THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, November 17, 1995 TAG: 9511170189
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY CHRISTOPHER DINSMORE, STAFF WRITER
LENGTH: Short : 48 lines
Dreadnought Marine Inc. has leased space at Norfolk International Terminals Inc. to do pierside repairs on Navy vessels.
Dreadnought Marine is the second so-called ``down-river'' ship repair firm in Hampton Roads to lease a waterfront facility to expand its repair base. Down-river companies don't own their waterfront repair facilities, but usually perform work wherever the vessel is docked, such as at the Norfolk Naval Base.
``I wouldn't buy a shipyard, but I don't mind leasing waterfront,'' said John Brandon, chairman of the Norfolk-based ship repairer.
Dreadnought recently won a $1.6 million repair contract from the Navy on the guided-missile frigate Hawes. The Hawes will be berthed at NIT's Pier 3 while it is repaired, Brandon said.
Work will start on the Hawes in early December and last nearly 90 days, Brandon said. With options, the contract could be worth nearly $2 million, he said. Dreadnought employs about 300.
Dreadnought is leasing the berth for longer than the Hawes job will take. While Brandon would not disclose the term of the lease, he said the company expects to do other jobs there.
Earlier this year, Earl Industries Inc., a Portsmouth-based down-river ship repairer, leased a drydock at a Norfolk shipyard for a $3.6 million overhaul of the guided-missile frigate Robert G. Bradley.
The Bradley is scheduled to leave the leased dock at Metro Machine Corp. on Monday for sea trials.
``We hope to do it again,'' said Jerry Miller, Earl Industries president. ``It's been a success.''
The berth Dreadnought is leasing is at the former Sewells Point Docks. It was purchased by the Virginia Port Authority several years ago from Norfolk Southern Corp. for future expansion.
``We don't need all of the berths for handling cargo, so we try to use some of the facility for lay berths,'' said Joseph A. Dorto, chief executive and general manager of Virginia International Terminals Inc. VIT operates the port's state-owned terminals.
Leasing lay berths boosts the terminal's income. by CNB