Mixed fortunes prevail at US shipyards

Naval and Jones Act vessels continue to be the mainstay of US yards

The National Shipbuilding and Shipyard Conversion Act of 1993 provided the much-needed stimulus for the USA`s re-emergence onto the commercial newbuilding scene. The Act saw the expansion of the Title XI Federal Ship Financing Programme beyond US owners to include finance guarantees for foreign owners (such as Hvide) and for shipyard modernisation projects.

According to the Maritime Administration (MARAD), a total of $2.89 billion has been invested to date in the industry through loan guarantees. In 1996 and 1997 more than $1.4 billion was approved in Title XI guarantees. During 1997 and the first half of last year, MARAD approved 17 applications, two of which were for export, for Title XI financing for vessel construction. The estimated cost of the approved projects was $803 million with Title XI guarantees aggregating $572 million of the total. The Administration also gave approval for two shipyard modernisation projects at an estimated total cost of $91 million; Title XI guarantees will account for $80 million of this.

As of April last year, MARAD had applications for 19 projects pending at an estimated cost of $952 million, with loan guarantees aggregating $803 million of the total amount. The pending applications included double-hulled products tankers, passenger ferries, and various offshore and supply vessels. While most of the projects are still pending, five have been approved and three have been terminated. Included among the terminations was an application for the construction of an 82m aluminium car ferry for Aegean Fast Ferries Maritime Company at Halter Marine at a cost of $55 million.