Capital Construction Fund News

As dusk descends upon our nation's ports, casting shadows over the waterfront, another shadow looms in the digital landscape — the threat of cyber warfare. In an era where connectivity reigns supreme, our maritime infrastructure stands at a critical juncture, balancing vulnerability and resilience. The recent White House announcement of a Presidential Executive Order, and a hefty $20 billion in Inflation Reduction Act funding proposal to fortify our ports, underscores the gravity of the situation.It is a fact that at this time China has manufactured 80% of our nation’s ship-to-shore cranes…

John F. Kennedy’s famous locution, “Ask not what your country can do for you, but you can do for your country” remains the rallying call for civic action and public leadership. The message remains foundational to the success of the United States, particularly as we head into an election year that once again appears to be filled with divisiveness and vitriol. That said, before we flip the calendar, it is important to set JFK’s message aside for a moment and reflect upon what our political leadership in Washington…

On May 5, 2023, the White House announced that the Environmental Protection Agency (EPA) was “taking the next step to invest $3 billion in its Clean Ports Program to fund zero-emission port equipment and technology and to help ports develop climate action plans to reduce air pollutants, improve air quality and public health in neighboring communities, and advance environmental justice.” That “next step” was the issuance of a Request for Information to inform EPA of the availability…

Recent changes have opened up the Capital Construction Fund program to owners and operators of vessels on the U.S. inland waterways.Among the programs offered by the U.S. Department of Transportation through the Maritime Administration (MARAD) to promote the growth and modernization of the U.S. maritime industry, the Capital Construction Fund (CCF) program is one that has remained largely unavailable to the owners and operators of vessels on the inland waterways—until now.Created by the Merchant Marine Act of 1936…

U.S.-based ocean carrier Matson announced it has placed a $1 billion order with Philly Shipyard for the construction of three new 3,600 TEU Aloha Class containerships.The first vessel is expected to be delivered in the fourth quarter of 2026 with subsequent deliveries in 2027.Matson, which aims to achieve a 40% reduction in Scope 1 fleet emissions by 2030 and net-zero Scope 1 by 2050, said the three newbuilds will be equipped with dual fuel engines that are designed to operate on either conventional marine fuels or liquefied natural gas (LNG).

The Maritime Administration (MARAD) has taken several steps to streamline and simplify the Federal Ship Financing Program under Chapter 537 of Title 46 of the U.S. Code (commonly referred to as Title XI). The Title XI program provides for a full faith and credit guarantee by the United States government to promote the growth and modernization of the U.S. merchant marine and U.S. shipyards. The Title XI Program supports U.S. shipowners obtaining new vessels from, or reconstructing and reconditioning vessels in, U.S. shipyards. It also aids U.S.

Niels Aalund was elected President of the International Propeller Club at their 93rd International Convention and Conference. The prominent maritime industry stakeholder will serve a two-year term, commencing from October 17th. Aalund, a well-known maritime subject matter expert and executive, also serves as an Officer and as Senior Vice President of the West Gulf Maritime Association (WGMA). WGMA communicates and coordinates with various governmental entities throughout the West Gulf…

Mixed Government Support for U.S. Shipbuilding.It has been a busy start to the 116th Congress for the U.S. shipbuilding industry, with three congressional hearings in early March focused on the industry’s role as a critical component of the U.S. national security industrial base. In addition, the Consolidated Appropriations Act, 2019, which was signed into law on February 15, contained mixed news for shipbuilding programs. Through the congressional hearings and enacted legislation, two opposing themes have emerged.

How to make the Capital Construction Fund work for all vessel owners and operators.The Red and White Fleet is a passenger vessel operator on San Francisco bay with roots back to 1892. We make no secret of the fact that we want to build new vessels with zero environmental signatures, all in an effort to increase employment for shipyard workers, provide new jobs for US mariners, and provide a training ground to support the growth of the U.S. flag deep sea ships. That mission is, today, unnecessarily difficult. The reasons why are easy to see.Not too long ago, H.

The shipbuilding and ship repairing industry has always been a core strength of our nation. It has enabled the United States to protect and project its prosperity, power and influence internationally. A book in my office signed by shipbuilder William Webb illustrates the point. Mr. Webb inherited his father’s shipyard in 1840 and built over 130 of the fastest clipper sailing vessels; he later built the largest and most celebrated steamships of his era. Those were glory years for the U.S. maritime industry, an era when the shipping industry was synonymous with American sovereignty.

The Energy Independence and Security Act of 2007 (the 2007 Act) authorized a Short Sea Transportation (SST) Program. As passed by the House, the legislation would have authorized $2 billion for the Maritime Administration (MARAD) Title XI Program and have extended the Capital Construction Fund Program (CCF or Program) to shipyards and operators building and operating vessels in SST services nationwide. Mr. Oberstar and his Congressional co-sponsors were confident that with their proposals in place, the much-discussed use of U.S.

The use of Liquefied Natural Gas (LNG) as a transportation fuel for ships, barges and ferries has surged in recent months. This surge is due, in large part, to the boon in the production of natural gas in the U.S.; new low sulfur rules for the North American Emission Control Area (ECA), which go into effect on January 1, 2015; and new technologies for the construction of engines capable of running on LNG. Regulatory regimes both in the U.S. and worldwide are struggling to keep pace with the tremendous growth of LNG as a fuel.

The Maritime Administration (MarAd) issued a final rule implementing provisions of the Energy Independence and Security Act of 2007 and amending the definition of Agreement Vessel under the Capital Construction Fund.  Among other things, amendment incorporates into the term Agreement Vessel those US vessels engaged in the Short Sea Transportation Trade, as defined by the Act.  The changes come into effect immediately. Source: HK Law

By H. Fulbright & Jaworski L.L.P. When the Congress returns to Washington in September, the attention of the Members and of industry representatives will be focused on renewing authorizations for two important maritime programs, the MARAD Title XI Program, and the MARAD/DOD Military Security Program. However, there is a third MARAD program that is at least equally deserving of this September's attention, it is MarAd's Capital Construction Fund ("CCF") Program. 1. CCF Tax Deferral Program: History, Scope & Terms. The CCF Program traces its history to the Revenue Act of 1920. Title VI of the Merchant Marine Act, 1936 ("1936 Act") authorized the creation of "regular" and "special" reserve funds into which U.S. citizen liner operators, that were engaged in providing U.S.

The U.S. Maritime Administration updated its information related to the National Defense Tank Vessel Construction Assistance program. The new information relates to U.S. content requirements, the Capital Construction Fund, and technical requirements. Source: HK Law

The year 2000 has enjoyed special significance as a transition year bridging two centuries. Similarly it has significance with U.S. lawmakers for the Second Session of the 106th Congress. As the last year of the currently elected Congress, this year anticipates action on a series of pending legislative measures and yet to be introduced proposals affecting the maritime industry. Specifically tax-related legislation and maritime policy-related legislation could be addressed. There are several tax-related provisions that could be considered. One of the main bills emphasizing maritime tax issues has been introduced in the House by Rep. Jim McCrery (R-LA) as H.R. 3225 and in the Senate by Sen. John Breaux (D-La.) as S. 1858. These bills include such measures as:A.

The Maritime Administration (MARAD) is seeking comments on what standards it should apply when making determinations of foreign reconstruction of US-built vessels that participate in the Capital Construction Fund program and foreign rebuilding of US-built vessels that participate in the cargo preference program. Comments should be submitted by January 14, 2008. [Source: HK Law]

Overseas Shipholding Group (OSG) and Maritrans Inc. announced that OSG has completed the acquisition of Maritrans Inc., a U.S. Flag crude oil and petroleum product shipping company that owns and operates one of the largest fleets of double hull Jones Act vessels serving the East and U.S. Gulf coastwise trades. The acquisition was made pursuant to the definitive merger agreement between the companies announced on September 25, 2006. Based on 12 million shares outstanding and the assumption of net debt outstanding as of September 30, 2006, the transaction is valued at $471 million. OSG financed the acquisition with borrowings under its revolving credit agreement and intends to repay up to $300 million of this amount from qualified withdrawals under its Capital Construction Fund (CCF).

The American Shipbuilding Association (ASA) represents the six largest shipbuilding companies in the United States: Avondale Industries, LA; Bath Iron Works, ME; Electric Boat, CT and RI; Ingalls Shipbuilding, MS; National Steel and Shipbuilding Company, CA; and Newport News Shipbuilding, VA and CA. These shipbuilders are the largest private manufacturing firms in five states and represent hundreds of thousands of supplier manufacturing jobs in 46 states. On behalf of the American shipbuilding industry, it is my pleasure to share with the readers of Maritime Reporter & Engineering News the agenda and focus of the American Shipbuilding Association (ASA) as we enter the next century.

Meeting national transportation needs during the current decade should involve a surfeit of new contracts for our domestic shipbuilders. The Oil Pollution Act of 1990 (OPA 90) mandates double hulls for all vessels engaged in U.S. petroleum carriage. In our non-contiguous trades, renewal programs are needed for the replacement aging container and RoRo fleets. Moving freight containers and trailers on RoRo barges and vessels, and moving people on passenger and passenger-vehicle high speed ferries, provide the obvious solutions to traffic congestion in the population corridors served by at least two of our Interstate highways. Some of these vessel needs are now immediate because of private sector decisions to postpone projects.

As the U.S. Department of Transportation works to develop transportation policies to meet 21st Century needs, perhaps the most vexing problems faced are those associated with traffic congestion on the Interstate highways which parallel our Atlantic, Pacific and Gulf coastlines. Interstate 95, I-5 and I-10 carry automobile and truck traffic far beyond their design capacities. In the major metropolitan areas, which these highways intersect, the combination of interstate and local traffic increasingly slows vehicle movements to a crawl. More traffic is on the way. Additional highway lanes and intersections will not solve these problems. Properly fashioned waterborne trailer and container services and passenger ferry operations can and should.

Matson Navigation Company, Inc. announced that its newest containership, MV Maunalei, has been delivered to the company by Aker Philadelphia Shipyard. The delivery of the Maunalei represents the completion of a historic four ship modernization and replacement strategy, following the delivery of the Manukai in 2003, the Maunawili in 2004, and the Manulani in 2005. "Having added only one new ship to the Matson fleet between 1983 and 2002, the four new vessels with a capital cost of over $500 million are essential to the current and future success of Matson," said W. Allen Doane, the Chairman of Matson and the Chairman and CEO of its parent company, Alexander & Baldwin. "The average age of Matson's ships was 25 years before the first ship was delivered in 2003.

Overseas Shipholding Group completed its purchase of Maritrans. Each outstanding share of Maritrans' common stock was converted into the right to receive $37.50 a share in cash. Based on 12.0 million shares outstanding and the assumption of net debt outstanding as of Sept. 30, the transaction is valued at $471 million, the company said. The company financed the acquisition with borrowings under its revolving credit agreement and intends to repay up to $300 million of this amount from qualified withdrawals under its capital construction fund. Source: The Street