U.S. Maritime Administration to Broaden Government Guarantee Financing Criteria

Title XI of the Merchant Marine Act, 1936 grants the U.S. Maritime Administration authority to guarantee indebtedness incurred to construct vessels or reconstruct vessels in the United States. MARAD proposed on February 24, 2014 to expand on the criteria it will apply when considering applications for Title XI financing. Specifically, MARAD proposes to consider factors such as utilization of the designated American Marine Highways corridors, “synergy with the DOT Strategic Plan” and “environmental initiatives” such as promoting the introduction of alternative energy systems (such liquefied natural gas or LNG) and vessel repowering. Comments may be submitted until March 26, 2014.