January 22, 2008

NASSCO starts construction of second product tanker

General Dynamics NASSCO, San Diego, today began construction of the second ship of its new class of product carriers. The shipyard is scheduled to lay the ship's keel in June and deliver the ship to U.S. Shipping Partners (NYSE: USS) in the second quarter of 2009.

In August 2006, NASSCO, a wholly-owned subsidiary of General Dynamics (NYSE: GD), received a $1 billion contract from U.S. Shipping Partners to build nine ships. The ships will be double-hulled, 183 meters (600.4 feet) in length and displace 49,000 dead weight tons. With a cargo capacity of about 331,000 barrels, the ships are designed to carry petroleum and chemical products in Jones Act trade between U.S. ports.

NASSCO employs approximately 4,700 people and is the only major ship construction and repair yard on the West Coast of the United States. In addition to the Product Carrier ship program, NASSCO is also building the new class of T-AKE dry cargo-ammunition ships for the U.S. Navy.