Port of Olympia in line for 5-year lease for two idle Ready Reserve Fleet ships
The Port of Olympia commission will learn Monday about a proposal that could bring two ships, both possibly longer than 600 feet, to the marine terminal for up to five years.
That’s according to the meeting agenda for Oct. 12, which was released Tuesday. The agenda item is identified as “information only.”
According to the agenda, the U.S. Maritime Administration, an agency within the U.S. Department of Transportation, recently requested bids for a minimum five-year layberth and services for two vessels from its Ready Reserve Fleet, which consists of “mothballed” ships, mostly merchant vessels, that can be activated to provide shipping for the United States during national emergencies.
A company called Marine Design and Operations won the bid and now could bring the “layberth and services” work to the Port of Olympia. Although Marine Design is described as the winning bidder, the business still has work to do to prove its bid. The contract is expected to be awarded in November.
“At this time, the port believes the qualifications requested will be met and this contract will be awarded to MDO at the Port of Olympia,” port officials say in the agenda materials. “The layberth is expected to commence with the arrival of the two vessels in March 2021 and will continue for five years ending in February 2026.”
The agreed rate for the first year for two vessels is $2,112 per day, with an annual increase of 3 percent on the anniversary of the start of the layberth, according to the port.
Port officials say the “net present value” of the five-year deal is $3.5 million.
Although the port might welcome the revenue, the community might feel otherwise. Ships with ties to the military have been controversial in recent years, including as recently as 2016.
The Ready Reserve Fleet, which is now known as the Ready Reserve Force, is a division of the National Defense Reserve Fleet, according to the maritime administration website.
Here’s how the Ready Reserve Force is described:
“A official subset of the NDRF that comprises 46 vessels located strategically at ports throughout the country — all held in stand-by status,” the website reads. “An RRF vessel can be activated and dispatched to any spot on earth within 5 to 10 days, designed to support initial military sealift activities, such as transporting various supplies and combat support equipment.
“The RRF also supports emergency response during humanitarian crises and through disaster relief, everything from fresh water management and power generation, to housing recovery workers and offering its vessels as command posts.”
The port commission is set to meet online at 5:30 p.m. Monday.
This story was originally published October 7, 2020 at 5:45 AM.
