Quotulatiousness

October 29, 2013

Even selling the USS Forrestal for $1 was a win for the US Navy

Filed under: Economics, Environment, Military, USA — Tags: , , , , — Nicholas @ 07:21

Several people have commented about the headlines proclaiming that the very first supercarrier had been sold for a princely sum of $1, but Strategy Page explains why even that token dollar was better than all the other options:

The U.S. Navy recently sold a decommissioned (in 1993) aircraft carrier (USS Forrestal) for scrap. The ship yard that will take the Forrestal apart (All Star Metals of Texas) paid the navy one cent ($.01) for the ship. That’s because this was the best deal the navy could get. That’s because it will cost many millions to take the ship apart in a legal fashion (being careful to avoid releasing any real or imagined harmful substances into the environment). The other alternative was to sink the Forrestal at sea. But this requires partial disassembly (to remove anything that could or might pollute the ocean), that would be even more expensive.

[…]

Since the 1990s, sending warships to the scrap yard has not been considered a viable alternative. It’s all about pollution, bad press, and cost. That was because of the experience with the largest warship to be scrapped to date, the 45,000 ton carrier USS Coral Sea. This ship took until 2000 (seven years) to be broken up. Thus, the new ecologically correct process was not only expensive but it took a long time. Then the navy discovered that the cost of scrapping a nuclear powered carrier like the USS Enterprise would be close to a billion dollars. This was largely the result of a lot more environmental and safety regulations. With so many navy ships (especially nuclear subs) being broken up in the 1990s, and all these new regulations arriving, the cost of disposing of these ships skyrocketed. This was especially true with carriers.

So for over a decade the navy just tied up retired ships and waited for some better solution to appear. That never happened. In fact, the situation has gotten worse. The navy only has one ship scrapping facility (Brownsville, Texas), so only one carrier at a time can be dismantled. Using official estimates of the time required to dismantle each of the biggest ships, it’ll take seven decades to get rid of the surviving conventionally powered carriers. Note also that the conventional carrier in the absolute worst shape, the USS John F Kennedy, is the one being officially retained in category B reserve (but only until Congress forgets all about her, of course). Name recognition really does count.

It gets worse. With the really vast number of single hull tankers being scrapped and large numbers of old, smaller-capacity container ships laid up and likely to be offered for scrap fairly soon, the market for difficult-to-scrap naval ships is going to shrivel and the price for scrap steel will drop. Efforts to get the navy to include the costs of disposal in the budget for lifetime costs has never caught on and now it’s obvious why not. The real nightmare begins with the first nuclear powered carrier (the 93,000 ton USS Enterprise), which began the decommissioning process in late 2012 (with the lengthy removal of all classified or reusable equipment). The cost of dismantling this ship (and disposing of radioactive components) may be close to $2 billion.

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