President Trump stood at Sparrows Point, Maryland, on Tuesday, October 6, and launched construction of Arsenal-2, a shipyard he called the largest new one built in America since World War II. The reason is simple: the Navy cannot get submarines fast enough, and the yards that build them are short of parts, workers and room.
Story Highlights
- Anduril Industries, a defense technology company, will put $3.7 billion of its own money into the yard at Sparrows Point.
- The Navy awarded Anduril a contract worth up to $2.9 billion for submarine parts.
- Maryland officials expect more than 3,100 direct jobs, with the yard operating by 2030.
- Maryland Gov. Wes Moore, a Democrat, did not attend after he was told he could not speak.
Trump Launches A Shipyard For The Submarine Fleet
“We’re officially launching the construction of the largest new shipyard in the United States — this is since World War II,” Trump told the crowd. He said workers there will build “the next generation of American submarines, including autonomous subs, torpedo tubes, and critical components for our cutting-edge Virginia-class attack submarines.” An autonomous sub is a crewless one, a submarine that runs with no sailors aboard. Virginia-class boats are the Navy’s nuclear-powered attack submarines, built to hunt ships and other subs.
The builder is Anduril Industries, a California defense company founded by Palmer Luckey. The yard sits on 187 acres at Tradepoint Atlantic in Baltimore County, the old Bethlehem Steel land where Trump noted that Baltimore workers built the first Liberty ship of World War II. Plans call for more than 2 million square feet of work space and a 1,200-foot graving dock, a basin that can be pumped dry so crews can work on a hull.
What The Yard Will Build And Why The Navy Needs It
Arsenal-2 will not turn out finished Virginia-class submarines. It will make parts and large sections, starting with torpedo tubes and moving up to bigger modules. Those sections go to the two yards that assemble the boats, General Dynamics Electric Boat and Newport News Shipbuilding. When the Maryland yard is running at full strength, it is expected to add about 9 million labor hours a year, a 15 percent increase for the submarine program.
That added muscle is the point. Navy and congressional reports describe years of worker shortages, thin supplier lists and late deliveries that have held submarine production below target. A Naval Postgraduate School analysis put Virginia-class output at about 60 percent of plan in recent years. The Navy’s goal is two of the boats a year.
The Money, The Jobs And The Timeline
Two dollar figures are in play, and they are not the same thing. The $3.7 billion is Anduril’s private money for the land, buildings and equipment. The up-to-$2.9 billion is a Navy contract for the submarine parts Anduril will deliver, with payments tied to what the yard produces. Together they come to $6.6 billion. Trump said the Navy’s future purchases could reach $21 billion.
Maryland officials expect more than 3,100 direct jobs at the yard, about $312 million a year in wages and $2 billion a year in economic activity. The state and Baltimore County have agreed to match up to 13 percent of Anduril’s investment through incentive programs, some of which still need votes by state and county lawmakers. Site work and permits come first. Operations are expected to begin in 2030, and no date for a first submarine delivery has been announced.
The Governor Was Not There
Gov. Wes Moore, the Democrat who leads Maryland and whose administration helped land the project, stayed away. Moore said he had been on the program and was then told he could not speak. “If the president of the United States wants to bring the circus into town and tell me that I’m not allowed to speak despite the fact that we were the ones that helped bring the deal, then I will let the circus be conducted while I go back to work for the people of Maryland,” he said.
The White House said Moore was invited as a guest. “It’s unfortunate that the Governor is now making a multi-billion dollar announcement about himself by throwing a tantrum over a federal initiative that will bring sorely needed jobs back to his state thanks to President Trump,” a spokesperson said. Trump did not mention Moore from the stage. Anduril chief executive Brian Schimpf thanked the governor, county leaders and the state’s delegation in Congress for moving “with urgency” to bring the yard to Baltimore County.
For families around Sparrows Point, the yard means steady skilled work on land that once made steel. For the Navy, it means more parts arriving sooner, so the boats the fleet has been waiting on can leave the assembly yards faster.
Sources:
reuters.com, maritime-executive.com, wmar2news.com, freightwaves.com
