U.S. Transportation Secretary Anthony Foxx [pictured] has announced the approval of a $324.6 million
Title XI loan guarantee to
TOTE Shipholdings, Inc., to finance the construction of two container ships that will utilize liquefied natural gas (LNG) as propulsion fuel.
The Title XI Loan Guarantee program promotes the growth and modernization of U.S. shipyards and the U.S. merchant marine by ensuring the U.S. vessels are manufactured in U.S shipyards by U.S. workers.
"This is proof-positive that when we work to build America’s green energy economy, we can directly support the creation of meaningful jobs, supporting the President’s goal to strengthen America’s middle class," said Foxx. "This one action significantly decreases emissions, supports jobs from one coast to the other, bolsters the Nation’s manufacturing base, and continues growing our economy."
The vessels will be constructed at
National Steel and Shipbuilding Company (NASSCO) in San Diego, California.
As dual-fuel vessels, primarily operating with LNG, but with light diesel as needed, NASSCO claims the vessels will be "the most environmentally friendly containerships in the world", with engines that reduce the discharge of particulates to well below the levels mandated by the U.S. Environmental Protection Agency (EPA).
"The shipbuilding industry contributes more than $36 billion to our national economy," commented U.S. Maritime Administration (MARAD) Administrator
Paul 'Chip' Jaenichen. "The Obama Administration remains committed to our shipping industry, which does more than just create jobs and new opportunities, but also strengthens local economies."
Expected to be delivered in 2015 and 2016, TOTE is due to operate the vessels between
Jacksonville and
Puerto Rico, transporting containers, automobiles and other cargoes.
The Title XI program guarantees the repayment of loans, obtained in the private sector by ship owners, for the construction reconstruction, or reconditioning of vessels in U.S. shipyards. MARAD currently guarantees approximately $1.7 billion in U.S. shipyard projects.
Image: U.S. Transportation Secretary Anthony Foxx
