Post by ferryfast admin on Sept 13, 2011 11:40:25 GMT -5
Photo-Derecktor Shipyards
Hard times at Derecktor Shipyards, once Bridgeport’s bright star
www.derecktor.com/
m.newstimes.com/danbury/db_14216/contentdetail.htm?contentguid=fHYSD65B&storycount=9&detailindex=7&pn=&ps=&full=true#display
09/12/2011 8:22 PM
A year after attracting national attention for the launch of one of the world's largest private yachts, Derecktor Shipyards said Monday it is considering a temporary shutdown of its Bridgeport operations.
"We're not planning on leaving Connecticut," said Paul Derecktor, president of Derecktor Shipyards. He cited a slowdown in the shipbuilding industry as the reason for the possible shutdown, which he said would be temporary.
Derecktor said the shipyard on Seaview Avenue is down to a staff of 20 to 25 who do maintenance work on ferries and other boats.
"It's tough times for us," he said, "There's no new construction and service is just barely enough."
A year ago, Derecktor delivered the Cakewalk V, a 281-foot private yacht, the largest built in the U.S. in more than 70 years. The value of the contract has never been revealed, but other shipping industry experts placed it at more than $200 million. As many as 225 people were employed during the build of the Cakewalk, but Derecktor said layoffs have occurred steadily since the boat was delivered in November of 2010. The company has employed more than 300 at the yard.
Derecktor said the issues at the Bridgeport shipyard are not tied to any litigation.
In 2008, Derecktor filed for bankruptcy protection as it worked on two major vessels at the same time and disagreements over the cost and time frame of the delivery ensued. All the cases associated with that filing closed officially in August, according to U.S. Bankruptcy Court records.
Derecktor's struggles represent a dramatic turnaround from recent times, when the shipyard's success was hailed as a harbinger of Bridgeport's possible economic resurgence. Andrew Nunn, the acting executive director of the Bridgeport Port Authority, said it is already lining up other potential tenants for authority-owned site, called the Bridgeport Regional Maritime Complex.
"The BMRC will continue to operate as an active shipyard, despite Derecktor Shipyard's reported plan to file for bankruptcy," Nunn said in a statement released through Bridgeport Mayor Bill Finch's office. "The BMRC is an important local, statewide and regional asset for the marine industry. We are pursuing a new plan with strong industry partners. We have active work on the site now -- Hornblower, a national maritime company, is building its first of a kind hybrid ferry for use in New York City."
Hornblower operates a fleet of tourist cruise vessels on both coasts and awarded Derecktor the job of retrofitting Hornblower's Statue Cruise vessel last year. That vessel will use a variety of renewable fuels to take people to the Statue of Liberty and is already in the water awaiting sea trials.
Nunn also noted that over its 12-year history, Derecktor has received significant support from the state and city. He did not say whether Derecktor was current on its rent.
Paul Derecktor said the company is working with Malloy administration officials on whether there's anything the state can do to financially help the company. The Department of Economic and Community Development confirmed staff met with the company last week.
Maritime industry experts say U.S. boat building is foundering with a slack in demand and rise in expenses and global competition.
Ian McCurdy said boat building in the U.S. has been in decline for 20 years.
"We've seen production boat builders go from 40 to 10," he said.
The one area of demand growth has been in mega-yachts, like Cakewalk, he said. But global competition is fierce for these contracts.
On the smaller ship contracts, he said, the wider use of fiberglass has contributed to the reduction in demand, he said; "Fiberglass doesn't rot."
Smaller yards are making it by building one or two boats a year and doing service work, he said.
Paul Derecktor confirmed the company's Mamaroneck Yard in New York, which is smaller, is holding its own in this market.
Donald Frost, head of the maritime consulting firm D.B. Frost and Associates, said there's not a lot of support for boat and ship building in the U.S. right now, even from the defense industry, which has helped U.S. aerospace companies during the last decade.
He said Northrop Grumman's unloading of Newport News yard is an example of how hard it is in the business.
In a $2.6 billion deal, Northrop bought the Newport News Shipyard in 2001. This year, Northrop spun off the shipbuilder as Huntington Ingalls Industries, giving each Northrop stockholder one share in Huntington, for every six they owned in Northrop.
"Northrop did not make money on it," he said.
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Derecktor considers temporary closure in Connecticut
By Lucy Chabot Reed
thetriton.com/article/2011/09/derecktor-considers-temporary-closure-connecticut
September 13, 2011
Derecktor Shipyards is considering a temporary shutdown of its Bridgeport, Conn., operations, according to a story in today’s Connecticut Post.
"We're not planning on leaving Connecticut," said Paul Derecktor, president of Derecktor Shipyards, told the Post. The Bridgeport yard is down to a staff of 20 to 25.
"It's tough times for us," he said. "There's no new construction and service is just barely enough."
A year ago, the yard delivered the 281-foot M/Y Cakewalk V, the largest yacht built in the United States in more than 70 years. As many as 225 people were employed during the build, the Post reported, but Derecktor said layoffs have occurred steadily since the boat was delivered last fall.
Derecktor told the Post the issues at the Bridgeport shipyard were not tied to any litigation. In 2008, Derecktor filed for bankruptcy protection over disagreements with the cost and time frame of a new build.
Derecktors three shipyards -- in Connecticut; Mamaroneck, N.Y.; and Dania Beach, Fla. -- are all autonomous. The problems in Connecticut will not impact either the New York or Florida yards.
"This yard is as healthy as it ever was," said James Brewer, director of yacht service sales at the South Florida yard. "We had a better summer than we anticipated and are keeping busy."
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