Congress Promotes Commercial Shipbuilding

Friday, March 16, 2007
The House Armed Services Seapower and Expeditionary Forces Subcommittee received testimony on the Federal Ship Loan Guarantee Program, also known as Title XI, which facilitates financing of commercial ship construction in U.S. shipyards. Cynthia L. Brown, President of the American Shipbuilding Association, testified on the importance of funding and improving the program to increase commercial ship construction in the U.S.

Members of the subcommittee in attendance were Chairman Gene Taylor (D-MS), Ranking Member Roscoe Bartlett (R-MD), Representatives Madeleine Bordallo (D-Guam), Rick Larsen (D-WA), and Joe Sestak (D-PA). Chairman Gene Taylor stressed the importance of Title XI, stating his concern that the United States is importing goods on foreign ships and that building commercial ships in U.S. shipyards would lower the cost of military ships. Taylor indicated that the subcommittee plans to fund Title XI and that he believes $60M is an achievable goal for fiscal year 2008. Rep. Bartlett and Rep. Bordallo expressed their support for funding the Title XI program, and Rep. Bordallo emphasized the importance of Jones Act ships financed by Title XI to the economy of Guam.

Ms. Brown highlighted that commercial ship construction “helps American shipyards retain and grow their highly skilled engineering and production workforce vital to building Navy and Coast Guard ships, reduces the cost of U.S. Navy and Coast Guard ships, facilitates the introduction of the best commercial building practices into Navy and Coast Guard programs, expands the fleet of U.S.-built commercial oceangoing ships available to the Department of Defense (DoD) in time of war or national emergency, and provides for the highest construction standards in the world.” Mr. Martin Gottlieb of the Argent Group, Ltd., a vessel finance company, testified that “while commercial financing is readily available for foreign-built vessels, it is more of a challenge for vessels built domestically.” He stated “foreign-built vessels are considered commodity assets financed largely on their asset value of being re-deployed or sold upon default, however, U.S.-built vessels are purpose-built and are rarely re-deployed or sold. Typically, a commercial lender will consider only the value of a vessel in the foreign market when lending.” Congress Promotes Commercial Shipbuilding The House Armed Services Seapower and Expeditionary Forces Subcommittee received testimony on the Federal Ship Loan Guarantee Program, also known as Title XI, which facilitates financing of commercial ship construction in U.S. shipyards. Cynthia L. Brown, President of the American Shipbuilding Association, testified on the importance of funding and improving the program to increase commercial ship construction in the U.S. Members of the subcommittee in attendance were Chairman Gene Taylor (D-MS), Ranking Member Roscoe Bartlett (R-MD), Representatives Madeleine Bordallo (D-Guam), Rick Larsen (D-WA), and Joe Sestak (D-PA). Chairman Gene Taylor stressed the importance of Title XI, stating his concern that the United States is importing goods on foreign ships and that building commercial ships in U.S. shipyards would lower the cost of military ships. Taylor indicated that the subcommittee plans to fund Title XI and that he believes $60M is an achievable goal for fiscal year 2008. Rep. Bartlett and Rep. Bordallo expressed their support for funding the Title XI program, and Rep. Bordallo emphasized the importance of Jones Act ships financed by Title XI to the economy of Guam. Ms. Brown highlighted that commercial ship construction “helps American shipyards retain and grow their highly skilled engineering and production workforce vital to building Navy and Coast Guard ships, reduces the cost of U.S. Navy and Coast Guard ships, facilitates the introduction of the best commercial building practices into Navy and Coast Guard programs, expands the fleet of U.S.-built commercial oceangoing ships available to the Department of Defense (DoD) in time of war or national emergency, and provides for the highest construction standards in the world.” Mr. Martin Gottlieb of the Argent Group, Ltd., a vessel finance company, testified that “while commercial financing is readily available for foreign-built vessels, it is more of a challenge for vessels built domestically.” He stated “foreign-built vessels are considered commodity assets financed largely on their asset value of being re-deployed or sold upon default, however, U.S.-built vessels are purpose-built and are rarely re-deployed or sold. Typically, a commercial lender will consider only the value of a vessel in the foreign market when lending.”

Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Regulations Threaten Superyacht Innovation

To increase innovation within the superyacht industry, designers need to work with flag states, classification societies and naval architects to ensure regulations are workable, as said by experts.

News Flash! Greek Shipowners Prefer Bulkers

The buying interest from Greek ship owners is focused on bulkers to an increasing extent, BIMCO said. Data from VesselsValue.com reveal that Greek owners were at

Private Equity Drives New Ship Buys

Ship Registries are an excellent bellwether of industry health and trends, and when Maritime Reporter & Engineering News sought answers to some topical questions,

Finance

Petroecuador Tenders to Buy 3.84m bbls of Naphtha

State-run oil company Petroecuador has launched tenders to buy a total volume of 3.84 million barrels of naphtha for delivery in the coming month at Esmeraldas,

Company Fined for Oil Spill Near Anacortes

Ecology issues $112,500 penalty for sunken vessel.   American Gold Seafoods faces a $112,500 penalty for an oil spill caused by the accidental sinking of its vessel,

London Shipping Professionals Weigh in for SPNL Report

The Shipping Professional Network London (SPNL) has  released their full Future London report, an initiative that gathered the views and opinions of London’s young

 
 
Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Pod Propulsion Ship Electronics Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1464 sec (7 req/sec)