Tug builder to expand

A shipyard in East Boothbay that has become the largest tugboat builder on the US East Coast is planning a multi-million-dollar expansion that could triple its work force of skilled boat-builders. Washburn & Doughty Associates Inc. has signed an agreement to buy 14 acres at a former oil terminal in Bucksport, on the Penobscot River in Maine. If the deal goes through, the shipyard expects to hire as many as 200 new workers in the next few years. It now has 90 employees.

The 30-year-old, privately owned yard has five years worth of back orders, but no room to expand at its current site, according to Bruce Doughty, the company’s president.

“We’ve been turning away business for nearly a year,” Doughty said. Negotiations for the land are at a crucial point and issues need to be settled over the next month or so for the sale to take place. He declined to discuss the sticking points.

“If they are resolved, we go ahead,” he said. “If not, we walk away and it’s business as usual. And the jobs go somewhere else.” Washburn & Doughty’s expansion would be an important development for a state that is trying to highlight its boat-building heritage and abilities, according to an economic development official who helped the company find the site in Bucksport.

Last Autumn, the company signed a deal to build six tugboats by the middle of 2009. At the time, it was already building two 92-foot and two 121-foot tugs for Moran. One is being readied for delivery next week. The tugboat business is very profitable right now. Federal requirements for double-hulled tankers have created a need for more powerful tugs to handle heavier ships. At the same time, the worldwide boom in oil exploration and the development of liquefied natural gas terminals are driving demand for even more tugs.