ShipBuilding MARiTiMEBUSINESS contract was for a $39.6 million modification to an existing contract for the extended dry docking selected restricted availability of the Aegis destroyer USS Milius (DDG 69). An extended drydocking selected restricted availability includes the planning and execution of depot-level maintenance, alterations, and modifications that will update and improve the ship’s military and technical capabilities. The work on the USS Milius will be completed by July 2013. The second contract is a $9.6 million modification to an existing contract for similar work to the cruiser USS Cape St. George (CG 71), which will be completed in April 2013. The third contract was valued at $20.4 million for the phased maintenance availability of the USS New Orleans (LPD 18). That work will be completed in April 2013. NASSCO, meanwhile, was awarded a $6.7 million contract for the phased maintenance availability of the amphibious assault ship USS Essex (LHD 2). That work will be finished in February 2013.
The city is also home to several megayacht and pleasure craft builders including Fraser Yachts. Several major national defense contractors such as General Atomics, Cubic, L-3 Communications, Lockheed Martin. Sectors included in the maritime technology cluster include: • Aquaculture and fishing • Boat and shipbuilding • Cable and connectors • Defense and security • Desalination and water treatment • Marine recreation • Ocean energy and minerals • Ocean science and observation • Ports and marine transportation • Robotics and submarines • Telecommunications • Very large floating platforms • Weather and climate science One of the observations in the report is that the high cost of living in the city is hindering companies’ ability to attract the right talent. “Maritime specific skills were a common gap that many firms struggled to overcome,” says the report. “This was a
particular note in the efforts to replace aging commercial fishermen and to fill shipyard requirements for specialized boat mechanics and certified welders.” One of the challenges for smaller San Diego shipyards has been California’s regulations regarding large foreign-flag private vessels (300 tons and above), such as super yachts, using San Diego yards for repair work. One clear threat to the region’s growth as a maritime technology cluster is sequestration. If Congress fails to work out a compromise deal, $1.2 trillion in budget cuts will take effect over the next decade, about half of which will come from the defense budget. The San Diego Maritime Industry Report 2012 was conducted by the ERISS Corporation and sponsored by the San Diego Workforce Partnership, The Maritime Alliance and the San Diego Regional Economic Development Corp. ML
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OCTOBER 2012 MARINE LOG 31