Marine Log

July 21, 2006

Senate panel approves Title XI funding

The Senate Appropriations Committee yesterday approved $30 million for Title XI commercial ship construction loan guarantees for the Maritime Administration (MARAD).

Title XI Loan Guarantees allow small and medium sized ship operating companies to secure affordable financing for the construction of cargo ships in American Shipyards, notes the American Shipbuilding Association.

Title XI allows many U.S. companies to obtain financing terms and conditions that are comparable to finance rates available to large corporations, says ASA.

The Bush Administration has consistently tried to eliminate funding for the program in its budget requests.

The funding was requested by Senators Trent Lott (R-MS); Mary Landrieu (D-LA); Olympia Snowe (R-ME); John Kerry (D-MA); David Vitter (R-LA); Jack Reed (D-RI); Barbara Mikulski (D-MD); Ron Wyden (D-OR); Arlen Specter (R-PA); Susan Collins (R-ME); Ted Stevens (R-AK); Barbara Boxer (D-CA); George Allen (R-VA); Rick Santorum (R-PA); Lincoln Chafee (R-RI); Daniel Akaka (D-HI); Paul Sarbanes (D-MD); Dick Durbin (D-IL); Maria Cantwell (D-WA), and Daniel Inouye (D-HI).

The $30 million was included by the Chairman, Kit Bond (R-MO), and Ranking Member, Patty Murray (D-WA), in the subcommittee mark of the fiscal year 2007 Transportation Appropriations Bill, with strong support from the Chairman of the full Committee on Appropriations, Thad Cochran (R-MS).