Birdon's Update on Planned Improvements, Continued Capital Investments in

[By: Birdon]

Last week, Birdon America, Inc., provided an update on planned improvements at its shipyard in Bayou La Batre, Alabama, which is the production site for the US Coast Guard Waterways Commerce Cutter (WCC) program. The new WCC vessels are complex, modern, and sophisticated; successfully designing and building these vessels requires exceptional talent and modern facilities.

While Birdon considered potential design partners for WCC during the early phases of the program, all design work is being performed in-house by Birdon to keep the program on schedule and reduce technical risk. This in-house approach has proven successful, and the company has also applied it to WCC production. Subcontracting or leasing space at another yard was one of the options considered to facilitate production, but ultimately, Birdon determined that investing in its own yard was the best option to build and deliver these vessels to the U.S. Coast Guard, and subsequently acquired the Bayou La Batre Shipyard to build the WCC. Many of the key suppliers for WCC are located on the Gulf Coast, making Bayou La Batre an ideal location for this program. Upon acquisition, the company immediately began planning significant capital investments and improvements, including more than $27 million from Birdon, to create a premier Tier 2 shipyard. These strategic investments are expected to yield significant economic benefits for the region. The result will be a modern shipyard capable of delivering high-quality, on-schedule, complex and multi-mission vessels for customers.

Those efforts have already resulted in expanded capabilities. The shipyard’s previous certification only permitted lifting US Coast Guard vessels under 65 feet in length. In August of this year, Birdon received US Coast Guard certification that its facilities now meet the requirements for docking, repairing, and relaunching any US Coast Guard vessel up to 589 long tons. This certification indicates that Birdon’s Alabama Shipyard has the equipment, processes, and technical capabilities necessary to lift and launch the new WCC vessels.

Additional capital improvement expenditures are underway to facilitate the WCC program, and will result in a facility with the capacity to build up to four vessels simultaneously and dock up to six vessels alongside. Birdon will build both the hull and superstructure for WCC onsite in Bayou La Batre, and the ongoing capital improvement plans will achieve that capability.

“Birdon is committed to delivering the highest quality vessels and providing its employees with modern tools, equipment, and buildings to enable them to perform their skilled trades efficiently and safely,” said Birdon CEO Jamie Bruce. “Our investments reflect that commitment, and we look forward to opening our new purpose-built onsite facilities in the coming months.”

In July, Birdon was awarded a Small Shipyard Grant through the U.S Department of Transportation’s Maritime Administration (MARAD) for the purchase of an Automated Welding System (AWS), a revolutionary shipbuilding technology that allows for precision welding of large panels typically difficult or impossible to access from both sides. The AWS decreases costs, provides greater consistency and superior quality of welds, increases the speed of output for large panel welds, and is both safer to operate and significantly more energy efficient than older models. The AWS system will be the centerpiece in Birdon’s new 65,000 square foot vessel fabrication center.

Birdon was awarded a $1.187 billion contract in 2022 to design and build 27 new WCC vessels for the US Coast Guard, including 16 River Buoy Tenders (WLRs) and 11 Inland Construction Tenders (WLICs). The WCCs are essential to maintain and protect the United States’ intra-coastal and inland Marine Transportation System. This System spreads over 12,000 miles of commercially active inland waterways through which 630 million tons of cargo moves annually, accounting for more than $5.4 trillion annually and 30.7 million jobs for the U.S. economy. To support the safe and efficient flow of economic activity along these U.S. rivers, lakes, intercoastal waterways and harbors, WCCs establish and maintain over 28,200 inland Aids to Navigation (ATON). Additional missions include search and rescue (SAR), marine safety, marine environmental protection, and security of ports, waterways, and coasts. Many of the current Inland Waterways fleet are over 50 years old, and are increasingly difficult and expensive to maintain. The new WCCs will greatly enhance the Coast Guard’s ability to perform their Marine Transportation System missions.

Established in 1977, Birdon is an experienced defense prime contractor providing specialized maritime solutions. Birdon is an established and trusted partner of the Australian Defence Force, Brazilian Army, and the U.S. Department of Defense and Department of Homeland Security. Birdon is successfully delivering on major projects for the Australian Navy, Australian Army, U.S. Army, U.S. Coast Guard, and U.S. Navy/Marine Corps.