Cascade General "Cautiously Optimistic" after Strong First Quarter

Cascade General Inc., operator of Portland Shipyard on the US West Coast, continued to be "cautiously optimistic" about business prospects as the company concluded its first quarter 1997 operations. Executive Vice President Andrew Rowe said overall the company experienced greater levels of activity in the first three months of 1997 than the first quarter of the previous year.

As if to underscore the legitimacy of optimism, Cascade General began 1997 with news it landed the contract for conversion of the Glomar Explorer, the largest conversion contract in the history of Portland Shipyard. The $18+ million project involves fabrication of more than 4.5 million pounds (2 million kg) of steel and reactivation of virtually every system on the vessel - an effort expected to employ more than 200 workers a day for a six-month period. The contract is now almost 50% complete.

"We believe the shipyard's improved performance indicates favorable market response to changes implemented last year," Rowe pointed out. "Since many of those initiatives are just now showing results, we expect the market will continue to respond. However, significant challenges continue to face the yard given the competitive nature of today's ship repair industry."

He said the company's new four-year labor agreement signed last year is just one example of efforts crucial to continued success. Cascade General continues to pursue new worker training, quality and productivity initiatives.

According to Rowe, both repeat business with long-term customers in the oil tanker trade and contacts in newly-targeted business segments continue to contribute to expanded activity. He pointed to emergency repair of international flag carriers, cruise ship maintenance, government work and the activities of the recently established Voyage and Small Vessel Repair Division as contributing to the improvement.

Ship repair contracts awarded to or completed by Cascade General during the first quarter of 1997 included:

• Glomar Explorer: This 619-foot (189 m) US-government-owned vessel under long-term charter to Global Marine Drilling Co. of Houston, TX, is undergoing conversion to a deepwater oil drilling ship. The unique challenge of this project is removal and filling in of two 200-ft. x 74-ft. x 9-ft. (61 m x 22 m x 3 m) retractable gates that pull forward and aft on the bottom of the ship's hull. Other work includes installation of new interior decking, four 12.5 x 52 ft (4 x 16 m) diameter vertical thruster tunnels, reactivation of electrical, piping and ventilation systems, blasting and coating, drydocking and complete overhaul of the vessel's diesel engines, electric motors and propulsion system.

• USS Beaufort and USS Brunswick: Two 224-foot (68 m) long, 44-foot (13 m) beam vessels reactivated as salvage and rescue ships destined for sale to Korea as part of the US Government's Foreign Military Sales program. Work on the vessels included drydocking, coating and reactivation of virtually every system.

• HMNZS Resolution (formerly the USS Tenacious): A 224-foot (68 m) long Towed Array General Oceanographic Surveillance (T-AGOS) ship reactivated as an oceanographic survey vessel for the New Zealand Navy as part of the Foreign Military Sales program. Work included rebuilding two of the main engines, drydocking, coating and reactivation of all systems.

• Viking Serenade: A cruise ship owned by Royal Caribbean Cruise Lines of Miami, FL. Work on the luxury liner included major pipe modifications, galley upgrade, machinery overhaul and survey, drydocking and coating. Work on the vessel was successfully accomplished on an accelerated schedule to meet the needs of the owner's cruise schedule.

• S/S Marine Chemist: A 36,000 DWT chemical tanker owned by Marine Transport Lines of Weehawken, NJ. Work on the vessel included annual inspection, drydocking, machinery surveys, pipe renewals and boiler repairs.

• M/V Baneasa: A 39,633 grt bulk carrier owned by Petroclev-Romania and managed by Torvald Klaveness & Co. The Baneasa's rudder locked hard to starboard just south of the Aleutian Islands. The rudder was secured but became dislodged and sank in deep water. The vessel was towed to Cascade General where a new rudder and rudder stock were fabricated and attached. Minor hull damage which occurred when the rudder broke loose was also repaired.

• Sierra Madre: A 659-foot (201 m) oil tanker owned and operated by West Coast Shipping, Santa Ana, CA. Work included 5-year main engine surveys, general maintenance and repair.

• USCG Polar Star: Work continues on this 399-foot (121.6 m) Coast Guard ice breaker. The Polar Star is undergoing "reliability improvements" including normal repair and the upgrade of several major piping systems. The vessel is one of the two largest ice breakers owned by the United States and has the capability to break ice up to 21 ft. (6.4 m) thick. Work is scheduled to be completed in 3rd quarter 1997.

• S/S North Slope and S/S Benicia: Two 165,000 DWT oil tankers owned by SeaRiver Maritime of Houston, TX. Work on the vessels included TAP (TransAlaska Pipeline) standard performance inspection, annual surveys drydocking, welding improvements and voyage repairs.

During this quarter, small repairs and maintenance procedures were also performed on a number of tugs, barges and dredges.

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Cascade General operates Portland Shipyard, the largest and most complete ship repair and industrial facility on the West Coast of the United States. We provide full-service repairs and conversions for tankers, cruise ships, bulk carriers, container ships, government vessels, tugs, barges and workboats. Cascade General's Portland facility includes a 60-acre (24.2 ha) yard, 550,000 square feet (51,096 square meters) of craft shops, more than 7,600 ft. (2,326 meters) of full-service repair berths, and two floating dry docks.