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Philly Shipyard wins major training ships contract

Philly Shipyard wins major training ships contract

Philly Shipyard, Inc., Philly Shipyard ASA's sole operating subsidiary, has been awarded from TOTE Services a contract to build up to five National Security Multi-Mission Vessels (NSMV)

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In May 2019, TOTE was selected by the Maritime Administration (MARAD) of the US Department of Transportation as the vessel construction manager for the NSMV programme. TOTE placed an initial order for the first two vessels (NSMVs 1 and 2) with Philly Shipyard, with deliveries in Spring and Winter 2023, and retains options for the next three vessels (NSMVs 3, 4 and 5).

The initial award is valued at approximately USD 630 million and supports non-recurring NSMV class engineering and detail design as well as procurement of equipment and materials, and construction of the first two ships.  If all five ships are requestedin series, then the 5-ship program's total contract value would reach  roughly USD 1.5 billion.

The NSMV series is a new class at the State Maritime Academies (SMA) to provide for replacement of the regular training ship. SMA ships are primarily used to provide necessary training on operational vessels to cadets at sea and to introduce them to a merchant marine officer's work.

The vessels will be owned by MARAD, which developed their initial design concept. No third party financing will be required to construct the vessels.

The contract for the NSMV program will enable Philly Shipyard to reconstitute its workforce in preparation for the new production work beginning in early 2021.

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