Page 66: of Maritime Reporter Magazine (June 1996)

Herberger: Title XI Critical To Continued U.S. Commercial Shipbuilding

To help ensure that the commer- cial shipbuilding rebound contin- ues in the U.S., Maritime

Administrator Radm. Albert

Herberger recently testified before the Subcommittee on

Commerce, Justice, State and

Judiciary of the Committee on

Appropriations of the U.S. House of Representatives, to propose the

Maritime Administration's (MarAd) FY '97 budget request. A centerpiece of his presentation was the request for $44 million to fund and administer the Title XI loan guarantee program.

According to the Maritime

Administrator, "The Maritime

Administration's fiscal year 1997 budget request reflects the

President's commitment to main- taining the status of the United

States as a maritime nation." He further added, "In the absence of timely sealift, the strategic concept of power projection of heavy forces and global reach will be merely hypothetical. The commercial

U.S.-flag fleet is a cost-effective source of military sealift."

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Military Security Program

According to MarAd, a key ele- ment of this year's budget is the

Maritime Security Program (MSP). The organization contends the new program will foster a mod- ern, competitive American mer- chant marine at substantially lower costs than the existing oper- ating-differential subsidy (ODS) program and seeks to ensure the continued operation of merchant ships under the American flag.

The program also provides supple- mental sealift capacity and an intermodal system which can be made available when needed to support the nation's armed ser- vices.

MSP will be financed by budget authority subject to annual appro- priations, and MarAd is requesting $100 million for FY '97 to support this critical program.

The MarAd budget also supports the National Shipbuilding

Initiative (NSI) through its fund- ing requests for Title XI and research and development pro- grams. With the enactment of this initiative, MarAd is seeking an unprecedented increase in com- mercial shipbuilding projects.

Since the enactment of NSI in 1993, MarAd has approved more than $1.5 billion of Title XI financ- ing for 144 vessels and three ship- yard modernization projects as of

February 23, 1996. Included among these approvals were 13 double hull tankers. MarAd con- tends that the funding for the cost- shared, cooperative research and development program will not only help the U.S.' economic trade and national security interests, it is necessary for helping U.S. yards effectively contend with interna- tional competitors.

An appropriation of $44 million is requested for subsidy costs and administrative expenses associat- ed with new loan guarantee com- mitments for FY '97. Of the total, $40 million is required to cover subsidy costs and $4 million is to cover administrative costs. These resources will permit loan guaran- tees of about $570 million during

FY '97 to strengthen America's shipyards and introduce newer, more efficient ships into the fleet.

Ptlemus Approved To Sell

Tanker

Ptlemus Brothers Shipping, Inc. received approval to sell 20,020-gt tanker Sabine to Amber Sea

Navigation, a Maltese corporation.

The vessel will be transferred to

Belize registry.

Lykes Given OK To Sell

Barge

Lykes Bros. Steamship Co. received approval to sell 10,796-gt barge Lykes Innovator to

Desguaces Metalicos Y Rela-

Maritime Reporter/Engineering News