VTHM: Back from the wilderness

After wondering in the wilderness, Gulf Coast shipyard VT Halter Marine (VTHM) of Pascagoula, Miss., is setting a new course in its government shipbuilding business. In mid-April, VTHM won a $745M contract for the detail design and construction of the first of up to three Coast Guard Polar Security Cutter icebreakers. The win, which has potential options up to $1.9Bl, allowed this subsidiary of Singapore Technologies to put Gulf Coast shipbuilding on notice – an oft overlooked naval shipyard is back from its checkered past and 2009-11 business implosion. But as Bob Dylan wrote in the 1960s: “The times they are a changin’.” The icebreaker contract showed that VTHM was tough enough to crowd out a pair of hungry competitors. Industry rumors suggest VT Halter Marine was relentless, attacking established business collaborations to reduce competition and increase its chances at securing the contract. With a steady trickle of private-sector work, VTHM has become one of the few U.S. shipyards set to exploit the growing demand for vessels ready to use liquefied natural gas as a fuel source. VT Halter Marine has demonstrated that it can successfully compete anew. Now, comes the difficult part: Demonstrate it can execute all their new varied contracts. (Source: Forbes 04/29/19)