Able UK and the US Ghost Fleet
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ARTIFICIAL SWEETENERS - the dark underside of the Ghost Fleet deal

Many people have wondered how Able UK and its New York partner, Public Service Remediation Partners, could outbid American shipyards in the competition to secure the contract for these 13 ships. The costs of trans-Atlantic towage would seem to rule out any successful bid from a country with comparable wage rates and environmental standards. But MARAD say it was won in free and fair competition, and 'represents the best deal for the US taxpayer'

Here's a possible explanation....

THE OPPORTUNITY - THE OTHER TWO SHIPS

Construction of two US Navy oil tankers was abandoned due to contract difficulties during the 1990s, leaving the HENRY ECKFORD 84% complete and the BENJAMIN ISHERWOOD 95% complete. By this time something over $400 million had been spent on them. (details and histories in the links)

PHASE 1 - GREASING THE SKIDS

In 1998 an unidentified lawmaker slipped an unnoticed extra clause into the Defense provisions planned for 2000. It added the Eckford and the Isherwood to ships that MARAD could sell or give away for non-naval purposes. For these two, the sale must be competitive, at a fair market price, any completion work must be done in the USA, and any subsequent sale must be subject to US constraints on the export of military equipment. The clauses are quoted on page 3 of this MARAD document.

PHASE 2 - TYING THEM UP

The successful bidder for the thirteen ghost fleet ships was a New York firm, Public Service Remediation Partners, part of the business empire of Percy Rivington Pyne IV, a member of one of America's banking dynasties. Able UK was lined up as PSRP's subcontractor. PSRP insisted on $3 million of the $17.8 million contract payment being made in kind, in the shape of the Eckford and the Isherwood. Reportedly, a domestic (Texas) US scrapper quoted a lower total price for the same thirteen ships; maybe MARAD compared them only in terms of the cash payout to be made?

So PSRP got the tankers, Able UK got the ships (and big grants for some new dock gates) , Hartlepool got the toxic waste, and the US domestic scrappers got nothing.

MUDDYING THE WATER

According to MARAD (page 2 of 16th October press release), PSRP has now been bought by Able UK !! This would mean the elevation of Able UK from subcontractor to main contractor, and acquisition of the two tankers ! In the same press release , MARAD seizes the opportunity to misrepresent the deal, suggesting it's got rid of fifteen ships for a mere $14.8 million. No, it's paying $14.8 million PLUS two valuable tankers to get rid of just thirteen ships.

CHECKING THE SALES (ouch!)

US ship scrappers and the politicians representing them have started asking questions about how this all came about - and on October 8 the General Audit Office agreed to look at the way MARAD awarded this particular contract, checking whether any unlawful shortcuts were taken. (report), and making recommendations.

With nine of the ships still overwintering on the James River, awaiting the proper environmental assessments the first four never got, this must be an opportunity to rule the whole contract illegal and to stop it going further. But we're not holding our breath.