The US Dept. of Transportation has approved a $324.6 million
Title XI loan guarantee to TOTE Shipholdings to finance the construction of two
liquefied natural gas-fueled containerships.
As dual-fuel vessels, primarily operating with LNG, but with
light diesel as needed, the vessels are expected to be among the most
environmentally friendly containerships in the world, with engines that reduce
the discharge of particulates to well below the levels mandated by the US
Environmental Protection Agency.
The vessels are to be constructed at National Steel and
Shipbuilding Co. (NASSCO) in San Diego. Construction of the vessels is expected
to generate 600 jobs at NASSCO and support companies throughout the nation that
supply the materials and equipment. Once in service, the two new vessels are
expected to provide for 60 new US merchant mariner jobs.
“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,”
Transportation Secretary Anthony Foxx said in a prepared statement announcing
the loan guarantee. “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 are expected to be delivered in 2015 and 2016.
TOTE will operate them in trade between the Port of Jacksonville and Puerto
Rico, transporting containers, automobiles and other cargoes.
The Title XI loan guarantee program promotes the growth and
modernization of US shipyards and the US merchant marine by ensuring the US
vessels are manufactured in US shipyards by US workers. It guarantees the
repayment of loans, obtained in the private sector by shipowners, for the
construction, reconstruction or reconditioning of vessels in US shipyards.
The US Maritime Administration currently guarantees about
$1.7 billion in US shipyard projects.
