struct this size vessel. This is shown in exhibit 10, which is a summary of the number of building positions available by maximum length of ship that can be accommodated.

END OF BAR INDICATES WHEN YARD NEEDS NEW CONTRACTS IN ORDER TO MAINTAIN ADEQUATE BACKLOG FOR AVAILABLE FACILITIES AND MANPOWER. ASSUME 12 MONTH ADMINISTRATIVE AND PRE-FAB TIME (LEAD TIME BEFORE KEEL LAYING)

EXHIBIT 11

MAJOR U.S. PRIVATE SHIPYARDS-NUMBER OF SHIPBUILDING WAYS BY LENGTH (MAXIMUM SHIP SIZE)

650 700 750 800 850 900

32

32

32

31

30

26

17

17

16

12

7

6

6

4

3

3

2

2

2

1

Exhibit 11 displays this data on a shipyard basis. I should also note that one additional shipyard, Todd Galveston, would have had the capacity for ULCC's. However, the yard was given no assurance that DO-A3 ratings would be available for ULCC's. Because of this lack of governmental commitment plans for the creation of this new facility were curtailed.

The Maritime Administration has developed a Shipyard Production and Mobilization Model (SPAMM) to evaluate the capacity of the U.S. shipbuilding and ship repair industry in terms of building position and manpower requirements, proposed CDS, Jones Act and Navy building programs are compared to determine when shortfalls can be expected to occur. This kind of analysis will impact favorably on the fluctuations often experienced by the industry in the past as the Government will be able to do more effective planning. Requirements for expansion of present facilities or construction of entire new shipyards in the future can also be determined from this program.

Repair facilities

The ship repair industry is a composite of many organizations of varying capabilities. The smaller of these organizations, usually referred to as "topside" yards, do not have drydocks, employ a limited number of people, sometimes less than 100, and specialize in work that can be accomplished without extensive shop facilities. The large organizations have drydocks and can repair or rebuild any part of a ship. Employment numbers in the thousands, and repair may be combined with shipbuilding capabilities. Presently, the Maritime Administration holds master repair contracts with 77 ship repair facilities. Thirty-six are located on the eastern coast, 18 along the gulf coast. 22 on the west coast and one on the Great Lakes. The importance of this repair capability cannot be overemphasized. In times of national emergency repair facilities are critical for mobilization purposes. When and if required for activation the Marad National Defense Reserve Fleet (NDRF) and the Inactive Ships Under Navy Active Control Fleet (ISNAC) would require the use of both the "topside" yards and those facilities having drydock capability. Without the maintenance of both, the capability to respond to emergency situations would be severely curtailed. Exhibit 12 lists the number of drydocks currently available throughout the United States.

EXHIBIT 12

INVENTORY OF SHIP REPAIR AND CONVERSION FACILITIES-BASINS AND DRYDOCKS

The business of repair yards has been on a general decline the last 9 years, with a minor upswing noted for 1973, the last year for which data is available at this time.

The total amount spent in 1966 through 1970 was boosted considerably by the increased ship repair activity due to the Southeast Asia cargo traffic supporting military activity in Vietnam. In addition, ship repair yards over the last few years have actively been seeking business from other industries that use steel fabrication and pipework, such as petrochemicals, with varying degrees of success. The advent of larger ships has affected the ability of some yards with smaller drydocks to maintain their old clients, but the shift by a client to a shipyard with a larger dock has not caused any yard to shut down. The topside yards continue to get their share of the large ship business. In general, the ship repair yard often commands excellent prices for urgently needed repairs and can control its overhead more closely. Ship repair is considered within the industry as more profitable than a ship construction, with the exception of certain troubled areas such as the New York Harbor area.

There has been an increase in foreign work in U.S. ship repair yards in recent years, that has been encouraging. During 1974 this type of work appears to have increased by 50 percent and contributed to full employment in many yards for the first time since the Southeast Asia program. The cause of this increase in foreign repair work appears to be primarily due to the devaluation of the dollar coupled with significant foreign inflation which has increased foreign costs of ship repair. Another contributing factor may be the general increase in world fleets which appears to have occurred without a comparable increase in ship repair capacity.

VI. PROGRAM OUTLOOK

A. EXPECTED NUMBER, TYPE, SIZE OF SHIPS TO BE CONSTRUCTED IN THE FUTURE

A projection of ship construction through the year 1985 is attached as exhibit 13. This projection is based upon an analysis of the current fleet, likely attrition schedules, and expected demand. The ship construction requirements which result from this analysis are based upon