ST JOHNS SHIPBUILDING CHANGING COURSE
AS DEMAND FOR THE SHIPBUILDING INDUSTRY IS REFOCUSING, ST JOHNS SHIPBUILDING IS ADAPTING TO MEET THOSE NEEDS.
Changing Course
PROJECT MANAGED BY:
ROBERT NAPIER SMITH
St Johns Shipbuilding focuses on the construction and repair of aluminium and steel vessels for the commercial and government sectors. When we meet Joe Rella, the shipbuilder’s President, the company is at the denouement of a two year process of modernisation. It has upgraded its safety capabilities, diversified its customer base and recently delivered five aluminium crew transfer vessels for wind farms. Promising opportunities are also opening up with the US Navy and Army Corps of Engineers.
We are a smaller US ship builder, but we are emerging into the larger commercial and government markets,” Rella tells us. “We are on a growth path that is uniquely timed to synchronise with the Ships for America Act and the National Defence Authorisation Act, which have earmarked $31 billion for shipbuilding. Timing is everything, right?”
Timing has certainly worked in St Johns Shipbuilding’s favour. The company has concluded contracts that delivered five crew transport vessels since the middle of this year, opening the way for new work, with the “knowhow” accumulated from these multiple vessel build programs. Meanwhile, the company has been building its backlog with
new business and also seen significant growth in repair work.”
“That’s a big number, or not, depending on who you compare it to, but it represents a nice growth trajectory,” he says. “It means we are building the essential processes, procedures and infrastructure necessary to take the natural next steps for the growth of the shipyard into new markets.”
But before we get into the exciting changes taking place at St Johns Shipbuilding, it is worth taking a moment to look at the things that aren’t changing. The shipyard has the backing of a strong parent company, who it is closely affiliated with. It still offers the market a powerful combination of a dynamic shipyard in the process of being modernized with traditional values.
“Our advantage is our agility to respond to different inquiries quickly,” Rella says. “We can build and repair steel and aluminium vessels up to a certain size and in our market niche we are one of the few small-to-medium size shipyards on a growth trajectory that is emerging ready to work in commercial and government programs.”
“OUR PEOPLE ARE THE MOST IMPORTANT COMPONENT OF SHIPBUILDING OPERATIONS.”
A NEW MARKET
But while those capabilities and St Johns Shipbuilding’s fortunate timing have served the company well, it has also had to overcome its challenges. Only a couple of years ago, the firm’s primary focus was on aluminium-hulled crew transfer vehicles for offshore wind farms.
When the new administration came in, it did not share the previous government’s plans for renewable energy expansion, and the market quickly began to wither. St Johns Shipbuilding was forced to look into new markets.
“We have moved into steel barge construction to support bridge building and waterway construction projects,” Rella tells us. “We have also contracted with the Army Corps of Engineers and signed our first US Navy newbuild contract a couple of months ago to provide a dive support vessel.”
St Johns Shipbuilding is also pursuing other Army Corps and Navy contracts in the near term, while paying
close attention to where the Defence Authorisation Act is going for procurement. The shipbuilder’s growth trajectory is vital to meeting the demands of these new markets and a new economic environment, but a growth trajectory requires a growing team.
“Our shipyard manning matches our master yard production schedule, which we track closely,” Rella says. “It means we have the ability to project the different skilled trades that we will need. We want to retain our best people and turn them into partners in the training and growth of the new employees we bring in.”
As the workforce grows and matures, the shipyard trains its people on-site. St Johns is looking to add about 50 new trades to its repertoire over the next four months, including hiring professionals
Joe Rella, President, St Johns Shipbuilding.
with experience in project management, engineering, and planning and scheduling.
“Our people are the most important component of shipbuilding operations,” Rella points out. “Finding the right people is essential, and we are very fortunate that we are uniquely located in Palatka, Florida. There are not many competing shipyards, and we pay competitive wages, so we have good levels of retention.”
Rella is proud of the firm’s existing expertise in aluminium welding and the procedures it has honed to meet the unique needs of its clients. But while these are all great achievements, it just so happens that we are talking to Rella on a red letter day for the company.
“FINDING THE RIGHT PEOPLE IS ESSENTIAL, AND WE ARE VERY FORTUNATE THAT WE ARE UNIQUELY LOCATED IN PALATKA, FLORIDA.
“It just so happens that today we have gone 365 days without a lost time injury,” Rella tells us. “Our safety metrics have experienced significant improvement.”
When asked how you can improve safety in the space of a year, Rella is clear that the responsibility for that starts at the top.
“Every meeting with my staff starts with the safety report. We have safety awareness regularly, including toolbox talks and a yard-wide safety meeting once a week,” he says. “We have installed and implemented procedures over and above what is required to ensure safety and avoid any injuries. It is all about education and awareness. That is backed up with enforcement if we have to, but it is not a punitive environment. It is about being proactive on safety, and it
starts at the top. I think it is gratifying for our safety people to be listened to by senior management. Sometimes, safety staff get lip service, but ours report directly to me. There are no layers between me and the safety manager.”
It is an achievement that is helping to position St Johns perfectly for the current trends in the industry. Rella himself testified in front of the subcommittee on maritime and coastguard infrastructure in February.
“WE ARE THE POSTER CHILD FOR WHAT THE US GOVERNMENT IS TRYING TO DO, WHICH IS EXPAND THE INDUSTRIAL FOOTPRINT TO SUPPORT
SHIPBUILDING NATIONWIDE,”
“It is a bipartisan initiative, one of the few things both sides of the aisle can agree on!” Rella says. “US shipbuilding has been ignored, our maritime strength has diminished. We have a very strong navy, but we need more robust logistics support. We are seeing the development of an irregular warfare approach
with autonomous vessels that are typically smaller and more disposable, with swarming capabilities. This is an emerging market perfectly suited to smaller US shipyards.”
The company is undergoing a process of revitalisation, but more than that, Rella believes that the US shipbuilding industry as a whole depends on revitalising small and medium shipyards like St Johns to attain the US government’s current goals.
“We are the poster child for what the US government is trying to do, which is expand the industrial footprint to support shipbuilding nationwide,” says Rella. “We are a non-traditional US government shipbuilder raising our hand and saying, ‘We want to be part of this.’ That is being heard.”
See Joe Rella at the house sub-committee meeting for Maritime Infrastructure: https://youtu.be/dOV1xx7-Qew
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