announced, they were canceled; the secretary of transportation calling the method used to determine the awards as “incomplete.”
A month and two days later the awards were reissued adding six shipyards to the total, canceling three awards and adjusting the amounts on two others.
These awards and those made with the $17.1 million grants were for the basic shipyard building blocks — welding equipment, press brakes, cranes, painting systems, dry docks and other such things...
...Others which received at least $2 million included:
• Pacific Shipyard International, Honolulu, Hawaii, $3.9 million
• Atlantic Marine, Jacksonville, Fla., Philadelphia and Boston, $2.6 million
• BAE Systems, San Diego and San Francisco, Calif., $2.2 million
LCS funding cut by U.S. Senate Committee
"LCS funding cut, $1.7 billion in extra destroyer money allocated by Senate panel"
Posted by Sean Reilly, Washington Bureau September 11, 2009
WASHINGTON -- The Senate Appropriations Committee has voted to chop funding for the littoral combat ship program next year while giving the Navy $1.7 billion for a destroyer that it didn't request under a defense spending bill approved Thursday.
The bill, approved by the committee Thursday on a 30-0 vote, would give the Pentagon about $1.1 billion to order two littoral combat ships--instead of the three requested by Navy brass-- in fiscal 2010, which begins next month. The bill must still be approved by the full Senate and then reconciled with a House measure that furnishes enough money for four LCS buys next year...
While cutting the LCS program, the appropriations committee, which includes Alabama Sen. Richard Shelby, R-Tuscaloosa., and Mississippi Sen. Thad Cochran, R-Oxford...Friday, September 11, 2009
Maui News Editorial Board/Publisher's Zinger on This
September 10, 2009
"...Frankly, we are tired of politicians who will not admit they made a mistake. Fess up, governor, your administration blew it. The Superferry may not have made it even with an EIS, but without one, it was doomed. And your administration is the one that let it sail without one.
So governor, the next time you are looking for someone to blame for the failure of the ferry, try looking in the mirror. Without that personal admission, everything else is just sour grapes."
Wednesday, September 9, 2009
Freudian Slip: Lingle's Recent Rantings on Superferry
"Lingle: Politicians' role in Superferry 'pathetic'"
Pacific Business News (Honolulu)
Gov. Linda Lingle told a group of Native Hawaiian business leaders on Maui that the lack of support by the business community and “pathetic” political leadership contributed to the demise of the Hawaii Superferry.
“I think there are few episodes that have been as pathetic in the lack of political leadership as there were in that Superferry situation,” Lingle told the Maui Native Hawaiian Chamber of Commerce meeting on Friday.
“I know that in my opinion, the majority of people support the Superferry – certainly the business community did – but they weren’t very clear about it. They weren’t very vocal about it. They didn’t really put too much effort. They certainly didn’t put much effort as those who were against.”
Facing a series of adverse court rulings that curtailed and then halted its operation between Oahu and Maui, the Hawaii Superferry stopped sailing in March and later declared bankruptcy. Various courts found that the Lingle administration and the Legislature had circumvented a state law requiring an extensive environmental review before the Superferry was allowed to operate.
In a 35-minute speech to the Maui group, the Republican governor didn’t dwell on the Superferry but used it as an example of how groups tend to coalesce around efforts to oppose projects or initiatives, but rarely offer alternatives.
“The Superferry decision and the lack of support that we received from the business community and the political leaders of Maui had consequences. Everybody knew what they were against. Everybody was quick to talk about the process that wasn’t followed, and that we should have followed a different process, in their opinion. They drafted laws to tie our hands, and to make it difficult for the Superferry to survive
“There were consequences for the political leadership here not stepping up and coming out strong and saying, ‘We need this. If there were steps that weren’t followed, let’s get that handled; but we’re for this alternative for our people.’ ”
With projects like a proposed telescope for Haleakala, an undersea cable to bring power to Oahu from Molokai and Lanai and various windfarms and wave-energy plans for Maui, Lingle urged business leaders and citizens to consider the long-term consequences of opposition...
A video of Lingle’s speech can be found at www.hawaii.gov/gov
Comments:
Public opinion doesn't really mean anything on that unless the public and their government want to pay for the ships and run the whole operation at a subsidized loss. There are places in the world where the local government does do that, like Trinidad and Tobago, but that is because they don't have a good interisland airline industry. An interisland ferry never has and never will do well here, 1.) because we have a very competitive interisland airline industry, and 2.) because the interisland distances means that from a cost effective fuel consumption standpoint, the one way transit speed would take about 5 hours. The 3 hours that HSF did was fuel cost ineffective. People just don't have the patience for that when they can do it in 30 minutes on a plane.
In the end this was all one big lesson on Linda Lingle's and JFL's fallen political ambitions and personal obstinance, something that Linda Lingle continues to exhibit to this day as conveyed by this story.
R. G. September 8, 2009 7:57PM EST
"there are few episodes that have been as pathetic in the lack of political leadership as there were in that Superferry situation" - did she refer to herself and her administration?
Bragging about the 102M's "fuel efficiency"
MarineLog, September 8, 2009 Credit above photo: MarineLog
Engines installed in next-generation Austal trimaran
Austal's next-generation 102 m next generation high speed trimaran is moving steadily towards its February 2010 completion at the company's Western Australian shipyard...
It is currently available for purchase.
See also: "Engines installed on Austal's next generation trimaran"
'The unique three-engine layout of Austal’s next generation trimaran' Credit above art: Austal |
A monument to the profligate habits of a pre-peak oil world.
Monday, September 7, 2009
Fast?...Now THIS is FAST...
‘James Bond’ style 100mph Navy interceptor fastest boat ever built
September 7th, 2009
LONDON - The Britishers have designed a ‘James Bond’ style Navy interceptor, which at 100 mph (miles per hour), is the fastest boat ever built and is set to take to the water in the battle against pirates and drug smugglers.
According to a report in the Telegraph, the XSR military interceptor travels at almost 100mph, carries a retractable .50 calibre machine gun hidden under the deck and would not look out of place in a ‘007′ film.
With a maximum speed of 85 knots (97mph) and carrying the heavy machine gun, the boat will be able to overhaul “go-fast” drug smuggling boats in the Caribbean and pirate ships off the coast of Somalia.
Hailed as the world’s “most advanced performance and pursuit” vessel, the XSR will allow navies to deploy special forces on enemy shores, anti-piracy and smuggling patrols, protecting oil platforms and to intercept unidentified vessels in potential terror attacks.
When the XSR comes within range of an enemy ship, the machine gun emerges from the forward hull and is trained on the target using a remote controlled system from the cockpit.
In an era where countries like Iran use the “swarm” tactic of multiple fast boats attacking a single big target, the XSR can operate as a counter to the threat.
The XSR, which has done 30,000 nautical miles of testing, can be launched and recovered from a warship and the basic cost is estimated at 1.5 million pounds.
The makers, XSMG World, said they had created “a truly unique vessel that redefines the operational boundaries of high speed intercept, pursuit and patrol in coastal waters.”
“The XSR is the most advanced product technically in its class by a significant margin,” they added.
The composite hull, that includes Kevlar armour, gives increased strength with a lighter weight and the crew sits in “shock mitigation” seats.
In addition to the main machine gun, other weapons can be mounted in the rear cockpit and the boat comes equipped with a small galley, fridge and stretcher positions.
The larger version has four bunks, can carry up to 12 additional passengers and has a range of 1,000 nautical miles.
The XSR has a “revolutionary” stabilisation system - Transverse Roll Attenuation and Stabilisation Equipment - which is said to offer “exceptional control in high-speed turns” and greater stability in extreme weather conditions.
Inflatable tubes absorb the heavy impact of high speed on the hull and the stability allows for greater accuracy for the weapons.
The Other "Superferry"
Search continues for missing 60 passengers
The Superferry 9, carrying more than 1,000 people en route from the Philippines' southern port city of General Santos to Iloilo city in the central archipelago nation, is seen listing to one side on Sunday as navy boats approach off Zamboanga peninsula to rescue its terrified passengers. Five people have drowned and dozens are still missing. The cause of the list is not yet clear, although a coast guard official has said terrorism is not suspected. (Agence France-Presse/Getty Images)
Saturday, September 5, 2009
STILL! correcting the record...
Honolulu Advertiser - By CHRIS HAMILTON The Maui News September 5, 2009
...Luncheon emcee Ron Vaught asked Lingle about the status of Superferry...
My comment:
9/5/09 -- Last reported the ferries were in Virginia, not Maryland. Austal has no interest in the ferries anymore. It makes no sense that Lingle would be talking with Austal about the Superferries. MARAD is the one considering military use for the vessels. Regardless, a Chapter 343 EIS has to be completed and accepted before any large high speed vessel can operate in Hawaiian waters, regardless of its owner or user. About being good for business, that is a good question for all of the unsecured creditors (small businesses in Hawaii) and common stockholders of the bankrupt entity.
9/7/09 -- Thought of one reason for the State to talk with Austal, to try to find a buyer for the ramp barges.