DATE: Sunday, September 14, 1997            TAG: 9709130024

SECTION: COMMENTARY              PAGE: J4   EDITION: FINAL  

TYPE: Editorial

                                            LENGTH:   41 lines

NEWPORT NEWS SHIPBUILDING AN IMPORTANT TANKER

Building tankers for private industry is not as profitable as building warships for the U.S. Navy. But make no mistake: Newport News Shipbuilding nonetheless had every reason to cheer at the christening of Mobil Corp.'s double-hulled tanker, The American Progress, the other day. Hampton Roads - indeed, all Virginia - should have cheered.

The tanker for Mobil is the first commercial vessel in 15 years to slide down the ways at Newport News Shipbuilding, which is the only yard that builds super attack-aircraft carriers. With the Cold War over, Newport News Shipbuilding is learning how to produce commercial vessels in the most cost-efficient ways.

Newport News once built the world's fastest passenger liner, SS United States, and other great passenger ships. Warships, including aircraft carriers, built at the yard before and during World War II helped turn the tide of battle against the Axis Powers.

Government-subsidized foreign shipbuilders and Washington's near-abandonment of support for the U.S. merchant marine in the post-war years all but eliminated commercial shipbuilding in the United States.

Getting back into the business can be costly. Newport News Shipbuilding is losing millions on its first series of double-hulled tankers. But the shipyard expects losses to end as it acquires expertise that will enable it to speed tankers to completion.

Meanwhile, the shipyard is doing work for the Navy, although much less since the collapse of the Soviet Empire. And the shipyard is looking to make money by building ships abroad for foreign governments. Such arrangements won't generate additional shipbuilding jobs in Newport News, but they will help the shipyard remain solvent, and solvency is essential to survival.

Newport News Shipbuilding employs 18,000 workers, mainly skilled and well-paid. The more orders for vessels in Newport News - indeed, the more business for shipyards in Hampton Roads - the more prosperous the region. So cheers for the aptly named American Progress.

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