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The end of the Cold War had a significant impact on the economy of Philadelphia, Pa. After almost two centuries of operations, the naval shipyard there was forced to close, and the city was faced with the question: What would it do with the land, equipment, and buildings once the Navy had ceased to operate the yard? After giving a brief history of the nation's first government-owned shipyard (established in 1801), the authors detail the costs to the Navy and the Philadelphia region of closing the yard and the city's hunt for a commercial tenant. The report describes the distinctly European business philosophy of the eventual tenant, Norwegian shipbuilding giant Kvaerner, and the conditions of its deal with the city and concludes that the Philadelphia example should be considered by other U.S. military shipyards that might be faced with closure in the future.

Table of Contents

  • Chapter One


  • Chapter Two


  • Chapter Three

    Base Closure Decisions

  • Chapter Four

    Philadelphia's Reuse Plan

  • Chapter Five

    The Navy's Closing Policies, Practices, and Costs

  • Chapter Six

    First Attempt at a Private Shipyard: Meyer-Werft

  • Chapter Seven

    Kvaerner: A Deal Is Struck

  • Chapter Eight

    Aftermath of the 1997 Kvaerner Contract

  • Chapter Nine


  • Appendix A

    Ships Built at the Philadelphia Naval Shipyard

  • Appendix B

    Philadelphia Naval Business Center Tenants

The research described in this report was performed under the auspices of RAND's National Security Research Division.

This report is part of the RAND Corporation Monograph report series. The monograph/report was a product of the RAND Corporation from 1993 to 2003. RAND monograph/reports presented major research findings that addressed the challenges facing the public and private sectors. They included executive summaries, technical documentation, and synthesis pieces.

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