By the Numbers: Small Shipyard Grants

Maritime Activity Reports, Inc.

April 13, 2020

© Michal Bednarek / Adobe Stock

© Michal Bednarek / Adobe Stock

Small shipyards in the U.S. are critical to the nation’s maritime operations and economic security. Typically family-owned and employing less than 1,200 workers, America’s small shipyards support more than 400,000 jobs, employ more than 100,000 Americans directly and contribute tens of billions in gross domestic product, according to the U.S. Department of Transportation’s Maritime Administration (MARAD).

In an effort to help support these vital assets, MARAD’s Small Shipyard Grant Program provides funds to help drive efficiency, competitive operations and quality ship construction, repair and reconfiguration across the industry.

The Consolidated Appropriations Act, 2020, appropriated $20 million to the Small Shipyard Grant Program. With 2% of the funds may be set aside for grant administration per 46 U.S.C. 54101, the total amount available for grant awards this year is $19.6 million.

Applications were due to the Maritime Administration by February 18, 2020, and grant awards will be announced in the coming months.

According to MARAD, the grants are available to qualified shipyard facilities to (1) make capital and related improvements that will be effective in fostering efficiency, competitive operations and quality ship construction, repair and reconfiguration, and (2) provide training for workers in shipbuilding, ship repair and associated industries. Grants are capped at 75% of the project’s estimated cost and are available to facilities with fewer than 1,200 production employees. They may not be used to construct buildings or other physical facilities or to acquire land.

Since its inception in 2008, the Small Shipyard Grant Program has awarded more than $223 million through 244 grants that have helped to fund upgrades and expansions that often lead to more competitive operations, quality ship construction and improved employee skill. In 2019, MARAD awarded $19.6 million in small shipyard grants, spread out across 28 U.S. shipyards.

As we await the 2020 grant awards announcement, a complete list of 2019 grant recipients is below:

All American Marine, located in Bellingham, Wash. was awarded $397,725 toward painting area improvements that will allow them to accommodate the building of larger and multiple vessels while also meeting environmental requirements.

Biblia, Inc., located in Savannah, Ga., received $1,319,414 in funding to support the construction of a 500-ton floating drydock which will, in turn, directly support DOT’s Safety Objective.

Detyens Shipyards, Inc., of Charleston, S.C., was awarded $781,315 to support the electrical upgrades for mobile equipment, a 130-ton rough terrain crane and additional forklifts. These additions will enhance the quality of ship repair and reconfiguration offered to the yard’s customers.

East Coast Repair & Fabrication, LLC, located in Norfolk, Va., received $860,000 in funding toward the purchase of a new Link-Belt HTT-86110 110-ton Telescopic Boom Hydraulic Truck Crane which will enable the yard to directly pursue wok on government-owned, government-operated ships.

Eastern Shipbuilding Group, Inc. (Nelson Street), located in Panama City, Fla., received $640,618 in funding. The grant award went toward several pieces of equipment that will increase overall shipyard productivity.

Heartland Fabrication, LLC, located in Brownsville, Penn., was awarded $1,008,000 in funding to allow the shipyard to acquire and install an automated coating application system and conveyor line to support the Heartland Fabrication Structural Steel Coatings Improvement Project. This project will foster efficiency, competitive operations and high-quality ship construction and repair.

Hughes Bros., Inc., located in Edison, N.J., received $363,957 in funding toward the partial funding of equipment in support of an abrasive blasting operation. This equipment will increase project efficiency, enhance production rates and enable cost-competitiveness with local shipyards.

J. Goodison Company, Inc., located in Kingstown, R.I., received $518,538 to support the upgrade of equipment used in accessing elevated workstations and mobile equipment. This will reduce the shipyard’s reliance on rental equipment and increase its efficiency.

JAG Alaska, Inc. Seward Shipyard, located in Seward, Alaska, was awarded $976,298 toward the improvement of the shipyard’s Water Wash-Down/Recovery System and upgrades for its Vessel Transport System. These upgrades will allow the facility to increase the utilization of its existing berthing areas and improve its overall efficiency.

LaShip, located in Houma, La., received a $402,900 grant to support the acquisition and integration of an advanced technology piece of equipment that will allow the organization to efficiently manufacture metal and metal alloy parts.

Marinette Marine Corporation, located in Marinette, Wisc., received an award of $1,100,000 to support the Marinette Marine Additional Cranes Project by allowing for the acquisition and installation of three 100-ton bridge cranes. The installation of these cranes will increase the facility’s construction capacity and productivity.

MBLH Marine LLC dba Vessel Repair, located in Port Arthur, Texas, received $1,360,531 in funding toward the acquisition and construction of a new dry dock. The new dry dock will allow the facility to promote more efficient and competitive shipyard services.

Mike’s Inc., located in South Roxana, Ill. received a $709,405 grant to assist in the acquisition of a 110-ton lattice boom crawler crane. The purchase of this crane will decrease the shipyard’s need to hire a third-party crane service, therefore increasing its production capability and efficiency.

Moose Boats, located in Vallejo, Calif., received $555,429 in funding toward the purchase of a Travelift Transporter and a computer numerical control (CNC) router table. This equipment will greatly improve the shipyard’s efficiency.

Moran Iron Works, Inc., located in Onaway, Mich. received $564,300 in funding to support the purchase of a PythonX CNC Fabricating System that will replace three outdated and inefficient machines. The acquisition of this fabricating system is expected to increase the facility’s efficiency, accuracy, quality and profitability.

Norseman Shipbuilding and Boatyard, LLC., located in Miami, Fla. received $255,131 in funding to enable the shipyard to improve its operational efficiency and address long-deferred repairs through the acquisition of three major pieces of equipment.

Northern Enterprises Boat Yard, Inc., located in Homer, Alaska, received $604,053 in grant funding to support the purchase of a new 150-metric ton Travelift, enabling the shipyard to increase its project efficiency, enhance production rates and become more cost-competitive.

Paducah Barge, LLC, of Paducah, Kent., was awarded $700,570 in funding to support the acquisition and construction of a new dry dock. This new dry dock will enable the yard to start hauling barges for vessel repairs, providing additional scheduling flexibility and reliability and increasing the entire facility’s efficiency.

Port Bolivar Marine Service, Inc., located in Port Bolivar, Texas, received $390,451 in funding toward the purchase of several pieces of equipment that will significantly improve the efficiency of ship construction and repair activities at their facility.

Port of Toledo, of Toledo, Ore., receive $261,285 in grants to be used to provide welding career training in a credited college program.

Rhoads Industries, Inc., located in Philadelphia, Penn., received $999,250 in awards. This funding will go the purchase of a new mobile crane which will significantly improve the efficiency of ship repair activities and the competitiveness of their facility.

Rockland Marine Corporation, located in Rockland, Maine, received $351,956 in funding to allow the yard to purchase new equipment that will further increase production and efficiency to enhance the new marine railway years ahead of schedule.

Shark Tech, LLC, of Bayou la Batre, Ala., receive $511,671 in funding toward the purchase of welding enhancements and material handling equipment. This equipment will contribute to the significant improvement of the efficiency of ship repair and new construction activities at the facility.

St. John’s Ship Building Inc., located in Palatka, Fla., received $800,000 in funding to the purchase of new metal working equipment, yard process improvements and material handling upgrades. These projects will significantly improve the efficiency of ship construction and repair activities at the shipyard.

Thoma-Sea Marine Constructors, LLC, located in Lockport, La., received $738,645 in funding to be used to purchase three overhead cranes which will serve as the primary lifting capacity at the facility, increasing project process efficiency and dropping construction costs.

TPG Chicago Dry Dock LLC, located in Chicago, Ill., received $1,200,000 funding toward the purchase of a dry dock and the support of a welder training program. These two additions will increase the efficiency of shipyard operations as well as improve the competitive shipyard services for the facility’s customers.

VT Halter Marine, located in Pascagoula, Miss., received $536,000 in funding to support the purchase of several pieces of equipment that will improve the efficiency of ship construction and repair activities at the facility.

Yank Marine Services, LLC, located in Dorchester, N.J., will receive $692,558 in funding to support the Yank Marine Services Facility Modernization Project, a long-term plan to revitalize the facility. The current phase will include the acquisition and installation of temporary shelters that will allow for greater control over atmospheric conditions in vessel work spaces.

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