The Port of San Francisco, Princess Cruises, and BAE Systems San Francisco Ship Repair have reached a tripartite agreement that will secure San Francisco’s position as the only ship repair port on the West Coast able to accommodate and service the largest cruise ships in the region. Princess Cruises and BAE Systems will invest $5 million to upgrade the Port’s floating drydock at Pier 70, making it capable of handling the newest and largest ships presently operating in the Pacific.

“San Francisco’s origins are as a port city,” stated Mayor Gavin Newsom, “and this new contract will greatly benefit the City’s maritime industries. It will mean more jobs for the shipyard and its skilled union workers and greater business opportunities for the Port’s marine terminals and supporting services. Having more cruise ships in San Francisco will also augment our visitor industry.”

Upgrades to San Francisco’s floating drydock, named Drydock #2, will include improving the stability of the dock and installation of significant structural reinforcements, making it the largest repair drydock on the west coast of North and South America.

“The investment by Princess Cruises and BAE Systems is very important for San Francisco,” stated Port Executive Director, Monique Moyer.

“With improved maritime assets, we can compete to attract mega-cruise ships that previously would not homeport on the West Coast, as well as cargo ships, tankers, and military vessels.” As a result of the drydock expansion, Princess Cruises has reserved the San Francisco facility for scheduled hull repairs and topside renovations on two of their 109,000-ton ships – Star Princess in fall 2008 and Golden Princess in spring 2009.

“Princess Cruises has enjoyed a longstanding relationship with San Francisco,” stated Dean Brown, Princess Cruises Executive Vice President. “Being able to refit our large ships here on the West Coast is a big advantage for us.”

“This agreement allows BAE Systems to increase our West Coast drydocking capacity,” said Al Krekich, President of BAE Systems Ship Repair, “and positions us to expand our services to a larger share of the commercial shipping market in the Pacific.”