Page 32: of Marine News Magazine (February 2024)

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Regulatoy

Update

Changes to MARAD’s Title XI:

Good News for Offshore Wind?

By Eric Haun

The U.S. Department of Transportation’s Maritime Ad- U.S. shipowners to obtain new vessels from U.S. ship- ministration (MARAD) in December issued a ? nal rule yards cost effectively through long-term debt repayment updating its ? nancial requirements for the Federal Ship Fi- guarantees. It can also be utilized by U.S. shipyards to nancing Program, commonly referred to as Title XI. While help modernize their facilities for both vessel repair and the move applies to the U.S. maritime industry as a whole, new construction.

it is seen as especially helpful for players looking to serve Charlie Papavizas, partner and chair of the maritime prac- the U.S. offshore wind sector. tice at law ? rm Winston & Strawn, explained, “Title XI re-

Designed to promote the growth and modernization fers to the title with number in the Merchant Marine Act, of the U.S. merchant marine and U.S. shipyards, Title XI 1936 whereby the U.S. government, as amended in 1972, provides for a full faith and credit guarantee by the U.S. offered to guarantee the private ? nancing of vessels built government. The program essentially aims to encourage in the United States meeting certain conditions. In 2019, © Maxim Khalansky / Adobe Stock 32 | MN February 2024