Canal Barge receives $51.4 million Title XI loan guarantee

Written by Nick Blenkey
Title XI praised by Phillips

MARAD Administrator Ann Phillips: “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.”

The U.S. Department of Transportation’s Maritime Administration (MARAD) reports that New Orleans headquartered Canal Barge Company Inc. has received a Federal Ship Financing Program (as “Title XI”) loan guarantee amount of $51,458,000 over 25 years for three new towboats and 17 new barges.

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.

According to the MARAD website, the loan guarantee supports a project with a total cost of $64.6 million. The towboats will built at Steiner Construction, Bayou La Batre, Ala., and Conrad Industries, Inc., Morgan City, La., while the barges will be built by Southwest Shipyard L.P., Channelview, Texas.

“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.”

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.

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