Maritime Business Day seminar in Helsinki 30.1.2018_Presentation by Ulla Lainio, Arctic Maritime & Offshore from Finland Program Director, Business Finland

1. © Finpro
1
United States Coast Guard
Ice Breaker Program
30 January 2018
Ulla Lainio
Rights: Tim Bird

2. Finland has the solid Ice Breaker value chain

3. United States Coast Guard Ice Breaker
Program (USCG IPB) – main players
• USCG
• US Navy
• Integrated Program Office (IPO)
• US Shipyards (5)
• Ship engineering and design
companies, Gibbs & Cox - ( 5 +)
• Lobbyist companies
• US Congress, US Congressional
Arctic Caucus
• Ship equipment & system suppliers

4. United States Coast Guard Ice Breaker
Program (USCG IPB) – status
• Coast Guard is the U.S. agency
responsible for polar icebreaking.
• USCG has announced that they
require 3 large and 3 medium size
icebreakers to ensure continued
access to both polar regions and
support the country's economic,
commercial, maritime and national
security needs.
• It is a replacement of 40 year old
Polar Star, photo by USCG
• USA has 1 icebreaker, Russia has 41.

6. USCG Ice Breaker Program – Shipyards
• USCG awarded on Feb. 22, 2017 five contracts for heavy polar icebreaker design studies and analysis.
The objective of the studies is to identify design and systems approaches to reduce acquisition cost and
production time-lines. Current work (industry studies) goes until February 2018.
• The contracts were awarded to Bollinger Shipyards LLC of Lockport, Louisiana; Fincantieri Marine
Group LLC of Washington, D.C.; General Dynamics/National Steel and Shipbuilding Company of San
Diego; Huntington Ingalls Inc. of Pascagoula (photo), Mississippi; and VT Halter Marine Inc. of
Pascagoula. The total value of the award is ca. $20 million.

7. USCG Ice Breaker Program
– RFP schedule in 2017-2019
• The U.S. Navy and U.S. Coast Guard (USCG) under an Integrated Program Office (IPO),
released a draft Request for Proposal (RFP) 19.10. – 11.12.2017 for the detail design and
construction of a Heavy Polar Icebreaker (HPIB).
• The draft RFP was for one HPIB, with options for two additional HPIBs. (1+2)
• USCG will give the final RFP in 2018.
• The integrated USCG-Navy program office plans to award a single contract for design
and construction of the lead heavy polar icebreaker in 2019.

8. USCG Ice Breaker Program
– Building schedule
• USCG wants to begin building in 2019-20. Icebreaker could enter service in 2023.
• Procurement of long leadtime materials (LLTM) for the three ships would start in Q4 of
2019, Q2 of 2021, and Q2 of 2022.
• The ships would be delivered in Q3 of 2023, Q2 of 2025, and the Q2 of 2026.
• Coast Guard envisions having a single U.S. shipyard build all three ships under a contract
with options, as a form of annual contracting. An alternative would be a block buy
contract.

9. • Cost estimate of the 1st heavy
icebreaker is $983 million. Average cost
is ca. $791 million, acquisition of 4 ships.
• Cost estimate of a first-of-class medium
icebreaker is $786 million. The 4th ship
$692 million.
• Cost Estimate is based on a ship with
integrated electric drive, 3 propellers, a
combined diesel and gas (electric)
propulsion plant. Icebreaking capability
would be equivalent to the POLAR Class
Icebreaker Polar Star and research
facilities and accommodations equivalent
to HEALY.
Cost Estimate of Icebreakers $4,704 million
for 6 ships—an average of $784 million each

10. • “Coast Guard is cautiously optimistic it
will get the funding”
• “To get there, the service will need to
tap expertise from overseas.”
• “We haven’t built a heavy icebreaker
in this country since the Polar Sea
and the Polar Star in the mid-1970s”
• “All the major icebreaker technology
developments over the past 40 are all
overseas in countries like Finland,
Sweden, Russia. It’s going to require
a significant bit of foreign expertise.”
Statement of U.S. Coast Guard Vice
Commandant Adm. Charles Michel

11. • Team Finland Business Delegations to USA in March-April and November
2017
• Meetings with the shipyards, USCG, Navy, Congress, design companies
• 9.-11.4.2018 Next Business Delegation to Sea Air Space, Washington DC
area to continue meetings with stakeholders
• 5.-7.11.2018 ATC (Arctic Technology Conference) Houston: Finland
pavilion and Business Delegation
• Common tools: Finland Icebreaker Sales Brochure and a video
• Navy and USCG high level visits in Finland in March and May 2018
WORLD IDEASFinnish companies’ activities in the Ice Breaker Program

12. THANK YOU!
• ulla.lainio@businessfinland.fi
• Program Director
• Tel. +358 40 3433357
Visit Arctic Maritime and Offshore from Finland web site with event calendar, news and country reports at
www.businessfinland.fi