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Port Commission authorizes MOU with U.S. Navy to begin Phase 1 of Dry Dock No. 1 disposal
Summary
The Port Commission approved an MOU allowing NAVSEA and Titan Salvage to begin Phase 1 of dismantling and removing Dry Dock No. 1, with Phase 1 federally funded and not obligating port funds; commissioners asked about buoyancy, liability and next steps for phases involving port funds.
The Port Commission on Oct. 31 approved a memorandum of understanding that lets the U.S. Navy and its contracted salvage firm, Titan Salvage, begin Phase 1 of work to remove and dispose of Dry Dock No. 1.
Port staff described a decades-long effort to divest the decommissioned dry dock, built in 1942 and declared unfit for service in 1999, which has hazardous materials, limited disposal options and previous failed disposal attempts. The congressionally directed appropriation to assist disposal is administered through the Department of Defense’s Office of Economic Adjustment; NAVSEA has made the funds available via an existing Navy salvage contract already encumbered to Titan Salvage.
Phase 1 will remove the dry dock’s removable end sections and tow them to a facility (Mare Island was discussed) where they can be handled in a graving dock; staff said Phase 1 is fully federally funded and the MOU does not obligate port funds. Later phases will evaluate options that may require port funds for final disposal, bisecting or remediation of hazardous materials.
Commissioners asked technical and legal questions about buoyancy and sinking risk if portions are bisected, insurance naming the city and port as additional insured, and whether transferring the work to a third party would move liability away from the port. Port staff said the Navy and Titan Salvage have naval-architect expertise and that insurance and release-of-liability language in the MOU are required before the Navy will proceed. The port noted it already bears some risk from the structure while it remains in the bay.
The commission voted to authorize the MOU to allow NAVSEA and Titan to access Dry Dock No.1 to begin Phase 1. Staff said they expect follow-up recommendations within weeks on which Phase 2/3 option staff will recommend and that any port-funded work will return to the commission for approval.
