Competitive U.S. Jones Act dredging market, new construction of dredges largest capitalization ever

| Oct 04 2023 at 12:41 PM | Maritime | Ports & Terminals

The U.S. dredging industry is highly competitive and saves the taxpayer hundreds of millions of dollars every year.

In 2022, according to The Mike Hooks Report, An Analysis of the FY22 U.S. Federal Dredging Market, compiled in September 2023 finds the following:

Fifty-two (52) Jones Act Dredging Companies were awarded federal dredging contracts in FY2022.
On average there were three (3) bidders per project.
On twenty (20) projects there were five (5) or more bidders.
Seventy-two percent (72%) of the time the private sector industry winning bid was lower than the Independent Government Estimate (IGE);
Ninety-five percent (95%) of the time the private sector industry winning bid was lower than the Government Estimated Awardable Range (GEAR), which is IGE + 25%.
Fifty-nine (59) projects lower by more than 10%, 27 projects lower by more than 25%, and 15 projects lower by more than 40%!!

What does this mean? It means that the U.S. private sector dredging industry is fiercely competitive and is delivering services that saves the federal government, and therefore the taxpayer, hundreds of millions – $670M in FY22 alone.

New construction of Jones Act dredges – U.S. owned, built and crewed vessels have been rolling off the blocks for the past five (5) years and will continue into the foreseeable future – over $2.5Billion in recapitalization.

Let’s review the shipyard order books on the publicly available announcements: