The U.S. Department of Transportation’s Maritime Administration (MARAD) has awarded New Orleans-based Canal Barge Company, Inc. with a loan guarantee of $51,458,000 over 25 years for new towboats and barges.
The loan guarantee was awarded under the Federal Ship Financing Program, commonly known as “Title XI”.
The amount will support Canal Barge’s fleet modernization, including three new towboats and 17 barges that will service the inland waterways of the Ohio, Lower Mississippi, and Illinois Rivers.
“The Title XI program supports the construction of vessels in U.S. shipyards, strengthening this essential industrial base and supporting good-paying, high-skilled jobs,” said MARAD Administrator Ann Phillips. “The Title XI program also enables American vessel owners to modernize their fleets and expand waterborne transportation options.”
Through the Title XI program, MARAD provides full faith and credit guarantees to promote the growth and modernization of the U.S. merchant marine and U.S. shipyards. The program enables shipyards and shipowners to access loans that have longer terms, higher loan-to-value amounts, and lower interest rates compared to loans provided by commercial lenders.
The Department of Transportation recently announced that vessels supporting the offshore wind industry have been designated as Vessels of National Interest under the Title XI program, enabling MARAD to prioritize these types of vessels in the application review process.
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