ACS Group, through a consortium led by its subsidiary Dragados, has been selected by the US Navy to build a $2,840 million (nearly $2,700 million) concrete dry dock at Joint Base Pearl Harbor Hickam in Hawaii euros), as announced by the US Department of Defense this Friday. The Pentagon contract also includes some optional items, the execution of which would increase the budget to $3,417 million. The work is expected to be completed in 2027.
Local companies Hawaiian Dredging and Orion JV are also involved in the contract. This project represents the first major construction contract awarded under an $8,000 million program to improve shipyards in Hawaii and Washington state, which Dragados will participate in as one of five teams selected by the United States Navy in 2021 Pentagon announced it is selecting the Dragados-led consortium along with other Canadian and US competitors including Bechtel, ECC Infrastructure; and TPC-NAN JV.
Company sources interviewed about the contract indicate that Dragados has been working closely with the US Navy since 2021 through a collaborative agreement to develop design methods and technical innovations for the project. The Dragados team has now been chosen to build this dry dock that will be used for servicing future nuclear submarines.
“This important project strengthens ACS Group’s commitment to United States federal government projects, diversifies its portfolio of major projects in North America and further strengthens its global experience in executing large and complex maritime infrastructures,” the companies said.
Funding approved for the project is $463 million in the current fiscal year, $1,267 million in fiscal 2024, according to the Department of Defense; 613 million in 2025 and 498 million in 2026, not counting the possibility of extending the contract through three different options.
The United States has emerged as the main market for hot water. In 2022, it generated revenues of 18,837 million euros in the country, 27% more than the previous year and 56% of the group’s total turnover, according to the balance sheet presented recently.
In 2022, ACS was awarded the contract to build the 16.2-mile light rail line in the country, running from Bethesda to New Carrollton, Maryland, at a cost of approximately €1,300 million, by Dragados USA. In addition, the Company, through its subsidiary Pulice, was awarded a contract worth approximately €660 million for the expansion and improvement of the IH35 freeway in Travis County, Texas. The same subsidiary won the construction of a 12.2-mile toll booth in Hidalgo County, Texas for approximately $250 million.
Picone was awarded a €338 million contract late last year to install a combination of retaining walls and deployable barriers to protect infrastructure and reduce flood risk from the Brooklyn Bridge to Montgomery Street in New York. Flatiron, also a subsidiary of the group, was awarded the project to improve the safety of the chemical and disinfection systems at the water treatment plant in Orinda, California, for 267 million. Turner has been awarded the $225 million contract to construct the new Health Education Building on the University of Kentucky’s Lexington campus.
With these and many other smaller deals completed by the various subsidiaries, ACS’ portfolio in the United States was €33,504 million at the end of 2022, half of the group’s total.
So far this year, the group has won major contracts in the country, including building an electric vehicle battery manufacturing facility for Panasonic in De Soto, Kansas, in a project mobilizing a total investment of $4,000 million (€3,750 million at current exchange rates).
This contract corresponds to Turner, the main ACS subsidiary in the country, which also announced in February that it will build a $725 million active pharmaceutical ingredient manufacturing facility in Frederick (north of Denver, Colorado). Earlier in the year, Turner also completed a $73 million college residence project in British Columbia (in Canada) and another $85 million building on the Fort Worth campus in Texas, both in a consortium with other companies. Construction began earlier this year on a $300 million indoor water park resort in Mashantucket, Connecticut.
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