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Title Xi News

23 Feb 2024

Edison Chouest Withdraws Title XI Application

ECO Edison is being built at LaShip in Houma, La. for delivery in 2024 (Photo: Orsted)

An affiliate of Edison Chouest Offshore has withdrawn its application for financing under the U.S. Maritime Administration's (MARAD) Title XI program.Title XI is a government loan program with the Federal Financing Bank as the lender. It is intended to promote the growth and modernization of the United States' merchant fleet and shipyards by offering repayment terms and interest rates that are generally better than those available from the commercial lending market.ECO Edison…

12 Feb 2024

MARAD’s Title XI Changes: Good News for Offshore Wind?

© Maxim Khalansky / Adobe Stock

The U.S. Department of Transportation's Maritime Administration (MARAD) in December issued a final rule updating its financial requirements for the Federal Ship Financing Program, commonly referred to as Title XI. While the move applies to the U.S. maritime industry as a whole, it is seen as especially helpful for players looking to serve the U.S. offshore wind sector.Designed to promote the growth and modernization of the U.S. merchant marine and U.S. shipyards, Title XI provides for a full faith and credit guarantee by the U.S. government. The program essentially aims to encourage U.S.

22 Dec 2023

Great Lakes' MARAD Title XI Financing Application Completed

(Image: Great Lakes Dredge & Dock Corporation)

Great Lakes Dredge & Dock Corporation announced its MARAD Title XI Financing application for its offshore wind rock installation vessel, the Acadia, has been updated to the "completed" category, indicating the loan process is moving towards the final phase.Lasse Petterson, Great Lakes president and CEO, said, “We have fostered a strong relationship with MARAD and are pleased to have reached this significant milestone in the application process. We continue to make great strides in our strategy to be a leading contributor in the evolving U.S.

20 Dec 2023

What Do MARAD Title XI Changes Mean for Offshore Wind?

The U.S. Maritime Administration (MARAD) has recently announced an amendment to the Federal Ship Financing Program, commonly referred to as Title XI. The amendments have aligned the program’s financial requirements and tests with common current federal credit and maritime lending best practices. In particular, the amendments aim to move away from inflexible static metrics and Title XI’s limited amortization requirements. The amendments respond to concerns that previous terms acted as a barrier to some companies seeking to apply for Title XI support.

22 Dec 2023

MARAD Finalizes Rules for Title XI Loan Applicants and Borrowers

© Maxim Khalansky / Adobe Stock

The U.S. Department of Transportation's Maritime Administration (MARAD) issued a final rule updating its financial requirements for the Federal Ship Financing Program, commonly referred to as Title XI. The final rule provides the application requirements for MARAD loan guarantees for construction or reconstruction of a U.S.-flagged vessel or shipyard modernization. Designed to promote the growth and modernization of the U.S. merchant marine and U.S. shipyards, Title XI provides for a full faith and credit guarantee by the U.S. government.

27 Nov 2023

The $1 Billion Offshore Wind Prize for US Shipyards

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The U.S. offshore wind market presents a $1 billion long-term opportunity to builders of crew transfer vessels (CTV) and service operation vessels (SOV) that will support both wind farm construction and long-term operations and maintenance. Unlike many of the construction vessels to be deployed on U.S. wind projects, CTVs and SOVs must be Jones Act compliant, meaning they will be built, owned and operated by U.S. companies and personnel.However, although seen as somewhat commoditized vessels…

09 Oct 2023

The Headwinds of US Offshore Wind Development

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On March 29, 2021, President Biden announced his ambitious plan to deploy 30 gigawatts (GW) of offshore wind power – enough energy to power 10 million U.S. homes – by 2030. The plan would leverage authorities under the Department of Interior, Energy, and Commerce to guide “more than $12 billion per year in capital investment in projects on both U.S. coasts, create tens of thousands of good-paying, union jobs, with more than 44,000 workers employed in offshore wind by 2030 and nearly 33,000 additional jobs in communities supported by offshore wind activity.” The U.S.

11 May 2023

Recent News a ‘Mixed Bag’ for US Offshore Wind

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The month of May brings a mixed bag of news for offshore wind in the United States, as outlined in the latest U.S. Offshore Wind Report from business intelligence firm Intelatus Global Partners.In the "positive" category, Intelatus said federal permitting of projects continues on schedule, and states continue to plan to procure and accommodate ever larger amounts of wind produced offshore into their onshore grids. The firm also noted that the Internal Revenue Service has clarified certain Inflation Reduction Act incentives.

01 May 2023

Shipbuilding Contributes to Higher Costs in US Offshore Wind

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Higher shipbuilding costs are contributing to greater overall project costs in the U.S. offshore wind industry, according to maritime and offshore consultancy Intelatus Global Partners.The United States will rely on a large fleet of foreign and domestic vessels as it builds up toward the Biden Administration's target of 30 gigawatts (GW) of offshore wind capacity by 2030 and 110 GW by 2050. This fleet will consist of both existing and newbuild tonnage, including wind turbine installation vessels (WTIV)…

13 Jan 2023

Vessel Retrofits Could Accelerate U.S. Offshore Wind Development

Photo courtesy Bernhard Schulte Offshore /Matthias Giebichenstein

The U.S. Administration’s strategy to fast-track offshore wind development is exciting for overseas shipbuilders and service providers in the field. Joint ventures meeting Jones Act requirements will support accelerating development. Some question, however, whether ambitious 2030 targets can actually be achieved.Ulstein group is a front runner. The Norwegian-based company has already provided the design for a rock installation vessel now under construction for a joint venture between Houston-based Great Lakes Dredge & Dock (GLDD) and Netherlands based Van Oord.

16 Sep 2022

Canal Barge Gets $51 Million Title XI Loan

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New Orleans-based Canal Barge Company, Inc. has received a Federal Ship Financing Program (commonly known as “Title XI”) loan guarantee amount of $51,458,000 over 25 years for three new towboats and 17 new barges, the U.S. Department of Transportation’s Maritime Administration (MARAD) announced.The loan guarantee approved for Canal Barge Company, Inc. supports the modernization of the company’s barges and towboats, which service the inland waterways of the Ohio, Lower Mississippi and Illinois Rivers.“The Title XI program supports the construction of vessels in U.S.

28 Jun 2022

Offshore Wind Vessels Get 'Vessel of National Interest' Designation by U.S. MARAD

Credit: twixter/AdobeStock

The U.S. Maritime Administration (MARAD) last Friday designated offshore wind vessels as vessels of national interest making them eligible for financial support through the Title XI Federal Ship Financing Program (Title XI). The Federal Ship Financing Program - commonly referred to as "Title XI" based on the part of the Merchant Marine Act of 1936 that established the 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.

07 Apr 2021

Favorable Offshore Winds Blowing from the Biden Administration

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As part of his Executive Order on Tackling the Climate Crisis at Home and Abroad (EO 14008)—issued on the first day he took office—President Biden made significant commitments to renewable energy. These commitments include collaborating with multiple federal agencies in the United States and promoting critical industry support for the acquisition of electric vehicles for the federal fleet, as well as rejoining the Paris Climate Agreement, the landmark international agreement signed in 2015 to limit global warming.

08 Mar 2021

Washington Watch: Winds of Change in DC

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For operators venturing into the offshore wind space, 2021 started off with a gust of changes and reports. From Jones Act clarifications and new enforcement authorities, to millions in port infrastructure funding, the new Congress and presidential administration will have plenty of tools available to shape the future of the industry’s development.NDAA brings Jones Act changesOne of the most persistent questions that has hung over the development of the U.S. offshore wind industry has been whether the Jones Act will apply during both the construction and operational phases.

02 Dec 2020

Streamlining and Simplifying US Government Guaranteed Vessel Financing

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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.

30 Jul 2020

Congress Responds to COVID19 and Other Challenges for the Maritime Industry

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In response to the worldwide COVID-19 pandemic, the Congressional Research Service released a report that stated global economic growth has declined by 3% to 6% in 2020 with a partial recovery predicted for 2021. Also, the GDP of the U.S. has fallen by 5% in the first quarter 2020. According to the International Maritime Organization (IMO), the maritime industry, and seafarers themselves, have not been able to escape the significant effects of this crisis.All sectors of the maritime industry have been adversely affected by the global pandemic.

27 Dec 2019

INSIGHTS: Niels Aalund

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…

15 Apr 2019

WASHINGTON WATCH: A Tale of Two Fleets

Jeff Vogel, a Member in Cozen O’Connor’s Transportation & Trade Group.

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.

06 Dec 2017

Interview: Rear Adm. Mark Buzby, US Maritime Administrator

Rear Admiral Mark H. Buzby, USN (Ret), Maritime Administrator, U.S. Maritime Administration

Insights: Rear Admiral Mark H. Buzby, USN (Ret), Maritime Administrator, U.S. Rear Adm. Mark H. Buzby was appointed by President Donald Trump and sworn in as Maritime Administrator on August 8, 2017. Prior to his appointment, Buzby served as president of the National Defense Transportation Association, a position he has held since retiring from the U.S. Navy in 2013 with over 34 years of service. A 1979 graduate of the U.S. Merchant Marine Academy, Buzby earned his Bachelor of Science in Nautical Science and U.S. Coast Guard Third Mate License. He was commissioned in the U.S.

26 Oct 2017

Marine Finance for Brown Water Operators

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A primer for navigating the ‘ups and downs’ of marine money for domestic stakeholders. Vessel financiers are resourceful and adaptable to changing markets. On the domestic side, financiers of Jones Act and “brown water” assets have continued to serve their customers through shifting shoals in both broader capital markets and in the marine markets – both known for their ups and downs. Marine finance can take many forms. In the broadest sense, funding can be done through loans, where the vessel is owned by the borrower…

10 Apr 2017

The 2007 Act: Highways to Waterways

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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.

14 Sep 2016

Matson Closes $200 Mln Debt Private Placement

Matson, Inc. announced the issuance of $200 million in privately placed 15-year final maturity senior unsecured notes pursuant to a previously announced commitment letter on July 18, 2016. The notes will have a weighted average life of approximately 8.5 years and will bear interest at a rate of 3.14 percent, payable semiannually. Matson said it plans to proceeds from the notes to pay down the its revolving credit facility and for general corporate purposes. Joel Wine, Matson's Senior Vice President and Chief Financial Officer commented, “We are pleased to complete this attractive fixed rate financing that will pay down our revolving credit facility and strengthen our balance sheet as we progress with our four vessel Hawaii fleet renewal program.

25 Aug 2016

Matson Orders Two ConRo Ships from NASSCO

Artist rendering of Matson Kanaloa Class vessel. Courtesy General Dynamics NASSCO (Image: Matson, Inc.)

Matson Navigation Company, Inc., a subsidiary of container shipper Matson, Inc., has signed a contract with U.S. shipbuilder General Dynamics NASSCO to build two new combination container and roll-on/roll-off (Con-Ro) vessels for its Hawaii fleet at a contract price of $511 million for both vessels with deliveries scheduled for the end of 2019 and mid-year 2020. Matson is calling these vessels the Kanaloa Class in honor of the ocean deity revered in the native Hawaiian culture and will name each of the new vessels after predecessor ships from its 134-year history.