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MSP, Title XI loan guarantee program get a boost If you asked most amerIcans to associate one word with Congress, it might be “dysfunctional.” Others might dig a little deeper into their vocabulary for a choice word or two. If they need inspiration, just remind people of last year’s government shutdown. But a New Year does bring new possibilities, as demonstrated by the overwhelming bipartisan support for the omnibus appropriations bill that will fund the U.S. government for the balance of Fiscal Year 2014, which ends September 3. The massive $1.012 trillion budget deal rolls back some of the cuts that were imposed under the draconian sequestration cuts. The maritime industry made out relatively well. The bill contains full funding for the Maritime Security Program (MSP) at $186 million. The program maintains and preserves the U.S.-flag merchant fleet to serve in national security needs of the U.S. The MSP had been subject to potential sequester and other budget cuts. The $186 million will remain available until expended.
Another $4.8 million was made available for the disposal of obsolete vessels in the National Defense Reserve Fleet.
The bill also makes available $148 million for operations and training activities at the six state-run maritime academies. Of that appropriation, $11.3 million will be made available for the maintenance and repair of the maritime academies’ training ships. Sixteen million dollars was also made available to the U.S. Merchant Marine Academy (USMMA) for facilities maintenance, repair, equipment and capital improvements. Under the bill, the Maritime Administrator must submit a report to the House and Senate Committees on Appropriations within 90 days of enactment of the legislation detailing the current and future impacts of reductions in governmentimpelled cargo on the U.S. Merchant Marine as a result of the cargo preference requirements included in the Bipartisan Budget Act of 2013, the Moving Ahead for Progress in the 21st Century Act, the historical reductions in the Food for Peace program, and the winding down of the wars in Afghanistan and Iraq.
Lift for Title XI program Perhaps the biggest surprise of all was the $38.5 million in funding for the Mar itime Administration’s Title XI loan guarantee program. There are currently five applications pending for Title XI Ship Financing Guarantees. One for $155.9 million from Pasha Hawaii Shipping Co.’s container/RO-RO vessel being built at VT Halter Marine, Inc., Gulfport, MS; one for $369.7 million from Legacy Leader, LLC (Edison Chouest) for 10 Platform Supply Vessels; one for $320 million from TOTE Shipholdings, Inc., for its two containerships being built by General Dynamics NASSCO; one from Crowley Tankers, LLC, for the two product tankers being built by Aker Philadelphia Shipyard; and one for $12 million for three ocean deck barges being built by Conrad Shipyard.
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February 2014 MARINE LOG 15