Canal Barge Gets $51 Million Title XI Loan
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. shipyards, strengthening this essential industrial base and supporting good-paying, high-skilled jobs,” said MARAD Administrator Ann Phillips. “The Title XI program also enables American vessel owners to modernize their fleets and expand waterborne transportation options.”
Through the Title XI program, MARAD provides full faith and credit guarantees to promote the growth and modernization of the U.S. merchant marine and U.S. shipyards.
The Title XI program enables shipyards and shipowners to access loans that have longer terms, higher loan-to-value amounts, and lower interest rates compared to loans provided by commercial lenders.
The Department of Transportation recently announced that vessels supporting the offshore wind industry have been designated as Vessels of National Interest under the Title XI program. This designation enables MARAD to prioritize these vessels in the application review process.