NASSCO wins contract to build 2 containerships

General Dynamics-NASSCO said Thursday it has won the right to build two huge containerships for Matson, continuing a boom the San Diego shipyard has been enjoying for nearly two years.

The contracts are expected to help stabilize the workforce at NASSCO, which currently has 3,600 people building commercial and Navy vessels, and repairing large Navy warships.

NASSCO didn’t release the financial details of its new contract with Matson Navigation, a San Francisco-based subsidiary of Matson, Inc. But officials said NASSCO will construct a pair of 870-foot long LNG-capable containerships, starting in 2018. The vessels will operate on the West Coast and Hawaii.

NASSCO is currently about half way through building 10 commercial vessels. The ships include Constitution, a Seacor vessel that will be launched into San Diego Bay on Saturday evening.

And earlier this month, the company laid the keel of the USNS Hershel “Woody” Williams, the fourth Mobile Landing Platform vessel it will have built for the Navy. NASSCO is likely to get a contract for a fifth MLP.

The shipyard also got a lift in June when the Navy chose the company to build at least six new oiler ships at a cost of roughly $3 billion. NASSCO might be in line to build as many as 17 oilers.

NASSCO also has been experiencing an uptick in repair business, largely due to the Navy’s decision to base more warships in San Diego.

In announcing the latest contract, NASSCO President Fred Harris said in a statement, “We are very pleased to partner with Matson to build their next generation of shipping vessels.

“NASSCO has long played a leading role in revolutionizing the future of the American shipping industry. Our partnership with Matson builds upon NASSCO’s successful track record of constructing high-quality, highly-efficient and on-time delivery for the Jones Act trade.”

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