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THE WHITE HOUSE

Office of the Press Secretary

For Immediate Release May 26, 1994

PRESIDENT CLINTON ANNOUNCES SELECTION OF 20 MARITECH PROJECTS

President Clinton announced today the selection of 20 projects for negotiation as part of MARITECH -- the administration's program to improve the international competitiveness of the U.S. shipbuilding industry.

Almost $30 million in FY94 funding will be allocated for development projects in Maine, Mississippi, Louisiana, California, Hawaii, Washington, Virginia, Alabama, New Jersey, Maryland and Connecticut.

These projects were selected from a total of 34 proposals received during the FY94 competition, and represent 147 participants located in 22 states and 9 foreign countries. Sixteen major U.S. shipbuilding companies are included.

MARITECH is a key component of the Administration's five-part plan to strengthen U.S. shipyards by assisting their efforts to make the transition from the military to the commercial market. This program will keep the defense industrial base healthy by helping shipyards make the necessary changes to become commercially competitive in the international shipbuilding market.

The MARITECH program is an industry-led, industry-driven, five year effort funded and managed by the Department of Defense's Advanced Research Projects Agency, in consultation with the Maritime Administration. In addition, MARITECH is being executed in full partnership with the Navy, through the Office of Naval Research. Funding for FY94 is $30 million. The anticipated total government funding is $220 million over the next five years.

The MARITECH program will award matching federal funds to develop and implement technologies and advanced processes for the competitive design, marketing, production and support of commercial ships. Today's projects include a broad selection of ship types: double hull tankers, passenger vessels, dry and bulk cargo vessels, container ships, high-speed ferries, and off-shore service craft. The effort has two phases. Today's selections are for the first phase, which is focused on the near-term market penetration. Subsequent efforts will focus on longer- term technology development.

A full list of selected proposals and companies is attached.

                           MARITECH Program 
                              Fact Sheet

THE MARITECH PROGRAM

The MARITECH program is a federal effort for developing and applying advanced technology to improve the commercial competitiveness of the U.S. Shipbuilding Industry. MARITECH, which is funded at $30 million in FY94, is a significant complement to the President's Defense Reinvestment Conversion Initiative to preserve the critical shipbuilding element of the defense industrial base.

MARITECH will award matching federal funds, on a competitive basis, to develop and implement technologies and advanced processes for the competitive design, marketing and production, of commercial ships. The program consists of a near-term effort to master the basics of competitive shipbuilding for rapid entrance into the international commercial market and a long-term effort supporting a national infrastructure for continuous product and process improvement.

COMMERCIALLY COMPETITIVE SHIPBUILDING

In order for the United States to compete effectively in the international commercial shipbuilding market, U.S. shipyards must integrate the process of product development --marketing, design, engineering and construction-- into their international operations.

U.S. Shipyards must:

*Develop competitive, state of the art designs -- products that can be marketed internationally and,

*Adopt improved, integrated design and construction processes to catch up with international competition and take advantage of the projected market expansion.

MARITECH is focusing on the development of innovative ship and ship system technologies resulting in consumer-oriented commercial ship products for domestic and export sale coupled with the development and integration of ship building technologies to enhance U.S. shipyard productivity.

      List of Advanced Research Projects Agency MARITECH Program
                Focused Technology Development Project
                     Prospective Award Selectees

Project Category: Cargo

High Speed Monohull Focused Technology Development Project

Bath Iron Works Corporation of Bath, Maine proposes a 24-month project for the development of a high-speed, monohull ship. The project objectives are to (1) develop innovative designs for fast commercial cargo and passenger ships, (2) enhance worldwide U.S. commercial shipbuilding competitiveness by reducing ship design and construction time and cost, and (3) integrate commercial shipbuilding capability and secure contracts for these new ship types at Bath. The project consortium includes General Electric Company of Schenectady, New York; Kvaerner Masa Marine, Inc. of Annapolis, Maryland; and American Automar, Inc. of Washington, DC.

Approximate fiscal year 1994 government funding is $600,000, subject to negotiation.

Medium Sized Multipurpose Ship

Halter Marine, Inc. of Gulfport, Mississippi, part of the Trinity Marine Group, proposes a 24-month project for the development of a medium-sized, multipurpose ship. This wide beam, shallow draft vessel is intended to service the short and medium length ocean routes and smaller ports of the current ocean trade. Its high beam/draft ratio, cargo self-unloading, and high maneuverability capabilities make it ideal for this purpose. This project includes a concept design study that will incorporate enhanced propulsion and manning reduction concepts with a detailed market study. The project consortium includes Pacific Marine Leasing, Inc. of Portland, Oregon; Connell Finance Company, Inc. of Westfield, New Jersey; and Fisker-Andersen and Whalen of Seattle, Washington.

Approximate fiscal year 1994 government funding is $400,000, subject to negotiation.

23,000 Ton Container/Bulk Carrier

Halter Marine, Inc. of Gulfport, Mississippi, a part of the Trinity Marine Group, proposes a 24-month project to develop a state-of-the-art, self sustaining, 23,000 dwt multipurpose carrier for the dry-cargo market. This design will include maximum cubic capacity of the cargo holds for grains; structural design enabling alternate loading of ores; wide hatch openings for container and unitized cargo; long hold for pipes and other steel products; self unloading of bulk cargo; cargo gear capable of handling containers and/or unitized and general cargo; modernized engine room and controls; and an advanced bridge featuring an integrated navigation and advanced communication system. The project consortium includes Connell Finance Company, Inc. of Westfield, New Jersey and Ishikawajima-Harima Heavy Industries Company, Ltd. of Japan.

Approximate fiscal year 1994 government funding is $1,000,000, subject to negotiation.

Multi-Purpose Dry Cargo Ship Design/
Process Development

McDermott Inc. of Morgan City, Louisiana proposes an 18-month project to develop a commercially competitive contract design for a multipurpose dry cargo ship. This design offers a plan for the re-engineering and reorganization of the McDermott shipyard and applies it to the design of a dry cargo ship. Further, it develops state-of-the-art concepts for improvements and innovations in ship construction. This offers penetration of a U.S. shipyard into the international commercial dry cargo market sector, building of strategic alliances with overseas shipyards and suppliers, and implementation of state-of- the-art design and production tools at a U.S. shipyard. Team members include McDermott Operations Research of Alliance, Ohio; McDermott/B&W of Lynchburg, Virginia; the University of New Orleans, Louisiana; Ishikawajima-Harima Heavy Industries of Japan; and MAN B&W Diesel of Germany.

Approximate fiscal year 1994 government funding is $3,900,000, subject to negotiation.

Project Category: Cruise

Cruise Ship Preliminary Design, Manufacturing Plan and Market Analysis

Ingalls Shipbuilding, Inc. of Pascagoula, Mississippi proposes a 16- month project to develop a cruise ship preliminary design and shipyard manufacturing plan. A market analysis will be prepared to determine the sales potential for U.S.-built cruise ships. The completion of this project will place Ingalls in a position to enter the competition in the multimillion dollar annual new cruise ship construction market. In addition, the project will better position Ingalls to compete in the cruise ship repair market. Advanced ship designs, market validation, and creative construction processes will be employed. The project consortium includes Hopeman Brothers, Inc. of Waynesboro, Virginia; Jamestown Metal Marine Sales, Inc. of Pompano Beach, Florida; Cruise Lines International Association of New York, New York; Deltamarin of Finland; Finnyards of Finland; and Aeromarine, Ltd. of Greece.

Approximate fiscal year 1994 government funding is $1,100,000, subject to negotiation.

U.S.-Built Cruise Ships: Market- and Producibility-Driven Design for the World Market

National Steel and Shipbuilding Company of San Diego, California proposes a 24-month project for development of an advanced cruise ship design. Specific objectives of the project include capturing an appropriate share of the cruise ship newbuilding market by the year 2000, reestablishing the United States as a major player in the worldwide cruise/passenger shipbuilding industry and taking a leadership role in developing and applying advanced propulsion, control, and environmental and safety systems for cruise ships. The project consortium includes Delta Queen Steamship Company of New Orleans, Louisiana; General Electric Company of Schenectady, New York; Hopeman Brothers, Inc. of Waynesboro, Virginia; Mercer Management Consulting of Lexington, Massachusetts; Argent Group, Ltd. of New York, New York; and Kawasaki Heavy Industries, Ltd. of Japan .

Approximate fiscal year 1994 government funding is $400,000, subject to negotiation.

Project Category: Ferry

Commercialization of Planing SWATH Technology

Halter Marine, Inc. of Gulfport, Mississippi, part of the Trinity Marine Group, proposes a 24-month project for commercialization of planing SWATH technology. This innovative vessel design concept (planing SWATH), in combination with associated advanced construction technology, has the potential for global sales on a large scale. The integration of two technologies--planing craft and SWATH--in target markets such as ferries offers the opportunity of making small- to medium-sized marine craft faster in rough seas, more seaworthy, and more cost effective than current craft. The project consortium includes Semi-Submerged Ship Corporation of Solano Beach, California; Connell Finance Company, Inc. of Westfield, New Jersey; and Hornblower Development Corporation of San Francisco, California.

Approximate fiscal year 1994 government funding is $300,000, subject to negotiation.

Development of SLICE Fast Passenger Ferry Design and Comprehensive Marketing Plan

Pacific Marine & Supply Company, Ltd. of Honolulu, Hawaii proposes a 36-month project to develop the design of a commercial high-speed ferry based on U.S. Navy-developed SLICE hull form technology. This hull form offers a combination of high speed and excellent stability in heavy seas. These characteristics make it ideal for use as a high-speed ferry in open waters such as those in the Hawaiian Islands. The construction of these vessels will use advanced aluminum extrusion techniques to reduce construction time and cost. The proposers plan to conduct an extensive market survey and project a large international market for this type of craft. The team includes Lockheed Missiles & Space Company of Palo Alto, California; Textron Lycoming of Stratford, Connecticut; MacKinnon Searle Consortium, Ltd. of Alexandria, Virginia; KaMeWa of Sweden; and Schichau Seebeckwerft of Germany. Approximate fiscal year 1994 government funding is $400,000, subject to negotiation.

Integration of Modern Manufacturing Methods and Modern Information Systems

Todd Pacific Shipyards Corporation of Seattle, Washington proposes a 36-month project for the integration of modern manufacturing and information methods in the revitalization of a state-of-the-market, medium-sized shipyard. The objective of the project will be to apply modern managerial design, material marshalling, and production techniques to the construction of jumbo-class ferries for the West Coast market. In this project, Todd Pacific Shipyards Corporation of Seattle, Washington will be assisted in technology transfer of ship design and production technologies by Kvaerner Masa Marine, Inc. of Annapolis, Maryland and the Maritech Engineering Japan Company, Inc. of Japan. Approximate fiscal year 1994 government funding is $1,600,000, subject to negotiation.

Project Category: Special

Penetrating the International Market for Small Ships

The American Waterways Shipyard Conference (AWSC) of Arlington, Virginia, in conjunction with six of its members, proposes a 24-month project to conduct a market analysis and to develop innovative designs for the international market in small vessels. In addition, the team will work to develop competitive build strategies and international financing packages for export sales of the vessels developed. Assistance in accomplishing these goals will be provided by Kvaerner Masa Marine (KMM) of Annapolis, Maryland; Colton and Company of Arlington, Virginia; SPAR of Annapolis, Maryland; and the National Ports and Waterways Institute of Arlington, Virginia as subcontractors to AWSC. KMM will also work with the shipyards on the team to develop a computer integrated manufacturing (CIM) system for the shipyards. The AWSC team includes Bender Shipbuilding, Inc. of Mobile, Louisiana; Bird-Johnson Company of Walpole, Massachusetts; McDermott Marine of Amelia, Louisiana; Steiner Shipyard, Inc. of Bayou La Batre, Alabama; Trinity Marine Group of Gulfport, Mississippi; and Wartsila Diesel, Inc. of Annapolis, Maryland.

Approximate fiscal year 1994 government funding is $600,000, subject to negotiation.

Sea Horse. Self-Elevating Offshore Support Platform for the International Markets

Bollinger Machine Shop and Shipyard, Inc. of Lockport, LA proposes a 24-month project to develop designs for self-elevating offshore support platforms for the international market. This design will meet international requirements for permanent offshore structures, and the resulting platforms will be classified as ocean-going vessels. Possible applications for this versatile design include subsea well service and maintenance, offshore construction, undersea pipe laying and maintenance, and oil spill recovery, drilling, and salvage operations. The project consortium includes Halliburton Energy Services, Inc. of Dallas, Texas; Colton & Company of Arlington, Virginia; and Brown & Root, Inc. of Houston, Texas.

Approximate fiscal year 1994 government funding is $1,500,000, subject to negotiation.Project Category: Tanker

Focused Technology Development 40,000 dwt Double Hull Product Carriers, 85,000 dwt Double Hull Oil, Bulk, or Ore (OBO) Carriers

Alabama Shipyard of Mobile, Alabama proposes a 36-month project to develop 40,000 dwt double hull product carriers and 85,000 dwt double hull oil, bulk, or ore (OBO) carriers. This proposal includes marketing and financial planning; expansion of CAD/CAM capability; procurement of internationally competitive designs and their modification to the marketing analysis; production and manufacturing modernization; technology transfer; and training. The project consortium includes American Automar Inc. of Washington, DC; American Petrobulk, Inc. of Washington, DC; and Burmeister & Wain of Denmark

Approximate fiscal year 1994 government funding is $3,000,000, subject to negotiation.

Focused Technology Development

Avondale Industries, Inc. of New Orleans, LA proposes a 24-month project to develop a world-class design for a 40,000 dwt product carrier. This project proposes a detailed market analysis and financial planning; and the purchase of a design from an internationally competitive foreign yard, which will be further modified to meet the requirements of the market analysis. This internationally competitive design will be examined for benchmarks for future design work. Avondale will negotiate a technology transfer agreement with an internationally competitive shipyard to obtain benchmarks for production processes. Metrication and standardization studies will also be performed. The project consortium includes Dyer, Ellis, Joseph & Mills of Washington, DC; Chemical Bank of New York, New York; Canadian Imperial Bank of Commerce of Canada; MCA Associates of Greenwich, Connecticut; Naval Surface Warfare Center, Carderock Division; John J. McMullen Associates, Inc. of New York, New York; Kirby Corporation of Groves, Texas; American Heavy Lift Shipping Company of Houston, Texas; Mitsubishi Heavy Industries of Japan; and Mitsubishi International Corporation of New York, New York.

Approximate fiscal year 1994 government funding is $2,300,000, subject to negotiation.

Petroleum Product Tanker Technology Development

Gibbs & Cox, Inc. of Arlington, Virginia to proposes a project to develop petroleum product tankers for the domestic market. This consortium consists of representatives from all major facets of the maritime industry. Together they will design a tanker that is environmentally safe and economically sound. Information will be exchanged throughout the consortium through a sophisticated electronic data exchange system. Team members include Ingalls Shipbuilding of Pascagoula, Mississippi; Trinity Marine Group of Gulfport, Mississippi; Marine Transport Lines, Inc. of Secaucus, New Jersey; Sabine Towing & Transportation Company, Inc. of Groves, Texas; Chevron Shipping Company of San Francisco, California; ARCO Marine, Inc. of Long Beach, California; American Bureau of Shipping of Houston, Texas; University of Michigan of Ann Arbor, Michigan; Sperry Marine of Charlottesville, Virginia; Booz, Allen and Hamilton of Arlington, Virginia; Ishikawajima-Harima Heavy Industries of Japan; Aquamaster Rauma, Inc. of Finland; and ABB Industrial Systems of Finland

Approximate fiscal year 1994 government funding is $800,000, subject to negotiation.

Focused Technology Development for a Family of Double Hull Tankers

Marinex International of Hoboken, New Jersey proposes an 18-month project to develop the designs and marketing and finance plans for 324,000 and 125,000 dwt double hull tankers. These tanker designs would be based on the MarC Guardian curved plate hull concept, which has been developed jointly by Marinex and Metro Machine. Construction of these vessels will use advanced technologies in the hull coating and a three-way welding process developed by Metro Machine and Lincoln Electric. This design and the construction methods used to produce it offer potential owners benefits of reduced construction times and reduced operating costs. The project consortium includes Metro Machine Corporation of Chester, Pennsylvania; Ingalls Shipbuilding of Pascagoula, Mississippi; CG International, Inc. of Scotts Plains, New Jersey; Ross/McNatt Naval Architects of Stevensville, Maryland; Naval Surface Warfare Center Carderock Division; the American Bureau of Shipping of Houston, Texas; Webb Institute of Naval Architecture of Sands Point, New York; Crandall Dry Dock Engineers, Inc. of Chelsea, Massachusetts; General Electric Company of Schenectady, New York; Exxon Company, International of Florham Park, New Jersey; ARCO Marine, Inc. of Long Beach, California; Texaco, Inc. of White Plains, New York; Coastal Marine Corporation of Houston, Texas; Overseas Shipbuilding Group of New York, New York; Marine Engineers Beneficial Association of Brooklyn, New York; and Papachristidis (UK) Ltd. of England.

Approximate fiscal year 1994 government funding is $1,800,000, subject to negotiaiton.

Internationally Competitive, High Technology Tanker Vessels

Modular Tanker Consortium of Annapolis, Maryland proposes an 18- month project for the development of innovative world-class designs for 40,000 and 125,000 dwt tankers. This project includes a detailed market analysis; design development; double hull tanker procurement and production technology transfer; review of environmental and safety features of tanker designs and machinery; marketing and financing plans; and design, engineering, and production tools and software. The project consortium includes McDermott, Inc. of Amelia, Louisiana; BethShip Sparrows Point of Sparrows Point, Maryland; Wartsila Diesel of Annapolis, Maryland; Bird-Johnson Company of Walpole, MA; Seaworthy Systems of Essex, Connecticut; Kvaerner Masa Marine of Annapolis, Maryland; SPAR of Annapolis, Maryland; International Marine Software Associates of Stevensville, Maryland; Wilson, Gillette & Company of Arlington, Virginia; and ABB Industrial Systems of Finland.

Approximate fiscal year 1994 government funding is $1,000,000, subject to negotiation.

Market- and Producibility-Driven Shuttle Tanker Design for the World Market

National Steel and Shipbuilding Company of San Diego, CA proposes a 24-month project to develop state-of-the-art designs for a range of shuttle tankers of about 70,000-125,000 dwt cargo carrying capacity. These tankers will have the ability to operate year round in a variety of weather conditions and in coastal, open ocean, and U.S. territorial waters. The design provides advanced state-of-the-art features such as a flexible propulsion plant, dynamic positioning capability, global positioning and collision avoidance features, and safety and environmental systems. In addition, adaption will allow operation in Arctic and sub-Arctic environments. Features for high latitudes navigation will include ice avoidance, hull strengthening for operation in northern waters, superstructure and rigging de-icing, and design considerations for high seas and high wind conditions. The project consortium includes ARCO Marine, Inc. of Long Beach, California; Wartsila Diesel of Mt. Vernon, Indiana; Raytheon Company Submarine Signal Division of Hudson, New Hampshire; IMODCO, Inc. of Calabasas, California; First International Finance Corporation of New York, New York; KaMeWa AB of Sweden; Ugland Group of Norway; Braemer of England; and Kawasaki Heavy Industries, Ltd. of Japan.

Approximate fiscal year 1994 government funding is $200,000, subject to negotiation.

Conversion to World Class Commercial Shipbuilder

Newport News Shipbuilding of Newport News, Virginia proposes a 24- month project to reenter the commercial shipbuilding market. This project comprises five complementary elements, including market analysis, applied state- of-the-art technologies, world-class production processes, innovative financial arrangements, and revised project management leading to construction of a 40,000 dwt tanker. The project consortium includes Sabine Towing & Transportation Company, Inc of Groves, Texas; Texaco, Inc. of White Plains, New York; Maritime Overseas Corporation of New York, New York; Science Applications International Corporation of Arlington, Virginia; the American Bureau of Shipping of Houston, Texas; Total Transportation Systems, A/S of Norway; Ishikawajima-Harima Heavy Industries Company, Ltd. of Japan; and MAN B&W Diesel of Germany.

Approximate fiscal year 1994 government funding is $3,000,000, subject to negotiation.

Design of the Virtual Shipyard

The U.S. Shipbuilding Consortium of Greenwich, Connecticut proposes a project to create and utilize the development of a virtual shipyard to support the building of 40,000 dwt product carriers. The project includes the creation of a ship design development process that is fully integrated with the needs of marketing, design, and production engineering and the development of an integrated and efficient system for converting a shipbuilding contract into a delivered ship. This project could result in the building of an internationally competitive product carrier. The consortium consists of participants from McDermott Inc. of Morgan City, Louisiana; IBM Federal Systems of Manassas, Virginia; Westinghouse Electric Corporation of Sunnyvale, California; Microelectronics and Computer Technology Corporation of Austin, Texas; the George Washington University; the Naval Surface Warfare Center Carderock Division; Kvaerner Masa Marine of Annapolis, Maryland; Colton and Company of Arlington, Virginia; and ARCO Marine of Long Beach, California.

Approximate fiscal year 1994 government funding is $1,600,000, subject to negotiation. Project Category: Vehicle Carrier

From Sealift Ships to Vehicle Carriers: Internationally Competitive Ships for the 1990s

National Steel and Shipbuilding Company of San Diego, California proposes a 24-month project to develop a contract design, a build strategy, and marketing and finance plans for a vehicle carrier vessel. The design of these vessels will include advances in modular design techniques, an integrated bridge and workstation oriented control systems. The shipbuilding process will use advances in modular construction and computer integrated manufacturing (CIM). The project consortium includes Argent Group, Ltd. of New York, New York; Kawasaki Heavy Industries, Ltd. of Japan; and Kawasaki Kisen Kaisha, Ltd. (K-Line) of Japan.

Approximate fiscal year 1994 government funding is $200,000, subject to negotiation.

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