Superferry maker transforms into military ship builder

A recent article from the Alabama Press Register describes Austal USAʻs transformation into a military ship-builder.  Austal was the ship builder of the controversial Hawaii Superferry.  Opponents of the Superferry raised concerns that the project was a “Trojan Horse” military transport ship, but were ridiculed by the mainstream press and the political and business supporters of the Superferry.  But as time rolls on, the military-industrial business model of making fast transport and combat ships is materializing as opponents forewarned. Here are a few excerpts from the article:

Austal USA‘s startling transformation from a commercial ferry builder with an uncertain future to a major player in the U.S. military-industrial complex has raised eyebrows in the shipbuilding world but hasn’t quite gotten Austal invited to the grown-ups’ table, according to industry analysts.

For Austal to join the Navy shipbuilding fraternity for the long haul, analysts said, the ships need to prove their value on the water, and the company itself needs to prove that it can build more complex vessels.

[…]

Its most prominent commercial contract was a $190 million deal to build two ships for Hawaii Superferry Inc. That deal turned into a quagmire for the shipbuilder. A judge made the Hawaiian company stop operating the ferry service because of environmental concerns. That caused Superferry to file for bankruptcy, forcing Austal to eat a $23 million loan it made to the company.

Defense contracting

While commercial results were mixed, Austal began seeing success in defense contracting. General Dynamics Corp. hired it to be a subcontractor to build two prototype littoral combat ships for the Navy.

General Dynamics eventually dropped out, and Austal became a prime contractor on the LCS program, winning a $3.6 billion, 10-vessel contract from the Navy in December.

In 2008 Austal won a $1.6 billion deal with the U.S. Army and Navy to build 10 high-speed vessels, which were basically militarized versions of the ferries it built for Hawaii.