Shipyard Approved; May Create 500 Jobs

Furthering civilian use of the Long Beach Naval Complex, port commissioners on Monday approved a ship repair facility for part of the former base--a move that could generate at least 500 jobs and put one of the West Coast’s largest dry docks back into operation.

The Board of Harbor Commissioners for the Port of Long Beach unanimously selected a plan by Astoria Metal Corp. to use 51 acres of land and water space in the now-closed shipyard section of the complex.

Astoria, which is based in Long Beach, wants to use the site for construction of utility barges as well as for the repair of passenger ships, freighters and oil tankers. If the project is successful, company officials say, about 500 positions will be created.

“We have been committed to seeing that this shipyard works and that it brings jobs back to the area,” said Commissioner Carmen O. Perez. “This represents a wonderful opportunity.”

Astoria has offered to pay the port $1.5 million a year in rent, plus 2% of gross revenue for the first five years of operation. The company also has proposed investing $9 million in the facility within a year of its opening.

Details of the lease need to be finalized, but port and company officials say operations could begin in July. The plan calls for use of machine shops, buildings and the main dry dock.

Harbor commissioners rejected a competing proposal by Southwest Marine Inc. of San Pedro, which wanted to move its facilities to Long Beach. Port officials said Southwest Marine wanted substantial subsidies and a $4-million investment by the harbor department.

Astoria Metal’s shipyard project is headed by John A. Pickering, a retired Navy captain and the last commander of the shipyard, which closed in September 1997. The yard employed about 6,000 people before its role was scaled back.

“We are anxious to get in there and get started,” Pickering said Monday. “We should have plenty of work to keep us busy.”

Harbor commissioners proceeded with Astoria’s plan although studies show that the ship repair industry has been steadily declining in the United States.

The vast majority of vessels under foreign and U.S. flags are serviced overseas because of low labor costs and looser environmental controls.

Harbor commissioners said, however, that Astoria has carved out a niche for itself by building utility barges: floating platforms equipped with power generating equipment.