Joint Venture Receives Title XI For $109-Million Chemical Carrier

The Maritime Administration has approved in principle an application for a Title XI guarantee to aid in financing the construction of the Chemical Pioneer, a 35,000- deadweight-ton chemical carrier being built by Newport News Shipbuilding and Drydock Co., Newport News, Va.

The approved guarantee will not exceed $82,264,000 or 75 percent of the vessel's estimated actual cost of $109,686,024.

Union Carbide Corp. (UCC) of Danbury, Conn., and Marine Transport Lines, Inc. (MTL) of New York, N.Y., filed the application on behalf of Union Marine Transport Co., a joint venture partnership to be formed by UCC and MTL subsidiaries.

Scheduled to be delivered in September, the Chemical Pioneer will be the first chemical carrier built in the United States since 1970. The vessel was designed to meet the requirements of various UCC business departments for parcel liftings of varied nature and size. The vessel's cargo tanks consist of 48 fully supported sys- tems, each with submerged hydraulic driven centrifugal pumps and nitrogen inerting systems.

Bankers Trust Company, New York, N.Y., is expected to serve as owner trustee of the vessel under a leveraged lease financing arrangement.

Union Marine Transport Co. would then enter into a long-term bareboat charter of the vessel, which will be operated by Marine Transport Management, a wholly owned MTL subsidiary.

The Chemical Pioneer is expected to be used primarily for the carriage of UCC cargoes between plants and terminals on the Gulf of Mexico, East Coast, and in Puerto Rico.

Maritime Reporter Magazine, page 6, Oct 1983

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