"I realize there is a lot of anxiety about the project," he said. He was referring to the April decision of Kvaerner ASA, the Anglo-Norwegian conglomerate that had been developing a commercial shipyard at the Naval Base, to get out of the shipbuilding business.

"In an enterprise as dramatic and important as converting a naval base into a modern, commercially competitive shipyard, there are going to be bumps in the road," Katz told a gathering of port business executives at the Maritime Exchange for the Delaware River and Bay.

"If you are going to be a leader, you simply have to sustain the effort through these bumps," he said.

Katz said he would support Kvaerner's continued efforts here or the efforts of a new owner if Kvaerner goes through with plans to sell its operations at the yard.

Construction on the yard continues and Kvaerner remains obligated by its agreement with Gov. Ridge to begin building ships by next spring.

Katz said his work as a financial adviser to Meyer Werft, the German shipbuilder who considered coming to the Navy Yard in 1995, had convinced him that "we really do have the capacity to make things here. We really do have the capacity to become a major maritime center."

He said he had reviewed Kvaerner's business plan and believes "the yard will never lose money."

The city's shipyard and seaport - already a source of some the region's highest-paying jobs - could become a powerful economic growth engine, Katz said.

He praised organized labor for working with Meyer Werft and later with Kvaerner to make changes that will make the shipyard more efficient, and for "working with management to solve problems." This must continue, he said.

Katz also said the region must spend more to train and retrain workers for high-tech jobs, as it is doing at the shipyard.

Katz said several factors favor Philadelphia's efforts to reemerge as a maritime powerhouse - its proximity to major population centers, its access to three major railroads and major highways, and the city's international airport.

The new high-speed ocean cargo service between Philadelphia and Europe, now being developed by FastShip Inc. of Philadelphia, "promises to be one of the city's truly exciting ventures," Katz said.