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 April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Norwegian Car Carriers to Buy Two from Hyundai Samho

Oslo-listed Norwegian Car Carriers (NOCC) has signed a contract with Hyundai Samho Heavy Industries for the construction of two 6500 ceu Pure Car Truck Carrier (OCTCs).

Boatbuilding in China

While much of the focus on coverage of the Chinese shipbuilding industry is on big shipbuilding, Maritime Reporter switches gears this month to explore activities in select boatbuilding sectors.

HMS Prince of Wales Bridge Sets Sail

The bridge section of the second Queen Elizabeth Class aircraft carrier set sail today from Glasgow on its first sea voyage to Rosyth.   Upper Block 07 is where

Finance

Norwegian Car Carriers to Buy Two from Hyundai Samho

Oslo-listed Norwegian Car Carriers (NOCC) has signed a contract with Hyundai Samho Heavy Industries for the construction of two 6500 ceu Pure Car Truck Carrier (OCTCs).

Long Beach, Los Angeles ports host forum to gather input

More than 100 cargo owners, trucking firm leaders, longshore labor, marine terminals and other goods movement industry representatives turned out Wednesday for

Venezuela Probes ex-minister accused of corruption in Ferry Deals

A former minister in President Nicolas Maduro's government denied in an interview published on Friday accusations of corruption during the purchase of three

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pipelines Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | 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: 0.2788 sec (4 req/sec)