WASHINGTON (AP) — The Navy has awarded Austal USA a $1.6 billion contract to build 10 high-speed military transport ships in Mobile, Ala. That word comes from U.S. Sen. Richard Shelby of Alabama.

The company was competing with two other shipbuilders including Bollinger Shipyards, which according to Miss. Gov. Haley Barbour is considering building similar ships in Natchez.

During his keynote speech at the Natchez-Adams Chamber of Commerce dinner in October, Barbour said he felt confident that Bollinger would locate a shipyard in Natchez if they were awarded the contract. In the past, Barbour said the contract could mean an additional 500 to 1,500 jobs.

The victory will be a boon to Austal’s operations on the Mobile River, which has about 1,000 employees.

The Sen. Shelby announced the award in a statement. The Navy had not yet confirmed it Thursday.

Austal Ltd. is an Australian-based ship maker specializing in high-speed ferries and transport vessels. It opened a U.S. facility on the Mobile River in 1999.