Dredging Company Sues Philly Shipyard Over Delays In Construction Of 1st Rock Installation Ship In U.S.

Philly Shipyard, formerly known as Aker Philadelphia Shipyard, a leading U.S. shipbuilder, is facing legal challenges after Great Lakes Dredge & Dock Company (GLDD) filed a lawsuit against the shipbuilder in the U.S. Eastern District Court.

The reason for the dispute is the delays and disagreements over the construction plan for the Subsea Rock Installation Vessel (SRV), a crucial project for supporting offshore wind installations in the U.S.

GLDD awarded the $197 million contract to Philly Shipyard in November 2021, with the vessel originally scheduled for delivery by November 15, 2024.

However, GLDD claims the timeline has now been pushed back to February 2025 and could stretch to September 2026.

They accuse the shipyard of diverting resources to government-backed projects, including mariner training vessels for state-run academies, leaving the SRIV project under-resourced.

Per reports, only one full-time employee is dedicated to the vessel, while others split their time on other projects.

The SRIV, designed to carry 20,000 metric tons of rock, is crucial for laying monopile foundations for offshore wind turbines.

GLDD said that time is critical for this vessel, which would be the first Jones Act-compliant rock installation ship in the U.S. The company is seeking a court order to stop Philly Shipyard from floating the unfinished vessel into the harbour, arguing it could cause damage and delay completion.

GLDD expressed frustration in its filing, saying that Philly Shipyard’s “false promises” and “failure to meet contractual commitments” are causing “irreparable harm.”

They claim the yard initially failed to meet their timeline requirements during the bidding process but later won the contract with a revised schedule.

Philly Shipyard, majority-owned by Aker ASA and listed on the Oslo Stock Exchange, acknowledged the lawsuit but assured that work continues on the SRIV, three National Security Multi-Mission Vessels (NSMVs) and a container ship for Matson.

The shipyard admitted to cost overruns and delays on the SRIV project, calling it a loss-making effort.

Philly Shipyard is preparing for a takeover by South Korean conglomerate Hanwha, which is expected to close by the end of 2024. The $100 million deal aims to strengthen Hanwha’s shipbuilding and defense capabilities.

References: World Energy, Port News