Morning Briefing - May 11, 2016
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May 11, 2016

STURGIS Decommissioning Cost Spikes

By ExchangeMonitor

The cost to decommission and dismantle the STURGIS barge is estimated to grow from $34.6 million to $51.5 million, resulting in part from compatibility issues between a 440-ton crane and the surrounding dock, the U.S. Army Corps of Engineers announced this week.

The timeline for completion of the project has also been pushed back an entire year, from fall 2016 to fall 2017. The STURGIS, a onetime World War II Liberty Ship that was fitted with a nuclear reactor that powered military and civilian operations in the Panama Canal during the 1960s, contains low-level radioactive waste. The ship arrived at the Port of Galveston, Texas, in April 2015, after being towed about 1,700 miles from the James River Reserve Fleet in Virginia.

The Army Corps of Engineers, which is leading the decommissioning project, suspended work on the barge in February to address the equipment mismatch, with engineers raising concerns that the crane could not handle the heavier loads associated with project. Crews resumed work on Monday, after the Corps conducted a load test with the crane on Saturday and verified that all operational concerns had been addressed.

The Corps’ announcement explained that the increase in time to implement the project, coupled with operational delays, contributed to the increased price tag. Other budget impacts include “additional complexities to engineer and implement the project,” decreased value of scrap for the vessel, discovery of some “unanticipated lead based paint,” and additional towing costs earlier in the project.

The Corps made note that there has been no evidence of radioactive material or increased radiation exposure from the STURGIS outside the reactor containment area.

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